6-K 1 d226882d6k.htm FORM 6-K FORM 6-K
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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

For the month of July 2016

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):             

 

 

 

 


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Information furnished on this form:

EXHIBIT

 

Exhibit Number
1.    Financial Summary – three months ended June 30, 2016

The registrant hereby incorporates Exhibit 1 to this report on Form 6-K by reference in the prospectus that is part of Registration Statement on Form F-3 (Registration No. 333-191250) of the registrant and Nomura America Finance, LLC, filed with the Securities and Exchange Commission on September 19, 2013.


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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: July 28, 2016    By:  

/s/ Hajime Ikeda

     Hajime Ikeda
     Senior Managing Director


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Financial Summary For the Three Months Ended June 30, 2016 (U.S. GAAP)

 

Date:

   July 28, 2016

Company name (code number):

   Nomura Holdings, Inc. (8604)

Stock exchange listings:

   (In Japan) Tokyo, Nagoya
   (Overseas) New York, Singapore

Representative:

   Koji Nagai
   Group CEO, Nomura Holdings, Inc.

For inquiries:

   Michio Okazaki
   Managing Director, Head of Management Accounting and Investor Relations, Nomura Holdings, Inc.
   Tel: (Country Code 81) 3-5255-1000
   URL: http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results

 

     (Rounded to nearest million)
     For the three months ended June 30
     2015     2016
     (Millions of yen, except per share data)
           % Change from
June 30, 2014
         

% Change from

June 30, 2015

Total revenue

     508,448        10.0     418,412      (17.7%)

Net revenue

     424,032        14.3     338,480      (20.2%)

Income before income taxes

     106,012        105.2     62,765      (40.8%)

Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders

     68,742        246.1     46,825      (31.9%)

Comprehensive income

     89,646        612.7     (46,781   —  %

Basic-Net income attributable to NHI shareholders per share (Yen)

     19.11          13.00     

Diluted-Net income attributable to NHI shareholders per share (Yen)

     18.65          12.71     

Return on shareholders’ equity-annualized

     10.0       7.0  

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position

 

     At March 31     At June 30  
     2016     2016  
     (Millions of yen, except per share data)  

Total assets

     41,090,167        42,918,447   

Total equity

     2,743,015        2,699,280   

Total NHI shareholders’ equity

     2,700,239        2,642,277   

Total NHI shareholders’ equity as a percentage of total assets

     6.6     6.2

Total NHI shareholders’ equity per share (Yen)

     748.32        736.47   

 

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2. Cash Dividends

 

                                                                       
     For the year ended March 31  
     2016      2017      2017 (Plan)  
     (Yen amounts)  

Dividends per share

        

Dividends record dates

        

At June 30

     —           —           —     

At September 30

     10.00         —           Unconfirmed   

At December 31

     —           —           —     

At March 31

     3.00         —           Unconfirmed   

For the year

     13.00         —           Unconfirmed   

Note: Nomura plans to forgo dividend distribution for Q3 of fiscal year 2017. Fiscal year 2017 Q2 and Q4 dividend amount are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2017”.

3. Earnings Forecasts for the year ending March 31, 2017

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

Notes

(1) Changes in significant subsidiaries during the period: None

      (Changes in Specified Subsidiaries accompanying changes in scope of consolidation.)

(2) Adoption of the simplified and particular accounting treatments: None

(3) Changes in accounting policies

 

  a) Changes in accounting policies due to amendments to the accounting standards : Yes
  b) Changes in accounting policies due to other than a) : None

(4) Number of shares issued (common stock)

 

     At March 31      At June 30  
     2016      2016  

Number of shares outstanding (including treasury stock)

     3,822,562,601         3,822,562,601   

Number of treasury stock

     214,170,602         234,811,125   
     For the three months ended June 30  
     2015      2016  

Average number of shares outstanding (year-to-date)

     3,596,764,719         3,600,920,503   

*Quarterly review

The review process of the quarterly consolidated financial statements for this period has not been completed by the external auditors at the point of disclosing this financial summary. As a result of such review, certain of the information set forth herein could be subject to revision, possibly material, in the quarterly securities report for the period ended June 30, 2016, an English translation of which the registrant plans to furnish on Form 6-K in due course.

