Form 6-K
Table of Contents

 

 

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 April 2008.

 

 

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-            .

 

 

 


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Information furnished on this form:

EXHIBIT

Exhibit Number

 

1.

  Consolidated Results of Operations (US GAAP), Fourth quarter, year ended March 2008


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    NOMURA HOLDINGS, INC.
Date: April 28, 2008     By:   /s/ Toshio Hirota
       

Toshio Hirota

Executive Managing Director


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Consolidated Results of Operations

(US GAAP)

Fourth quarter, year ended March 2008

Nomura Holdings, Inc.

7 April 2008


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1. This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2008 Nomura Holdings, Inc. All rights reserved.

2. 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.

4. 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.

5. 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.

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Outline

Presentation Introduction (P4)

FY2008.3 Results Key Points (P5)

FY2008.3 Financial Highlights (P6)

Main Factors of Fourth Quarter Loss before Income Taxes (P7)

Monoline-related Exposure (P8)

Monoline Exposure and Counterparty Risk and other Reserves (Provisions) (P9)

US Mortgage Finance Business (P10) Balance Sheet and Shareholders’ Equity Ratio (Total Shareholders’ Equity/Total Assets) (P11)

Business Segment Net Revenue and Income (Loss) before Income Taxes (P12)

Financial Supplement

FY2008.3 Business Segment Highlights (P14)

Fourth Quarter Business Segment Highlights (P15)

Business Segment Results (P16-P17, P19-P22)

Example of Synthetic CDO Business (P18)

Non-interest Expenses (Business Segment Total) (P23)

Dividend Policy (P24)

Net Income (Loss) and ROE (P25)

Consolidated Income (Annually/Quarterly) (P26-P27)

Main Revenue Items (Annually/Quarterly) (P28-P29)

Adjustment of Consolidated Results and Segment Results:

Income (Loss) before Income Taxes (Annually/Quarterly) (P30

- P31)

Consolidated Balance Sheet (P32)

Domestic Retail Related Data (P33 – P36)

Global Merchant Banking Related Data (P37)

Asset Management Related Data (P38 – P40)

Fourth Quarter Achievements (P41)

League Tables (P42)

Market Share Data (P43)

Value at Risk (P44)

Number of Employees (P45)

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Introduction

New Management Lineup from April 1, 2008 Keywords

- “Create Change”, “World Class”, “Speed”

Top Management Directly Engaged in Risk Management Moved decisively to limit future losses

- Made credit provisions at end of March to fully cover exposure to monoline insurers that had seen a marked decline in credit rating

- Reduced US CMBS-related business exposure

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FY2008.3 Results Key Points

FY2008.3 Pre-tax Loss of 64.6 Billion Yen

Main Causes of Fourth Quarter Business Losses

Loss of approx. 132 billion yen due mainly to increased credit provisions

for exposure to monoline insurers

Unrealized loss of approx. 22 billion yen in US CMBS-related business

Stable Financial and Revenue Base

Shareholders’ equity of 1.99 trillion yen as at March 31, 2008

FY2008.3 net loss represents approx. 3% of shareholders’ equity,

therefore having only a limited impact; Reduced balance sheet,

Shareholders’ equity ratio increased from 6.1% to 7.6%

Domestic Retail, Global Merchant Banking, and Asset Management

booked third straight year of strong revenue

5

 

 


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FY2008.3 Financial Highlights

 

FY2007.3 FY2008.3

 

Net revenue 1,091.1 787.3

 

Income (loss) before income taxes 321.8 -64.6

 

Net income (loss) 175.8 -67.8

 

ROE (%) 8.3% -3.3%

 

Total shareholders’ equity 2,185.9 1,988.1

 

(billions of yen)

FY2007.3 FY2008.3

 

4Q 1Q 2Q 3Q 4Q

311.3 344.8 176.7 244.3 21.5

83.2 139.9 -50.6 44.4 -198.3

33.1 75.9 -11.7 21.8 -153.9

6.0% 13.6%-3.9% -

2,185.9 2,283.8 2,232.6 2,233.0 1,988.1

 

Note: The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.

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Main Factors of Fourth Quarter Loss before Income Taxes

 

Loss before Income Main Factors Taxes

 

(billions of yen)

 

198

 

132 Monoline-related losses

 

22 US CMBS-related business losses 18 JAFCO writedown

 

17 Unrealized loss on investments in equity securities held for operating purposes

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Monoline-related Exposure

(millions of US$)

Monoline Insurers Counterparty

2007/12/31 by Credit Rating* Gross Exposure Risk Reserves Net Exposure CDS Protection (No. of companies) and other Adjustments

AAA (5) $731 $93 $637 $329 AA (1) $65 $1 $64 $39 A (0)-Total $795 $94 $701 $368

Other (1) $194 $194 -

(Provisions completed)

Monoline Insurers Counterparty

2008/3/31 by Credit Rating* Gross Exposure Risk Reserves Net Exposure CDS Protection (No. of companies) and other Adjustments

AAA (3) $903 $160 $743 $416 AA (1) $188 $41 $147 $177 A (1) $16 — $16 -Total $1,107 $201 $907 $593

Others (2) $1,278 $1,278 — $153

(Provisions completed)

* Based on S&P or Moody’s depending on which rating is lower

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Monoline Exposure and Counterparty Risk and other Reserves (Provision)

Monolines rated A or higher (millions of US$)

End of 3Q

Gross exposure

Net exposure to monolines 701 rated A or higher

795 Provision 94

Exposure increased due to worsening credit market

Gross exposure to monolines Full amount provision for rated Z Co. and additional A or higher provision for increased exposure 1,107

Provision 201

Z Co. Z Co. Gross exposure Provision

By making provisions for the full amount and other arrangements, we have prevented any impact from future changes in exposure

After provisions for Z Co.

Gross exposure Net exposure to monolines 907 rated A or higher

1,107

Provision 201

Current response and future policy

Provision ratio: 18% CDS: 593 million US dollars Respond in accordance with creditworthiness of each company

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US Mortgage Finance Business

US RMBS-related US CMBS-related

(billions of yen) (billions of yen)

300 350 266.0 300 287.5

250

250

200 212.5

200

168.4

150

150 131.1

100

100 47.8

50 50 7.5 0

0 0

(billions of yen) (billions of yen)

FY 2008.3 FY 2008.3

1Q 2Q 3Q 4Q Exposure 1Q 2Q 3Q 4Q

Exposure 266.0 47.8 7.5 0.0 Commercial mortgages 278.7 210.6 104.1 83.2

Securitized products 2.1 1.6 1.9 1.1

Secondary bonds 6.7 0.3 62.4 46.8 Total 287.5 212.5 168.4 131.1

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Balance Sheet and Shareholders’ Equity Ratio (Total Shareholders’

Equity/Total Assets)

Total Assets (1hs) Shareholders’ Equity Ratio (rhs)

(trillions of yen)

40 8.0%

35 7.0%

30 6.0%

25 5.0%

20 4.0%

15 3.0%

10 2.0%

5 1.0%

0 0.0%

Mar. 2007 Mar. 2008

*Shareholders’ Equity Ratio = (Total Shareholders’ Equity / Total Assets) X 100

Issued 120 billion yen in subordinated bonds Borrow subordinated loans from leading Japanese financial institutions

Raised subordinated debt to ensure more efficient use of capital and improve ROE

Lay foundation for proactive investment aimed at future growth

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Business Segment Net Revenue and Income (Loss) before Income Taxes

(billions of yen) Domestic Retail

500

446.5 440.1 402.0 400

305.8 304.4 300 249.3

200

100

0

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

(billions of yen) Global Markets

500

400

371.1

284.1

290.0

300

236.0

243.1

200

95.6

100

0

-100

-200

-300

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

(billions of yen) Global Investment

120

99.7 99.2 100 83.1

80 75.4 69.1 70.9 60

40

20

0

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

(billions of yen) Global Merchant Banking

80

68.2

70 65.0 64.8 60 50 40 30 20 10.7 7.3 10 0 -10 -6.6

-20

FY2003.3

FY2004.3

FY2005.3

FY2006.3

FY2007.3

FY2008.3

(billions of yen) Asset Management

100

90.1 90.6 90 80

70 65.8 60 49.0 50 40.4 40.3 40 30 20 10 0

FY2003.3

FY2004.3

FY2005.3

FY2006.3

FY2007.3

FY2008.3

Net Revenue

Asset Management

Global Merchant Banking

Global Investment Banking

Global Markets

Domestic Retail

Income (Loss) before Income Taxes

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Financial Supplement

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FY2008.3 Business Segment Highlights

Net revenue from all business segments was 837.4 billion yen (-20.8% YoY), income before income taxes was -14.4 billion yen.

