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

For the month of April 2011

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 Summary – Year ended March 2011

Nomura Holdings, Inc. (“Nomura”) hereby incorporates Exhibit 1 to this report on Form 6-K by reference (i) in the prospectus that is part of Registration Statement on Form F-3 (Registration No. 333-169682) of Nomura and Nomura America Finance, LLC, filed with the Securities and Exchange Commission (the “SEC”) on September 30, 2010, and (ii) in the prospectus that is part of the Registration Statement on Form F-3 (Registration No. 333-165049) of Nomura, filed with the SEC on February 24, 2010, as amended by the Post-Effective Amendment No. 1 thereto, filed with the SEC on September 8, 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: April 28, 2011	By:	/s/ Junko Nakagawa
		Junko Nakagawa
		Executive Managing Director

Financial Summary For the Year Ended March 31, 2011 (US GAAP)


Date:		April 28, 2011
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


	(Rounded to nearest million)

	For the year ended March 31
	2011						2010
	(Millions of yen, except per share data)
				% Change from March 31, 2010						% Change from March 31, 2009
Total revenue		1,385,492			2.1	%		1,356,751			104.2	%
Net revenue		1,130,698			(1.7	%)		1,150,822			268.1	%
Income before income taxes		93,255			(11.4	%)		105,247			—
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		28,661			(57.7	%)		67,798			—
Comprehensive income		10,306			(86.6	%)		77,195			—
Basic-Net income attributable to NHI shareholders per share (Yen)		7.90						21.68
Diluted-Net income attributable to NHI shareholders per share (Yen)		7.86						21.59
Return on shareholders’ equity		1.4	%					3.7	%
Income before income taxes to total assets		0.3	%					0.4	%
Income before income taxes divided by total revenue		6.7	%					7.8	%
Equity in earnings of affiliates		11,602						12,924

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position


	At March 31
	2011			2010
	(Millions of yen, except per share data)
Total assets		36,692,990			32,230,428
Total equity		2,091,636			2,133,014
Total NHI shareholders’ equity		2,082,754			2,126,929
Total NHI shareholders’ equity as a percentage of total assets		5.7	%		6.6	%
Total NHI shareholders’ equity per share (Yen)		578.40			579.70
(3) Cash flows
	For the year ended March 31
	2011			2010
	(Millions of yen)
Net cash used in operating activities		(235,090	)		(1,500,770	)
Net cash used in investing activities		(423,214	)		(269,643	)
Net cash provided by financing activities		1,284,243			2,176,530
Cash and cash equivalents at end of period		1,620,340			1,020,647

2. Cash dividends


	For the year ended March 31
	2010			2011			2012 (Plan)
	(Yen amounts, except Total annual dividends)
Dividends per share
dividends record dates
At June 30		—			—			—
At September 30		4.00			4.00			Unconfirmed
At December 31		—			—			—
At March 31		4.00			4.00			Unconfirmed
For the year		8.00			8.00			Unconfirmed
Total annual dividends (Millions of yen)		25,811			28,810			—
Consolidated payout ratio		36.9	%		101.3	%		—
Consolidated dividends as a percentage of shareholders’ equity per share		1.4	%		1.4	%		—

Note:

Nomura plans to forgo dividend distribution for Q1 and Q3 of fiscal year 2012. Fiscal year 2012 Q2 and Q4 dividend amounts are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2012”.

3. Earnings forecasts for the year ending March 31, 2012

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. Others

(1) Changes in significant subsidiaries during the period: None

(2) Changes in accounting principles, procedures and presentations

Changes due to amendments to the accounting standards : Yes

Changes due to other than a) : None

(3) Number of shares issued (common stock)


	At March 31
	2011		2010
Number of shares outstanding (including treasury stock)		3,719,133,241		3,719,133,241
Number of treasury stock		118,246,309		50,088,627

	For the year ended March 31
	2011		2010
Average number of shares outstanding (year-to-date)		3,627,798,587		3,126,790,289

Parent Company Only Operating Results (Japanese GAAP)

(1) Operating Results


	For the year ended March 31
	2011						2010
	(Millions of yen, except per share data)
				% Change from March 31, 2010					% Change from March 31, 2009
Operating revenue		219,875			(0.5	%)		220,873		(35.1	%)
Operating income		9,812			(73.4	%)		36,930		(72.7	%)
Ordinary income		11,690			(59.9	%)		29,121		(77.1	%)
Net income (loss)		(15,094	)		—			12,083		—
Net profit (loss) per share		(4.16	)					3.86
Fully diluted net profit per share		—						3.83

