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Annual Report 2005
Year Ended March 31, 2005
Nomura Holdings, Inc.
Profile
Nomura Group is a global financial services group
dedicated to providing a broad range of financial
services for individual, institutional, corporate and
government clients.
With Nomura Holdings, Inc. (NHI) as its holding
company, the Group includes Nomura Securities Co., Ltd.,
Nomura Asset Management Co., Ltd. and other
consolidated subsidiaries in Japan and overseas. The
Group offers a diverse line of competitive products and
value-added financial and advisory solutions through its
global headquarters in Tokyo, 133 branches in Japan, and
an international network in 28 countries; with regional
headquarters in Hong Kong, London, and New York.
The Group’s business activities include investment
consultation and brokerage services for retail investors in
Japan, and, on a global basis, brokerage and trading
services, securities underwriting, investment banking
advisory services, merchant banking, and asset
management. The Group is also active in the area of
investment education.
Enormous changes are occurring in the operating
environment. Positioning itself at the center of this
change, Nomura Group is marshaling its aggregate
strengths to supply outstanding financial solutions.
Through this process, the Group seeks to increase its
corporate value while contributing to economic vitality.
Forward-looking Statements
This annual report contains forward-looking statements about the
future plans, strategies, beliefs and performance of Nomura Group.
These forward-looking statements are not historical facts. They are
Contents
page. 01R Consolidated Financial Highlights
page. 02R To Our Shareholders and Customers
page. 10R Business Portfolio
page. 12R Business Outline
page. 14R Domestic Retail
page. 20R Global Wholesale
page. 22R Global Markets
page. 26R Global Investment Banking
page. 30R Global Merchant Banking
page. 34R Asset Management
page. 40R Global Research
page. 43R Corporate Governance
page. 48R Compliance Structure
page. 50R Corporate Citizenship
page. 52R A Better Workplace
page. 54R Product Policies
expectations, estimates, forecasts and projections based on information
page. 55R Subsidiaries and Affiliates
currently available to the company and are subject to a number of
risks, uncertainties and assumptions, which, without limitation, include
market trends, economic trends, competition in the Japanese financial
industry, laws and regulations, and the tax system. As such, actual
results may differ materially from those projected.
page. 58R Domestic Network
page. 60R Financial Section
page. 67R Corporate Data
Consolidated Financial Highlights (U.S. GAAP)
Years ended March 31
Annual Report 2005 R 1
Millions of yen
Millions of
U.S. dollars(5)
2001
2002
2003
2004
2005(1)
2005
Operating Results:
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,469,298
¥ 1,825,399 ¥ 807,651
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
915,655
156,172
57,410
1,321,351
172,972
168,046
566,274
47,409
119,913
¥ 1,045,936 ¥ 1,126,237
799,190
803,103
282,676
172,329
204,835
94,732
$ 10,504
7,454
1,910
884
Balance Sheet Data (period end):
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥17,146,024
¥17,758,273
¥21,169,446
Total shareholders’ equity . . . . . . . . . . . . . . . . .
Return on equity (ROE)(2)
. . . . . . . . . . . . . . . . . .
1,436,428
1,604,929
1,642,328
¥29,752,966 ¥34,488,853
1,868,429
1,785,688
$321,664
17,426
4.0%
11.1%
7.4%
10.1%
5.2%
Yen
U.S. dollars
Per Share Data:
Net income-basic(3)
. . . . . . . . . . . . . . . . . . . . . . .
Shareholders’ equity (4) . . . . . . . . . . . . . . . . . . . . .
Cash dividends(4)
. . . . . . . . . . . . . . . . . . . . . . . . .
¥ 29.25
¥ 85.57
¥ 61.26
¥ 88.82
¥ 48.80
731.77
17.50
816.48
15.00
846.40
15.00
919.67
15.00
962.48
20.00
$0.46
8.98
0.19
Notes:
(1) Figures in this publication are for fiscal years beginning on April 1 and ending on March 31 of the following year.
(2) Calculated by dividing net income by average shareholders’ equity.
(3) Calculated using the weighted average number of shares outstanding for the year (excluding treasury shares held by us).
(4) Calculated using the number of shares outstanding (excluding treasury shares held by us) at year end.
(5) Calculated using the yen-dollar exchange rate of U.S.$1.00=¥107.22, 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, 2005.
❖ Net revenue
❖ Income before income taxes
❖ Net income &
return on equity (ROE)
(millions of yen)
1,500,000
(millions of yen)
300,000
(millions of yen)
200,000
1,200,000
900,000
600,000
300,000
0
240,000
180,000
120,000
60,000
0
160,000
120,000
80,000
40,000
0
(%)
15
12
9
6
3
0
2001 2002 2003 2004 2005
2001 2002 2003 2004 2005
2001 2002 2003 2004 2005
Net income (lhs)
Return on equity (rhs)
Nomura Holdings, Inc. R 2
To Our Shareholders and Customers
Customer needs are becoming
more diverse as deregulation
progresses in Japan. In
response, we are adopting a
broader view of the securities
business. At Nomura Group,
we are further raising the
speed at which we respond to
changes as we work toward
being a company that delivers
clients superior services and
solutions that meet investment
needs of all kinds.
Annual Report 2005 R 3
Overview of Operating Results
Net revenue edged down 0.5% year on year to ¥799.2 billion in the fiscal year ended March 31, 2005. Income
before income taxes declined 28% to ¥204.8 billion and net income decreased 45% to ¥94.7 billion.
Domestic Retail recorded net revenue of ¥304.4 billion, essentially unchanged from the prior fiscal year. This
division met customers’ needs with equities, investment trusts, domestic bonds, foreign bonds and many other
types of investments. Due to the end of Japan’s blanket guarantee on bank deposits and our consultation ser-
vices in response to demand for the placement of personally-held stock certificates in special accounts for stocks,
Domestic Retail achieved an increase of ¥4.8 trillion in client assets, including regional financial institutions, lifting
these assets to ¥45.6 trillion, a new record.
In Global Wholesale, results were mainly weighed down by lower market volatility and a decline in client order
flows primarily associated with fixed income related products. On the other hand, we posted a strong perfor-
mance in investment banking, ranking first in fiscal year stock underwriting and M&A advisory services in Japan.
This reflected the large volume of corporate financing and M&A activities by Japanese companies. We were thus
able to limit the decline in net revenue to 11%, to ¥325.9 billion.
Asset Management achieved 21% growth in net revenue to ¥43.5 billion. This was mainly the result of growth
in assets under management due to the launch of new products that meet our customers’ diversifying asset
management needs, such as investment trusts offering frequent distributions.
Nomura Holdings, Inc. R 4
Change
TRANSLATING CHANGE INTO OPPORTUNITY
A Changing Operating Environment
prompting individual investors to take a closer look at the
In Japan, we are seeing structural shifts in money flows and
relationship between risk and return, as well as to shift their
ongoing deregulation. These events are greatly altering our
financial assets from savings to investments.
operating environment.
Strong sales of Japanese government bonds for individual
From a macroeconomic perspective, there are uncertainties
investors show that individuals are still placing priority on safety.
about the external operating environment due to global tension,
But internet trades are now playing a significant role in stock
higher oil prices and other events. However, a downturn in
markets. And we are witnessing growth in the balance of assets
Japan’s economy is becoming less likely due mainly to rising
in investment trusts. Individual investors in Japan, who have
private-sector capital expenditures. There is also hope for con-
traditionally placed most of their savings in bank deposits, are
tinued strength in personal spending backed by improvements
now beginning to participate in securities markets.
in employment and personal income. Japan’s economy is thus
In the corporate sector, prolonged restructuring pro-
breaking out of its temporary lull.
grams are coming to an end and earnings are rebounding,
Looking at government policies in Japan, the Program for
giving once cash-strapped Japanese companies excess cash.
Further Financial Reform announced by the Financial Services
At the end of March 2005, this totaled some ¥16 trillion.
Agency at the end of 2004 is likely to accelerate the shift from
Because of this, a growing number of companies are switch-
savings to investments. We are also seeing changes in various
ing from financial policies focused on strengthening balance
financial systems, such as the end of the government’s blanket
sheets to capital policies aimed at increasing shareholder
guarantee on bank deposits in April 2005. These changes are
value. This represents a huge shift in the thinking of Japan’s
Annual Report 2005 R 5
corporate executives. Moreover, companies are increasingly
using many financial schemes to differentiate ourselves from
using mergers and acquisitions to achieve strategic objec-
other financial institutions.
tives. I believe these changes will become even more pro-
As I said, barriers that once separated individual categories
nounced in the coming years.
of financial services are being swept away as structural changes
Deregulation is opening up many fields of business that
take place in money flows and deregulation advances. But these
had been off limits to securities companies. The diversity
same trends are opening the way to competitors from other
of solutions we can offer clients is growing as a result. For
industries. We therefore expect to face increasingly intense com-
example, securities companies were prohibited from direct
petition. Nomura Group must take full advantage of these
involvement in real estate businesses. But now we are free
changes. I believe that our current operating environment pre-
to transform real estate into financial products like J-REITs
sents excellent opportunities for business expansion. This is
and real-estate funds. The J-REIT has gained widespread
why we are taking on the challenge of entering new fields by
acceptance among investors in Japan. Total market capi-
adopting a broader view of the securities business.
talization of J-REITs is now more than ¥2 trillion. Loans are
another field where securities companies can offer solu-
tions. Barriers to entry in loan-related businesses are dis-
appearing rapidly as the volume of loans sold through
securitizations and other schemes grows. This situation
allows us to provide clients with a variety of solutions by
Nomura Holdings, Inc. R 6
Strategy
GENERATING VALUE FROM SYNERGY
Organizational Changes
With these changes, we have moved from a management
Changes in the business climate are creating greater oppor-
framework that positioned securities as our core business to
tunities for all financial institutions. To transform these
an organization that strongly reflects the nature of our op-
opportunities into new businesses, we must serve a broader
erations under the holding company structure. Furthermore,
spectrum of customer segments.
this organization will allow us to accelerate the growth of
To accomplish this, we must identify different kinds of
global businesses and start new businesses faster.
needs through face-to-face interaction with customers. We
Next, we appointed executive officers to head up two
must then look beyond the traditional bounds of the securi-
businesses: asset finance, where we foresee growth in secu-
ties business to translate these needs into new businesses. By
ritization backed by real estate and other assets; and public
working hard at repeating this process, I believe we can
corporations, where we expect to see more opportunities to
increase our areas of expertise and create a new growth model.
serve local government agencies. Overseas, we named an
This is why we are building an organization capable of bring-
executive officer to oversee our operations in China. This clearly
ing about the necessary internal reforms.
positions China as a strategic region for Nomura Group.
First, we realigned some of our business lines on April 1,
In addition, we will move quickly to develop businesses in
2005. Previously we had three lines: Domestic Retail, Global
new domains by adopting a broader view of the securities
Wholesale and Asset Management. This realignment divided
business. For instance, we are establishing systems and
Global Wholesale into Global Markets, Global Investment
functions for a trust agency business, loan business, real estate
Banking and Global Merchant Banking, giving us five busi-
intermediary business and other businesses, all with the aim
ness lines. In addition, Global Markets now includes Asset
of serving the diversifying needs of clients.
Finance along with Global Fixed Income and Global Equity.
Annual Report 2005 R 7
Three Business Strategies
business domains to extend our reach into fields beyond the
We are using our new structure to execute three key busi-
conventional bounds of securities companies.
ness strategies.
The third strategy is to enhance our value-added solutions
The first strategy is to further increase our customer base
business. We expect that corporate needs for financial solu-
and assets under management. In the past fiscal year, Domestic
tions will become increasingly complex and sophisticated. We
Retail client assets grew 12% and assets under management
will meet these requirements by using our global network,
in Asset Management increased 4%. We plan to continue this
sound financial position, specialized skills in advisory services,
growth by giving customers more ways to access Nomura
and other strengths. We will continue to work on building
Group, such as through the securities intermediary business,
systems capable of delivering high-caliber financial solutions
and expanding our product lineup, such as by launching funds
in a timely fashion.
with frequent distributions.
Each Nomura Group division is further refining its special-
The second strategy is to expand and enhance our
ized knowledge and generating greater synergies through
business portfolio. We are already focused on expanding busi-
collaboration with other divisions. Through this process, we
ness through new products in fields like loans and real estate.
will pinpoint the diversifying needs of our clients. Nomura
Now we are working to further refine our financial technol-
Group’s collective resources will also be key to quickly expand-
ogy. That will require eliminating the walls that separate prod-
ing into new business domains.
uct categories, business lines and domestic and overseas
operations. We must develop and distribute products that
reflect the increasingly diverse needs of clients, enlarging our
Nomura Holdings, Inc. R 8
MissionBUILDING PRESENCE ON SUCCESS
Superior Services for All Types of Investments
value. Another trend is demand for increasingly diverse and
Nomura Group’s vision is to enhance its presence as a glo-
sophisticated solutions. The primary cause of this is the rising
bally competitive Japanese financial institution. We have set
diversity of investors’ asset management needs due to ex-
a management target of achieving an average consolidated
tremely low interest rates in Japan.
ROE of between 10% and 15% over the medium to long
The securities business has long been the core of
term. In the past fiscal year, our ROE was only 5.2%. We will
Nomura Group’s operations. But now we must respond
focus on our three core strategies: further increasing our cus-
quickly to changes. Our aim is to go beyond the traditional
tomer base and assets under management, expanding and
bounds of the securities business to offer clients superior
enhancing our business portfolio, and enhancing our value-
services and solutions.
added solutions business. By implementing these initiatives,
Nomura Group is active in a variety of investment edu-
we intend to quickly build an earnings base capable of sus-
cation activities, such as holding seminars at over 110 uni-
taining an ROE of between 10% and 15%, thereby increas-
versities in Japan. We believe that disseminating accurate
ing shareholder value.
knowledge concerning investment and risk is essential to
Japan’s financial markets are at a crucial turning point. As
the further development of Japan’s securities markets. We
companies shift emphasis to the interests of shareholders, we
will continue to conduct educational activities as part of long-
are seeing growth in the number of companies that are con-
term measures to broaden the base of investors in Japan.
sidering aggressive capital policies to increase shareholder
Annual Report 2005 R 9
From left:
Deputy President & COO Hiroshi Toda,
President & CEO Nobuyuki Koga,
Deputy President & Co-COO Kazutoshi Inano
Making Japan and Nomura Stronger
over the years. By supporting financial and capital markets,
We must heighten the global stature of Japan’s capital markets,
we will play a role in guiding Japan’s economy to a path of
our mother market, if we are to become a globally competi-
sustained growth. I believe this will lead directly to growth in
tive Japanese financial institution. A financial institution’s global
our corporate value.
competitiveness is closely tied to the strength of its home
country. A sound national economy translates into strength
in the financial world too. We will make Nomura stronger
while making Japan stronger. And as Japan becomes stron-
ger, Nomura will gain strength as well. Our goal has been to
achieve this virtuous cycle.
As our 80th anniversary, 2005 is a critical point in our
history. Many changes are occurring in Japan’s economy. We
view them as enormous business opportunities, as well as
opportunities for Nomura Group to play an even greater role.
We must draw on the collective strengths of Nomura Group
that are rooted in the trust we have earned from our customers
Nobuyuki Koga
President & Chief Executive Officer
August 2005
Nomura Holdings, Inc. R 10
Business Portfolio
Net revenue
Income before income taxes
Years ended March 31
DOMESTIC RETAIL
(millions of yen)
320,000
Domestic Retail serves primarily individual investors through
its investment consulting business. We provide products and
advice matched to customer needs based on a thorough
understanding of the nature of each customer’s assets, risk
tolerance, life stage, and other parameters. We supplement
face-to-face consulting with call centers, internet services
and other channels to give customers more ways to contact
us. Our goal is to offer our customers the most convenient
services possible.
R
240,000
160,000
80,000
0
2001
2002
2003
2004
2005
(millions of yen)
GLOBAL MARKETS
Global Markets has three business lines: Global Fixed Income,
Global Equity and Asset Finance. We are mainly involved in
the global sale and trading of bonds, equity and foreign ex-
change. We are strengthening our trading capabilities and
product supply expertise to provide the derivative and hybrid
products needed to respond to the increasing complexity and
diversity of financial instruments. Corporate financing using
securitization schemes and asset-backed financing, chiefly
using real estate, are other core activities.
R
GLOBAL INVESTMENT BANKING
Global Investment Banking is active in Japan, Europe, the U.S.,
Asia and other major financial markets. We offer a broad range
of investment banking services such as the underwriting of
bonds, stocks and other securities, as well as M&A advisory
and other financial advisory services. We also have a solid track
record in cross-border deals. We are developing a capital
solutions business in collaboration with Global Markets to offer
our clients tailor-made financial solutions.
