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FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 1-15270
For the month of August 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 Number
| 1. | Consolidated Results of Operations (US GAAP), First quarter, year ending March 2011 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NOMURA HOLDINGS, INC. | ||||
| Date: August 6, 2010 | By: | /s/ Shinji Iwai | ||
| Shinji Iwai | ||||
| Senior Managing Director | ||||
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Consolidated Results of Operations (US GAAP)
Fourth quarter, year ended March 2010
Nomura Holdings, Inc. July 2010
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This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2010 Nomura Holdings, Inc. All rights reserved. Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Offers to sell, sales, solicitations to buy, or purchases of any securities issued by Nomura or any affiliate thereof may only be made or entered into pursuant to appropriate offering materials or a prospectus prepared and distributed according to the laws, regulations, rules and market practices of the jurisdictions in which such offers or sales may be made.
No part of this document shall be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Nomura.
The information and opinions contained in this document have been obtained from sources believed to be reliable, but no representations or warranty, express or implied, are made that such information is accurate or complete and no responsibility or liability can be accepted by Nomura for errors or omissions or for any losses arising from the use of this information.
This document contains statements that may constitute, and from time to time our management may make “forward-looking statements” within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Any such statements must be read in the context of the offering materials pursuant to which any securities may be offered or sold in the United States. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Important factors that could cause actual results to differ from those in specific forward-looking statements include, without limitation, economic and market conditions, political events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, and the number and timing of transactions.
The consolidated financial information in this document is unaudited.
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Outline
Presentation
Executive summary (p. 4)
Overview of first quarter results (p. 5) Robust financial position (p. 6) Revenue breakdown (p. 7) Retail (p. 8-9) Asset Management (p. 10-11) Wholesale (p. 12-15) Segment “Other” (p. 16) Non-interest expenses (p. 17)
Financial supplement
Consolidated balance sheet (p. 19) Value at risk (p. 20) Consolidated financial highlights (p. 21) Consolidated income (p. 22) Main revenue items (p. 23)
Adjustment of consolidated results and segment results: Income (loss) before income taxes (p. 24) Retail related data (p. 25-29) Asset Management related data (p. 30-31) Wholesale related data (p. 32-33) Number of employees (p. 34)
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Executive summary
First quarter highlights
Profitable in first quarter. Net revenue: 259.8 billion yen (-12.9% YoY; -6.5% QoQ); Non-interest expenses: 253.4 billion yen; Income before income taxes: 6.5 billion yen (-79.4% YoY; -77.4% QoQ).
Wholesale net revenue of 108.6 billion yen (-35.5% QoQ)
Eurozone market turbulence led to subdued client activity market-wide.
Client revenues grew further as we maintained our focus on supplying liquidity to clients. Client franchise continued to trend upwards.
Continued to invest in areas of future growth such as the US and Asia.
Retail net revenue of 111.0 billion yen (+16.2% QoQ)
Increased client assets, mainly in investment trusts and foreign bonds, by accurately meeting the needs of retail investors despite the difficult market conditions.
Stable growth in client account openings.
Asset Management net revenue of 18.1 billion yen (+0.7% QoQ)
Net inflow of funds into investment trusts coupled with growth in international investment advisory business.
Maintained robust financial position
Tier 1 capital ratio of 16.9% and Tier 1 common ratio of 16.8% at industry leading levels as of the end of June 2010.
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Overview of first quarter results
Highlights
First quarter results
Net revenue Non-interest expenses Income before income taxes Net income(1) ROE (2)
FY10/11 Q1
Y259.8bn Y253.4bn Y6.5bn Y2.3bn 0.4%
FY09/10 Q4
Y277.9bn Y249.3bn Y28.6bn Y18.4bn 3.7%
QoQ
(6.5%) 1.6%
(77.4%) (87.4%)
FY09/10 Q1
Y298.4bn Y266.9bn Y31.4bn Y11.4bn 3.0%
YoY (12.9%) (5.1%) (79.4%) (79.7%)
1. Net income attributable to Nomura Holdings shareholders.
2. Calculated using annualized net income.
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Robust financial position
Capital ratio
Financial indicators
(billions of yen)
(Preliminary) 31 Mar 30 Jun
Tier 1 2,000 1,986
Total assets Y33.9trn Tier 2 560 500
Shareholders’ equity
Y2.1trn Tier 3 306 306
Gross leverage 16.1x Total capital 2,806 2,733
Net leverage 10.1x RWA 11,525 11,699
Level 3 assets (net)1 Tier 1 ratio 17.3% 16.9%
approx. Y0.8trn
Tier 1 Common ratio3 17.3% 16.8%
Liquidity Y5.9trn
Total capital ratio 24.3% 23.3%
Comparison of capital ratios
Tier 1 capital / Risk Weighted Assets 2
= Tier 1 ratio = Tier 1 common ratio3
16.9%16.8%
1. Preliminary (before review). Level 3 assets (net) is net basis after netting off derivative assets and liabilities
2. As of the end of June. Barclays as of the end of March.
3. Tier 1 common ratio is defined as Tier 1 capital minus hybrid capital and minority interest.
History of leverage ratios
Gross leverage and net leverage
(x)
Level 3 assets 1
Level 3 assets and net level 3 assets / Tier 1 capital
(billions of yen)
Note: No responsibility or liability can be accepted by Nomura for errors or omissions on this slide.
