Annual
Report
2009
for the Year Ended March 31, 2009
Nomura Holdings,Inc.
Count on Nomura
Create Change
Nominal GDP by Country (2008)
Netherlands 1.4%
South Korea 1.6%
Australia 1.7%
Mexico 1.8%
India 2.0%
Canada 2.5%
Brazil 2.6%
Spain 2.6%
Russia 2.8%
Others
23.4%
US
23.4%
Japan
8.1%
China
7.2%
Germany 6.0%
France 4.7%
UK 4.4%
Italy 3.8%
Source: Nomura, based on IMF, World Economic Outlook Database, April 2009
As Asia’s global investment bank, we aim to act as an agent of change. By driving change in times of turbulence we
believe we can contribute to market growth, thereby helping households, industry, and the global economy grow. We
are also prepared to change from within, constantly transforming Nomura to deliver the highest level of service to our
clients. We challenge existing thinking and are intensely client-focused and business-driven. We believe that creating
change will in turn create growth opportunities for Nomura.
Cross-border M&A by Region
(# of deals)
160
140
120
100
80
60
40
20
0
Other
ME/
Africa
Latin
America
Asia
Pacific
Europe
North
America
2004
2005
2006
2007
2008
Note: Based on publicly disclosed data; includes deals not completed.
Source: Thomson Reuters
Annual Report 2009
1
World-Class
Dow Jones Industrial Average
Shanghai Stock Exchange Composite Index
(US$)
10,000
9,000
8,000
7,000
6,000
Jan.
Feb.
Mar.
Apr.
May
Jun.
2009
(points)
3,100
2,900
2,700
2,500
2,300
2,100
1,900
1,700
1,500
Jan.
Feb.
Mar.
Apr.
May
Jun.
2009
Daily trading
value
US$187 billion
Daily trading
value
US$31 billion
Source: Index data from Bloomberg. Daily trading value is the average for April-June 2009 based on data from World Federation of Exchanges, compiled by Nomura.
2 Nomura Holdings, Inc.
We are committed to offering world-class products and services to our clients globally while setting new standards in
everything we do. We aim to earn the confidence of our clients by proposing value-enhancing solutions to remain
their most trusted partner.
Nikkei Stock Average
FTSE 100
(yen)
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
Jan.
Feb.
Mar.
Apr.
May
Jun.
2009
(points)
4,800
4,600
4,400
4,200
4,000
3,800
3,600
3,400
Jan.
Feb.
Mar.
Apr.
May
Jun.
2009
Daily trading
value
US$19 billion
Daily trading
value
US$17 billion
Annual Report 2009
3
Speed
Foreign Currency Reserves
(millions of US$)
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
China
Japan
US
UK
2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Nomura, based on IMF data (figure for China is Bank of Japan estimate).
4 Nomura Holdings, Inc.
Speed is essential for sound and flexible decision-making. We focus on moving with speed and agility to mobilize the full
resources of the company and enhance our client service offering. By doing so, times of market upheaval can lead to
opportunities. We acted quickly in the past year to deal with legacy assets and pave the way for future growth. We will
continue to move with speed to capitalize on new opportunities as they arise and deliver superior value to our clients.
Bank Market Capitalization
December 2000
June 2009
Name
Country
Market Capitalization
(billions of US$)
Name
Country
Market Capitalization
(billions of US$)
Citigroup
HSBC
Wells Fargo
JPMorgan Chase
Bank of America
US
UK
US
US
US
UBS
RBS
Lloyds
Switzerland
UK
UK
Credit Suisse
Switzerland
Deutsche Bank
Germany
256.45
136.36
95.48
87.63
74.03
69.77
63.29
59.05
56.89
51.71
ICBC
China
China Construction Bank China
Bank of China
China
HSBC
JPMorgan Chase
Wells Fargo
Bank of America
UK
US
US
US
Banco Santander
Spain
MUFG
Japan
BNP Paribas
France
257.00
182.19
153.08
143.24
133.80
115.38
110.31
98.08
72.32
69.33
Source: Nomura, based on Bloomberg data.
Note: Gray shading represents banks strong in Asia. White shading represents Asian-based banks.
Annual Report 2009
5
“As a leading financial services group, Nomura partners with clients
around the world building relationships and delivering tailored solutions
for success in today’s markets. With some 26,000 people in over 30 coun-
tries, our operations include Retail, Global Markets, Investment Banking,
Merchant Banking, and Asset Management.”
Count on Nomura for >>
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 expectations, estimates, forecasts, and projections based on information 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.
6 Nomura Holdings, Inc.
Contents
Message from the CEO
Interview with the COO
Message from the CFO
Major International Business Lines
Consulting
Retail
Innovation
Global Markets
Solutions
Investment Banking
Value
Merchant Banking
Expertise
Asset Management
Global Research
Corporate Governance and Internal Control System
Risk Management
Board of Directors / Executive and Senior Managing Directors
Corporate Social Responsibility
Financial Highlights
Eight-Year Financial Summary (US GAAP)
Major Subsidiaries and Affiliates
Nomura Securities Domestic Network
Corporate and Other Data
8
12
18
20
22
26
32
36
40
44
46
49
50
52
54
56
58
59
60
Annual Report 2009
7
Message from the CEO
Last year we dealt with legacy assets
and positioned the firm for future
growth. This year, our focus is on
achieving profitability by leveraging
our expanded business platform to
deliver tailored solutions to our clients
across all geographies.
FY 2008 in Review
Business Environment
In my first year as President and CEO a series of events
sent the global financial markets into unprecedented turmoil.
What started out as a US subprime loan crisis in the summer
of 2007 became a global financial crisis with effects spreading
to the broader economy. This created an extraordinarily chal-
lenging business environment for Nomura.
Before the crisis, the global financial markets were
involved in what could be described as a massive carry trade.
With the world awash in liquidity, the credit-fuelled economy
imploded, creating a global credit crunch that seized up the
financial system. It will take time for the financial markets in
the US and Europe to recover fully. On the other hand, Asia
has emerged from the crisis relatively unscathed and, led by
China, I see the region taking on an increasingly prominent
global role.
Financial Results
Net revenue for the year was ¥312.6 billion. We booked a
pretax loss of ¥779 billion and a net loss of ¥708.2 billion. While
this represents our worst financial result ever, it also reflects our
determination to deal aggressively with negative positions in
legacy assets and align the company for future growth.
Kenichi Watanabe
President & Chief Executive Officer
8 Nomura Holdings, Inc.
In dealing with these troubled assets, we reassessed the
We executed these initiatives with extraordinary speed.
parts of our business that were not fully focused on clients.
Looking back on the global financial crisis, we have reaffirmed
We were quick to review, reduce, and exit non-client busi-
our resolve to reduce highly leveraged, non-client related busi-
nesses and illiquid positions such as commercial mortgages.
nesses and focus on delivering Nomura’s services to our
As a result, we have emerged from the financial crisis with
clients. We believe that our ability to service individual
one of the cleanest balance sheets among global players.
investors and the overall economy will become our competi-
To pave the way for future growth, we acquired and
tive edge, and to achieve our goals we must build a truly
integrated the operations of Lehman Brothers in Asia-
client-focused business.
Pacific, Europe, and the Middle East. The one-off expenses
from these acquisitions are similar to capital investments
for a manufacturing company. Our investments allowed us
Looking Ahead
to transform Nomura quickly, significantly enhancing our
Strategic Initiatives for FY2009
human capital, client base and business infrastructure
To deliver solid profits throughout fiscal year 2009, we
while also expanding the reach of our worldwide franchise.
will leverage our significantly enhanced business platform to
At the same time, we reinforced our capital structure by
deliver solutions to our global client base. At the same time,
raising ¥1.3 trillion in combined debt and equity capital to
we will also take decisive steps to cut costs, rightsize, and
ensure a robust financial underpinning for future growth
streamline the firm in line with market conditions.
and market changes.
■ Main Causes of Losses for FY 2008 (approx. figures)
The important thing is that we stay client-focused. Thanks
to our enhanced business platform, many new clients from
around the world have approached Nomura. We need to listen
Expenses Aimed at Future Growth
closely to the needs of these clients and become their trusted
Wholesale platform
expansion
One-off expenses related to the
Lehman Brothers acquisitions
partner. This will ultimately lead to further growth for
¥120 billion
Nomura.
Dealing with Legacy Assets
Carry trades with less
client order flow
Monoline related losses/
Iceland related losses
Real estate loans,
other illiquid assets
Private equity write-downs/
Real estate related losses
Long-term asset
losses/expenses
Fortress impairment/
JAFCO impairment
¥150 billion
¥140 billion
¥125 billion
Retail and Asset Management Business
In spite of the difficult market environment, our Retail
and Asset Management operations remained profitable on a
pretax basis last year. The Retail division continued to grow,
with a record 600,000 new customer accounts opened during
the year.
Market turmoil led to a reappraisal of the Japanese and
Asian household savings market, particularly considering the
traditionally low level of risk assets held by Japanese retail
investors. Given our leading market share and proximity to
these retail investors who have some of the world’s largest
holdings, Nomura’s presence is set to continue growing. We
Annual Report 2009
9
are also increasing collaboration between Retail and Asset
Revenue Structure
Management as well as other divisions to understand our cus-
tomers’ needs better and deliver the true value of Nomura.
These efforts will expand the stable revenue platform these
businesses bring to the company.
Wholesale Business
The chart below illustrates our pyramid revenue structure.
We are building a business portfolio in which more volatile
businesses sit on top of a stable operating base. We will active-
ly expand our market share in the stable business areas to bol-
ster revenues while taking a calculated approach to the more
volatile businesses. In doing so, we aim to increase overall rev-
The sluggish financial and economic environment means
enue levels while also maximizing profitability.
we also need to be highly responsive to the changing needs of
our corporate and institutional clients. Our new platform
Shareholder Distributions
allows us to expand decisively from our historic Japan focus to
a market that includes all of Europe and Asia-Pacific, which is
over four times larger. Through our platform and increased
collaboration between Global Markets and Investment
Banking, we aim to become a top-tier global player.
In fiscal 2008, we focused on maintaining sufficient share-
holders’ equity to allow us to move with speed to capture new
business opportunities. Our dividend policy has been based on
paying a target dividend with a minimum payout of 3 percent
on a dividend-on-equity basis and an additional performance-
linked payout when we achieve a level of profit that brings
the total payout ratio to over 30 percent.
■Pyramid Revenue Structure and Business Division Targets
Merchant Banking (Target pretax income: ¥35 billion)
We use our own capital to revive investee companies over the long
term. Our ongoing stringent screening process for possible new invest-
ments and strong focus on boosting value of current investments allows
us to maximize returns over the medium to long term.
Investment Banking (Target pretax income: ¥70 billion)
As Asia’s global investment bank, we are diversifying revenues by
delivering multi-product solutions to meet the global business restructur-
ing and financing needs of our expanding worldwide client base.
Global Markets (Target pretax income: ¥200 billion)
We are investing in flow businesses and client businesses while
enhancing client solutions to become a top-class global liquidity provider.
We are leveraging our expanded platform and strong sales capabilities to
increase market share and become a global top-tier player.
Asset Management (Target pretax income: ¥30 billion)
We have adopted a multi-product, multi-channel strategy that is com-
bined with close collaboration with the Nomura Securities channel. We
are further enhancing our capabilities in Asia including Japan to become
Asia's leading world-class asset management firm.
Retail (Target pretax income: ¥165 billion)
We are expanding our client coverage by structuring marketing channels to
suit client needs, enhancing collaboration between face-to-face and other
channels as well as in-house and other products. We aim to increase client
assets and maintain the leading market share by delivering world-class services.
Merchant
Banking
olatile
V
Investment
Banking
Global Markets
Asset Management
Stable
Retail
10 Nomura Holdings, Inc.
Our target minimum dividend for fiscal 2008 was ¥34 per
share. This was divided into quarterly payments of ¥8.5 per
share and paid each quarter from the first quarter to the third
quarter. However, given the net loss booked for the full year
we decided to forgo payment of the fourth installment. As a
result, the annual dividend was ¥25.5 per share.
For fiscal year 2009, we will no longer determine payouts
on a dividend-on-equity basis. Instead, we have set a consoli-
dated dividend payout ratio of 30 percent as a key indicator
and will endeavor to deliver stable dividends to our sharehold-
on our position as an independent investment bank. We
ers. Dividend payments will also be revised from quarterly to
believe this unique position will allow us to play a leading role
semi-annual.
in the capital markets as Asia’s global investment bank.
We will continue to invest retained earnings into business
areas with strong prospects for high growth and profitability,
August 2009
as well as into further development and expansion of our infra-
structure, in order to maximize value for our shareholders.
Kenichi Watanabe
President & Chief Executive Officer
Maximizing Shareholder Value
Given the drastic changes over the past year, we are
working to maximize and protect shareholder value by ensur-
ing we are prepared to deal with any risks that may occur in
the future. Our medium-term target is to achieve ¥500 billion
in pretax income and a return on equity of between 10 per-
cent and 15 percent. We remain focused on achieving this
goal. As it is said that the best defense is a good offense, we
will continue to move with speed and create change at
Nomura to become a world-class investment bank.
Looking ahead, the financial services industry will contin-
ue to reorganize itself over the next few years and the envi-
ronment will remain in a constant state of change. This pres-
ents Nomura with an unprecedented opportunity to capitalize
Annual Report 2009
11
Interview with the COO
With our enhanced business platform, we now have the capabilities to deliver
world-class services to our clients globally. Our strategy is firmly centered on
client-focused businesses. By further developing our unrivaled Japan retail
business and global wholesale franchise, we will increase Nomura’s corporate
value over the medium to long term.
Q1 Looking back, how would you rate Nomura’s performance in FY 2008?
If I were to compare our business to a house, we did three things: we cleaned the house, we
reinforced the house’s structure, and we welcomed new family members into a cleaner and stronger
organization.
