ANNUAL REPORT
2003
Nomura Holdings, Inc.
PROFILE
Nomura Group, with its core businesses of the securities and related busi-
nesses, is dedicated to providing a broad range of financial services for
individual, institutional, corporate and government customers.
We offer a diverse line of competitive products and value-added financial
and advisory services through Nomura Securities Co., Ltd., its subsidiaries,
and an overseas network that comprises offices in 28 countries. Our
business activities include investment consultation services for domestic
retail investors, securities brokerage services, securities underwriting for
domestic and foreign governments and corporations, merger and acquisi-
tion and financial advisory services, merchant banking, and asset
management for investment trusts and pension funds.
CONTENTS
(cid:2)Consolidated Financial Highlights (U.S. GAAP) . . . . . . . . . . . . . . . . . . .
1
(cid:2)Business Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(cid:2)Management Policy of Nomura Group . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
To Our Shareholders and Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Top Management Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Messages from Division Heads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Nomura Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
(cid:2)Divisional Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Domestic Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Global Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
(cid:2)Global Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
(cid:2)Contributions to Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Nomura Holdings, Inc.
Corporate Data/Share Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Directors and Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Subsidiaries and Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Nomura Securities Co., Ltd.
Domestic Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
1. This document is produced by Nomura Holdings, Inc. (“Nomura”). Copyright 2003 Nomura
Holdings, Inc. All rights reserved.
2. Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any
security, commodity or other instrument, including securities issued by Nomura or any affiliate
thereof. Offers to sell, sales, solicitations to buy, or purchases of any securities issued by Nomura
or any affiliate thereof may only be made or entered into pursuant to appropriate offering materials
or a prospectus prepared and distributed according to the laws, regulations, rules and market
practices of the jurisdictions in which such offers or sales may be made.
3. No part of this document shall be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the
prior written permission of Nomura.
4. The information and opinions contained in this document have been obtained from sources
believed to be reliable, but no representations or warranty, express or implied, are made that such
information is accurate or complete and no responsibility or liability can be accepted by Nomura for
errors or omissions or for any losses arising from the use of this information.
5. This document contains statements that may constitute, and from time to time our management
may make “forward-looking statements” within the meaning of the safe harbor provisions of The
Private Securities Litigation Reform Act of 1995. Any such statements must be read in the context
of the offering materials pursuant to which any securities may be offered or sold in the United
States. These forward-looking statements are not historical facts but instead represent only our
belief regarding future events, many of which, by their nature, are inherently uncertain and outside
our control. Important factors that could cause actual results to differ from those in specific
forward-looking statements include, without limitation, economic and market conditions, political
events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates,
currency exchange rates, security valuations, competitive conditions and size, and the number and
timing of transactions.
CONSOLIDATED FINANCIAL HIGHLIGHTS (U.S. GAAP)
Nomura Holdings, Inc.
Income statement data:
Revenue
Interest expense
Net revenue
Non-interest expenses
Income before income taxes and
cumulative effect of accounting change
Income tax expense
Income before cumulative effect of accounting change
Cumulative effect of accounting change
2001
( )
April 1, 2000~
March 31, 2001
Millions of yen
(Except per share data)
2002
( )
April 1, 2001~
March 31, 2002
2003
( )
April 1, 2002~
March 31, 2003
Millions of
U.S. dollars
(Except per share data)
2003 (4)
( )
April 1, 2002~
March 31, 2003
¥ 1,469,298
¥ 1,825,399
¥ 840,919
$ 7,122
553,643
915,655
504,048
1,321,351
274,645
566,274
759,483
1,148,379
518,865
156,172
98,762
57,410
–
172,972
4,926
168,046
47,409
37,295
10,114
–
109,799
2,326
4,796
4,394
402
316
86
930
Net income
¥ 57,410
¥ 168,046
¥ 119,913
$ 1,016
Balance sheet data (period end):
Total assets
Shareholders’ equity
Common stock
Number of shares issued
¥ 17,146,024
¥ 17,758,273
¥ 21,169,446
$ 179,296
1,436,428
182,797
1,604,929
182,800
1,642,328
182,800
13,910
1,548
1,962,977,841
1,965,919,860
1,965,919,860
Return on equity (ROE) (1)
4.0%
11.1%
7.4%
Per share data:
Income before cumulative effect of
accounting change—basic (2)
Net income—basic (2)
Income before cumulative effect of
accounting change—diluted (2)
Net income—diluted (2)
Shareholders’ equity (3)
Cash dividends (3)
(Yen)
(U.S. dollars)
¥ 29.25
¥ 85.57
¥
29.25
85.57
29.25
29.25
731.77
17.50
85.32
85.32
816.48
15.00
5.17
61.26
5.17
61.26
846.40
15.00
$ 0.04
0.52
0.04
0.52
7.17
0.13
Notes:
(1) Calculated by dividing net income by average shareholders’ equity.
(2) Calculated using the weighted average number of shares outstanding for the year (excluding treasury shares held by us).
(3) Calculated using the number of shares outstanding (excluding treasury shares held by us) at year end.
(4) Calculated using the yen-dollar exchange rate of U.S. $1.00=¥118.07, the noon buying rate in New York City for cable transfers in foreign currencies as certified for custom purposes by
the Federal Reserve Bank of New York on March 31, 2003.
Consolidated Financial Highlights (U.S. GAAP)
1
BUSINESS PORTFOLIO
Our business portfolio consists of Domestic Retail, Global Wholesale,
and Asset Management businesses.
•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, leveraging Nomura Group’s global
network, to institutional and corporate customers, and customers
in public sectors. It consists of four business lines: Fixed Income,
Equity, Investment Banking, and Merchant Banking.
•Asset Management
Asset Management offers a range of comprehensive services.
These include the management of investment 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
Asset Management
2.5%
Domestic
Retail
27.5%
Global Wholesale
70.1%
Year ended
March 31, 2003
Asset Management
4.6%
Domestic Retail
9.2%
Global Wholesale
86.2%
Year ended
March 31, 2002
2
Business Portfolio
MANAGEMENT POLICY OF
NOMURA GROUP
To Our Shareholders and Customers . . . . . 4
Top Management Interview . . . . . . . . . . . . . 8
Messages from Division Heads . . . . . . . . . . 12
Domestic Retail
Global Wholesale
Asset Management
Nomura Group . . . . . . . . . . . . . . . . . . . . . . . . 18
Management Vision
Operational Management
Contribution to Economic Revival in Japan
Corporate Governance Structure
Business Execution Structure
Management Policy of Nomura Group
3
To Our Shareholders and Customers
Nobuyuki Koga
President & Chief Executive Officer
Nomura Holdings, Inc.
4
To Our Shareholders and Customers
We at Nomura Group greatly
appreciate the support of our
shareholders and customers. My
name is Nobuyuki Koga, President
& Chief Executive Officer of
Nomura Holdings, Inc. (NHI) and
Nomura Securities Co., Ltd. as of
April 2003. In this annual report of
Nomura Group for the fiscal year
ended March 31, 2003, I am
pleased to present the Group’s
business results and future
management strategy.
Business Environment and Results
We faced a reasonably tough business
net revenue of ¥566.3 billion, income before
income taxes of ¥47.4 billion, and net income
environment during the fiscal year under review,
of ¥119.9 billion. Return on equity (“ROE”)
brought about by serious deflation and continued
was 7.4%.
non-performing loan problems as well as
increasing uncertainty in the global environment.
From a governmental policy aspect, we saw
Group Vision
Nomura Group’s vision is to enhance its position
important movements toward Japanese eco-
as a globally competitive Japanese financial
nomic revival, such as the announcement late
services group.
last year of the policy program aimed at promo-
In order to realize this vision, we focus on
ting concurrently the disposal of non-performing
three areas: strengthening action to expand the
loans and the revitalization of industry.
securities market in Japan, enhancing business
Furthermore, in the corporate sector, manage-
origination in Japan, and pursuing collective
ment reforms directed at increasing shareholder
strength through greater cooperation among our
value have been gathering rapid momentum,
divisions. As a management target to indicate
evidenced by fundamental restructuring,
increase of shareholder value, NHI intends to
progress in unwinding cross-shareholdings
maintain an average consolidated ROE of
and increased levels of share buybacks and
10-15% over the medium to long term.
M&A activity. In the household sector, though
preference for risk-free assets has been gene-
rally strong, it is becoming increasingly clear
Strengthening Management Structure
With the approval of the 99th Ordinary General
that individual investors are beginning to shift
Meeting of Shareholders, Nomura Group has
their assets into higher risk-return products
adopted the Committee System. The reasons
while remaining alert to risk-return profiles.
are as follows: First, to increase management
This is apparent from the significant increase of
transparency. The move will reinforce our mana-
investment in foreign currency-denominated
gement oversight functions as well as further
bonds, for example.
enhance transparency. Second, to create more
In this environment, we continued to provide
flexible Group operations. Under the Committee
various solutions through capital markets and
System, management oversight functions will be
investment opportunities to our customers. As
separated from business operation functions
a result, for this fiscal year, under accounting
and many of the powers to execute business
principles generally accepted in the United
activities will be delegated to executive officers.
States (“U.S. GAAP”), NHI posted consolidated
As a result, NHI will be able to make quicker
Management Policy of Nomura Group
5
management decisions on a consolidated basis.
Nomura Value Added (NVA), calculated by
Third, to enhance the effectiveness of internal
subtracting the cost of capital from income after
control systems. NHI will establish more effec-
tax, and other measurements.
tive internal control systems and further
In business execution, the COO is responsi-
strengthen their functions.
ble for all three divisions and aims to pursue
business that extends beyond these divisions.
Business Execution Structure
NHI and its domestic and overseas subsidiaries,
The Co-COO will advance integrated Nomura
Group management. By taking this approach,
including Nomura Securities Co., Ltd., conduct
we will be able to enhance collaboration among
comprehensive business management as
divisions, break the legal entity mold and
Nomura Group under a unified strategy. In
pursue efforts to enhance Nomura Group’s
formulating our business strategy, we focus on
collective strength.
global coordination of our businesses rather
than individual legal entities. Specifically, mana-
gement resources for business execution are
Strategy
Our strategy is to contribute to the revival of
allocated efficiently and flexibly, based on close
the Japanese economy by acting as a bridge
examination of the business plans of our three
between companies that are promoting busi-
divisions by NHI’s Executive Management
ness reorganization and individual financial
Board. In addition, an advisory board has been
assets that are over-concentrated in cash
established as a consultative body to the
and deposits.
