INVESTOR PRESENTATION. Junichi Ujiie President & CEO, Nomura Holdings, Inc. May 2002

Transcription

1 INVESTOR PRESENTATION Junichi Ujiie President & CEO, Nomura Holdings, Inc. May 2002

2 Outline of the Presentation Results of Operations Business Environment Group Vision & Business Execution Strategies by Business Corporate Governance 1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2002 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 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. 2

3 Results of Operations Summary Segment Information

4 Results of Operations (1) Summary Fiscal Year ended March 2002 (US GAAP)!Income before Income Taxes billion yen (+11%*)!Net Income billion yen (+193%*)!Total Assets 17,758.3 billion yen (+612.2!Shareholders Equity 1,604.9 billion yen ( ( billion yen **) billion yen**) ( billion yen **) billion yen**)!leverage 11.1 times (previous term 11.9 times)!roe 11.1% (4.0%) Three-year A 10.1% year Average verage ROE 10.1% (Mar.00 Mar.02) *Percentage change from the year ended March 31, 2001 **Compared with corresponding items as of March 31,

5 Results of Operations (2) Segment Information (Income before Income Taxes) (Billions of yen) 300 FY01.3 FY Dom estic Retail GlobalW holesale Asset M anagem ent 5

6 Business Environment Shift of Financial Assets Acceleration of Corporate Restructuring

7 Business Environment Shift of Financial Assets (1) (YOY %) 40 Demand Deposits (Individuals) 30 Term Deposits (Individuals) Demand Deposits (Corporate) Term Deposits (Corporate) -30 Mar. 00 Jun. 00 Sep. 00 Dec. 00 Mar. 01 Jun. 01 Sep. 01 Dec. 01 Mar. 02 Source: NRI 7

8 Business Environment Shift of Financial Assets 2*(2) (Trillions of yen) Exchange Rate: Yen/$ RHS Individual Foreign Securities Investments LHS Individual Foreign Currency Deposits LHS (Yen/$) Mar-90 Mar-91 Mar-92 Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Dec Source: NRI 8

9 Business Environment Shift of Financial Assets (3) Net Cash Flow of Equity-type type Investment Trusts (Trillions of yen) 8 (Yen) 25, ,000 15,000 Net cash flow of equity-type investment trusts (LHS) Nikkei Stock Average (RHS) -4 10, ,000 Source: The Investment Trusts Association, Japan 9

10 Business Environment Acceleration of Corporate Restructuring (1) (No. of deals) 1,600 M&A by Japanese companies 1,400 1,200 Dom estic transactions C ross-border (targeting Japanese com panies) 1, Source: Nomura Securities Financial Research Center 10

11 Business Environment Acceleration of Corporate Restructuring (2) (Trillions of yen) 2.5 Share Buy-Backs* Backs* Mar.99 Mar.00 Mar.01 Mar.02 Share buy-backs backs include write-off purposes and issuance of stock options Source: Nomura Securities Financial Research Center 11

12 Business Environment Acceleration of Corporate Restructuring(3) Net Aggregated Balance of Equity Transactions Mar.98 Sep.98 M ar.99 Sep.99 M ar.00 Sep.00 M ar.01 Sep.01 M ar Banks (city banks, regional banks, long-term credit banks -7 Business Corporations -8 (Trillions of yen) Source: Nomura Securities Financial Research Center 12

13 Business Environment Acceleration of Corporate Restructuring (4) (Trillions of yen) 2.5 Securitization in Japan Real Estate (CMBS, REIT) Housing Loans 2.0 Bonds (CBO) 1.5 Consumer Credit & Loans Auto Loans 1.0 Equipment Leases Others Source: Nomura Securities 13

14 Group Vision & Business Execution Group Vision Business Execution Structure

15 Group Vision Globally Competitive Japanese Financial Services Group Focus Broadening Business in Mother Market Promotion of Japan-Focused Globalization Enhancement of Asset Management Business Financial Target Average ROE of 10-15% over mid to long term 15

16 Business Execution Structure Nomura Holdings Domestic Retail Global Wholesale Asset Management Strategic Management Committee " Examine Business Plan " Capital Allocation Monitoring NVA, Other measurements Business Line Heads " Business Execution Advisory Board 16

17 Strategies by Business Domestic Retail Global Wholesale Asset Management

18 Domestic Retail Goals & Strategy Establish Strong Domestic Sales Base & Stable Profit Structure Broaden Broaden Client Base Diversify Product Mix 18

19 Domestic Retail Broaden Client Base (1) Method to Broaden Client Base Strengthen Consulting Business Enlarge Asset Builder & Corporate Employee Client Base Improve Productivity by Utilizing IT Approach via Corporate Channel 19

20 Domestic Retail Broaden Client Base (2) Improving Productivity by Utilizing IT Nomura Clients Consulting Administrative Services Execution, settlement, administration of accounts, market information, etc. Face-to to-face Call Center IT Services High-Net Net-Worth Customers Asset Builders 20

21 Domestic Retail Broaden Client Base (3) Approach via Corporate Channels (1) Our Approach via Employee Stock Ownership Plan (ESOP) Nomura IT Services Corporations Number of Customers: 3,000 companies Number of Customers Investment : Information & Services 3,000 companies Employees Number of Customers Employees: 3 million (estimate) Number of ESOP Members: 1.4 million Number of Customer Intra-corporate Employees : Information Systems 3 million(estimate) Face-to to-face Services Consultation Number Account Opening of ESOP Members: 1.4 million Asset Building ESOP Shares Retirement Benefit 21