We remain concerned about the near-term business environment. But, we’re now ready to move
to the next level. We’ve become leaner by putting the past behind us and created a platform to capi-
talize on new business opportunities.
If I were to compare our business to a
house, we did three things: we cleaned the
house, we reinforced the house’s structure,
and we welcomed new family members into
a cleaner and stronger organization.
Last year represented our worst results ever. But
despite the challenges, we made significant headway.
We successfully completed a major capital raising and
maintained a healthy financial structure. We stayed
focused, cleaning up legacy assets and positioning the
company for future growth.
It was a particularly significant year for us in terms
of business platform expansion and reinforcement. Over the past few years, we were aware that we
needed to address our global strategy. We lagged behind our competitors. Our clients were going
global but we had not.
In mergers and acquisitions, for instance, even if we wanted to help Japanese companies grow
internationally, our geographic scope and industry coverage were limited. In equities, we were
behind the curve in European and Asian products. In fixed income, we were not as competitive in
our ability to serve international clients. This led to an over-reliance on proprietary trading, which in
turn led to the substantial losses.
We addressed all of these issues over the past year by enhancing our global platform. In addi-
tion, with our acquisition of an IT and operations center in India, we now have a high-speed trading
engine and efficient business support platform.
12 Nomura Holdings, Inc.
Takumi Shibata
Deputy President & Chief Operating Officer
Q2 What were the key success factors in acquiring parts of Lehman Brothers’
operations and strengthening your wholesale business platform?
I’d say speed was the most decisive factor. Three Nomura executives including myself flew out
from Japan on September 20 to Hong Kong and London. We negotiated from early in the morning to
late at night. We agreed on most of the terms by September 23. From there, it only took 70 days
from signing to the establishment of a new organizational structure.
In Global Markets, the systems have been integrated and our new platform is operational. We
are seeing significant results from the acquisitions. Our secondary market shares in Europe and Asia
are increasing and we have won a number of high-profile investment banking mandates including
being named financial advisor to San Miguel Brewery and Tsingtao Brewery on M&A transactions.
We are steadily gaining traction
in our drive to deliver world-class solutions
to all our clients.
We are steadily gaining traction in our drive to deliver
world-class solutions to all our clients.
Now that our global platform is established, we
need to harness this momentum to drive future growth
for the whole company. In Europe and Asia we are
enhancing our service offering and increasing our presence to take Nomura to the next level. Even in
the Americas, which was not a part of the acquisitions, we are building out our operations.
In the institutional investor space, new client relationships and needs require us to continually
innovate to stay ahead. Traditional institutional investors such as pension funds and mutual funds
are taking on an increasingly prominent role in the wake of the global financial crisis. In the hedge
fund industry, the turbulence in the markets has weeded out poor performers and made room for
strong new players.
High-speed trading systems are increasingly important for investors that use sophisticated finan-
cial strategies. Passive managers, on the other hand, have a stronger need for best execution as
they introduce new management techniques to maximize value from their passive strategies. There
is also growing demand for global research. We’re looking to increase our market share by providing
Annual Report 2009
13
We are leveraging our newly established
global platform to address the changing
needs of our clients.
services that respond to these emerging trends.
Given the stagnant economic environment, we
expect to see an increase in demand for fundraising and
business restructuring by corporate and financial institu-
tion clients. With our extensive global network and dis-
tribution capabilities, deep origination expertise, financing backed by risk-taking ability, and insight-
ful solutions, Nomura has all the tools to provide solutions that truly add value for our clients.
Q3
What challenges did you face in launching a global wholesale business?
Some people have pointed to possible cultural differences between Lehman Brothers and
Nomura, but we are working as one team, one firm. Everyone is focused on the same goal. After the
signing of the acquisition in London, I spoke at a town hall meeting for our new colleagues and said
that we welcomed them to Nomura as leaders, as thinkers, and as our partners. And I asked them to
accept us as partners too. I received a standing ovation, and it was clear we saw each other as equal
partners with mutual respect.
Both companies share common traits of having a collegiate culture that is hard-working and
results-oriented, with very diverse workforces in Europe and Asia. I think these factors were key in
We are working together as one team, one
firm. Everyone is focused on the same goal.
ensuring that we could integrate the businesses
smoothly. Now a number of our regional line heads are
from the Lehman Brothers businesses. Our compensa-
tion system is going through a transition as we work to
tie compensation to medium and long-term incentives.
Number of Employees by Region
Europe/Middle East
Asia (Excluding Japan)
4,300
2,000
2,500
1,200
9/2008
3/2009
9/2008
3/2009
Notes: Figures are approximate. Includes middle/back-office employees. Asia (Excluding Japan) does not include subsidiary in India.
14 Nomura Holdings, Inc.
Q4
What is your strategy with regard to
illiquid assets and businesses that require
a long-term investment horizon?
Many of our writedowns and losses in FY
2008 were related to illiquid assets such as pri-
vate equity investments and real estate, as well as long-term investments including stakes in
Fortress Investment Group and JAFCO. We have decided to curb new investments in assets that are
illiquid or require a longer holding period. However, through proper risk controls and processes, we
will continue to seek out opportunities to generate revenue.
Q5
Given Retail’s role as an important contributor of stable earnings, what is the
outlook for this division?
At the end of March 2009, Retail client assets were ¥59.3 trillion, accounting for a significant
share of the ¥166 trillion in risk assets held by individual investors in Japan. We are fully committed
to enhancing our service offering by providing solutions that respond to the changing needs of this
client base.
To provide better service to our retail clients, we are improving the quality of our consulting
skills, enhancing our lineup of products and services, and increasing convenience by adopting
region-specific marketing strategies and taking a multi-channel approach to delivering services.
We will continue to enhance our face-to-face services but also focus on developing services in
other channels such as online and call centers to respond to the needs of investors currently building
Retail Growth Strategy
s
e
c
i
v
r
e
s
e
s
u
o
h
-
n
I
s
e
c
i
v
r
e
s
r
e
n
t
r
a
P
Face-to-Face model
HNW
(¥80 trillion market)
Affluent
Affluentuene
trillion market)
(¥250 trillion market)
(¥250 trillion mon mn
Non-Face-to-Face model
Asset builders
AsA
Asset builders
sset builders
(¥1,170 trillion
(¥1,170 trillion market)
(¥1,170 trillion market)
Non face-to-face services
Face-to-face services
Note: Market size/segmentation figures from Nomura Research Institute. Values shown are total financial assets held by each category.
Annual Report 2009
15
We will continue to enhance our face-to-
face services for high net worth clients but
also focus on developing services in other
channels such as online and call centers to
respond to the needs of investors currently
building their asset base.
their asset base.
Japan’s brokerage and asset management sectors
are now undergoing a realignment that is opening up
opportunities for Nomura. We believe healthy competi-
tion is all about raising the level of services we offer our
clients.
Q6
What initiatives are you undertaking to increase collaboration between the
Retail and Asset Management business divisions?
We’re stepping up our multi-product, multi-channel strategy in the Asset Management division
and increasing collaboration with Retail to ensure a stable earnings base and a controlled cost
structure.
Our main priority is to understand our clients and their needs in a timely manner and provide
products better matched to their individual requirements in order to further enhance our overall
capabilities. With a solid client base in both our Retail and Asset Management divisions, Nomura is
We aim to further improve our performance
and be recognized as a world-class asset
manager not only for Japanese and Asian
products, but also global equities and
bonds.
well placed to turn this approach into a powerful com-
petitive advantage. We are also leveraging our well-
established infrastructure and enhanced capabilities to
further improve performance in managing not only
Japanese and Asian products but also global equities
and bonds as we aim to be recognized as a world-class
asset manager.
Size of Assets Compared to GDP (2008)
European investment
managers
European
households*1*3
0.23
(744)
European
HNW*1
0.31
(1,060)
0.23
(775)
0.01
(39)
0.01
(40)
European
hedge funds
Middle East HNW*1
0.01
(2)(((((((((((((((2222222222)))))))))))))
Asian hedge
funds
0.02
(15)
Asian HNW*1
0.57
(570)
Asian investment
managers
0.19
(188)*2
3.32
（1,434）
European SWFs
Japanese households
Middle East hedge funds
African
HNW*1
0.46
(100)
0.02
(6)
0.42
(124)
Middle East
SWFs*1
0.11
(105)
Asian SWFs*1
(Unit: times)
(Figures in parentheses show total asset value in trillions of yen)
US hedge funds
0.03
(58)
0.76
(1,170)
North American
HNW*1
US investment managers
Japanese
investment
managers
0.19
(82)
1.69
(3,700)
0.40
(870)
US SWFs*1
0.001
(6.2)
US households
0.97
(620)
South American HNW*1
*1: 2007 data
*2: As of Sept. 2008
*3: Savings only
Source: Nomura, based on data from Cap Gemini, FRB, ICI, EFAMA, BoJ, Investment Trust Association, Japan.
Note: HNW = High Net Worth. SWF = Sovereign Wealth Fund
16 Nomura Holdings, Inc.
Q7 What direction will Nomura take with its client-focused, business-driven
approach while driving internal momentum?
The investment banking industry moved away from its clients over the past ten years. The indus-
try needs to get back to basics and provide services focused on clients.
Nomura will remain a client-focused company. We will channel our energies into our client busi-
nesses, as not to do so would be detrimental to our franchise. In investment banking, our true worth
as a company hinges on the value we can deliver to clients through innovative ideas that help them
grow their businesses. Nomura is also a business-driven company, which means we generate rev-
The way forward for Nomura is clear:
To increase our corporate value, we must
work with our clients, listen closely to their
needs, and offer timely solutions that
respond accurately to those needs.
enues by adding value for our clients. To follow through
on these commitments, we must first build momentum
within the company.
The way forward for Nomura is clear: To increase
our corporate value, we must work with our clients, lis-
ten closely to their needs, and offer timely solutions that
respond accurately to those needs.
Future Direction
Client-focused
Business-driven
Internal momentum
Annual Report 2009
17
Message from the CFO
Masafumi Nakada
Chief Financial Officer
In the midst of last year’s financial upheaval, we strengthened our capital structure
to establish Nomura as a world-class competitor. Our focus now is to maintain a
robust financial position to maximize profitability and enable future growth.
Robust Financial Position
Strong Capital Base
During the past year, we did more than just keep our
In addition to dealing with the asset side of our balance
head down to weather the financial storm. We saw the crisis
sheet, we reorganized our capital structure to position the
as an opportunity to position Nomura for future growth, so
company for future growth. We raised approximately ¥1 tril-
we enhanced our capabilities, financial position and capital
lion in subordinated debt and ¥280 billion in common stock.
structure.
These moves created a platform for global competition while
We started by disposing of legacy assets to clean up our
also improving our balance between Tier 1 and Tier 2 capital.
balance sheet. While we have always marked our assets to
Shareholders’ equity at the end of March was ¥1.5 tril-
market prices for transparency, the financial market turmoil
lion, while our Basel II capital ratio was 18.9 percent, and
made it difficult to see market prices for some assets. We
our Tier 1 ratio was 11.7 percent. Nomura has built a robust
made conservative reductions and writedowns on illiquid
capital structure to support operations and strategic growth
assets, and booked a significant loss in fiscal 2008. However,
as a global financial services group. As part of our drive to
the writedowns allowed us to create a leaner balance sheet,
globalize, we also started reporting our Basel II capital ratio
and we now have a relatively sound financial position com-
from March 2009.
pared to our peers.
To ensure we had enough funding throughout the mar-
18 Nomura Holdings, Inc.
■ Capital Ratio based on Basel II Framework
■ Assets and Long-term Funding
(As of March 31, 2009)
Tier 1
Tier 2
Tier 3
Total Capital
Risk-Weighted Assets
Tier 1 Ratio
Capital Ratio
(billions of yen)
1,405
613
298
2,257
11,936
11.7%
18.9%
35.6
Total assets
Long-term funding
(trillions of yen)
25.2
24.8
6.6
6.3
6.2
3/2007
3/2008
3/2009
ket turmoil, we focused heavily on cash and maintained a
Current cost-cutting initiatives include rightsizing the
cautious approach to liquidity management. As of the end of
businesses; streamlining corporate functions by offshoring
March 2009, we had ¥2.4 trillion of liquidity on hand.
certain information technology, finance, and administration
New Risk Management Structure
As we grow, disciplined risk management will remain a
functions to our Powai operations in India; and increasing
collaboration between business divisions to reduce overlap.
priority. Over the past year, we significantly revamped our
Future Outlook
risk management structure. Top management now plays a
Nomura’s medium-term target is to achieve ¥500 billion
more hands-on role in risk management, and the firm as a
in pretax income and a return on equity of 10 to 15 percent.
whole is more proactive in managing risks. We have estab-
To reach this target, we must increase collaboration between
lished a Group Integrated Risk Management Committee and
business divisions and focus intensely on client needs.
appointed a Chief Risk Officer. This new structure allows for
A robust financial position is also essential. By using our new
quicker information gathering and sharing across all regions
proactive risk management structure and gathering and ana-
and markets, while also helping us manage risks proactively
lyzing information in real time, we strive to maintain the
over the medium to long term. We will continue to focus on
optimal balance between assets and liabilities to make swift
limiting potential risks and maintaining a disciplined
forward-looking decisions.
approach to risk management.
Cost Cutting
In order to maximize profitability, we are restructuring our
cost base. We aim to cut 10 percent of our ¥1 trillion running
costs to create a cost structure that will enable us to be prof-
itable even in a tumultuous market environment. Revamping
our cost structure will increase our efficiency and productivity.
We need to reduce fixed costs and increase the proportion of
variable costs across our cost base and specifically in compen-
sation and benefits, which comprise about half our total costs.
The key to our success lies in how quickly and rigorously the
entire company can execute on these initiatives.