 

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Table of Contents for the Accompanying Materials

 

1.    Qualitative Information of the Quarterly Consolidated Results      P.2   

(1)     Consolidated Operating Results

     P.2   

(2)     Consolidated Financial Position

     P.4   

(3)     Consolidated Earnings Forecasts

     P.4   
2.    Notes to the Summary Information      P.5   

(1)     Changes in Accounting Policies

     P.5   

3.    Quarterly Consolidated Financial Statements 

     P.5   

(1)     Consolidated Balance Sheets

     P.6   

(2)     Consolidated Statements of Income

     P.8   

(3)     Consolidated Statements of Comprehensive Income

     P.9   

(4)     Note with respect to the Assumption as a Going Concern

     P.9   

(5)     Segment Information – Operating Segment

     P.10   

(6)     Significant Changes in Equity

     P.11   

4.    Supplementary Information 

     P.12   

(1)     Consolidated Statements of Income – Quarterly Comparatives

     P.12   

(2)     Business Segment Information – Quarterly Comparatives

     P.13   

(3)     Unconsolidated Quarterly Financial Statements [Japanese GAAP]

     P.14   

(4)     Other

     P.14   

 

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1. Qualitative Information of the Quarterly Consolidated Results

 

(1) Consolidated Operating Results

U.S. GAAP

 

                             
     Billions of yen     % Change  
     For the three months ended     (B-A)/(A)  
     June 30,
2015 (A)
    June 30,
2016 (B)
   

Net revenue

     424.0           338.5           (20.2

Non-interest expenses

     318.0        275.7        (13.3
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     106.0        62.8        (40.8

Income tax expense

     36.4        15.8        (56.6
  

 

 

   

 

 

   

 

 

 

Net income (loss)

     69.6        47.0        (32.6
  

 

 

   

 

 

   

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

     0.9        0.1        (83.5
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to NHI shareholders

     68.7        46.8        (31.9
  

 

 

   

 

 

   

 

 

 

Return on shareholders’ equity-annualized

     10.0     7.0     —     
  

 

 

   

 

 

   

 

 

 

 

Note: Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (collectively, “Nomura”) reported net revenue of 338.5 billion yen for the three months ended June 30, 2016, a decrease of 20.2% from the same period in the prior year. Non-interest expenses decreased by 13.3% from the same period in the prior year to 275.7 billion yen. Income before income taxes was 62.8 billion yen and net income attributable to NHI shareholders was 46.8 billion yen for the three months ended June 30, 2016.

Segment Information

 

                             
     Billions of yen     % Change  
     For the three months ended     (B-A)/(A)  
     June 30,
2015 (A)
    June 30,
2016 (B)
   

Net revenue

     415.0           349.0           (15.9

Non-interest expenses

     318.0        275.7        (13.3
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     97.0        73.3        (24.4
  

 

 

   

 

 

   

 

 

 

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the three months ended June 30, 2016 was 349.0 billion yen, a decrease of 15.9% from the same period in the prior year. Non-interest expenses decreased by 13.3% from the same period in the prior year to 275.7 billion yen. Income before income taxes was 73.3 billion yen for the three months ended June 30, 2016. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

 

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<Business Segment Results>

Operating Results of Retail

 

                             
     Billions of yen     % Change  
     For the three months ended     (B-A)/(A)  
     June 30,
2015 (A)
    June 30,
2016 (B)
   

Net revenue

     130.7           83.8           (35.9

Non-interest expenses

     79.8        75.1        (5.9
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     50.9        8.7        (83.0
  

 

 

   

 

 

   

 

 

 

Net revenue decreased by 35.9% from the same period in the prior year to 83.8 billion yen, primarily due to decreasing commissions from distribution of investment trusts and brokerage. Non-interest expense decreased by 5.9% to 75.1 billion yen. As a result, income before income taxes decreased by 83.0% to 8.7 billion yen.

Operating Results of Asset Management

 

                             
     Billions of yen     % Change  
     For the three months ended     (B-A)/(A)  
     June 30,
2015 (A)
    June 30,
2016 (B)
   

Net revenue

       26.9             25.9           (3.7

Non-interest expenses

     15.2        13.7        (9.7
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     11.7        12.2        4.2   
  

 

 

   

 

 

   

 

 

 

Net revenue decreased by 3.7% from the same period in the prior year to 25.9 billion yen. Non-interest expense decreased by 9.7% to 13.7 billion yen. As a result, income before income taxes increased by 4.2% to 12.2 billion yen. Assets under management were 37.3 trillion yen as of June 30, 2016.

