Edgar Filing: NOMURA HOLDINGS INC

Form 6-K

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

Supplement for the month of October 2007.

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):

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

Information furnished on this form:

EXHIBIT

Exhibit Number



1.		Financial Highlights – Six months ended September 2007

2.		Nomura Reports Second Quarter, First Half Financial Results

3.		Notification of Impairment of Investments in Subsidiaries and Affiliates in Unconsolidated Financial Statements

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: October 25, 2007	By:	/s/ Toshio Hirota
		Toshio Hirota Executive Managing Director

Financial Highlights - Six months ended September 30, 2007 (US GAAP)


Date:		October 25, 2007
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Osaka, Nagoya
		(Overseas) New York, Singapore
Representative:		Nobuyuki Koga
		President and Chief Executive Officer, Nomura Holdings, Inc.
For inquiries:		Tomoyuki Funabiki
		Managing Director, Investor Relations Department, Nomura Holdings, Inc.
		Tel: (Country Code 81) 3-5255-1000
		URL http://www.nomura.com

1.	Consolidated Operating Results

(1)	Operating Results


	For the six months ended September 30						For the year ended March 31
	2007				2006		2007
	(Yen amounts in millions, except per share data)
			% Change from September 30, 2006
Total revenue	1,147,160		31.7	%	870,944		2,049,101
Net revenue	600,937		31.5	%	456,912		1,091,101
Income before income taxes	96,374		(9.5	)%	106,491		321,758
Net income	66,226		4.0	%	63,665		175,828

Basic net income per share	34.70				33.41		92.25
Diluted net income per share	34.59				33.33		92.00
Net income to shareholders’ equity (ROE)	6.0	%			6.1	%	8.3	%

Equity in earnings of affiliates	10,997				9,091		53,367

(2)	Financial Position


	At September 30				At March 31
	2007		2006		2007
	(Yen amounts in millions, except per share data)
Total assets	29,333,718		32,682,845		35,873,374
Shareholders’ equity	2,233,928		2,125,028		2,185,919
Shareholders’ equity as a percentage of total assets	7.6	%	6.5	%	6.1	%
Shareholders’ equity per share	1,170.31		1,114.88		1,146.23

(3) Cash flows

	For the six months ended September 30				For the year ended March 31
	2007		2006		2007
	(Yen amounts in millions)
Net cash used in operating activities	(666,068	)	(1,389,799	)	(1,627,156	)
Net cash used in investing activities	(145,438	)	(144,285	)	(533,813	)
Net cash provided by financing activities	1,072,523		868,178		1,568,703
Cash and cash equivalents at end of period	660,404		330,804		410,028

Note: All prior year amounts have been reclassified to conform to the current year presentation.

2.	Cash dividends


	For the year ended March 31
	2007	2008	2008 (Plan)
Target dividends per share ^{See note 1} dividends record dates
At June 30	8.00	8.50	—
At September 30	8.00	8.50	—
At December 31	8.00	—	8.50
At March 31	8.00	—	8.50
Additional payout based on the level of profit ^{See note 2}
At March 31	12.00	Unconfirmed
Total at March 31	20.00	Unconfirmed
For the year	44.00	—	34.00

Note: 1.

Target dividends are minimum level of cash dividends.

2.	When Nomura achieves a sufficient level of profit, additional dividend will be added to its annual target dividends per share taking into consideration the consolidated payout ratio of over 30%.

3.	Earnings forecasts for the year ending March 31, 2008

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.

Other

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

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

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

Changes in accounting principles : Yes

Other changes : None

Note: Please refer to page 23 “ Note 1. Summary of accounting policies” for details.

(3)	Number of shares issued (common stock)


	At September 30		At March 31
	2007	2006	2007
Number of shares outstanding (including treasury stock)	1,965,919,860	1,965,919,860	1,965,919,860
Treasury stock	55,949,594	58,594,717	57,730,371

Note: 1.

Treasury stock represents the number of share owned by Parent Company.

2.	Please refer to page 23 “ Note 2. Per share data” for the number of shares used in basic net income per share calculation.

Parent Company Only Operating Results (Japanese GAAP)

(1)	Operating Results


	For the six months ended September 30				For the year ended March 31
	2007			2006	2007
	(Yen amounts in millions, except per share data)
		% Change from September 30, 2006
Operating revenue	318,572	27.2	%	250,495	340,886
Operating income	236,963	23.8	%	191,385	205,358
Ordinary income	238,649	23.9	%	192,667	207,221
Net profit	135,694	(28.5	)%	189,727	158,235

Net profit per share	71.07			99.50	82.97
Fully diluted net profit per share	70.60			99.06	82.59

(2)	Financial Position


	At September 30				At March 31
	2007		2006		2007
	(Yen amounts in millions, except per share data)
Total assets	4,572,212		4,021,704		4,438,039
Total net assets	1,545,227		1,538,647		1,475,328
Total net assets as a percentage of total assets	33.7	%	38.2	%	33.2	%
Total net assets per share	806.11		806.46		772.51

Shareholders’ equity	1,539,648		1,538,184		1,474,104

Financial Summary for the Six Months Ended September 30, 2007

Results of Operations

US GAAP Figures


	Billions of yen				% Change		Billions of yen
	For the six months ended				(%)		For the year ended
	September 30, 2007 (2007.4.1~ 2007.9.30) (A)		September 30, 2006 (2006.4.1~ 2006.9.30) (B)		(A-B)/(B)		March 31, 2007 (2006.4.1~ 2007.3.31)
Net revenue	600.9		456.9		31.5		1,091.1
Non-interest expenses	504.6		350.4		44.0		769.3

Income (loss) before income taxes	96.4		106.5		(9.5	)	321.8
Income tax expense	30.1		42.8		(29.6	)	145.9

Net income (loss)	66.2		63.7		4.0		175.8

Return on equity (ROE, annualized)	6.0	%	6.1	%	—		8.3	%

Nomura Holdings, Inc. and its consolidated entities (“Nomura”) reported net revenue of 600.9 billion yen for the six months ended September 30, 2007, an increase of 31.5% from the previous year, and non-interest expenses of 504.6 billion yen, a 44.0% year-on-year increase. Income before income taxes decreased 9.5% to 96.4 billion yen, while net income increased 4.0% to 66.2 billion yen. As a result, ROE for the six months was 6.0%.

Total of business segments


	Billions of yen		% Change		Billions of yen
	For the six months ended		(%)		For the year ended
	September 30, 2007 (2007.4.1~ 2007.9.30) (A)	September 30, 2006 (2006.4.1~ 2006.9.30) (B)	(A-B)/(B)		March 31, 2007 (2006.4.1~ 2007.3.31)
Net revenue	552.7	465.5	18.7		1,057.7
Non-interest expenses	432.2	313.4	37.9		680.5

Income (loss) before income taxes	120.5	152.1	(20.8	)	377.3

Nomura engages in private equity investing through its Global Merchant Banking division. Nomura’s US GAAP consolidated financial information includes the effect of consolidation/deconsolidation of certain private equity investee companies. Business segment totals exclude these effects as well as gain (loss) on investments in equity securities held for operating purposes.

Net revenue of business segments for the six months ended September 30, 2007, increased 18.7% from the prior year to 552.7 billion yen. Non-interest expenses increased 37.9% year-on-year to 432.2 billion yen, and income before income taxes declined 20.8% year-on-year to 120.5 billion yen. Please refer to page 32 for an explanation of the differences between US GAAP and business segment values.

Income (loss) before income taxes by business segment


	Billions of yen				% Change		Billions of yen
	For the six months ended				(%)		For the year ended
	September 30, 2007 (2007.4.1~ 2007.9.30) (A)		September 30, 2006 (2006.4.1~ 2006.9.30) (B)		(A-B)/(B)		March 31, 2007 (2006.4.1~ 2007.3.31)
Domestic Retail	82.8		70.7		17.0		160.9
Global Markets	(41.6	)	10.7		—		58.8
Global Investment Banking	16.8		21.8		(23.0	)	44.4
Global Merchant Banking	45.5		51.3		(11.2	)	52.8
Asset Management	19.9		16.3		22.0		36.5

Sub Total	123.3		170.8		(27.8	)	353.3
Other	(2.8	)	(18.7	)	—		23.9

Income (loss) before income taxes	120.5		152.1		(20.8	)	377.3

In Domestic Retail, income before income taxes increased 17.0% from last year to 82.8 billion yen.

Although a decline in equity agency transaction value led to a drop in stock brokerage commissions compared to last year, robust sales of investment trusts resulted in an increase in commissions for distribution of investment trusts and investment trust administration fees and other.

In Global Markets, loss before income taxes was 41.6 billion yen. Fixed Income reported a year-on-year decline in income before income taxes due to losses related to our exit from the US RMBS business. In other Fixed Income businesses, trading of interest rate and currency-linked structured bonds as well as credit derivatives and interest rate and currency-linked derivatives mainly in Europe contributed to revenue. Equity reported an increase in income before income taxes from the prior year as strong trading in equity derivatives more than offset a decline in revenue from MPO transactions.

In Global Investment Banking, income before income taxes decreased 23.0% year-on-year to 16.8 billion yen. In addition to the strong domestic M&A business, Europe and Asia contributed to an expansion in revenue. However, equity financing by domestic corporates declined significantly from the same period last year and even though we retained a high market share, the overall value of equity underwriting declined, leading to the drop in income before income taxes.

In Global Merchant Banking, income before income taxes declined 11.2% compared to the previous year to 45.5 billion yen. The sales of Deutsche Annington by Terra Firma as well as Wanbishi Archives and Sliontec by Nomura Principal Finance contributed to revenue.

In Asset Management, income before income taxes increased 22.0% from the prior year to 19.9 billion yen. Assets under management increased 3.3 trillion yen compared to the end of the prior half-year period to 30.3 trillion yen on the back of growth in investment trusts and the investment advisory business. Asset management fees increased as a result. In investment trusts, the My Story Profit Distribution-type Course B Fund topped 2 trillion yen and sales of balanced funds and newly-launched funds remained firm.

Loss before income taxes in Other was 2.8 billion yen. Total income before income taxes for all business segments decreased 20.8% from the prior year to 120.5 billion yen.

Financial Position

Total assets as of September 30, 2007, were 29.3 trillion yen, a decrease of 6.5 trillion yen compared to March 31, 2007, reflecting primarily a decrease in Collateralized agreements and Trading assets. Total liabilities as of September 30, 2007, were 27.1 trillion yen, a decrease of 6.6 trillion yen compared to March 31, 2007, mainly due to a decrease in Collateralized financing. Total shareholders’ equity at September 30, 2007, was 2.2 trillion yen, an increase of 48 billion yen compared to September 30, 2007, mainly due to an increase in Retained earnings.

Cash and cash equivalents as of September 30, 2007, increased by 250.4 billion yen compared to March 31, 2007. During the six months ended on September 30, 2007, Net cash used in operating activities amounted to 666.1 billion yen mainly due to an increase in Securities purchased under agreements to resell net of securities sold under agreements to repurchase, and an increase in Securities borrowed net of securities loaned. Net cash used in investing activities during the period was 145.4 billion yen, mainly due to Payments for purchase of office buildings, land, equipment and facilities, Increase in loans receivables at banks and Increase in non-trading debt securities. Net cash provided by financing activities during the period was 1,072.5 billion yen as a result of an increase in long term and short term borrowings.

Financial Summary for the Three Months Ended September 30, 2007

Results of Operations


	Billions of yen				% Change		Billions of yen		% Change
	For the three months ended				(%)		For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)		June 30, 2007 (2007.4.1~ 2007.6.30) (B)		(A-B)/(B)		September 30, 2006 (2006.7.1) 2006.9.30) (C)		(A-C)/(C)
Net revenue	220.2		380.7		(42.2	)	251.0		(12.3	)
Non-interest expenses	266.7		237.9		12.1		177.9		49.9

Income (loss) before income taxes	(46.5	)	142.8		—		73.1		—
Income tax expense	(35.9	)	66.1		—		29.6		—

Net income (loss)	(10.5	)	76.7		—		43.5		—

Return on equity (ROE, annualized)	(1.9	)%	13.7	%	—		8.3	%	—

Nomura reported net revenue of 220.2 billion yen for the three months ended September 30, 2007, a 42.2% decrease from the previous quarter and a 12.3% decline compared to the prior-year second quarter. Non-interest expenses increased 12.1% from the previous quarter and 49.9% compared to the same period last year to 266.7 billion yen. Loss before income taxes was 46.5 billion yen, while net loss was 10.5 billion yen. These results reflect realized and unrealized losses related to our exit from the US RMBS business as well as a restructuring charge related to our focus on core businesses in the US and unrealized losses on investments in equity securities held for operating purposes. As a result, ROE for the second quarter was negative 1.9%.

Total of business segments


	Billions of yen			% Change		Billions of yen	% Change
	For the three months ended			(%)		For the three months ended	(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)		June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)		September 30, 2006 (2006.7.1~ 2006.9.30) (C)	(A-C)/(C)
Net revenue	200.0		352.7	(43.3	)	255.7	(21.8	)
Non-interest expenses	227.3		204.9	10.9		158.0	43.8

Income (loss) before income taxes	(27.3	)	147.9	—		97.7	—

Net revenue of business segments for the three months ended September 30, 2007, was 200.0 billion yen, a 43.3% decrease from the prior quarter and 21.8% decline compared to the same period last year. Non-interest expenses increased 10.9% from the previous quarter and 43.8% compared to the prior-year second quarter to 227.3 billion yen. Loss before income taxes was 27.3 billion yen. Please refer to page 32 for an explanation of the differences between US GAAP and business segment values.

