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

Supplement for the month of April 2010.

 

 

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

 

Exhibit Number
1.		Financial Highlights – Year ended March 2010

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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: April 28, 2010		By:		/s/ Shinji Iwai
				Shinji Iwai
				Senior Managing Director

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Financial Summary For the Year Ended March 31, 2010 (US GAAP)

 

Date:		April 28, 2010
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Osaka, Nagoya
		(Overseas) New York, Singapore
Representative:		Kenichi Watanabe
		President and Chief Executive Officer, Nomura Holdings, Inc.
For inquiries:		Toshiki Shinjo
		Managing Director, Investor Relations Department, Nomura Holdings, Inc.
		Tel: (Country Code 81) 3-5255-1000
		URL http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results

 

		For the year ended March 31
		2010						2009
		(Yen amounts in millions, except per share data)
					% Change from March 31, 2009						% Change from March 31, 2008
Total revenue		1,356,751			104.2	%		664,511			(58.3	%)
Net revenue		1,150,822			268.1	%		312,627			(60.3	%)
Income (loss) before income taxes		105,247			—			(780,265	)		—
Net income (loss) attributable to Nomura Holdings, Inc. (“NHI”)		67,798			—			(708,192	)		—
Basic-Net income (loss) attributable to NHI shareholders per share		21.68						(364.69	)
Diluted-Net income (loss) attributable to NHI shareholders per share		21.59						(366.16	)
Return on shareholders’ equity		3.7	%					(40.2	%)
Income before income taxes to total assets		0.4	%					(3.1	%)
Income before income taxes divided by total revenue		7.8	%					(117.4	%)
Equity in earnings of affiliates		12,924						(5,534	)
Notes: 1. Income (loss) before income taxes is calculated in accordance with updated guidance for accounting and reporting of noncontrolling interests in financial statements, included in Financial Accounting Standards Board (FASB) Accounting Standards CodificationTM 810-10, Consolidation – Overall (“Updated noncontrolling interests guidance”). Previously reported amounts for Income (loss) before income taxes has been reclassified to conform to the current year presentation. 2. Net income (loss) attributable to NHI was previously reported as Net income (loss). 3. Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI to Total NHI shareholders’ equity.   (2) Financial Position
		At March 31						At March 31
		2010						2009
		(Yen amounts in millions, except per share data)
Total assets					32,230,428						24,837,848
Total equity					2,133,014						1,551,546
Total NHI shareholders’ equity					2,126,929						1,539,396
Total NHI shareholders’ equity as a percentage of total assets					6.6	%					6.2	%
Total NHI shareholders’ equity per share					579.70						590.99
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.   (3) Cash flows
		For the year ended March 31
		2010						2009
		(Yen amounts in millions)
Net cash used in operating activities					(1,500,770	)					(712,629	)
Net cash used in investing activities					(269,643	)					(98,905	)
Net cash provided by financing activities					2,176,530						999,760
Cash and cash equivalents at end of period					1,020,647						613,566

2. Cash dividends

 

		For the year ended March 31
		2009			2010			2011 (Plan)
		(Yen amounts, except Total annual dividends)
Dividends per share
dividends record dates
At June 30		8.50			—			—
At September 30		8.50			4.00			Unconfirmed
At December 31		8.50			—			—
At March 31		0.00			4.00			Unconfirmed
For the year		25.50			8.00			Unconfirmed
Total annual dividends (Yen amounts in millions)		48,706			25,811			—
Consolidated payout ratio		—			36.9	%		—
Consolidated dividends as a percentage of shareholders’ equity per share		3.1	%		1.4	%		—

Notes:

1.	Revision of cash dividend forecast during this period : None

2.	Nomura plan to forgo dividend distribution for Q1 and Q3 of fiscal year 2011. Fiscal year 2011 Q2 and Q4 dividend amounts are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2011”.

3. Earnings forecasts for the year ending March 31, 2011

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

 

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4. Other

(1) Significant changes to consolidated subsidiaries during the period: None

(2) Changes in accounting basis, procedure and presentation for the consolidated financial statements

  The items described in “Significant changes for presenting the consolidated financial statements”.

a)

Changes in accounting principles : Yes

b)

Other changes : None

Note: Please refer to page 15, “Summary of accounting policies” for details.

(3) Number of shares issued (common stock)

 

		At March 31		At March 31
		2010		2009
Number of shares outstanding　(including treasury stock)		3,719,133,241		2,661,092,760
Treasury stock		50,088,627		56,312,917

Note: Please refer to page 18, “Per share data” for the number of shares used in Net income (loss) attributable to NHI shareholders per share calculation.

Parent Company Only Operating Results (Japanese GAAP)

(1) Operating Results

 

		For the year ended March 31
		2010					2009
		(Yen amounts in millions, except per share data)
				% Change from March 31, 2009						% Change from March 31, 2008
Operating revenue		220,873		(35.1	%)		340,071			(19.0	%)
Operating income		36,930		(72.7	%)		135,303			(44.6	%)
Ordinary income		29,121		(77.1	%)		127,181			(48.3	%)
Net income (loss)		12,083		—			(393,712	)		—
Net profit (loss) per share		3.86					(202.62	)
Fully diluted net profit per share		3.83					—
(2) Financial Position
		At March 31
		2010					2009
				(Yen amounts in millions, except per share data)
Total assets				4,566,078						3,681,507
Total net assets				1,806,307						1,244,082
Total net assets as a percentage of total assets				39.0	%					33.1	%
Total net assets per share				485.62						466.99
Shareholders’ equity				1,782,273						1,216,966

* Notes on appropriate use of earnings forecast and other special remarks

Fiscal year 2011 Q2 and Q4 dividend amounts are not presented per reasons stated in “3.Earnings forecasts for the year ending March 31, 2011”. Nomura plan to forgo dividend distribution for Q1 and Q3 of fiscal year 2011.

 

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Qualitative Information and Financial Statements

 

1.	Consolidated Results

 

(1)	Analysis of Consolidated Results

Operating Results

US GAAP

 

		Billions of yen						% Change
		For the year ended						(A-B)/(B)
		March 31, 2010 (A)			March 31, 2009 (B)
Net revenue		1,150.8			312.6			268.1
Non-interest expenses		1,045.6			1,092.9			(4.3	)
Income (loss) before income taxes		105.2			(780.3	)		—
Income tax expense		37.2			(70.9	)		—
Net income (loss)		68.1			(709.4	)		—
Less: Net income (loss) attributable to noncontrolling interests		0.3			(1.2	)		—
Net income (loss) attributable to NHI		67.8			(708.2	)		—
Return on shareholders’ equity *		3.7	%		(40.2	%)		—

 

* Return on shareholders’ equity is ratio of Net income (loss) attributable to NHI to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (“Nomura”) reported net revenue of 1,150.8 billion yen for the fiscal year ended March 31, 2010, an increase of 268.1% from the previous year. Non-interest expenses decreased 4.3% from the previous year to 1,045.6 billion yen, Income before income taxes was 105.2 billion yen and Net income attributable to NHI was 67.8 billion yen for the fiscal year ended March 31, 2010.

Segments Information

 

		Billions of yen					% Change
		For the year ended					(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Net revenue		1,141.4		335.8			239.9
Non-interest expenses		1,045.6		1,092.9			(4.3	)
Income (loss) before income taxes		95.8		(757.1	)		—

In business segment totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the fiscal year ended March 31, 2010 was 1,141.4 billion yen, an increase of 239.9% from the previous year. Non-interest expenses decreased 4.3% from the previous year to 1,045.6 billion yen. Income before income taxes was 95.8 billion yen for the fiscal year ended March 31, 2010. Please refer to page 17 for further details of the differences between US GAAP and business segment amounts.

 

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<Business Segment Results>

Operating Results of Retail

 

		Billions of yen					% Change
		For the year ended					(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Net revenue		388.3		291.9			33.0
Non-interest expenses		274.9		273.6			0.5
Income (loss) before income taxes		113.4		18.2			521.6
Net revenue increased 33.0% from the previous year to 388.3 billion yen, due primarily to increasing brokerage commissions and commissions for distribution of investment trusts. Non-interest expenses increased 0.5% to 274.9 billion yen. As a result, income before income taxes increased 521.6% to 113.4 billion yen.   Operating Results of Global Markets
		Billions of yen					% Change
		For the year ended					(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Net revenue		658.4		(157.3	)		—
Non-interest expenses		486.4		417.4			16.5
Income (loss) before income taxes		172.0		(574.6	)		—

Net revenue was recorded as 658.4 billion yen, due primarily to recovering net gain on trading. Non-interest expenses increased 16.5% from the previous year to 486.4 billion yen. As a result, income before income taxes was 172.0 billion yen.