Domestic Retail

Domestic Client Asset net asset inflow remained firm

Global Markets

Trading revenue declined due to exit from US RMBS-related business and increased credit provisions for exposure to monoline insurers

Global Investment Banking

M&A-related business was strong, but there was a marked decline in the overall market for equity finance

Global Merchant Banking

Continued with exits, income before income taxes remained high

Asset Management

Third straight year of net asset inflows

Net Revenue

(billions of yen)

1,200 1,059.8

8.4 1,057.7

65.8 73.3 68.2 90.1

900 99.7 837.4

65.0

729.5 709.0

99.2 101.3 602.8 17.8 29.8 40.3 90.6 10.7 49.0 14.7 70.9 7.3 371.1 64.8 600 40.4 75.4 290.0 69.1 83.1 284.1 243.1 95.6 236.0

300

446.5 440.1 402.0 305.8 304.4 249.3

0

-6.6

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Income (Loss) before Income Taxes

(billions of yen)

600

452.0 500

20.6 55.4

377.3 400

51.5

23.9 36.5 300 52.8

225.5 157.7 -14.4

7.0 0.5 187.6 44.4

17.2 0.5 31.0 200 10.1 10.0 58.8

89.2 53.3 4.0 29.2 120.8 22.8 12.8 60.2 100 197.2 93.6 160.9 122.3 79.5 81.2 35.7

0

-15.3 -3.0 -30.5 -41.6

-100 -226.2

-200

-17.6

-300

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Reference:

• Domestic Retail :P16

• Global Markets :P17

• Global Investment Banking :P19

• Global Merchant Banking :P20

• Asset Management :P21

• Segment “Other” :P22

• Adjustment of Consolidated Results and Segment Results : Income (Loss) before Income Taxes (Annually) :P30

Other

Asset Management

Global Merchant Banking

Global Investment Banking

Global Markets

Domestic Retail

Note: The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide–Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.

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Fourth Quarter Business Segment Highlights

Net revenue from all business segments for the fourth quarter was 38.5 billion yen ( -84.7% QoQ, -86.4% YoY), and income before income taxes was -181.4 billion yen.

Net Revenue

(billions of yen)

400

347.4

10.1

283.6 26.4 300

15.2 43.4 251.4 24.1 36.7 15.9 26.6 200.1 23.2

20.8 38.5 200

94.6 108.9 37.2 38.0 23.7 103.2 10.8 8.5 17.3 100 16.8 23.1 14.8 124.1 121.8 103.3 98.4 78.5 -0.9

0

-10.2

-133.3

-100

-200

FY2007.3 FY2008.3

4Q 1Q 2Q 3Q 4Q

Income (Loss) before Income Taxes

(billions of yen)

200

142.6 150

12.2 40.1

100 81.2

8.0 20.7 51.5 11.6 8.6 26.0 -27.2

50 23.9 5.7 -181.4

7.7 24.4

5.4 2.5 43.3 50.6 20.1 32.2 28.5 0.2

0 11.1 -5.2 -12.3 -0.5 -7.0 -3.4 -67.7

-50

-3.9 -0.9

-100 -208.9

-150

-200

-6.3

FY2007.3 FY2008.3

4Q 1Q 2Q 3Q 4Q

Reference:

• Domestic Retail :P16

• Global Markets :P17

• Global Investment Banking :P19

• Global Merchant Banking :P20

• Asset Management :P21

• Segment “Other” :P22

• Adjustment of Consolidated Results and Segment Results: Income (Loss) before Income Taxes (Quarter):P31

Other

Asset Management

Global Merchant Banking

Global Investment Banking

Global Markets

Domestic Retail

Note: Reclassifications- The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide—Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” from the first quarter of the year ended March 31, 2008

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Domestic Retail: Domestic Client Asset net asset inflow remained firm

Net revenue was 78.5 billion yen (-20.2% QoQ, -36.7% YoY). Income before income taxes was 11.1 billion yen (-61.2% QoQ, -74.5% YoY).

Domestic Client Assets declined by 9.1 trillion yen from the end of December to 72.2 trillion yen at the end of March due to the stock market decline.

Net asset inflow was 700 billion yen. The number of accounts with balance increased by 48,000* to 4.17 million accounts.

Commissions for distribution of investment trusts** declined 42.4% QoQ to 18.1 billion yen; stock brokerage commissions decreased 25.5% QoQ to 13.9 billion yen.

* From end of prior quarter

** Nomura Securities (P33)

Net Revenue and Income (Loss) before Income Taxes

Full Year

(billions of yen)

500

446.5 440.1

Net interest revenue 402.0 400

Investment trust administration fees 305.8 304.4 and other 300 Fees from investment 249.3 banking

197.2

Sales credit 200 160.9

122.3

Commissions 81.2 79.5 100 35.7

Income before income taxes

0

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 YoY

Commissions 104.1 155.2 174.0 269.4 251.4 225.9 -10.2% Sales credit 95.7 97.8 73.7 109.0 96.8 94.2 -2.7%

Fees from investment banking 15.0 26.1 24.5 26.4 24.0 14.9 -37.7%

Investment trust administration fees and other 32.0 21.8 26.1 34.4 47.5 59.7 25.7%

Net interest revenue 2.4 4.9 6.1 7.4 20.4 7.3 -64.0%

Net revenue 249.3 305.8 304.4 446.5 440.1 402.0 -8.7% Non-interest expenses 213.6 226.2 223.2 249.3 279.3 279.7 0.2%

Income before income taxes 35.7 79.5 81.2 197.2 160.9 122.3 -24.0%

Quarter

(billions of yen)

150

124.1 121.8

103.3

98.4

100 78.5

50.6

43.3 50 32.2 28.5

11.1

0

FY2007.3 FY2008.3

QoQ YoY

4Q 1Q 2Q 3Q 4Q

73.9 68.4 62.4 55.8 39.2 -29.8% -47.0% 26.2 33.2 20.5 21.6 18.8 -12.9% -28.0%

5.1 3.4 3.3 3.6 4.6 28.2% -10.0%

13.4 14.7 15.3 15.5 14.2 -8.9% 5.8%

5.5 2.2 1.7 1.8 1.7 -7.6% -69.5%

124.1 121.8 103.3 98.4 78.5 -20.2% -36.7% 80.8 71.3 71.1 69.9 67.5 -3.5% -16.5% 43.3 50.6 32.2 28.5 11.1 -61.2% -74.5%

Reference:

• Retail stock brokerage commissions, commissions for distribution of investment trusts, domestic distribution volume of investment trusts, retail foreign currency bond sales, etc: P33

• Domestic Client Assets: P34

• Domestic Client Assets Net Asset Inflow: P35

• Number of Accounts: P36

•Fourth Quarter Achievements: P41

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Global Markets: Booked significant loss due to dislocation in credit markets

Net revenue was -133.3 billion yen. Income before income taxes was -208.9 billion yen.

Fixed Income made increased credit provisions related to monoline insurers and booked an unrealized loss in the US CMBS-related business.In Equity, although trading was weak, revenue at Instinet was robust.