Income (loss) before income taxes by business segments


	Billions of yen				% Change		Billions of yen		% Change
	For the three months ended				(%)		For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)		June 30, 2007 (2007.4.1~ 2007.6.30) (B)		(A-B)/(B)		September 30, 2006 (2006.7.1~ 2006.9.30) (C)		(A-C)/(C)
Domestic Retail	32.2		50.6		(36.3	)	28.2		14.3
Global Markets	(67.7	)	26.0		—		(3.6	)	—
Global Investment Banking	(3.9	)	20.7		—		16.3		—
Global Merchant Banking	5.4		40.1		(86.5	)	41.5		(86.9	)
Asset Management	7.7		12.2		(37.0	)	11.1		(30.6	)

Sub Total	(26.3	)	149.6		—		93.4		—
Other	(1.0	)	(1.8	)	—		4.3		—

Income (loss) before income taxes	(27.3	)	147.9		—		97.7		—

Second quarter income(loss) before income taxes was 32.2 billion yen in Domestic Retail, down 36.3% from the first quarter and up 14.3% from the same period last year; 67.7 billion yen loss in Global Markets; 3.9 billion yen loss in Global Investment Banking; 5.4 billion yen in Global Merchant Banking, down 86.5% from the first quarter and 86.9% from the same period last year; and 7.7 billion yen in Asset Management, down 37.0% from the first quarter and 30.6% from the same period last year.

Loss before income taxes in Other was 1 billion yen. Total loss before income taxes for all business segments was 27.3 billion yen.

Business Segment Results for the Three Months Ended September 30, 2007

Operating Results of Domestic Retail


	Billions of yen		% Change
	For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)	June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Net revenue	103.3	121.8	(15.2	)
Non-interest expenses	71.1	71.3	(0.3	)

Income (loss) before income taxes	32.2	50.6	(36.3	)

Net revenue decreased 15.2% from the previous quarter to 103.3 billion yen. Non-interest expenses decreased 0.3% to 71.1 billion yen. Income before income taxes was 32.2 billion yen, down 36.3% compared to the prior quarter.

Although commissions for distribution of investment trusts, sales credit, and stock brokerage commissions were down due to turmoil in the global financial markets, investment trust administration fees and other increased for the eleventh straight quarter as sales of investment trusts remained steady and net asset inflow into investment trusts outstripped the first quarter.

Domestic Client Assets¹ declined by 4 trillion yen from the end of June to 84.3 trillion yen due primarily to a slump in the stock market, while the number of accounts with a balance increased to 4.066 million.

Operating Results of Global Markets


	Billions of yen			% Change
	For the three months ended			(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)		June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Net revenue	16.8		108.9	(84.6	)
Non-interest expenses	84.5		82.9	1.9

Income (loss) before income taxes	(67.7	)	26.0	—

Net revenue decreased 84.6% from the previous quarter to 16.8 billion yen. Non-interest expenses increased 1.9% to 84.5 billion yen. Loss before income taxes was 67.7 billion yen.

In Fixed Income, revenue declined from the prior quarter due to realized and unrealized losses related to our exit from the US RMBS business. In other Fixed Income businesses, order flow for interest rate and currency-linked structured bonds weakened, while trading of credit derivatives and interest rate and currency-linked derivatives mainly in Europe contributed to revenue as we capitalized on revenue-generating opportunities amid the volatile interest rate and currency markets.

¹	Domestic Client Assets refers to the sum of assets under custody in the Domestic Retail segment (including regional financial institutions) and the Financial Management Division.

In Equity, revenue remained around the same level as the prior quarter. Revenue from MPO transactions and block trades declined, while equity derivative trading was robust and Instinet revenue expanded. In addition, in view of the way in which transactions are carried out, a portion of Instinet revenue that to date was offset against commissions paid has been booked as revenue and expenses from the second quarter.

Operating Results of Global Investment Banking


	Billions of yen			% Change
	For the three months ended			(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)		June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Net revenue	10.8		36.7	(70.6	)
Non-interest expenses	14.7		16.0	(7.9	)

Income (loss) before income taxes	(3.9	)	20.7	—

Net revenue decreased 70.6% from the previous quarter to 10.8 billion yen. Non-interest expenses decreased 7.9% to 14.7 billion yen, while loss before income taxes was 3.9 billion yen.

The equity finance market for Japanese corporates remained weak during the second quarter and the number of major M&A deals dropped off, resulting in a decline in deals contributing to revenue. Despite this, we retained our high market share and ranked number one in both the Global Equity and Equity-related (Japan) and M&A league tables² for January to September 2007.

In equity financing, we acted as lead manager in deals by Mitsui Trust Holdings and DA Office Investment Corporation. In M&A, we were financial advisor on the tender offer by Promise to acquire all shares in Sanyo Shinpan Finance.

²	Source: Thomson Financial

Operating Results of Global Merchant Banking


	Billions of yen		% Change
	For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)	June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Net revenue	8.5	43.4	(80.5	)
Non-interest expenses	3.0	3.3	(8.3	)

Income (loss) before income taxes	5.4	40.1	(86.5	)

Net revenue decreased 80.5% from the previous quarter to 8.5 billion yen. Non-interest expenses decreased 8.3% to 3 billion yen, while income before income taxes declined 86.5% to 5.4 billion yen.

During the quarter, realized gains were booked from the sale of a Terra Firma investee companies and Sliontec by Nomura Principal Finance. Unrealized losses and gains were also booked due to valuation at fair value of certain investee companies.

Operating Results of Asset Management


	Billions of yen		% Change
	For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)	June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Net revenue	23.7	26.4	(10.3	)
Non-interest expenses	16.0	14.2	12.6

Income (loss) before income taxes	7.7	12.2	(37.0	)

Net revenue decreased 10.3% from the previous quarter to 23.7 billion yen, non-interest expenses increased 12.6% to 16 billion yen, and income before income taxes declined 37.0% to 7.7 billion yen.

Total assets under management in Asset Management remained virtually unchanged from the end of the first quarter at 30.3 trillion yen. Amid the tough external environment of a rising yen and weak stock market, sales of balanced funds such as the My Story Profit Distribution-type Fund, Global Three Assets Balance Fund, and Nomura Global Six Assets Diversified Fund remained strong. In addition, newly-launched funds such as the Nomura Global High Interest Rate Currencies Fund and Nomura Aqua Investment proved popular. In the investment advisory business, the balance of advisory contracts continued to increase steadily. However, unrealized losses on pilot funds and seed money for product development were also booked during the quarter.

Other Operating Results


	Billions of yen		% Change
	For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)	June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Net revenue	37.0	15.4	139.7
Non-interest expenses	38.0	17.2	121.1

Income(loss) before income taxes	(1.0)	(1.8)	—

Net revenue increased 139.7% from the prior quarter to 37.0 billion yen. Loss before income taxes was 1 billion yen.

Non-interest Expenses (Segment Total)


	Billions of yen		% Change
	For the three months ended		(%)
	September 30, 2007 (2007.7.1~ 2007.9.30) (A)	June 30, 2007 (2007.4.1~ 2007.6.30) (B)	(A-B)/(B)
Compensation and benefits	94.4	100.7	(6.2	)
Commissions and floor brokerage	22.6	22.7	(0.5	)
Information processing and communications	34.7	29.2	18.9
Occupancy and related depreciation	15.1	15.9	(4.9	)
Business development expenses	9.9	8.8	12.0
Other	50.6	27.6	83.4

Non-Interest Expenses	227.3	204.9	10.9

Business segment non-interest expenses increased 10.9% from the previous quarter to 227.3 billion yen. Other expenses increased due primarily to our focus on core businesses in the US.

Nomura’s Capital Management

Capital Management Policy

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

Dividend

In regard to cash dividends, Nomura first decides target dividend amounts, minimum level of cash dividend, taking into account the firm's dividend-on-equity ratio (DOE) of about 3%. When Nomura achieves a sufficient level of profit, it will decide the amount of the year-end cash dividend taking into consideration a pay-out ratio of over 30%. Nomura seeks to ensure sustainable growth of its target dividend in the medium to long term. As for retained profits, Nomura intends to invest in business areas where high profitability and growth may reasonably be expected, including development and expansion of infrastructure, to maximize value for shareholders.

Stock Repurchase

Nomura repurchases shares when it recognizes the need to set out flexible financial strategies that allow the Board to respond quickly to changes in the business environment. When Nomura decides to set up a share buyback program, the firm will announce the decision soon after it is made and purchase the shares following internal guidelines.

Organizational Structure

Nomura Holdings, Inc. and its consolidated subsidiaries, with a core of broker-dealer business, provide a wide range of investment, financing and related services to customers on a global basis. The services we provide include trading, underwriting, and offering securities, asset management services, and others.

The following table lists Nomura Holdings, Inc. and its significant subsidiaries, affiliates or equity-method investments.

Nomura Holdings, Inc.

Domestic Subsidiaries

Nomura Securities Co., Ltd.

Nomura Asset Management Co., Ltd.

The Nomura Trust & Banking Co., Ltd.

Nomura Babcock & Brown Co., Ltd.

Nomura Capital Investment Co., Ltd.

Nomura Investor Relations Co., Ltd.

Nomura Principal Finance Co., Ltd.

Nomura Funds Research and Technologies Co., Ltd.

Nomura Pension Support & Service Co., Ltd.

Nomura Research & Advisory Co., Ltd.

Nomura Business Services Co., Ltd.

Nomura Facilities, Inc.

Nomura Institute of Capital Markets Research Joinvest Securities Co., Ltd.

Overseas Subsidiaries

Nomura Holding America Inc.

Nomura Securities International, Inc.

Nomura Corporate Research and Asset Management Inc.

Nomura Asset Capital Corporation The Capital Company of America, LLC

Nomura Derivative Products, Inc.

Nomura Global Financial Products, Inc.

Nomura Securities (Bermuda) Ltd.

Nomura Europe Holdings plc

Nomura International plc

Nomura Bank International plc Banque

Nomura France

Nomura Bank (Luxembourg) S.A.

Nomura Bank (Deutschland) GmbH

Nomura Bank (Switzerland) Ltd.

Nomura Italia S.I.M. p.A.

Nomura Investment Banking (Middle East) B.S.C. (Closed)

Nomura Funding Facility Corporation Limited

Nomura Global Funding plc

Nomura Europe Finance N.V.

Nomura Principal Investment plc

NHI Acquisition Holding Inc.

Instinet Incorporated

Nomura Asia Holding N.V.

Nomura International (Hong Kong) Limited

Nomura Singapore Limited

Nomura Malaysia Sdn. Bhd.

Nomura Australia Limited

PT Nomura Indonesia

Affiliates/ equity-method investments

Nomura Research Institute, Ltd.

JAFCO Co., Ltd.

Nomura Land and Building Co., Ltd.

Capital Nomura Securities Public Company Limited

Fortress Investment Group LLC

Corporate Goals and Principles

Fundamental Management Policy

Nomura Group is committed to a management vision of firmly establishing itself as a globally competitive Japanese financial services group. We have also set a management target of achieving an average consolidated return on equity (ROE) of 10% to 15% on a consolidated basis over the medium to long term.

In pursuing this vision, we put our clients first and contribute to the creation of an affluent society based on investment by listening closely to the needs of our clients and delivering superior investment services and high value added solutions via the financial and capital markets. We aim to go beyond the boundaries of the traditional securities business to take the lead in expanding into new business areas, and thereby construct new growth models, diversify our sources of earnings, and achieve a profit structure resilient to changes in the market environment. In addition, we will promote compliance with applicable laws, regulations and ensure proper corporate behavior.

Structure of Business Operations

Nomura Group is organized around globally-linked business divisions, rather than individual legal entities. Nomura Group's operations are comprised of Domestic Retail, Global Markets, Global Investment Banking, Global Merchant Banking and Asset Management. 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 collaboration between business divisions.

Management Challenges and Strategies

Current environment

At present, the Japanese economy can be said to be in a moderate process of expansion with strong private demand, primarily in the corporate sector.

The global economy is slowing due to an adjustment in the housing market in the U.S. economy and concerns over the impact on the real economy are arising.

In this economic environment, M&A and financing needs to support activities to prepare for industry reorganization as a result of a shrinking domestic market in the coming aging society are surfacing among Japanese domestic corporations.

In domestic personal financial assets, the ongoing shift from savings to investment will continue to accelerate amid social change, including the mass retirement of the baby boomer generation and progress of further deregulation.

The investment needs of corporates and the fact that the shift from savings to investment of domestic financial assets has become firmly established, represent two major tides in domestic financial and capital markets. These trends mean that the role of the Company is becoming more significant, and we believe this increase our business opportunity that is broadening rapidly.

Looking at structural changes in the global financial system, we believe we can point to three major currents.

First is the fact that private equity funds, hedge funds and sovereign wealth funds in recent years have established a strong presence as new providers of risk money. As a result of tightening credit in the international financial markets due to subprime issues, uncertainty remains. However providing financing utilizing financial technologies to these funds will still be a core business to investment banks and universal banks.

Second is the liquidity of balance sheets of financial institutions. European and U.S. commercial banks are aggressively making their balance sheets more liquid in the pursuit of profitability rather than scale. The risk tolerance of investors is weakening due to subprime issues, but the use of securitization as a method of making assets liquid and credit derivatives as a means of hedging credit risk will continue against the backdrop of financial institutions pursuing liquidity on their balance sheets.

Third is the rise of emerging markets. The uncertainty of the U.S. economy is increasing and concerns over impact to the global economy are arising. However, Asia still remains to attract the greatest attention of investors and corporate managers and the expanding trend in the growth of investment in Asia is causing major changes in global financial systems.

Thus we believe that we are seeing changes both in the domestic and the international environment that can be considered major opportunities for business growth. The Company believes that it is essential to expand our business by facing our clients head on, accurately understanding their needs, and responding to those needs as a basic stance.

Challenges and management response

Nomura Group’s management vision is to provide superior services for all kinds of investment. We have made efforts to expand the breadth of our business as a Group, aiming at further growth by expanding the scope of our business.

In striving for further growth in Nomura Group, we intend to take on the important issues of listening closely to our clients as we plan business growth, pursuing Nomura’s distinct international strategy, and planning expansion into new areas of business.

Client-centric business growth

Nomura Group’s fundamental approach in expanding our business should be to thoroughly understand trends in our clients’ interest and need in expanding the scope of our business, and to respond in such a way as to create business with our clients. Thus our aim is to develop this type of client-centric business as a Group, and at the same time to offer our business on a global scale as we assure continuing growth.

