Nomura Annual Report 2010

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FY2010 Annual Report · Nomura

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Annual Report

for the Year Ended March 31, 2010

2010

Nomura Holdings, Inc.

Profile

The activities of the Nomura Group are centered around three key business

segments: Retail, Asset Management, and Wholesale. Since its founding,

Nomura’s corporate philosophy, “prospering together with our clients,” has

remained unchanged. We are always “customer centric” and offer services

of world-class quality to our customers around the world.

Forward-Looking Statements

This annual report contains forward-looking statements about the

future plans, strategies, beliefs, and performance of the Nomura Group.

These forward-looking statements are not historical facts. They are

expectations, estimates, forecasts, and projections based on informa-

tion 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 financial

industry, laws and regulations, and the tax system. As such, actual

results may differ materially from those projected.

Contents

Message from the CEO

Interview with the COO

Message from the CFO

At a Glance

Retail

Asset Management

Wholesale

Global Markets

Investment Banking

Global Research

Corporate Governance
and Internal Control System

Risk Management

Board of Directors/
Executive and Senior Managing Directors

Corporate Social Responsibility

Five-Year Financial Summary (US GAAP)

Major Subsidiaries and Affiliates

Nomura Securities Domestic Network

Corporate and Other Data

Message from the CEO

“We navigated our way through the difficulties of the
financial crisis and returned to profit last fiscal year.
We are now further developing our client-focused
strategy to position Nomura as Asia’s top-tier global
investment bank.”

FY2009 in Review
Business Environment

In the fiscal year ended March 31, 2010, the global economy emerged from the finan-

cial crisis and began to stabilize. However, the recovery has been patchy, with growth

in developed markets remaining slow while Asia and other emerging markets show

strong growth.

At the same time, fiscal imbalances and geopolitical risk are increasing around

the world, indicating the need for continued caution over the nascent recovery.

Governments are also stepping up their involvement in financial regulation.

In addition to these external factors, the financial services industry remains highly

competitive as our global peers recover from the financial crisis, steadily increase

their performance, and adopt new strategies.

Despite this tough environment, Nomura made significant progress in achieving

its strategic goals in fiscal 2009.

Financial Performance

Nomura came together as one firm over the past year and returned to profit. Full-year

net revenue was ¥1.15 trillion, income before income taxes was ¥105.2 billion, and net

income attributable to Nomura Holdings was ¥67.8 billion.

Retail and Asset Management continued to deliver stable earnings. Global Markets

returned to profit and significantly progressed its global business platform buildout.

Investment Banking faced a tough environment but performance improved in the

second half of the year due to our involvement in public offerings by Japanese

corporates.

Our international operations continued to gain traction, with full-year international

revenues nearly equaling domestic revenues. Our Wholesale business is now estab-

lished as a revenue driver, complementing our Retail business. This progress has

positioned Nomura to deliver our client-focused strategy globally and move with speed

to become a world-class organization.

To further enhance our financial position, we raised fresh capital through two global

offerings in 2009, giving us a solid base to continue expanding our global platform.

As a result, we reported a consolidated total capital ratio of 24.3 percent and a Tier 1

capital ratio of 17.3 percent at the end of March 2010.

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Message from the CEO

Diversity and Talent Development

Our acquisition of Lehman Brothers’ operations in the Asia-Pacific, Europe, and

the Middle East gave us access to a global business platform. We have continued to

build out this platform, and we now have a total head count of over 26,000 people

representing 70 nationalities. Approximately 40 percent of our global workforce is

composed of non-Japanese nationals.

We have focused on creating globally integrated human resources and compensa-

tion systems and worked to raise transparency so all our people can put their individ-

ual skills to the best use. We believe the quickest way to integrate a diverse group of

people is to pay for performance and evaluate everyone under the same standards,

regardless of nationality or gender. A specific example of this can be seen in our

Wholesale Division and head office departments in Japan. We offered employees the

option of moving to a compensation scheme based on performance. Nearly half of

those eligible have opted for this scheme.

The result is that we are truly one firm. This swift integration has provided us with

a source of strength to overcome the unprecedented turmoil in the financial industry.

FY2010 Strategic Priorities
Management Vision

When I took over as president and CEO in April 2008, I said we would create change,

be world-class, and move with speed.

We aim to create change by further developing our client-focused strategy. Change

encourages development of the financial markets, which, in turn, stimulates the

household sector, industry, and the overall economy.

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Recently, there has been an increase in industrial and corporate realignments, cross-

border mergers and acquisitions, and capital raisings as many companies around the

world seek competitive advantages. At the same time, retail investors increasingly

demand world-class products and services, and institutional investors require sophisti-

cated expertise for order execution and research. As such, we must constantly deliver

world-class quality products and services, with speed, that meet the needs of our

diverse client base.

Next Phase of Growth

We are moving to the next phase of growth. Now that we have returned to profit,

we are looking to further increase our profitability.

To create the most effective organizational structure to achieve this, we established

the Wholesale Division in April 2010 to ensure a consistent strategy between the prod-

uct areas of Global Markets and Investment Banking and each region of the organiza-

tion. This allows us to respond swiftly to the increasingly global needs of our clients

and to provide services that anticipate future trends.

Our main target markets for further expansion are the United States and Asia.

Although the United States is the world’s largest market, it is still a growth market for

Nomura, full of exciting opportunities. In the high growth markets of Asia, there is

strong demand for products and services, and we are building out our business

platform to tap this demand.

In terms of business lines, we will particularly focus on client on-boarding in Global

Markets. We are seeing the rise of a new generation of institutional investors in the

United States, Europe, and across Asia including China. It is essential that we leverage

this opportunity to further increase our growing client base.

In Investment Banking, we are winning mandates for IPOs of fast-growing Asian

companies. In the United States, we are working with globally active corporates, and

we are looking to increase our involvement in high-profile deals, such as cross-border

M&A transactions. In Japan, we expect to see an increase in outbound M&A deal

activity into Asia.

Our Retail business in Japan holds a commanding market share. To further boost

client trust in Nomura, we are improving our products and services. We will continue

to take the initiative to deliver innovative products, such as our highly popular

investment trusts that offer currency diversification.

A common element to all our businesses, products, and services is the trust that

our clients place in Nomura when they come to us for advice. We are happy if our

clients come to us, even for a second opinion. That gives us an opportunity to show

them how we can respond precisely to their specific needs and offer a high-value-

added alternative.

Message from the CEO

Management Strategy to Raise Corporate Value

As part of our medium- to long-term strategy, market share is a key global perfor-

mance indicator for us. We closely analyze our market share from a number of angles,

including products and client segments. Our Retail, Asset Management, and Wholesale

divisions work together to increase our share in different markets and products. We

must provide services that keep our clients satisfied, while also staying ahead of our

clients to offer them the solutions they need.

We do not expect developed markets to grow significantly in the future. This means

we can achieve growth mainly by increasing market share. First, we need to develop

our operations in markets with the potential for generating large revenues and win

market share in areas where competition has decreased as a result of the financial

crisis. We will continue to invest by hiring top-class professionals, providing training

opportunities, and building the necessary IT infrastructure.

In emerging markets, it is difficult to have a single strategic approach since each

market has a different regulatory framework and systems. We are structuring the firm

to ensure we have the optimal business approach for each country.

To help oversee the management of the firm as we grow internationally, we recently

appointed two non-Japanese outside directors with extensive experience running

global businesses. Of the 12 members on the Nomura Holdings Board of Directors,

seven are now outside directors. We believe that having a majority of outside directors

on the Board will further increase transparency and enhance governance of the firm.

Shareholder Returns

We aim to continuously increase shareholder value while maintaining sufficient capital

to take advantage of business opportunities as they arise. We also regularly review

capital levels to ensure we have sufficient capital in relation to risk levels in our

businesses and to clear any regulatory hurdles.

We determine shareholder returns by taking into account a comprehensive range of

factors, such as increasing shareholder value and paying dividends, the direction of the

global financial regulatory environment, and our consolidated financial performance.

Accordingly, our annual consolidated dividend for the fiscal year ended March 2010

was 8 yen per share.

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Higher Focus on Clients

I believe the best way to focus more on our clients is to stay abreast of changing

trends. Nomura intends to go one step further and create trends. That is why we

focus on creating change, while also aiming to be world-class and moving with speed.

By being responsive to change, we can create positive changes ourselves. We need to

change ourselves in order to provide the high-value-added services that our clients

demand.

Looking ahead, we will continue to collaborate across divisions and regions for

the benefit of our clients, the market, and our shareholders to deliver results, raise our

corporate value, and provide returns to our shareholders.

August 2010

Kenichi Watanabe

President & Chief Executive Officer

Interview with the COO

Takumi Shibata

Deputy President and COO

“Last year was the first full year of operations for our
new global platform. This year, we are continuing our
global push. We have established a Wholesale Division
to enhance our services and ensure closer collabora-
tion, positioning the firm for further momentum.”

Q How do you rate Nomura’s performance in FY2009?
A Our Retail business saw robust sales of investment trusts and expanded its

client base through the initial public offering of Dai-Ichi Life and other transactions.

In Global Markets, our new platform was up and running in the Asia-Pacific and

EMEA, and we started rebuilding our US business in the second half of the year. Our

Equities business is producing results. We ranked number one on the Tokyo and

London stock exchanges. In Fixed Income, we jumped up the broker rankings in

Japan, elsewhere in Asia, and Europe. Investment Banking won a number of equity

financing mandates for Japanese companies, and internationally we worked on many

high-profile deals, such as M&A advisor to Anglo American.

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Q How is globalization changing the market environment?
A The biggest changes are in the regulatory environment. But these changes

won’t stop globalization.

At the global level, the Basel III bank regulations are looming and in the United

States the provisions of the Dodd-Frank Act are coming into effect. These moves are

aimed at limiting risk-taking, while also making financial institutions increase capital

levels in line with risk. We have been positioning the firm for this new regulatory

environment. We have already enhanced our capital base, reduced our leverage, and

raised long-term debt.

The new regulations may also require banks to split up their commercial and

investment banking operations. Given our current structure, this would be a welcome

change for Nomura.

Looking ahead, we expect the regulators to increase pressure on both investment

banks and commercial banks by stipulating that liquidity be managed regionally. This

increased regional regulatory pressure seems to hint at a shift away from globalization.

But it won’t stop investors and corporates from continuing to globalize. So, Nomura

has to globalize as well in order to meet the needs of our clients. We will step up

our efforts to globalize from within, shifting to a global focus by promoting diversity

and talent development.

Q What do you see as Nomura’s competitive advantage?

How do you intend to become a top-tier bank?

A Many Japanese investors invest globally. And the proportion of overseas sales

at Japanese companies continues to increase. Because investors and corporates are

becoming more global, we need to globalize our business to respond to their needs.

We intend to be recognized as one of the world’s leading financial institutions.

Roughly half of our revenues now comes from abroad, and our new globally linked

network is also creating benefits for the Company in Japan. For instance, prior to

the Lehman Brothers acquisitions, our share on the Tokyo Stock Exchange was about

6 percent. That jumped to 12 percent as of March 2010. By diversifying our services for

overseas institutional investors, we were able to raise our profile in the Japanese equities

space and increase trading volumes. Our enhanced global network also bolstered our

distribution capabilities for underwriting global financing deals for Japanese companies.

Of all the global top-tier firms, we are the only one that doesn’t have a full-scale

presence in the United States. However, we have a long history there. We entered the

United States just one year after we commenced operations. We will extend that legacy

by rebuilding our US business and developing our franchise in this important market.

By establishing a US franchise to complement our operations in our home market of

Japan, our new platform in Europe, and our presence in the growing markets of Asia,

Interview with the COO

we will be able to position Nomura as a formidable competitor among the global top-

tier firms.

Q Why did you decide to establish the Wholesale Division?
A It is the normal structure for a global financial institution. The new organization

allows Wholesale to collaborate better with Retail and Asset Management, enhancing

the quality of our client services and product capabilities.

Just as you can’t make a good car without good components, we have focused

on building up the parts of our business platform, establishing our Fixed Income,

Equities, and Investment Banking businesses. To gain further momentum globally,

we integrated the management of these businesses and established the Wholesale

Division. This structure ensures greater collaboration across businesses and regions,

improving overall performance by creating synergies and increasing revenues on

a firm-wide basis.

Q Why did you decide to build up your Wholesale business

in the United States?

A The United States represents a substantial amount of the global financial mar-

kets. It is essential that we reinforce our presence in this key market. In the past, our

US operations focused on capital-intensive local businesses, such as commercial real

estate securitization. These businesses were not based on client flows and were

regional rather than global. That had its limitations. Our approach now is to establish

our US business as an integrated part of our global network for client-flow businesses.