R
320,000
240,000
160,000
80,000
0
160,000
120,000
80,000
40,000
0
2001
2002
2003
2004
2005
(millions of yen)
GLOBAL MERCHANT BANKING
Global Merchant Banking uses Nomura Group’s own capital
to generate earnings from private equity investments. In Japan,
Nomura Principal Finance Co., Ltd. (NPF) is active in corporate
buyouts, corporate rehabilitations and related fields. NPF seeks
opportunities to make new investments and raise the value of
companies. In Japan and Europe, we are also engaged in
venture capital investment, mainly in the biopharma and tech-
nology sectors. In Europe, we invest in funds operated and
managed by Terra Firma Capital Partners Limited, an indepen-
dent private equity firm.
R
2001
2002
2003
2004
2005
(millions of yen)
150,000
100,000
50,000
0
-20,000
2001
2002
2003
2004
2005
ASSET MANAGEMENT
(millions of yen)
Asset Management is engaged in the asset management and
defined contribution pension plan businesses. We distribute a
broad spectrum of investment trusts through many channels.
Backing up these trusts are fund management and product
development skills that tap an extensive global research net-
work and sophisticated financial technologies. The asset man-
agement business also includes an investment advisory business
for pension funds and other institutional investors. The defined
contribution pension plan business offers a comprehensive line
of services, from designing plans to providing products.
R
75,000
50,000
25,000
0
-25,000
2001
2002
2003
2004
2005
Note: In April 2005, Global Wholesale was reorganized into three divisions: Global Markets, Global Investment Banking and Global Merchant Banking. Operating results shown
above for these three divisions are for performance as business lines within Global Wholesale. Global Merchant Banking was established as a business line in the fiscal
year ended March 2002.
Annual Report 2005 R 11
KENICHI WATANABE
Senior Managing Director
Head of Domestic Retail
YASUO AGEMURA
Senior Managing Director
Head of Global Markets
TAKASHI YANAGIYA
Senior Managing Director
Head of Global
Investment Banking
AKIRA MARUYAMA
Senior Managing Director
Head of Global Merchant Banking
TAKUMI SHIBATA
Senior Managing Director
Head of Asset Management
❖ Business Lines
Nomura Group
Domestic Retail
Global Markets
Global
Investment
Banking
Global
Merchant
Banking
Asset
Management
Nomura Holdings, Inc. R 12
Business Outline
At the Heart of it all RRR
Annual Report 2005 R 13
Change
Domestic Retail R P14–19
Mission
Global Wholesale R P20–21
Global Markets R P22–25
Global Investment Banking R P26–29
Global Merchant Banking R P30–33
Asset Management R P34–39
Strategy
Nomura Holdings, Inc. R 14
Domestic Retail
Shift in Financial Assets of IndividualsRRRRRRR
Changes are taking place in how the Japanese public views financial matters.
Interest rates remain at an unprecedented low. The government has ended its
full guarantee on bank deposits. Doubts are growing about the pension system.
Tax reforms are making equity investments more attractive. Deregulation is
sparking other changes. As a result, people now realize they need to take the
initiative to protect their assets, and indeed make those assets grow. The concepts
of risk and return and portfolio management are becoming widely recognized,
resulting in steady growth in foreign currency financial assets held by individuals.
The upshot of these changes is a nascent shift in Japan’s estimated ¥1,400
trillion in individual financial assets away from bank deposits into investments.
❖ Retail Foreign Currency-denominated Financial Assets
（trillions of yen）
30
20
10
0
2000/12
2001/12
2002/12
2003/12
2004/12
Note: Total foreign currency deposits, foreign currency public investment trusts (including corporates)
and foreign securities investments abroad.
Source: Nomura Institute of Capital Markets Research, based on The Investment Trusts Association, Japan
Investment Trust data; Bank of Japan, Flow of Funds Accounts data.
Annual Report 2005 R 15
Domestic Retail’s primary goal is to interact closely with custom-
ers to gain an insight into their particular investment needs and
offer them distinctive solutions. Domestic Retail serves individual
investors, companies and regional financial institutions through a
network of 133 branch offices nationwide.
As customer needs diversify in step with today’s changing
environment, we are looking to increase our customer base
by supplying high-quality services. To do so, we are expanding
our service channels such as online services, call centers, branches
specializing in consultation services, and the securities intermediary
business. We are also responding to customer needs by adding services that go beyond
the traditional bounds of the securities business.
❖ Client Assets (Domestic Retail, including regional financial institutions)
(trillions of yen)
50
40
30
20
10
0
37.2 trillion yen
45.6 trillion yen
1985/3
1990/3
1995/3
2000/3
Client assets (lhs)
Nikkei Stock Average (rhs)
(yen)
40,000
32,000
24,000
16,000
8,000
0
2005/3
Nomura Holdings, Inc. R 16
OurBusinesses
D O M E
S
T
I
C
R
E
T A
I
L
Capitalizing on the largest customer base of any Japanese securities company, Domestic Retail is
constantly refining its unique “Core Value Formation” strategy. The aim here is to expand our
customer base even further and offer increasingly sophisticated financial products and services that
target the full spectrum of customer needs.
Business Results
Highlights of the Year
In the fiscal year ended March 2005, Domestic Retail earned
Client assets, including those of regional financial institutions,
net revenue of ¥304.4 billion, down 0.5% from ¥305.8 billion
increased by ¥4.8 trillion to a record ¥45.6 trillion due to a
the year before. Non-interest expenses decreased 1% to ¥223.2
rapid increase in the number of special accounts for stocks in
billion, down from ¥226.2 billion in the prior year. Income before
which customers place personally-held stock certificates.
income taxes increased 2% from ¥79.5 billion to ¥81.2 billion.
Anticipating growth in these accounts, we equipped branch
Equity-related revenue and investment trust-related rev-
offices to handle the increased customer traffic at the end of
enue increased on growth in the value of stock transactions
last year. In the third quarter alone, we posted a net increase
by individuals and strong sales of investment trusts, includ-
of ¥2.5 trillion in client assets.
ing the Global Attractive Dividend Stock Fund. However, rev-
Japanese government bonds (JGBs) for individuals also
enue associated with foreign currency bonds declined, mainly
saw strong sales. The outstanding safety and liquidity of JGBs
due to a decline in sales compared with the high level re-
make them a good entry product for individuals who are
corded in the prior year.
looking to shift from savings to securities investments. During
the past fiscal year, the Japanese government conducted its
seventh through tenth offerings of JGBs for individuals. Our
❖ Domestic Retail Business Results
(Millions of yen)
Years ended March 31
2001
2002
2003
2004
2005
Non-interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥260,193
¥226,156
¥246,938
¥304,035
¥301,464
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,236
2,949
2,313
1,722
2,903
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
266,429
229,105
249,251
305,757
304,367
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
215,638
208,621
213,562
226,213
223,200
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 50,791
¥ 20,484
¥ 35,689
¥ 79,544
¥ 81,167
Annual Report 2005 R 17
sales of these bonds were about ¥1.3 trillion. As in the prior
fiscal year, we ranked first among all Japanese financial insti-
tutions, including Japan Post, in sales of JGBs for individuals.
To increase customer access, we opened branch offices in
Hachinohe and Ota in October 2004 and in Sasebo and
Women’s Financial Planning Section
Many women want to learn how to manage their assets
and start investing. However, they are often reluctant to
go to conventional seminars or talk to experts in the
field. This prompted us to set up the Women’s Financial
Kumagaya the next month. Unlike conventional branches,
Planning Section.
these new locations specialize in consultation services. The
low cost of these branches gives us greater flexibility in ex-
This team of professionals is dedicated to making it
easier for women to learn about investing and gain
access to a wide variety of information. The section holds
panding our service network. We continue to use the securi-
women-only seminars that are led by female instruc-
ties intermediary business, which was opened up to
non-securities financial institutions in December 2004, to
tors and scheduled at convenient times. There are also
classes for women with busy work schedules who want
to learn how to manage their assets and for women
rapidly form partnerships with regional financial institutions.
who manage household budgets. Through these and
In November 2004, in another move to broaden our customer
base, we set up the Women’s Financial Planning Section to
many other initiatives, the section is catering to the grow-
ing needs of female investors.
As of the end of March 2005, the Women’s Financial
provide information and hold seminars from the standpoint
Planning Section had held 80 seminars for women,
of women.
mainly at Nomura Securities branch offices.
❖ Customer Segment Matrix
Financial
assets
Wealthy
investors
Affluent
investors
Asset
builders
Issues and Strategies
Domestic Retail has the largest customer base in Japan’s
securities industry for two key reasons: high-quality consul-
tation services and a wide offering of products. As the shift in
individual financial assets gathers pace, Domestic Retail must
work to continue increasing its customer base by opening up
Entrepreneurs
more avenues of contact and adding breadth and depth to
our product lineup and service model.
SME owners
With this in mind, Domestic Retail is focusing on three
Corporate executives
Salary earners
strategic moves: ongoing evolution of Core Value Formation;
establishment of an extensive service infrastructure; and pro-
vision of a larger selection of products and services.
Core Value Formation: Continually evolving
In Core Value Formation, we divide the retail market into
three customer segments: wealthy investors, affluent inves-
tors and asset builders. Our strategy is to supply the high-
Life stage
quality products and services that match the core values of
Nomura Holdings, Inc. R 18
each segment. In the current fiscal year, we are adding a life
✤Retirees✤
stage segmentation to define customer segments more
Japan’s baby boomers will begin reaching retirement age in
sharply, thereby allowing us to identify customer needs
2007 and are expected to receive retirement benefits to the
sooner. This will allow us to offer products and services that
tune of ¥80 trillion. To serve the asset management needs of
mirror customer needs even more closely.
this new customer segment, we have prepared an extensive
✤High-net-worth Individuals✤
lineup of packaged products and services. All are straight-
forward, easy to use and senior-friendly. We aim to make the
Customers in this segment have considerable assets. Respond-
name Nomura Securities synonymous with quality services
ing to their increasingly sophisticated needs and assisting them
for retirees.
to customize their portfolios are important functions. In 2004,
we established the Financial Management Division to serve cus-
✤Salary Earners✤
tomers in a style that bridges wholesale and retail operations.
Through employee stock ownership plans, we have a sound
The Division is developing high-grade services, such as by
customer base for serving salary earners. We are entrusted
strengthening its asset management advisory services and
with administrative services for the employee stock owner-
providing information concerning taxes. In July 2005, we es-
ship plans of approximately 1,400 publicly owned Japanese
tablished the Investment Consultancy Department to prepare
companies. The plans we serve had about 1.12 million mem-
for the provision of separately managed accounts.
bers as of March 2005, accounting for more than half of all
individuals in employee stock ownership plans of publicly
❖ Targeting New Customer Segments
Financial
assets
Small
Large
Savings and deposit market
Current
customer base
Salary
earners
Retirees
High-net-worth individuals
Active
Conservative
Investment stance
Annual Report 2005 R 19
owned companies. Our strategy for this massive market is to
✤Branch Strategy, Securities Intermediary Business✤
build long-term relationships. In order to achieve this, we offer
We believe that our network of branch offices needs the flex-
consulting services, including post-retirement asset manage-
ibility to match the characteristics of specific regions and
ment, through our Hotto Direct Service Department and
their customers. In March 2004, we began opening branches
Nomura Securities branch offices. Overall, we have services
that do not handle cash settlements. We also increased the
that match each stage in the lives of salaried employees.
number of offices devoted exclusively to consultations.
In another move to operate an efficient network, we
Establishing a Service Infrastructure
opened branch offices using a “partnering format” in which
We are increasing customer access with the aim of supply-
the administrative operations for several locations are
ing the high-quality services that customers are demanding.
centralized at a nearby branch.
In addition to face-to-face services at branch offices, we are
In the securities intermediary business, we are increasing
building an integrated base of contact points that include
points of customer contact by forming partnerships with re-
call center services and online access. We are working to
gional financial institutions that have large branch networks
build an infrastructure that gives customers the freedom to
and sound customer bases. This collaboration is producing
choose how they access our services at a time that suits them.
synergies by combining our expertise and wide product lineup
This will give us a powerful platform to serve our growing
with the strong brands of our partners.
customer base.
More Products and Services
✤Upgraded Call Centers✤
Enhancing our selection of products and services is essential
To further enhance our ability to serve customers, we are
if we are to continue providing financial services that meet
increasing the functions of our call centers. Our call centers can
the diversifying needs of our customers. We approach this
already perform administrative procedures for customer accounts
task from the most basic principle: putting the customer first.
at branch offices. Now, we are setting up a call center that will
Taking advantage of falling barriers dividing banking, securi-
execute customer orders from such branch customers.
ties, insurance and other financial service categories, we are
✤Enhancing Nomura Home Trade✤
working on offering the diverse line of products and services
that customers want. One illustration of this is growth in our
At the end of March 2005, there were more than 1.7 million
offering of products that promote the shift of funds from
Nomura Home Trade accounts, making this a key part of our
deposits to securities investments, such as funds that pay
customer service infrastructure. We are revamping the Nomura
frequent distributions, JGBs for individuals, variable annuity
Home Trade website and adding new functions to handle the
insurance policies and foreign currency bonds. We are also
placement and execution of trading orders and provide quality
adding new services, such as an intermediary service for real-
investment information. This will give our customers a better
estate transactions and inheritance-related trust services.
online experience.
Nomura Holdings, Inc. R 20
Global Wholesale
Japan’s Evolving Capital MarketsRRRRRRR
Japan is moving away from a financial model centered on indirect and indus-
trial financing, to a market-centric financial model. And now that Japanese
companies have excess cash from profit structure and balance sheet reforms,
they are expected to actively pursue mergers and acquisitions. Reflecting these
trends, the needs of market participants are becoming more intricate. Japan’s
capital markets are poised to expand by providing the solutions to meet these
needs. In this environment, success in meeting the growing range of client needs
requires financial services backed by highly sophisticated financial skills and a
more global infrastructure.
❖ Mergers & Acquisitions (any Japanese involvement announced)
（millions of U.S. dollars）
150,000
100,000
50,000
0
2000
2001
2002
2003
2004
Proceeds (lhs)
Number of deals (rhs)
Source: Thomson Financial
（deals）
3,000
2,000
1,000
0
(FY)
Annual Report 2005 R 21
On April 1, 2005, Global Wholesale was divided into three business
lines: Global Markets, Global Investment Banking and Global
Merchant Banking. This gives us a better base for supporting
growth and quickly launching new businesses.
In Global Markets, we plan to expand our business portfolio
through the use of our derivatives and securitization tech-
nologies on a global scale. In Global Investment Banking and
Global Merchant Banking, our priority is to strengthen the
value-added solutions business. Global Investment Banking focuses
chiefly on financial solutions involving financing and M&A advisory
services. Global Merchant Banking offers solutions using Nomura Group’s own funds.
All of these business lines are making full use of Nomura Group’s global customer
base and network.
❖ Global Wholesale Business Results
(Millions of yen)
Years ended March 31
2001
2002
2003
2004
2005
Non-interest revenue . . . . . . . . . . .
¥487,644
¥385,430
¥196,675
¥290,845
¥264,848
Net interest revenue . . . . . . . . . . . . .
(24,839)
54,505
101,794
74,891
61,022
Net revenue . . . . . . . . . . . . . . . . . . . .
462,805
439,935
298,469
365,736
325,870
Non-interest expenses . . . . . . . . . .
210,062
248,657
207,436
227,227
239,502
Income before income taxes . . . . .
¥252,743
¥191,278
¥ 91,033
¥138,509
¥ 86,368
Nomura Holdings, Inc. R 22
OurBusinesses
G
L O
B
A
L
M A
R
K
E
T
S
The increasing diversity and complexity of client needs along with financial technology progress
and convergence are giving rise to a growing selection of products and services. Global Markets is
expanding into new areas by removing the boundaries between traditional product sectors and
between domestic and overseas operations, while building an infrastructure to use sophisticated
securitization, derivative and other techniques. Global Markets also provides innovative products to
Domestic Retail and Asset Management.
Business Results
Income, which focuses on bonds, foreign exchange and their
Net revenue decreased 14% to ¥243.1 billion, down from
derivatives. Convergence of real estate and finance is a key
¥284.1 billion in the previous fiscal year. Non-interest expenses
ongoing trend. We are building a new business portfolio by
increased 12% to ¥182.9 billion, up from ¥163.3 billion. Income
focusing on securitization, loan-related businesses and other
before income taxes was ¥60.2 billion, 50% less than the
areas that add liquidity to illiquid assets. In April 2005 we
¥120.8 billion a year earlier.
appointed an executive officer to oversee the strengthening
Lower market volatility and other items caused a decline
of our asset finance business, which covers real estate, finan-
in client order flows. This resulted in year-on-year declines in
cial assets and securities backed by these assets.
net revenue related to fixed income and equity.