Net Revenue and Income (Loss) before Income Taxes

Full Year

(billions of yen)

400 371.1

284.1 290.0 300 236.0 243.1

95.6 200 100 157.7 93.6 120.8 58.8

Other 0 60.2 -100

Equity

-200

Fixed Income

-300 -226.2

Income before income taxes

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 YoY

Fixed Income 154.0 174.0 119.8 173.8 123.1 -119.9 -

Equity 82.0 110.2 90.2 168.5 147.9 206.0 39.3%

Other 0.0 0.0 33.1 28.8 19.1 9.5 -50.2%

Net revenue 236.0 284.1 243.1 371.1 290.0 95.6 -67.0%

Non-interest expenses 142.4 163.3 182.9 213.4 231.2 321.8 39.2%

Income before income taxes 93.6 120.8 60.2 157.7 58.8 -226.2 -

Quarter

(billions of yen)

160 108.9 103.2 94.6 120

Reference: 16.8 80

• Fourth Quarter

40 Achievements: P41

0

• Market Share Data:

23.9 26.0 24.4 P43 -40

• Value at Risk : P44

-67.7 -80 -120 -160 -133.3 -200 -208.9

FY2007.3 FY2008.3

QoQ YoY

4Q 1Q 2Q 3Q 4Q

21.8 42.4 -40.6 32.3 -153.9 - -

66.6 61.9 58.1 68.0 18.0 -73.6% -73.0%

6.2 4.6 -0.7 2.9 2.7 -9.8% -57.5%

94.6 108.9 16.8 103.2 -133.3 - -

70.6 82.9 84.5 78.8 75.6 -4.0% 7.1%

23.9 26.0 -67.7 24.4 -208.9 - -

Notes: 1. In April 2004, Fixed Income, Equity and certain functions of Investment Banking were consolidated to create Global Markets.

2. Figures up to FY2004.3 are the total of Fixed Income and Equity and differ slightly in composition.

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Example of Synthetic CDO Business

Nomura

Market

Premium

CDS transaction

Payment on credit event

Reference asset credit risk (CDS)

Reference assets

Investment grade iTraxx*

High-grade CMBX** components

Nomura

Repackage CDS

Repackaged reference asset credit risk (Tranche CDS)

Tranches Super Senior

AAA

AA

A BBB BB

B

Equity

Tranche CDS

Tranche CDS

Monoline Insurer

SPC

CDO origination

Sell

Investors

* iTraxx: Corporate CDS basket indexes

** CMBX: US CMBS indexes

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Global Investment Banking: Top ranking in Equity and Equity-related and M&A Advisory league

tables*

Net revenue was 14.8 billion yen (-28.7% QoQ, -44.4% YoY). Income before income taxes was 200 million yen (-95.9% QoQ, -98.0% YoY).

In equity finance, we acted as lead manager on a convertible bond issue for recapitalization by Yamada Denki and the IPO of Seven Bank.

In M&A, we acted as financial advisor on a tender offer by Fujifilm Holdings for Toyama Chemical.

*Apr. 2007 – Mar.2008 (Japan related), Thomson Financial

Net Revenue and Income (Loss) before Income Taxes

Full Year

(billions of yen)

160

120

99.7 99.2

83.1

80 75.4 69.1 70.9

51.5

44.4 29.2

Net revenue 40 22.8 12.8 17.2

Incom e before incom e taxes 0

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 YoY

Net revenue 69.1 70.9 75.4 99.7 99.2 83.1 -16.2% Non-interest expenses 56.4 53.7 46.2 48.1 54.8 60.3 10.1%

Income before income taxes 12.8 17.2 29.2 51.5 44.4 22.8 -48.7%

Quarter

(billions of yen)

40 36.7

30 26.6 20.7 20.8 20 14.8 11.6 10.8 10

5.7 0.2 0

-3.9

Reference:

• Fourth Quarter Achievements: P41

• League Tables: P42

• Market Share Data: P43

FY2007.3 FY2008.3

QoQ YoY

4Q 1Q 2Q 3Q 4Q

26.6 36.7 10.8 20.8 14.8 -28.7% -44.4% 15.0 16.0 14.7 15.0 14.6 -3.1% -2.7% 11.6 20.7 -3.9 5.7 0.2 -95.9% -98.0%

Note: In April 2004, Fixed Income, Equity and certain functions of Investment Banking were consolidated to create Global Markets.

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Global Merchant Banking

Net revenue was 23.1 billion yen. Income before income taxes was 20.1 billion yen.

Unrealized gain booked due to valuation at fair value of Annington, a Terra Firma investee company in Europe.

Net Revenue and Income (Loss) before Income Taxes

Full Year

(billions of yen)

80

68.2

65.0 64.8

60 55.4 52.8 53.3

40

20

Net revenue 10.7

7.3 0.5

0

Income before income taxes -6.6 -3.0 -15.3

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 YoY

Net revenue -6.6 10.7 7.3 68.2 65.0 64.8 -0.3% Non-interest expenses 8.6 10.2 10.4 12.8 12.2 11.5 -5.6%

Income before income taxes -15.3 0.5 -3.0 55.4 52.8 53.3 1.0%

Quarter

(billions of yen)

60

43.4

45

40.1 30 23.1

20.1 15 8.5

-0.9

0

5.4 -10.2 -5.2 -12.3

FY2007.3 FY2008.3

QoQ YoY

4Q 1Q 2Q 3Q 4Q

-0.9 43.4 8.5 -10.2 23.1 - -

4.2 3.3 3.0 2.1 3.0 40.7% -28.8%

-5.2 40.1 5.4 -12.3 20.1 - -

Reference:

Business exposure: P37

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Asset Management

Net revenue was 17.3 billion yen (-25.3% QoQ, -28.0% YoY). Income before income taxes was 2.5 billion yen (-71.2% QoQ, -68.9% YoY).

Total assets under management declined by 3.9 trillion yen from the end of December to 25.8 trillion yen*.

Sales of Nomura New Global High Interest Rate Currencies Fund and newly-launched Nomura African Stock Investment Fund were strong.

*As of end of March 2008

Net Revenue and Income (Loss) before Income Taxes

Full Year

(billions of yen)

100

90.1 90.6

80

65.8

60

49.0

40.4 40.3 36.5

40 31.0

Net revenue

20.6 20

Income before 10.0 income taxes 4.0 0.5 0

Quarter

(billions of yen)

30 26.4 24.1 23.7 23.2 25

20 17.3

12.2 15 8.6 8.0 7.7 10

2.5 5

0

Reference:

Assets Under Management: P38,39

Asset Management Related Data: P40

FY2003.4 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 YoY

Net revenue 40.4 40.3 49.0 65.8 90.1 90.6 0.6% Non-interest expenses 36.3 39.8 39.0 45.2 53.6 59.7 11.2%

Income before income taxes 4.0 0.5 10.0 20.6 36.5 31.0 -15.0%

FY2007.3 FY2008.3

QoQ YoY

4Q 1Q 2Q 3Q 4Q

24.1 26.4 23.7 23.2 17.3 -25.3% -28.0% 16.1 14.2 16.0 14.6 14.8 1.7% -7.6%

8.0 12.2 7.7 8.6 2.5 -71.2% -68.9%

Note: In January 2006, certain functions of Other business were integrated into Asset Management. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.

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Segment “Other”

“Other” income before income taxes was -6.3 billion yen.