Each of our divisions is making the following efforts:

In Domestic Retail, we aim to shift personal financial assets away from bank savings to the securities markets, expanding and strengthening our client base. For that purpose, we will promptly offer products and services that meet our clients’ needs by expanding client access channels, which include branch offices, call services and online services. We will also continue our efforts to provide education to investors in order to expand the overall investor universe towards the securities market.

In Global Markets, we provide high value-added products and solutions, through the application of financial techniques such as securitization and derivatives, and provide liquidity to financial instruments such as interest rates, foreign exchange, credit, equity and real estate linked products.

In Global Investment Banking, we will expand our M&A advisory and corporate financing businesses by providing high value-added solutions in line with each client’s individual needs. We will also use our domestic and international networks to build up a solid presence in Asia and further expand our global operations.

In Global Merchant Banking, we work closely with other business divisions in the Group to maximize the value of our investments by improving the enterprise value of companies we invest in.

In Asset Management, we will continue to maintain a structure which can continuously add value by concentrating our operations, enhancing research capabilities and improving our analysis. We also aim to increase assets under management by diversifying the investment opportunities we can offer and expanding our sales channels. In the defined contribution pension plan business, we will increase Nomura Group's client base by offering integrated services that run from consulting for plan implementation to offering individual products.

Development of Nomura’s distinct international strategy

Nomura Group’s international strategy is also focused on client-centric business expansion, while we implement different business strategies that reflect the different characteristics of each region. In Europe we intend to take on the role of a provider of high-value added products as well as to strengthen this function, while, in the U.S., we are planning to continue focusing on our core competencies. Asia offers significant business potential and we intend to pursue the development of business closely in keeping with the regional needs based on the understanding of local requirements, increase the number of clients who recognize Nomura as a partner, by making maximum use of Nomura’s financial technologies and global distribution network, in light of the distinctive qualities of each Asian country.

Expansion of new business areas

We are putting more emphasis than ever on the expansion of new business areas. With the acquisition of Instinet, Nomura Group is addressing an electronic trading platform in global equities as a new business area. In the future, if we can be confident that businesses acquired through M&A will give rise to complementary relationships and provide synergy, we believe we will be able to utilize M&A as a powerful strategic option.

In addition, we will continue to accelerate our progress in the expansion of business areas with the goal of broader business operation by Nomura Group through such expansion as JOINVEST Securities Co., Ltd. and the loan business of Nomura Capital Investment Co., Ltd.

In addressing the above challenges and strategy, we will bring together the collective strengths of our domestic and international operations to expand and develop Japan’s financial and capital markets, while also increasing profitability across Nomura Group to achieve our management targets and maximize shareholder value.

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)


	Millions of yen				% Change		Millions of yen
	For the six months ended						For the year ended
	September 30, 2007 (A)		September 30, 2006 (B)		(A-B)/(B)		March 31, 2007
Revenue:
Commissions	219,849		145,642		51.0		337,458
Fees from investment banking	46,066		41,252		11.7		99,276
Asset management and portfolio service fees	98,221		65,208		50.6		145,977
Net gain on trading	107,215		103,312		3.8		290,008
Gain on private equity investments	63,652		37,295		70.7		47,590
Interest and dividends	540,731		440,171		22.8		981,344
(Loss) gain on investments in equity securities	(24,756	)	(20,553	)	—		(20,103	)
Private equity entities product sales	70,827		42,705		65.9		100,126
Other	25,355		15,912		59.3		67,425

Total revenue	1,147,160		870,944		31.7		2,049,101
Interest expense	546,223		414,032		31.9		958,000

Net revenue	600,937		456,912		31.5		1,091,101

Non-interest expenses :
Compensation and benefits	203,223		161,828		25.6		345,936
Commissions and floor brokerage	46,351		20,590		125.1		50,812
Information processing and communications	64,204		50,601		26.9		109,987
Occupancy and related depreciation	33,879		28,185		20.2		61,279
Business development expenses	20,061		17,658		13.6		38,106
Private equity entities cost of goods sold	44,118		23,208		90.1		57,184
Other	92,727		48,351		91.8		106,039

	504,563		350,421		44.0		769,343

Income before income taxes	96,374		106,491		(9.5	)	321,758
Income tax expense	30,148		42,826		(29.6	)	145,930

Net income	66,226		63,665		4.0		175,828


Per share of common stock:

	Yen				% Change		Yen
Basic-
Net income	34.70		33.41		3.9		92.25

Diluted-
Net income	34.59		33.33		3.8		92.00

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)


	Millions of yen
	September 30, 2007		March 31, 2007		September 30, 2006
ASSETS
Cash and cash deposits:
Cash and cash equivalents	660,404		410,028		330,804
Time deposits	955,859		546,682		587,254
Deposits with stock exchanges and other segregated cash	147,505		97,302		55,542

	1,763,768		1,054,012		973,600

Loans and receivables:
Loans receivable	964,214		935,711		1,049,570
Receivables from customers	34,354		47,518		37,627
Receivables from other than customers	1,262,415		637,209		1,245,984
Allowance for doubtful accounts	(1,526	)	(2,027	)	(3,464	)

	2,259,457		1,618,411		2,329,717

Collateralized agreements:
Securities purchased under agreements to resell	3,517,842		8,061,805		7,885,086
Securities borrowed	7,886,590		9,776,422		7,124,886

	11,404,432		17,838,227		15,009,972

Trading assets and private equity investments*:
Trading assets	11,338,576		12,830,826		12,482,177
Private equity investments	239,843		347,394		335,247

	11,578,419		13,178,220		12,817,424

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥255,979 million at September 30, 2007, ¥249,592 million at March 31, 2007 and ¥227,886 million at September 30, 2006, respectively)	449,209		422,290		353,160
Non-trading debt securities*	288,765		255,934		229,379
Investments in equity securities*	162,280		195,238		207,650
Investments in and advances to affiliated companies*	438,610		441,536		295,955
Other	988,778		869,506		465,988

	2,327,642		2,184,504		1,552,132

Total assets	29,333,718		35,873,374		32,682,845

*	Including securities pledged as collateral

Note:

Reclassifications -

Certain prior period amounts have been reclassified to conform to the current period presentation.

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)


	Millions of yen
	September 30, 2007		March 31, 2007		September 30, 2006
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term borrowings	1,346,591		1,093,529		829,315
Payables and deposits:
Payables to customers	333,445		304,462		423,758
Payables to other than customers	448,544		623,143		363,132
Deposits received at banks	495,770		418,250		402,526

	1,277,759		1,345,855		1,189,416

Collateralized financing:
Securities sold under agreements to repurchase	5,619,336		11,874,697		11,861,474
Securities loaned	4,236,458		7,334,086		6,287,138
Other secured borrowings	2,342,188		1,390,473		1,283,263

	12,197,982		20,599,256		19,431,875

Trading liabilities	5,559,848		4,800,403		4,179,129
Other liabilities	900,760		845,522		493,624
Long-term borrowings	5,816,850		5,002,890		4,434,458

Total liabilities	27,099,790		33,687,455		30,557,817

Shareholders’ equity:
Common stock
Authorized - 6,000,000,000 shares Issued - 1,965,919,860 shares at September 30, 2007, March 31, 2007 and September 30, 2006 respectively
Outstanding - 1,908,831,093 shares at September 30, 2007, 1,907,049,871 shares at March 31, 2007 and 1,906,067,957 shares at September 30, 2006	182,800		182,800		182,800
Additional paid-in capital	170,267		165,496		162,127
Retained earnings	1,944,562		1,910,978		1,852,207
Accumulated other comprehensive (loss) income	13,911		6,613		9,119

	2,311,540		2,265,887		2,206,253
Common stock held in treasury, at cost - 57,088,767 shares , 58,869,989 shares and 59,851,903 shares at September 30, 2007, March 31, 2007 and September 30, 2006 respectively	(77,612	)	(79,968	)	(81,225	)

Total shareholders’ equity	2,233,928		2,185,919		2,125,028

Total liabilities and shareholders’ equity	29,333,718		35,873,374		32,682,845

Note:

Reclassifications -

Certain prior period amounts have been reclassified to conform to the current period presentation.

NOMURA HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(UNAUDITED)


	Millions of yen
	For the six months ended				For the year ended
	September 30, 2007		September 30, 2006		March 31, 2007
Common stock
Balance at beginning of year	182,800		182,800		182,800

Balance at end of year	182,800		182,800		182,800

Additional paid-in capital
Balance at beginning of year	165,496		159,527		159,527
Loss on sales of treasury stock	(1,458	)	(633	)	(556	)
Issuance of common stock options	6,229		3,233		6,525

Balance at end of year	170,267		162,127		165,496

Retained earnings
Balance at beginning of year	1,910,978		1,819,037		1,819,037
Net income	66,226		63,665		175,828
Cash dividends	(32,418	)	(30,495	)	(83,887	)
Adjustments to initially apply FIN 48	1,266		—		—
Adjustments to initially apply EITF 06-2	(1,119	)	—		—
Loss on sales of treasury stock	(371	)	—		—

Balance at end of year	1,944,562		1,852,207		1,910,978

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year	36,889		(1,129	)	(1,129	)
Net change during the year	6,898		24,276		38,018

Balance at end of year	43,787		23,147		36,889

Defined benefit pension plans
Balance at beginning of year	(30,276	)	(14,096	)	(14,096	)
Pension liability adjustment	400		68		(387	)
Adjustments to initially apply SFAS 158⁽¹⁾	—		—		(15,793	)

Balance at end of year	(29,876	)	(14,028	)	(30,276	)

Balance at end of year	13,911		9,119		6,613

Common stock held in treasury
Balance at beginning of year	(79,968	)	(82,812	)	(82,812	)
Repurchases of common stock	(102	)	(81	)	(204	)
Sale of common stock	42		23		25
Common stock issued to employees	2,415		1,677		2,910
Other net change in treasury stock	1		(32	)	113

Balance at end of year	(77,612	)	(81,225	)	(79,968	)

Total shareholders’ equity
Balance at end of year	2,233,928		2,125,028		2,185,919

(1)	For the initial year of application, the adjustments are not reflected on the consolidated comprehensive income.

Note:

Reclassifications -

Certain prior period amounts have been reclassified to conform to the current period presentation.

NOMURA HOLDINGS, INC.

CONSOLIDATED INFORMATION OF CASH FLOWS

(UNAUDITED)


	Millions of yen
	For the six months ended				For the year ended
	September 30, 2007		September 30, 2006		March 31, 2007
Cash flows from operating activities:
Net income	66,226		63,665		175,828
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	31,757		24,243		50,432
Loss on investments in equity securities	24,756		20,553		20,103
Changes in operating assets and liabilities:
Time deposits	(413,006	)	(40,169	)	24,395
Deposits with stock exchanges and other segregated cash	(51,972	)	(8,613	)	(30,186	)
Trading assets and private equity investments	1,599,032		1,165,486		1,039,123
Trading liabilities	751,368		(2,485,422	)	(1,986,980	)
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase	(1,707,073	)	1,439,454		1,243,337
Securities borrowed, net of securities loaned	(1,204,864	)	1,408,199		(177,234	)
Other secured borrowings	951,733		(1,719,363	)	(1,612,879	)
Loans and receivables, net of allowance	(589,575	)	(815,525	)	95,843
Payables	(121,164	)	(157,594	)	(154,665	)
Other, net	(3,286	)	(284,713	)	(314,273	)

Net cash used in operating activities	(666,068	)	(1,389,799	)	(1,627,156	)

Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities	(79,933	)	(32,795	)	(101,784	)
Proceeds from sales of office buildings, land, equipment and facilities	6,420		142		634
Payments for purchases of investments in equity securities	(641	)	(5,602	)	(9,284	)
Proceeds from sales of investments in equity securities	4,565		8,800		25,109
Increase in Loans receivable at banks, net	(54,010	)	(52,792	)	(73,611	)
Increase in non-trading debt securities, net	(33,476	)	(13,291	)	(37,861	)
Other, net	11,637		(48,747	)	(337,016	)

Net cash used in investing activities	(145,438	)	(144,285	)	(533,813	)

Cash flows from financing activities:
Increase in long-term borrowings	1,611,754		1,187,261		2,736,688
Decrease in long-term borrowings	(805,668	)	(389,097	)	(1,451,500	)
Increase in short-term borrowings, net	248,861		132,605		377,788
Increase in deposits received at banks, net	71,445		20,299		17,947
Proceeds from sales of common stock	628		1,067		2,379
Payments for repurchases of common stock	(102	)	(81	)	(204	)
Payments for cash dividends	(54,395	)	(83,876	)	(114,395	)

Net cash provided by financing activities	1,072,523		868,178		1,568,703

Effect of exchange rate changes on cash and cash equivalents	(10,641	)	4,749		10,333

Net increase (decrease) in cash and cash equivalents	250,376		(661,157	)	(581,933	)
Cash and cash equivalents at beginning of the period	410,028		991,961		991,961

Cash and cash equivalents at end of the period	660,404		330,804		410,028

Note:

Reclassifications -

All prior year amounts have been reclassified to conform to the current year presentation.

NOMURA HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION

(UNAUDITED)

1.	Summary of accounting policies:

Basis of presentation —

The consolidated financial information herein has been prepared in accordance with Nomura's accounting policies which are disclosed in the notes of Nomura Holdings, Inc.'s Annual Securities Report (the annual report filed in Japan on June 28, 2007) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on July 12, 2007) for the year ended March 31, 2007.

Presentations of significant changes in accounting principles are as follows:

Accounting for uncertainty in income taxes —

Nomura adopted Financial Accounting Standards Board (“FASB”) Interpretation No.48, “Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109” on April 1, 2007. In accordance with this standard, the adjusted amount due to the initial adoption was recorded in the retained earnings.

