Edgar Filing: NOMURA HOLDINGS INC

Form 6-K

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 July 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):

Information furnished on this form:

EXHIBIT


Exhibit Number

1.		Financial Highlights – Three months ended June 2010

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: July 30, 2010	By:	/s/ Shinji Iwai
		Shinji Iwai
		Senior Managing Director

Financial Summary For the Three Months Ended June 30, 2010 (US GAAP)


Date:		July 30, 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:		Kazuhisa Kishimoto
		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 three months ended June 30
	2010				2009
	(Millions of yen, except per share data)
			% Change from June 30, 2009				% Change from June 30, 2008
Total revenue	314,016		(13.6	%)	363,595		41.0	%
Net revenue	259,824		(12.9	%)	298,359		120.9	%
Income before income taxes	6,470		(79.4	%)	31,421		—
Net income attributable to Nomura Holdings, Inc. (“NHI”) Shareholders	2,322		(79.7	%)	11,420		—
Basic-Net income attributable to NHI shareholders per share (Yen)	0.63				4.37
Diluted-Net income attributable to NHI shareholders per share (Yen)	0.63				1.81
Return on shareholders’ equity (annualized)	0.4	%			3.0	%

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI to Total NHI shareholders’ equity. (2) Financial Position
	At June 30				At March 31
	2010				2010
	(Millions of yen, except per share data)
Total assets			33,935,100				32,230,428
Total equity			2,111,898				2,133,014
Total NHI shareholders’ equity			2,101,764				2,126,929
Total NHI shareholders’ equity as a percentage of total assets			6.2	%			6.6	%
Total NHI shareholders’ equity per share (Yen)			572.10				579.70

Note: Shareholders’ equity per share is calculated with Total NHI shareholders’ equity.

2. Cash dividends


	For the year ended March 31
	2010	2011	2011 (Plan)
	(Yen amounts)
Dividends per share
dividends record dates
At June 30	—	—	—
At September 30	4.00	—	Unconfirmed
At December 31	—	—	—
At March 31	4.00	—	Unconfirmed
For the year	8.00	—	Unconfirmed

Notes:

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

2.	Nomura plan to forgo dividend distribution for 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.

4. Other

For details, please refer to page 5 “Others” of the accompanying materials.

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

(2) Adoption of the Simplified and Particular Accounting Treatments: None

(3) Changes in Accounting Principles, Procedures and Presentations

Changes due to amendments to the accounting standards : Yes

Changes due to other than in a) : None

(4) Number of shares issued (common stock)


	At June 30	At March 31
	2010	2010
Number of shares outstanding (including treasury stock)	3,719,133,241	3,719,133,241
Number of treasury stock	45,331,805	50,088,627

	For the three months ended June 30
	2010	2009
Average number of shares outstanding	3,671,473,025	2,611,721,313

* Quarterly Review

The review process of the quarterly consolidated financial statements for this period has not been completed by the external auditors at the point of disclosing this financial summary.

Table of Contents for the Accompanying Materials


1. Qualitative Information of the Quarterly Consolidated Results		P.2

(1) Consolidated Operating Results		P.2
(2) Consolidated Financial Position		P.5
(3) Consolidated Earnings Forecasts		P.5

2. Others		P.5

(1) Significant Changes to Subsidiaries		P.5
(2) Simplified and Particular Accounting Treatments		P.5
(3) Changes in Accounting Principles, Procedures and Presentations		P.5

3. Quarterly Consolidated Financial Statements		P.6

(1) Consolidated Balance Sheets		P.7
(2) Consolidated Statements of Operations		P.9
(3) Note with respect to the Assumption as a Going Concern		P.9
(4) Segment Information-Operating Segment		P.10
(5) Significant Changes in Equity		P.11
(6) Consolidated Statements of Operations – Quarterly Comparatives		P.12
(7) Business Segment Information – Quarterly Comparatives		P.13