Annual Report 2009
19
Major International Business Lines
Sadeq Sayeed
Senior Managing Director and Chief Executive Officer, EMEA
Through the strong leadership and talented workforce of the
combined businesses we continue to gain sustainable
competitive advantage. Integration is complete and we are
focused on building strong client relationships and delivering
innovative products and services while managing risk.
Global Markets
>>>>page 26
Global Markets
Rachid Bouzouba
Head of Equities, EMEA
Our equities business continues to gain market share, bridging Asian and Western
markets with integrated, customer-focused services. A dedicated team, superior
content capability and a world-class execution platform are enabling us to take our
place among the top-ranked equity houses globally.
Georges Assi
Co-Head of Fixed Income,
EMEA
Kieran Higgins
Co-Head of Fixed Income,
EMEA
We are creating a top-tier fixed
income franchise with strength
across flow and solutions asset
classes and a firm focus on client
delivery. We have industry-leading
teams, supported by the best
technology and risk management.
We aim to be a Top 5 player in the
markets we choose to target.
Siggi Thorkelsson
Head of Equities,
Asia-Pacific
Jai Rajpal
Joint Head of
Fixed Income,
Non-Japan Asia
Thomas Siegmund
Joint Head of
Fixed Income,
Non-Japan Asia
Investment Banking
>>>>page 32
Investment Banking
Christian Meissner
Deputy Head of
Investment Banking
William Vereker
Co-Head of
Investment
Banking, EMEA
Glenn H. Schiffman
Head of Investment
Banking,
Non-Japan Asia
We continue to build our franchise steadily, with a growing number of deals from established and new client
relationships. Our pipeline is strong and we are exploiting the cross-regional opportunities presented by our
links with Asia.
*EMEA : Europe, Middle East and Africa
Count on Nomura in EMEA
Count on Nomura
20 Nomura Holdings, Inc.
Minoru Shinohara
Senior Managing Director and Regional CEO, Asia
By taking advantage of our enhanced capabilities,
we can strategically capitalize on market
opportunities, while staying focused on
strengthening the partnerships we have forged
with our clients.
Shigesuke Kashiwagi
Senior Managing Director and
President of Nomura Holding America Inc.
At Nomura Holding America Inc., we work closely with our
global counterparts to add value to our clients. We view the
recent market volatility as an opportunity to expand our product
and service capability in the US and globally.
>>>>page 26
Global Markets
>>>>page 26
With our focus on market-leading products, state of
the art execution & trading capabilities, excellence in
research and an unwavering commitment to our
clients, we are on our way towards achieving our
goal of becoming the equity house of choice.
Naoki Matsuba
Senior Managing Director and Head of Global Equities
In the US, we have hired teams of proven professionals that will enable us to add
value to our clients. My relocation to New York City represents a commitment by
Nomura to its franchise in the Americas.
Our aim in Asia fixed income is to be the best in
class provider of international product to our
regional clients and of local market expertise and
access to our international clients, while practicing
the highest standards in risk management.
>>>>page 32
In Asia investment banking we are focused on
serving our priority clients with a solutions-based
approach that puts our client in the center of
everything we do, thereby achieving the status of a
trusted advisor.
Anthony Abenante
Co-Chief Executive Officer,
Instinet Inc.
Fumiki Kondo
Co-Chief Executive Officer,
Instinet Inc.
As a global agency broker,
Instinet focuses solely on
helping our institutional clients
achieve best execution. In
2008, we saw our first ever
billion share day in the US,
firm-record market share levels
and a steady stream of
innovative new product rollouts
worldwide.
Asset Management
>>>>page 40
Robert Levine
Chief Executive Officer,
Nomura Corporate Research and Asset Management
NCRAM is a world-class asset manager focusing on high yield bonds,
leveraged loans and emerging markets debt. We manage money for
some of the largest and best known institutions in the world as well
as for Japanese retail clients.
in Asia-Pacific
Count on Nomura in the Americas
Annual Report 2009
21
Retail
Count on Nomura
“
Drawing on our strengths in a
difficult environment
Why have we been able to continue expanding in the
current difficult environment? The answer lies in our
unrivaled client platform and our long-standing consulta-
”
Last year’s global financial crisis put the brakes on the
shift from savings to investment in Japan. Risk assets held
tive approach that sets us apart from the competition.
Our clients have diversified their portfolios in line with
by retail investors in Japan including domestic equities,
the dramatic changes in the financial markets. They are
bonds and investment trusts declined by roughly 30 per-
now looking for more tailored products and services that
cent to ¥166 trillion in fiscal 2008. Despite this significant
offer higher levels of quality. They are also seeking even
decline, Nomura’s retail client assets remained relatively
more in-depth consulting services to help them make
strong at ¥59.3 trillion.
investment decisions.
171
Retail Branches
(March 31, 2009)
22 Nomura Holdings, Inc.
¥59.3 Trillion
Client Assets
(March 31, 2009)
We believe that these clients have chosen Nomura for
several reasons. By understanding our clients, we can offer
products closely matched to their needs. Additionally, our
consulting services cover all aspects of personal finance.
“
Offering more client-focused
services
”
Our face-to-face service at our branch offices is one of
The growth we are seeing in our client platform, with
our long-standing strengths. We continue to enhance our
increases in both Retail client assets and client accounts, is
consulting-based services and our organizational structure
a testament to the trust our clients place in Nomura.
to deliver services to a broader base of investors. For
example, we have opened over 30 new branches since
for Consulting
2006, bringing our nationwide network to 171 branches.
our product and service offering we are evaluating the
We have further revised our product and service offering
integration of Joinvest Securities, our online broker, into
and upgraded our employee training initiatives to ensure
Nomura Securities. Through such initiatives we will contin-
we understand and meet our clients’ needs.
ue to strengthen and expand our retail operations in Japan
At the same time, we are stepping up our efforts in
to remain the most trusted partner for our clients.
other channels to deliver the information that our clients
need as quickly as possible. We are increasing services that
enhance convenience. For example, we started an online
securities-backed loan service in July 2008. To augment
4.5 Million
Client Accounts
(March 31, 2009)
Annual Report 2009
23
My job puts me at the forefront of Nomura’s retail busi-
ness in Japan. I work with both individual and corporate
clients who demand sophisticated financial services, helping
them solve any financial issues they face. This means I have
to be very quick to adapt to their rapidly changing needs.
I need to be able to provide advice on a full range of
financial services including managing personal assets, tax
strategies, real estate, IPOs, and corporate actions such as
mergers and acquisitions. To do so, I need to draw on the
full resources of Nomura. The acquisition of parts of Lehman
Brothers’ operations has further extended those resources,
allowing me to offer more value and bring world-class
services to my clients.
Count on Nomura
Retail Client Assets and
Client Accounts*
Retail Client Assets (trillions of yen)
Client Accounts (thousands)
85.2
80.5
61.2
3,678
3,678
3,678
3,953
3,953
3,953
3,780
3,780
3,780
72.2
4,165
4,165
4,165
4,467
4,467
4,467
4,494
4,494
4,494
67.2
59.3
3/2005
3/2006
3/2007
3/2008
3/2009
6/2009
*Accounts with a positive balance
24 Nomura Holdings, Inc.
Mizuho Sugiura
Okazaki Branch Office
We’re bringing
world-class services
to Japanese investors.
I’m always looking to raise the bar to
be the best partner for my clients’
investment needs.
I work with retail investors in Japan to provide
To respond to the diverse needs of my clients,
them with solutions on how to best manage
I have to constantly broaden my knowledge of
their personal assets. I first sit down with my
financial products, inheritance planning, and tax
clients to discuss where they are in life and
issues. But knowledge alone is not enough. I
where they are headed in terms of managing
also work on improving my communication skills
and growing their asset base.
to build closer relationships with my clients and
Naturally, our clients’ needs come first. It is
better understand their needs.
essential that we ascertain precisely what those
The part of my job I love the most is being
needs are and how we can provide the best solu-
able to help my clients map out their life plan by
tions from our broad product offering.
providing advice on how to manage their assets.
Atsushi Onuma
Umeda Branch Office
for Consulting
Yuji Hibino
Deputy Managing Director,
Shibuya Branch Office
In the branch office where I work in
Tokyo, our clients include public interest
corporations such as foundations and edu-
cational institutes, listed companies, and
individual retail investors. Each of these
client groups has different requirements.
For corporations and institutions we pro-
vide financial products and services, advice
on mergers and acquisitions and fundrais-
ing, and support for their core operations.
We advise retail investors on how to man-
age their assets in line with prevailing mar-
ket conditions and their plans for the future.
We also leverage all of Nomura’s resources
We’re intensely focused
on creating value for our
clients, remaining as
their most trusted part-
ner while staying one
step ahead of the compe-
tition.
to provide advice on inheritance planning
and business succession as well as to intro-
duce our clients to trusted real estate bro-
kers and certified tax accountants.
In addition to working with my own
client base, I am in charge of formulating
marketing strategies for our branch, moti-
vating team members, and ensuring
Nomura’s high compliance standards are
maintained. Tokyo is a competitive market
and we are building the number one pres-
ence in our area through an intense focus
on creating value for our clients to contin-
ue as their most trusted partner for finan-
cial services.
Annual Report 2009
25
4,467
4,494
4,165
3,953
3,780
3,678
Global Markets
Count on Nomura
“
Delivering sophisticated financial
services to our clients
The trading environment deteriorated significantly last
year due to the global financial crisis. The subsequent dry-
”
cial products and specialist financial services including best
execution.
Due to recent market conditions, our clients are now
more focused on liquidity and transparency in their trans-
actions. Responding to these trends requires sophisticated
ing up of market liquidity impacted many financial institu-
financial engineering skills and leading information tech-
tions’ performance. At the same time our main clients,
nology capabilities together with solid professional experi-
such as traditional institutional investors, hedge funds, and
ence and best execution capacity. These are all areas
private equity funds, are demanding more advanced finan-
where Nomura has a competitive advantage. For example,
13x
Increase in Cash Equity Trades
from Non-Japan Operations
(September 2008 vs. June 2009)
26 Nomura Holdings, Inc.
#1
London Stock Exchange Share
(July 2009)
we have significantly increased our market share on the
Nomura to become a world-class player in both fixed
Tokyo and London stock exchanges due to our leading
income and equities. We have added a new international
research capabilities and execution platform.
client base to our already solid base of Japanese institu-
“
Building a new franchise to become
a global top-tier player
Our acquisition of parts of Lehman Brothers’ operations
in Asia-Pacific, Europe, and the Middle East enabled
”
tional investors and have substantially enhanced our
research and product origination capabilities. Our systems
are integrated, providing an infrastructure enabling us to
generate synergies across the business.
In fixed income, we are rolling out our product lines
globally and aiming to become a top-tier player in our tar-
for Innovation
get markets. Our focus is on liquid businesses such as
create win-win solutions for our client franchise.
interest rates, currency and flow credit trading. We also
In asset finance areas such as real estate and acquisi-
offer structured solutions in response to our clients’
tion financings, we continue to develop the business in
increasingly complex needs.
response to changing market conditions and client needs.
In equities, we aim to become the world’s leading
provider of liquidity. We offer our clients the best execution
based on our cutting-edge technology and highly diverse
sources of order flow. We are also enhancing our service
offering to deliver products with unrivaled value-add and
5x
Increase in Flow Rate & Credit Trades
from Non-Japan Operations
(January 2009 vs. June 2009)
Annual Report 2009
27
As part of the government bond team,
I trade Japanese government bonds,
one of the biggest and most liquid
fixed income markets in the world.
Naoya Murata
Executive Director,
Fixed Income Department
JGB Trading
Count on Nomura
FX Trades from Non-Japan Operations (Index)
14.5x
100
9/2008
1,449
6/2009
Flow Rate & Flow Credit Trades from
Non-Japan Operations (Index)
5.0x
100
1/2009
502
6/2009
Note: Start date of indexing based on pre-integration or go-live period of
each business line.
28 Nomura Holdings, Inc.
My job mainly involves market-making
clients on a global basis allowed us to
Nomura is consistently positioned in the
activities in the secondary market for
increase our clients’ confidence in us even
top ranks for JGB auction results.
Japanese government bonds (JGBs). We
throughout the unprecedented financial
The key for us now is to continue encour-
work with a broad base of institutional
market turmoil in 2008.
aging international investors to invest in
investors, offering stable, competitive pric-
Participating in JGB auctions is another
JGBs on the back of expected issuance
ing and supplying liquidity under all market
important aspect of my job. With nearly
increases. We will focus on driving rev-
conditions to generate revenues for
¥800 trillion in long-term debt outstanding,
enues by expanding our overseas business
Nomura based on client order flow. This is
the Japanese government needs to be able
platform, enhancing the client experience,
the core of our fixed income and yen busi-
to issue bonds to manage debt and facili-
and maximizing our strengths in yen-related
nesses and is an essential part of Nomura’s
tate economic growth. By participating in
businesses.
flow business.
JGB auctions, we are supporting the coun-
Our established framework for consis-
try’s fundraising activities and playing a
tently delivering stable liquidity to our
part in setting appropriate interest rates.
for Innovation
We are building a truly global foreign exchange
franchise, offering the most comprehensive range of
client-focused capabilities through dedicated profes-
sionals and market-leading technology.
Nomura’s strategic objective in foreign
liquidity to clients where and when they
exchange (FX) is to be a leading dealer in
need it. Our industry-leading FX structurers
the wholesale global markets, offering our
and research professionals provide bespoke
clients 24-hour market-making services and
solutions and analysis. In emerging markets
operational support in FX cash and deriva-
we offer the rates products that go hand-in-
tive products. We recently opened a new FX
hand with the currency needs of our clients.
hub in Singapore to complement our exist-
A market-leading firm requires market-
ing centers in Tokyo and London.
leading infrastructure to support a large
We help clients navigate challenging
and demanding client base. We invested
heavily in technology, product control and
operations to support not only the clients
that we have now but those we will have in
two years time. We launched an e-trading
platform offering clients executable stream-
ing prices and request-for-quote functional-
ity in over 200 currency pairs. We plan to
dominate electronic trading through our
stability, speed, and innovation.