Accounting for sabbatical leave and other similar benefits —

Nomura adopted FASB Emerging Issues Task Force (“EITF”) Issue No.06-2, “Accounting for sabbatical leave and other similar benefits pursuant to FASB statement No.43” on April 1, 2007. In accordance with this standard, the adjusted amount due to the initial adoption was recorded in the retained earnings.

2.	Per share data

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


Number of shares outstanding (September 30, 2007)		1,908,831,093

Net income per share is calculated based on the following number of shares.


Average number of shares outstanding (September 30, 2007)		1,908,270,970

3.	Segment Information-Operating segment:

The following table shows business segment information and reconciliation items to the consolidated income statement information.


	Millions of yen				% Change		Millions of yen
	For the six months ended						For the year ended
	September 30, 2007 (A)		September 30, 2006 (B)		(A-B)/(B)		March 31, 2007
(1) Net revenue
Business segment information:
Domestic Retail	225,100		200,127		12.5		440,118
Global Markets	125,672		117,374		7.1		290,028
Global Investment Banking	47,552		48,496		(1.9	)	99,187
Global Merchant Banking	51,865		56,664		(8.5	)	64,969
Asset Management	50,093		41,490		20.7		90,106

Sub Total	500,282		464,151		7.8		984,408
Other	52,416		1,348		3,788.4		73,338

Net revenue	552,698		465,499		18.7		1,057,746

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(26,082	)	(25,451	)	—		(38,232	)
Effect of consolidation/deconsolidation of certain private equity investee companies	74,321		16,864		340.7		71,587

Net revenue	600,937		456,912		31.5		1,091,101

(2) Non-interest expense
Business segment information:
Domestic Retail	142,339		129,417		10.0		279,253
Global Markets	167,319		106,648		56.9		231,222
Global Investment Banking	30,736		26,653		15.3		54,783
Global Merchant Banking	6,337		5,384		17.7		12,153
Asset Management	30,213		25,200		19.9		53,649

Sub Total	376,944		293,302		28.5		631,060
Other	55,206		20,056		175.3		49,397

Non-interest expense	432,150		313,358		37.9		680,457

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—		—
Effect of consolidation/deconsolidation of certain private equity investee companies	72,413		37,063		95.4		88,886

Non-interest expenses	504,563		350,421		44.0		769,343

(3) Income (loss) before income taxes
Business segment information:
Domestic Retail	82,761		70,710		17.0		160,865
Global Markets	(41,647	)	10,726		—		58,806
Global Investment Banking	16,816		21,843		(23.0	)	44,404
Global Merchant Banking	45,528		51,280		(11.2	)	52,816
Asset Management	19,880		16,290		22.0		36,457

Sub Total	123,338		170,849		(27.8	)	353,348
Other *	(2,790	)	(18,708	)	—		23,941

Income (loss) before income taxes	120,548		152,141		(20.8	)	377,289

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(26,082	)	(25,451	)	—		(38,232	)
Effect of consolidation/deconsolidation of certain private equity investee companies	1,908		(20,199	)	—		(17,299	)

Income (loss) before income taxes	96,374		106,491		(9.5	)	321,758

*	The major components

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

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


	Millions of yen				% Change		Millions of yen
	For the six months ended						For the year ended
	September 30, 2007 (A)		September 30, 2006 (B)		(A-B)/(B)		March 31, 2007
Net gain/loss on trading related to economic hedging transactions	(11,617	)	(25,418	)	—		(38,383	)
Realized gain on investments in equity securities held for operating purposes	1,326		4,898		(72.9	)	18,129
Equity in earnings of affiliates	7,684		9,445		(18.6	)	53,169
Corporate items	(21,939	)	(3,456	)	—		(11,111	)
Others	21,756		(4,177	)	—		2,137

Total	(2,790	)	(18,708	)	—		23,941

4.	Other:

The consolidated financial information herein does not include all footnotes required under US GAAP.

Supplemental Consolidated Financial Information

(Unaudited)

This supplemental information (Unaudited) contains the following items.

•

Quarterly Results - Consolidated Income Statement

•

Quarterly Results - Business Segment

•

Commissions/fees received and Net gain on trading

•

Consolidated Income Statement Information

•

Business segment information

•

Reconciliation items of the business segment information to the consolidated income statement information

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)


	Millions of yen											% Change
	For the three months ended
	June 30, 2006		September 30, 2006		December 31, 2006		March 31, 2007	June 30, 2007(A)		September 30, 2007(B)		(B-A)/(A)
Revenue:
Commissions	79,579		66,063		84,190		107,626	112,962		106,887		(5.4	)
Fees from investment banking	14,351		26,901		32,317		25,707	29,890		16,176		(45.9	)
Asset management and portfolio service fees	29,732		35,476		36,730		44,039	47,311		50,910		7.6
Net gain on trading	55,770		47,542		89,152		97,544	99,683		7,532		(92.4	)
Gain on private equity investments	9,784		27,511		10,224		71	45,819		17,833		(61.1	)
Interest and dividends	207,860		232,311		262,928		278,245	294,697		246,034		(16.5	)
(Loss) gain on investments in equity securities	(20,509	)	(44	)	(154	)	604	(540	)	(24,216	)	—
Private equity entities product sales	20,985		21,720		28,778		28,643	36,479		34,348		(5.8	)
Other	4,178		11,734		45,371		6,142	16,400		8,955		(45.4	)

Total revenue	401,730		469,214		589,536		588,621	682,701		464,459		(32.0	)
Interest expense	195,796		218,236		266,625		277,343	301,964		244,259		(19.1	)

Net revenue	205,934		250,978		322,911		311,278	380,737		220,200		(42.2	)

Non-interest expenses:
Compensation and benefits	82,768		79,060		86,679		97,429	105,571		97,652		(7.5	)
Commissions and floor brokerage	10,255		10,335		12,004		18,218	23,011		23,340		1.4
Information processing and communications	23,167		27,434		27,296		32,090	29,332		34,872		18.9
Occupancy and related depreciation	14,442		13,743		14,596		18,498	17,442		16,437		(5.8	)
Business development expenses	7,848		9,810		9,234		11,214	9,597		10,464		9.0
Private equity entities cost of goods sold	11,365		11,843		17,417		16,559	22,899		21,219		(7.3	)
Other	22,685		25,666		23,577		34,111	30,051		62,676		108.6

	172,530		177,891		190,803		228,119	237,903		266,660		12.1

Income (loss) before income taxes	33,404		73,087		132,108		83,159	142,834		(46,460	)	—
Income tax expense	13,266		29,560		53,031		50,073	66,092		(35,944	)	—

Net income (loss)	20,138		43,527		79,077		33,086	76,742		(10,516	)	—


Per share of common stock:

	Yen											% Change
Basic-
Net income (loss)	10.52		22.84		41.48		17.35	40.22		(5.51	)	—

Diluted-
Net income (loss)	10.50		22.78		41.38		17.31	40.09		(5.49	)	—

NOMURA HOLDINGS, INC.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

Business Segment Information - Quarterly Results

The following table shows quarterly business segment information and reconciliation items to the consolidated income statement.


	Millions of yen												% Change
	For the three months ended
	June 30, 2006		September 30, 2006		December 31, 2006		March 31, 2007		June 30, 2007(A)		September 30, 2007(B)		(B-A)/(A)
(1) Net revenue
Business segment information:
Domestic Retail	105,609		94,518		115,882		124,109		121,840		103,260		(15.2	)
Global Markets	68,899		48,475		78,068		94,586		108,909		16,763		(84.6	)
Global Investment Banking	18,808		29,688		24,088		26,603		36,740		10,812		(70.6	)
Global Merchant Banking	12,123		44,541		9,249		(944	)	43,407		8,458		(80.5	)
Asset Management	17,636		23,854		24,543		24,073		26,407		23,686		(10.3	)

Sub Total	223,075		241,076		251,830		268,427		337,303		162,979		(51.7	)
Other	(13,301	)	14,649		56,830		15,160		15,429		36,987		139.7

Net revenue	209,774		255,725		308,660		283,587		352,732		199,966		(43.3	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(20,649	)	(4,802	)	(13,107	)	326		(2,647	)	(23,435	)	—
Effect of consolidation/deconsolidation of certain private equity investee companies	16,809		55		27,358		27,365		30,652		43,669		42.5

Net revenue	205,934		250,978		322,911		311,278		380,737		220,200		(42.2	)

(2) Non-interest expense
Business segment information:
Domestic Retail	63,070		66,347		69,012		80,824		71,285		71,054		(0.3	)
Global Markets	54,573		52,075		53,928		70,646		82,866		84,453		1.9
Global Investment Banking	13,237		13,416		13,164		14,966		16,003		14,733		(7.9	)
Global Merchant Banking	2,326		3,058		2,555		4,214		3,306		3,031		(8.3	)
Asset Management	12,413		12,787		12,382		16,067		14,208		16,005		12.6

Sub Total	145,619		147,683		151,041		186,717		187,668		189,276		0.9
Other	9,706		10,350		13,720		15,621		17,194		38,012		121.1

Non-interest expense	155,325		158,033		164,761		202,338		204,862		227,288		10.9

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—		—		—		—		—
Effect of consolidation/deconsolidation of certain private equity investee companies	17,205		19,858		26,042		25,781		33,041		39,372		19.2

Non-interest expenses	172,530		177,891		190,803		228,119		237,903		266,660		12.1

(3) Income (loss) before income taxes
Business segment information:
Domestic Retail	42,539		28,171		46,870		43,285		50,555		32,206		(36.3	)
Global Markets	14,326		(3,600	)	24,140		23,940		26,043		(67,690	)	—
Global Investment Banking	5,571		16,272		10,924		11,637		20,737		(3,921	)	—
Global Merchant Banking	9,797		41,483		6,694		(5,158	)	40,101		5,427		(86.5	)
Asset Management	5,223		11,067		12,161		8,006		12,199		7,681		(37.0	)

Sub Total	77,456		93,393		100,789		81,710		149,635		(26,297	)	—
Other *	(23,007	)	4,299		43,110		(461	)	(1,765	)	(1,025	)	—

Income (loss) before income taxes	54,449		97,692		143,899		81,249		147,870		(27,322	)	—

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(20,649	)	(4,802	)	(13,107	)	326		(2,647	)	(23,435	)	—
Effect of consolidation/deconsolidation of certain private equity investee companies	(396	)	(19,803	)	1,316		1,584		(2,389	)	4,297		—

Income (loss) before income taxes	33,404		73,087		132,108		83,159		142,834		(46,460	)	—

*	The 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
	June 30, 2006		September 30, 2006		December 31, 2006		March 31, 2007		June 30, 2007(A)		September 30, 2007(B)		(B-A)/(A)
Net gain/loss on trading related to economic hedging transactions	(11,382	)	(14,036	)	(11,865	)	(1,100	)	(14,425	)	2,808		—
Realized gain on investments in equity securities held for operating purposes	140		4,758		12,953		278		2,107		(781	)	—
Equity in earnings of affiliates	3,309		6,136		38,983		4,741		5,105		2,579		(49.5	)
Corporate items	(7,163	)	3,707		(5,900	)	(1,755	)	(9,687	)	(12,252	)	—
Others	(7,911	)	3,734		8,939		(2,625	)	15,135		6,621		(56.3	)

Total	(23,007	)	4,299		43,110		(461	)	(1,765	)	(1,025	)	—

NOMURA HOLDINGS, INC.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

“Commissions/fees received” and “Net gain on trading” consists of the following:

Commissions/fees received


	Millions of yen									% Change		Millions of yen			% Change
	For the three months ended											For the six months ended
	June 30, 2006		September 30, 2006	December 31, 2006	March 31, 2007		June 30, 2007(A)	September 30, 2007(B)		(B-A)/(A)		September 30, 2006(C)		September 30, 2007(D)	(D-C)/(C)
Commissions	79,579		66,063	84,190	107,626		112,962	106,887		(5.4	)	145,642		219,849	51.0

Brokerage Commissions	44,554		32,599	41,951	59,259		64,169	64,655		0.8		77,153		128,824	67.0
Commissions for Distribution of Investment Trust	25,850		23,122	32,960	38,519		39,172	34,223		(12.6	)	48,972		73,395	49.9
Fees from Investment Banking	14,351		26,901	32,317	25,707		29,890	16,176		(45.9	)	41,252		46,066	11.7

Underwriting and Distribution	9,151		20,360	26,123	16,254		10,469	10,434		(0.3	)	29,511		20,903	(29.2	)
M&A / Financial Advisory Fees	5,178		6,360	6,084	9,082		18,187	5,691		(68.7	)	11,538		23,878	106.9
Asset Management and Portfolio Service Fees	29,732		35,476	36,730	44,039		47,311	50,910		7.6		65,208		98,221	50.6

Asset Management Fees	26,179		31,758	32,842	39,470		42,904	46,150		7.6		57,937		89,054	53.7
Total	123,662		128,440	153,237	177,372		190,163	173,973		(8.5	)	252,102		364,136	44.4

Net gain on trading
Merchant Banking	(2,643	)	445	197	(458	)	170	874		414.1		(2,198	)	1,044	—
Equity Trading	31,724		12,684	28,919	64,268		51,696	28,189		(45.5	)	44,408		79,885	79.9
Fixed Income and Other Trading	26,689		34,413	60,036	33,734		47,817	(21,531	)	—		61,102		26,286	(57.0	)

Total	55,770		47,542	89,152	97,544		99,683	7,532		(92.4	)	103,312		107,215	3.8

Consolidated Income Statement Information :