Net Revenue and Income (Loss) before Income Taxes

Full Year

(billions of yen) Includes 34bn yen 60 related to Nomura Real Estate Holdings 40 IPO

23.9

20 10.1 7.0

0

-20 -17.6 -40 -30.5 -41.6

Quarter

(billions of yen)

60 40 20

0

-0.5 -0.9 JAFCO

-3.4 -6.3 impairment of

-7.0

-20 17.6bn yen

-40

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 Y o Y

Net gain/loss on trading related to

-6.2 -12.8 -9.7 -64.8 -38.4 -9.7 - economic hedging transactions Realized gain on investments in equity

1.7 1.2 6.9 8.4 18.1 1.5 -91.9% securities held for operating purposes Equity in earnings of affiliates -3.8 8.5 7.3 27.8 53.2 4.7 -91.1%

Corporate items -9.4 -10.7 4.5 -7.4 -11.1 -13.4 -Others* -23.9 20.7 1.0 5.4 2.1 -0.7 -

Income before income taxes -41.6 7.0 10.1 -30.5 23.9 -17.6 -

FY2007.3 FY2008.3

Q o Q Y o Y

4Q 1Q 2Q 3Q 4Q

-1.1 -14.4 2.8 0.4 1.5 315.7% -

0.3 2.1 -0.8 0.1 0.0 -90.4% -95.3%

4.7 5.1 2.6 -5.2 2.3 - -51.4% -1.8 -9.7 -12.3 -11.8 20.3 - - -2.6 9.9 6.8 13.1 -30.4 - - -0.5 -7.0 -0.9 -3.4 -6.3 - -

*Businesses not included in the five business divisions (Joinvest Securities, Nomura Trust & Banking, etc.) are included in Others. FY2003.3 includes 21.2 billion yen of impairment loss on investment of affiliates.

Note: Reclassifications- The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide— Investment 22 Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” from the first quarter of the year March 31, 2008.


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Non-interest Expenses (Business Segment Total)

Non-interest expenses (business segment total) were 219.8 billion yen (up 10.0% QoQ).

Full Year Quarter

(billions of yen) (billions of yen)

1,000 300

851.8

Other 250

800 227.3

219.8 680.5 202.3 204.9

Business 199.9 development 607.8 200 expenses 600 Occupancy and related depreciation 150 Information processing and

400 communications

Commissions and 100 floor brokerage

Compensation and benefits 200

50

0 0

Compensation and Benefits

Full Year Quarter

(billions of yen)

400

366.8 350 331.0 311.3

300 Fixed-type compensation and benefits

192.1

250 Variable-type compensation and 173.4 benefits

160.7

200

150

100.7

93.5 94.4 93.4

100 78.4

174.7

150.5

 

157.6 47.9

47.9 48.6 47.8

47.8

50

45.6 52.8 45.8 45.6

30.6

0

FY2007.3

 

FY2008.3 FY2006.3 FY2007.3 FY2008.3

4Q 1Q 2Q 3Q 4Q

FY2006.3 FY2007.3 FY2008.3

Compensation and benefits 311.3 331.0 366.8

Commissions and floor brokerage 31.4 49.8 90.2

Information processing and communications 89.1 109.5 135.0

Occupancy and related depreciation 50.8 57.4 64.8

Business development expenses 30.6 35.3 38.1

Other 94.7 97.5 156.9 Total 607.8 680.5 851.8

FY2007.3 FY2008.3

QoQ

4Q 1Q 2Q 3Q 4Q

93.5 100.7 94.4 93.4 78.4 -16.0% 18.1 22.7 22.6 20.4 24.5 20.3% 32.0 29.2 34.7 33.9 37.2 9.9% 17.6 15.9 15.1 14.3 19.5 37.0% 10.4 8.8 9.9 9.5 10.0 5.8% 30.8 27.6 50.6 28.5 50.1 75.7% 202.3 204.9 227.3 199.9 219.8 10.0%

Reference:

• Number of Employees: P45

Note: Reclassifications- The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide—Investment

Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” from the first quarter of the year ended March 31, 2008.

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Dividend Policy

Target Dividend Minimum level of cash dividend, paid quarterly since FY2007.3

Additional Payout When a sufficient level of profit is achieved, an additional payout is added to the fiscal year-end dividend taking into consideration a payout ratio of over 30%

Full-year Consolidated Additional payout Payout Ratio Over 30% Target dividend

(based on DOE of 3%)

Recent Dividends (per (yen)

share) 1Q 2Q 3Q 4Q Total Payout Ratio FY2007.3 Target Dividend 8 8 8 8

44 48%

Additional Payout- - - 12 FY2008.3 Target Dividend 8.5 8.5 8.5 8.5

34 +-a

Additional Payout- - - 0 FY2009.3 Target Dividend 8.5 8.5 8.5 8.5 34 -

Additional Payout- - -a

Total Return Ratio*(billions of yen)

FY2006.3 FY2007.3 FY2008.3 Target Dividend 46 61 65 Additional Payout 46

23 0 Share Buyback ** 49 0 3

Total 141 84 67

Total Return Ratio 46% 48% -

* Total Return Ratio = (Total dividend amount + Share buyback amount) / Net income

** Excludes purchase of less-than-a-full-unit shares

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Net Income (Loss) and ROE

Full Year

(billions of yen)

400 20%

15.5%

300 15%

10.1%

304.3

200 8.3% 10% 7.4% 172.3 5.2% 175.8 100 5%

Net income (loss) 119.9 94.7 (lhs)

ROE (rhs) 0 0% -67.8

-3.3%

-100 -5%

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Net income (loss) (lhs) 119.9 172.3 94.7 304.3 175.8 -67.8 ROE (rhs) 7.4% 10.1% 5.2% 15.5% 8.3% -3.3%

Basic net income per share (yen) 61.26 88.82 48.80 159.02 92.25 -35.55

Shareholders’ equity per share (yen) 846.40 919.67 962.48 1,083.19 1,146.23 1,042.60

Note: The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide—Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.

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Consolidated Income (Annually)

(billions of yen)

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Revenue

Commissions 141.6 210.2 222.0 356.3 337.5 404.7

Fees from investment banking 81.8 87.0 92.3 108.8 99.3 85.1 Asset management and portfolio service fees 79.3 66.2 78.5 102.7 146.0 189.7

Net gain on trading 172.3 229.0 201.7 304.2 290.0 61.7

Gain (loss) on private equity investments -14.4 13.1 7.7 12.3 47.6 76.5

Interest and dividends 368.7 343.3 401.4 693.8 981.3 796.5

Gain (loss) on investments in equity securities -41.3 55.9 15.3 67.7 -20.1 -48.7 Private equity entities product sales 6.2 17.6 75.1 88.2 100.1 -

Other 13.4 23.6 32.3 58.8 67.4 28.2 Total revenue 807.7 1,045.9 1,126.2 1,792.8 2,049.1 1,593.7 Interest expense 241.4 242.8 327.0 647.2 958.0 806.5 Net revenue 566.3 803.1 799.2 1,145.7 1,091.1 787.3 Non-interest expenses 518.9 520.4 594.4 700.1 769.3 851.8

Income from continuing operations before income taxes 47.4 282.7 204.8 445.6 321.8 -64.6 Income from discontinued operations before incom e taxes - - 99.4 - -

Income before income taxes 47.4 282.7 204.8 545.0 321.8 -64.6

Net income from continuing operations 119.9 172.3 94.7 256.6 175.8 -67.8 Net incom e from discontinued operations - - 47.7- -

Net income 119.9 172.3 94.7 304.3 175.8 -67.8

Note:1. In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” net revenue and non-interest expenses from operations that were treated as discontinued during the fiscal year ended March 31, 2006, are separately reported as income from discontinued operations.

2. The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide – Investment

Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.


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Consolidated Income (Quarterly)

(billions of yen)

FY2007.3 FY2008.3

QoQ

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Revenue

Commissions 79.6 66.1 84.2 107.6 113.0 106.9 103.4 81.4 -21.3%

Fees from investment banking 14.4 26.9 32.3 25.7 29.9 16.2 20.3 18.7 -8.1% Asset management and portfolio service fees 29.7 35.5 36.7 44.0 47.3 50.9 47.6 43.9 -7.9%

Net gain on trading 55.8 47.5 89.2 97.5 99.8 8.7 65.1 -111.8 -

Gain (loss) on private equity investments 9.8 27.5 10.2 0.1 46.2 6.8 -3.0 26.6 -

Interest and dividends 207.9 232.3 262.9 278.2 294.8 245.9 177.3 78.6 -55.7%

Gain (loss) on investm ents in equity securities -20.5 -0.0 -0.2 0.6 -0.5 -24.2 -7.0 -17.0 - Private equity entities product sales 21.0 21.7 28.8 28.6-------

Other 4.2 11.7 45.4 6.1 16.3 9.6 -3.4 5.7 -Total revenue 401.7 469.2 589.5 588.6 646.6 420.7 400.4 126.0 -68.5% Interest expense 195.8 218.2 266.6 277.3 301.8 244.0 156.1 104.5 -33.1% Net revenue 205.9 251.0 322.9 311.3 344.8 176.7 244.3 21.5 -91.2% Non-interest expenses 172.5 177.9 190.8 228.1 204.9 227.3 199.9 219.8 10.0% Income before incom e taxes 33.4 73.1 132.1 83.2 139.9 -50.6 44.4 -198.3 -Net income 20.1 43.5 79.1 33.1 75.9 -11.7 21.8 -153.9 -

Note: Reclassifications- The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide— Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” from the first quarter of the year ended March 31, 2008.