Executive Management Board composed of top
Domestic Retail’s goal is to shift individual
managers of leading global Japanese companies
financial assets from cash and deposits to the
in order to take advantage of diverse perspectives
capital markets and to expand our customer
in the drafting of business strategy.
base. In order to achieve this goal, we are
Our business portfolio comprises Domestic
aiming to create a service delivery structure
Retail, Global Wholesale and Asset Management
that is focused on core values, or the values
divisions. Each division head has the responsi-
that customers regard as the most important.
bility to conduct business within allocated
Moreover, with respect to broadening the
management resources. NHI monitors the
customer base, we have combined face-to-face
performance of each business closely, using
services with IT services. This has allowed the
6
To Our Shareholders and Customers
division to increase the time spent on face-to-
creating added value in the medium to long term
face services, strengthening our consulting
and improve investment performance by stream-
capabilities. Meanwhile, we are working to
lining the investment management process and
diversify our product mix through promoting
strengthening research functions. Moreover,
product development that reflects customers’
while seeking to expand our sales channels and
core values. Moreover, we continue to provide
diversify products, we are working to increase
investor education as a means of broadening
assets under management and expand our rev-
participation in the securities markets, including
enue base. In the defined contribution pension
lectures on securities at universities.
plan business, we are building on our customer
In Global Wholesale, our goal is to establish
base in the corporate employees’ investment
a strong presence in global business focused on
plan market and capitalizing on the expertise
Japan. For this purpose, our strategy is to first
we have built up in our investment trust and
muster collective strength through greater
investment advisory businesses.
cooperation between Domestic Retail and
Global Wholesale. In other words, we aim to
Operating under the strengthened management
capture attainable business by utilizing both our
system, Nomura Group is totally committed to
global underwriting network and strong sales
increasing shareholder value over the medium
network in Japan. Second, our strategy is to
to long term while contributing to the revitaliza-
promote Japan-focused globalization. This
tion of Japan’s companies and economy by
involves stepping up our activities in sectors
staunchly fulfilling its role in the expansion of
where future growth is forecast, such as
Japan’s capital markets. As always, we look
domestic and overseas M&A deals accompany-
forward to your continued support.
ing industry reorganization, corporate revival
business activities, financing operations to
enhance the liquidity of assets.
In Asset Management, we are aiming to
enhance the investment management business
and strengthen defined contribution pension
plan business. In order to achieve this, we
aim to establish a structure that is capable of
Nobuyuki Koga
President & Chief Executive Officer
July 2003
Management Policy of Nomura Group
7
Top Management Interview
Nomura Group introduced a new business execution structure to promote collective strengths as
a group. Nobuyuki Koga, President & Chief Executive Officer, describes the form and perspective
of management; Hiroshi Toda, Deputy President & Chief Operating Officer, and Kazutoshi Inano,
Deputy President & Co-Chief Operating Officer, describe their roles and future plans.
Hiroshi Toda
Deputy President & COO
Nobuyuki Koga
President & CEO
Kazutoshi Inano
Deputy President & Co-COO
MAKING JAPAN STRONG WILL ALSO MAKE
NOMURA STRONG, WHILE STRENGTHENING
NOMURA WILL ALSO STRENGTHEN JAPAN AS A WHOLE.
I WANT TO REALIZE THIS VIRTUOUS CYCLE.
NOBUYUKI KOGA, PRESIDENT
Could you explain the form of
management that you are
aiming for?
to customers and the markets and combining
their accumulated domestic and overseas
experience and expertise to provide customers
with high value-added solutions through the
capital markets.
The form of management that we are aiming
for at Nomura Group does not stop with the
partial streamlining of structures that further
enhance competitiveness and added value in
individual divisions. It is linked to the optimiza-
We define the securities business and closely
tion of Nomura Group as a whole, and strongly
related businesses as our core businesses and
promotes our collective strength, which is our
conduct integrated management of NHI sub-
greatest asset.
sidiaries as Nomura Group. In other words, we
We have been particularly conscious of this
aim to run Nomura Group under an integrated
in the establishment of the current management
strategy as a single corporate entity.
structure. Deputy President & COO Hiroshi Toda
When executing business, we focus not on
is responsible for business execution in all three
each legal entity but on the global partnership
divisions. At the same time as pursuing
between the three divisions of Domestic Retail,
improvements in the expertise of each division,
Global Wholesale and Asset Management.
Mr. Toda will make the most of the collective
These three divisions are seeking to establish
strength of Nomura Group in the Japanese and
a strong competitiveness by listening carefully
global markets by strengthening the partnership
8
Top Management Interview
there are ample business opportunities. We need
to build solid foundations by bringing together
the accumulated domestic and overseas experi-
ence and expertise of Nomura Group in these
business opportunities. I believe that by
responding to the securities trading needs of
Japanese companies that are undergoing glob-
alization and individuals, we will automatically
come to rank with our rivals in Europe and the
United States in competition on the global stage.
“JAPAN’S REVIVAL” IS A COMMON
OBJECTIVE FOR ALL OUR BUSINESS LINES,
AND WE TACKLE THAT
BY BEING UNITED AS A COMPANY.
HIROSHI TODA, DEPUTY PRESIDENT
Could you explain your role
as COO?
Nobuyuki Koga
President & CEO
between each of the upgraded divisions.
Moreover, streamlining all aspects of infra-
structure is necessary to promote integration as
a Group. This includes fostering a unified under-
lying corporate culture and philosophy. As Deputy
President & Co-COO, Kazutoshi Inano is in
charge of creating the structure and environment
to enable Nomura Group to capitalize fully on the
benefits of being a single virtual company, both in
name and reality, by advancing the concept of
My role as COO is to formulate and execute
integrated Nomura Group management.
more specific management strategies based on
Could you explain your
management perspective?
the management vision spelled out by our
President & CEO Nobuyuki Koga. I provide lead-
ership to ensure that the business strategies of
As a result of the developments in our manage-
Domestic Retail, Global Wholesale and Asset
ment structure under former President Junichi
Management are executed seamlessly as an
Ujiie (now Chairman), Nomura Group became
integrated group. In other words, my role is to
a holding company and was listed on the New
ensure strategy execution leads to the achieve-
York Stock Exchange. During this period, I was
ment of objectives for the Group overall with no
responsible for the overall management of
wasted efforts in individual divisions.
Nomura Group as Deputy President. I have
I firmly believe that “Japan’s revival” is a
long believed that national strength has a signifi-
common objective for all our business lines, and
cant impact on the international competitiveness
we will be united as a company over the next
of financial institutions. National strength is
few years by this clear mega-trend.
manifested as strength in the financial industry.
My view is that Nomura Group best capital-
Making Japan strong will also make Nomura
izes on its strengths when its objectives coin-
strong, while strengthening Nomura will also
cide with the social context. For example, when
strengthen Japan as a whole. My priority in
large volumes of government bonds were
corporate management is to bring about this
issued in the past, corporate profit and the
virtuous cycle.
social context of expanding the capital markets
The current economic situation is very harsh,
came together. Nomura Group appreciated the
but we are benefiting from this environment to
significant future potential in the securities
achieve a leap forward. In Japan, which has
industry and the potential for its own activities.
been ridiculed as “incapable of change,” the
The Japanese economy of today is con-
recognition that it “must change” is now stronger
fronting a number of crises that involve a com-
than ever before. While concrete models of how
plex intertwining of factors. The activation of
companies revitalize and the experience of
direct finance—the shift of individual financial
success for investors are yet to be established,
assets from cash and savings deposits into
Management Policy of Nomura Group
9
Hiroshi Toda
Deputy President & COO
This includes face-to-face services at our
128-branch office network and non face-to-face
services such as Nomura Home Trade, which
uses the Internet, and the Nomura Call Center,
as well as the corporate channel that includes
the ESOP market. By providing attractive prod-
ucts and high value-added information through
these customer interfaces, I believe that we can
contribute to an expansion in the circulation of
funds between individuals and companies
based on precise risk management.
With regard to the second point, for example,
capital markets—that Nomura Group is promo-
in the area of corporate revival, Nomura Group
ting is expected to be one of the breakthroughs
has actively developed a principal finance busi-
in resolving these crises. It cannot be argued
ness overseas since 1995. This business is
that the capital markets are yet fully playing the
based on high creditworthiness and sophisticat-
role expected of them. However, the degree of
ed financial technology. In addition to investing
linkage between our business objectives and
in the privatization of British Rail and UK military
the social context has probably never been
housing as well as a national pub-restaurant
closer than it is now.
chain in Britain, we have contributed to increas-
I endeavor to ensure that Nomura Group
ing corporate value by actively promoting
as a whole will systematically sketch out
improvements in management at the companies
a “Japanese revival strategy” and turn it into
we have invested in. Backed by this track
reality by promoting more measures to mobilize
record of achievement, we established Nomura
the potential strengths we have in this area.
Principal Finance Co., Ltd. in 2000, and are
In what areas do you think that
Nomura Group can contribute to
“Japan’s revival?”
actively developing the principal finance busi-
ness in Japan. I hope that we can create a surge
of Japanese financial revival through corporate
revitalization using our extensive array of expert
I think we can speak largely of two areas in
capabilities that include balance sheet improve-
which we should contribute. One of these is to
ment, business risk management, management
increase the movement of individual financial
consultation, and arrangement of business
assets, which are over-concentrated in cash and
tie-ups in addition to the provision of risk capital.
deposits, into securities products through appro-
priate consulting. The second is in providing
solid support, including the provision of risk cap-
ital, to companies that are making sustained and
sincere efforts to become “winning companies.”
Nomura Group has built up the domestic and
overseas infrastructure, experience, expertise,
information, and level of specialization that
enable it to unite in working on these two areas.
With respect to the first point, which is shifting
individual financial assets into securities prod-
I STRIVE TO BUILD A STRUCTURE AND
ENVIRONMENT THAT WILL MAKE
NOMURA GROUP A HIGHLY INTEGRATED
CORPORATE BODY.
KAZUTOSHI INANO, DEPUTY PRESIDENT
Could you explain your role as
Co-COO?
ucts, we are playing a role in expanding our
Our President & CEO Mr. Koga explained that
customer base by providing services that pre-
the role required of the Co-COO is to create the
cisely match the values of individual customers,
environment, including the streamlining of infra-
which will lead to an increase in funds entering
structure, to enable Nomura Group to function
the capital markets. We have already built
as a single virtual company based on an inte-
a powerful domestic interface with customers.
grated strategy. Each company that makes up
10
Top Management Interview
Kazutoshi Inano
Deputy President & Co-COO
external demonstration aspect.
Firstly, with regards to internal reform, one
example I can give is the promotion of shared
values with the aim of “activating communica-
tion.” This involves broader and deeper
communication rather than a type of business
improvement, such as business meetings, that
achieves understanding. We believe that as the
organization becomes bigger with different
structures and operations, we are finding ways
that make it possible to overcome the factors
that impede communication. We are hoping
Nomura Group has its own distinctive individu-
to further strengthen the promotion of this
ality, expertise and competitive strength as
project in the future with the aim of activating
a single legal entity. Nomura Asset Management
communication in Nomura Group.
Co., Ltd., where I serve as President, strives
I suppose a concrete example of our external
daily to increase its added value as the largest
demonstration activities is our sponsored
Japanese investment trust and investment advi-
lectures. Currently, we conduct lectures on the
sory company in terms of the balance of assets
securities markets at more than 110 universities
under management. In itself, the constant effort
around Japan, but we did not initially imagine
by each company in Nomura Group to further
that we would go this far. Many of the compa-
improve the foundation that forms its strength is
ny’s directors and employees are involved in the
what every company does as a matter of course.
lectures, and while it could impede their regular
However, a simple appeal for seamless connec-
business, they have consistently overcome this
tions beyond organizations and companies is
problem. A cumulative total of more than 20,000
inadequate to respond precisely to the needs
students have attended the lectures. I believe
of an era that is becoming increasingly complex.
the important thing is increasing the number of
In particular, Nomura Group has taken on the
students with experience and interest in the cap-
cause of “Japan’s revival” as its biggest ever
ital and securities markets, even if only slightly,
challenge. This will require us to provide the
and contributing to developing a healthy capital-
highest level of added value through the pursuit
ist economy in Japan in the future, regardless of
of even greater expertise by each division and
whether these people will become our customers
the integration of this expertise under precise
or not. While there is some discussion about
management. I will be implementing concrete
whether it is appropriate for a single company to
measures from a range of perspectives that
be engaged in this type of activity, it is firstly
include fostering a unified corporate culture
important to “have a go” in the context of the
and the establishment of a group management
discussion. In this sense, we have made the
system to create the Nomura Group virtual
assessment that it has been ultimately worth-
company as a highly integrated corporate body.
while. Moreover, the universities make effective
Could you tell us about the B&D
project for which you serve as
Chairman?
use of Nomura Group’s expertise and skills in
the associated industry-academia ties that have
resulted from the sponsored lectures, which
are expected to contribute to closing the gap
The B&D (Basic & Dynamic) project (see Note)
between scholarship and practice.
aims to improve the public perception of
Nomura Group and the securities market. It is
the company’s central project, and work on the
project has been going on for about three years.