4. (Reference Information) Unconsolidated Quarterly Financial Statements		P.14

(1) Unconsolidated Balance Sheet		P.14
(2) Unconsolidated Income Statement		P.14

5. Supplementary Information		P.15

(1) Financial Status of a Major Subsidiary		P.15

1.	Qualitative Information of the Quarterly Consolidated Results

(1)

Consolidated Operating Results

US GAAP


	Billions of yen				% Change
	For the three months ended				(A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)		(A-B)/(B)
Net revenue	259.8		298.4		(12.9	)
Non-interest expenses	253.4		266.9		(5.1	)

Income (loss) before income taxes	6.5		31.4		(79.4	)
Income tax expense	3.4		20.7		(83.4	)

Net income (loss)	3.0		10.7		(71.8	)

Less: Net income (loss) attributable to noncontrolling interests	0.7		(0.7	)	—

Net income (loss) attributable to NHI Shareholders	2.3		11.4		(79.7	)

Return on shareholders’ equity* (annualized)	0.4	%	3.0	%	—

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

Nomura Holdings, Inc. and its consolidated entities (“Nomura”) reported net revenue of 259.8 billion yen for the three months ended June 30, 2010, a decrease of 12.9% from the same period in the prior year. Non-interest expenses decreased 5.1% from the same period in the prior year to 253.4 billion yen, Income before income taxes was 6.5 billion yen and Net income attributable to NHI Shareholders was 2.3 billion yen for the three months ended June 30, 2010.

Segment Information


	Billions of yen		% Change
	For the three months ended		(A-B)/(B)
	June 30, 2010 (A)	June 30, 2009 (B)	(A-B)/(B)
Net revenue	270.4	288.6	(6.3	)
Non-interest expenses	253.4	266.9	(5.1	)

Income (loss) before income taxes	17.1	21.7	(21.3	)

In business segment totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the three months ended June 30, 2010 was 270.4 billion yen, a decrease of 6.3% from the same period in the prior year. Non-interest expenses decreased 5.1% from the same period in the prior year to 253.4 billion yen. Income before income taxes was 17.1 billion yen for the three months ended June 30, 2010. Please refer to page 10 for further details of the differences between US GAAP and business segment amounts.

<Business Segment Results>

Nomura realigned its reporting segments in relation to how it operates and manages its business by merging the Global Markets, Investment Banking, and Merchant Banking divisions into the Wholesale division. Nomura now divides its business segments into three divisions of Retail, Asset Management, and Wholesale.

Operating Results of Retail


	Billions of yen		% Change
	For the three months ended		(A-B)/(B)
	June 30, 2010 (A)	June 30, 2009 (B)	(A-B)/(B)
Net revenue	111.0	95.4	16.3
Non-interest expenses	73.2	67.5	8.4

Income (loss) before income taxes	37.7	27.9	35.5

Net revenue increased 16.3% from the same period in the prior year to 111.0 billion yen, due primarily to increasing commissions for distribution of investment trusts. Non-interest expenses increased 8.4% to 73.2 billion yen. As a result, income before income taxes increased 35.5% to 37.7 billion yen.

Operating Results of Asset Management


	Billions of yen		% Change
	For the three months ended		(A-B)/(B)
	June 30, 2010 (A)	June 30, 2009 (B)	(A-B)/(B)
Net revenue	18.1	18.7	(2.8	)
Non-interest expenses	13.2	13.5	(2.2	)

Income (loss) before income taxes	4.9	5.1	(4.5	)

Net revenue decreased 2.8% from the same period in the prior year to 18.1 billion yen. Non-interest expenses decreased 2.2% to 13.2 billion yen. As a result, income before income taxes decreased 4.5% to 4.9 billion yen. Assets under management was 22.2 trillion yen at the end of June 2010.

Operating Results of Wholesale


	Billions of yen			% Change
	For the three months ended			(A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)	(A-B)/(B)
Net revenue	108.6		211.7	(48.7	)
Non-interest expenses	149.8		158.5	(5.5	)

Income (loss) before income taxes	(41.1	)	53.3	—

Net revenue decreased 48.7% from the same period in the prior year to 108.6 billion yen, due primarily to decreasing net gain on trading. Non-interest expenses decreased 5.5% to 149.8 billion yen. As a result, loss before income taxes was 41.1 billion yen.