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Main Revenue Items (Annually)

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Stock brokerage commissions (Domestic Retail) 48.2 92.1 103.0 153.6 98.3 75.1 Stock brokerage commissions (Other) 29.3 45.4 40.2 79.5 73.2 166.6 Commissions Other brokerage commissions 7.6 12.2 13.0 14.3 6.8 9.3 Commissions for distribution of investment trusts 30.5 37.3 41.7 85.1 120.5 121.2

Other 26.0 23.2 24.1 23.8 38.6 32.4 Total 141.6 210.2 222.0 356.3 337.5 404.7

Equity underwriting and distribution 24.6 44.7 49.1 57.3 56.6 32.1 Fees from Bond underwriting and distribution 37.0 26.4 20.5 21.2 15.3 13.4 Investment M&A/Financial advisory fees 16.8 15.8 22.6 30.3 26.7 37.8

Banking

Other 3.4 0.1 0.1 0.1 0.7 1.8 Total 81.8 87.0 92.3 108.8 99.3 85.1

Asset Asset management fees 60.2 44.2 51.1 68.5 106.3 150.3

Management

Administration fees 10.0 12.1 16.1 20.6 24.0 21.7 and Portfolio Custodial fees 9.1 9.9 11.3 13.6 15.7 17.7 Service Fees Total 79.3 66.2 78.5 102.7 146.0 189.7

Bonds and other 133.6 152.3 120.9 150.9 154.9 -70.3 Equity 35.9 75.2 76.8 148.1 137.6 137.0

Net Gain on

Trading* Merchant banking 2.8 1.5 4.0 5.2 -2.5 -5.0 Net interest revenue 127.3 100.4 74.3 46.6 23.3 -9.9 Total 299.6 329.4 276.0 350.8 313.4 51.8

*Includes net interest revenue

Note: The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide—Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.

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Main Revenue Items (Quarterly)

(billions of yen)

(billions of yen)

FY2007.3 FY2008.3

QoQ

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Stock brokerage commissions (Domestic Retail) 28.0 18.8 22.6 28.9 22.2 20.4 18.7 13.9 -25.5%

Stock brokerage commissions (Other) 13.8 11.8 17.4 30.2 40.3 40.6 44.5 41.2 -7.3% Other brokerage commissions 2.7 1.9 1.9 0.2 1.7 3.7 2.4 1.6 -31.9%

Commissions for distribution of investment trusts 25.8 23.1 33.0 38.5 39.2 34.2 30.6 17.2 -43.6%

Other 9.2 10.3 9.3 9.8 9.6 8.0 7.4 7.4 0.7% Total 79.6 66.1 84.2 107.6 113.0 106.9 103.4 81.4 -21.3%

Equity underw riting and distribution 6.3 16.2 19.4 14.7 7.8 6.8 11.3 6.3 -44.2% Fees from Bond underwriting and distribution 2.9 4.2 6.7 1.5 2.6 3.6 2.9 4.2 44.8%

Investment M&A/Financial adv isory fees 5.2 6.4 6.1 9.1 18.2 5.7 5.7 8.2 42.5% Banking Other 0.0 0.2 0.1 0.4 1.3 0.1 0.4 -0.0 -

Total 14.4 26.9 32.3 25.7 29.9 16.2 20.3 18.7 -8.1%

Asset Asset management fees 21.7 23.9 28.4 32.2 38.7 39.6 38.7 33.2 -14.2%

Management

Administration fees 4.5 7.8 4.4 7.2 4.2 6.5 4.6 6.3 36.5% and Portfolio Custodial fees 3.6 3.7 3.9 4.6 4.4 4.8 4.3 4.3 0.6% Service Fees Total 29.7 35.5 36.7 44.0 47.3 50.9 47.6 43.9 -7.9%

Bonds and other 26.7 34.4 60.0 33.7 47.8 -21.5 44.7 -141.2 -Equity 31.7 12.7 28.9 64.3 51.7 28.2 25.6 31.5 23.2%

Net Gain on

Trading* Merchant banking -2.6 0.4 0.2 -0.5 0.3 2.0 -5.1 -2.1

-Net interest revenue 12.1 14.1 -3.7 0.9 -7.0 1.9 21.2 -25.9

Total 67.8 61.6 85.5 98.4 92.7 10.5 86.3 -137.7 -

*Includes net interest revenue

Note: Reclassifications- The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide—Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” from the first quarter of the year ended March 31, 2008.

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Adjustment of Consolidated Results and Segment Results: Income (Loss) before Income Taxes (Annually)

(billions of yen)

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 YoY

Domestic Retail 35.7 79.5 81.2 197.2 160.9 122.3 -24.0%

Global Markets 93.6 120.8 60.2 157.7 58.8 -226.2 -

Global Investment Banking 12.8 17.2 29.2 51.5 44.4 22.8 -48.7%

Global Merchant Banking -15.3 0.5 -3.0 55.4 52.8 53.3 1.0% Asset Management 4.0 0.5 10.0 20.6 36.5 31.0 -15.0% 5 Business Segment Total 130.8 218.5 177.5 482.5 353.3 3.2 -99.1% Other -41.6 7.0 10.1 -30.5 23.9 -17.6 -Segment Total 89.2 225.5 187.6 452.0 377.3 -14.4 -

Unrealized gain (loss) on investments in equity securities held for operating purposes -43.0 54.7 8.4 59.3 -38.2 -50.2 -

Effect of consolidation/deconsolidation of certain private equity investee companies 1.2 2.4 8.9 -65.7 -17.3 - -

Income from continuing -64.6 -operations before income taxes 47.4 282.7 204.8 445.6 321.8 Income from discontinued

US GAAP - - 99.4 - -

operations before income taxes

Total 47.4 282.7 204.8 545.0 321.8 -64.6 -

Notes:1. In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” net revenue and non-interest expenses from operations that were treated as discontinued during the fiscal year ended March 31, 2006, are separately reported as income from discontinued operations.

2. In April 2005, Global Wholesale was reorganized into Global Markets, Global Investment Banking and Global Merchant Banking. 3. In April 2004, Fixed Income, Equity and certain functions of Investment Banking were consolidated to create Global Markets.

4. Global Markets figures up to FY2004.3 are the total of Fixed Income and Equity and differ slightly in composition from those of FY2005.3 onward.

5. In January 2006, certain functions of Other business were integrated into Asset Management. Certain reclassifications of previously reported amounts have been made to conform to the current presentation.

