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Profile
Nomura Holdings, Inc. (NHI) and its domestic and overseas subsidiaries, includ-
ing Nomura Securities Co., Ltd., and Nomura Asset Management Co., Ltd., con-
duct comprehensive business management as Nomura Group under a unified strat-
egy, with NHI acting as the holding company.
Aiming to carve out a solid position as a globally competitive Japanese financial
services group, Nomura Group makes use of its strong domestic and overseas cus-
tomer base and its global network spanning 28 countries to develop its businesses in
securities and related fields.
Nomura Group is engaged in a wide range of business activities, including invest-
ment consultation services for domestic retail investors, securities brokerage services,
underwriting of stocks and bonds issued by domestic and foreign governments and
corporations, M&A and financial advisory services, merchant banking business,
asset management including management of investment trusts and pensions,
defined contribution pension business and investor education.
As a group, we aim to combine our powers to offer competitive products, high-
value-added services and advice, to contribute to the sustainable development of the
Japanese economy.
Contents
Our Founder’s Principles
Consolidated Financial Highlights
To Our Shareholders and Customers
Message from the COO
Japan’s Securities Markets Have Entered a New Growth Phase
Business Outline
Business Portfolio
Domestic Retail
Global Wholesale
Asset Management
Research
Nomura Group
Corporate Governance
Compliance
Nomura Group’s Contribution to Society
Research and Policy Pronouncements
Directors and Executive Officers
Subsidiaries and Affiliates
Domestic Network
Financial Section
Corporate Data / Share Data
1
2
4
8
9
13
14
16
24
32
38
41
42
46
48
52
53
54
57
59
67
Tokushichi Nomura
Our Founder’s Principles
The words of wisdom of the founder, Tokushichi Nomura, were con-
densed into ten business principles that guide our day-to-day business
activities. While remaining true to the principles set out at our founding,
we have been evolving dynamically in response to changes in the busi-
ness environment.
1． Nomura’s raison d’eˆtre
“Nomura’s mission is to enrich the nation through the securities business.
This is something we must absolutely see through.”
Empirical Research on Investment Trusts, compiled by Nomura Securities Research Department
2． Principle of putting the customer first
“We must place our customers’ interests before our own.”
100th edition of Osaka Nomura Business News
3． Global ambition
“Nomura is destined to become an active player on the international stage.”
“Looking Back at My Life,” by Tsunao Okumura
4． Emphasis on rigorous research and analysis
“We have a duty to research scientifically the intrinsic nature of all securities.”
5． Staying one step ahead
“Always strive to stay one step ahead. Stagnation is retrogressive.”
Autobiography ‘Tsutakatsura’
Biography ‘Nomura Tokuanden’
6． Entrepreneurial spirit
“If, as an entrepreneur, you can determine something to a 70% certitude, you must have the
courage to take up the challenge even though some uncertainty remains.”
Capital Market Research
7． Human resources
“Nomura underscores the fact that the development of human resources, acquisition of talented
personnel and ability to match the right talent with the most appropriate position are more formi-
dable assets than sheer capital strength.”
Autobiography ‘Tsutakatsura’
8． Emphasis on team work
“It is the management’s task to see that Nomura employees take responsibility and pride in their
work and to form a unified team under the control of branch office managers.”
Autobiography ‘Tsutakatsura’
9． Business development frame of mind
“We must have the courage to boldly follow the path of our convictions.”
10． Customer service mindset
“If you conduct your work in a mechanical manner, believing simply that your role is over once
the deal is done, there is no use in drawing on the strengths of those around you.”
Autobiography ‘Tsutakatsura’
Autobiography ‘Tsutakatsura’
Nomura Holdings, Inc. Annual Report 2004 |
1
Consolidated Financial Highlights (U.S. GAAP)
Operating Results:
Millions of yen
Millions of
U.S. dollars
2000
2001
2002
2003
2004
2004(4)
(1999.4.1〜
2000.3.31)
(2000.4.1〜
2001.3.31)
(2001.4.1〜
2002.3.31)
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
(2003.4.1〜
2004.3.31)
Revenue:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees from investment banking . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . . . . .
(Loss) gain on investments in equity securities . . . . .
Gain from changes in equity
of an affiliated company . . . . . . . . . . . . . . . . . . .
PFG entities product sales . . . . . . . . . . . . . . . . . . . .
PFG entities rental income . . . . . . . . . . . . . . . . . . .
Gain on sales of PFG entities . . . . . . . . . . . . . . . . . .
Gain (loss) on private equity investments . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes and
¥329,332
93,644
63,799
253,328
419,742
90,839
—
56,476
144,005
—
—
48,616
1,499,781
437,131
1,062,650
690,430
¥189,841
87,160
144,882
307,989
518,941
(98,968)
—
117,523
103,339
—
—
98,591
1,469,298
553,643
915,655
759,483
¥140,001
75,255
109,985
162,228
500,541
(55,860)
3,504
294,931
177,053
116,324
232,472
68,965
1,825,399
504,048
1,321,351
1,148,379
¥141,640
81,847
79,290
172,308
401,924
(41,288)
—
—
—
—
(14,391)
19,589
840,919
274,645
566,274
518,865
¥210,216
86,994
66,193
229,042
396,870
55,888
—
—
—
—
13,138
41,205
1,099,546
296,443
803,103
520,427
cumulative effect of accounting change . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
372,220
203,549
156,172
57,410
172,972
168,046
47,409
119,913
282,676
172,329
$2,018
835
635
2,199
3,809
536
—
—
—
—
126
396
10,554
2,845
7,709
4,996
2,713
1,654
Balance Sheet Data (period end):
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,410,976
14,610,868
¥1,436,428
17,146,024
¥1,604,929
17,758,273
¥1,642,328
21,169,446
¥1,785,688
29,752,966
$17,140
285,592
Return on equity (ROE)(1) . . . . . . . . . . . . . . . . . . . . .
15.3%
4.0%
11.1%
7.4%
10.1%
Per Share Data:
Net income–Basic(2) . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholders’ equity(3) . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥103.71
719.93
15.00
¥29.25
731.77
17.50
Yen
¥85.57
816.48
15.00
¥61.26
846.40
15.00
¥88.82
919.67
15.00
U.S. dollars
$0.85
8.83
0.14
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=¥104.18, the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes
by the Federal Reserve Bank of New York on March 31, 2004.
2
| Nomura Holdings, Inc. Annual Report 2004
Net revenue and Income before income taxes
and cumulative effect of accounting change
(Billions of yen)
1,500
1,000
500
0
00/3
01/3
02/3
03/3
04/3
(FY)
Net revenue
Income before income taxes and cumulative
effect of accounting change
Divisional Operating Results:
Domestic Retail:
Net income and Return on equity (ROE)
Shareholders’ equity
(Billions of yen)
250
200
150
100
50
0
00/3
01/3
02/3
03/3
04/3
(%)
25
20
15
10
5
0
(FY)
(Billions of yen)
2,000
1,500
1,000
500
0
00/3
01/3
02/3
03/3
04/3
(FY)
Net income (left)
Return on equity (ROE) (right)
Shareholders’ equity
Millions of yen
Millions of
U.S. dollars
2000
2001
2002
2003
2004
2004
(1999.4.1〜
2000.3.31)
(2000.4.1〜
2001.3.31)
(2001.4.1〜
2002.3.31)
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
(2003.4.1〜
2004.3.31)
Non-interest revenues . . . . . . . . . . . . . . . . . . . . .
¥375,276
¥260,193
¥226,156
¥246,938
¥304,035
$2,919
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . .
5,309
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
380,585
Non-interest expenses . . . . . . . . . . . . . . . . . . . . .
194,345
Income (loss) before income taxes . . . . . . . . . . . .
186,240
6,236
266,429
215,638
50,791
2,949
229,105
208,621
20,484
2,313
249,251
213,562
35,689
1,722
305,757
226,213
79,544
16
2,935
2,171
764
Global Wholesale:
Non-interest revenues . . . . . . . . . . . . . . . . . . . . .
¥404,947
¥487,644
¥385,430
¥196,675
¥290,845
$2,792
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . .
(3,488)
(24,839)
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
401,459
Non-interest expenses . . . . . . . . . . . . . . . . . . . . .
198,117
Income (loss) before income taxes . . . . . . . . . . . .
203,342
462,805
210,062
252,743
54,505
439,935
248,657
191,278
101,794
298,469
207,436
91,033
74,891
365,736
227,227
138,509
719
3,511
2,182
1,329
Asset Management:
Non-interest revenues . . . . . . . . . . . . . . . . . . . . .
¥2,154
¥58,237
¥46,840
¥34,828
¥34,300
$329
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . .
432
2,586
2,751
Income (loss) before income taxes . . . . . . . . . . . .
(165)
1,810
60,047
39,537
20,510
367
47,207
37,031
10,176
2,232
37,060
33,866
3,194
1,657
35,957
37,004
(1,047)
16
345
355
(10)
* The results of the fiscal year ended March 31, 2000 does not include those of Nomura Asset Management, because it was consolidated effective March 31, 2000.
Japanese Stock Market Data
2000
2001
2002
2003
2004
TOPIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,705.94
1,277.27
1,060.19
788.00
1,179.23
Year-on-Year increase (decrease) . . . . . . . . . . . . . . . . .
34.6%
(25.1%)
(17.0%)
(25.7%)
49.6%
Nikkei225 (Nikkei Stock Average) . . . . . . . . . . . . . . .
20,337.32
12,999.70
11,024.94
7,972.71
11,715.39
Year-on-Year increase (decrease) . . . . . . . . . . . . . . . . .
28.4%
(36.1%)
(15.2%)
(27.7%)
46.9%
Tokyo Stock Exchange 1st Section Data
Trading Volume (Millions of shares) . . . . . . . . . . . .
163,675
167,734
206,250
209,720
344,367
Trading Value (Billions of yen) . . . . . . . . . . . . . . . .
¥228,311
¥212,993
¥199,046
¥179,346
¥284,034
Nomura Holdings, Inc. Annual Report 2004 |
3
Nobuyuki Koga
President & CEO
To Our Shareholders and Customers
Japan’s economy is moving beyond the stage where its recovery was the
subject of skeptical debate and into a phase of sustainable growth. For
Nomura Group, this offers an unprecedented array of business opportuni-
ties. By bridging corporations undergoing continuous restructuring with
individuals shifting their financial assets to risk assets, Nomura Holdings,
Inc. (NHI), is advancing toward the realization of its group management
goal, which is to become a globally competitive Japanese financial servic-
es group.
Business environment and results
For two consecutive years, Japan’s real GDP growth rate has exceeded 2%.
One year ago, the Japanese economy stood at the crossroads of recovery and a
slowdown in momentum, but now our view is that it has entered a phase of
sustainable growth. The main forces fueling this growth are the recovery in the
global economy, particularly in Asia, the progress in corporate restructuring,
and the shift of individual financial assets to risk assets.
The macroeconomy is gaining further strength through the recent increase in
private capital investment in tandem with the expansion of exports. At the same
time, the process of corporate restructuring itself has entered a new and different
phase. Defensive restructuring moves such as personnel reductions and with-
drawals from unprofitable lines of business have helped to improve profitability
at many corporations. These corporations are now focusing management
resources on making a transition to progressive restructuring, entering business-
es where they are truly competitive and have strong future prospects.
Until recently, individuals in Japan have shown a strong tendency to keep
their financial assets in cash and bank deposits, but we are beginning to discern
a trend toward shifting these assets to risk assets. This is evident from the
increase in the stockholding ratio of individual investors and the growth in the
outstanding balances of stock investment trusts. Tax reforms have also been
encouraging this trend. For example, last year, while only a temporary measure,
the tax rate on capital gains on and dividends of listed stocks was lowered.
In January 2004, the tax rate on dividends of public stock investment trusts
4
| Nomura Holdings, Inc. Annual Report 2004
was also reduced. In addition, individuals are examining a wide variety of invest-
ment opportunities and shifting their assets to seek the right balance of risk and
return. Such investment behavior is manifest in the steady increase in popularity
of foreign currency bonds.
Responding to these changes in our business environment, through the capi-
tal markets we have been able to offer our customers various solutions and
investment opportunities, expanding and stabilizing our own profit opportuni-
ties in the process by flexibly changing our revenue sources.
As a result, under accounting principles generally accepted in the United States
(U.S. GAAP), for the fiscal year ended March 2004, NHI posted consolidated
net revenue of ¥803.1 billion, up 42% from a year earlier, and income before
income taxes of ¥282.7 billion, up 496%. Net income was ¥172.3 billion, up
44% compared with the previous fiscal year. If the cumulative effect of account-
ing changes were excluded, however, the gain would be 1,604%. Shareholders’
equity increased to ¥1.8 trillion as of the end of March 2004 from ¥1.6 trillion a
year earlier, and return on equity (ROE) rose to 10.1% from 7.4%.
Broken down by division, Domestic Retail posted income before income
taxes of ¥79.5 billion, an increase of 123% from a year earlier. This division,
which handles a wide variety of products, including stocks, investment trusts,
foreign currency bonds and Japanese government bonds (JGBs) for individual
investors, has now increased its client assets to a level exceeding the previous
peak during the bubble era, and it has also greatly expanded its customer base.
In Global Wholesale, income before income taxes totaled ¥138.5 billion. We
captured the largest market share of initial public offerings (IPOs), public offer-
ings, convertible bonds (CBs) and euro-yen bonds demonstrating the powerful
synergy of our global network and solid customer base.
Asset Management posted a loss of ¥1.0 billion due to a decline in asset man-
agement fees and ¥2.8 billion in special charges related to Nomura Asset
Management’s withdrawal from the Japan Securities Dealers Employees Pension
Fund. However, Nomura Asset Management solidified the foundations of its busi-
ness, as assets under management grew by ¥1.4 trillion, after hitting a trough at the
end of March 2003.
Nomura Holdings, Inc. Annual Report 2004 |
5
Group vision and divisional strategies
that transcends organizational structures, and to promote our
Nomura Group’s vision is to enhance its position as a globally
Japan-focused globalization, that is, to use the Japanese market
competitive Japanese financial services group. In quantitative
as a pivot in the process of our global expansion. In terms of
terms, we are aiming to secure an average ROE of 10-15% in
our response to changing markets, to further strengthen the sig-
the medium- to long-term. Amid the rapid changes in the eco-
nificant experience we have already built up in securitization,
nomic environment, we must successfully deal with three key
asset finance and derivatives trading, we have started a new
issues: broadening our client base, cooperating across division-
business line, Global Markets, which has combined fixed
al lines to draw upon our collective Group strengths, and
income and equity trading functions along with syndicate func-
responding as swiftly as possible to changes.
tions. Similarly, in Nomura Securities’ Capital Market
The goals of Domestic Retail are to broaden our customer
Department, we have combined the stock and bond underwrit-
base and to offer high-quality financial services. Our strategy to
ing functions that were previously separated there. This will
achieve this is to make further progress in our unique strategy
help our efforts in securitization and asset finance as well as
of “Core Value Formation.” To broaden our customer base, we
strengthen our ability both to trade and to underwrite hybrid
have long aimed to increase client assets. We have strengthened
securities that share some of the characteristics of both stocks
our consulting services in areas such as special accounts for
and bonds, such as convertible bonds and preferred stocks.
stocks, which have become popular as a result of securities tax
Collaborations that transcend organizational structures will
reform. We have also offered a wide variety of products, includ-
synergize the integrated strength of our organization. Through
ing foreign currency bonds and JGBs for individual investors.
close cooperation between Domestic Retail and Global
As a result, retail client assets grew to ¥35.2 trillion as of the
Wholesale, we were able to achieve robust foreign currency
end of March 2004, up 30% from ¥27.1 trillion a year earlier.
bond sales of ¥2.0 trillion in the fiscal year ended March 2004.
To provide high-quality financial services, we have long had a
We also sold stocks to a wide variety of individual investors,
system of specialized channels for each customer segment to
including domestic public offerings aimed at helping corpora-
accumulate expertise on how best to serve the needs of each
tions expand their individual shareholder base, and China-relat-
segment. In November 2003, we started the Hotto Direct
ed offerings in Japan. In terms of progress with our Japan-
Service Department, to serve asset builders. In April 2004, we
focused globalization, we have been maximizing the strengths
formed the Financial Management Division to serve wealthy
of our global network, and we have commanded top shares in
and affluent investors through a structure that transcends the
underwriting secondary public offerings of Japanese blue-chip
concepts of wholesale and retail. We have also enhanced our
stocks, IPOs, CBs and euro-yen bonds. We have also acted as
financial advisor (FA) capabilities.
M&A advisor in several major deals.