Other Operating Results


	Billions of yen			% Change
	For the three months ended			(A-B)/(B)
	June 30, 2010 (A)	June 30, 2009 (B)		(A-B)/(B)
Net revenue	32.7	(37.1	)	—
Non-interest expenses	17.2	27.4		(37.4	)

Income (loss) before income taxes	15.6	(64.6	)	—

Net revenue was 32.7 billion yen. Income before income taxes was 15.6 billion yen.

(2)

Consolidated Financial Position

Total assets as of June 30, 2010, were 33.9 trillion yen, an increase of 1.7 trillion yen compared to March 31, 2010, reflecting primarily the increase in Trading assets. Total liabilities as of June 30, 2010 were 31.8 trillion yen, an increase of 1.7 trillion yen compared to March 31, 2010, mainly due to the increase in Securities sold under agreements to repurchase. Total equity as of June 30, 2010 was 2.1 trillion yen, a decrease of 21.1 billion yen compared to March 31, 2010.

(3)

Consolidated Earnings Forecasts

2.	Others

(1)

Significant Changes to Subsidiaries

Not applicable.

(2)

Simplified and Particular Accounting Treatments

Not applicable.

(3)

Changes in Accounting Principles, Procedures and Presentations

Transfers of financial assets and consolidation of variable interest entities—

On April 1, 2010, Nomura adopted amendments to Accounting Standard Codification Topic (“ASC”) 810 “Consolidation” introduced by Accounting Standards Update (“ASU”) 2009-17. The ASU revises the definition of a variable interest entity (“VIE”), when a reporting entity is required to consolidate a VIE and when reassessment of a consolidation decision is required. As a result, the balance of the retained earnings at the beginning of the year has been adjusted.

Also on April 1, 2010, Nomura adopted amendments to ASC 860 “Transfers and Servicing” introduced by ASU 2009-16. The ASU revises the accounting for transfers of financial assets and eliminates the concept of a qualifying special purpose entity (“QSPE”). Entities formerly meeting the definition of a QSPE are now evaluated for consolidation under the revised consolidation guidance provided by ASC 810 as amended by ASU 2009-17.

Net investment hedge—

Effectively from April 1, 2010, Nomura adopted net investment hedging to mitigate foreign exchange risks created by some significant foreign subsidiaries. Accordingly, the net translation adjustment amount recognized in the consolidation processes is reduced by the effective portion of the foreign exchange gains (or losses) on the hedging instruments for net investment in such foreign subsidiaries.

3.	Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 29, 2010) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 29, 2010) for the year ended March 31, 2010.

In relation to significant changes to accounting principles, procedures and presentation (changes in accordance with amendments to the accounting standards), please refer to section “2. Others, (3) Changes in Accounting Principles, Procedures and Presentations”.

The review process of the quarterly consolidated financial statements for this period has not been completed by the external auditors.

(1)

Consolidated Balance Sheets (UNAUDITED)


	Millions of yen
	June 30, 2010		March 31, 2010		Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents	665,074		1,020,647		(355,573	)
Time deposits	194,764		196,909		(2,145	)
Deposits with stock exchanges and other segregated cash	188,116		134,688		53,428

Cash and cash deposits, Total	1,047,954		1,352,244		(304,290	)

Loans and receivables:
Loans receivable	1,226,391		1,310,375		(83,984	)
Receivables from customers	40,334		59,141		(18,807	)
Receivables from other than customers	709,759		707,623		2,136
Allowance for doubtful accounts	(4,641	)	(5,425	)	784

Loans and receivables, Total	1,971,843		2,071,714		(99,871	)

Collateralized agreements:
Securities purchased under agreements to resell	7,153,342		7,073,926		79,416
Securities borrowed	5,609,120		5,393,287		215,833