(2) Financial Position


	At March 31
	2011			2010
	(Millions of yen, except per share data)
Total assets		5,278,581			4,566,078
Total net assets		1,764,894			1,806,307
Total net assets as a percentage of total assets		32.8	%		39.0	%
Total net assets per share		481.23			485.62
Shareholders’ equity		1,733,358			1,782,273

* Audit procedure

The audit on the consolidated financial statements for this fiscal year has not been completed by the external auditors at the point of disclosing this financial summary. As a result of such audit, certain of the information set forth herein could be subject to revision, possibly material, in Nomura’s Report on Form 20-F for the year ended March 31, 2011.

Table of Contents for the Accompanying Materials


1. Consolidated Operating Results			P.2

(1) Analysis of Consolidated Operating Results			P.2
(2) Analysis of Consolidated Financial Position			P.5

2. Corporate Goals and Principles			P.5

(1) Fundamental Management Policy			P.5
(2) Structure of Business Operations			P.5
(3) Management Challenges and Strategies			P.5

3. Consolidated Financial Statements			P.7

(1) Consolidated Balance Sheets			P.8
(2) Consolidated Statements of Operations			P.10
(3) Consolidated Statements of Comprehensive Income			P.11
(4) Consolidated Statements of Changes in Equity			P.12
(5) Consolidated Statements of Cash Flows			P.13
(6) Note with respect to the Assumption as a Going Concern			P.14
(7) Significant Changes for Presenting the Consolidated Financial Statements			P.14
(8) Note to the Consolidated Financial Statements			P.15

4. Other Information			P.17

(1) Consolidated Statements of Operations – Quarterly Comparatives			P.17
(2) Business Segment Information – Quarterly Comparatives			P.18
(3) Other			P.19

1.	Consolidated Operating Results

(1)

Analysis of Consolidated Results

Operating Results

US GAAP


	Billions of yen						% Change
	For the year ended						(A-B)/(B)
	March 31, 2011 (A)			March 31, 2010 (B)			(A-B)/(B)
Net revenue		1,130.7			1,150.8			(1.7	)
Non-interest expenses		1,037.4			1,045.6			(0.8	)

Income (loss) before income taxes		93.3			105.2			(11.4	)
Income tax expense		61.3			37.2			65.0

Net income (loss)		31.9			68.1			(53.1	)

Less: Net income (loss) attributable to noncontrolling interests		3.3			0.3			—

Net income (loss) attributable to NHI shareholders		28.7			67.8			(57.7	)

Return on shareholders’ equity*		1.4	%		3.7	%		—

*	Return on shareholders’ equity is a 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 1,130.7 billion yen for the fiscal year ended March 31, 2011, a decrease of 1.7% from the previous year. Non-interest expenses decreased 0.8% from the previous year to 1,037.4 billion yen. Income before income taxes was 93.3 billion yen and Net income attributable to NHI shareholders was 28.7 billion yen for the fiscal year ended March 31, 2011.

Segment Information


	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2011 (A)		March 31, 2010 (B)		(A-B)/(B)
Net revenue		1,147.6		1,141.4		0.5
Non-interest expenses		1,037.4		1,045.6		(0.8	)

Income (loss) before income taxes		110.2		95.8		14.9

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, 2011 was 1,147.6 billion yen, an increase of 0.5% from the previous year. Non-interest expenses decreased by 0.8% from the previous year to 1,037.4 billion yen. Income before income taxes was 110.2 billion yen for the fiscal year ended March 31, 2011. Please refer to page 15 for further details of the differences between US GAAP and business segment amounts.

<Business Segment Results>

In April 2010, 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 year ended				(A-B)/(B)
	March 31, 2011 (A)		March 31, 2010 (B)		(A-B)/(B)
Net revenue		392.4		388.3		1.1
Non-interest expenses		291.2		274.9		5.9

Income (loss) before income taxes		101.2		113.4		(10.7	)

Net revenue increased by 1.1% from the previous year to 392.4 billion yen, due primarily to increasing revenues from bond related products and investment trust related products. Non-interest expenses increased by 5.9% to 291.2 billion yen. As a result, income before income taxes decreased by 10.7% to 101.2 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2011 (A)		March 31, 2010 (B)		(A-B)/(B)
Net revenue		80.7		70.4		14.8
Non-interest expenses		55.7		51.8		7.6

Income (loss) before income taxes		25.1		18.6		34.7

Net revenue increased by 14.8% from the previous year to 80.7 billion yen. Non-interest expenses increased by 7.6% to 55.7 billion yen. As a result, income before income taxes increased by 34.7% to 25.1 billion yen. Assets under management were 24.7 trillion yen at the end of March 2011.