We are committed to building deep, col-
laborative relationships with our clients and
placing them at the heart of our strategy.
markets by offering innovative solutions
and market intelligence across G10 and
emerging market currencies, providing
Richard Gladwin
Global Co-Head of Foreign Exchange
Annual Report 2009
29
Over the past year Nomura in Europe has
every way. We now have the scale, scope and
vision of becoming a world-class investment
As head of the Global Markets Client Strategy Group for Europe,
Middle East, and Africa (EMEA), I am responsible for centralizing the
client planning process and guiding resource allocation decisions. Our
goal is to achieve the best commercial outcome through efficient cross-
divisional planning and action. Our group works together with all of
Global Markets’ sales and product teams to identify client opportuni-
ties, prioritize resource allocation, and establish robust client plans.
We are committed to putting clients at the center of our business.
More than ever, both our clients and the business are looking for the
best results. This requires coordination from within and between our
divisional teams. I believe effective client planning will play a key part
in the future success of our division.
Count on Nomura
Cash Equity Trades from Non-Japan Operations (Index)
13.0x
100
9/2008
1,307
6/2009
London Stock Exchange Market Share
(%)
8
6
4
2
0
9
10
11
12
1
2
3
2008
5
6
7
4
2009
30 Nomura Holdings, Inc.
Note: Start date of indexing based on pre-integration or go-live period.
transformed in
talent to realize our
bank.
Jennifer Shields
Head of Global Markets Client
Strategy, EMEA
Powai: Global Support Center
Nomura Services India (Powai) supports Nomura’s offices around the world. Powai’s world-class
capabilities in information technology, operations and trading support, financial processing and con-
trol, risk management, and legal processing have played a key role in facilitating Nomura’s global oper-
ations and are an integral part of Nomura’s global expansion plans. Powai’s 2,300 talented profession-
als all have at least one graduate degree, while many also hold MBAs or PhDs or are qualified as certi-
fied accountants or engineers.
Powai delivers timely, proactive, and detailed analytics to support informed decision-making by
Nomura’s businesses. Powai staff provide risk reporting for Global Fixed Income, quantitative analytics
for Global Equities, and Investment Banking cov-
erage for 30 industry and product groups across
Asia and EMEA. Powai’s research team assists
lead analysts globally and provides lead coverage
for multiple EMEA equities.
The Powai operation is a critical part of the
platform to support the growth of Nomura’s
global business.
for Innovation
Tim Wannenmacher
Global Co-Head of
Prime Services
settlement, financial reporting, and other
reporting. We are committed to continuous-
services our clients require to successfully
ly developing our technology and services
navigate the capital markets worldwide.
to be the prime services partner of choice in
Our global futures and options platform
the dynamic financial environment.
offers clients access to all major markets for
As Nomura is the preeminent Asia-based
listed derivatives with advanced trading,
investment bank with global expertise and
Prime Services is a core component of
allocation, and clearing. Tailored to quanti-
unrivaled access to the Japanese market,
Nomura’s global markets strategy as an
tative funds, we offer an ultra-low latency
we are uniquely positioned to service our
essential partner to institutional asset man-
execution platform fully integrated with
clients worldwide.
agers, hedge funds, and other market par-
straight-through processing, financing, and
ticipants through cross-asset financing,
execution, and clearing. Our prime broker-
age platform provides financing solutions
for long and short positions, clearing and
We are passionate about delivering firm-wide client
partnerships. As a core component of Nomura’s global
markets strategy, Prime Services enhances our global
reach and client solutions.
Annual Report 2009
31
Investment Banking
Count on Nomura
“
Building client trust by leveraging
Nomura’s strengths
high-profile cross-border deals over the past year included
border transactions involving Japanese companies. Our
a tender offer by Daiichi Sankyo for Ranbaxy Laboratories
”
Given the increasing speed of global consolidation in
many industries, the strategic use of mergers and acquisi-
and TDK’s tender offer for EPCOS.
We also realized synergies from our acquisition of parts
tions continues to grow in importance. Despite the impact
of Lehman Brothers’ operations in Asia-Pacific, Europe and
of the global financial crisis, M&A transactions involving
the Middle East. Some examples include advising on
Japanese companies remained strong in calendar year
Sinopec’s acquisition of Tanganyika Oil Company and Asahi
2008 with a total of 2,399 deals representing a total value
Breweries’ acquisition of Tsingtao Brewery. On the corporate
of ¥12.4 trillion, roughly unchanged from 2007.
finance side, we acted as joint coordinator on a global offer-
One long-term trend is the continuing rise in cross-
ing by Mitsubishi UFJ Financial Group. As a result, Nomura
60% +
Japanese Listed Companies Using Nomura as Underwriter
32 Nomura Holdings, Inc.
35.9%
Equity Finance Share*
(Japan, January-June 2009)
maintained the top position in both the Japanese M&A finan-
cial advisory league table and the Japanese equity and
equity-related bookrunner league table for 2008.
This continued support from our clients in spite of the
harsh business environment is a testament to our strength
“
Aiming to be a global leader in
investment banking
Investment banking business models can be divided
into four groups based on geographic breadth and product
”
as an independent investment bank with world-class
range: regional leaders, boutiques, mega boutiques, and
expertise, a global client base and network, and a long-
global leaders.
standing track record.
Nomura has traditionally been considered a regional
leader. In the past, our global expansion and international
for Solutions
offices were designed to support our Japan-related busi-
Principal Business Model Choices
nesses.
However, with our newly acquired business opera-
tions, we have quickly built a platform to deepen our
global coverage. Our focus now is to recapture the mar-
ket share previously held by the acquired franchise in
Asia and Europe as soon as possible to become a true
global leader in investment banking.
e
g
n
a
R
s
t
c
u
d
o
r
P
Regional Leaders
Global Leaders
Boutiques
Mega Boutiques
Geographic Spread
Best M&A House in China
Euromoney
(April 2008-March 2009)
*Source: Dealogic
Annual Report 2009
33
Japanese companies are entering a period of change following the global
financial crisis. Industries and corporate groups are realigning as firms strug-
gle to survive in a shrinking domestic market. Cross-border mergers and
acquisitions aimed at growth are increasing and capital-raising activities are
on the rise. Japanese companies are moving faster than ever to emerge as
winners in today’s globally competitive environment.
Our role is to help our corporate clients capitalize on these trends by
providing solutions tailored to their specific needs. Nomura works as
underwriter for more than 60 percent of companies listed in Japan and we
enjoy an unrivalled position as the only independent investment bank in
Japan. Last year, our powerful presence in Japan was augmented by our
newly extended international franchise. This significant advantage allows
us to deliver better solutions to a broader base of corporate clients.
In my position overseeing our domestic operations, I see our mission as
meeting the diverse needs of our clients in the most optimal way to help
stimulate the Japanese economy.
Count on Nomura
(January–June 2009)
Equity Capital Markets Bookrunner League Table
Rank Bookrunner
Proceeds
(US$m)
Mkt.
share
No. of
deals
1
2
3
4
5
5
Nomura
6,257
Daiwa Securities SMBC
2,847
Goldman Sachs
2,515
Nikko Citi
JP Morgan
Barclays
948
943
943
35.9％
16.3%
14.4％
5.4％
5.4％
5.4％
11
4
1
2
1
1
(January–June 2009)
M&A Financial Advisors League Table
Mkt.
Rank Advisor
share
Rank Value
(US$m)
No. of
deals
1
2
3
Nomura
Citi
Goldman Sachs
10,557
9,251
6,492
4 Mizuho Financial Group 5,793
5
Deutsche Bank
4,697
23.6％
20.7%
14.5％
12.9％
10.5％
64
29
7
71
7
Source: Thomson Reuters for M&A, Dealogic for equity capital markets
34 Nomura Holdings, Inc.
We’re providing
tailored solutions to
help stimulate the
Japanese economy.
Koji Nagai
Deputy Head of Investment
Banking, Executive Vice President,
Nomura Securities
Hiroyuki Suzuki
Deputy Head of Investment Banking,
Senior Corporate Managing Director,
Nomura Securities
We’re making full use of our newly
extended business platform to deliver
competitive services to our clients.
Nomura’s acquisition of parts of Lehman
As the world becomes further interlinked, the
Brothers’ operations in Asia-Pacific, Europe, and
Investment Banking division, and indeed
the Middle East last year allowed us to step up
Nomura as a whole, faces an exciting challenge
our product platform to a world-class level and
and unprecedented opportunity to use our new
rapidly extend our distribution network. This
business platform to deliver competitive services
equates to higher quality services for our world-
to our clients around the world. It’s now time for
wide client base. The acquisitions also helped
us to take up that challenge and provide a
Nomura build on our already solid client base in
diverse range of services on a global scale.
Japan and establish a firm presence in the rest of
Asia and Europe.
for Solutions
Christian Meissner
Deputy Head of Investment Banking
Against that backdrop, our clients trusted us with
key assignments that demonstrated the strength of
the new Nomura platform. We were involved in two
Our clients trusted
us with key assign-
ments that demon-
strated the strength
of the new Nomura
platform.
Nomura acquired Lehman Brothers’ European
landmark transactions by financial sponsors in
and Asian investment banking operations in
Europe and Asia, as joint financial advisor and lead
September 2008. The integration into Nomura’s
arranger of the acquisition financing for
wider investment banking business has been suc-
Charterhouse in its acquisition of Wood Mackenzie
cessfully concluded and our combined teams supple-
in the UK and to KKR in its acquisition of Oriental
mented by strategic hires complete the build-out of
Brewery Company in Korea. We advised clients on a
our operations in these markets. The combination
number of other substantial M&A transactions
has established Nomura as a global firm with world-
including Sinopec’s acquisition of Tanganyika Oil
class capabilities, able to serve our clients around
Company and Kirin Holdings’ acquisition of San
the world.
Miguel’s brewery business in the Philippines.
We operated in an extraordinarily difficult market
We have also been active in a large number of
environment, characterized by low volumes and volatile
financing transactions for diverse clients such as
secondary markets. M&A volumes globally fell 31 per-
Beijing Enterprises, SK Telecom, First Quantum and
cent from fiscal 2007 to fiscal 2008, as clients adjusted
Givaudan, and have provided risk mitigation solu-
to a recessionary economic environment coupled with
tions to clients via our corporate fixed income and
limited access to capital markets.
equity derivative businesses.
Annual Report 2009
35
Merchant Banking
Count on Nomura
“
more cautious approach to new investments and wrote
down existing ones.
As principal investors, we provide
expertise, commitment and hands-on
involvement to boost corporate value
Despite the difficult environment, private equity funds
In recent years, private equity funds have served an
important role by providing financial support to companies
trying to build their operations. However, last year’s finan-
cial market turmoil and credit crunch have forced many pri-
vate equity funds to modify their strategies. At Nomura,
our portfolio size as of March 2009 had declined by 4 per-
cent from the prior year to ¥366.3 billion as we took a
”
continue to play an important role in the economy. Indeed,
the environment is now forcing many companies to focus
on their core businesses to maintain their competitive
advantage and drive future growth. Our clients are increas-
ingly looking for new financial solutions, such as restruc-
turing their business portfolios or even delisting their
shares through management buyouts.
We take a comprehensive approach that goes far
¥366.3 Billion
in Investments
(March 31, 2009)
36 Nomura Holdings, Inc.
25%
Internal Rate of Return (IRR)*
(March 31, 2009)
beyond simply lending funds to investee companies. We
to the local community.
make a commitment to partner with our clients and collab-
These strengths have helped us build a solid track
orate with them to boost the value of the company. We
record in a diverse range of industry sectors and become a
can provide talent for hands-on management, an extensive
trusted partner to a broad base of clients. Some of our
network, and industry-leading expertise in addition to sup-
recent major investments in Japan include Skylark, a group
plying the necessary capital.
of restaurant chains, and Ashikaga Holdings, a regional
In short, our main strength lies in being able to mobi-
financial services provider. We remain focused on deliver-
lize Nomura’s full resources at all stages in the business
ing a high degree of expertise to our clients to provide
restructuring process. Our long-term approach also takes
solutions to the issues they face.
into account the needs of all stakeholders from employees
for Value
“
Building an efficient operating
structure to navigate a difficult
environment
”
We expect the business environment to remain difficult
for the time being. However, we will continue to focus on
projects in which we can be actively engaged in increasing
the corporate value of investee companies. We will also
continue to direct our efforts into building an operating
platform that can withstand changes in the business envi-
ronment and generate strong revenues.
In our search for new investment opportunities, we will
continue to utilize Nomura’s entire network with an even
more rigorous focus on profitability when considering new
investments.
For existing investments, we will leverage all of Nomura’s
available resources to increase the value of our investee com-
panies and consider the best means to recoup our invest-
ments. We are also reviewing our organizational structure to
ensure our operations run as efficiently as possible.
18
Investee Companies to Date*
*Nomura Principal Finance
Annual Report 2009
37
We put risk capital to use to solve our
clients’ management issues.
Shuntaro Moritani
Executive Officer,
Nomura Principal Finance
Count on Nomura
Nomura Principal Finance
Equity lnvestments (Cumulative)
(billions of yen)
278
227
189
119
77
0
2000
12
2
2001
2002
21
2003
2004
2005
2006
2007
2008
(Calendar Years)
Nomura Principal Finance
Nomura Principal Finance (NPF) is Nomura’s main private equity
investment business in Japan. Since it was established in July 2000,
NPF has invested private capital into client firms to provide solutions
to capital structure issues. Leveraging Nomura’s overall network,
NPF has invested in 18 companies in the past nine years, for a total
equity investment of approximately ¥280 billion. After investing in a
company, NPF focuses on raising the value of the investee company
and has recouped a total of 12 investments to date.