The goal of Global Wholesale is to play a key role in our
The goals of Asset Management are to expand assets under
plan to secure a position as a globally competitive financial serv-
management in the asset management business overall and to
ices group. Our strategies for achieving this are to respond
expand our products and the number of client companies that
appropriately to market changes, to encourage collaboration
entrust us with administration and management in the defined
6
| Nomura Holdings, Inc. Annual Report 2004
contribution pension plan business. Our strategy is to strength-
tomer base and, at the same time, strengthen cooperation
en cooperation with other divisions to develop the full strength
among our three divisions and bring the full power of Nomura
of Nomura Group, to increase value-added in investment serv-
Group to fruition.
ices, to strengthen marketing, and to improve our consulting
and investment education services. Nomura Asset
Corporate governance system
Management, the heart of the division, has been steadily
At the June 2003 General Meeting of Shareholders, NHI and
engaged in improving value-added in investment services. It has
other domestic Group companies amended their articles of
already taken many concrete policy steps, including integrating
incorporation to adopt the Committee System. This change
the investment decision-making process, establishing a team-
had three aims: to separate execution and oversight functions,
based management system, and widening its research coverage
to transfer to executive officers the power to execute business
with a strengthened pool of analysts. Looking forward, out-
activities and to increase management transparency.
standing issues in the improvement of value-added in invest-
Under the Committee System, Junichi Ujiie serves as
ment services include strengthening the process for continual
Chairman of the Board of Directors of NHI and not as CEO.
provision of added value in investment management and
Outside directors form the majority of each committee, and
enhancing our investment management capacity. At the same
the Nomination Committee, Audit Committee and
time, to strengthen its marketing efforts, Nomura Asset
Compensation Committee are also headed by Board members
Management has been updating its client service system and
other than the CEO. The members of the Audit Committee
strengthening its support structure for sales of existing fund
all fulfill the requirements of independent directors as defined
products, while working to develop new products that fulfill
under the Sarbanes-Oxley Act of 2002.
clients’ needs. As banks have been increasing their retail sales of
investment trusts, we intend to expand our product lines and
Nomura’s raison d’eˆ tre
increase assets under management by leveraging our investment
In my view, the role of Nomura Group is to help expand capi-
expertise at NCRAM (Nomura Corporate Research & Asset
tal markets by acting as a bridge between individual investors
Management), Nomura BlackRock and elsewhere. With regard
and Japanese corporations that are still in the process of restruc-
to our defined contribution pension plan business, we aim to
turing, and in so doing, to contribute to the sustainable devel-
increase the number of client companies and expand our prod-
opment of the Japanese economy. As Japanese corporations
uct line by further increasing our competitiveness in consulting
increasingly engage in proactive restructuring, the sustainable
and investment education services, and promoting cooperation
growth of the Japanese economy is dependent on making the
between Asset Management and other divisions.
financial assets of individuals, which are now largely held in
Nomura Group’s mother market has been recovering rapid-
cash and bank deposits, available to corporations as risk capital.
ly. Given this environment, now is the time to strengthen our
There is an increasingly important role for Nomura Group to
Japan-focused global business and to increase our presence in
act as a bridge between these two poles. I sincerely hope we
global markets. To do this, we must further solidify our cus-
may continue to rely on your help and support in this effort.
Nobuyuki Koga
President & Chief Executive Officer
July 2004
Nomura Holdings, Inc. Annual Report 2004 |
7
Hiroshi Toda
Deputy President & COO
Message from the COO
My role as COO (Chief Operating Officer) is to organically coordinate the
business strategies of three divisions (Domestic Retail, Global Wholesale
and Asset Management) with the efforts of Nomura Group to achieve its
business goals.
I have a strong feeling now that the tide is turning for the Japanese economy.
Corporate earnings are beginning to show a full-fledged recovery, and factors
negatively influencing supply and demand in the stock market, including the
large-scale unwinding of cross-shareholdings, have mostly weakened. Japan’s
stock market and other capital markets are starting to regain their true functions
and appeal. In these circumstances, a great change may come about on both the
supply side and the demand side of financing. For corporations, as borrowers,
the funding needs for capital investment and corporate restructuring are grow-
ing visibly. For investors, on the other hand, as providers of funds, due to recent
market recovery, securities tax reform as well as the end of the full guarantee on
bank deposits slated for April 2005, there are signs that individual investors’
financial assets will begin to flow strongly into the securities markets.
My role as COO is to provide direction to ensure that the execution of the
business strategies of our three divisions is closely coordinated with the business
goals of Nomura Group as a whole. Our management goal of consolidating our
position as a globally competitive Japanese financial services group will require a
strengthening of the international position of Japan itself, as our mother mar-
ket. In that sense, the current changes, which appear to be effective in the cre-
ation of sustained growth in the Japanese economy, represent an enormous
business opportunity for us in the capital markets, an area in which naturally we
expect our involvement to grow. Cooperation among our three divisions can
help to realize major synergies. By bringing the collective strengths of Nomura
Group to fruition, we aspire to help create a virtuous cycle of sustainable growth
both for ourselves at Nomura and for Japan.
8
| Nomura Holdings, Inc. Annual Report 2004
Japan’s Securities Markets Have Entered a New Growth Phase
1. Changes in the economic environment
(1) Sustainable growth in the Japanese economy
Sustainable Economic Growth in Japan
In our view, Japan’s economy has entered a phase of sus-
Economic Recovery
Sustainable Economic Growth
tainable growth. In the fiscal year ended March 2004,
Japan’s GDP growth rate accelerated substantially to 3.2%
from 1.2% the year before, for which exports and private
capital investment were the main drivers. One major factor
behind the growth in exports was China. Exports to China
doubled between 2000 and 2003, becoming a new growth
GDP Growth (%)
03/3
1.2
04/3
3.2
05/3 (f)
3.4
(FY)
Key Drivers
Recovery of Macroeconomy
engine for external demand. Capital investment has
Progress in Corporate Restructuring
increased particularly in the field of digital products, where
Shift of Individual Financial Assets to Risk Assets
Japanese companies enjoy a comparative advantage. The
Source: Nomura
scope of the market in digital products, including DVD
players, digital cameras, plasma TVs and LCD TVs, is
growing rapidly on a global scale.
Breakdown of Japanese Real GDP
(QoQ % change, annualized)
12
10
8
6
4
2
0
-2
-4
-6
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
2002
Private Consumption
Exports (Gross)
2003
Private Capital Investment
Other Components
Private Inventory
Real GDP
1Q
2004
(CY)
Source: Nomura’ using Economic and Social Research Institute (ESRI), Cabinet Office, Government of Japan
Nomura Holdings, Inc. Annual Report 2004 |
9
(2) Progress in corporate restructuring
The number of publicly disclosed mergers and acquisitions
between Japanese companies rose to 1,719 in 2003, more
than five times the level of 1995. Particularly in M&A deals
where both parties were Japanese, a large portion of these
transactions were for the purpose of strengthening a compa-
ny’s main line of business, whether through group restruc-
turing or by strengthening an existing business area.
Through restructuring, Japanese companies have been both
strengthening their balance sheets and raising profitability.
The Nomura Securities Financial & Economic Research
Center estimates that in the fiscal year ending March 2005,
ROE will rise to 8.9%, returning to a level last seen during
the bubble era.
Free cash flow turned negative in the fiscal year ended
March 1990 and has been negative ever since, except for a
brief period in the fiscal year ended March 2001 due to the
so-called IT bubble. Now, however, for the second consec-
utive year we are expecting to see record levels of positive
cash flow since the 1980s. This demonstrates that compa-
nies are beginning to generate for themselves the funds nec-
essary for investment ahead of further growth, preparing
basic financial conditions to create a virtuous financial cycle
where corporate business activities are entering a sustain-
able expansion phase.
M&A Deals between Domestic Companies
(Deals)
2,000
1,500
1,000
500
0
95
96
97
98
99
00
01
02
03
(CY)
Entering new markets
Group restructuring
Strengthening existing business
Other
Note: Calculated on calendar year basis, excluding financials
Source: Nomura, using newspaper and magazine data
D/E Ratio & ROE (NOMURA400, excluding financials)
(%)
200
180
160
140
120
100
15
10
5
0
105%
8.9%
80
85
90
95
00
04
(FY)
D/E ratio (%)
ROE (%)
Source: Nomura (as of June 25, 2004)
Free Cash Flow (NOMURA400, excluding financials)
(Trillions of yen)
(Trillions of yen)
30
25
20
15
10
5
0
-5
-10
-15
20
15
10
5
0
-5
-10
(FY)
80
85
90
95
00
03
(e)
Cashflow （left: A）
CAPEX （left: B）
Free Cash Flow（right: A-B）
Note: FY80–FY84: non-consolidated base; from FY85: consolidated base.
Cashflow: Net income + depreciation costs
CAPEX = Increase in tangible assets + depreciation costs (to FY99)
= Announced (FY00–FY01)
= Nikkei Company Database (FY02)
= Nomura estimate (FY03)
Source: Nomura
10 | Nomura Holdings, Inc. Annual Report 2004
2. Changes surrounding securities markets
(1) Shift in individuals’ financial assets
While the outlook for the macroeconomy and corporate
profitability are bright, there are limitations on the supply
of funds available to support growth momentum for corpo-
rations as long as funding is overly dependent on banks,
which has traditionally been the case. This will lead to ever
greater demands and expectations of the capital markets. In
other words, the key to sustainable economic growth in the
near future lies in how much of the approximately ¥1,400
trillion in individual financial assets will contribute to cor-
porate financing activities through the capital markets.
Comparison of Individual Financial Assets, Japan and the U.S.
Japan
Total ¥1,410 trillion (2003.12)
US
Total US$32 trillion (2003.12)
Investment Trusts
Bonds
Equities
2%
2%
7%
Securities Assets
Total
11%
Investment Trusts 13%
Bonds
Equities
7%
32%
Securities Assets
Total
52%
Insurance &
Pensions
28%
Cash &
Deposits
56%
Cash & Deposits
12%
Insurance &
Pensions
30%
Source: Bank of Japan, Flow of Funds Accounts data, FRB “Flow of funds accounts of the United States”
Comparing individual financial assets in Japan and the
Stocks Held by Individual Investors
U.S., we see that marketable securities make up 52% in the
U.S. but only 11% in Japan. Still, there is a clearly visible
shift emerging, and individual financial assets are starting
to move from cash and deposits into risk assets. The ratio
of individual investors who hold stocks had fallen quite
steadily till it bottomed out at 18% in 1999. Although the
increase is gradual, the recovery trend is certain. As for the
shift of individual financial assets to risk assets, this can also
be seen in individual holdings of foreign financial assets. At
the end of December 2003, individuals’ holdings of foreign
(%)
30
25
20
15
(Yen)
40,000
30,000
20,000
10,000
0
80
85
90
95
00
04
(FY)
Nikkei Stock Average
Ratio of Individual Investors who hold Stocks (Value base)
* For the companies listed on either of the following stock exchanges: Tokyo, Osaka, Nagoya,
Fukuoka, and Sapporo.
securities and foreign currency deposits totaled ¥16.4 tril-
Source: Nomura, using Tokyo Stock Exchange’s data
lion, having tripled from the ¥5.4 trillion as of the end of
Investments in Foreign Financial Assets by Individuals*
(Trillions of yen)
(Yen/US$)
1998.
¥16.4 trillion
20
15
10
5
0
¥5.4 trillion
97
98
99
00
01
02
03
Investments in Foreign Financial Assets by Individuals
Yen/US$ (right)
* Total foreign currency deposits and foreign securities investments
Source: Nomura, using Bank of Japan, Flow of Funds Accounts data
150
125
100
75
50
(CY)
Nomura Holdings, Inc. Annual Report 2004 |
11
(2) Securities tax reform
Tax breaks on stock investment trusts and other products
Tax reform has also been progressing. In addition to divi-
dends on stocks, from January 2004, while only for a limit-
ed period, the tax rate for dividends on stock investment
trusts has been lowered to 10%. From this we can see that
the government is seriously trying to build infrastructure to
use its tax policy to encourage individual financial assets to
flow into the stock market.
In addition to the tax incentives, April 2005 will mark
the end of the full government guarantee on bank
deposits, which is expected to help accelerate the shift of
funds away from bank deposits and into other kinds of
financial products.
The role of securities firms, including Nomura Group, is
becoming increasingly important in terms of acting as a cat-
alyst to organically bridge these two trends—the recovery of
corporate profitability and the shift of individual financial
assets into risk assets—and in so doing, to build a large and
sustainable virtuous cycle.
• Tax rate for capital gains on listed stocks
(Jan 1, 2003 – Dec 31, 2007)
* Tax rate for annual capital gains lowered uniformly to 10%
* Losses may be deferred up to three years by filing income tax returns
• Tax rate for dividends of listed stocks
(Apr 1, 2003 – Mar 31, 2008)
* Uniform withholding tax of 10% regardless of dividend amount
(no need for self-assessed taxation)
20％
10％
20％
10％
• Tax rate on dividends of public stock investment trusts
(Jan 1, 2004 – Mar 31, 2008)
20％
10％
* Uniform withholding tax of 10% regardless of dividend amount
(no need for self-assessed taxation)
* From 2004, capital gains may be netted against capital gains on stocks by filing income tax returns
Capital gains
on listed stocks
Jan. 2003
10％ tax break
Jan. 2008
20%
Dividends of
listed stocks
Apr. 2003
Apr. 2008
10％ tax break (withholding tax)
20%
No need for self-assessed taxation regardless of amount
Dividends of public
stock investment
trusts
Jan. 2004
Apr. 2008
10％ tax break (withholding tax)
20%
No need for self-assessed taxation regardless of amount
Capital gains may be netted against capital gains on stocks
Note: The integration of interest tax is also being discussed by the Government Tax Commission
(June 15, 2004), an advisory body to the Prime Minister. The discussion on the integration of
interest tax also includes tax on the savings and deposit interest.
12 | Nomura Holdings, Inc. Annual Report 2004
Business Outline
Contents
Business Portfolio
Domestic Retail
Global Wholesale
Asset Management
Research
14
16
24
32
38
Nomura Holdings, Inc. Annual Report 2004 |
13
Business Portfolio
Nomura Group’s business portfolio is made up of Domestic Retail, Global Wholesale and Asset Management divi-
sions. The strength of Nomura Group is in tapping its collective strength based on the high level of expertise in each
division. Domestic Retail is responsible for meeting customers’ diverse investment needs through precise and accu-
rately targeted consultations, and for supplying the products needed. Global Wholesale works with domestic and for-
eign governments and companies, offering a wide range of financial solutions. Asset Management boasts sophisti-
cated product development and asset management capabilities. Nomura has established its strong presence in mar-
kets in Japan and abroad through collaboration among these three divisions.
Domestic Retail
Domestic Retail develops our investment consultation services by accurately
grasping the nature of the funds available to invest, risk tolerance and cus-
tomers’ lifestyles, analyzing the market environment and economic situation,
and offering sound advice on asset-building over the long term. In addition,
we are ready to recommend appropriate products and assemble a portfolio
quickly from a variety of products including stocks, bonds, investment trusts
and variable-annuity pension insurance, based on the values that each of our
customers prizes most highly in his or her financial asset management.
Global Wholesale
Global Wholesale is made up of three business lines: Global Markets,
Investment Banking and Merchant Banking. The umbrella concept of
Global Markets provides a wide range of market capabilities, including fixed-
income (bonds and others) and equities (stocks and others), as well as hybrid
products and derivatives. By using this unique and flexible system, as well as
our global network that extends to 28 countries, we offer a wide range of
financial solutions through capital markets, including sales and trading oper-
ations, underwriting, M&A and financial advisory and merchant banking.
Asset Management
Domestic Retail
(Millions of yen)
80,000
60,000
40,000
20,000
0
1Q
3Q
2Q
FY03/3
Net revenue
4Q
Global Wholesale
(Millions of yen)
120,000
80,000
40,000
0
1Q
2Q 3Q
FY03/3
Net revenue
4Q
Asset Management
(Millions of yen)
1Q
3Q
2Q
FY04/3
Income before income taxes
4Q
1Q
3Q
2Q
FY04/3
Income before income taxes
4Q
Asset Management supplies a diverse range of investment trust products and
12,000
investment advisory services to our clients, such as pension funds, leveraging
our asset management and product development strengths derived from our
global research and leading-edge financial technology. We also provide a
comprehensive service in the field of defined contribution pension plans,
ranging from support for system introduction to product supply.
8,000
4,000
0
-4,000
14 | Nomura Holdings, Inc. Annual Report 2004
1Q
3Q
2Q
FY03/3
Net revenue
4Q
1Q
2Q 3Q
FY04/3
Income before income taxes
4Q
Market shares (April 2003~March 2004)
Primary Market Share Data
Japanese IPO*
Japanese PO*
CB*
27%
33%
28%
Nomura
Others
Nomura
Others
Nomura
Others
Japanese Straight Bonds*
Euro-Yen Bonds*
JGBs for individual investors
(Total 1st to 6th issue)**
19%
31%
29%
Nomura
Others
Nomura
Others
Sources: * Thomson Financial Bookrunner League Tables (Value Base)
** Nomura (Value Base)
Nomura
Others
Secondary Market Share Data
Individual Equity Agency Transactions
Off-floor/Off-exchange Equity Trading
Secondary Bond Trading
10%
16%
16%
Nomura
Others
Sources:Nomura (Value Base)
Nomura
Others
Nomura
Others
Nomura Holdings, Inc. Annual Report 2004 | 15
Domestic Retail
Kenichi Watanabe
Senior Managing Director
Head of Domestic Retail
Domestic Retail promotes our basic strategy, known as “Core Value Formation,” giving the most appropriate advice
and offering optimal products based on the market environment and the economic situation taking into account cus-
tomers’ core values, having evaluated the nature of funds available to invest, risk tolerance and lifestyle.
Business Results
The number of stock-holding accounts grew to 1.4 million,
In the fiscal year ended March 2004, Domestic Retail
a rise of 67,000 from the year before.
earned net revenue of ¥305.8 billion, up 23% from ¥249.3
By offering a variety of products in this way, based on
billion the year before. Income before income taxes
customers’ core values, we were able to record client assets,
increased 123%, to ¥79.5 billion from ¥35.7 billion. Both
including those from regional financial institutions, totaling
stock brokerage commissions and investment trust distribu-
¥40.8 trillion as of the end of March 2004, up 30% from a
tion fees recovered, and the placement and distribution of
year earlier, surpassing the peak levels of the bubble era of
foreign currency bonds and Japanese government bonds
the late 1980s.
(JGBs) for individual investors were also strong. Individual
investors’ interest in these bonds was particularly strong,
and we captured the largest distribution share of the No. 4
through No. 6 JGB issues, which were particularly large.