Operating Results of Wholesale


	Billions of yen				% Change
	For the year ended				(A-B)/(B)
	March 31, 2011 (A)		March 31, 2010 (B)		(A-B)/(B)
Net revenue		630.5		789.5		(20.1	)
Non-interest expenses		623.8		614.3		1.5

Income (loss) before income taxes		6.7		175.2		(96.2	)

Net revenue decreased by 20.1% from the previous year to 630.5 billion yen, due primarily to decrease in net gain on trading. Non-interest expenses increased by 1.5% to 623.8 billion yen. As a result, income before income taxes decreased by 96.2% to 6.7 billion yen.

Other Operating Results


	Billions of yen						% Change
	For the year ended						(A-B)/(B)
	March 31, 2011 (A)			March 31, 2010 (B)			(A-B)/(B)
Net revenue		43.9			(106.8	)		—
Non-interest expenses		66.7			104.5			(36.2	)

Income (loss) before income taxes		(22.8	)		(211.3	)		—

Net revenue was 43.9 billion yen. Loss before income taxes was 22.8 billion yen.

Earnings Forecasts for Next Fiscal Year

(2)

Analysis of Consolidated Financial Position

Total assets as of March 31, 2011, were 36.7 trillion yen, an increase of 4.5 trillion yen compared to March 31, 2010, reflecting primarily the increase in Securities purchased under agreements to resell. Total liabilities as of March 31, 2011 were 34.6 trillion yen, an increase of 4.5 trillion yen compared to March 31, 2010, mainly due to the increase in Securities sold under agreements to repurchase and Long-term borrowings. Total equity as of March 31, 2011 was 2.1 trillion yen, a decrease of 41.4 billion yen compared to March 31, 2010.

Cash and cash equivalents as of March 31, 2011, increased by 599.7 billion yen compared to March 31, 2010. Cash flows from operating activities for the year ended March 31, 2011 were outflows of 235.1 billion yen due to the increase in Trading assets. Cash flows from investing activities for the year ended March 31, 2011 were outflows of 423.2 billion yen due mainly to increase in Non-trading debt securities, net. Cash flows from financing activities for the year ended March 31, 2011 were inflows of 1,284.2 billion yen due primarily to an increase in Long-term borrowings.

2.	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

Nomura Group is organized around globally-linked business divisions under a unified strategy, rather than individual legal entities. Nomura Group’s operations are comprised of Retail, Asset Management, and Wholesale. We will strive to achieve a higher level of specialization in each division, advance and progress our business in each respective area, and maximize the collective strength of Nomura Group by enhancing cross-divisional and regional collaboration.

(3)

Management Challenges and Strategies

Although the global economy was moving gradually toward normality supported by emerging markets, it is facing uncertainty due to the unstable political situation in the Middle East, sovereign crisis in Europe and the earthquake in Tohoku region of Japan in March. In this environment, we plan to address the needs of our clients globally by taking advantage of our strengthened business platform and to grow our client base and improve our market share. We will continue to strategically allocate management resources in order to work toward providing stability and liquidity through properly functioning market.

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]

At 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.

[Asset Management Division]

In investment trust business, we aim to provide individual clients with a diverse range of investment opportunities to meet investors’ demand, and in advisory business, we aim to provide institutional clients globally with value-added investment service. Together, we intend to increase assets under management and expand our client base.

We aim to increase our world-class competitive advantage in Japan and the rest of Asia by making continuous effort to improve investment performance and by aggressively expanding our investment management and product delivery capabilities.

[Wholesale Division]

Wholesale Division has been established in April 2010.

Global Markets will enhance our product development expertise to continue acting as the product supply hub for Nomura and also work to expand profitability. 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 will continue to act as a world-class liquidity provider. Through even closer co-operation between Fixed Income and Equities we will aim for synergies in structuring, research, distribution, and risk management.

In Investment Banking, we are expanding our M&A advisory and corporate finance businesses to diversify sources of profit by providing high value-added solutions to meet the individual needs of each client. 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 implementing the initiatives outlined above, we will enhance collaboration between the divisions. We aim to consolidate our comprehensive global strength 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.