38 Nomura Holdings, Inc.
My department is responsible for finding
By providing risk capital financing out-
That said, companies can only take on
promising companies to invest in, originat-
side traditional capital markets, we give
so much financial risk. With the environ-
ing investment schemes, and executing
managers the support they need to enter
ment becoming increasingly uncertain and
investments. We use our own risk capital
new businesses or restructure existing
business risk volatility increasing, we are
to provide solutions for the issues that
businesses to improve the corporate value
taking a cautious approach to developing
companies face such as group company
of their companies.
new investment opportunities.
reorganizations, business succession, joint
The business environment has been
investment, and turnaround sponsorship.
transformed following last year’s financial
The key to a successful investment is to
crisis. As such, we are seeing many promis-
partner with the management of the com-
ing investment opportunities due to the
pany to formulate the management policy
changes occurring as companies shift strate-
and draw up a business plan.
gic direction and industries realign through
high-profile mergers and acquisitions.
for Value
We are quick to put the right measures in place to respond to the
changing business environment and competitive landscape.
My department is responsible for increas-
move quickly to implement measures to
pursue capital alliances to boost their posi-
ing the value of the companies we have
respond to the changing business environ-
tion within their respective industries.
invested in, monitoring their operations,
ment and competitive landscape.
This approach has proven successful.
and exiting from our investments. We have
In gathering information and seeking out
Since Nomura Principal Finance was estab-
a team of about 20 professionals with back-
new business partners, we make full use of
lished we have achieved an internal rate of
grounds in research, mergers and acquisi-
Nomura’s extensive network and manage-
return above the industry standard of 20
tions, and IPOs, as well as a number of
ment resources to differentiate ourselves
percent across our portfolio.
chartered accountants. Our team also pro-
from independent private equity houses.
vides on-site management support for some
We also turn to Nomura’s strengths when
of our investee companies.
it comes to exiting our investments. We pre-
When we first invest in a company, we
pare our investee companies to list and also
open an in-depth dialogue with the man-
agement to formulate a business plan. We
then monitor the progress of the plan and
Shoji Fukui
Executive Officer,
Nomura Principal Finance
Annual Report 2009
39
Asset Management
Count on Nomura
“
Building client trust through a
visible presence in tough times
The recent financial market turmoil caused a flight to
quality by investors, depressing global equity markets. As a
”
In the medium to long term, however, we expect the
investment trust market to continue growing. There will be
significant asset management needs from baby boomers
entering retirement as well as increased demand from
younger investors looking to build asset bases for the future.
result, assets under management in Japanese investment
Our clients continue to trust us because of our outstanding
trusts dropped 26.2 percent to ¥51.5 trillion in fiscal 2008.
track record, which is backed by our leading market share in
Due to the downturn, Nomura’s assets under management
Japan, comprehensive capabilities, solid operations, and
also declined 21.7 percent to ¥20.2 trillion.
timely development of products that meet their needs.
¥20.2 Trillion
Assets under Management
(March 31, 2009)
40 Nomura Holdings, Inc.
22.0%
Share of Japanese Public Investment Trust Market
(March 31, 2009)
Celebrating our 50th year in asset management this
year, Nomura has always been at the forefront of the indus-
try in Japan. At this important milestone in our history, we
reaffirm our commitment to being at the frontier of the
asset management business. Our heritage positions us as a
“
Driving growth through
client focus
”
In the investment trust business, we take a multipro-
duct, multichannel approach to offer products and services
leading force in these difficult times, which in turn will let
tailored to our clients’ requirements. We have an extensive
us win the further trust of our clients.
product offering and continue to innovate to meet clients’
changing needs. We offer a broad spectrum of support to
our distribution channels, which include Nomura Securities
for Expertise
and other brokerage houses, commercial banks, Japan Post
talizing on this trend to increase our investment advisory
Bank, and post offices throughout Japan. To improve our
assets by leveraging our expertise in Japanese and Asian
products and services we are creating more opportunities
equities as well as Japanese and foreign bonds. We are
for direct client contact through seminars and informative
also developing new products, such as equity funds that
sessions.
are based on the RAFI® (Research Affiliates Fundamentals
In the investment advisory business, institutional
Index) strategy and sharia-compliant equities and bonds in
investors were hit hard by the market turmoil in the past
the Islamic finance space. These developments represent
year. They are reviewing their portfolio allocations and
our constant commitment to pursue new fields and new
reconsidering their choices of asset managers. We are capi-
methodologies to deliver the latest products to our clients.
9,533
# of Seminars and Forums Held
(FY 2008)
Annual Report 2009
41
Rejina Rahim
Managing Director, Nomura Asset
Management Malaysia
Nomura has the best of both worlds:
a Japanese legacy coupled with an
international network operating in a
globalized world with a strong com-
mitment to Asia.
Count on Nomura
Global Expansion
Agreed to invest in LIC Mutual
Fund, a subsidiary of India’s
largest
insurer Life
Insurance Corporation of India,
and to form a joint venture.
life
Major Awards Received
Asian Investor Investment
Performance Awards 2009
“Asset Manager of the Year (ETFs Japan)”
“Best in Hong Kong Equities”
“Japan Onshore Fund House of the Year”
Global Pensions Awards 2009
“Specialist equities manager of the
year”
European Pensions Awards
2009
“Emerging Markets Manager of the
Year”
42 Nomura Holdings, Inc.
Since Nomura Asset Management
diversity while meeting our objective of
Malaysia was set up at the end of 2006,
being a client-focused fund management
the Malaysian office has grown rapidly and
house.
is now the largest foreign fund manage-
Nomura has the best of both worlds: a
ment company in Malaysia. The reason:
Japanese legacy coupled with an interna-
23.1
We have been managing money on behalf
tional network operating in a globalized
of our clients in Malaysia since the 1990s
world with a strong commitment to Asia.
17.9
and Nomura Asset Management’s name is
Nomura respects and values diversity
synonymous with trust, consistent perform-
and the Malaysian office is a clear testa-
ance and exceptional client service. We are
ment to this. I am proud to be a part of the
now actively moving into the Islamic fund
global family that is Nomura.
Asset Management Division
Total Assets under Management
(trillions of yen)
27.0
25.8
22.2
20.2
management space where we have posi-
tioned Malaysia as our global Islamic hub.
Islamic fund management is consistent
with Nomura’s values of transparency and
3/2005 3/2006 3/2007 3/2008
3/2009 6/2009
for Expertise
The Nomura US High Yield Bond Multi-Currency
Fund is one of our most important funds.
is to achieve strong total returns while
maintaining a high level of current
income. We invest in a diversified portfolio
of US dollar denominated bonds rated
I joined Nomura Corporate Research and
ly followed this philosophy at NCRAM since
single-B and higher, issued principally by
Asset Management (NCRAM) in 1999 as a
the company’s founding, growing assets
US companies. We invest according to our
high yield analyst, eventually being promot-
and maintaining an excellent track record.
“Strong Horse” philosophy and choose
ed to assistant portfolio manager and then
I currently manage the High Yield Bond
companies based on bottom-up credit
to portfolio manager. NCRAM is a US-based
Open Fund and our newest fund: the Nomura
research while applying our top-down
investment manager specializing in high
US High Yield Bond Multi-Currency Fund, one
industry and macro views.
yield, leveraged loan, and emerging market
of the most important funds for NCRAM that
investments for leading US corporate pen-
was the top-selling fund launched outside
sion funds.
the US in January-March 2009.
NCRAM’s strategy is to invest according
The fund’s primary investment objective
to our “Strong Horse” philosophy, meaning
we invest in strong companies able to carry
a large amount of debt. We have successful-
Amy Yu
Executive Director, Portfolio Manager,
Nomura Corporate Research and Asset
Management
Annual Report 2009
43
Global Research
Nomura has emphasized research since it was established in 1925. Our founder, Tokushichi
Nomura II, realized the importance of a scientific approach to securities analysis early on. The
database of research and analytical expertise we have built since then is now one of our core
strengths.
Nomura’s global research network collaborates closely across regions to track economic
changes and market developments, forecast future scenarios, and communicate topical informa-
tion to investors via research reports and seminars. We focus solely on providing information
that helps our clients generate strong investment performance. This approach has proven to be
successful, and Nomura’s research remains a vital part of our clients’ investment activities.
With the acquisition of parts of Lehman Brothers’ operations in Asia-Pacific, Europe, and
the Middle East in September 2008, we enhanced our global research footprint dramatically.
We are now more closely connected than ever, and deliver collaborative research coverage
around the world.
We continue to enhance our global research capabilities to respond to our clients’ needs and
provide research that backs up Nomura’s commitment to being client-focused.
Count on Nomura
Equity Research
Nomura has the deepest pool of equity analysts in Japan. We provide insights for
investment ideas based on extremely rigorous analysis, and our research is highly
regarded by investment managers around the world.
We significantly enhanced our capabilities in September 2008. In the following six
months, we increased our research coverage by nearly 50 percent – from 1,000 compa-
nies to 1,500. We are now better equipped than ever to provide world-class research to
our global client base.
Equity Strategy
The research team has strategists located in Tokyo,
London, New York, Hong Kong, and Mumbai. Our flagship
report, Global Weekly Strategy, provides a wealth of infor-
mation on the latest topics from the world’s equity markets.
We make asset allocation recommendations based on stock
indices and corporate earnings forecasts. Our recommenda-
tions for individual equities and asset class choices also
reflect the results of quantitative model-based analysis.
Ian Scott
Equity Strategist
44 Nomura Holdings, Inc.
Research Coverage
Europe
(Companies Covered)
Asia (Excluding Japan)
(Companies Covered)
394
130
543
296
Japan
(Companies Covered)
603
581
9/2008
3/2009
9/2008
3/2009
9/2008
3/2009
GDP Forecasts
Foreign Exchange Forecasts
GDP/Foreign Exchange Forecasts
for Insight
Global Macroeconomics
We have a total of 30 economists based in Tokyo, Hong Kong,
London, Mumbai, Singapore, Sydney, and New York. We provide com-
prehensive analysis of economic trends in major markets around the
world and formulate Nomura’s macroeconomic forecasts. Our main
report is the Global Weekly Economic Monitor, which provides topical
analysis and updates on the latest economic indicators.
Paul Sheard
Global Chief Economist
Global Foreign Exchange
Our foreign exchange team provides research on 32 currencies. The
team’s Global FX Weeklyreport offers trading ideas based on quantitative
analysis of economic fundamentals that affect exchange rates and models
that incorporate business confidence indicators. Each week the report pro-
vides an updated global foreign exchange outlook taking into account daily
exchange rate movements.
Simon Flint
Asia-Pacific Global
FX Research
Annual Report 2009
45
Corporate Governance and Internal Control System
Overall Approach
Nomura Holdings aims for transparency in all its operations
and strives to ensure the quick, responsive management of
Nomura Group as a whole. While working to enhance the cor-
porate value of the Group in the medium to long term, we place
the highest importance on strengthening and further developing
our corporate governance initiatives.
We continually work to improve our governance to ensure
management transparency. When we became a holding company
in October 2001, we appointed outside directors to our Board of
Directors in order to strengthen management oversight functions.
Nomura Holdings also formed an Internal Controls Committee in
which an outside director also participates, created a
Compensation Committee with a majority of outside directors,
and formed an Advisory Board composed of independent experts.
When Nomura listed on the New York Stock Exchange in
tion, audit, and compensation committees that consist of a
majority of outside directors. This substantially enhanced man-
agement oversight and increased transparency. Along with this,
greater authority was delegated to executive officers allowing
for quicker, more responsive management of our operations on
a consolidated basis.
In 2004, we drew up the Code of Ethics of Nomura Group,
which outlines issues related to corporate governance and cor-
porate responsibility that all Nomura people should comply with
in order to fulfill their responsibilities to Nomura Holdings
shareholders and other stakeholders.
Corporate Governance at
Nomura Holdings
Business Execution, Audit/Oversight,
Nomination, and Compensation Processes
December 2001, we further expanded our information disclo-
As Nomura Holdings has adopted a committee system for
sure to increase management transparency. In June 2003, we
corporate governance, the Board of Directors has delegated
adopted a corporate governance model based on committees
substantial authority to executive officers to allow them to carry
and separated management oversight functions from the day-
out business operations in a flexible manner.
to-day execution of business activities. We also formed nomina-
We are strengthening and expanding our internal control
Management Structure
Management Structure
Shareholders’ Meeting
Shareholders’ Meeting
Board of Directors
Board of Directors
(10*)
(10*)
Nomination Committee
Nomination Committee
(2*)
(2*)
Audit Committee
Audit Committee
(24*)
(24*)
Compensation Committee
Compensation Committee
(6*)
(6*)
Office of Audit Committee
*N
*Number of meetings held in fiscal 2008
President & CEO
President & CEO
Executive Management Board
Executive Management Board
Advisory Board
Group Integrated
Group Integrated
Risk Management Committee
Risk Management Committee
Global Risk Management Committee
Global Risk Management Committee
Internal Controls Committee
Internal Controls Committee
Advises the Executive
Management Board
Members are prominent
businesspeople
46 Nomura Holdings, Inc.
systems to ensure the proper conduct of corporate activities
Executive Management Board, Group Integrated Risk
group-wide. Our aim is to ensure management transparency
Management Committee, and Internal Controls Committee.
and efficiency, compliance with laws and regulations,
disciplined risk management, reliable operating and financial
reporting, as well as timely and appropriate disclosure.
● Three Committees
Executive Management Board
Chaired by the CEO, the Executive Management Board
includes the COO, business division CEOs, and other person(s)
designated by the CEO. The Executive Management Board is
Management oversight is conducted by the Board of
responsible for deliberating and making decisions related to
Directors and the Nomination Committee, Audit Committee,
important management issues for Nomura Group, such as
and Compensation Committee have been given the authority to
strategy, business plans, and budgets as well as the allocation
make decisions on issues including candidates for the Board of
of resources.