 

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Operating Results of Investment Banking

 

		Billions of yen					% Change
		For the year ended					(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Net revenue		118.9		63.5			87.3
Non-interest expenses		117.2		120.9			(3.1	)
Income (loss) before income taxes		1.7		(57.4	)		—

Transaction volume increased in the equity finance of Japanese companies, net revenue increased 87.3% from the previous year to 118.9 billion yen. Non-interest expenses decreased 3.1% from the previous year to 117.2 billion yen. As a result, income before income taxes was 1.7 billion yen.

Operating Results of Merchant Banking

 

		Billions of yen					% Change
		For the year ended					(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Net revenue		12.2		(69.9	)		—
Non-interest expenses		10.7		15.4			(30.3	)
Income (loss) before income taxes		1.4		(85.3	)		—

Net revenue was 12.2 billion yen, due primarily to realized and unrealized gain of equity securities of certain investee companies. Non-interest expenses was 10.7 billion yen. As a result, income before income taxes was 1.4 billion yen.

 

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Operating Results of Asset Management

 

		Billions of yen				% Change
		For the year ended				(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Net revenue		70.4		59.8		17.7
Non-interest expenses		51.8		52.4		(1.2	)
Income (loss) before income taxes		18.6		7.4		152.0

Net revenue increased 17.7% from the previous year to 70.4 billion yen. Non-interest expenses decreased 1.2% to 51.8 billion yen. As a result, income before income taxes increased by 152.0% to 18.6 billion yen. Assets under management increased by 3.2 trillion yen from the end of March 2009 to 23.4 trillion yen at the end of March 2010.

Other Operating Results

 

		Billions of yen						% Change
		For the year ended						(A-B)/(B)
		March 31, 2010 (A)			March 31, 2009 (B)
Net revenue		(106.8	)		147.7			—
Non-interest expenses		104.5			213.2			(51.0	)
Income (loss) before income taxes		(211.3	)		(65.4	)		—

Net revenue was negative 106.8 billion yen. Loss before income taxes was 211.3 billion yen.

Earnings Forecasts for Next Fiscal Year

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

 

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(2)	Analysis of Financial Position

Total assets as of March 31, 2010, were 32.2 trillion yen, an increase of 7.4 trillion yen compared to March 31, 2009, reflecting primarily the increase in Securities purchased under agreements to resell and Trading assets. Total liabilities as of March 31, 2010 were 30.1 trillion yen, an increase of 6.8 trillion yen compared to March 31, 2009, mainly due to increase in Trading liabilities and Securities sold under agreements to repurchase. Total equity as of March 31, 2010 was 2.1 trillion yen, an increase of 581.5 billion yen compared to March 31, 2009 reflecting primarily the issuance of stocks.

Cash and cash equivalents as of March 31, 2010, increased by 407.1 billion yen compared to March 31, 2009. Cash flows from operating activities for the year ended March 31, 2010 were outflows of 1,500.8 billion yen due to increase in Trading assets. Cash flows from investing activities for the year ended March 31, 2010 were outflows of 269.6 billion yen due mainly to increase in Loans receivable at banks. Cash flows from financing activities for the year ended March 31, 2010 were inflows of 2,176.5 billion yen due primarily to proceeds received from issuances of new shares and Long-term borrowings.

 

(3)	Nomura’s Capital Management

Capital Management Policy

Nomura seeks to enhance shareholder value by capturing business opportunities as they develop. To achieve this goal, Nomura maintains sufficient capital to support its business. Nomura reviews its sufficiency of capital as appropriate, taking into consideration economic risks inherent in its businesses, regulatory requirements, and maintenance of a sufficient debt rating for a global financial institution.

Nomura believes that raising corporate value over the long term and paying dividends is essential to rewarding shareholders. Nomura will strive to pay stable dividends using a consolidated payout ratio of 30 percent as a key indicator.

Dividend payments will be determined taking into account a comprehensive range of factors such as the tightening of Basel regulations and other changes to the regulatory environment as well as the company’s consolidated financial performance.

The payment frequency is semi-annual (record dates: September 30 and March 31) in principle. Pursuant to Article 459 of Companies’ Act of Japan, in its Articles of Incorporation, Nomura established the capability to declare dividends from retained earnings by decision of the Board of Directors based on the record dates of June 30, September 30, December 31, and March 31 of each year.

Nomura paid 4.0 yen of dividends for the first half and will pay 4.0 yen for the second half dividend in line with its dividend policy for the fiscal year ended March 31, 2010.

As for retained earnings, Nomura intends to invest in business areas where high profitability and growth may reasonably be expected, including development and expansion of infrastructure, to maximize value for shareholders.

Nomura will also consider the option of implementing a share repurchase program in order to respond flexibly to changes in the management environment and raise shareholder value. Any decision on establishing such a program will be disclosed in a timely manner and the program implemented in accordance with company policy. Nomura didn’t repurchase any during the fiscal year ended March 31, 2010.

 

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2.	Organizational Structure

This section is omitted as there are no major changes in “Business Overview - Organizational Structure” and “Subsidiaries and Affiliates” since the most recent Nomura Holdings, Inc.’s “Annual Securities Report Pursuant to the Financial Instruments and Exchange Act for The Fiscal Year Ended March 31, 2009” annual report was filed on June 30, 2009.

 

3.	Corporate Goals and Principles

 

(1)	Fundamental Management Policy

Nomura Group is committed to a management vision of firmly establishing ourselves as a globally competitive financial services group. We will seek to realize this vision and increase shareholder value by strengthening our base in the Japanese securities businesses, developing world-class businesses in other regions, and consolidating our comprehensive global strength.

We will establish our new growth model by working with our clients, providing them with the best solutions, and realizing the expansion of our business in new domains. Our management target is to maintain an average consolidated return on shareholders’ equity (ROE) of 10% to 15% over the medium to long term. However, we cannot deny that the capital requirements that are under consideration by Basel Committee on Banking Supervision or other financial regulators may impact us.

In addition, we put high priority on compliance with applicable laws, regulations and proper corporate behavior, and we build compliance into our daily business operations.

 

(2)	Structure of Business Operations

In April 2010, we established the Wholesale Division, encompassing the Global Markets Division, the Investment Banking Division, and the Merchant Banking Division, to promote seamless coordination between the wholesale businesses and provide our clients with high value-added services tailored to their needs. We are organized around three globally-linked divisions (Retail Division, Wholesale Division, and Asset Management Division) under a unified strategy, rather than individual legal entities. We will strive to achieve a higher level of specialization in each division, advance and progress our business in each area, and maximize the collective strength of the Nomura Group by enhancing cross-divisional collaboration.

 

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(3)	Management Challenges and Strategies

The global economic downturn, triggered by the turmoil in financial markets, came to an end in Spring 2009 through execution of economic stimulus plans and inventory rebuilding in many countries. Emerging markets are helping the global economy move gradually toward normality. In this environment, we plan to address the needs of our clients globally by taking advantage of our considerably-strengthened business platform and to strategically allocate management resources in order to grow our client base and improve our market share. In addition, we will continue to proceed with our plans to reduce costs by reengineering businesses to fit the market environment and increase operational efficiency. We will also implement the following initiatives:

[Retail Division]

We will continue to enhance our products and service offerings, which are provided through direct contacts, online or via call centers to accommodate increasingly sophisticated and diverse client needs. We aim to continue being a trusted partner to our clients by providing world-class products and services that meet their individual needs.

[Wholesale Division]

Global Markets will enhance our product development expertise to be the product supply hub for Nomura. We will focus on delivering high value-added products and solutions to our clients by leveraging our global trading infrastructure and making full use of our strengthened business franchise. In Fixed Income, we will strengthen not only our global marketing structure but also our trading and product development capabilities. In Equities, we aim to establish ourselves as a world-class liquidity provider.

In Investment Banking, we are expanding our M&A advisory and corporate financing advisory businesses by providing high value-added solutions to meet the individual needs of each client. With a strengthened business franchise in Asia and Europe, we aim to enhance our presence as a global investment bank headquartered in Asia that provides world-class services, while continuing to build our business in Japan.

In Merchant Banking, we remain focused on increasing the enterprise value of the companies in which we invest, and achieving optimal or immediate returns on investment by continually weighing exit strategy options. With the continued instability in the global investment environment, we are taking a more cautious approach to new investments.

[Asset Management Division]

We aim to increase our world-class competitive advantage in Japan and the rest of Asia by aggressively expanding our investment management and product delivery capabilities globally. We intend to increase assets under management from both individual and institutional investors and expand our client base by providing clients in Japan with a diverse range of global investment opportunities and by meeting international investors’ demand for investment opportunities in Asia.

In implementing the initiatives outlined above, we will enhance collaboration between the divisions. We aim to bring together the collective strengths of our domestic and international operations to realize our management objectives and maximize shareholder value by enhancing profitability across our businesses, while helping to strengthen the global financial and capital markets.

In addition, we are working to further enhance our management system, which supports continued growth.

The regulatory environment which surrounds global financial institutions has been changing. We will respond quickly to such changes while building a financial base that enables client-focused business expansion.

