33
Connecting Markets East & West © Nomura (US GAAP) July 2019 Consolidated Results of Operations First quarter, year ending March 2020 Nomura Holdings, Inc.
Connecting Markets East amp West
copy Nomura
(US GAAP)
July 2019
Consolidated Results of OperationsFirst quarter year ending March 2020
Nomura Holdings Inc
Outline
Presentation Financial Supplement
Executive summary (p 2)
Overview of results (p 3)
Business segment results (p 4)
Retail (p 5-6)
Asset Management (p 7-8)
Wholesale (p 9-11)
Non-interest expenses (p 12)
Robust financial position (p 13)
Funding and liquidity (p 14)
Consolidated balance sheet (p 16)
Value at risk (p 17)
Consolidated financial highlights (p 18)
Consolidated income (p 19)
Main revenue items (p 20)
Consolidated results Income (loss) before income taxes bysegment and region (p 21)
Segment ldquoOtherrdquo (p 22)
Retail related data (p 23-26)
Asset Management related data (p 27-28)
Wholesale related data (p 29)
Number of employees (p 30)
228 260
-813
47
463
RetailAsset ManagementWholesale
FY201920 1Q highlights
Executive summary
1 Net income (loss) attributable to Nomura Holdings shareholders 2 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period3 Diluted net income attributable to Nomura Holdings shareholders per share 4 We refer to our sales representative as ldquopartnerrdquo 5 Separately managed account a discretionary investment service 6 Severance and other expenses related to revision of business portfolio (Y84bn)
Income (loss) before income taxes and net income (loss)1
Firm-wide
Three segment income (loss) before income taxes
(bil l ions of yen)
2
FY201819 FY1920
1Q 2Q 3Q 4Q 1Q
Income before income taxes Y748bn Net income1 Y558bn ROE2 84 EPS3 Y1648
ndash All business divisions reported higher net revenue and income before income taxes QoQndash All three international regions returned to pretax profit (three region total Y304bn) as we reviewed
our business portfolio and focused on our areas of competitive strength
Three segment income before income taxes Y463bn
Retailndash Stronger sales of investment trusts and bonds driven by improved investor sentiment and efforts of
our Partners4 in branchesndash Assets under management in SMAs5 continued to grow as we introduced wrap trusts aimed at
meeting estate planning needs
Asset Managementndash Twelfth straight quarter of inflows offset a decline due to market factors to lift assets under
managementndash Gainloss related to American Century Investments contributed to higher net revenue and income
before income taxes QoQ
Wholesalendash Global markets improved QoQ as Fixed Income Americas booked significantly stronger revenues
and Japan improved and Americas Equities remained resilientndash Wholesale costs declined QoQ as one-off expenses6 booked last quarter were no longer present and
cost allocations from Corporate declinedFY201819 FY1920
1Q 2Q 3Q 4Q 1Q
136 05
-762
244
748
52
-112
-953
08
558
Income (loss) before income taxesNet income (loss)
Highlights
Overview of results
1 Net income attributable to Nomura Holdings shareholders 2 Diluted net income attributable to Nomura Holdings shareholders per share 3 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period 3
FY2019201Q
FY2018194Q QoQ FY201819
1Q YoY
Net revenue 3320 3013 +10 2720 +22
Non-interest expenses 2572 2769 -7 2584 -04
Income before income taxes 748 244 31x 136 55x
Net income1 558 08 662x 52 107x
EPS2 Y1648 Y023 717x Y150 110x
ROE3 84 01 08
(bill ions of yen except EPS and ROE)
Net revenue and income (loss) before income taxes
Business segment results
4
QoQFY201819 4QFY201920 1Q FY201819 1Q YoY
Net revenue Retail 806 742 +9 928 -13
Asset Management 345 309 +12 261 +32
Wholesale 1595 1422 +12 1373 +16
Subtotal 2746 2473 +11 2562 +7
Other 603 521 +16 137 44x
Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Net revenue 3320 3013 +10 2720 +22
Income (loss) before income taxes
Retail 81 33 +146 199 -59
Asset Management 181 144 +26 103 +76
Wholesale 200 -130 - -74 -
Subtotal 463 47 98x 228 +103
Other 315 178 +76 -112 -Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Income before income taxes 748 244 31x 136 55x
Net gain related to economic hedging transactions (Y128bn) Gain on changes to ow n and counterparty credit spread relating to Derivatives (Y21bn)Additional information on ldquoOtherrdquo (1Q)
(bil l ions of yen)
Retail
1 We refer to our sales representatives as ldquopartnerrdquo 2 Includes Junior NISA 3 Cash and securities inflows minus outflows excluding regional financial institutions 4 Retail channels only 5 Retail channels Net amp Call and Hotto Direct
Net revenue Y806bn (+9 QoQ -13 YoY) Income before income taxes Y81bn (QoQ +146 YoY -59) Net revenue and income before income taxes both up QoQ
minus Sales of investment trusts and bonds grew on improved investor sentiment and continued efforts by our Partners1
minus Expenses increased due to higher bonus provisions in line with pay for performance and one-off expenses related to branch office integration but IT-related expenses declined
Client franchiseminus Retail client assetsminus Accounts with balanceminus NISA accounts opened (accumulated)2
minus Net inflows of cash and securities3
5
Net revenue and income before income taxes
Total sales4
Key points(bil l ions of yen)
(bil l ions of yen) Total sales4 up 21 QoQ
Stocks +2 QoQndash Stronger secondary sales of Japanese and international stocksndash Decline in subscriptions for primary stocks5 (Y525bn -31 QoQ)
Investment trusts +43 QoQndash Inflows into primary funds investing in global stocks
Bonds Y6744bn +42 QoQndash Domestic bonds saw solid sales of primary bonds and JGBs for individual
investors while foreign bond sales increased driven by US dollar denominated bonds
Sales of discretionary investment and insurance increased 30 QoQFY201819 FY201920
1Q 2Q 3Q 4Q 1Q
Jun 1QY1131trn
533m171m
-Y1206bn
Mar 4QY1147trn
534m170m
-Y3928bn
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Net revenue 928 857 868 742 806 +9 -13
Non-interest expenses 729 735 727 709 725 +2 -1
Income before income taxes 199 122 140 33 81 +146 -59
0
1000
2000
3000
4000Stocks Bonds Investment trusts Discretionary investments Insurance products
5357 6087 6385 6889 73973951 5017
5913 6232 7061
0
2000
4000
6000
8000
00
2000
4000
6000
8000SMA AuM number of SMA contracts
Annualized recurring revenue of Y904bnndash Investment trusts Subscriptions grew but cancellations and outflows
continuedndash Discretionary investments Fund Wrap saw net declines but SMA3 AuM
trended up as we introduced wrap trusts to meet estate planning needs
Recurring revenuendash Investment trust net inflows1
ndash Discretionary investment net inflows1
Sales of insurance products2
Inflows of cash and securities2
Retail Continued to provide services matched to client needs
1 Retail channels and Japan Wealth Management Group 2 Retail channels only 3 Separately managed account a discretionary investment service 6
Recurring revenue
Investment trust and discretionary investment AuM SMA3 AuM and number of contracts
(bil l ions of yen)
Mar 4QY217bn
-Y582bn-Y108bn
Y462bnY9441bn
(tri l l ions of yen) (bil l ions of yen)
Jun 1QY225bn
-Y297bn-Y405bn
Y547bnY10549bn
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(number of contracts)
FY201819 FY201920Jun Sep Dec Mar Jun
904 909 899 880 904
31 31 31 31 31
0
10
20
30
200
400
600
800
1000
Recurring revenue (annualized adjusted basis)Recurring revenue cost coverage ratio (rhs)
103 104 93 101 101
27 2827 28 28
130 132121 129 129
00
50
100
150
Stock investment trusts + Foreign investment trusts Discretionary investment
Asset Management
Net revenue and income before income taxes1 Key points
Assets under management (net)2
7
(tri l l ions of yen)
1 This table presents a reconciliation of net revenues (other than ACI-related gainloss) and ACI-related gainloss which are non-GAAP measures prepared on a management accounting basis to net revenue for the Asset Management segment ACI-related gainloss includes fair value adjustments of our investment in funding cost equivalent for our investment in and dividends from ACI
2 Net after deducting duplications from assets under management (gross) of Nomura Asset Management Nomura Corporate Research and Asset Management and Wealth Square
Net revenue Y345bn (+12 QoQ +32 YoY) Income before income taxes Y181bn (+26 QoQ +76 YoY) Net revenue and income before income taxes both up QoQ and YoY
minus Asset management fees remained solid Twelfth straight quarter of inflows and AuM at second highest level ever
minus Contribution from gainloss related to American Century Investments (ACI)
Investment trust business Ongoing inflows into ETFs lifted AuM to a record high (end June Y172trn
Market share 45) Inflows continued into Nomura ACI Advanced Medical Impact Investment and
defined contribution pension funds Outflows from Nomura India Investment Fund and some other foreign stock
funds
Investment advisory business and international business In Japan inflows from public pension fund into alternative investment fund
and outflows from private pension fund by shift to defined contribution pension plans
Internationally we won a new mandate in EMEA but reported outflows in AEJ and the Middle East due to redemptions by some public institutions
347 360 333 355 360
162 168 151 158 156
508 528483 514 516
Investment trust business Investment advisory business
FY201819 FY201920Jun Sep Dec Mar Jun
FY1920
1Q 2Q 3Q 4Q 1Q
263 261 245 260 258 -1 -2
-02 -15 -83 49 87 +77 -
261 247 162 309 345 +12 +32
158 158 156 165 164 -1 +3
103 89 06 144 181 +26 +76
FY201819QoQ YoY
Revenue (excl ACI-related)
ACI-related gainloss
Net revenue
Non-interest expenses
Income before income taxes
(bil l ions of yen)
6157 63677341
86079699 9942
Mar15 Mar16 Mar17 Mar18 Mar19 Jun19
147 510
1391
483 642
-1000
-500
0
500
1000
1500
2000
273 273
277 276278
260
270
280
Asset Management Steady growth in defined contribution pension funds
Flow of funds1
Flow of funds in investment trust business1
(bil l ions of yen)
(bil l ions of yen)
