Presentation to Nomura Investment Forum 2007 (PDF)€¦ · 219 178 482 353-200-100 0 100 200 300 400 500 600 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2010.3 500 2 3. Develop new

Presentation toNomura Investment Forum 2007December 3, 2007

Nobuyuki Koga

President and CEONomura Holdings, Inc.

1

1. This document is produced by Nomura Holdings, Inc. ("Nomura"). Copyright 2007 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.

2

Five Business Division GrowthFive Business Division Growth

3

48 14

658

0

200

400

600

800

-41.4

-104.2-120

-100

-80

-60

-40

-20

0

US RMBS exposure

US RMBSlosses

US RMBS Business

Five Business Division Growth

2007.3 2007.9 Latest

(billions of yen)

Exit from US RMBS business virtually completed

2007.1-3 2007.4-9

1

1 As at announcement of interim results

4

-200

-100

-

100

200

300

400

500

600

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3-200.0

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3

131

219178

482

353

-200

-100

0

100

200

300

400

500

600

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2010.3

5003. Develop new businesses2

(FY)

US RMBS lossesGM (excluding RMBS)GIB + GMBDR + AM

3. Revamp international operations

1. Strengthen domestic client base


Other Businesses Remain Strong

(billions of yen) Five business division income before income taxes

Aiming for income before income taxes of 500 billion yen

1 Global Markets results for year ending March 2008 were calculated by adding back 104.2bn yen of US RMBS losses to 1H loss before income taxes of 41.6bn yen then doubling (125.2bn yen).

2 DR: Domestic Retail; GM: Global Markets; GIB: Global Investment Banking; GMB: Global Merchant Banking; AM: Asset ManagementUS RMBS losses are shown from the fourth quarter of the year ending March 2007

1

2. Increase revenue sources

5


Nomura’s Business Model Client businesses

US RMBSUS RMBS

Global Merchant Banking


Structured bondsStructured bonds

Broker-dealers and other investment banks

Exit

introduce deals, invest

Investment (order flow)

ascertains needs

End clients

End clients(corporates)

End clients(mostly individual investors)

Global Marketsposition for securitization Market

Global Markets structured bond related position

Market

Other financial institutions

Sell

Domestic Retail

Domestic Retail/Global Investment Banking

Sell

Global Merchant Banking business exposure

Trading

Mortgage banks, others

6


Three Priorities and Missions of Business Divisions

Further expand current revenue base

Anticipate market growth and changes, actively take on

new challenges

11 22 33 Develop new businessesRevamp international operations

Develop new businessesRevamp international operationsIncrease revenue sourcesIncrease revenue sourcesStrengthen domestic

client baseStrengthen domestic

client base

Further strengthen client base driven by shift from savings

to investment in Japan

Increase Domestic Client Assetsand accounts with balance

Domestic Retail

Enhance M&A business and profitability

Global Investment Banking

Virtuous cycle of investments and exits; branch out into Asia


Develop new businesses Diversify earnings

Global Markets

Growth in Asia and Europe Profitable in US

International Business

Increase assets under management

Asset Management

7

Three StrategiesThree Strategies

8

Three Strategies

Domestic Retail is a growing business

11

22

33

Three strategies Management perception

New start for Global MarketsNew start for Global Markets

Strengthen domestic client baseStrengthen domestic client base

International strategyInternational strategy

Focus on client businessesFocus on client businesses

“Growing triangle” based on global sales strength“Growing triangle” based on global sales strength

9

Strengthen domestic client base

Domestic Retail is a growing business

International strategy

11

2

3


New start for Global MarketsNew start for Global Markets

“Growing triangle” based on global sales strength

Focus on client businessesFocus on client businesses

Three Strategies

10

100

158

60

121

94

-150

-100

-50

0

50

100

150

200

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3

Steady Results Excluding US RMBS Business

(billions of yen) Global Markets income before income taxes (excluding US RMBS losses)

US RMBS lossesGlobal Markets (excluding US RMBS losses)

1 Global Markets results for year ending March 2008 were calculated by adding back 104.2bn yen of US RMBS losses to 1H loss before income taxes of 41.6bn yen then doubling (125.2bn yen).