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Revenue breakdown
NET REVENUE
FY10/11 FY09/10 FY09/10
QoQ YoY
Q1 Q4 Q1
Retail Y111.0bn Y95.5bn +16.2% Y95.4bn +16.3%
Asset Management Y18.1bn Y18.0bn +0.7% Y18.7bn(2.8%)
Wholesale Y108.6bn Y168.4bn(35.5%) Y211.7bn(48.7%)
Segment total Y237.7bn Y281.9bn(15.7%) Y325.8bn(27.0%)
Others1 Y32.7bn -Y9.4bn -Y37.1bn
Unrealized gain (loss)
on investments in -Y10.6bn Y5.4bn Y9.7bn
equity securities held
for operating purposes
Net revenue Y259.8bn Y277.9bn(6.5%) Y298.4bn(12.9%)
Net revenue by region
Non-Japan 38%
Japan 62%
1. “Others” includes fair value gains on own debt of 13.9billion yen .
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Retail
Net revenue and income (loss) before income taxes
(billions of yen)
FY2010.3 FY2011.3
(billion of Yen)
1Q 2Q 3Q 4Q 1Q
Net revenue 95.4 93.2 104.3 95.5 111.0
Non-interest expenses 67.5 66.8 69.1 71.5 73.2
Income before income taxes 27.9 26.4 35.2 24.0 37.7
Retail client assets
Key performance indicators
(trillions of yen)
67.2 68.9 71.0 735.5 68.4
FY2010. 3 FY2011.3
1Q 2Q 3Q 4Q 1Q
First quarter key points
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Retail: Focus on consulting services, inflow of new funds
Net inflow of client assets1 and investment trusts2
Net inflow of client Net inflow in (billions of yen) assets investment trusts
FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
Total sales
(billions of yen)
FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
1. Excludes regional financial institutions.
2. Retail channel only.
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Asset Management
Net revenue and income (loss) before income taxes
(billions of yen)
FY2010.3 FY2011.3
1Q VB
3Q 4Q 1Q
Net revenue 18.7 16.5 17.2 18.0 18.1
Non-interest expenses 13.5 12.0 13.2 13.1 13.2
Income (loss) before income
taxes 5.1 4.5 4.1 4.9 4.9
Asset under management
Key performance indicators
(trillions of yen)
22.2
22.9
23.1
23.4
22.2
FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
First quarter key points
Business performance
First quarter net revenue was 18.1 billion yen (+0.7% QoQ, -2.8% YoY).
Income before income taxes was 4.9 billion yen (-0.2% QoQ, -4.5% YoY).
Assets under management at the end of June totaled 22.2 trillion yen, a decline of 1.2 trillion yen from the end of March due to the market slump.
Net inflow of funds into public stock investment trusts (excluding ETFs) was strong at 550 billion yen.
In investment advisory, new mandates from international clients for Japanese and Asian equities and global bonds.
Acquired US$200m investment quota in Chinese market (A shares, etc.) under QFII program.
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Asset Management: Steady growth in investment trust and investment advisory businesses
Investment trust business driving revenues
Share of public investment trust market in Japan (Jun 2010)1,2
Others 28.5%
Asset Management 20.7%
8.27%
7.29%
6.30%
3.2%
4,6.8%
3,8.2%
2,9.4%
1,14.6%
Net inflow in public stock investment trusts (excluding ETFs)1
(billions of yen)
FY2010.3 FY2011
1Q 2Q 3Q 4Q 1Q
1. Nomura Asset Management non-consolidated basis
2. Source: Nomura, based on data from the Investment Trusts Association, Japan
International investment advisory business growing steadily Investment advisory AuM (international) 1
(trillions of yen)
FY2010.3 FY2011.03
1Q 2Q 3Q 4Q 1Q
Awards
R&I Fund Award 2010
Total of five awards including:
Defined Benefit Pension Category/Mixed Asset Fund
Balance Fund (2:5:5)
First prize
Japanese REIT Fund: J-REIT Open
Global Equity Fund: Nomura Pictet Premium Brand Fund Course B
Second prize
Global REIT Fund: Nomura Global REIT Fund
Global Pensions Awards 2010
Specialist equities manager: Nomura Asset Management UK
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Wholesale
Net revenue and income (loss) before income taxes
(billions of yen) FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
Net revenue 211.7 199.3 210.1 168.4 108.6
Non-interest expenses 158.5 161.1 161.6 133.2 149.8
Income (Loss) before income taxes 53.3 38.2 48.5 35.2 -41.1
Changes to business segments (from April 2010)
Fixed Fixed
Income Income
Global Equities Global
Markets Markets Equities
Others Wholesale Others
Investment Banking Investment
Banking Investment
Banking
Merchant Banking Others
First quarter key points
Net revenue: 108.6 billion yen (-35.5%QoQ; -48.7% YoY) Pretax loss: 41.1 billion yen
Global Markets
??Revenues declined as credit spreads widened and market volatility spiked due to the market turbulence in Europe.
??Revenues were underpinned by a further rise in client revenues as we maintained our strategic focus on client flow businesses.
??Market share on stock exchanges in Korea and Taiwan increasing following rise on Tokyo and London stock exchanges.
Investment Banking
??Revenues declined due to seasonal factors and the adverse market environment.
??Continue to win mandates on high-profile deals.
ECM: Toray Industries: Public offering (Lead manager) Y106.3bn Yamaha Motor: Public offering (Lead manager) Y77.9bn
DCM: UK Gilt (Joint bookrunner) £8bn
Korea Development Bank samurai bond Y27bn (Joint lead manager)
M&A: —Lead financial advisor to Grifols on its acquisition of Talecris and joint lead arranger and joint bookrunner for acquisition finance.
- Exclusive financial advisor to Sompo Japan on its acquisition of Fiba Sigorta.