6. The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide – Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.


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Adjustment of Consolidated Results and Segment Results:

Income (Loss) before Income Taxes (Quarterly)

(billions of yen)

FY2007.3

FY2008.3

QoQ YoY

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Domestic Retail 42.5 28.2 46.9 43.3 50.6 32.2 28.5 11.1 -61.2% -74.5%

Global Markets 14.3 -3.6 24.1 23.9 26.0 -67.7 24.4 -208.9 - -

Global Investment Banking 5.6 16.3 10.9 11.6 20.7 -3.9 5.7 0.2 -95.9% -98.0%

Global Merchant Banking 9.8 41.5 6.7 -5.2 40.1 5.4 -12.3 20.1 - -

Asset Management 5.2 11.1 12.2 8.0 12.2 7.7 8.6 2.5 -71.2% -68.9%

5 Business Segment Total 77.5 93.4 100.8 81.7 149.6 -26.3 54.9 -175.1 - -

Other -23.0 4.3 43.1 -0.5 -7.0 -0.9 -3.4 -6.3 - -

Segment Total 54.4 97.7 143.9 81.2 142.6 -27.2 51.5 -181.4 - -

Unrealized gain (loss) on investments in equity securities held for operating purposes -20.6 -4.8 -13.1 0.3 -2.6 -23.4 -7.1 -17.0 - -

Effect of consolidation/deconsolidation of certain private equity investee companies -0.4 -19.8 1.3 1.6 - - - - - -

Total 33.4 73.1 132.1 83.2 139.9 -50.6 44.4 -198.3 - -

Note: 1. We operate five business divisions: Domestic Retail, Global Markets, Global Investment Banking, Global Merchant Banking and Asset Management. Gain (loss) on investments in equity securities, our share of equity in the earnings (losses) of affiliates, impairment losses on long-lived assets, corporate items and other financial adjustments are included as “Other” operating results outside business segments in our segment information. Unrealized gain (loss) on investments held for operating purposes and the effects of consolidation and deconsolidation of certain investments in our private equity business are classified as reconciling items outside our segment information.

2. Reclassifications- The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide—Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” from the first quarter of the year ended March 31, 2008.

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Consolidated Balance Sheet

Mar. 31, 2007 Mar. 31, 2008 Increase (Decrease)

Assets

Cash and cash deposits 1,054 1,434 380

Loans and receivables 1,618 1,872 254

Collateralized agreements 17,838 10,391(7,447)

Trading assets and private equity investments 13,178 10,657(2,522)

Other assets 2,185 1,945(240)

Total assets 35,873 26,299(9,575)

(billions of yen)

Mar. 31, 2007 Mar. 31, 2008 Increase (Decrease)

Liabilities

Short-term borrowings 1,094 1,426 333

Payables and deposits 1,346 1,329 (17)

Collateralized financing 20,599 10,541(10,059)

Trading liabilities 4,800 5,154 354

Other liabilities 846 636 (209)

Long-term borrowings 5,003 5,224 222

Total liabilities 33,687 24,311 (9,377)

Shareholders' equity

Total shareholders' equity 2,186 1,988 (198)

Total liabilities and shareholders' equity 35,873 26,299 (9,575)

Note: The above amounts reflect retrospective application of Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” for the year ended March 31, 2008.

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Domestic Retail Related Data (1)

Full Year Quarter

FY2008.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

1Q 2Q 3Q 4Q

Stock brokerage commissions (billions of yen) 48.2 92.1 103.0 153.6 98.3 75.1 22.2 20.4 18.7 13.9

Sales credit (billions of yen) 95.7 97.8 73.7 109.0 96.8 94.2 33.2 20.5 21.6 18.8

Commissions for distribution of investment trusts* (billions of yen) 34.9 46.9 49.9 95.9 124.7 124.5 39.6 35.4 31.4 18.1

Bond investment trusts commission 16.9 11.1 6.4 3.5 2.3 1.2 0.3 0.3 0.3 0.3

Stock investment trusts commission 11.6 21.5 31.6 74.2 114.5 117.1 37.3 32.9 30.1 16.8

Foreign investment trusts commission 6.4 14.2 11.9 18.2 7.9 6.2 1.9 2.2 1.1 1.0

Investment trust administration fees and other (billions of yen) 32.0 21.8 26.1 34.4 47.5 59.7 14.7 15.3 15.5 14.2

Domestic distribution volume of investment trusts* (trillions of yen) 11.9 13.7 14.2 20.5 21.4 20.4 6.3 5.5 4.9 3.7

Bond investment trusts 8.6 10.1 10.4 14.3 14.4 13.9 4.3 3.6 3.3 2.6

Stock investment trusts 1.3 1.6 2.3 4.5 6.0 5.2 1.7 1.5 1.2 0.8

Foreign investment trusts 2.1 2.1 1.4 1.7 1.0 1.3 0.3 0.4 0.3 0.3

Other (billions of yen)

Accumulated value of annuity insurance policies 166.6 261.6 446.4 683.3 990.4 1,205.3 1,063.4 1,114.8 1,165.3 1,205.3

Sales of JGBs for individual investors (transaction base) 101.3 1,271.6 1,290.6 747.8 615.2 292.3 159.7 68.4 41.4 22.8

Retail foreign currency bond sales 2,284.7 1,990.0 1,154.4 1,119.2 677.1 954.0 129.9 154.1 286.9 383.2

*

 

Nomura Securities

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Domestic Retail Related Data (2)

Domestic Client Assets*

(trillions of yen)

100 88.3 85.2 84.3

Other*** 80.5 81.3 80 72.2

Overseas mutual funds

61.2

Bond investment trusts 60 54.8

Stock investment trusts 40.6 40

Domestic bonds**

Foreign currency bonds 20 Equities

Mar.31,

2003 Mar.31, 2004 Mar.31, 2005 Mar.31, 2006 Mar.31, 2007 Jun.30, 2007 Sep.30, 2007 Dec.31, 2007 Mar.31, 2008

Equities 17.1 28.9 33.5 49.3 48.5 49.8 45.9 43.3 37.2

Foreign currency bonds 3.7 4.0 4.0 3.6 3.3 3.1 3.0 2.9 2.7

Dom estic bonds** 8.5 10.0 11.8 13.1 16.4 16.9 17.2 17.1 16.5

Stock investm ent trusts 2.2 3.0 3.3 5.3 7.4 8.5 8.7 8.7 7.3

Bond investm ent trusts 6.5 5.5 4.9 4.5 4.7 5.0 4.7 4.6 4.4

Overseas m utual funds 1.1 1.6 1.9 2.3 2.0 2.0 1.9 1.9 1.7

Other*** 1.6 1.7 1.9 2.3 2.9 3.0 2.9 2.8 2.5

Total 40.6 54.8 61.2 80.5 85.2 88.3 84.3 81.3 72.2

* Domestic Client Assets = Total of client assets in custody in Domestic Retail (including regional financial institutions) and Financial Management Division

** Includes CBs and warrants 34

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Domestic Retail Related Data (3)

Domestic Client Assets Net Asset Inflow *

Full Year Quarter

(billions of yen)

8,000 6,749 5,975 6,000 4,868 4,581 4,000 3,391 2,000 1,788 1,582 1,687 897 702 0 6749

FY2008.3

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

1Q 2Q 3Q 4Q

*Domestic Client Assets excludes portion from regional financial institutions Note: Net Asset Inflow = Asset Inflow – Asset Outflow

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Domestic Retail Related Data (4)

Number of Accounts* / IT Share**

(thousands)

Mar. 31, 2003 Mar. 31, 2004 Mar. 31,2005 Mar. 31,2006 Mar. 31,2007 Jun. 30,2007 Sep. 30,2007 Dec. 31,2007 Mar. 31,2008

Accounts with balance 3,418 3,460 3,678 3,780 3,953 4,002 4,066 4,117 4,165

Equity holding accounts 1,311 1,379 1,680 1,745 1,853 1,877 1,932 1,969 2,027

Nomura Home Trade (online trading accounts) 1,141 1,367 1,716 1,969 2,243 2,340 2,575 2,686 2,765

Full Year Quarter

FY2008.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

1Q 2Q 3Q 4Q

New accounts (individual) (thousands) 237 297 425 343 417 580 135 162 148 135

IT share** No. of orders 41% 49% 52% 55% 55% 57% 57% 58% 57% 58%

Transaction value 14% 22% 24% 27% 27% 29% 27% 29% 29% 29%

*

Total of Domestic Retail and Financial Management Division

**IT share is the percentage of trades via Nomura Home Trade and Telephone Answer comprising the total of cash stock transactions and kabushiki-mini-toshi (odd lot stock investment)

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Global Merchant Banking Related Data

Business Exposure

(billions of yen)

600 543.4 546.8 500 457.6 439.1 412.7 421.0 400 375.7 381.4 301.6 300

231.2 219.6 209.6 210.9 202.7

Terra Firma 200 132.1

Europe (excluding 98.7 Terra Firma) 84.5 100

Japan 35.9 0

Mar. 31,2003 Mar. 31,2004 Mar. 31,2005 Mar. 31,2006 Mar. 31,2007 Jun. 30,2007 Sep. 30,2007 Dec. 31,2007 Mar. 31,2008

Japan 20.1 68.9 108.4 59.9 195.5 183.9 168.4 172.0 169.5

Europe (excluding Terra Firma) 15.9 15.6 23.7 38.8 35.7 35.7 34.3 37.6 41.4

Sub Total 35.9 84.5 132.1 98.7 231.2 219.6 202.7 209.6 210.9

Terra Firma 265.7 291.2 325.5 340.4 312.2 327.1 210.0 211.4 170.5

Total 301.6 375.7 457.6 439.1 543.4 546.8 412.7 421.0 381.4

Notes: 1. Amount of exposure in Japan is total of Nomura Principal Finance (NPF), Nomura Financial Partners (NFP), Nomura Research & Advisory (NR&A) and others.