[Other]

In the wake of the financial crisis, the market and regulatory environments surrounding global financial institutions have changed significantly. To deal appropriately with these changes, we bolstered our financial base in order to achieve sustainable growth. Going forward, we will continue to maximize the profitability of the group as a whole, and to maintain adequate allocation of management resources. We will also continue to provide effort to grow our client-focused business platform while providing world-class, high quality solution.

We will continue to be prepared for regulation tightening. We will keep close monitoring of global regulatory trends and try to be prepared.

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 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.

3.	Consolidated Financial Statements

The 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 presentations (changes in accordance with amendments to the accounting standards), please refer to “(7) Significant Changes for Presenting the Consolidated Financial Statements”.

(1)

Consolidated Balance Sheets (UNAUDITED)


	Millions of yen
	March 31, 2011			March 31, 2010			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		1,620,340			1,020,647			599,693
Time deposits		339,419			196,909			142,510
Deposits with stock exchanges and other segregated cash		190,694			134,688			56,006

Cash and cash deposits, Total		2,150,453			1,352,244			798,209

Loans and receivables:
Loans receivable		1,271,284			1,310,375			(39,091	)
Receivables from customers		32,772			59,141			(26,369	)
Receivables from other than customers		928,626			707,623			221,003
Allowance for doubtful accounts		(4,860	)		(5,425	)		565

Loans and receivables, Total		2,227,822			2,071,714			156,108

Collateralized agreements:
Securities purchased under agreements to resell		9,558,617			7,073,926			2,484,691
Securities borrowed		5,597,701			5,393,287			204,414

Collateralized agreements, Total		15,156,318			12,467,213			2,689,105

Trading assets and private equity investments:
Trading assets*		14,952,511			14,374,028			578,483
Private equity investments		289,420			326,254			(36,834	)

Trading assets and private equity investments, Total		15,241,931			14,700,282			541,649

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥300,075 million at March 31, 2011 and ¥273,616 million at March 31, 2010)		392,036			357,194			34,842
Non-trading debt securities*		591,797			308,814			282,983
Investments in equity securities*		91,035			122,948			(31,913	)
Investments in and advances to affiliated companies*		273,105			251,273			21,832
Other		568,493			598,746			(30,253	)

Other assets, Total		1,916,466			1,638,975			277,491

Total assets		36,692,990			32,230,428			4,462,562

*	Including securities pledged as collateral


	Millions of yen
	March 31, 2011			March 31, 2010			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings		1,167,077			1,301,664			(134,587	)
Payables and deposits:
Payables to customers		880,429			705,302			175,127
Payables to other than customers		410,679			374,522			36,157
Deposits received at banks		812,500			448,595			363,905

Payables and deposits, Total		2,103,608			1,528,419			575,189

Collateralized financing:
Securities sold under agreements to repurchase		10,813,797			8,078,020			2,735,777
Securities loaned		1,710,191			1,815,981			(105,790	)
Other secured borrowings		1,162,450			1,322,480			(160,030	)

Collateralized financing, Total		13,686,438			11,216,481			2,469,957

Trading liabilities		8,688,998			8,356,806			332,192
Other liabilities		552,316			494,983			57,333
Long-term borrowings		8,402,917			7,199,061			1,203,856

Total liabilities		34,601,354			30,097,414			4,503,940


Equity
NHI shareholders’ equity:
Common stock
Authorized - 6,000,000,000 shares
Issued - 3,719,133,241 shares at March 31, 2011 and 3,719,133,241 shares at March 31, 2010
Outstanding - 3,600,886,932 shares at March 31, 2011 and 3,669,044,614 shares at March 31, 2010		594,493			594,493			—
Additional paid-in capital		646,315			635,828			10,487
Retained earnings		1,069,334			1,074,213			(4,879	)
Accumulated other comprehensive income (1oss)		(129,696	)		(109,132	)		(20,564	)

Total NHI shareholders’ equity before treasury stock		2,180,446			2,195,402			(14,956	)
Common stock held in treasury, at cost -
118,246,309 shares at March 31, 2011 and
50,088,627 shares at March 31, 2010		(97,692	)		(68,473	)		(29,219	)

Total NHI shareholders’ equity		2,082,754			2,126,929			(44,175	)

Noncontrolling interests		8,882			6,085			2,797

Total equity		2,091,636			2,133,014			(41,378	)

Total liabilities and equity		36,692,990			32,230,428			4,462,562

(2)

Consolidated Statements of Operations (UNAUDITED)