1 Based on assets under management (net) 2 Source The Investment Trusts Association Japan
MRFs etcOther investment trusts (excl ETFs)
ETFsInvestment trust business (excl ETFs)
116
-230-250
263 280
1141
503 672 109 156
-354
109
-164
372 436
787
612 508
-500
0
500
1000
1500
Investment trust business Investment advisory business
20
Nomura Asset Management public investment trust market share2
Defined contribution pension funds
8
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY201920Jun Sep Dec Mar Jun
31
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(bill ions of yen)
Steady market growth driven by shift from defined benefit pension plans to defined contribution pension plans
Product proposals that take into account client risk appetite and support asset formation over the long term contributed to AuM growth
AuM increased by Y3785bn (+61) in just over four years
Net revenue Y1595bn (+12 QoQ +16 YoY) Income before income taxes Y20bn
Rebound in Global Markets revenues drove wholesale revenues higher QoQ and YoYminusFixed Income Americas booked significantly stronger revenues and Japan improved and Americas Equities remained resilient
minus Investment Banking revenues declined from last quarter when contributions from several completed high-profile MampA deals were booked
Wholesale expenses declined as one-off expenses2 booked last quarter were no longer present and expense allocations from Corporate declined
Net revenue by region (QoQ YoY)Americas Y593bn (+40 +19)
minus Strongest quarterly revenues in past five quarters Fixed Income revenues strong driven by Rates Equities saw rebound in Derivatives revenues
Japan Y468bn (+8 +13)minus Higher revenues QoQ as Credit drove stronger revenues in Fixed Income
EMEA Y294bn (-7 +1)minus Fixed Income reported slight decline from strong previous quarter but
performance remained solid particularly in Rates
AEJ Y24bn (-4 +44)minus Fixed Income reported decline from strong previous quarter but FX amp EM
and Credit remained solid
Wholesale
Key pointsNet revenue and income (loss) before income taxes1
Net revenue by region
(bil l ions of yen)
(bil l ions of yen)
91 This table shows net revenue for Wholesale using adjusted figures for Global Markets and Investment Banking based on management accounting not applicable to US GAAP2 Severance and other expenses related to revision of business portfolio (Y84bn)
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Global Markets 1122 1238 1035 1136 1357 +20 +21
Investment Banking 251 239 247 286 237 -17 -5
Net revenue 1373 1477 1282 1422 1595 +12 +16
Non-interest expenses 1447 1427 2241 1553 1395 -10 -4
Income (loss) before income taxes -74 49 -959 -130 200 - -
FY201819 FY19201Q 2Q 3Q 4Q 1Q
415 599 490 433 468
167203
106 250 240292
245273
316 294
499429
413423 593
00
500
1000
1500
2000
Americas
EMEA
AEJ
Japan
YoY QoQ
Global Markets
Global MarketsFixed
Income Equities
Net revenue Y1357bn (+20 QoQ +21 YoY)minus Fixed Income Americas booked significantly stronger revenues and Japan
improved minus Equities revenues also increased driven by improved performance in
Americas Derivatives
Fixed Income Net revenue Y825bn (+21 QoQ +43 YoY)
minus Rates had a good quarter as we captured opportunities amid declining interest rate environment to grow our agency mortgage business
minus Revenues from Credit and other spread products improved
Equities Net revenue Y533bn (+17 QoQ -2 YoY)
minus Derivatives had a strong quarter on an uptick in client activity
Wholesale Global Markets
(bil l ions of yen)EquitiesFixed Income
Net revenue
QoQ+20
YoY +21
Key points
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201920 1Q net revenue by region
10
Americas Fixed Income revenues were at their highest in 10 quarters Derivatives had a good quarter
EMEA Revenues declined slightly QoQ but Rates business had a solid quarter as monetary policy drove an uptick in client activity and market volatility
AEJ Revenues declined from strong previous quarter but FX amp EM and Credit remained robust and Derivatives revenues improved
Japan Cash Equities revenues declined due to slower client flows Fixed Income saw an increase in demand for Credit Products
Japan
AEJ
EMEA
Americas
577 696375
680 825
545542
659
456533
11221238
10351136
1357
0 ~ 5 5 ~ 15 15 ~+ndash +ndash +ndash +ndash
251 239 247286
237
Net revenue Y237bn (-17 QoQ -5 YoY)minus Japan and international revenues both down from last quarter which
included several completed high-profile MampA deals minus Lower fee pools YoY led to decline in revenues but MampA and ALF
revenues increased Contributions from AEJ cross-border MampA deals and multi-product
transactionsJapanminus Traditional financing business roughly unchanged QoQminus MampA revenues remained solid but declined from strong prior quarter Internationalminus Revenue contributions mainly in Americas from ALF transactions involving
financial sponsors
Wholesale Investment Banking
Net revenue1
Key points
QoQ-17YoY-5
11
Won multiple cross-border MampA high-profile mandates
11
(bill ions of yen)
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
Cross-border deals
Financing
MampA
SansanIPO
(Y389bn)
SoftBank s acquisition of stake inYahoo Japan and Yahoo Japans
share buyback(Y4565bn Y5265bn)
Tokai Carbonrsquos acquisition of COBEX (Germany)
(euro822m)
Financing on Apax Partners rsquo (US) acquisition of Trade Me (New
Zealand)($864m)
Financing on Hellman amp Friedmanrsquos (US) acquisition of Ultimate Softw are Group(US)
($35bn)
Softbank GroupRetail Bond(Y500bn)
Nippon Paint Holdgins rsquo acquisition of DuluxGroup
(Australia)($29bn)
Misawa Homes becoming a wholly owned subsidiary of Toyota Home through share exchange Integrate and establish joint
venture related to town development business between Toyota Motor and Panasonic
(Y221bn Undisclosed)
Chew y(US)IPO
($10bn)
Takeda Pharmaceuticalrsquos sale of TachoSil to Johnson amp Johnson
(US)($400m)
Hillhouse Capital Managementrsquos (China) acquisition of Loch Lomond
Distillery (UK)(Undisclosed)
Republic of ItalyBenchmark Bond
(euro60bn)
11688 11545
0
500
1000
1500
Other
Business developmentexpenses
Occupancy and relateddepreciation
Information processingand communications
Commissions and floorbrokeragesup1
Compensation andbenefits
Non-interest expenses
Key points
121 On April 1 2018 Nomura adopted Accounting Standards Update 2014-09 ldquoRevenue from Contracts with Customersrdquo and revenues and expenses related to certain Execution Services transactions are now shown as net value rather than gross value
Full year Quarter(bil l ions of yen) (bil l ions of yen)
Non-interest expenses Y2572bn(-7 QoQ)
ndash Compensation and benefits (+04 QoQ) Higher bonus provisions due to pay for
performance One-off expenses related to revision of
business portfolio booked last quarter (Y103bn) no longer present
ndash Occupancy and related depreciation (+18 QoQ) One-off expenses (Y26bn) related to
branch office integration in Japan
ndash Other (-40 QoQ) Lower legal expenses related to legacy
transactions Decline in compensation paid to law
firms and other professionals
FY201920
1Q 2Q 3Q 4Q 1Q
Compensation and benefits 5306 4971 1277 1258 1189 1246 1251 04Commissions and f loor brokeragesup1 999 826 209 196 238 183 246 341Information processing and communications 1848 1669 410 405 418 436 418 -43Occupancy and related depreciation 679 649 164 165 159 162 191 177Business dev elopment expenses 368 369 89 93 91 96 78 -181Other 2489 3060 435 708 1273 645 388 -398Total 11688 11545 2584 2825 3368 2769 2572 -71
QoQFY201819
FY201819FY201718
2584 2825
3368
2769 2572
0
100
200
300
400
Outline
Presentation Financial Supplement
Executive summary (p 2)
Overview of results (p 3)
Business segment results (p 4)
Retail (p 5-6)
Asset Management (p 7-8)
Wholesale (p 9-11)
Non-interest expenses (p 12)
Robust financial position (p 13)
Funding and liquidity (p 14)
Consolidated balance sheet (p 16)
Value at risk (p 17)
Consolidated financial highlights (p 18)
Consolidated income (p 19)
Main revenue items (p 20)
Consolidated results Income (loss) before income taxes bysegment and region (p 21)
Segment ldquoOtherrdquo (p 22)
Retail related data (p 23-26)
Asset Management related data (p 27-28)
Wholesale related data (p 29)
Number of employees (p 30)
228 260
-813
47
463
RetailAsset ManagementWholesale
FY201920 1Q highlights
Executive summary
1 Net income (loss) attributable to Nomura Holdings shareholders 2 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period3 Diluted net income attributable to Nomura Holdings shareholders per share 4 We refer to our sales representative as ldquopartnerrdquo 5 Separately managed account a discretionary investment service 6 Severance and other expenses related to revision of business portfolio (Y84bn)
Income (loss) before income taxes and net income (loss)1
Firm-wide
Three segment income (loss) before income taxes
(bil l ions of yen)
2
FY201819 FY1920
1Q 2Q 3Q 4Q 1Q
Income before income taxes Y748bn Net income1 Y558bn ROE2 84 EPS3 Y1648
ndash All business divisions reported higher net revenue and income before income taxes QoQndash All three international regions returned to pretax profit (three region total Y304bn) as we reviewed
our business portfolio and focused on our areas of competitive strength
Three segment income before income taxes Y463bn
Retailndash Stronger sales of investment trusts and bonds driven by improved investor sentiment and efforts of
our Partners4 in branchesndash Assets under management in SMAs5 continued to grow as we introduced wrap trusts aimed at
meeting estate planning needs
Asset Managementndash Twelfth straight quarter of inflows offset a decline due to market factors to lift assets under
managementndash Gainloss related to American Century Investments contributed to higher net revenue and income
before income taxes QoQ
Wholesalendash Global markets improved QoQ as Fixed Income Americas booked significantly stronger revenues
and Japan improved and Americas Equities remained resilientndash Wholesale costs declined QoQ as one-off expenses6 booked last quarter were no longer present and