- Financial advisor to Carlsberg on its acquisition of a 12.25% equity stake in Chongqing Brewery Company
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Wholesale (Global Markets)
Net revenue and income (loss) before income taxes
(billions of yen) FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
Fixed Income 105.4 76.6 70.5 55.6 41.0
Equities 92.8 93.4 90.1 76.5 46.3
Other -11.1 4.6 3.2 0.9 9.2
Net revenue 187.1 174.5 163.9 133.0 96.4
Non-interest expenses 124.9 127.8 130.8 103.0 122.8
Income (Loss) before income taxes 62.3 46.7 33.1 30.0 -26.3
Business momentum
(Indexed, FY2009/10 Q1 = 100)
Active
clients2
Key performance indicator
Client
revenues
1. VIX= Chicago Board Options Exchange Volatility Index; calculated based on volatility of S&P500 option trades. Source: Bloomberg.
2. Accumulated total number of clients Nomura facilitated trades for in each quarter.
Decreased risk as market conditions became turbulent
GIIPS country CDS spreads and Nomura Fixed Income VaR
VIX1 and Nomura Equities VaR
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Wholesale (Investment Banking)
Net revenue and income (loss) before income taxes
(billions of yen)
FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
Investment Banking (Gross) 38.0 33.2 81.7 43.3 29.0
Allocation to other divisions 12.3 12.2 37.2 15.4 13.2
Investment Banking (Net) 25.7 20.9 44.5 27.8 15.8
Other -1.1 3.9 1.8 7.6 -3.6
Net revenue 24.6 24.8 46.2 35.5 12.2
Non-interest expenses 33.6 33.3 30.8 30.2 27.0
Income (Loss) before income taxes -9.0 -8.5 15.4 5.2 -14.8
Awards
Thomson Reuters DealWatch
?House of the Year (Japan)
?Equity House of the Year (Japan)
Euromoney
?Best M&A House in Korea
Global Finance
?Best Debt Bank in Asia
?Best Investment Bank in Japan
Finance Asia
?Best Investment Bank (Japan)
?Best Equity House (Japan)
China Investment Corporation
Lead Financial Advisor
??Acquisition of 45% interest in a newly formed joint venture with Penn West to develop Penn West’s bitumen assets in northern Alberta
??Acquisition of a 5% stake in Penn West by private placement CAD817mm CAD435mm May 2010
Grifols
Lead Financial Advisor Joint-Lead Arranger Joint-Bookrunner
??Acquisition of 100% of the outstanding common stock of Talecris
??Underwriting of US$4.5bn Senior Facility
US$4,000mm
US$4,500mm June 2010
Carlsberg
Financial Advisor
??Acquisition of a 12.25% equity stake in Chongqing Brewery Company
RMB2,385mm June 2010
Global ECM / M&A ranking1
Key performance indicator
Global ECM
2010 2009 Jan—Jun
9th 9th (10th)
Global M&A
2010 2009 Jan—Jun
15th 16th (24th)
and #13 in global M&A.
Note: As of July 29, Nomura ranked #9 in global ECM and #13 in global M&A Figures in parentheses are for same period last year.
1. Source: Thomson Reuters
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Wholesale: Progress of growth drivers—US and Asia
US
Client base expanding steadily
Number of accounts with ISDA Master Agreements1 up 35% QoQ.
Talented hires joining from competitors. Headcount2 up from 726 in June 2009 to 1,455 in June 2010.
Hired eight new analysts (financials, retail/consumer, etc.), including some placed in Institutional Investor top rankings. Hired senior bankers in Investment Banking.
Continued investment in US platform
Client revenues
(Indexed, FY2009/10 Q1 = 100)
FY2010.3 FY2011.3 1Q, 2Q 3Q 4Q 1Q
1. Number of priority clients that have executed ISDA Master Agreements since Lehman integration.
2. Excludes Instinet and Nomura Asset Management U.S.A., Inc.
Asia
Platform expansion
Non-Banking Financial Company started operations in India (Apr 30).
Turned Korean branch into a local subsidiary (May 28). Opened bank branch in Labuan (Malaysia) (Jul 19). Issued bond in Islamic finance market.
Solid growth in client base
Number of accounts with ISDA Master Agreements1 up 38% QoQ.
Continued business momentum
FinanceAsia Best FX Structured Product Award
Ranked #2 All-Asia Equity Research Team and
#1 All-China Research Team by Institutional Investor
Client revenues
(Indexed, FY2009/10 Q1 = 100)
FY2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
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Segment “Other”
Income (loss) before income taxes
Includes Y34.0bn related to Nomura Real Estate Holdings IPO
Full year Quarter
(billions of yen)(billions of yen)
Includes Y34.0bn related Fortress Credit value Credit value
to Nomura Real Estate impairment of adjustment adjustment 15.6 20
Holdings IPO 40 17.8 83.3bn yen. ¥40bn ¥18bn
0 0
-40 -20.9
-27.3
-20
-80 -65.4
-120 -40
-39.9 -40.9
-160
-60
-200 -64.6 -65.9
-211.3
-240
FY2010.3 FY2009.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3
1Q 2Q 3Q 4Q 1Q
Net gain (loss) related to economic
hedging transactions -64.1 -30.0 11.4 28.0 3.3 5.4 8.6 -13.3 2.7 5.2
Realized gain on investments in equity
securities held for operating purposes 8.4 18.1 1.5 -2.4 -3.4 0.1 -0.5 0.1 -3.0 0.3
Equity in earnings of affiliates 27.8 53.2 4.7 -0.7 7.8 3.7 0.6 1.9 1.6 0.4
Corporate items -7.4 -11.1 -13.4 -70.5 -83.3 -24.9 -19.6 -10.7 -28.1 -2.5
Others 1 8.0 -12.4 -25.1 -19.8 -135.7 -48.8 -29.0 -43.8 -14.1 12.2
Income (Loss) before income taxes -27.3 17.8 -20.9 -65.4 -211.3 -64.6 -39.9 -65.9 -40.9 15.6
First quarter income before income taxes of 15.6 billion yen.
Fair value gain on own debt of 13.9 billion yen booked under “Others”.