	Millions of yen					% Change
	For the year ended					(A-B)/(B)
	March 31, 2011 (A)			March 31, 2010 (B)		(A-B)/(B)
Revenue:
Commissions		405,463			395,083		2.6
Fees from investment banking		107,005			121,254		(11.8	)
Asset management and portfolio service fees		143,939			132,249		8.8
Net gain on trading		336,503			417,424		(19.4	)
Gain on private equity investments		19,292			11,906		62.0
Interest and dividends		346,103			235,310		47.1
Gain (loss) on investments in equity securities		(16,677	)		6,042		—
Other		43,864			37,483		17.0

Total revenue		1,385,492			1,356,751		2.1
Interest expense		254,794			205,929		23.7

Net revenue		1,130,698			1,150,822		(1.7	)

Non-interest expenses:
Compensation and benefits		518,993			526,238		(1.4	)
Commissions and floor brokerage		92,088			86,129		6.9
Information processing and communications		182,918			175,575		4.2
Occupancy and related depreciation		87,843			87,806		0.0
Business development expenses		30,153			27,333		10.3
Other		125,448			142,494		(12.0	)

Non-interest expenses, Total		1,037,443			1,045,575		(0.8	)

Income before income taxes		93,255			105,247		(11.4	)
Income tax expense		61,330			37,161		65.0

Net income		31,925			68,086		(53.1	)

Less: Net income attributable to noncontrolling interests		3,264			288		—

Net income attributable to NHI shareholders		28,661			67,798		(57.7	)


	Yen					% Change
Per share of common stock:
Basic-
Net income attributable to NHI shareholders per share		7.90			21.68		(63.6	)

Diluted-
Net income attributable to NHI shareholders per share		7.86			21.59		(63.6	)

(3)

Consolidated Statements of Comprehensive Income (UNAUDITED)


	Millions of yen						% Change
	For the year ended						(A-B)/(B)
	March 31, 2011 (A)			March 31, 2010 (B)			(A-B)/(B)
Net income		31,925			68,086			(53.1	)
Other comprehensive income (loss):
Change in cumulative translation adjustments, net of tax		(24,151	)		(1,057	)		—
Defined benefit pension plans:
Pension liability adjustment		4,074			18,339			(77.8	)
Deferred income taxes		(1,542	)		(8,173	)		—

Total		2,532			10,166			(75.1	)

Total other comprehensive income (loss)		(21,619	)		9,109			—

Comprehensive income		10,306			77,195			(86.6	)
Less: Comprehensive income attributable to noncontrolling interest in subsidiary		2,209			92			—

Comprehensive income attributable to NHI shareholders		8,097			77,103			(89.5	)

(4)

Consolidated Statements of Changes in Equity (UNAUDITED)


	Millions of yen
	For the year ended
	March 31, 2011			March 31, 2010
Common stock
Balance at beginning of year		594,493			321,765
Issuance of common stock		—			217,728
Conversion of convertible bonds		—			55,000

Balance at end of year		594,493			594,493

Additional paid-in capital
Balance at beginning of year		635,828			374,413
Cumulative effect of change in accounting principle (1)		—			(26,923	)
Issuance of common stock		—			228,934
Conversion of convertible bonds		—			55,000
Gain on sales of treasury stock		3,191			5,702
Issuance and exercise of common stock options		7,296			(4,242	)
Beneficial conversion feature relating to convertible bond		—			2,959
Other net change in additional paid-in capital		—			(15	)

Balance at end of year		646,315			635,828

Retained earnings
Balance at beginning of year		1,074,213			1,038,557
Cumulative effect of change in accounting principle (1)(2)		(4,734	)		(6,339	)
Net income attributable to NHI shareholders		28,661			67,798
Cash dividends		(28,806	)		(25,803	)

Balance at end of year		1,069,334			1,074,213

Accumulated other comprehensive income (1oss)
Cumulative translation adjustments
Balance at beginning of year		(74,330	)		(73,469	)
Net change during the period		(23,096	)		(861	)

Balance at end of year		(97,426	)		(74,330	)

Defined benefit pension plans
Balance at beginning of year		(34,802	)		(44,968	)
Pension liability adjustment		2,532			10,166

Balance at end of year		(32,270	)		(34,802	)


Balance at end of year		(129,696	)		(109,132	)

Common stock held in treasury
Balance at beginning of year		(68,473	)		(76,902	)
Repurchases of common stock		(37,378	)		(18	)
Sale of common stock		4			13
Common stock issued to employees		8,155			8,275
Other net change in treasury stock		—			159

Balance at end of year		(97,692	)		(68,473	)

Total NHI shareholders’ equity

Balance at end of year		2,082,754			2,126,929

Noncontrolling interests
Balance at beginning of year		6,085			12,150
Net change during the period		2,797			(6,065	)

Balance at end of year		8,882			6,085

Total equity

Balance at end of year		2,091,636			2,133,014

Notes:

1.	Cumulative effect of change in accounting principle for the year ended March 31, 2010 was previously reported as Adjustments to initially apply “Contracts in entity’s own equity”.