cost allocations from Corporate declinedFY201819 FY1920
1Q 2Q 3Q 4Q 1Q
136 05
-762
244
748
52
-112
-953
08
558
Income (loss) before income taxesNet income (loss)
Highlights
Overview of results
1 Net income attributable to Nomura Holdings shareholders 2 Diluted net income attributable to Nomura Holdings shareholders per share 3 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period 3
FY2019201Q
FY2018194Q QoQ FY201819
1Q YoY
Net revenue 3320 3013 +10 2720 +22
Non-interest expenses 2572 2769 -7 2584 -04
Income before income taxes 748 244 31x 136 55x
Net income1 558 08 662x 52 107x
EPS2 Y1648 Y023 717x Y150 110x
ROE3 84 01 08
(bill ions of yen except EPS and ROE)
Net revenue and income (loss) before income taxes
Business segment results
4
QoQFY201819 4QFY201920 1Q FY201819 1Q YoY
Net revenue Retail 806 742 +9 928 -13
Asset Management 345 309 +12 261 +32
Wholesale 1595 1422 +12 1373 +16
Subtotal 2746 2473 +11 2562 +7
Other 603 521 +16 137 44x
Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Net revenue 3320 3013 +10 2720 +22
Income (loss) before income taxes
Retail 81 33 +146 199 -59
Asset Management 181 144 +26 103 +76
Wholesale 200 -130 - -74 -
Subtotal 463 47 98x 228 +103
Other 315 178 +76 -112 -Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Income before income taxes 748 244 31x 136 55x
Net gain related to economic hedging transactions (Y128bn) Gain on changes to ow n and counterparty credit spread relating to Derivatives (Y21bn)Additional information on ldquoOtherrdquo (1Q)
(bil l ions of yen)
Retail
1 We refer to our sales representatives as ldquopartnerrdquo 2 Includes Junior NISA 3 Cash and securities inflows minus outflows excluding regional financial institutions 4 Retail channels only 5 Retail channels Net amp Call and Hotto Direct
Net revenue Y806bn (+9 QoQ -13 YoY) Income before income taxes Y81bn (QoQ +146 YoY -59) Net revenue and income before income taxes both up QoQ
minus Sales of investment trusts and bonds grew on improved investor sentiment and continued efforts by our Partners1
minus Expenses increased due to higher bonus provisions in line with pay for performance and one-off expenses related to branch office integration but IT-related expenses declined
Client franchiseminus Retail client assetsminus Accounts with balanceminus NISA accounts opened (accumulated)2
minus Net inflows of cash and securities3
5
Net revenue and income before income taxes
Total sales4
Key points(bil l ions of yen)
(bil l ions of yen) Total sales4 up 21 QoQ
Stocks +2 QoQndash Stronger secondary sales of Japanese and international stocksndash Decline in subscriptions for primary stocks5 (Y525bn -31 QoQ)
Investment trusts +43 QoQndash Inflows into primary funds investing in global stocks
Bonds Y6744bn +42 QoQndash Domestic bonds saw solid sales of primary bonds and JGBs for individual
investors while foreign bond sales increased driven by US dollar denominated bonds
Sales of discretionary investment and insurance increased 30 QoQFY201819 FY201920
1Q 2Q 3Q 4Q 1Q
Jun 1QY1131trn
533m171m
-Y1206bn
Mar 4QY1147trn
534m170m
-Y3928bn
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Net revenue 928 857 868 742 806 +9 -13
Non-interest expenses 729 735 727 709 725 +2 -1
Income before income taxes 199 122 140 33 81 +146 -59
0
1000
2000
3000
4000Stocks Bonds Investment trusts Discretionary investments Insurance products
5357 6087 6385 6889 73973951 5017
5913 6232 7061
0
2000
4000
6000
8000
00
2000
4000
6000
8000SMA AuM number of SMA contracts
Annualized recurring revenue of Y904bnndash Investment trusts Subscriptions grew but cancellations and outflows
continuedndash Discretionary investments Fund Wrap saw net declines but SMA3 AuM
trended up as we introduced wrap trusts to meet estate planning needs
Recurring revenuendash Investment trust net inflows1
ndash Discretionary investment net inflows1
Sales of insurance products2
Inflows of cash and securities2
Retail Continued to provide services matched to client needs
1 Retail channels and Japan Wealth Management Group 2 Retail channels only 3 Separately managed account a discretionary investment service 6
Recurring revenue
Investment trust and discretionary investment AuM SMA3 AuM and number of contracts
(bil l ions of yen)
Mar 4QY217bn
-Y582bn-Y108bn
Y462bnY9441bn
(tri l l ions of yen) (bil l ions of yen)
Jun 1QY225bn
-Y297bn-Y405bn
Y547bnY10549bn
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(number of contracts)
FY201819 FY201920Jun Sep Dec Mar Jun
904 909 899 880 904
31 31 31 31 31
0
10
20
30
200
400
600
800
1000
Recurring revenue (annualized adjusted basis)Recurring revenue cost coverage ratio (rhs)
103 104 93 101 101
27 2827 28 28
130 132121 129 129
00
50
100
150
Stock investment trusts + Foreign investment trusts Discretionary investment
Asset Management
Net revenue and income before income taxes1 Key points
Assets under management (net)2
7
(tri l l ions of yen)
1 This table presents a reconciliation of net revenues (other than ACI-related gainloss) and ACI-related gainloss which are non-GAAP measures prepared on a management accounting basis to net revenue for the Asset Management segment ACI-related gainloss includes fair value adjustments of our investment in funding cost equivalent for our investment in and dividends from ACI
2 Net after deducting duplications from assets under management (gross) of Nomura Asset Management Nomura Corporate Research and Asset Management and Wealth Square
Net revenue Y345bn (+12 QoQ +32 YoY) Income before income taxes Y181bn (+26 QoQ +76 YoY) Net revenue and income before income taxes both up QoQ and YoY
minus Asset management fees remained solid Twelfth straight quarter of inflows and AuM at second highest level ever
minus Contribution from gainloss related to American Century Investments (ACI)
Investment trust business Ongoing inflows into ETFs lifted AuM to a record high (end June Y172trn
Market share 45) Inflows continued into Nomura ACI Advanced Medical Impact Investment and
defined contribution pension funds Outflows from Nomura India Investment Fund and some other foreign stock
funds
Investment advisory business and international business In Japan inflows from public pension fund into alternative investment fund
and outflows from private pension fund by shift to defined contribution pension plans
Internationally we won a new mandate in EMEA but reported outflows in AEJ and the Middle East due to redemptions by some public institutions
347 360 333 355 360
162 168 151 158 156
508 528483 514 516
Investment trust business Investment advisory business
FY201819 FY201920Jun Sep Dec Mar Jun
FY1920
1Q 2Q 3Q 4Q 1Q
263 261 245 260 258 -1 -2
-02 -15 -83 49 87 +77 -
261 247 162 309 345 +12 +32
158 158 156 165 164 -1 +3
103 89 06 144 181 +26 +76
FY201819QoQ YoY
Revenue (excl ACI-related)
ACI-related gainloss
Net revenue
Non-interest expenses
Income before income taxes
(bil l ions of yen)
6157 63677341
86079699 9942
Mar15 Mar16 Mar17 Mar18 Mar19 Jun19
147 510
1391
483 642
-1000
-500
0
500
1000
1500
2000
273 273
277 276278
260
270
280
Asset Management Steady growth in defined contribution pension funds
Flow of funds1
Flow of funds in investment trust business1
(bil l ions of yen)
(bil l ions of yen)
1 Based on assets under management (net) 2 Source The Investment Trusts Association Japan
MRFs etcOther investment trusts (excl ETFs)
ETFsInvestment trust business (excl ETFs)
116
-230-250
263 280
1141
503 672 109 156
-354
109
-164
372 436
787
612 508
-500
0
500
1000
1500
Investment trust business Investment advisory business
20
Nomura Asset Management public investment trust market share2
Defined contribution pension funds
8
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY201920Jun Sep Dec Mar Jun
31
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(bill ions of yen)
Steady market growth driven by shift from defined benefit pension plans to defined contribution pension plans
Product proposals that take into account client risk appetite and support asset formation over the long term contributed to AuM growth
AuM increased by Y3785bn (+61) in just over four years
Net revenue Y1595bn (+12 QoQ +16 YoY) Income before income taxes Y20bn
Rebound in Global Markets revenues drove wholesale revenues higher QoQ and YoYminusFixed Income Americas booked significantly stronger revenues and Japan improved and Americas Equities remained resilient
minus Investment Banking revenues declined from last quarter when contributions from several completed high-profile MampA deals were booked
Wholesale expenses declined as one-off expenses2 booked last quarter were no longer present and expense allocations from Corporate declined
Net revenue by region (QoQ YoY)Americas Y593bn (+40 +19)
minus Strongest quarterly revenues in past five quarters Fixed Income revenues strong driven by Rates Equities saw rebound in Derivatives revenues
Japan Y468bn (+8 +13)minus Higher revenues QoQ as Credit drove stronger revenues in Fixed Income
EMEA Y294bn (-7 +1)minus Fixed Income reported slight decline from strong previous quarter but
performance remained solid particularly in Rates
AEJ Y24bn (-4 +44)minus Fixed Income reported decline from strong previous quarter but FX amp EM
and Credit remained solid
Wholesale
Key pointsNet revenue and income (loss) before income taxes1
Net revenue by region
(bil l ions of yen)
(bil l ions of yen)
91 This table shows net revenue for Wholesale using adjusted figures for Global Markets and Investment Banking based on management accounting not applicable to US GAAP2 Severance and other expenses related to revision of business portfolio (Y84bn)
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Global Markets 1122 1238 1035 1136 1357 +20 +21
Investment Banking 251 239 247 286 237 -17 -5
Net revenue 1373 1477 1282 1422 1595 +12 +16
Non-interest expenses 1447 1427 2241 1553 1395 -10 -4
Income (loss) before income taxes -74 49 -959 -130 200 - -
FY201819 FY19201Q 2Q 3Q 4Q 1Q
415 599 490 433 468
167203
106 250 240292
245273
316 294
499429
413423 593
00
500
1000
1500
2000
Americas