We are already seeing tangible results. In Fixed Income, we are gaining traction as a

Primary Dealer in US Treasuries and in the underwriting of collateralized mortgage

obligations. We have also seen a jump in fixed income trading volumes. In Equities,

we have started building a track record in program trading and convertible bond trad-

ing, and we plan to establish a research sales team for US equities during the current

fiscal year. In Investment Banking, we have worked on US cross-border M&A deals,

and we can expect to see more transactions come through the pipeline.

Q How are the Retail and Asset Management divisions

performing?

A Retail is performing well. We are redoubling our area-specific marketing efforts.

Retail customers require different approaches depending on their specific circumstanc-

es. Financial products must be tailored around individual client requirements. That’s

why we are strengthening our client-focused services.

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Asset Management is seeking growth opportunities outside Japan. We are setting

up LIC Nomura Mutual Fund in India. We are working with Islamic investors through

our Islamic finance asset management company in Malaysia. And we are building a

platform for mutual funds in Europe and the United States with the aim of distributing

our own products locally.

Q What is your focus for FY2010?
A As one of the few financial institutions that can provide Japanese clients with

a full range of services, including investment advice, product supply, fund-raising, and

corporate finance advice through a single global platform, we will continue to provide

our clients with the best possible services.

In Europe, we will leverage our new business platform to further increase revenues.

In the United States, we will build a business platform that positions Nomura as a truly

global firm. We will take a long-term approach in Asia as the region’s economies are

still growing and the capital markets will continue to develop.

However, our main focus in each region is our clients. The recent financial crisis

was the result of an excessive pursuit of short-term profits. The fundamental job of

market intermediaries is to provide appropriate investment advice to clients and supply

liquidity to the market. We are determined to refocus on these basics. Our Retail and

Wholesale businesses will provide services to clients in highly liquid product areas,

and we will continue to put our clients at the heart of our business to deliver services

that accurately meet their needs.

Message from the CFO

Masafumi Nakada

Chief Financial Officer

“We aim to use our robust financial position to become
Asia’s global top-tier investment bank.”

Net Revenue

Income (Loss) before Income Taxes

(billions of yen)
1,500

(billions of yen)
600

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1,200

900

600

300

–300

400

200

–200

–400

–600

–800

–1,000

3/2006

3/2007

3/2008

3/2009

3/2010

3/2006

3/2007

3/2008

3/2009

3/2010

Other

Wholesale

Asset Management

Retail

Other

Wholesale

Asset Management

Retail

Robust Financial Position
We moved swiftly to reduce our balance sheet in response to changes in the financial

markets. Last year, we raised capital twice to ensure we would have one of the healthi-

est and strongest balance sheets in the industry. While the recent crisis sent many

financial institutions into turmoil, forcing them to bolster their balance sheets quickly,

we enhanced our financial position before the competition.

At the end of March 2010, Nomura had shareholders’ equity of ¥2.1 trillion, leverage

of 15.2 times, and a Tier 1 common ratio of 17.3 percent, putting us in a very solid

financial position. We are also well placed to meet the expected regulatory tightening

over the next few years. By maintaining this sound financial base and leveraging it

for maximum benefit, we can capture business opportunities as they arise.

Balance Sheet Management to Support Growth
It is essential for financial institutions to supply liquidity to clients. When liquidity

dried up during the financial crisis, funds stopped flowing. This situation poses the

biggest risk to the economy. To ensure that financial institutions fulfill their role in

the economy, they need to make effective use of their balance sheets.

To put your balance sheet to work to achieve growth, you have to grow it. In antici-

pation of a tighter regulatory environment, we intend to maintain a balance between

our assets and liabilities and enhance the quality of our balance sheet as we expand

our business.

Increasing Highly Liquid Assets

In line with the expansion of our client-focused businesses, we plan to increase our

assets, mainly in the form of highly liquid trading assets. Tighter regulations on liquid-

ity risk management are being discussed as part of the proposals under Basel III. We

are equipped to meet these requirements. Over the past year, Nomura has increased

liquidity from ¥2.4 trillion in March 2009 to ¥5.2 trillion at the end of March 2010.

Net Income (Loss) and ROE

Shareholders’ Equity

(billions of yen)
400

200

–200

–400

–600

–800

(%)
16

(billions of yen)
2,500

2,000

1,500

1,000

500

3/2006

3/2007

3/2008

3/2009

3/2010

3/2006

3/2007

3/2008

3/2009

3/2010

Net Income (Loss) (Left axis)

ROE (Right axis)

Message from the CFO

At the same time, we reduced level 3 assets to 44 percent of Tier 1 capital as of March

2010, down from 123 percent in March 2009.

Raising Long-term Debt, Diversifying Funding across Regions and Currencies

We are increasingly funding our operations with long-term debt. As our international

business expands, we are also diversifying our sources of funds across regions and

currencies. At the end of March 2010, 46 percent of our funding was in US dollars

and Euros, while total funding outside Japan reached 52 percent and long-term debt

raised outside Japan accounted for 22 percent of our total.

Enhancing Corporate Value
We returned to profit in the fiscal year ended March 2010 and reported an average

return on equity of 3.7 percent. We are working to improve our return on equity by

directly addressing each component of it.

Net Revenue/Total Assets

Our return on assets at the end of March 2010 was 4 percent. We intend to gradually

improve this, bringing it above 4 percent over the medium term.

Since our businesses are very client-focused, most of our assets are highly liquid.

This will help us remain flexible enough to respond to changes in the business

environment and our clients’ needs.

To improve our return on assets, we aim to increase the turnover of assets on our

trading book by further expanding client trades.

Net Income Margin

A key component of raising our return on equity is to improve our net income margin.

Since revenues are currently near break-even, we can do this relatively easily by

increasing revenues. On the expense side, the guaranteed bonuses we paid to certain

people who joined us from Lehman Brothers have been paid, and we now have an

Total Assets

Short-term and Long-term Unsecured Debt

(billions of yen)
40,000

(billions of yen)
10,000

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30,000

20,000

10,000

3/2006

3/2007

3/2008

3/2009

3/2010

8,000

6,000

4,000

2,000

3/2006

3/2007

3/2008

3/2009

3/2010

Long-term Unsecured Debt

Short-term Unsecured Debt

integrated compensation system that reflects long-term performance. This makes

it easier to maintain the firm’s ratio of compensation and benefits to net revenue

at an appropriate level. At the same time, we continue to cut unnecessary costs

and increase efficiency.

Becoming Top Tier

By increasing revenues and lowering our break-even point, we aim to ensure contin-

ued profitability and create a base to move the Company to the next phase. To do so,

we will pursue further growth while maintaining sufficient capital to respond to regu-

latory tightening, raising long-term debt, and continuing our focus on cutting costs.

Total NHI Shareholders’ Equity per Share and Net Income (Loss) per Share

Dividends per Share

(yen)
1,500

1,200

900

600

300

3/2006

3/2007

3/2008

3/2009

3/2010

Total NHI Shareholders’ Equity per Share (Left axis)

Net Income (Loss) per Share (Right axis)

(yen)
200

100

–100

–200

–300

–400

(yen)
60

3/2006

3/2007

3/2008

3/2009

3/2010

At a Glance

Outline of Divisions

Retail

Delivers a broad range of financial services to its indi-
vidual and corporate clients through its 173 branch
offices,* call centers, and online services.
*As of July 31, 2010

Net Revenue

Income before Income Taxes

(billions of yen)
500

(billions of yen)
200

400

300

200

100

3/2006

3/2007

3/2008

3/2009

3/2010

150

100

Fiscal Year Ended March 2010
(cid:129) Net Revenue:

¥388.3 billion (+33.0% YoY)
(cid:129) Income before Income Taxes:
¥113.4 billion (+521.6% YoY)

Net Revenue

Income before Income Taxes

(billions of yen)
100

(billions of yen)
50

Asset Management

Manages investment trusts for retail investors and pro-
vides investment advisory for institu tional investors.

3/2006

3/2007

3/2008

3/2009

3/2010

Fiscal Year Ended March 2010
(cid:129) Net Revenue:

¥70.4 billion (+17.7% YoY)

(cid:129) Income before Income Taxes:
¥18.6 billion (+152.0% YoY)

Net Revenue

Income (Loss) before Income Taxes

(billions of yen)
800

(billions of yen)

800

400

–400

–800

400

–400

–800

3/2006

3/2007

3/2008

3/2009

3/2010

Fiscal Year Ended March 2010*
(cid:129) Net Revenue:
¥789.5 billion

(cid:129) Income before Income Taxes:

¥175.2 billion

Wholesale

Consists of Global Markets, Investment Banking, and
other client-facing non-retail businesses.
Global Markets focuses on sales and trading of
bonds, stocks, currencies, commodities, and related
derivatives for institutional investors around the
world.

Investment Banking offers a broad range of finan-
cial products and services, including equity and debt
financing, advisory services, and tailor-made solutions
to corporations, financial institutions, governments,
and public-sector organizations around the world.

* Fiscal Year Ended March 2010 of the Wholesale Division is the sum of the former Global Markets, Investment Banking, and Merchant
Banking divisions pursuant to the organization changes in April 2010.

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Recent Achievements

Strategy: Next Phase of Our Growth

(cid:129) Client accounts totaled 4.88 million as of March 31, 2010,
an increase of 416 thousand accounts year on year, the
largest increase in the past 10 years.

(cid:129) Client assets increased from ¥59.3 trillion to ¥73.5 trillion

as of March 31, 2010, mainly contributed by stock assets.

(cid:129) Monthly average net purchases exceeded ¥1 trillion, with
increased sales of investment trusts, and stocks matching
corporate fund-raising activities.

(cid:129) Aims to expand its client assets and accounts,
and to achieve further growth by gaining trust
and confidence from clients

(cid:129) Now focusing on basic strategies: sales channel
strategy, marketing strategy, branch and area
strategy, product and services strategy, human
resources and training strategy, and IT strategy.
By placing them at the core of our business
execution, we can further expand our business.

(cid:129) Total assets under management totaled ¥23.4 trillion as
of March 31, 2010, and increased from ¥20.2 trillion in the
prior year.

(cid:129) Launched new public investment trusts matched to investors’

needs and further expanded lineup of ETF products

(cid:129) New mandates from international clients for a wide range
of products, including Japanese and Asian equities and
global bonds

(cid:129) Took “Go Back to Basics” as one of our key
themes for the fiscal year. Executed business by
focusing on three basic principles: “to generate
excess return in our actively managed products,”
“to anticipate and respond to the needs of
our clients,” and “to operate with a global
perspective.”

(cid:129) Vision to be a world-class asset management
firm with a strong competitive edge in Japan
and elsewhere in Asia, offering the best available
products and services.

(cid:129) With the acquisition of selected businesses from Lehman
Brothers in 2008 and subsequent expansion of our footprint
in all major financial markets and with international clients,
Global Markets has gained significant scale to serve clients
globally across all major asset classes.

(cid:129) In Fixed Income, rankings ascended in Asia and Europe,
complementing our stable, market-leading position in Japan.
(cid:129) In Equities, achieved leading position on several stock

exchanges and analyst rankings

(cid:129) Top 10 in the Global Investment Banking Revenue Ranking

and Global Equity and Equity-Related Bookrunner table

(cid:129) Maintains leading position in Japan, and also advised major

deals in Europe and Asia

(cid:129) Fixed Income: focus on establishing Nomura
as a leading market maker. Equities: working to
become a world-class liquidity provider.

(cid:129) By building US business, will complete linkages
with powerful franchises in Japan, the rest of
Asia, and Europe; expand our client base; and
broaden our product lineup, with the objective
of expanding our market share

(cid:129) Striving for next phase of growth by expanding
M&A globally, building a stronger ECM platform
in Europe, the Americas, and Asia, and expand-
ing solutions business

(cid:129) Approximately 60% of the Japanese listed companies using

(cid:129) Expanding client coverage and building out

Nomura as underwriter

US operations

Retail

Hitoshi Tada

Retail CEO

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Outline of Retail
Nomura delivers a broad range of financial services to its individual and corporate

clients through its 173 branch offices*, call centers, and online services.

*As of July 31, 2010

To offer appropriate and in-depth services tailored to each client’s needs, we provide

consulting-based services at all our branch offices nationwide in Japan. We establish

new branch offices well-suited to the areas where we do business, and we promote

close teamwork among branches to improve convenience for our clients. To respond

more quickly and accurately to clients’ needs, we also provide our services through

online and call center channels.

We will continue our efforts to provide world-class, top-quality products and servic-

es closely matched to our clients’ needs and to remain the most trusted partner for

our clients.

Achievements of Fiscal Year Ended March 2010
(cid:129) Client accounts totaled 4.88 million as of March 31, 2010, an increase of 416 thou-

sand accounts year on year, the largest increase in past 10 years

(cid:129) Client assets totaled ¥73.5 trillion as of March 31, 2010

(cid:129) Net asset inflow over the fiscal year was ¥5,279 billion

(cid:129) Monthly average net purchases exceeded ¥1 trillion, with increased sales of

investment trusts, and stocks matching corporate fund-raising activities

(cid:129) Market share of newly launched investment trusts reached 50%

(cid:129) Improved cost control by reviewing all operations closely

Operating Environment
The shift from savings to financial assets has continued in recent years, but almost

half of Japan’s personal financial assets (approximately ¥1,500 trillion) is still held in

cash and deposits, a much higher percentage than in Europe or the United States. We

believe, however, that this trend will gain momentum due to the prolonged backdrop

of low interest rates in Japan, interest rate gaps between Japan and other countries,

and investment opportunities generated by high growth in the emerging countries.