Domestic Retail Division Business Results
2000
2001
2002
2003
2004
Years ended March 31
Domestic Retail:
Non-interest revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥375,276
¥260,193
¥226,156
¥246,938
¥304,035
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,309
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
380,585
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
194,345
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥186,240
6,236
266,429
215,638
¥50,791
2,949
229,105
208,621
¥20,484
2,313
249,251
213,562
¥35,689
1,722
305,757
226,213
¥79,544
(Millions of yen)
16 | Nomura Holdings, Inc. Annual Report 2004
Net Revenue and Income Before Income Taxes
Revenue Breakdown
(Millions of yen)
400,000
300,000
200,000
100,000
0
00/3
01/3
02/3
03/3
04/3
(FY)
Net revenue
Income before income taxes
(%)
100
80
60
40
20
0
0%
24%
13%
3%
14%
15%
2%
8%
16%
35%
28%
40%
Variable Annuity Insurance
Investment Trusts (administration fees)
Investment Trusts (distribution fees and others)
Equities
Bonds
28%
41%
34%
02/3
03/3
04/3
(FY)
Key Issues and policies for the fiscal year ending
cial services of the highest quality.
March 2005
To serve the affluent investors, we have appointed an
The goals of Domestic Retail are to broaden our customer
executive officer heading financial advisors, and we have
base and to offer high-quality financial services. To achieve
set up an organizational system for training and developing
these, we must make further progress in Core Value
these financial advisors at our branch offices nationwide.
Formation. Core value refers to the things that our cus-
Furthermore, for asset builders, primarily salaried work-
tomers most highly value, and perceive to be worth paying
ers, we have set up the Hotto Direct Service Department
for in terms of financial asset management. Taking into
in addition to Nomura Home Trade to allow trading at
consideration the fact that core values are different from
nights and weekends, by phone or Internet.
customer to customer, we provide professional financial
As a new experiment, we have set up our first cashless
services through specialized channels for different customer
branch which does not handle cash settlements. This
segments, which enables us to respond effectively to the
branch specializes in planning and consultations, enabling
needs of our customers. We have also taken the following
us to offer high value-added financial services that better
strategic measures to respond to increasingly diversified
match our customers’ needs.
and sophisticated customer needs.
Through these kinds of innovations, we aim to broaden
To serve the wealthy investors, we established the
our customer base further by discerning the core values of
Financial Management Division, going beyond the con-
each and every customer.
cepts of retail and wholesale to offer these customers finan-
Odawara branch office entrance
Nomura Holdings, Inc. Annual Report 2004 | 17
Expanding our customer base
Domestic Retail aims to offer a wide variety of products suitable for all customers, from those who prefer low-risk,
low-return investment to those with a taste for high risk and high returns. We aim to grow our customer base by
bridging each customer’s core values with the appropriate investment opportunities in the capital markets through
our optimal consultations.
Client assets rise to record levels
Growth in the number of stock-holding accounts and
In the Japanese stock market, the Nikkei Stock Average
retail client assets in equities
still stands at only about one-third of its peak in 1989, but
We have succeeded in steadily increasing the number of
the value of Domestic Retail’s client assets (including
stock-holding accounts to broaden our customer base for
financial institutions) has now surpassed the previous peak
equity products, even during the long period of stock mar-
set around that time, reaching ¥40.8 trillion as of the end
ket weakness. As a result, the number of stock-holding
of March 2004. Until April 2003 the stock market
accounts grew to 1.37 million as of the end of March
remained in a slump, but we were able to minimize the
2004, an increase of 33% from a year earlier. Retail client
decline in client assets by offering various products includ-
assets in equities totaled ¥16.0 trillion, recovering nearly to
ing domestic and foreign bonds and investment trusts.
the peak of ¥16.3 trillion seen in the IT bubble era (when
Since the stock market began to rebound, client assets have
the Nikkei Stock Average stood at about ¥20,000). The
been growing at a healthy pace.
special accounts for stocks that we started to offer in
October 2002 in relation to securities tax reform num-
bered 1.1 million as of the end of March 2004.
Client Assets (Domestic Retail, Including Financial institutions)
(Trillions of yen)
40.8 trillion yen
37.2 trillion yen
40
30
20
10
0
(Yen)
40,000
30,000
1,400
20,000
1,200
10,000
1,000
0
800
86/3
91/3
96/3
01/3
04/3
(FY)
Client Assets ( ) (left)
2H
1H
Nikkei Stock Average (right)
Stock-Holding Accounts and Retail Equity Assets
(Thousands of accounts)
(Trillions of yen)
1,600
16.3 trillion yen
20,337 yen
16.0 trillion yen
7,831 yen
20
15
10
5
0
18 | Nomura Holdings, Inc. Annual Report 2004
Stock-Holding Accounts (left)
Retail Equity Assets (right)
Nikkei Stock Average
3Q 4Q
00/3
1Q 2Q 3Q
4Q
1Q 2Q 3Q
4Q 1Q 2Q 3Q
4Q 1Q 2Q 3Q
4Q
01/3
02/3
03/3
04/3
(FY)
In sales of JGBs to individual investors, Nomura had the
Steady growth of assets in foreign currency bonds
top share among all financial institutions
Assets held in foreign currency bonds grew to ¥3.7 trillion
Japanese government bonds for individuals were first
as of the end of March 2004, more than double the level
launched in 2003 and are an extremely effective tool for
of March 2001. Currency movements, which are the
stimulating the shift of individual financial assets from
biggest risk with such bonds, were volatile, but investors
cash and bank deposits to securities because they are high-
remained strongly attracted by the gap between domestic
ly safe and liquid. Also, their variable interest rates, which
and foreign interest rates, as well as the need for interna-
are adjusted every half-year, will rise if long-term interest
tional portfolio diversification. We were able to boost the
rates rise. We have been explaining to many customers the
balance of client assets held in foreign currency bonds by
merits of this product because we believe individual
proactively responding to customers’ medium- to long-
investors’ needs for JGBs will remain strong even if the
term investment needs.
prospect of economic recovery sparks expectations of a
rise in interest rates. As a result, of the ¥4.8 trillion of
these bonds that were sold from issue No. 1 in March
2003 to issue No. 6 in April 2004, we captured an overall
share of 29%, more than any other financial institution
including Japan Post.
JGBs for Individual Investors
(Billions of yen)
Retail Foreign Currency Bond Assets
(Trillions of yen)
(Yen/U.S. dollar)
500
400
300
200
100
0
1st
32%
1st
31%
1st
37%
2nd
10%
2nd
18%
2nd
15%
1st
Issue
2nd
Issue
3rd
Issue
4th
Issue
5th
Issue
6th
Issue
Sales
Sales Share
4
3
2
1
0
3.7 trillion yen
200
150
100
50
1.6 trillion yen
00/3
01/3
02/3
03/3
04/3
(FY)
0
Bond Assets
(left)
Yen/U.S. Dollar Exchange Rate
(right)
Nomura Holdings, Inc. Annual Report 2004 | 19
The evolution of Core Value Formation
In order for the Core Value Formation strategy to meet the needs of a variety customers, it must be constantly evolv-
ing. In November 2003, we established the Hotto Direct Service Department to serve the needs of asset builders, and
as part of our corporate reorganization in April 2004, we established the Financial Management Division to serve
wealthy investors through a structure that transcends the concepts of wholesale and retail. We have also strength-
ened our financial advisor (FA) system.
Different operating systems for different customer
Financial Advisor Section and Saving Advisor Section
segments
The Financial Advisor (FA) Section and Saving Advisor
Domestic Retail works with the idea of customer segmenta-
(SA) Section are, in principle, staffed by the employees who
tion based on the assumed personal financial assets. Each
have a long history in a given local community and have
sales channel is clearly targeted at a particular type of cus-
developed strong relationships of trust with their customers.
tomer, offering the best kind of organization to respond to
They help in expanding our business by advising senior citi-
the core values of each customer segment.
zens on life planning and responding to the resultant
Financial Consulting Section
demand for investment consultation. FA staff, in particular,
have been specially trained in sophisticated investment con-
The Financial Consulting Section targets wealthy investors,
sultation techniques to offer comprehensive consultation
who require the highest-quality advice, and offers them
services to wealthy and affluent investors. SA staff, mean-
comprehensive asset consulting services, ranging from
while, work primarily with bonds, investment trusts and
investment consultation and safeguarding to inheritance,
other savings-type products, aiming to increase client assets
thus working to increase the individual assets of our cus-
among a broader group of affluent investors.
tomers. This section is made up of employees with a partic-
ularly sophisticated knowledge of tax treatment, a wide vari-
ety of financial products and portfolio risk diversification to
help customers manage their assets.
Further Develop Core Value Formation Strategy
Wealthy Investors / Affluent Investors
Establish Financial Management Division
Open Cashless Branch Office
Strengthen Financial Advisor (FA) Section
Asset Builders
Open Hotto Direct Service Department
WM Section
Financial Consulting
Section
FA Section
SA Section
Customer
Service Section
Hotto Direct Service Dept.
20 | Nomura Holdings, Inc. Annual Report 2004
WM: Wealth Management
FA:
SA:
Financial Advisor
Saving Advisor
Customer Service Section
hours but also on Saturdays and Sundays, as well as on
About 20,000 to 30,000 customers visit our main office and
weekday nights. This department also handles Internet trad-
branch offices each day, for a total of about 6 million visits a
ing, allowing customers to take advantage of our services at
year. The Customer Service Section deals with such cus-
their own pace. This service makes it much more conven-
tomers on a daily basis and is responsible for opening about
ient for many salaried workers, who might find it hard to
70% of new accounts. The section helps clarify customer
visit our offices during normal working hours. We think
needs, responds directly to requests and offers reassuring
that this channel will also help us broaden our customer
advice when needed. For asset builders, they recommend the
base.
convenience of IT-based services, while for affluent investors
they emphasize face-to-face services, investment seminar
Financial Management Division
planning and telephone marketing. In these ways, the
In April 2004, we also established the Financial
Customer Service Section is striving to efficiently expand
Management Division, which is designed to serve wealthy
our customer base.
A variety of innovative measures
investors through a structure that transcends the concepts of
wholesale and retail, in order to reach a new investor class.
To make it possible for this group to act with flexibility, we
To expand our customer base and increase client assets,
made it a fully independent division.
we have been fortifying our past efforts, but we must also
broaden our customer interface based on new ideas. To
that end, we have implemented the following measures.
Establishing the Hotto Direct Service Department
In November 2003, we merged our call centers and Internet
services to form a new channel, the Hotto Direct Service
Department. The services provided by our highly trained
operators are available not only during normal business
Number of Newly Opened Accounts
(Monthly Average)
(Thousands of accounts)
40
30
20
10
0
00/3
01/3
02/3
03/3
04/3 (FY)
Nomura Holdings, Inc. Annual Report 2004 | 21
Strengthening financial advisors (FAs)
of our efforts to offer our customers better services.
Our financial advisors, with their strong ties to their com-
Streamlining the functions of branch offices allows us to
munities and extended interaction with customers over
offer a truly first-class, personalized atmosphere in which
time, represent in some ways the cornerstone of our efforts
our customers feel they are getting the very best in invest-
to expand our customer base. Our FA staff act as an indis-
ment consultation.
pensable part of our strategy to build up our customer base
over the medium- to long-term, and it is important for us
Improving efficiency via IT
to offer them our constant support so that they can main-
We have recently come up with the name Nomura iT
tain a high level of expertise. We gave an executive officer
Support 21 for our services based on information technolo-
special responsibility for supervising FAs and will strive to
gy, including Nomura Home Trade, Nomura Telephone
further enhance our educational programs such as FA train-
Answer, Nomura Stock Price Dial and our ATM coopera-
ing with over a five-year and even a 10-year time horizon.
tive agreements with various financial institutions. Our aim
Cashless branch offices
is to make our services even more convenient for our cus-
tomers. The number of Nomura Home Trade accounts has
In March 2004, as a preliminary experiment we set up a
grown steadily to about 1.37 million, giving us the top mar-
branch that receives no cash and makes no payments. We
ket share of 28%.
set up our first cashless branch in Odawara, Kanagawa
Our IT share rose to 49% by transaction volume and to
Prefecture, and customers make cash transactions by bank
23% by transaction value in the fourth quarter of the fiscal
transfer or through ATMs at postal offices and other places.
year ended March 2004. Internet trading has been growing
The mission of the cashless branch office is to offer a wide
in proportion to the overall increase in client assets, and IT
variety of sophisticated advice on customers’ assets. With its
services are an important complement to over-the-counter
small staff, our Odawara branch specializes in investment
sales channels. Internet trading is convenient for our cus-
consultation. We think it is important that our customers
tomers, and it is also cost-effective for us, allowing us to free
feel at home and comfortable in the branch when they
up personnel for other services such as consulting, so that
come to discuss their valuable assets. Looking ahead, we will
we can offer our customers even higher-quality financial
be flexible in setting up more of this type of branch as part
services.
Nomura Home Trade (online trading accounts)
(Thousands of accounts)
1,500
1,000
500
0
00/3
01/3
02/3
03/3
04/3
(FY)
Odawara branch consulting booth
22 | Nomura Holdings, Inc. Annual Report 2004
A more active approach to the corporate employees’
investment plan market
We are entrusted with administrative services in respect of
corporate employees’ investment plans from approximately
1,400 listed companies and 1,300 unlisted companies. Our
share of this market for listed companies is 50%, making us
No. 1 in Japan. This market gives us plenty of leads for our
defined contribution pension plan business and is another
nexus for encouraging new customers among asset builders.
In the market for corporate employees’ investment plans,
Approach to Corporate Employees’ Investment Plan Market
Nomura
IT Services
Corporations
E-Plan
Investment
Information &
Services
Employees
Intra-corporate
Information
Systems
Face-to-Face
Services
Account Opening
E-Support
IT transactions are handier than branch visits, so our basic
Consultation
strategy here is to offer services that do not require face-to-
face meetings. At the same time, we strive to offer a variety
of investment information, which is available through the
computer systems of client companies (E-Plan). We are tak-
ing active approaches toward this market, which should
bring about valuable opportunities for post-retirement asset
consultations with these corporate employees.
Asset Building
ESOP Shares
Retirement Benefit
IT Share*
(%)
50
40
30
20
10
0
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
03/3
04/3
(FY)
No. of orders
Transaction value
* Ratio of domestic stock transactions executed through Nomura Home Trade or Nomura Telephone
Answer (excluding odd lot transactions) to total domestic stock transactions
Nomura Holdings, Inc. Annual Report 2004 | 23
Global Wholesale
Takashi Yanagiya
Senior Managing Director
Head of Global Wholesale
The strategies of Global Wholesale are to respond quickly to the changing market environment, to make use of
Nomura Group’s integrated strength through collaboration that transcends organizational structures, and to pursue
Japan-focused globalization. Under these strategies, we will play a key role in realizing Nomura Group’s management
goal of becoming a globally competitive Japanese financial services group.
Business Results
revenue in Equity, and a 3% gain in Investment Banking. In
Global Wholesale earned net revenue of ¥365.7 billion in
Fixed Income, distribution of foreign currency bonds to retail
the fiscal year ended March 2004, up 23% from ¥298.5 bil-
investors led to a strong flow of orders, and net revenue grew
lion the year before. Income before income taxes totaled
13%. In Merchant Banking, profit from exit transactions, as
¥138.5 billion, up 52% from ¥91.0 billion in the previous
well as valuation gains, gave us a net revenue of ¥10.7 billion.
fiscal year.
A stock market rebound on the back of a recovery in the
domestic economy, greater numbers of public offerings result-
ing from corporations’ efforts to reform shareholder structure
and the recovery in equity finance led to a 34% increase in net
Global Wholesale Division Business Results
2000
2001
2002
2003
2004
Years ended March 31
Global Wholesale:
Non-interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Merchant Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Merchant Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Merchant Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥404,947
(3,488)
401,459
96,883
169,674
134,902
—
198,117
58,578
78,296
61,243
—
¥203,342
38,305
91,378
73,659
—
¥487,644
(24,839)
462,805
78,390
241,291
143,124
—
210,062
56,171
73,617
80,274
—
¥252,743
22,219
167,674
62,850
—
¥385,430
54,505
439,935
90,753
125,076
88,349
135,757
248,657
66,739
66,475
57,406
58,037
¥191,278
24,014
58,601
30,943
77,720
¥196,675
101,794
298,469
153,966
82,025
69,125
(6,647)
207,436
76,759
65,675
56,374
8,628
¥91,033
77,207
16,350
12,751
(15,275)
¥290,845
74,891
365,736
173,994
110,153
70,869
10,720
227,227
91,810
71,494
53,703
10,220
¥138,509
82,184
38,659
17,166
500
(Millions of yen)
* Investment Banking and Merchant Banking were separated from one another in October 2001 due to an organizational change. Consequently, through the first half of the fiscal year
ended March 2002, figures for Investment Banking include those for Merchant Banking.