Collateralized agreements, Total	12,762,462		12,467,213		295,249

Trading assets and private equity investments:
Trading assets*	16,091,408		14,374,028		1,717,380
Private equity investments	310,776		326,254		(15,478	)

Trading assets and private equity investments, Total	16,402,184		14,700,282		1,701,902

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥287,744 million at June 30, 2010 and ¥273,616 million at March 31, 2010)	399,693		357,194		42,499
Non-trading debt securities*	387,151		308,814		78,337
Investments in equity securities*	110,718		122,948		(12,230	)
Investments in and advances to affiliated companies*	248,324		251,273		(2,949	)
Other	604,771		598,746		6,025

Other assets, Total	1,750,657		1,638,975		111,682

Total assets	33,935,100		32,230,428		1,704,672

*	Including securities pledged as collateral


	Millions of yen
	June 30, 2010		March 31, 2010		Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings	1,821,613		1,301,664		519,949
Payables and deposits:
Payables to customers	469,786		705,302		(235,516	)
Payables to other than customers	399,442		374,522		24,920
Deposits received at banks	592,376		448,595		143,781

Payables and deposits, Total	1,461,604		1,528,419		(66,815	)

Collateralized financing:
Securities sold under agreements to repurchase	9,367,381		8,078,020		1,289,361
Securities loaned	1,725,668		1,815,981		(90,313	)
Other secured borrowings	1,196,705		1,322,480		(125,775	)

Collateralized financing, Total	12,289,754		11,216,481		1,073,273

Trading liabilities	8,143,142		8,356,806		(213,664	)
Other liabilities	354,022		494,983		(140,961	)
Long-term borrowings	7,753,067		7,199,061		554,006

Total liabilities	31,823,202		30,097,414		1,725,788

Equity
NHI shareholders’ equity:
Common stock
Authorized - 6,000,000,000 shares
Issued - 3,719,133,241 shares at June 30, 2010 and 3,719,133,241 shares at March 31, 2010
Outstanding - 3,673,801,436 shares at June 30, 2010 and 3,669,044,614 shares at March 31, 2010	594,493		594,493		—
Additional paid-in capital	633,311		635,828		(2,517	)
Retained earnings	1,071,801		1,074,213		(2,412	)
Accumulated other comprehensive income (loss)	(135,802	)	(109,132	)	(26,670	)

Total NHI shareholders’ equity before treasury stock	2,163,803		2,195,402		(31,599	)
Common stock held in treasury, at cost -
45,331,805 shares at June 30, 2010 and 50,088,627 shares at March 31, 2010	(62,039	)	(68,473	)	6,434

Total NHI shareholders’ equity	2,101,764		2,126,929		(25,165	)

Noncontrolling interests	10,134		6,085		4,049

Total equity	2,111,898		2,133,014		(21,116	)

Total liabilities and equity	33,935,100		32,230,428		1,704,672

(2)

Consolidated Statements of Operations (UNAUDITED)


	Millions of yen				% Change
	For the three months ended				(A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)		(A-B)/(B)
Revenue:
Commissions	118,078		102,024		15.7
Fees from investment banking	20,366		29,729		(31.5	)
Asset management and portfolio service fees	34,854		30,331		14.9
Net gain on trading	59,969		121,132		(50.5	)
Gain (loss) on private equity investments	(946	)	(2,139	)	—
Interest and dividends	75,757		58,427		29.7
Gain (loss) on investments in equity securities	(10,343	)	9,801		—
Other	16,281		14,290		13.9

Total revenue	314,016		363,595		(13.6	)
Interest expense	54,192		65,236		(16.9	)

Net revenue	259,824		298,359		(12.9	)

Non-interest expenses :
Compensation and benefits	122,087		138,081		(11.6	)
Commissions and floor brokerage	23,681		20,043		18.2
Information processing and communications	44,253		40,160		10.2
Occupancy and related depreciation	22,511		21,992		2.4
Business development expenses	7,159		6,256		14.4
Other	33,663		40,406		(16.7	)