US GAAP Figures


	Millions of yen											% Change		Millions of yen				% Change
	For the three months ended													For the six months ended
	June 30, 2006		September 30, 2006		December 31, 2006		March 31, 2007	June 30, 2007 (A)		September 30, 2007 (B)		(B-A)/(A)		September 30, 2006 (C)		September 30, 2007 (D)		(D-C)/(C)
Revenue:
Commissions	79,579		66,063		84,190		107,626	112,962		106,887		(5.4	)	145,642		219,849		51.0
Fees from investment banking	14,351		26,901		32,317		25,707	29,890		16,176		(45.9	)	41,252		46,066		11.7
Asset management and portfolio service fees	29,732		35,476		36,730		44,039	47,311		50,910		7.6		65,208		98,221		50.6
Net gain on trading	55,770		47,542		89,152		97,544	99,683		7,532		(92.4	)	103,312		107,215		3.8
Gain on private equity investments	9,784		27,511		10,224		71	45,819		17,833		(61.1	)	37,295		63,652		70.7
Interest and dividends	207,860		232,311		262,928		278,245	294,697		246,034		(16.5	)	440,171		540,731		22.8
(Loss) gain on investments in equity securities	(20,509	)	(44	)	(154	)	604	(540	)	(24,216	)	—		(20,553	)	(24,756	)	—
Private equity entities product sales	20,985		21,720		28,778		28,643	36,479		34,348		(5.8	)	42,705		70,827		65.9
Other	4,178		11,734		45,371		6,142	16,400		8,955		(45.4	)	15,912		25,355		59.3

Total revenue	401,730		469,214		589,536		588,621	682,701		464,459		(32.0	)	870,944		1,147,160		31.7
Interest expense	195,796		218,236		266,625		277,343	301,964		244,259		(19.1	)	414,032		546,223		31.9

Net revenue	205,934		250,978		322,911		311,278	380,737		220,200		(42.2	)	456,912		600,937		31.5

Non-interest expenses:
Compensation and benefits	82,768		79,060		86,679		97,429	105,571		97,652		(7.5	)	161,828		203,223		25.6
Commissions and floor brokerage	10,255		10,335		12,004		18,218	23,011		23,340		1.4		20,590		46,351		125.1
Information processing and communications	23,167		27,434		27,296		32,090	29,332		34,872		18.9		50,601		64,204		26.9
Occupancy and related depreciation	14,442		13,743		14,596		18,498	17,442		16,437		(5.8	)	28,185		33,879		20.2
Business development expenses	7,848		9,810		9,234		11,214	9,597		10,464		9.0		17,658		20,061		13.6
Private equity entities cost of goods sold	11,365		11,843		17,417		16,559	22,899		21,219		(7.3	)	23,208		44,118		90.1
Other	22,685		25,666		23,577		34,111	30,051		62,676		108.6		48,351		92,727		91.8

	172,530		177,891		190,803		228,119	237,903		266,660		12.1		350,421		504,563		44.0

Income (loss) before income taxes	33,404		73,087		132,108		83,159	142,834		(46,460	)	—		106,491		96,374		(9.5	)

Business segment information :

Total of business segments


	Millions of yen							% Change		Millions of yen		% Change
	For the three months ended									For the six months ended
	June 30, 2006	September 30, 2006	December 31, 2006	March 31, 2007	June 30, 2007 (A)	September 30, 2007 (B)		(B-A)/(A)		September 30, 2006 (C)	September 30, 2007 (D)	(D-C)/(C)
Revenue:
Commissions	79,579	67,931	84,185	108,649	112,953	106,884		(5.4	)	147,510	219,837	49.0
Fees from investment banking	14,351	26,901	32,317	25,707	29,890	16,176		(45.9	)	41,252	46,066	11.7
Asset management and portfolio service fees	29,732	35,476	36,730	44,039	47,311	50,910		7.6		65,208	98,221	50.6
Net gain on trading	55,770	47,542	89,152	97,544	99,683	7,532		(92.4	)	103,312	107,215	3.8
Gain on private equity investments	15,059	46,206	11,456	759	51,754	7,914		(84.7	)	61,265	59,668	(2.6	)
Interest and dividends	207,837	232,258	262,900	278,188	294,555	245,740		(16.6	)	440,095	540,295	22.8
Gain on investments in equity securities	140	4,758	12,953	278	2,107	(781	)	—		4,898	1,326	(72.9	)
Private equity entities product sales	—	—	—	—	—	—		—		—	—	—
Other	2,996	12,786	45,459	5,625	16,310	9,630		(41.0	)	15,782	25,940	64.4

Total revenue	405,464	473,858	575,152	560,789	654,563	444,005		(32.2	)	879,322	1,098,568	24.9
Interest expense	195,690	218,133	266,492	277,202	301,831	244,039		(19.1	)	413,823	545,870	31.9

Net revenue	209,774	255,725	308,660	283,587	352,732	199,966		(43.3	)	465,499	552,698	18.7

Non-interest expenses:
Compensation and benefits	79,461	75,244	82,760	93,537	100,653	94,369		(6.2	)	154,705	195,022	26.1
Commissions and floor brokerage	9,819	10,119	11,756	18,086	22,684	22,579		(0.5	)	19,938	45,263	127.0
Information processing and communications	23,005	27,326	27,169	31,966	29,188	34,719		18.9		50,331	63,907	27.0
Occupancy and related depreciation	13,409	12,862	13,542	17,564	15,917	15,131		(4.9	)	26,271	31,048	18.2
Business development expenses	7,225	9,196	8,438	10,432	8,810	9,866		12.0		16,421	18,676	13.7
Private equity entities cost of goods sold	—	—	—	—	—	—		—		—	—	—
Other	22,406	23,286	21,096	30,753	27,610	50,624		83.4		45,692	78,234	71.2

	155,325	158,033	164,761	202,338	204,862	227,288		10.9		313,358	432,150	37.9

Income (loss) before income taxes	54,449	97,692	143,899	81,249	147,870	(27,322	)	—		152,141	120,548	(20.8	)

Reconciliation items of the business segment information to the consolidated income statement information:

Effect of consolidation/deconsolidation of private equity investee companies and unrealized loss/gain on investments in equity securities held for operating purposes


	Millions of yen												% Change		Millions of yen				% Change
	For the three months ended														For the six months ended
	June 30, 2006		September 30, 2006		December 31, 2006		March 31, 2007		June 30, 2007 (A)		September 30, 2007 (B)		(B-A)/(A)		September 30, 2006 (C)		September 30, 2007 (D)		(D-C)/(C)
Revenue:
Commissions	—		(1,868	)	5		(1,023	)	9		3		(66.7	)	(1,868	)	12		—
Fees from investment banking	—		—		—		—		—		—		—		—		—		—
Asset management and portfolio service fees	—		—		—		—		—		—		—		—		—		—
Net gain on trading	—		—		—		—		—		—		—		—		—		—
Loss on private equity investments	(5,275	)	(18,695	)	(1,232	)	(688	)	(5,935	)	9,919		—		(23,970	)	3,984		—
Interest and dividends	23		53		28		57		142		294		107.0		76		436		473.7
(Loss) gain on investments in equity securities	(20,649	)	(4,802	)	(13,107	)	326		(2,647	)	(23,435	)	—		(25,451	)	(26,082	)	—
Private equity entities product sales	20,985		21,720		28,778		28,643		36,479		34,348		(5.8	)	42,705		70,827		65.9
Other	1,182		(1,052	)	(88	)	517		90		(675	)	—		130		(585	)	—

Total revenue	(3,734	)	(4,644	)	14,384		27,832		28,138		20,454		(27.3	)	(8,378	)	48,592		—
Interest expense	106		103		133		141		133		220		65.4		209		353		68.9

Net revenue	(3,840	)	(4,747	)	14,251		27,691		28,005		20,234		(27.7	)	(8,587	)	48,239		—

Non-interest expenses:
Compensation and benefits	3,307		3,816		3,919		3,892		4,918		3,283		(33.2	)	7,123		8,201		15.1
Commissions and floor brokerage	436		216		248		132		327		761		132.7		652		1,088		66.9
Information processing and communications	162		108		127		124		144		153		6.3		270		297		10.0
Occupancy and related depreciation	1,033		881		1,054		934		1,525		1,306		(14.4	)	1,914		2,831		47.9
Business development expenses	623		614		796		782		787		598		(24.0	)	1,237		1,385		12.0
Private equity entities cost of goods sold	11,365		11,843		17,417		16,559		22,899		21,219		(7.3	)	23,208		44,118		90.1
Other	279		2,380		2,481		3,358		2,441		12,052		393.7		2,659		14,493		445.1

	17,205		19,858		26,042		25,781		33,041		39,372		19.2		37,063		72,413		95.4

Income (loss) before income taxes	(21,045	)	(24,605	)	(11,791	)	1,910		(5,036	)	(19,138	)	—		(45,650	)	(24,174	)	—

Unconsolidated Financial Information of Major Consolidated Entities

(UNAUDITED)

The unconsolidated financial information, prepared under Japanese GAAP, is presented for the following entities;

-Nomura Holdings, Inc. Financial Information (Parent Company Only)

-Nomura Securities Co., Ltd. Financial Information

*	The amounts are rounded to the nearest million.

NOMURA HOLDINGS, INC.

UNCONSOLIDATED BALANCE SHEET INFORMATION


	(Millions of yen)
	September 30, 2007		March 31, 2007		Increase/ (Decrease)		September 30, 2006
*ASSETS*
Current Assets	2,465,980		2,249,934		216,047		1,987,818

Cash and time deposits	16,398		15,648		750		14,112
Money held in trust	71,333		55,371		15,962		44,289
Short-term loans receivable	2,292,979		2,055,790		237,189		1,872,262
Accounts receivable	61,461		95,123		(33,661	)	32,172
Deferred tax assets	920		1,677		(757	)	5,229
Other current assets	22,895		26,333		(3,437	)	19,757
Allowance for doubtful accounts	(7	)	(8	)	1		(4	)
Fixed Assets	2,106,231		2,188,105		(81,874	)	2,033,886

Tangible fixed assets	54,426		54,163		263		47,572
Intangible assets	129,619		120,035		9,585		95,674
Investments and others	1,922,186		2,013,907		(91,721	)	1,890,640
Investment securities	192,840		218,367		(25,527	)	223,943
Investments in subsidiaries and affiliates (at cost)	1,298,946		1,325,346		(26,400	)	1,191,162
Other securities of subsidiaries and affiliates	19,151		16,426		2,725		12,485
Long-term loans receivable from subsidiaries and affiliates	203,200		317,400		(114,200	)	344,548
Long-term guarantee deposits	54,920		53,650		1,271		54,904
Deferred tax assets	138,190		68,288		69,902		47,943
Other investments	14,971		14,463		508		15,688
Allowance for doubtful accounts	(32	)	(32	)	0		(32	)

TOTAL ASSETS	4,572,212		4,438,039		134,173		4,021,704

*LIABILITIES*
Current liabilities	1,804,839		1,996,756		(191,917	)	1,784,506

Short-term borrowings	1,640,500		1,873,500		(233,000	)	1,684,000
Bond with maturity of less than one year	50,000		—		50,000		—
Collaterals received	77,948		92,920		(14,972	)	83,238
Accrued income taxes	12,905		171		12,734		208
Other current liabilities	23,485		30,165		(6,679	)	17,061

Long-term liabilities	1,222,146		965,955		256,191		698,551

Bonds payable	289,942		279,962		9,980		180,000
Long-term borrowings	928,000		683,000		245,000		516,000
Other long-term liabilities	4,204		2,993		1,211		2,551

TOTAL LIABILITIES	3,026,985		2,962,711		64,274		2,483,057
*NET ASSETS*
Shareholders’ equity	1,489,729		1,407,903		81,826		1,468,724
Common stock	182,800		182,800		—		182,800
Capital reserves	112,504		113,962		(1,458	)	113,885
Additional paid-in capital	112,504		112,504		—		112,504
Other capital reserves	—		1,458		(1,458	)	1,381
Earned surplus	1,269,786		1,188,858		80,928		1,250,869
Earned surplus reserve	81,858		81,858		—		81,858
Other Earned surplus	1,187,928		1,107,000		80,928		1,169,011
Reserve for specified fixed assets	17		19		(1	)	26
General reserve	994,000		994,000		—		994,000
Earned surplus carried forward	193,911		112,981		80,930		174,985
Treasury stock	(75,361	)	(77,717	)	2,355		(78,830	)
Valuation and translation adjustments	49,919		66,201		(16,282	)	69,460
Subscription rights to shares	5,579		1,224		4,355		463

TOTAL NET ASSETS	1,545,227		1,475,328		69,899		1,538,647

TOTAL LIABILITIES AND NET ASSETS	4,572,212		4,438,039		134,173		4,021,704

NOMURA HOLDINGS, INC.

UNCONSOLIDATED INCOME STATEMENT INFORMATION


	(Millions of yen)
	For the six months ended September 30, 2007 (A)		For the six months ended September 30, 2006 (B)		Comparison (A-B)/(B)		For the year ended March 31, 2007
					%
Operating revenue	318,572		250,495		27.2		340,886

Property and equipment fee revenue	46,711		38,433		21.5		86,963
Rent revenue	18,522		17,412		6.4		37,005
Royalty on trademark	11,269		9,599		17.4		21,162
Dividend from subsidiaries and affiliates	228,386		178,272		28.1		178,342
Others	13,684		6,779		101.9		17,414

Operating expenses	81,609		59,110		38.1		135,528

Compensation and benefits	7,117		1,303		446.0		4,656
Rental and maintenance	20,968		19,890		5.4		44,880
Data processing and office supplies	16,221		13,513		20.0		31,022
Depreciation and amortization	21,280		16,964		25.4		36,164
Others	4,331		3,152		37.4		6,722
Interest expenses	11,693		4,289		172.7		12,083

Operating income	236,963		191,385		23.8		205,358

Non-operating income	2,603		1,651		57.7		3,616
Non-operating expenses	917		369		148.8		1,753

Ordinary income	238,649		192,667		23.9		207,221

Special profits	4,182		6,084		(31.3	)	16,327
Reversal of allowance for doubtful accounts	—		1		(100.0	)	—
Gain on sales of investment securities	4,182		6,083		(31.2	)	16,327
Special losses	159,658		2,417		—		67,436
Loss on sales of investment securities	730		5		—		83
Loss on devaluation of investment securities	590		1,187		(50.2	)	1,226
Loss on devaluation of investments in affiliates	156,814		—		—		62,805
Loss on retirement of fixed assets	1,523		1,226		24.3		3,322

Income before income taxes	83,174		196,334		(57.6	)	156,112

Income taxes - current	5,310		6,701		(20.8	)	12,501

Income taxes - deferred	(57,831	)	(94	)	—		(14,623	)

Net Income	135,694		189,727		(28.5	)	158,235

NOMURA HOLDINGS, INC.

UNCONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS


For the six months ended September 30, 2007	(Millions of Yen)
	Shareholders’ equity
		Capital reserve					Earned surplus
								Other Earned surplus
	Common stock	Additional paid-in capital	Other capital reserve		Total capital reserve		Earned surplus reserve	Reserve for specified fixed assets		General reserve	Earned surplus carried forward		Total Earned surplus		Treasury stock		Total Shareholders’ equity
Balance at March 31, 2007	182,800	112,504	1,458		113,962		81,858	19		994,000	112,981		1,188,858		(77,717	)	1,407,903
Cash dividends							—				(54,395	)	(54,395	)			(54,395	)
Reversal of reserve for specified fixed assets								(1	)		1		—				—
Reversal of general reserve										—	—		—				—
Net income											135,694		135,694				135,694
Purchases of treasury stock															(102	)	(102	)
Disposal of treasury stock			(1,458	)	(1,458	)					(371	)	(371	)	2,457		628
Other-net
Change in the term	—	—	(1,458	)	(1,458	)	—	(1	)	—	80,930		80,928		2,355		81,826
Balance at September 30, 2007	182,800	112,504	—		112,504		81,858	17		994,000	193,911		1,269,786		(75,361	)	1,489,729


	Valuation and translation adjustments
	Net unrealized gain on investments		Deferred gains or loss on hedges		Total Valuation and translation adjustments		Subscription rights to shares	Total net assets
Balance at March 31, 2007	67,013		(812	)	66,201		1,224	1,475,328
Cash dividends								(54,395	)
Reversal of reserve for specified fixed assets								—
Reversal of general reserve								—
Net income								135,694
Purchases of treasury stock								(102	)
Disposal of treasury stock								628
Other-net	(16,375	)	93		(16,282	)	4,355	(11,927	)
Change in the term	(16,375	)	93		(16,282	)	4,355	69,899
Balance at September 30, 2007	50,638		(719	)	49,919		5,579	1,545,227

NOMURA HOLDINGS, INC.

UNCONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS


For the six months ended September 30, 2006	(Millions of yen)
	Shareholders’ equity
	Common stock	Capital reserve					Earned surplus									Treasury stock		Total Shareholders’ equity
		Additional paid-in capital	Other capital reserve		Total capital reserve		Earned surplus reserve	Other Earned surplus						Total Earned surplus
		Additional paid-in capital	Other capital reserve		Total capital reserve		Earned surplus reserve	Reserve for specified fixed assets		General reserve		Earned surplus carried forward		Total Earned surplus
Balance at March 31, 2006	182,800	112,504	2,014		114,518		81,858	29		1,020,000		43,131		1,145,018		(80,448	)	1,361,888
Cash dividends (*)							—					(68,620	)	(68,620	)			(68,620	)
Cash dividends							—					(15,257	)	(15,257	)			(15,257	)
Reversal of reserve for specified fixed assets (*)								(4	)			4		—				—
Reversal of general reserve (*)										(26,000	)	26,000		—				—
Net income												189,727		189,727				189,727
Purchases of treasury stock																(81	)	(81	)
Disposal of treasury stock			(633	)	(633	)										1,700		1,066
Other-net
Change in the term	—	—	(633	)	(633	)	—	(4	)	(26,000	)	131,854		105,851		1,618		106,836
Balance at September 30, 2006	182,800	112,504	1,381		113,885		81,858	26		994,000		174,985		1,250,869		(78,830	)	1,468,724


	Valuation and translation adjustments
	Net unrealized gain on investments		Deferred gains or loss on hedges		Total Valuation and translation adjustments		Subscription rights to shares	Total net assets
Balance at March 31, 2006	84,761		—		84,761		—	1,446,649
Cash dividends (*)								(68,620	)
Cash dividends								(15,257	)
Reversal of reserve for specified fixed assets (*)								—
Reversal of general reserve (*)								—
Net income								189,727
Purchases of treasury stock								(81	)
Disposal of treasury stock								1,066
Other-net	(14,769	)	(531	)	(15,301	)	463	(14,838	)
Change in the term	(14,769	)	(531	)	(15,301	)	463	91,998
Balance at September 30, 2006	69,991		(531	)	69,460		463	1,538,647

(*)	Items approved in the Board of Directors held on May 2006.

NOMURA HOLDINGS, INC.

UNCONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS


For the year ended March 31, 2007	(Millions of Yen)
	Shareholders’ equity
	Common stock	Capital reserve					Earned surplus									Treasury stock
		Additional paid-in capital	Other capital reserve		Total capital reserve		Earned surplus reserve	Other Earned surplus						Total Earned surplus
		Additional paid-in capital	Other capital reserve		Total capital reserve		Earned surplus reserve	Reserve for specified fixed assets		General reserve		Earned surplus carried forward		Total Earned surplus				Total Shareholders’ equity
Balance at March 31, 2006	182,800	112,504	2,014		114,518		81,858	29		1,020,000		43,131		1,145,018		(80,448	)	1,361,888
Cash dividends (*)							—					(68,620	)	(68,620	)			(68,620	)
Cash dividends							—					(45,775	)	(45,775	)			(45,775	)
Reversal of reserve for specified fixed assets (*)								(4	)			4		—				—
Reversal of reserve for specified fixed assets								(7	)			7		—				—
Reversal of general reserve (*)										(26,000	)	26,000		—				—
Net income												158,235		158,235				158,235
Purchases of treasury stock																(204	)	(204	)
Disposal of treasury stock			(556	)	(556	)										2,935		2,379
Other-net
Change in the term	—	—	(556	)	(556	)	—	(11	)	(26,000	)	69,851		43,840		2,731		46,015
Balance at March 31, 2007	182,800	112,504	1,458		113,962		81,858	19		994,000		112,981		1,188,858		(77,717	)	1,407,903


	Valuation and translation adjustments
	Net unrealized gain on investments		Deferred gains or loss on hedges		Total Valuation and translation adjustments		Subscription rights to shares	Total net assets
Balance at March 31, 2006	84,761		—		84,761		—	1,446,649
Cash dividends (*)								(68,620	)
Cash dividends								(45,775	)
Reversal of reserve for specified fixed assets (*)								—
Reversal of reserve for specified fixed assets								—
Reversal of general reserve (*)								—
Net income								158,235
Purchases of treasury stock								(204	)
Disposal of treasury stock								2,379
Other-net	(17,748	)	(812	)	(18,560	)	1,224	(17,336	)
Change in the term	(17,748	)	(812	)	(18,560	)	1,224	28,679
Balance at March 31, 2007	67,013		(812	)	66,201		1,224	1,475,328

(*)	Items approved in the Board of Directors held on May 2006.

NOMURA SECURITIES CO., LTD.

UNCONSOLIDATED BALANCE SHEET INFORMATION


	(Millions of yen)
	September 30, 2007		March 31, 2007		Increase/ (Decrease)		September 30, 2006
ASSETS
Current Assets	11,688,801		12,570,606		(881,805	)	11,575,007

Cash and time deposits	94,300		57,301		36,999		52,865
Deposits with exchanges and other segregated cash	693		693		—		761
Trading assets:	4,493,101		5,023,167		(530,066	)	5,341,010
Trading securities	3,994,689		4,603,302		(608,613	)	4,945,548
Derivative contracts	498,412		419,865		78,547		395,463
Net receivables arising from pre-settlement date trades	344,705		—		344,705		331,070
Margin account assets:	262,708		359,294		(96,586	)	346,472
Loans to customers in margin transactions	219,434		290,369		(70,936	)	281,392
Cash collateral to securities finance companies	43,274		68,925		(25,650	)	65,079
Loans with securities as collateral:	6,011,834		6,903,525		(891,691	)	4,943,547
Cash collateral for securities borrowed	5,297,266		5,544,509		(247,243	)	4,240,974
Loans in gensaki transactions	714,568		1,359,016		(644,448	)	702,573
Receivables from customers and others	2,584		1,231		1,353		855
Short-term guarantee deposits	195,148		91,028		104,120		67,404
Short-term loans receivable	139,188		11,026		128,162		363,629
Deferred tax assets	92,100		77,561		14,540		74,299
Other current assets	52,501		45,826		6,675		53,141
Allowance for doubtful accounts	(61	)	(46	)	(15	)	(46	)

Fixed Assets	70,526		61,787		8,740		68,255

Tangible fixed assets	37		43		(5	)	51
Intangible assets	1,819		653		1,165		631
Investments and others	68,671		61,091		7,579		67,574
Investment securities	195		195		—		195
Deferred tax assets	42,369		41,217		1,152		39,379
Other investments	26,999		20,575		6,424		28,751
Allowance for doubtful accounts	(893	)	(896	)	3		(751	)

TOTAL ASSETS	11,759,327		12,632,393		(873,065	)	11,643,262


	(Millions of yen)
	September 30, 2007	March 31, 2007	Increase/ (Decrease)		September 30, 2006
LIABILITIES
Current Liabilities	10,471,784	11,033,512	(561,728	)	10,045,599

Trading liabilities:	3,154,723	2,090,611	1,064,111		2,227,725
Trading securities	2,657,184	1,672,676	984,508		1,871,026
Derivative contracts	497,539	417,936	79,603		356,699
Net payables arising from pre-settlement date trades	—	57,469	(57,469	)	—
Margin account liabilities:	16,802	29,988	(13,185	)	37,865
Borrowings from securities finance companies	5,530	4,385	1,145		14,254
Customer margin sale proceeds	11,272	25,603	(14,330	)	23,611
Borrowings with securities as collateral:	2,603,605	5,497,684	(2,894,079	)	4,464,767
Cash collateral for securities loaned	1,705,375	3,797,819	(2,092,443	)	2,464,715
Borrowings in gensaki transactions	898,230	1,699,865	(801,636	)	2,000,052
Payables to customers and others	220,641	187,155	33,486		346,018
Guarantee deposits received	90,731	119,888	(29,157	)	104,351
Short-term borrowings	3,424,100	2,557,500	866,600		2,285,230
Short-term bonds payable	662,000	266,500	395,500		489,000
Bond due within one year	160,000	60,000	100,000		—
Accrued income taxes	22,377	7,690	14,686		10,417
Accounts payable	52,968	81,724	(28,756	)	22,583
Accrued bonuses for employees	19,300	22,700	(3,400	)	16,000
Other current liabilities	44,538	54,603	(10,065	)	41,643
Long-term Liabilities	440,633	633,608	(192,975	)	730,625

Bonds payable	98,200	198,200	(100,000	)	258,200
Long-term borrowings	277,400	371,900	(94,500	)	411,400
Reserve for retirement benefits	59,527	58,337	1,191		56,778
Other long-term liabilities	5,506	5,172	334		4,246
Statutory Reserves	4,987	4,346	642		3,650

Reserve for securities transactions	4,987	4,346	642		3,650

TOTAL LIABILITIES	10,917,405	11,671,466	(754,061	)	10,779,873

NET ASSETS
Shareholder’s equity	840,581	958,769	(118,188	)	860,401
Common stock	10,000	10,000	—		10,000
Capital reserves	529,579	529,579	—		529,579
Additional paid-in capital	529,579	529,579	—		529,579
Earned surplus	301,002	419,190	(118,188	)	320,822
Other Earned surplus	301,002	419,190	(118,188	)	320,822
General reserve	63,000	63,000	—		63,000
Earned surplus carried forward	238,002	356,190	(118,188	)	257,822
Valuation and translation adjustments	1,341	2,157	(816	)	2,989

TOTAL NET ASSETS	841,922	960,926	(119,004	)	863,389

TOTAL LIABILITIES AND NET ASSETS	11,759,327	12,632,393	(873,065	)	11,643,262

NOMURA SECURITIES CO., LTD.

UNCONSOLIDATED INCOME STATEMENT INFORMATION


	(Millions of yen except percentages)
	For the Six Months Ended September 30, 2007(A)		For the Six Months Ended September 30, 2006(B)	Comparison (A-B)/(B)		For the year ended March 31, 2007

Operating revenue	415,013		316,811	31.0	%	770,358

Commissions	225,385		191,987	17.4		423,247
Net gain on trading	104,050		66,244	57.1		214,667
Net gain on other inventories	5		7	(24.9	)	12
Interest and dividend income	85,573		58,573	46.1		132,431
Interest expenses	57,642		37,502	53.7		85,940

Net operating revenue	357,371		279,309	27.9		684,418

Selling, general and administrative expenses	219,961		194,378	13.2		417,911

Transaction-related expenses	44,446		40,602	9.5		85,092
Compensation and benefits	87,034		74,704	16.5		164,302
Rental and maintenance	24,516		23,046	6.4		48,327
Data processing and office supplies	57,275		49,575	15.5		107,275
Others	6,690		6,451	3.7		12,915

Operating income	137,410		84,932	61.8		266,507

Non-operating income	810		1,209	(33.0	)	2,021
Non-operating expenses	961		906	6.0		1,828

Ordinary income	137,259		85,235	61.0		266,699

Special profits	718		244	194.2		643
Gains due to the exemption from payments of share- based compensation	718		244	194.2		643
Special losses	642		545	17.7		1,241
Reserve for securities transactions	642		545	17.7		1,241

Income before income taxes	137,336		84,934	61.7		266,101

Income taxes - current	69,238		28,169	145.8		115,489

Income taxes - deferred	(15,124	)	4,432	—		(90	)

Net income	83,222		52,333	59.0		150,702

NOMURA SECURITIES CO., LTD.

