Nomura
Annual Report 2002

Plain-text annual report

Annual Report 2002 Nomura Holdings, Inc. C o n t e n t s (cid:1) Consolidated Financial Highlights (U.S. GAAP) . . . . 1 (cid:1) To Our Shareholders and Customers . . . . . . . . . . 2 Profile Nomura Group, with its core businesses of the securities and related businesses, is dedicated to providing a broad range of financial services for indi- vidual, institutional, corporate and government cus- tomers. (cid:1) Nomura Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 We offer a diverse line of competitive products and Vision and Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 value-added financial and advisory services through Corporate Governance and Management Structure . . . . . . . 8 the 126 domestic branch offices of Nomura Securities Co., Ltd. and an overseas network that comprises offices in 28 countries. Our business activities include investment consultation services for domestic retail investors, securities brokerage serv- ices, securities underwriting for domestic and foreign governments and corporations, merger and acquisi- tion and financial advisory services, merchant bank- ing, and asset management for investment trusts and pension funds. (cid:1) Our Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Securities Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Asset Management Businesses . . . . . . . . . . . . . . . . . . . . 22 (cid:1) Contributions to Society . . . . . . . . . . . . . . . . . . . . . 26 Nomura Holdings, Inc. Corporate Data/Board of Directors and Statutory Auditors . . . . . . . . . . . . . . . . . . . . . . . . 28 Consolidated Income Statement (U.S. GAAP) . . . . 29 Subsidiaries and Affiliates . . . . . . . . . . . . . . . . . . . 30 Nomura Securities Co., Ltd. Domestic Network . . . . . . . . . . . . . . . . . . . . . . . . . 33 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 solic- itation 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 pur- suant to appropriate offering materials or a prospectus prepared and distributed according to the laws, regulations, rules and market prac- tices 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 accu- rate 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” with- in 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 valua- tions, competitive conditions and size, and the number and timing of transactions. Business Portfolio Our business portfolio consists of Securities Businesses (Domestic Retail and Global Wholesale) and Asset Management Businesses. •Securities Businesses Securities Businesses consist of Domestic Retail and Global Wholesale (Fixed Income, Equity, Investment Banking and Merchant Banking). Domestic Retail Domestic Retail provides investment consultation services to customers on how to grow their assets over the long term, proposing financial products and investment portfolios that are tailored to their asset- building needs. Global Wholesale Global Wholesale offers borderless solution-based financial services through the capital markets to insti- tutional and corporate customers, and customers in public sectors. •Asset Management Businesses Asset Management offers a range of comprehensive services. These include the management of invest- ment trusts and investment advisory services. In the defined contribution pension plan market, they vary from plan implementation to product supply. Breakdown of Income before Income Taxes by Segment Year ended March 31, 2002 Year ended March 31, 2001 Domestic Retail 9% Global Wholesale 86% Asset Management 5% Domestic Retail 17% Global Wholesale 77% Asset Management 6% Consolidated Financial Highlights (U.S. GAAP) Nomura Holdings, Inc. Income statement data: Revenue Interest expense Net revenue Non-interest expenses Income before income taxes Income tax expense Net income Millions of yen (Except per share data) 2001 ( ) April 1, 2000~ March 31, 2001 Thousands of U.S. dollars (Except per share data) 2002 (5) 2002 ( April 1, 2001~ March 31, 2002 ) ( April 1, 2001~ March 31, 2002 ) 2000 ( ) April 1, 1999~ March 31, 2000 ¥ 1,499,781 ¥ 1,469,298 ¥ 1,825,399 $ 13,755,833 437,131 1,062,650 690,430 372,220 168,671 553,643 915,655 759,483 156,172 98,762 504,048 1,321,351 1,148,379 172,972 4,926 3,798,402 9,957,431 8,653,949 1,303,482 37,122 ¥ 203,549 ¥ 57,410 ¥ 168,046 $ 1,266,360 Balance sheet data (period end): Total assets Shareholders’ equity Common stock ¥ 14,610,868 ¥ 17,146,024 ¥ 17,758,273 $ 133,822,705 1,410,976 1,436,428 1,604,929 12,094,416 182,796 182,797 182,800 1,377,543 Number of shares issued 1,962,977,247 1,962,977,841 1,965,919,860 Return on equity (ROE) (1) 15.3% 4.0% 11.1% Per share data: Net income per share—basic (2) ¥ 103.71 Net income per share—diluted (2) Shareholders’ equity per share (3) Cash dividends per share (3) 103.17 719.93 15.00 Yen U.S. dollars ¥ 85.57 85.32 816.48 15.00 $ 0.64 0.64 6.15 ¥ 29.25 29.25 731.77 17.50 U.S. dollars Cash dividends per share (3) (4) 0.14 0.14 0.12 Notes: (1) Calculation method: Annualized net income divided by average shareholders’ equity. (2) Calculated using the weighted average number of shares outstanding for the year (excluding treasury shares held by Nomura or its subsidiaries). (3) Calculated using the number of shares outstanding (excluding treasury shares held by Nomura or its subsidiaries) at year end. (4) Calculated using the yen-dollar exchange rate at the date of our shareholders’ meeting, at which the relevant dividend payment was approved. (5) Calculated using the yen-dollar exchange rate of $1.00=¥132.70, the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York on March 29, 2002. 1 To Our Shareholders and Customers It gives me great pleasure to present the annual report of Nomura Group for the fiscal year ended March 31, 2002 (“fiscal 2002”). Business Environment and Results During fiscal 2002, we faced a particularly harsh business environment. This was brought about by a protracted slump in the Japanese economy and stock market as well as a heightened sense of uncertainty regarding the world economic outlook stemming from the September 11 terrorist attacks in the United States. At the same time, however, we recognize that important changes are afoot in the surrounding business environment set against the backdrop of deregulation. First among these is the strengthening of a trend toward a shift of financial assets out of bank deposits into securities products. In April 2002, special measures ensuring full guarantees on term deposits were abolished. Special measures for demand deposits are due to be abolished in April 2003. This type of planned deregulation is expected to give rise to a further strength- ening of interest in securities products across the household and corporate sectors alike. The second change relates to the acceleration of corporate restructuring aimed at enhancing corporate value through the efficient use of assets. This trend is apparent from the rising number of M&A deals among Japanese companies, increased share buybacks and the accelerated unwinding of cross-shareholdings. Nomura Group regards these changes as a business opportunity and has developed its business aggressively. As a result, for fiscal 2002, based on U.S. GAAP, NHI posted income before income taxes of ¥173 billion and net income of ¥168 billion on net revenue of ¥1,321 billion. Return on equity (ROE) was 11.1%, a year-on-year rise of 7.1 points. Average ROE since the fiscal year ended March 2000 has been 10.1%. Junichi Ujiie President and Chief Executive Officer Nomura Holdings, Inc. 2 To Our Shareholders and Customers Group Vision Strategies by Division Nomura Group aims to become a globally competitive Now I would like to elaborate on our strategy for each Japanese financial services group. To this end, we prioritize division. First, Domestic Retail. three areas: broadening business in our mother market, Our goal in Domestic Retail is to establish a strong sales promotion of Japan-focused globalization, and enhance- base and create a profit structure less susceptible to the ment of our asset management businesses. As a financial fluctuations of any single market, such as stock market target, we seek to ensure an average ROE of 10-15% over or bond market. As such, we are pushing ahead with the medium to long term. broadening our customer base and diversifying our product lineup. Business Execution Structure With respect to broadening our customer base, we Nomura Group has established a streamlined business have combined face-to-face consulting services with an IT- execution structure designed to facilitate the achievement driven approach toward administrative services like order of management objectives. The Strategic Management execution and account maintenance. This has enabled our Committee of NHI is responsible for formulating group sales force to dedicate more time to meeting customers management strategy and the efficient and flexible alloca- face-to-face to deepen relationships, thereby strengthening tion of management resources based on close examination our consulting capacity. of the business plans of each division. In addition, we have We are also aiming to enlarge our customer base established an advisory board as a consultative body to the among asset-builders and corporate employees through Strategic Management Committee. Made up of top man- corporate channels, including employee stock ownership agers of prestigious Japanese corporations, this board plans (ESOPs). To diversify our product mix, in December offers management advice and recommendations that 2001 we set up Nomura Fund Universe to offer investors bring an important element of versatility to our manage- the optimum tools for selecting high-quality investment ment approach. When executing our business strategy, we trusts. Additionally, we continue to provide lectures at focus on globally integrated businesses rather than universities and run seminars on investment as a means individual legal entities. of broadening participation in the securities markets. Our business portfolio consists of Securities Businesses In Global Wholesale, our aim is to establish a strong (Domestic Retail and Global Wholesale) and Asset global presence with an emphasis on Japan. For this Management Businesses. Division heads execute business purpose, we are setting up a global product supply system within the management resources allocated. The Strategic and strengthening solution-based financial services. Management Committee monitors performance using By integrating our global customer order flow, we measurements that include Nomura Value Added (NVA), are able to provide investors inside and outside of Japan calculated by subtracting the cost of capital from income with high liquidity and a stable product supply. For corpo- after tax. rations that urgently need restructuring, we