1. Businesses not included in the three business divisions (Nomura Trust & Banking, etc.) are included in others.
Note: 1 The defined contribution pension plan business in Asset Management was integrated to Other business in the second quarter of the fiscal year ended March 31, 2009. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.
Note 2: Net income (loss) is net income (loss) before subtracting net income attributable to non-controlling interest. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Note 3: Net gain (loss) on trading related to economic hedging transactions was reclassified as “Net gain (loss) related to economic hedging transactions” from the fourth quarter of the fiscal year ended March 2010 and includes net gain (loss) related to economic hedging transactions not included in net gain (loss) on trading. In addition, net gain (loss) on trading from the change in own credit of certain structured notes issued, which was previously classified as “Net gain (loss) on trading related to 16 economic hedging transactions”, has been included in “Others”. The reclassifications of previously reported amounts have been made to conform to the current year presentation.
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Non-interest expenses
Full year Quarter
(billions of yen)(billions of yen)
1,092.9 1,045.6
1,000
300
Other 852.2 266.9 272.7
256.6 253.4
249.3
800
Business development expenses 687.9
607.2 200
Occupancy and related depreciation 600
Information processing and
communications 400
Commissions and floor brokerage 100
Compensation and benefits 200
0 0
FY2010.3 FY2011.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 QoQ
1Q 2Q 3Q 4Q 1Q
Compensation and benefits 311.3 331.0 366.8 491.6 526.2 138.1 146.6 126.2 115.3 122.1 5.9%
Commissions and floor brokerage 31.4 49.8 90.2 73.7 86.1 20.0 21.7 22.9 21.5 23.7 10.4%
Information processing and communications 89.1 109.5 135.0 155.0 175.6 40.2 43.9 43.9 47.6 44.3 -7.0%
Occupancy and related depreciation 50.8 57.4 64.8 78.5 87.8 22.0 22.6 21.3 21.9 22.5 2.7%
Business development expenses 30.6 35.3 38.1 31.6 27.3 6.3 6.4 6.5 8.2 7.2 -12.2%
Other 94.1 105.0 157.2 262.6 142.5 40.4 31.5 35.7 34.9 33.7 -3.6%
Total 607.2 687.9 852.2 1,092.9 1,045.6 266.9 272.7 256.6 249.3 253.4 1.6%
First billion quarter yen (+1.6% non-interest QoQ). expenses of 253.4
Commissions 10.4% QoQ to and 23.7 floor billion brokerage yen due increased to a rise in brokerage client flow businesses transactions) globally . (notably stock
Compensation and benefits rose 5.9% QoQ to 122.1 billion yen due to business expansion in the US and building out of global platform.
Information processing and communications decreased 7% QoQ to 44.3 billion yen.
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Financial Supplement
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Consolidated balance sheet
Consolidated balance sheet
(billions of yen)
Mar. 31, Jun. 30, Increase Mar. 31, Jun. 30, Increase
2010 2010(Decrease) 2010 2010(Decrease)
Assets Liabilities
Cash and cash deposits 1,352 1,048(304) Short-term borrow ings 1,302 1,822 520
Payables and deposits 1,528 1,462(67)
Loans and receivables 2,072 1,972(100) Collateralized financing 11,216 12,290 1,073
Trading liabilities 8,357 8,143(214)
Collateralized agreements 12,467 12,762 295 Other liabilities 495 354(141)
Long-term borrow ings 7,199 7,753 554
Trading assets and
private equity investments 1 14,700 16,402 1,702 Total liabilities 30,097 31,823 1,726
Other assets 1,639 1,751 112 Equity
Total Nomura shareholders’ equity 2,127 2,102(25)
Noncontrolling interest 6 10 4
Total assets 32,230 33,935 1,705 Total liabilities and shareholders’ equity 32,230 33,935 1,705
1. Including securities pledged as collateral.
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Value at risk
??Definition ??From April 1, 2010, to June 30, 2010 (billions of yen)
?99% confidence level (2.33 standard dev.) Maximum: 13.6
1-day time horizon for outstanding portfolio Minimum: 9.4
Inter-product price fluctuations considered Average: 11.3
(billions of yen) Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Jun. 30,
2006 2007 2008 2009 2010 2010
Equity 6.0 4.7 4.2 3.8 2.6 2.0
Interest rate 3.3 3.7 4.7 6.7 4.4 4.2
Foreign exchange 1.4 1.4 8.0 8.7 10.5 7.6
Sub-total 10.7 9.8 16.9 19.2 17.5 13.8
Diversification benefit -3.7 -3.6 -6.8 -7.5 -5.0 -4.4
VaR 7.0 6.2 10.1 11.7 12.6 9.4
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Consolidated financial highlights
Full year
(billions of yen)
400 15.5% 20%
Net income（loss)
ROE (%) 200 304.3 8.3% 67.8 10%
175.8
0 0%
3.7%
-67.8
-200 -10%
-400 -20%
-600 -30%
-708.2
-800 -40%
| FY2006.3 |
|
FY2007.3 FY2008.3 FY2009.3 FY2010.3 |
Net revenue 1,145.7 1,091.1 787.3 312.6 1,150.8
Incom e (loss) before incom e taxes 452.0 318.5 -64.9 -780.3 105.2
Net incom e (loss) attributable to Nom ura 304.3 175.8 -67.8 -708.2 67.8
Holdings, Inc. (“NHI”) shareholders
Total Nom ura shareholders’ equity 2,063.3 2,185.9 1,988.1 1,539.4 2,126.9
ROE (%)1 15.5% 8.3%—- 3.7%
Basic-Net incom e (loss) attributable to NHI 159.02 92.25 -35.55 -364.69 21.68
shareholders per share(yen)
