Nomura Annual Report 2003

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FY2003 Annual Report · Nomura

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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) . . . . . . . . . . . . . . . . . . .

(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

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

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

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

731.77

17.50

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)

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

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

To Our Shareholders and Customers

Nobuyuki Koga
President & Chief Executive Officer
Nomura Holdings, Inc.

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

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

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

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

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

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

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

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

01.3

02.3

03.3

Net Revenue
Income before Income Taxes

Management Policy of Nomura Group

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

01.3

02.3

03.3

Net Revenue
Income before Income Taxes

Management Policy of Nomura Group

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)

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

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

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 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

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.

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

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

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.)

(%)
100

01.3

02.3

03.3

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

150

100

00.3

01.3

02.3

03.3

Funds Research and Technologies Co., Ltd. More

02.3

03.3

Divisional Strategies

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

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

access a variety of Nomura information.

Nomura Home Trade
(Online Trading Accounts)

Nikkei Stock
Average
(Yen)
20,000

15,000

10,000

5,000

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

Domestic Retail

(Thousands)

1,200

1,000

800

600

400

200

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

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

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

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

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

• 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

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

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

*Completed Mergers and Acquisitions: Any Japanese Involvement Announced Advisor Ranking. League table based on rank value.
Source: Thomson Financial

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

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

(%)
50

(Billions of yen)

180

150

120

(Millions of US$)
5,000

4,000

3,000

2,000

1,000

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

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.

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

GLOBAL RESEARCH

Kenichi Fukuhara
Senior Managing Director
Head of Global Research

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

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.

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

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

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

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.

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

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

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

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+

A-2

P-2

a-1

—

BBB+

Baa1

A+

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

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

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

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

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

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

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

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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