24 | Nomura Holdings, Inc. Annual Report 2004
Net Revenue and Income Before Income Taxes
(Millions of yen)
500,000
400,000
300,000
200,000
100,000
0
00/3
01/3
02/3
03/3
04/3
(FY)
Net revenue
Income before income taxes
Key issues and policies for the fiscal year ending
viously divided between Investment Banking and Fixed
March 2005
Income, and we have brought them together in Global
Many Japanese corporations are making efforts to be winners
Markets. This represents the establishment of an optimal sys-
on a global basis. They have been increasing their equity
tem to pursue further improvement in the quality of our servic-
financing activities that are an essential part of their aggressive
es to provide solutions for issuers in the primary market. We
investment decisions, and accelerating the process of “selection
have strengthened our ability to provide market-oriented credit
and focus” in the form of business restructuring and industry
products such as synthetic CDOs, making use of securitization
consolidation to further strengthen corporate competitiveness.
schemes, and we have also built up our ability to engage in asset
In this environment, Global Wholesale has determined three
finance, particularly in the real estate area.
priorities: to respond quickly to a changing market environ-
A second measure was the creation of our Capital Market
ment, to make use of our integrated strength through collabora-
Department, within Investment Banking. We have done away
tion that transcends organizational structures, and to pursue
with the walls between debt and equity products, developing a
Japan-focused globalization.
team that specializes in origination. This allows us to offer our
One concrete measure designed for this purpose is the cre-
clients comprehensive and customized solutions based on flexi-
ation of Global Markets. Technical progress in financial deriva-
ble thinking and top-grade professional skills.
tives has narrowed the differences between the credit market—
By responding flexibly to market changes, Global Wholesale
represented by bonds—and the equity markets. In response to
is evolving of its own accord; it is vigorously promoting collabo-
this, we have united our trading operations for stocks and
ration within the division that goes beyond traditional business
bonds, which were previously separated into Equity and Fixed
lines, and at the same time it is also strengthening its ability to
Income. Also, we have taken syndicate functions that were pre-
engage in collaboration that extends beyond the division itself.
Equity trading floor (Otemachi)
Nomura Holdings, Inc. Annual Report 2004 |
25
Evolution of Global Wholesale
Global Markets
In Global Markets, we will (1) break down the walls
Financial technology is evolving rapidly, gradually wear-
between products, strengthening our ability to trade
ing away at the distinctions to be made between the
derivative and hybrid products, supply related financial
credit markets—represented by bonds and loans—and
products, and provide information on product ideas in
the equities market—represented by stocks—to give way
the primary markets; (2) heighten our ability to supply
to a growing intermediary market of hybrid securities,
market-oriented credit products, including financing uti-
such as CBs, that possesses the characteristics of both
lizing securitization schemes; and (3) strengthen asset
these markets. In response to this change in the market-
finance business, mainly in real estate.
place, we have united our Fixed Income, Equity and syn-
The main businesses of Fixed Income and Equity that
dicate functions to form Global Markets.
now make up the Global Markets are as follows.
Our aims in creating Global Markets
Fixed Income
(1) Global Markets strengthens our abilities to deal with
In Fixed Income, we engage in bond sales and trading,
hybrid products mainly by, combining Fixed
making use of our global network, and also handle origi-
Income’s credit derivative trading functions with
nation and product supply as well as asset finance (in
Equity’s derivative trading functions.
cooperation with Investment Banking) primarily in real
(2) We have also brought into the Global Markets our
estate. In bond trading, we handle round-the-clock trad-
syndicate functions, previously divided between
ing in government bonds of major countries, position
Investment Banking and Fixed Income, enabling us
management backed by our sophisticated risk manage-
to put together information about markets and
ment technology, firm capital base and strong risk toler-
investor needs and construct a system that helps us to
ance to offer the kind of service our clients have come to
further improve our capability to provide solutions
expect of us.
for issuers in the primary markets.
New System of Global Wholesale
Global Wholesale
Investment Banking
Global Markets
Merchant Banking
Consolidate
underwriting
functions
Fixed Income
Capital Market Department
Equity
Syndicate Department
Separate syndicate functions
26 | Nomura Holdings, Inc. Annual Report 2004
Equity
the country. Thus, we have secured a solid position with
In Equity, we offer sales and trading of domestic and
regard to investment banking deals related to Japanese
foreign stocks on a global basis, primarily for institution-
companies.
al investors. In equity trading, we handle the global flow
We have also built up an extensive track record in
of orders from our solid domestic and foreign client base
overseas and cross-border deals. For example, as repre-
that we have established through the consistent provision
sentative cross-border deals, we acted as advisor in set-
of high-quality research and quantitative analyses. It also
ting up a soft-drinks joint venture in China involving
offers our clients solutions backed by our own positions,
Asahi Breweries, Itochu and Tingyi (Cayman Islands)
including block trades, basket trades and others. We
Holding; we also assisted in Toyoda Machine Works
have earned the trust and praise of our clients for the sys-
purchase of the Torsen division from Bosch Automotive
tems we have built that offer rapid execution without
System, and Kyocera-Mita purchase of a stake in TA
making a big impact on the market, even when we are
Triumph Adler. We also worked with China Steel and
handling a large volume of orders simultaneously.
SMIC (Semiconductor Manufacturing International) in
Investment Banking
public offerings of stock on the Japanese market.
As part of our corporate reorganization in April 2004,
In Investment Banking, we are active in all the world’s
we have united into the newly founded Capital Market
major markets, including Japan, Europe and the U.S.,
Department our underwriting functions that were previ-
offering a wide variety of investment banking services,
ously separated into bonds and stocks. By specializing in
such as the underwriting of stocks, bonds and other
origination, this new department will enable us to offer
securities, as well as M&A and financial advisory servic-
our clients optimized financial solutions, based on our
es. We have acted as lead underwriter for about 65% of
flexible approach and sophisticated professionalism in
the companies listed on Japan’s stock markets. We also
the capital markets. In this way, we hope to make our
have teams of investment banking specialists in 40 of
contribution to maximizing corporate value at our client
our domestic branches, which gives us close relation-
corporations.
ships with many major Japanese companies throughout
Nomura Holdings, Inc. Annual Report 2004 |
27
Merchant Banking
Merchant Banking operations refer to the private equity
business targeting investment opportunities for capital
appreciation that will offer attractive-returns on our
investments.
In Japan, Nomura Principal Finance Co., Ltd. (“NPF”),
founded in 2000, has been active in the field of buy-outs
and corporate revitalization. NPF has established a
strong presence in Japan through its participation in a
management buy-out of Tungaloy (previously Toshiba
Tungaloy) and the corporate rehabilitation of Huis Ten
Bosch. As the pace of corporate restructuring grows in
Japan, we aim to identify additional investment oppor-
tunities to realize investment returns, focusing on poten-
tial improvements in corporate value. In Europe, the
bulk of our private equity business consist of invest-
ments now managed by Terra Firma, an independent
asset management group.
With respect to venture capital investment, we devel-
op our business through the Nomura Research &
Advisory Co., Ltd in Japan and through the London-
based Private Equity Group (PEG) overseas. Looking
ahead, we aim to continue to participate in high-quality
investment opportunities, making use of our global net-
work and backed by our extensive experience.
28 | Nomura Holdings, Inc. Annual Report 2004
Aspiring to be a Globally Competitive Japanese Financial Services Group
Expanding asset finance
holding, we used our extensive network of domestic and
The securitization business has been expanding, as an
overseas investors to conduct the execution without causing
increasing number of companies seek to diversify their funds
any market disruption. This was one of the largest block
procurement and improve their balance sheets by securitiz-
trades ever carried out in the Japanese stock market.
ing real estate and money claims, while the low interest rate
environment has been increasingly leading investors to seek
Top underwriting position for our three equities-
reliable, high-return financial products. In these circum-
related sectors
stances, we have been raising our profile in the domestic and
We have acted as lead manager for Ito-Yokado, Sharp and
foreign securitization markets. We securitized subordinated
other Japanese companies interested in attracting more indi-
loans for Dai-Ichi Mutual Life as well as airline ticket rev-
vidual investors. We have also been joint lead manager for
enues for Korean Airlines. We also handled the financing
Shinsei Bank, a symbolic deal of a company offering stock
through securitization for the Akihabara Office Building
to the market following corporate revitalization, and for the
Development Project, Japan’s first securitization for a major
privatization of Petroleum Resource Development (JAPEX).
Japanese redevelopment project. We also arranged Japan’s
In the J-REIT market, we were joint lead manager for
first large non-recourse financing* for the Catherina Mita
Tokyu Real Estate, contributing to market product supply.
Tower Suite Project, an apartment complex.
In the convertible bond market, we lead-managed deals of
* Financing where creditors can only claim against the collateral, in case of default
Pioneer, Yokogawa Electric and CSK. In equity underwrit-
One of the largest block trades ever in the Japanese
position in all of the three sectors: initial public offerings
market
(IPOs), public offerings (POs) and convertible bonds
ing for the fiscal year ended March 2003, we took the top
When the Hitachi Group wanted to sell its share in Nitto
(CBs).
Denko, which Hitachi owned as a long-term strategic share-
Major Deals as Lead Manager, and Market Share
• Tokyu REIT
• Shinsei Bank
• JAPEX
• Sharp
• Ito-Yokado
• Fuji Photo Film
• Yokogawa Electric
• Pioneer
• CSK
1st Position
1st Position
1st Position
27%
33%
28%
IPOs
POs
CBs
Source: Thomson Financial Bookrunner League Tables (2003.4.1–2004.3.31), value base
Nomura Holdings, Inc. Annual Report 2004 | 29
Developing custom-made equity funds-procurement
Acting as advisor in M&A deals
schemes
More and more companies are tackling group restructur-
We have been active in developing and proposing new
ing, promoting “selection and focus” on their core busi-
funds procurement methods based on tailor-made equity
nesses. In the fiscal year ended March 2004, we acted as
funding schemes. Representative examples would be the
advisor for several high-profile transactions, including the
solutions we offered through the multiple private offerings
transformation of Matsushita Electric Works into a sub-
(MPOs) we devised for Isuzu Motors and Tokyo Tomin
sidiary of Matsushita Electric Industries through a takeover
Bank. In the MPOs, which are an innovative financing
bid, the merger of the ATM businesses of Omron and
method, companies issue convertible bonds or warrants to
Hitachi, and others. In cross-border M&A transactions,
make a third-party allocation to us.
we advised on the creation of a Japan-China beverages
Accumulating track record in underwriting foreign
Itochu. In May 2003, we converted our joint venture in
currency bonds in collaboration with Domestic Retail
China (formerly known as Nomura-CITIC) to a wholly-
Japan has a wealth of financial assets in the hands of indi-
owned subsidiary, helping us to expand our business in
viduals, which overseas issuers with good credit risk have
China and throughout Asia.
joint venture involving Tingyi, Asahi Breweries and
their eyes on. We have been able to greatly increase our sales
of foreign currency bonds by matching these issuers with
individual investors who are seeking higher yields. Given
our impressive track record in this area, we were able to fur-
ther solidify our presence in international capital markets by
acting as joint lead manager for major bond issues, includ-
ing European Investment Bank’s global dollar bond issue,
Major M&A Deals
Matsushita Electric Industries*= Matsushita Electric Works
(MEI makes MEW into a subsidiary through a tender offer)
Industrial Revitalization Corp. of Japan* = Kanebo
(IRCJ acquires Kanebo’s cosmetics operations)
the Austrian government’s euro bond issue, and the Spanish
Asahi Breweries and Itochu* = Tingyi
Instituto de Cre´dito Oficial’s issue of euro-dollar bonds.
(Asahi Breweries and Itochu invest in Tingyi-Asahi-Itochu
Beverages Holding)
* Nomura served as advisor
Retail Foreign Currency Bond Sales
(Trillions of yen)
Major Retail Foreign Currency
Bond Sales
2.5
2.0
1.5
1.0
0.5
0
01/3
02/3
03/3
04/3
(FY)
The International Bank for Reconstruction
and Development (May 2003)
¥99.8 billion (denominated in Canadian dollars)
European Investment Bank
(September 2003)
¥60.9 billion (denominated in Australian dollars)
Aktiebolaget Svensk Exportkredit (SEK)
(November 2003)
¥68.3 billion (denominated in Australian dollars)
Toyota Motor Credit Corp.
(January 2004)
¥41.8 billion (denominated in U.S. dollars)
General Electric Capital Corp.
(February 2004)
¥80.4 billion (denominated in Australian dollars)
30 | Nomura Holdings, Inc. Annual Report 2004
Actively developing principal finance business
in Japan
Our principal finance business ranges from management
buyout (MBO) plans, where managers and executives buy
Major Investments
– Daikuma Co., Ltd.
Equity stake sold to Yamada Denki Co., Ltd. (May 2003)
shares in a company from the current owners or the parent
– DOWA WORKS, Ltd.
company in an effort to boost the value of the company,
and extends to investing in corporate rehabilitations,
Equity stake sold to Taihei Co., Ltd. (January 2003)
– MISAWA RESORT CO., LTD.
where an earnings slump or excess indebtedness has led to
– WANBISHI ARCHIVES CO., LTD.
business failure, but the company is regarded as still worth
– Huis Ten Bosch Co., Ltd.
saving. Nomura Group is able to apply its investment
experience and know-how in these cases, investing its own
capital to develop this business.
In the fiscal year ended March 2004, we were involved in
major projects such as Huis ten Bosch, and Tungaloy (for-
merly Toshiba Tungaloy). We sold our interest in Daikuma,
and we are beginning to see the start of a favorable cycle of
new investment and investment returns.
– Tungaloy Corporation
– SLIONTEC Corporation
– TAIYO ELECTRIC IND.CO., LTD.
Merchant Banking Exposure
(Billions of yen)
400
300
200
100
0
02/3
03/3
04/3
(FY)
Terra Firma
NPF
Nomura Holdings, Inc. Annual Report 2004 |
31
Kazutoshi Inano
Deputy President & Co-COO
Head of Asset Management
Asset Management
The aims of Asset Management are to expand assets under management by improving added value in asset manage-
ment business and strengthening marketing, and to expand our defined contribution pension plan business through
improvements in consulting, investment education and other services.
Business Results
entrusted with the administration and management of 59
In the fiscal year ended March 2004, Asset Management
defined contribution pension as of the end of March 2004, up
posted net revenue of ¥36.0 billion, down 3% from the year
23 from a year earlier, with 185,000 plan participants, more
before, while income (loss) before income taxes showed a
than any other administrator in Japan. Also, we provided
loss of ¥1.0 billion due to special expenses stemming from
financial products to 153 plans, up 94 from a year earlier.
our withdrawal from the Japan Securities Dealers
Employees Pension Fund, and the consolidation of our pen-
Key issues and policies for the fiscal year ending
sion-related subsidiaries.
March 2005
At the core company, Nomura Asset Management, assets
To improve profitability in Asset Management, we must
under management totaled ¥15.7 trillion as of the end of
make use of the full power of the Nomura Group to further
March 2004, an increase of about 11% from ¥14.2 trillion a
expand assets under management in our asset management
year earlier. Similarly, the balance of assets under management
business, and to strengthen our defined contribution pension
grew steadily at Nomura BlackRock and Nomura Corporate
plan business by increasing our pension administration share
Research and Asset Management (NCRAM). We were
and product lineup.
Asset Management Business Results
Asset Management:
2000
2001
2002
2003
2004
Years ended March 31
Non-interest revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥2,154
¥58,237
¥46,840
¥34,828
¥34,300
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
432
2,586
2,751
1,810
60,047
39,537
367
47,207
37,031
Income (Loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ (165)
¥20,510
¥10,176
2,232
37,060
33,866
¥3,194
1,657
35,957
37,004
¥ (1,047)
(Millions of yen)
* The results of the fiscal year ended March 31, 2000 do not include those of Nomura Asset Management, because it was consolidated effective March 31, 2000.
32 | Nomura Holdings, Inc. Annual Report 2004
Net Revenue and Income Before Income Taxes
(Millions of yen)
80,000
60,000
40,000
20,000
0
-20,000
00/3
01/3
02/3
03/3
04/3
(FY)
Net revenue
Income before income taxes
The first things we must do to increase assets under man-
March 2004 and to launch new products such as funds
agement are to hone our skills and strengths in asset manage-
investing in high coupon bonds and high dividend stocks
ment, and to improve added value in investment manage-
(high-income products).
ment services. In the year ended March 2004, we already
Furthermore, by leveraging the asset management skills of
integrated our decision-making process, established an invest-
NCRAM, Nomura BlackRock and Nomura Funds Research
ment team structure, and expanded our coverage by increas-
& Technologies America (NFR&TA), we aim to strengthen
ing the number of analysts. We continue to make efforts to
our investment advisory business, and make further advances
improve added value in asset management services, including
in the market for private placement investment trusts.
strengthening the process of providing perpetually value-
In the defined contribution pension plan business, we have
added services and enhancing asset management capacity.
been working to improve our service. In January 2004, we
Our second focus is to boost our marketing activities as
founded Nomura Pension Support & Service (NSAS) by reor-
part of our renewed customer service system. With regard to
ganizing and streamlining our non-marketing functions, to
collaboration with Domestic Retail, by strengthening our
increase our competitiveness in consulting, investment educa-
sales support system, we aim to increase assets in existing
tion and other services. By cooperating with the relevant
funds, and at the same time increase assets in new products
departments in Nomura Securities, we aim to expand our busi-
such as fund of funds products and alternative investment
ness as a defined contribution pension plan administrator. We
products. In addition, we intend to expand the scope of
are also expanding the range of products we provide, adding
financial institutions that sell our investment trust products
foreign currency denominated money market funds (MMFs)
set up especially for this channel in the fiscal year ended
and other new products.
Nomura Asset Management
headquarters entrance
Nomura Holdings, Inc. Annual Report 2004 |
33
Top market share in Japan in terms of assets under management
Nomura Asset Management
March 2004, our balance of assets under management
Nomura Asset Management is Japan’s largest asset manage-
under domestic investment advisory contracts was ¥3.0 tril-
ment company, with a wide range of customers, from indi-
lion, an increase of ¥152.6 billion from a year earlier. The
viduals to institutional investors in Japan and abroad. As of
balance under overseas investment advisory contracts was
the end of March 2004, its balance of assets under manage-
¥1.4 trillion, an increase of ¥692.5 billion, thanks to an
ment was ¥15.7 trillion, an increase of ¥1.4 trillion from a
increase in mandates for Japanese equities.
year earlier.