Directors, auditing of the duties carried out by directors and
executive officers, and compensation for directors and executive
officers, respectively.
○ Nomination Committee
Group Integrated Risk Management Committee
The Group Integrated Risk Management Committee is
chaired by the CEO and includes the COO, business division
CEOs, and other person(s) designated by the CEO. Under the
The Nomination Committee is composed of a majority of
delegation of the Executive Management Board, the Group
outside directors and is responsible for decisions regarding
Integrated Risk Management Committee is responsible for
proposals made to the annual meeting of shareholders
deliberating and deciding on important risk management issues
concerning the appointment and dismissal of directors. No
for Nomura Group, such as the Group’s response to
directors who serve concurrently as representative executive
requirements under Basel II. A Global Risk Management
officers, including the CEO, or executive officers are members of
Committee has been established under the Group Integrated
the Nomination Committee.
○ Audit Committee
The Audit Committee is responsible for auditing the duties
Risk Management Committee to make assessments and
decisions regarding individual positions and important risk
management issues.
carried out by directors and executive officers. The Audit
Internal Controls Committee
Committee also prepares audit reports and makes decisions
The Internal Controls Committee is chaired by the CEO and
regarding proposals to be submitted to the annual meeting of
is comprised of persons designated by the CEO, Audit
shareholders concerning the appointment and dismissal of
Committee members designated by the Audit Committee, and
independent auditors. All members of the Audit Committee are
Directors (Audit Mission Directors) designated by the Board of
outside directors, and meet the requirements of independent
Directors. The Internal Controls Committee is responsible for
directors under the Sarbanes-Oxley Act.
establishing and evaluating the internal controls of Nomura
○ Compensation Committee
The Compensation Committee is also composed of a
Group’s operations as well as for deliberating and making
decisions to promote proper corporate behavior.
majority of outside directors. This committee determines policy
In order to further enhance our business execution
for decision making regarding compensation and related matters
structure in response to the increasing need for sophisticated
for directors and executive officers, and decides specific
expertise in the financial services industry, we have appointed
compensation and related matters for individual directors and
senior managing directors who are responsible for business
executive officers. No directors who serve concurrently as
representative executive officers, including the CEO, or executive
officers are members of the Compensation Committee.
and operations in their respective areas under the partial
delegation of authority by executive managing directors.
Business Execution
To ensure that executive officers make business decisions
smoothly and in an appropriate manner, we have set up an
Internal Controls
Nomura Holdings has implemented a range of measures to
ensure that decision making related to the conduct of operations
by executive officers is carried out smoothly and appropriately.
Annual Report 2009
47
Fair Disclosure
To ensure investors have fair access to information
posed of a base salary, cash bonus, and stock bonus. More
details on the calculation of compensation for directors and
regarding Nomura Group, we have drawn up Nomura Group’s
executive officers can be found online at: www.nomura.com
(1) Base Salary
Base salary is the sum of amounts based on each individual’s
career, posts held to date, and responsibilities, as well as the degree
of attainment of the company’s target consolidated return on equity.
(2) Cash Bonus
The cash bonus is based on quantitative factors such as consoli-
dated net income, return on equity, and business division perform-
ance. This bonus is also based on qualitative items, such as the
degree of attainment of management targets and personal targets,
assessments of the individual’s personal contributions, and other
factors. The aggregate cash bonuses of directors and executive offi-
cers may not exceed 1 percent of consolidated net income.
(3) Stock Bonus
The stock bonus is determined separately for each individual by
taking into consideration all applicable factors. These include consol-
idated net income and return on equity, the level of this compensa-
tion relative to the base salary and cash bonus, and the costs and
benefits of providing such compensation.
Compensation for Directors and Executive Officers
(For Fiscal 2008)
Position
Directors
(Outside directors)
Executive Officers
Total
Number1
Compensation
11
(6)
20
31
¥424 million
(¥139 million)
¥829 million
¥1,253 million 2,3
1. Compensation of the persons holding offices of director and execu-
tive officer concurrently is included in the compensation figure for
executive officers.
2. The figure of ¥1,253 million includes ¥459 million in compensation
paid in the form of stock options (stock-related compensation). (A
total of 31 persons received compensation in the form of stock
options.)
3. The figure of ¥1,253 million includes ¥1 million in compensation paid
in a nonmonetary form.
Statement of Global Corporate Policy Regarding Public
Disclosure of Information. A Disclosure Committee was set up
in line with this policy to deliberate and make decisions
regarding the appropriate disclosure of material information
related to Nomura Group, the preparation of legally mandated
disclosure documents, and important items related to the
disclosure of corporate information.
Crisis Management
To minimize the impact of natural disasters, fires, and other
crises, both in Japan and overseas, and to ensure operations
return to normal as quickly as possible following such incidents,
Nomura Group has drawn up the Nomura Group Crisis
Management Policy. In addition, the Nomura Group Crisis
Management Committee is responsible for Group-wide crisis
management plans and action programs.
Information Security
Nomura Group has established an information security
policy outlining the handling of client information to ensure that
such information is strictly protected and managed. Nomura
Securities has also prepared internal regulations that include
regulations regarding insider trading to strictly manage
information related to corporate clients.
Compliance
Nomura Group works to prevent behavior that may give rise
to the suspicion of violations of legal regulations. The following
measures have been taken to ensure that all related information
is promptly communicated to management without exception
should such behavior be found to exist.
● Appointment of a group compliance officer
● Appointment of compliance officers
● Establishment of a compliance hotline
● Global approach to legal risk
Compensation
Compensation for directors and executive officers is adjust-
ed in accordance with the attainment of management targets in
order to increase management motivation and empower indi-
viduals to realize their maximum potential. Share-based com-
pensation has also been introduced to enhance long term incen-
tives. Compensation for directors and executive officers is com-
48 Nomura Holdings, Inc.
Risk Management
We have implemented the following measures to ensure
● Established Group Integrated Risk Management Committee and
the integrated control, monitoring, and reporting of risks
Global Risk Management Committee to ensure integrated
inherent in the activities of Nomura Group.
approach to risk management
● Top management actively committed to risk management
● Risks managed by globally linked risk management departments
● Appointed a chief risk officer to strengthen proactive risk
management structure
and risk management at the operating level
Risk Management Initiatives
Risk management is a key factor in determining the success of our business, so we continually build on
our demonstrated commitment to this critical function. We take an integrated, fact-based approach to risk
management that employs traditional quantitative techniques while also dealing with reputational, legal
and other risks that are difficult to quantify. We also maintain a unified risk management function, share
information continuously throughout our global organization, and employ standardized methodologies
wherever possible.
As Nomura expands in Asia-Pacific and Europe, we must deal decisively with new and intensified risks.
We are addressing them with a number of measures, such as managing each region’s risks directly
in-market. In the diverse Asian region, we are making sure that Nomura complements these in-market
resources by applying its global risk management standards in each market and country.
One of my key responsibilities is to remind my colleagues that risks present opportunities, and rewards
are a function of risks. We need to avoid the mentality in which risk management focuses exclusively on
limiting the downside. We must also help our businesses take intelligent risks to generate top-line growth
and earnings, and we intend to make sure that Nomura is well-positioned for
future opportunities. For example, fragmentation in Asian equity markets presents
the chance for Nomura to add value for customers by providing a single, integrat-
ed platform. We are therefore embedding our risk management standards in the
new product development process so that together with our clients we realize the
benefits of our business development initiatives.
David Benson
Chief Risk Officer
Annual Report 2009
49
Board of Directors /
Executive and Senior Managing Directors
From left:[Front row] Junichi Ujiie, Kenichi Watanabe, Takumi Shibata
From left:[Back row] Masanori Itatani, Hideaki Kubori, Fumihide Nomura, Masaharu Shibata, Haruo Tsuji, Masahiro Sakane, Tsuguoki Fujinuma,
Hajime Sawabe, Yoshifumi Kawabata
Board of Directors
Title
Name
Responsibilities and Status in Other Companies
(As of June 25, 2009)
Nomination
Committee
Audit
Committee
Compensation
Committee
Audit Mission
Director
Chairman of the
Board of Directors
Junichi Ujiie
Director
Director
Kenichi Watanabe
Takumi Shibata
Director
Masaharu Shibata
Director
Hideaki Kubori
Director
Director
Masahiro Sakane
Haruo Tsuji
Director
Tsuguoki Fujinuma
Director
Hajime Sawabe
Director
Director
Director
Masanori Itatani
Yoshifumi Kawabata
Fumihide Nomura
President & Chief Executive Officer
Deputy President & Chief Operating Officer
Chairman of NGK Insulators, Ltd.
Chairman of NGK Technica, Ltd.
Statutory Auditor of Chubu-Nippon Broadcasting Co., Ltd.
Chairman of Hibiya Park Law Office
Statutory Auditor of SOURCENEXT CORPORATION
Chairman of the Board of Komatsu Ltd.
External Corporate Director of Tokyo Electron Limited
Corporate Advisor of Sharp Corporation
Outside Director of Kobayashi Pharmaceutical Co., Ltd.
Advisor of the Japanese Institute of Certified Public Accountants
Director of Tokyo Stock Exchange Group, Inc.
Governor of Tokyo Stock Exchange Regulation
Statutory Auditor of Sumitomo Corporation
Statutory Auditor of Takeda Pharmaceutical Co., Ltd.
Outside Director of Sumitomo Life Insurance Company
Chairman of TDK Corporation
Outside Director of Asahi Glass Company, Limited
Outside Director of TEIJIN LIMITED
President of Nomura Shokusan Co., Ltd.
◎
○
○
○
◎
○
○
○
◎
○
○
○
○
Note:A double circle indicates the committee chair.
50 Nomura Holdings, Inc.
Executive Managing Directors
(As of June 25, 2009)
Title
President
Name
Responsibilities
Kenichi Watanabe
Chief Executive Officer
Deputy President
Takumi Shibata
Chief Operating Officer
Executive Managing Director
Hitoshi Tada
Retail CEO
Executive Managing Director
Hiromi Yamaji
Investment Banking CEO
Executive Managing Director
Akira Maruyama
Global Markets CEO
Executive Managing Director
Shoichi Nagamatsu
Merchant Banking CEO
Executive Managing Director
Atsushi Yoshikawa
Asset Management CEO
Executive Managing Director
Hiroshi Tanaka
Group Compliance Head, CIO
Executive Managing Director
Masafumi Nakada
Chief Financial Officer
Executive Managing Director
Noriaki Nagai
Head of Corporate Office
Senior Managing Directors
(As of June 25, 2009)
Title
Name
Responsibilities
Senior Corporate Managing Director
Hideyuki Takahashi
Global Research
Senior Corporate Managing Director
Shinichiro Watanabe
Group Corporate Communications
Senior Corporate Managing Director
Hiromasa Yamazaki
Global Markets Deputy CEO
Senior Managing Director
Akihito Watanabe
Global Human Resources
Senior Managing Director
David Farrant
Global Human Resources
Senior Managing Director
Yoshihiro Fukuta
Nomura Group Internal Audit
Senior Managing Director
Shigeki Fujitani
Deputy CFO
Senior Managing Director
Naoki Matsuba
Global Equities
Senior Managing Director
David Benson
Chief Risk Officer
Senior Managing Director
Shigesuke Kashiwagi
Regional CEO, Americas
Senior Managing Director
Sadeq Sayeed
Regional CEO, Europe
Senior Managing Director
Kenji Kimura
Regional COO, Europe
Senior Managing Director
Paul Spanswick
Senior Managing Director
Minoru Shinohara
Regional CEO, Asia
Senior Managing Director
Yoshinori Go
Wealth Management, Asia
Annual Report 2009
51
Corporate Social Responsibility
Our Commitment to the Environment
Reducing Nomura’s
Environmental Footprint
At Nomura, we aim to lower our overall environmental impact
and resolve environmental issues. We established an environmen-
tal management system to drive comprehensive efforts in Japan,
while our overseas offices are endeavoring to reduce their environ-
mental footprint through local initiatives.
In Japan, Nomura is expanding the electronic distribution of
prospectuses and other documents to promote paperless opera-
tions. As of the end of May 2009, some 490,000 customers, or
approximately 10 percent of all accounts, had agreed to delivery of
such documents by e-mail.
Relationship with Society
Expanding Financial and
Economic Education
Nomura Group is committed to helping communities and con-
tributing to a better future by supporting the economy, the arts,
and education through its operations.
In times of intense economic and social change, we believe
In addition, we are working to reduce paper usage within
Nomura through the elimination and electronic conversion of busi-
ness forms. In fiscal 2008, we used 867 metric tons of A4 size copy
paper, down approximately 16 percent from fiscal 2006.
As electrical power accounts for the
majority of Nomura’s CO2 emissions, we
have promoted reduced power con-
sumption by switching to energy-saving
equipment when conducting renova-
tions. We began purchasing 5.9 million
kWh in Green Power Certificates annual-
ly in fiscal 2006 to reduce CO2 emissions
even further.
that financial and economic knowledge is important not simply for
making profits, but for proper asset formation from a long-term
perspective. Nomura Group was among the first to educate the
younger generation in finance and the economy in order to nurture
a sound financial market. Starting in 2001 with lectures for univer-
sity students, we currently focus on educational and development
activities for a wide range of age groups, from elementary and jun-
ior high school students to adults.
■Educational Programs Offered
Program
“The Economics Classroom”
“An Introduction to the Economy: The T-Shirt Shop”
Special sponsorship of Nikkei Stock League Contest
Finance courses for university students
Finance seminars for lifelong learning
(All figures approximate)
Relationship with Employees
Achievements
Donated 170,000 textbooks to 2,000 elementary schools
Donated 330,000 copies to 3,300 junior high schools
Assessed the reports of 60,000 participants from 14,000 teams
Attended by 150,000 students
Participation of 200,000 adults
world including Tokyo, this training deepens awareness of the impor-
tance of building relationships with customers and fellow employees.