are promoting solution-based financial services through the capital mar- kets by focusing on M&A advisory services and merchant banking business. This involves reviewing companies’ To Our Shareholders and Customers 3 To Our Shareholders and Customers business portfolios, rebuilding balance sheets, reorganizing Operating under this strengthened system of corporate companies so as to expand their cross-border capabilities, governance, Nomura Group is totally committed to or boosting corporate revival business activities. increasing shareholder value over the medium to long term, In Asset Management, the recent introduction of and I believe we have the right strategies to meet the defined contribution pension plans and the abolition of expectations of shareholders and investors alike. As special measures ensuring full guarantees on bank always, we look forward to your continued support. Junichi Ujiie President and Chief Executive Officer Nomura Holdings, Inc. July 2002 deposits have dramatically transformed the asset manage- ment business landscape. We seek to enhance our asset management capabilities by utilizing the collective strength of the Nomura Group. To this end, we will bolster our product lineup and reinforce our commitment to the defined contribution pension plan business. As an initial step toward capturing individual financial assets, we have reshaped our savings-type product lineup, including money management funds (MMFs). In seeking to realize this goal, we have also developed such certain products as the Nomura Short Term Prime Fund, which was established as an income fund to meet customers’ needs for higher returns. We are committed to strengthening our approach to the defined contribution pension plan business by build- ing on our strong position in the ESOP market and capital- izing on our asset management business know-how. Enhancing Corporate Governance Finally, I would like to briefly describe what we have done to enhance our system of corporate governance. First, of NHI’s 11 directors two are outside directors. Second, we established the Audit Committee, which also includes an outside director, to promote increased corpo- rate propriety across the entire Nomura Group and enhance internal audit system. Third, we set up the Executive Compensation Committee to discuss modalities for Nomura Group compensation. Outside directors form the majority of this committee. 4 To Our Shareholders and Customers Nomura Group Contents Vision and Philosophy . . . . . . . . . . . . . . . . . 6 Vision Business Portfolio Social Role Corporate Governance and Management Structure . . . . . . . . . . 8 Strengthening Corporate Governance Management Structure Business Execution Structure 5 Vision and Philosophy Nomura Group is a financial services group comprising NHI and its domestic and overseas subsidiaries. We provide customers with high value-added financial services under a unified group strategy, seeking to consistently grow shareholder value by generating sustained revenues from these services. Vision shareholder value, we aspire to be a globally competitive Japanese financial institution by focusing on Japanese cus- We identify our core businesses as the securities and other tomers and products as a first step toward global expan- closely related businesses. We concentrate management sion. We seek to establish a dominant position in our home resources on these areas in order to provide solutions market, which has high growth potential, and develop an through the capital markets to match customer needs such organization capable of delivering services worldwide. as asset management and financing. To consistently grow Vision A globally competitive Japanese financial institution Philosophy 1. Focuses on core businesses 2. Provides solutions through capital markets 3. Contributes toward development of the capital market 4. Promotes management with an emphasis on shareholder value Financial Target An average return on equity (ROE) of 10-15% over the medium to long term 6 Nomura Group Business Portfolio Social Role Nomura Holdings, Inc. and its domestic and overseas con- A key factor in developing a market economy is increasing solidated subsidiaries including Nomura Securities Co., Ltd. the number of people that are willing to accept the risks conduct comprehensive business management as Nomura involved in participation in the financial markets. Capital Group under a unified strategy. In formulating our business flows are the lifeblood of the economy, and we believe that strategy, we focus on global coordination of divisions they best result from decisions based on the collective rather than individual legal entities. wisdom and experience of as large a number of people as Our business portfolio is composed of Securities possible rather than on the judgment of a few experts. Businesses, i.e., Domestic Retail and Global Wholesale, We strive to broaden the scope of the securities market and Asset Management Businesses. Global Wholesale is and promote long-term policies for its invigoration. Specific composed of four business lines: Fixed Income, Equity, efforts include the Nomura Asset Management Fair, intend- Investment Banking, and, as of October 2001, Merchant ed to disseminate knowledge of investment trust products Banking. and appreciation of the importance of investment diversifi- We allocate capital, human and other management cation, university lectures on securities markets both in resources to these businesses in a flexible and effective Japan and abroad, seminars at branch offices nationwide, manner, striving to respond promptly and precisely to and investment education programs on cable television. the diverse needs of our customers within a fast-moving We hope to contribute to Japan’s economic recovery environment. Business Portfolio Nomura Group by offering solutions through the capital markets to meet the diverse needs of customers, by encouraging an ade- quate supply and circulation of risk capital, and by helping to develop a healthy securities market in Japan. Domestic Retail Global Wholesale Asset Management Fixed Income Equity Investment Banking Merchant Banking Nomura Group 7 Corporate Governance and Management Structure Strengthening Corporate Governance We promote management with an emphasis on sharehold- er value, and since October 2001 we have been strength- ening our corporate governance as follows. Outside Directors We have appointed two of 11 directors from outside the Company. Additionally, we help raise management transparency by soliciting outside perspectives. Audit Committee We have the Audit Committee, which includes an outside director, to check the appropriateness of each subsidiary’s activities and further develop Nomura Group’s internal audit system. Executive Compensation Committee The Executive Compensation Committee was set up to discuss modalities for Nomura Group compensation. A majority of the members on this committee are outside members of the Board of Directors. 8 Nomura Group Management Structure In addition, an advisory board made up of top man- agers of prestigious Japanese global corporations was The outline of Nomura Group’s business management is established in January 2001 for the purpose of advising decided by NHI’s Strategic Management Committee. It and making recommendations to the Strategic comprises the President and certain directors of NHI, Management Committee. including each division head, and is mainly responsible for We solicit outside perspectives to help raise manage- the following: ment transparency and promote efficient management from a multi-faceted approach unimpeded by existing • Establishment of Nomura Group’s unified manage- internal models. ment strategy • Efficient and flexible allocation of management resources, based on close examination of the busi- ness plans of Domestic Retail, Global Wholesale and Asset Management • Monitoring performance of each division Management Structure of Nomura Holdings, Inc. (NHI) (As of end June 2002) General Meeting of Shareholders Board of Directors Statutory Auditors Board of Statutory Auditors Audit Committee Executive Compensation Committee Strategic Management Committee President and CEO Advisory Board Nomura Group 9 Corporate Governance and Management Structure Business Execution Structure Management resources for business execution are allo- cated efficiently and flexibly, based on close examination of the business plans of our three divisions by the Strategic Management Committee. Each division head has responsi- bility to conduct business within allocated management resources. The Strategic Management Committee moni- tors performance closely, using Nomura Value Added (NVA), calculated by subtracting the cost of capital from income after tax, and other measurements suited to each business. Business Execution Structure and Performance Monitoring Nomura Holdings Strategic Management Committee Examination of Divisional Business Plans Capital Allocation Monitoring NVA, Other Measurements Domestic Retail Global Wholesale Business Line Heads Business Execution Asset Management 10 Nomura Group Our Businesses Contents Securities Businesses . . . . . . . . . . . . . . . . . 12 • Domestic Retail Goals and Strategy Business Model Expand Customer Base Broaden Customer Base Diversification of Product Mix • Global Wholesale . . . . . . . . . . . . . . . . . . . . 16 Goals and Strategy Business Model Fixed Income Equity Investment Banking Merchant Banking Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Development of a Global Research Framework Nomura Securities Financial Research Center Asset Management Businesses . . . . . . . . . 