Shareholders’ equity per share (yen) 1,083.19 1,146.23 1,042.60 590.99 579.70
Quarter
(billions of yen)
| 40 |
|
10% |
9%
8%
| 30 |
|
27.7 |
7%
6%
| 20 |
|
18.4 5% |
| 11.4 |
|
5.0% 4% |
| 10.2 |
|
3% |
| 10 |
|
3.7% |
| 3.6% |
|
2% |
| 3.0% |
|
2.3 |
1%
0 0%
0.4%
| FY2010.3 |
|
FY2011.3 |
1Q 2Q 3Q 4Q 1Q
| 298.4 |
|
300.0 274.5 277.9 259.8 |
| 31.4 |
|
27.3 18.0 28.6 6.5 |
| 11.4 |
|
27.7 10.2 18.4 2.3 |
| 1,544.5 |
|
1,615.9 2,109.8 2,126.9 2,101.8 |
| 3.0% |
|
5.0% 3.6% 3.7% 0.4% |
| 4.37 |
|
10.22 2.91 5.02 0.63 |
| 589.32 |
|
580.96 575.16 579.70 572.10 |
| * |
|
Calculated using annualized accumulated net income for each period. |
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
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Consolidated income
FY2010.3 FY2011.3
(billions of yen) FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3
1Q 2Q 3Q 4Q 1Q
Revenue
Commissions 356.3 337.5 404.7 306.8 395.1 102.0 95.4 101.0 96.6 118.1
Fees from investment banking 108.8 99.3 85.1 55.0 121.3 29.7 15.6 44.5 31.4 20.4
Asset management and portfolio service fees 102.7 146.0 189.7 140.2 132.2 30.3 34.0 34.2 33.7 34.9
Net gain on trading 304.2 290.0 61.7 -128.3 417.4 121.1 148.5 66.5 81.3 60.0
Gain (loss) on private equity investments 12.3 47.6 76.5 -54.8 11.9 -2.1 2.0 2.3 9.7 -0.9
Interest and dividends 693.8 981.3 796.5 331.4 235.3 58.4 53.6 67.4 55.9 75.8
Gain (loss) on investments in equity securities 67.7 -20.1 -48.7 -25.5 6.0 9.8 -2.3 -3.8 2.4 -10.3
Private equity entities product sales 88.2 100.1—————-
Other 58.8 67.4 28.2 39.9 37.5 14.3 8.7 9.4 5.2 16.3
Total revenue 1,792.8 2,049.1 1,593.7 664.5 1,356.8 363.6 355.5 321.6 316.1 314.0
Interest expense 647.2 958.0 806.5 351.9 205.9 65.2 55.4 47.1 38.2 54.2
Net revenue 1,145.7 1,091.1 787.3 312.6 1,150.8 298.4 300.0 274.5 277.9 259.8
Non-interest expenses 693.7 772.6 852.2 1,092.9 1,045.6 266.9 272.7 256.6 249.3 253.4
Income (loss) from continuing operations
before income taxes 452.0 318.5 -64.9 -780.3 105.2 31.4 27.3 18.0 28.6 6.5
Income from discontinued operations
before income taxes 99.4——————
Income (loss) before income taxes 551.4 318.5 -64.9 -780.3 105.2 31.4 27.3 18.0 28.6 6.5
Net income (loss) attributable to Nomura Holdings, Inc.
(“NHI”) shareholders from continuing operations 256.6 175.8 -67.8 -708.2 67.8 11.4 27.7 10.2 18.4 3.0
Net income (loss) attributable to Nomura Holdings, Inc.
(“NHI”) shareholders from discontinued operations 47.7——————
Net income (loss) 304.3 175.8 -67.8 -708.2 67.8 11.4 27.7 10.2 18.4 2.3
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
22
Table of Contents
Main revenue items
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2010.3 FY2011.3
(billions of yen) 1Q 2Q 3Q 4Q 1Q
Stock brokerage commissions (retail) 153.6 98.3 75.1 50.8 55.3 15.8 14.7 12.3 12.5 13.7
Stock brokerage commissions (other) 79.5 73.2 166.6 144.7 140.3 39.2 34.5 33.7 33.0 40.3
Commissions Other brokerage commissions 14.3 6.8 9.3 7.9 8.0 2.9 -0.0 2.6 2.6 2.2
Commissions for distribution of investment trusts 85.1 120.5 121.2 75.9 165.9 39.5 41.3 43.6 41.5 55.7
Other 23.8 38.6 32.4 27.5 25.5 4.7 5.0 8.8 7.0 6.2
Total 356.3 337.5 404.7 306.8 395.1 102.0 95.4 101.1 96.6 118.1
Equity underwriting and distribution 57.3 56.6 32.1 13.2 74.9 17.1 7.7 30.4 19.6 8.1
Fees from Bond underwriting and distribution 21.2 15.3 13.4 11.9 16.6 3.8 2.9 6.5 3.5 6.0
Investment M&A / financial advisory fees 30.3 26.7 37.8 26.7 29.2 8.6 4.9 7.6 8.2 6.2
Banking Other 0.1 0.7 1.8 3.1 0.5 0.3 0.1 0.1 0.1 0.1
Total 108.8 99.3 85.1 55.0 121.3 29.7 15.6 44.5 31.4 20.4
Asset Asset management fees 68.5 106.3 150.3 104.1 97.6 22.0 26.0 25.5 24.1 25.1
Management Administration fees 20.6 24.0 21.7 21.3 19.4 4.5 4.6 4.8 5.4 5.7
and portfolio Custodial fees 13.6 15.7 17.7 14.7 15.3 3.8 3.4 4.0 4.1 4.0
service fees Total 102.7 146.0 189.7 140.2 132.2 30.3 34.0 34.2 33.7 34.9
23
Table of Contents
Adjustment of consolidated results and segment results: Income (loss) before income taxes
(billions of yen) FY2010.3 FY2011.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3
1Q 2Q 3Q 4Q 1Q
Retail 197.2 160.9 122.3 18.2 113.4 27.9 26.4 35.2 24.0 37.7
Asset Managem ent 23.8 39.4 34.0 7.4 18.6 5.1 4.5 4.1 4.9 4.9
Wholesale 264.7 156.0 -150.1 -717.3 175.2 53.3 38.2 48.5 35.2 -41.1
3 Business segm ent total 485.7 356.3 6.2 -691.7 307.1 86.3 69.0 87.8 64.1 1.5
Other -33.1 21.0 -20.9 -65.4 -211.3 -64.6 -39.9 -65.9 -40.9 15.6
Segm ent total 452.6 377.3 -14.7 -757.1 95.8 21.7 29.1 21.8 23.2 17.1
Unrealized gain (loss) on investm ents in 59.3 -38.2 -50.2 -23.1 9.4 9.7 -1.8 -3.9 5.4 -10.6
equity securities held for operating
Unrealized gain (loss) on investm ents in -59.9 -21.5—————-
equity securities held for operating
452.0 318.5 -64.9 -780.3 105.2 31.4 27.3 18.0 28.6 6.5
US GAAP 99.4——————
551.4 318.5 -64.9 -780.3 105.2 31.4 27.3 18.0 28.6 6.5
Note:
1. Gain (loss) on investments in equity securities, our share of equity in the earnings (losses) of affiliates, impairment losses on long-lived assets, corporate items and other financial adjustments are included as “Other” operating results outside business segments in our segment information.
2. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
3. In January 2006, certain functions of Other business were integrated into Asset Management. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.
4. The defined contribution pension plan business in Asset Management was integrated to Other business in the second quarter of the fiscal year ended March 31, 2009. Certain reclassifications of previously reported amounts have been made to conform to the current presentation. 24
Table of Contents
Retail related data (1)
FY2010.3 FY2011.3
(billions of yen) FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 QoQ YoY
1Q 2Q 3Q 4Q 1Q
Commissions 269.4 251.4 225.9 151.0 238.9 55.9 59.8 62.3 61.0 75.6 24.1% 35.4%
Sales credit 109.0 96.8 94.2 71.4 63.8 20.0 15.5 13.3 15.0 12.8 -14.3% -35.8%
Fees from investment banking 26.4 24.0 14.9 13.4 33.6 7.2 5.1 15.1 6.1 9.4 53.0% 30.3%
Investment trust adm inistration fees and other 34.4 47.5 59.7 50.9 47.3 11.1 11.8 12.1 12.3 12.1 -1.7% 8.2%
Net interest revenue 7.4 20.4 7.3 5.2 4.7 1.2 0.9 1.5 1.1 1.0 -6.3% -10.8%
Net revenue 446.5 440.1 402.0 291.9 388.3 95.4 93.2 104.3 95.5 111.0 16.2% 16.3%
Non-interest expenses 249.3 279.3 279.7 273.6 274.9 67.5 66.8 69.1 71.5 73.2 2.4% 8.4%
Income before income taxes 197.2 160.9 122.3 18.2 113.4 27.9 26.4 35.2 24.0 37.7 57.4% 35.5%
Domestic distribution volume of investm ent trusts 1 9,846.9 6,825.1 9,713.2 2,327.2 2,446.8 2,438.2 2,501.0 2,797.9 11.9% 20.2%
Bond investment trusts 3,681.8 2,731.6 2,380.1 624.0 593.3 544.8 618.1 697.2 12.8% 11.7%
Stock investment trusts 4,816.1 2,969.3 6,165.7 1,425.0 1,595.4 1,602.7 1,542.6 1,729.1 12.1% 21.3%
Foreign investment trusts 1,349.0 1,124.2 1,167.4 278.3 258.0 290.7 340.4 371.6 9.2% 33.6%
Other
Accumulated value of annuity insurance policies 683.3 990.4 1,205.3 1,413.3 1,609.2 1,462.5 1,507.0 1,542.5 1,609.2 1,633.3 1.5% 11.7%
Sales of JGBs for individual investors (transaction base) 747.8 615.2 292.3 109.6 22.2 8.1 7.0 4.7 2.5 4.9 94.8% -39.9%
Retail foreign currency bond sales 1,119.2 677.1 954.0 867.4 1,080.3 288.4 252.6 215.3 323.9 411.0 26.9% 42.5%
1. Nomura Securities.
25
Table of Contents
Retail related data (2)
Stock brokerage commissions and commissions for distribution of investment trusts1
Full year Quarter
(billions of yen)(billions of yen)
180 70
150 60
50
120
Stock brokerage commissions 40
90
Commissions for distribution of
investment trusts 30
60
20
30 10
0 0
FY2010.3 FY2011.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 QoQ YoY
1Q 2Q 3Q 4Q 1Q
Stock brokerage commissions 153.6 98.3 75.1 50.8 55.3 15.8 14.7 12.3 12.5 13.7 9.9% -13.3%
Commissions for distribution of investm ent trusts 1 95.9 124.7 124.5 79.8 168.8 39.8 41.5 44.7 42.8 56.7 32.5% 42.4%
1. Nomura Securities
26
Table of Contents
Retail related data (3)
Retail client assets
Full year Quarter
(trillions of yen)
100
Other 85.2
80.5
Overseas mutual funds 80 72.2 73.5 68.4
Bond investment trusts
59.3
Stock investment trusts 60
Domestic bonds
40
Foreign currency bonds
Equities
20
0
Mar. 31, 2006 Mar. 31, 2007 Mar. 31, 2008 Mar. 31, 2009 Mar. 31, 2010 Jun. 30, 2010
Equities 49.3 48.5 37.2 28.6 39.2 35.1
Foreign currency bonds1 3.6 3.3 2.7 5.5 5.6 5.3
Domestic bonds 2 13.1 16.4 16.5 13.0 13.4 13.4
Stock investment trusts 5.3 7.4 7.3 5.0 7.3 7.0
Bond investment trusts 4.5 4.7 4.4 4.0 4.0 3.9
Overseas mutual funds 2.3 2.0 1.7 1.4 1.6 1.5
Other3 2.3 2.9 2.5 1.9 2.2 2.2
Total 80.5 85.2 72.2 59.3 73.5 68.4
1. Euroyen bonds have been moved from domestic bonds to foreign currency bonds from the third quarter of the fiscal year ended March 31, 2009.