Along with these trends, the popularization of the Internet has brought major chang-

es not only to the financial services business but to clients’ purchasing and investment

behavior. For example, searching for information on the Internet is now a widely

accepted default option in considering purchases. The same is true in client investment

behavior. In fact, clients have direct access to many sources of information in real

time, including the financial and economic movements of Europe, the United States,

and emerging countries. This progress in information technology has not been just a

matter of speed; it has also made the world a smaller place and clients’ service expec-

tations have become more sophisticated and diverse. The need to tailor asset manage-

ment and administration services to each client is growing along with these

expectations.

Following the financial crisis, competition among financial institutions has grown

more intense in Japan and other countries. In this environment, we are strengthening

our training programs for staff who meet clients regularly. On a daily basis, we

endeavor to provide even higher-quality products and services that draw on the

resources of the Nomura Group.

Japanese Personal Financial Assets

Retail Client Assets: Net Asset Inflow

(as of end of March 2010)

(billions of yen)
8,000

Other
4.3%

Insurance
& Pensions
27.0%

Cash & Deposits
54.9%

Equities
7.1%

Investment
Trusts
4.0%

Bonds
2.7%

Source: Bank of Japan

5,975

4,582

4,868

4,928

5,279

6,000

4,000

2,000

3/2006

3/2007

3/2008

3/2009

3/2010

Note: Retail client assets exclude the portion from regional

financial institutions.

*Net asset inflow = Asset inflow – Asset outflow

Retail

Strategy: Next Phase of Our Growth
Improve Client Satisfaction and Steadily Expand Client Assets

The Retail Division aims to expand its client assets and accounts, and to achieve

further growth by gaining trust and confidence from clients. In other words, growth

without clients’ trust and confidence is not possible, and building trust and partnering

with clients are keys to our growth. To partner with clients and respond to their

requirements, we are now focusing on the basic strategies: sales channel strategy,

marketing strategy, branch and area strategy, product and services strategy, human

resources and training strategy, and IT strategy. By making these the core of our

execution plan, we will be able to expand our business further.

In our sales channel strategy, we have realigned the organization of our branches

and head office to respond to client needs with an even higher level of professional-

ism. Within each of our branches, we have realigned the organizational structure to

correspond more closely to the various needs of individuals and corporations. Along

with this reorganization, we have created support systems in the head office to help

respond to client needs. We will further strengthen the collaboration between branch-

es and the head office, so that we can achieve the highest levels of trust with our

clients, becoming their partner of choice.

In our marketing strategy, in addition to the face-to-face consulting-based services

provided at our branches nationwide, we are now strengthening services through online

and call centers. We are moving toward seamless integration of multiple sales chan-

nels, allowing clients to select the contact method that best fits their investment style.

Also, for clients who use our services like employee stock ownership programs, we

will enhance access through all channels so these clients can also use their services of

choice at any time.

In our branch and area strategy, we are opening new branches to offer clients great-

er convenience and to meet the geographical needs of specific regions. In addition, we

are encouraging collaboration among branches and enhancing branches to improve

client convenience.

Retail Client Assets

Accounts with Balance

85.2

80.5

(thousands)

6,000

5,000

72.2

73.5

59.3

4,000

3,780

3,953

4,165

4,883

4,467

3,000

2,000

1,000

3/2006

3/2007

3/2008

3/2009

3/2010

3/2006

3/2007

3/2008

3/2009

3/2010

Other
Stock Investment Trusts

Overseas Mutual Funds

Domestic Bonds

Bond Investment Trusts

Foreign Currency Bonds

Equities

(trillions of yen)
100

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Our strategy for products and services is to expand the product lineup and services

to meet the diversified needs of clients, further enhancing our competitive edge.

Product and service expectations have become more diverse and sophisticated. We

will, therefore, develop products and services that are focused on client needs and

work to enhance their convenience.

Human resources are quite the important asset for us. We believe these valuable

resources would thrive by responding to client expectations. We will expand our train-

ing to make our resources even more creative and better able to respond to a wide

range of client needs even more effectively. We are aiming to further increase the

quality of our consulting-based services and, together with our clients, to make

Nomura an ever more vibrant and dynamic company.

To increase the efficiency of management resource usage, we will continue to

review our cost structure and constrain expenditures by setting and adhering to invest-

ment priorities. Moreover, we will reduce costs by upgrading our systems for greater

efficiency in our IT platforms and by conducting a drastic review of our back-office

operations.

Asset Management

Atsushi
Yoshikawa

Asset Management
CEO

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Outline of Asset Management
Nomura’s Asset Management Division is engaged in the investment trust business for retail investors
and the investment advisory business for institutional investors.
Our investment trust business offers a wide range of products that enables us to respond to the
diversified needs of our customers through a broad array of distribution channels, including Nomura
Securities and other brokerage houses, commercial banks, Japan Post Bank, and post offices
throughout Japan.
Through our investment advisory business, we provide advanced investment technologies and
high-quality asset management services to a broad range of institutional investors, including domes-
tic and overseas pension funds, government agencies and central banks, and financial institutions,
including banks and insurance companies.

Achievements of Fiscal Year Ended March 2010
(cid:129) Total assets under management: ¥23.4 trillion (at March 31, 2010)
(cid:129) Newly launched public investment trusts (excluding exchange traded funds (ETFs)):

119 investment trusts (23 series)

> Multi-currency type of investment trusts (a total of seven series, including those investing in
well-known Japanese stocks, U.S. high-yield bonds, U.S. real estate investment trusts (REITs),
and emerging market bonds)

> Investment trusts with specific investment themes (such as those investing in semiconductor-

related companies, environment-related stocks, and the Asia series)

(cid:129) Further expanded lineup of ETF products
> NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund and the
> NEXT FUNDS Nikkei-TOCOM Platinum Index Linked Exchange Traded Fund
(cid:129) Worldwide product distribution
New mandates from international clients for a wide range of products, including Japanese and

other Asian equities and global bonds

Business Environment
The business environment at the beginning of the fiscal year under review was extremely challeng-
ing, reflecting the aftermath of the financial market turmoil of autumn 2008, which caused a flight to
quality by investors and led to depressed global equity markets.
As market conditions recovered thereafter, the balance of public investment trusts increased by
23.7% year on year, to ¥64 trillion at the end of March 2010. However, this figure for investment trust
assets only accounted for approximately 4% of Japan’s total personal monetary assets, which have
now exceeded ¥1,500 trillion. As the growth rate of the Japanese economy remains relatively low
compared with other countries around the world, it is becoming more important to consider individ-
ual wealth building, including through investments in non-Japanese assets. We believe that one of
Nomura’s important roles is to facilitate the flow of these individual monetary assets “from savings
and deposits to investments,” by offering investment products, including those from overseas, that
can help to promote greater efficiency in the management of individual assets.

In view of the turmoil in financial markets, institutional investors in Japan and overseas have
become increasingly risk averse and have moved toward restructuring their investment portfolios
to take account of market trends going forward, changes in the regulatory environment, and other
factors. In the investment advisory business, we think it is critical to offer optimal solutions tailored
to each investor’s needs, taking due account of the many varied requirements for different countries,
regions, and investment policies.

Next Phase of Our Growth
“Generating Excess Return in Our Actively Managed Products,” “Anticipating and Responding to
the Needs of Our Clients,” and “Operating with a Global Perspective”
Fiscal 2009 was the first full business year since the financial crisis, and the recovery in financial
markets was a major factor influencing the asset management business. This fiscal year would see
the markets return to normality after having recovered from an extreme situation said to be the
worst crisis in 100 years. In the aftermath of this crisis, we took “Go Back to Basics” as one of our
key themes. More specifically, we would execute our business by focusing on three basic principles:
i.e., “to generate excess return in our actively managed products,” “to anticipate and respond to the
needs of our clients,” and “to operate with a global perspective.”
First, we have continued to enhance our asset management capabilities, recognizing that invest-
ment performance would be highly dependent on asset management skills as the overall post-crisis
market recovery lost momentum. Next, we focused on anticipating and responding to the needs
of our clients by gaining an in-depth understanding of their increasingly diverse requirements and
by offering them a range of asset management products that can meet their investment objectives.

Total Assets under Management

Share of Public Investment Trust Market in Japan

(trillions of yen)
30

(as of end of March 31, 2010)

27.0

25.8

23.1

23.4

20.2

Nomura
20.3%

#10
2.4%

Other
26.4%

#9
2.7%

#8
2.8%

#7
3.1%

#6
3.2%

#2
14.4%

#3
9.7%

#5
6.6%

#4
8.6%

3/2006

3/2007

3/2008

3/2009

3/2010

Notes: 1. Nomura, based on data from The Investment Trust

Association, Japan

2. Assets under Management for Nomura shown as

Nomura Asset Management only

Asset Management

Last, we always put an emphasis on operating with a global perspective, since investment objectives
and the scope of our business have been expanding.
By going back to basics one more time, we strive to provide products that address the medium-
to-long term needs of our clients, while ensuring the best possible investment performance and
outstanding service, all of which we believe are the basic underlying principles of the asset
management businesses.

Strong Competitive Edge in Japan and Elsewhere in Asia
Our vision is to be a world-class asset management firm that has a strong competitive edge in Japan
and elsewhere in Asia, and that offers the best available products and services. We have already real-
ized part of this vision in terms of our “strong competitive edge in Japan and elsewhere in Asia.”
The first principle is to deliver a wide range of products to Japanese and other Asian investors.
We continue to provide sophisticated investment products and services to the investment trust markets
and institutional investors in Japan and many other Asian countries, and we are able to respond to our
customers’ needs, so that we can earn the full trust and confidence of our asset management clients.
The second principle is to deliver competitive Asia/Japan investment products globally. We want
to draw on our strengths as an Asia-based asset management company that has long experience
and a strong accumulated performance record in investing in Japanese equities and bonds as well
as in the securities of other countries in Asia. Our experience dates from the time when interest in
the growth potential of these investments had started to rise, and we are well positioned to offer
competitive investment products on a worldwide basis.

In the Asset Management business, we have a professional staff of approximately 100 stationed
in four countries in Asia excluding Japan. Our objective is to be an asset management company
that has “a strong competitive position in Japan and the rest of Asia” and strive for further business
expansion by continuing to strengthen our management capabilities, including in Asian stocks and
bonds, and continually enhance the range and quality of solutions and services that we can extend
to our customers.

New Initiatives
In the Asset Management Division, we are working on several new initiatives to meet the increasing-
ly diversified and globalized needs of our individual and institutional asset management businesses.
In May 2010, Nomura Asset Management Co., Ltd., the core company within the division, obtained
a license permitting investment in the Chinese securities markets, based on China’s QFII (Qualified
Foreign Institutional Investor) system. We are scheduled to offer investment products that will invest
in China’s “A” shares and other securities. We are also expanding our product lineup by introducing

Investment Advisory Assets under Management

(trillions of yen)

6.8

7.0

7.4

7.3

6.0

3/2009

6/2009

9/2009

12/2009

3/2010

Domestic

Overseas

Note: Assets under Management for Nomura shown as Nomura

Asset Management only

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and listing two new ETFs offered under the unified NEXT FUNDS brand during August 2010. One of
these funds is linked to the NASDAQ-100® Index and the other to the Dow Jones 30-Stock Industrial
Average.

In addition to the discretionary-type contracts that are the core service of the investment advisory
business, we are now increasing the emphasis on the distribution of UCITS compliant funds. UCITS
compliant funds have been provided mainly through financial institutions to European investors, but
we aim to expand such distributions also into the Middle East, Asia, and other regions. We were
among the first companies to offer sharia-compliant equities and bonds through the Islamic finance
business of Nomura Islamic Asset Management in Malaysia, an area that has started to show positive
results.
Furthermore, in July 2009, Nomura Asset
Management reached an agreement with
Life Insurance Corporation of India (LIC),
India’s largest life insurance company, and
we are moving forward with preparations
for establishing a joint-venture asset
management company.
Looking ahead, we will continue to
enhance our asset management capabilities
around the globe, including Japan, the rest
of Asia, and elsewhere, as we strive to
maintain the highest levels of customer
satisfaction and earn the strong and endur-
ing confidence of our asset management
clients worldwide.