Non-interest expenses, Total	253,354		266,938		(5.1	)

Income before income taxes	6,470		31,421		(79.4	)
Income tax expense	3,440		20,678		(83.4	)

Net income	3,030		10,743		(71.8	)

Less: Net income (loss) attributable to noncontrolling interests	708		(677	)	—

Net income attributable to NHI Shareholders	2,322		11,420		(79.7	)


	Yen				% Change
Per share of common stock:

Basic-
Net income attributable to NHI shareholders per share	0.63		4.37		(85.6	)

Diluted-
Net income attributable to NHI shareholders per share	0.63		1.81		(65.2	)

(3)

Note with respect to the Assumption as a Going Concern (UNAUDITED)

Not applicable.

(4)

Segment Information-Operating Segment (UNAUDITED)

The following table shows business segment information and reconciliation items to the consolidated statements of operations. Business segment has been divided into three divisions consisting of Retail, Asset Management, and Wholesale from this fiscal year.


	Millions of yen				% Change
	For the three months ended				(A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)		(A-B)/(B)
Net revenue

Business segment information:
Retail	110,959		95,380		16.3
Asset Management	18,119		18,650		(2.8	)
Wholesale	108,609		211,720		(48.7	)

Sub Total	237,687		325,750		(27.0	)
Other	32,730		(37,139	)	—

Net revenue	270,417		288,611		(6.3	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(10,593	)	9,748		—

Net revenue	259,824		298,359		(12.9	)


Non-interest expenses

Business segment information:
Retail	73,216		67,521		8.4
Asset Management	13,220		13,521		(2.2	)
Wholesale	149,755		158,458		(5.5	)

Sub Total	236,191		239,500		(1.4	)
Other	17,163		27,438		(37.4	)

Non-interest expenses	253,354		266,938		(5.1	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—

Non-interest expenses	253,354		266,938		(5.1	)


Income (loss) before income taxes

Business segment information:
Retail	37,743		27,859		35.5
Asset Management	4,899		5,129		(4.5	)
Wholesale	(41,146	)	53,262		—

Sub Total	1,496		86,250		(98.3	)
Other*	15,567		(64,577	)	—

Income (loss) before income taxes	17,063		21,673		(21.3	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(10,593	)	9,748		—

Income (loss) before income taxes	6,470		31,421		(79.4	)

Note:

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

*	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				(A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)		(A-B)/(B)
Net gain (loss) related to economic hedging transactions	5,228		5,350		(2.3	)
Realized gain (loss) on investments in equity securities held for operating purposes	250		53		371.7
Equity in earnings of affiliates	363		3,701		(90.2	)
Corporate items	(2,486	)	(24,896	)	—
Others	12,212		(48,785	)	—

Total	15,567		(64,577	)	—

(5)

Significant Changes in Equity (UNAUDITED)

Not applicable. For further details of the changes, please refer below.


	Millions of yen
	For the three months ended
	June 30, 2010
Common stock
Balance at beginning of year	594,493

Balance at end of period	594,493

Additional paid-in capital
Balance at beginning of year	635,828
Gain on sales of treasury stock	1,509
Issuance and exercise of common stock options	(4,026	)

Balance at end of period	633,311

Retained earnings
Balance at beginning of year	1,074,213
Net income attributable to NHI Shareholders	2,322
Cumulative effect of change in accounting principle (Note)	(4,734	)

Balance at end of period	1,071,801

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year	(74,330	)
Net change during the period	(28,200	)

Balance at end of period	(102,530	)

Defined benefit pension plans
Balance at beginning of year	(34,802	)
Pension liability adjustment	1,530

Balance at end of period	(33,272	)

Balance at end of period	(135,802	)

Common stock held in treasury
Balance at beginning of year	(68,473	)
Repurchases of common stock	(3	)
Sale of common stock	1
Common stock issued to employees	6,436
Other net change in treasury stock	0

Balance at end of period	(62,039	)

Total NHI shareholders’ equity

Balance at end of period	2,101,764

Noncontrolling interests
Balance at beginning of year	6,085
Net change during the period	4,049

Balance at end of period	10,134

Total equity
Balance at end of period	2,111,898

Note:

In relation to this change in the accounting principle, refer to section “2. Others, (3) Changes in Accounting Principles, Procedures and Presentations”.