Operating Results of Wholesale

 

                             
     Billions of yen     % Change  
     For the three months ended     (B-A)/(A)  
     June 30,
2015 (A)
    June 30,
2016 (B)
   

Net revenue

       205.2             190.9           (6.9

Non-interest expenses

     185.5        144.3        (22.2
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     19.7        46.6        137.1   
  

 

 

   

 

 

   

 

 

 

Net revenue decreased by 6.9% from the same period in the prior year to 190.9 billion yen. Non-interest expense decreased by 22.2% to 144.3 billion yen. As a result, income before income taxes increased by 137.1% from the same period in the prior year to 46.6 billion yen.

 

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Other Operating Results

 

     Billions of yen      % Change  
     For the three months ended      (B-A)/(A)  
     June 30,
2015 (A)
     June 30,
2016 (B)
    

Net revenue

       52.2           48.4         (7.3

Non-interest expenses

     37.5         42.6         13.6   
  

 

 

    

 

 

    

 

 

 

Income (loss) before income taxes

     14.7         5.8         (60.8
  

 

 

    

 

 

    

 

 

 

Net revenue was 48.4 billion yen. Income before income taxes was 5.8 billion yen.

 

(2) Consolidated Financial Position

Total assets as of June 30, 2016 were 42,918.4 billion yen, an increase of 1,828.3 billion yen compared to March 31, 2016, mainly due to the increase in Securities purchased under agreements to resell and Trading assets. Total liabilities as of June 30, 2016 were 40,219.2 billion yen, an increase of 1,872.0 billion yen compared to March 31, 2016, mainly due to the increase in Securities sold under agreements to repurchase. Total equity as of June 30, 2016 was 2,699.3 billion yen, a decrease of 43.7 billion yen compared to March 31, 2016.

 

(3) Consolidated Earnings Forecasts

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings and dividend forecasts.

 

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2. Notes to the Summary Information

 

(1) Changes in Accounting Policies (UNAUDITED)

Recognition and measurement of financial assets and financial liabilities

On April 1, 2016, Nomura early adopted the presentation change of own credit adjustments provided by Accounting Standards Update 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities.” Accordingly, unrealized changes in the fair value of financial liabilities elected for the fair value option attributable to instrument-specific credit risk (“own credit adjustments”) are now presented separately in other comprehensive income rather than through earnings. As a result of this adoption based on the modified retrospective application, the beginning balance of Retained earnings has been adjusted.

Consolidation analysis

On April 1, 2016, Nomura adopted Accounting Standard Update 2015-02 “Amendments to the Consolidation Analysis.” Accordingly, the consolidation guidance applied to certain investment companies, money market funds, qualifying real estate funds and similar entities has been changed. As a result of this adoption based on the modified retrospective application, the beginning balance of Noncontrolling interests has been adjusted.

Presentation of debt issuance costs

On April 1, 2016, Nomura adopted Accounting Standard Update 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Accordingly, debt issuance costs related to a recognized debt liability, which used to be presented as a separate asset, are now presented as a direct deduction from the carrying amount of that debt liability. These accounting changes have not had a material impact on Nomura’s consolidated financial statements.

 

3. Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 23, 2016) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 23, 2016) for the year ended March 31, 2016.

The review process of the quarterly consolidated financial statements for this period has not been completed by the external auditors.

 

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(1) Consolidated Balance Sheets (UNAUDITED)

 

     Millions of yen  
     March 31,
2016
    June 30,
2016
    Increase/
(Decrease)
 
ASSETS       

Cash and cash deposits:

      

Cash and cash equivalents

     3,476,261        1,950,897        (1,525,364

Time deposits

     196,632        163,039        (33,593

Deposits with stock exchanges and other segregated cash

     225,950        248,669        22,719   
  

 

 

   

 

 

   

 

 

 

Total cash and cash deposits

     3,898,843        2,362,605        (1,536,238
  

 

 

   

 

 

   

 

 

 

Loans and receivables:

      

Loans receivable

     1,605,603        1,484,536        (121,067

Receivables from customers

     210,844        181,942        (28,902

Receivables from other than customers

     1,156,608        1,516,854        360,246   

Allowance for doubtful accounts

     (3,477     (3,533     (56
  

 

 

   

 

 

   

 

 

 

Total loans and receivables

     2,969,578        3,179,799        210,221   
  

 

 

   

 

 

   

 

 

 

Collateralized agreements:

      

Securities purchased under agreements to resell

     9,205,165        11,189,830        1,984,665   

Securities borrowed

     5,872,495        5,760,815        (111,680
  

 

 

   

 

 

   

 

 

 

Total collateralized agreements

     15,077,660        16,950,645        1,872,985   
  

 

 

   

 

 

   

 

 

 

Trading assets and private equity investments:

      

Trading assets*

     16,379,424        17,519,194        1,139,770   

Private equity investments

     30,578        27,684        (2,894
  

 