It comprises an internal reform aspect, which
includes a psychological dimension, and an
Note: The B&D project’s aim is to make Nomura Group a financial
services company that has the trust of its customers. It com-
bines pride in the “Basic,” which forms the essence of the
securities markets that underpin the circulation of funds for
economic growth, with “Dynamic” strength that encourages the
creation of new values in anticipation of change.
Management Policy of Nomura Group
11
Messages from Division Heads
Domestic Retail
Under our “Core Value Formation” strategy,
we aim to build a structure resting on a solid
customer and revenue base.
Domestic Retail aims to create a solid customer base by
increasing the range of individual investors in the Japanese
market, and to create a revenue base not easily affected by
fluctuations in a particular market.
The Japanese economy and stock market have
experienced prolonged slumps. Although continuing difficult
conditions are not generally favorable to domestic retail investors, it is notable that
investment in securities products in Japan still accounts for just 10% of the approx-
imately ¥1,400 trillion of individual financial assets, the lowest level of any industri-
alized nation. This low ratio gives the securities industry extremely high growth
potential. In fact, strong activity in foreign currency bond trading and an increase in
the number of stock-holding accounts held indicate a shift of funds toward capital
markets. In the years ahead, these trends should receive support from such devel-
opments as securities market reform promotion programs and the expansion of
401K plans accompanying overhauls of corporate pension systems, as well as
progress in creating a single, unified tax for both investment and earned income.
We have therefore segmented our market by type of customer and built
a structure capable of delivering services and products focused on “core value.”
This is our basic strategy this fiscal year, known as “Core Value Formation.”
By pursuing this strategy, we are creating a solid customer base, and a revenue
base less susceptible to fluctuations in a particular market.
12 Messages from Division Heads
We are also conducting educational courses on securities for individual
investors from a long-term perspective. We plan to hold courses at over 110
universities this fiscal year. Our educational activities will increase the number of
people with an understanding of securities markets, so are ultimately designed to
help increase the range of individual investors. In the years ahead, we would like to
expand our educational activities to include not just universities but also regional
community centers, providing life education courses throughout various regions
in Japan.
Through these activities, individual investors will become more sophisticated
and able to evaluate companies critically, in turn increasing investment in compa-
nies that create more added value. The operation of this market principle will create
a virtuous cycle linked to industrial and economic revival. In Domestic Retail, we
are helping to achieve such a cycle through the cultivation of individual investors,
who hold the key to this revival.
Takashi Yanagiya
Senior Managing Director
Head of Domestic Retail
Business Results
In Domestic Retail, we provide investment consultation services, leveraging our
wide range of products, mainly to individual customers and companies in
Japan from a medium-and long-term perspective.
Net revenue in the fiscal year ended March 31, 2003 was ¥249.3 billion,
up 9% from the previous year. Income before income taxes was ¥35.7 billion,
up 74%.
Japan’s stock market continued to suffer during the year, with the Nikkei
Stock Average falling 28%. However, by diversifying our services through
a wide range of products such as foreign bonds and variable-annuity pension
insurance, we were able to minimize the effects of these market fluctuations,
achieving increases in revenues and profits.
Regarding our customer base, client assets decreased with the major fall in
equity prices as a result of the stock market decline. However, due to sales of
foreign bonds and government bonds for individuals, and an increase in stocks
held by individuals, the decline in retail customer assets was just 6%. In this
environment, the breadth of stock investments is steadily increasing, with the
number of stock-holding accounts in Domestic Retail exceeding 1,300,000.
Domestic Retail
(Billions of yen)
300
250
200
150
100
50
0
01.3
02.3
03.3
Net Revenue
Income before Income Taxes
Management Policy of Nomura Group
13
Global Wholesale
We are capitalizing upon the movements
toward industrial revival and the revitalization
of the Japanese economy in order to improve
our revenues.
In the course of the emergence and subsequent collapse of
Japan’s bubble economy, large amounts of assets were
allocated to unprofitable businesses. These assets have
remained fixed until the present day, preventing them from
being used efficiently. However, amid the prolonged reces-
sion of recent years, a full-fledged movement toward industrial revival and the
revitalization of the Japanese economy has at last emerged. Many Japanese com-
panies are actively working to undo the inefficient misallocation of resources that
took place during the bubble years. Similarly, developments such as the establish-
ment of the Industrial Revitalization Corporation and increases in banks’ capital
adequacy ratios, such as the government’s additional investment in Resona Bank,
make it possible to accelerate the reform of the whole Japanese economy.
In this situation, Global Wholesale is actively working on providing borderless,
solution-based financial services through the capital markets to institutional and
corporate customers, and customers in the public sector in Japan and around the
world. In the years ahead, industry restructuring through M&A should be a bigger
growth area than ever before, along with areas such as corporate revival business,
asset liquidation, and finance aimed at creating “winning companies.” Global
Wholesale is adapting to the trend toward industrial revival and the revival of the
Japanese economy by working on four business lines: Fixed Income, Equity,
14 Messages from Division Heads
Investment Banking, and Merchant Banking. Our aim is to link these areas to
improvements in our profits and profile, contributing to the revitalization of
corporations and industry.
Global Wholesale’s goal is to play the leading role in establishing Nomura
Group’s position as a globally competitive Japanese financial services group. To
meet this goal, Global Wholesale will maximize the collective strength of Domestic
Retail and Global Wholesale to promote Japan-based globalization. With the revival
of the Japanese economy continuing to gain momentum, the business areas we
are focusing on can be of no greater benefit to society than at present. The first
step is to consolidate our position in Japan. Step two is to establish a solid
presence in Japan-crossborder business, and step three is to become a genuine
global player.
Global Wholesale is always looking to the future, contributing to Japan’s revival
through its contribution to customers.
Business Results
In Global Wholesale, we provide sales and trading services and investment
banking services to mainly global institutional customers. In our sales and
trading activities, we facilitate customer transactions and trade on our own
account by market-making and trading fixed income and equity securities.
We also provide a broad range of investment banking services, including
underwriting and financial advisory services. In addition, we conduct proprietary
transactions such as arbitrage and principal finance transactions.
In Global Wholesale, net revenue was ¥298.5 billion and income before
income taxes was ¥91.0 billion, representing decreases of 32% and 52%,
respectively, compared with the previous fiscal year when there were large
improvements in profits in Merchant Banking.
Net revenues in Equity and Investment Banking were down 34% and 22%
respectively, reflecting demanding conditions in the stock market. However,
net revenue in Fixed Income was up 70%, the result of our quick response to
increased demand for investment in foreign bonds, mainly from individual
investors. This increase helped to bolster Global Wholesale’s overall revenues.
In Merchant Banking, although there was no major exit transaction in the term
under review, Japanese investments increased steadily.
Takumi Shibata
Senior Managing Director
Head of Global Wholesale
Global Wholesale
(Billions of yen)
500
400
300
200
100
0
01.3
02.3
03.3
Net Revenue
Income before Income Taxes
Management Policy of Nomura Group
15
Asset Management
We enhance investment management
business and strengthen defined contribution
pension plan business to meet diverse asset
management needs.
As Japan’s socioeconomic system matures and the popula-
tion continues to age as a result of an accelerated decrease
in the birth rate, investors ranging from households to institu-
tions are experiencing a greater need for appropriate and
efficient asset management. While individual financial assets
in Japan have continued to grow since the war, the rate of growth is now
approaching zero, further underscoring the need for asset management. In this
situation, the prospects for Asset Management are good over the medium to long
term, despite discouraging factors such as prolonged ultra-low interest rates and
sluggishness in world stock markets.
Asset Management is working on enhancing investment management business
and strengthening defined contribution pension plan business to respond precisely
to these trends, and meet increasingly diverse asset management needs through
its investment trust and investment advisory businesses.
Centered on Nomura Asset Management Co., Ltd. (NAM), our business strategy
is to identify and strengthen sources of added value over the medium to long term.
The tasks of our asset management business are to raise performance, improve
overall added value and expand distribution channels. Raising performance
involves comprehensive implementation of our “Asset Management Capability
Enhancement Project,” in which NAM was engaged in the fiscal year under review,
to create an organization that can steadily increase asset management added value
over the medium to long term and then carry out the various measures required,
including the consolidation of investment management structures and strengthen-
ing of corporate research. In improving overall added value, Nomura Group seeks
to go beyond performance, such as by augmenting the quality and volume of
disclosure. In expanding distribution channels, we plan and implement strategies
on a sales channel basis, such as at securities companies and banks, and expand
cross-sales between Domestic and Global Wholesale through greater cooperation.
16 Messages from Division Heads
Our defined contribution pension plan business uses the know-how we have
developed in the investment trust and investment advisory businesses, along with
our strong presence in the Employee Stock Ownership Plan (ESOP) market. We
offer a wide range of integrated services, ranging from support for plan implemen-
tation to supplying products. By providing pension system solutions to companies,
our defined contribution pension plan business increases corporate value, and
simultaneously creates opportunities for increasing the number of direct participants
in the financial markets. It is therefore an entry point for cultivating individual
investors. Based on this awareness, we are planning to strengthen our defined
contribution pension plan business by increasing its pension administration share
and product lineup, attracting new investment and constantly revising its business
structure and services.
We are actively working on expanding our asset management business with
a view to playing an important role in the revitalization of Japan’s economy.
Business Results
In Asset Management, conducted principally through NAM, we select and
manage investment trusts which Nomura Securities Co., Ltd. and other financial
institutions distribute. We also provide investment advisory services for pension
funds and other institutional customers. In defined contribution pension plan
business, we provide support for plan implementation, product supply and
investment education.
Net revenue decreased by 21% to ¥37.1 billion for the fiscal year ended
March 31, 2003 and income before income taxes decreased by 69% to
¥3.2 billion.
The main cause of these declines was a major decrease in investment trust
fees due to an increase in the number of account holders who withdrew from
our Long-Term Bond Investment Trusts. NAM’s assets under management were
approximately ¥14 trillion at the end of the fiscal year ended March 31, 2003,
Kazutoshi Inano
Deputy President & Co-COO
Head of Asset Management
Asset Management
(Billions of yen)
70
60
50
40
30
20
10
0
down ¥4 trillion from the previous year. Due to increases in the outstanding
01.3
02.3
03.3
balance of exchange traded funds (ETFs) and increased purchases of foreign
stock investment trusts by financial institutions, the balance of stock investment
trusts was approximately ¥3 trillion, despite the steep fall in the stock market.
This figure was about the same as the figure at the end of the previous fiscal year.
However, owing mainly to a reduction caused by account holders withdrawing
from our Long-Term Bond Investment Trusts, the balance of bond investment
trust assets decreased by about ¥3 trillion. Further, the balance of assets under
investment advisory contracts decreased by ¥1 trillion to about ¥4 trillion.