2 US RMBS losses are shown from the fourth quarter of the year ending March 2007

(FY)1

2

Three Strategies: 1. New start for Global Markets

11

(1H)x21 Includes only two months of Instinet revenue.2 Revenue for year ending March 2008 is annualized figure for first six months.

Brokerage Business

Expanding business through research sales and execution capabilities

Revenue from commissions in Global Equity(billions of yen)

Instinet (execution capability)Equity sales commissions (research sales)

Strengthen execution capabilities

Enhance researchsales

1 2 (FY)0

50

100

150

200

250

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2010.3


12

0

2

4

6

8

10

12

14

16

18

2007.3 3Q 2007.3 4Q 2008.3 1Q 2008.3 2Q0

20

40

60

80

100

120

140

160

180

200

Instinet Order Flow

Order flow increasing due to demand for best execution and alternative markets

(billions of shares) (billions of US dollars)

Europe (transaction value, rhs)Asia (transaction value, rhs)

US (shares, lhs)

(FY)

1 Quarterly accumulated

1


13

Trading Diversifying sources of revenue

Equity derivatives(Second pillar)

Macro/Risk derivatives(First pillar)

MPOs and block trades

Credit derivatives/ Commodities/Real estate(Third pillar)

Main sources of trading revenue in Global Markets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 1H 2010.3(FY)

10

0

20

30

40

50

60

70

80

90

100(%) Main sources of trading revenue


14

Hired equity derivatives team to enhance product development (2004)Tokyo and London collaborate to originate fund derivatives and equity-linked structured bondsIncreasing sales channels outside Japan to include European and Asian investors

Trading Equity derivatives grown into second pillar of revenue

Equity derivatives revenue

(FY)

(billions of yen)

Revenue

0

5

10

15

20

25

2005.3 2006.3 2007.3 2008.3 1H


15

New start for Global Markets Focus on client businesses

International strategy “Growing triangle” based on global sales strength

22

1

3

Strengthen domestic client baseStrengthen domestic client base

Domestic Retail is a growing businessDomestic Retail is a growing business


Three Strategies

16

500.0

440.1446.5

304.4305.8

249.3160.9

197.2

81.279.5

35.7

0

100

200

300

400

500

600

700

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2010.3

100

40.6

54.861.2

80.585.2 84.3

0

20

40

60

80

100

120

2003.3 2004.3 2005.3 2006.3 2007.3 2007.9 2010.3(1H)x2

Steady Growth in Domestic Client Assets and Revenue

1 Revenue for year ending March 2008 is annualized figure for first six months

1

(trillions of yen) (billions of yen)Domestic Client Assets Domestic Retail revenue

Income before income taxesNet revenue

(FY)

Three Strategies: 2. Strengthen domestic client base

17

647.0

525.9

618.2

383.8348.6337.0

388.5395.7

270.3306.7

127.686.0

127.3

202.7

0

100

200

300

400

500

600

700

05.3 1Q 05.3 2Q 05.3 3Q 05.3 4Q 06.3 1Q 06.3 2Q 06.3 3Q 06.3 4Q 07.3 1Q 07.3 2Q 07.3 3Q 07.3 4Q 08.3 1Q 08.3 2Q

Ongoing Shift from Savings to Investment in Japan

(billions of yen) Investment trust net asset inflow

Net asset inflow (= sales – repurchases and redemptions)


18

0

5

10

15

20

25

30

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.31H

Strategy to expand customer contact points

Increasing Contact with Customers (1)

(announced)

Target: 50 – 100 new branchesTarget: 3,000 advisors Target: 1,000 staff

Financial advisorsFinancial advisors Branch officesBranch offices Call centersCall centers

Nov. 2007167

Mar. 2006134

Oct. 2007700

Mar. 2006600

Mar. 20061,948

Sept. 20072,342

Further acceleration of net asset inflow

Accumulated net inflow of Domestic Client Assets since

March 2003

= 26 trillion yen

Accumulated net inflow of Domestic Client Assets since

March 2003

= 26 trillion yen

(trillions of yen)

(approx.)