(6)

Consolidated Statements of Operations - Quarterly Comparatives (UNAUDITED)


	Millions of yen									% Change		Millions of yen
	For the three months ended									(B-A)/(A)		For the year ended March 31, 2010
	June 30, 2009		September 30, 2009		December 31, 2009		March 31, 2010 (A)	June 30, 2010 (B)		(B-A)/(A)		For the year ended March 31, 2010
Revenue:
Commissions	102,024		95,438		101,050		96,571	118,078		22.3		395,083
Fees from investment banking	29,729		15,580		44,516		31,429	20,366		(35.2	)	121,254
Asset management and portfolio service fees	30,331		34,016		34,235		33,667	34,854		3.5		132,249
Net gain on trading	121,132		148,487		66,481		81,324	59,969		(26.3	)	417,424
Gain (loss) on private equity investments	(2,139	)	2,033		2,342		9,670	(946	)	—		11,906
Interest and dividends	58,427		53,561		67,414		55,908	75,757		35.5		235,310
Gain (loss) on investments in equity securities	9,801		(2,308	)	(3,827	)	2,376	(10,343	)	—		6,042
Other	14,290		8,663		9,377		5,153	16,281		216.0		37,483

Total revenue	363,595		355,470		321,588		316,098	314,016		(0.7	)	1,356,751
Interest expense	65,236		55,445		47,050		38,198	54,192		41.9		205,929

Net revenue	298,359		300,025		274,538		277,900	259,824		(6.5	)	1,150,822

Non-interest expenses:
Compensation and benefits	138,081		146,633		126,239		115,285	122,087		5.9		526,238
Commissions and floor brokerage	20,043		21,706		22,922		21,458	23,681		10.4		86,129
Information processing and communications	40,160		43,924		43,919		47,572	44,253		(7.0	)	175,575
Occupancy and related depreciation	21,992		22,598		21,298		21,918	22,511		2.7		87,806
Business development expenses	6,256		6,380		6,544		8,153	7,159		(12.2	)	27,333
Other	40,406		31,492		35,659		34,937	33,663		(3.6	)	142,494

	266,938		272,733		256,581		249,323	253,354		1.6		1,045,575

Income before income taxes	31,421		27,292		17,957		28,577	6,470		(77.4	)	105,247
Income tax expense	20,678		(1,049	)	7,745		9,787	3,440		(64.9	)	37,161

Net income	10,743		28,341		10,212		18,790	3,030		(83.9	)	68,086

Less: Net income (loss) attributable to noncontrolling interests	(677	)	626		(24	)	363	708		95.0		288

Net income attributable to NHI shareholders	11,420		27,715		10,236		18,427	2,322		(87.4	)	67,798


	Yen									% Change		Yen
Per share of common stock:

Basic-
Net income attributable to NHI shareholders per share	4.37		10.22		2.91		5.02	0.63		(87.5	)	21.68


Diluted-
Net income attributable to NHI shareholders per share	1.81		8.87		2.89		5.00	0.63		(87.4	)	21.59

(7)

Business Segment Information – Quarterly Comparatives (UNAUDITED)

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of operations. Business segment has been divided into three divisions consisting of Retail, Asset Management, and Wholesale from this fiscal year.