Net Revenue
Income before Income Taxes
Management Policy of Nomura Group
17
Nomura Group
Nomura Group is a financial services group comprising Nomura Holdings, Inc. (NHI), a holding
company, and its domestic and overseas subsidiaries. We conduct integrated business mana-
gement under a unified group strategy, providing customers with high value-added financial
services and striving to consistently grow shareholder value by generating sustained revenue
from these services.
MANAGEMENT VISION
offer services that range from advice, asset trading and
Nomura Group’s vision is to entrench its status as a “globally
financing through to the investment of our own capital to
competitive Japanese financial services group.” In a Japanese
support this restructuring. Domestic Retail, with its solid
securities market expected to grow rapidly, we will seek to
customer base, Global Wholesale, which has a high level of
realize our vision and grow shareholder value by strengthen-
expertise, and Asset Management, whose role is to offer
ing our base in domestic securities businesses and by
attractive products to investors, are working together to
consolidating Nomura Group’s comprehensive capabilities
create a flow of capital into securities markets. This will
domestically and overseas.
contribute to the revitalization of Japan’s economy, which
As a management target to indicate an increase in share-
has been in prolonged recession.
holder value, we intend to maintain an average consolidated
ROE of 10 to 15% over the medium to long term.
CORPORATE GOVERNANCE STRUCTURE
OPERATIONAL MANAGEMENT
We promote management with an emphasis on growing
shareholder value. In order to achieve this, we have been
In executing our business strategy, we focus on business
strengthening our corporate governance in the following ways.
fields, which are linked globally, rather than individual legal
entities. Nomura Group’s business divisions comprise
1. Appointment of outside directors
Domestic Retail, Global Wholesale and Asset Management.
2. Establishment of the Internal Controls Committee, which
Global Wholesale consists of four businesses: Fixed Income,
includes an outside director
Equity, Investment Banking and Merchant Banking.
3. Establishment of the Compensation Committee, with
NHI allocates management resources to its business
a majority of members being outside directors
divisions after examining business plans and their budgets.
4. Establishment of the Advisory Board
Each business executes its area of operations within the
5. Abolition of retirement bonuses for directors
management resources allocated, and NHI monitors
6. Granting of stock options to directors and certain
results regularly.
employees
Nomura Group will transfer the operational authority
deemed appropriate to each of its respective business. We
Following the passing of a resolution put to the 99th
are establishing a competitive business base by enhancing
Ordinary General Meeting of Shareholders, we adopted
the professional skills of each of these businesses, while
the Committee System in order to further strengthen our
strengthening linkages among them and fully exploiting
corporate governance.
Nomura Group’s comprehensive capabilities.
CONTRIBUTION TO ECONOMIC REVIVAL IN JAPAN
Under the Committee System, a company shall maintain
Industrial restructuring in Japan, symbolized by the
three committees, namely, the Nomination Committee,
inauguration of the Industrial Revitalization Corporation,
Audit Committee and Compensation Committee, on each
has finally moved into top gear. We are united in striving to
of which a majority shall be outside directors, and also
– Explanation of the Committee System
18
Nomura Group
have executive officers to execute business activities.
information disclosure.
(The establishment of an audit committee entails the
The adoption of the Committee System conforms to
abolition of the board of statutory auditors.) Directors shall
the management reorganization as noted previously.
supervise management through performing their statutory
The Nomination Committee, Audit Committee and
functions, including those of the three committees, and
Compensation Committee all have a majority of outside
executive officers shall execute business activities under
directors aimed at strengthening management oversight
authority delegated by the board of directors. In addition
and further improving transparency.
to embodying the separation between business execution
and management oversight, the three committees shall
2. To separate management and oversight functions
have powers concerning determination of board candi-
Under the Committee System, management oversight
dates, audits and determination of compensation of direc-
functions are separated from business operation func-
tors and executive officers and, as a result, management
tions, and many of the powers to execute business activi-
oversight by directors will be strengthened.
ties are delegated to executive officers. As a result of the
new structure, we are able to make quicker management
We adopted the Committee System for the following
decisions on a consolidated basis.
three purposes.
In addition, the Company’s directors and employees
serve as outside directors of many of the subsidiaries to
– Objectives of the Adoption of Committee System
ensure strong and effective oversight of their management.
1. To increase management transparency
Nomura Group adopted a holding company structure on
3. To enhance the effectiveness of internal control
October 1, 2001 and has since taken a series of measures
systems
to ensure transparency of management practices.
Following the adoption of the Committee System, the
Furthermore, NHI was listed on the New York Stock
Company has been establishing more effective internal
Exchange in December 2001, requiring enhanced
control systems by reorganizing the audit functions of the
Committee System
Statutory Auditor System (Former System)
Shareholders’
Meeting
Nomination of Director
Candidates
Election /
Dismissal
Shareholders’
Meeting
Election /
Dismissal
Election /
Dismissal
Election/Dismissal of
Committee Members
Board of
Directors
Audit
Determination of
Compensation
Election /
Dismissal
Oversight
Audit
Representative
Executive
Officer(s)
Executive Officers
Nomination
Committee
Audit
Committee
Compensation
Committee
Determination of
Compensation
Board of
Directors
Management
Decision
Oversight of
Business
Execution
Audit
Board of Statutory
Auditors
Management Policy of Nomura Group
19
statutory auditors and internal audit functions. In addition
to audits through the internal control system provided
by the Audit Committee, directors well versed in the busi-
ness and organization of Nomura Group will supervise or
inspect the execution of business in order to supplement
the audit functions of the Audit Committee. As well as
establishing a designated office for supporting the work
of the Audit Committee, we are also providing the Audit
Committee with full disclosure of data supplied by the
Internal Audit Department.
BUSINESS EXECUTION STRUCTURE
We established the following three committees for the
purpose of smooth and effective decision-making by the
executive officers.
Board of Executive Officers
The board deliberates and decides upon business plans and
budgets, and allocation of management resources for the
whole Nomura Group.
Executive Management Board
The board deliberates and decides upon important manage-
ment matters concerning the Nomura Group. Also, it decides
management strategies and necessary basic policies to
execute the business plans and operations of each business
division. In addition, it monitors the performance of each
division.
Internal Controls Committee
Management Structure of Nomura Holdings, Inc. (NHI)
General Meeting
of Shareholders
The committee manages Nomura Group’s internal control
systems and deliberates upon the appropriateness of each
Board of
Directors
Nomination
Committee
subsidiary’s activities.
In addition, the Advisory Board made up of top managers of
representative global Japanese companies was established.
The Advisory Board gives advice and makes recommenda-
tions to the Executive Management Board, allowing it to
take advantage of external perspectives in the drafting of
business strategy.
We solicit external perspectives to help raise management
transparency and promote efficient management from a multi-
faceted approach unimpeded by existing internal models.
20
Nomura Group
Audit Committee
Compensation
Committee
President
and CEO
Board of
Executive Officers
Executive
Management Board
Advisory Board
Internal Controls
Committee
DIVISIONAL STRATEGIES
Domestic Retail . . . . . . . . . . . . . . . . . . . . . . . 22
Global Wholesale . . . . . . . . . . . . . . . . . . . . . 26
Asset Management . . . . . . . . . . . . . . . . . . . . 30
Divisional Strategies
21
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 char-
acter, as well as market and economic conditions.
GOALS AND STRATEGY
• Goals
the customer. Our “Core Value Formation”
strategy is to build a structure capable of deli-
vering services focused on these core values.
Domestic Retail segments individual markets
on the basis of customers’ estimated financial
assets, and the target customer group for each
channel is clearly defined in the following ways
in order to make a structure that is the most
appropriate for each core value.
The Financial Consulting Section targets
wealthy investors who require high-quality
proposals, and it is developing a comprehensive
Our goals in Domestic Retail are to broaden
asset consultation business that includes
our customer base through the expansion of
investment consultation, safeguarding and
individual investors and to create a profit stru-
inheritance, thus working to increase the individ-
cture less susceptible to the fluctuations of
ual assets of our customers.
a particular market.
• Strategy
The Financial Advisor (FA) Section and the
Saving Advisor (SA) Section draw on their
strength in building permanent customer rela-
At the end of March 2003, 56% of individual
tionships while being regionally based and time-
financial assets in Japan were still held as cash
oriented. Business in this channel is expanding
and deposits. Domestic Retail is encouraging
in response to the need of senior citizens to
the shift of these assets into risk assets through
plan for the future and the accompanying
its “Core Value Formation” strategy.
demand for asset consultation. FA staff aspire
CORE VALUE FORMATION
to be highly specialized asset consultation advi-
sors who include equities among their areas of
expertise. They are working to develop the asset
Core value is what customers regard as most
consultation business among wealthy investors,
important and perceive to be worth paying for.
including affluent investors formerly targeted by
It is made up of extremely subjective elements
the Financial Consulting Section. SA staff aim to
such as customer expectations and satisfaction,
increase assets from a wider range of affluent
Japanese Individual
Financial Assets
Total: ¥1,378 trillion
Bonds
2%
Equity
6%
Investment Trusts
2%
Other 5%
Insurance &
Pensions
29%
Cash &
Deposits
56%
As of end of March 2003
Source: Bank of Japan,
Flow of Funds Accounts
and it varies depending on the characteristics of
investors, primarily through savings-type
Client Segmentation by
Assumed Personal Financial Assets
Wealthy Investors
Affluent Investors
Financial
Consulting
Section
Saving
Advisor
Section
Financial
Advisor
Section
Asset Builders
Customer Services &
Investment Advisory Section
products, such as bonds and investment trusts.
The Customer Services & Investment
Advisory Section integrates face-to-face servi-
ces, mainly in branches, and IT services to
respond to a broad range of customer groups
as a mainframe to expand the number of cus-
tomers. While providing low-cost operations to
asset builders through the use of IT services, we
are stepping up our face-to-face services for
affluent investors. We are also focusing on
expanding assets even more than in the past
through the development of seminars, invitations
22
Domestic Retail
to visit branch offices and telemarketing.
Nomura Fund Universe
• Core Value and
Product Supply Framework
Nomura Group is developing a structure capa-
ble of promptly delivering a diversity of products
focused on the core values of customers in
order to introduce funds to securities products.
It analyzes the core values of our customers,
and promptly provides the information to Global
Wholesale and Asset Management, which
supply products. This structure allows the
necessary products to be developed and
supplied in a timely manner. As a result, our
Cash Reserve
and Money
Market Funds
Income
Funds
Total Return
Funds
Lifestyle
Investments to
Each Asset
Domestic Bond
Global Bond
Domestic Equity
Global Equity
Currencies
revenue breakdown has also diversified,
precisely, Nomura Fund Universe is roughly
reflecting changes in customers’ core values.
categorized into cash reserve and money market
DIVERSIFIED PRODUCT SUPPLY
funds, income funds and total return funds,
which allows customers to select a product that
precisely meets their investment needs.
Revenue breakdown by product in Domestic
We began offering variable annuity insurance
Revenue Structure by
Product (approx.)