Global Expansion of Asset Management Business

Institutional
Investors in
Europe/Middle East

UCITS*1

India LIC NOMURA
Mutual Fund*2

Institutional
Investors
in Asia

Islamic
Products

Australia
Superannuation

Institutional
Investors in
North America

Nomura
Partners
Funds

Japanese Stocks, Asian Stocks, Global Bonds, High-Yield Products,
RAFI Products*3 (Japanese Stocks and Global Stocks)

Investment Advisory Business

Investment Trust (Mutual Fund) Business

*1. An acronym representing Undertakings for Collective Investment in Transferable Securities; a fund meeting the standards stipulated by

European Commission directives.

*2. An asset management joint venture with Life Insurance Corporation of India, India’s largest life insurer (in preparation)
*3. F undamental Index-based asset management products provided by Research Affiliates

Wholesale—
Delivering the Entire Firm to the Client

Jasjit Bhattal

President and Chief
Operating Officer,
Wholesale Division

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Nomura announced the formation of the Wholesale
Division, effective April 2010. This new division encom-
passes Global Markets, Investment Banking, and other
non-retail businesses in Japan, the Asia-Pacific, EMEA,
and the Americas. This enhanced and simplified struc-
ture enables us to make faster decisions, deploy
re sources more efficiently, and offer a broader array
of sophisticated solutions to corporate and institu-
tional clients across the globe.

This past year reflects a historic milestone in Nomura’s growth. The creation in April

of the Wholesale Division, unifying ownership of our core corporate and institutional

relationships, confirms Nomura’s ongoing transformation into a top-tier global invest-

ment bank.

Key to our success has always been placing the client at the heart of everything

we do. The new Wholesale structure promotes an even stronger culture of collabora-

tion across businesses and regions. Under our newly created Wholesale leadership

team, we have more efficiently aligned the regional CEOs, together with Fixed Income,

Equities, Investment Banking, and all Wholesale-related corporate functions. This

means that we can deliver the whole firm to our clients seamlessly, from our superior

products and market expertise to our strong capital resources. The Wholesale platform

also creates a clearer structure for these businesses to partner with the Retail Division,

maximizing the benefits of Nomura’s global capabilities. As a result, Nomura now

operates a stronger, more cohesive business platform that can provide some of the

most sophisticated solutions to our global clients.

Our client-centric strategy has already produced notable results. We have achieved

robust market share gains on both the Tokyo and London Stock exchanges, signifi-

cantly expanded our global client base, and developed award-winning capabilities

across our businesses. Nomura is increasingly recognized by clients and competitors

alike as the new force in global investment banking. Meanwhile, our financial results,

despite continued market volatility, demonstrate our first-class risk discipline and

relentless cost management.

The path to further growth is clear. Our clients continue to demand the uniquely

independent advice and service that Nomura offers. With the creation of the Wholesale

Division, we are now more nimble, versatile, and powerfully positioned to seize the

opportunities presented to us by a fragmented competitive landscape and the ongoing

globalization of our industry. We will draw on the outstanding talents of our people to

drive the next phase of our expansion and continue to execute on our multi-year strat-

egy to grow our presence in the most profitable markets and products.

We are united in our commitment to our clients, and we look forward to building

on Nomura’s long legacy of partnership and success.

Changes to Business Segments

Before (to Mar. 2010)

After (from Apr. 2010)

Retail

Fixed Income

Asset Management

Global Markets

Equities

Others

Investment Banking

Wholesale

Merchant Banking

Asset Management

Global
Markets

Investment
Banking

Fixed Income

Equities

Others

Investment
Banking

Others

Global Markets

Outline of Global Markets
Nomura’s Global Markets focuses on sales and trading of bonds, stocks, currencies, commodities,
and related derivatives for institutional investors around the world through two main businesses:
Fixed Income and Equities. With the acquisition of Lehman Brothers in 2008 and subsequent expan-
sion of our footprint in all major financial markets and with international clients, Global Markets has
gained significant scale to serve clients globally across all major asset classes. We capitalize on our
success in linking our unparalleled intellectual capital and market-making capabilities to our global
clients, ranging from Asia and the Middle East to Europe and the United States.
We leverage our global liquidity network and product origination capability to provide tailor-made
solutions to institutional investors globally and market-leading products to Nomura’s retail branch
offices in Japan.
Our biggest strength is our deep-rooted relationships with our clients. We have built close ties
with a wide range of institutional investors in Japan and abroad; wealthy and affluent investors,
public-sector agencies, and regional financial institutions in Japan; as well as government agencies,
financial institutions, and corporates around the world. Our clients are at the core of our business
growth strategy and our culture. Our approach in working with clients according to their individual
needs is an important factor in our efforts to grow our franchise through strong client relationships,
differentiated services, and expansion into new markets.

Recent Achievements
Fixed Income
(cid:129) Top fixed income franchise in Japan in Greenwich Survey, ranked #1 overall dealer among the

designated JGB market special participants by Ministry of Finance, Japan

(cid:129) Awarded Best Debt House in Asia by Global Finance, named Top 10 fixed income franchise

in Asia ex-Japan by Finance Asia

(cid:129) Ranked #1 in JPY Derivatives, #8 in EUR Derivatives in Euromoney derivatives survey
(cid:129) #1 FX House in Japan and dramatic leap in ranking globally (from #57 to #18) in Euromoney

FX survey

Number of Active Clients (Index)*

Global Markets: Broadened Non-Japan Client Base

EMEA

130

100

Apr.–June
2009

Jan.–Mar.
2010

Americas

212

100

Apr.–June
2009

Jan.–Mar.
2010

AEJ**

176

100

Apr.–June
2009

Jan.–Mar.
2010

* Accumulated total number of clients Nomura facilitated trades for in each quarter
**Asia except Japan

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(cid:129) Primary Dealership expanded to 13 countries and increased onshore presence in selected local
markets in the Asia-Pacific region (India, Australia, Korea, Malaysia, etc.) and Middle East
(Abu Dhabi, Qatar, etc.)

(cid:129) Launched NomuraLive single-dealer platform and extended membership to all key multi-dealer

platforms (e.g., Tradeweb, Bloomberg, MarketAccess, etc.)

Equities
(cid:129) Nomura captured the #1 market share on the Tokyo Stock Exchange* and the #1 share in flows

from customer transactions on the London Stock Exchange**.

(cid:129) Institutional Investor rated Nomura #1 in its Japan analyst rankings and #2 in Europe and Asia.
(cid:129) Nomura captured the #1 position in the Nikkei analyst rankings and #1 in the Greenwich rankings.
(cid:129) Successfully converted NX in Europe to become the first broker owned dark pool as an MTF
(cid:129) Launched NX in Japan with aspiration to provide the services in other Asian markets

* For the full year ended March 31, 2010
** From July 1, 2009 to March 31, 2010

Business Environment
After a period of steady recovery from the financial crisis in the second half of last year, uncertainty
and volatility reappeared in the market in recent months mostly driven by concerns about sustain-
ability of sovereign debt levels in the developed world. In addition, market participants remain cau-
tious about the move toward tightening financial regulations, slower-than-expected recovery of the
US economy, and the future of Euro. In such an operating environment, our clients—institutional
investors, hedge funds, corporates, etc.—are increasingly looking for deep market insights and
specialist/tailor-made services, including product origination backed by cutting-edge financial
engineering and best execution for their trading needs. They also continue to emphasize the need
for liquidity and transparency.
Market participants are increasingly looking to rationalize and diversify their portfolios—providing
opportunities to flow-focused brokers with market depth and insights.
Another recent trend is the rise of market fragmentation in the equities business with the increase
in exchange competition and advancement of technology. Clients are looking for brokers that can
provide the best technology, such as algorithmic trading, smart order routing, dark pools, and trade
cost analysis, in reassuring that clients will get the best price possible in the market for their orders.

Next Phase of Our Growth
Starting with the acquisition of Lehman, we have established a global platform over the last couple
of years, and the next phase of our growth would be driven by the monetization of the platform.

Fixed Income

#1 JGB Franchise

Japan

#1 Domestic Fixed Income Franchise
(Greenwich Survey)

#1 JPY Derivatives (Euromoney)

#8 EUR Derivatives (Euromoney 2010)

EMEA

#7 Global Credit (Risk Magazine)

AEJ

Americas

#6 Sterling Debt (Bloomberg)

#9 FI Franchise (Finance Asia)

#3 arranger of LBO financings
(Euroweek Asia)

#10 as Primary Dealer in UST

5.5% US Flow Credit share (Trace)

Equities (Established Leading Market Share)

#1
12

#1
11

#1
8

#1
10

#1
9

#1
7

#1
10

#1
8

#1
9

Total rank:

Customer rank:

#1
#1
8 8

#1
8

#1
7

#1
6

(%)
15

May June July Aug. Sept. Oct. Nov. Dec.

Feb. Mar.

Jan.
2010

Apr.
2009
TSE market share

LSE market share

Global Markets

We are a client-focused business, and, in both Fixed Income and Equities, we continue to strive to
provide best-of-breed products and differentiated services to our clients. We are responding to
customer needs as we continue to enhance and expand our business infrastructure.

Business Infrastructure Expansion
In Fixed Income, one of our key focus areas has been to establish Nomura as a leading market
maker, and, to that end, we have been expanding our market access through primary dealerships,
participation in all major electronic platforms, and leadership roles in industry initiatives. We have
already acquired primary dealership in 13 key markets (including the United States) and with more
in the pipeline, providing us with the foundation to build a top-tier Global Rates franchise. In Credit,
we continue to be at the forefront of key industry initiatives, including Central Counterparty Clearing
and participation in the ISDA-led CDS auction, etc. We have been making rapid progress in FX,
leveraging our differentiated eCommerce platform NomuraLive, and providing our clients with direct
access to growth markets, such as Russia and Latin America.
Expansion of our local market presence will be another key driver of our growth going forward.
In Asia, we are expanding our onshore presence in India, South Korea, and Taiwan. In the Middle
East, we have obtained licenses in Dubai, Bahrain, Saudi Arabia, Qatar, and other key markets.

In the equities business, we are working to become a world-class liquidity provider. We have
acquired exchange memberships in Malaysia in July 2009 and Australia in January 2010. As a result,
we now have memberships in exchanges in all nine major countries in the Asia-Pacific region, and
worldwide, we are members of 42 stock exchanges and 28 derivatives exchanges.
At the same time, we are expanding our capabilities for multi-asset execution, such as option
trading at our subsidiary Instinet Incorporated. Similarly, Chi-X Global Inc., a subsidiary of Instinet,
has established a joint venture Chi–East Pte Ltd., with the Singapore Exchange Limited. The joint
venture is preparing to become Asia’s first dark-pool platform led by an exchange. Also, in a view
to expand in Asia, Chi-X APAC has begun operations in Japan in July and preparing to launch in
Australia for possible deregulation.

Expanding Business Activities in the United States
The United States is a critical element of Global Markets growth strategy and, in fiscal 2009, we
made key hires to fill leadership roles across products and functions to steer the franchise buildout.
Investments in the US platform are already yielding results as evidenced in significant growth in our
client base and trading volume. In Fixed Income, our focus is to build market depth by deepening
relationships with our client base and leveraging our product, research, and execution expertise. In
the equities business, we are further developing our research coverage, focusing on priority sectors;
aiming to create synergies between our strong franchises in Japan and Europe; and, by developing
an ultrahigh-speed, high-volume trading platform, targeting entry into the top eight players in the
US market.
By building our business activities in the United States, we will complete the linkages with our
powerful franchises in Japan, the rest of Asia, and Europe; expand our client base; and broaden
our product lineup, with the objective of expanding our market share.

Exchanges with License and Countries with Treasury Dealership

Exchanges with license

Exchanges with license
held by Instinet

Primary dealership*

Cash equities

Derivatives

Cash equities

Derivatives

*Including AOFM Dealer Panel Member in Australia

Japan

EMEA

AEJ

Total

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3

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3

Investment Banking

Outline of Investment Banking
Nomura’s Investment Banking offers a broad range of financial products and services,

including equity and debt financing, advisory services, and tailor-made solutions to

corporations, financial institutions, governments, and public-sector organizations

around the world.

Our years of experience and solid track record of accomplishments demonstrate

our strengths in deal structuring and execution capabilities. We strive to anticipate

our clients’ business needs in order to provide customized and innovative solutions to

support their business strategy. We leverage our firm’s platform by working closely

with our Retail Division and within Wholesale globally to offer our clients the most

value-added opportunities. In addition, as an independent investment bank, we are

well positioned to deliver unbiased market-driven advice aimed to increase our clients’

shareholder value.

We aim to become a top-tier global investment bank by further expanding our fran-

chise as the No. 1 investment bank in Asia. We also seek to maintain and enhance

long-term relationships with our clients by supporting the execution of their corporate

strategies. We endeavor to provide a growing range of clients with the best products

and services to fulfill our mission of becoming a key revenue driver to further propel

the growth of the Nomura Group.

Recent Achievements
Equity Finance

(cid:129) In FY2009, we participated in numerous financing transactions, including the IPOs

of Daiichi Life Insurance Co., Ltd. and Maxis Bhd, of Malaysia; the public offerings

of Mitsubishi UFJ Financial Group, Inc. and Toshiba Corporation; the rights issue by

Société Générale; and convertible bonds by Asahi Glass Co., Ltd.