EMEA
AEJ
Japan
YoY QoQ
Global Markets
Global MarketsFixed
Income Equities
Net revenue Y1357bn (+20 QoQ +21 YoY)minus Fixed Income Americas booked significantly stronger revenues and Japan
improved minus Equities revenues also increased driven by improved performance in
Americas Derivatives
Fixed Income Net revenue Y825bn (+21 QoQ +43 YoY)
minus Rates had a good quarter as we captured opportunities amid declining interest rate environment to grow our agency mortgage business
minus Revenues from Credit and other spread products improved
Equities Net revenue Y533bn (+17 QoQ -2 YoY)
minus Derivatives had a strong quarter on an uptick in client activity
Wholesale Global Markets
(bil l ions of yen)EquitiesFixed Income
Net revenue
QoQ+20
YoY +21
Key points
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201920 1Q net revenue by region
10
Americas Fixed Income revenues were at their highest in 10 quarters Derivatives had a good quarter
EMEA Revenues declined slightly QoQ but Rates business had a solid quarter as monetary policy drove an uptick in client activity and market volatility
AEJ Revenues declined from strong previous quarter but FX amp EM and Credit remained robust and Derivatives revenues improved
Japan Cash Equities revenues declined due to slower client flows Fixed Income saw an increase in demand for Credit Products
Japan
AEJ
EMEA
Americas
577 696375
680 825
545542
659
456533
11221238
10351136
1357
0 ~ 5 5 ~ 15 15 ~+ndash +ndash +ndash +ndash
251 239 247286
237
Net revenue Y237bn (-17 QoQ -5 YoY)minus Japan and international revenues both down from last quarter which
included several completed high-profile MampA deals minus Lower fee pools YoY led to decline in revenues but MampA and ALF
revenues increased Contributions from AEJ cross-border MampA deals and multi-product
transactionsJapanminus Traditional financing business roughly unchanged QoQminus MampA revenues remained solid but declined from strong prior quarter Internationalminus Revenue contributions mainly in Americas from ALF transactions involving
financial sponsors
Wholesale Investment Banking
Net revenue1
Key points
QoQ-17YoY-5
11
Won multiple cross-border MampA high-profile mandates
11
(bill ions of yen)
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
Cross-border deals
Financing
MampA
SansanIPO
(Y389bn)
SoftBank s acquisition of stake inYahoo Japan and Yahoo Japans
share buyback(Y4565bn Y5265bn)
Tokai Carbonrsquos acquisition of COBEX (Germany)
(euro822m)
Financing on Apax Partners rsquo (US) acquisition of Trade Me (New
Zealand)($864m)
Financing on Hellman amp Friedmanrsquos (US) acquisition of Ultimate Softw are Group(US)
($35bn)
Softbank GroupRetail Bond(Y500bn)
Nippon Paint Holdgins rsquo acquisition of DuluxGroup
(Australia)($29bn)
Misawa Homes becoming a wholly owned subsidiary of Toyota Home through share exchange Integrate and establish joint
venture related to town development business between Toyota Motor and Panasonic
(Y221bn Undisclosed)
Chew y(US)IPO
($10bn)
Takeda Pharmaceuticalrsquos sale of TachoSil to Johnson amp Johnson
(US)($400m)
Hillhouse Capital Managementrsquos (China) acquisition of Loch Lomond
Distillery (UK)(Undisclosed)
Republic of ItalyBenchmark Bond
(euro60bn)
11688 11545
0
500
1000
1500
Other
Business developmentexpenses
Occupancy and relateddepreciation
Information processingand communications
Commissions and floorbrokeragesup1
Compensation andbenefits
Non-interest expenses
Key points
121 On April 1 2018 Nomura adopted Accounting Standards Update 2014-09 ldquoRevenue from Contracts with Customersrdquo and revenues and expenses related to certain Execution Services transactions are now shown as net value rather than gross value
Full year Quarter(bil l ions of yen) (bil l ions of yen)
Non-interest expenses Y2572bn(-7 QoQ)
ndash Compensation and benefits (+04 QoQ) Higher bonus provisions due to pay for
performance One-off expenses related to revision of
business portfolio booked last quarter (Y103bn) no longer present
ndash Occupancy and related depreciation (+18 QoQ) One-off expenses (Y26bn) related to
branch office integration in Japan
ndash Other (-40 QoQ) Lower legal expenses related to legacy
transactions Decline in compensation paid to law
firms and other professionals
FY201920
1Q 2Q 3Q 4Q 1Q
Compensation and benefits 5306 4971 1277 1258 1189 1246 1251 04Commissions and f loor brokeragesup1 999 826 209 196 238 183 246 341Information processing and communications 1848 1669 410 405 418 436 418 -43Occupancy and related depreciation 679 649 164 165 159 162 191 177Business dev elopment expenses 368 369 89 93 91 96 78 -181Other 2489 3060 435 708 1273 645 388 -398Total 11688 11545 2584 2825 3368 2769 2572 -71
QoQFY201819
FY201819FY201718
2584 2825
3368
2769 2572
0
100
200
300
400
228 260
-813
47
463
RetailAsset ManagementWholesale
FY201920 1Q highlights
Executive summary
1 Net income (loss) attributable to Nomura Holdings shareholders 2 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period3 Diluted net income attributable to Nomura Holdings shareholders per share 4 We refer to our sales representative as ldquopartnerrdquo 5 Separately managed account a discretionary investment service 6 Severance and other expenses related to revision of business portfolio (Y84bn)
Income (loss) before income taxes and net income (loss)1
Firm-wide
Three segment income (loss) before income taxes
(bil l ions of yen)
2
FY201819 FY1920
1Q 2Q 3Q 4Q 1Q
Income before income taxes Y748bn Net income1 Y558bn ROE2 84 EPS3 Y1648
ndash All business divisions reported higher net revenue and income before income taxes QoQndash All three international regions returned to pretax profit (three region total Y304bn) as we reviewed
our business portfolio and focused on our areas of competitive strength
Three segment income before income taxes Y463bn
Retailndash Stronger sales of investment trusts and bonds driven by improved investor sentiment and efforts of
our Partners4 in branchesndash Assets under management in SMAs5 continued to grow as we introduced wrap trusts aimed at
meeting estate planning needs
Asset Managementndash Twelfth straight quarter of inflows offset a decline due to market factors to lift assets under
managementndash Gainloss related to American Century Investments contributed to higher net revenue and income
before income taxes QoQ
Wholesalendash Global markets improved QoQ as Fixed Income Americas booked significantly stronger revenues
and Japan improved and Americas Equities remained resilientndash Wholesale costs declined QoQ as one-off expenses6 booked last quarter were no longer present and
cost allocations from Corporate declinedFY201819 FY1920
1Q 2Q 3Q 4Q 1Q
136 05
-762
244
748
52
-112
-953
08
558
Income (loss) before income taxesNet income (loss)
Highlights
Overview of results
1 Net income attributable to Nomura Holdings shareholders 2 Diluted net income attributable to Nomura Holdings shareholders per share 3 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period 3
FY2019201Q
FY2018194Q QoQ FY201819
1Q YoY
Net revenue 3320 3013 +10 2720 +22
Non-interest expenses 2572 2769 -7 2584 -04
Income before income taxes 748 244 31x 136 55x
Net income1 558 08 662x 52 107x
EPS2 Y1648 Y023 717x Y150 110x
ROE3 84 01 08
(bill ions of yen except EPS and ROE)
Net revenue and income (loss) before income taxes
Business segment results
4
QoQFY201819 4QFY201920 1Q FY201819 1Q YoY
Net revenue Retail 806 742 +9 928 -13
Asset Management 345 309 +12 261 +32
Wholesale 1595 1422 +12 1373 +16
Subtotal 2746 2473 +11 2562 +7
Other 603 521 +16 137 44x
Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Net revenue 3320 3013 +10 2720 +22
Income (loss) before income taxes
Retail 81 33 +146 199 -59
Asset Management 181 144 +26 103 +76
Wholesale 200 -130 - -74 -
Subtotal 463 47 98x 228 +103
Other 315 178 +76 -112 -Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Income before income taxes 748 244 31x 136 55x
Net gain related to economic hedging transactions (Y128bn) Gain on changes to ow n and counterparty credit spread relating to Derivatives (Y21bn)Additional information on ldquoOtherrdquo (1Q)
(bil l ions of yen)
Retail
1 We refer to our sales representatives as ldquopartnerrdquo 2 Includes Junior NISA 3 Cash and securities inflows minus outflows excluding regional financial institutions 4 Retail channels only 5 Retail channels Net amp Call and Hotto Direct
Net revenue Y806bn (+9 QoQ -13 YoY) Income before income taxes Y81bn (QoQ +146 YoY -59) Net revenue and income before income taxes both up QoQ
minus Sales of investment trusts and bonds grew on improved investor sentiment and continued efforts by our Partners1
minus Expenses increased due to higher bonus provisions in line with pay for performance and one-off expenses related to branch office integration but IT-related expenses declined
Client franchiseminus Retail client assetsminus Accounts with balanceminus NISA accounts opened (accumulated)2
minus Net inflows of cash and securities3
5
Net revenue and income before income taxes
Total sales4
Key points(bil l ions of yen)
(bil l ions of yen) Total sales4 up 21 QoQ
Stocks +2 QoQndash Stronger secondary sales of Japanese and international stocksndash Decline in subscriptions for primary stocks5 (Y525bn -31 QoQ)
Investment trusts +43 QoQndash Inflows into primary funds investing in global stocks
Bonds Y6744bn +42 QoQndash Domestic bonds saw solid sales of primary bonds and JGBs for individual
investors while foreign bond sales increased driven by US dollar denominated bonds
Sales of discretionary investment and insurance increased 30 QoQFY201819 FY201920
1Q 2Q 3Q 4Q 1Q
Jun 1QY1131trn
533m171m
-Y1206bn
Mar 4QY1147trn
534m170m
-Y3928bn
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Net revenue 928 857 868 742 806 +9 -13
Non-interest expenses 729 735 727 709 725 +2 -1
Income before income taxes 199 122 140 33 81 +146 -59
0
1000
2000
3000
4000Stocks Bonds Investment trusts Discretionary investments Insurance products
5357 6087 6385 6889 73973951 5017
5913 6232 7061
0
2000
4000
6000
8000