3
(%)
100
24
14
30
16
40
14
15
28
40
13
35
28
01.3
02.3
03.3
80
60
40
20
0
Variable Annuity Insurance
Retail shows a growing proportion of revenue
in October 2001, and as of March 31, 2003, the
Investment Trusts
(administration fees)
Investment Trusts
(distribution commission)
Equities
Bonds
coming from bonds, which has outstripped
outstanding balance of contracts was ¥166.6
revenue from equities. This is a result of the
billion. With growing concern about life-planning
growth in sales of foreign bonds, which bring
as a result of Japan’s declining birth rate and
together the needs of domestic investors who
aging population, and the introduction of
seek high returns despite exchange rate risks
defined contribution pension plans, the need to
and overseas bond issuers who are attracted
prepare for one’s own future is expected to
by the ample financial assets available in Japan.
increase in the future. We recommend variable
The number of stock-holding accounts has
annuity insurance as a product that can meet
increased by 270,000 from 1,030,000 to
1,300,000 over three years. In addition, the
Stock-Holding Accounts
number of ‘special accounts’ for stocks, which
(Thousands)
1,400
we began offering in October last year, has
Outstanding Value of Variable
Annuity Insurance Contracts
(Billions of yen)
200
grown to make up a little more than one third of
the stock-holding accounts, numbering about
470,000 accounts as of the end of May 2003.
Investment trusts are the most important
product for customers wishing to diversify their
assets, and also provide us with a means to
advance product diversification. We provide guid-
ance on high-quality funds to all investors through
the Nomura Fund Universe, which chooses high-
quality funds based on analysis from Nomura
1,300
1,200
1,100
1,000
0
150
100
50
0
00.3
01.3
02.3
03.3
Funds Research and Technologies Co., Ltd. More
02.3
03.3
Divisional Strategies
23
the individual needs of our customers, levera-
customers and their financial assets by region.
ging its three features of management, pension,
We opened the Nakano branch office and the
and insurance over the medium- to long-term
Chofu branch office in October and November
perspectives. Our approximately 6,000 qualified
2002, respectively, bringing the total number
sales representatives are looking to expand this
of domestic branch offices to 128 as of June
service by actively consulting with customers
30, 2003.
about these products.
NOMURA iT SUPPORT 21
• Expanding Customer Base
In expanding our customer base, Domestic
In an effort to enhance convenience for our
Retail considers the diverse needs of our cus-
customers, we integrated Nomura Home Trade,
tomers while analyzing market and economic
Nomura Telephone Answer, Nomura Stock
conditions. We offer customers a wide range of
Price Dial, and other services that use IT into
investment options, from low-risk/low-return
Nomura iT Support 21. We are also expanding
investments to high-risk/high-return investments.
ATM partnerships with a variety of financial
As a result, we have been able to minimize the
institutions.
decline of client assets stemming from a drop in
the stock market.
• Nomura Home Trade
Client Assets (Excluding Financials) and Nikkei Stock Average
27.1 trillion yen
(As of end of March 03)
20,337 yen
(Trillions of Yen)
30
Other
Nomura Home Trade is an online service that
plays a key role in our IT services. Online
accounts topped 1,140,000 as of the end of
March, 2003, representing a leading 29% share
of the market. Nomura Home Trade ensures the
Investment Trusts
highest level of security in the world. It not only
Equities
20
enables customers to trade online, placing
Domestic Bonds
Foreign Currency
Bonds
7,972 yen
buy/sell orders for stocks and investment trusts
whenever they please, but also allows them to
10
0
access a variety of Nomura information.
Nomura Home Trade
(Online Trading Accounts)
Nikkei Stock
Average
(Yen)
20,000
15,000
10,000
5,000
0
98.3
99.3
00.3
01.3
02.3
03.3
• Branch Strategy
Our sales representatives across Japan consult
with customers to gain a clear understanding of
their core values. They provide comprehensive
advice on assets and investments to meet
customers’ needs.
To expand our customer base, we are
developing a branch strategy based on detailed
investigations and analyses of the distribution of
24
Domestic Retail
(Thousands)
1,200
1,000
800
600
400
200
0
00
.3
01.3
02.3
03.3
• Nomura Telephone Answer /
Nomura Stock Price Dial
Nomura Telephone Answer provides a wide
range of free automated voice services.
APPROACH TO CORPORATE
EMPLOYEES’ INVESTMENT PLAN
MARKET
Customers can place orders for stocks and
Approximately 1,400 listed companies and
investment trusts, check account balances and
1,300 unlisted companies, making a total of
share prices. This service can be accessed from
approximately 2,700, retain our administrative
public telephones, mobile phones and PHS,
services in respect of corporate employees’
allowing customers to use it even when they are
investment plans. These companies are estima-
not at home or work.
ted to account for about 50% of Employee Stock
Nomura Stock Price Dial is an automated
Ownership Plan (ESOP) members. The corpo-
voice recognition service that allows customers
rate employee investment business is suitable
to check the current prices of Japanese stocks
for an IT-oriented, non face-to-face approach,
over the phone. When the customer names
as some employees have no time to visit branch
a company, the system responds immediately
offices on weekdays. It is forecast that investor
with the stock price.
confidence in this market will increase due to
the greater role of defined contribution pension
• Automated Teller Machines (ATMs)
plans in the future and other factors.
Customers can use a Nomura ATM to withdraw
We supply a range of investment information
or deposit funds free of charge, including on
to employees at companies that have adopted
Sundays and public holidays. We are working to
an ESOP directly through company computer
enhance customer convenience by expanding
networks (E-Plan). The information we provide
our ATM network through partnerships with
acts as an investment portal site that will enable
postal savings ATMs, bank ATMs and conven-
us to absorb more accurately the various needs
ience store ATMs. When there is no Nomura
of employees when they consider securities
branch office nearby, customers can use the
investment in the future. Also, our service
ATMs of our partners to withdraw and, in most
makes it easy for plan members to open
cases, deposit funds.
• Nomura Call Center
accounts with us (E-Support). Members can
make use of the consulting services offered
through our branch office network, and are able
Nomura Call Center serves as a support system
to seek investment advice after retirement.
for our face-to-face and online securities trading
services.
Customers can request the following:
• Technical support for using Nomura Home
Trade
• Basic administrative services, including
name and address changes
• Brochures for investment trusts and
other information
Approach to Corporate Employees’
Investment Plan Market
Nomura
IT Services
Corporations
E-Plan
Investment
Information &
Services
Face-to-Face
Services
Consultation
Employees
Intra-corporate
Information
Systems
Account Opening
E-Support
Asset Building
ESOP Shares
Retirement Benefit
Divisional Strategies
25
Global Wholesale
Global Wholesale is comprised of four business lines:
Fixed Income, Equity, Investment Banking and
Merchant Banking.
Global Wholesale’s business opportunities are rapidly
expanding on the back of globalization and structural
reform of the Japanese economy. Through our network
which spans 28 countries, we provide solutions to
customers both within Japan and abroad, and in doing
so expand our business.
GOALS AND STRATEGY
• Goals
• Strategy
The main bank-centric financial system of the
past, which was founded on loans and cross-
shareholdings, has malfunctioned following the
bursting of the economic bubble and the slump
in asset prices. Against the backdrop of policy
backup to break away from this situation, such
as the promotion of the Program for Financial
Revival and Comprehensive Deflation
Countermeasures, and the establishment of the
Industrial Revitalization Corporation of Japan,
developments in industrial reorganization and
corporate rehabilitation are also gaining pace at
the private sector level.
We view the great changes underway to
The goal of Global Wholesale is to play
revitalize Japan as a business opportunity,
a leading role in realizing the goal of the Nomura
and we intend to play an active role as a total
Group, in other words, “To become a globally
advisor to companies. Drawing on our strengths,
competitive Japanese financial services group.”
such as our broad customer base which is not
In working toward this goal, we will make full
tied to particular business affiliations, a special-
use of our collective strength, linking the power-
ist advisory function, strong sales capability,
ful sales network of Domestic Retail with our
sound balance sheet and vast financial strength,
global underwriting and institutional investor
we aim to provide companies with solutions
network to push ahead with our Japan-focused
through the capital markets, and thereby
globalization.
Revival Process
Program for
Financial Revival
Acceleration of
Disposal of
Non-performing
Loans
Asset Liquidation
Widening Gap
among Companies
Asset Finance
Equity Finance
contribute to the revitalization of the Japanese
economy while at the same time improving
profitability and growing our business.
FIXED INCOME
• Sales & Trading
We endeavor to provide a wide range of
products in order to respond to all of the
management needs of investors. We have
developed a global trading system enabling
customers to trade around the clock in
Financial Advisory
Japanese, United States, European, Canadian
Principal Investment
and Australian government bonds—the bonds
that are issued in the greatest quantities and are
the most liquid. In addition, with regard to credit
products, we aim to meet our customers’ various
credit needs by carefully managing positions
based on our sophisticated risk management
Industrial
Revitalization
Corporation (IRC)
Troubled Companies
Sorting & Selection
Exit from
Market
Business
Turnaround
Corporate
Revival
Industrial
Reorganization
Industrial Revival
26
Global Wholesale
Distribution Volume of
Foreign Currency Bonds
for Retail Investors
(Billions of yen)
1,500
capabilities. In the field of derivatives, our risk
operations. We are developing and marketing
management capabilities and risk tolerance
products through our global network of securiti-
capacity, underpinned by abundant capital,
zation operations, including those in the United
allow us to provide a range of services that
States and Europe that have track records in
best matches the asset management needs of
such business, and strengthening the securitiza-
1,200
our customers.
tion business in Japan. This has enabled us to
900
600
300
0
As one such example, we have matched the
deliver accurately tailored solutions to compa-
needs of prominent overseas issuers interested
nies in need of financial strategies, as well as
in Japan’s vast individual financial assets with
provide securitized products to meet the needs
those of individual investors looking for high
of investors demanding managed products,
returns and willing to accept exchange rate risk.
which now appear lucrative in the low interest
As a result, we have recorded high levels of
rate environment.
growth in sales of overseas bonds for retail
investors in currencies such as the U.S. dollar,
euro, and Australian dollar with our global
EQUITIES
underwriting network. We are also actively
We focus on transactions driven by customer
tackling the sale of government bonds to retail
order flows, and integrating those order flows
investors, so satisfying the asset management
globally enables us to execute trading orders
needs of this group of investors.
smoothly and efficiently, leveraging our sophisti-
02.3
1st
02.3
2nd
03.3
1st
03.3
2nd
Nomura’s Market Shares
JGB Auctions
JGB Sales to Retail Investors
Nomura
15%
Nomura
14%
cated risk management and trading capabilities.
We have developed a system capable of
smoothly executing even a large volume of
trading orders without seriously affecting the
market. In doing so, we have gained a high
reputation for reliability among our customers.
Nomura’s Share of Off-Floor/
Off-Exchange Stock Trading in Japan
Year ended March 31, 2003
Source: Nomura Securities
Value Base
Year ended March 31, 2003
Source: Nomura Securities
Value Base
Nomura
20%
• Securitization
Securitization has a vital function in corporate
rehabilitation. It is capable of fulfilling diverse
strategic requirements, such as reducing
corporate and government interest-bearing
liabilities, cutting property and equipment own-
ership costs by increasing asset liquidity, and
Year ended March 31, 2003
Source: Nomura Securities
Value Base
INVESTMENT BANKING
using assets more effectively. We are strength-
We provide a broad range of investment banking
ening our organization by positioning securitized
services, which include underwriting, M&A /
products as a core business on a par with bond
financial advisory services and securitization.