At the same time, we understand that it is necessary to further strengthen our global risk management systems. By adopting a proactive, rather than a reactive, risk management approach, top management has been directly engaged in risk management-related decision-making. We will continue to strengthen this type of system.

As our business becomes increasingly international, we recognize the growing importance of compliance. In addition to complying with laws and regulations, we view compliance in a wider context, and will further enhance Nomura group’s overall compliance system.

 

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4.	Consolidated Financial Statements

 

(1)	Consolidated Balance Sheets (UNAUDITED)

 

		Millions of yen
		March 31, 2010			March 31, 2009			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		1,020,647			613,566			407,081
Time deposits		196,909			537,084			(340,175	)
Deposits with stock exchanges and other segregated cash		134,688			272,059			(137,371	)
		1,352,244			1,422,709			(70,465	)
Loans and receivables:
Loans receivable		1,310,375			519,179			791,196
Receivables from customers		59,141			23,619			35,522
Receivables from other than customers		707,623			1,103,974			(396,351	)
Allowance for doubtful accounts		(5,425	)		(3,765	)		(1,660	)
		2,071,714			1,643,007			428,707
Collateralized agreements:
Securities purchased under agreements to resell		7,073,926			2,657,151			4,416,775
Securities borrowed		5,393,287			5,755,467			(362,180	)
		12,467,213			8,412,618			4,054,595
Trading assets and private equity investments:
Trading assets*		14,374,028			11,348,747			3,025,281
Private equity investments		326,254			323,865			2,389
		14,700,282			11,672,612			3,027,670
Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥273,616 million at March 31, 2010 and ¥225,475 million at March 31, 2009)		357,194			357,256			(62	)
Non-trading debt securities*		308,814			244,027			64,787
Investments in equity securities*		122,948			118,902			4,046
Investments in and advances to affiliated companies*		251,273			243,474			7,799
Other		598,746			723,243			(124,497	)
		1,638,975			1,686,902			(47,927	)
Total assets		32,230,428			24,837,848			7,392,580

 

*	Including securities pledged as collateral

 

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		Millions of yen
		March 31, 2010			March 31, 2009			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings		1,301,664			1,183,374			118,290
Payables and deposits:
Payables to customers		705,302			403,797			301,505
Payables to other than customers		374,522			398,187			(23,665	)
Deposits received at banks		448,595			440,334			8,261
		1,528,419			1,242,318			286,101
Collateralized financing:
Securities sold under agreements to repurchase		8,078,020			5,000,787			3,077,233
Securities loaned		1,815,981			2,243,152			(427,171	)
Other secured borrowings		1,322,480			2,914,015			(1,591,535	)
		11,216,481			10,157,954			1,058,527
Trading liabilities		8,356,806			4,752,054			3,604,752
Other liabilities		494,983			467,574			27,409
Long-term borrowings		7,199,061			5,483,028			1,716,033
Total liabilities		30,097,414			23,286,302			6,811,112
Equity
NHI shareholders’ equity:
Common stock
Authorized    -    6,000,000,000 shares
Issued    -    3,719,133,241 shares at March 31, 2010 and
2,661,092,760 shares at March 31, 2009
Outstanding    -    3,669,044,614 shares at March 31, 2010 and
2,604,779,843 shares at March 31, 2009		594,493			321,765			272,728
Additional paid-in capital		635,828			374,413			261,415
Retained earnings		1,074,213			1,038,557			35,656
Accumulated other comprehensive income		(109,132	)		(118,437	)		9,305
		2,195,402			1,616,298			579,104
Common stock held in treasury, at cost -
50,088,627 shares at March 31, 2010 and
56,312,917 shares at March 31, 2009		(68,473	)		(76,902	)		8,429
Total NHI shareholders’ equity		2,126,929			1,539,396			587,533
Noncontrolling interests		6,085			12,150			(6,065	)
Total equity		2,133,014			1,551,546			581,468
Total liabilities and equity		32,230,428			24,837,848			7,392,580

 

Note:

Noncontrolling interests, which were previously included in Other liabilities, are classified as equity in accordance with “Updated noncontrolling interests guidance”. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

 

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(2)	Consolidated Statements of Operations (UNAUDITED)

 

		Millions of yen					% Change
		For the year ended					(A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Revenue:
Commissions		395,083		306,803			28.8
Fees from investment banking		121,254		54,953			120.7
Asset management and portfolio service fees		132,249		140,166			(5.6	)
Net gain (loss) on trading		417,424		(128,339	)		—
Gain (loss) on private equity investments		11,906		(54,791	)		—
Interest and dividends		235,310		331,356			(29.0	)
Gain (loss) on investments in equity securities		6,042		(25,500	)		—
Other		37,483		39,863			(6.0	)
Total revenue		1,356,751		664,511			104.2
Interest expense		205,929		351,884			(41.5	)
Net revenue		1,150,822		312,627			268.1
Non-interest expenses :
Compensation and benefits		526,238		491,555			7.1
Commissions and floor brokerage		86,129		73,681			16.9
Information processing and communications		175,575		154,980			13.3
Occupancy and related depreciation		87,806		78,480			11.9
Business development expenses		27,333		31,638			(13.6	)
Other		142,494		262,558			(45.7	)
		1,045,575		1,092,892			(4.3	)
Income (loss) before income taxes		105,247		(780,265	)		—
Income tax expense		37,161		(70,854	)		—
Net income (loss)		68,086		(709,411	)		—
Less: Net income (loss) attributable to noncontrolling interests		288		(1,219	)		—
Net income (loss) attributable to NHI		67,798		(708,192	)		—
		Yen					% Change
Per share of common stock:
Basic-
Net income (loss) attributable to NHI shareholders per share		21.68		(364.69	)		—
Diluted-
Net income (loss) attributable to NHI shareholders per share		21.59		(366.16	)		—

 

Notes:

1.	Net income (loss) is net income (loss) before subtracting Net income (loss) attributable to noncontrolling interest in accordance with “Updated noncontrolling interests guidance”.

2.	Net income (loss) attributable to NHI was previously reported as Net income (loss).

3.	Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

 

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(3)	Consolidated Statements of Changes in Equity (UNAUDITED)

Nomura resolved the issuance of new shares at September 24, 2009. Nomura issued new shares by way of public offering (766,000,000 shares) on the payment date of October 13, 2009. Nomura also issued new shares by way of third-party allotment (34,000,000 shares) on the payment date of October 27, 2009. Common stock and Additional paid-in capital increased by 217,728 million yen, 228,934 million yen, respectively by this issuance of new shares.

 

		Millions of yen
		For the year ended
		March 31, 2010			March 31, 2009
Common stock
Balance at beginning of year		321,765			182,800
Issuance of common stock		217,728			138,965
Conversion of convertible bonds		55,000			—
Balance at end of year		594,493			321,765
Additional paid-in capital
Balance at beginning of year		374,413			177,227
Issuance of common stock		228,934			143,482
Conversion of convertible bonds		55,000			—
Gain (loss) on sales of treasury stock		5,702			2,755
Issuance and exercise of common stock options		(4,242	)		9,954
Adjustments to initially apply “Contracts in entity’s own equity”		(26,923	)		—
Beneficial conversion feature relating to (subordinated) convertible bond		2,959			40,995
Other net change in additional paid-in capital		(15	)		—
Balance at end of year		635,828			374,413
Retained earnings
Balance at beginning of year		1,038,557			1,779,783
Net income (loss) attributable to NHI		67,798			(708,192	)
Cash dividends		(25,803	)		(48,675	)
Adjustments to initially apply “Fair value measurements”		—			10,383
Adjustments to initially apply “The fair value option”		—			5,258
Adjustments to initially apply “Contracts in entity’s own equity”		(6,339	)		—
Balance at end of year		1,074,213			1,038,557
Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year		(73,469	)		(28,416	)
Net change during the year		(861	)		(45,053	)
Balance at end of year		(74,330	)		(73,469	)
Defined benefit pension plans
Balance at beginning of year		(44,968	)		(42,695	)
Pension liability adjustment		10,166			(2,273	)
Balance at end of year		(34,802	)		(44,968	)
Balance at end of year		(109,132	)		(118,437	)
Common stock held in treasury
Balance at beginning of year		(76,902	)		(80,575	)
Repurchases of common stock		(18	)		(91	)
Sale of common stock		13			73
Common stock issued to employees		8,275			3,759
Other net change in treasury stock		159			(68	)
Balance at end of year		(68,473	)		(76,902	)
Total NHI shareholders’ equity
Balance at end of year		2,126,929			1,539,396
Noncontrolling interests
Balance at beginning of year		12,150			12,978
Net change during the year		(6,065	)		(828	)
Balance at end of year		6,085			12,150
Total equity
Balance at end of year		2,133,014			1,551,546

 

Note:

1.	Noncontrolling interests, which were previously included in Other liabilities, are classified as equity in accordance with “Updated noncontrolling interests guidance”.

2.	“Contracts in entity’s own equity” implies ASC 815-40, “Derivatives and Hedging - Contracts in Entity’s Own Equity”.