(cid:129) League table: We ranked No. 9 in the Global Equity and Equity-Related Bookrunner

table by Thomson Reuters (market share 3.3%) and No. 1 in the Thomson Reuters

ranking of Japan Equity and Equity-Related bookrunners (market share 35.1%).

Japanese Listed Firms (Underwriter Positions)

FY2009 Japan IB Revenue Ranking

Nomura
58%

Source: Toyo Keizai Japan Company Handbook

(Spring 2010 Edition)

Rank

Bank

1 Nomura

2 Daiwa

3 Mizuho

4 Mitsubishi UFJ

5 Goldman Sachs

Source: Dealogic

Revenue
(Millions of
U.S. Dollars )

1,354

636

591

434

295

Share
(%)

Number
of Deals

28.5

13.4

12.5

9.2

6.2

652

535

717

519

143

FY2009 Product League Table

ECM

DCM

M&A

1
Market Share: 35%
(5th consecutive year)

1
Market Share: 25%
(3rd consecutive year)

1
Market Share: 34%

Note: ECM = Equity Capital Market

DCM = Domestic Capital Market

Source: Thomson Reuters

Investment Banking

Debt Finance

(cid:129) We acted as joint bookrunner for the U.K.’s Gilt issuance, joint lead arranger for

the yen-denominated debt issues by the governments of Mexico and the Philippines,

and also acted as bookrunner for Samurai bonds issued by Korea Development

Bank and GDF Suez S.A.

(cid:129) League table: We ranked No. 1 in the Japan domestic corporate bonds ranking by

Thomson Reuters (market share 24.6%).

Mergers and Acquisitions

(cid:129) We were advisor on many M&A transactions, including the acquisition of Sepracor

Inc. by Dainippon Sumitomo Pharma Co., Ltd. and the sale of Aircel’s telecommuni-

cations tower operations to GTL Infrastructure Limited. We also acted as defense

advisor to Anglo-American and participated in a number of LBOs, including the LBO

acquisition of Pets at Home Ltd. by Kohlberg Kravis Roberts & Co. (KKR).

(cid:129) League table: We ranked No. 1 in the Any Japanese Involvement Announced rank-

ing by Thomson Reuters (market share 34.1%).

Awards

(cid:129) 2009 Investment Bank of the Year in Asia (The Banker magazine)

(cid:129) 2009 House of the Year (Japan, Thomson Reuters Dealwatch Awards)

(cid:129) 2009 Best Investment Bank (Japan, Japan Achievement Awards 2009, Finance Asia)

League Table (April 1, 2009 to March 31, 2010)

(cid:129) We ranked No. 10 in the Global Investment Banking Revenue Fee Ranking compiled

by Dealogic (2.68% share).

Business Environment
Following the financial crisis, the global business environment has undergone signifi-

cant change. With regulations tightening for financial institutions across the globe,

we have seen clients both in Japan and elsewhere active in raising additional capital.

Especially in Europe, the volume of rights issues rose significantly, allowing financial

institutions to raise capital while avoiding dilution of the interests of existing

Global IB Revenue Ranking

Global Equity & Equity-Related League Table

Rank

Bank

JPMorgan

2 Goldman Sachs & Co.

3 Bank of America Merrill Lynch

4 Morgan Stanley

5 Citi

6 Credit Suisse

7 Deutsche Bank AG

8 UBS

9 Barclays Capital

10 Nomura

Source: Dealogic

Revenue
(Millions of
U.S. Dollars)

Market
Share
(%)

5,330

4,418

4,015

3,809

3,298

3,239

2,944

2,801

2,026

1,619

8.8

7.3

6.6

6.3

5.5

5.4

4.9

4.6

3.4

2.7

Rank

Bookrunner

JPMorgan

2 Goldman Sachs & Co.

3 Morgan Stanley

4 UBS

5 Credit Suisse

6 Bank of America Merrill Lynch

7 Deutsche Bank AG

8 Citi

9 Nomura

10 China International Capital

Source: Thomson Reuters

Revenue
(Millions of
U.S. Dollars)

Market
Share
(%)

111,124

11.4

94,737

73,073

57,591

56,502

56,452

40,183

39,329

32,331

16,641

9.7

7.5

5.9

5.8

4.1

4.0

3.3

1.7

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shareholders. Many corporations in other industries have also implemented measures

to increase capital to strengthen their financial positions, and in Japan, we experienced

an unprecedented rush of equity issuances. In addition, with increased liquidity in

the financial markets due to the easing of monetary policies in major countries,

the number of global offerings has increased.

From a corporate growth perspective, the number of M&A deals has been rising

due to an increasingly competitive global business environment. As the population

in certain countries, including Japan, is forecast to decline in the long term, we see

increased corporate demand to expand into emerging countries with high growth

potential. As a result, we expect an increase in not only domestic industrial reorgani-

zation, but also in global acquisitions and alliances, which will further highlight the

need for quality investment banking services.

Next Phase of Our Growth
Expanding M&A on a Global Base

We aim to increase our involvement in major cross-border M&A transactions and to

elevate our presence in global M&A league tables.

Building a Stronger ECM Platform in Europe, the Americas, and Asia

In FY2009, we participated in a larger number of equity capital market (ECM) deals

in Japan. By leveraging our dominance and expertise in the Japanese market, we will

work to further strengthen our ECM platform in Europe, the Americas, and Asia.

Increasing Solutions Business

In addition to financing, M&A advisory, and other traditional investment banking

services, we are diversifying our revenues sources by expanding our tailor-made

solutions business, such as derivatives-based transactions in foreign exchange, equity,

and other products.

To grow these businesses more effectively, we will work closely with Global

Markets, and will leverage our solutions business expertise in Europe to other parts of

the world.

Strengthening Our Client Coverage and Building-out U.S. Operations

We are building closer ties with our overseas offices and are working to further our

global business in the areas of M&A advisory, solutions, and other businesses. To this

end, in April 2010, we reorganized client coverage teams in Japan to align with the

industry coverage groups in other regions. Outside Japan, we will strengthen our cli-

ent coverage, mainly in high-growth regions, by developing strong local relationships

based on the mutual understanding of various cultures, social structures, and other

regional differences.

In the United States, which represents over half of the global investment banking

fee pool, we will expand our industry coverage groups in stages and will extend

our product platform in conjunction with Global Markets. The building-out of our

operations in the Americas will be executed against a focused strategy on increasing

cross-border M&A and solutions businesses for US clients.

Global Research

Introducing Nomura’s Global Research
Nomura’s global research offers investors a powerful combination of rigorous analysis

and unique insights. We specialize in five core areas: economics, foreign exchange,

equities, fixed income, and quantitative research. Our researchers collaborate closely

across regions and disciplines to track changes and spot future trends. The resulting

value-added research is then quickly communicated to our clients to enable them to

make informed investment decisions.

In the past year, we significantly enhanced our research platform by adding key

hires and further developing our research infrastructure. In line with the ongoing build-

out of our US operations, we expanded our US fixed income research capabilities and

are currently establishing a world-class equity research franchise in the United States.

This growth will allow our global research team to provide our clients with broader,

more in-depth analysis.

Research Coverage
Our research is becoming increasingly global in nature. We now cover the GDP

of 40 countries and regions, 33 currencies, and major stock market indices in Japan,

the United States, Europe, and Asia. This represents 90 percent of the world’s eco-

nomic and financial indicators, positioning us well to provide timely information

that investors can put to immediate use.

Global Macro-Global Macro-Approach: Covering Roughly 90% of the World

(cid:36)(cid:0)Euro

(cid:36)(cid:0)Norway

(cid:36)(cid:0)Sweden
Germany
Netherlands
(cid:36)(cid:0)UK
(cid:36)(cid:0)Czech Republic
France
Spain
(cid:36)(cid:0)Switzerland

Italy

(cid:36)(cid:0)Turkey

(cid:36)(cid:0)South Africa

(cid:36)(cid:0)Hungary
(cid:36)(cid:0)Poland
Romania
(cid:36)(cid:0)Ukraine

(cid:36)(cid:0)Kazakhstan

(cid:36)(cid:0)Russia

(cid:36)(cid:0)China

(cid:36)(cid:0)India

(cid:36)(cid:0)Thailand

UAE
Saudi Arabia
(cid:36)(cid:0)Israel
Egypt

(cid:36)(cid:0)Singapore

GCC
(Gulf Cooperation Council)
Bahrain, Kuwait,
Oman, Qatar,
Saudi Arabia, UAE

(cid:36)(cid:0)South Korea

(cid:36)(cid:0)Japan

(cid:36)(cid:0)Hong Kong
(cid:36)(cid:0)Taiwan

Vietnam

(cid:36)(cid:0)Philippines

(cid:36)(cid:0)Malaysia

(cid:36)(cid:0)Indonesia

(cid:36)(cid:0)Australia

(cid:36)(cid:0)Canada

(cid:36)(cid:0)USA

(cid:36)(cid:0)Mexico

(cid:36)(cid:0)Colombia

(cid:36)(cid:0)Brazil

(cid:36)(cid:0)New Zealand

Argentina

(cid:36)(cid:0)Chile

Global Weekly Economic Monitor
(covers GDP for 40 countries/regions)

88%

Global FX Weekly
(covers 31 currencies)

90%

Global Strategy Weekly
(covers 6 indexes)

93%

Notes: 1. Nomura prepares GDP forecasts for the 40 countries and regions indicated in bold and foreign exchange rate forecasts for the

countries indicated with a

. The ratio of GDP and exchange rate forecasts are comparisons with the end of 2008.

2. Forecasts for stock price indexes are for the S&P 500 in the United States, TOPIX in Japan, and for FTSE in other markets.

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Coverage of Individual Stocks and Research Rankings
The breadth and depth of our equity research offerings make Nomura a top-tier research

house. We cover approximately 1,800 companies in Europe, Japan, and elsewhere in

Asia. On an overall market capitalization basis, we cover 70 percent of Asian stocks,

including Japanese companies, and 70 percent of European stocks. Our industry-

specific research provides our clients with the expertise they need to make investment

decisions on the companies that matter.

In addition, our research priorities are driven by the needs of our clients. In

response to strong demand from institutional investors, we recently started covering

US and Australian companies.

Our expanded research offerings have received wide industry recognition. In the

Institutional Investor magazine’s 2010 rankings, we ranked number one for Japanese

research and number one in the first-ever All-China Research Team ranking, where

we gained 14 ranked analyst positions, making us the leading research house on

Chinese companies by a significant margin. We also ranked number two in the Asia

except Japan and All-Europe Research Team surveys.

2,000

1,500

1,000

500

Global Coverage

(Companies covered)

1,710

1,708

1,763

1,797

552
552

587
587

594
594

582
582

1,518

1,531

394
394

398
398

1,029

130
130

296
296

543
543

556
556

576
576

542
542

583
583

613
613

Institutional Investor 2010: Number of Ranked Research Teams

Nomura

UBS

Credit Suisse

JP Morgan

Citigroup

Europe

Asia

China

Japan

Total

Note: Some portions of the survey of China overlap with surveys

of other parts of Asia (as of July 14, 2010).

603
603

581
581

577
577

582
582

579
579

586
586

602
602

1st

2nd

As of
Sept.
2008

As of
Mar.
2009

As of
June
2009

As of
Sept.
2009

As of
Dec.
2009

As of
Mar.
2010

As of
Aug.
2010

Europe

Asia (Excluding Japan)

Japan

China

Asia

Europe

Introduction to Research Reports
Throughout the year, we issue many thematic reports that provide global insights on

trends and structural changes from a cross-sectoral perspective. Some recent examples

of thematic reports focusing on environmental issues include the analysis of the reduc-

tion of greenhouse gases, the development of railway infrastructure, and the future of

the LED lighting market. These reports are a collaborative effort that brings together

the collective intellectual rigor of Nomura analysts and strategists from different markets.

Our economic, foreign exchange, and equity strategy teams around the world col-

laborate daily and issue weekly reports to provide clients with our most up-to-date

global house opinion. For investors looking further into the future, we offer a range

of reports that focus on anticipating trends over the medium-to-long term, including

analysis of the medium-term outlook for 12 Asian countries, deflationary trends,

and the fiscal situation in Europe.

Corporate Governance
and Internal Control System

Overall Approach
Nomura Holdings aims for transparency and quick response throughout the Group to enhance corporate
value in the medium-to-long term. We place the highest importance on initiatives that strengthen and
further develop our corporate governance processes and systems.
When we became a holding company in October 2001, we appointed outside directors to our Board in
order to strengthen management oversight functions. We also formed an Internal Controls Committee that
includes an outside director, created a Compensation Committee
with a majority of outside directors, and formed an Advisory
Board composed of independent experts.
Since Nomura listed on the New York Stock Exchange in
December 2001, we expanded our information disclosure to
increase management transparency. In June 2003, we adopted the
committee system and separated management oversight functions
from the conduct of business operations. We also formed
Nomination and Audit committees that include majorities of out-
side directors. This substantially enhanced management oversight
and dramatically increased transparency. Furthermore, the Board
has delegated considerable authority to NHI’s executive officers to
allow for more efficient management.