 

   

 

 

   

 

 

 

Total trading assets and private equity investments

     16,410,002        17,546,878        1,136,876   
  

 

 

   

 

 

   

 

 

 

Other assets:

      

Office buildings, land, equipment and facilities

(net of accumulated depreciation and amortization of
¥402,599 million as of March 31, 2016 and
¥396,766 million as of June 30, 2016)

     355,507        348,106        (7,401

Non-trading debt securities*

     870,812        879,487        8,675   

Investments in equity securities*

     137,970        123,854        (14,116

Investments in and advances to affiliated companies*

     395,284        391,031        (4,253

Other

     974,511        1,136,042        161,531   
  

 

 

   

 

 

   

 

 

 

Total other assets

     2,734,084        2,878,520        144,436   
  

 

 

   

 

 

   

 

 

 

Total assets

     41,090,167        42,918,447        1,828,280   
  

 

 

   

 

 

   

 

 

 

 

* Including securities pledged as collateral

 

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     Millions of yen  
     March 31,
2016
    June 30,
2016
    Increase/
(Decrease)
 
LIABILITIES AND EQUITY       

Short-term borrowings

     662,902        722,950        60,048   

Payables and deposits:

      

Payables to customers

     688,196        715,092        26,896   

Payables to other than customers

     1,337,931        1,736,240        398,309   

Deposits received at banks

     2,222,991        1,103,619        (1,119,372
  

 

 

   

 

 

   

 

 

 

Total payables and deposits

     4,249,118        3,554,951        (694,167
  

 

 

   

 

 

   

 

 

 

Collateralized financing:

      

Securities sold under agreements to repurchase

     14,192,309        17,102,372        2,910,063   

Securities loaned

     1,937,009        2,010,872        73,863   

Other secured borrowings

     476,273        402,893        (73,380
  

 

 

   

 

 

   

 

 

 

Total collateralized financing

     16,605,591        19,516,137        2,910,546   
  

 

 

   

 

 

   

 

 

 

Trading liabilities

     7,499,335        7,528,501        29,166   

Other liabilities

     1,200,647        1,137,392        (63,255

Long-term borrowings

     8,129,559        7,759,236        (370,323
  

 

 

   

 

 

   

 

 

 

Total liabilities

     38,347,152        40,219,167        1,872,015   
  

 

 

   

 

 

   

 

 

 

Equity

      

NHI shareholders’ equity:

      

Common stock

      

                Authorized

 

  -

 

 6,000,000,000 shares

      

Issued

 

  -

 

 3,822,562,601 shares as of March 31, 2016 and

 3,822,562,601 shares as of June 30, 2016

      

Outstanding

 

  -

 

 3,608,391,999 shares as of March 31, 2016 and

 3,587,751,476 shares as of June 30, 2016

     594,493        594,493        —     

Additional paid-in capital

     692,706        689,859        (2,847

Retained earnings

     1,516,577        1,542,199        25,622   

Accumulated other comprehensive income

     44,980        (28,615     (73,595
      

 

 

   

 

 

   

 

 

 

Total NHI shareholders’ equity before treasury stock

     2,848,756        2,797,936        (50,820

Common stock held in treasury, at cost -

      

214,170,602 shares as of March 31, 2016 and

      

234,811,125 shares as of June 30, 2016

     (148,517     (155,659     (7,142
      

 

 

   

 

 

   

 

 

 

Total NHI shareholders’ equity

     2,700,239        2,642,277        (57,962
  

 

 

   

 

 

   

 

 

 

Noncontrolling interests

     42,776        57,003        14,227   
  

 

 

   

 

 

   

 

 

 

Total equity

     2,743,015        2,699,280        (43,735
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     41,090,167        42,918,447        1,828,280   
  

 

 

   

 

 

   

 

 

 

 

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(2) Consolidated Statements of Income (UNAUDITED)

 

     Millions of yen     % Change  
     For the three months ended        
     June 30,
2015 (A)
    June 30,
2016 (B)
    (B-A)/(A)  

Revenue:

      

Commissions

     130,343        76,255        (41.5

Fees from investment banking

     24,497        17,313        (29.3

Asset management and portfolio service fees

     59,940        52,612        (12.2

Net gain on trading

     124,748        140,143        12.3   

Gain (loss) on private equity investments

     1,154        (13        —     

Interest and dividends

     113,649        106,551        (6.2

Gain (loss) on investments in equity securities

     9,186        (9,966     —     

Other

     44,931        35,517        (21.0
  

 

 