NCRAM
Investment Trust Business
NCRAM is a U.S.-based investment management compa-
Through over 200 companies, starting with Nomura
ny offering the Nomura Bond & Loan Fund, the High
Securities and including other brokerages, banks, trust
Yield Bond Open, and the Nomura US High Yield Bond
banks, life insurance companies and other financial institu-
Income fund established in December 2003. As of the end
tions, we offer a wide range of investment trust products,
of March 2004, NCRAM’s assets under management
from cash reserve products such as MMF to high-risk/high-
totaled ¥801.4 billion, up ¥236.8 billion from a year earli-
return products, including stock investment trusts. In Japan,
er, supported by the continued strong popularity of for-
Nomura Asset Management commands the top position in
eign currency bond funds.
public bond investment trusts and stock investment trusts
with 40% and 19% shares, respectively.
Nomura BlackRock Asset Management
Investment Advisory Business
Nomura BlackRock Asset Management is an investment
advisory firm formed in April 1999 as a joint venture
In our investment advisory business, we offer asset manage-
between Nomura Asset Management and The BlackRock
ment services to public and private pension funds and insti-
Co., Inc. of the U.S. BlackRock utilizes sophisticated risk
tutional investors in Japan and abroad. As of the end of
management technology, and is recognized as one of the
Assets under Management
(Nomura Asset Management)
(Trillions of yen)
25
20
15
10
5
0
00/3
01/3
02/3
03/3
04/3
(FY)
Public Stock Investment Trusts
Public Bond Investment Trusts
Investment Advisory
Others
34 | Nomura Holdings, Inc. Annual Report 2004
Market Share (Nomura Asset Management)
Assets under Management (NCRAM)
(%)
40
30
20
10
0
00/3
01/3
02/3
03/3
04/3
(FY)
Bond Investment Trusts
Total Public Investment Trusts
Stock Investment Trusts
(Billions of US$)
8
6
4
2
0
00/3
01/3
02/3
03/3
04/3 (FY)
top firms in the U.S., particularly for bond investment
financial institutions and pension funds. As of the end of
management. Nomura BlackRock Asset Management man-
March 2004, the outstanding balance of assets under man-
ages the Nomura Short-Term Interest Fund and other
agement was ¥1.2 trillion, an increase of ¥205.9 billion
products and provides investment advisory services to
from the year before.
Increasing Our Assets under Management
Strengthening asset management capability
strengthening and computerizing our trading functions, and
Improving value-added in investment management services
make efforts to increase the efficiency of the execution process,
Regarding the need to strengthen our asset management capa-
right down to portfolio management.
bilities and improve value-added in our investment manage-
ment services, we have already enacted many kinds of measures,
Marketing strategy
but these still remain key points of focus for us. Of particular
Updating customer service systems
importance are the need to strengthen the process of providing
We have updated our customer service systems, as part of
perpetual added value, and the need to build up our asset man-
strengthening our efforts to expand assets under management.
agement capacity to deal with sheer quantitative expansion of
To ensure that our customers and the financial institutions to
assets under management. In the process of providing perpetual
which we distribute our products are kept fully informed, we
added value, as a means of efficiently grasping a wide variety of
have shifted our disclosure functions to the marketing depart-
investment opportunities, it is indispensable to have a sophisti-
ments, and also reorganized the marketing team to improve
cated method of screening securities that are potential invest-
services for each customer group. To keep expanding assets in
ment targets, so we have taken steps to update and improve our
our existing funds, we are strengthening our sales support sys-
screening systems. In strengthening our investment manage-
tems in an effort to provide a continuous flow of information.
ment capacity, to ensure that the growth of assets does not lead
We already provide a wide variety of investment trust prod-
to lower management efficiency, which could have a negative
ucts, but we are perennially striving to uncover previously
impact on investment performance, we will make advances in
unknown investment management needs, to develop products
Balances of funds established in FY04/3
Fund name
Manager
Launch date
Balance, end-March 2004
Nomura Australian Bond Fund
Nomura Asset Management
September 2003
¥47.9 billion
(A,B,C,D courses)
Nomura Real Growth Open
Nomura Asset Management
World Genome Technology Open
Nomura Asset Management
(A,B courses)
Nomura US High-Yield Bond Income
NCRAM
Nomura Fund Masters Japan Small
Nomura Asset Management
Capitalization Stock
October 2003
November 2003
December 2003
March 2004
¥43.1 billion
¥97.2 billion
US$1.68 billion
¥36.5 billion
Nomura Holdings, Inc. Annual Report 2004 |
35
that stay a step ahead of ongoing changes in the social and mar-
increase overseas investors’ mandates for Japanese equities. In
ket environment. Specifically, we will strive to increase our
the future, to meet the anticipated increase in funds to invest in
assets under management by adding to our line of fund of
the area of public pensions and public funds, we intend to
funds products, and offering alternative investment funds that
strengthen our penetration with traditional products, and also
seek certain levels of absolute return.
increase our efforts at cross-sales of NCRAM and Nomura
BlackRock’s foreign currency bond products, NFR&TA’s fund
Focus on sales of investment trusts at banks
of funds, and other products.
As sales of investment trusts at banks have already surpassed ¥10
trillion, tackling this market will be a very important task for us.
Developing private placement investment trusts through
In the fiscal year ended March 2004, we began offering our
capacity to provide products, and integrated strengths
Global High Income Stock Fund through Mitsubishi Trust &
Our assets under management in the private placement invest-
Banking. We also started offering our US-Euro Bond Income
ment trust market have increased to ¥11 trillion, and Nomura
Open through Bank of Yokohama, and both have seen steady
Asset Management has also been entrusted with assets from finan-
gains in assets. In the future, we aim to increase the number of
cial institutions, including foreign life insurers, city banks and
banks that offer our products. We will develop other high-
regional banks. We believe there is still room to increase business
income products and new foreign products, leveraging the man-
with some extremely wealthy individuals and institutional
agement skills of NCRAM, Nomura BlackRock and others; we
investors. We will strengthen our interaction with customers, to
also plan to launch new funds that invest in REITs.
increase our assets under management. In the private placement
investment trust market, it is essential to have the capacity to offer
Strengthening investment advisory services
order-made products that accurately reflect customers’ needs.
After hitting a trough in March 2003, Nomura Asset
Nomura Asset Management has established the Structured
Management’s investment advisory assets are on the rebound,
Products Investment Department, fortifying its ability to supply
thanks mainly to strength in overseas investment advisory
products that match our customers’ needs. Furthermore, we are
assets. The increase in overseas investment advisory assets is the
strengthening cooperation with related departments at Nomura
result of strong performance, as well as the cooperation of
Securities as well in an effort to increase our assets.
Nomura Group’s overseas network, which has helped to
List of specialized investment trusts
for over-the-counter sales at banks
Investment Advisory Assets
(Nomura Asset Management)
(Billions of yen)
Global High Income Stock Fund
US-Euro Bond Income Open
Nomura Japan-US REIT Fund
(launched on April 30, 2004)
Hybrid Income Open
(launched on June 23, 2004)
6,000
5,000
4,000
3,000
2,000
1,000
0
00/3
01/3
02/3
03/3
04/3
(FY)
Domestic
Foreign
36 | Nomura Holdings, Inc. Annual Report 2004
Defined contribution pension plan business
elimination of the ceiling on the amount that can be transferred
Pension administration contracts and product supply both
from corporate pension plans, and the easing of conditions on
increasing
early withdrawal. Many corporations that offer pension plans
In our defined contribution pension plan business, Asset
are rethinking their pension and personnel systems, and in the
Management provides a wide variety of services relating to
future we expect that the introduction of defined contribution
administration starting with support for the introduction and
pension plans will be accelerated. In the fiscal year ended March
designing of pension plan systems, supply of investment trust
2004, we reorganized and integrated our non-marketing func-
products, product selection and information, as well as invest-
tions into NSAS, strengthening cooperative relations between
ment education.
our consulting business and service-oriented businesses, such as
Competition has been intensifying in the defined contribution
investment education. We will redouble our efforts to enhance
pension plan business. We have increased the number of pension
our competitiveness in services, and in an effort to greatly
plans for which we provide these administration and manage-
increase our pension administration business, we will strengthen
ment services on an outsourcing basis to 59 as of the end of
our cooperation with Domestic Retail and Global Wholesale
March 2004, up 23 from a year earlier. The number of partici-
and draw on the collective strength of Nomura Group.
pants in our plans increased to 185,000, giving us the top market
share in a total universe of around 700,000 plan participants.
Aggressively providing products
The number of plans we supply products to has grown to
When it comes to providing financial products, we aim to
153 as of the end of March 2004, increasing by 94 compared
expand our business by providing products not only to pension
to the previous fiscal year end. The outstanding value of the
plans administrated by us but also to those administrated by
investment trusts we supply has grown to ¥39.0 billion with an
others. As part of this effort, we will launch new products,
increase of ¥25.4 billion from a year earlier.
including foreign currency denominated MMFs. We are also
trying to increase the assets in the products we provide, and
Drawing on our collective strengths to increase pension
thereby improve our own profitability.
administration contracts
Deregulation in the pension system has been making steady
progress, starting with the increase in the tax-free ceiling, the
Value of Investment Trust Products Nomura Supplies
and Number of Plans Nomura Supplies Products
(Billions of yen)
40
30
20
10
0
02/9
02/12
03/3
03/6
03/9
03/12
04/3
Value of Investment Trust Products Nomura Supplies (left)
Number of Plans Nomura Supplies Products (right)
(plans)
160
120
80
40
0
(FY)
Nomura Holdings, Inc. Annual Report 2004 |
37
Akihito Watanabe
Senior Managing Director
Head of Global Research
Research
Our founder, Tokushichi Nomura, realized from the outset the limitations of securities trading based on intuition and
experience alone. He set up the first “research department” in Japan’s securities industry, emphasizing the impor-
tance of scientific investment decisions. Our research division, proud to have the longest history and tradition in
Japan, is highly ranked by our clients. We are carrying on our founder’s philosophy of research-driven business.
Reorganizing the research functions
Nomura Research Institute to the newly founded Nomura
Nomura Group reorganized its research functions effective
Institute of Capital Markets Research, a wholly-owned sub-
April 1, 2004. Previously divided between Nomura
sidiary of Nomura Holdings. This research institute issues
Securities and Nomura Research Institute, our research
policy statements and proposals independent of Nomura
function has now been consolidated in the Nomura
Securities.
Securities Financial & Economic Research Center (previ-
ously named Nomura Securities Financial Research Center),
Nomura Securities Financial & Economic Research
the in-house research arm of Nomura Securities. This move
Center
enables us to offer a full line of high-quality research from
The Nomura Securities Financial & Economic Research
macroeconomic analysis through equity analysis to invest-
Center is made up of five departments: the Equity Research
ment strategy.
Department, Investment Strategy Department,
At the same time, research functions relating to studies of
Quantitative Research Department, Investment Banking
financial and capital markets have been moved from
Research Department, and the Economic Research
Global Research Structure
Financial & Economic
Research Center
(Tokyo)
Equity Research
Investment Strategy
Quantitative Research
Investment Banking Research
Economic Research
Corporate Office
Industrial Strategy Research Group
Akihito Watanabe
Senior Managing Director
Head of Global Research
Asia Research
(Hong Kong)
Europe Research
(London)
U.S. Research
(New York)
Nomura Research &
Advisory
(Tokyo)*
Hong Kong
Korea
Taiwan
China
Singapore
Australia
*Joint management with the Merchant Banking
38 | Nomura Holdings, Inc. Annual Report 2004
Department. These five departments conduct studies in
nomic and earnings analysis from the analysts in the Equity
their own field of specialty. In analyst rankings by The
Research Department, the strategists formulate investment
Nikkei Financial Daily and Institutional Investor, research
strategies that reflect the global investment environment.
conducted by the Nomura Securities Financial & Economic
The monthly publication, Japanese equities investment
Research Center has been consistently in the top class. In
strategy, publishes our firm’s views on investment in
October 2001, in light of the importance of global research,
Japanese stocks, together with our analyses on macroeco-
we reorganized our research operations in the U.S., Europe
nomics, earnings trends for various industries and compa-
and Asia, enhancing research coverage on a global scale.
nies, and market supply and demand conditions. We also
Equity Research Department
About 60 corporate analysts belong to this department,
publish reports on global asset allocation and stock markets
in the U.S., Europe and Asia in a timely manner.
studying and analyzing listed companies, estimating their
Quantitative Research Department
investment value and offering this information to investors
At Nomura, approximately 50 quantitative analysts engage
on a timely basis. Currently, we cover about 600 Japanese
in cutting-edge financial engineering research, including on
companies, accounting for approximately 85% of the mar-
derivatives and portfolio theory, and develop databases and
ket capitalization of the Tokyo Stock Exchange’s first and
systems based on the results. Such research is widely appli-
second sections as well as OTC stocks.
cable, for example, to asset management, new product
Investment Strategy Department
development, trading, risk management and corporate
finance, and helps Nomura Group stay at the forefront of
About 20 strategists work in the Investment Strategy
the finance and securities businesses. In addition to collabo-
Department, studying and analyzing the macroeconomic
lation with our overseas offices in New York, London and
environment in various countries, and the international
Hong Kong, we also have a global research and develop-
flow of funds. Based on these factors as well as microeco-
ment network and conduct avant-garde research activities in
Nomura Holdings, Inc. Annual Report 2004 | 39
the international arena, including joint research projects
Global Research Structure
with leading universities and think tanks.
To respond to economic and corporate globalization, we
have research teams in our overseas offices where they con-
Investment Banking Research Department
duct integrated research with the Nomura Securities
Nearly 10 analysts belong to the Investment Banking
Financial & Economic Research Center. Including sector
Research Department, offering advice to client companies
analysts, strategists and economists, our global research net-
on how to increase their corporate value. For publicly listed
work comprises approximately 10 professionals both in New
companies, we offer advice on fund raising and financial
York and London, and 40 or so in Asia/Oceania. In quanti-
management, group policies, investor relations, dealing with
tative research, we have approximately 30 analysts working
ratings agencies and others.
at our offices in New York, London and Hong Kong.
Economic Research Department
Nomura Research & Advisory
In our Economic Research Department, over 20 econo-
Nomura Research & Advisory has approximately 20 ana-
mists in Japan collaborate globally in the study and analy-
lysts and specializes in research of unlisted privately-held
sis of the macroeconomy and financial trends in various
companies. It uses its experience and know-how to provide
countries as well as foreign exchange markets, publishing
total solutions tailored to industry trends and the growth
the results of their research in various reports destined for
stages of its client companies. Such services include venture
investors. This research has a strong reputation for its con-
capital business (managing and administering the funds of
sistent forecasts covering more than 20 countries and
venture capital partnerships) as well as stock offerings and
regions, and the depth of its analysis of medium- and
corporate alliances. Recently, Nomura Research & Advisory
long-term social and economic structural problems such
has been avidly conducting joint research into industry-uni-
as the ageing and decline of birth rate in Japan.
versity collaboration.
40 | Nomura Holdings, Inc. Annual Report 2004
Nomura Group
Contents
Corporate Governance
Compliance
Nomura Group’s Contribution to Society
Research and Policy Pronouncements
42
46
48
52
Nomura Holdings, Inc. Annual Report 2004 |
41
Corporate Governance
Corporate governance at Nomura Group has won praise around the world; we achieved top placement on various
rankings of corporate governance.
Adoption of the Committee System
Nomination Committee and the Compensation Committee
In June 2003, the domestic companies of Nomura Group
is a director who is not the CEO.
adopted the Committee System, with the aim of separating
executive and oversight functions, transferring business exe-
The advantages of the Committee System
cution power to executive officers, and increasing our man-
Since our adoption of the Committee System, business exe-
agement transparency. Under our committee system, man-
cution powers that were previously concentrated in the
agement oversight functions are exercised mainly through
hands of the Board of Directors have been more broadly
the actions of the Nomination Committee, Audit
delegated to the executive officers, speeding up the decision-
Committee and Compensation Committee under the board
making process. Since the executive officers have business
of directors. Executive officers designated by the Board of
execution power, there is a clear division between the over-
Directors receive broad business execution powers from the
sight functions of the directors and the business execution
board, which gives executive officers the authority to make
functions. Moreover, governance can be expected to
operational decisions. The majority of members of the
improve further because the Board of Directors exercises its
Nomination Committee, Audit Committee and
management oversight through the Nomination
Compensation Committee are outside directors. At
Committee, Audit Committee and Compensation
Nomura Holdings (NHI), the chairman of the Audit
Committee; in each of the three committees the majority of
Committee is an outside director, while the chairmen of the
members are outside directors.
Adoption of Committee System
Statutory Auditor System (Former System)
Committee System
Shareholders’ Meeting
Shareholders’ Meeting
Election /
Dismissal
Board of
Directors
Management
Decision
Oversight of
Business Execution
Audit
Election/
Dismissal
Election/
Dismissal
Election/Dismissal of
Committee Members
Board of
Statutory
Auditors
Board of Directors
Audit
Determination of
Compensation
Nomination of Director
Candidates
Nomination Committee
Audit Committee
Compensation
Committee
Election/
Dismissal
Oversight of Business
Execution
Audit
Representative Executive
Officer(s)
Executive Officers
Determination of
Compensation
42 | Nomura Holdings, Inc. Annual Report 2004
Meeting the challenges of corporate governance
Management structure
Operations of the Board of Directors
– Appointed outside directors (2001)
The Board of Directors is responsible for making decisions
– Established Internal Controls Committee, in which outside
on items specified by the Commercial Code. The executive
directors also participated (2001)
officers must report at least every three months on business
– Established Compensation Committee, with majority of
conditions as well as matters for deliberation by the Board of
members outside directors (2001)
– Established Advisory Board (2001)
Executive Officers and the Executive Management Board. In
addition, they must make a monthly financial report to the
– Abolished retirement bonuses for directors
directors.