Highlights of the Year
Global Markets Operating Structure
We continued to underwrite to a large volume of foreign bonds
Global Markets serves clients with highly sophisticated finan-
targeting individuals in order to meet demand from Japanese
cial services through the integrated operation of two busi-
retail investors. We were lead underwriter for a number of
ness units: Global Equity, which mainly handles equities and
foreign bond issues in Japan, including Dexia Credit Local
their derivatives in Japan and overseas; and Global Fixed
(Australian dollar); Rentenbank (Australian dollar); Toyota Motor
❖ Global Markets Business Results
Years ended March 31
2001
2002
2003
2004
2005
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥319,681
¥215,829
¥235,991
¥284,147
¥243,087
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129,788
133,214
142,434
163,304
182,901
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥189,893
¥ 82,615
¥ 93,557
¥120,843
¥ 60,186
Notes: 1. In April 2004, Fixed Income, Equity and certain functions in Investment Banking were consolidated to create Global Markets.
2. Figures for prior fiscal years are totals of the previous Fixed Income and Equity and thus differ in composition from figures shown for the year ended March 2005.
(Millions of yen)
Annual Report 2005 R 23
Credit (U.S. dollar); European Investment Bank (Australian
financial adviser to the Urawa Station East Exit Area Redevel-
dollar); and the International Bank for Reconstruction and
opment Project, where we arranged Japan’s first development-
Development (Australian dollar). For KfW Bankengruppe (KfW),
type securitization scheme that uses a floating price system for
we underwrote a 1.1 billion euro issue of exchangeable bonds.
determining the transfer price.
Not only was this Japan’s first exchangeable bond issued by a
foreign company, but also the largest-ever equity-related
Issues and Strategies
offering in Japan by a foreign company.
Global Markets has a long history of trading, structuring
We had prominent underwriting roles in many large inter-
and other global businesses, mostly associated with stocks
national bond offerings. We served as joint lead underwriter
and bonds. Through Nomura Group’s global network, we
for several sovereign issues with high credit ratings, including
have established deep-seated relationships with many in-
those of Italy, the European Investment Bank, KfW, the U.S.
stitutional investors.
Federal Farm Credit Bank, Belgium and Greece. The sale of these
We also serve many wealthy individuals, companies,
bonds to Japanese and foreign institutions reinforced our status
regional financial institutions and other investors through
as a bond underwriter.
our domestic branch offices. In addition, we have extensive
In asset finance, we established the Urban Renaissance
ties with public-sector agencies, financial institutions, non-
Private Mezzanine Fund in May 2004 jointly with the Develop-
financial corporations and other issuers of securities in Japan
ment Bank of Japan. This marked the full-scale launch of a
and overseas.
mezzanine finance business for real estate projects. In July 2004,
Combining these relationships with cutting-edge finan-
we started Japan’s first securitization advisory service for wed-
cial technologies allows us to supply financing products and
ding halls and funeral parlors. In December, we were named
services that are ideal for a broad range of client needs.
❖ Global Markets Operating Structure
❖ Global and Cross-border Deals
Global Fixed Income
Domestic Retail
Global
Markets
Global Equity
Global Markets
(KfW)
Asset Finance
1.1 billion euros
Global
Investment
Banking
Largest Ever
Equity-related offering in
Japan by a foreign company
Japan-first
Exchangeable bond issued
by a foreign company
Japanese Individual Investors
Exchangeable bonds
catering to Japanese
individual investors
Nomura Holdings, Inc. R 24
Japan’s financial markets are undergoing a transforma-
✤Loan-related Business✤
tion due to progress in corporate restructuring and the shift
While continuing to sell bonds to Japanese regional financial
of individual financial assets to risk assets. The convergence
institutions, our strategy is to develop new business domains
of real estate and finance, which is driven by the fast grow-
by originating and distributing to these institutions attractive
ing J-REIT market and advances in securitization techniques,
loan products. Loans at these institutions are estimated to be
is also responsible for this transformation. We are further
about ¥115 trillion less than their deposits. We provide a means
refining financial engineering, our core strength, to develop
for these clients to invest excess funds by originating and selling
products and services that go beyond the traditional bounds
a variety of loan products that generate cash flows.
of the securities field.
There are already 58 Nomura Securities branches in Japan
Our strategy is to become more global and seamless,
that are registered as non-banking moneylenders, creating a
building a framework for meeting clients’ increasingly
solid framework for conducting this business. By leveraging our
sophisticated and diverse needs. We are also looking to enter
independent position, we are now laying the groundwork to
new business domains by leveraging our expertise in secu-
enter the secondary loan trading business as an independent
ritization, derivatives and other fields. At the core of this strat-
financial institution in order to increase trading flow targeting
egy are three areas: loans, asset finance and equity derivatives.
mainly regional financial institutions.
❖ Global Markets: Business Scope
Traditional securities
Illiquid assets
Equities
Bonds
Investment
trusts
Loans
Real estate
Integrate diverse products
Combine securitization and
derivative technologies
Global Markets
Deliver solutions
Provide liquidity
New Businesses
Loan-related business
Asset finance business
Annual Report 2005 R 25
✤Asset Finance Business✤
✤Equity Derivatives Business✤
Japan’s asset finance market is expanding as the rapidly grow-
We have been stepping up our equity derivative operations in
ing J-REIT market and advances in securitization techniques
Europe since 2004. Further collaboration between Japan and
dramatically alter how real estate is owned.
Europe is another priority to allow us to bring sophisticated
Distinguishing Global Markets is the ability to handle every
derivative technologies from Europe back to Japan, where this
product class, including equity, mezzanine loans and senior
knowledge can be used to accurately target investor needs
loans along with ties to a diverse range of investors who can
with new products and through other means.
provide funds for each class.
In the equity class, we underwrite and sell J-REITs and
structure and sell privately placed real estate funds. In the
mezzanine class, we established the Urban Renaissance
Private Mezzanine Fund, Japan’s first fund of this type. In the
senior loan class, we have established a base for the full-
scale commencement of a commercial mortgage backed
securities (CMBS) origination business by using our own funds
to extend non-recourse loans.
Our growth plans are not limited to securitization. We
are actively seeking to win contracts to provide financial
advisory services for private finance initiatives (PFI), real estate
development projects and other activities.
The asset finance business outside Japan is another field
where we are active. In the U.S., we handled mortgage-backed
securities totaling US$13.1 billion during the year ended March
2005. In Europe, where we formed an Asset Finance Group in
London in 2002, we have arranged and sold a variety of classes
of loans, most of which meet financing needs associated with
acquisitions or delistings of European companies.
Nomura Holdings, Inc. R 26
OurBusinesses
G L O B A L
I N V E S T M E N T
B A N K I N G
Global Investment Banking supplies a broad array of highly specialized investment banking
services to a diverse global client base that includes corporates, financial institutions, governments
and agencies, and other organizations. By accurately identifying the increasingly diverse needs of
our clients and effectively using Nomura Group resources, we aim to be a globally competitive
investment bank backed by the development and provision of value-added solutions.
Business Results
Highlights of the Year
Due mainly to growth in equity financing activity by Japanese
Nomura Securities was named lead manager for many large
companies, net revenue increased 6% to ¥75.4 billion,
equity-related global issues. Among them were the IPOs of
compared with ¥70.9 billion in the previous fiscal year. Non-
J-Power, INPEX, and NTT Urban Development as well as a
interest expenses decreased 14% to ¥46.2 billion from ¥53.7
public offering of stock by AEON and a secondary offering
billion. Income before income taxes increased 70% to ¥29.2
by Shinsei Bank. We were ranked first in the fiscal 2004
billion, compared with ¥17.2 billion in the prior year.
Japanese equity and equity-related bookrunner league table,
There was a high volume of equity-related underwriting,
just as in fiscal 2003.
including IPOs, public offerings and other issues, along with
Tailor-made equity financing continued to grow as we
a large increase in the volume of financing using tailor-made
participated in large transactions like the ¥100.0 billion MPO
schemes such as multiple private offerings (MPOs) and hybrid
by Isuzu Motors and the ¥100.0 billion HPO by Hitachi.
private offerings (HPOs). M&A advisory services performed
well as we participated in a number of large deals now that
full-scale industry reorganization is taking place in Japan.
❖ Global Investment Banking Business Results
Years ended March 31
2001
2002
2003
2004
2005
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥143,124
¥88,349
¥69,125
¥70,869
¥75,445
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80,274
57,406
56,374
53,703
46,231
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 62,850
¥30,943
¥12,751
¥17,166
¥29,214
Notes: 1. In April 2004, Fixed Income, Equity and certain functions in Investment Banking were consolidated to create Global Markets.
2. Figures for prior fiscal years are for the previous Investment Banking and thus differ in composition from figures shown for the year ended March 2005.
(Millions of yen)
Annual Report 2005 R 27
In the area of M&A advisory, we served as financial adviser
Issues and Strategies
for several large deals. Two notable transactions are the mergers
As clients’ corporate financing needs grow more diverse and
of Mitsubishi Tokyo Financial Group and UFJ Holdings and of
their businesses become increasingly global, we are working
Sankyo and Daiichi Pharmaceutical. In cross-border M&A,
to link the Nomura brand even more closely with services for
accomplishments included assisting Nisshin Food and Kirin
complex, large and cross-border deals. To achieve this, we
Brewery to make investments in Chinese companies, and Kyorin
are strengthening client company relationship management.
Pharmaceuticals to acquire a U.S. bio-tech venture. Overall,
We are also shifting resources to respond flexibly to the
our achievements ranked us first in Japanese-involvement M&A
diversifying needs of individual companies, and smoothly
advisory on the fiscal 2004 league table.
assembling the functions required to meet these needs.
Through these actions, we are determined to quickly supply
customers with the best solutions.
❖ League Tables & Thomson DealWatch Awards 2004
Equity Financing
M&A
Global Equity & Equity-related (Japan)
Any Japanese Involvement Financial Advisers
(April 1, 2004–March 31, 2005)
(April 1, 2004–March 31, 2005)
Bookrunner
Nomura
Proceeds
(US$ mn.)
13,570.8
Mkt.
No. of
Share
Issues
24.9% 135
Daiwa Securities SMBC
10,445.5
19.2% 122
Nikko Citigroup
9,291.3
17.1%
Mizuho Financial Group
4,290.8
Morgan Stanley
2,660.9
7.9%
4.9%
70
50
5
Rank
1
2
3
4
5
Source: Thomson Financial
Rank
Adviser
Rank Value
(US$ mn.)
Mkt.
Share
No. of
deals
1
2
3
4
5
Nomura
65,347.3
45.3% 132
Mitsubishi Tokyo
Financial Group
Merrill Lynch
JP Morgan
Morgan Stanley
54,574.2
52,947.2
47,402.3
46,315.8
37.8%
36.7%
32.9%
32.1%
80
41
15
17
Note:
Based on the monetary value of publicly announced deals involving a
company based in Japan as either the target or acquirer.
Source: Thomson Financial
Thomson DealWatch Awards 2004
House of the Year
Straight Bond House of the Year
Equity-linked Bond House of the Year
J-REIT House of the Year
Nomura Holdings, Inc. R 28
✤Underwriting Business✤
purchase the convertible bonds or other securities issued by
Nomura Securities has acted as a manager for more than 60%
the company, then convert these securities into stock for sale
of all listed companies in Japan, excluding banks and securi-
to investors. In the past fiscal year, we developed a new HPO
ties companies, and as lead manager for about 40%. This gives
scheme that incorporates MPO elements to enable Hitachi to
our underwriting business an extensive client base. Substantial
procure ¥100 billion. In this innovative scheme, the equity
demand for corporate financing is expected as companies
option portion of the convertible bond we underwrote was
become more active in mergers and acquisitions and capital
used by Equity and the remaining bond portion was sold to
expenditure to increase their global competitiveness.
investors by Fixed Income as a repackaged bond.
In the financial services sector, banks face the need to
In December 2004, we established a Capital Solution De-
comply with Basel II, which imposes stricter rules for the
partment to achieve further growth in the solution-providing
risk-weighting of assets and repayment of public funds. This
business through collaboration between Global Investment
is expected to lead to more equity financing by banks as
Banking and Global Markets.
they rebuild their balance sheets.
In the public corporation sector, we expect to see a fur-
✤Mergers and Acquisitions✤
ther increase in capital market financing needs in Japan as
Japan’s M&A market appears to be poised for further growth.
governments conduct fiscal reform. We believe that growth
Among the reasons are strategic initiatives to become more
in this demand will be strong for the securitization of real
globally competitive and the fear of hostile takeovers.
estate and loans. We are adopting a flexible approach to
We are targeting advisory services for cross-border deals,
these trends to create more business opportunities.
deals involving industry restructuring and other types of busi-
✤Capital Solutions✤
ness. We are also using our extensive experience and knowl-
edge to assist companies in defending themselves against
The capital solutions business model involves the use of our
hostile takeovers. Through these activities, we intend to fur-
own balance sheet and the capital markets to develop tailor-
ther enhance our profile in the M&A market.
made methods for procuring equity capital in line with client
Another ongoing theme is bolstering our ability to offer
needs. The MPO is the most frequently used scheme. To
composite services such as acquisition financing that draw
quickly meet the financing needs of a client company, we first
on the extensive resources of Nomura Group.
Annual Report 2005 R 29
❖ Growing Outside Japan
Rothschild
TWP
China Business
China Busine
Planning &
Promotion Dept.
Global
Merchant
Banking
Domestic
Retail
Global
Markets
Global
Investment
Banking
Asset
Management
✤Overseas Activities✤
For Chinese companies, we have an extensive track record
Outside Japan, we are increasing coverage of key overseas
in global public and secondary offerings targeting individual
clients to expand cross-border business involving Japan, such
investors in Japan. Adding to this list of accomplishments, we
as fund-raising activities in Japan and cross-border M&A deals
were lead manager for the IPO of Xinhua Finance, the first
involving Japan.
foreign company to become listed solely on the Tokyo Stock
To gain greater access to European companies, we formed
Exchange. To expand business in the rapidly growing Chinese
an alliance with Rothschild in February 2005 in the field of
market, we established the China Business Planning &
cross-border M&A between Japan and Europe. A prominent
Promotion Department in April 2005. This department is over-
investment bank in Europe, Rothschild ranked first in European
seeing the creation of an infrastructure, including the estab-
M&A in 2004. We also have a capital alliance with Thomas
lishment of a holding company, to serve this strategically
Weisel Partners (TWP) LLC in the U.S. for U.S.-Japan cross-
important market.
border M&A. These alliances give Global Investment Banking
a highly competitive operating framework in the two key
markets of the U.S. and Europe.
Nomura Holdings, Inc. R 30
OurBusinesses
G L O B A L M E R C H A N T
B A N K I N G
Global Merchant Banking invests Nomura Group’s own capital in companies with prospects for
growth and improvements in earnings. The aim is to raise the value of investee companies from a
medium- to long-term perspective by supplying the means to solve any issues they may be facing.
We then aim to exit investments through IPOs and other methods.
Business Results
Global Merchant Banking Operating Structure
In the fiscal year ended March 2005, net revenue was ¥7.3
Global Merchant Banking is engaged in private equity invest-
billion, 32% less than the net revenue of ¥10.7 billion in the
ments, mainly in Japan and Europe.
previous fiscal year. Results benefited from gains on exit trans-
In Japan, NPF targets business opportunities involving
actions and unrealized gains resulting from a rise in the fair
buyouts and corporate rehabilitations. Since its establishment
value of the Terra Firma investment in Europe. However, net
in 2000, NPF has invested in 16 companies and subsequently
revenue was weighed down by funding costs for assets in
exited four of those companies. In addition, Nomura Research
Europe and by other items. Non-interest expenses increased
& Advisory Co., Ltd. (NR&A) makes venture capital investments
1% to ¥10.4 billion from ¥10.2 billion in the previous fiscal
through funds.
year. Loss before income taxes was ¥3.0 billion compared with
In Europe, Global Merchant Banking invests in funds
income of ¥0.5 billion one year earlier. Exposure as of March
operated and managed by Terra Firma, an independent pri-
31, 2005, was ¥325.5 billion at Terra Firma and ¥104.0 billion
vate equity firm. Two other units also make venture capital
at Nomura Principal Finance Co., Ltd. (NPF).
investments: Nomura Phase4 Ventures (NPV) in the biopharma
sector and Private Equity Group (PEG) in the technology and
healthcare sectors.
❖ Global Merchant Banking Business Results
Years ended March 31
2001
2002
2003
2004
2005
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (Loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . .
–
–
–
¥135,757
¥ (6,647)
¥10,720
¥ 7,338
58,037
8,628
10,220
10,370
¥ 77,720
¥(15,275)
¥ 500
¥ (3,032)
Note: Global Merchant Banking was established as a business line in the fiscal year ended March 2002.
(Millions of yen)
Annual Report 2005 R 31
❖ Global Merchant Banking Operating Structure
Nomura Principal Finance Co., Ltd. (NPF)
Global Merchant
Banking
Nomura Research & Advisory Co., Ltd.