Divisional Strategies
27
• Underwriting
have corporate finance teams, which enables us
We continue to strengthen our placement power
to maintain close contacts with local corpora-
by broadening our domestic retail and global
tions on investment banking matters. As a
institutional customer bases, and to improve our
result, in the year ended March 31, 2003, we
ability to structure offerings in a timely manner
lead-managed 32 out of 127 initial public offer-
to match issuers’ particular needs and
ings (IPOs) made on Japan’s stock exchanges
investors’ demand.
and OTC market, and for Japanese public offer-
We have sponsoring relationships with about
ings we captured 44% of the market in the
65% of Japan’s listed and registered compa-
same period.
nies, and 39 of our domestic branch offices
In underwriting global shares, our track
Nomura’s Market Shares
Japanese IPOs
Japanese Public Offerings
Nomura
49%
Nomura
44%
Year ended March 31, 2003
Source: Nomura Securities
Value Base
Year ended March 31, 2003
Source: Nomura Securities
Value Base
record includes issues for Japanese companies
such as East Japan Railway Company and the
Mitsubishi Tokyo Financial Group, and global
offerings for foreign companies such as Bank of
China and China Telecom.
In underwriting bonds, we were successful in
the variable rate bond for Japan Highway Public
Corporation and the 6th bond issue of Toyota
Motor Corporation, which was chosen as “Deal
of the Year” by Nihon Keizai Shimbun, Inc.,
enabling us to secure the top market share for
the fiscal year under review. In the global field,
we maintained our ranking as the leading under-
writer of yen bonds, and in dollar bonds we
Japanese Straight Bonds
Euro-Yen Bonds
added to our track record by acting as lead-
Nomura
23%
Nomura
21%
Year ended March 31, 2003
Source: Thomson DealWatch
Year ended March 31, 2003
Source: Thomson Financial
Lead Manager and Value Bases
Bookrunner and Value Bases
manager of global dollar bond issues for Federal
Home Loan Banks (FHLB) and the European
Investment Bank (EIB).
• M&A/Financial Advisory Operations
The progress in corporate restructuring is about
to make a further leap forward as corporations
take their future into their own hands, thanks to
M&A Ranking (Jan.-Dec. 2002)*
Rank
1
2
3
4
5
Advisor
Nomura
Citigroup
Goldman Sachs & Co
Daiwa Securities SMBC
Morgan Stanley
Amount (US$ Million)
Market Share (%)
Number of Deals
20,457.2
8,304.1
7,609.5
7,378.5
7,156.0
32.4
13.2
12.1
11.7
11.3
121
24
14
89
25
*Completed Mergers and Acquisitions: Any Japanese Involvement Announced Advisor Ranking. League table based on rank value.
Source: Thomson Financial
28
Global Wholesale
policies that aim to revitalize the Japanese
where we actively conduct principal finance
economy and reorganize industry. Consequently,
business by using our investment experience
there is an increasing need for M&A advisory
and know-how. Investments range from man-
services and financial advisory services. We
agement buyouts (MBOs) to rehabilitation
have achieved good results in this field, includ-
of corporations that are unprofitable or
ing acting as financial advisor in the capital and
excessively indebted.
business tie-up between Seiyu and Wal-Mart.
In the year ended March 31, 2003, through
In addition, in the corporate rehabilitation busi-
Nomura Principal Finance, in the private equity
ness, we acted as financial advisor to First
field we acquired Daikuma in a joint operation
Credit Corp., among others. As a result of
with Yamada Denki, and in the MBO field we
these efforts we were ranked first in Thomson
invested in Wanbishi Archives, the largest MBO
Financial’s 2002 Any Japanese Involvement
ever carried out in Japan.
Announced Advisor Ranking.
MERCHANT BANKING
With Japanese companies reorganizing their
operations in a bid to make management more
efficient, sales of a wide variety of businesses
and assets are expanding. Merchant banking
operations involve investing our own capital in
shares, and actively participating in the man-
agement of the companies we invest in. The aim
is to maximize return on investment by adding
value to those companies.
We use our wealth of know-how and skill
accumulated overseas toward organizational
streamlining in pursuit of capital gains. Nomura
added Merchant Banking to Global Wholesale
as a new business line in October 2001 as part
of its organizational changes.
The focus of this business is the acquisition
of under-performing or challenging businesses
Divisional Strategies
29
Asset Management
In Japan,the needs for asset management services are
rapidly growing and diversifying against a background
of concern about personal financial security,including
the adequacy of the current pension system.In Asset
Management,we are strengthening our asset
management and defined contribution pension plan
business to build an organization that precisely meets
today’s needs.
ENHANCEMENT OF INVESTMENT
MANAGEMENT BUSINESS
project, including pursuing flexibility and benefits
of integration of management structure and
strengthening bottom-up research functions.
Corresponding to each strategy, we have
created action plans that involve consolidating
decision-making processes and expanding our
coverage by increasing the number of research
analysts. We streamlined the framework under
which we can obtain stable added value in asset
management over the medium to long term,
and aim to improve performance under the
new structure.
The second task is to improve comprehensive
added value in areas other than performance,
To enhance our investment management busi-
such as by augmenting both the quality and
ness, we have identified the following tasks.
quantity of disclosure and by strengthening
The first task is to improve performance.
services for beneficiaries.
Nomura Asset Management Co., Ltd. (NAM)
The third task is to expand our assets under
implemented the “Asset Management Capability
management, especially via the steadily growing
Enhancement Project” in order to earn respect
area of banks, by proposing and implementing
and trust among its customers through the
strategies for individual sales channels.
provision of high value-added products by
Concurrently, we are expanding cross-sales
strengthening its asset management capabilities.
through collaboration between Domestic Retail
At the same time, we examined various measures
and Global Wholesale, and thereby expanding
to improve our asset management capabilities.
sales of Nomura Group products.
We have formulated basic strategies for this
Asset Management Capability Enhancement Project
Basic Strategy
Action Plan
(cid:1)Pursue flexibility and benefits of integration
(cid:1)Consolidate decision-making process
(cid:1)Establish investment team structure
(cid:1)Strengthen research functions
(cid:1)Increase number of analysts from 44 to 63
(cid:1)Expand coverage
(cid:1)Establish Credit Research Dept.
(cid:1)Increase quantitative analysis support
(cid:1)Enhance portfolio construction technology
(cid:1)Strengthen risk management function
(cid:1)Integrate quantitative analysis and investment
technology development functions
(cid:1)Enhance cooperation between investment
and research
30 Asset Management
NOMURA ASSET MANAGEMENT
CO., LTD. (NAM)
NCRAM
Nomura Corporate Research & Asset
• Investment Trust Business
Management Inc. (NCRAM) manages the
To meet diversified asset management needs,
Nomura Bond & Loan Fund and High-yield
NAM offers a comprehensive product lineup,
Bond Open. As of the end of March 2003,
from cash reserve products such as MMF to
NCRAM’s asset balance was $4.7 billion, up
high-risk/high-return products, including stock
52% from the previous year due to an inflow of
investment trusts. As of the end of March 2003,
assets to foreign currency funds.
the total outstanding balance of assets under
management in NAM’s public investment trusts
was ¥10.5 trillion, which comprises stock
investment trusts and bond investment trusts,
NOMURA BLACKROCK
ASSET MANAGEMENT
and it placed NAM in the top position in the
Nomura BlackRock Asset Management Co.,
domestic market.
Ltd. is an investment advisory company estab-
lished in April 1999 as a joint venture between
• Investment Advisory Business
NAM and The BlackRock Co., Inc. of the United
The investment advisory business continues to
States. BlackRock uses risk management tech-
expand due to a series of reforms of the system.
nology, and is rated highly in the United States,
The balance of NAM’s domestic pension fund
particularly for bond management. Nomura
assets was ¥2.9 trillion as of the end of March
BlackRock Asset Management manages the
2003. We will continue to create a complete
Nomura Short Term Bond Investment Trust and
system for providing fine-tuned services to a
other products and provides investment adviso-
large number of customers, and will work on
ry services to institutional investors such as
expanding the balance of assets under NAM’s
financial institutions and pension funds. As of
management.
the end of March 2003, the outstanding balance
of assets under management was approximately
¥950.3 billion.
Assets under Management
(NAM)
Market Share
(NAM)
Main Foreign Bond Assets
under Management
Assets under Management
(NCRAM)
(Trillions of yen)
25
21.0
0.2
4.9
19.9
0.1
5.6
18.2
0.2
4.5
10.7
13.3
10.4
14.2
0.2
3.6
7.3
3.5
2.6
3.2
3.2
20
15
10
5
0
(%)
50
40
30
20
10
0
(Billions of yen)
180
150
120
90
60
30
0
(Millions of US$)
5,000
4,000
3,000
2,000
1,000
0
00.3
01.3
02.3
03.3
00.3
01.3
02.3
03.3
01.3
01.9
02.3
02.9
03.3
00.3
01.3
02.3
03.3
Others
Investment Advisory
Bond Investment Trusts
Stock Investment Trusts
Bond Investment Trusts
Public Investment Trusts
Stock Investment Trusts
U.S. Preferred Securities Open
Asset Backed Securities Open
Nomura Bond & Loan Fund
Nomura Short Term Bond
Investment Trust
Divisional Strategies
31
STRENGTHENING OF DEFINED
CONTRIBUTION PENSION PLAN
BUSINESS
To strengthen our defined contribution
pension plan business, we have decided to
focus on three tasks. The first task is to increase
pension administration, and to create a wider
Japan’s Defined Contribution Pension Plan Law
range of product supply channels by enhancing
became effective on October 1, 2001, marking
cooperation with investment banking depart-
the start of pension plans in which benefits
ments and strengthening our consulting ability.
fluctuate in accordance with the results of
The second task is to use our track record and
investment decisions as well as general market
know-how in investment education to increase
conditions. Based on accumulated know-how
the purchasing ratio for the products we
in the investment trust and investment advisory
offer. The third task is continual reviews of the
businesses, and a well-established presence
services and organization it encompasses, to
in the corporate employees’ investment plan
respond to changes in customers’ needs.
market, we provide a wide range of services
relating to defined contribution pension plans,
Support for Implementation (Plan Design)
ranging from support for plan implementation to
In providing plan design and support for
supply of products. As of March 2003, Nomura
implementation of defined contribution pension
Pension Administration Share
plans as well as defined benefit pension plans,
Nomura Human Capital Solutions Co., Ltd.
(NHCP) acts as a total designer of corporate
pensions, proposing plan designs optimally
suited to the particular situations of institutional
Nomura
40%
customers.
Year ended March 31, 2003
Source: Nomura Securities
Number of Employees Base
Management Support
• Product Selection
Based on management assessments and
analyses of investment trusts carried out by
Nomura Funds Research and Technologies
Co., Ltd. (NFR&T) and Standard & Poor’s,
DC Planning Co., Ltd. (NDCP) had received 35
NDCP makes product selections and offers
pension administration contracts and secured
proposals from a neutral standpoint. We
a 40% share of pension administration business
conduct quality control by making quantitative
on a number-of-employees basis, excluding
and qualitative assessments, analyses and
pension administration contracts and group
product selections from a wide range of
companies (approximately 160,000).
products provided by a variety of management
companies.
32
Asset Management
• Provision of Information to Subscribers
Product Supply
As the key player and management entity in
NAM sets up and manages investment trusts to
this business, NDCP provides explanations
help subscribers accumulate assets over the
of products and information on investment
long term. It strives to improve results through
trust prices.
• Record-keeping
in-depth risk analysis of a wide range of invest-
ment trusts. NFR&T specializes in “fund of
funds” management based on its own manage-
NDCP outsources the record-keeping to
ment assessments and analyses of investment
Japan Investor Solutions and Technologies
trusts run by asset management companies.
Co., Ltd. (JIS&T), a specialized company.