QUARTERLY INCOME STATEMENT INFORMATION


	(Millions of yen)
	For the Quarter from April 1, 2006 to June 30, 2006	For the Quarter from July 1, 2006 to September 30, 2006		For the Quarter from October 1, 2006 to December 31, 2006	For the Quarter from January 1, 2007 to March 31, 2007		For the Quarter from April 1, 2007 to June 30, 2007	For the Quarter from July 1, 2007 to September 30, 2007
Operating revenue	164,748	152,064		201,682	251,864		252,044	162,970

Commissions	93,501	98,486		110,489	120,771		122,458	102,927
Net gain on trading	38,521	27,722		50,292	98,131		77,896	26,154
Net gain on other inventories	5	2		2	3		2	3
Interest and dividend income	32,720	25,854		40,899	32,959		51,687	33,886
Interest expenses	21,984	15,518		26,782	21,656		34,446	23,196

Net operating revenue	142,764	136,546		174,900	230,208		217,598	139,773

Selling, general and administrative expenses	94,917	99,461		104,528	119,005		111,461	108,501

Transaction-related expenses	19,460	21,142		21,350	23,141		22,627	21,820
Compensation and benefits	38,045	36,659		42,442	47,157		45,227	41,807
Rental and maintenance	11,322	11,723		12,064	13,217		12,081	12,435
Data processing and office supplies	22,515	27,060		25,898	31,802		28,040	29,235
Other	3,575	2,876		2,774	3,689		3,487	3,203

Operating income	47,847	37,085		70,372	111,203		106,137	31,273

Non-operating income	198	1,012		350	461		500	310
Non-operating expenses	445	461		428	493		438	523

Ordinary income	47,599	37,636		70,294	111,170		106,200	31,059

Special profits	37	207		200	199		265	453
Gains due to the exemption from payments of share-based compensation	37	207		200	199		265	453
Special losses	279	266		334	362		316	326
Reserve for securities transactions	279	266		334	362		316	326

Income before income taxes	47,357	37,576		70,160	111,007		106,150	31,186

Income taxes - current	2,772	25,397		18,795	68,525		36,757	32,481

Income taxes - deferred	16,172	(11,740	)	9,476	(13,997	)	5,981	(21,105	)

Net income	28,414	23,920		41,889	56,479		63,412	19,811

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

1. Commission Revenues

(1) Breakdown by Category


	(Millions of yen except percentages)
	Six Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
	September 30, 2007 (A)	September 30, 2006 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
Brokerage commissions	63,807	63,061	1.2	%	133,648

(Stocks)	59,907	59,409	0.8		127,751
Underwriting commissions	13,238	20,352	(35.0	)	49,253

(Stocks)	11,218	18,273	(38.6	)	41,744
(Bonds)	2,020	2,078	(2.8	)	7,487
Distribution commissions	74,718	50,810	47.1		124,040

(Investment trust certificates)	73,347	48,878	50.1		120,333
Other commissions	73,622	57,763	27.5		116,306

(Investment trust certificates)	32,523	24,392	33.3		52,374

Total	225,385	191,987	17.4		423,247

(2) Breakdown by Product


	(Millions of yen except percentages)
	Six Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
	September 30, 2007 (A)	September 30, 2006 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
Stocks	73,991	81,127	(8.8	)%	177,416
Bonds	5,275	6,363	(17.1	)	16,130
Investment trust certificates	107,971	76,657	40.8		177,789
Others	38,148	27,841	37.0		51,912

Total	225,385	191,987	17.4		423,247

2. Net Gain on Trading


	(Millions of yen except percentages)
	Six Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
	September 30, 2007 (A)	September 30, 2006 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
Stocks	22,145	30,886	(28.3	)%	75,445
Bonds and forex	81,905	35,358	131.6		139,222

Total	104,050	66,244	57.1		214,667

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

3. Stock Trading (excluding futures transactions)


	(Millions of shares or yen except per share data and percentages)
	Six Months Ended								Comparison				Year Ended
	September 30, 2007 (A)				September 30, 2006 (B)				(A-B)/(B)(%)				March 31, 2007
	Number of shares		Amount		Number of shares		Amount		Number of shares		Amount		Number of shares		Amount
Total	37,865		57,862,427		33,236		49,230,990		13.9	%	17.5	%	71,790		105,345,875

(Brokerage)	23,244		34,687,469		20,414		29,904,510		13.9		16.0		44,825		64,332,556
(Proprietary Trading)	14,621		23,174,958		12,822		19,326,481		14.0		19.9		26,966		41,013,320

Brokerage / Total	61.4	%	59.9	%	61.4	%	60.7	%					62.4	%	61.1	%

TSE Share	6.1	%	6.9	%	6.3	%	6.9	%					6.4	%	7.0	%

Brokerage Commission per share (yen)	2.55				2.88								2.83

4. Underwriting, Subscription, and Distribution


	(Millions of shares or yen except percentages)
	Six Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
	September 30, 2007 (A)	September 30, 2006 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2007
Underwriting
Stocks (number of shares)	117	144	(18.6	)%	466
(yen amount)	238,847	457,102	(47.7	)	1,119,862
Bonds (face value)	3,575,339	3,171,372	12.7		6,509,676
Investment trust certificates (yen amount)	—	—	—		—
Beneficial interest (face value)	11,800	5,400	118.5		132,868

Subscripition and Distribution*
Stocks (number of shares)	268	149	79.6		1,023
(yen amount)	313,001	493,771	(36.6	)	1,263,720
Bonds (face value)	1,831,253	1,946,185	(5.9	)	3,894,257
Investment trust certificates (yen amount)	11,817,168	9,635,382	22.6		21,430,501
Beneficial interest (face value)	3,000	—	—		52,800

*	Includes secondary offering and private placement.

5. Capital Adequacy Ratio


			(Millions of yen except percentages)
			September 30, 2007		September 30, 2006		March 31, 2007
Tier I		(A)	840,581		860,400		757,358
Tier II	Valuation and translation adjustments		1,340		2,988		2,157
	Statutory reserves		4,987		3,649		4,345
	Allowance for doubtful accounts		60		45		46
	Subordinated debt		310,000		310,000		310,000

	Total	(B)	316,389		316,684		316,549

Illiquid Asset		(C)	166,058		173,241		154,421

Net Capital		(A) + (B) - (C) = (D)	990,912		1,003,843		919,486

Risk	Market risk		48,944		60,749		53,129
	Counterparty risk		250,393		222,886		253,360
	Basic risk		129,199		110,154		116,905
	Total	(E)	428,537		393,790		423,396

Capital Adequacy Ratio		(D)/(E)	231.2	%	254.9	%	217.1	%

News Release

Nomura Reports Second Quarter, First Half Financial Results

Tokyo, October 25, 2007—Nomura Holdings, Inc. today reported consolidated financial results for the second quarter and first half of the fiscal year ending March 31, 2008.

First half summary

Net revenue for the first half was 600.9 billion yen (US$5.2 billion)¹, a 31.5% year-on-year increase. Income before income taxes of 96.4 billion yen (US$838 million) was down 9.5% compared to the prior-year period. Net income increased 4.0% year-on-year to 66.2 billion yen (US$576 million). ROE for the first half was 6.0%.

“While the results for the first half of the year were flat compared with the same period last year due primarily to the US residential mortgage business, the underlying trends of a shift from savings to investment in Japan and increased corporate activity aimed at growth remain as strong as ever,” said Nobuyuki Koga, Nomura President and CEO. “In the second half we will capitalize on these ongoing trends and respond to the changing needs of our customers by increasing our focus on client-centric businesses.”

First half business highlights

•

Domestic Retail: Number of accounts with a balance exceeded 4 million. Net asset inflow into Domestic Client Assets remained strong at over 3 trillion yen. Branch network continued to expand and innovative customer access points such as an online virtual branch and information booths were opened.

•

Global Markets: Instinet performed strongly. Launched gold-price-linked exchange traded fund. Established Asia Asset Finance in Singapore in July.

•

Global Investment Banking: Ranked number one in Equity and Equity-related (Japan) and M&A advisory league tables² for nine months through September.

•

Global Merchant Banking: Investments realized in Japan and Europe contributed to overall revenue.

•

Asset Management: Reached agreement with The Norinchukin Bank and the Development Bank of Japan to establish a joint venture to evaluate and analyze private equity funds. Japan Post Bank (formerly Japan Post) started selling Nomura target-year fund.

US dollar amounts are included solely for the convenience of the reader and have been translated at the rate of 114.97 yen = 1 US dollar, the noon buying rate in New York for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York on September 28, 2007. This translation should not be construed to imply that the yen amounts actually represent, or have been or could be converted into, equivalent amounts in US dollars.

²	Source: Thomson Financial

First half business segment results

Total net revenue from business segments for the first half was 552.7 billion yen (US$4.8 billion), an 18.7% year-on-year increase. Income before income taxes from business segments was 120.5 billion yen (US$1.0 billion), down 20.8% from the same period last year.

Domestic Retail

Income before income taxes increased 17.0% year-on-year to 82.8 billion yen. Although an overall decline in individual equity agency transaction value led to a drop in stock brokerage commissions, strong sales of investment trusts helped boost commissions for distribution of investment trusts and investment trust administration fees and other.

Global Markets

Global Markets reported a pre-tax loss of 41.6 billion yen. In Fixed Income, revenue declined year-on-year as a result of losses related to Nomura’s exit from the US residential mortgage-backed securities (RMBS) business. Trading of credit derivatives and interest rate and currency-linked derivatives mainly in Europe contributed to revenue. In Equity, income before income taxes increased year-on-year as robust equity derivative trading more than offset a decline in revenue from MPO transactions.

Global Investment Banking

Income before income taxes decreased by 23.0% compared with the previous year to 16.8 billion yen. The domestic M&A business remained strong during the period and operations in Europe and Asia contributed to an expansion in earnings. However, income before income taxes declined year-on-year as equity financing by Japanese corporates dropped off significantly and the value of underwriting transactions declined. Despite this, Nomura was able to maintain its high market share during the first half of the year.

Global Merchant Banking

Income before income taxes declined 11.2% from the same period last year to 45.5 billion yen. The sales of Deutsche Annington by Terra Firma as well as Wanbishi Archives and Sliontec by Nomura Principal Finance contributed to revenue.

Asset Management

Income before income taxes increased 22.0% year-on-year to 19.9 billion yen. Assets under management increased 3.3 trillion yen from the end of June to 30.3 trillion yen on the back of growth in investment trusts and the investment advisory business. Asset management fees increased as a result. In investment trusts, the My Story Profit Distribution-type Course B Fund topped 2 trillion yen in assets and sales of balanced funds and newly-launched funds remained firm.

Second quarter summary

In the second quarter, Nomura booked net revenue of 220.2 billion yen (US$1.9 billion), a pre-tax loss of 46.5 billion yen (US$-404 million), and net loss of 10.5 billion yen (US$-91 million). Second quarter results reflect realized and unrealized losses related to Nomura’s exit from the US RMBS business, a restructuring charge related to the company’s focus on core businesses in the US, and unrealized losses on investments in equity securities held for operating purposes.

Second quarter business segment results

Total net revenue from business segments for the second quarter was 200.0 billion yen (US$1.7 billion), a decrease of 43.3% from the prior quarter and 21.8% year-on-year. Pre-tax loss from business segments was 27.3 billion yen (US$-237 million).

Domestic Retail

Income before income taxes declined 36.3% quarter-on-quarter to 32.2 billion yen. Domestic Client Assets declined by 4 trillion yen from the end of June to 84.3 trillion yen due to a downturn in the stock market. Net asset inflow remained strong at 1.7 trillion yen, while the number of accounts with a balance increased to 4.066 million.

Turmoil in the global financial markets caused commissions for distribution of investment trusts to decline by 10.7% from the first quarter to 35.4 billion yen, stock brokerage commissions to decline by 8.2% to 20.4 billion yen, and sales credit to decline by 38.2% to 20.5 billion yen.

Sales of investment trusts remained strong during the second quarter and net asset inflow into investment trusts outstripped the first quarter, while investment trust administration fees and other increased for the eleventh straight quarter.

Global Markets

Global Markets booked a pre-tax loss of 67.7 billion yen. Net revenue in Fixed Income was -40.6 billion yen due to losses related to Nomura’s exit from the US RMBS business. Although order flow for structured bonds weakened, trading of credit derivatives and interest rate and currency-linked derivatives mainly in Europe was robust.

In Equity, net revenue remained around the same level as the prior quarter at 58.1 billion yen. Revenue from MPO transactions and block trades declined, while equity derivative trading was robust and Instinet revenue expanded.

Global Investment Banking

Global Investment Banking reported a pre-tax loss of 3.9 billion yen. The equity finance market for Japanese corporates remained weak during the second quarter and the number of major M&A deals dropped off due to turmoil in the global financial markets. This resulted in a decline in deals contributing to revenue. Despite this, Nomura retained its high market share during the quarter and ranked number one in both the Equity and Equity-related (Japan) and M&A league tables¹ for January to September.

In equity financing, Nomura acted as lead manager in deals by Mitsui Trust Holdings and DA Office Investment Corporation. In M&A, Nomura was financial advisor on the tender offer by Promise to acquire all outstanding shares of Sanyo Shinpan Finance.

Global Merchant Banking

Global Merchant Banking income before income taxes was 5.4 billion yen, a decline of 86.5% from the prior quarter. Realized gains were booked from the sale of Terra Firma investee companies and Sliontec by Nomura Principal Finance. Unrealized losses and gains were also booked due the valuation of certain investee companies at fair value.

Asset Management

Asset Management income before income taxes was 7.7 billion yen, a 37.0% decline from the first quarter. Assets under management remained roughly unchanged from the end of the first quarter at 30.3 trillion yen. Sales of balanced funds such as the My Story Profit Distribution-type Fund, Global Three Assets Balance Fund, and Nomura Global Six Assets Diversified Fund remained strong. In addition, newly-launched funds such as the Nomura Global High Interest Rate Currencies Fund and Nomura Aqua Investment attracted inflows of over 100 billion yen. In the investment advisory business, the balance of advisory contracts continued to increase steadily. However, unrealized losses on pilot funds and seed money for product development were also booked during the quarter.