00
2000
4000
6000
8000SMA AuM number of SMA contracts
Annualized recurring revenue of Y904bnndash Investment trusts Subscriptions grew but cancellations and outflows
continuedndash Discretionary investments Fund Wrap saw net declines but SMA3 AuM
trended up as we introduced wrap trusts to meet estate planning needs
Recurring revenuendash Investment trust net inflows1
ndash Discretionary investment net inflows1
Sales of insurance products2
Inflows of cash and securities2
Retail Continued to provide services matched to client needs
1 Retail channels and Japan Wealth Management Group 2 Retail channels only 3 Separately managed account a discretionary investment service 6
Recurring revenue
Investment trust and discretionary investment AuM SMA3 AuM and number of contracts
(bil l ions of yen)
Mar 4QY217bn
-Y582bn-Y108bn
Y462bnY9441bn
(tri l l ions of yen) (bil l ions of yen)
Jun 1QY225bn
-Y297bn-Y405bn
Y547bnY10549bn
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(number of contracts)
FY201819 FY201920Jun Sep Dec Mar Jun
904 909 899 880 904
31 31 31 31 31
0
10
20
30
200
400
600
800
1000
Recurring revenue (annualized adjusted basis)Recurring revenue cost coverage ratio (rhs)
103 104 93 101 101
27 2827 28 28
130 132121 129 129
00
50
100
150
Stock investment trusts + Foreign investment trusts Discretionary investment
Asset Management
Net revenue and income before income taxes1 Key points
Assets under management (net)2
7
(tri l l ions of yen)
1 This table presents a reconciliation of net revenues (other than ACI-related gainloss) and ACI-related gainloss which are non-GAAP measures prepared on a management accounting basis to net revenue for the Asset Management segment ACI-related gainloss includes fair value adjustments of our investment in funding cost equivalent for our investment in and dividends from ACI
2 Net after deducting duplications from assets under management (gross) of Nomura Asset Management Nomura Corporate Research and Asset Management and Wealth Square
Net revenue Y345bn (+12 QoQ +32 YoY) Income before income taxes Y181bn (+26 QoQ +76 YoY) Net revenue and income before income taxes both up QoQ and YoY
minus Asset management fees remained solid Twelfth straight quarter of inflows and AuM at second highest level ever
minus Contribution from gainloss related to American Century Investments (ACI)
Investment trust business Ongoing inflows into ETFs lifted AuM to a record high (end June Y172trn
Market share 45) Inflows continued into Nomura ACI Advanced Medical Impact Investment and
defined contribution pension funds Outflows from Nomura India Investment Fund and some other foreign stock
funds
Investment advisory business and international business In Japan inflows from public pension fund into alternative investment fund
and outflows from private pension fund by shift to defined contribution pension plans
Internationally we won a new mandate in EMEA but reported outflows in AEJ and the Middle East due to redemptions by some public institutions
347 360 333 355 360
162 168 151 158 156
508 528483 514 516
Investment trust business Investment advisory business
FY201819 FY201920Jun Sep Dec Mar Jun
FY1920
1Q 2Q 3Q 4Q 1Q
263 261 245 260 258 -1 -2
-02 -15 -83 49 87 +77 -
261 247 162 309 345 +12 +32
158 158 156 165 164 -1 +3
103 89 06 144 181 +26 +76
FY201819QoQ YoY
Revenue (excl ACI-related)
ACI-related gainloss
Net revenue
Non-interest expenses
Income before income taxes
(bil l ions of yen)
6157 63677341
86079699 9942
Mar15 Mar16 Mar17 Mar18 Mar19 Jun19
147 510
1391
483 642
-1000
-500
0
500
1000
1500
2000
273 273
277 276278
260
270
280
Asset Management Steady growth in defined contribution pension funds
Flow of funds1
Flow of funds in investment trust business1
(bil l ions of yen)
(bil l ions of yen)
1 Based on assets under management (net) 2 Source The Investment Trusts Association Japan
MRFs etcOther investment trusts (excl ETFs)
ETFsInvestment trust business (excl ETFs)
116
-230-250
263 280
1141
503 672 109 156
-354
109
-164
372 436
787
612 508
-500
0
500
1000
1500
Investment trust business Investment advisory business
20
Nomura Asset Management public investment trust market share2
Defined contribution pension funds
8
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY201920Jun Sep Dec Mar Jun
31
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(bill ions of yen)
Steady market growth driven by shift from defined benefit pension plans to defined contribution pension plans
Product proposals that take into account client risk appetite and support asset formation over the long term contributed to AuM growth
AuM increased by Y3785bn (+61) in just over four years
Net revenue Y1595bn (+12 QoQ +16 YoY) Income before income taxes Y20bn
Rebound in Global Markets revenues drove wholesale revenues higher QoQ and YoYminusFixed Income Americas booked significantly stronger revenues and Japan improved and Americas Equities remained resilient
minus Investment Banking revenues declined from last quarter when contributions from several completed high-profile MampA deals were booked
Wholesale expenses declined as one-off expenses2 booked last quarter were no longer present and expense allocations from Corporate declined
Net revenue by region (QoQ YoY)Americas Y593bn (+40 +19)
minus Strongest quarterly revenues in past five quarters Fixed Income revenues strong driven by Rates Equities saw rebound in Derivatives revenues
Japan Y468bn (+8 +13)minus Higher revenues QoQ as Credit drove stronger revenues in Fixed Income
EMEA Y294bn (-7 +1)minus Fixed Income reported slight decline from strong previous quarter but
performance remained solid particularly in Rates
AEJ Y24bn (-4 +44)minus Fixed Income reported decline from strong previous quarter but FX amp EM
and Credit remained solid
Wholesale
Key pointsNet revenue and income (loss) before income taxes1
Net revenue by region
(bil l ions of yen)
(bil l ions of yen)
91 This table shows net revenue for Wholesale using adjusted figures for Global Markets and Investment Banking based on management accounting not applicable to US GAAP2 Severance and other expenses related to revision of business portfolio (Y84bn)
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Global Markets 1122 1238 1035 1136 1357 +20 +21
Investment Banking 251 239 247 286 237 -17 -5
Net revenue 1373 1477 1282 1422 1595 +12 +16
Non-interest expenses 1447 1427 2241 1553 1395 -10 -4
Income (loss) before income taxes -74 49 -959 -130 200 - -
FY201819 FY19201Q 2Q 3Q 4Q 1Q
415 599 490 433 468
167203
106 250 240292
245273
316 294
499429
413423 593
00
500
1000
1500
2000
Americas
EMEA
AEJ
Japan
YoY QoQ
Global Markets
Global MarketsFixed
Income Equities
Net revenue Y1357bn (+20 QoQ +21 YoY)minus Fixed Income Americas booked significantly stronger revenues and Japan
improved minus Equities revenues also increased driven by improved performance in
Americas Derivatives
Fixed Income Net revenue Y825bn (+21 QoQ +43 YoY)
minus Rates had a good quarter as we captured opportunities amid declining interest rate environment to grow our agency mortgage business
minus Revenues from Credit and other spread products improved
Equities Net revenue Y533bn (+17 QoQ -2 YoY)
minus Derivatives had a strong quarter on an uptick in client activity
Wholesale Global Markets
(bil l ions of yen)EquitiesFixed Income
Net revenue
QoQ+20
YoY +21
Key points
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201920 1Q net revenue by region
10
Americas Fixed Income revenues were at their highest in 10 quarters Derivatives had a good quarter
EMEA Revenues declined slightly QoQ but Rates business had a solid quarter as monetary policy drove an uptick in client activity and market volatility
AEJ Revenues declined from strong previous quarter but FX amp EM and Credit remained robust and Derivatives revenues improved
Japan Cash Equities revenues declined due to slower client flows Fixed Income saw an increase in demand for Credit Products
Japan
AEJ
EMEA
Americas
577 696375
680 825
545542
659
456533
11221238
10351136
1357
0 ~ 5 5 ~ 15 15 ~+ndash +ndash +ndash +ndash
251 239 247286
237
Net revenue Y237bn (-17 QoQ -5 YoY)minus Japan and international revenues both down from last quarter which
included several completed high-profile MampA deals minus Lower fee pools YoY led to decline in revenues but MampA and ALF
revenues increased Contributions from AEJ cross-border MampA deals and multi-product
transactionsJapanminus Traditional financing business roughly unchanged QoQminus MampA revenues remained solid but declined from strong prior quarter Internationalminus Revenue contributions mainly in Americas from ALF transactions involving
financial sponsors
Wholesale Investment Banking
Net revenue1
Key points
QoQ-17YoY-5
11
Won multiple cross-border MampA high-profile mandates
11
(bill ions of yen)
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
Cross-border deals
Financing
MampA
SansanIPO
(Y389bn)
SoftBank s acquisition of stake inYahoo Japan and Yahoo Japans
share buyback(Y4565bn Y5265bn)
Tokai Carbonrsquos acquisition of COBEX (Germany)
(euro822m)
Financing on Apax Partners rsquo (US) acquisition of Trade Me (New
Zealand)($864m)
Financing on Hellman amp Friedmanrsquos (US) acquisition of Ultimate Softw are Group(US)
($35bn)
Softbank GroupRetail Bond(Y500bn)
Nippon Paint Holdgins rsquo acquisition of DuluxGroup
(Australia)($29bn)
Misawa Homes becoming a wholly owned subsidiary of Toyota Home through share exchange Integrate and establish joint
venture related to town development business between Toyota Motor and Panasonic
(Y221bn Undisclosed)
Chew y(US)IPO
($10bn)
Takeda Pharmaceuticalrsquos sale of TachoSil to Johnson amp Johnson
(US)($400m)
Hillhouse Capital Managementrsquos (China) acquisition of Loch Lomond
Distillery (UK)(Undisclosed)
Republic of ItalyBenchmark Bond
(euro60bn)
11688 11545
0
500
1000
1500
Other
Business developmentexpenses
Occupancy and relateddepreciation
Information processingand communications
Commissions and floorbrokeragesup1
Compensation andbenefits
Non-interest expenses
Key points