22 Goals and Strategy Enhancement of Investment Trust Products Strengthening Defined Contribution Pension Plan Business 11 Securities Businesses Our Securities Businesses consist of Domestic Retail and Global Wholesale. Domestic Retail Domestic Retail provides investment consultation services to customers on how to grow their assets over the long term, proposing financial products and investment portfolios that are tailored to their needs with respect to lifestyle, risk tolerance and asset character, as well as market and economic conditions. Goals and Strategy changes and other administrative procedures can be han- dled through the Call Center, orders for stocks and other Our goal in Domestic Retail is to establish a strong sales financial products can be made through Home Trade, and base in the domestic retail market and create a profit struc- customers can consult about investments with representa- ture less susceptible to the fluctuations of a single market. tives at branch offices. Thanks to the integration of face-to- To this end, we will push forward with broadening our face consulting services and IT-related services, customers customer base and product diversification. can enjoy the merits of both interfaces. In turn, we expect Business Model — Combination of Face-to- Face and IT Services As a business model to achieve our goals and strategy, we to expand our customer base and increase earnings without increasing the number of personnel. Expand Customer Base have combined face-to-face consulting services with IT- In providing investment consultation services, we consider related services. We provide customers with three ways to the diverse needs of our customers while analyzing market access services. They can visit any of our 126 branch and economic conditions. Rather than a single financial offices nationwide (as of end June 2002) for face-to-face product such as stocks, we offer customers a wide range consultation with a representative, they can go online to of investment options, from low-risk/low-return investments access IT services such as Home Trade, or they can ring to high-risk/high-return investments. Despite the down- the Call Center for information on a variety of administrative ward trend in stock prices from April 2000, we continued procedures. to make efforts to gather personal financial assets by Drawing on the unique features of each interface, we focusing on savings-type products such as bond invest- seek to increase convenience for both high-net-worth cus- ment trusts. As the graph below shows, customer assets tomers and those at the asset-building stage. For example, in our custody have grown steadily for some time irrespec- questions about IT services like Home Trade, and address tive of stock price fluctuations. Business Model Retail Customer Assets and Nikkei Stock Average Retail Customer Assets (Trillions of yen) Nikkei Stock Average (Yen) Nomura Customers Consulting Face-to-Face Administrative Services Execution, Settlement, Administration of Accounts, Market Information, etc. Call Center IT Services High-Net-Worth Customers Asset Builders 30 25 20 15 10 5 0 12 Our Businesses 42,000 35,000 28,000 21,000 14,000 7,000 0 85.3 90.3 95.3 00.3 02.3 Note: Nikkei Stock Average closing price at year ended March 31. financial goals. To expand our customer base, we will develop a branch strategy based on detailed investigations and analyses of the distribution of customers and their financial assets by region. The opening of the Nerima branch office in July 2001 and the Kokubunji branch office in October of the same year brought the total number of domestic branch offices to 126 as of the end of June 2002. Nakano and Chofu branch offices are expected to open in October and November 2002, respectively. Nomura iT Support 21 Recent developments in IT have allowed us to swiftly exchange large amounts of information with customers. In an effort to enhance customer convenience, we inte- grated Nomura Home Trade, Nomura Telephone Answer, Nomura Stock Price Dial, and other services that use IT into Nomura iT Support 21. We are also expanding ATM partnerships with a variety of financial institutions. Nomura Home Trade Nomura Home Trade is an online service that plays a key The Nomura Cash Management Service (NCMS), which increases convenience for customers and improves business efficiency, had over 2.9 million accounts as of the end of March 2002. This service provides an automatic fund-sweeping function. When securities and investment trusts are purchased, the customer’s Nomura Money Reserve Fund Number of NCMS Accounts (Thousands of accounts) 3,000 2,500 2,000 1,500 1,000 500 0 99.9 00.3 00.9 01.3 01.9 02.3 is automatically debited for the amount of the purchase role in our IT services. Online accounts surpassed 930,000 price. When securities are sold, the proceeds are automati- as of the end of March 2002, representing a top 30% cally credited to the customer’s Nomura Money Reserve share of the market. We ensure the highest level of security Fund. This helps customers manage their assets without in the world, and provide customers with the ability to trade waste and allows us to improve the efficiency of our settle- online (e.g., place buy/sell orders for stocks and investment ment processes. trusts) whenever they please. Customers also have access Face-to-Face Services Simply offering a complete line of products or delivering Customers may try out Nomura Home Trade and other IT services at the Demonstration Corners in a number of to a variety of Nomura information. high-quality information is not enough to provide the serv- branch offices. ices that customers really need. In providing investment consultation services, the single most important factor is Major Services of Nomura Home Trade gaining an understanding of the customer’s unique circum- • Order placement of stocks, convertible bonds and stances through conversation, and only then providing investment trusts direction on how to use our products and information to • Provision of investment information, including our meet the customer’s individual needs. Our sales represen- research reports tatives across Japan consult with customers to gain a clear • Provision of current status reports on asset portfolios, understanding of their needs. They provide information and investments and transactions advice on investments to help customers meet their Our Businesses 13 Securities Businesses Nomura Telephone Answer/Nomura Stock Price Nomura Call Center Dial Nomura Call Center serves as a support system for our Nomura Telephone Answer provides a wide range of free face-to-face and online securities trading services. automated voice services. Customers can place orders for Customers can request the following: stocks and investment trusts such as Nomura Money • Technical support for using Nomura Home Trade Management Fund (MMF), and check account balances • Basic administrative services, including name and address and stock prices. This service can be accessed from public changes telephones and cellular phones. • Brochures for investment trusts and other information Nomura Stock Price Dial is an automated voice recogni- tion service that allows customers to check current stock prices over the phone by simply naming the stock. Broaden Customer Base—Approach via Corporate Channels Our Approach via Employee Stock Ownership Plan Automated Teller Machines (ATMs) (ESOP) Customers can use a Nomura ATM to withdraw or deposit We retain a share of approximately 50% of the ESOP funds free of charge, including Sundays and holidays. We market, which comprises 3,000 companies and an esti- are working to enhance customer convenience by expand- mated 3 million employees. Of these 3 million, 1.4 million ing our ATM network through partnerships. Customers can are stock ownership plan members. We promote a system now access their Nomura accounts from postal savings that supplies investment information directly through ATMs, bank ATMs, convenience store ATMs, and locations company computer networks (E-Plan). The information we with similar facilities. When there is no Nomura Securities provide acts as an investment portal site that will enable us branch office nearby, customers can use the ATMs of to absorb more accurately the various needs of employees our business partners to withdraw and, in most cases, when they consider securities investment in the future. deposit funds. Nomura Home Trade (Online Trading Accounts) (Thousands of accounts) 1,000 800 600 400 200 0 99.9 00.3 00.9 01.3 01.9 02.3 14 Our Businesses Also, our service makes it easy for plan members to open accounts with us when their holdings amount to a unit share (E-Support). When their assets reach a certain level, members can make use of the consulting services offered through our branch office network, and are even able to seek investment advice after retirement. Broaden Customer Base — Approach via Corporate Channels Our Approach via Employee Stock Ownership Plan (ESOP) Nomura IT Services Face-to- Face Services Corporations Number of Customers: 3,000 companies E-Plan Investment Information & Services Consultation Employees Number of Customers’ Employees: 3 million (estimate) Number of ESOP Members: 1.4 million Intra-corporate Information Systems Account Opening E-Support Asset Building ESOP Shares Retirement Benefit Emergence of New Business Opportunities Nomura Fund Universe through Corporate Restructuring Investment trusts are the most suitable product for cus- As a result of the restructuring of corporations and tomers wishing to diversify their assets, and also provide changes in the employment system, new business oppor- us with a means to advance product diversification. We tunities are opening up for us. Business reorganization and selected high-quality funds and established Nomura Fund changes to pension schemes are giving rise to a new type Universe in December last year based on analysis from of investor that has no prior experience of investing in Nomura Funds Research And Technologies and others. securities products. Such has been the case with invest- More precisely, Nomura Fund Universe is categorized by ment needs relating to lump-sum retirement benefits aris- cash reserve and money market funds, income funds and ing from the introduction of early retirement schemes as total return funds, which allow our customers to select a well as the demutualization of life insurance companies. To product that precisely meets their investment needs. best satisfy such diversified needs, Domestic Retail coop- erates closely with Global Wholesale. Through such means, Variable Annuity Insurance we can broaden our customer base in the asset-builder We began offering variable annuity insurance in October and corporate employee markets. 