JIS&T provides regular reports and record
Investment Education
administration services for all subscribers.
Nomura Securities Co., Ltd. provides investment
Trust Services
education through websites, publications, semi-
nars and other tools for subscribers and compa-
Nomura Trust and Banking Co., Ltd. provides
nies that intend to start defined contribution
administration services, including execution of
pension plans.
trades on customer orders received through
JIS&T.
Approach to Defined Contribution Pension Plans
Plan Design
Trust Services
Product Supply
Relationship
Manager /
Investment
Education
Product Selection
Provision of
Information
to Subscribers
Record-keeping
Divisional Strategies
33
GLOBAL RESEARCH
Kenichi Fukuhara
Senior Managing Director
Head of Global Research
34
Global Research
Nomura Group started global research in 1906 based on the
philosophy of our founder, Tokushichi Nomura, that scientific
research into securities is essential for the development of
a healthy securities industry. Since then, we have earned a
reputation as a leader in Japanese securities research, both
in Japan and overseas. Our fundamental philosophy of
contributing to the establishment of Nomura Group’s position
as a globally competitive Japanese financial services group
as well as striving to provide a large volume of high-quality,
high value-added information by building and enhancing
a research framework remains the same. However, we have
also been putting particular emphasis on the areas below in
response to major changes in the business environment
over recent years.
1) BUILDING A GLOBAL RESEARCH FRAMEWORK
With cross-border capital movements and globalized
corporate operations now everyday phenomena, there is
a need for a major shift in investment decision-making from
the conventional paradigm based on the nationality of com-
panies and trading markets. Two years ago, we restructured
our research organization to adapt accordingly. Daily collabo-
ration between strategists, sector analysts, and quantitative
analysts around the world has consolidated the organization,
and it is producing results.
2) FURTHER STRENGTHENING THE COMPLIANCE SYSTEM
The philosophy of Global Research, as outlined previously,
must act as the bedrock of this department, and as such,
has compelled us to prioritize impartiality in our research.
However, with the emergence of concerns about the
professional ethics of analysts since the events relating to
Enron last year, we have moved to establish even stronger
compliance and checking systems. We are rebuilding our
compliance system, providing better operations manuals
and conducting on-the-job training with the aim of making it
compatible with the timely provision of precise information.
We believe that this is enhancing front-compliance.
3) CONTRIBUTING TO THE DEVELOPMENT OF HEALTHY CAPITAL
MARKETS
We see ourselves as having a major responsibility to contribute
to the further development of capital markets, which are the
key to Japan’s economic revival. In particular, we focus on
tie-ups between industry and academia, joint research with
research institutes in Japan and overseas in cutting-edge
fields, such as financial engineering technology, research and
analysis of industrial strategy to form the foundation for
industrial revival, and finding biotechnology and IT start-up
companies.
We have engaged in joint research with institutions that
include Tokyo University, Kyoto University, Hitotsubashi
University, Oxford University and The Anderson School
at UCLA. We collaborate in the presentation of research
results at academic conferences, write articles and hold
joint seminars.
In addition, we have resumed publication of the
quarterly Zaikai Kansoku “Capital Market Visions” as
a medium for discussing and analyzing various problems
in the capital markets.
We believe that by providing high value-added information
drawing on our diverse and highly specialized human
resources and databases, we can contribute to improving
performance on behalf of investors, and the development of
healthy capital markets.
The Fifth Nomura Bio Conference
In October 2002, the Fifth Nomura Bio Conference
was held in Tokyo. More than 500 people representing
pharmaceutical companies, bio-ventures, institutional
investors and venture capital-related companies attended.
Global Research
35
Nomura Securities Financial Research Center
The research activities of the Financial Research Center are
conducted by four departments, namely Equity Research,
Investment Strategy, Quantitative Research and Investment
Banking Research. The Center’s Corporate Office is in charge
of coordinating domestic and overseas research departments,
implementation of IT strategies and compliance. The Center’s
analysts rank consistently high in polls published by Nikkei
Financial Daily and Institutional Investor. In October 2001, we
established a global research framework, integrating the
research departments in the three regions of the United
States, Europe and Asia.
• Equity Research Department (Sector Analysts)
The department has approximately 60 sector analysts
covering 610 domestic companies. In terms of total market
capitalization, it covers 85% of the First and Second Sections
of the Tokyo Stock Exchange and the OTC market. The
Equity Research Department also carries out research on
overseas subsidiaries and foreign competitors. Investment
recommendations are delivered to investors in the form of
approximately 3,700 Flash Reports and 700 reports a year.
• Investment Strategy Department (Strategists)
Approximately 20 strategists analyze the macroeconomies of
different countries and international capital flows as well as
making investment recommendations on the stock markets
of different countries based on the performance forecasts of
analysts in the Equity Research Department. In Japan Stock
Investment Strategies, a monthly report compiled by the
department, Nomura Securities offers views on Japanese
stocks, taking into account the macroeconomic environment,
industry trends, corporate profitability, and the supply /
demand situation. The department also publishes regular
reports on the international diversification of investments,
and U.S., European and Asian stock markets.
36
Global Research
• Quantitative Research Department
(Quantitative Analysts)
This department has just under 60 quantitative analysts and
conducts market analysis and investment recommendations
based on quantitative analysis. In addition to information
services for institutional investors, the department develops
joint research with leading domestic and overseas
researchers, and has developed a track record of results in
cutting-edge fields, including such financial engineering tech-
nology as pricing theory of derivative securities. As investors
increasingly require sector-by-sector analysis, improving the
accuracy of international comparisons in quantitative analysis
is an important challenge for this department. Consequently,
the department has slightly fewer than 30 analysts based in
London, New York, and Hong Kong, and it is engaged in the
classification by sector of not only Japanese stocks but also
stocks from the world’s other major markets, and efforts to
find appropriate valuations.
• Investment Banking Research Department
(Investment Analysts)
This department has just under 20 researchers engaged in
the research of important aspects of corporate management
and finance. The department bases its recommendations for
management and financial strategy on this research. The
department produces more than 100 recommendations
a year for adapting financial and group strategies to large
changes in the business environment and accounting
system. It ranks highly among a broad range of customers,
from Japan’s leading companies to companies planning to
list on the stock exchange.
China Opportunity Symposium
In June 2002, China Opportunity Symposium was held
in Tokyo. Approximately 800 customers attended over
two days. We introduced Nomura Group’s views on
China-related issues to institutional investors and
corporate customers in Japan and overseas through
lectures and panel discussion.
Global Research
37
CONTRIBUTIONS TO SOCIETY
Nomura Group is active in contributing to
Sponsored Lectures at Japanese
society in the financial sphere, e.g., investor
Universities
education, and also in the fields of education,
We aspire to give students a more practical and
art and sport.
real understanding of our industry, including a
For example, the Nomura Cultural
working knowledge of economics and finance.
Foundation, established in 1990, trains
Our goal is to develop the human resources that
human resources for participation in the arts
will be responsible for investor education and
and culture, and provides scholarships for
the securities industry in the future. For this
exchange students, mainly from Asia, as
reason, Nomura Group organizes lectures
well as contributes financially to public
nationwide on the capital markets, securities
amenities overseas.
Investor Education
markets and the global securities business.
The lecturers include directors and managers
from Nomura Group, with lectures held or
Society has moved on from a time when people
scheduled to be held at about 110 universities
could feel secure without making any invest-
in the current fiscal year.
ments to an era when it is risky to do nothing
Education is the foundation of economic
regarding the accumulation and safeguarding of
development. We believe that the existence of
financial assets.
a complementary relationship between the
The study of real life economics has been
economy and education is the source of
attracting great interest at a time when forms of
dynamism. Nomura Group cooperates and
asset management for individuals are undergo-
takes part in the enhancement of educational
ing such change. Increasing the opportunities
opportunities for the next generation.
for people to deepen their understanding of the
economy and finance is a priority in the creation
Sponsorship of Nikkei Stock League
of a dynamic economy and society.
Nikkei Stock League is a competition for learn-
As a financial services group that supports
ing about stocks. It was established to give
the development of the Japanese economy, we
young people a deeper understanding of finan-
play an active role in providing a wide range of
cial and economic mechanisms through contact
educational opportunities in the areas of eco-
with the real economy and actual experience.
nomics and securities for people who need an
Teams of junior and senior high school
understanding of finance, including youngsters.
and university students take part in the study
38
Contributions to Society
program. They gain real experience of economic
Sponsoring Educational Booklet on
trends via the “Virtual Share Club,” a trading
Finance for Elementary School Children
simulation game that we run on our website.
The teaching of the economic and financial
They also prepare reports with the assistance
mechanisms that children will need to under-
of instructors.
stand when they grow up is very important. In
The winning team, selected according to
the current education system, such education
portfolio performance and the content of reports,
is inadequate.
is invited on a study trip to the United States.
Nomura Securities Co., Ltd. provides
a diverse range of opportunities for learning
Social Studies for Senior High School
about the economy and securities. For example,
Students
we sponsor “The Secret of Money—The Work
Nomura Group also sponsors the Nikkei
of a Securities Company” in conjunction with
Education Forum. This social studies event for
the Central Council for Financial Services
high school students is held every year at the
Information. This educational booklet on finance
beginning of the summer vacation. The objec-
for elementary school children gives easy-to-
tive is to make students aware of how society
understand explanations of the roles of money,
and the economy are driven by the dynamism
banks and securities firms using the comic book
and innovation of corporate activities.
format. To date, it has been distributed to
The senior high school students who take
24,000 elementary schools and 2,400 public
part in the event learn that stocks play a key role
libraries across Japan.
in corporate innovation while listening to lectures
by lecturers from Nomura Group and taking
part in mini-games. Many of the reports from
students indicate that they feel the event is
very significant as it gives them a more direct
experience of society.
Contributions to Society
39
Direct Contact with Finance and
Developing the Human Resources of the
Economy: man@bow
(http://manabow.com/)
Future: A Nomura Group Mission
THE NOMURA CULTURAL FOUNDATION
Nomura Group set up man@bow, a Website for
contributes to society, primarily in human
learning about the economy, with Nihon Keizai
resource development and international
Shimbun, Inc., to deepen understanding of and
exchange in music and the arts, training of
interest in economics and finance among a
young artists, lectures, exhibitions and sympo-
broad cross-section of the general public.
siums aimed at international cultural and artistic
The Website handles real-life events, including
exchange, and provides scholarships to foreign
current affairs and market trends as well as the
students studying in Japan in the social sciences
mechanisms and functions of finance and eco-
and liberal arts. The foundation’s continued
nomics, and makes them easy to understand.
support for the Pacific Music Festival (PMF)
since its establishment earned it the Mecenat
Award for Outstanding Cultivation of the Arts
in 1999.
Lectures at Oxford University
Nomura International plc in London sponsors
the Nomura Centre for Quantitative Finance at
Oxford University. The Centre organizes annual
lectures with practical relevance by leading
authorities in the fields of financial engineering
and mathematical analysis.