– Granted stock options for directors and certain
employees (2002)
– Adopted the Committee System (2003)
Corporate governance ranking
Institutional Shareholder Services’ (ISS) corporate gover-
nance quotient (CGQ) ranks NHI as No. 1 among
Japanese companies used in the MSCI EAFE index.* In
addition, NHI is ranked No.2 in the Japan Corporate
Governance Research Institute’s Corporate Governance
Index.
Three committees
The Nomination Committee, Audit Committee and
Compensation Committee have been given the authority to
make decisions on issues including candidates for the Board
of Directors, audits, and compensation for directors and
executive officers, while the Board of Directors exercises
oversight over management decisions.
Nomination Committee
The Nomination Committee is responsible for decisions
regarding proposals made to the General Meeting of
Shareholders concerning the appointment and dismissal of
directors. The majority of the Nomination Committee must
be outside directors, and the committee chairman is not the
ISS Corporate Governance Quotient (CGQ)
Index Ranking
90.7
Country Ranking
100.0
Industry Ranking
91.3
* Nomura Holdings Inc. outperformed 90.7% of the companies in the MSCI EAFE Index, 100.0% of Japanese companies and 91.3% of the companies in the Diversified Financial group.
* The MSCI EAFE index is a stock price index computed by Morgan Stanley Capital International, covering Europe, Australia and the Far East, but not North America.
Source: ISS as of July 6, 2004
Japan Corporate Governance Research Institute Corporate Governance Index
Highest
Nomura Holdings
Lowest
Average
Source: Japan Corporate Governance Research Institute (2003)
Points
73
72
12
37.6
(No. 2)
Nomura Holdings, Inc. Annual Report 2004 |
43
CEO; the directors who are representative executive officers,
Business execution system
including the CEO, are not members of the Nomination
NHI is a holding company and it does not engage in any
Committee.
Audit Committee
particular business on its own. We believe, however, that the
executive officers of NHI, who occupy key positions in the
The Audit Committee is responsible for auditing the busi-
management of Nomura Group, make it possible for the
ness executions of executive officers, as well as the appoint-
group to devise realistic management strategies, which are to
ment and dismissal of accounting auditors. The majority of
permeate the whole organization and to be carried out in a
members of the Audit Committee are outside directors, and
speedy fashion. At NHI, to ensure that executive officers’
the committee chairman is an outside director. Its members
business decisions are made smoothly and appropriately, we
do not act as a member of the other committees. In addition,
have the Board of Executive Officers, the Executive
the members of the Audit Committee all fulfill the require-
Management Board and the Internal Controls Committee,
ments of independent directors as defined under the
Sarbanes-Oxley Act.
Compensation Committee
for all of which the CEO acts as chairman.
Board of Executive Officers
The Board of Executive Officers is responsible for delibera-
The Compensation Committee makes decisions regarding com-
tions and decisions regarding business planning, budgeting,
pensation for directors and executive officers, both in terms of
and the allocation of management resources for Nomura
broad policy and specific decisions concerning individual mem-
Group. The Board of Executive Officers is made up of all the
bers. The majority of members of the Compensation
Committee are outside directors. The committee chairman is a
executive officers, currently 31 members.
Executive Management Board
board member other than the CEO. The directors who are rep-
The Executive Management Board formulates the management
resentative executive officers, including the CEO, are not mem-
strategies of Nomura Group, and makes decisions about the
bers of the Compensation Committee.
fundamental policies for business lines to carry out the execu-
tion of their business plans and operations. The Executive
Nomura Holdings Management Structure
Shareholders’ Meeting
Board of Directors
Nomination Committee
Audit Committee
Compensation Committee
President & CEO
Board of Executive Officers
Executive Management Board
Advisory Board
Internal Controls Committee
* Consultative body for the Executive Management Board
Top managers of representative global Japanese companies
offer management advice
44 | Nomura Holdings, Inc. Annual Report 2004
Management Board also monitors each business line on the
the activities of the Audit Committee, and to ensure that suffi-
basis of earnings indicators designed to accurately gauge the
cient information is supplied from the Internal Audit Division
state of their operations. Currently, the Executive Management
to the Audit Committee.
Board is made up of 10 executive officers.
Internal Controls Committee
Disclosure Committee
The Internal Controls Committee is charged with the task of
To ensure that we provide investors with opportunities for
enhancing our internal controls and procedures and promot-
fair access to information concerning Nomura Group, the
ing proper corporate behavior throughout Nomura Group.
group has established “Nomura Group’s Statement of Global
Currently, the Internal Controls Committee is made up of
Corporate Policy regarding Public Disclosure of Information,”
four executive officers and two directors, including one out-
which sets forth (1) policy directives that protect non-public
side director.
Internal controls
information concerning Nomura Group companies while at
the same time promoting timely and appropriate public dis-
closures, and (2) the principle of U.S. Regulation FD.
It is the Audit Committee that has primary responsibility for
management supervisory functions in a company that operates
* The U.S. Securities and Exchange Commission (SEC)regulations forbid companies from releas-
ing important information to certain people such as analysts or institutional investors before it is
released to the general public
under the Committee System. The main members of the
Audit Committee are outside directors, but we do designate
full-time directors (Audit Mission Directors) who are not an
executive officer, but who are intimately familiar with the
organization and business operations of Nomura Group, to
supplement the Audit Committee’s auditing activities and
Key points of “Nomura Group’s Statement of Global Corporate
Policy regarding Public Disclosure of Information”
– Establishment of Disclosure Committee
– Ban on selective disclosure of important information
– Channeling important information through Disclosure Committee
ensure an airtight audit system. Also, we have established the
– Designating a single outlet for information disclosure
Office of Audit Committee as a specialized team to support
– Preparing statutory disclosure document by Disclosure Committee
Internal Control System
Internal Controls Committee
Audit Committee
Audit Mission Directors
• 4 Executive Officers including CEO
+ Outside director (Chairman of Audit Committee)
+ Director (Audit Mission Director)
• Promotes proper corporate behavior throughout
the group and enhances internal controls and procedures
Approval of
Internal Audit Plan
Audit Report
Office of Audit Committee
Audit Report
• Assist Audit Committee
• Assist Audit Mission Directors by providing
operational support
Audit Report
Nomura Group Internal Audit Department
Internal Audit
Nomura Holdings and its Subsidiaries
Management
Business
Risk Management
Compliance
Nomura Holdings, Inc. Annual Report 2004 |
45
Compliance
At Nomura Group, we make great efforts to ensure that neither officers nor employees of Nomura Group will engage
in behavior that might be seen as illegal. If such a problem occurs, it is to be reported to management without excep-
tion and without delay. We are firmly aware of the necessity to create a system for handling such incidents in an
appropriate manner.
Establishment of code of ethics at Nomura Group
to make reports directly to an executive officer or outside
In March 2004, Nomura Group voluntarily established a
director designated by NHI’s Board of Directors. The infor-
code of ethics applicable to all directors, officers and
mation provided via the Compliance Hotline is reviewed by
employees, as an ethical guideline on a worldwide basis.
the Internal Controls Committee.
Nomura Group’s compliance systems
Nomura Securities’ compliance systems
Based on Nomura Securities’ compliance systems, all
Establishment of Compliance Committee
domestic member companies of Nomura Group must des-
The Compliance Committee is made up of 13 executive
ignate a Compliance Officer and report all relevant infor-
officers, including the president & CEO and the Internal
mation to the designated executive officer of the Group.
Administration Supervisor, plus two outside lawyers who
The compliance officers must participate in a joint training
act as legal supervisors. In principle, this committee meets
course once a year.
twice a month to discuss internal administrative systems
Beginning in October 2002, Nomura Group set up a
and compliance rules, as well as other important matters
Compliance Hotline, allowing Nomura Group employees
relating to compliance.
Nomura Securities’ Compliance Structure
Operating Officers
Internal Controls Officers
Compliance Officers
Internal Administration Supervisor
(Executive Officer)
Investigate and Formulate Solutions
Employees
Compliance Hotline
External lawyers (two)
Outside director
Reporting
Compliance Committee
Report proceedings at least once every three months
Board of Executive Officers
46 | Nomura Holdings, Inc. Annual Report 2004
Installment of Compliance Officer in all departments and
Activities undertaken to ensure compliance with the law
branch offices
Compliance manuals designed to ensure a clear understand-
We have installed a Compliance Officer to further ensure
ing of laws and regulations are made available via the
that internal administrative measures are firmly in place in
Intranet. We have established a compliance training system,
all locations, and to ensure that all employees are mindful of
in which all directors, officers and employees are required to
their obligation to respect the law.
participate.
Establishment of Compliance Hotline
Compliance training materials are prepared and distrib-
uted on a monthly basis for use in branch offices. Each
The Compliance Hotline is an internal information system
branch office conducts monthly training sessions based on
for use by employees who discover acts contrary to the law
these materials and reports to administrators on the imple-
or Company regulations, or other anti-social behavior. We
mentation of these sessions.
have also set up contact points outside Company offices.
We have set up systems to ensure that persons who supply
information are completely protected from any negative
consequences of supplying that information. We have also
taken steps to ensure that employees are able to supply
information directly to the responsible internal administra-
tors, external lawyers, and/or an outside director.
Nomura Holdings, Inc. Annual Report 2004 |
47
Nomura Group’s Contribution to Society
Concerning Nomura Securities’ raison d’être, our founder Tokushichi Nomura once said, “Nomura’s mission is to
enrich the nation through the securities business. This is something we must absolutely see through.” In keeping with
these words, Nomura Group believes the healthy development of the economy is necessary for an affluent society.
To this end, we are actively engaged in promoting educational opportunities to broaden understanding of financial
and securities markets. Since we also believe in the importance of heartly attitude towards society, we are active
supporters of academia, culture, the arts and sports.
Lessons on the economy and securities markets
the global securities business. In the fiscal year ended March
Individuals are beginning to rethink the way they manage
2004, more than 400 our executives and employees taught
their assets, and people are becoming very interested in
such classes based on their own experience. The classes were
learning more about the economy and finance. To promote
attended by more than 20,000 students at over 110 univer-
the dissemination of financial knowledge, we believe in the
sities.
need to provide programs for people who are especially
We did not stop with Japan. We offered similar securities
keen. We are making great efforts to create opportunities
education courses in Asia, to promote understanding of
for people to learn more about the economy and securities
Japan’s capital markets and financial systems. In 2003, we
markets, from educational programs for children who will
offered a course at Chulalongkorn University in Thailand.
be the next generation of investors, to older citizens.
Providing courses on securities
Securities education courses at universities
The economy, finance and money have deep connections to
The students of today will support Japan’s economy of the
our everyday life, but formal opportunities to learn about
future. To give these students a better picture of how the
them are rare. To rectify this situation, we offer courses on
economy really works, we provide universities across Japan
finance and securities in regional communities and at vari-
with courses about capital markets, securities markets and
ous workplace adult education venues.
Education Program
Elementary schools
Junior high schools
Senior high schools
Universities
The Secret of Money
The Book for a Happy Economy
Adults
Company employees
Communities
Activities to disseminate
defined-contribution
pension plan scheme
Publications
Events
Lectures
Education
programs
Internet
CATV
stations
48 | Nomura Holdings, Inc. Annual Report 2004
Nomura Money Fair
Seminars at Nomura Securities’ branches
Securities education programs Securities learning programs
Special sponsor of Nikkei Stock League
Nikkei Education Program
Nikkei Education Forum
Educational contents on the Internet
Doki Doki Waku Waku Okane no Hanashi
Nomura Free School
Chulalongkorn University
The Nikkei Stock League
In these courses, we introduce the concepts of life plan-
Educational support for junior and senior high
ning and money planning in an effort to teach people in a
school students
way that is easily understandable even for beginners so that
We also offer our help and support for the Nikkei
they can create a comfortable life for themselves and a com-
Education Forum, a series of events aimed at helping senior
fortable retirement. In 2003, about 10,000 people partici-
high school students learn about society, the economy and
pated in these courses.
industry from people who are actually active in business.
The forum is held during summer vacation each year, under
Special Sponsor of the Nikkei Stock League
the main theme of “Innovation.” In 2003, our course
The Nikkei Stock League is a portfolio training and report-
focused on the mechanisms of the stock market, role-play to
ing contest aimed at junior and senior high school, and col-
illustrate how entrepreneurs create innovations, the role of
lege students, sponsored by the Nihon Keizai Shimbun, Inc.
the investors who support them, and how individual
Since the first contest, held in the fiscal year ended March
investors can build their assets.
2001, over 17,000 participants have so far taken part.
We also participate in the Nikkei Education Program,
The contest involves Internet-based buying and selling of
which was started in April 2003. The Nikkei Education
virtual stocks. Teams can build virtual portfolios based on
Program is aimed at junior and senior high school students,
their own investment themes, and create reports about
helping them learn about the facts of the economy and soci-
them. This experience is aimed at helping participants
ety, and develop a zest for participating in society. These
sharpen their understanding of the mechanisms of our
courses aim at encouraging students to think about what
financial and economic systems. Teams are judged based on
the job is, who they are, and what kind of life they want to
their investment performance and reporting, and the best
lead. We make our contribution as one of the companies
team wins a study trip to the U.S.
offering “corporate access courses” that help students under-
Direct contact with finance and economy via ‘man@bow’
through various experiences related to corporate life.
stand more about occupations and what companies do,
(Let’s learn!)
To help a broad spectrum of people deepen their under-
Educational television programs on finance
standing of the economy and finance, we have worked with
About 150 cable television stations around Japan carry the
the Nihon Keizai Shimbun to set up the economics web site
financial education program “Doki Doki Waku Waku
man@bow. The name is based on the Japanese word for
Okane no Hanashi,” which deals with the importance of
“learning.” The site includes easy-to-understand explana-
managing assets. Thinking about the future is important for
tions of topics related to economics, investment, current
everyone, and it is important to prepare early and correctly.
events and market trends. People can use the site as a self-
This program offers a nationwide audience reports on a
education tool for investment management.
wide range of subjects, from the fundamental concepts of
(http://manabow.com)
money to investment techniques to Q&As on money. Some
reports cover such things as students’ first adventures in
investing, and the program offers a corner where viewers
can discuss their questions about money.
Nomura Holdings, Inc. Annual Report 2004 | 49
Oxford University
Cooperation between universities and industry, and
Columbia University
other forms of support for education
We support, as lead corporate sponsor, the alternative
Nomura Foundation for Academic Promotion
investment program at the Columbia University Center on
Nomura Foundation for Academic Promotion was estab-
Japanese Economy and Business. This program is unprece-
lished in 1986 to commemorate Nomura Securities’ 60th
dented in that research is conducted and published focusing
anniversary. The fund was created to promote academic
primarily on alternative investment in Japan. The main
research and education in Japan, as well as international
contact point is Nomura Funds Research and Technologies.
exchanges. It focuses its support mainly on the fields of law,
political science and economics.
Support for culture and the arts
To date, in its support for research projects the fund has
Nomura Cultural Foundation
supported 365 projects, and in its support for international
In May 1990 we founded the Nomura Cultural Foundation
exchanges it has helped possible research trips and meetings
to realize true mutual understanding in international socie-
for 700 individuals.
Cooperation with universities
ty, and with the aim of supporting personal education and
international exchanges in music and the visual arts.
The foundation supports about 80 projects each year,
We work with the following universities, helping to pro-
including lectures, exhibitions, and symposia aimed at inter-
mote leading-edge academic research in the field of finance.
national exchanges, and training for young artists. We also
Oxford University
University of Tokyo
Kyoto University
Hitotsubashi University
The Nomura Centre for Quantitative Finance
was established within the university. We provide
a practical course on derivatives, and offer sup-
port for leading-edge research in financial engi-
neering.
At the University of Tokyo’s Office of University
Corporate Relations, we worked on the first joint
research project, “Development of a Model for
Industry-University Collaboration Based on
Market Principles.” The University of Tokyo’s
Office of University Corporate Relations was
opened in November 2002 as the University’s sole
contact point for joint research.
Established in 2001, the Research Section for
Application of Financial Engineering
(Contributed by we Group) at the Institute of
Economic Research, Kyoto University conducts
research on various topics, including broad appli-
cations for financial engineering, improving cor-
porate value through business risk management,
increasing the sophistication of asset management,
and financial sector structural reform.
Established the Financial and Capital Markets
Research Center as a venue to encourage the
exchange of opinions and research among officials
from academia, government and industry.
50 | Nomura Holdings, Inc. Annual Report 2004
offer support for foreign students in Japan, who are expect-
ed to form future bridges between Japan and other coun-
tries.
Pacific Music Festival (PMF)
The late Leonard Bernstein founded the Pacific Music Festival
in 1990, as an international music festival aimed at the spread
and development of musical culture through music education.
The festival takes place for about one month each year start-
ing in early July and is held primarily in Hokkaido. About 100
young musicians assemble from all over the world to take part
in educational programs led by world-class artists such as the
principals from the Vienna Philharmonic Orchestra. The festi-
val publishes the results of its work, and includes open lessons
for local schoolchildren and music teachers.
Together with the Nomura Cultural Foundation, we have
supported the Pacific Music Festival since its inception, as an
opportunity for the training of young musicians, and for the
development of music on the world stage. We offer special
Awards Ceremony for the Nomura Prize held
at the Tokyo National University of Fine Arts
and Music
financial support to ensure the smooth execution of the pro-
Expo 2005 Aichi Japan
grams. In 1999, our efforts were recognized by the Association
We are also a supporter of Expo 2005 Aichi Japan, scheduled
for Corporate Support of the Arts, which accorded us its Japan
to take place from March 25 to September 25, 2005. The
Mecenat Award given for outstanding corporate philanthropic
theme of the expo is “Nature’s Wisdom,” aiming for cultural
activities.
