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Nomura Holdings, Inc.
NOMURA Report 2012
NOMURA Report 2012
NOMURA Report 2012
The NOMURA Report represents an integrated version
of our annual and citizenship reports to help foster
broader understanding of our business activities.
Our Founder’s Principles have been an integral part of Nomura’s culture for over
80 years. Everything we do is focused on our clients, an approach that reflects
our founder’s philosophy of prospering with our clients. With greater economic
globalization taking place and following the financial crisis, the importance of
companies engaging in corporate social responsibility (CSR) as well as
environment, society and governance (ESG) activities has become clear and the
expectation for the business increased. In the midst of this, we recognize the
value of responding to a changing society while in turn meeting our clients’
needs. As a result of this perspective, and beginning with the fiscal year under
review, we have decided to publish the NOMURA Report, which represents an
integrated version of our annual and citizenship reports detailing our CSR
initiatives. In this manner, we will more actively disclose information to our
stakeholders. Through this report, we hope that readers can gain a broader
understanding of our efforts as Asia’s global investment bank to help society
develop sustainably, and about our business activities that grow together with
our stakeholders.
Contents
Nomura Group Highlights
Global Network
Message from the Group CEO
Message from the Group COO
Chapter I
Business for Sustainability
Stakeholder Dialog: Creating a New Business Model to Drive Regional Revitalization
At a Glance
Retail
Asset Management
Wholesale
Global Research
Message from CFO
Chapter II Responsible Business
Corporate Governance
CSR Management
Risk Management
Compliance
Restoring Trust and Credibility
Chapter III Citizenship
Stakeholder Dialog: Responding to the Voice of Society
Our Community
Our People
Our Environment
Data Section
Five-Year Financial Summary
Key Facts related to CSR
Independent Assurance on Environmental Reporting/External Assessment related to CSR
Board of Directors/Executive Management Structure
Nomura Securities Domestic Network
Corporate Data
Website Information
03
05
07
10
12
15
17
21
25
31
33
36
39
41
43
45
48
51
55
59
63
65
69
70
72
73
74
Report Period
Previous Report
Next Report
Entities Covered
Reference Guidelines
April 1, 2011 to March 31, 2012
(although some content may be outside this timeframe)
September 2011
August 2013
Nomura Holdings, Inc. and its major subsidiaries and affiliates.
Numerical data are presented alongside information on the scope of
companies covered.
• Sustainability Reporting Guidelines (G3.1) of Global Reporting Initiative
(The GRI Guidelines Index is published on our corporate website at
the following address. http://www.nomuraholdings.com/csr/)
• Environmental Reporting Guidelines (2012 Version) of Japan’s
Ministry of the Environment
• Charter of Corporate Behavior of Nippon Keidanren
Forward-Looking Statements
This 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
information currently available to the Company and are subject to a
number of risks, uncertainties, and assumptions, which, without
limitation, include market trends, economic trends, competition in
the financial industry, laws and regulations, and the tax system. As
such, actual results may differ materially from those projected.
NOMURA Report 2012
Nomura Group Highlights
Business Domains
Retail
Nomura delivers a wide array of
financial services to individual and
corporate
a
nationwide network of 178 branch
offices, call centers and online.
through
clients
Asset
Management
Nomura offers asset management
services globally
retail and
institutional investors.
to
Retail client assets
Total assets under management
¥72.0 trillion
(As of March 31, 2012)
¥24.6 trillion
(As of March 31, 2012)
Wholesale
Fixed Income
Equities
Investment
Banking
Nomura provides research and distribution,
structuring and trading of global securities.
The Tokyo Stock
Exchange overall
ranking:
1st
The London Stock
Exchange customer
ranking:
1st
Nomura provides equity and debt financing,
risk solutions and advisory services to a
broad range of international clients.
Japan-related ECM,
DCM and M&A league
tables*:
1st
Global ECM league
table*:
10 th
* Source: Thomson Reuters (January 2011 – December 2011) for ECM and M&A, and Thomson DealWatch (April 2011 – March 2012) for Japan-related DCM.