2001. With growing concern about life planning as a result Diversification of Product Mix of Japan’s declining birth rate and aging population, and the introduction of defined contribution pension plans, the In a long-term effort to introduce securities products as need to prepare for one’s own future is expected to personal financial assets, we offer products tailored to the increase in the future. We recommend variable annuity diverse needs of customers with respect to life plans, asset insurance as a product that can meet the long-term indi- character and other factors. Our Global Wholesale and vidual needs of our customers. With approximately 5,000 Asset Management operations offer an extensive product qualified sales representatives, we are looking to expand line on a stable basis. In this way, we can offer portfolios this service by actively consulting with customers about optimized to the investment needs of customers, creating these products. an appropriate combination of products from low risk/low return to high risk/high return. As can be seen in the chart on the right, a com- parison with the fiscal year ended March 2000 shows that while our reliance on equity-related products for revenue has decreased, revenue derived from bonds has increased. Revenue sources have been gradually further diversified, and the effect of market fluctuations duly mitigated. Revenue Breakdown by Product 14% 24% 10% 30% 16% 15% 24% 13% 28% 52% 40% 35% 00.3 01.3 02.3 Equity Bonds Investment Trusts (Distribution Fees) Investment Trusts (Administration Fees) Nomura Fund Universe Cash Reserve Income Funds Total Return Funds •MMF •Free Financial Fund •Long-term Bond Investment Trust ••Nomura Bond Open •Nomura Short Term Prime Fund •Global Equity •Global Bond •Domestic Equity Our Businesses 15 Securities Businesses Global Wholesale The integrated business approach of Global Wholesale allows us to provide more solution-finding services to institutional, corporate and government customers in and outside of Japan that transcend product and business lines. The competitive edge provided by such integration should bring excellent returns when the Japanese economy recovers. Goals and Strategy In Global Wholesale, we are establishing a global product Business Model—Promotion of Solution- Finding Financial Services supply system and strengthening solution-finding financial We promote solution-finding financial services as a busi- services to establish a dominant global presence with a ness model in order to achieve our goal. Banks have tradi- tionally supported corporate business expansion through credit creation such as bank loans and cross-sharehold- ings. However, the bursting of the economic bubble has left banks with severe balance sheet problems and provid- ed a disincentive to corporate activities as a result of a deterioration in their capacity to supply adequate funds. We aim to provide comprehensive solutions through capital markets. By doing so we seek to bolster earnings by supplying Japanese companies with risk capital from investors in and outside of Japan. We also aim to con- tribute to corporate revival as well as the revival of the Japanese economy. Global Wholesale Business Model Corporate Revival Securitization Debt Finance Domestic Investors Risk Capital Japanese Corporations Risk Capital Overseas Investors Unwinding of Cross- shareholdings Equity Finance Corporate Restructuring Consultation M&A Advisory focus on Japan. 16 Our Businesses Fixed Income Sales and Trading Securitization We strive to present our customers with the broadest pos- Financial strategy is instrumental in supporting the expan- sible range of products to meet their mixed investment sion of a company’s core business. Demand for finance needs. Government bonds are issued in larger volumes through securitization is increasing. This allows corpora- than other debt instruments and are highly liquid. We have tions and governments to reduce interest-bearing liabilities, a global trading system enabling customers to trade and property and equipment ownership costs through the Japanese, U.S., European, Canadian and Australian gov- liquidation of assets. At the same time, institutional ernment bonds round the clock, and a trading system for investors, unable to generate high returns from convention- credit products to meet our customers’ various credit al low-risk products due to low interest rates, are attracted needs through careful management of positions based on to such structured products. our sophisticated risk management capabilities. In light of these circumstances, we are looking to We also offer derivative products tailored to meet strengthen our organization by positioning securitized customer’s individual needs through our risk tolerance products as a core product alongside conventional bonds. capacity underpinned by appropriate risk management Our entire global network is working together to develop capabilities and strong capital base. and market these products. Our efforts have resulted in the Furthermore we provide quick and appropriate solutions securitization of GNMA project loans and re-performing to problems related to asset management thanks to syn- mortgage loans in the U.S. ergy effect with ample product lineup and capable sales personnel who can understand customer needs correctly by utilizing our worldwide sales trading network. Nomura’s Share of JGB Auctions Nomura’s Share of Secondary Trading Nomura 15% Nomura 15% Year ended March 31, 2002 Source: Nomura Securities Year ended March 31, 2002 Source: Nomura Securities Our Businesses 17 Securities Businesses Equity ening our domestic retail customer base and our global institutional customer base, and to improve our ability to Our global equity sales and trading activities benefit from structure offerings in a timely manner to match issuers’ our dual franchise, consisting of a large retail customer particular needs and investors’ demand. base in Japan and a global institutional customer base. We We have sponsoring relationships with about 60% of focus on transactions driven by customer order flows, and Japan’s listed and registered companies. Thirty-nine of our integrating those order flows globally enables us to execute domestic branch offices have corporate finance teams that large-size orders smoothly and efficiently. maintain close contacts with local corporations on invest- Nomura’s Share of Off-Floor/ Off-Exchange Stock Trading in Japan Nomura 19% Year ended March 31, 2002 Source: Nomura Securities ment banking matters. As a result, in the fiscal year ended March 2001, we lead-managed 51 out of the 198 Initial Public Offerings (IPOs) and, in the fiscal year ended March 2002, 44 out of the 174 IPOs. In addition, we acted as joint lead manager for the global dollar issues of the European Investment Bank (EIB), the Asian Development Bank (ADB) and Oesterreichische Kontrollbank Aktiengesellschaft (OKB), which we distrib- uted globally. We are the leading underwriter in Japan of fixed income securities issued by public corporations, Global Integration of Order Flows municipalities and corporate issuers, as well as foreign Using these globally integrated customer order flows, we public and private issuers and supranationals. can both reduce risk and increase profit. In recent years, many Japanese corporations have accelerated their liqui- dation of cross-shareholdings of other Japanese corpora- tions. Responding to these circumstances, we developed a system capable of smoothly executing even a large volume of trading orders without seriously affecting the market by drawing on a broad base of individual and corporate cus- tomers both in Japan and abroad, and by applying our risk management and trading capabilities. We continue to secure a high share of off-floor and off-exchange transac- tions, which are frequently used to execute large volume trades of institutional investors. Nomura’s Market Shares Japanese IPOs Japanese Public Offerings Nomura 36% Nomura 34% Year ended March 31, 2002 Source: Nomura Securities Year ended March 31, 2002 Source: Nomura Securities Investment Banking Japanese Straight Bonds Samurai Bonds We provide a broad range of investment banking services, including underwriting, M&A and financial advisory serv- ices, real estate-related investment banking services and Nomura 21% Nomura 38% securitization. Underwriting We continue to strengthen our placement power by broad- Year ended March 31, 2002 Source: Thomson DealWatch Full-credit Base Year ended March 31, 2002 Source: Thomson Financial Bookrunner Base 18 Our Businesses M&A and Financial Advisory Services We provide M&A and financial advisory to facilitate busi- ness reorganization and corporate restructuring, for which ongoing deregulation and increased urgency among corporations have produced a growing demand. We acted as financial advisor to Vodafone Group in its successful tender offer for East Japan Railway’s equity stake in Japan Telecom and the cross-border acquisition of Seiyu by Wal-Mart. Regarding corporate revival business, we acted as a financial advisor to Niigata Engineering, and have contributed to the revival of other domestic corpora- tions. As a result, in Thomson Financial’s 2001 ranking of advisors for completed M&A deals involving Japanese companies, Nomura placed second in terms of total value. The focus of this business is to acquire under-perform- For January to June 2002, Nomura placed first in terms of ing, misunderstood or challenging businesses where we total value in Thomson Financial’s ranking of advisors for aim to generate corporate value by using our investment announced M&A deals involving Japanese companies. experience and know-how. Investments range from man- agement buyouts (MBOs) to corporate reorganizations M&A Ranking (Jan.-Dec. 2001)* based on the strategic needs of our customers. We invest Rank Advisor 1 2 3 4 5 Goldman Sachs & Co Nomura Group JP Morgan Daiwa Securities SMBC Merrill Lynch & Co Inc Amount (US$ Billion) 94.0 57.7 56.6 48.5 32.5 Number of Deals 22 61 21 34 11 *Completed Mergers and Acquisitions: Any Japanese involvement. in various ways through Nomura Principal Finance. For example, we invested in CCI and UHT for the purpose of MBO, and the acquisition of Daikuma in collaboration with Yamda Denki. Regarding corporate revival deals, we invested in Fuji Car Manufacturing, which had filed for bankruptcy under the Civil Rehabilitation Law. League table based on rank value. In Europe, the Principal Finance Group (PFG) contributed Source: Thomson Financial Merchant Banking its investments to a limited partnership in exchange for a limited partnership interest. As such, an independent investment manager assumed control of these invest- We invest our own capital to actively assist in corporate ments. As a result, we completed a reorganization of reorganizations, maximizing the return on investments by management structure in March 2002. We have also intro- raising corporate value. We added Merchant Banking as a duced outside capital to limit risk while pursuing returns. new business line in October 2001 as part of our organiza- tional changes. In an environment where Japanese corporations are required to use their assets efficiently, disposal of diversi- fied assets is a possibility. We look to pursue capital gains by investing our own capital, drawing on expertise accu- mulated overseas. Our Businesses 19 Research Research is the foundation of the securities business, supporting all products and services. Nomura Group organizes its research activities within a global frame- work, all the better to provide high-quality information. Development of a Global Research Framework reports in accordance with the compliance regulations of the various regions. With regard to quantitative research, With cross-border capital movements and globalized we are creating an optimal model that accommodates the corporate operations now day-to-day phenomena, it has best financial techniques to the particular needs of institu- become less meaningful to view companies in a national