	Millions of yen										% Change		Millions of yen
	For the three months ended										(B-A)/(A)		For the year ended March 31, 2010
	June 30, 2009		September 30, 2009		December 31, 2009		March 31, 2010 (A)		June 30, 2010 (B)		(B-A)/(A)		For the year ended March 31, 2010
Net revenue

Business segment information:
Retail	95,380		93,150		104,290		95,452		110,959		16.2		388,272
Asset Management	18,650		16,467		17,247		18,001		18,119		0.7		70,365
Wholesale	211,720		199,304		210,091		168,416		108,609		(35.5	)	789,531

Sub Total	325,750		308,921		331,628		281,869		237,687		(15.7	)	1,248,168
Other	(37,139	)	(7,056	)	(53,198	)	(9,360	)	32,730		—		(106,753	)

Net revenue	288,611		301,865		278,430		272,509		270,417		(0.8	)	1,141,415

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	9,748		(1,840	)	(3,892	)	5,391		(10,593	)	—		9,407

Net revenue	298,359		300,025		274,538		277,900		259,824		(6.5	)	1,150,822


Non-interest expenses

Business segment information:
Retail	67,521		66,796		69,119		71,479		73,216		2.4		274,915
Asset Management	13,521		11,994		13,166		13,090		13,220		1.0		51,771
Wholesale	158,458		161,110		161,584		133,197		149,755		12.4		614,349

Sub Total	239,500		239,900		243,869		217,766		236,191		8.5		941,035
Other	27,438		32,833		12,712		31,557		17,163		(45.6	)	104,540

Non-interest expenses	266,938		272,733		256,581		249,323		253,354		1.6		1,045,575

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—		—		—		—		—

Non-interest expenses	266,938		272,733		256,581		249,323		253,354		1.6		1,045,575


Income (loss) before income taxes

Business segment information:
Retail	27,859		26,354		35,171		23,973		37,743		57.4		113,357
Asset Management	5,129		4,473		4,081		4,911		4,899		(0.2	)	18,594
Wholesale	53,262		38,194		48,507		35,219		(41,146	)	—		175,182

Sub Total	86,250		69,021		87,759		64,103		1,496		(97.7	)	307,133
Other*	(64,577	)	(39,889	)	(65,910	)	(40,917	)	15,567		—		(211,293	)

Income (loss) before income taxes	21,673		29,132		21,849		23,186		17,063		(26.4	)	95,840

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	9,748		(1,840	)	(3,892	)	5,391		(10,593	)	—		9,407

Income (loss) before income taxes	31,421		27,292		17,957		28,577		6,470		(77.4	)	105,247

Note:

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

*	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		Millions of yen
	For the three months ended										(B-A)/(A)		For the year ended March 31, 2010
	June 30, 2009		September 30, 2009		December 31, 2009		March 31, 2010 (A)		June 30, 2010 (B)		(B-A)/(A)		For the year ended March 31, 2010
Net gain (loss) related to economic hedging transactions	5,350		8,589		(13,316	)	2,700		5,228		93.6		3,323
Realized gain (loss) on investments in equity securities held for operating purposes	53		(468	)	65		(3,015	)	250		—		(3,365	)
Equity in earnings of affiliates	3,701		602		1,877		1,585		363		(77.1	)	7,765
Corporate items	(24,896	)	(19,588	)	(10,693	)	(28,114	)	(2,486	)	—		(83,291	)
Others	(48,785	)	(29,024	)	(43,843	)	(14,073	)	12,212		—		(135,725	)

Total	(64,577	)	(39,889	)	(65,910	)	(40,917	)	15,567		—		(211,293	)

4.	(Reference Information) Unconsolidated Quarterly Financial Statements

Unconsolidated quarterly financial statements have been voluntarily disclosed and prepared based on regulatory rules.

(1)

Unconsolidated Balance Sheet [Japanese GAAP]

Nomura Holdings, Inc.