2.	In relation to the change in Cumulative effect of change in accounting principle for the year ended March 31, 2011, refer to section “(7) Significant Changes for Presenting the Consolidated Financial Statements”.

(5)

Consolidated Statements of Cash Flows (UNAUDITED)


	Millions of yen
	For the year ended
	March 31, 2011			March 31, 2010
Cash flows from operating activities:
Net income		31,925			68,086
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		75,587			73,081
(Gain) loss on investments in equity securities		16,677			(6,042	)
Changes in operating assets and liabilities:
Time deposits		(155,251	)		348,003
Deposits with stock exchanges and other segregated cash		(67,738	)		142,416
Trading assets and private equity investments		(1,481,908	)		(3,123,679	)
Trading liabilities		1,206,394			3,737,079
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase		327,668			(1,437,635	)
Securities borrowed, net of securities loaned		(446,152	)		(69,472	)
Other secured borrowings		(160,031	)		(1,591,535	)
Loans and receivables, net of allowance for doubtful accounts		(354,691	)		(248,175	)
Payables		319,506			139,919
Bonus accrual		(8,802	)		30,784
Other, net		461,726			436,400

Net cash used in operating activities		(235,090	)		(1,500,770	)

Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities		(186,350	)		(83,079	)
Proceeds from sales of office buildings, land, equipment and facilities		109,888			2,909
Payments for purchases of investments in equity securities		(221	)		(2,318	)
Proceeds from sales of investments in equity securities		3,247			1,272
Increase in loans receivable at banks, net		(60,350	)		(105,800	)
Increase in non-trading debt securities, net		(286,013	)		(64,586	)
Other, net		(3,415	)		(18,041	)

Net cash used in investing activities		(423,214	)		(269,643	)

Cash flows from financing activities:
Increase in long-term borrowings		2,267,658			3,059,225
Decrease in long-term borrowings		(1,188,034	)		(1,470,978	)
Increase (decrease) in short-term borrowings, net		(97,282	)		137,076
Increase in deposits received at banks, net		368,354			13,279
Proceeds from issuances of common stock held in treasury		—			446,662
Proceeds from sales of common stock held in treasury		8			10
Payments for repurchases of common stock in treasury		(37,378	)		(18	)
Payments for cash dividends		(29,083	)		(11,130	)
Proceeds from issuances of stock by subsidiaries		—			2,404

Net cash provided by financing activities		1,284,243			2,176,530

Effect of exchange rate changes on cash and cash equivalents		(26,246	)		964

Net increase in cash and cash equivalents		599,693			407,081
Cash and cash equivalents at beginning of the year		1,020,647			613,566

Cash and cash equivalents at end of the year		1,620,340			1,020,647

Note:

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

(6)

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

Not applicable.

(7)

Significant Changes for Presenting the Consolidated Financial Statements (UNAUDITED)

Presentations of significant changes in accounting principles are as follows:

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—

On 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 offset by the effective portion of the foreign exchange gains (or losses) on the hedging instruments for net investment in such foreign subsidiaries.

(8)

Note to the Consolidated Financial Statements (UNAUDITED)

Segment Information – Operating Segment

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 year ended						(A-B)/(B)
	March 31, 2011 (A)			March 31, 2010 (B)			(A-B)/(B)
Net revenue

Business segment information:
Retail		392,433			388,272			1.1
Asset Management		80,744			70,365			14.8
Wholesale		630,536			789,531			(20.1	)

Sub Total		1,103,713			1,248,168			(11.6	)
Other		43,881			(106,753	)		—

Net revenue		1,147,594			1,141,415			0.5

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(16,896	)		9,407			—

Net revenue		1,130,698			1,150,822			(1.7	)


Non-interest expenses

Business segment information:
Retail		291,245			274,915			5.9
Asset Management		55,691			51,771			7.6
Wholesale		623,819			614,349			1.5