(NR&A)
London
Nomura Phase4 Ventures (NPV)
Private Equity Group (PEG)
Highlights of the Year
During the fiscal year, Global Merchant
Banking substantially increased out-
standing investments, primarily at NPF.
In April 2004, NPF signed a letter of
intent to make a total equity investment
of ¥50 billion in Millennium Retailing,
Inc., a holding company that owns the
Sogo and Seibu department store chains.
Based on this agreement, we purchased
¥20 billion of newly issued Millennium
Retailing stock in July 2004 and ¥30
billion in January 2005.
In June 2004, the reorganization plan of Huis Ten Bosch,
The biggest issue for this business is contributing to the
for which we are official sponsor, was approved. The next
diversification of Nomura Group’s revenue sources. This entails
month, we purchased ¥8 billion worth of new shares issued
generating consistent earnings over the medium and long
by the company, followed by another ¥1.5 billion in March
terms by increasing portfolio investments, mainly by using
2005. One more highlight of the year was the March 2005
our own capital to provide customers with solutions. For this
signing of a capital alliance agreement with Misawa Home
purpose, we have established the goal of raising our invest-
Holdings, Inc., a company undergoing a reorganization backed
ment portfolio to between ¥250 billion and ¥300 billion, ex-
by Toyota Motor Corporation.
cluding Terra Firma, over the next three to four years.
NPF is the primary means of enlarging our investment
Issues and Strategies
portfolio. NPF’s goal is to achieve an internal rate of return
Our Global Merchant Banking operations draw on the ad-
of at least 20% from investments having a time frame of
vanced expertise we have gained through our experience in
three to five years. Japan is to account for most of the growth
London and other parts of Europe. The immense customer
in investments. Business opportunities linked with corpo-
base of Nomura Group in Japan represents the greatest
rate strategic requirements are emerging, including oppor-
strength of Global Merchant Banking. With this base, all busi-
tunities associated with client needs for capital increases,
ness lines of the Group can collaborate at each stage, from
delistings and corporate rehabilitations. Global Merchant
the development of new investment opportunities through
Banking is dedicated to responding to these needs while taking
raising the value of portfolio companies and securing returns
the necessary steps to raise the value of investee companies.
on these investments. The breadth of these strengths sets
Global Merchant Banking apart from the competition.
Nomura Holdings, Inc. R 32
✤Capital Increases✤
from external sources. This capability reduces the
As Japan’s economy regains its strength, there is a growing
disadvantages of delisting. Global Merchant Banking makes
need among Japanese companies to increase equity to fund
investments in companies that want to go private. We offer
aggressive business expansion. Illustrating this is Millennium
such solutions as finding a suitable partner to help raise cor-
Retailing. Due to progress in its revitalization, this company
porate value before exiting from investments.
had to find a way to increase equity to raise funds for invest-
ments required for growth. NPF responded by purchasing ¥50
✤Management Buyouts✤
billion of newly issued stock. Millennium Retailing plans to
Many Japanese companies are selling non-core businesses
conduct an IPO soon after completing its structural reforms.
as they focus resources on strategic markets. However, care
✤Strategic Delistings✤
must be exercised to avoid selling a business to a competitor.
In some cases, such sales may create the need to become
Some companies are making the strategic decision to become
independent of a parent company or other major share-
privately held to prevent a hostile takeover. In the past, Japa-
holder. We are well positioned to meet clients’ management
nese companies have relied mainly on the capital markets to
buyout and buy-in needs by making large investments in
raise funds from external sources. The growth of private eq-
these subsidiaries. As a shareholder, we also offer solutions
uity businesses has changed that. Now even privately owned
for raising a company’s value, such as by locating more
companies have a means of raising large amounts of equity
suitable business partners.
❖ Solution-oriented Business Model
❖ Business Exposure
Strategic
delistings
Management
buyouts
Capital
increases
Nomura
Group
NPF
Business
succession
Turnaround
sponsorship
Joint
investments
(billions of yen)
500
400
300
200
100
0
2003/3
2004/3
2005/3
NPF
Terra Firma
Annual Report 2005 R 33
✤Business Succession✤
The business succession process creates the need to sell shares
held by the previous owners or reduce the number of small
stockholders to concentrate ownership on the new manag-
ers. By investing in the company or by buying up outstanding
shares, we are able to solve these issues and pave the way for
a smooth transition of ownership.
✤Joint Investments✤
Mergers and acquisitions requiring large amounts of funds can
result in a significant investment risk for purchasing compa-
nies. We solve this problem by sharing the required investment
with a company considering a large merger or acquisition.
Reducing business risk is just one benefit for client companies.
This joint approach also enables Global Merchant Banking and
the client company to use their respective strengths, yielding
an even greater gain in value for investee companies.
✤Turnaround Sponsorship✤
The most important point regarding a corporate turnaround
is the capability of the sponsoring company. In our case, we
offer much more than skill in increasing the value of an investee
company. We also have the expertise to supply non-financial
support—such as for management strategies, financial man-
agement, personnel system reforms, sales and the recruitment
of senior managers—to revitalize businesses.
Nomura Holdings, Inc. R 34
Asset Management
A New Era for Japan’s Investment Trust Market RRRRRRR
Net assets in the domestic publicly offered investment trust market increased
in 2004, once again surpassing the ¥40-trillion level. This was the first net
inflow, which totaled ¥2.4 trillion, in four years. Investment trusts are
becoming more familiar and are increasingly seen as an important way for
baby boomers to manage their assets. We also foresee rising interest on the
part of asset builders, such as through investments in defined contribution
pension plans. All these trends make it clear that investment trusts are
entering a new era.
❖ Publicly Offered Investment Trust Market
（trillions of yen）
60
45
30
15
0
2000
2001
2002
2003
2004
Net asset value (lhs)
Net flow of funds (rhs)
Source: The Investment Trusts Association, Japan.
（trillions of yen）
6.0
4.5
3.0
1.5
0
-10
(CY)
Annual Report 2005 R 35
Asset Management aims to build a base for stable and
consistent earnings. In the asset management business,
that means increasing the volume of assets under man-
agement. In the defined contribution pension plan busi-
ness, building this base entails becoming administrator for
more plans and offering more products.
In the area of asset management, we are raising
assets under management by offering a broad range
of products through various sales channels. For individual
investors, we are expanding our product lineup with new funds
that offer frequent distributions. For pension funds and other institutional investors, we offer privately placed investment trusts
for alternative assets and deliver asset management services that match the particular requirements of each institution.
In the defined contribution pension
plan business, we are increasing the
number of plans where we act as admin-
istrator and increasing the number of
products on offer. Our services extend
from assistance in adopting these plans
and consulting for their design, to sup-
plying investment trusts and offering ser-
vices that teach people about investing.
❖ Assets Under Management
(trillions of yen)
25
20
15
10
5
0
2003/3
2004/3
2005/3
Nomura Asset Management
MAINTRUST (Germany)
NBAM
NCRAM
Nomura Funds Research and Technologies
Nomura Funds Research and Technologies America
Nomura Holdings, Inc. R 36
OurBusinesses
A S
S
E
T
M A N A G E M E N T
In our asset management business, Nomura Asset Management, Japan’s largest company in this
field, and a number of other asset management companies are increasing assets by targeting the
diverse asset management needs of our customers. In the defined contribution pension plan
business, we are serving as administrator for more plans and offering more products. The aim is
to assemble an earnings base that is stable and sustainable.
Business Results
Research and Asset Management (NCRAM), assets under man-
Net revenue was ¥43.5 billion, 21% higher than the prior fiscal
agement increased to ¥1.2 trillion. Total assets under man-
year’s net revenue of ¥36.0 billion. Non-interest expenses
agement in the Asset Management business line rose by ¥800
decreased 2% to ¥36.1 billion from ¥37.0 billion a year earlier.
billion to ¥19.1 trillion.
Income before income taxes was ¥7.4 billion compared with
a loss of ¥1.0 billion for the previous year.
Highlights of the Year
Asset management and portfolio service fees and earn-
We launched a number of new investment trusts during the
ings increased during the year. This was mainly attributable
past fiscal year to cater to an increasingly broad range of in-
to growth in the balance of funds offering frequent distribu-
dividual investor needs and increase assets under management.
tions and other stock investment trusts, and to growth in in-
In Japan, the low-interest-rate investment environment is
vestment advisory assets of overseas investors. Assets under
fueling demand for investment trusts with frequent distribu-
management at Nomura Asset Management increased to
tions. We responded with the addition of the Nomura Fund
¥16.2 trillion as of March 31, 2005. At Nomura Corporate
Masters Global Bond Fund and Global Attractive Dividend
❖ Asset Management Business Results
(Millions of yen)
Years ended March 31
2001
2002
2003
2004
2005
Non-interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥58,237
¥46,840
¥34,828
¥34,300
¥42,239
Net interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,810
367
2,232
1,657
1,283
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60,047
47,207
37,060
35,957
43,522
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39,537
37,031
33,866
37,004
36,086
Income (Loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . .
¥20,510
¥10,176
¥ 3,194
¥ (1,047)
¥ 7,436
Annual Report 2005 R 37
Stock Fund. We offer funds investing in a broad array of as-
defined contribution pension plan business, building this base
sets. With this diversity, we are increasing assets under man-
entails becoming administrator for more plans and offering
agement by providing a lineup of funds that can be used in
more products.
accordance with the status of each customer’s portfolio.
Our asset management business, backed by a diverse lineup
We established five funds exclusively for distribution
of products that are managed by Nomura Asset Management
through the bank channel and strengthened our marketing
and other companies and sold through many channels, ranks
and sales support activities. Assets under management in funds
first in Japan with assets under management of ¥19.1 trillion
sold exclusively through banks increased from about ¥13.0
as of March 31, 2005. To increase this figure even more we are
billion at the end of the prior fiscal year to approximately ¥90
reinforcing asset management capabilities, enhancing our prod-
billion as of March 31, 2005.
uct lineup and bolstering marketing activities.
Issues and Strategies
ing steadily. As of March 31, 2005, we were entrusted with
Asset Management aims to build a base for stable and con-
the administration of 112 plans that have about 240,000
sistent earnings. In the asset management business, that means
participants. We are stepping up our efforts in this area in a
increasing the volume of assets under management. In the
drive to administer more plans and supply more products.
Our defined contribution pension plan business is grow-
Nomura Asset Management
Japan’s largest asset management company, Nomura Asset Management serves a customer base of individual
and institutional investors in Japan and abroad. This company sells investment trusts through sales channels
that include Nomura Securities, other securities companies, banks and other financial institutions. Nomura
Asset Management also provides investment advisory services to institutional investors. As of March 31, 2005,
assets under management totaled about ¥16.2 trillion. In Japan’s publicly offered investment trust market,
Nomura Asset Management ranks first with a 24% share.
Nomura Corporate Research and Asset Management (NCRAM)
An investment management company established in the U.S. in 1991, NCRAM manages assets mainly by using
its expertise in high-yield bonds and high-income loans. The company manages investment trusts sold in
Japan, including the Nomura Bond & Loan Fund and Nomura U.S. High Yield Bond Income. NCRAM also
offers investment advisory services to domestic and foreign institutional investors. As of March 31, 2005,
assets under management totaled about ¥1.2 trillion.
Nomura BlackRock Asset Management (NBAM)
This investment advisory firm was formed in 1999 as a joint venture between Nomura Asset Management and
BlackRock, Inc. of the U.S. BlackRock is recognized as a leading player in the U.S. in the management of bond
investments and in sophisticated risk management technologies. NBAM manages investment trusts sold in Japan,
including the Nomura Short-Term Interest Fund, and provides investment advisory services to domestic and
foreign institutional investors. NBAM had about ¥980 billion in assets under management as of March 31, 2005.
Nomura Holdings, Inc. R 38
✤Higher Asset Management Capabilities✤
upgrading asset management skills and adding more value
In the asset management business, raising asset management
to our asset management operations.
skills and adding more value remain the most important goals.
To reinforce its asset management skills, Nomura Asset
✤Wider Product Lineup✤
Management started the Asset Management Capability
Nomura Asset Management and our other asset management
Enhancement Project in October 2002. Investment decision-
companies already offer a diverse selection of products that cover
making lines were integrated to unify investment philosophies.
many asset classes and investment styles. One example is funds
All processes were reviewed and improved, resulting in actions
that target investors looking for products that offer frequent
ranging from the establishment of an investment team frame-
distributions. We have a large lineup of products targeting these
work to changes in the order placement method and infor-
needs. We offer Nomura U.S. High Yield Bond Income, Nomura
mation systems. Through these and other initiatives, we have
Fund Masters Global Bond Fund and other funds that invest in
been upgrading skills at all asset management companies.
foreign bonds. In addition, we sell the Nomura U.S. Loan Income
NOMURA JAPAN Stock Strategic Fund, the flagship fund of
Fund and funds that invest in stocks with high dividend returns,
Nomura Asset Management, and other funds have been rec-
such as the Global Attractive Dividend Stock Fund.
ognized through awards, including highest honors, from fund
The baby-boom generation in Japan has more than ¥340
evaluation firms.
trillion worth of financial assets. These individuals will also
We remain committed to providing customers with the
receive an estimated ¥80 trillion in retirement benefits. We there-
best investment returns and raising assets under manage-
fore expect asset management needs to become even greater,
ment. To accomplish this, we will continue to focus on
chiefly in this generation. To capitalize on these opportunities,
❖ Net Assets in Main Frequent-distribution Funds
(billions of yen)
900
800
700
600
500
400
300
200
100
0
Dec. 2003
Mar. 2004
June 2004
Sep. 2004
Dec. 2004
Mar. 2005
Nomura U.S. High Yield Bond Income
Global Attractive Dividend Stock Fund
Nomura Fund Masters Global Bond
Nomura U.S. Loan Income
Note: Frequent-distribution funds refer to investment trusts which pay out distributions at least
four times per year.
Annual Report 2005 R 39
❖ Investment Trusts Nomura Supplies to Defined Contribution Pension Plans
(billions of yen)
80
60
40
20
0
(accounts)
400
300
200
100
Sep. 2002
Mar. 2003
Sep. 2003
Mar. 2004
Sep. 2004
Mar. 2005
Defined contribution pension plan investment trust assets (lhs)
Companies offering Nomura products (rhs)
we will remain dedicated to developing new products that meet
We are also seeing growth in investment trust assets
our customers’ changing needs.
associated with variable annuity insurance policies and defined
✤Stronger Marketing Activities✤
contribution pension plans. The October 2005 start of invest-
ment trust sales through Japan Post is likely to become another
Conducting more powerful marketing is essential to ensuring
source of growth. By reinforcing marketing capabilities, we
that enhanced asset management capabilities and an expanded
intend to serve a broader range of customers and raise assets
product lineup lead to growth in assets under management.
under management.
Nomura Asset Management has Japan’s largest volume of
assets under management, distributing investment trusts
✤Defined Contribution Pension Plan Business✤
through the Nomura Securities domestic sales network,
In this business, pension plan administrator Nomura Pension
Japan’s largest securities distribution channel, as well as
Support & Service (NSAS) is our primary means of extending a
through other securities companies, banks and other finan-
full line of support, which ranges from assistance in designing
cial institutions. The company is continuing to strengthen its
a defined contribution pension plan and consulting services to
marketing efforts to boost assets under management.
supplying products. As of March 2005, we served as adminis-
Targeting the growing volume of investment trust sales
trator for 112 plans with a total of 240,000 participants.
via banks, we have set up funds exclusively for this sales
NSAS also supplies products to pension plans for which
channel and are seeing assets under management in these
it does not serve as administrator. The outstanding value of
funds climb. During the fiscal year, we set up five new funds
the investment trusts we supply for defined contribution pen-
for this channel. At the end of March 2005, assets in our seven
sion plans is about ¥77 billion.
investment trusts sold exclusively through banks had grown
More companies in Japan are adopting defined contribu-
to about ¥90 billion. We will continue to establish funds de-
tion pension plans, but competition is heating up at the same
signed for the product lineups of different financial institu-
time. We are working on capturing administration contracts
tions and specific customer needs. Plans also include stepping
from large plans. This involves strengthening marketing
up marketing and sales support. With these measures, we
activities and enhancing our services. We also plan to supply
intend to achieve further growth in assets under management.
more products for these plans. To raise efficiency, we will form
alliances with other financial institutions, such as our alliance
with Aioi Insurance Co., Ltd.
Nomura Holdings, Inc. R 40
Global Research
Our founder, Tokushichi Nomura, was aware from the outset of the limitations of securities trading
based on instinct and experience alone. He set up the first research department in Japan’s securities
industry, emphasizing the importance of scientific investment decisions. Our research division is
carrying on the founder’s philosophy of conducting research-driven business.