³	Source: Thomson Financial


		Ends

For further information please contact:


Name	Company	Telephone
Kimiharu Suzuki	Nomura Holdings, Inc.	81-3-3278-0591
Michiyori Fujiwara	Group Communications Dept.

Notes to editors:

Nomura Group

Nomura is a global financial services group dedicated to providing a broad range of financial services for individual, institutional, corporate and government clients. The Group offers a diverse line of competitive products and value-added financial and advisory solutions through its global headquarters in Tokyo, over 150 branches in Japan, and an international network in 30 countries; with regional headquarters in Hong Kong, London, and New York. The Group’s business activities include investment consultation and brokerage services for retail investors in Japan, and, on a global basis, brokerage services, securities underwriting, investment banking advisory services, merchant banking, and asset management. For further information about Nomura please visit our website at www.nomura.com .

First half of fiscal year ending March 31, 2008 (1)

US GAAP Figures

(Billions of yen)

% change

(Billions of yen)

For the six months ended

For the year
ended

September 30, 2007
(2007.4.1 ~
2007.9.30)

(B)

September 30, 2006
(2006.4.1 ~
2006.9.30)

(A)

(B-A)/(A)

March 31, 2007
(2006.4.1 ~
2007.3.31)

Net revenue

600.9

456.9

31.5

1,091.1

Non-interest expenses

504.6

350.4

44.0

769.3

Income (loss) before income taxes

96.4

106.5

(9.5

)

321.8

Income tax expense

30.1

42.8

(29.6

)

145.9

Net income (loss)

66.2

63.7

4.0

175.8

Return on equity (ROE)

6.0

6.1

—

8.3

* In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” income before income taxes and net income from the operations of Millennium Retailing Inc. (one of Nomura Principal Finance’s private equity investee companies, and whose operations were treated as discontinued during the third quarter of the fiscal year ended March 31, 2006, in conjunction with the agreement reached in the third quarter by Nomura Principal Finance to sell its stake in Millennium Retailing Inc.) are separately reported as income from discontinued operations retroactively to the first quarter of the fiscal year ended March 31, 2006. Net revenue and non-interest expenses of such discontinued operations are not shown independently.

Total of business segments

(Billions of yen)

% change

(Billions of yen)

For the six months ended

For the year
ended

September 30, 2007
(2007.4.1 ~
2007.9.30)

(B)

September 30, 2006
(2006.4.1 ~
2006.9.30)

(A)

(B-A)/(A)

March 31, 2007
(2006.4.1 ~
2007.3.31)

Net revenue

552.7

465.5

18.7

1,057.7

Non-interest expense

432.2

313.4

37.9

680.5

Income (loss) before income taxes

120.5

152.1

(20.8

)

377.3

First half of fiscal year ending March 31, 2008 (2)

(1) Net revenue


	(Billions of yen)				% change		(Billions of yen)
	For the six months ended						For the year ended
	September 30, 2007 (2007.4.1 ~ 2007.9.30) (B)		September 30, 2006 (2006.4.1 ~ 2006.9.30) (A)		(B-A)/(A)		March 31, 2007 (2006.4.1 ~ 2007.3.31)
Business segment information:
Domestic Retail	225.1		200.1		12.5		440.1
Global Markets	125.7		117.4		7.1		290.0
Global Investment Banking	47.6		48.5		(1.9	)	99.2
Global Merchant Banking	51.9		56.7		(8.5	)	65.0
Asset Management	50.1		41.5		20.7		90.1

Sub Total	500.3		464.2		7.8		984.4
Other	52.4		1.3		3,788.4		73.3

Net revenue	552.7		465.5		18.7		1,057.7

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for relationship purposes	(26.1	)	(25.5	)	—		(38.2	)
Effect of consolidation/deconsolidation of certain private equity investee companies	74.3		16.9		340.7		71.6

Net revenue	600.9		456.9		31.5		1,091.1


(2) Non-interest expenses

Business segment information:
Domestic Retail	142.3		129.4		10.0		279.3
Global Markets	167.3		106.6		56.9		231.2
Global Investment Banking	30.7		26.7		15.3		54.8
Global Merchant Banking	6.3		5.4		17.7		12.2
Asset Management	30.2		25.2		19.9		53.6

Sub Total	376.9		293.3		28.5		631.1
Other	55.2		20.1		175.3		49.4

Non-interest expense	432.2		313.4		37.9		680.5

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for relationship purposes	—		—		—		—
Effect of consolidation/deconsolidation of certain private equity investee companies	72.4		37.1		95.4		88.9

Non-interest expenses	504.6		350.4		44.0		769.3


(3) Income (loss) before income taxes

Business segment information:
Domestic Retail	82.8		70.7		17.0		160.9
Global Markets	(41.6	)	10.7		—		58.8
Global Investment Banking	16.8		21.8		(23.0	)	44.4
Global Merchant Banking	45.5		51.3		(11.2	)	52.8
Asset Management	19.9		16.3		22.0		36.5

Sub Total	123.3		170.8		(27.8	)	353.3
Other	(2.8	)	(18.7	)	—		23.9

Income (loss) before income taxes	120.5		152.1		(20.8	)	377.3

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for relationship purposes	(26.1	)	(25.5	)	—		(38.2	)
Effect of consolidation/deconsolidation of certain private equity investee companies	1.9		(20.2	)	—		(17.3	)

Income (loss) before income taxes	96.4		106.5		(9.5	)	321.8

*	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”


	(Billions of yen)				% change		(Billions of yen)
	For the six months ended						For the year ended
	September 30, 2007 (2007.4.1 ~ 2007.9.30) (B)		September 30, 2006 (2006.4.1 ~ 2006.9.30) (A)		(B-A)/(A)		March 31, 2007 (2006.4.1 ~ 2007.3.31)
Net gain/loss on trading related to economic hedging transactions	(11.6	)	(25.4	)	—		(38.4	)
Realized gain on investments in equity securities held for relationship purposes	1.3		4.9		—		18.1
Equity in earnings of affiliates	7.7		9.4		(72.9	)	53.2
Corporate items	(21.9	)	(3.5	)	(18.6	)	(11.1	)
Others	21.8		(4.2	)	—		2.1

Total	(2.8	)	(18.7	)	—		23.9

Second quarter of fiscal year ending March 31, 2008 (1)

US GAAP Figures


	(Billions of yen)				% change		(Billions of yen)		% change
	September 30, 2007 (2007.7.1 ~ 2007.9.30) (B)		June 30, 2007 (2007.4.1 ~ 2007.6.30) (A)		(B-A)/(A)		September 30, 2006 (2006.7.1 ~ 2006.9.30) (C)		(B-C)/(C)
Net revenue	220.2		380.7		(42.2	)	251.0		(12.3	)
Non-interest expenses	266.7		237.9		12.1		177.9		49.9

Income (loss) before income taxes	(46.5	)	142.8		—		73.1		—
Income tax expense	(35.9	)	66.1		—		29.6		—

Net income (loss)	(10.5	)	76.7		—		43.5		—

Return on equity (ROE)	D1.9	%	13.7	%	—		8.3	%	—


Total of business segments

	(Billions of yen)				% change		(Billions of yen)		% change
	September 30, 2007 (2007.7.1 ~ 2007.9.30) (B)		June 30, 2007 (2007.4.1 ~ 2007.6.30) (A)		(B-A)/(A)		September 30, 2006 (2006.7.1 ~ 2006.9.30) (C)		(B-C)/(C)
Net revenue	200.0		352.7		(43.3	)	255.7		(21.8	)
Non-interest expenses	227.3		204.9		10.9		158.0		43.8

Income (loss) before income taxes	(27.3	)	147.9		—		97.7		—

Second quarter of fiscal year ending March 31, 2008 (2)

(1) Net revenue


	(Billions of yen)				% change		(Billions of yen)		% change
	September 30, 2007 (2007.7.1 ~ 2007.9.30) (B)		June 30, 2007 (2007.4.1 ~ 2007.6.30) (A)		(B-A)/(A)		September 30, 2006 (2006.7.1 ~ 2006.9.30) (C)		(B-C)/(C)
Business segment information:
Domestic Retail	103.3		121.8		(15.2	)	94.5		9.2
Global Markets	16.8		108.9		(84.6	)	48.5		(65.4	)
Global Investment Banking	10.8		36.7		(70.6	)	29.7		(63.6	)
Global Merchant Banking	8.5		43.4		(80.5	)	44.5		(81.0	)
Asset Management	23.7		26.4		(10.3	)	23.9		(0.7	)

Sub Total	163.0		337.3		(51.7	)	241.1		(32.4	)
Other	37.0		15.4		139.7		14.6		152.5

Net revenue	200.0		352.7		(43.3	)	255.7		(21.8	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(23.4	)	(2.6	)	—		(4.8	)	—
Effect of consolidation/deconsolidation of certain private equity investee companies	43.7		30.7		42.5		0.1		79,298.2

Net revenue	220.2		380.7		(42.2	)	251.0		(12.3	)


(2) Non-interest expenses

Business segment information:
Domestic Retail	71.1		71.3		(0.3	)	66.3		7.1
Global Markets	84.5		82.9		1.9		52.1		62.2
Global Investment Banking	14.7		16.0		(7.9	)	13.4		9.8
Global Merchant Banking	3.0		3.3		(8.3	)	3.1		(0.9	)
Asset Management	16.0		14.2		12.6		12.8		25.2

Sub Total	189.3		187.7		0.9		147.7		28.2
Other	38.0		17.2		121.1		10.4		267.3

Non-interest expenses	227.3		204.9		10.9		158.0		43.8

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	—		—		—		—		—
Effect of consolidation/deconsolidation of certain private equity investee companies	39.4		33.0		19.2		19.9		98.3

Non-interest expenses	266.7		237.9		12.1		177.9		49.9


(3) Income (loss) before income taxes

Business segment information:
Domestic Retail	32.2		50.6		(36.3	)	28.2		14.3
Global Markets	(67.7	)	26.0		—		(3.6	)	—
Global Investment Banking	(3.9	)	20.7		—		16.3		—
Global Merchant Banking	5.4		40.1		(86.5	)	41.5		(86.9	)
Asset Management	7.7		12.2		(37.0	)	11.1		(30.6	)

Sub Total	(26.3	)	149.6		—		93.4		—
Other	(1.0	)	(1.8	)	—		4.3		—

Income (loss) before income taxes	(27.3	)	147.9		—		97.7		—

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes	(23.4	)	(2.6	)	—		(4.8	)	—
Effect of consolidation/deconsolidation of certain private equity investee companies	4.3		(2.4	)	—		(19.8	)	—

Income (loss) before income taxes	(46.5	)	142.8		—		73.1		—

*	Major components

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

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


	(Billions of yen)				% change		(Billions of yen)		% change
	September 30, 2007 (2007.7.1 ~ 2007.9.30) (B)		June 30, 2007 (2007.4.1 ~ 2007.6.30) (A)		(B-A)/(A)		September 30, 2006 (2006.7.1 ~ 2006.9.30) (C)		(B-C)/(C)
Net gain/loss on trading related to economic hedging transactions	2.8		(14.4	)	—		(14.0	)	—
Realized gain (loss) on investments in equity securities held for operating purposes	(0.8	)	2.1		—		4.8		—
Equity in earnings of affiliates	2.6		5.1		(49.5	)	6.1		(58.0	)
Corporate items	(12.3	)	(9.7	)	—		3.7		—
Others	6.6		15.1		(56.3	)	3.7		77.3

Total	(1.0	)	(1.8	)	—		4.3		—

1.	This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2007 Nomura Holdings, Inc. All rights reserved.

Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. Offers to sell, sales, solicitations to buy, or purchases of any securities issued by Nomura or any affiliate thereof may only be made or entered into pursuant to appropriate offering materials or a prospectus prepared and distributed according to the laws, regulations, rules and market practices of the jurisdictions in which such offers or sales may be made.

3.	No part of this document shall be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Nomura.

The information and opinions contained in this document have been obtained from sources believed to be reliable, but no representations or warranty, express or implied, are made that such information is accurate or complete and no responsibility or liability can be accepted by Nomura for errors or omissions or for any losses arising from the use of this information.

This document contains statements that may constitute, and from time to time our management may make “forward-looking statements” within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Any such statements must be read in the context of the offering materials pursuant to which any securities may be offered or sold in the United States. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Important factors that could cause actual results to differ from those in specific forward-looking statements include, without limitation, economic and market conditions, political events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, and the number and timing of transactions.

6.	The consolidated financial information in this document is unaudited.

LOGO

Notification of Impairment of Investments in Subsidiaries and Affiliates in

Unconsolidated Financial Statements

Tokyo, October 25, 2007— In accordance with the Rules on Timely Disclosure of Tokyo Stock Exchange, Nomura Holdings, Inc. today announced that it has recorded an impairment of its investment in the shares of its subsidiary holding company for the Americas in its unconsolidated financial statements for the second quarter of the fiscal year ending March 31, 2008.

The impairment is mainly due to losses booked in relation to Nomura’s exit from the US RMBS business as announced on October 15. The impact for the second quarter of the year ending March 31, 2008, is reflected in Nomura Holdings’ consolidated financial statements for the quarter ended September 30, 2007, announced today.

The impairment shown below is the cumulative amount for the current fiscal year ending March 31, 2008, and includes the 71.7 billion yen impairment recorded in the first quarter.


		(billions of yen, except percentages)
(A) Impairment of Investments in Subsidiaries and Affiliates on Unconsolidated Financial Statements for the year ending March 31, 2008		156.8
(B) Shareholders’ equity as of March 31, 2007 (A)/(B)		1,475.3 (10.6%)
(C) Ordinary income for the fiscal year ended March 31, 2007 (A)/(C)		207.2 (75.7%)
(D) Net income for the fiscal year ended March 31, 2007 (A)/(D)		158.2 (99.1%)


		Ends

For further information please contact:


Name	Company	Telephone
Kimiharu Suzuki	Nomura Holdings, Inc.	81-3-3278-0591
Michiyori Fujiwara	Group Corporate Communications Dept.

Notes to editors:

Nomura Group