Creating a Diverse and Inclusive
Work Environment
Nomura Group is committed to creating a working environment
where all employees can realize their full potential.
Collaboration among diverse teams of people is indispensable in
responding to globalization and the increasingly varied needs of cus-
tomers. As part of activities launched in fiscal 2008 to focus on
diversity at offices around the world, we established Diversity &
Inclusion Offices in Europe and Asia-Pacific. We aim to expand busi-
ness opportunities by promoting a corporate culture of mutual
respect among employees.
Employee Development Framework
We are committed to continuously upgrading our employee
development programs so that employees with diverse careers and
values may realize their full potential.
With employment conditions and a reemployment system
adaptable to a variety of work styles, we provide an environment
where employees are able to demonstrate their skills and abilities
and receive performance-based evaluations.
Comprehensive educational and training programs support
employees’ career development, and in fiscal 2008 we launched
training in global business etiquette to promote understanding of dif-
ferences in culture and background. Held at seven offices around the
52 Nomura Holdings, Inc.
Addressing Environmental Issues
through Investing
Companies face increasing demands to address environmental
problems. We consider it crucial to address these issues through
our core business, such as funding technology ventures around the
world that focus on new energies and clean technologies.
In 2008, Nomura International (Hong Kong) Limited (NIHK)
agreed with Moser Baer India Limited, a leading Indian electronic
devices company, to invest in its subsidiary Moser Baer Solar Plc., a
photovoltaic equipment manufacturer. This was NIHK’s second
investment in an Indian enterprise and its first in an environment-
related firm, demonstrating a commitment to the expansion of
environmental business by encouraging the global spread of photo-
voltaic technology and supporting promising manufacturers.
Contributing to the Community
At Nomura, we engage in cultural and educational, welfare,
and volunteer initiatives, and contribute to local economic growth.
Out of 171 branches throughout Japan, 115 reported on their com-
munity activities. Wide-ranging activities matching each communi-
ty’s special characteristics included youth education and environ-
mental conservation initiatives. Our total of 215 community activi-
ties in fiscal 2008 involved more than 8,050 participants.
As an example of initiatives overseas, Nomura International
plc began a partnership with Teenage Cancer Trust, an organiza-
tion supporting teenagers and young adults with cancer and
leukemia, as one link between employees and society.
In addition, as support for the overall development of commu-
nities, we have established partnerships with two schools in eco-
Moreover, we work to ensure an inclusive work environment
for employees by creating support systems for child care and nurs-
ing in response to Japan’s Law for Measures to Support the
Development of the Next Generation.
Respect for Diversity and Human Rights
Nomura Group recognizes that respecting the human rights of
employees working in its offices around the world is its most basic
nomically disadvantaged areas of London (Oaklands and
Southwark Park) to provide assistance for students and instructors
through a variety of activities. Nomura Group also funds the Josh
Lewsey Rugby Academy, which teaches rugby to young people.
responsibility. In order to prevent discrimination and harassment, we
work to deepen human rights understanding on a global level centered
on our Human Rights Education Committee and implement human
rights awareness training for executives and employees on a regular
basis. The training aims to ensure that all employees deepen their
understanding of human rights issues and take a personal interest in
these issues with a commitment
to the fundamental principle of
neither practicing, enduring nor
tolerating discrimination. More
than 14,000 people attended a
total of 29 training sessions held
during fiscal 2008.
Annual Report 2009
53
Financial Highlights
Net Revenue
Income (Loss) before Income Taxes
All business divisions posted a decline in net revenue due to the
pretax basis, losses widened due to factors including one-off
financial market turmoil. In particular, net revenues in Global
losses in Global Markets and expenses related to the Lehman
Markets and Merchant Banking were negative for the year.
Brothers acquisitions. As a result, we booked a loss before
Although Retail and Asset Management were profitable on a
income taxes for the period under review.
(millions of yen)
1,000,000
800,000
600,000
400,000
200,000
0
-200,000
(millions of yen)
400,000
Other
Asset Management
Merchant Banking
200,000
Investment Banking
Global Markets
Retail
0
-200,000
-400,000
-600,000
Other
Asset Management
Merchant Banking
Investment Banking
Global Markets
Retail
3/2005
3/2006
3/2007
3/2008
3/2009
3/2005
3/2006
3/2007
3/2008
3/2009
Net Income (Loss) and ROE
Shareholders’ Equity
We booked a net loss of ¥708.2 billion due to one-off expenses
public offering, shareholders’ equity declined by ¥448.7 billion to
related to the expansion of our wholesale platform and write-
¥1.54 trillion at the end of March 2009 as a result of the net loss
downs on illiquid assets and long-term investment assets.
booked for the full year. Our Basel II capital ratio at the end of
Although we enhanced our capital base by raising capital in a
March was 18.9 percent and our Tier 1 ratio was 11.7 percent.
(millions of yen)
400,000
200,000
0
-200,000
-400,000
-600,000
(%)
16
12
8
4
0
(millions of yen)
2,500,000
2,000,000
1,500,000
Net Income (Loss)
(Left axis)
1,000,000
ROE
(Right axis)
500,000
0
3/2005
3/2006
3/2007
3/2008
3/2009
3/2005
3/2006
3/2007
3/2008
3/2009
54 Nomura Holdings, Inc.
Total Assets
Short-term and Long-term Unsecured Debt
Total assets declined by ¥398.2 billion to ¥24.84 trillion as we
wrote down assets to reflect market conditions and reduced
illiquid assets in order to ensure a more robust balance sheet.
Long-term unsecured debt increased ¥27.2 billion year on year
to ¥4.65 trillion at the end of March 2009 as we shifted from
short-term debt to long-term debt in order to enhance the com-
pany’s financial stability.
(millions of yen)
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
(millions of yen)
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Long-term
Unsecured Debt
Short-term
Unsecured Debt
3/2005
3/2006
3/2007
3/2008
3/2009
3/2005
3/2006
3/2007
3/2008
3/2009
Net Income (Loss) per Share and Total Assets per Share
Dividends per Share
Net income per share was – ¥364.7. Total assets per share
declined by ¥451.6 to ¥591.0.
A quarterly dividend of ¥8.5 per share was paid in the first three
quarters of the fiscal year. Due to the full-year net loss, we
decided to forgo paying a dividend in the fourth quarter. As a
result, the full-year dividend declined by ¥8.5 from the prior year
to ¥25.5 per share.
(yen)
1,400
1,200
1,000
800
600
400
200
0
(yen)
200
0
-200
-400
(yen)
60.0
50.0
40.0
30.0
Total Assets per Share
(Left axis)
20.0
Net Income (Loss)
per Share
(Right axis)
10.0
0.0
3/2005
3/2006
3/2007
3/2008
3/2009
3/2005
3/2006
3/2007
3/2008
3/2009
Annual Report 2009
55
Eight-Year Financial Summary (US GAAP)
For the fiscal years beginning April 1 and ending March 31 of the following year
Note: This financial summary is prepared solely for convenience. Readers are recommended to refer to the Form 20-F.
Operating Results:
Revenue:
Commissions
Fees from investment banking
Asset management and portfolio service fees
Net gain on trading
Gain (loss) on private equity investments
Interest and dividends
Gain (loss) 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
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
Income (loss) from continuing operations before income taxes and cumulative effect of accounting change
Income from discontinued operations before income taxes and cumulative effect of accounting change
Income tax expense
Income (loss) from continuing operations before cumulative effect of accounting change
Gain on discontinued operations
Cumulative effect of accounting change
Net income (loss)
Balance Sheets (Period End):
Cash and cash deposits
Loans and receivables
Collateralized agreements
Trading assets and private equity investments
Other assets
Total assets
Short-term borrowings
Payables and deposits
Collateralized financing
Trading liabilities
Other liabilities
Long-term borrowings
Total liabilities
Total shareholders’ equity
Total liabilities and shareholders’ equity
Cash Flows:
Net cash provided by (used in) operating activities from continuing operations
Net cash provided by (used in) investing activities from continuing operations
Net cash provided by (used in) financing activities from continuing operations
Effect of initial adoption of SOP 07-1 on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Discontinued operations, net
Net increase (decrease) in cash and cash equivalents
3/2002
3/2003
3/2004
¥ 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
172,972
—
4,926
168,046
—
—
¥ 168,046
¥ 775,734
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
¥ (1,170,028)
(42,882)
1,052,851
—
13,018
—
¥ (147,041)
¥ 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
47,409
—
37,295
10,114
—
109,799
¥ 119,913
¥ 955,509
1,137,265
8,603,170
9,286,507
1,186,995
¥21,169,446
¥ 343,837
821,659
11,791,833
3,888,720
411,699
2,269,370
19,527,118
1,642,328
¥21,169,446
¥ 133,892
120,851
(111,189)
—
(8,952)
—
¥ 134,602
¥ 210,216
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
282,676
—
110,347
172,329
—
—
¥ 172,329
¥ 930,637
1,013,636
12,881,752
13,838,396
1,088,545
¥29,752,966
¥ 437,124
1,384,096
17,367,758
5,976,966
415,865
2,385,469
27,967,278
1,785,688
¥29,752,966
¥ (57,125)
20,971
201,267
—
(18,978)
—
¥ 146,135
Note 1: Calculated using the yen-dollar exchange rate of US$1.00=¥99.15, 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, 2009.
2: Figures for the fiscal years ended March 31, 2006, 2007 and 2008 have been restated to reflect the retroactive application of Financial Accounting Standard Board’s Staff Position No. FIN 39-1, “Amendment of FASB Interpretation No. 39” (“FSP FIN 39-1”).
56 Nomura Holdings, Inc.
3/2005
3/2006
3/2007
3/2008
3/2009
3/2009
millions of yen
millions of US dollars*
¥ 221,963
92,322
78,452
201,686
7,744
401,379
15,314
—
—
—
—
75,061
32,316
1,126,237
327,047
799,190
274,988
23,910
81,408
53,534
28,214
—
—
44,681
87,620
594,355
204,835
—
110,103
94,732
—
—
¥ 94,732
¥ 1,047,234
1,221,083
14,389,045
15,600,521
2,230,970
¥34,488,853
¥ 520,605
963,965
21,666,185
5,332,173
1,309,944
2,827,552
32,620,424
1,868,429
¥34,488,853
¥ 356,325
108,819
102,667
304,223
12,328
693,813
67,702
—
—
—
—
88,210
58,753
1,792,840
647,190
1,145,650
325,431
32,931
89,600
55,049
32,790
—
—
48,802
115,447
700,050
445,600
99,413
240,685
256,628
47,700
—
¥ 304,328
¥ 1,555,636
1,099,568
17,027,807
13,630,199
1,381,470
¥34,694,679
¥ 691,759
1,172,489
20,263,012
6,263,514
641,980
3,598,599
32,698,595
2,063,327
¥34,694,679
¥ (360,780)
(103,443)
448,531
—
13,697
(50,262)
¥ (52,257)
¥ (565,214)
(4,678)
829,219
—
16,419
131,100
¥ 406,846
¥ 337,458
99,276
145,977
290,008
47,590
981,344
(20,103)
—
—
—
—
100,126
67,425
2,049,101
958,000
1,091,101
345,936
50,812
109,987
61,279
38,106
—
—
57,184
106,039
769,343
321,758
—
145,930
175,828
—
—
¥ 175,828
¥ 1,054,012
1,406,216
17,838,227
13,094,552
2,184,504
¥35,577,511
¥ 1,093,529
1,262,187
20,599,256
4,588,208
845,522
5,002,890
33,475,260
2,185,919
¥35,577,511
¥ (1,627,156)
(533,813)
1,568,703
—
10,333
—
¥ (581,933)
¥ 404,659
85,096
189,712
61,720
76,505
796,540
(48,695)
—
—
—
—
—
28,185
1,593,722
806,465
787,257
366,805
90,192
135,004
64,841
38,135
—
—
—
156,868
851,845
(64,588)
—
3,259
(67,847)
—
—
¥ (67,847)
¥ 1,434,067
1,187,600
10,391,367
10,278,188
1,944,832
¥25,236,054
¥ 1,426,266
950,381
10,540,731
4,469,942
636,184
5,224,426
23,247,930
1,988,124
¥25,236,054
¥ (647,906)
(102,019)
942,879
(38,427)
(57,319)
—
¥ 97,208
¥ 306,803
54,953
140,166
(128,339)
(54,791)
331,356
(25,500)
—
—
—
—
—
39,863
664,511
351,884
312,627
491,555
73,681
154,980
78,480
31,638
—
—
—
261,339
1,091,673
(779,046)
—
(70,854)
(708,192)
—
—
(708,192)
¥
millions of yen
¥ 1,422,709
1,643,007
8,412,618
11,672,612
1,686,902
¥24,837,848
¥ 1,183,374
1,242,318
10,157,954
4,752,054
479,724
5,483,028
23,298,452
1,539,396
¥24,837,848
millions of yen
¥ (712,629)
(98,905)
999,760
—
(81,896)
—
¥ 106,330
$ 3,094
554
1,414
(1,294)
(553)
3,342
(257)
—
—
—
—
—
402
6,702
3,549
3,153
4,958
743
1,563
792
319
—
—
—
2,635
11,010
(7,857)
—
(714)
(7,143)
—
—
$ (7,143)
millions of US dollars*
$ 14,349
16,571
84,847
117,727
17,014
$250,508
$ 11,935
12,530
102,450
47,928
4,839
55,300
234,982
15,526
$250,508
millions of US dollars*
$ (7,187)
(998)
10,083
—
(826)
—
$ 1,072
Annual Report 2009
57
Major Subsidiaries and Affiliates
(As of July 1, 2009)
JAPAN
NOMURA SECURITIES CO., LTD.
NOMURA RESEARCH & ADVISORY CO., LTD.
NOMURA ASSET MANAGEMENT CO., LTD.
NOMURA BUSINESS SERVICES CO., LTD.
THE NOMURA TRUST & BANKING CO., LTD.