A Full Line of Research Activities Worldwide
macroeconomic trends. At the Investment Strategy Department,
On April 1, 2004, the economic and capital markets research
strategists analyze the stock market investment environment
sections of the Nomura Research Institute were transferred to
and provide advice on investment strategies. At the Equity
Nomura Group. This move created Global Research, which has
Research Department, analysts prepare forecasts on corporate
a staff of roughly 500, about 300 of whom are at the Nomura
performance and assess share price valuations. These depart-
Securities Financial & Economic Research Center. The remainder
ments work closely together, and collaborate as necessary with
work at overseas offices and Nomura Research & Advisory.
overseas offices to supply investors with highly insightful re-
The Nomura Securities Financial & Economic Research
search. Quantitative research involves the use of numerical
Center conducts fundamental and quantitative research.
methods to analyze securities. The Quantitative Research De-
Fundamental research involves gathering information and ana-
partment works with overseas offices to operate on a global
lyzing fundamentals of national economies and individual
scale. Nomura Securities research consistently receives high
companies and providing reports to investors. At the center’s
ratings in the analyst rankings of The Nikkei Financial Daily
Economic Research Department, economists study
(Nikkei Kinyu Shimbun) and Institutional Investor magazine.
❖ Global Research Structure
Global Research
Financial & Economic
Research Center
(Tokyo)
Asia Research
(Hong Kong)
Europe Research
(London)
U.S. Research
(New York)
Nomura Research &
Advisory (Tokyo)*
Corporate Office
Economic Research
Department
Investment Strategy
Department
Equity Research
Department
Quantitative Research
Department
Hong Kong
Korea
Taiwan
China
Singapore
Malaysia
Australia
*Jointly managed with Global Merchant Banking
Annual Report 2005 R 41
✤Economic Research Department ✤
✤Quantitative Research Department✤
A team of more than 20 economists in Japan works closely
This department has approximately 50 quantitative research-
with economists at our overseas offices to study and analyze
ers in Japan whose core skills are financial engineering and
macroeconomic and financial trends around the world, as
information technology. Activities involve research and de-
well as foreign exchange markets. Information reaches
velopment required to conduct sophisticated securities and
investors through various monthly reports and other chan-
finance businesses. The department forms the backbone of
nels. The department has a solid reputation for its consis-
Nomura Group’s financial technology infrastructure. Its re-
tent forecasts covering more than 20 countries and regions.
search covers a wide range of financial business areas in-
The department is also respected for the depth of its analysis
cluding asset management, trading, new product development,
of medium- and long-term social and economic structural
risk management, and corporate finance. Research targets the
problems, such as Japan’s aging population and shifts in
study and application of the latest advances in financial
international money flows.
engineering, such as portfolio and derivative theory, and the
✤Investment Strategy Department✤
latest developments in information technology, such as global
databases and leading-edge application systems. In addition,
The approximately 20 strategists of this department in Japan
financial technology expertise is used to provide consulting
provide advice concerning investment strategies based on an
services to assist institutional investors, companies and other
extensive analysis of stock markets in Japan, the U.S., Europe,
clients in asset management and risk management. The
Asia and other regions. Work is performed in collaboration
department conducts many joint research projects with lead-
with other departments of the Nomura Securities Financial &
ing universities and think tanks in Japan and overseas to keep
Economic Research Center as well as with overseas research
abreast of and apply the latest theories.
departments. Research covers many fields including economic
trends, corporate operating results, interest rates, foreign
✤Overseas Offices✤
exchange rates and other items affecting the investment
Nomura Group has economists, strategists and analysts in
environment. Strategists also analyze investor sentiment, cor-
seven locations outside Japan, including New York, London
porate finance, accounting, and laws and regulations affect-
and Asia-Pacific. In addition to Tokyo, there are quantitative
ing capital policies.
researchers in New York, London and Hong Kong. Individu-
✤Equity Research Department✤
als perform studies by working closely with research staff in
their respective offices and other regions, giving us a world-
In this department, some 60 analysts in Japan, each assigned
wide research network. As capital movements become increas-
to specific companies and industries, research listed compa-
ingly global, an information gathering capability of this scale
nies to determine corporate value and assess current and
is essential to conducting research. And global comparative
future investment value. Currently, we cover about 600
analysis of corporations is a key service for clients with globally
Japanese companies, which account for around 80% of the
diversified portfolios.
combined market capitalization of the Tokyo Stock Exchange
first and second sections and JASDAQ market. Each year, this
department issues more than 1,100 reports and about 2,600
flash reports, holds seminars, visits clients and takes other
actions to distribute information to investors around the world
on a timely basis.
Nomura Holdings, Inc. R 42
Research Reports
Nomura Research & Advisory
Research reports written by the Nomura Securities Financial
This wholly owned subsidiary of Nomura Holdings has ap-
& Economic Research Center reach customers through branch
proximately 20 staff who help privately owned companies
offices in Japan as well as many other channels. These include
grow toward the goal of conducting an IPO. The Research
Nomura websites, such as the Nomura Home Trade site, and
Department of this company is mainly involved in research to
information vendors that serve institutional investors. For
assess corporate value and provide advice to support man-
overseas institutional investors, we translate most research
agement. The Investment Department makes equity invest-
reports into English and make reports available through
ments through venture capital funds. Nomura Research &
Nomura Group overseas offices.
Advisory also extends support for new industries in growing
fields such as bio-tech and new energy through industry-
specific seminars and other activities.
❖ Research Reports
Annual Report 2005 R 43
Corporate Governance
Nomura Group companies in Japan adopted the Committee System in June 2003. This system
separates the roles of management supervision and business execution, facilitating the delegation of
considerable authority to executive officers in charge of business operations. There are three
committees, Nomination, Audit and Compensation, each having a majority of outside directors in
order to strengthen the supervision of management and heighten management transparency.
Characteristics of the Committee System
Under the Committee System, the directors are primarily re-
sponsible for the oversight of management. Executive officers
Meeting the challenges of corporate governance
❖ Appointed outside directors (2001)
❖ Established Internal Controls Committee, which includes
chosen by the directors conduct business operations within
an outside director (2001)
the scope of authority delegated by the directors.
❖ Established Compensation Committee with a majority of
Of the 11 Nomura Holdings (NHI) directors, four serve
outside directors (2001)
concurrently as executive officers: the chairman, president
(CEO) and deputy presidents (COO and Co-COO). Four of the
remaining seven directors meet the requirements of outside
❖ Established Advisory Board (2001)
❖ Abolished retirement bonuses for directors (2001)
❖ Began granting stock options to directors and certain
directors as defined under the Japanese Commercial Code.
employees (2002)
The Audit Committee is chaired by an outside director and
the Nomination and Compensation committees are chaired
by a director other than the CEO.
❖ Adopted the Committee System (2003)
❖ Established Code of Ethics of Nomura Group (2004)
❖ Began holding meetings of outside directors (2004)
❖ Management Structure
Shareholders’ Meeting
Board of Directors
President & CEO
Nomination Committee
Audit Committee
Compensation Committee
Board of Executive Officers
Executive Management Board
Advisory Board
Internal Controls Committee
Commitment Committee
✦ Consultative body for the Executive
Management Board
✦ Top managers of representative global
Japanese companies offer management advice
Nomura Holdings, Inc. R 44
Corporate Governance Ranking
✤Audit Committee✤
NHI is ranked first among Japanese companies included in
The Audit Committee is responsible for auditing the business
the MSCI EAFE index* based on the corporate governance
execution of the directors and executive officers, as well as for
quotients assigned by Institutional Shareholder Services.
decisions regarding proposals submitted to the General Meet-
Moreover, in January 2005 NHI received a perfect score of
ing of Shareholders concerning the appointment and dismissal
10.0 in the ratings of Japanese companies by Governance
of accounting auditors. In addition, the Audit Committee dis-
Metrics International.
* The MSCI EAFE index is a stock price index compiled by Morgan Stanley Capital Inter-
national that covers Europe, Australasia and the Far East, but not North America.
Management Structure
Operations of the Board of Directors
The Board of Directors is responsible for making decisions on
items specified by the Commercial Code, such as fundamental
management policies and the appointment of executive officers
and committee members. The executive officers report to the
directors on business conditions as well as matters for delib-
eration by the Board of Executive Officers and the Executive
Management Board. In addition, the executive officers must
submit a monthly financial report to the directors.
Three Committees
The Nomination Committee, Audit Committee and Compen-
sation Committee have been given the authority to make
decisions on issues including candidates for the Board of
Directors, compensation for directors and executive officers,
and audits concerning the performance of directors and ex-
ecutive officers.
✤Nomination Committee✤
The Nomination Committee is responsible for decisions re-
garding proposals made to the General Meeting of Share-
holders concerning the appointment and dismissal of directors.
The majority of the Nomination Committee must be outside
directors. The current members are NHI Chairman Junichi Ujiie,
who is committee chairman, and outside directors Masaharu
Shibata and Hideaki Kubori. Directors who are representative
executive officers, including the CEO, are not members of the
Nomination Committee. The Nomination Committee met twice
during the year ended March 31, 2005.
cusses and approves compensation for the accounting auditors
based on a proposal submitted by the Chief Financial Officer.
The majority of members of the Audit Committee are
outside directors. The current members are outside directors
Haruo Tsuji, who is committee chairman, and Koji Tajika, and
Fumihide Nomura, who is not an executive officer. Audit
Committee members do not serve on the other committees.
In addition, all members of the Audit Committee fulfill the
requirements of independent directors as defined under the
Sarbanes-Oxley Act, and Koji Tajika fulfills the requirements
of an audit committee financial expert pursuant to this act.
The Audit Committee met 22 times during the year ended
March 31, 2005.
✤Compensation Committee✤
The Compensation Committee makes decisions regarding
compensation for directors and executive officers, both in
terms of broad policy and compensation for specific indi-
viduals. The majority of members of the Compensation
Committee are outside directors. The current members are
NHI Chairman Junichi Ujiie, who is committee chairman, and
outside directors Masaharu Shibata and Hideaki Kubori.
Directors who are representative executive officers, including
the CEO, are not members of the Compensation Committee.
The Compensation Committee met four times during the year
ended March 31, 2005.
Compensation for Directors and Executive Officers
NHI has two basic compensation policies for directors and
executive officers. One is a flexible system for determining
compensation based on performance relative to manage-
ment targets. This is aimed at increasing motivation and em-
powering individuals to maximize performance. The second
is the introduction of equity-based compensation to enhance
Annual Report 2005 R 45
❖ ROE-linked Base Salary
long-term incentives. Compensation for directors and executive
Consolidated ROE
officers is composed of the following three components.
Base Salary
The base salary of each director and executive officer is the
sum of amounts based on each individual’s career, post and
Under 0%
0% to 5%
5% to 10%
10% to 15%
Over 15%
Base salary
0
1/3 of standard salary
2/3 of standard salary
Standard salary
4/3 of standard salary
responsibilities, and the degree to which the consolidated ROE
Executive Management Board
target has been achieved. The ROE-linked portion is deter-
The Executive Management Board formulates Nomura Group
mined as shown in the table on the right.
management strategies and makes decisions concerning the
Cash Bonus
fundamental policies for business lines to execute their plans
and operations. The Executive Management Board also moni-
The cash bonus is based on quantitative factors such as con-
tors each business line on the basis of earnings and other
solidated net income, ROE and earnings of segments/busi-
indicators that are designed to accurately gauge the status of
ness lines. This bonus is also based on qualitative items, such
operations. Currently, the Executive Management Board is
as the degree to which management targets and personal
made up of 10 executive officers and is chaired by the CEO.
targets have been met, assessments of individual contribu-
tions, and other factors. The aggregate cash bonuses of all
Internal Controls Committee
Nomura Group directors and executive officers may not ex-
The Internal Controls Committee is responsible for establish-
ceed 3% of consolidated net income.
ing internal controls concerning Nomura Group operations,
Stock Bonus
and deliberations and decisions regarding proper corporate
behavior. Currently, the Internal Controls Committee is made
The stock bonus is determined separately for each individual
up of four executive officers and two directors, including one
by taking into consideration all applicable factors. This in-
outside director, and is chaired by the CEO.
cludes parameters such as consolidated net income and ROE,
as well as the level of this compensation relative to the base
Commitment Committee
salary, cash bonus and stock bonus, and the benefits relative
The Commitment Committee is responsible for deliberations and
to the cost of providing such bonuses.
decisions regarding important items involving Nomura Group
Business Execution System
with regard to risk management. The Commitment Committee is
To ensure that executive officers make business decisions
made up of seven executive officers and is chaired by the COO.
positions having a low liquidity and positions that are material
smoothly and appropriately, NHI has a Board of Executive
Officers, Executive Management Board and Internal Controls
Internal Controls
Committee, which are chaired by the CEO, and a Commitment
The Audit Committee has primary responsibility for man-
Committee chaired by the COO.
agement supervisory functions in companies that operate
under the Committee System. The main members of the
Board of Executive Officers
Audit Committee are outside directors. To supplement the
The Board of Executive Officers is responsible for delibera-
Audit Committee’s auditing activities and ensure an airtight
tions and decisions regarding Nomura Group business plans,
auditing system, NHI designates Audit Mission Directors.
budgets, and the allocation of management resources. The
In addition, NHI’s Office of Audit Committee supports the
Board of Executive Officers is made up of all 32 executive
activities of the Audit Committee. The Internal Audit Division
officers and is chaired by the CEO.
is charged with distributing sufficient information to
Nomura Holdings, Inc. R 46
individuals responsible for business execution as well as the
Section 404 of the Sarbanes-Oxley Act. Internal controls over
Audit Committee and Audit Mission Directors.
financial reporting must be formulated by the CEO and CFO,
or under the supervision of these two executives. To fulfill this
Disclosure Committee
requirement, the related divisions of NHI along with Nomura
To ensure that investors receive fair access to information on
Securities and other major consolidated subsidiaries (includ-
Nomura Group, the group has established “Nomura Group’s
ing overseas subsidiaries) are currently preparing the mas-
Statement of Global Corporate Policy regarding Public
sive volume of documents concerning processes involving
Disclosure of Information.” This sets forth policy directives
important financial statement items and items to be disclosed.
that protect non-public information while at the same time
The Internal Audit Division is responsible for performing
promoting timely and appropriate public disclosures. The
tests and assessments concerning the effectiveness of inter-
statement adheres to the principle of U.S. Regulation FD.*
nal controls. Progress with these tests and evaluations is
Based on this global corporate policy, NHI has established
reported not only to the Disclosure Committee, but also to
a Disclosure Committee that is chaired by the NHI executive
the Audit Committee and Internal Controls Committee.
* U.S. Securities and Exchange Commission (SEC) regulations forbid companies from
releasing important information to certain people, such as analysts or institutional inves-
tors, before it is released to the general public.
officer responsible for global corporate communications. The
Disclosure Committee is responsible for deliberations and
decisions regarding disclosure of material information, legally
mandated documents such as SEC Form 20-F, the Japanese
Annual Securities Reports, and other reports.
The Disclosure Committee is taking the lead in document-
ing internal controls, as well as in evaluating the effectiveness
of those controls, for financial reporting in accordance with
❖ Internal Controls System
Internal Controls Committee
Audit Committee
Audit Mission Directors
Director (Chairman of Audit Committee) +
Director (Audit Mission Director)
✦ Promotes proper corporate behavior throughout
the group and enhances internal controls and
procedures
Approval of
Audit Plan
Audit Report
Audit Report
Audit Report
Office of Audit Committee
✦ Assist Audit Mission Directors by providing
operational support
Internal Audit Division
Internal Audit
Management
Nomura Holdings and its Subsidiaries
Business
Risk
Management
Compliance
Annual Report 2005 R 47
Directors and Executive Officers (As of June 28, 2005)
Directors
Executive Officers
Chairman
Junichi Ujiie
Senior Managing Director
Directors
Nobuyuki Koga
Junichi Ujiie
Hiroshi Toda
Kazutoshi Inano
President & CEO (Representative Executive Officer)
Nobuyuki Shigemune
Nobuyuki Koga
Chief Executive Officer
Yukio Suzuki
Masaharu Shibata*
Deputy President & COO (Representative Executive Officer)
Hideaki Kubori*
Haruo Tsuji*
Hiroshi Toda
Chief Operating Officer
Fumihide Nomura
Deputy President & Co-COO (Representative Executive Officer)
Koji Tajika*
Kazutoshi Inano
Co-Chief Operating Officer
*Outside director
Senior Managing Directors
Takashi Yanagiya
Head of Global Investment Banking
Kenichi Watanabe
Head of Domestic Retail
Takumi Shibata
Head of Asset Management
Manabu Matsumoto
Hiromi Yamaji
Shogo Sakaguchi
Masanori Itatani
Head of Internal Audit
Yoshimitsu Oura
Yusuke Yamada
Hitoshi Tada
Yasuo Agemura
Head of Global Markets
Akihiko Nakamura
Head of Global IT & Operations
Hideyuki Takahashi
Regional Management of Americas Region
Hiroshi Tanaka
Noriyasu Yoshizawa
Regional Management of China Region
Yasuo Yoshihara
Akira Maruyama
Head of Global Merchant Banking
Akihito Watanabe
Head of Global Research
Tetsu Ozaki
Head of Global Corporate Communications
Shigesuke Kashiwagi
Head of Global Fixed Income
Yugo Ishida
Atsuo Sakurai
Regional Management of Europe Region
Head of Asset Finance
Masafumi Nakada
Chief Financial Officer, Head of Global Risk
Management, Treasury, Controller and IR
Hiromasa Yamazaki
Head of Global Equity
Kamezo Nakai
Takahide Mizuno
Atsushi Yoshikawa
Yasuaki Fukui
Nomura Holdings, Inc. R 48
Compliance Structure
Nomura Group places strong emphasis on preventing behavior that could be seen as illegal. Should
a problem occur, there is a framework for submitting reports to management without exception or
delay, and for responding appropriately. Each group company must ensure steadfast compliance
and adherence to the relevant rules and regulations, as well as sufficiently manage operations
based on Nomura Group’s Regulations of the Organization. Group companies must also properly
supervise their operations based on their own internal rules. However, group companies work in a
unified manner on such issues as appointing Compliance Officers and setting up compliance
hotlines. The Nomura Securities Compliance Department holds regular meetings of group company
Compliance Officers to strengthen cooperation within the Group.
