Nomura Investors Day 2010 May 10, 2010 Takumi Shibata Deputy - - PowerPoint PPT Presentation

Nomura Investors Day 2010

May 10, 2010 Takumi Shibata Deputy President and COO Nomura Holdings, Inc.

1. Where is Nomura heading? 2. 3. Next phase of growth In closing

Market capitalization

Achieving growth under adverse conditions

Last year we took off on our way to becoming a world-class organization

Clear

BoA 16.7 JPM 16.6 Citi 10.8

Barclays

6.1 GS 8.6

DB 4.5 CS 5.7 UBS 5.8 MS 3.8

Nomura 2.5

3

Cloudy

Note: Figures under peer group show market capitalization in trillions of yen as of the end of March 2010. Nomura figure is monthly average market capitalization.

Regulatory environment Market environment

1,150.8 Net revenue Pretax ROE(%)

US is missing link

Net revenue, income/loss before income taxes and ROE

Breakdown of revenues Comparison of revenues

(billions of yen) (billions of yen)

Revenue from US 787.3 312.6

• 649
• 780.3

105.2

• 3.3%
• 40.2%

3.7% FY07 FY08 FY09

1150.8

Nomura UBS MS CS DB GS Barcap Citi JPM BoA

Note: Peer group figures for year ended December 2009. BarCap US revenue is Barclays figure.

4

Achieving growth and improving profit structure

Break-even point 5

Where is Nomura heading? 1. Next phase of growth In closing 2. 3.

Equities Fixed Income

FY09

Stronger organizational structure

Enhancing Wholesale operations

Investment Banking

7

FY10

Stronger organizational structure

Equities Fixed Income

Enhancing Wholesale operations

Investment Banking

Wholesale

Jasjit Bhattal Wholesale Division President and COO

8

Collaboration / Synergies

Wholesale Retail

Collaborative approach

Collaboration between Wholesale and Retail divisions

Wholesale

(15,000 people)

Retail

(11,000 people)

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Collaboration / Synergies

16,159 16,575 14,424 50 55 60 16,000 18,000 46

Trend of balance sheet size

Perfect opportunity to increase market share

Global peer group balance sheet total (billions of USD) Nomura balance sheet; Demand (trillions of yen)

13,086

37 26 22 30

10 15 20 25 30 35 40 45 6,000 8,000 10,000 12,000 14,000 2006/12/29 2007/12/31 2008/12/31 2009/12/31 将来 41 46 20 40

10

Source: Demand from 2006 to 2009 is global capital markets and investment banking fee pool based on analysis by McKinsey & Company. Dotted line from 2010 onwards extrapolates trend from 2009 and does not represent a guarantee of future performance.

Future

Japan Japan Dominance Dominance

Strategies by region

Regional strategies

EMEA EMEA Americas Americas Asia Asia-

• Pacific

Pacific Grow for strength Grow for strength Invest in growth Invest in growth Narrow and deep Narrow and deep

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BoA Citi

BarCap GS

DB

UBS

Nomura

Being Asia-based gives us distinct identity

JPM MS

CS

Nomura

Source: IMF World Economic Outlook

• 10.0
• 5.0

0.0 5.0 10.0 Japan German UK US France India China GDP growth (2009)

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FY2011.03- FY2009.03 FY2008.03 FY2010.03

Asia’s global investment bank

Significant loss

Took off on way to becoming world-class

• Trading losses and asset

writedowns due to global financial crisis L h B th i iti

Returned to profit Consistently profitable

Dealt with legacy assets, laid foundation for growth

Loss

• Change of management
• Monoline-related losses
• Fully exited US RMBS-

l t d b i

• Global: Part of top tier
• Asia: Only global house
• Return to profit after two years
• All divisions profitable
• Overseas revenues exceed

Next phase of growth

New financial

• rder

Start of financial reform Financial crisis Financial uncertainty

• Lehman Brothers acquisitions

related business

(billions of yen) Started Y100bn cost cut (Apr) New employment track (Apr) Raised Y430bn (Oct) Appointed Group SMDs (Nov) Raised Y280bn (March)

Japan revenues for first time

• Wholesale division established

as second revenue engine

Continue cost cutting Raise long-term capital Respond to regulatory issues

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• 64.9
• 780.3

105.2

• 3.3%
• 20.0%

3.7% FY07 FY08 FY09 Pretax ROE(%)

Where is Nomura heading? 1. In closing Next phase of growth 2. 3.

Nomura now

Global: Top 10 Global: Top 10

Current position

Japan: Only global house Japan: Only global house

15

Nomura of the future

Global: Top tier Global: Top tier

Future position

Asia’s global house Asia’s global house Asia: Only global house Asia: Only global house

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Client Client-

• focused

focused

Future direction

Business Business-

• driven

driven Internal momentum Internal momentum

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Nomura Holdings, Inc. Nomura Holdings, Inc.

www.nomura.com/ www.nomura.com/