tional investors throughout the world. context. There is also a heightened tendency for stocks in We believe that by providing high value-added informa- the same sectors to move in unison internationally. Fewer tion to a broad range of investors, including domestic indi- investment decisions are based on the nationality of com- vidual investors, and domestic and overseas institutional panies and trading markets; rather, the key factor is global investors, we can contribute to the overall efficiency of comparison of corporate values by sector. Parallel to this financial and capital markets. development, there is a greater need than in the past to present attractive overseas investment opportunities to Japanese investors. We have taken steps to match our research organiza- tion to the scenario described above. Formerly, we took a region by region approach in our analyses of corporations and formulation of investment strategies. However, in order to enhance our global research framework, we put greater emphasis on corpo- rate research focused on global comparison within the same sector. Collaboration between analysts is conducted flexibly, with global teams for each research project. Research results are distributed in Japanese and English Bio Conference, autumn 2001 Celebrating the tie-up between FTSE and Nomura Securities Financial Research Center 20 Our Businesses Nomura Securities Financial Research Center department also publishes regular reports on the interna- tional diversification of investments, and U.S., European The research activities of the Financial Research Center are and Asian stock markets. conducted by four departments, namely Equity Research, Investment Strategy, Quantitative Research and Investment Quantitative Research Department (Quantitative Banking Research. The Center’s analysts rank consistently Analysts) high in polls published by The Nikkei Financial Daily and This department makes investment recommendations Institutional Investor. derived from quantitative analysis. The department is In an effort to strengthen our response to global developing dialogs with investors, including pension funds, research and compliance, for which investor needs have and research institutions, and provides leading-edge been increasing in recent years, we set up a Corporate information on financial engineering technology. Current Office in October 2001. activities include the classification by sector of not only Japanese stocks but also stocks from the world’s other Equity Research Department (Sector Analysts) major markets, and efforts to find appropriate valuations. This department has a staff complement of approximately As global investors increasingly require sector-by-sector 130, including 50 sector analysts covering 630 companies. analysis, improving the accuracy of international compar- In terms of total market capitalization, it covers 85% of the isons in quantitative analysis is an ongoing preoccupation First and Second Sections of the Tokyo Stock Exchange of this department. and the OTC market. In addition to analyses of companies’ financial statements, visits to plants, stores, etc., and inter- Investment Banking Research Department views with management, the Equity Research Department (Investment Analysts) carries out research on overseas subsidiaries and foreign This department supports Nomura Securities’ investment competitors. Investment recommendations are delivered to banking operations. Its key functions relate not only to investors in the form of approximately 4,000 Morning financing and conventional asset management, but also to Meeting Memos and 300 reports each year. corporate restructuring, assisting corporations to make the most efficient use of their assets, and making recommen- Investment Strategy Department (Strategists) dations on corporate alliances and mergers and acquisi- This department analyzes the macroeconomies of different tions. It is not unusual for this process to extend across countries and international capital flows, and makes invest- national borders. Analysts belonging to this department ment recommendations on the stock markets of different therefore require in-depth knowledge of relevant legal, countries based on the performance forecasts of analysts accounting and taxation regulations. in the Equity Research Department. In the monthly report Japan Stock Investment Strategies, Nomura Securities offers views on Japanese stocks, taking into account the macroeconomic environment, industry trends, corpo- rate profitability, and the supply/demand situation. The Our Businesses 21 Asset Management Businesses In Japan, the need for asset management services is spreading and diversifying fast against a background of concern about personal financial security, including the adequacy of pensions. Nomura Group actively promotes asset management busi- ness with good growth prospects, centered on Nomura Asset Management Co., Ltd. (NAM). Goals and Strategy Largest Balance of Assets Under Management in Investment Trusts in Japan As a result of stagnating socioeconomic conditions and an The outstanding balance of assets under management in accelerated decrease in the birth rate, proper and efficient NAM’s public investment trusts as of the end of March asset management is increasingly required by all classes of 2002 was ¥3.2 trillion in stock investment trusts and ¥10.4 investors, ranging from household to institutional. We iden- trillion in bond investment trusts. The total of ¥13.6 trillion tify the details of such trends with great accuracy and aim placed NAM in top place in the domestic market, and the to strengthen our system in order to meet diversified asset company expects its assets under management to management needs by providing investment trusts and increase steadily as demand grows. investment advisory businesses. In particular, the improve- ment of product mix and strengthening of defined contribu- tion pension plan business is one of the most crucial issues in promoting asset management businesses. Enhancement of Investment Trust Products Amid a changing business environment, including a pro- longed slump in the stock markets and extremely low inter- est rates, removal of the full deposit guarantee and the start of defined contribution pension plans, we have entered an age in which investors are required to invest appropriately taking into consideration the nature of each of their assets. We offer a comprehensive product lineup Assets under Management in NAM’s Public Investment Trusts (Trillions of yen) 18 NAM’s Share of Public Investment Trusts in Japan Nomura 33% As of March 31, 2002 Source: Nomura Securities 12 6 0 with several risk/return characteristics, extending from cash 99.9 00.3 00.9 01.3 01.9 02.3 reserve products to high risk/high return products. By doing so, we intend to meet diversified and sophisticated Bond Investment Trusts Stock Investment Trusts needs of investors. Enhancement of Product Mix NAM plays a central role in product development and management. It offers a comprehensive product lineup, extending from Nomura MMF, bond investment trusts and other low risk/low return products to high risk/high return products such as stock investment trusts. We are actively re-shaping and developing our product lineup to capture individual financial assets. First, we have clarified the individual positions of our MRF, MMF and other savings-type products as a product group emphasizing security of principal. Second, we have established Nomura Short Term Prime Fund and Nomura Short Term Bond 22 Our Businesses Open as income funds to meet customers’ higher return companies. Plans to expand the role of the private sector needs. Third, in April 2002, we launched industry index in the management of public pension funds will serve to ETFs. These provide individual investors with a new selec- raise the size of Japan’s investment advisory assets. tion of products and facilitate the unwinding of cross- The outstanding balance of assets for which NAM is shareholdings by financial institutions. In August 2002, contracted to provide investment advice was ¥4.5 trillion as we launched a fund of funds called “My Story,” enabling of March 2002, and the balance of domestic pension fund small investors to spread their investments over various assets for which NAM acts as advisor was ¥3.6 trillion as of investment trusts. the end of March 2002, putting NAM among the leaders in Investment Advisory Business The investment advisory business continues to expand due Nomura BlackRock Asset Management Co., Ltd. to deregulation, including the start of pension fund asset Nomura BlackRock Asset Management is an investment management in the early 1990s for investment advisory advisory company established in April 1999 as a joint ven- the Japanese market. Enhancement of Product Mix Savings-type Investment Trusts ture between Nomura Asset Management Co., Ltd. and The BlackRock Co., Inc. of the United States. BlackRock uses world-leading risk management technology, and is rated highly in the U.S., particularly for bond management. Short Term Medium Term We market BlackRock’s management products and services in Japan on an exclusive basis, and Nomura BlackRock Asset Management provides investment advisory services to institutional investors such as financial institutions and pension funds. As of the end of March 2002, the outstanding balance of assets under manage- ment was ¥708 billion. Cash Reserve MRF Bond Fund MMF FFF Income Funds Nomura Short Term Prime Fund Nomura Short Term Bond Open Promotion of ETF Market Share by ETF Type TOPIX Type TOPIX Type Nikkei 225 Type Nikkei 225 Type 89% 69% As of end March 2002 Source: Nomura Securities Our Businesses 23 Asset Management Businesses Strengthening Defined Contribution Pension Plan Business defined contribution pension plans, ranging from support for plan implementation to supply of products. Japan’s Defined Contribution Pension Plan Law became Support for Plan Implementation (Plan Design) effective on October 1, 2001, marking the start of pension In providing plan design and support for implementation of plans whose benefits fluctuate in accordance with the defined contribution pension plans, Nomura Securities Co., results of investment decisions as well as general market Ltd. acts as a relationship manager with corporations. conditions. Nomura Funds Research and Technologies Co., Ltd. Based on accumulated know-how in the investment (NFR&T), established as a joint venture between NHI and trust and investment advisory businesses, and a well- Nomura Research Institute, Ltd., proposes plan designs established presence in the corporate employees’ invest- optimally suited to the particular situations of institutional ment plan market, we are utilizing Nomura Group’s collec- customers. tive strength to provide a wide variety of services