Establishment of Code of Ethics of Nomura Group
Compliance Hotline
In March 2004, Nomura Group voluntarily established the
The NHI Compliance Hotline was set up in October 2002.
“Code of Ethics of Nomura Group”* to provide global guide-
Nomura Securities began operating its own Compliance Hotline
lines that are applicable to everyone working in the group.
in October 1997. The purpose of the group Compliance Hotline
Reflecting the Founder’s Principles of Nomura, the code has
is to provide a means of going beyond individual companies
items concerning corporate governance and corporate social
to relay information directly to management at NHI for em-
responsibility. In all, there are 19 items that should be ob-
ployees who discover acts that violate laws or company regu-
served by Nomura Group people worldwide.
lations, or other anti-social behavior. Information can be
* Refer to CSR Report 2005 for more information.
Compliance Officers
supplied directly to the designated NHI executive officer and to
an outside director. Information provided through the Compli-
ance Hotline and the status of responses are reported to and
Each Nomura Group company appoints a Compliance Of-
examined by the NHI Internal Controls Committee.
ficer who is responsible for confirming that all employees are
Employees are informed that measures have been taken
aware of their obligations to respect the law and that busi-
to ensure that individuals who report violations are completely
ness operations are conducted in a manner that complies with
protected from any negative consequences.
laws and regulations.
Due to the differing nature of operations, each group
Global Legal Risk
company may appoint a Compliance Officer for each depart-
Because Nomura Group conducts business on a global scale,
ment, or one or more Compliance Officers at each head office
adequate measures are taken with regard to legal risks asso-
or company. Compliance Officers are responsible not only
ciated with overseas compliance and cross-border transac-
for monitoring adherence to laws and regulations, but also
tions. The group is heightening professional expertise
for ensuring that activities conform to social standards from
concerning the regulatory environment for its international
the standpoint of corporate ethics.
activities. Nomura Group is also refining skills in the develop-
Group Compliance Officers attend an annual training
ment of cross-border products and services that take into
seminar. These events reinforce awareness of their responsi-
account the requirements of laws and regulations of various
bilities and raise awareness within Nomura Group of the need
regulatory regimes.
to observe a unified compliance policy and set of regulations.
Overseas legal risk is managed primarily on a regional
Annual Report 2005 R 49
basis. As part of the management of legal risk associated with
office departments and Compliance Officers are assigned at
global business activities, Nomura Group periodically holds a
each department and branch office.
global legal conference and a global compliance conference.
This provides a forum for examining problems involved with
Compliance Hotline
cross-border and other business activities.
The Nomura Securities Compliance Hotline provides another
means, separate from the NHI channels, for Nomura Securities
Nomura Securities Compliance Structure
employees to submit information directly to the Internal
Nomura Securities has established a Compliance Program,
Administration Supervisor and external lawyers. These law-
which is a detailed action plan for compliance, and developed
yers are the legal supervisors of Nomura Securities’
its compliance structure based on this program.
Compliance Committee. In addition, there is a system in place
to completely shield individuals providing information from
Compliance Committee
any negative consequences.
The Compliance Committee is made up of 14 executive offic-
ers including the CEO, the Internal Administration Supervisor,
Compliance Training
and two external lawyers who act as legal supervisors. As a
Compliance manuals designed to ensure a clear understand-
rule, the committee meets twice each month to discuss the
ing of laws and regulations are made available via the group’s
internal control system, compliance rules and other impor-
intranet, providing a compliance education framework for all
tant matters concerning compliance.
directors, officers and employees.
Training programs are conducted in accordance with the
Compliance Management at Departments and Branch Offices
duties of employees, and training materials are used for monthly
In accordance with Japan Securities Dealers Association regu-
training sessions at branch offices. Reports on the implemen-
lations, Internal Controls Officers are assigned within front-
tation of these sessions are submitted to administrators.
❖ Nomura Securities Compliance Hotline
Employees
Operating Officers
Internal Controls Officers
Compliance Officers
External Lawyers
Internal Administration Supervisor
Nomura Holdings
Designated Executive Officer
Outside Director
Compliance Committee
Board of Executive Officers
Nomura Holdings, Inc. R 50
Corporate Citizenship
Tokushichi Nomura explained Nomura’s raison d’etre as follows: “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 that sound economic growth is essential to achieving a
truly affluent society. To this end, we are actively engaged in increasing educational opportunities
that broaden the understanding of financial and securities markets. Since we also believe in the
importance of adopting a well-rounded perspective of society, we are active supporters of academia,
culture, the arts and sports.
Economics and Securities Education
Nihon Keizai Shimbun, Inc., we operate the “man@bow” (“Let’s
Nomura Group provides a broad range of opportunities to
learn!”) economics website. Another activity is “Doki Doki Waku
learn more about the economy and securities markets, not
Waku Okane no Hanashi,” an educational program carried by
only to children, who will forge the future, but also to middle-
more than 160 cable TV stations in Japan that deals with the
aged and older people. For this purpose, we hold securities
importance of managing assets.
seminars at more than 110 universities in Japan, and hold
programs covering finance and securities subjects for com-
Cooperation Between Universities and Industries
munities and workplaces. For junior and senior high school
In 1986, Nomura Group established the Nomura Foundation
students and university students, we are a special sponsor for
for Academic Promotion to commemorate Nomura Securities’
a portfolio training and reporting contest called Nikkei Stock
60th anniversary. To promote academic research and interna-
League. We also extend support to the Quest Education Pro-
tional exchanges involving research and education, the foun-
gram, which fosters junior and senior high school students’
dation focuses its support mainly on the fields of law, political
career views and offers them a chance to consider what they
science and economics.
want to be and how they want to live their lives. With the
❖ Education Initiatives
Publications
Events
Lectures
Elementary schools
Junior high schools
Senior high schools
Universities
Adults
Company employees Communities
The Secret of Money
Finance for Beginners
Enjoying Economics
Activities to promote
defined contribution
pension plan schemes
Nomura Money Fair
Seminars at Nomura Securities’ branches
Securities education programs
Securities learning programs
Education programs
Quest Education Program
Special sponsor of Nikkei Stock League
Internet
Cable TV
Nikkei Education Forum
Educational content on the internet
Nomura Free School
Doki Doki Waku Waku Okane no Hanashi
Annual Report 2005 R 51
❖ Nomura-backed Industry-Academia Affiliations
Support for Culture and the Arts
Columbia University
We are a lead corporate sponsor for the alternative investment program
The Nomura Cultural Foundation, which was
established in May 1990, supports human
resource development activities in the areas
of music and fine arts and promotes inter-
national exchange. The foundation cultivates
young artists and supports performances,
exhibitions, symposiums and other events
at the Columbia University Center on Japanese Economy and Business.
Oxford University
Nomura Group established the Nomura Centre for Quantitative Finance
at the university. We provide a practical course on derivatives and offer
support for research in cutting-edge financial engineering.
University of Tokyo
At the University of Tokyo’s Office of University Corporate Relations, which
was established in November 2002, we worked on the first joint research
project, “Development of a Model for Industry-University Collaboration
Based on Market Principles.” In April 2004, the university founded the
Research Center for Finance. Junichi Ujiie, Chairman of NHI, was named
the center’s first director.
that promote international exchanges in the
Kyoto University
In 2001, Kyoto University’s Institute of Economic Research and Nomura
arts and culture. The foundation also grants
scholarships to international students.
In 1996, the Nomura Cultural Founda-
tion created the Nomura Prize, a scholarship
and citation program, at the Tokyo National
Group jointly established the Research Section for Application of Finan-
cial Engineering, funded by Nomura Group, within the institute.
Hitotsubashi University
The Financial and Capital Markets Research Center was established as a
forum to encourage the exchange of opinions among the academic, gov-
ernmental and industrial sectors. In 2005, study groups were set up for
corporate governance and social responsibility investments (SRI).
University of Fine Arts and Music. The first prize was awarded
in 1998. The foundation selects and purchases distinguished
pieces made by figurative arts doctoral students to store and
Other Activities
display at the university’s museum. This develops promising
JOC Official Partnership
young artists, improves the collection of artistic documents at
Nomura Group has supported the Japanese Olympic Commit-
the museum, and promotes related education and research.
tee (JOC) as an official partner since the 2000 Sydney Games.
To support the Pacific Music Festival’s mission, “To broaden
and develop the world’s music by nurturing young musicians,”
EXPO 2005 Aichi, Japan
Nomura Securities and the Nomura Cultural Foundation have
At the 2005 World Exposition, held from March 25 to Sep-
been special corporate sponsors since the festival was started
tember 25, 2005, Nomura Group is a sponsor of Global
in 1990 by the late Leonard Bernstein.
House, which explores relationships between nature and
mankind in the 21st century in line with the exposition’s
Social Welfare Activities
official theme of “Nature’s Wisdom.”
All Nomura Group companies are committed to social welfare
activities to contribute to good health and enriching lifestyles.
Survey on the Costs of Child-raising (“Angel Coefficient”)
One illustration is our co-sponsorship of the annual
Nomura Securities has conducted this biennial survey since
National Health and Welfare Festival for Seniors (“Nenrinpic”)
1989 to gather quantitative data on the budgets and economic
since its inception. The 18th festival will be held in 2005 in
condition of households from the perspective of child-raising
Fukuoka. In the United States, we established the Nomura
costs. The “Angel Coefficient,” a term coined by Nomura and
America Foundation in 1994, which has contributed to
now widely used in Japan, is the percentage of total house-
children’s welfare groups, community project groups and
hold expenditures used for child-raising.
educational institutions across the country. Nomura Group
* Refer to CSR Report 2005 for more information.
made a donation to the Special Olympics World Winter Games
held in Nagano in February 2005.
Note: Special Olympics is an international organization dedicated to supporting children and
adults with intellectual disabilities by providing them with year-round sports training
and athletic competition. This gives these people continuing opportunities to raise their
level of independence and participation in society.
Nomura Holdings, Inc. R 52
A Better Workplace
Nomura Group is dedicated to providing employees with a work environment where they can do
their jobs productively while leading fulfilling lives. We are also committed to creating a better
work environment for all employees.
Creating a Better Workplace
Fundamental Principle
Nomura Group is dedicated not only to compliance with laws
The Nomura Group’s fundamental principle is that employ-
and regulations, but also to providing a pleasant working envi-
ees must not discriminate, let others discriminate or condone
ronment where the human rights of all employees are respected.
discrimination. The group aims to develop an awareness con-
Communication
We believe that active internal communication is essential to
cerning corporate social responsibility among employees and
to deepen their understanding of human rights issues.
motivating employees. To provide for this communication, we
In-house and External Training Programs
use our intranet, internal publications and other means to
To give all employees a thorough understanding and aware-
communicate messages from senior management, important
ness of our fundamental principle, Nomura has established
decisions and other information.
the Human Rights Education Committee and conducts hu-
Workplace Safety
man rights awareness training for all Nomura Group execu-
tives at least once each year. In addition, training programs
Nomura Group exercises care to provide a safe and com-
are conducted for employees based on the human rights
fortable workplace. Attention is paid to desk space, lighting,
promotion framework, which is centered on the Human Rights
air conditioning, temperature settings and other items.
Education Committee. Twenty programs were held during
fiscal 2004.
Mental Health Care
To incorporate a broad range of external views on human
Mental health care measures are part of our actions to pro-
rights, we participate in seminars and training programs con-
vide all employees with a better work environment. Health
ducted by government agencies, human rights groups, non-
care centers conduct examinations by psychiatrists and em-
profit organizations and others. This is done mainly through
ployees have access to counseling through the Counseling
the Human Rights Education Department and Human Rights
Room. To access physicians and counselors outside the group,
Awareness Promotion Committee members at branch offices.
employees and their family members can use the 24-hour
Nomura Health Dial 24.
Prevention of Harassment and Discrimination
Nomura Group has set out guidelines to prevent sexual
Rigorous Health Management
harassment and established an external contact for consulta-
Nomura Group has departments specializing in the promo-
tions concerning power harassment, thereby taking steps to
tion of healthy lifestyles and operates internal clinics to assist
prevent both types of harassment. Based on its basic policy
employees manage their health. Guidelines have been estab-
on AIDS, Nomura Group works on protecting individuals af-
lished for periodic check-ups, other check-ups and compre-
flicted with AIDS from discrimination and prejudice.
hensive physical exams. Employees over 30 are required to
undergo comprehensive physical exams.
Employment
Human Rights
Nomura Group strives to maintain employment practices that
reflect the employment environment and nature of business
Based on the recognition that human resources are Nomura
activities in the finance and securities industries. The person-
Group’s most important asset, we take extensive measures to
nel system complies with all laws and regulations and reflects
protect the rights of each individual and prevent discrimina-
employment terms for individual countries and regions as well
tion and harassment.
as for different types of employment contracts.
Annual Report 2005 R 53
New Personnel System
Employee Training System
Nomura Securities will adopt a new personnel system in
Nomura Group is building a personnel training system that
October 2005. The new system is designed to make the com-
enhances the overall vitality of the group and contributes to
pany more competitive over the medium and long terms by
the thorough execution of a merit-based personnel system,
ensuring a faster, smoother response to changes in customer
in which employees are properly treated based on their per-
needs and market conditions. The basic philosophy of the
system is to create a work environment where employees can
realize their full potential and to adopt a merit-based system
formance and motivation.
✤Instructor System✤
Senior employees are appointed as on-the-job instructors for
in which employees are properly compensated in line with
newly hired employees. This system makes it possible to
their performance.
conduct comprehensive monitoring of improvements in busi-
Under the new system, there will be two types of employees:
ness knowledge, practical skills and other capabilities that
zeniki-gata shain (whole area employees), who are subject to
transfers that require a change of residence; and chiiki-gata
shain (specific area employees), who are exempt from such
contribute to a new employee’s development.
✤Training Application System✤
To increase the motivation of employees and encourage them
transfers. Employees in both categories are engaged in the same
to acquire more specialized knowledge, employees can apply
scope of business activities. All employees may apply to switch
to participate in any of four training courses: study abroad;
to the other category. To compensate employees fairly based
Financial & Economic Research Center analyst training;
on their performance, more authority to conduct employee
Investment Banking Division training; and fund manage-
evaluations is being transferred to work sites.
For financial advisers (FAs), who are community-based sales
professionals, employment contracts will be changed from fixed-
ment training.
✤International Business Skill Training✤
Nomura Securities offers training programs to give individu-
term contracts to ones without a fixed term. In addition, com-
als the practical English language skills they need to work in
pensation will be more weighted toward performance.
the securities industry.
✤Support for Acquisition of Qualifications✤
Nomura Securities offers specialized training programs for
the acquisition of specific qualifications. Through these pro-
grams, extensive support is offered for individuals seeking
securities dealer, financial planner, securities analyst and
other qualifications.
* Refer to CSR Report 2005 for more information.
❖ Training System (FY04)
Directors
(Nomura Group) training new directors
Training new branch office managers
Training new general administration managers
Training instructors
Training to qualify employees to be variable
pension insurance sales people
Financial planner training
Core-skill training
Investment banking refresher course
Presentation skills (English)
Training for employees being transferred
overseas for the first time
International business skills
Managing
director level
Executive
director level
New managing
director training
New executive
director training
Assistant vice
president level
Training for
new assistant
vice presidents
Second-year training
First-year training
Training by grade
Respond to directions
Practical business
training by purpose
Language training for
studying abroad
Nomura Holdings, Inc. R 54
Product Policies
Nomura Group carefully analyzes the financial products it offers and provides customers with accurate
information and easy-to-understand instructions. We also consider customers’ knowledge of financial
products, their financial status and other factors before fully explaining appropriate product choices.