Sub Total		970,755			941,035			3.2
Other		66,688			104,540			(36.2	)

Non-interest expenses		1,037,443			1,045,575			(0.8	)

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

Non-interest expenses		1,037,443			1,045,575			(0.8	)


Income (loss) before income taxes

Business segment information:
Retail		101,188			113,357			(10.7	)
Asset Management		25,053			18,594			34.7
Wholesale		6,717			175,182			(96.2	)

Sub Total		132,958			307,133			(56.7	)
Other *		(22,807	)		(211,293	)		—

Income (loss) before income taxes		110,151			95,840			14.9

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(16,896	)		9,407			—

Income (loss) before income taxes		93,255			105,247			(11.4	)

*	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, 2011 (A)			March 31, 2010 (B)			(A-B)/(B)
Net gain (loss) related to economic hedging transactions		2,290			3,323			(31.1	)
Realized gain (loss) on investments in equity securities held for operating purposes		219			(3,365	)		—
Equity in earnings of affiliates		8,996			7,765			15.9
Corporate items		(33,327	)		(83,291	)		—
Others		(985	)		(135,725	)		—

Total		(22,807	)		(211,293	)		—

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

Per share data

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


Number of shares outstanding as of March 31, 2011			3,600,886,932

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, 2011			3,627,798,587

Significant Subsequent Events

Not applicable.

4.	Other Information

(1)

Consolidated Statements of Operations – Quarterly Comparatives (UNAUDITED)


	Millions of yen																							% Change
	For the three months ended																							(B-A)/(A)
	June 30, 2009			September 30, 2009			December 31, 2009			March 31, 2010		June 30, 2010			September 30, 2010			December 31, 2010 (A)			March 31, 2011 (B)			(B-A)/(A)
Revenue:
Commissions		102,024			95,438			101,050			96,571		118,078			83,520			100,041			103,824			3.8
Fees from investment banking		29,729			15,580			44,516			31,429		20,366			24,892			33,974			27,773			(18.3	)
Asset management and portfolio service fees		30,331			34,016			34,235			33,667		34,854			33,712			37,119			38,254			3.1
Net gain on trading		121,132			148,487			66,481			81,324		59,969			102,993			104,878			68,663			(34.5	)
Gain (loss) on private equity investments		(2,139	)		2,033			2,342			9,670		(946	)		(963	)		(2,386	)		23,587			—
Interest and dividends		58,427			53,561			67,414			55,908		75,757			69,960			106,880			93,506			(12.5	)
Gain (loss) on investments in equity securities		9,801			(2,308	)		(3,827	)		2,376		(10,343	)		(5,685	)		2,106			(2,755	)		—
Other		14,290			8,663			9,377			5,153		16,281			11,989			3,422			12,172			255.7

Total revenue		363,595			355,470			321,588			316,098		314,016			320,418			386,034			365,024			(5.4	)
Interest expense		65,236			55,445			47,050			38,198		54,192			44,795			90,167			65,640			(27.2	)

Net revenue		298,359			300,025			274,538			277,900		259,824			275,623			295,867			299,384			1.2

Non-interest expenses:
Compensation and benefits		138,081			146,633			126,239			115,285		122,087			126,694			143,131			127,081			(11.2	)
Commissions and floor brokerage		20,043			21,706			22,922			21,458		23,681			21,357			24,013			23,037			(4.1	)
Information processing and communications		40,160			43,924			43,919			47,572		44,253			46,662			44,209			47,794			8.1
Occupancy and related depreciation		21,992			22,598			21,298			21,918		22,511			23,086			20,507			21,739			6.0
Business development expenses		6,256			6,380			6,544			8,153		7,159			6,780			7,429			8,785			18.3
Other		40,406			31,492			35,659			34,937		33,663			29,446			28,804			33,535			16.4

		266,938			272,733			256,581			249,323		253,354			254,025			268,093			261,971			(2.3	)

Income before income taxes		31,421			27,292			17,957			28,577		6,470			21,598			27,774			37,413			34.7
Income tax expense		20,678			(1,049	)		7,745			9,787		3,440			19,660			14,483			23,747			64.0

Net income		10,743			28,341			10,212			18,790		3,030			1,938			13,291			13,666			2.8

Less: Net income (loss) attributable to noncontrolling interests		(677	)		626			(24	)		363		708			887			(98	)		1,767			—