19

0

20

40

60

80

100

120

140

160

2006

/03

2006

/04

2006

/05

2006

/06

2006

/07

2006

/08

2006

/09

2006

/10

2006

/11

2006

/12

2007

/01

2007

/02

2007

/03

2007

/04

2007

/05

2007

/06

2007

/07

711

749

429

3,1552,001 831

4,806

429

232

New branches opened since 2006 and assets in custody

Increasing Contact with Customers (2)Opening new branches in strategic locations

2006 Kariya, Koshigaya, Ichikawa, Sakurashinmachi, Sagamihara, Kojimachi, Esaka, Kasugai

2007 Shin-Yokohama, Okamoto, Gakuenmae, Koishikawa, Naka-Meguro, Kinshicho, Kamakura, Konandai, Iidabashi, Kanda, Ibaraki, Tsurumi, Hamadayama, Daito, Sangenjaya

New branches opened since 2006

1 Source: “Distributional Survey of Stock Certificates Physically Held by Shareholders (April, 2007)”, Reform Promotion Center for Securities Clearing andSettlement System, Japan Securities Dealers Association

Assets in custody

Nomura Securities branches: 10 branches1 branch

Shareholders with physically-held stock certificates (thousands)1

New branches opened since 2006: 10 branches1 branch

Assets in custody (billions of yen)

06/03 06/04 06/05 06/06 06/07 06/08 06/09 06/10 06/11 06/12 07/01 07/02 07/03 07/04 07/05 07/06 07/07


20

33

Strengthen domestic client base

Domestic Retail is a growing business2

New start for Global Markets1

International strategyInternational strategy “Growing triangle” based on global sales strength“Growing triangle” based on global sales strength


Focus on client businesses

Three Strategies

21

Seek growth in Japan, Europe/US, and Asia based on client-centric strategy

International Strategy Regional missions

AmericasAmericasAmericas

Focus on core businesses

Core businesses1. Japanese/Asian equities sales2. Asset management3. Derivatives (structured products)4. Instinet

EuropeEuropeEurope

Enhance function as product supply hub

AsiaAsiaAsia

Business expansion based around Asia

1. Supply products to Japan and Asia2. Expand client-centric businesses

conducted entirely in Europe

1. Investment to and from Asia2. Each region and business division

approach to Asia

Three Strategies: 3. International strategy

22

-140

-120

-100

-80

-60

-40

-20

0

20

40

2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 1H 2009.3

Current Status and Outlook for Americas

Focus on core businesses Profitable from next fiscal year

Americas income before income taxes(billions of yen)

(FY)

ProfitableProfitable


23

0

2

4

6

8

10

12

14

16

2005.31H

2005.32H

2006.31H

2006.32H

2007.31H

2007.32H

2008.31H

0

20

40

60

80

100

120

140

2005.31H

2005.32H

2006.31H

2006.32H

2007.31H

2007.32H

2008.31H

Current Status of Europe and Asia

Experience in Japan and Asia and sales strength represent distinct competitive advantagesEurope

Sales of products from Japan and Europe; delivering Asian products to Japan and EuropeAsia

(billions of yen) (billions of yen)Revenue in Europe Revenue in Asia

(FY) (FY)


24

Europe/AmericasEurope/

AmericasOrigination

AsiaAsiaDistribution Origination

JapanJapanDistribution

“Growing Triangle” Backed by global sales strength

PIK Group (Russia) global IPO (2bn dollars)IPO of Russian real estate company Sistema-Hals(430mn dollars)

Sales of equity derivatives GM

IB

GM

IB

AM

GMB

Cadbury Schweppes (UK) tender offer forSansei Foods (14bn yen)Sales of equity derivativesGM