This ensures that customers are able to make sound investment decisions. Our approach to soliciting
business is in full compliance with the Securities Exchange Law and other relevant laws and
regulations. Nomura Group is thus committed to providing services worthy of a financial and
securities company in developing products, providing information and soliciting business.
Specific approaches by Nomura Securities
Soliciting business
The specific approaches taken to develop products, provide
In accordance with “Nomura Securities Sales Policies,” Nomura
information and solicit business at Nomura Securities, a core
Securities consults with customers regarding their investment
subsidiary of the Nomura Group, are described below.
strategies and experience and financial status prior to sug-
gesting appropriate product choices. The company is also
Formulating products
considerate of sales meeting times, places, and methods in
Nomura Securities has established a range of design guide-
order to ensure utmost customer convenience.
lines for its product head offices to follow in developing attractive
A comprehensive understanding of customer circum-
products. The company exercises due diligence with regard to
stances is particularly important for initial public offerings,
the schemes and propriety of private subscription products
other offerings and sales, as stated in the “Basic Policies on
developed by other companies and sold by Nomura Securities.
Sales.” Special guidelines have been established regarding the
Providing information
sive sales efforts focusing on particular customers. Candor
Nomura Securities provides accurate product information and
and fairness are the principles at the heart of all solicitation
timing and volume of distributions in order to avoid exces-
explains product risk in detail to customers, in keeping with
and sales efforts.
the Law on Sales of Financial Products and other relevant laws
and regulations.
Nomura Securities has developed “Guidelines on Prepar-
ing Sales Brochures for Customers” in accordance with the
Japan Securities Dealers Association’s “Guidelines Concerning
Advertisement Brochures.” All written materials provided to
customers are carefully examined to ensure they conform to
the Guidelines.
Subsidiaries and Affiliates
As of July 31, 2005
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 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) 3340-0307
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 &
SERVICE CO., LTD.
1-11-1, Nihonbashi, Chuo-ku
Tokyo 103-0027, Japan
Tel: 81 (3) 3275-0401
Fax: 81 (3) 3275-2277
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 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.
1-9-1, Nihonbashi, Chuo-ku
Tokyo 103-8011, Japan
Tel: 81 (3) 3278-9711
Fax: 81 (3) 3241-8187
NOMURA FACILITIES, INC.
1-7-2, Nihonbashi-honcho, Chuo-ku
Tokyo 103-0023, Japan
Tel: 81 (3) 3231-6261
Fax: 81 (3) 3231-6409
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
INTERNATIONAL, INC.
New York Head Office:
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-9300
Fax: 1 (212) 667-1058
Chicago Office:
77 West Wacker Drive
Chicago, IL 60601-1717, U.S.A.
Tel: 1 (312) 408-9500
Fax: 1 (312) 408-9555
Annual Report 2005 R 55
Los Angeles Office:
6100 Center Drive Suite 1050
Los Angeles, CA 90045, U.S.A.
Tel: 1 (310) 348-3100
Fax: 1 (310) 348-3144
San Francisco Office:
425 California Street, Suite 2600,
San Francisco, CA 94104, 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 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) 667-9300
Fax: 1 (212) 667-1058
NOMURA ASSET CAPITAL
CORPORATION
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-9300
Fax: 1 (212) 667-1058
THE CAPITAL COMPANY OF
AMERICA, LLC
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-2250
Fax: 1 (212) 667-1095
NOMURA DERIVATIVE PRODUCTS, INC.
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-9416
Fax: 1 (212) 667-1400
NOMURA GLOBAL FINANCIAL
PRODUCTS, INC.
2 World Financial Center, Building B
New York, New York 10281-1198, U.S.A.
Tel: 1 (212) 667-2357
Fax: 1 (212) 667-1047
Nomura Holdings, Inc. R 56
NOMURA SECURITIES (BERMUDA) LTD.
BANQUE NOMURA FRANCE
Chesney House, 96 Pitts Bay Road
Pembroke HM 08, Bermuda
Tel: 1 (441) 296-4050
Fax: 1 (441) 296-4061
NOMURA CANADA INC.
2 Bloor Street, West Suite 700, Toronto,
Ontario M4W 3R1, Canada
Tel: 1 (416) 868-1683
Fax: 1 (416) 359-8956
NOMURA ASSET MANAGEMENT
U.S.A. INC.
2 World Financial Center, Building B
New York, New York 10281-1712 U.S.A.
Tel: 1 (212) 667-1414
Fax: 1 (212) 667-1460
Europe & Middle East
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:
Paseo de La Castellana, 41-2F 28046,
Madrid, Spain
Tel: 34 (91) 532-0920
Fax: 34 (91) 521-6010
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 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
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 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 Milano, 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) B.S.C. (c)
7th Floor, BMB Centre
Diplomatic Area, P.O. Box 26893
Manama, Bahrain
Tel: (973) 17 530531
Fax: (973) 17 530365
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 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
Seoul Branch Office:
12th Floor, Youngpoong Building,
33 Seorin-dong, Chongro-ku, Seoul, Korea
Tel: 82 (2) 399-6100
Fax: 82 (2) 399-6689
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
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 No.16. 3, Level 16, Letter Box No.46
Menara IMC, 8 Jalan Sultan Ismail 50250
Kuala Lumpur, Malaysia
Tel: 60 (3) 2076-6811
Fax: 60 (3) 2076-6877
Annual Report 2005 R 57
P.T. NOMURA INDONESIA
Major Affiliates and Group Companies
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 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
NOMURA ASSET MANAGEMENT
AUSTRALIA PTY LIMITED
Level 32, Colonial Centre,
52 Martin Place, Sydney, N.S.W. 2000,
Australia
Tel: 61 (2) 9321-3901
Fax: 61 (2) 9321-3949
REPRESENTATIVE OFFICES OF NOMURA
SECURITIES CO., LTD.
Beijing Representative Office:
1212, Beijing Fortune Building,
5 Dongsanhuan-Beilu, Chaoyang District,
Beijing, China
Tel: 86 (10) 6590-8181
Fax: 86 (10) 6590-8182
Shanghai Representative Office:
725, 7/F., Shanghai Central Plaza, 381 Huai
Hai Zhong Road, Shanghai 200020, China
Tel: 86 (21) 6391-5353
Fax: 86 (21) 6391-6225
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
Japan
NOMURA LAND AND BUILDING
CO., LTD.
1-7-2 Nihonbashi-honcho, Chuo-ku
Tokyo 103-0023, Japan
Tel: 81 (3) 3231-1901
Fax: 81 (3) 3231-6421
NOMURA RESEARCH INSTITUTE, LTD.
1-6-5 Marunouchi, Chiyoda-ku
Tokyo 100-0005, Japan
Tel: 81 (3) 5533-2111
Fax: 81 (3) 5533-3383
NOMURA REAL ESTATE DEVELOPMENT
CO., LTD.
1-26-2 Nishi-Shinjuku, Shinjuku-ku
Tokyo 163-0566, Japan
Tel: 81 (3) 3348-8811
Fax: 81 (3) 3345-0381
JAFCO CO., LTD.
1-8-2, Marunouchi, Chiyoda-ku
Tokyo 100-0005, Japan
Tel: 81 (3) 5223-7536
Fax: 81 (3) 5223-7561
Asia & Oceania
NOMURA CORPORATE ADVISORY
(CHINA) CO., LTD.
1218, Beijing Fortune Building,
5 Dongsanhuan-Beilu, Chaoyang District,
Beijing, China
Tel: 86 (10) 6590-9090
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, China
Tel: 86 (10) 6590-8991
Fax: 86 (10) 6590-8999
Domestic Network (Alphabetical order for each region)
Nomura Holdings, Inc. R 58
Hokkaido
Tohoku
Kanto
Office Name
Head Office
Telephone
Address
81 (3) 3211-1811
1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8011
Asahikawa Branch Office
Hakodate Branch Office
Kushiro Branch Office
Sapporo Branch Office
Akita Branch Office
Aomori Branch Office
Fukushima Branch Office
Hachinohe 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
Kumagaya Branch Office
Matsudo Branch Office
Mito Branch Office
Odawara Branch Office
Omiya Branch Office
Ota 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
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 (178) 72-1001
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 (48) 529-5111
81 (47) 362-1221
81 (29) 224-5231
81 (465) 24-8511
81 (48) 641-8111
81 (276) 30-1533
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
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
28 Jusannichi-machi, Hachinohe-shi, Aomori 031-0041
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
3-202 Tsukuba, Kumagaya-shi, Saitama 360-0037
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
3-1, Hamacho, Ota-shi, Gunma 373-0853
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, Urawa-ku, 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
81 (424) 98-6011
Tokyo metropolitan area Chofu Branch Office
81 (42) 369-8111
Fuchu Branch Office
81 (3) 3491-9101
Gotanda Branch Office
81 (426) 46-3811
Hachioji Branch Office
Ikebukuro Branch Office
81 (3) 3983-1111
Ikebukuro Metropolitan Plaza Branch Office 81 (3) 3988-1181
81 (3) 3718-3371
Jiyugaoka Branch Office
81 (3) 3783-5101
Kamata Branch Office
81 (422) 22-8181
Kichijoji Branch Office
81 (3) 3657-1141
Koiwa Branch Office
81 (42) 328-6011
Kokubunji Branch Office
81 (42) 725-2111
Machida Branch Office
81 (3) 3769-6651
Mita Branch Office
81 (3) 3228-7755
Nakano Branch Office
81 (3) 3994-7711
Nerima Branch Office
81 (3) 3392-6011
Ogikubo Branch Office
81 (3) 3774-1181
Omori Branch Office
81 (3) 3482-2011
Seijo Branch Office
81 (3) 3882-8411
Senju Branch Office
81 (3) 3400-7111
Shibuya Branch Office
81 (3) 3572-0111
Shinbashi Branch Office
81 (3) 3205-1001
Shinjuku Branch Office
81 (3) 3342-1281
Shinjuku-eki Nishiguchi Branch Office
81 (3) 3348-8211
Shinjuku Nomura Building Branch Office
81 (42) 524-1111
Tachikawa Branch Office
81 (3) 3708-1811
Tamagawa Branch Office
81 (3) 3211-2411
Tokyo Branch Office
81 (3) 3583-2301
Toranomon Branch Office
81 (3) 3831-9211
Ueno Branch Office
1-36-9, Fuda, Chofu-shi, Tokyo 182-0024
1-8-1, Fuchu-cho, Fuchu-shi, Tokyo 183-8691
1-5-1, Nishi-Gotanda, Shinagawa-ku, Tokyo 141-0031
11-6, Asahi-cho, Hachioji-shi, Tokyo 192-0083
1-27-10, Minami-Ikebukuro, Toshima-ku, Tokyo 171-0022
1-11-1, Nishi-Ikebukuro, Toshima-ku, Tokyo 171-0021
2-10-9, Jiyugaoka, Meguro-ku, Tokyo 152-0035
5-15-8, Kamata, Ota-ku, Tokyo 144-0052
2-2-16, Kichijoji-honcho, Musashino-shi, Tokyo 180-0004
7-22-6, Minami-Koiwa, Edogawa-ku, Tokyo 133-0056
2-12-2, Hon-cho, Kokubunji-shi, Tokyo 185-0012
6-3-9, Haramachida, Machida-shi, Tokyo 194-0013
5-20-14, Shiba, Minato-ku, Tokyo 108-0014
5-65-3, Nakano, Nakano-ku, Tokyo 164-0001
5-17-10, Toyotama-kita, Nerima-ku, Tokyo 176-0012
1-8-8, Kamiogi, Suginami-ku, Tokyo 167-0043
2-5-10, Sanno, Ota-ku, Tokyo 143-0023
5-8-1, Seijo, Setagaya-ku, Tokyo 157-0066
2-18, Senjukotobuki-cho, Adachi-ku, Tokyo 120-0033
1-14-16, Shibuya, Shibuya-ku, Tokyo 150-0002
1-9-6, Shinbashi, Minato-ku, Tokyo 105-0004
5-17-9, Shinjuku, Shinjuku-ku, Tokyo 163-8691
1-6-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1590
1-26-2, Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0502
2-5-1, Akebono-cho, Tachikawa-shi, Tokyo 190-0012
3-7-18, Tamagawa, Setagaya-ku, Tokyo 158-0094
1-8-2, Marunouchi, Chiyoda-ku, Tokyo 100-0005
2-1-1, Toranomon, Minato-ku, Tokyo 105-0001
2-1-8, Ueno, Taito-ku, Tokyo 110-8501
Annual Report 2005 R 59
Office Name
Telephone
Address
Chubu/Hokuriku
Kinki
Chugoku/Shikoku
Kyushu/Okinawa
Fukui Branch Office
Gifu Branch Office
Hamamatsu Branch Office
Kanayama Branch Office
Kanazawa Branch Office
Matsumoto Branch Office
Nagano Branch Office
Nagoya Branch Office
Nagoya-ekimae Branch Office
Niigata Branch Office
Numazu Branch Office
Okazaki Branch Office
Shizuoka Branch Office
Toyama Branch Office
Toyohashi Branch Office
Toyota Branch Office
Tsu Branch Office
Yokkaichi Branch Office
Akashi Branch Office
Higashiosaka Branch Office
Himeji Branch Office
Hirakata Branch Office
Kishiwada Branch Office
Kobe Branch Office
Kyoto Branch Office
Nanba Branch Office
Nara Branch Office
Nishinomiya Branch Office
Osaka Branch Office
Otsu Branch Office
Sakai Branch Office
Senri Branch Office
Takatsuki Branch Office
Tennoji-eki Branch Office
Toyonaka Branch Office
Tsukaguchi Branch Office
Uehonmachi Branch Office
Umeda Branch Office
Wakayama Branch Office
Fukuyama Branch Office
Hiroshima Branch Office
Kochi Branch Office
Kurashiki Branch Office
Matsue Branch Office
Matsuyama Branch Office
Okayama Branch Office
Shimonoseki Branch Office
Takamatsu Branch Office
Tokushima Branch Office
Tokuyama Branch Office
Yonago Branch Office
Fukuoka Branch Office
Kagoshima Branch Office
Kitakyushu Branch Office
Kumamoto Branch Office
Kurume Branch Office
Miyazaki Branch Office
Nagasaki Branch Office
Naha Branch Office
Oita Branch Office
Saga Branch Office
Sasebo Branch Office
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
81 (956) 37-0531
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, 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
1-6, Otemachi, Aoi-ku, Shizuoka-shi, Shizuoka 420-0853
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
7-20, Shimasecho, Sasebo-shi, Nagasaki 857-0806
Consolidated Five-Year Summary (U.S. GAAP)
Nomura Holdings, Inc. R 60
Notes: Please note that these consolidated financial state-
ments are prepared solely for convenience and do
not include the notes herein. Readers are strongly
recommended to refer to the notes contained in
the Form 20-F.
Millions of yen
Millions of
U.S. dollars
2001
2002
2003
2004
2005
2005
Years ended March 31
Operating Results:
Revenue:
¥
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥
Fees from investment banking . . . . . . . . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Loss) gain on private equity investments . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities product sales . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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
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 . . . .
Private equity entities cost of goods sold . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-interest expenses . . . . . . . . . . . . . . . . . . . . . . .
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
232,472
500,541
(55,860)
3,504
294,931
177,053
116,324
—
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
(14,391)
368,656
(41,288)
—
—
—
—
6,229
13,360
807,651
241,377
566,274
244,167
20,844
77,389
57,152
24,361
—
—
4,968
89,984
518,865
210,216 ¥ 221,963 $ 2,070
861
732
1,881
72
3,744
143
—
—
—
—
700
301
10,504
3,050
7,454
92,322
78,452
201,686
7,744
401,379
15,314
—
—
—
—
75,061
32,316
1,126,237
327,047
799,190
86,994
66,193
229,042
13,138
343,260
55,888
—
—
—
—
17,640
23,565
1,045,936
242,833
803,103
259,336
19,169
80,031
54,221
23,100
—
—
11,852
72,718
520,427
274,988
23,910
81,408
53,534
28,214
—
—
44,681
87,620
594,355
2,565
223
759
499
264
—
—
417
817
5,544
Income before income taxes and cumulative
effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense:
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before cumulative effect of accounting change . . .