The Nomura Prize
innovation and the participation of many countries from
around the world.
In keeping with the concept of Expo 2005, Nomura
In 1996, to mark the 70th anniversary of the founding of
Group’s Tokai Three Prefectures Project “Discover Tokai”
Nomura Securities and the 5th anniversary of the Nomura
was recognized as a partnership project and refers to the three
Cultural Foundation, we established the Nomura Prize at
the Tokyo National University of Fine Arts and Music (Art
prefectures that make up the region: Aichi, Gifu, and Mie.
1) Project to support the strengthening of technological
Museum); the prize was awarded for the first time in 1998.
and industrial competitiveness in the three prefectures
The aim of the prize is to foster the development of figura-
of the Tokai region
tive art in Japan, to support young sculptors, and to support
This project highlights and analyzes the sources of the
museum work in collecting, preserving and presenting
Tokai region’s industrial competitiveness, examining how
works to the public.
the region’s various industries have influenced one another
The prize is aimed mainly at doctoral candidates in figu-
to create the current prosperity, aiming to uncover the his-
rative art at the Tokyo National University of Fine Arts and
torical background and regional distinctions that made this
Music. It is awarded to particularly outstanding students,
possible. As one element of this project, we held a first semi-
and the fund is used to purchase their works for the univer-
nar in May 2003 entitled “Discover Tokai, Rediscover the
sity museum’s collection. We make our contribution by reg-
Region.” A second seminar was held in September, and fur-
ularly purchasing works by outstanding young sculptors, as
well as by offering scholarships for young artists.
ther events will be held regularly in the future.
2) Tokai capital markets research committee
Other activities
JOC official partnership
Regional groups, financial institutions, universities and local
government bodies will be invited to discuss the region’s
financial and capital markets, with a special focus on the
Since the 2000 Olympics in Sydney, we have also offered
financial problems confronting entrepreneurs in the three
our support as an official partner of the Japan Olympic
prefectures of the Tokai region. We will research these top-
Committee, which organizes Japan’s athletes and acts to
ics, in keeping with the concept of Expo 2005, to realize
promote the ideals of Olympism in Japan. We hope that
new kinds of growth in the 21st century, from the perspec-
our support for the JOC and its “Good luck Japan” cam-
paigns will also support the further development of the
tive of financial and capital markets.
3) Asset consulting fair for the three prefectures of the
Japanese economy.
Tokai region
The three prefectures of the Tokai region enjoy an abun-
dance of personal financial assets, and the people of the
region exhibit a strong interest in asset consultation. We
Nomura Holdings, Inc. Annual Report 2004 | 51
Research and Policy Pronouncements
held an asset consulting fair in Nagoya in September 2003,
The Nomura Institute of Capital Markets Research
allowing individual investors in the region to come in con-
The Nomura Institute of Capital Markets Research, which
tact with the latest investment information, for which we
opened its doors on April 1, 2004, with the aim of producing
received warm feedback. We plan to continue to provide
objective, highly expert and practicable research and policy
useful corporate information and investment information to
pronouncements, following in the Nomura Research
be of assistance to the people of the region.
Institute’s tradition since 1965, of research into systems,
structures and trends regarding financial and capital markets
Survey on household budgets and the costs of
as well as financial institutions.
raising children
With the rise in standards of living, the Engel’s Coefficient
The mission of the Nomura Institute of Capital
was falling year by year, but the costs of raising children
Markets Research
continued to rise until 1993. After that, however, the
More people are rapidly becoming aware that in order for
impact of the economic slump caused these costs to fall.
Japan’s economy to develop, a money flow structure leveraging
Child-raising costs became an important barometer of the
market mechanisms is urgently required. Today, the most
relationship between the economy and household budgets.
important role of the institute is to conduct research that con-
We have conducted this survey every other year since it
tributes to reforms of financial systems and securities markets
started in 1989. For the past 15 years, we have studied
aimed at the establishment of market-based finance. At the
quantitative economic data on the state of household budg-
same time, we are engaged in research that focuses not only on
ets from the perspective of child-raising costs. We discov-
Japan but also on global, leading-edge topics in other market
ered the importance of this principle and named it the
economies. We also see as an important part of our mission
“Angel Coefficient” (the proportion of child-raising costs to
our engagement in comparative research on the best ways to
total household budgets), which is now widespread in
manage financial and capital markets in China and emerging
Japanese society.
nations, firmly based on the analysis of the fundamentals and
the study on past experiences in Japan, Europe and the U.S.
We publish some of the results of our research in Japanese
in the Capital Markets Quarterly, and also in the English-lan-
guage Capital Research Journal, for distribution in Japan and
throughout the world.
52 | Nomura Holdings, Inc. Annual Report 2004
Directors and Executive Officers
Directors
Chairman
Junichi Ujiie
Directors
Nobuyuki Koga
Hiroshi Toda
Kazutoshi Inano
Nobuyuki Shigemune
Shozo Kumano
Masaharu Shibata*
Hideaki Kubori*
Haruo Tsuji*
Fumihide Nomura
Koji Tajika*
Executive Officers
Senior Managing Director
Junichi Ujiie
President & CEO
(Representative Executive Officer)
Nobuyuki Koga
Chief Executive Officer (CEO)
Deputy President & COO
(Representative Executive Officer)
Hiroshi Toda
Chief Operating Officer (COO)
Deputy President & Co-COO
(Representative Executive Officer)
Kazutoshi Inano
Co-Chief Operating Officer and Head of Asset Management
*Outside director
Senior Managing Director
Takashi Tsutsui
Takashi Yanagiya
Kenichi Watanabe
Takumi Shibata
Hiromi Yamaji
Manabu Matsumoto
Yoshifumi Kawabata
Shogo Sakaguchi
Masanori Itatani
Yoshimitsu Oura
Yusuke Yamada
Hitoshi Tada
Yasuo Agemura
Akihiko Nakamura
Hideyuki Takahashi
Hiroshi Tanaka
Noriyuki Ushiyama
Noriyasu Yoshizawa
Yasuo Yoshihara
Akira Maruyama
Head of Global Wholesale
Head of Domestic Retail
Head of Corporate
Regional Management of Europe Region
Head of Global Merchant Banking
Head of Internal Audit
Head of Global Markets
Head of Global IT&Operations
Regional Management of Americas Region
Head of Global Corporate Communications and in charge
of General Affairs Dept.and Secretariat
Head of Global Investment Banking
Regional Management of Asia&Oceania Region
In charge of Ethics & Discipline Dept.
Chief Financial Officer, Head of Global Risk Management/
Treasury/ Controller/ IR and in charge of Tax Management Dept.
Akihito Watanabe
Head of Global Research
Tetsu Ozaki
Head of Global Equity
Shigesuke Kashiwagi
Head of Global Fixed Income
Co-Regional Management of Europe Region
Yugo Ishida
Kamezo Nakai
Takahide Mizuno
Atsushi Yoshikawa
Nomura Holdings, Inc. Annual Report 2004 |
53
Subsidiaries and Affiliates
(As of March 31, 2004)
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.
2-2-2, Otemachi, Chiyoda-ku
Tokyo 100-0004, 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
NOMURA PENSION SUPPORT & SER-
VICE CO., LTD
1-11-1, Nihonbashi, Chuo-ku
Tokyo 103-0027, Japan
Tel: 81 (3) 3275-0401
Fax: 81 (3) 3275-2277
NOMURA RESEARCH &
ADVISORY CO., LTD.
2-2-2, Otemachi, Chiyoda-ku
Tokyo 100-8130, Japan
Tel: 81 (3) 5255-9416
Fax: 81 (3) 5255-1775
NOMURA BUSINESS SERVICES
CO., LTD.
1-7-2, Nihonbashi-honcho, Chuo-ku
Tokyo 103-0023, Japan
Tel: 81 (3) 3278-9711
Fax: 81 (3) 3241-8187
NOMURA SATELLITE COMMUNI-
CATIONS CO., LTD.
1-9-1, Nihonbashi, Chuo-ku
Tokyo 103-8011, Japan
Tel: 81 (3) 3271-6372
Fax: 81 (3) 3271-6377
NOMURA INSTITUTE OF CAPITAL
MARKETS RESEARCH
1-9-1, Nihonbashi, Chuo-ku
Tokyo 103-8011, Japan
Tel: 81 (3) 5203-1821
Fax: 81 (3) 5203-1825
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 INTERNA-
TIONAL, 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:
6100 Center Drive Suite 1050
Los Angeles, CA90045, U.S.A.
Tel: 1 (310) 348-3000
Fax: 1 (310) 348-3144
San Francisco Office
425 California Street, Suite 2600,
San Francisco, CA94104, U.S.A.
Tel: 1 (415) 445-3800
Fax: 1 (415) 445-3891
São Paulo Representative Office:
Av. Brigadeiro Faria Lima no. 2179
6th Floor-cj. 61, São Paulo, S.P.
Brazil CEP 01452-000
Tel: 55 (11) 3034-2258
Fax: 55 (11) 3034-2259
NOMURA ASSET CAPITAL
CORPORATION
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-9300
Fax: 1 (212) 667-1058
THE CAPITAL COMPANY OF
AMERICA, LLC
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-2250
Fax: 1 (212) 667-1095
NOMURA DERIVATIVE
PRODUCTS, INC.
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-9416
Fax: 1 (212) 667-1400
NOMURA GLOBAL FINANCIAL
PRODUCTS, INC.
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-2357
Fax: 1 (212) 667-1047
NOMURA SECURITIES (BERMUDA)
LTD.
Chesney House, 96 Pitts Bay Road
Pembroke HM 08, Bermuda
Tel: 1 (441) 296-4050
Fax: 1 (441) 296-4061
54 | Nomura Holdings, Inc. Annual Report 2004
Vienna
Budapest
Zurich
Geneva
Frankfurt
Amsterdam
Paris
Luxembourg
Dublin
London
Madrid
Milan
Beijing
Seoul
Shanghai
Tokyo
San Francisco
Los Angeles
Bahrain
Taipei
Manila
Hong Kong
Hanoi
Bangkok
Kuala Lumpur
Singapore
Jakarta
Toronto
Chicago
New York
Bermuda
Sydney
São Paulo
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 CORPORATE RESEARCH
AND ASSET MANAGEMENT, INC.
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-9300
Fax: 1 (212) 667-1058
NOMURA FUNDS RESEARCH AND
TECHNOLOGIES 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
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, 3-A, 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 Holdings, Inc. Annual Report 2004 | 55
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 4NT, U.K.
Tel: 44 (207) 521-3333
Fax: 44 (207) 796-1246
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:
1212, 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
30/F, Two International Finance Centre, 8
Finance Street,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
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, Resona 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 PHILIP-
PINES, 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
30/F Two International Finance Centre
8 Finance Street, 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 DEVELOP-
MENT 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
Asia & Oceania
NOMURA CORPORATE ADVISORY
(CHINA) CO., LTD.
1218, 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
56 | Nomura Holdings, Inc. Annual Report 2004
Domestic Network (Alphabetical order for each region)
(As of April 1, 2004)
Hokkaido
Tohoku
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
Odawara 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
Tokyo metropolitan area Chofu Branch Office
Fuchu Branch Office
Gotanda Branch Office
Hachioji Branch Office
Ikebukuro Branch Office
Ikebukuro Metropolitan Plaza Branch Office
Jiyugaoka Branch Office
Kamata Branch Office
Kichijoji Branch Office
Koiwa Branch Office
Kokubunji Branch Office
Machida Branch Office
Mita Branch Office
Nakano Branch Office
Nerima Branch Office
Ogikubo Branch Office
Omori Branch Office
Seijo Branch Office
Senju Branch Office
Shibuya Branch Office
Shinbashi Branch Office
Shinjuku Branch Office
Shinjuku-eki Nishiguchi Branch Office
Shinjuku Nomura Building Branch Office
Tachikawa Branch Office
Tamagawa Branch Office
Tokyo Branch Office
Toranomon Branch Office
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
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(465) 24-8511
81 (48) 641-8111
81 (48) 645-8100
81 (44) 953-6511
81 (27) 323-9111
81 (45) 902-1122
81 (4) 2923-3811
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
81 (424) 98-6011
81 (42) 369-8111
81 (3) 3491-9101
81 (426) 46-3811
81 (3) 3983-1111
81 (3) 3988-1181
81 (3) 3718-3371
81 (3) 3783-5101
81 (422) 22-8181
81 (3) 3657-1141
81 (42) 328-6011
81 (42) 725-2111
81 (3) 3769-6651
81 (3) 3228-7755
81 (3) 3994-7711
81 (3) 3392-6011
81 (3) 3774-1181
81 (3) 3482-2011
81 (3) 3882-8411
81 (3) 3400-7111
81 (3) 3572-0111
81 (3) 3205-1001
81 (3) 3342-1281
81 (3) 3348-8211
81 (42) 524-1111
81 (3) 3708-1811
81 (3) 3211-2411
81 (3) 3583-2301
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
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
1-17-10, Marunouchi, Kofu-shi, Yamanashi 400-0031
1281-29, Matsudo, Matsudo-shi, Chiba 271-0092
1-3-37, Miya-machi, Mito-shi, Ibaraki 310-0015
1-6-1, Sakae-cho, Odawara-shi, Kanagawa 250-0011
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 330-0063
2-1-1, Babadori, Utsunomiya-shi, Tochigi 320-0026
4-52, Onoe-cho, Naka-ku, Yokohama-shi, Kanagawa 231-0015
1-5-10, Kitasaiwai, Nishi-ku, Yokohama-shi, Kanagawa 220-0004
1-9, Odaki-cho, Yokosuka-shi, Kanagawa 238-0008
1-36-9, 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
Nomura Holdings, Inc. Annual Report 2004 | 57
Office Name
Telephone
Address
Chubu/Hokuriku
Kinki
Chugoku/Shikoku
Kyushu/Okinawa
Ueno Branch Office
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
58 | Nomura Holdings, Inc. Annual Report 2004
81 (3) 3831-9211
81 (776) 22-8011
81 (58) 262-3101
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
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
2-1-8, Ueno, Taito-ku, Tokyo 110-8501
3-4-1, Ote, Fukui-shi, Fukui 910-0005
7-15, Kanda-machi, Gifu-shi, Gifu 500-8833
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
3-4-21, 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
1-15, 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, Shunan-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
Financial Section
Contents
Five-Year Summary
Quarterly Financial Data
Consolidated Balance Sheets
Consolidated Income Statements
Changes in Additional Paid–in Capital and Retained Earnings
Consolidated Statements of Comprehensive Income
Consolidated Statements of Cash Flows
60
61
62
64
65
65
66
Nomura Holdings, Inc. Annual Report 2004 | 59
Please note that these consolidated financial statements are prepared solely for the convenience of the readers and do not include the notes herein. The readers are
strongly recommended to refer to the notes contained in the Form 20-F.
Five-Year Summary (U.S. GAAP)
Operating Results:
Millions of yen
Millions of
U.S. dollars
2000
2001
2002
2003
2004
2004
(1999.4.1〜
2000.3.31)
(2000.4.1〜
2001.3.31)
(2001.4.1〜
2002.3.31)
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
(2003.4.1〜
2004.3.31)
Revenue:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees from investment banking . . . . . . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Loss) gain on investments in equity securities . . . . . . . . . .
Gain from changes in equity of an affiliated company . . . .
PFG entities product sales . . . . . . . . . . . . . . . . . . . . . . . . .
PFG entities rental income . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sales of PFG entities . . . . . . . . . . . . . . . . . . . . . . .
Gain (loss) on private equity investments . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses:
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . .
Commissions and floor brokerage . . . . . . . . . . . . . . . . . . .
Information processing and communications . . . . . . . . . . .
Occupancy and related depreciation . . . . . . . . . . . . . . . . .
Business development expenses . . . . . . . . . . . . . . . . . . . . .
PFG entities cost of goods sold . . . . . . . . . . . . . . . . . . . . .
PFG entities expenses associated with rental income . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-interest expenses . . . . . . . . . . . . . . . . . . . . .
Income before income taxes and cumulative
¥329,332
93,644
63,799
253,328
419,742
90,839
—
56,476
144,005
—
—
48,616
1,499,781
437,131
1,062,650
286,268
21,342
54,961
71,191
20,418
37,408
51,706
147,136
690,430
¥189,841
87,160
144,882
307,989
518,941
(98,968)
—
117,523
103,339
—
—
98,591
1,469,298
553,643
915,655
305,190
26,393
70,998
65,319
29,940
84,004
43,760
133,879
759,483
¥140,001
75,255
109,985
162,228
500,541
(55,860)
3,504
294,931
177,053
116,324
232,472
68,965
1,825,399
504,048
1,321,351
379,540
20,962
87,252
73,787
26,652
200,871
111,529
247,786
1,148,379
¥141,640
81,847
79,290
172,308
401,924
(41,288)
—
—
—
—
(14,391)
19,589
840,919
274,645
566,274
244,167
20,844
77,389
57,152
24,361
—
—
94,952
518,865
¥210,216
86,994
66,193
229,042
396,870
55,888
—
—
—
—
13,138
41,205
1,099,546
296,443
803,103
259,336
19,169
80,031
54,221
23,100
—
—
84,570
520,427
effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . .
372,220
156,172
172,972
47,409
282,676
Income tax expense:
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before cumulative effect of accounting change . . .
Cumulative effect of accounting change . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,866
155,805
168,671
203,549
—
¥203,549
53,693
45,069
98,762
57,410
—
¥57,410
Cash Flow:
Net cash (used in) provided by operating activities . . . . . .
Net cash (used in) provided by investing activities . . . . . . . .