 

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(4)	Consolidated Statements of Cash Flows (UNAUDITED)

 

		Millions of yen
		For the year ended
		March 31, 2010			March 31, 2009
Cash flows from operating activities:
Net Income (loss)		68,086			(709,411	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		73,081			75,780
(Gain) loss on investment in equity securities		(6,042	)		25,500
Changes in operating assets and liabilities:
Time deposits		348,003			72,670
Deposits with stock exchanges and other segregated cash		142,416			(153,059	)
Trading assets and private equity investments		(3,123,679	)		(3,153,499	)
Trading liabilities		3,737,079			1,323,314
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase		(1,437,635	)		1,490,423
Securities borrowed, net of securities loaned		(69,472	)		(278,318	)
Other secured borrowings		(1,591,535	)		425,886
Loans and receivables, net of allowance		(248,175	)		(1,336,288	)
Payables		139,919			994,150
Other, net		467,184			510,223
Net cash used in operating activities		(1,500,770	)		(712,629	)
Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities		(83,079	)		(95,978	)
Proceeds from sales of office buildings, land, equipment and facilities		2,909			38,799
Payments for purchases of investments in equity securities		(2,318	)		(6,236	)
Proceeds from sales of investments in equity securities		1,272			2,065
(Increase) decrease in loans receivable at banks, net		(105,800	)		28,096
(Increase) decrease in non-trading debt securities, net		(64,586	)		(19,415	)
Other, net		(18,041	)		(46,236	)
Net cash used in investing activities		(269,643	)		(98,905	)
Cash flows from financing activities:
Increase in long-term borrowings		3,059,225			2,091,553
Decrease in long-term borrowings		(1,470,978	)		(1,262,300	)
Increase (decrease) in short-term borrowings, net		137,076			(175,988	)
Increase in deposits received at banks, net		13,279			126,520
Proceeds from issuances of common stock held in treasury		446,662			282,447
Proceeds from sales of common stock held in treasury		10			65
Payments for repurchases of common stock		(18	)		(91	)
Payments for cash dividends		(11,130	)		(64,924	)
Proceeds from issuances of stock by subsidiaries		2,404			2,478
Net cash provided by financing activities		2,176,530			999,760
Effect of exchange rate changes on cash and cash equivalents		964			(81,896	)
Net increase in cash and cash equivalents		407,081			106,330
Cash and cash equivalents at beginning of the year		613,566			507,236
Cash and cash equivalents at end of the year		1,020,647			613,566

Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

 

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(5)	Note with respect to the assumption as a going concern (UNAUDITED)

Not applicable.

 

(6)	Note to the Consolidated Financial Statements (UNAUDITED)

Summary of accounting policies

The consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 30, 2009) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 30, 2009) for the year ended March 31, 2009.

Presentations of significant changes in accounting principles are as follows:

FASB Accounting Standards Codification—

Effective July 1, 2009, Nomura adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification^TM (“ASC” or “Codification”). The Codification became the sole source of authoritative generally accepted accounting principles (“GAAP”) for the financial statements issued for the interim and annual periods ending after September 15, 2009. Also effective July 1, 2009, any changes to the Codification are communicated by the FASB through an Accounting Standards Update (“ASU”). Accordingly, all GAAP references are now updated in accordance with ASC and ASU.

Accounting for Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock—

Effective April 1, 2009, Nomura adopted ASC 815-40, “Derivatives and Hedging - Contracts in Entity’s Own Equity”, that provides guidance how to determine if certain instruments (or embedded features) are considered indexed to an entity’s own stock. ASC 815-40 amends the existing guidance for determining whether a price adjustment mechanism included in an equity-linked financial instrument (or embedded feature) needs to be bifurcated and classified as an asset or liability and be subject to profit or loss recognition based its fair value.

Upon adoption of ASC 815-40, Nomura made certain reclassification adjustments to the beginning balances of Long-term borrowings, Additional paid-in-capital, Retained earnings, and Other assets - Other in order to bifurcate Nomura’s call option attached unsecured convertible bonds (the “bonds”), because the certain clauses contained in the bonds were not deemed as indexed to Nomura’s own stock pursuant to ASC 815-40.

Accounting for Business Combinations—

On April 1, 2009, Nomura adopted the amended accounting principles related to business acquisitions (issued in December 2007) incorporated in ASC 805, “Business Combinations”,. Nomura adopted ASC 805 for business combinations for which the acquisition date is on or after April, 2009.

 

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Accounting for Noncontrolling Interests—

Nomura adopted the updated guidance for accounting and reporting of noncontrolling interests in financial statements, included in ASC 810-10, “Consolidation - Overall”, on April 1, 2009. In accordance with this standard, it is applied prospectively from the beginning of the fiscal year in which it is initially applied. However, an exception is that it is applied retrospectively for all periods presented for comparison for presentation and disclosure requirements. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

Measuring liabilities at fair value—

Effective October 1, 2009, Nomura adopted ASU No. 2009-05 “Measuring Liabilities at Fair Value” (“ASU 2009-05”). ASU 2009-05 provides valuation methods and hierarchy and clarifies that restrictions preventing the transfer of a liability should not be considered as a separate input or adjustment in the measurement of fair value.

Valuation methodology for investment in certain entities that calculate net asset value per share—

Effective October 1, 2009, Nomura adopted ASU No. 2009-12 “Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2009-12”). ASU 2009-12 permits measurement of fair value of an investment in hedge fund, private equity fund, and other fund on the basis of net asset value per share as a practical expedient, excluding certain situations such as when the investment is probable of being sold at amount different from net asset value per share. ASU2009-12 also provides clarity around how such investments should be classified in the fair value hierarchy.

 

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Segment information-Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of operations.

 

		Millions of yen						% Change
		For the year ended						(A-B)/(B)
		March 31, 2010 (A)			March 31, 2009 (B)
Net revenue
Business segment information:
Retail		388,272			291,857			33.0
Global Markets		658,441			(157,254	)		—
Investment Banking		118,922			63,499			87.3
Merchant Banking		12,168			(69,875	)		—
Asset Management		70,365			59,789			17.7
Sub Total		1,248,168			188,016			563.9
Other		(106,753	)		147,748			—
Net revenue		1,141,415			335,764			239.9
Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		9,407			(23,137	)		—
Net revenue		1,150,822			312,627			268.1
Non-interest expenses
Business segment information:
Retail		274,915			273,620			0.5
Global Markets		486,433			417,387			16.5
Investment Banking		117,178			120,910			(3.1	)
Merchant Banking		10,738			15,398			(30.3	)
Asset Management		51,771			52,409			(1.2	)
Sub Total		941,035			879,724			7.0
Other		104,540			213,168			(51.0	)
Non-interest expenses		1,045,575			1,092,892			(4.3	)
Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—			—
Non-interest expenses		1,045,575			1,092,892			(4.3	)
Income (loss) before income taxes
Business segment information:
Retail		113,357			18,237			521.6
Global Markets		172,008			(574,641	)		—
Investment Banking		1,744			(57,411	)		—
Merchant Banking		1,430			(85,273	)		—
Asset Management		18,594			7,380			152.0
Sub Total		307,133			(691,708	)		—
Other *		(211,293	)		(65,420	)		—
Income (loss) before income taxes		95,840			(757,128	)		—
Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		9,407			(23,137	)		—
Income (loss) before income taxes		105,247			(780,265	)		—

 

*	Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”

 

		Millions of yen						% Change
		For the year ended						(A-B)/(B)
		March 31, 2010 (A)			March 31, 2009 (B)
Net gain (loss) related to economic hedging transactions		3,323			28,032			(88.1	)
Realized gain (loss) on investments in equity securities held for operating purposes		(3,365	)		(2,363	)		—
Equity in earnings of affiliates		7,765			(718	)		—
Corporate items		(83,291	)		(70,533	)		—
Others		(135,725	)		(19,838	)		—
Total		(211,293	)		(65,420	)		—

 

Note:

Net gain (loss) related to economic hedging transactions but not included in net gain (loss) on trading, which was previously classified as “Others”, is included in “Net gain (loss) related to economic hedging transactions” as well as net gain (loss) on trading related to economic hedging transactions. In addition, net gain (loss) on trading from the change in its own creditworthiness of certain structured notes issued, which was previously classified as “Net gain (loss) on trading related to economic hedging transactions”, is included in “Others”. The reclassifications of previously reported amounts have been made to conform to the current year presentation.

 

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Per share data

Shareholders’ equity per share is calculated based on the following number of shares.

 

Number of shares outstanding as of March 31, 2010		3,669,044,614

Net income (loss) attributable to NHI shareholders per share calculated based on the following number of shares.

 

Average number of shares outstanding for the year ended March 31, 2010		3,126,790,289

Significant Subsequent Events

Not applicable.

Disclosure of other notes (lease, related party transactions, tax effect accounting, retirement benefit, etc.) have deemed not necessary for this financial summary.