IBIncreased headcount in Asian equity salesEstablished Wealth Management in AsiaEstablished Asia Asset FinanceEstablished Asia Project FinanceCollaboration with Instinet

Increased headcount in Asia (Up from 45 in Sept. 2005 to 80 in Sept. 2007)

Established Asia Merchant Banking

One of world’s largest set ups for managing Asian equities(Now 17 people -> 33)Sales of Japanese equity funds (Samsung Securities,Taishin International Bank)Became member of the Islamic Financial Services Board


25

0

1

2

3

4

5

6

2005.31H

2005.32H

2006.31H

2006.32H

2007.31H

2007.32H

2008.31H

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2003.31H

2003.32H

2004.31H

2004.32H

2005.31H

2005.32H

2006.31H

2006.32H

2007.31H

2007.32H

2008.31H

(FY) (FY)

Asian Equities and Asian Wealth Management Business

Asian equitiesInvestment to Asia

Asian wealth management businessInvestment from Asia

Revenue from Asian equity sales(includes some Japanese equities)

Revenue from Asian wealth management business

(Asia)(billions of yen) (billions of yen)


26

0

100

200

300

400

500

600

700

800

900

2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2007.10

Bringing Performance in Asia to Japan

Assets under management in Nomura Asset Management Asia equity-related funds(billions of yen)


27

Capital PolicyCapital Policy

28

30%

41%

48%

18%

24%

17%

0

30

60

90

120

150

0%

10%

20%

30%

40%

50%

Target dividend = Minimum level set based on DOE of 3.0%

+Total dividend

Capital Policy

Changes to Policy for Returning Profits to Shareholders

Performance-linked = Based on annual dividend payout ratio of over 30%1

1 When a sufficient level of profit is achieved, an amount will be added to the year-end target dividend so that the annual consolidateddividend payout ratio is above 30%.(billions of yen)

Share buybacks (lhs)

Target dividend (lhs)

Consolidated payout ratio (rhs)

Performance-linked portion (lhs)

Target dividend (minimum)

Performance-linked

Fixed dividend

FY2002.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.315 15 15 20 48 44

Target dividend - - - - 24 32Performance-linked portion - - - - 24 12

11.1% 7.4% 10.1% 5.2% 15.5% 8.3%18% 24% 17% 41% 30% 48%Payout ratio

ROE

Dividend per share (yen)

(%)

29

SummarySummary

30

0

20

40

60

80

100

120

140

160

180

200

FY2002 2007.9

Summary-1

“Growing Triangle” Tapping strong client base in Japan to grow globally

Seeking growth in each region backed by Domestic Client Assets

JapanJapanDistributionDistribution

Europe/USEurope/USOriginationOrigination

AsiaAsiaDistributionOrigination

DistributionOrigination Growing

Triangle

Source: Nomura, based on company disclosures (yen translations are approximate figures).

Client Assets/Deposits in custody(trillions of yen)

FY2002 2007.9

A group (Japan) Nomura Morgan Stanley Merrill Lynch1

1 A Group (Japan) is sum of personal deposits and assets in custody at group securities firms.

31

-50

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006

Summary-2

“Growing Triangle” Taking Asian wealth to the world

(billions of US dollars)

Thailand TaiwanSingaporePhilippines MalaysiaSouth KoreaIndonesiaIndiaHong KongChina

Source: Nomura Securities Financial & Economic Research Center, based on government statistics and IMF International Financial Statistics

Portfolio investment abroad

JapanJapanDistributionDistribution

Europe/USEurope/USOriginationOrigination

AsiaAsiaDistribution Origination

Distribution Origination Growing

Triangle

Appendix

33

Macroeconomic Data

34

(yen)