121 On April 1 2018 Nomura adopted Accounting Standards Update 2014-09 ldquoRevenue from Contracts with Customersrdquo and revenues and expenses related to certain Execution Services transactions are now shown as net value rather than gross value
Full year Quarter(bil l ions of yen) (bil l ions of yen)
Non-interest expenses Y2572bn(-7 QoQ)
ndash Compensation and benefits (+04 QoQ) Higher bonus provisions due to pay for
performance One-off expenses related to revision of
business portfolio booked last quarter (Y103bn) no longer present
ndash Occupancy and related depreciation (+18 QoQ) One-off expenses (Y26bn) related to
branch office integration in Japan
ndash Other (-40 QoQ) Lower legal expenses related to legacy
transactions Decline in compensation paid to law
firms and other professionals
FY201920
1Q 2Q 3Q 4Q 1Q
Compensation and benefits 5306 4971 1277 1258 1189 1246 1251 04Commissions and f loor brokeragesup1 999 826 209 196 238 183 246 341Information processing and communications 1848 1669 410 405 418 436 418 -43Occupancy and related depreciation 679 649 164 165 159 162 191 177Business dev elopment expenses 368 369 89 93 91 96 78 -181Other 2489 3060 435 708 1273 645 388 -398Total 11688 11545 2584 2825 3368 2769 2572 -71
QoQFY201819
FY201819FY201718
2584 2825
3368
2769 2572
0
100
200
300
400
Highlights
Overview of results
1 Net income attributable to Nomura Holdings shareholders 2 Diluted net income attributable to Nomura Holdings shareholders per share 3 Calculated using annualized net income attributable to Nomura Holdings shareholders for each period 3
FY2019201Q
FY2018194Q QoQ FY201819
1Q YoY
Net revenue 3320 3013 +10 2720 +22
Non-interest expenses 2572 2769 -7 2584 -04
Income before income taxes 748 244 31x 136 55x
Net income1 558 08 662x 52 107x
EPS2 Y1648 Y023 717x Y150 110x
ROE3 84 01 08
(bill ions of yen except EPS and ROE)
Net revenue and income (loss) before income taxes
Business segment results
4
QoQFY201819 4QFY201920 1Q FY201819 1Q YoY
Net revenue Retail 806 742 +9 928 -13
Asset Management 345 309 +12 261 +32
Wholesale 1595 1422 +12 1373 +16
Subtotal 2746 2473 +11 2562 +7
Other 603 521 +16 137 44x
Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Net revenue 3320 3013 +10 2720 +22
Income (loss) before income taxes
Retail 81 33 +146 199 -59
Asset Management 181 144 +26 103 +76
Wholesale 200 -130 - -74 -
Subtotal 463 47 98x 228 +103
Other 315 178 +76 -112 -Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Income before income taxes 748 244 31x 136 55x
Net gain related to economic hedging transactions (Y128bn) Gain on changes to ow n and counterparty credit spread relating to Derivatives (Y21bn)Additional information on ldquoOtherrdquo (1Q)
(bil l ions of yen)
Retail
1 We refer to our sales representatives as ldquopartnerrdquo 2 Includes Junior NISA 3 Cash and securities inflows minus outflows excluding regional financial institutions 4 Retail channels only 5 Retail channels Net amp Call and Hotto Direct
Net revenue Y806bn (+9 QoQ -13 YoY) Income before income taxes Y81bn (QoQ +146 YoY -59) Net revenue and income before income taxes both up QoQ
minus Sales of investment trusts and bonds grew on improved investor sentiment and continued efforts by our Partners1
minus Expenses increased due to higher bonus provisions in line with pay for performance and one-off expenses related to branch office integration but IT-related expenses declined
Client franchiseminus Retail client assetsminus Accounts with balanceminus NISA accounts opened (accumulated)2
minus Net inflows of cash and securities3
5
Net revenue and income before income taxes
Total sales4
Key points(bil l ions of yen)
(bil l ions of yen) Total sales4 up 21 QoQ
Stocks +2 QoQndash Stronger secondary sales of Japanese and international stocksndash Decline in subscriptions for primary stocks5 (Y525bn -31 QoQ)
Investment trusts +43 QoQndash Inflows into primary funds investing in global stocks
Bonds Y6744bn +42 QoQndash Domestic bonds saw solid sales of primary bonds and JGBs for individual
investors while foreign bond sales increased driven by US dollar denominated bonds
Sales of discretionary investment and insurance increased 30 QoQFY201819 FY201920
1Q 2Q 3Q 4Q 1Q
Jun 1QY1131trn
533m171m
-Y1206bn
Mar 4QY1147trn
534m170m
-Y3928bn
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Net revenue 928 857 868 742 806 +9 -13
Non-interest expenses 729 735 727 709 725 +2 -1
Income before income taxes 199 122 140 33 81 +146 -59
0
1000
2000
3000
4000Stocks Bonds Investment trusts Discretionary investments Insurance products
5357 6087 6385 6889 73973951 5017
5913 6232 7061
0
2000
4000
6000
8000
00
2000
4000
6000
8000SMA AuM number of SMA contracts
Annualized recurring revenue of Y904bnndash Investment trusts Subscriptions grew but cancellations and outflows
continuedndash Discretionary investments Fund Wrap saw net declines but SMA3 AuM
trended up as we introduced wrap trusts to meet estate planning needs
Recurring revenuendash Investment trust net inflows1
ndash Discretionary investment net inflows1
Sales of insurance products2
Inflows of cash and securities2
Retail Continued to provide services matched to client needs
1 Retail channels and Japan Wealth Management Group 2 Retail channels only 3 Separately managed account a discretionary investment service 6
Recurring revenue
Investment trust and discretionary investment AuM SMA3 AuM and number of contracts
(bil l ions of yen)
Mar 4QY217bn
-Y582bn-Y108bn
Y462bnY9441bn
(tri l l ions of yen) (bil l ions of yen)
Jun 1QY225bn
-Y297bn-Y405bn
Y547bnY10549bn
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(number of contracts)
FY201819 FY201920Jun Sep Dec Mar Jun
904 909 899 880 904
31 31 31 31 31
0
10
20
30
200
400
600
800
1000
Recurring revenue (annualized adjusted basis)Recurring revenue cost coverage ratio (rhs)
103 104 93 101 101
27 2827 28 28
130 132121 129 129
00
50
100
150
Stock investment trusts + Foreign investment trusts Discretionary investment
Asset Management
Net revenue and income before income taxes1 Key points
Assets under management (net)2
7
(tri l l ions of yen)
1 This table presents a reconciliation of net revenues (other than ACI-related gainloss) and ACI-related gainloss which are non-GAAP measures prepared on a management accounting basis to net revenue for the Asset Management segment ACI-related gainloss includes fair value adjustments of our investment in funding cost equivalent for our investment in and dividends from ACI
2 Net after deducting duplications from assets under management (gross) of Nomura Asset Management Nomura Corporate Research and Asset Management and Wealth Square
Net revenue Y345bn (+12 QoQ +32 YoY) Income before income taxes Y181bn (+26 QoQ +76 YoY) Net revenue and income before income taxes both up QoQ and YoY
minus Asset management fees remained solid Twelfth straight quarter of inflows and AuM at second highest level ever
minus Contribution from gainloss related to American Century Investments (ACI)
Investment trust business Ongoing inflows into ETFs lifted AuM to a record high (end June Y172trn
Market share 45) Inflows continued into Nomura ACI Advanced Medical Impact Investment and
defined contribution pension funds Outflows from Nomura India Investment Fund and some other foreign stock
funds
Investment advisory business and international business In Japan inflows from public pension fund into alternative investment fund
and outflows from private pension fund by shift to defined contribution pension plans
Internationally we won a new mandate in EMEA but reported outflows in AEJ and the Middle East due to redemptions by some public institutions
347 360 333 355 360
162 168 151 158 156
508 528483 514 516
Investment trust business Investment advisory business
FY201819 FY201920Jun Sep Dec Mar Jun
FY1920
1Q 2Q 3Q 4Q 1Q
263 261 245 260 258 -1 -2
-02 -15 -83 49 87 +77 -
261 247 162 309 345 +12 +32
158 158 156 165 164 -1 +3
103 89 06 144 181 +26 +76
FY201819QoQ YoY
Revenue (excl ACI-related)
ACI-related gainloss
Net revenue
Non-interest expenses
Income before income taxes
(bil l ions of yen)
6157 63677341
86079699 9942
Mar15 Mar16 Mar17 Mar18 Mar19 Jun19
147 510
1391
483 642
-1000
-500
0
500
1000
1500
2000
273 273
277 276278
260
270
280
Asset Management Steady growth in defined contribution pension funds
Flow of funds1
Flow of funds in investment trust business1
(bil l ions of yen)
(bil l ions of yen)
1 Based on assets under management (net) 2 Source The Investment Trusts Association Japan
MRFs etcOther investment trusts (excl ETFs)
ETFsInvestment trust business (excl ETFs)
116
-230-250
263 280
1141
503 672 109 156
-354
109
-164
372 436
787
612 508
-500
0
500
1000
1500
Investment trust business Investment advisory business
20
Nomura Asset Management public investment trust market share2
Defined contribution pension funds
8
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY201920Jun Sep Dec Mar Jun
31
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(bill ions of yen)
Steady market growth driven by shift from defined benefit pension plans to defined contribution pension plans
Product proposals that take into account client risk appetite and support asset formation over the long term contributed to AuM growth
AuM increased by Y3785bn (+61) in just over four years
Net revenue Y1595bn (+12 QoQ +16 YoY) Income before income taxes Y20bn
Rebound in Global Markets revenues drove wholesale revenues higher QoQ and YoYminusFixed Income Americas booked significantly stronger revenues and Japan improved and Americas Equities remained resilient
minus Investment Banking revenues declined from last quarter when contributions from several completed high-profile MampA deals were booked
Wholesale expenses declined as one-off expenses2 booked last quarter were no longer present and expense allocations from Corporate declined
Net revenue by region (QoQ YoY)Americas Y593bn (+40 +19)
minus Strongest quarterly revenues in past five quarters Fixed Income revenues strong driven by Rates Equities saw rebound in Derivatives revenues