 

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(7)    Other Financial Informations (UNAUDITED)

Supplemental Consolidated Financial Information

 

•

Quarterly Results - Consolidated Statements of Operations

 

•

Quarterly Results - Business Segment

 

•

Commissions/fees received and Net gain on trading

 

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Consolidated Statements of Operations - Quarterly (UNAUDITED)

 

		Millions of yen																							% Change
		For the three months ended
		June 30, 2008			September 30, 2008			December 31, 2008			March 31, 2009			June 30, 2009			September 30, 2009			December 31, 2009(A)			March 31, 2010(B)		(B-A)/(A)
Revenue:
Commissions		82,198			84,886			73,373			66,346			102,024			95,438			101,050			96,571		(4.4	)
Fees from investment banking		13,407			10,026			19,678			11,842			29,729			15,580			44,516			31,429		(29.4	)
Asset management and portfolio service fees		42,779			42,411			29,410			25,566			30,331			34,016			34,235			33,667		(1.7	)
Net gain (loss) on trading		10,515			(21,015	)		(134,518	)		16,679			121,132			148,487			66,481			81,324		22.3
Gain (loss) on private equity investments		(37,663	)		23,167			(24,782	)		(15,513	)		(2,139	)		2,033			2,342			9,670		312.9
Interest and dividends		117,957			126,993			45,899			40,507			58,427			53,561			67,414			55,908		(17.1	)
Gain (loss) on investments in equity securities		964			(9,804	)		(12,938	)		(3,722	)		9,801			(2,308	)		(3,827	)		2,376		—
Other		27,719			1,068			6,588			4,488			14,290			8,663			9,377			5,153		(45.0	)
Total revenue		257,876			257,732			2,710			146,193			363,595			355,470			321,588			316,098		(1.7	)
Interest expense		122,789			129,667			52,456			46,972			65,236			55,445			47,050			38,198		(18.8	)
Net revenue		135,087			128,065			(49,746	)		99,221			298,359			300,025			274,538			277,900		1.2
Non-interest expenses:
Compensation and benefits		87,910			80,098			161,823			161,724			138,081			146,633			126,239			115,285		(8.7	)
Commissions and floor brokerage		18,634			20,343			17,561			17,143			20,043			21,706			22,922			21,458		(6.4	)
Information processing and communications		33,359			34,632			40,838			46,151			40,160			43,924			43,919			47,572		8.3
Occupancy and related depreciation		15,868			17,180			23,245			22,187			21,992			22,598			21,298			21,918		2.9
Business development expenses		7,032			7,919			8,123			8,564			6,256			6,380			6,544			8,153		24.6
Other		56,627			37,284			98,274			70,373			40,406			31,492			35,659			34,937		(2.0	)
		219,430			197,456			349,864			326,142			266,938			272,733			256,581			249,323		(2.8	)
Income (loss) before income taxes		(84,343	)		(69,391	)		(399,610	)		(226,921	)		31,421			27,292			17,957			28,577		59.1
Income tax expense		(7,672	)		3,531			(56,648	)		(10,065	)		20,678			(1,049	)		7,745			9,787		26.4
Net income (loss)		(76,671	)		(72,922	)		(342,962	)		(216,856	)		10,743			28,341			10,212			18,790		84.0
Less: Net income (loss) attributable to noncontrolling interests		(79	)		(50	)		(68	)		(1,022	)		(677	)		626			(24	)		363		—
Net income (loss) attributable to NHI		(76,592	)		(72,872	)		(342,894	)		(215,834	)		11,420			27,715			10,236			18,427		80.0
		Yen																							% Change
Per share of common stock:
Basic-
Net income (loss) attributable to NHI shareholders per share		(40.14	)		(38.18	)		(179.62	)		(107.00	)		4.37			10.22			2.91			5.02		72.5
Diluted-
Net income (loss) attributable to NHI shareholders per share		(40.18	)		(38.23	)		(180.97	)		(108.71	)		1.81			8.87			2.89			5.00		73.0

 

Notes:		Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

 

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Business Segment Information – Quarterly Results (UNAUDITED)

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of operations.

 

		Millions of yen																								% Change
		For the three months ended																								(B-A)/(A)
		June 30, 2008			September 30, 2008			December 31, 2008			March 31, 2009			June 30, 2009			September 30, 2009			December 31, 2009(A)			March 31, 2010(B)
Net revenue
Business segment information:
Retail		85,809			74,455			69,650			61,943			95,380			93,150			104,290			95,452			(8.5	)
Global Markets		10,970			(6,538	)		(171,084	)		9,398			187,128			174,499			163,850			132,964			(18.9	)
Investment Banking		28,986			5,247			22,658			6,608			25,673			20,945			44,464			27,840			(37.4	)
Merchant Banking		(37,009	)		20,500			(34,987	)		(18,379	)		(1,081	)		3,860			1,777			7,612			328.4
Asset Management		21,112			14,711			10,842			13,124			18,650			16,467			17,247			18,001			4.4
Sub Total		109,868			108,375			(102,921	)		72,694			325,750			308,921			331,628			281,869			(15.0	)
Other		24,546			27,992			64,727			30,483			(37,139	)		(7,056	)		(53,198	)		(9,360	)		—
Net revenue		134,414			136,367			(38,194	)		103,177			288,611			301,865			278,430			272,509			(2.1	)
Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		673			(8,302	)		(11,552	)		(3,956	)		9,748			(1,840	)		(3,892	)		5,391			—
Net revenue		135,087			128,065			(49,746	)		99,221			298,359			300,025			274,538			277,900			1.2
Non-interest expenses
Business segment information:
Retail		69,630			69,137			67,370			67,483			67,521			66,796			69,119			71,479			3.4
Global Markets		72,589			80,150			124,438			140,210			124,862			127,845			130,751			102,975			(21.2	)
Investment Banking		16,411			13,970			42,601			47,928			31,098			30,659			28,196			27,225			(3.4	)
Merchant Banking		2,357			5,853			2,604			4,584			2,498			2,606			2,637			2,997			13.7
Asset Management		12,960			13,916			12,933			12,600			13,521			11,994			13,166			13,090			(0.6	)
Sub Total		173,947			183,026			249,946			272,805			239,500			239,900			243,869			217,766			(10.7	)
Other		45,483			14,430			99,918			53,337			27,438			32,833			12,712			31,557			148.2
Non-interest expenses		219,430			197,456			349,864			326,142			266,938			272,733			256,581			249,323			(2.8	)
Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—			—			—			—			—			—			—			—			—
Non-interest expenses		219,430			197,456			349,864			326,142			266,938			272,733			256,581			249,323			(2.8	)
Income (loss) before income taxes
Business segment information:
Retail		16,179			5,318			2,280			(5,540	)		27,859			26,354			35,171			23,973			(31.8	)
Global Markets		(61,619	)		(86,688	)		(295,522	)		(130,812	)		62,266			46,654			33,099			29,989			(9.4	)
Investment Banking		12,575			(8,723	)		(19,943	)		(41,320	)		(5,425	)		(9,714	)		16,268			615			(96.2	)
Merchant Banking		(39,366	)		14,647			(37,591	)		(22,963	)		(3,579	)		1,254			(860	)		4,615			—
Asset Management		8,152			795			(2,091	)		524			5,129			4,473			4,081			4,911			20.3
Sub Total		(64,079	)		(74,651	)		(352,867	)		(200,111	)		86,250			69,021			87,759			64,103			(27.0	)
Other *		(20,937	)		13,562			(35,191	)		(22,854	)		(64,577	)		(39,889	)		(65,910	)		(40,917	)		—
Income (loss) before income taxes		(85,016	)		(61,089	)		(388,058	)		(222,965	)		21,673			29,132			21,849			23,186			6.1
Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		673			(8,302	)		(11,552	)		(3,956	)		9,748			(1,840	)		(3,892	)		5,391			—
Income (loss) before income taxes		(84,343	)		(69,391	)		(399,610	)		(226,921	)		31,421			27,292			17,957			28,577			59.1

 

 

*	Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other”.

 

		Millions of yen																								% Change
		For the three months ended																								(B-A)/(A)
		June 30, 2008			September 30, 2008			December 31, 2008			March 31, 2009			June 30, 2009			September 30, 2009			December 31, 2009(A)			March 31, 2010(B)
Net gain (loss) related to economic hedging transactions		5,126			17,897			12,032			(7,023	)		5,350			8,589			(13,316	)		2,700			—
Realized gain (loss) on investments in equity securities held for operating purposes		291			(1,503	)		(1,385	)		234			53			(468	)		65			(3,015	)		—
Equity in earnings of affiliates		2,061			3,999			(376	)		(6,402	)		3,701			602			1,877			1,585			(15.6	)
Corporate items		(5,620	)		(2,349	)		(34,953	)		(27,611	)		(24,896	)		(19,588	)		(10,693	)		(28,114	)		—
Others		(22,795	)		(4,482	)		(10,509	)		17,948			(48,785	)		(29,024	)		(43,843	)		(14,073	)		—
Total		(20,937	)		13,562			(35,191	)		(22,854	)		(64,577	)		(39,889	)		(65,910	)		(40,917	)		—

 

Notes:		Net gain (loss) related to economic hedging transactions but not included in net gain (loss) on trading, which was previously classified as “Others”, is included in “Net gain (loss) related to economic hedging transactions” as well as net gain (loss) on trading related to economic hedging transactions. In addition, net gain (loss) on trading from the change in its own creditworthiness of certain structured notes issued, which was previously classified as “Net gain (loss) on trading related to economic hedging transactions”, is included in “Others”. The reclassifications of previously reported amounts have been made to conform to the current year presentation.