2. Amount of exposure in Europe (excluding Terra Firma) is total of Private Equity Group (PEG) and Nomura Phase4 Ventures (NPV).

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Asset Management Related Data (1)

Total Assets Under Management

(trillions of yen)

35 30.6 30.3 29.7 30 27.0 25.8

25 23.1 20 17.6 17.9 15.9

15 10 5 0

Mar. 31, 2003 Mar. 31, 2004 Mar. 31, 2005 Mar. 31, 2006 Mar. 31, 2007 Jun. 30, 2007 Sep.30,2007 Dec.31,2007 Mar.31,2008

Notes: 1. Total assets under management of Nomura Asset Management, Nomura Corporate Research and Asset Management,

Nomura Funds Research and Technologies, MAINTRUST KAG, and Nomura Funds Research and Technologies America,

Private Equity Funds Research and Investments. Adjusted for asset overlap amongst group companies. Data until March 31,

2006, include Nomura BlackRock Asset Management.

2. Nomura Funds Research and Technologies America data as of end of Feb. 2008.

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Asset Management Related Data (2)

Nomura Asset Management Assets Under Management

(trillions of yen)

30

29.2 28.9 27.9 25.9

25

24.3

21.0

20

15.7

16.0 15 14.2 10 5 0

Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 2003 2004 2005 2006 2007 2007 2007 2007 2008

Public stock investment trusts Public bond investment trusts Privately placed investment trusts Domestic investment advisory Overseas investment advisory

(trillions of yen)

Assets Under Management

Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 2003 2004 2005 2006 2007 2007 2007 2007 2008

Investment trusts 10.7 11.3 10.8 14.0 18.8 22.0 20.6 19.8 17.2

Public stock investment trusts 3.2 4.5 4.4 6.9 10.8 13.3 12.4 11.9 9.8

Public bond investment trusts 7.3 6.3 5.6 5.6 5.8 6.2 5.8 5.7 5.3

Privately placed investment trusts 0.2 0.4 0.8 1.5 2.2 2.4 2.3 2.3 2.0

Investment advisory 3.6 4.4 5.1 7.0 7.1 7.3 8.3 8.1 7.1

Domestic investment advisory 2.9 3.0 3.2 4.0 3.7 3.9 5.0 5.0 4.6

Overseas investment advisory 0.7 1.4 2.0 3.0 3.4 3.4 3.3 3.1 2.4

Total 14.2 15.7 16.0 21.0 25.9 29.2 28.9 27.9 24.3

Net Asset Inflows

Full Year Quarter

FY2008.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

1Q 2Q 3Q 4Q

Public stock investment trusts 0.8 0.1 -0.1 1.0 3.8 2.0 2.0 0.0 0.2 -0.2

Exclude ETF 0.2 -0.1 0.2 1.4 3.7 1.8 1.2 0.7 0.1 -0.1

Public bond investment trusts -3.1 -1.0 -0.7 0.0 0.2 -0.5 0.5 -0.4 -0.1 -0.3

Privately placed investment trusts 0.1 0.1 0.3 0.5 0.7 0.2 0.2 0.0 0.0 -0.0

Net Asset Inflow -2.2 -0.7 -0.5 1.5 4.6 1.7 2.6 -0.4 0.0 -0.5

Public stock investment trusts

Privately placed investment trusts

Overseas investment advisory

Public bond investment trusts

Domestic investment advisory

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Asset Management Related Data (3)

(trillions of yen)

Mar. 31, 2003 Mar. 31, 2004 Mar. 31, 2005 Mar. 31, 2006 Mar. 31, 2007 Jun. 30, 2007 Sep. 30, 2007 Dec. 31, 2007 Mar. 31, 2008

Domestic Stock investment trusts 3.2 4.5 4.4 6.9 10.8 13.3 12.4 11.9 9.8

Public Nomura Asset Bond investment trusts 7.3 6.3 5.6 5.6 5.8 6.2 5.8 5.7 5.3

Investment Management

Public stock investment trusts, Nomura’s share (%) 19% 19% 15% 15% 18% 20% 18% 18% 17%

Trust Market and Nomura Public bond investment trusts, Nomura’s share (%) 40% 40% 42% 42% 44% 44% 45% 44% 44%

Asset Management Stock investment trusts 16.3 23.3 28.9 45.0 59.4 67.9 67.5 66.8 57.7

Market Share Market Total Bond investment trusts 18.1 15.8 13.5 13.5 13.2 14.1 12.9 13.0 12.0

Source: Investment Trusts Association, Japan

(billions of yen)

AUM of Products Mar. 31, 2005 Mar. 31, 2006 Mar. 31, 2007 Jun. 30, 2007 Sep. 30, 2007 Dec. 31, 2007 Mar. 31, 2008

Supplied to

Banks and Banks* 330 791 1,935 2,191 2,124 1,882 1,553

Japan Post Bank Japan Post Bank (Japan Post) - 90 425 537 569 576 527

*Excludes Japan Post Bank and Nomura Trust & Banking. Figure for March 31, 2007, has been reclassified based on estimation method used for June 30, 2007

My Story Profit Distribution-type Fund B- 454 1,537 1,955 2,099 2,115 1,777 Nomura Global Six Assets Diversified Fund - 59 333 414 435 441 405

Global REIT Open 18 307 684 735 668 520 395

Nomura Global High Interest Rate Currencies Fund - - - - 209 419 365 AUM in Key Nomura New Global High Interest Rate Currencies Fund - - - - - 246 344

Funds

Global Attractive Dividend Stock Fund (Monthly) - - 411 504 463 383 279 Nomura Global All Stars - - 263 324 314 292 236 Global High Income Stock Fund 10 24 180 271 308 288 229 Nomura Japan-US REIT Fund 3 18 348 388 339 281 225 Asia Attractive Dividend Stock Fund - - 341 413 389 288 209

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Fourth Quarter Achievements

Domestic Retail

Global Markets

 

Global Investment Banking

Joinvest Securities

Newly-launched Investment Trusts

JPM Emerging Local Currency Bond Fund (Launched 1/30/2008) AUM as of 3/31/2008: 142.1 billion yen

Nomura African Stock Fund (Launched 3/6/2008) AUM as of 3/31/2008: 46.4 billion yen

Existing Investment Trusts

Nomura New Global High Interest Rate Currencies Fund Jan-Mar sales: Approx. 126 billion yen

New Bond Issues

European Investment Bank (Eurokiwi bond) Issue amt.: 845 million NZD

Large International Bond Underwritings

Oesterreichische Kontrollbank (OeKB) : 2 billion US dollars

Westpac: 1 billion euros

Equity Derivatives: Completed 15 fund derivative contracts (total amount: approx. 616 million euros)

European leveraged finance position: Approx. 360 million US dollars Loan-related Business: Approx. 40 billion yen