Household Financial Assets926 trillion yen

Household Financial Assets1,356 trillion yen

Household Financial Assets1,555 trillion yen

Household Financial Assets332 trillion yen

Bonds 2.3%Equities 13.6%

Investment Trusts 1.3%

Cash &Deposits

58.7%Insurance & Annuities13.0%

Mar.1980

Mar.1989


Cash & Deposits

44.3%

Insurance &Annuities18.0%

Mar.2003

Equities 5.3%

Cash & Deposits

57.2%Insurance &Annuities27.8%

Jun.2007


Cash & Deposits

50.0%Insurance &Annuities25.9%

Investment Trusts 4.1%Bonds 1.7%

Investment Trusts 2.1% Investment Trusts 5.0%

Nikkei-225 and Distribution of Household Financial Assets

Early Early ’’80s80s11 Bubble periodBubble period22 Economic troughEconomic trough33 CurrentCurrent44

Source: Nomura, based on Bank of Japan data; Jun. 2007 figures are preliminary

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

11

22

3344

Macroeconomic Data

35

Source: Nomura, based on Bank of Japan data and FRB data; as of end Jun. 2007 preliminary figures

Cash & Deposits

12.4%

Insurance &Annuities

31.2%

Total53.3%

Total53.3%

Comparison of Household Financial Assets in Japan and US

Household Financial Assets 1,555 trillion yen

Jun.2007

Bonds 2.4%

Equities 12.2%

Cash & Deposits

50.0%Insurance & Annuities25.9%

Investment Trusts 5.0%

USJapanHousehold Financial Assets 44.3 trillion dollars

Total19.6%

Total19.6%

Jun.2007

Share7%

Share7%

Nomura Merrill Lynch

Household Financial Assets

Share28%

Share28% Investment Assets

305 trillion yen(Japan)

Domestic Client Assets84 trillion yen

Macroeconomic Data

Equities 31.7%Bonds 7.3%Investment Trusts 14.3%

Client Assets1.6 trillion dollars

Investment Assets23.6 trillion dollars

(US)

Market Share of Household Investment Assets

Source: Nomura, based on company disclosures (yen translations are approximate figures). Investment assets as of Jun. 2007; Domestic Client Assets and client assets as of Sept. 2007.

36

45 49 48 53 72 77 100140

184217 203

172126 119 123 118

144103 90 96

138107 85 72

116 132196 186 19014

23

33

3838

34

28 27 28 2229

2825 26

3234

3028

3438

55 68 78

1922

22

21

18 18

23

28 31 31 32

29

2827 25

2427

2623

2330

34 3838

12106544

17

8141110

200

285 292305

173

123142

168194

147142159

202173182177182

229

260273

238

184

57 64 64 73

13710899

0

50

100

150

200

250

300

350

195 217 242 263 283 305 329 355 382 410 448 482 517 540 567 601 630 658 694 724 745 751 765 775 780 775 770 770 778

0

200

400

600

800

0.01.02.03.04.05.06.07.08.0

Source: Nomura, based on Bank of Japan, Japan Post data; as of end Nov. 2007, Jun. 2007 figures are preliminary

Investment Assets among Households

(P)

Cash & DepositsCash & Deposits

Investment AssetsInvestment Assets

(%)

(trillions of yen)

(trillions of yen)

BondsInvestment Trusts Equities

Japan Post "Teigaku Saving(fixed 3y)” (lhs)Cash & deposits (rhs)

Mar.'80

Mar.'81

Mar.'82

Mar.'83

Mar.'84

Mar.'85

Mar.'86

Mar.'87

Mar.'88

Mar.'89

Mar.'90

Mar.'91

Mar.'92

Mar.'93

Mar.'94

Mar.'95

Mar.'96

Mar.'97

Mar.'98

Mar.'99

Mar.'00

Mar.'01

Mar.'02

Mar.'03

Mar.'04

Mar.'05

Mar.'06

Mar.'07

Jun.'07

Macroeconomic Data

37

0

10

20

30

40

50

60

70

80

90

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Nikkei-225 Stock Average (lhs)

Publicly Offered Investment Trusts Net Assets

(yen)