Net cash (used in) provided by financing activities . . . . . .
Cash and cash equivalents at end of the year . . . . . . . . . . .
¥599,968
(326,099)
(72,386)
¥522,970
¥366,237
(271,403)
(101,396)
¥503,676
Balance Sheet Data (period end):
Cash and cash deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity investments . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-recourse PFG entities loans and bonds . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity . . . . . . . . . .
¥1,074,691
6,812,323
4,365,382
2,358,472
14,610,868
1,059,275
6,256,084
3,068,711
556,441
1,712,124
547,257
13,199,892
1,410,976
¥14,610,868
¥828,649
9,811,149
3,625,195
2,881,031
17,146,024
948,269
8,732,502
2,857,316
609,557
1,692,738
869,214
15,709,596
1,436,428
¥17,146,024
60 | Nomura Holdings, Inc. Annual Report 2004
61,898
(56,972)
4,926
168,046
—
¥168,046
Millions of yen
¥(1,303,384)
(52,182)
1,195,507
¥356,635
Millions of yen
¥775,734
10,690,291
4,877,257
1,414,991
17,758,273
1,471,384
9,497,084
2,693,746
518,156
1,972,974
—
16,153,344
1,604,929
¥17,758,273
25,519
11,776
37,295
10,114
109,799
¥119,913
108,434
1,913
110,347
172,329
—
¥172,329
¥34,113
134,053
(24,612)
¥491,237
¥(1,825,894)
45,471
1,945,536
¥637,372
¥955,509
13,100,242
5,926,700
1,186,995
21,169,446
1,183,535
11,773,794
3,888,720
411,699
2,269,370
—
19,527,118
1,642,328
¥21,169,446
¥930,637
19,128,028
8,609,096
1,085,205
29,752,966
3,024,341
16,164,637
5,976,966
415,865
2,385,469
—
27,967,278
1,785,688
¥29,752,966
$2,018
835
635
2,199
3,809
536
—
—
—
—
126
396
10,554
2,845
7,709
2,489
184
768
520
222
—
—
813
4,996
2,713
1,041
18
1,059
1,654
—
$1,654
Millions of
U.S. dollars
$(17,526)
436
18,675
$6,118
Millions of
U.S. dollars
$8,933
183,605
82,637
10,417
285,592
29,030
155,161
57,371
3,992
22,898
—
268,452
17,140
$285,592
Quarterly Financial Data
Millions of yen
2003
2004
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
(2002.4.1〜
2002.6.30)
(2002.7.1〜
2002.9.30)
(2002.10.1〜
2002.12.31)
(2003.1.1〜
2003.3.31)
(2003.4.1〜
2003.6.30)
(2003.7.1〜
2003.9.30)
(2003.10.1〜
2003.12.31)
(2004.1.1〜
2004.3.31)
Revenue:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥46,091
¥34,685
¥34,303
¥26,561
¥33,752
¥55,967
¥57,590
¥62,907
Fees from investment banking . . . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . . . . . . .
(Loss) gain on investments in equity securities . . . . . . .
Gain (loss) on private equity investments . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15,632
24,190
36,964
91,065
(3,325)
3,037
3,317
18,281
21,905
29,185
16,937
17,541
48,340
115,848
107,190
(7,094)
(5,929)
6,401
(21,912)
(1,991)
3,729
30,997
15,654
57,819
87,821
(8,957)
(9,508)
6,142
14,498
13,735
80,432
19,860
17,022
67,097
113,844
104,036
16,168
15,601
(669)
8,030
7,267
6,738
24,408
16,792
33,800
78,333
2,788
(2,105)
5,845
28,228
18,644
47,713
100,657
21,331
8,645
20,592
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
216,971
213,282
204,137
206,529
279,790
293,588
217,451
308,717
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74,305
72,533
71,990
55,817
79,703
78,901
67,220
70,619
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥142,666
¥140,749
¥132,147
¥150,712
¥200,087
¥214,687
¥150,231
¥238,098
Non-interest expenses:
Compensation and benefits . . . . . . . . . . . . . . . . . . . . .
¥63,595
¥57,688
¥59,472
¥63,412
¥65,903
¥67,686
¥61,823
¥63,924
Commissions and floor brokerage . . . . . . . . . . . . . . . .
Information processing and communications . . . . . . . .
Occupancy and related depreciation . . . . . . . . . . . . . . .
Business development expenses . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,477
18,176
14,563
5,895
17,589
5,553
19,233
14,537
7,782
13,690
3,564
18,801
14,118
4,823
12,379
7,250
21,179
13,934
5,861
51,294
4,904
18,890
13,319
4,983
20,788
4,625
19,520
13,506
5,428
15,971
3,482
19,155
12,929
5,495
17,416
6,158
22,466
14,467
7,194
30,395
Total non-interest expenses . . . . . . . . . . . . . . . . . .
124,295
118,483
113,157
162,930
128,787
126,736
120,300
144,604
Income (loss) before income taxes and
cumulative effect of accounting change . . . . . . . . . . . . .
18,371
22,266
18,990
(12,218)
71,300
87,951
29,931
93,494
Income tax expense (benefit):
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax expense . . . . . . . . . . . . . . . . . . . . . . . . . .
15,100
(4,775)
10,325
(1,256)
10,297
9,041
2,085
1,934
4,019
9,590
4,320
13,910
27,093
5,159
32,252
38,418
1,895
40,313
15,265
27,658
(1,065)
(4,076)
14,200
23,582
Income (loss) before cumulative effect of accounting change
8,046
13,225
14,971
(26,128)
39,048
47,638
15,731
69,912
Cumulative effect of accounting change . . . . . . . . . . . .
109,799
—
—
—
—
—
—
—
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥117,845
¥13,225
¥14,971
¥(26,128)
¥39,048
¥47,638
¥15,731
¥69,912
Per share of common stock:
Basic
Income (loss) before cumulative effect of accounting change
Cumulative effect of accounting change . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted
Income (loss) before cumulative effect of accounting change
Cumulative effect of accounting change . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥4.09
55.86
¥59.95
¥4.09
55.86
¥59.95
¥6.73
—
¥6.73
¥6.73
—
¥6.73
Yen
¥7.65
¥(13.46)
¥20.14
¥24.58
¥8.10
¥36.01
—
—
—
—
—
—
¥7.65
¥(13.46)
¥20.14
¥24.58
¥8.10
¥36.01
¥7.65
¥(13.46)
¥20.14
¥24.58
¥8.10
¥36.01
—
—
—
—
—
—
¥7.65
¥(13.46)
¥20.14
¥24.58
¥8.10
¥36.01
Nomura Holdings, Inc. Annual Report 2004 | 61
Consolidated Balance Sheets
Millions of yen
Millions of
U.S.dollars
2003
(2003.3.31)
2004
(2004.3.31)
2004
(2004.3.31)
ASSETS
Cash and cash deposits:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥491,237
¥637,372
$6,118
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits with stock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
422,570
41,702
955,509
248,737
44,528
930,637
2,388
427
8,933
Loans and receivables:
Loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables from other than customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
436,371
404,388
311,665
543,894
10,744
464,776
Receivables under resale agreements and securities borrowed transactions . . . . . . . . . . . . . . . . . . . . . . .
8,603,170
12,881,752
Securities pledged as collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,359,807
5,232,640
5,221
103
4,461
123,648
50,227
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(15,159)
(5,778)
(55)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,100,242
19,128,028
183,605
Trading assets and private equity investments:
Securities inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,152,393
7,837,663
Derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
503,417
270,890
479,659
291,774
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,926,700
8,609,096
75,232
4,604
2,801
82,637
Other assets:
Office buildings, land, equipment and facilities
(net of accumulated depreciation and amortization of
¥177,374 million in 2003 and ¥182,449 million
($1,751 million) in 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in and advances to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
184,868
65,211
270,120
138,084
223,970
112,313
192,429
200,700
64,764
202,896
169,459
207,668
105,901
133,817
1,926
622
1,948
1,627
1,993
1,017
1,284
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,186,995
1,085,205
10,417
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥21,169,446
¥29,752,966
$285,592
62 | Nomura Holdings, Inc. Annual Report 2004
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short–term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,183,535
¥3,024,341
$29,030
Millions of yen
Millions of
U.S.dollars
2003
(2003.3.31)
2004
(2004.3.31)
2004
(2004.3.31)
Payables and deposits:
Payables to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables to other than customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
180,565
384,910
772,964
355,429
Payables under repurchase agreements and securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,952,135
14,780,541
Time and other deposits received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
256,184
255,703
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,773,794
16,164,637
Trading liabilities:
Securities sold but not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,401,715
5,559,598
Derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
487,005
417,368
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,888,720
5,976,966
Other liabilities:
Accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28,608
86,582
296,509
411,699
93,538
86,439
235,888
415,865
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,269,370
2,385,469
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19,527,118
27,967,278
Shareholders ’equity:
Common stock
Authorized—6,000,000,000 shares
Issued—1,965,919,860 shares at March 31, 2003 and 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182,800
151,328
182,800
154,063
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,407,028
1,550,231
Accumulated other comprehensive (loss) income:
Minimum pension liability adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(41,558)
(22,329)
(63,887)
(34,221)
(34,380)
(68,601)
7,420
3,412
141,875
2,454
155,161
53,365
4,006
57,371
898
830
2,264
3,992
22,898
268,452
1,755
1,479
14,880
(328)
(331)
(659)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,677,269
1,818,493
17,455
Less—Common stock held in treasury, at cost—25,556,340 shares and
24,263,831 shares at March 31, 2003 and 2004, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(34,941)
(32,805)
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,642,328
1,785,688
(315)
17,140
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥21,169,446
¥29,752,966
$285,592
Nomura Holdings, Inc. Annual Report 2004 | 63
Consolidated Income Statements
Millions of yen
(%)
2003
2004
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
YoY
increase
(decrease)
Millions of
U.S. dollars
2004
(2003.4.1〜
2004.3.31)
Revenue:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥141,640
¥210,216
Fees from investment banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Loss) gain on investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain (loss) on private equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81,847
79,290
172,308
401,924
(41,288)
(14,391)
19,589
840,919
274,645
566,274
86,994
66,193
229,042
396,870
55,888
13,138
41,205
1,099,546
296,443
803,103
Non-interest expenses:
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
244,167
259,336
Commissions and floor brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information processing and communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy and related depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20,844
77,389
57,152
24,361
94,952
19,169
80,031
54,221
23,100
84,570
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
518,865
520,427
48.4
6.3
(16.5)
32.9
(1.3)
—
—
110.3
30.8
7.9
41.8
6.2
(8.0)
3.4
(5.1)
(5.2)
(10.9)
0.3
$2,018
835
635
2,199
3,809
536
126
396
10,554
2,845
7,709
2,489
184
768
520
222
813
4,996
Income before income taxes and cumulative effect
of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47,409
282,676
496.2
2,713
Income tax expense (benefit):
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,519
11,776
37,295
108,434
1,913
110,347
324.9
(83.8)
195.9
1,041
18
1,059
Income before cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . .
10,114
172,329
1,603.9
1,654
Cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109,799
—
—
—
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥119,913
¥172,329
43.7
$1,654
Per share of common stock:
Basic—
Yen
(%)
U.S. dollars
Income before cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥5.17
56.09
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥61.26
¥88.82
1,618.0
—
¥88.82
—
45.0
Diluted—
Income before cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥5.17
56.09
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥61.26
¥88.82
1,618.0
—
¥88.82
—
45.0
$0.85
—
$0.85
$0.85
—
$0.85
64 | Nomura Holdings, Inc. Annual Report 2004
Changes in Additional Paid–in Capital and Retained Earnings
Millions of yen
Millions of
U.S. dollars
2003
2004
2004
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
(2003.4.1〜
2004.3.31)
Additional paid-in capital
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥150,979
¥151,328
$1,453
Gain on sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of common stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
349
1,807
928
17
9
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥151,328
¥154,063
$1,479
Retained earnings
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,316,221
¥1,407,028
$13,506
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
119,913
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(29,106)
172,329
(29,126)
1,654
(280)
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,407,028
¥1,550,231
$14,880
Consolidated Statements of Comprehensive Income
Millions of yen
Millions of
U.S. dollars
2003
2004
2004
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
(2003.4.1〜
2004.3.31)
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥119,913
¥172,329
$1,654
Other comprehensive (loss) income:
Change in cumulative translation adjustments, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum pension liability adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,644)
(16,586)
(19,230)
(12,051)
7,337
(4,714)
(116)
71
(45)
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥100,683
¥167,615
$1,609
Nomura Holdings, Inc. Annual Report 2004 | 65
—
324
(536)
18
1,673
(72)
(27,231)
20,659
(46,190)
43,513
(17,650)
5,690
771
(149)
Consolidated Statements of Cash Flows
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥119,913
¥172,329
$1,654
Millions of yen
Millions of
U.S.dollars
2003
2004
2004
(2002.4.1〜
2003.3.31)
(2003.4.1〜
2004.3.31)
(2003.4.1〜
2004.3.31)
Adjustments to reconcile net income to net cash (used in)provided by operating activities:
Cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(109,799)
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss (gain) on investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income tax (benefit) expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31,249
41,288
11,776
—
33,706
(55,888)
1,913
Changes in operating assets and liabilities:
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits with stock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(36,585)
(6,271)
174,331
(7,485)
Trading assets and private equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,167,700)
(2,836,906)
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,242,333
2,152,243
Receivables under resale agreements and securities borrowed transactions . . . . . . . . . . . . . . . . . . . . .
(2,315,743)
(4,812,090)
Payables under repurchase agreements and securities loaned transactions . . . . . . . . . . . . . . . . . . . . . .
3,236,698
4,533,150
Loans, receivables and securities pledged as collateral, net of allowance . . . . . . . . . . . . . . . . . . . . . . .
(590,802)
(1,838,725)
Time and other deposits received and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(477,756)
Accrued income taxes,net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(31,738)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash (used in) provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87,250
34,113
592,779
80,273
(15,524)
(1,825,894)
(17,526)
Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . . . . .
(45,235)
(39,303)
Proceeds from sales of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . . . . . . . .
690
Payments for purchases of investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10,299)
Proceeds from sales of investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in other investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30,067
152,209
6,621
Net cash provided by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
134,053
1,341
(61)
24,309
61,705
(2,520)
45,471
Cash flows from financing activities:
Increase in long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
654,407
712,675
Decrease in long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(324,232)
(551,897)
Increase (decrease) in short-term borrowings, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(290,775)
1,824,501
Proceeds from sales of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
(34,527)
(29,485)
8,027
(4,084)
(43,686)
(377)
13
(1)
233
592
(24)
436
6,841
(5,298)
17,513
77
(39)
(419)
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(24,612)
1,945,536
18,675
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8,952)
(18,978)
Net increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
134,602
356,635
146,135
491,237
(182)
1,403
4,715
Cash and cash equivalents at end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥491,237
¥637,372
$6,118
66 | Nomura Holdings, Inc. Annual Report 2004
Corporate Data / Share Data
Corporate Data
Type of Business
Nomura Holdings, Inc., is a holding company with controlling stakes in compa-
Listings
The common shares of Nomura Holdings, Inc. are listed on the Tokyo, Osaka,
nies that conduct investment and financial services businesses with an emphasis
Nagoya and Singapore stock exchanges. The shares are also listed on the New
on securities businesses.
Date of Incorporation
December 25, 1925
Representative
Nobuyuki Koga, President and Chief Executive Officer
Capital
¥182,799,788,854 (As of March 31, 2004)
Number of Common Stock Issued
1,965,919,860 shares (As of March 31, 2004)
York Stock Exchange in the form of American Depositary Receipts and on the
Amsterdam Stock Exchange (Euronext) both through the Amsterdam Securities
Account System and in the form of Continental Depositary Receipts.
Head Office
1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8011, Japan
Tel: 81 (3) 5255-1000
Fax: 81 (3) 5255-1064
http://www.nomura.com
Transfer Agent and Registrar
UFJ Trust Bank Limited
Corporate Agency Department 81 (3) 5683-5111
Number of Shareholders
196,734 (Unit shareholders: 154,273) (As of March 31, 2004)
Depositary for American Depositary Receipt (ADRs)
The Bank of New York
ADR Division 1 (212) 815-2042
http://www.adrbny.com
Ratio: 1 ADR = 1 ordinary share
Share Data
Number of Unit Shareholders
Component Ratio of Shareholders
日米個人金融資産比較
(%)
（兆円）
160,000
120,000
80,000
40,000
0
00/3
01/3
02/3
03/3
04/3
(FY)
100
300
80
200
60
40
100
20
0
0
12.37
10.38
9.53
8.67
8.47
For further information, please contact:
17.93
18.46
19.41
21.55
21.58
0.76
0.66
0.63
0.70
1.10
29.30
30.11
28.27
28.97
40.44
Investor Relations Department
Nomura Group Headquarters
Nomura Securities Co., Ltd.
1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-
39.64
40.39
42.15
40.10
28.40
8011, Japan
00/3
00
01/3
01
02/3
02
03/3
03
04/3 (FY)
04
Financial Institutions
Graph Space
Foreign Legal Entities
Securities Firms
Graph Space
Individuals and Others
Other Legal Entities
Tel: 81 (3) 3211-1811
URL: http://www.nomura.com
Credit Ratings
S&P
Moody’s
R&I
JCR
*As of July 14, 2004
Nomura Holdings, Inc.
Nomura Securities Co., Ltd.
Long-term
Short-term
Long-term
Short-term
BBB
Baa1
A+
AA
A-2
—
a-1
—
BBB+
A3
A+
AA
A-2
P-2
a-1
—
Nomura Holdings, Inc. Annual Report 2004 | 67
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