relating to Response to Introduction of Defined Contribution Pension Plans Response to Introduction of Defined Contribution Pension Plans Plan Design Trust Services Product Supply Relationship Manager/ Investment Education Product Selection Provision of Information to Subscribers Record-keeping Nomura Funds Research and Technologies Co., Ltd. The Nomura Fundnet Securities Co., Ltd. Nomura DC Planning Co., Ltd. Japan Investor Solutions and Technologies Co., Ltd. 24 Our Businesses Management Support • Product Selection Trust Services Nomura Trust and Banking Co., Ltd. provides administra- Based on management assessments and analyses of tion services, including execution of trades on customer investment trusts carried out by NFR&T and Standard & orders received through JIS&T. Poor’s, Nomura DC Planning Co., Ltd. (NDCP) makes product selections and offers proposals from a neutral Product Supply standpoint. We conduct quality control by making quantita- Nomura Asset Management sets up and manages invest- tive and qualitative assessments, analyses and product ment trusts to help subscribers accumulate assets over the selections from a wide range of products provided by a long term. It strives to improve results through in-depth risk variety of management companies. analysis of a wide range of investment trusts. • Provision of Information to Subscribers Investment Education As the key player and management entity in this business, Nomura Securities Co., Ltd. provides investment education NDCP provides explanations of products and information through websites, publications, seminars and other tools on investment trust prices through cooperation with The for subscribers and companies that intend to start defined Nomura Fundnet Securities Co., Ltd., which operates call contribution pension plans. centers. • Record-keeping Japan Investor Solutions and Technologies Co., Ltd. (JIS&T) provides regular reports and record administration services for all subscribers. Our Businesses 25 Contributions to Society Sponsored Lectures It is important to provide the young people who will eventu- ally be responsible for the development of Japan’s econo- my with the opportunity to come into contact with the world of finance. Nomura Group organizes lectures by directors and managers in some 100 universities through- out Japan on the significance and operations of the securi- ties business. Nomura Cultural Foundation PMF International Music Education Festival 2001 Nomura Group supports a wide range of cultural activities in Japan and overseas via, among others, the Nomura Cultural Foundation. The Foundation was established on May 22, 1990. Its aim is “To provide assistance for the education of young artists, to support international exchange activities in art and culture, and to provide scholarships for foreign students studying in Japan, thereby promoting the devel- opment of international human resources and fostering international understanding as well as contributing to the promotion of Japan’s art and culture.” The most important event supported by the Foundation is the Pacific Music Festival (PMF), held over four weeks each summer in the Sapporo Art Park. PMF is an International Music Education Festival established in 1990 at the suggestion of the late Leonard Bernstein. More than 1,000 young musicians have already trained at this festival, and many of its graduates are currently engaged as performers and conductors throughout the world. In December 2000, in recognition of their continued support of PMF since its establishment, Nomura Securities and the Nomura Cultural Foundation, together with other supporters, were awarded the Mecenat Award for Outstanding Cultivation of the Arts (1999) by the Association for Corporate Support of the Arts. Also, in March 2001 PMF was awarded the 10th Culture Life Award Grand Prix by the Japan Fashion Association for its T O P work in promoting the role of culture as a contributor to a genuinely affluent society. Contributions to Society 26 2002 FIFA WORLD CUP™ Nomura America Foundation Lectures at Oxford University Nomura Securities Co., Ltd. was an official supplier in Japan to the 2002 FIFA World Cup™, co-hosted by Japan and Korea from May 31 to June 30. The 2002 World Cup, the first to be held in Asia, attracted the world’s attention from the first match in Seoul on May 31 to the final in Yokohama on June 30. Nomura Securities supported the 2002 World Cup, hoping that the tournament would provide a fillip to the Asian and world economies. The Nomura America Foundation was established in the State of New York in March 1994, since when it has gener- ally contributed funds to charitable organizations that are of interest to Nomura employees. For example, over the past three years the Foundation has given money to educational institutions across the United States as well as to child welfare and community service organizations. Following the tragic events of September 11, 2001, Nomura employees worldwide have donated money to the Foundation for on- going relief efforts. The Foundation has distributed funds to families of fire fighters and police officers who were killed in the disaster. Nomura International plc in London sponsors the Nomura Centre for Quantitative Finance at Oxford University. The Centre aims to promote research in mathematics and finance, with a special emphasis on approaches that com- bine practical relevance with mathematical interest. As part of the Centre’s activities, leading authorities in the fields of financial engineering and mathematical analysis present an annual lecture. The first lecturer was Robert Merton of Harvard University, who was awarded a Nobel Prize in 1997 for his work on option pricing theory. The purpose of the lectures is to encourage the development of excep- derivatives modeling. tional talent in specialized fields relating to advanced I C S Contributions to Society 27 Nomura Holdings, Inc. Corporate Data (As of March 31, 2002) Board of Directors and Statutory Auditors (As of June 30, 2002) Nomura Holdings, Inc. Board of Directors Type of Business: NHI is a holding company with controlling stakes in companies that conduct investment and financial services businesses with an emphasis on securities businesses. Date of Incorporation: December 25, 1925 Representative: Junichi Ujiie, President and Chief Executive Officer Capital: ¥182,799,788,854 (As of March 31, 2002) Number of Common Stock Issued: 1,965,919,860 shares (As of March 31, 2002) Number of Shareholders: 199,392 (As of March 31, 2002) President and Chief Executive Officer Junichi Ujiie Executive Vice President and Chief Operating Officer Nobuyuki Koga Directors Hiroshi Toda Kazutoshi Inano Takashi Tsutsui Takashi Yanagiya Kenichi Watanabe Masanori Itatani Hitoshi Tada Masaharu Shibata* Hideaki Kubori* Listings: Statutory Auditors Hironobu Goto Munetsugu Wakamatsu Fumihide Nomura* Haruo Tsuji* * Outside directors and outside statutory auditors The common shares of Nomura Holdings, Inc. are listed on the Tokyo, Osaka, Nagoya and Singapore stock exchanges. The shares are also listed on the New York Stock Exchange in the form of American Depositary Receipts and on the Amsterdam Stock Exchange (Euronext) both through the Amsterdam Securities Account System and in the form of Continental Depositary Receipts. Head Office: 1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8645, Japan Tel: 81(3) 5255-1000 Fax: 81(3) 5255-1064 URL: http://www.nomura.com Transfer Agent and Registrar: UFJ Trust Bank Limited Corporate Agency Department 81(3) 5683-5111 Depositary for American Depositary Receipt (ADRs): The Bank of New York ADR Division 1(212) 815-2293 http://www.adrbny.com Ratio:1 ADR =1 ordinary share 28 Nomura Holdings, Inc. Consolidated Income Statement (U.S. GAAP) Millions of yen Years ended March 31 2000 2001 2002 Revenue: Commissions Fees from investment banking Asset management and portfolio service fees Net gain on trading Interest and dividends Profit (loss) on investments in equity securities Profit from changes in equity of an affiliated company PFG entities product sales PFG entities rental income Gain on sales of PFG entities Gain on private equity investments Other Total revenue Interest expense Net revenue Non-interest expenses: Compensation and benefits Commissions and floor brokerage Information processing and communications Occupancy and related depreciation Business development expenses PFG entities cost of goods sold PFG entities expenses associated with rental income Other ¥ 329,332 93,644 63,799 253,328 419,742 90,839 — 56,476 144,005 — — 48,616 1,499,781 437,131 1,062,650 286,268 21,342 54,961 71,191 20,418 37,408 51,706 147,136 690,430 ¥ 189,841 87,160 144,882 307,989 518,941 (98,968) — 117,523 103,339 — — 98,591 1,469,298 553,643 915,655 305,190 26,393 70,998 65,319 29,940 84,004 43,760 133,879 759,483 ¥ 140,001 75,255 109,985 162,228 500,541 (55,860) 3,504 294,931 177,053 116,324 232,472 68,965 1,825,399 504,048 1,321,351 379,540 20,962 87,252 73,787 26,652 200,871 111,529 247,786 1,148,379 Income before income taxes 372,220 156,172 172,972 Income tax expense: Current Deferred Net income Per share of common stock: Net-income —Basic —Diluted 12,866 155,805 168,671 ¥ 203,549 ¥ 103.71 ¥ 103.17 53,693 45,069 98,762 ¥ 57,410 Yen ¥ 29.25 ¥ 29.25 61,898 (56,972) 4,926 ¥ 168,046 ¥ 85.57 ¥ 85.32 29 Nomura Holdings, Inc. Subsidiaries and Affiliates (As of March 31, 2001) Major Subsidiaries Japan NOMURA SECURITIES CO., LTD. Nihonbashi Head Office: 1-9-1, Nihonbashi, Chuo-ku Tokyo 103-8011, Japan Tel: 81 (3) 3211-1811 Fax: 81 (3) 3278-0420 Otemachi Head Office: 2-2-2, Otemachi, Chiyoda-ku Tokyo 100-8130, Japan Tel: 81 (3) 3211-1811 Fax: 81 (3) 3278-0420 NOMURA ASSET MANAGEMENT CO., LTD. 2-1-14, Nihonbashi, Chuo-ku Tokyo 103-8260, Japan Tel: 81 (3) 3241-9511 Fax: 81 (3) 3241-8275 THE NOMURA TRUST & BANKING CO., LTD. 1-1-1, Nihonbashi, Chuo-ku Tokyo 103-0027, Japan Tel: 81 (3) 5202-1600 Fax: 81 (3) 3275-0760 NOMURA BABCOCK & BROWN CO., LTD. 1-11-1, Nihonbashi, Chuo-ku Tokyo 103-0027, Japan Tel: 81 (3) 3281-7141 Fax: 81 (3) 3281-0215 NOMURA CORPORATE ADVISORS CO., LTD. (merged with NOMURA SECURI- TIES CO., LTD. in April 2002) 2-2-2, Otemachi, Chiyoda-ku Tokyo 100-0004, Japan Tel: 81 (3) 3281-2031 Fax: 81 (3) 3281-2590 NOMURA CAPITAL INVESTMENT CO., LTD. 2-2-2, Otemachi, Chiyoda-ku Tokyo 100-8130, Japan Tel: 81 (3) 3278-5151 Fax: 81 (3) 3278-1432 NOMURA INVESTOR RELATIONS CO., LTD. 1-26-2, Nishi-Shinjuku, Shinjuku-ku Tokyo 163-0537, Japan Tel: 81 (3) 3340-0300 Fax: 81 (3) 3340-0308 NOMURA PRINCIPAL FINANCE CO., LTD. 2-2-2, Otemachi, Chiyoda-ku Tokyo100-8130, Japan Tel: 81 (3) 3278-0243 Fax: 81 (3) 3271-2498 THE NOMURA FUNDNET SECURITIES CO., LTD. 3-2, Nihonbashi-kobunacho, Chuo-ku Tokyo 103-0024, Japan Tel: 81 (3) 3665-1011 Fax: 81 (3) 3665-2505 NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC. 