40
Contributions to Society
Nomura Foundation for Social Science
Bernstein’s International Music
The Nomura Foundation for Social Science
Education Festival
was inaugurated in 1986 to mark the 60th
The Pacific Music Festival (PMF) is an interna-
anniversary of the founding of Nomura
tional music festival that trains young musicians
Securities Co., Ltd. It provides assistance
selected from all over the world, and thereby
mainly for university researchers, primarily in
enhances musical culture. Every summer,
the fields of law, politics and economics.
outstanding musicians from around the world
So far, the foundation has helped 669
come together to hold a series of concerts,
researchers in international exchange projects.
which are held in the Sapporo Art Park on
These projects assist in promoting international
consecutive days.
exchange in research and education, and
PMF is an International Music Education
dispatching researchers overseas and inviting
Festival established in 1990 by the late-great
overseas researchers to Japan. It has also
composer and conductor Leonard Bernstein.
provided help to 344 research topics in the form
It carries on Bernstein’s vision of “sharing
of research project assistance with the aim of
emotions with people all around the world and
contributing to the development of academic
training people to keep the dream alive.”
research in Japan.
Survey on the Cost of Child-Raising
(Angel Coefficient)
In 1989, we started a biennial survey to
measure the cost of child-raising in the family
budget, which is referred to as the “Angel
Coefficient.” In the 7th survey, conducted in
December 2001, we improved the “Angel
Coefficient” by including the number of hours
devoted to child-raising within the relevant
overall economic environment.
Contributions to Society
41
CORPORATE DATA / SHARE DATA
Nomura Holdings, Inc.
Corporate Data
Type of Business
Nomura Holdings, Inc. 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
Capital
Nobuyuki Koga, President and Chief Executive Officer
¥182,799,788,854 (As of March 31, 2003)
Number of Common Stock Issued 1,965,919,860 shares (As of March 31, 2003)
Number of Shareholders
152,800 (As of March 31, 2003)
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.
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
UFJ Trust Bank Limited
Corporate Agency Department 81 (3) 5683-5111
The Bank of New York
ADR Division 1 (212) 815-2042
http://www.adrbny.com
Ratio: 1 ADR = 1 ordinary share
Listings
Head Office
Transfer Agent and Registrar
Depositary for American
Depositary Receipt (ADRs)
Share Data
Number of Shareholders
Component Ratio of Shareholders
160,000
120,000
800,000
40,000
0
17.93
18.46
19.41
21.55
29.30
30.11
28.27
28.97
12.37
0.76
10.38
0.66
9.53
0.63
8.67
0.70
39.64
40.39
42.15
40.10
%
100
80
60
40
20
0
00.3
01.3
02.3
03.3
00.3
01.3
02.3
03.3
Financial Institutions
Securities Firms
Other Legal Entities
Foreign Legal Entities
Individuals and Others
Credit Ratings
S&P
Moody’s
R&I
JCR
*As of May 31, 2003
Nomura Holdings, Inc.
Nomura Securities Co., Ltd.
Long-term
Short-term
Long-term
Short-term
BBB
Baa2
A+
AA
A-2
P-2
a-1
—
BBB+
Baa1
A+
AA
A-2
P-2
a-1
—
42 Corporate Data / Share Data
DIRECTORS AND EXECUTIVE OFFICERS (As of June 26, 2003)
Nomura Holdings, Inc.
Directors
Executive Officers
Chairman
Senior Managing Director
Junichi Ujiie
Junichi Ujiie
Directors
Nobuyuki Koga
Hiroshi Toda
Kazutoshi Inano
Takashi Fujita
Shozo Kumano
President & CEO
(Representative Executive Officer)
Nobuyuki Koga
Chief Executive Officer (CEO)
Deputy President & COO
(Representative Executive Officer)
Hiroshi Toda
Chief Operating Officer (COO)
Masaharu Shibata (*)
Deputy President & Co-COO
(Representative Executive Officer)
Hideaki Kubori (*)
Haruo Tsuji (*)
Fumihide Nomura
Koji Tajika (*)
*outside director
Kazutoshi Inano
Co-Chief Operating Officer (Co-COO)
Head of Asset Management
Senior Managing Directors
Takashi Tsutsui
Takashi Yanagiya
Head of Domestic Retail
Kenichi Watanabe
Head of Global Risk Management / Global IR / Global IT & Operations
Takumi Shibata
Head of Global Wholesale
Hiromi Yamaji
Regional Management of Europe Region
Manabu Matsumoto
Yoshifumi Kawabata
Head of Global Merchant Banking
Shogo Sakaguchi
Masanori Itatani
Head of Global Corporate Communications
In charge of Nomura Holdings’ General Affairs Dept., Secretariat
Yoshimitsu Oura
Yusuke Yamada
Hitoshi Tada
Kenichi Fukuhara
Head of Global Research
Yasuo Agemura
Head of Global Fixed Income
Hideyuki Takahashi
Regional Management of Americas Region
Hiroshi Tanaka
Head of Global Equity
Noriyuki Ushiyama
Head of Global Investment Banking
Noriyasu Yoshizawa
Regional Management of Asia & Oceania Region
Yasuo Yoshihara
In charge of Nomura Holdings’ Ethics & Discipline Dept.
Akira Maruyama
Chief Financial Officer (CFO)
Head of Global Treasury / Global Controller
In charge of Nomura Holdings’ Tax Management Dept.
Kamezo Nakai
Akio Nakaniwa
Takahide Mizuno
Directors and Executive Officers
43
SUBSIDIARIES AND AFFILIATES (As of March 31, 2003)
Nomura Holdings, Inc.
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 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 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.
2 Bloor Street, West Suite 700, Toronto,
Ontario M4W 3R1, Canada
Tel: 1 (416) 868-1683
Fax: 1 (416) 359-8956
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) 667-9590
Fax: 1 (212) 667-1251
NOMURA ASSET MANAGEMENT U.S.A. INC.
180 Maiden Lane, 26th Floor
New York, New York 10038-4936, U.S.A.
Tel: 1 (212) 509-8181
Fax: 1 (212) 509-8835
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 HUMAN CAPITAL SOLUTIONS
CO., LTD.
2-2-1, Marunouchi, Chiyoda-ku
Tokyo 103-0005, Japan
Tel: 81 (3) 5223-2101
Fax: 81 (3) 5223-2105
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
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.
1-12-1, 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 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
Tokyo 100-8130, Japan
Tel: 81 (3) 3278-0243
Fax: 81 (3) 3271-2498
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
44
Subsidiaries and Affiliates
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
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 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 PRINCIPAL INVESTMENT 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 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 ITALIA S.I.M.p.A.
Via Palestro, 2-20121 Milan, Italy
Tel: 39 (02) 76461
Fax: 39 (02) 76317106
NOMURA CORPORATE ADVISORY
(CENTRAL EUROPE) 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
Vienna
Budapest
Zurich
Geneva
Frankfurt
Amsterdam
Dublin
London
Paris
Madrid
Luxembourg
Milan
Manama
Beijing
Seoul
Shanghai
Hong Kong
Hanoi
Bangkok
Kuala Lumpur
Singapore
Jakarta
Taipei
Manila
Tokyo
Los Angeles
Toronto
Chicago
New York
Bermuda
Sydney
São Paulo
Subsidiaries and Affiliates
45
NOMURA ADVISORY SERVICES (MALAYSIA)
SDN. BHD.
Suite No16. 3, Level 16, Letter Box No.46
Menara IMC, 8 Jalan Sultan Ismail 50250
Kuala Lumpur, Malaysia
Tel: 60 (3) 2079-6811
Fax: 60 (3) 2079-6888
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 (6420) 1788
Fax: 65 (6420) 1799
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
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.
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 CORPORATE ADVISORY
(CHINA) 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.
420, 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) 399-5222
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 Office Building 44B
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 SINGAPORE LIMITED
6 Battery Road, #34-01, Singapore 049909
Singapore
Tel: 65 (6420) 1811
Fax: 65 (6420) 1888
46
Subsidiaries and Affiliates
DOMESTIC NETWORK (As of March 31, 2003)
Nomura Securities, Co., Ltd.
(cid:2)Hokkaido
(cid:2)Tohoku
(cid:2)Kanto
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
Kofu 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
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
12-1-4, 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 (55) 237-1781
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 (29) 821-8811
81 (48) 833-1881
81 (28) 636-2181
81 (45) 641-2101
81 (45) 311-1671
81 (46) 823-2550
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
1-8-17, Marunouchi, Kofu-shi, Yamanashi 400-0031
1281-29, Matsudo, Matsudo-shi, Chiba 271-0092
1-3-37, Miya-machi, Mito-shi, Ibaraki 310-0015
1-24, Daimon-cho, Omiya-ku, Saitama-shi, Saitama 330-0846
2-155, Sakuragi-cho, Omiya-ku, Saitama-shi, Saitama 330-0854
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
(cid:2)Tokyo metropolitan area Chofu Branch Office
81 (42) 498-6011
81 (42) 369-8111
Fuchu Branch Office
81 (3) 3491-9101
Gotanda Branch Office
81 (426) 46-3811
Hachioji Branch Office
81 (3) 3983-1111
Ikebukuro Branch Office
Ikebukuro Metropolitan Plaza Branch Office 81 (3) 3988-1181
81 (3) 3718-3371
Jiyugaoka Branch Office
81 (3) 3783-5101
Kamata Branch Office
81 (422) 22-8181
Kichijoji Branch Office
81 (3) 3657-1141
Koiwa Branch Office
81 (42) 328-6011
Kokubunji Branch Office
81 (42) 725-2111
Machida Branch Office
81 (3) 3769-6651
Mita Branch Office
81 (3) 3228-7755
Nakano Branch Office
81 (3) 3994-7711
Nerima Branch Office
81 (3) 3392-6011
Ogikubo Branch Office
81 (3) 3774-1181
Omori Branch Office
81 (3) 3482-2011
Seijo Branch Office
81 (3) 3882-8411
Senju Branch Office
81 (3) 3400-7111
Shibuya Branch Office
81 (3) 3572-0111
Shinbashi Branch Office
81 (3) 3205-1001
Shinjuku Branch Office
81 (3) 3342-1281
Shinjuku-eki Nishiguchi Branch Office
81 (3) 3348-8211
Shinjuku Nomura Building Branch Office
81 (42) 524-1111
Tachikawa Branch Office
81 (3) 3708-1811
Tamagawa Branch Office
81 (3) 3211-2411
Tokyo Branch Office
81 (3) 3583-2301
Toranomon Branch Office
81 (3) 3831-9211
Ueno Branch Office
1-36-9, Fuda, Chofu-shi, Tokyo 182-0024
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
5-15-8, Kamata, Ota-ku, Tokyo 144-0052
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
5-65-3, Nakano, Nakano-ku, Tokyo 164-0001
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
Domestic Network
47
Office Name
Telephone
Address
3-4-1, Ote, Fukui-shi, Fukui 910-0005
81 (776) 22-8011
81 (58) 262-3101 6-6, Kanamachi, Gifu-shi, Gifu 500-8842
81 (53) 454-3151
81 (52) 322-1261
81 (76) 221-3145
81 (263) 33-6781
81 (26) 228-1811
81 (52) 201-2311
81 (52) 561-5251
81 (25) 225-7777
81 (55) 962-4444 Mitsui Seimei Otemachi Daini Building, 2-10-14,
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
2-1-34, 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 (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 (72) 681-2111
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 (84) 921-3111
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 410-8691
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
(cid:2)Chubu/Hokuriku
(cid:2)Kinki
(cid:2)Chugoku/Shikoku
(cid:2)Kyushu/Okinawa
Fukui Branch Office
Gifu Branch Office
Hamamatsu Branch Office
Kanayama Branch Office
Kanazawa Branch Office
Matsumoto Branch Office
Nagano Branch Office
Nagoya Branch Office
Nagoya-ekimae Branch Office
Niigata Branch Office
Numazu Branch Office
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
48
Domestic Network
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
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