 

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“Commissions/fees received” and “Net gain on trading” consists of the following (UNAUDITED)

 

		Millions of yen																				% Change			Millions of yen					% Change
		For the three months ended																							For the year ended
		June 30, 2008			September 30, 2008			December 31, 2008			March 31, 2009			June 30, 2009		September 30, 2009		December 31, 2009(A)		March 31, 2010(B)		(B-A)/(A)			March 31, 2009(C)			March 31, 2010(D)		(D-C)/(C)
Commissions/fees received
Commissions		82,198			84,886			73,373			66,346			102,024		95,438		101,050		96,571		(4.4	)		306,803			395,083		28.8
Brokerage Commissions		49,287			53,840			60,208			40,028			57,863		49,091		48,613		48,079		(1.1	)		203,363			203,646		0.1
Commissions for Distribution of Investment Trust		25,811			24,173			6,897			19,056			39,505		41,325		43,626		41,476		(4.9	)		75,937			165,932		118.5
Fees from Investment Banking		13,407			10,026			19,678			11,842			29,729		15,580		44,516		31,429		(29.4	)		54,953			121,254		120.7
Underwriting and Distribution		6,815			3,385			9,424			5,491			20,900		10,603		36,878		23,116		(37.3	)		25,115			91,497		264.3
M&A / Financial Advisory Fees		4,568			6,218			10,119			5,824			8,573		4,902		7,563		8,187		8.3			26,729			29,225		9.3
Asset Management and Portfolio Service Fees		42,779			42,411			29,410			25,566			30,331		34,016		34,235		33,667		(1.7	)		140,166			132,249		(5.6	)
Asset Management Fees		38,485			38,358			26,027			22,574			26,523		30,634		30,276		29,543		(2.4	)		125,444			116,976		(6.8	)
Total		138,384			137,323			122,461			103,754			162,084		145,034		179,801		161,667		(10.1	)		501,922			648,586		29.2
Net gain (loss) on trading
Merchant Banking		(69	)		(457	)		(584	)		(1,550	)		278		1,116		4,197		437		(89.6	)		(2,660	)		6,028		—
Equity Trading		33,267			1,717			(13,973	)		(59,671	)		64,823		53,614		38,258		39,557		3.4			(38,660	)		196,252		—
Fixed Income and Other Trading		(22,683	)		(22,275	)		(119,961	)		77,900			56,031		93,757		24,026		41,330		72.0			(87,019	)		215,144		—
Total		10,515			(21,015	)		(134,518	)		16,679			121,132		148,487		66,481		81,324		22.3			(128,339	)		417,424		—

 

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5.	Unconsolidated Financial Statements

 

(1)	Unconsolidated Balance Sheet (UNAUDITED)

 

		(Millions of yen)
		March 31, 2010			March 31, 2009			Increase/ (Decrease)
ASSETS
Current Assets		2,302,125			1,852,470			449,655
Cash and time deposits		1,140			1,225			(85	)
Certificate deposits		15,000			20,500			(5,500	)
Money held in trust		42,124			57,077			(14,953	)
Short-term loans receivable		2,144,666			1,659,355			485,311
Accounts receivable		69,776			68,858			918
Deferred tax assets		1,382			25,512			(24,130	)
Other current assets		28,060			24,760			3,300
Allowance for doubtful accounts		(24	)		(4,817	)		4,793
Fixed Assets		2,263,954			1,829,038			434,916
Tangible fixed assets		48,318			55,877			(7,559	)
Buildings		17,328			20,446			(3,119	)
Furniture & fixtures		22,151			26,591			(4,440	)
Land		8,839			8,839			—
Intangible assets		107,727			110,217			(2,490	)
Software		107,726			110,217			(2,491	)
Others		1			—			1
Investments and others		2,107,908			1,662,943			444,965
Investment securities		135,674			118,980			16,694
Investments in subsidiaries and affiliates (at cost)		1,369,661			1,158,141			211,520
Other securities of subsidiaries and affiliates		17,370			24,111			(6,741	)
Long-term loans receivable from subsidiaries and affiliates		389,964			135,000			254,964
Long-term guarantee deposits		37,726			42,671			(4,945	)
Deferred tax assets		126,026			155,297			(29,271	)
Other investments		31,521			28,802			2,718
Allowance for doubtful accounts		(32	)		(57	)		25
TOTAL ASSETS		4,566,078			3,681,507			884,571

 

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		(Millions of yen)
		March 31, 2010			March 31, 2009			Increase/ (Decrease)
LIABILITIES
Current liabilities		205,130			612,287			(407,157	)
Short-term borrowings		49,600			470,000			(420,400	)
Bond due within one year		70,000			60,000			10,000
Collaterals received		50,640			39,663			10,977
Accrued income taxes		3			2			2
Other current liabilities		34,886			42,622			(7,735	)
Long-term liabilities		2,554,642			1,825,139			729,503
Bonds payable		1,270,055			695,446			574,610
Convertible Bonds		—			110,000			(110,000	)
Long-term borrowings		1,280,374			1,018,000			262,374
Other long-term liabilities		4,213			1,693			2,520
TOTAL LIABILITIES		2,759,771			2,437,425			322,346
NET ASSETS
Shareholders’ equity		1,751,573			1,192,353			559,221
Common stock		594,493			321,765			272,728
Additional paid-in capital		528,740			251,469			277,270
Capital reserve		524,197			251,469			272,728
Other capital reserves		4,542			—			4,542
Retained earnings		694,625			693,673			953
Retained earnings reserve		81,858			81,858			—
Other retained earnings		612,767			611,815			953
Reserve for specified fixed assets		11			13			(2	)
General reserve		994,000			994,000			—
Retained earnings carried forward		(381,243	)		(382,199	)		955
Treasury stock		(66,285	)		(74,554	)		8,269
Valuation and translation adjustments		30,700			24,613			6,087
Net unrealized gain on investments		21,801			16,157			5,644
Deferred gains or loss on hedges		8,899			8,456			443
Stock acquisition rights		24,033			27,116			(3,083	)
TOTAL NET ASSETS		1,806,307			1,244,082			562,225
TOTAL LIABILITIES AND NET ASSETS		4,566,078			3,681,507			884,571

 

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(2)	Unconsolidated Statements of Operations (UNAUDITED)

 

		(Millions of yen except percentages)
		For the year ended March 31, 2010(A)			For the year ended March 31, 2009(B)			% Change (A-B)/(B)
Operating revenue		220,873			340,071			(35.1	)%
Property and equipment fee revenue		108,691			116,478			(6.7	)
Rent revenue		39,918			38,450			3.8
Royalty on trademark		20,901			14,088			48.4
Dividend from subsidiaries and affiliates		27,628			143,552			(80.8	)
Others		23,736			27,502			(13.7	)
Operating expenses		183,943			204,768			(10.2	)
Compensation and benefits		16,704			21,884			(23.7	)
Occupancy and related depreciation		45,006			42,954			4.8
Data processing and office supplies		43,105			37,802			14.0
Depreciation and amortization		44,145			54,056			(18.3	)
Others		7,431			13,545			(45.1	)
Interest expenses		27,553			34,529			(20.2	)
Operating income		36,930			135,303			(72.7	)
Non-operating income		2,635			2,776			(5.1	)
Non-operating expenses		10,445			10,898			(4.2	)
Ordinary income		29,121			127,181			(77.1	)
Extraordinary income		7,309			2,739			166.9
Reversal of allowance for doubtful accounts		4,812			—			—
Gain on sales of investment securities		646			2,577			(74.9	)
Gain on capital reduction of subsidiaries and affiliates		1,479			—			—
Gain on sales of fixed assets		372			162			129.9
Extraordinary loss		26,456			567,577			(95.3	)
Loss on sales of investment securities		965			636			51.7
Loss on devaluation of investment securities		2,908			8,451			(65.6	)
Loss on liquidation of subsidiaries and affiliates		1,747			—			—
Loss on sales of stocks of subsidiaries and affiliates		257			—			—
Loss on devaluation of investments in subsidiaries and affiliates		16,878			555,926			(97.0	)
Loss on retirement of fixed assets		3,700			2,564			44.3
Income (loss) before income taxes		9,974			(437,658	)		—
Income taxes - current		(51,280	)		(6,949	)		—
Income taxes - deferred		49,171			(36,997	)		—
Total income taxes		(2,109	)		(43,946	)		—
Net income (loss)		12,083			(393,712	)		—