Cumulative effect of accounting change . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥
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 . . . . . . . . . . ¥
156,172
172,972
47,409
282,676
204,835
1,910
53,693
45,069
98,762
57,410
—
57,410
¥
61,898
(56,972)
4,926
168,046
—
168,046
¥
25,519
11,776
37,295
10,114
109,799
119,913 ¥
108,434
1,913
110,347
172,329
—
974
52
1,026
884
—
172,329 ¥ 94,732 $ 884
104,393
5,710
110,103
94,732
—
Millions of yen
Millions of
U.S. dollars
366,237 ¥ (1,303,384) ¥
(271,403)
(101,396)
503,676 ¥
(52,182)
1,195,507
356,635 ¥
31,706 ¥ (78,375) ¥ (278,929) $ (2,602)
(304)
45,471
3,591
198,017
637,372 ¥ 724,637 $ 6,758
134,053
(22,205)
491,237 ¥
(32,564)
385,061
Balance Sheet Data (period end):
Millions of yen
Millions of
U.S. dollars
828,649 ¥
775,734 ¥
955,509 ¥
Cash and cash deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥
Loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateralized agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity investments . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities short-term borrowings . . . . . . . . . .
Payables and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateralized financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities long-term borrowings . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . .
1,046,125
5,995,998
6,394,221
2,881,031
17,146,024
839,564
—
1,284,282
7,556,925
2,857,316
609,557
1,692,738
869,214
15,709,596
1,436,428
Total liabilities and shareholders’ equity . . . . . . . . ¥17,146,024
1,046,014
6,680,001
7,841,533
1,414,991
17,758,273
629,279
—
1,251,592
9,087,597
2,693,746
518,156
1,972,974
—
16,153,344
1,604,929
¥17,758,273
1,137,265
8,603,170
9,286,507
1,186,995
21,169,446
343,437
400
821,659
11,791,833
3,888,720
411,699
2,268,170
1,200
19,527,118
1,642,328
¥21,169,446
930,637 ¥ 1,186,756 $ 11,069
11,607
1,244,528
134,201
14,389,045
145,500
15,600,521
19,287
2,068,003
321,664
34,488,853
4,822
517,065
1,082
116,054
9,723
1,042,483
202,072
21,666,185
49,731
5,332,173
6,560
703,289
26,101
2,798,560
4,147
444,615
304,238
32,620,424
17,426
1,868,429
¥29,752,966 ¥34,488,853 $321,664
1,013,636
12,881,752
13,838,396
1,088,545
29,752,966
429,500
7,624
1,384,096
17,367,758
5,976,966
415,865
2,377,365
8,104
27,967,278
1,785,688
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Quarterly Financial Data
Annual Report 2005 R 61
Millions of yen
2004
2005
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
(2003.4.1~ (2003.7.1~ (2003.10.1~ (2004.1.1~ (2004.4.1~ (2004.7.1~ (2004.10.1~ (2005.1.1~
2005.3.31)
2003.6.30)
2004.12.31)
2003.12.31)
2004.6.30)
2004.9.30)
2004.3.31)
2003.9.30)
Revenue:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 33,752 ¥ 55,967
Fees from investment banking . . . . . . . . . . . . .
19,860
Asset management and portfolio
14,498
service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . .
(Loss) gain on private equity investments . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . .
(Loss) gain on investments in
equity securities . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities product sales . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,735
80,432
(669)
101,646
16,168
2,682
5,348
17,022
67,097
7,267
89,944
15,601
1,267
5,471
¥ 57,590
24,408
¥ 62,907
28,228
¥ 69,533
15,434
¥ 45,585
32,339
¥ 46,275 ¥ 60,570
26,137
18,412
16,792
33,800
(2,105)
66,574
2,788
2,678
3,167
18,644
47,713
8,645
85,096
21,331
11,012
9,580
18,185
53,567
498
81,891
10,271
17,368
8,548
19,845
23,073
(2,097)
101,102
(11,624)
15,858
4,747
19,287
54,709
(2,165)
122,035
7,752
20,250
7,206
21,135
70,337
11,508
96,351
8,915
21,585
11,815
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . .
267,592
67,505
279,496
64,809
205,692
55,461
293,156
55,058
275,295
61,367
228,828
71,987
293,761
99,873
328,353
93,820
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥200,087
¥214,687
¥150,231
¥238,098
¥213,928
¥156,841
¥193,888 ¥234,533
Non-interest expenses:
Compensation and benefits . . . . . . . . . . . . . . . ¥ 65,903
4,904
Commissions and floor brokerage . . . . . . . . .
Information processing and
communications . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy and related depreciation . . . . . . . .
Business development expenses . . . . . . . . . . .
Private equity entities cost of goods sold . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18,890
13,319
4,983
2,064
18,724
¥ 67,686
4,625
¥ 61,823
3,482
¥ 63,924
6,158
¥ 65,943
6,409
¥ 64,206
6,502
¥ 67,441 ¥ 77,398
6,931
4,068
19,520
13,506
5,428
1,123
14,848
19,155
12,929
5,495
1,938
15,478
22,466
14,467
7,194
6,728
23,667
19,281
13,274
5,429
11,171
19,955
20,136
12,986
7,767
9,921
19,116
20,404
13,152
6,824
11,501
21,306
21,587
14,122
8,194
12,088
27,243
Total non-interest expenses . . . . . . . . . . . .
128,787
126,736
120,300
144,604
141,462
140,634
144,696
167,563
Income before income taxes . . . . . . . . . . . . . . . .
71,300
87,951
29,931
93,494
72,466
16,207
49,192
66,970
Income tax expense (benefit):
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total tax expense . . . . . . . . . . . . . . . . . . . . . .
27,093
5,159
32,252
38,418
1,895
40,313
15,265
(1,065)
14,200
27,658
(4,076)
23,582
26,001
5,633
31,634
22,291
(9,300)
12,991
10,939
13,112
24,051
45,162
(3,735)
41,427
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 39,048
¥ 47,638
¥ 15,731
¥ 69,912
¥ 40,832
¥ 3,216
¥ 25,141 ¥ 25,543
Per share of common stock:
Basic—
Yen
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 20.14
¥ 24.58
¥
8.10
¥ 36.01
¥ 21.03
¥ 1.66
¥ 12.95 ¥ 13.16
Diluted—
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 20.14
¥ 24.58
¥
8.10
¥ 36.01
¥ 21.03
¥ 1.66
¥ 12.94 ¥ 13.15
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Nomura Holdings, Inc. R 62
Consolidated Balance Sheets
As of March 31, 2004 and 2005
ASSETS
Cash and cash deposits:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits with stock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 637,372
248,737
44,528
¥ 724,637
419,606
42,513
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
930,637
1,186,756
Millions of yen
2004
2005
Millions of
U.S. dollars
2005
$ 6,758
3,914
397
11,069
Loans and receivables:
Loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables from other than customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
543,894
10,744
464,776
(5,778)
516,295
12,037
718,997
(2,801)
4,815
112
6,706
(26)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,013,636
1,244,528
11,607
Collateralized agreements:
Securities purchased under agreements to resell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,701,646
7,180,106
7,201,791
7,187,254
67,168
67,033
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,881,752
14,389,045
134,201
Trading assets and private equity investments (including securities pledged as collateral
of ¥5,229,300 million in 2004 and ¥7,743,424 million ($72,220 million) in 2005):
Securities inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,066,963
479,659
291,774
14,757,597
515,946
326,978
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,838,396
15,600,521
137,639
4,812
3,049
145,500
Other assets:
Office buildings, land, equipment and facilities
(net of accumulated depreciation and amortization of ¥181,655 million in 2004 and
¥196,827 million ($1,836 million) in 2005) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
178,546
261,358
2,438
Private equity entities office buildings, land, equipment and facilities (net of accumulated
depreciation and amortization of ¥794 million in 2004 and ¥3,036 million ($28 million)
in 2005) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-trading debt securities (including securities pledged as collateral of ¥3,340 million in
2004 and ¥10,208 million ($95 million) in 2005) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in and advances to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22,154
444,726
64,764
100,993
206,236
169,459
207,668
105,901
133,817
277,330
172,067
228,975
114,010
468,544
4,148
942
2,586
1,605
2,136
1,063
4,369
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,088,545
2,068,003
19,287
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥29,752,966
¥34,488,853
$321,664
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Annual Report 2005 R 63
Millions of yen
2004
2005
Millions of
U.S. dollars
2005
¥ 429,500
7,624
¥ 517,065
116,054
$ 4,822
1,082
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables and deposits:
Payables to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables to other than customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time and other deposits received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
266,646
861,747
255,703
248,089
464,178
330,216
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,384,096
1,042,483
Collateralized financing:
Securities sold under agreements to repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,622,727
5,157,814
2,587,217
12,603,211
5,643,782
3,419,192
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,367,758
21,666,185
Trading liabilities:
Securities sold but not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,559,598
417,368
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,976,966
Other liabilities:
Accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
93,538
86,439
235,888
415,865
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,377,365
8,104
4,895,054
437,119
5,332,173
31,937
99,565
571,787
703,289
2,798,560
444,615
2,314
4,329
3,080
9,723
117,546
52,637
31,889
202,072
45,654
4,077
49,731
298
929
5,333
6,560
26,101
4,147
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27,967,278
32,620,424
304,238
Shareholders’ equity:
Common stock
Authorized—6,000,000,000 shares
Issued—1,965,919,860 shares at March 31, 2004 and 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182,800
154,063
182,800
155,947
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,550,231
1,606,136
Accumulated other comprehensive (loss) income:
Minimum pension liability adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(34,221)
(34,380)
(68,601)
(24,645)
(18,083)
(42,728)
1,705
1,454
14,980
(230)
(168)
(398)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,818,493
1,902,155
17,741
Less—Common stock held in treasury, at cost 24,263,831 shares and
24,657,971 shares at March 31, 2004 and 2005, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(32,805)
1,785,688
(33,726)
1,868,429
(315)
17,426
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥29,752,966
¥34,488,853
$321,664
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Nomura Holdings, Inc. R 64
Consolidated Income Statements
Years ended March 31
Millions of yen
(%)
2004
2005
YoY
increase (decrease)
Millions of
U.S. dollars
2005
Revenue:
Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees from investment banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on private equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities product sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 210,216
86,994
66,193
229,042
13,138
343,260
55,888
17,640
23,565
1,045,936
242,833
¥ 221,963
92,322
78,452
201,686
7,744
401,379
15,314
75,061
32,316
1,126,237
327,047
Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
803,103
799,190
Non-interest expenses:
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions and floor brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information processing and communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy and related depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity entities cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
259,336
19,169
80,031
54,221
23,100
11,852
72,718
520,427
274,988
23,910
81,408
53,534
28,214
44,681
87,620
594,355
5.6
6.1
18.5
(11.9)
(41.1)
16.9
(72.6)
325.5
37.1
7.7
34.7
(0.5)
6.0
24.7
1.7
(1.3)
22.1
277.0
20.5
14.2
$ 2,070
861
732
1,881
72
3,744
143
700
301
10,504
3,050
7,454
2,565
223
759
499
264
417
817
5,544
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
282,676
204,835
(27.5)
1,910
Income tax expense:
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108,434
1,913
110,347
104,393
5,710
110,103
(3.7)
198.5
(0.2)
974
52
1,026
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 172,329
¥ 94,732
(45.0)
$ 884
Per share of common stock:
Basic—
Yen
(%)
U.S. dollars
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥
88.82
¥ 48.80
(45.1)
$ 0.46
Diluted—
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥
88.82
¥ 48.77
(45.1)
$ 0.45
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Changes in Additional Paid-in Capital and Retained Earnings
Years ended March 31
Annual Report 2005 R 65
Additional paid-in capital
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuance of common stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 151,328
1,807
928
¥ 154,063
14
1,870
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 154,063
¥ 155,947
Millions of yen
2004
2005
Retained earnings
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,407,028
172,329
(29,126)
¥1,550,231
94,732
(38,827)
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥1,550,231
¥1,606,136
Consolidated Statements of Comprehensive Income
Years ended March 31
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥172,329
¥ 94,732
Other comprehensive (loss) income:
Change in cumulative translation adjustments, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum pension liability adjustment during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive (loss) income, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12,051)
7,337
(4,714)
16,297
9,576
25,873
Millions of yen
2004
2005
Millions of
U.S. dollars
2005
$ 1,437
0
17
$ 1,454
$14,458
884
(362)
$14,980
Millions of
U.S. dollars
2005
$ 884
152
89
241
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥167,615
¥120,605
$1,125
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Nomura Holdings, Inc. R 66
Consolidated Statements of Cash Flows
Years ended March 31
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash used in operating activities:
¥ 172,329
¥ 94,732
$ 884
Millions of yen
2004
2005
Millions of
U.S. dollars
2005
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) on investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in operating assets and liabilities:
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits with stock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities purchased under agreements to resell, net of securities sold
under agreements to repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed, net of securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans and receivables, net of allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables and deposits received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33,706
(55,888)
1,913
174,331
(7,485)
(4,808,112)
2,152,243
1,297,514
(1,576,454)
1,747,519
135,821
592,779
80,273
(18,864)
38,163
(15,314)
5,710
(157,971)
3,036
(1,552,822)
(738,575)
1,402,270
483,804
831,974
(158,640)
(478,796)
(69,418)
32,918
Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(78,375)
(278,929)
Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . .
Proceeds from sales of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . .
Payments for purchases of investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease (increase) in non-trading debt securities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(39,303)
1,341
(61)
24,309
61,705
(2,520)
45,471
Cash flows from financing activities:
Increase in long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in short-term borrowings, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
712,675
(551,897)
76,982
8,027
(4,084)
(43,686)
Net cash provided by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
198,017
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . .
(18,978)
Net increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
146,135
491,237
(59,348)
2,645
(79)
12,985
(71,604)
82,837
(32,564)
844,659
(495,455)
70,181
143
(475)
(33,992)
385,061
13,697
87,265
637,372
356
(143)
53
(1,473)
28
(14,483)
(6,888)
13,078
4,512
7,760
(1,480)
(4,466)
(647)
307
(2,602)
(554)
25
(1)
121
(668)
773
(304)
7,878
(4,622)
655
1
(4)
(317)
3,591
128
813
5,945
Cash and cash equivalents at end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 637,372
¥ 724,637
$ 6,758
Note: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.
Corporate Data
CORPORATE DATA
Date of Incorporation
December 25, 1925
Head Office
1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8645, Japan
Tel: 81 (3) 5255-1000
Fax: 81 (3) 5255-1064
SHARE DATA
Annual Report 2005 R 67
Capital
¥182,799,788,854 (As of March 31, 2005)
Group Employees
14,344 (As of March 31, 2005)
Fiscal year end
March 31
Number of Common Stock Issued
1,965,919,860 shares (As of March 31, 2005)
Number of Shareholders
225,334 (Unit shareholders: 196,580) (As of March 31, 2005)
Component Ratio of Shareholders
(%)
100
80
60
40
20
0
10.38
9.53
8.67
8.47
8.88
18.46
0.66
19.41
0.63
21.55
0.70
21.58
1.10
24.61
0.83
30.11
28.27
28.97
40.44
37.90
40.39
42.15
40.10
28.40
27.77
2001/3 2002/3 2003/3 2004/3 2005/3
Financial Institutions
Foreign Legal Entities
Securities Firms
Individuals and Others
Other Legal Entities
E-mail Alerts
Our e-mail alert service informs subscribers when a news release is
issued or new content is uploaded to our website.
Listings
The common shares of Nomura Holdings, Inc. are listed on the Tokyo,
Osaka, Nagoya and Singapore stock exchanges. The shares are also
listed on the New York Stock Exchange in the form of American
Depositary Receipts and on the Amsterdam Stock Exchange (Euronext)
both through the Amsterdam Securities Account System and in the form
of Continental Depositary Receipts.
(As of June 30, 2005)
Transfer Agent and Registrar
UFJ Trust Bank Limited
Corporate Agency Department 81 (3) 5683-5111
0120-232-711 (Toll free in Japan)
Depositary for American Depositary Receipts (ADRs)
The Bank of New York
ADR Division 1 (212) 815-8161
U.S. Toll Free: (888) 269-2377 (888-BNY-ADRS)
www.adrbny.com
Ratio: 1 ADR=1 ordinary share
CREDIT RATINGS
Nomura Holdings, Inc.
Nomura Securities Co., Ltd.
Long-term
Short-term
Long-term
Short-term
S&P
Moody’s
R&I
JCR
BBB+
Baa1
A+
AA
*As of July 7, 2005
A-2
—
a-1
—
A-
A3
A+
AA
A-2
P-2
a-1
—
FOR MORE INFORMATION
Investor Relations Department
Nomura Group Headquarters
Nomura Securities Co., Ltd.
1-9-1, Nihonbashi, Chuo-ku,
Tokyo, 103-8011 Japan
Tel: 81 (3) 3211-1811
www.nomuraholdings.com/investor/
Nomura Holdings Website
www.nomura.com
The Nomura Holdings website has been redesigned to become the first
JIS-compliant website in Japan’s securities industry. The site can now be
used more easily by seniors and individuals with disabilities. In addition,
further improvements have been made with regard to ease of use
and accessibility.
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