Net revenue by business segment
(Billions of yen)
1,500
Other
Wholesale
Asset
Management
Retail
1,000
500
0
–500
Income (loss) before income taxes by
business segment
(Billions of yen)
400
200
0
–200
–800
Other
Asset
Management
Retail
Wholesale
Number of employees by region
(People)
40,000
30,000
20,000
10,000
0
Asia-Pacific
Americas
Europe
Japan
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
NOMURA Report 2012
External Assessment
Nomura’s CSR initiatives have won strong commendations. We
have been included in the Dow Jones Sustainability Indexes, the
FTSE4Good Index and the MS-SRI Index (as of January 2012).
FTSE4Good ESG Ratings: Nomura recognized as a
Supersector leader
Nomura Holdings was recognized as Supersector
leader for the second consecutive year in FTSE4Good
ESG Ratings*. In fiscal 2011, Nomura was recognized
as first in the financial services sector and first among
Japanese companies. (as of March 2012)
* FTSE4Good ESG Ratings: An assessment of 2,300 companies around the
world conducted by FTSE, a subsidiary of the London Stock Exchange, and
EIRIS, a socially responsible investing research firm.
Memberships
Nomura belongs to and is an active member of numerous business and trade associations, including:
• Nippon Keidanren
• Principles for Financial Action towards a
• British Bankers Association
• Japan Securities Dealers Association
• The Investment Trusts Association, Japan
• Japan Securities Investment Advisers
Association
• The Financial Futures Association of Japan
• KEIZAI DOYUKAI (Japan Association of
Corporate Executives)
Sustainable Society (Principles for
Financial Action for the 21st Century)
• World Economic Forum
• Confederation of British Industry
• Institute of International Finance
• Opportunity Now (Gender equality
• UN PRI (Principles for Responsible
organization)
Investment)
• Banking Environment Initiative
• Association of Financial Markets Europe
• Employer’s Forum on Disability
• The Japan Society
Total risk-weighted assets and Tier 1 ratio
Total assets
Short-term and long-term unsecured debt
(Billions of yen)
15,000
12,000
9,000
6,000
3,000
0
(%)
20
16
12
Tier 1 ratio
Total
risk-weighted
assets
8
4
0
(Trillions of yen)
40
(Billions of yen)
10,000
30
20
10
0
Short-term
unsecured
debt
Long-term
unsecured
debt
8,000
6,000
4,000
2,000
0
2008/09
2009/10
2010/11
2011/12
(Fiscal year)
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
NOMURA Report 2012
Global Network
276 sites in 39 countries (consolidated subsidiaries and companies accounted for by the equity method)
London
Major
Subsidiaries
and Affiliates
Retail
Asset
Management
Wholesale
Others
Tokyo
New York
Hong Kong
Singapore
Europe & Middle East
Asia Pacific
Americas
Capital Nomura Securities Public Company Limited *
Nomura Asset Management Hong Kong Ltd.
Head and branch offices and business offices:
Hong Kong, Shanghai
Nomura Asset Management Singapore Ltd.
Nomura Asset Management Malaysia Sdn. Bhd.
Nomura Islamic Asset Management Sdn. Bhd.
Nomura Asset Management Australia Pty Limited
Nomura Asia Holding N.V.
Nomura International (Hong Kong) Limited
Head and branch offices and business offices:
Hong Kong, Taipei, Hanoi
Nomura Singapore Limited
Other affiliated company locations
Singapore, Kuala Lumpur, Sydney, Manila, Jakarta, Seoul,
Bangkok, Shanghai, Powai, Mumbai
Nomura Asset Management U.K. Limited
Nomura Asset Management Deutschland KAG mbH
Nomura Europe Holdings PLC
Nomura International PLC
Head and branch offices and business offices: London, Madrid, Vienna,
Dubai, Qatar
Nomura Bank International PLC
Head and branch offices and business offices: London, Italy, Labuan
Nomura Principal Investment PLC
Nomura Capital Markets PLC
Other affiliated company locations
Amsterdam, Paris, Luxembourg, Zurich, Milan, Warsaw,
Moscow, Bahrain, Dublin
Nomura Bank (Luxembourg) S.A.