45.5 trillion yen

Dec. 1989Publicly Offered Stock

Investment Trusts

60.5 trillion yen

Jun. 2000Publicly Offered

Investment Trusts

82.2 trillion yen69.1 trillion yen

Oct. 2007Publicly Offered Stock

Investment Trusts Publicly Offered

Investment Trusts (trillions of yen)

Source: The Investment Trusts Association, Japan

Publicly Offered Bond Investment Trusts (rhs)(Including Money Management Funds)

Publicly Offered Stock Investment Trusts (rhs)

Macroeconomic Data

38

0

50

100

150

200

250

69 72 75 78 81 84 87 90 93 96 99 2002 20050502

Sixth straight year of profit growth expectedSixth straight year of profit growth expected

Japanese Corporate Earnings Outlook

(FY1989=100)

NOMURA400 recurring profit NOMURA400 recurring profit (consolidated)(consolidated)

(FY)Note: FY07 is forecast by Nomura Securities Financial & Economic Research Center (as of November 22, 2007)

Source: Nomura Securities Financial & Economic Research Center

Macroeconomic Data

39

0

5

10

15

20

25

30

35

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

(% )

Corporates

Individuals

Banks

Life insurers

Trust banksNon-Japanese Annuity trusts

Investment trusts

Shareholders of Listed Japanese Companies

(FY)

Note: Distribution of listed common stock of domestic companies as at end of each fiscal year. Trust banks includes shares held only on bank accounts.Source: Nomura Securities Financial & Economic Research Center, based on data from Japanese securities exchanges.

Macroeconomic Data

(%)

40

0

2

4

6

8

10

12

14

16

2001 2002 2003 2004 2005 2006

GDPGDP

Australia

Canada

UK

US

France

Japan

GDP and M&A Ratios

(%)M&A / GDP ratioM&A / GDP ratio

(billions of US dollars)

Source: IMF, Thomson Financial, others. Prepared by Nomura.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

US

Japan UK

France

Canada

Australia

Macroeconomic Data

(CY) US Japan UK France Canada Australia

41

Domestic Retail

42

44 41

5561

81 85 84

10052

5550

61

5256

0

20

40

60

80

100

120

2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2007.9 2010.30

100

200

300

400

500

600

1 Return on Domestic Client Assets = Domestic retail net revenue/Domestic Client Assets (end of period)

Targeting 100 trillion yen in Domestic Client AssetsDomestic Client Assets (trillions of yen)Return on Domestic Client Assets (bps)

Net revenue(billions of yen)

Domestic Client Assets (at end, lhs)Return on Domestic Client Assets (lhs)Domestic Retail net revenue (rhs)

Domestic Retail

Domestic Client Assets target: 100 trillion=> Revenue of around 500 billion yen

1

(FY)

43

Japanese equities12%

Global equities 22%

Balanced-type43%

Global bonds 18%

Product Strategy Matched to Customer Needs

Domestic Retail top-ranking1 investment trusts (as of Mar. 2000)

Domestic Retail top-ranking1 investment trusts (as of Mar. 2000)

Domestic Retail top-ranking1 investment trusts (as of Oct. 2007)

Domestic Retail top-ranking1 investment trusts (as of Oct. 2007)

Global bonds 3%Global equities 4%

Balanced-type 3%

Japanese equities 90%

(billions of yen) (billions of yen)

1 Nomura Japan Stock Strategic Fund (Big Project-N) 1,0892 Fidelity Japan Open 4333 Nomura Japan Open 3134 Small Capitalization Blue Chip Open 1815 Nomura Information/Electronics RF Rainbow 1096 Janus Global Technology Fund 1007 Nomura Index Open Nikkei 300 978 Asset Backed Securities Open 849 Invesco GT Global Investment Open 82