(UNAUDITED)


	Millions of yen
	June 30, 2010		March 31, 2010		Increase/(Decrease)
Assets
Current Assets	2,818,753		2,302,125		516,628
Fixed Assets	2,231,511		2,263,954		(32,442	)

Total Assets	5,050,264		4,566,078		484,186

Liabilities
Current Liabilities	539,192		205,130		334,063
Long-term Liabilities	2,687,994		2,554,642		133,353

Total Liabilities	3,227,187		2,759,771		467,415

Net Assets
Shareholders’ equity	1,757,449		1,751,573		5,875
Valuation and translation adjustments	45,494		30,700		14,794
Subscription rights to shares	20,135		24,033		(3,899	)

Total Net Assets	1,823,077		1,806,307		16,770

Total Liabilities and Net Assets	5,050,264		4,566,078		484,186

(2) Unconsolidated Income Statement [Japanese GAAP] Nomura Holdings, Inc. (UNAUDITED)
	Millions of yen
	For the three months ended				% Change (A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)		% Change (A-B)/(B)
Operating revenue	58,620		73,877		(20.7	)
Operating expenses	50,124		43,676		14.8

Operating income	8,496		30,201		(71.9	)

Non-operating income	3,791		1,206		214.2
Non-operating expenses	677		1,353		(50.0	)

Ordinary income	11,610		30,054		(61.4	)

Special profits	490		4,866		(89.9	)
Special losses	357		17,682		(98.0	)

Income before income taxes	11,743		17,238		(31.9	)

Income taxes - current	(455	)	8,429		—
Income taxes - deferred	(542	)	(7,267	)	—

Net income	12,739		16,075		(20.8	)

5.	Supplementary Information

(1)

Financial Status of a Major Subsidiary [Japanese GAAP]

Nomura Securities Co., Ltd.

Unconsolidated Balance Sheet

(UNAUDITED)


	Millions of yen
	June 30, 2010		March 31, 2010		Increase/(Decrease)
Assets
Current Assets:	10,349,484		9,268,687		1,080,797

Trading assets	5,833,330		4,211,858		1,621,473
Loans with securities as collateral	3,336,509		3,288,350		48,159
Other	1,179,644		1,768,480		(588,835	)

Fixed Assets	120,483		89,446		31,038

Total Assets	10,469,967		9,358,133		1,111,834


Liabilities
Current Liabilities:	8,544,796		7,499,237		1,045,559

Trading liabilities	2,109,127		2,115,364		(6,236	)
Borrowings with securities as collateral	2,216,877		1,649,225		567,652
Other	4,218,791		3,734,648		484,144

Long-term Liabilities	1,084,143		1,030,619		53,524

Statutory Reserves	6,209		6,244		(35	)

Total Liabilities	9,635,148		8,536,100		1,099,049

Shareholder’s equity	832,298		820,090		12,208
Valuation and translation adjustments	2,520		1,943		577

Total Net Assets	834,819		822,033		12,786

Total Liabilities and Net Assets	10,469,967		9,358,133		1,111,834

Nomura Securities Co., Ltd. Unconsolidated Income Statement (UNAUDITED)
	Millions of yen
	For the three months ended				% Change (A-B)/(B)
	June 30, 2010 (A)		June 30, 2009 (B)		% Change (A-B)/(B)
Operating revenue	156,045		195,430		(20.2	)

Commissions	106,397		100,914		5.4
Net gain on trading	34,710		72,051		(51.8	)
Net gain on other inventories	3		2		57.9
Interest and dividend income	14,935		22,463		(33.5	)

Interest expenses	14,331		22,310		(35.8	)

Net operating revenue	141,714		173,120		(18.1	)

Selling, general and administrative expenses	116,227		124,137		(6.4	)

Operating income	25,487		48,983		(48.0	)

Non-operating income	140		211		(33.7	)
Non-operating expenses	82		427		(80.8	)

Ordinary income	25,545		48,767		(47.6	)

Special profits	503		398		26.6
Special losses	3,104		—		—

Income before income taxes	22,944		49,165		(53.3	)

Income taxes - current	(405	)	(6,564	)	—
Income taxes - deferred	11,141		25,844		(56.9	)

Net income	12,208		29,885		(59.1	)

Quarterly financial information for Nomura Securities Co., Ltd. can be found on the following URL.

http://www.nomuraholdings.com/company/group/nsc/pdf/2011_1q.pdf