22 Domestic Retail Broaden Client Base (4) Approach via Corporate Channels (2) Emergence of New Business Chances through Corporate Restructuring # Business Re-organization # Change of Employment System Demutualization New Investment Needs arising from Early Retirement Plan Corporate Restructuring Cooperation with Global Wholesale 22

23 Domestic Retail Diversify Product Mix (1) Revenue Breakdown by Product 100% 90% 80% 70% 60% 50% 14% 24% 10% 30% 16% 15% 24% 13% 28% Investment trusts (administration fees) Investment trusts (distribution fees) 40% Bonds 30% 20% 52% 40% 35% Equity 10% 0% Mar.00 Mar.01 Mar.02 23

24 Domestic Retail Diversify Product Mix (2) Investment Trust Lineup Nomura Fund Universe Cash Reserve MMF Free Financial Fund Long-term Bond Investment Trust Income Funds Nomura Bond Open Nomura Short Term Prime Fund Total Return Funds Global Equity Global Bond Domestic Equity 24

25 Domestic Retail Diversify Product Mix (3) Retail Client Assets in Foreign Currency Bonds 2.5 (T rillions of yen) M ar.00 Jun.00 Sep.00 Dec.00 M ar.01 Jun.01 Sep.01 Dec.01 M ar.02 * All currencies converted into yen at end of month 25

26 Business Lines Domestic Retail Global Wholesale Asset Management

27 Global Wholesale Goals & Strategy Establish Strong Presence in Japan Focusing on Global Business Establishment of Global Product Supply System Promotion of Solution Finding Financial Business 27

28 Global Wholesale Business Model Securitization Credit Creation by Banks Corporate Revival Debt Finance Domestic Investors Bank Loans Risk Money Japanese Corporations Cross-Share Risk Money Holdings Overseas Investors Unwinding of Cross-Share Holdings Corporate Restructuring Consultation M&A Advisory Equity Finance 28

29 Global Wholesale Establishment of Global Product Supply System (1) Market Share (FY March 2002) Off-floor/Off-exchange Equity Trading* Secondary Bond Trading* 19% 14% Japanese Equity Public Offering* 34% Japanese Equity IPO* 36% Samurai Bonds** 38% Sources: *Nomura Securities **Thomson Financial, bookrunner base 29

30 Global Wholesale Establishment of Global Product Supply System (2) Global Equity Offerings Dentsu Daido Life NRI (Billions of yen) Retail Targeted Foreign Currency Bonds Total Offering Amount* Global Dollar Bonds 50 0 EIB ADB OKB Mar.01** M ar.02 1Q 2Q 3Q 4Q * Lead managed by Nomura, converted into yen **Full year figure is adjusted to a quarterly figure 30

31 Global Wholesale Promote Solution Finding Financial Business (1) Enhance M&A Advisory Business Cross-Border M&A Japan Telecom-Vodafone Seiyu-Wal-Mart Taihei-Citigroup Business Reorganization MEI Group Corporate Revival Niigata Engineering Rank M&A Ranking Jan. Mar Advisor Nomura Citigroup/ Salomon Smith Barney Morgan Stanley Transaction Amounts ($ Billion) Deals Strategic Alliance with TWP Source: Announced Mergers & Acquisitions, any Japanese involvement, Thomson Financial league table based on rank value 31

32 Global Wholesale Promote Solution Finding Financial Business (2) Enhance Merchant Banking Business Increase Domestic Investment MBO Corporate Reorganization CCI UHT DaikumaDaikuma Corporate Revival Fuji Car Manufacturing Restructuring of Overseas Investment PFG 32

33 Business Lines Domestic Retail Global Wholesale Asset Management

34 Asset Management Goals & Strategy Enhance Asset Management Business Enhance Product Mix Strengthen Defined Contribution Pension Plan Business 34

35 Asset Management Enhance Product Mix (1) Savings-type Investment Trusts Short Term Medium Term Cash Reserve MRF Bond Fund MMF FFF Income Funds Nomura Short Term Prime Fund Nomura Short Term Bond Open 35

36 Asset Management Enhance Product Mix (2) ETF!Market Share (as of end of March 2002) TOPIX Type Nikkei 225 Type 89% 69%! Develop Industry Index ETF # TOPIX Electric Appliances # TOPIX Transportation Equipment # TOPIX Banks Exchange Source: Nomura Securities 36

37 Asset Management Strengthen Defined Contribution Pension Plan Business (1) Provide Efficient Services Utilizing Group Network # Utilize strong presence in ESOP market # Utilize know-how obtained from investment trusts and investment advisory business # Provide comprehensive services! Customized Services! Provision of Services through Single Channel! Solid Customer Follow-Up System! Low Cost Operation 37

38 Asset Management Strengthen Defined Contribution Pension Plan Business (2) Market Share (based on the number of employees at end of March 2002) Nomura 48% Source: Nomura Securities 38

39 Corporate Governance

40 Corporate Governance Enhance Corporate Governance Outside Directors (2 out of 11) Set Up Audit Committee (Includes outside directors) Set Up Executive Compensation Committee (Outside directors form majority of committee) 40

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