Other affiliated company locations
Powai
Japan
Nomura Securities Co., Ltd.
Nomura Healthcare Co., Ltd.
Nomura Agri Planning & Advisory Co., Ltd.
Nomura Farm Co., Ltd.
Nomura Securities Co., Ltd.
Nomura Capital Investment Co., Ltd.
Nomura Principal Finance Co., Ltd.
Nomura Asset Management Co., Ltd.
Nomura Funds Research and Technologies Co., Ltd.
Nomura Private Equity Capital Co., Ltd.
Nomura Asset Management USA Inc.
Nomura Global Alpha LLC
Nomura Corporate Research and Asset Management Inc.
Nomura Funds Research and Technologies America, Inc.
Nomura Holding America Inc.
Head and branch offices and business offices: New York, Washington, D.C.
Nomura Securities International, Inc.
Head and branch offices and business offices: New York, Atlanta, São Paulo,
San Francisco, Chicago, Houston, Boston, Miami, Los Angeles
INSTINET INCORPORATED
Other affiliated company locations
Toronto
The Nomura Trust & Banking
Nomura Babcock & Brown Co., Ltd.
Co., Ltd.
Nomura Pension Support & Service
Nomura Facilities, Inc.
Co., Ltd.
Nomura Land and Building Co., Ltd.
Nomura Research & Advisory Co., Ltd.
Nomura Real Estate Holdings, Inc.
Nomura Research Institute, Ltd. *
Nomura Investor Relations Co., Ltd.
JAFCO Co., Ltd. *
Nomura Business Services Co., Ltd.
Nomura Institute of Capital
Markets Research
NOMURA Report 2012
* Affiliated companies accounted for by the equity method
London
Major
Subsidiaries
and Affiliates
Retail
Asset
Management
Others
Tokyo
New York
Hong Kong
Singapore
Nomura Asset Management Hong Kong Ltd.
Head and branch offices and business offices:
Hong Kong, Shanghai
Nomura Asset Management Singapore Ltd.
Nomura Asset Management Malaysia Sdn. Bhd.
Nomura Islamic Asset Management Sdn. Bhd.
Nomura Asset Management Australia Pty Limited
Nomura Asia Holding N.V.
Nomura International (Hong Kong) Limited
Hong Kong, Taipei, Hanoi
Nomura Singapore Limited
Other affiliated company locations
Singapore, Kuala Lumpur, Sydney, Manila, Jakarta, Seoul,
Bangkok, Shanghai, Powai, Mumbai
Wholesale
Head and branch offices and business offices: London, Italy, Labuan
Nomura Europe Holdings PLC
Nomura International PLC
Dubai, Qatar
Nomura Bank International PLC
Nomura Principal Investment PLC
Nomura Capital Markets PLC
Other affiliated company locations
Amsterdam, Paris, Luxembourg, Zurich, Milan, Warsaw,
Moscow, Bahrain, Dublin
Nomura Bank (Luxembourg) S.A.
Other affiliated company locations
Powai
Europe & Middle East
Asia Pacific
Capital Nomura Securities Public Company Limited *
Japan
Nomura Securities Co., Ltd.
Nomura Healthcare Co., Ltd.
Nomura Agri Planning & Advisory Co., Ltd.
Nomura Farm Co., Ltd.
Americas
Nomura Asset Management U.K. Limited
Nomura Asset Management Deutschland KAG mbH
Nomura Asset Management Co., Ltd.
Nomura Funds Research and Technologies Co., Ltd.
Nomura Private Equity Capital Co., Ltd.