2. Includes CBs and warrants.
3. Includes annuity insurance.
27
Table of Contents
Retail related data (4)
Retail client assets: Net asset inflow1
Full year Quarter
(billions of yen)(billions of yen)
8,000 6,000
5,000
5,975
6,000
5,279 4,000
4,868 4,928
4,581
3,000
4,000
2,003
1,610 1,879 2,000
1,289
2,000 1,000
0
-213
0 -1,000
FY2010.3 FY2011.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3
1Q 2Q 3Q 4Q 1Q
1. Retail client assets exclude portion from regional financial institutions.
Note: Net asset inflow = asset inflow – asset outflow.
28
Table of Contents
Retail related data (5)
Number of accounts / IT share1
Mar. 31, 2006 Mar. 31, 2007 Mar. 31, 2008 Mar. 31, 2009 Mar. 31, 2010 Jun. 30, 2010
(thousands)
Accounts with balance 3,780 3,953 4,165 4,467 4,883 4,894
Equity holding accounts 1,745 1,853 2,027 2,347 2,572 2,600
Nomura Home Trade (online trading accounts) 1,969 2,243 2,765 3,095 3,189 3,235
Full year Quarter
FY2010.3 FY2011.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3
1Q 2Q 3Q 4Q 1Q
New individual accounts (thousands) 343 417 580 608 336 65 71 74 126 93
IT share1
No. of orders 55% 55% 57% 59% 58% 61% 60% 56% 55% 57%
Transaction value 27% 27% 29% 29% 29% 31% 29% 26% 28% 30%
1. IT share is the percentage of trades via Nomura Home Trade and our Telephone Answer service comprising the total of cash stock transactions and kabushiki-mini-toshi (odd lot stock investment).
29
Table of Contents
Asset Management related data(1)
FY2010.3 FY2011.3
FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 QoQ YoY
(billions of yen) 1Q 2Q 3Q 4Q 1Q
Net revenue 64.1 88.1 88.7 59.8 70.4 18.7 16.5 17.2 18.0 18.1 0.7% -2.8%
Non-interest expenses 40.3 48.7 54.8 52.4 51.8 13.5 12.0 13.2 13.1 13.2 1.0% -2.2%
Income before income taxes 23.8 39.4 34.0 7.4 18.6 5.1 4.5 4.1 4.9 4.9 -0.2% -4.5%
Note: In January 2006, certain functions of Other business were integrated into Asset Management. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.
The defined contribution pension plan business in Asset Management was integrated to other business in the second quarter of the fiscal year ended March 31, 2009. Certain reclassifications of previously
reported amounts have been made to conform to the current presentation.
Total assets under management
Full year Quarter
(trillions of yen)
35
30
27.0
25.8
25 23.1 23.4 22.2
20.2
20
15
10
5
0
Mar. 31, 2006 Mar. 31, 2007 Mar. 31, 2008 Mar. 31, 2009 Mar. 31, 2010 Jun. 30, 2010
Note: Total assets under management of Nomura Asset Management, Nomura Corporate Research and Asset Management, Nomura Funds Research and Technologies, Nomura Asset Management
Deutschland KAG , and Nomura Funds Research and Technologies America, Private Equity Funds Research and Investments. Adjusted for asset overlap amongst group companies. Data until March 30 31, 2006, include Nomura BlackRock Asset Management. Nomura Funds Research and Technologies America data as of end of May 2010.