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9300 Fax: 1 (212) 667-1058 NOMURA FUNDS RESEARCH AND TECHNOLOGIES CO., LTD. 2-2-2, Otemachi, Chiyoda-ku Tokyo 100-8130, Japan Tel: 81 (3) 3276-2151 Fax: 81 (3) 3275-9360 NOMURA DC PLANNING CO., LTD. 2-2-2, Otemachi, Chiyoda-ku Tokyo 100-8130, Japan Tel: 81 (3) 3275-0401 Fax: 81 (3) 3275-2277 NOMURA RESEARCH & ADVISORY CO., LTD. 2-2-2, Otemachi, Chiyoda-ku Tokyo 100-8130, Japan Tel: 81 (3) 5255-9416 Fax: 81 (3) 5255-1775 NOMURA BUSINESS SERVICES CO., LTD. 1-7-2, Nihonbashi-honcho, Chuo-ku Tokyo 103-0023, Japan Tel: 81 (3) 3278-9711 Fax: 81 (3) 3241-8187 NOMURA SATELLITE COMMUNICATIONS CO., LTD. 1-9-1, Nihonbashi, Chuo-ku Tokyo 103-8011, Japan Tel: 81 (3) 3271-6372 Fax: 81 (3) 3271-6377 AMERICAS NOMURA HOLDING AMERICA INC. 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9300 Fax: 1 (212) 667-1058 NOMURA SECURITIES INTERNATIONAL, INC. New York Head Office: 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9300 Fax: 1 (212) 667-1058 Chicago Office: 311 South Wacker Drive, Suite 6100 Chicago, Illinois 60606, U.S.A. Tel: 1 (312) 408-9500 Fax: 1 (312) 408-9555 Los Angeles Office: 633 West, Fifth Street, 68th Floor Los Angeles, California 90071, U.S.A. Tel: 1 (213) 243-1600 Fax: 1 (213) 243-1649 São Paulo Representative Office: Av. Brigadeiro Faria Lima no. 2179 6th Floor-cj. 61, São Paulo, S.P. Brazil CEP 01452-000 Tel: 55 (11) 3034-2258 Fax: 55 (11) 3034-2259 NOMURA ASSET CAPITAL CORPORATION 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9300 Fax: 1 (212) 667-1058 THE CAPITAL COMPANY OF AMERICA, LLC 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-2250 Fax: 1 (212) 667-1095 NOMURA DERIVATIVE PRODUCTS, INC. 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9416 Fax: 1 (212) 667-1400 NOMURA GLOBAL FINANCIAL PRODUCTS, INC. 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-2357 Fax: 1 (212) 667-1047 NOMURA INTERNATIONAL TRUST COMPANY Exchange Place Center, 10 Exchange Place 16th Floor, Jersey City New Jersey 07302, U.S.A. Tel: 1 (201) 332-2155 Fax: 1 (201) 332-0547 NOMURA SECURITIES (BERMUDA) LTD. Stockton House, 96 Pitts Bay Road Pembroke HM 08, Bermuda Tel: 1 (441) 296-4050 Fax: 1 (441) 296-4061 NOMURA CANADA INC. P.O. Box 434, Suite 5830 1 First Canadian Place, Toronto Ontario M5X 1E3, Canada Tel: 1 (416) 868-1683 Fax: 1 (416) 359-8956 NOMURA REALTY ADVISORS, INC. 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9197 Fax: 1 (212) 667-1643 NOMURA FUNDS RESEARCH AND TECHNOLOGIES AMERICA, INC. 2 World Financial Center, Building B New York, New York 10281-1198, U.S.A. Tel: 1 (212) 667-9300 Fax: 1 (212) 667-1058 NOMURA ASSET MANAGEMENT U.S.A. INC. 180 Maiden Lane, 26th Floor, New York New York 10038, U.S.A. Tel: 1 (212) 509-8181 Fax: 1 (212) 509-8835 30 EUROPE & MIDDLE EAST NOMURA SECURITIES CO., LTD. Vienna Representative Office: “Kärntner Ring Hof” Kärntner Ring 5-7, A-1010 Vienna, Austria Tel: 43 (1) 513-2322 Fax: 43 (1) 513-2321 NOMURA EUROPE HOLDINGS PLC Nomura House, 1 St. Martin’s-le-Grand London, EC1A 4NP, U.K. Tel: 44 (207) 521-2000 Fax: 44 (207) 521-2121 NOMURA INTERNATIONAL PLC London Head Office: Nomura House, 1 St. Martin’s-le-Grand London, EC1A 4NP, U.K. Tel: 44 (207) 521-2000 Fax: 44 (207) 521-2121 Madrid Office: Alcala 44, 3ºA, 28014, Madrid, Spain Tel: 34 (91) 532-0920 Fax: 34 (91) 521-6010 Prague Representative Office: 2nd Floor, Betlem Palais, Husova 5 11000 Prague 1, Czech Republic Tel: 420 (2) 24401444 Fax: 420 (2) 24248648 NOMURA BANK INTERNATIONAL PLC Nomura House, 1 St. Martin’s-le-Grand London, EC1A 4NP, U.K. Tel: 44 (207) 521-2000 Fax: 44 (207) 626-0851 NOMURA GLOBAL FUNDING PLC Nomura House, 1 St. Martin’s-le-Grand London, EC1A 4NP, U.K. Tel: 44 (207) 521-2000 Fax: 44 (207) 521-2121 BANQUE NOMURA FRANCE 164, rue de Rivoli, 75001, Paris, France Tel: 33 (1) 42971900 Fax: 33 (1) 42971888 NOMURA ITALIA S.I.M.p.A. Via Palestro, 2-20121 Milan, Italy Tel: 39 (02) 76461 Fax: 39 (02) 76317106 NOMURA NEDERLAND N.V. Atrium 1st Floor, Strawinskylaan 3109 1077 ZX, Amsterdam, The Netherlands Tel: 31 (20) 5999000 Fax: 31 (20) 4684682 NOMURA EUROPE FINANCE N.V. Atrium 1st Floor, Strawinskylaan 3109 1077 ZX, Amsterdam, The Netherlands Tel: 31 (20) 5999000 Fax: 31 (20) 4684682 NOMURA BANK (LUXEMBOURG) S.A. 6 avenue Emile Reuter, L-2420 Luxembourg Grand Duchy of Luxembourg Tel: 352-4638888 Fax: 352-463333 NOMURA BANK (DEUTSCHLAND) GmbH MesseTurm D-60308 Frankfurt am Main Federal Republic of Germany Tel: 49 (69) 97508-0 Fax: 49 (69) 97508-600 NOMURA BANK (SWITZERLAND) LTD. Zurich Head Office: Kasernenstrasse 1, P.O. Box CH-8021 Zurich Switzerland Tel: 41 (1) 2957111 Fax: 41 (1) 2422141 Geneva Office: 10, Quai du Seujet, P.O. Box CH-1211 Geneva 11, Switzerland Tel: 41 (22) 9098400 Fax: 41 (22) 7328314 NOMURA SECURITIES HUNGARY LTD. East-West Business Center 7th Floor, 1088 Budapest Rákóczi út 1-3, Hungary Tel: 36 (1) 235-5200 Fax: 36 (1) 235-5299 NOMURA INVESTMENT BANKING (MIDDLE EAST) E.C. 7th Floor, BMB Centre Diplomatic Area, P.O. Box 26893 Manama, Bahrain Tel: 973-530531 Fax: 973-530365 NOMURA FUNDING FACILITY CORPORATION LIMITED International House, 3 Harbourmaster Place IFSC, Dublin 1, Ireland Tel: 353 (1) 667-0200 Fax: 353 (1) 670-0288 NOMURA ASSET MANAGEMENT U.K. LIMITED 6th Floor, Nomura House, 1 St. Martin’s-le-Grand, London EC1A 4NP, U.K. Tel: 44 (207) 521-3333 Fax: 44 (207) 796-1246 NOMURA ASSET MANAGEMENT IRELAND LIMITED Grand Central House, 1 Upper Grand Conal Street, Dublin 4, Ireland Tel: 353 (1) 667-0022 Fax: 353 (1) 667-0042 31 NOMURA SECURITIES SINGAPORE PTE. LTD. 6 Battery Road, #34-01, Singapore 049909 Singapore Tel: 65 (420) 1811 Fax: 65 (420) 1818 NOMURA FUTURES (SINGAPORE) PTE. LTD. 6 Battery Road, #34-01, Singapore 049909 Singapore Tel: 65 (420) 1811 Fax: 65 (420) 1888 NOMURA ADVISORY SERVICES (MALAYSIA) SDN. BHD. Suite No.16. 3, Level 16, Letter Box No.46 Menara IMC, 8 Jalan Sultan Ismail 50250 Kuala Lumpur, Malaysia Tel: 60 (3) 2076-6811 Fax: 60 (3) 2076-6888 P.T. NOMURA INDONESIA 7th Floor, The Daiwa Perdania Bank Jl. Jend. Sudirman Kav. 40-41 Jakarta 10210, The Republic of Indonesia Tel: 62 (21) 571-8888 Fax: 62 (21) 571-8881 NOMURA SECURITIES PHILIPPINES, INC. 18F, Tower The Enterprise Center 6766 Ayala Avenue Corner, Paseo de Roxas Makati City 1200, Philippines Tel: 63 (2) 886-5240 Fax: 63 (2) 886-5250 NOMURA AUSTRALIA LIMITED Level 32, Colonial Centre, 52 Martin Place, Sydney, N.S.W. 2000, Australia Tel: 61 (2) 9321-3500 Fax: 61 (2) 9321-3599 NOMURA ASSET MANAGEMENT SINGAPORE LIMITED 6 Battery Road #34-02, Singapore 049909 Singapore Tel: 65 (420) 1788 Fax: 65 (420) 1799 Major Affiliates and Group Companies JAPAN NOMURA LAND AND BUILDING CO., LTD. 1-7-2, Nihonbashi-honcho, Chuo-ku Tokyo 103-0023, Japan Tel: 81 (3) 3231-6221 Fax: 81 (3) 3231-4625 NOMURA RESEARCH INSTITUTE, LTD. 2-2-1, Otemachi, Chiyoda-ku Tokyo 100-0004, Japan Tel: 81 (3) 5255-1800 Fax: 81 (3) 5255-9312 NOMURA REAL ESTATE DEVELOPMENT CO., LTD. 1-26-2, Nishi-Shinjuku, Shinjuku-ku Tokyo 163-0566, Japan Tel: 81 (3) 3348-8811 Fax: 81 (3) 3345-0381 JAFCO CO., LTD. Tekko Building 1-8-2, Marunouchi, Chiyoda-ku Tokyo 100-0005, Japan Tel: 81 (3) 5223-7536 Fax: 81 (3) 5223-7561 NOMURA CHINA INVESTMENT CO., LTD. 1-7-2, Nihonbashi-honcho, Chuo-ku Tokyo 103-0023, Japan Tel: 81 (3) 3274-4608 Fax: 81 (3) 3274-6799 NIPPON CLEARING SERVICES CO., LTD. 6-7, Nihonbashi-koamicho, Chuo-ku Tokyo 103-0016, Japan Tel: 81 (3) 3663-6751 Fax: 81 (3) 3663-6733 ASIA & OCEANIA NOMURA ASSET MANAGEMENT HONG KONG LIMITED 32/F Citibank Tower Citibank Plaza, 3 Garden Road Central, Hong Kong Tel: 852 (2524) 8061 Fax: 852 (2536) 1067 NOMURA CITIC INTERNATIONAL ECONOMIC CONSULTANTS CO., LTD. 1601, Beijing Fortune Building 5 Dongsanhuan-Beilu, Chaoyang District, Beijing, People’s Republic of China Tel: 86 (10) 6590-9091 Fax: 86 (10) 6590-9088 CAPITAL NOMURA SECURITIES PUBLIC COMPANY LIMITED 21/3 Thai Wah Tower, Ground Floor South Sathorn Road, Bangkok 10120 Thailand Tel: 66 (2) 285-0060 Fax: 66 (2) 285-0620 INTERNATIONAL UNION LEASING CO., LTD. 1616, Beijing Fortune Building 5 Dongsanhuan-Beilu, Chaoyang District, Beijing, People’s Republic of China Tel: 86 (10) 6590-8989 Fax: 86 (10) 6590-8999 ASIA & OCEANIA NOMURA SECURITIES CO., LTD. Seoul Branch Office: 12th Floor, Youngpoong Building 33 Seorin-dong, Chongro-ku, Seoul, Korea Tel: 82 (2) 399-6100 Fax: 82 (2) 399-5255 Taipei Branch Office: 14th Floor, 109 Min-Sheng East Road Sec. 3, Taipei, Taiwan R.O.C. Tel: 886 (2) 2547-9300 Fax: 886 (2) 2547-9388 Beijing Representative Office: 1708, Beijing Fortune Building 5 Dongsanhuan-Beilu, Chaoyang District Beijing, People’s Republic of China Tel: 86 (10) 6590-8181 Fax: 86 (10) 6590-8182 Shanghai Representative Office: 601, Garden Hotel Shanghai 58 Maoming Nan-lu, Shanghai People’s Republic of China Tel: 86 (21) 6415-1565 Fax: 86 (21) 6415-1317 Hanoi Representative Office: Unit 1103, 11th Floor, Hanoi Central Building B Ly Thuong, Kiet Street, Hanoi, Vietnam Tel: 84 (4) 8250-414 Fax: 84 (4) 8250-219 NOMURA ASIA HOLDING N. V. Atrium 1st Floor, Strawinskylaan 3109 1077 ZX, Amsterdam, The Netherlands Tel: 31 (20) 5999000 Fax: 31 (20) 4684682 NOMURA INTERNATIONAL (HONG KONG) LIMITED 20/F-21/F, 3 Garden Road, Central Hong Kong Tel: 852 (2536) 1111 Fax: 852 (2536) 1888 NOMURA FUTURES (HONG KONG) LIMITED 20/F-21/F, 3 Garden Road, Central Hong Kong Tel: 852 (2536) 1111 Fax: 852 (2536) 1888 NOMURA SECURITIES (HONG KONG) LIMITED 20/F-21/F, 3 Garden Road, Central Hong Kong Tel: 852 (2536) 1111 Fax: 852 (2536) 1888 NOMURA ASIA LIMITED 20/F-21/F, 3 Garden Road, Central Hong Kong Tel: 852 (2536) 1720 Fax: 852 (2536) 1395 NOMURA SINGAPORE LIMITED 6 Battery Road, #34-01, Singapore 049909 Singapore Tel: 65 (420) 1811 Fax: 65 (420) 1888 32 Nomura Securities Co., Ltd. Domestic Network (As of March 31, 2002) (cid:2) Hokkaido (cid:2) Tohoku (cid:2) Kanto (cid:2) Tokyo metropolitan area Office Name Head Office Asahikawa Branch Office Hakodate Branch Office Kushiro Branch Office Sapporo Branch Office Akita Branch Office Aomori Branch Office Fukushima Branch Office Koriyama Branch Office Morioka Branch Office Sendai Branch Office Yamagata Branch Office Aobadai Branch Office Atsugi Branch Office Chiba Branch Office Fujisawa Branch Office Funabashi Branch Office Hiratsuka Branch Office Kashiwa Branch Office Kawagoe Branch Office Kawaguchi Branch Office Kawasaki Branch Office Matsudo Branch Office Mito Branch Office Omiya Branch Office Saitama Branch Office Shinyurigaoka Branch Office Takasaki Branch Office Tama Plaza Branch Office Tokorozawa Branch Office Totsuka Branch Office Tsuchiura Branch Office Urawa Branch Office Utsunomiya Branch Office Yokohama Branch Office Yokohama-eki Nishiguchi Branch Office Yokosuka Branch Office Fuchu Branch Office Gotanda Branch Office Hachioji Branch Office Ikebukuro Branch Office Ikebukuro Metropolitan Plaza Branch Office Jiyugaoka Branch