   

 

 

   

 

 

 

Total revenue

     508,448        418,412        (17.7

Interest expense

     84,416        79,932        (5.3
  

 

 

   

 

 

   

 

 

 

Net revenue

     424,032        338,480        (20.2
  

 

 

   

 

 

   

 

 

 

Non-interest expenses:

      

Compensation and benefits

     155,896        125,949        (19.2

Commissions and floor brokerage

     34,243        24,172        (29.4

Information processing and communications

     47,934        44,249        (7.7

Occupancy and related depreciation

     18,729        18,228        (2.7

Business development expenses

     8,330        8,296        (0.4

Other

     52,888        54,821        3.7   
  

 

 

   

 

 

   

 

 

 

Total non-interest expenses

     318,020        275,715        (13.3
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     106,012        62,765        (40.8

Income tax expense

     36,368        15,791        (56.6
  

 

 

   

 

 

   

 

 

 

Net income

     69,644        46,974        (32.6
  

 

 

   

 

 

   

 

 

 

Less: Net income attributable to noncontrolling interests

     902        149        (83.5
  

 

 

   

 

 

   

 

 

 

Net income attributable to NHI shareholders

     68,742        46,825        (31.9
  

 

 

   

 

 

   

 

 

 

Per share of common stock:

      
     Yen     % Change  

Basic-

      

Net income attributable to NHI shareholders per share

     19.11        13.00        (32.0
  

 

 

   

 

 

   

 

 

 

Diluted-

      

Net income attributable to NHI shareholders per share

     18.65        12.71        (31.8
  

 

 

   

 

 

   

 

 

 

 

8


Table of Contents
(3) Consolidated Statements of Comprehensive Income (UNAUDITED)

 

     Millions of yen     % Change  
     For the three months ended        
     June 30,
2015  (A)
    June 30,
2016 (B)
    (B-A)/(A)  

Net income

     69,644        46,974        (32.6

Other comprehensive income (loss):

      

Cumulative translation adjustments:

      

Cumulative translation adjustments

       20,549        (81,335        —     

Deferred income taxes

     (240         4,678        —     
  

 

 

   

 

 

   

 

 

 

Total

     20,309        (76,657     —     
  

 

 

   

 

 

   

 

 

 

Defined benefit pension plans:

      

Pension liability adjustment

     (522     (333     —     

Deferred income taxes

     330        57        (82.7
  

 

 

   

 

 

   

 

 

 

Total

     (192     (276     —     
  

 

 

   

 

 

   

 

 

 

Non-trading securities:

      

Net unrealized gain (loss) on non-trading securities

     (35     (2,062     —     

Deferred income taxes

     (80     (429     —     
  

 

 

   

 

 

   

 

 

 

Total

     (115     (2,491     —     
  

 

 

   

 

 

   

 

 

 

Own Credit Adjustments:

      

Own Credit Adjustments:

     —          (17,253     —     

Deferred income taxes

     —          2,922        —     
  

 

 

   

 

 

   

 

 

 

Total

     —          (14,331     —     
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     20,002        (93,755     —     
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     89,646        (46,781     —     

Less: Comprehensive income attributable to noncontrolling interests

     1,480        (717     —     
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to NHI shareholders

     88,166        (46,064     —     
  

 

 

   

 

 

   

 

 

 

 

(4) Note with respect to the Assumption as a Going Concern (UNAUDITED)

Not applicable.

 

9


Table of Contents
(5) Segment Information – Operating Segment (UNAUDITED)

The following table shows business segment information and reconciliation items to the consolidated statements of income.

 

     Millions of yen     % Change  
     For the three months ended        
     June 30,
2015 (A)
    June 30,
2016 (B)
    (B-A)/(A)  

Net revenue

      

Business segment information:

      

Retail

     130,689        83,751        (35.9

Asset Management

     26,917        25,934        (3.7

Wholesale

     205,184        190,932        (6.9
  

 

 

   

 

 

   

 

 

 

Subtotal

     362,790        300,617        (17.1

Other

     52,244        48,411        (7.3
  

 

 

   

 

 

   

 

 

 

Net revenue

     415,034        349,028        (15.9
  

 

 

   

 

 

   

 

 

 

Reconciliation items:

      

Unrealized gain (loss) on investments in equity securities held for operating purposes

     8,998        (10,548     —     
  

 

 

   

 

 

   

 

 

 

Net revenue

     424,032        338,480        (20.2
  

 

 

   

 

 

   

 

 

 

Non-interest expenses

      

Business segment information:

      