Japan Y468bn (+8 +13)minus Higher revenues QoQ as Credit drove stronger revenues in Fixed Income
EMEA Y294bn (-7 +1)minus Fixed Income reported slight decline from strong previous quarter but
performance remained solid particularly in Rates
AEJ Y24bn (-4 +44)minus Fixed Income reported decline from strong previous quarter but FX amp EM
and Credit remained solid
Wholesale
Key pointsNet revenue and income (loss) before income taxes1
Net revenue by region
(bil l ions of yen)
(bil l ions of yen)
91 This table shows net revenue for Wholesale using adjusted figures for Global Markets and Investment Banking based on management accounting not applicable to US GAAP2 Severance and other expenses related to revision of business portfolio (Y84bn)
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Global Markets 1122 1238 1035 1136 1357 +20 +21
Investment Banking 251 239 247 286 237 -17 -5
Net revenue 1373 1477 1282 1422 1595 +12 +16
Non-interest expenses 1447 1427 2241 1553 1395 -10 -4
Income (loss) before income taxes -74 49 -959 -130 200 - -
FY201819 FY19201Q 2Q 3Q 4Q 1Q
415 599 490 433 468
167203
106 250 240292
245273
316 294
499429
413423 593
00
500
1000
1500
2000
Americas
EMEA
AEJ
Japan
YoY QoQ
Global Markets
Global MarketsFixed
Income Equities
Net revenue Y1357bn (+20 QoQ +21 YoY)minus Fixed Income Americas booked significantly stronger revenues and Japan
improved minus Equities revenues also increased driven by improved performance in
Americas Derivatives
Fixed Income Net revenue Y825bn (+21 QoQ +43 YoY)
minus Rates had a good quarter as we captured opportunities amid declining interest rate environment to grow our agency mortgage business
minus Revenues from Credit and other spread products improved
Equities Net revenue Y533bn (+17 QoQ -2 YoY)
minus Derivatives had a strong quarter on an uptick in client activity
Wholesale Global Markets
(bil l ions of yen)EquitiesFixed Income
Net revenue
QoQ+20
YoY +21
Key points
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201920 1Q net revenue by region
10
Americas Fixed Income revenues were at their highest in 10 quarters Derivatives had a good quarter
EMEA Revenues declined slightly QoQ but Rates business had a solid quarter as monetary policy drove an uptick in client activity and market volatility
AEJ Revenues declined from strong previous quarter but FX amp EM and Credit remained robust and Derivatives revenues improved
Japan Cash Equities revenues declined due to slower client flows Fixed Income saw an increase in demand for Credit Products
Japan
AEJ
EMEA
Americas
577 696375
680 825
545542
659
456533
11221238
10351136
1357
0 ~ 5 5 ~ 15 15 ~+ndash +ndash +ndash +ndash
251 239 247286
237
Net revenue Y237bn (-17 QoQ -5 YoY)minus Japan and international revenues both down from last quarter which
included several completed high-profile MampA deals minus Lower fee pools YoY led to decline in revenues but MampA and ALF
revenues increased Contributions from AEJ cross-border MampA deals and multi-product
transactionsJapanminus Traditional financing business roughly unchanged QoQminus MampA revenues remained solid but declined from strong prior quarter Internationalminus Revenue contributions mainly in Americas from ALF transactions involving
financial sponsors
Wholesale Investment Banking
Net revenue1
Key points
QoQ-17YoY-5
11
Won multiple cross-border MampA high-profile mandates
11
(bill ions of yen)
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
Cross-border deals
Financing
MampA
SansanIPO
(Y389bn)
SoftBank s acquisition of stake inYahoo Japan and Yahoo Japans
share buyback(Y4565bn Y5265bn)
Tokai Carbonrsquos acquisition of COBEX (Germany)
(euro822m)
Financing on Apax Partners rsquo (US) acquisition of Trade Me (New
Zealand)($864m)
Financing on Hellman amp Friedmanrsquos (US) acquisition of Ultimate Softw are Group(US)
($35bn)
Softbank GroupRetail Bond(Y500bn)
Nippon Paint Holdgins rsquo acquisition of DuluxGroup
(Australia)($29bn)
Misawa Homes becoming a wholly owned subsidiary of Toyota Home through share exchange Integrate and establish joint
venture related to town development business between Toyota Motor and Panasonic
(Y221bn Undisclosed)
Chew y(US)IPO
($10bn)
Takeda Pharmaceuticalrsquos sale of TachoSil to Johnson amp Johnson
(US)($400m)
Hillhouse Capital Managementrsquos (China) acquisition of Loch Lomond
Distillery (UK)(Undisclosed)
Republic of ItalyBenchmark Bond
(euro60bn)
11688 11545
0
500
1000
1500
Other
Business developmentexpenses
Occupancy and relateddepreciation
Information processingand communications
Commissions and floorbrokeragesup1
Compensation andbenefits
Non-interest expenses
Key points
121 On April 1 2018 Nomura adopted Accounting Standards Update 2014-09 ldquoRevenue from Contracts with Customersrdquo and revenues and expenses related to certain Execution Services transactions are now shown as net value rather than gross value
Full year Quarter(bil l ions of yen) (bil l ions of yen)
Non-interest expenses Y2572bn(-7 QoQ)
ndash Compensation and benefits (+04 QoQ) Higher bonus provisions due to pay for
performance One-off expenses related to revision of
business portfolio booked last quarter (Y103bn) no longer present
ndash Occupancy and related depreciation (+18 QoQ) One-off expenses (Y26bn) related to
branch office integration in Japan
ndash Other (-40 QoQ) Lower legal expenses related to legacy
transactions Decline in compensation paid to law
firms and other professionals
FY201920
1Q 2Q 3Q 4Q 1Q
Compensation and benefits 5306 4971 1277 1258 1189 1246 1251 04Commissions and f loor brokeragesup1 999 826 209 196 238 183 246 341Information processing and communications 1848 1669 410 405 418 436 418 -43Occupancy and related depreciation 679 649 164 165 159 162 191 177Business dev elopment expenses 368 369 89 93 91 96 78 -181Other 2489 3060 435 708 1273 645 388 -398Total 11688 11545 2584 2825 3368 2769 2572 -71
QoQFY201819
FY201819FY201718
2584 2825
3368
2769 2572
0
100
200
300
400
Net revenue and income (loss) before income taxes
Business segment results
4
QoQFY201819 4QFY201920 1Q FY201819 1Q YoY
Net revenue Retail 806 742 +9 928 -13
Asset Management 345 309 +12 261 +32
Wholesale 1595 1422 +12 1373 +16
Subtotal 2746 2473 +11 2562 +7
Other 603 521 +16 137 44x
Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Net revenue 3320 3013 +10 2720 +22
Income (loss) before income taxes
Retail 81 33 +146 199 -59
Asset Management 181 144 +26 103 +76
Wholesale 200 -130 - -74 -
Subtotal 463 47 98x 228 +103
Other 315 178 +76 -112 -Unrealized gain (loss) on investments in equity securities held for operating purposes -29 18 - 20 -
Income before income taxes 748 244 31x 136 55x
Net gain related to economic hedging transactions (Y128bn) Gain on changes to ow n and counterparty credit spread relating to Derivatives (Y21bn)Additional information on ldquoOtherrdquo (1Q)
(bil l ions of yen)
Retail
1 We refer to our sales representatives as ldquopartnerrdquo 2 Includes Junior NISA 3 Cash and securities inflows minus outflows excluding regional financial institutions 4 Retail channels only 5 Retail channels Net amp Call and Hotto Direct
Net revenue Y806bn (+9 QoQ -13 YoY) Income before income taxes Y81bn (QoQ +146 YoY -59) Net revenue and income before income taxes both up QoQ
minus Sales of investment trusts and bonds grew on improved investor sentiment and continued efforts by our Partners1
minus Expenses increased due to higher bonus provisions in line with pay for performance and one-off expenses related to branch office integration but IT-related expenses declined
Client franchiseminus Retail client assetsminus Accounts with balanceminus NISA accounts opened (accumulated)2
minus Net inflows of cash and securities3
5
Net revenue and income before income taxes
Total sales4
Key points(bil l ions of yen)
(bil l ions of yen) Total sales4 up 21 QoQ
Stocks +2 QoQndash Stronger secondary sales of Japanese and international stocksndash Decline in subscriptions for primary stocks5 (Y525bn -31 QoQ)
Investment trusts +43 QoQndash Inflows into primary funds investing in global stocks
Bonds Y6744bn +42 QoQndash Domestic bonds saw solid sales of primary bonds and JGBs for individual
investors while foreign bond sales increased driven by US dollar denominated bonds
Sales of discretionary investment and insurance increased 30 QoQFY201819 FY201920
1Q 2Q 3Q 4Q 1Q
Jun 1QY1131trn
533m171m
-Y1206bn
Mar 4QY1147trn
534m170m
-Y3928bn
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Net revenue 928 857 868 742 806 +9 -13
Non-interest expenses 729 735 727 709 725 +2 -1
Income before income taxes 199 122 140 33 81 +146 -59
0
1000
2000
3000
4000Stocks Bonds Investment trusts Discretionary investments Insurance products
5357 6087 6385 6889 73973951 5017
5913 6232 7061
0
2000
4000
6000
8000
00
2000
4000
6000
8000SMA AuM number of SMA contracts
Annualized recurring revenue of Y904bnndash Investment trusts Subscriptions grew but cancellations and outflows
continuedndash Discretionary investments Fund Wrap saw net declines but SMA3 AuM
trended up as we introduced wrap trusts to meet estate planning needs
Recurring revenuendash Investment trust net inflows1
ndash Discretionary investment net inflows1
Sales of insurance products2
Inflows of cash and securities2
Retail Continued to provide services matched to client needs
1 Retail channels and Japan Wealth Management Group 2 Retail channels only 3 Separately managed account a discretionary investment service 6
Recurring revenue
Investment trust and discretionary investment AuM SMA3 AuM and number of contracts
(bil l ions of yen)
Mar 4QY217bn
-Y582bn-Y108bn
Y462bnY9441bn
(tri l l ions of yen) (bil l ions of yen)
Jun 1QY225bn
-Y297bn-Y405bn
Y547bnY10549bn
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(number of contracts)
FY201819 FY201920Jun Sep Dec Mar Jun
904 909 899 880 904
31 31 31 31 31
0
10
20
30
200
400
600
800
1000
Recurring revenue (annualized adjusted basis)Recurring revenue cost coverage ratio (rhs)
103 104 93 101 101
27 2827 28 28
130 132121 129 129
00
50
100
150