Office Kamata Branch Office (From September, 2002) Kichijoji Branch Office Koiwa Branch Office Kokubunji Branch Office Machida Branch Office Mita Branch Office Nerima Branch Office Ogikubo Branch Office Omori Branch Office Seijo Branch Office Senju Branch Office Shibuya Branch Office Shinbashi Branch Office Shinjuku Branch Office Shinjuku-eki Nishiguchi Branch Office Shinjuku Nomura Building Branch Office Tachikawa Branch Office Tamagawa Branch Office Tokyo Branch Office Toranomon Branch Office Ueno Branch Office Telephone Address 81(3)3211-1811 1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8011 81(166)23-1181 81(138)26-8111 81(154)23-1171 81(11)261-7211 1 Migi, 9 Gojo-dori, Asahikawa-shi, Hokkaido 070-0035 7-15, Wakamatsu-cho, Hakodate-shi, Hokkaido 040-0063 13-1, Kitaodori, Kushiro-shi, Hokkaido 085-0015 4, Kitasanjo-nishi, Chuo-ku, Sapporo-shi, Hokkaido 060-0003 81(18)831-2111 81(17)723-4111 81(24)522-2111 81(24)923-8711 81(19)653-5000 81(22)221-3111 81(23)622-1313 81(45)985-1171 81(46)224-8666 81(43)227-2161 81(466)25-1311 81(47)433-2211 81(463)21-2111 81(4)7163-2011 81(49)225-5151 81(48)256-3811 81(44)233-6751 81(47)362-1221 81(29)224-5231 81(48)641-8111 81(48)645-8100 81(44)953-6511 81(27)323-9111 81(45)902-1122 81(42)923-3811 81(45)881-1181 81(298)21-8811 81(48)833-1881 81(28)636-2181 81(45)641-2101 81(45)311-1671 81(468)23-2550 81(42)369-8111 81(3)3491-9101 81(426)46-3811 81(3)3983-1111 81(3)3988-1181 81(3)3718-3371 81(3)3738-5101 81(3)3783-5101 81(422)22-8181 81(3)3657-1141 81(42)328-6011 81(42)725-2111 81(3)3769-6651 81(3)3994-7711 81(3)3392-6011 81(3)3774-1181 81(3)3482-2011 81(3)3882-8411 81(3)3400-7111 81(3)3572-0111 81(3)3205-1001 81(3)3342-1281 81(3)3348-8211 81(42)524-1111 81(3)3708-1811 81(3)3211-2411 81(3)3583-2301 81(3)3831-9211 4-2-7, Nakadori, Akita-shi, Akita 010-0001 2-6-29, Shin-machi, Aomori-shi, Aomori 030-0801 4-1, O-machi, Fukushima-shi, Fukushima 960-8041 2-5-12, Ekimae, Koriyama-shi, Fukushima 963-8002 2-2-18, Odori, Morioka-shi, Iwate 020-0022 2-1-1, Chuo, Aoba-ku, Sendai-shi, Miyagi 980-8730 1-7-30, Toka-machi, Yamagata-shi, Yamagata 990-0031 2-6-1, Aobadai, Aoba-ku, Yokohama-shi, Kanagawa 227-0062 2-2-20, Naka-cho, Atsugi-shi, Kanagawa 243-0018 1-14-13, Fujimi, Chuo-ku, Chiba-shi, Chiba 260-0015 1-5-10, Kugenumaishigami, Fujisawa-shi, Kanagawa 251-0025 2-1-33, Hon-cho, Funabashi-shi, Chiba 273-0005 2-14, Beniya-cho, Hiratsuka-shi, Kanagawa 254-0043 1-4-29, Kashiwa, Kashiwa-shi, Chiba 277-8769 105, Wakita-machi, Kawagoe-shi, Saitama 350-1122 3-10-1, Sakae-cho, Kawaguchi-shi, Saitama 332-0017 5-2, Higashida-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa 210-8604 1281-29, Matsudo, Matsudo-shi, Chiba 271-0092 1-3-37, Miya-machi, Mito-shi, Ibaraki 310-0015 1-24, Daimon-cho, Saitama-shi, Saitama 330-0846 2-155, Sakuragi-cho, Saitama-shi, Saitama 331-0852 1-5-3, Kamiaso, Aso-ku, Kawasaki-shi, Kanagawa 215-0021 58-1, Yashima-cho, Takasaki-shi, Gunma 370-0849 5-1-2, Utsukushigaoka, Aoba-ku, Yokohama-shi, Kanagawa 225-0002 10-19, Hiyoshi-cho, Tokorozawa-shi, Saitama 359-1123 489-1, Kamikurata-cho, Totsuka-ku, Yokohama-shi, Kanagawa 244-0816 1-10-8, Kawaguchi, Tsuchiura-shi, Ibaraki 300-0033 2-13-8, Takasago, Saitama-shi, Saitama 336-0011 2-1-1, Babadori, Utsunomiya-shi, Tochigi 320-0026 4-52, Onoe-cho, Naka-ku, Yokohama-shi, Kanagawa 231-0015 1-5-10, Kitasaiwai, Nishi-ku, Yokohama-shi, Kanagawa 220-0004 1-9, Odaki-cho, Yokosuka-shi, Kanagawa 238-0008 1-8-1, Fuchu-cho, Fuchu-shi, Tokyo 183-8691 1-5-1, Nishi-Gotanda, Shinagawa-ku, Tokyo 141-0031 11-6, Asahi-cho, Hachioji-shi, Tokyo 192-0083 1-27-10, Minami-Ikebukuro, Toshima-ku, Tokyo 171-0022 1-11-1, Nishi-Ikebukuro, Toshima-ku, Tokyo 171-0021 2-10-9, Jiyugaoka, Meguro-ku, Tokyo 152-0035 7-46-7, Nishi-Kamata, Ota-ku, Tokyo 144-0051 5-15-8, Kamata, Ota-ku, Tokyo 144-052 2-2-16, Kichijoji-honcho, Musashino-shi, Tokyo 180-0004 7-22-6, Minami-Koiwa, Edogawa-ku, Tokyo 133-0056 2-12-2, Hon-cho, Kokubunji-shi, Tokyo 185-0012 6-3-9, Haramachida, Machida-shi, Tokyo 194-0013 5-20-14, Shiba, Minato-ku, Tokyo 108-0014 5-17-10, Toyotama-kita, Nerima-ku, Tokyo 176-0012 1-8-8, Kamiogi, Suginami-ku, Tokyo 167-0043 2-5-10, Sanno, Ota-ku, Tokyo 143-0023 5-8-1, Seijo, Setagaya-ku, Tokyo 157-0066 2-18, Senjukotobuki-cho, Adachi-ku, Tokyo 120-0033 1-14-16, Shibuya, Shibuya-ku, Tokyo 150-0002 1-9-6, Shinbashi, Minato-ku, Tokyo 105-0004 5-17-9, Shinjuku, Shinjuku-ku, Tokyo 163-8691 1-6-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1590 1-26-2, Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0502 2-5-1, Akebono-cho, Tachikawa-shi, Tokyo 190-0012 3-7-18, Tamagawa, Setagaya-ku, Tokyo 158-0094 1-8-2, Marunouchi, Chiyoda-ku, Tokyo 100-0005 2-1-1, Toranomon, Minato-ku, Tokyo 105-0001 2-1-8, Ueno, Taito-ku, Tokyo 110-8501 33 Office Name Telephone Address Fukui Branch Office Gifu Branch Office (From September, 2002) Hamamatsu Branch Office Kanayama Branch Office Kanazawa Branch Office Kofu Branch Office Matsumoto Branch Office Nagano Branch Office Nagoya Branch Office Nagoya-ekimae Branch Office Niigata Branch Office Numazu Branch Office (From April 22, 2002) Okazaki Branch Office Shizuoka Branch Office Toyama Branch Office Toyohashi Branch Office Toyota Branch Office Tsu Branch Office Yokkaichi Branch Office Akashi Branch Office Higashiosaka Branch Office Himeji Branch Office Hirakata Branch Office Kishiwada Branch Office Kobe Branch Office Kyoto Branch Office Nanba Branch Office Nara Branch Office Nishinomiya Branch Office Osaka Branch Office Otsu Branch Office Sakai Branch Office Senri Branch Office Takatsuki Branch Office Tennoji-eki Branch Office Toyonaka Branch Office Tsukaguchi Branch Office Uehonmachi Branch Office Umeda Branch Office Wakayama Branch Office Fukuyama Branch Office Hiroshima Branch Office Kochi Branch Office Kurashiki Branch Office Matsue Branch Office Matsuyama Branch Office Okayama Branch Office Shimonoseki Branch Office Takamatsu Branch Office Tokushima Branch Office Tokuyama Branch Office Yonago Branch Office Fukuoka Branch Office Kagoshima Branch Office Kitakyushu Branch Office Kumamoto Branch Office Kurume Branch Office Miyazaki Branch Office Nagasaki Branch Office Naha Branch Office Oita Branch Office Saga Branch Office (cid:2) Chubu/Hokuriku (cid:2) Osaka/Kinki area (cid:2) Chugoku/Shikoku (cid:2) Kyushu/Okinawa 34 81(776)22-8011 81(58)262-3101 81(58)262-3101 81(53)454-3151 81(52)322-1261 81(76)221-3145 81(55)237-1781 81(263)33-6781 81(26)228-1811 81(52)201-2311 81(52)561-5251 81(25)225-7777 3-4-1, Ote, Fukui-shi, Fukui 910-0005 7-15, Kanda-machi, Gifu-shi, Gifu 500-8833 6-6, Kanamachi, Gifu-shi, Gifu 500-8842 330-5, Tamachi, Hamamatsu-shi, Shizuoka 430-0944 1-12-14, Kanayama, Naka-ku, Nagoya-shi, Nagoya, Aichi 460-0022 3-25, Takaoka-machi. Kanazawa-shi, Ishikawa 920-0864 1-8-17, Marunouchi, Kofu-shi, Yamanashi 400-0031 2-1-31, Chuo, Matsumoto-shi, Nagano 390-0811 1361, Suehiro-cho, Minami-Nagano, Nagano-shi, Nagano 380-8640 2-19-22, Nishiki, Naka-ku, Nagoya-shi, Aichi 460-8689 3-22-8, Mei-eki, Nakamura-ku, Nagoya-shi, Aichi 450-8666 1215-7, Rokuban-cho, Kamiokawamaedori, Niigata-shi, Niigata 951-8068 81(55)962-4444 Mitsui seimei Otemachi Daini Building, 2-10-14, 81(564)23-1811 81(54)254-6151 81(76)421-7561 81(532)53-1121 81(565)33-1300 81(59)223-2111 81(593)53-2141 81(78)918-1155 81(6)6783-5241 81(792)22-6101 81(72)846-2511 81(724)38-8188 81(78)321-2201 81(75)221-7211 81(6)6632-5081 81(742)22-0351 81(798)64-8181 81(6)6201-1281 81(77)526-3131 81(72)221-9241 81(6)6831-1661 81(726)81-2111 81(6)6779-1431 81(6)6845-8401 81(6)6421-1400 81(6)6772-1261 81(6)6313-3431 81(73)431-2111 81(849)21-3111 81(82)247-4131 81(88)823-3311 81(86)421-1511 81(852)22-1515 81(89)941-0131 81(86)224-1181 81(832)31-3211 81(87)851-4111 81(88)623-0161 81(834)22-0811 81(859)34-2851 81(92)771-3111 81(99)226-8141 81(93)521-7581 81(96)352-3181 81(942)33-7151 81(985)24-7191 81(95)821-1161 81(98)864-2471 81(97)535-1211 81(952)22-7111 Otemachi, Numazu-shi, Shizuoka 410-0801 2-11, Koseidori-nishi, Okazaki-shi, Aichi 444-0059 6-6, Miyuki-cho, Shizuoka-shi, Shizuoka 420-0857 1-4-3, Tsutsumichodori, Toyama-shi, Toyama 930-0046 1-38, Ekimaeodori, Toyohashi-shi, Aichi 440-0888 1-200, Nishi-machi, Toyota-shi, Aichi 471-0025 371, Hadokoro-cho, Tsu-shi, Mie 514-0009 1-16, Suwasakae-machi, Yokkaichi-shi, Mie 510-0086 2-1-26, Hon-machi, Akashi-shi, Hyogo 673-0892 2-2-18, Chodo, Higashiosaka-shi, Osaka 577-0056 18, Shirogane-cho, Himeji-shi, Hyogo 670-0902 5-15, Okahigashi-machi, Hirakata-shi, Osaka 573-0032 6-10, Sujikai-cho, Kishiwada-shi, Osaka 596-0057 1-5-32, Sannomiya-cho, Chuo-ku, Kobe-shi, Hyogo 650-0021 Sakai-machi kado, Shijo-dori, Shimogyo-ku, Kyoto-shi, Kyoto 600-8006 4-1-15, Nanba, Chuo-ku, Osaka-shi, Osaka 542-0076 45, Hayashikoji-cho, Nara-shi, Nara 630-8227 1-3-8, Kofuen, Nishinomiya-shi, Hyogo 662-0832 2-5-4, Kitahama, Chuo-ku, Osaka-shi, Osaka 540-8604 3-1-27, Nagara, Otsu-shi, Shiga 520-0046 59, Miyukidori, Mikunigaoka, Sakai-shi, Osaka 590-0028 1-1-5, Shin-senrihigashi-machi, Toyonaka-shi, Osaka 560-0082 3-1-101, Konya-cho, Takatsuki-shi, Osaka 569-0804 10-48, Hidenin-cho, Tennoji-ku, Osaka-shi, Osaka 543-0055 1-2-33, Hon-machi, Toyonaka-shi, Osaka 560-0021 1-10-20, Tsukaguchi-cho, Amagasaki-shi, Hyogo 661-0002 6-5-28, Uehonmachi, Tennoji-ku, Osaka-shi, Osaka 543-0001 2-4, Komatsubara-cho, Kita-ku, Osaka-shi, Osaka 530-0018 9-2, Juban-cho, Wakayama-shi, Wakayama 640-8152 3-1, Higashisakura-machi, Fukuyama-shi, Hiroshima 720-0065 2-23, Tate-machi, Naka-ku, Hiroshima-shi, Hiroshima 730-0032 1-2-6, Harimaya-cho, Kochi-shi, Kochi 780-0822 3-9-10, Achi, Kurashiki-shi, Okayama 710-0055 484-16, Asahi-machi, Matsue-shi, Shimane 690-0003 5-7-3, Chifune-machi, Matsuyama-shi, Ehime 790-8691 6-24, Nishiki-machi, Okayama-shi, Okayama 700-8640 1-3-15, Hosoe-cho, Shimonoseki-shi, Yamaguchi 750-8691 10-5, Furushin-machi, Takamatsu-shi, Kagawa 760-0025 3-14, Yaoya-machi, Tokushima-shi, Tokushima 770-0841 1-3, Hon-machi, Tokuyama-shi, Yamaguchi 745-0036 1-27-13, Kakuban-cho, Yonago-shi, Tottori 683-0812 2-14-8, Tenjin, Chuo-ku, Fukuoka-shi, Fukuoka 810-0001 1-4, Sennichi-cho, Kagoshima-shi, Kagoshima 892-0843 3-1-1, Kyo-machi, Kokurakita-ku, Kitakyushu-shi, Fukuoka 802-0002 12-30, Hanabata-cho, Kumamoto-shi, Kumamoto 860-8604 24-18, Hiyoshi-machi, Kurume-shi, Fukuoka 830-0017 4-1-2, Tachibanadori-higashi, Miyazaki-shi, Miyazaki 880-8607 6-5, Doza-machi, Nagasaki-shi, Nagasaki 850-8691 1-1-19, Matsuyama, Naha-shi, Okinawa 900-0032 1-3-20, Chuo-machi, Oita-shi, Oita 870-0035 3-15, Ekiminami-honmachi, Saga-shi, Saga 840-0816 For further information, please contact: Investor Relations Department Nomura Group Headquarters NOMURA SECURITIES CO., LTD. 1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8011, Japan Tel: 81 (3) 3211-1811 URL:http://www.nomura.com Printed in Japan on recycled paper. 

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