10 Nomura Accumulation Stock Fund - MIP 782,566Total

Global REITs 5%

1 Excluding short-term (MMFs, foreign currency MMFs, etc) and bond investment trusts

Domestic Retail

1 My Story Profit Distribution-type Fund (6 times/year) 2,0042 Global Attractive Dividend Stock Fund (Monthly) 4463 Asia Attractive Dividend Stock Fund 3694 Nomura Global High Interest Rate Currencies Fund 3555 Nomura Multi-currency Japan Stock Fund 2836 Nomura US High Yield Corporate Bond Fund 2677 Nomura Japan Stock Strategic Fund (Big Project-N) 2558 Nomura Global REIT Fund 2459 Nomura Euro Top Company 232

10 Nomura Fund Masters Global Bond 2124,669Total

44

Stock Investment Trust AccountsBalance of Stock Investment Trusts per Account

(millions of yen)

(million accounts)

Domestic Retail

1.0 1.2

10

58.7 trillion yen

2007.9

3.3 trillion yen2005.4

45

Global Markets

46

Dispersion of trading risk and increase in revenue sources

by diversifying product offering

FY2008 1H: 280 billion yen

FY2008 1H: 800 billion yen

Retail foreign Retail foreign currency bondscurrency bonds

Interest rate/forexInterest rate/forex--linked structured linked structured

bondsbonds

EquityEquity--linked linked structured bonds/structured bonds/Fund derivativesFund derivatives

CreditCredit--linked linked productsproducts

CommodityCommodity--linked linked structured bondsstructured bonds

Diversification of Product Offering

Global Markets

47

0

50

100

150

200

250

300

350

2007.3 4Q 2008.3 1Q 2008.3 2Q

Chi-X Order Flow (daily transaction value/one-way)(millions of euro)

Global Markets

48


490.0

0.5

1.0

1.5

2.0

2.5

3.0

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 1H

0

20

40

60

80

100

120

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.31H

Global Investment BankingLeague tables

Any Japanese involvement financial advisors (announced deals, value base)

Global equity & equity-related (Japan)

Source: Nomura, based on Thomson Financial

GIB Net revenue and income before income taxes

Equity finance results

Net revenueIncome before income taxes

PO/IPO/CB/REIT lead managerMPO/HPO

(billions of yen)

(trillions of yen)

Source: Nomura


FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.31H

Rank Value($mil) 12,478 20,204 65,675 40,044 36,925 12,549

Mkt.Share (%) 19% 23% 49% 27% 21% 25%

Rank 2nd 3rd 1st 1st 3rd 1st

No. ofDeals 108 126 132 134 156 75

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.31H

Proceeds($mil) 7,243 14,054 13,571 14,118 19,150 4,323

Mkt.Share (%) 30% 30% 25% 26% 33% 43%

Rank 1st 1st 1st 1st 1st 1st

50


51

202.7231.2

98.7132.1

84.535.9

412.7

543.4

439.1457.6

375.7

301.6

0

100

200

300

400

500

600

Business ExposureBusiness exposure at end of period

Terra FirmaEurope (ex. Terra Firma)Japan

(billions of yen)

1 Japan is total of Nomura Principal Finance, Nomura Financial Partners, Nomura Research & Advisory and others2 Europe (excluding Terra Firma) is total of the Private Equity Group and Nomura Phase4 Ventures

2003.3 2004.3 2005.3 2006.3 2007.3 2007.9Japan 20.1 68.9 108.4 59.9 195.5 168.4Europe (excluding Terra Firma) 15.9 15.6 23.7 38.8 35.7 34.3

Sub Total 35.9 84.5 132.1 98.7 231.2 202.7

Terra Firma 265.7 291.2 325.5 340.4 312.2 210.0

Total 301.6 375.7 457.6 439.1 543.4 412.7

1

2


52

-20

0

20

40

60

80

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 (1H)

0

50

100

150

200

250

300

FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 (1H)

Partial sale of stake

Deutsche Annington

Partial sale of stakeTungaloy

Sale of stake

Sale of stakeSliontec

Main Investments and Exits


(billions of yen)

(billions of yen)

Build investment portfolio of 250-300bn yenIRR over 20%, time-span of 3-5 years

Net revenueIncome before income taxes

Partial sale of stakeWanbishi Archives

Sale of stakeMillennium Retailing

Deutsche Annington

Global Merchant Banking business exposure (ex. Terra Firma; at end of period)