Retail

     79,790        75,086        (5.9

Asset Management

     15,171        13,695        (9.7

Wholesale

     185,513        144,290        (22.2
  

 

 

   

 

 

   

 

 

 

Subtotal

     280,474        233,071        (16.9

Other

     37,546        42,644        13.6   
  

 

 

   

 

 

   

 

 

 

Non-interest expenses

     318,020        275,715        (13.3
  

 

 

   

 

 

   

 

 

 

Reconciliation items:

      

Unrealized gain (loss) on investments in equity securities held for operating purposes

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Non-interest expenses

     318,020        275,715        (13.3
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

      

Business segment information:

      

Retail

     50,899        8,665        (83.0

Asset Management

     11,746        12,239        4.2   

Wholesale

     19,671        46,642        137.1   
  

 

 

   

 

 

   

 

 

 

Subtotal

     82,316        67,546        (17.9

Other*

     14,698        5,767        (60.8
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     97,014        73,313        (24.4
  

 

 

   

 

 

   

 

 

 

Reconciliation items:

      

Unrealized gain (loss) on investments in equity securities held for operating purposes

     8,998        (10,548     —     
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     106,012        62,765        (40.8
  

 

 

   

 

 

   

 

 

 

 

*  Major components

 

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

 

The following table presents the major components of income (loss) before income taxes in “Other.”

 

     Millions of yen     % Change  
     For the three months ended     (B-A)/(A)  
     June 30,
2015 (A)
    June 30,
2016 (B)
   

Net gain (loss) related to economic hedging transactions

     (2,553       11,974        —     

Realized gain (loss) on investments in equity securities held for operating purposes

     188        582        209.6   

Equity in earnings of affiliates

     13,831        1,058        (92.4

Corporate items

     (3,940     (4,306     —     

Other

     7,172        (3,541     —     
  

 

 

   

 

 

   

 

 

 

Total

       14,698        5,767        (60.8
  

 

 

   

 

 

   

 

 

 

 

10


Table of Contents
(6) Significant Changes in Equity (UNAUDITED)

Not applicable. For further details of the changes, please refer below.

 

     Millions of yen  
     For the three months ended  
     June 30, 2016  

Common stock

  

Balance at beginning of year

     594,493   
  

 

 

 

Balance at end of period

     594,493   
  

 

 

 

Additional paid-in capital

  

Balance at beginning of year

     692,706   

Issuance and exercise of common stock options

     (2,847
  

 

 

 

Balance at end of period

     689,859   
  

 

 

 

Retained earnings

  

Balance at beginning of year

     1,516,577   

Cumulative effect of change in accounting principle (1)

     (19,294

Net income attributable to NHI shareholders

     46,825   

Gain (loss) on sales of treasury stock

     (1,909
  

 

 

 

Balance at end of period

     1,542,199   
  

 

 

 

Accumulated other comprehensive income

  

Cumulative translation adjustments

  

Balance at beginning of year

     53,418   

Net change during the period

     (76,374
  

 

 

 

Balance at end of period

     (22,956
  

 

 

 

Defined benefit pension plans

  

Balance at beginning of year

     (33,325

Pension liability adjustment

     (276
  

 

 

 

Balance at end of period

     (33,601
  

 

 

 

Non-trading securities

  

Balance at beginning of year

     24,887   

Net unrealized gain on non-trading securities

     (1,908
  

 

 

 

Balance at end of period

     22,979   
  

 

 

 

Own credit adjustments

  

Balance at beginning of year

       

Cumulative effect of change in accounting principle (1)

     19,294   

Own credit adjustments

     (14,331
  

 

 

 

Balance at end of period

     4,963   
  

 

 

 

Balance at end of period

     (28,615
  

 

 

 

Common stock held in treasury

  

Balance at beginning of year

     (148,517

Repurchases of common stock

     (16,326

Sale of common stock

     0   

Common stock issued to employees

     9,184   
  

 

 

 

Balance at end of period

     (155,659
  

 

 

 

Total NHI shareholders’ equity

  

Balance at end of period

     2,642,277   
  

 

 

 

Noncontrolling interests

  

Balance at beginning of year

     42,776   

Cumulative effect of change in accounting principle (1)

     11,330   

Net change during the period

     2,897   
  

 

 

 

Balance at end of period

     57,003   
  

 

 

 

Total equity

  

Balance at end of period

     2,699,280   
  

 

 

 

 

(1) In relation to Cumulative effect of change in accounting principle, please refer to section “2. Notes to the Summary Information (1) Changes in Accounting Policies.”