* Number of meetings
held in fiscal 2009

Office of Audit
Committee

Nomination
Committee (3*)

Audit Committee
(22*)

Compensation
Committee (5*)

Executive Management
Board

Group Integrated Risk
Management Committee

Internal Controls
Committee

In 2004, we adopted the Code of Ethics of the Nomura Group,
which outlines our policies on issues related to corporate
governance and corporate responsibility. All Nomura employees
should comply with the Code in order to fulfill their respon-
sibilities not only to Nomura Holdings’ shareholders, but also to
other stakeholders.

Corporate Governance
Since Nomura Holdings adopted the committee system for corporate governance, the Board of Directors
has delegated substantial authority to executive officers to allow them to carry out business operations in
a flexible manner. Moreover, through the formation of the three governance committees, for nomination,
audit, and compensation, with a majority of outside directors, we have substantially strengthened our
management oversight functions and enhanced transparency.
As a listed company on the New York Stock Exchange (NYSE), we believe that, among the corporate
governance systems in Japan, the committee system is the closest to the corporate governance system
stipulated in the NYSE manual for listed companies.

Board of Directors
The Board of Directors of Nomura Holdings, in principle, meets more than once every three months,
and the meeting is chaired by the Director and Chairman, who does not hold the position of executive
officer concurrently. The term of directors is one year, and, of the 12 directors, 7 are outside directors.

In addition, beginning with the current year, two additional directors, Lord Colin Marshall and Dame
Clara Furse, have been appointed as outside directors. These two outside directors have extensive
experience, principally in Europe, and meet the qualifications for independence. They will supervise
management, including the development of global business operations.

Three Committees
1. Nomination Committee
The Nomination Committee is composed of a majority of outside directors and is responsible for decisions
regarding proposals made to the annual meeting of shareholders concerning the appointment and dis-
missal of directors. No directors who serve concurrently as representative executive officers, including
the CEO or other executive officers, are members of the Nomination Committee.
2. Audit Committee
The Audit Committee is responsible for auditing the activities carried out by directors and executive
officers. The Audit Committee also prepares audit reports and makes decisions regarding proposals to be
submitted to the annual meeting of shareholders concerning the appointment and dismissal of inde-
pendent auditors. All members of the Audit Committee are outside directors, and meet the requirements
of independent directors under the Sarbanes-Oxley Act.
3. Compensation Committee
The Compensation Committee is also composed of a majority of outside directors. This committee deter-
mines policy for decision making regarding compensation and related matters for directors and executive
officers, and decides specific compensation and related matters for individual directors and executive offi-
cers. No directors who serve concurrently as executive officers, including the CEO or other executive offi-
cers, are members of the Compensation Committee.

Management Structure

Shareholders’
Meeting

Board of
Directors
(10*)

President
& CEO

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Compensation for Directors and Executive Officers
As the Company has adopted a committee system for corporate governance, in accordance with the
Company Act, the Compensation Committee has prepared and approved the Compensation Policy of
Nomura Group and Compensation Policy for Directors and Officers of Nomura Holdings, Inc.

Nomura Group’s Compensation Policy
The Nomura Group has developed its compensation policy for both executives and employees to ensure
we attract, retain, motivate, and develop talent that enables us to achieve sustainable growth, realize a
long-term increase in shareholder value, deliver client excellence, compete in a global market, increase
transparency, and enhance our reputation.
To accomplish these objectives, the Compensation Committee has prepared and approved the
Compensation Policy of Nomura Group and for ensuring that the Nomura Group’s compensation
framework supports the Group’s business strategies.
Our Compensation Policy is based on the following six key themes.
1. Align with Nomura values and strategies
2. Reflect firm, division, and individual performance
3. Establish appropriate performance measurement with a focus on risk
4. Align employee and shareholder interests
5. Establish appropriate compensation structures
6. Ensure robust governance and control processes

Title

174

632

Number

Directors*

Base
Salary

Executive
Officers

Compensation Policies Applicable to the Board of Directors and Executive Officers
The compensation of directors and executive officers comprises
a base salary, an annual bonus, and a long-term incentive plan.
The Compensation Committee has approved the following matters
related to compensation of directors and executive officers.
1. Base Salary
Base salary is determined based on factors such as professional
background, career history, responsibilities, and compensation
standards of related business fields. A portion of base salary may
be paid in the form of equity-based compensation with a certain
non-exercise period to ensure that the interests of Directors and
Executive Officers are closely aligned with those of shareholders.
2. Cash Bonus
Cash bonuses of Directors and Executive Officers are determined
by taking into account both quantitative and qualitative factors.
Quantitative factors include performance of the whole Group
and business division results, while qualitative factors include
achievement of individual goals and subjective assessment of individual contributions. Depending on the
level of bonus payment, a portion of payment in cash may be deferred. In addition, a portion of deferred
bonus may be paid in equity-based compensation with a certain non-exercise period in lieu of cash to
ensure that interests of Directors and Executive Officers are closely aligned with those of shareholders.
Such deferred bonus may be unpaid or forfeited under specific circumstances.
3. Long-Term Incentive Plans
Long-term incentive plans may be awarded to Directors and Executive Officers depending on their indi-
vidual responsibilities and performance. Payments under long-term incentive plans are made when a cer-
tain degree of achievements is accomplished. Payments are made in equity-based compensation with a
certain non-exercise period to ensure that the mid-/long-term interests of Directors and Executive Officers
are closely aligned with those of shareholders.

Outside
Directors

Total

943

137

Business Execution
The Board of Directors has broadly delegated decision-making authority for business execution functions
to the Executive Officers. Among the matters delegated to the Executive Officers by resolutions of the
Board of Directors, the most important matters of business shall be deliberated and decided by specific
management groups of the Company, including the Executive Management Board, the Group Integrated
Risk Management Committee, and the Internal Controls Committee. Each of the principal committees
reports to the Board of Directors at least once every three months on matters that have been discussed.

Executive Management Board
Chaired by the CEO, the Executive Management Board includes the COO, business division CEOs, and
other persons designated by the CEO. The Executive Management Board is responsible for deliberating
and making decisions related to important management issues for the Nomura Group, such as strategy,
business plans, and budgets, as well as the allocation of resources.

Compensation for Directors and Executive Officers

(millions of yen)

Stock
Options

Cash
Bonuses

218

122

705

Total

356

1,555

—

162

303

827

2,073

Note: Includes compensation from consolidated subsidiaries.
*Excluding Outside Directors

Corporate Governance
and Internal Control System

Group Integrated Risk Management Committee
The Group Integrated Risk Management Committee is chaired by the CEO and includes the COO, busi-
ness division CEOs, and other persons designated by the CEO. Under the delegation of the Executive
Management Board, the Group Integrated Risk Management Committee is responsible for deliberating
and deciding on important risk management issues for the Nomura Group, such as the Group’s response
to the requirements posed by Basel II. The Global Risk Management Committee has been established
under the Group Integrated Risk Management Committee to make assessments and decisions regarding
individual positions and important risk management issues.

Internal Controls Committee
The Internal Controls Committee is chaired by the CEO and is comprised of persons designated by
the CEO, Audit Committee members designated by the Audit Committee, and directors (Audit Mission
Directors) designated by the Board of Directors. The Internal Controls Committee is responsible for estab-
lishing and evaluating the internal controls of the Nomura Group’s operations as well as for deliberating
and making decisions to promote proper corporate behavior.

In order to bolster the Company’s business execution framework for financial operations that are
becoming increasingly sophisticated and specialized, the Company utilizes a system whereby the
Executive Officers delegate part of their authority for business execution decisions to Senior Managing
Directors, enabling them to focus more on individual business line activities.

Internal Controls
The Nomura Group is striving to strengthen and improve its internal control system in order to promote
proper corporate behavior throughout the Group from the viewpoints of ensuring management transpar-
ency and efficiency, complying with laws and regulations, controlling risks, ensuring the reliability of busi-
ness and financial reports, and fostering the timely and appropriate disclosure of information.
Further, in order to ensure effective and adequate internal controls, the Nomura Group has established
the Internal Audit Department independently from the business lines. The Internal Audit Department
and other similar audit departments of major subsidiaries conduct internal audits of the Company and its
subsidiaries. The Internal Audit Department follows the instructions of the Internal Controls Committee
in the execution of its duties. Results of the internal audits are reported not only to the business lines, but
also to the Audit Committee and Audit Mission Directors.

Compliance
The Nomura Group works to prevent behavior that may give rise to suspicion of violations of legal regula-
tions. Should such issues arise, all related information is promptly transmitted to management without
exception, and systems have been put into place to deal with these situations appropriately.
(cid:129) Appointment of a group compliance officer
(cid:129) Appointment of compliance officers
(cid:129) Establishment of a compliance hotline
(cid:129) Addressing legal risk globally

Crisis Management
The Nomura Group has drawn up the Nomura Group Crisis Management Policy 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. In addition, the Nomura Group Crisis Management
Committee is responsible for Group-wide crisis management plans and action programs.

Fair Disclosure
To ensure investors have fair access to information regarding the Nomura Group, we have drawn up the
Nomura Group’s Statement of Global Corporate Policy Regarding Public Disclosure of Information. Based
on this policy, a Disclosure Committee was set up to deliberate and make decisions regarding the appro-
priate disclosure of material information related to the Nomura Group, the preparation of legally mandated
disclosure documents, and other important items related to the disclosure of corporate information.

Information Security
The Nomura Group has established an information security policy outlining the handling of client infor-
mation to ensure that such information is strictly protected and managed. In addition, Nomura Securities
has prepared internal regulations that include rules regarding insider trading to strictly manage informa-
tion related to corporate clients.

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Risk Management

Our business activities are inherently subject to various risks, including market and

credit risks, operational risks, system risks, and risks resulting from external events.

Managing those risks is an integral part of management’s responsibilities to secure

fiscal health as well as to contribute to the maintenance and expansion of corporate

value. Our risk management framework and governance structure are intended to pro-

vide comprehensive controls, monitoring, and reporting.

Key issues and structure related to our risk management include:

(cid:129) Proactive senior management commitment to risk management

(cid:129) Strengthening of the risk management structure by conducting stress and scenario

analysis led by a Chief Risk Officer (CRO)

(cid:129) Integrated management based on risk appetite as defined by the Group Integrated

Risk Management Committee

(cid:129) Risk management conducted by risk management departments that cooperate world-

wide as well as by individual operations divisions

Internal Controls
Committee

Audit Committee

Audit Mission
Directors

■ Four Executive Managing
Directors including CEO
+ Outside Director

(Chairman of Audit Committee)

+ Director

(Audit Mission Director)

■ Discussion and approval of
internal controls enhance-
ment as well as appropriate
business behavior and its
assessment

Approval of
Audit Plan

Audit
Report

Internal Audit Division

Internal
Audit

Audit
Report

Office of Audit
Committee

■ Assist Audit Committee

■ Assist Audit Mission

Directors by providing
operational support

Audit
Report

Nomura Holdings
and its Subsidiaries

Management

Business

Risk
Management

Compliance

Board of Directors/
Executive and Senior Managing Directors

From left: [Front row]
From left: [Back row]

Junichi Ujiie, Kenichi Watanabe, Takumi Shibata
Masanori Itatani, Hajime Sawabe, Masahiro Sakane, Lord Colin Marshall, Dame Clara Furse, Haruo Tsuji,
Hideaki Kubori, Tsuguoki Fujinuma, Masanori Nishimatsu

Board of Directors

Title

Name

Responsibilities and Status in Other Companies

Chairman of the
Board of Directors

Junichi Ujiie

Chairman of the Board of Directors

Director

Kenichi Watanabe

Director

Takumi Shibata

Director

Hideaki Kubori

Director

Masahiro Sakane

Director

Haruo Tsuji

Director

Tsuguoki Fujinuma

Director

Hajime Sawabe

Director and President & Chief Executive Officer
of Nomura Securities Co., Ltd.

Director and Deputy President & Chief Operating
Officer of Nomura Securities Co., Ltd.

Chairman of Hibiya Park Law Offices
Outside Statutory Auditor of SOURCENEXT CORPORATION

Chairman of Komatsu Ltd.
Outside Director of Tokyo Electron Limited

Corporate Advisor of Sharp Corporation
Outside Director of Kobayashi Pharmaceutical Co., Ltd.
Director of Seiren Co., Ltd.