Table of Contents
Asset Management related data (2)
Nomura Asset Management assets under management
Full year
Quarter
(trillions of yen)
Overseas investment advisory
Domestic investment advisory
Privately placed investment trusts
Public bond investment trusts
Public stock investment trusts
30
25.9
25 24.3
22.0
21.0 21.2
20 19.0 15 10 5
0
Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Jun. 30, 2006 2007 2008 2009 2010 2011
Investment trusts 14.0 18.8 17.2 13.0 14.7 13.9
Public stock investment trusts 6.9 10.8 9.8 6.5 8.1 7.7
Public bond investment trusts 5.6 5.8 5.3 4.8 4.8 4.6
Privately placed investment trusts 1.5 2.2 2.0 1.6 1.7 1.6
Investment advisory 7.0 7.1 7.1 6.0 7.3 7.4
Domestic investment advisory 4.0 3.7 4.6 4.3 4.7 4.4
Overseas investment advisory 3.0 3.4 2.4 1.7 2.6 2.9
Total 21.0 25.9 24.3 19.0 22.0 21.2
Domestic public investment trust market and Nomura Asset Management market share
Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Jun. 30, (trillions of yen) 2006 2007 2008 2009 2010 2010
Domestic public stock investment trusts
Market 45.0 59.4 57.7 40.4 52.6 48.6 Nomura’s share (%) 15% 18% 17% 16% 15% 16% Domestic public bond investment trusts Market 13.5 13.2 12.0 11.1 11.1 10.8
Nomura’s share (%) 42% 44% 44% 43% 43% 43% Source: Investment Trusts Association, Japan
Nomura Asset Management net asset inflow
Full year Quarter
(trillions of yen) FY2010.3
FY 2006.3 FY 2007.3 FY 2008.3 FY 2009.3 FY 2010.3 FY2011.3
1Q 2Q 3Q 4Q 1Q
Public stock investment trusts 1.0 3.8 2.0 0.0 -0.2 0.2 0.3 -0.5 -0.1 0.5 Exclude ETF 1.4 3.7 1.8 -0.4 0.0 0.3 0.2 -0.3 -0.2 0.6 Public bond investment trusts 0.0 0.2 -0.5 -0.5 -0.0 -0.0 0.1 -0.1 -0.0 -0.2 Privately placed investment trusts 0.5 0.7 0.2 0.1 -0.2 -0.1 -0.1 0.0 -0.1 0.0 Net asset inflow 1.5 4.6 1.7 -0.4 -0.4 0.1 0.3 -0.6 -0.2 0.3
1
Table of Contents
Wholesale related data (1)
Wholesale
FY2010.3 FY2011.3
FY2009.3 FY2010.3 QoQ YoY (billions of yen) 1Q 2Q 3Q 4Q 1Q
Global Markets -157.3 658.4 187.1 174.5 163.9 133.0 96.4 -27.5% -48.5% Investment Banking -6.4 131.1 24.6 24.8 46.2 35.5 12.2 -65.6% -50.5% Net revenue -163.6 789.5 211.7 199.3 210.1 168.4 108.6 -35.5% -48.7% Non-interest expenses 553.7 614.3 158.5 161.1 161.6 133.2 149.8 12.4% -5.5% Income (Loss) before income taxes -717.3 175.2 53.3 38.2 48.5 35.2 -41.1 - -
Global Markets
FY2009.3 FY2010.3 FY2010.3 FY2011.3 QoQ YoY (billions of yen)
1Q 2Q 3Q 4Q 1Q
Fixed Income -217.2 308.0 105.4 76.6 70.5 55.6 41.0 -26.3% -61.1% Equities 98.9 352.8 92.8 93.4 90.1 76.5 46.3 -39.5% -50.1% Other -38.9 -2.4 -11.1 4.6 3.2 0.9 9.2 931.4% -Net revenue -157.3 658.4 187.1 174.5 163.9 133.0 96.4 -27.5% -48.5% Non-interest expenses 417.4 486.4 124.9 127.8 130.8 103.0 122.8 19.2% -1.7% Income (Loss) before income taxes -574.6 172.0 62.3 46.7 33.1 30.0 -26.3 - -
Investment Banking
FY2010.3 FY2011.3
(billions of yen) FY2009.3 FY2010.3 1Q 2Q 3Q 4Q 1Q QoQ YoY
Investment Banking(Gross) 87.6 196.1 38.0 33.2 81.7 43.3 29.0 -32.9% -23.6% Allocation to other divisions 24.1 77.2 12.3 12.2 37.2 15.4 13.2 -14.2% 7.3% Investment Banking(Net) 63.5 118.9 25.7 20.9 44.5 27.8 15.8 -43.2% -38.4% Other -69.9 12.2 -1.1 3.9 1.8 7.6 -3.6 - -Net revenue -6.4 131.1 24.6 24.8 46.2 35.5 12.2 -65.6% -50.5% Non-interest expenses 136.3 127.9 33.6 33.3 30.8 30.2 27.0 -10.7% -19.7% Income (Loss) before income taxes -142.7 3.2 -9.0 -8.5 15.4 5.2 -14.8 - -
2
Table of Contents
Wholesale related data (2)
Private equity related investments
Full year Quarter
(billions of yen)
600
543.4
Terra Firma 500
439.1
Asia 381.4
400 366.3 370.0 347.1
Europe (excluding
Terra Firma) 300 254.9 250.9
231.2 235.5
Japan 210.9
200
98.7
100
0
Mar. 31, 2006 Mar. 31, 2007 Mar. 31, 2008 Mar. 31, 2009 Mar. 31, 2010 Jun. 30, 2010
Japan 59.9 195.5 169.5 191.7 186.9 186.0
Europe (excluding Terra Firm a) 38.8 35.7 41.4 60.0 60.4 46.5
Asia—— 3.2 3.6 3.0
Sub Total 98.7 231.2 210.9 254.9 250.9 235.5
Terra Firm a 340.4 312.2 170.5 111.4 119.2 111.7
Total 439.1 543.4 381.4 366.3 370.0 347.1
Note: Amount of exposure in Japan is total of Nomura Principal Finance (NPF), Nomura Financial Partners (NFP), Nomura Research & Advisory (NR&A) and others. Amount of exposure in Europe (excluding Terra Firma) is total of Private Equity Group (PEG), Nomura Phase4 Ventures (NPV) and others.
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Number of employees
Mar. 31, 2006 Mar. 31, 2007 Mar. 31, 2008 Mar. 31, 2009 Mar.31,2010 Jun.30,2010
Japan (excluding FA)1 9,618 10,667 11,561 12,929 12,857 13,370
Japan (FA)2 1,948 2,174 2,377 2,391 2,196 2,184
Europe 1,515 1,791 1,956 4,294 4,369 4,499
Americas 1,073 1,322 1,063 1,079 1,781 1,941
Asia-Pacific3 778 900 1,070 4,933 5,171 5,399
Total 14,932 16,854 18,026 25,626 26,374 27,393
1. Excludes employees of private equity investee companies.
2. Figures up to March 2008 include savings advisors.
3. Includes Powai office in India.
Note: Headcount figures have been reclassified to include certain contract employees since September 2007. Certain reclassifications of previously reported amounts have been made to
conform to the current presentation.
34
Table of Contents
Nomura Holdings, Inc.
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