Net income attributable to NHI shareholders		11,420			27,715			10,236			18,427		2,322			1,051			13,389			11,899			(11.1	)


	Yen																							% Change
Per share of common stock:
Basic-
Net income attributable to NHI shareholders per share		4.37			10.22			2.91			5.02		0.63			0.29			3.72			3.30			(11.3	)

Diluted-
Net income attributable to NHI shareholders per share		1.81			8.87			2.89			5.00		0.63			0.29			3.70			3.28			(11.4	)

(2)

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
	For the three months ended																								(B-A)/(A)
	June 30, 2009			September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010 (A)			March 31, 2011 (B)			(B-A)/(A)
Net revenue

Business segment information:
Retail		95,380			93,150			104,290			95,452			110,959			87,753			97,482			96,239			(1.3	)
Asset Management		18,650			16,467			17,247			18,001			18,119			19,304			21,396			21,925			2.5
Wholesale		211,720			199,304			210,091			168,416			108,609			163,405			172,174			186,348			8.2

Sub Total		325,750			308,921			331,628			281,869			237,687			270,462			291,052			304,512			4.6
Other		(37,139	)		(7,056	)		(53,198	)		(9,360	)		32,730			10,133			3,100			(2,082	)		—

Net revenue		288,611			301,865			278,430			272,509			270,417			280,595			294,152			302,430			2.8

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		9,748			(1,840	)		(3,892	)		5,391			(10,593	)		(4,972	)		1,715			(3,046	)		—

Net revenue		298,359			300,025			274,538			277,900			259,824			275,623			295,867			299,384			1.2


Non-interest expenses

Business segment information:
Retail		67,521			66,796			69,119			71,479			73,216			64,975			74,482			78,572			5.5
Asset Management		13,521			11,994			13,166			13,090			13,220			14,083			14,410			13,978			(3.0	)
Wholesale		158,458			161,110			161,584			133,197			149,755			155,764			161,389			156,911			(2.8	)

Sub Total		239,500			239,900			243,869			217,766			236,191			234,822			250,281			249,461			(0.3	)
Other		27,438			32,833			12,712			31,557			17,163			19,203			17,812			12,510			(29.8	)

Non-interest expenses		266,938			272,733			256,581			249,323			253,354			254,025			268,093			261,971			(2.3	)

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			254,025			268,093			261,971			(2.3	)


Income (loss) before income taxes

Business segment information:
Retail		27,859			26,354			35,171			23,973			37,743			22,778			23,000			17,667			(23.2	)
Asset Management		5,129			4,473			4,081			4,911			4,899			5,221			6,986			7,947			13.8
Wholesale		53,262			38,194			48,507			35,219			(41,146	)		7,641			10,785			29,437			172.9

Sub Total		86,250			69,021			87,759			64,103			1,496			35,640			40,771			55,051			35.0
Other *		(64,577	)		(39,889	)		(65,910	)		(40,917	)		15,567			(9,070	)		(14,712	)		(14,592	)		—

Income (loss) before income taxes		21,673			29,132			21,849			23,186			17,063			26,570			26,059			40,459			55.3

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		9,748			(1,840	)		(3,892	)		5,391			(10,593	)		(4,972	)		1,715			(3,046	)		—

Income (loss) before income taxes		31,421			27,292			17,957			28,577			6,470			21,598			27,774			37,413			34.7

*	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, 2009			September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010 (A)			March 31, 2011 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		5,350			8,589			(13,316	)		2,700			5,228			(6,019	)		5,168			(2,087	)		—
Realized gain (loss) on investments in equity securities held for operating purposes		53			(468	)		65			(3,015	)		250			(713	)		391			291			(25.6	)
Equity in earnings of affiliates		3,701			602			1,877			1,585			363			1,993			1,380			5,260			281.2
Corporate items		(24,896	)		(19,588	)		(10,693	)		(28,114	)		(2,486	)		5,512			(15,668	)		(20,685	)		—
Others		(48,785	)		(29,024	)		(43,843	)		(14,073	)		12,212			(9,843	)		(5,983	)		2,629			—

Total		(64,577	)		(39,889	)		(65,910	)		(40,917	)		15,567			(9,070	)		(14,712	)		(14,592	)		—

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

(3)

Other

Financial information for Nomura Holdings, Inc. (unconsolidated) can be found on the following URL.

http://www.nomuraholdings.com/company/group/holdings/pdf/2011_4q.pdf

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

http://www.nomuraholdings.com/company/group/nsc/pdf/2011_4q.pdf