Advisor of the Japanese Institute of Certified
Public Accountants
Outside Director of Tokyo Stock Exchange Group, Inc.
Governor of Tokyo Stock Exchange Regulation
Outside Statutory Auditor of Sumitomo Corporation
Outside Statutory Auditor of Takeda Pharmaceutical Co., Ltd.
Outside Director of Sumitomo Life Insurance Company
Outside Auditor of Seven & i Holdings Co., Ltd.

Chairman of TDK Corporation
Outside Director of Asahi Glass Company, Limited
Outside Director of TEIJIN LIMITED

Director

Masanori Itatani

Audit Mission Director

Masanori Nishimatsu Audit Mission Director

Lord Colin Marshall

Chairman of Pirelli UK plc

Director

Dame Clara Furse

Non Executive Director of Legal & General Group plc
Non Executive Director of Amadeus IT Holding SA

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(As of June 25, 2010)

Nomination
Committee

Audit
Committee

Compensation
Committee

Audit Mission
Director

◎

○

◎

○

◎

○

Note: A double circle indicates the committee chair.

Executive Managing Directors

(As of June 25, 2010)

Title

Name

Responsibilities

President

Kenichi Watanabe

Chief Executive Officer

Deputy President

Takumi Shibata

Chief Operating Officer/Wholesale Chairman & CEO

Executive Managing Director

Hitoshi Tada

Retail CEO

Executive Managing Director

Atsushi Yoshikawa

Asset Management CEO

Executive Managing Director

Hiroshi Tanaka

Chief Administrative Officer
(Group Compliance Head, CIO, Global Operations)

Executive Managing Director

Masafumi Nakada

Chief Financial Officer

Executive Managing Director

Noriaki Nagai

Head of Corporate Office

Senior Managing Directors

(As of June 25, 2010)

Title

Name

Responsibilities

Executive Vice President

Jasjit Bhattal

Wholesale President & COO

Executive Vice President

Hiromi Yamaji

Investment Banking Executive Chairman

Executive Vice President

Hiromasa Yamazaki

Head of Global Markets

Senior Corporate Managing Director Hiroyuki Suzuki

Joint Head of Investment Banking

Senior Corporate Managing Director

Shoichi Nagamatsu

Head of Merchant Banking

Senior Corporate Managing Director Hideyuki Takahashi

Global Research

Senior Corporate Managing Director Akihito Watanabe

Global Human Resources

Senior Managing Director

David Benson

Chief Risk Officer

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

Shigesuke Kashiwagi

Government Affairs and Risk Advisory Group

Senior Managing Director

Shinji Iwai

Group Corporate Communications

Senior Managing Director

William Vereker

Joint Head of Investment Banking

Senior Managing Director

Rachid Bouzouba

Joint Head of Global Equities

Senior Managing Director

Naoki Matsuba

Regional CEO, Americas and Joint Head of Global Equities

Senior Corporate Managing Director Tarun Jotwani

Regional CEO, EMEA and Head of Global Fixed Income

Senior Managing Director

Kenji Kimura

COO of Nomura International plc

Senior Managing Director

Paul Spanswick

Regional CAO, EMEA

*EMEA: Europe, Middle East and Africa

Senior Managing Director

Philip Lynch

Regional CEO, Asia ex-Japan

Senior Managing Director

Yoshinori Go

Wealth Management, Asia

Corporate Social Responsibility

A diverse range of stakeholders around the world supports the busi-
ness operations of the Nomura Group. We engage in social activities
with the phrase of “For Future Generations” through its business
units worldwide as a responsible corporate citizen working to create
a more prosperous society.

Our Community
Education and Nurturing the Next Generation
While knowledge about finance and economics is important for appropriate wealth building,
it is also the key to developing a sound capital market from a long-term perspective.
The Nomura Group has been contributing significantly to educational activities for a broad
range of generations, from elementary school children to university students and adults.
“Manabou Classroom” is an educational program that the Nomura Group employees visit ele-
mentary schools in the community to teach fifth- and sixth-grade students how the economy
and society work. Under the theme of foreign exchange, these finance professionals offer easy-
to-understand explanations about types of currency, exchange rates, and the influence of a
strong or weak yen on trade as well as an engaging learning game on exchange fluctuations.

Oaklands School Partnership
Oaklands School and Nomura International plc. (U.K.) have partnered since October 2008 in
enriching the school’s curriculum and providing experiences beyond the normal reach of stu-
dents. Oaklands is a small secondary school in Tower Hamlets with 600 students and 47 faculty
members. Despite its location in one of the most deprived parts of the U.K., the school was
rated as outstanding by Ofsted in September 2007 and is designated as a High Performing
Specialist School. NIP, through this partnership, enriches the school curriculum and provides
special experience-based learning opportunities to students.
The partnership is firmly rooted in the daily operations of the bank. Currently, over 120 vol-
unteers regularly support the school through seven weekly programs: Reading, Numbers,
Science, French, Business Mentoring, and a Japanese Club. In addition to the volunteer activi-
ties, Nomura hosts work experience students, competitions, and student training days.
Nomura makes annual corporate donations, which are used to develop the school’s recre-
ational facilities and implement extracurricular programs. In 2010, the funding enabled 20
students to visit Tokyo and New York. The students had the unique experience of visiting
Nomura’s offices in both Japan and the United States.

In the course of its businesses operations centered in the four regions of Japan, Asia, Europe,
and the Americas, the Nomura Group engages with local communities to build lasting positive
partnerships through initiatives such as support for education and charities.

Our Environment
Resolving the Financial Needs of Eco-Businesses
Nomura Securities Co., Ltd. maintains a cross-departmental eco-business working group that
regularly meets to leverage the Nomura Group’s comprehensive capabilities toward fulfilling
the needs of clients engaged in environment-related businesses.
While environmental businesses are highly public, they operate at extreme risk and require
long-term funding. And although Japanese companies possess sophisticated technologies
in water-related fields, they have difficulty competing with major overseas water enterprises. We
will contribute to society by financially supporting eco-businesses, including the formulation of
funding recommendations for these companies and encouraging cross-industry collaboration
through M&A.

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Environmental Support Bonds
Given the increasing concerns over climate change, the Nomura Group is bridging the needs
of individual investors who wish to participate in environmental solutions with the funding
needs of climate change mitigation efforts worldwide to contribute to society through our
core business.

In January 2010, Nomura Securities Co., Ltd. sold environmental support bonds issued by
the Nordic Investment Bank (NIB), whose major focus is on environmental protection. The
proceeds generated by environmental support bonds will be invested in various environment-
related projects, such as the development of manufacturing technologies that curb greenhouse
gas emissions and power generation facilities using renewable energy.

Environmental Education for Future Generations
Passing along to future generations the importance of taking good care of the earth’s environ-
ment, the Nomura Group holds environmental educational events and enlightenment programs
for children.

In 2009, the Corporate Citizenship Department held an event for elementary and junior high
school students to raise environmental awareness in homes. The title of this year’s event was:
“Summer homework under an environmental theme—“Make a unique recycled umbrella!”
A total of 22 participants attended, consisting of children from the Wakakusa Dormitory
supported by the Nomura Group, and the children of employees.
Each participant drew a picture on a clear plastic umbrella that he or she had brought or on
an unused one collected within the Nomura Group in an awareness-rising effort toward reduc-
ing CO2 emissions by addressing a waste problem close to home. The children learned about
respecting everything we use.

Our People
Diversity and Inclusion Initiatives
With 26,000 employees and over 80 nationalities working across the globe, Nomura is under-
standably committed to diversity and inclusion throughout the firm. The diversity of our people,
their different backgrounds, geographies, experiences, and cultures help us to create a unique
environment of openness and inclusiveness where everyone is respected and valued for the
work they do; that gives us our competitive edge.
Diversity and Inclusion at Nomura is about partnership, innovation, strategy, and vision. It is
simply the way we are and the way we do business, and is embedded in everything we do.
Our unique culture, our inclusive working environment, and our people give us a competitive
advantage that enables us to serve our diverse customer base, clients, communities, and share-
holders effectively. This strengthens our brand, reinforces our employment proposition, and
improves our overall business performance.
The Nomura Group encourages its people to connect and communicate openly, building last-
ing relationships across boundaries and in diverse teams. Through supporting the development
of employee networks and communities of interest, we are breaking down silos, engaging our
people, and strengthening employee relationships across the globe. Nomura’s three networks—
the Life & Families Network, Women in Nomura (WIN), and the Nomura LGBT (lesbian, gay,
bisexual, and transgender) Network—are expanding their activities in various locations across
the world.

Five-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 (loss) on trading
Gain (loss) on private equity investments

Interest and dividends

Gain (loss) on investments in equity securities
Private equity entities product sales
Other

Total revenue
Interest expense
Net revenue

Non-interest expenses:
Compensation and beneﬁ ts
Commissions and ﬂ oor brokerage

Information processing and communications

Occupancy and related depreciation
Business development expenses
Private equity entities cost of goods sold
Other

Total non-interest expenses

Income (loss) from continuing operations before income taxes
Income from discontinued operations before income taxes
Income tax expense (benefit)
Income (loss) from continuing operations
Gain on discontinued operations
Net income (loss)
Less: Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to NHI (1)
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 NHI shareholders’ equity
Noncontrolling interests
Total equity

Total liabilities and equity

3/2006

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
109,031
693,634
452,016
99,413
240,685
263,044
47,700
310,744
6,416
304,328

¥ 1,555,636
1,099,568
17,027,807
13,630,199
1,381,469
¥34,694,679
691,759
¥
1,172,489
20,263,012
6,263,514
621,677
3,598,599
32,611,050
2,063,327
20,302
2,083,629
¥34,694,679

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 investment company accounting 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
Notes: 1. Calculated using the yen-dollar exchange rate of US$1.00=¥93.40, the noon buying rate in New York City for cable transfers in foreign currencies

(565,214)
(4,678)
829,219
—
16,419
131,100
406,846

as certified for customs purposes by the Federal Reserve Bank of New York on March 31, 2010.

2. Figures for the fiscal years ended March 31, 2006, 2007, and 2008 have been restated to reflect the retroactive application of the Financial

Accounting Standard Board’s Staff Position Paper No. 210-10 entitled “Balance Sheets—Eliminations” (hereinafter, “Position Paper”).

3. Figures for the fiscal years ended March 31, 2007, 2008, and 2009, have been restated to reflect the application of new guidelines on accounting
for and disclosure of non-controlling equity positions that are referred to in Position Paper No. 810, entitled “Consolidated Financial Statements.”

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3/2007

3/2008

3/2009

Millions of yen
3/2010

Millions of US dollars
3/2010

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
109,295
772,599
318,502
—
145,930
172,572
—
172,572
(3,256)
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
808,482
5,002,890
33,354,552
2,185,919
37,040
2,222,959
¥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
—
157,190
852,167
(64,910)
—
3,259
(68,169)
—
(68,169)
(322)
¥ (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
623,206
5,224,426
23,234,952
1,988,124
12,978
2,001,102
¥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
—
262,558
1,092,892
(780,265)
—
(70,854)
(709,411)
—
(709,411)
(1,219)
¥ (708,192)

¥ 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
467,574
5,483,028
23,286,302
1,539,396
12,150
1,551,546
¥24,837,848

¥ (712,629)
(98,905)
999,760
—
(81,896)
—
106,330

395,083
121,254
132,249
417,424
11,906
235,310
6,042
—
37,483
1,356,751
205,929
1,150,822

526,238
86,129
175,575
87,806
27,333
—
142,494
1,045,575
105,247
—
37,161
68,086
—
68,086
288
67,798

Millions of yen
¥ 1,352,244
2,071,714
12,467,213
14,700,282
1,638,975
¥32,230,428
¥ 1,301,664
1,528,419
11,216,481
8,356,806
494,983
7,199,061
30,097,414
2,126,929
6,085
2,133,014
¥32,230,428

Millions of yen
¥ (1,500,770)
(269,643)
2,176,530
—
964
—
407,081

4,230
1,298
1,416
4,469
127
2,519
65
—
402
14,526
2,205
12,321

5,634
922
1,880
940
293
—
1,525
11,194
1,127
—
398
729
—
729
3
726

Millions of US dollars
$ 14,478
22,181
133,482
157,391
17,548
$345,080
$ 13,936
16,364
120,091
89,473
5,301
77,078
322,243
22,772
65
22,837
$345,080

Millions of US dollars
$ (16,068)
(2,887)
23,303
—
10
—
4,358

Major Subsidiaries and Affiliates

(As of July 1, 2010)

JAPAN
NOMURA SECURITIES CO., LTD.

NOMURA ASSET MANAGEMENT CO., LTD.

THE NOMURA TRUST & BANKING CO., LTD.

NOMURA BABCOCK & BROWN CO., LTD.

NOMURA CAPITAL INVESTMENT CO., LTD.

NOMURA INVESTOR RELATIONS CO., LTD.

NOMURA PRINCIPAL FINANCE CO., LTD.

NOMURA FUNDS RESEARCH
AND TECHNOLOGIES CO., LTD.

NOMURA PENSION SUPPORT &
SERVICE CO., LTD.