MBO

Capital increase

Wanbishi Archives

Resort Solutions (formerly Misawa Resort)

MBO

MBO

MBO

Taiyo Electric(Parent: NEC)

Tungaloy(formerly Toshiba Tungaloy)

Sliontec(Parent: Hitachi)

Capital increaseMisawa Homes

Revitalization sponsor

Capital increase

Huis Ten Bosch

Millennium Retailing

Review of shareholder composition

YMC

SkylarkMitsui Life Insurance

Eastern

MBOCapital increaseCapital increase

Tsubaki Nakashima MBO

Kawamura Electric Review of shareholdercomposition

53

Merchant Banking Strengths and Results

Main strength is sourcing capability via nationwide network

MBO

November 2003Tungaloy (Kanagawa)

November 2003Tungaloy (Kanagawa)

MBO

February 2007Tsubaki Nakashima

(Nara)

February 2007Tsubaki Nakashima

(Nara)Review of shareholder

profile

March 2007Kawamura Electric

(Aichi)

March 2007Kawamura Electric

(Aichi)

Invest: 50bn yenExit: Approx. 130bn yen

July 2004Millennium Retailing

(Tokyo)

July 2004Millennium Retailing

(Tokyo)

MBO

June 2006Skylark (Tokyo)

June 2006Skylark (Tokyo)

MBO

December 2003Sliontec (Kanagawa)

December 2003Sliontec (Kanagawa)

MBO

Review of shareholderprofile

July 2001CCI (Gifu)July 2001

CCI (Gifu)

March 2005YMC (Kyoto)

March 2005YMC (Kyoto)

Business revitalization

June 2004Huis Ten Bosch

(Nagasaki)

June 2004Huis Ten Bosch

(Nagasaki)

Capital increase

September 2006Eastern (Nagano)

September 2006Eastern (Nagano)


54

Asset Management

55

0.3

0.9

2.42.7

0

1

2

3

0

200

400

600

800

1,000

1,200

0510 0512 0603 0606 0609 0612 0703 0706 0709

Aiming to Boost Share of Funds for Bank Customers

(billions of yen) (trillions of yen)

Nomura Asset Management share of investment trusts sold by Japan Post Bank

Nomura Asset Management share of investment trusts sold by Japan Post Bank

Nomura Asset Management AuM in funds for bank and

Japan Post Bank customers1

Nomura Asset Management AuM in funds for bank and

Japan Post Bank customers1

Nomura Asset Management

Competitor products

560 billion yen(56.4%)

560 billion yen(56.4%)

Asset Management

Oct.2005

Dec.2005

Mar.2006

Jun.2006

Sep.2006

Dec.2006

Mar.2007

Jun.2007

Sep.2007

Mar.2005 Mar.2006 Mar.2007 Sep.2007

1 Excludes funds sold by Nomura Trust & Banking

56

Share Price

57

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

80/0

1

81/0

1

82/0

1

83/0

1

84/0

1

85/0

1

86/0

1

87/0

1

88/0

1

89/0

1

90/0

1

91/0

1

92/0

1

93/0

1

94/0

1

95/0

1

96/0

1

97/0

1

98/0

1

99/0

1

00/0

1

01/0

1

02/0

1

03/0

1

04/0

1

05/0

1

06/0

1

07/0

1

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

Nomura Holdings Share Price

Share price (monthly) and trading volume1 since 1980Share price (monthly) and trading volume1 since 1980(yen)

(thousandsof shares)

1 Daily average by month

1980/01 - 2007/10

285(80/04)

5,816(87/04)

805(98/10)

3,510(00/02)

1,087(03/04)

Share Price

0

Documents

Presentation to Nomura Investment Forum 2007 (PDF)€¦ · 219 178 482 353-200-100 0 100 200 300 400 500 600 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2010.3 500 2 3. Develop new