 

11


Table of Contents
4. Supplementary Information

 

(1) Consolidated Statements of Income – Quarterly Comparatives (UNAUDITED)

 

    Millions of yen     % Change     Millions of yen  
    For the three months ended     (B-A)/(A)     For the year  ended
March 31,
2016
 
    June 30,
2015
    September 30,
2015
    December 31,
2015
    March 31,
2016  (A)
    June 30,
2016 (B)
     

Revenue:

             

Commissions

    130,343        111,501        102,323        87,792        76,255        (13.1     431,959   

Fees from investment banking

    24,497        44,867        20,016        28,953        17,313        (40.2     118,333   

Asset management and portfolio service fees

    59,940        58,177        57,808        53,081        52,612        (0.9     229,006   

Net gain on trading

    124,748        62,551        105,191        61,541        140,143        127.7        354,031   

Gain (loss) on private equity investments

    1,154        602        8,691        3,314        (13     —          13,761   

Interest and dividends

    113,649        111,540        107,932        106,929        106,551        (0.4     440,050   

Gain (loss) on investments in equity securities

    9,186        (10,882     4,690        (23,498     (9,966     —          (20,504

Other

    44,931        39,551        27,875        44,103        35,517        (19.5     156,460   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

    508,448        417,907        434,526        362,215        418,412        15.5        1,723,096   

Interest expense

    84,416        81,303        79,627        82,069        79,932        (2.6     327,415   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

    424,032        336,604        354,899        280,146        338,480        20.8        1,395,681   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses:

             

Compensation and benefits

    155,896        149,723        141,807        126,765        125,949        (0.6     574,191   

Commissions and floor brokerage

    34,243        32,621        31,126        25,891        24,172        (6.6     123,881   

Information processing and communications

    47,934        48,219        46,831        46,926        44,249        (5.7     189,910   

Occupancy and related depreciation

    18,729        19,173        19,596        20,913        18,228        (12.8     78,411   

Business development expenses

    8,330        8,454        9,330        9,778        8,296        (15.2     35,892   

Other

    52,888        58,537        54,602        62,211        54,821        (11.9     228,238   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-interest expenses

    318,020        316,727        303,292        292,484        275,715        (5.7     1,230,523   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

    106,012        19,877        51,607        (12,338     62,765        —          165,158   

Income tax expense

    36,368        (28,377     16,048        (1,443     15,791        —          22,596   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

    69,644        48,254        35,559        (10,895     46,974        —          142,562   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: Net income attributable to noncontrolling interests

    902        1,695        157        8,258        149        (98.2     11,012   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to NHI shareholders

    68,742        46,559        35,402        (19,153     46,825        —          131,550   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    Yen     % Change     Yen  

Per share of common stock:

 

Basic-

             

Net income (loss) attributable to NHI shareholders per share

    19.11        12.95        9.83        (5.31     13.00        —          36.53   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted-

             

Net income (loss) attributable to NHI shareholders per share

    18.65        12.63        9.61        (5.33     12.71        —          35.52   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

12


Table of Contents
(2) Business Segment Information – Quarterly Comparatives (UNAUDITED)

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.

 

    Millions of yen     % Change     Millions of yen  
    For the three months ended     (B-A)/(A)     For the year  ended
March 31,
2016
 
    June 30,
2015
    September  30,
2015
    December  31,
2015
    March 31,
2016 (A)
    June 30,
2016 (B)
     

Net revenue

             

Business segment information:

             

Retail

    130,689        115,658        104,280        85,007        83,751        (1.5     435,634   

Asset Management

    26,917        22,854        25,327        20,311        25,934        27.7        95,409   

Wholesale

    205,184        192,911        185,977        136,205        190,932        40.2        720,277   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    362,790        331,423        315,584        241,523        300,617        24.5        1,251,320   

Other

    52,244        16,080        34,589        62,139        48,411        (22.1     165,052   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

    415,034        347,503        350,173        303,662        349,028        14.9        1,416,372   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation items:

             

Unrealized gain (loss) on investments in equity securities held for operating purposes

    8,998        (10,899     4,726        (23,516     (10,548     —          (20,691
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net revenue

    424,032        336,604        354,899        280,146        338,480        20.8        1,395,681   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses

             

Business segment information:

             

Retail

    79,790        78,913        76,450        72,850        75,086        3.1        308,003   

Asset Management

    15,171        14,442        14,597        14,533        13,695        (5.8     58,743   

Wholesale

    185,513        184,282        176,038        159,039        144,290        (9.3     704,872   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    280,474        277,637        267,085        246,422        233,071        (5.4     1,071,618   