Stock investment trusts + Foreign investment trusts Discretionary investment
Asset Management
Net revenue and income before income taxes1 Key points
Assets under management (net)2
7
(tri l l ions of yen)
1 This table presents a reconciliation of net revenues (other than ACI-related gainloss) and ACI-related gainloss which are non-GAAP measures prepared on a management accounting basis to net revenue for the Asset Management segment ACI-related gainloss includes fair value adjustments of our investment in funding cost equivalent for our investment in and dividends from ACI
2 Net after deducting duplications from assets under management (gross) of Nomura Asset Management Nomura Corporate Research and Asset Management and Wealth Square
Net revenue Y345bn (+12 QoQ +32 YoY) Income before income taxes Y181bn (+26 QoQ +76 YoY) Net revenue and income before income taxes both up QoQ and YoY
minus Asset management fees remained solid Twelfth straight quarter of inflows and AuM at second highest level ever
minus Contribution from gainloss related to American Century Investments (ACI)
Investment trust business Ongoing inflows into ETFs lifted AuM to a record high (end June Y172trn
Market share 45) Inflows continued into Nomura ACI Advanced Medical Impact Investment and
defined contribution pension funds Outflows from Nomura India Investment Fund and some other foreign stock
funds
Investment advisory business and international business In Japan inflows from public pension fund into alternative investment fund
and outflows from private pension fund by shift to defined contribution pension plans
Internationally we won a new mandate in EMEA but reported outflows in AEJ and the Middle East due to redemptions by some public institutions
347 360 333 355 360
162 168 151 158 156
508 528483 514 516
Investment trust business Investment advisory business
FY201819 FY201920Jun Sep Dec Mar Jun
FY1920
1Q 2Q 3Q 4Q 1Q
263 261 245 260 258 -1 -2
-02 -15 -83 49 87 +77 -
261 247 162 309 345 +12 +32
158 158 156 165 164 -1 +3
103 89 06 144 181 +26 +76
FY201819QoQ YoY
Revenue (excl ACI-related)
ACI-related gainloss
Net revenue
Non-interest expenses
Income before income taxes
(bil l ions of yen)
6157 63677341
86079699 9942
Mar15 Mar16 Mar17 Mar18 Mar19 Jun19
147 510
1391
483 642
-1000
-500
0
500
1000
1500
2000
273 273
277 276278
260
270
280
Asset Management Steady growth in defined contribution pension funds
Flow of funds1
Flow of funds in investment trust business1
(bil l ions of yen)
(bil l ions of yen)
1 Based on assets under management (net) 2 Source The Investment Trusts Association Japan
MRFs etcOther investment trusts (excl ETFs)
ETFsInvestment trust business (excl ETFs)
116
-230-250
263 280
1141
503 672 109 156
-354
109
-164
372 436
787
612 508
-500
0
500
1000
1500
Investment trust business Investment advisory business
20
Nomura Asset Management public investment trust market share2
Defined contribution pension funds
8
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201819 FY201920Jun Sep Dec Mar Jun
31
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
(bill ions of yen)
Steady market growth driven by shift from defined benefit pension plans to defined contribution pension plans
Product proposals that take into account client risk appetite and support asset formation over the long term contributed to AuM growth
AuM increased by Y3785bn (+61) in just over four years
Net revenue Y1595bn (+12 QoQ +16 YoY) Income before income taxes Y20bn
Rebound in Global Markets revenues drove wholesale revenues higher QoQ and YoYminusFixed Income Americas booked significantly stronger revenues and Japan improved and Americas Equities remained resilient
minus Investment Banking revenues declined from last quarter when contributions from several completed high-profile MampA deals were booked
Wholesale expenses declined as one-off expenses2 booked last quarter were no longer present and expense allocations from Corporate declined
Net revenue by region (QoQ YoY)Americas Y593bn (+40 +19)
minus Strongest quarterly revenues in past five quarters Fixed Income revenues strong driven by Rates Equities saw rebound in Derivatives revenues
Japan Y468bn (+8 +13)minus Higher revenues QoQ as Credit drove stronger revenues in Fixed Income
EMEA Y294bn (-7 +1)minus Fixed Income reported slight decline from strong previous quarter but
performance remained solid particularly in Rates
AEJ Y24bn (-4 +44)minus Fixed Income reported decline from strong previous quarter but FX amp EM
and Credit remained solid
Wholesale
Key pointsNet revenue and income (loss) before income taxes1
Net revenue by region
(bil l ions of yen)
(bil l ions of yen)
91 This table shows net revenue for Wholesale using adjusted figures for Global Markets and Investment Banking based on management accounting not applicable to US GAAP2 Severance and other expenses related to revision of business portfolio (Y84bn)
FY201819 FY1920QoQ YoY
1Q 2Q 3Q 4Q 1Q
Global Markets 1122 1238 1035 1136 1357 +20 +21
Investment Banking 251 239 247 286 237 -17 -5
Net revenue 1373 1477 1282 1422 1595 +12 +16
Non-interest expenses 1447 1427 2241 1553 1395 -10 -4
Income (loss) before income taxes -74 49 -959 -130 200 - -
FY201819 FY19201Q 2Q 3Q 4Q 1Q
415 599 490 433 468
167203
106 250 240292
245273
316 294
499429
413423 593
00
500
1000
1500
2000
Americas
EMEA
AEJ
Japan
YoY QoQ
Global Markets
Global MarketsFixed
Income Equities
Net revenue Y1357bn (+20 QoQ +21 YoY)minus Fixed Income Americas booked significantly stronger revenues and Japan
improved minus Equities revenues also increased driven by improved performance in
Americas Derivatives
Fixed Income Net revenue Y825bn (+21 QoQ +43 YoY)
minus Rates had a good quarter as we captured opportunities amid declining interest rate environment to grow our agency mortgage business
minus Revenues from Credit and other spread products improved
Equities Net revenue Y533bn (+17 QoQ -2 YoY)
minus Derivatives had a strong quarter on an uptick in client activity
Wholesale Global Markets
(bil l ions of yen)EquitiesFixed Income
Net revenue
QoQ+20
YoY +21
Key points
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
FY201920 1Q net revenue by region
10
Americas Fixed Income revenues were at their highest in 10 quarters Derivatives had a good quarter
EMEA Revenues declined slightly QoQ but Rates business had a solid quarter as monetary policy drove an uptick in client activity and market volatility
AEJ Revenues declined from strong previous quarter but FX amp EM and Credit remained robust and Derivatives revenues improved
Japan Cash Equities revenues declined due to slower client flows Fixed Income saw an increase in demand for Credit Products
Japan
AEJ
EMEA
Americas
577 696375
680 825
545542
659
456533
11221238
10351136
1357
0 ~ 5 5 ~ 15 15 ~+ndash +ndash +ndash +ndash
251 239 247286
237
Net revenue Y237bn (-17 QoQ -5 YoY)minus Japan and international revenues both down from last quarter which
included several completed high-profile MampA deals minus Lower fee pools YoY led to decline in revenues but MampA and ALF
revenues increased Contributions from AEJ cross-border MampA deals and multi-product
transactionsJapanminus Traditional financing business roughly unchanged QoQminus MampA revenues remained solid but declined from strong prior quarter Internationalminus Revenue contributions mainly in Americas from ALF transactions involving
financial sponsors
Wholesale Investment Banking
Net revenue1
Key points
QoQ-17YoY-5
11
Won multiple cross-border MampA high-profile mandates
11
(bill ions of yen)
FY201819 FY2019201Q 2Q 3Q 4Q 1Q
Cross-border deals
Financing
MampA
SansanIPO
(Y389bn)
SoftBank s acquisition of stake inYahoo Japan and Yahoo Japans
share buyback(Y4565bn Y5265bn)
Tokai Carbonrsquos acquisition of COBEX (Germany)
(euro822m)
Financing on Apax Partners rsquo (US) acquisition of Trade Me (New
Zealand)($864m)
Financing on Hellman amp Friedmanrsquos (US) acquisition of Ultimate Softw are Group(US)
($35bn)
Softbank GroupRetail Bond(Y500bn)
Nippon Paint Holdgins rsquo acquisition of DuluxGroup
(Australia)($29bn)
Misawa Homes becoming a wholly owned subsidiary of Toyota Home through share exchange Integrate and establish joint
venture related to town development business between Toyota Motor and Panasonic
(Y221bn Undisclosed)
Chew y(US)IPO
($10bn)
Takeda Pharmaceuticalrsquos sale of TachoSil to Johnson amp Johnson
(US)($400m)
Hillhouse Capital Managementrsquos (China) acquisition of Loch Lomond
Distillery (UK)(Undisclosed)
Republic of ItalyBenchmark Bond
(euro60bn)
11688 11545
0
500
1000
1500
Other
Business developmentexpenses
Occupancy and relateddepreciation
Information processingand communications
Commissions and floorbrokeragesup1
Compensation andbenefits
Non-interest expenses
Key points
121 On April 1 2018 Nomura adopted Accounting Standards Update 2014-09 ldquoRevenue from Contracts with Customersrdquo and revenues and expenses related to certain Execution Services transactions are now shown as net value rather than gross value
Full year Quarter(bil l ions of yen) (bil l ions of yen)
Non-interest expenses Y2572bn(-7 QoQ)
ndash Compensation and benefits (+04 QoQ) Higher bonus provisions due to pay for
performance One-off expenses related to revision of
business portfolio booked last quarter (Y103bn) no longer present
ndash Occupancy and related depreciation (+18 QoQ) One-off expenses (Y26bn) related to
branch office integration in Japan
ndash Other (-40 QoQ) Lower legal expenses related to legacy
transactions Decline in compensation paid to law
firms and other professionals
FY201920
1Q 2Q 3Q 4Q 1Q
Compensation and benefits 5306 4971 1277 1258 1189 1246 1251 04Commissions and f loor brokeragesup1 999 826 209 196 238 183 246 341Information processing and communications 1848 1669 410 405 418 436 418 -43Occupancy and related depreciation 679 649 164 165 159 162 191 177Business dev elopment expenses 368 369 89 93 91 96 78 -181Other 2489 3060 435 708 1273 645 388 -398Total 11688 11545 2584 2825 3368 2769 2572 -71
QoQFY201819
FY201819FY201718
2584 2825
3368
2769 2572
0
100
200
300
400