 

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(3)	Unconsolidated Statements of Changes in Shareholders’ equity (UNAUDITED)

 

		(Millions of yen)
		Year ended March 31
		2010			2009
Shareholder’s Equity
Common stock
Balance at beginning of the year		321,765			182,800
Change in the year
Issuance of new shares		217,728			138,965
Conversion of convertible bonds		55,000			—
Total change in the year		272,728			138,965
Balance at end of the year		594,493			321,765
Additional paid-in capital
Capital reserve
Balance at beginning of the year		251,469			112,504
Change in the year
Issuance of new shares		217,728			138,965
Conversion of convertible bonds		55,000			—
Total change in the year		272,728			138,965
Balance at end of the year		524,197			251,469
Other capital reserve
Balance at beginning of the year		—			—
Change in the year
Disposal of treasury stock		4,542			—
Total change in the year		4,542			—
Balance at end of the year		4,542			—
Total capital reserve
Balance at beginning of the year		251,469			112,504
Change in the year
Issuance of new shares		217,728			138,965
Conversion of convertible bonds		55,000			—
Disposal of treasury stock		4,542			—
Total change in the year		277,270			138,965
Balance at end of the year		528,740			251,469
Retained earnings
Retained earnings reserve
Balance at beginning of the year		81,858			81,858
Balance at end of the year		81,858			81,858
Other retained earnings
Reserve for specified fixed assets
Balance at beginning of the year		13			16
Change in the year
Reversal of reserve for specified fixed assets		(2	)		(3	)
Total change in the year		(2	)		(3	)
Balance at end of the year		11			13
General reserve
Balance at beginning of the year		994,000			994,000
Balance at end of the year		994,000			994,000
Retained earnings carried forward
Balance at beginning of the year		(382,199	)		79,442
Change in the year
Cash dividends		(11,130	)		(64,924	)
Reversal of reserve for specified fixed assets		2			3
Net income (loss)		12,083			(393,712	)
Disposal of treasury stock		—			(3,007	)
Total change in the year		955			(461,640	)
Balance at end of the year		(381,243	)		(382,199	)
Total retained earnings
Balance at beginning of the year		693,673			1,155,315
Change in the year
Cash dividends		(11,130	)		(64,924	)
Net income (loss)		12,083			(393,712	)
Disposal of treasury stock		—			(3,007	)
Total change in the year		953			(461,643	)
Balance at end of the year		694,625			693,673

 

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		(Millions of yen)
		Year ended March 31
		2010			2009
Treasury stock
Balance at beginning of the year		(74,554	)		(78,296	)
Change in the year
Purchases of treasury stock		(18	)		(91	)
Disposal of treasury stock		8,288			3,832
Total change in the year		8,269			3,742
Balance at end of the year		(66,285	)		(74,554	)
Total shareholders’ equity
Balance at beginning of the year		1,192,353			1,372,324
Change in the year
Issuance of new shares		435,456			277,930
Conversion of convertible bonds		110,000			—
Cash dividends		(11,130	)		(64,924	)
Net income (loss)		12,083			(393,712	)
Purchases of treasury stock		(18	)		(91	)
Disposal of treasury stock		12,830			826
Total change in the year		559,221			(179,971	)
Balance at end of the year		1,751,573			1,192,353
Valuation and translation adjustments
Net unrealized gain on investments
Balance at beginning of the year		16,157			34,914
Change in the year
Other-net		5,644			(18,756	)
Total change in the year		5,644			(18,756	)
Balance at end of the year		21,801			16,157
Deferred gains or loss on hedges
Balance at beginning of the year		8,456			5,023
Change in the year
Other-net		443			3,433
Total change in the year		443			3,433
Balance at end of the year		8,899			8,456
Total valuation and translation adjustments
Balance at beginning of the year		24,613			39,936
Change in the year
Other-net		6,087			(15,323	)
Total change in the year		6,087			(15,323	)
Balance at end of the year		30,700			24,613
Stock acquisition rights
Balance at beginning of the year		27,116			11,401
Change in the year
Other-net		(3,083	)		15,715
Total change in the year		(3,083	)		15,715
Balance at end of the year		24,033			27,116
Total net assets
Balance at beginning of the year		1,244,082			1,423,661
Change in the year
Issuance of new shares		435,456			277,930
Conversion of convertible bonds		110,000			—
Cash dividends		(11,130	)		(64,924	)
Net income (loss)		12,083			(393,712	)
Purchases of treasury stock		(18	)		(91	)
Disposal of treasury stock		12,830			826
Other-net		3,004			392
Total change in the year		562,225			(179,579	)
Balance at end of the year		1,806,307			1,244,082

 

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(4)	Note with respect to the assumption as a going concern (UNAUDITED)

Not applicable.

 

6.

Other

 

(1)	Changes of directors

Nomura has announced the changes in directors on March 8, 2010. To find the details, please click on the following URL.

(Nomura’s Website)

http://www.nomuraholdings.com/news/nr/holdings/20100308/20100308.html

 

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(2)	Other Financial Infomations

Supplemental Unconsolidated Financial Information [Japanese GAAP] (UNAUDITED)

 

•

Nomura Securities Co., Ltd. - Unconsolidated Balance Sheet Information

 

•

Nomura Securities Co., Ltd. - Unconsolidated Income Statement Information

 

•

Nomura Securities Co., Ltd. - Supplementary Information

 

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Nomura Securities Co., Ltd.

Unconsolidated Balance Sheet Information

 

		(Millions of yen)
		March 31, 2010			March 31, 2009			Increase/(Decrease)
ASSETS
Current Assets		9,268,687			12,682,853			(3,414,165	)
Cash and time deposits		695,238			246,865			448,373
Deposits with exchanges and other segregated cash		9,292			692			8,600
Trading assets:		4,211,858			6,377,645			(2,165,788	)
Trading securities		3,361,457			4,976,307			(1,614,850	)
Derivative contracts		850,401			1,401,338			(550,938	)
Net receivables arising from pre-settlement date trades		428,435			590,008			(161,574	)
Margin account assets:		135,534			62,478			73,056
Loans to customers in margin transactions		113,366			45,976			67,390
Cash collateral to securities finance companies		22,168			16,503			5,665
Loans with securities as collateral:		3,288,350			4,920,428			(1,632,078	)
Cash collateral for securities borrowed		2,780,651			4,246,174			(1,465,524	)
Loans in gensaki transactions		507,699			674,253			(166,554	)
Receivables from customers and others		2,363			4,385			(2,021	)
Short-term guarantee deposits		301,750			296,310			5,440
Short-term loans receivable		12,312			3,761			8,551
Deferred tax assets		135,428			107,470			27,959
Other current assets		48,148			72,823			(24,675	)
Allowance for doubtful accounts		(21	)		(11	)		(9	)
Fixed Assets		89,446			113,611			(24,166	)
Tangible fixed assets		146			114			31
Intangible assets		6,125			7,177			(1,052	)
Investments and others		83,175			106,320			(23,145	)
Investment securities		195			195			—
Deferred tax assets		49,844			57,737			(7,894	)
Other investments		33,779			48,937			(15,157	)
Allowance for doubtful accounts		(643	)		(549	)		(94	)
TOTAL ASSETS		9,358,133			12,796,464			(3,438,331	)

 

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		(Millions of yen)
		March 31, 2010		March 31, 2009		Increase/ (Decrease)
LIABILITIES
Current Liabilities		7,499,237		11,059,662		(3,560,425	)
Trading liabilities:		2,115,364		2,129,948		(14,584	)
Trading securities		1,721,292		1,706,193		15,099
Derivative contracts		394,072		423,755		(29,683	)
Margin account liabilities:		73,990		38,194		35,797
Borrowings from securities finance companies		4,631		1,203		3,428
Customer margin sale proceeds		69,360		36,991		32,369
Borrowings with securities as collateral:		1,649,225		3,345,360		(1,696,134	)
Cash collateral for securities loaned		587,248		1,404,061		(816,812	)
Borrowings in gensaki transactions		1,061,977		1,941,299		(879,322	)
Payables to customers and others		484,587		113,075		371,512
Guarantee deposits received		437,200		792,365		(355,165	)
Short-term borrowings		2,073,100		4,254,146		(2,181,046	)
Short-term bonds payable		419,200		315,900		103,300
Bond due within one year		64,000		—		64,000
Accrued income taxes		17,644		179		17,464
Accounts payable		71,163		6,416		64,747
Accrued bonuses for employees		39,283		22,692		16,590
Other current liabilities		54,481		41,388		13,094
Long-term Liabilities		1,030,619		1,009,831		20,789
Bonds payable		160,288		224,287		(63,999	)
Long-term borrowings		778,400		692,700		85,700
Reserve for retirement benefits		65,237		55,704		9,534
Other long-term liabilities		26,694		37,140		(10,447	)
Statutory Reserves		6,244		5,519		725
Reserve for financial instruments transactions		6,244		5,519		725
TOTAL LIABILITIES		8,536,100		12,075,012		(3,538,912	)
NET ASSETS
Shareholder’s equity		820,090		719,322		100,768
Common stock		10,000		10,000		—
Additional paid-in capital		571,979		529,579		42,400
Capital reserves		529,579		529,579		—
Other capital reserves		42,400		—		42,400
Retained earnings		238,111		179,743		58,368
Other retained earnings		238,111		179,743		58,368
General reserve		63,000		63,000		—
Retained earnings carried forward		175,111		116,743		58,368
Valuation and translation adjustments		1,943		2,131		(188	)
Deferred gains or loss on hedges		1,943		2,131		(188	)
TOTAL NET ASSETS		822,033		721,453		100,581
TOTAL LIABILITIES AND NET ASSETS		9,358,133		12,796,464		(3,438,331	)

 

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Nomura Securities Co., Ltd.