NOMURA FACILITIES, INC.
NOMURA BABCOCK & BROWN CO., LTD.
NOMURA CAPITAL INVESTMENT CO., LTD.
NOMURA INVESTOR RELATIONS CO., LTD.
NOMURA PRINCIPAL FINANCE CO., LTD.
NOMURA INSTITUTE OF CAPITAL MARKETS
RESEARCH
JOINVEST SECURITIES CO., LTD.
NOMURA HEALTHCARE CO., LTD.
NOMURA FUNDS RESEARCH AND TECHNOLOGIES CO., LTD.
NOMURA PENSION SUPPORT & SERVICE CO., LTD.
PRIVATE EQUITY FUNDS RESEARCH AND
INVESTMENTS CO., LTD.
Europe & Middle East
NOMURA EUROPE HOLDINGS PLC (London)
NOMURA INTERNATIONAL PLC (London)
・Madrid Office・Vienna Representative Office
・Dubai Office・Qatar Office
NOMURA CODE SECURITIES LTD. (London)
NOMURA BANK INTERNATIONAL PLC (London)
・ Italy Office
BANQUE NOMURA FRANCE (Paris)
NOMURA BANK (LUXEMBOURG) S.A.
NOMURA BANK (DEUTSCHLAND) GMBH (Frankfurt)
MAINTRUST KAG (Frankfurt)
NOMURA BANK (SWITZERLAND) LTD. (Zurich)
・ Geneva Office
NOMURA ITALIA S.I.M.p.A. (Milan)
NOMURA NEDERLAND N.V (Amsterdam)
OOO NOMURA (Moscow)
NOMURA SWEDEN AB (Umea)
NOMURA INVESTMENT BANKING (MIDDLE EAST) B.S.C. (c) (Bahrain)
NOMURA (CIS) LIMITED (London)
・Moscow Office
NOMURA CORPORATE ADVISORY (CENTRAL EUROPE) PRIVATE
COMPANY LTD. (Budapest)
NOMURA CORPORATE ADVISORY (CENTRAL & EASTERN EUROPE)
Sp.z.o.o. (Warsaw)
NOMURA ISTANBUL CORPORATE ADVISORY SERVICES AS
NOMURA FUNDING FACILITY CORPORATION LIMITED (Dublin)
NOMURA GLOBAL FUNDING PLC (London)
NOMURA EUROPE FINANCE N.V. (Amsterdam)
NOMURA PRINCIPAL INVESTMENT PLC (London)
NOMURA CAPITAL MARKETS PLC (London)
Americas
NOMURA HOLDING AMERICA INC. (New York)
NOMURA SECURITIES INTERNATIONAL, INC. (New York)
・ San Francisco Office・São Paulo Representative Office・Boston Office
NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC. (New York)
NOMURA AMERICA MORTGAGE FINANCE, LLC (New York)
NOMURA CREDIT AND CAPITAL INC. (New York)
NOMURA DERIVATIVE PRODUCTS, INC. (New York)
NOMURA FUNDS RESEARCH AND TECHNOLOGIES AMERICA, INC. (New York)
NOMURA INTERNATIONAL TRUST COMPANY (Piscataway)
NOMURA SECURITIES (BERMUDA) LTD.
NOMURA CANADA INC. (Toronto)
NOMURA GLOBAL FINANCIAL PRODUCTS INC. (New York)
NOMURA REALTY ADVISORS, INC. (New York)
NOMURA ASSET MANAGEMENT USA INC.
Instinet
NHI ACQUISITION HOLDING INC. (NEW YORK)
INSTINET INCORPORATED (New York)
Asia-Pacific
NOMURA ASIA HOLDING N.V. (Amsterdam)
NOMURA INTERNATIONAL (HONG KONG) LIMITED
・Seoul Branch Office・Taipei Branch Office・Hanoi Representative Office
NOMURA SECURITIES (HONG KONG) LIMITED
NOMURA ASIA LTD (Cayman)
NOMURA SINGAPORE LIMITED
NOMURA SECURITIES SINGAPORE PTE. LTD.
NOMURA COMMODITIES SINGAPORE PTE. LTD.
NOMURA MALAYSIA SDN. BHD. (Kuala Lumpur)
NOMURA AUSTRALIA LIMITED (Sydney)
NOMURA SECURITIES PHILIPPINES, INC.
P.T. NOMURA INDONESIA (Jakarta)
CAPITAL NOMURA SECURITIES PUBLIC
COMPANY LIMITED (Bangkok)
NOMURA STRUCTURED HOLDINGS PLC (Dublin)
NOMURA CORPORATE ADVISORY (SHANGHAI) CO., LTD.
NOMURA EUROPEAN INVESTMENT LIMITED (London)
NOMURA FINANCIAL ADVISORY AND SECURITIES (INDIA)
PRIVATE LIMITED (Mumbai)
NOMURA ASIA INVESTMENT (INDIA POWAI) PTE. LTD.
NOMURA SERVICES INDIA PTE.LTD.
NOMURA ASSET MANAGEMENT SINGAPORE LTD.
NOMURA ASSET MANAGEMENT MALAYSIA SDN. BHD.
NOMURA ASSET MANAGEMENT HONG KONG LTD.
58 Nomura Holdings, Inc.
Nomura Securities Domestic Network
(As of July 1, 2009)
Kanto (42 Branches)
・Ota Branch
・Sagamihara Branch
・Saitama Branch
・Shiki Branch
・Shinyokohama
Branch
・Shinyurigaoka
Branch
・Takasaki Branch
・Tama Plaza Branch
・Tokorozawa Branch
・Totsuka Branch
・Tsuchiura Branch
・Tsukuba Branch
・Tsurumi Branch
・Urawa Branch
・Utsunomiya Branch
・Yachiyodai Branch
・Yokohama
Bashamichi Branch
・Yokohama Branch
・Yokohama-eki
Nishiguchi Branch
・Yokosuka Branch
・Aobadai Branch
・Atsugi Branch
・Chiba Branch
・Fujisawa Branch
・Funabashi Branch
・Futamatagawa
Branch
・Hiratsuka Branch
・Ichikawa Branch
・Kamakura Branch
・Kashiwa Branch
・Kawagoe Branch
・Kawaguchi Branch
・Kawasaki Branch
・Kofu Branch
・Konandai Branch
・Koshigaya Branch
・Kumagaya Branch
・Matsudo Branch
・Mito Branch
・Odawara Branch
・Omiya Branch
・Omiya Nishiguchi
Branch
Hokuriku
(4 Branches)
・Fukui Branch
・Kanazawa Branch
・Niigata Branch
・Toyama Branch
Kinki (31 Branches)
・Akashi Branch
・Daito Branch
・Esaka Branch
・Gakuenmae Branch
・Higashiosaka
Branch
・Himeji Branch
・Hirakata Branch
・Ibaraki Branch
・Kawanishi Branch
・Kishiwada Branch
・Kobe Branch
・Kurakuen Branch
・Kyoto Branch
・Kyoto Branch,
Kyoto Station
Building, The Cube
Office
・Nanba Branch
・Nara Branch
・Nishinomiya
Branch
・Okamoto Branch
・Osaka Branch
・Otsu Branch
・Sakai Branch
・Senri Branch
・Takarazuka Branch
・Takatsuki Branch
・Tennoji-eki Branch
・Toyonaka Branch
・Tsukaguchi Branch
・Uehonmachi
Branch
・Umeda Branch
・Umeda Branch,
Diamor Office
・Wakayama Branch
Chugoku
(8 Branches)
・Fukuyama Branch
・Hiroshima Branch
・Kurashiki Branch
・Matsue Branch
・Okayama Branch
・Shimonoseki Branch
・Tokuyama Branch
・Yonago Branch
Kyushu
(10 Branches)
・Fukuoka Branch
・Kagoshima Branch
・Kitakyushu Branch
・Kumamoto Branch
・Kurume Branch
・Miyazaki Branch
・Nagasaki Branch
・Oita Branch
・Saga Branch
・Sasebo Branch
Shikoku (4 Branches)
・Kochi Branch
・Matsuyama Branch
・Takamatsu Branch
・Tokushima Branch
Chubu (16 Branches)
・Gifu Branch
・Hamamatsu Branch
・Kanayama Branch
・Kariya Branch
・Kasugai Branch
・Matsumoto Branch
・Nagano Branch
・Nagoya Branch
・Nagoya-ekimae
Branch
・Numazu Branch
・Okazaki Branch
・Shizuoka Branch
・Toyohashi Branch
・Toyota Branch
・Tsu Branch
・Yokkaichi Branch
Hokkaido (4 Branches)
・Asahikawa Branch
・Hakodate Branch
・Kushiro Branch
・Sapporo Branch
Tohoku (8 Branches)
・Akita Branch
・Aomori Branch
・Fukushima Branch
・Hachinohe Branch
・Koriyama Branch
・Morioka Branch
・Sendai Branch
・Yamagata Branch
Tokyo Metropolitan Area (42 Branches)
・Chofu Branch
・Denenchofu
Branch
・Fuchu Branch
・Gotanda Branch
・Hachioji Branch
・Hamadayama
Branch
・Hatagaya Branch
・Head Office
・Iidabashi Branch
・Ikebukuro Branch
・Ikebukuro
Metropolitan Plaza
Branch
・Jiyugaoka Branch
・Kamata Branch
・Kanda Branch
・Kichijoji Branch
・Kinshicho Branch
・Koishikawa Branch
・Koiwa Branch
・Kojimachi Branch
・Kokubunji Branch
・Machida Branch
・Mita Branch
・Nakameguro
Branch
・Nakano Branch
・Nerima Branch
・Ogikubo Branch
・Omori Branch
・Sakurashinmachi
Branch
・Sangenjaya Branch
・Seijo Branch
・Senju Branch
・Shibuya Branch
・Shinbashi Branch
・Shinjuku Branch
・Shinjuku Nomura
Building Branch
・Shinjuku-eki
Nishiguchi Branch
・Tachikawa Branch
・Tamagawa Branch
・Tanashi Branch
・Tokyo Branch
・Toranomon
Branch
・Ueno Branch
Okinawa
(1 Branch)
・Naha Branch
Annual Report 2009
59
Corporate and Other Data
Corporate Data
Company Name
Nomura Holdings, Inc.
President & CEO
Kenichi Watanabe
Date of Incorporation
December 25, 1925
Paid-in Capital
¥321.7 billion (As of March 31, 2009)
Head Office
1-9-1, Nihonbashi, Chuo-ku, Tokyo
Group Employees
25,626 (As of March 31, 2009)
103-8645, Japan
Share Data
Common Stock Issued
Number of Shareholders
2,661,092,760 shares (As of March 31, 2009)
383,795 (Unit shareholders: 360,105) (As of March 31, 2009)
Listing
Transfer Agent and Registrar
The common shares of Nomura Holdings, Inc. are listed on the
Mitsubishi UFJ Trust and Banking Corporation
Tokyo, Osaka, Nagoya and Singapore stock exchanges. The
Corporate Agency Department: +81 (3) 5391-1900
shares are also listed on the NYSE in the form of American
Depositary Shares (ADSs) evidenced by American Depositary
Receipts (ADRs). Each ADS represents one share of Common
Depositary for American Depositary Receipts (ADRs)
The Bank of New York Mellon
Depositary Receipts Division: +1 (866) 680-6825
http://www.adrbnymellon.com
Ratio: 1 ADR = 1 ordinary share
Component Ratio of Shareholders
Stock. (As of March 31, 2009)
Securities Code
8604 (Tokyo Stock Exchange)
NMR (New York Stock Exchange)
Major Shareholders (Top 10)
Shareholder Name
Japan Trustee Services Bank, Ltd.
(Trust Account)
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Japan Trustee Services Bank, Ltd.
(Trust Account 4G)
The Chase Manhattan Bank N.A.
London S.L.Omnibus Account
The Bank of New York Mellon
as Depositary Bank for DR Holders
Japan Trustee Services Bank, Ltd.
(Trust Account 4)
The Chase Manhattan Bank 385036
State Street Bank and Trust Company
505103
State Street Bank and Trust Company
505225
Investors Bank and
Trust Company (West) - Treaty
Individuals and Others
Foreign Legal Entities
Other Legal Entities
Financial Institutions
Shares Held
(thousand shares)
Percentage of
Issued Shares (%)
（%）
100
164,008
153,837
143,151
49,116
42,234
32,653
28,695
24,508
22,202
20,480
6.16
5.78
5.38
1.85
1.59
1.23
1.08
0.92
0.83
0.77
80
60
40
20
0
3/2005 3/2006 3/2007 3/2008 3/2009
Note: The company had 55,128 thousand shares of treasury stock as of March 31,
2009 which are not included in the Major Shareholders list above.
Date of Record for Dividend Payments
Dividend Payment Date
Second Quarter
September 30
December 1
Year-end
March 31
June 1
Other
Credit Rating
S&P
Moody’s
R&I
JCR
*As of May 27, 2009
60 Nomura Holdings, Inc.
Nomura Holdings
Nomura Securities
Long-term
Short-term
Long-term
Short-term
BBB+
Baa2
A+
AA-
A-2
―
a-1
―
A-
Baa1
A+
AA-
A-2
P-2
aｰ1
―
For More Information
Investor Relations Department
Nomura Holdings, Inc.
Otemachi Nomura Building 2-1-1, Otemachi, Chiyoda-ku, Tokyo 100-8170, Japan
Tel. +81 (3) 5255-1000
www.nomuraholdings.com/investor/
Nomura Holdings Website Top Page
www.nomura.com
News Releases
Click here to see the latest news releases,
including the quarterly earnings reports
of Nomura Holdings.
Investor Relations
www.nomuraholdings.com/investor/
Summary and Facts
IR Library
News Release Subscription Services
Our e-mail alert service informs sub-
scribers when a news release is issued or
new content is uploaded to our website.
Annual Report 2009
61