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 . Next phase of growth 3 . In closing

Achieving growth under adverse conditions Last year we took off on our way to becoming a world-class organization Market capitalization Clear Regulatory BoA 16.7 environment JPM 16.6 Citi 10.8 GS 8.6 Barclays 6.1 UBS CS 5.8 Market 5.7 DB 4.5 Cloudy MS environment 3.8 Nomura 2.5 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. 3

US is missing link Comparison of revenues Breakdown of revenues Net revenue, income/loss before income taxes and ROE (billions of yen) (billions of yen) Revenue from US Net revenue Pretax ROE(%) 1,150.8 787.3 312.6 1150.8 105.2 3.7% -649 -3.3% Nomura UBS MS CS DB GS Barcap Citi JPM BoA FY07 FY08 FY09 Note: Peer group figures for year ended December 2009. BarCap US revenue is Barclays figure. -40.2% -780.3 4

5 Achieving growth and improving profit structure Break-even point

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

Enhancing Wholesale operations Stronger organizational structure FY09 Fixed Equities Income Investment Banking 7

Enhancing Wholesale operations Stronger organizational structure FY10 Fixed Equities Income Wholesale Investment Jasjit Bhattal Banking Wholesale Division President and COO Collaboration / Synergies 8

Collaboration between Wholesale and Retail divisions Collaborative approach Wholesale Wholesale Retail Retail (11,000 people) (15,000 people) Collaboration / Synergies 9

Perfect opportunity to increase market share Trend of balance sheet size Global peer group Nomura balance balance sheet total sheet; Demand (billions of USD) (trillions of yen) 18,000 60 16,575 55 16,159 16,000 50 14,424 46 46 45 41 14,000 40 40 13,086 12,000 35 37 30 30 10,000 22 25 26 20 20 8,000 15 6,000 10 2006/12/29 2007/12/31 2008/12/31 2009/12/31 Future 将来 Source: Demand from 2006 to 2009 is global capital markets and investment banking fee pool based on analysis by McKinsey & Company. 10 Dotted line from 2010 onwards extrapolates trend from 2009 and does not represent a guarantee of future performance.

Regional strategies Strategies by region Japan Japan Dominance Dominance EMEA EMEA Americas Americas Narrow and deep Narrow and deep Grow for strength Grow for strength Asia Asia- -Pacific Pacific Invest in growth Invest in growth 11

Being Asia-based gives us distinct identity Citi BarCap GS DB BoA UBS Nomura Nomura CS JPM GDP growth (2009) MS China India France US UK German Japan -10.0 -5.0 0.0 5.0 10.0 Source: IMF World Economic Outlook 12

Next phase of growth FY2008.03 FY2009.03 FY2010.03 FY2011.03- Consistently Loss Significant loss Returned to profit profitable Dealt with legacy assets, Took off on way to Asia’s global investment laid foundation for growth becoming world-class bank • Change of management • Trading losses and asset • Return to profit after two years • Global: Part of top tier writedowns due to global • Monoline-related losses • All divisions profitable • Asia: Only global house financial crisis • Fully exited US RMBS- • Overseas revenues exceed • Lehman Brothers acquisitions L h B th i iti related business l t d b i Japan revenues for first time • Wholesale division established as second revenue engine (billions of yen) 105.2 3.7% -64.9 -3.3% FY07 FY08 FY09 -20.0% Pretax -780.3 Started Y100bn cost cut (Apr) Continue cost cutting ROE(%) New employment track (Apr) Raise long-term capital Raised Y430bn (Oct) Respond to regulatory issues Raised Y280bn (March) Appointed Group SMDs (Nov) Financial Start of financial New financial Financial crisis order reform uncertainty 13

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

Current position Nomura now Global: Top 10 Global: Top 10 Japan: Only global house Japan: Only global house 15

Future position Nomura of the future Global: Top tier Global: Top tier Asia: Only global house Asia: Only global house Asia’s global house Asia’s global house 16

Future direction Client Client- -focused focused Business Business- -driven driven Internal momentum Internal momentum 17

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