Other

    37,546        39,090        36,207        46,062        42,644        (7.4     158,905   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses

    318,020        316,727        303,292        292,484        275,715        (5.7     1,230,523   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation items:

             

Unrealized gain (loss) on investments in equity securities held for operating purposes

    —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-interest expenses

    318,020        316,727        303,292        292,484        275,715        (5.7     1,230,523   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

             

Business segment information:

             

Retail

    50,899        36,745        27,830        12,157        8,665        (28.7     127,631   

Asset Management

    11,746        8,412        10,730        5,778        12,239        111.8        36,666   

Wholesale

    19,671        8,629        9,939        (22,834     46,642        —          15,405   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

    82,316        53,786        48,499        (4,899     67,546        —          179,702   

Other*

    14,698        (23,010     (1,618     16,077        5,767        (64.1     6,147   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

    97,014        30,776        46,881        11,178        73,313        555.9        185,849   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation items:

             

Unrealized gain (loss) on investments in equity securities held for operating purposes

    8,998        (10,899     4,726        (23,516     (10,548     —          (20,691
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

    106,012        19,877        51,607        (12,338     62,765        —          165,158   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”

 

    Millions of yen     % Change     Millions of yen  
    For the three months ended     (B-A)/(A)     For the year  ended
March 31,
2016
 
    June 30,
2015
    September 30,
2015
    December 31,
2015
    March 31,
2016  (A)
    June 30,
2016  (B)
     

Net gain (loss) related to economic hedging transactions

    (2,553     1,052        (627     8,498        11,974        40.9        6,370   

Realized gain (loss) on investments in equity securities held for operating purposes

    188        17        (36     18        582        —          187   

Equity in earnings of affiliates

    13,831        9,054            4,784        5,058        1,058        (79.1     32,727   

Corporate items

    (3,940     (39,985     (3,171     (5,218     (4,306     —          (52,314

Other

    7,172        6,852        (2,568     7,721        (3,541     —          19,177   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

      14,698        (23,010     (1,618       16,077            5,767        (64.1     6,147   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents
(3) Unconsolidated Quarterly Financial Statements [Japanese GAAP]

Unconsolidated quarterly financial statements have been voluntarily disclosed and prepared based on regulatory rules.

Nomura Holdings, Inc. Unconsolidated Balance Sheets

(UNAUDITED)

 

                                         
     Millions of yen  
     March 31, 2016     June 30, 2016  

Assets

    

Current Assets

     4,058,321        4,098,582   

Fixed Assets

     3,320,801        3,298,347   
  

 

 

   

 

 

 

Total Assets

     7,379,122        7,396,930   
  

 

 

   

 

 

 

Liabilities

    

Current Liabilities

     1,599,923        1,618,244   

Long-term Liabilities

     3,358,039        3,195,070   
  

 

 

   

 

 

 

Total Liabilities

     4,957,962        4,813,314   
  

 

 

   

 

 

 

Net Assets

    

Shareholders’ equity

     2,305,324        2,477,749   

Valuation and translation adjustments

     67,933        61,102   

Stock acquisition rights

     47,904        44,764   
  

 

 

   

 

 

 

Total Net Assets

     2,421,160        2,583,615   
  

 

 

   

 

 

 

Total Liabilities and Net Assets

     7,379,122        7,396,930   
  

 

 

   

 

 

 

Nomura Holdings, Inc. Unconsolidated Statements of Income

(UNAUDITED)

 

                                         
     Millions of yen  
   For the three months ended  
   June 30, 2015      June 30, 2016  

Operating revenue

     394,650         249,139   

Operating expenses

     55,177         55,387   
  

 

 

    

 

 

 

Operating income

     339,472         193,752   
  

 

 

    

 

 

 

Non-operating income

     2,753         1,852   

Non-operating expenses

     1,235         2,779   
  

 

 

    

 

 

 

Ordinary income

     340,989         192,826   
  

 

 

    

 

 

 

Special profits

     482         874   

Special losses

     28         77   
  

 

 

    

 

 

 

Income before income taxes

     341,443         193,623   
  

 

 

    

 

 

 

Income taxes - current

     2,941         1,220   

Income taxes - deferred

     521         98   
  

 

 

    

 

 

 

Net income

        337,982            192,305   
  

 

 

    

 

 

 

 

(4) Other

Quarterly financial information for Nomura Securities Co., Ltd. can be found at the following URL.

http://www.nomuraholdings.com/company/group/nsc/pdf/2017_1q.pdf

 

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