NOMURA RESEARCH & ADVISORY CO., LTD.

NOMURA BUSINESS SERVICES CO., LTD.

NOMURA FACILITIES, INC.

NOMURA INSTITUTE OF CAPITAL
MARKETS RESEARCH

NOMURA HEALTHCARE CO., LTD.

PRIVATE EQUITY FUNDS RESEARCH
AND INVESTMENTS CO., LTD.

Europe & Middle East
NOMURA EUROPE HOLDINGS PLC (London)

NOMURA INTERNATIONAL PLC (London)
(cid:129) Madrid Office (cid:129) Vienna Representative Office
(cid:129) Dubai Office (cid:129) Qatar Office
NOMURA CODE SECURITIES LTD. (London)
NOMURA BANK INTERNATIONAL PLC (London)
(cid:129) Italy Office (cid:129) Labuan Office
NOMURA NEDERLAND N.V. (Amsterdam)
BANQUE NOMURA FRANCE (Paris)
NOMURA BANK (LUXEMBOURG) S.A.
NOMURA BANK (DEUTSCHLAND) GMBH (Frankfurt)
Nomura Asset Management Deutschland KAG mbH
NOMURA BANK (SWITZERLAND) LTD. (Zurich)
(cid:129) Geneva Office
NOMURA ITALIA S.I.M.p.A. (Milan)
(cid:129) Rome Office
NOMURA CORPORATE ADVISORY (CENTRAL & EASTERN EUROPE)
Sp.z.o.o. (Warsaw)
OOO NOMURA (Moscow)
NOMURA SWEDEN AB (Umea)
NOMURA INVESTMENT BANKING (MIDDLE EAST) B.S.C. (c) (Bahrain)
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)

NOMURA STRUCTURED HOLDINGS PLC (Dublin)

NOMURA EUROPEAN INVESTMENT LIMITED (London)

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Americas
NOMURA HOLDING AMERICA INC. (New York)

(cid:129) Washington, D.C. Office

NOMURA SECURITIES INTERNATIONAL, INC. (New York)
(cid:129) San Francisco Office (cid:129) São Paulo Representative
Office (cid:129) Boston Office (cid:129) Atlanta Office
(cid:129) Chicago Office (cid:129) Los Angeles 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 SECURITIES (BERMUDA) LTD.
NOMURA CANADA INC. (Toronto)

NOMURA GLOBAL FINANCIAL PRODUCTS INC.
(New York)

NOMURA SECURITIES NORTH AMERICA, LLC
(New York)

NOMURA ASSET MANAGEMENT USA INC.

Instinet

INSTINET INCORPORATED (New York)

Asia-Pacific
NOMURA ASIA HOLDING N.V. (Amsterdam)

NOMURA INTERNATIONAL (HONG KONG) LIMITED
(cid:129) Seoul Branch Office (cid:129) Taipei Branch Office
(cid:129) 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)
NOMURA FINANCIAL INVESTMENT (KOREA) CO. LIMITED

CAPITAL NOMURA SECURITIES PUBLIC COMPANY
LIMITED (Bangkok)

NOMURA CORPORATE ADVISORY (SHANGHAI)
CO., LTD.

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.

Nomura Securities Domestic Network

(As of July 1, 2010)

Kinki
(31 Branches)
(cid:129) Akashi Branch
(cid:129) Daito Branch
(cid:129) Esaka Branch
(cid:129) Gakuenmae

Branch

(cid:129) Higashiosaka

Branch

(cid:129) Himeji Branch
(cid:129) Hirakata Branch
(cid:129) Ibaraki Branch
(cid:129) Kawanishi Branch
(cid:129) Kishiwada Branch
(cid:129) Kobe Branch
(cid:129) Kurakuen Branch
(cid:129) Kyoto Branch
(cid:129) Kyoto Branch,
Kyoto Station
Building,
The Cube Office

(cid:129) Nanba Branch

(cid:129) Nara Branch
(cid:129) Nishinomiya

Branch

(cid:129) Okamoto Branch
(cid:129) Osaka Branch
(cid:129) Otsu Branch
(cid:129) Sakai Branch
(cid:129) Senri Branch
(cid:129) Takarazuka Branch
(cid:129) Takatsuki Branch
(cid:129) Tennoji-eki Branch
(cid:129) Toyonaka Branch
(cid:129) Tsukaguchi Branch
(cid:129) Uehonmachi

Branch

(cid:129) Umeda Branch
(cid:129) Umeda Branch,
Diamor Office
(cid:129) Wakayama Branch

Chugoku
(8 Branches)
(cid:129) Fukuyama
Branch
(cid:129) Hiroshima
Branch
(cid:129) Kurashiki
Branch
(cid:129) Matsue
Branch

Branch
(cid:129) Tokuyama
Branch
(cid:129) Yonago
Branch

(cid:129) Okayama
Branch

(cid:129) Shimonoseki

Kyushu
(10 Branches)
(cid:129) Fukuoka Branch
(cid:129) Kagoshima

Branch

(cid:129) Kitakyushu

Branch
(cid:129) Kumamoto
Branch

(cid:129) Kurume Branch
(cid:129) Miyazaki Branch
(cid:129) Nagasaki Branch
(cid:129) Oita Branch
(cid:129) Saga Branch
(cid:129) Sasebo Branch

Kanto
(42 Branches)
(cid:129) Aobadai Branch
(cid:129) Atsugi Branch
(cid:129) Chiba Branch
(cid:129) Fujisawa Branch
(cid:129) Funabashi Branch
(cid:129) Futamatagawa

Branch

(cid:129) Hiratsuka Branch
(cid:129) Ichikawa Branch
(cid:129) Kamakura Branch
(cid:129) Kashiwa Branch
(cid:129) Kawagoe Branch
(cid:129) Kawaguchi Branch
(cid:129) Kawasaki Branch
(cid:129) Kofu Branch
(cid:129) Konandai Branch
(cid:129) Koshigaya Branch
(cid:129) Kumagaya Branch
(cid:129) Matsudo Branch
(cid:129) Mito Branch
(cid:129) Musashikosugi

Branch

(cid:129) Odawara Branch
(cid:129) Omiya Nishiguchi

Branch

(cid:129) Ota Branch
(cid:129) Sagamihara Branch
(cid:129) Saitama Branch
(cid:129) Shiki Branch
(cid:129) Shinyokohama

Branch

(cid:129) Shinyurigaoka

Branch

(cid:129) Takasaki Branch
(cid:129) Tama Plaza Branch
(cid:129) Tokorozawa Branch
(cid:129) Totsuka Branch
(cid:129) Tsuchiura Branch
(cid:129) Tsukuba Branch
(cid:129) Tsurumi Branch
(cid:129) Urawa Branch
(cid:129) Utsunomiya Branch
(cid:129) Yachiyodai Branch
(cid:129) Yokohama

Bashamichi Branch

(cid:129) Yokohama Branch
(cid:129) Yokohama-eki

Nishiguchi Branch

(cid:129) Yokosuka Branch

Hokuriku
(4 Branches)
(cid:129) Fukui Branch
(cid:129) Kanazawa Branch
(cid:129) Niigata Branch
(cid:129) Toyama Branch

Shikoku
(4 Branches)
(cid:129) Kochi Branch
(cid:129) Matsuyama Branch
(cid:129) Takamatsu Branch
(cid:129) Tokushima Branch

Chubu
(16 Branches)
(cid:129) Gifu Branch
(cid:129) Hamamatsu

(cid:129) Nagoya-ekimae

Branch

Branch
(cid:129) Kanayama
Branch

(cid:129) Kariya Branch
(cid:129) Kasugai Branch
(cid:129) Matsumoto
Branch

(cid:129) Nagano Branch
(cid:129) Nagoya Branch

(cid:129) Numazu Branch
(cid:129) Okazaki Branch
(cid:129) Shizuoka Branch
(cid:129) Toyohashi
Branch

(cid:129) Toyota Branch
(cid:129) Tsu Branch
(cid:129) Yokkaichi
Branch

Hokkaido
(5 Branches)
(cid:129) Asahikawa Branch
(cid:129) Hakodate Branch
(cid:129) Kushiro Branch
(cid:129) Sapporo Branch
(cid:129) Tokachi/Obihiro Office

Tohoku
(8 Branches)
(cid:129) Akita

Branch
(cid:129) Aomori
Branch

(cid:129) Fukushima

Branch
(cid:129) Hachinohe
Branch

(cid:129) Koriyama
Branch
(cid:129) Morioka
Branch
(cid:129) Sendai
Branch
(cid:129) Yamagata
Branch

Tokyo Metropolitan Area
(42 Branches)
(cid:129) Chofu Branch
(cid:129) Denenchofu Branch
(cid:129) Fuchu Branch
(cid:129) Gotanda Branch
(cid:129) Hachioji Branch
(cid:129) Hamadayama

(cid:129) Nakano Branch
(cid:129) Nerima Branch
(cid:129) Ogikubo Branch
(cid:129) Omori Branch
(cid:129) Sakurashinmachi

Branch

(cid:129) Hatagaya Branch
(cid:129) Head Office
(cid:129) Iidabashi Branch
(cid:129) Ikebukuro Branch
(cid:129) Ikebukuro

Metropolitan Plaza
Branch

(cid:129) Jiyugaoka Branch
(cid:129) Kamata Branch
(cid:129) Kanda Branch
(cid:129) Kichijoji Branch
(cid:129) Kinshicho Branch
(cid:129) Koishikawa Branch
(cid:129) Koiwa Branch
(cid:129) Kojimachi Branch
(cid:129) Kokubunji Branch
(cid:129) Machida Branch
(cid:129) Mita Branch
(cid:129) Nakameguro

Branch

Branch
(cid:129) Sangenjaya
Branch

(cid:129) Seijo Branch
(cid:129) Senju Branch
(cid:129) Shibuya Branch
(cid:129) Shinbashi Branch
(cid:129) Shinjuku Branch
(cid:129) Shinjuku Nomura
Building Branch

(cid:129) Shinjuku-eki
Nishiguchi
Branch
(cid:129) Tachikawa
Branch
(cid:129) Tamagawa
Branch

(cid:129) Tanashi Branch
(cid:129) Tokyo Branch
(cid:129) Toranomon

Branch

(cid:129) Ueno Branch

Okinawa
(1 Branch)
(cid:129) Naha Branch

Corporate and Other Data

Corporate Data

Company Name
Date of Incorporation December 25, 1925
Head Office

Nomura Holdings, Inc.

1-9-1, Nihonbashi, Chuo-ku,
Tokyo 103-8645, Japan

President & CEO Kenichi Watanabe
Paid-in Capital
Group Employees 26,374 (As of March 31, 2010)

¥594.5 billion (As of March 31, 2010)

Share Data

Common Stock Issued
3,719,133,241 shares (As of March 31, 2010)

Number of Shareholders
428,652 (Unit shareholders: 405,322) (As of March 31, 2010)

Transfer Agent and Registrar
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Department: +81 (3) 5391-1900

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
(%)
100

3/2006

3/2007

3/2008

3/2009

3/2010

Individuals and Others
Other Legal Entities

Foreign Legal Entities
Financial Institutions

Listing
The common shares of Nomura Holdings, Inc. are listed
on the Tokyo, Osaka, Nagoya, and Singapore stock
exchanges. The shares are also listed on the NYSE in the
form of American Depositary Shares (ADSs) evidenced
by American Depositary Receipts (ADRs). Each ADS repre-
sents one share of Common Stock. (As of March 31, 2010)

Securities Code
8604 (Tokyo Stock Exchange)
NMR (New York Stock Exchange)

Major Shareholders (Top 10)

Shareholder Name

Shares Held
(Thousand
shares)

Percentage of
Issued Shares
(%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

The Master Trust Bank of Japan, Ltd.
(Trust Account)

JP Morgan Chase Bank 380055

The Chase Manhattan Bank N.A.
London S.L. Omnibus Account

204,709

169,143

84,722

79,900

State Street Bank and Trust Company

67,218

The Bank of New York Mellon
as Depositary Bank for DR Holders

66,856

OD05 Omnibus China Treaty 808150

48,051

Japan Trustee Services Bank, Ltd.
(Trust Account 9)

State Street Bank
and Trust Company 505225

The Bank of New York Treaty
JASDEC Account

39,699

39,387

34,411

5.50

4.55

2.28

2.15

1.81

1.80

1.29

1.07

1.06

0.93

Note: The Company had 49,025 thousand shares of treasury stock as of
March 31, 2010 which are not included in the Major Shareholders
list above.

Date of Record for Dividend Payments

September 30

March 31

Dividend Payment Date

December 1

June 1

Second Quarter

Year-end

Other

Credit Rating

S&P

Moody’s

R&I

JCR

*As of May 31, 2010

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-1

—

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1
0
2

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A

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n

,
s
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H
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u
m
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N

9
4

–

8
4

For More Information

Nomura Holdings, Inc.
Investor Relations Department
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

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