Unconsolidated Income Statement Information

 

		(Millions of yen except percentages)
		For the year ended March 31, 2010(A)			For the year ended March 31, 2009(B)			% Change (A-B)/(B)
Operating revenue		663,679			502,201			32.2	%
Commissions		418,003			281,769			48.3
Net gain on trading		182,287			96,642			88.6
Net gain on other inventories		7			12			(41.4	)
Interest and dividend income		63,382			123,779			(48.8	)
Interest expenses		60,218			116,499			(48.3	)
Net operating revenue		603,461			385,702			56.5
Selling, general and administrative expenses		475,885			445,994			6.7
Transaction-related expenses		74,148			70,525			5.1
Compensation and benefits		194,620			173,912			11.9
Occupancy and related depreciation		52,350			52,938			(1.1	)
Data processing and office supplies		141,168			137,159			2.9
Others		13,598			11,459			18.7
Operating income (loss)		127,576			(60,292	)		—
Non-operating income		1,011			2,404			(57.9	)
Non-operating expenses		1,944			2,187			(11.1	)
Ordinary income (loss)		126,643			(60,075	)		—
Extraordinary income		1,166			1,847			(36.9	)
Gains due to the exemption from payments of share-based compensation		1,166			1,739			(33.0	)
Reversal of reserve for financial instruments transactions		—			107			—
Extraordinary loss		294			4,010			(92.7	)
Loss on transition to defined contribution pension plan		—			4,010			—
Reserve for financial instruments transactions		294			—			—
Income (loss) before income taxes		127,515			(62,238	)		—
Income taxes - current		68,306			(6,396	)		—
Income taxes - deferred		(17,644	)		(18,333	)		—
Total income taxes		50,662			(24,729	)		—
Net income (loss)		76,853			(37,509	)		—

 

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Nomura Securities Co., Ltd.

Quarterly Income Statement Information

 

		(Millions of yen)
		For the Quarter from April 1, 2009 to June 30, 2009			For the Quarter from July 1, 2009 to September 30,  2009			For the Quarter from  October 1, 2009 to December 31, 2009			For the Quarter from January 1, 2010 to March 31,  2010			Year Ended March 31, 2010
Operating revenue		195,430			155,130			177,777			135,343			663,679
Commissions		100,914			97,824			126,527			92,738			418,003
Net gain on trading		72,051			42,036			35,697			32,503			182,287
Net gain on other inventories		2			1			2			2			7
Interest and dividend income		22,463			15,269			15,550			10,099			63,382
Interest expenses		22,310			13,401			14,651			9,857			60,218
Net operating revenue		173,120			141,728			163,126			125,486			603,461
Selling, general and administrative expenses		124,137			119,009			120,289			112,449			475,885
Transaction-related expenses		17,980			17,017			19,753			19,399			74,148
Compensation and benefits		57,575			50,735			50,175			36,136			194,620
Rental and maintenance		12,902			13,603			13,294			12,552			52,350
Data processing and office supplies		32,111			34,340			33,839			40,878			141,168
Other		3,571			3,314			3,228			3,484			13,598
Operating income		48,983			22,719			42,837			13,037			127,576
Non-operating income		211			142			506			151			1,011
Non-operating expenses		427			262			680			575			1,944
Ordinary income		48,767			22,599			42,663			12,613			126,643
Extraordinary income		398			262			287			219			1,166
Gains due to the exemption from payments of share-based compensation		397			260			255			253			1,166
Reversal of allowance for doubtful accounts		—			2			32			(34	)		—
Reversal of reserve for financial instruments transactions		0			—			0			—			—
Extraordinary loss		—			—			286			8			294
Reserve for financial instruments transactions		—			—			286			8			294
Income before income taxes		49,165			22,862			42,665			12,824			127,515
Income taxes - current		(6,564	)		(216	)		54,604			20,481			68,306
Income taxes - deferred		25,844			8,531			(39,240	)		(12,778	)		(17,644	)
Total income taxes		19,280			8,315			15,364			7,703			50,662
Net income		29,885			14,547			27,301			5,121			76,853

 

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NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

1. Commission Revenues

(1) Breakdown by Category

 

		(Millions of yen except percentages)
		Year Ended				% Change (A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Brokerage commissions		80,527		83,981		(4.1	)%
(Stocks)		75,268		78,363		(3.9	)
Underwriting commissions		72,328		20,010		261.5
(Stocks)		64,549		14,242		353.2
(Bonds)		7,779		5,768		34.9
Distribution commissions		165,939		76,382		117.2
(Investment trust certificates)		165,828		75,815		118.7
Other commissions		99,210		101,396		(2.2	)
(Investment trust certificates)		45,756		50,271		(9.0	)
Total		418,003		281,769		48.3

(2) Breakdown by Product

 

		(Millions of yen except percentages)
		Year Ended				% Change (A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Stocks		148,711		96,825		53.6	%
Bonds		14,163		9,054		56.4
Investment trust certificates		215,568		131,054		64.5
Others		39,561		44,835		(11.8	)
Total		418,003		281,769		48.3

2. Net Gain (Loss) on Trading

 

		(Millions of yen except percentages)
		Year Ended					% Change (A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Stocks		18,539		(36,283	)		—	%
Bonds and Forex		163,748		132,925			23.2
Total		182,287		96,642			88.6

 

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NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

3. Stock Trading (excluding futures transactions)

 

		(Millions of shares or yen except per share data and percentages)
		Year Ended												% Change (A-B)/(B)
		March 31, 2010 (A)						March 31, 2009 (B)
		Number of shares			Amount			Number of shares			Amount			Number of shares			Amount
Total		98,960			75,436,568			75,098			74,068,564			31.8	%		1.8	%
(Brokerage)		74,038			55,976,203			46,600			45,202,796			58.9			23.8
(Proprietary Trading)		24,922			19,460,364			28,498			28,865,768			(12.5	)		(32.6	)
Brokerage / Total		74.8	%		74.2	%		62.1	%		61.0	%
Tokyo Stock Exchange Share		8.0	%		9.2	%		6.3	%		6.7	%
Brokerage Commission per share (yen)		1.02						1.65

4. Underwriting, Subscription, and Distribution

 

		(Millions of shares or yen except percentages)
		Year Ended				% Change (A-B)/(B)
		March 31, 2010 (A)		March 31, 2009 (B)
Underwriting
Stocks (number of shares)		3,047		432		605.1	%
(yen amount)		1,606,995		511,831		214.0
Bonds (face value)		5,499,567		6,042,417		(9.0	)
Investment trust certificates (yen amount)		—		—		—
Beneficial interest (face value)		—		—		—
Subscription and Distribution*
Stocks (number of shares)		3,710		471		687.5
(yen amount)		1,979,166		407,583		385.6
Bonds (face value)		1,614,060		3,005,057		(46.3	)
Investment trust certificates (yen amount)		19,342,020		14,658,925		31.9
Beneficial interest (face value)		—		—		—

 

* Includes secondary offering and private placement.

5. Capital Adequacy Ratio

 

							(Rounded down to millions of yen except percentages)
							March 31, 2010			March 31, 2009			Increase/ (Decrease)
Tier I				(A	)		820,090			719,321			100,769
Tier II		Valuation and translation adjustments					1,942			2,130			(188	)
		Statutory reserves					6,243			5,518			725
		Allowance for doubtful accounts					20			11			9
		Subordinated debt					606,088			606,085			3
		Total		(B	)		614,295			613,747			548
Illiquid Asset				(C	)		119,148			136,123			(16,975	)
Net Capital (A) + (B) - (C) =				(D	)		1,315,237			1,196,946			118,291
Risk		Market risk					119,130			99,113			20,017
		Counterparty risk					188,244			210,482			(22,238	)
		Basic risk					135,858			135,675			183
		Total		(E	)		443,233			445,271			(2,038	)
Capital Adequacy Ratio				(D	)/(E)		296.7	%		268.8	%		27.9	%

 

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