Nomura Capital Investment (NCI): Total of approx. 26.2 billion yen

Major Deals

IPO Seven Bank: 52.3 billion yen

CB Yamada Denki: 150.0 billion yen (Recapitalization CB)

REIT Nippon Building Fund: 41.0 billion yen

M&A Tender offer for Toyama Chemical by Fujifilm Holdings: 146.9 billion yen

 

2006 2007 2008

June September December March June September December March

 

Number of Accounts 40,156 61,554 75,562 129,516 166,387 183,267 205,668 248,763 Margin Trading Accounts 1,224 3,182 5,805 9,054 11,272 13,519 15,873 18,538 Monthly Transaction Value (millions of yen) 54,919 177,096 316,303 591,354 699,710 573,236 695,415 789,250 Margin Transaction Value 19,472 100,698 191,666 386,363 453,191 405,078 499,429 591,423 Assets in Custody (millions of yen) 47,754 113,301 171,540 256,215 319,248 342,276 364,367 364,445

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League Tables

Global Equity & Equity-related (Japan)

R Apr. 1, 2007 - Mar. 31, 2008 a Bookrunner n Proceeds No. of Mkt. Share k (USD mil) Deals

1 Nomura 8,434.4 41.6% 56

2 JP Morgan 2,300.8 11.3% 3

3 Daiwa Securities SMBC 2,204.6 10.9% 48

4 Nikko Citi 1,955.5 9.6% 17

5 Morgan Stanley 1,405.6 6.9% 7

6 Mitsubishi UFJ Financial Group 1,314.1 6.5% 16

7 Deutsche Bank 982.6 4.8% 6

8 Mizuho Financial Group 841.6 4.1% 24

9 UBS 437.3 2.2% 4

10 Shinko Securities 292.0 1.4% 20

Global & Euro Yen Bonds

R Apr. 1, 2007 - Mar. 31, 2008 a Bookrunner n Proceeds No. of

Mkt. Share k (JPY mil) Issues

1 Nikko Citi 1,163,384.0 22.7% 61

2 Morgan Stanley 757,063.5 14.8% 27

3 Deutsche Bank 373,099.0 7.3% 26

4 Merrill Lynch 317,385.8 6.2% 13

5 Barclays Capital 304,490.3 5.9% 21

6 Daiwa Securities SMBC 285,211.9 5.6% 18

7 BNP Paribas 269,570.0 5.3% 46

8 Nomura 256,821.3 5.0% 15

9 Mitsubishi UFJ Financial Group 251,658.3 4.9% 11

10 Bank of America Securities 230,000.0 4.5% 1

Source: Thomson Financial

Any Japanese Involvement Financial Advisors

Announced deals, value base

R Apr. 1, 2007 - Mar. 31, 2008 a Advisor n Rank Value No. of

Mkt. Share k (USD mil) Deals

1 Nomura 24,778.8 19.4% 138

2 Mitsubishi UFJ Financial Group 15,257.0 12.0% 112

3 JP Morgan 14,714.4 11.5% 24

4 Daiwa Securities SMBC 14,559.9 11.4% 119

5 Citi 14,063.1 11.0% 84

6 Merrill Lynch 12,911.2 10.1% 17

7 Morgan Stanley 12,910.6 10.1% 25

8 Goldman Sachs 12,413.6 9.7% 24

9 Lehman Brothers 9,929.4 7.8% 13

10 UBS 9,040.7 7.1% 27

Domestic Straight Bonds (excluding self-funding)

R Apr. 1, 2007 - Mar. 31, 2008 a Bookrunner n Proceeds No. of

Mkt. Share k (JPY mil) Issues

1 Mizuho Financial Group 2,267,939.7 25.3% 106

2 Daiwa Securities SMBC 1,803,872.6 20.1% 91

3 Mitsubishi UFJ Financial Group 1,717,382.9 19.2% 91

4 Nomura 1,559,112.4 17.4% 106

5 Nikko Citi 787,768.3 8.8% 48

6 Shinko Securities 143,830.8 1.6% 14

7 Merrill Lynch 139,124.2 1.6% 12

8 Goldman Sachs & Co 122,485.5 1.4% 9

9 Credit Suisse Securities 121,666.7 1.4% 8

10 UBS 110,000.0 1.2% 4

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Full Year

Secondary Market Share Data

Primary Market Share Data

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Individual Equity Agency Transactions Share

Market 52.0 105.9 144.7 308.3 270.2 235.5

Nomura Securities’ share 16% 10% 8% 7% 5% 4%

Off-floor/Off-exchange Equity Trading Share

Off-floor market 33.2 31.9 33.2 48.6 48.2 46.0 Off-exchange 14.1 19.3 21.1 30.5 42.8 49.6

Nomura Securities’ share 20% 16% 17% 21% 21% 21%

JGB Auction Share

Market 68.1 74.4 80.1 80.7 85.3 85.3

Nomura Securities’ share 15% 16% 18% 11% 11% 11%

Bond Secondary Trading Share

Market 1,129 1,235 1,361 1,296 1,341 1,526

Nomura Securities’ share 14% 16% 15% 13% 11% 10%

 

Note: Off-floor/off-exchange equity trading share data for 4Q are preliminary figures as of March 25.

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3

Global Equity and Equity-related Japan

 

Nomura’s share 30% 30% 25% 26% 33% 42%

Japanese IPO

 

Nomura’s share 11% 27% 32% 20% 21% 44%

Japanese PO

 

Nomura’s share 50% 33% 25% 27% 40% 42%

Convertible Bonds

 

Nomura’s share 13% 28% 19% 34% 34% 38%

Global and Euro Yen Bonds

 

Nomura’s share 21% 31% 23% 23% 7% 5%

Straight Bonds, Lead Manager (excl. self-funding)

 

Nomura’s share 26% 19% 17% 18% 14% 16%

Source: Thomson Financial (Value base)

 

(trillions of yen)

Quarter

FY2008.3

1Q 2Q 3Q 4Q

67.2 62.9 58.8 46.5

4% 4% 4% 4%

13.4 11.4 11.0 10.2 14.2 11.8 11.7 22% 22% 19% 18%

21.7 21.2 21.5 20.9 11% 9% 9% 17%

353 386 387 400 10% 10% 10% 10%

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Value at Risk

Definition

99% confidence level (2.33 standard dev.)

1-day time horizon for outstanding portfolio

Inter-product price fluctuations considered

End of the period Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006 Mar. 2007 Jun. 2007 Sep. 2007 Dec. 2007 Mar. 2008

Equity 1.5 3.3 3.0 6.0 4.6 4.7 3.3 3.8 4.2 Interest Rate 2.3 2.0 2.8 3.3 3.7 3.5 3.2 2.4 4.7 Foreign Exchange 0.2 0.5 0.7 1.4 1.4 2.4 2.6 4.2 8.0

Sub-total 4.0 5.8 6.5 10.7 9.8 10.6 9.1 10.4 16.9 Diversification Benefit -0.9 -1.9 -2.4 -3.7 -3.6 -4.2 -3.5 -5.0 -6.8 VaR 3.1 3.9 4.1 7.0 6.2 6.4 5.6 5.4 10.1

From April 2, 2007 to March 31, 2008 (billions of yen)

Maximum: 10.1

Minimum: 4.6

Average: 6.2

(billions of yen)

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Number of Employees

Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006 Mar. 2007 Mar. 2008

Japan (excluding FA, SA)* 9,285 9,185 9,236 9,618 10,667 11,561 Japan (FA, SA) 1,986 1,915 1,875 1,948 2,174 2,377 Europe 1,389 1,403 1,535 1,515 1,791 1,956 Americas 797 866 1,026 1,073 1,322 1,063 Asia/Oceania 616 655 718 778 900 1,070 Total 14,073 14,024 14,390 14,932 16,854 18,026

Note: Headcount figures have been reclassified to include certain contract employees since September 2007.

Certain reclassifications of previously reported amounts have been made to conform to the current presentation. *Excludes employees of private equity investee companies

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Nomura Holdings, Inc.

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