Nomura Asset Management USA Inc.
Nomura Global Alpha LLC
Nomura Corporate Research and Asset Management Inc.
Nomura Funds Research and Technologies America, Inc.
Head and branch offices and business offices: London, Madrid, Vienna,
Head and branch offices and business offices:
Nomura Securities Co., Ltd.
Nomura Capital Investment Co., Ltd.
Nomura Principal Finance Co., Ltd.
Nomura Holding America Inc.
Head and branch offices and business offices: New York, Washington, D.C.
Nomura Securities International, Inc.
Head and branch offices and business offices: New York, Atlanta, São Paulo,
San Francisco, Chicago, Houston, Boston, Miami, Los Angeles
INSTINET INCORPORATED
Other affiliated company locations
Toronto
* Affiliated companies accounted for by the equity method
NOMURA Report 2012
The Nomura Trust & Banking
Co., Ltd.
Nomura Facilities, Inc.
Nomura Land and Building Co., Ltd.
Nomura Real Estate Holdings, Inc.
Nomura Investor Relations Co., Ltd.
Nomura Business Services Co., Ltd.
Nomura Institute of Capital
Markets Research
Nomura Babcock & Brown Co., Ltd.
Nomura Pension Support & Service
Co., Ltd.
Nomura Research & Advisory Co., Ltd.
Nomura Research Institute, Ltd. *
JAFCO Co., Ltd. *
Message from the Group CEO
Placing clients at the heart of everything we do and ensuring
Nomura is fit for the future
Rebuilding trust
In August 2012, Nomura Securities Co., Ltd., a core Nomura Group company
in Japan, was subject to a business improvement order by Japan’s Financial
Services Agency. We take this matter very seriously and deeply regret the
trouble caused. I would like to take this opportunity to apologize to all of our
stakeholders.
We are currently enhancing our internal controls across the entire group.
We are conducting training sessions for executives and employees and
implementing a series of improvement measures to prevent similar incidents
from occurring in the future.
To monitor progress, Nomura Securities has established an Improvement
Measures Implementation Committee, which is under my direct control and
includes our Internal Control Supervisory Manager and relevant executive
officers and department heads.
Koji Nagai
Group CEO
NOMURA Report 2012
A new Nomura
As we work to rebuild trust, Nomura is committed to realizing the social
mission of the securities business of contributing to economic growth and
sustainable social development. I intend to create a new Nomura by reaffirming
our responsibility to society as a leading company in the capital markets and
by encouraging a change in the mindset of all Nomura people through revising
our organizational structure, including our personnel systems.
Meeting the needs of our clients and society
The global economy currently faces significant challenges that are leading to
transformational changes in society. In order to remain a trusted partner to our
clients and a responsible corporate citizen, we must tailor our services to the
increasingly diverse and sophisticated needs of our clients and adjust to the
ongoing changes in the communities where we live and work. In other words,
we have to ensure we are fit for the future by changing ourselves to adapt to
social change and our clients’ needs. We aim to deliver high value-added
financial services by placing our clients at the heart of everything we do.
Asia’s global investment bank
Nomura remains committed to being Asia’s global investment bank. We are
closely analyzing the current market environment, including the economic
situation in Europe and the global shift to tighter regulations. We will allocate
management resources to areas where we can leverage our strengths.
Asia is poised to drive the global economy over the coming years and
we believe Nomura is well placed to play a leading role in the region’s growth.
As such, we will further develop our global business model centering on our
home market of Asia including Japan. We have set a medium-term target of
achieving earnings per share of ¥50 by the end of March 2016. In terms of
pretax income, that translates to around ¥250 billion, which we expect to be
made up of ¥125 billion from Wholesale, ¥100 billion from Retail, and ¥25
billion yen from Asset Management.
In Wholesale, we will leverage our global platform and focus on cross-
border businesses that connect Asia with Europe and the Americas. Our highest
priority in Retail is to listen closely to our clients and provide consulting based
NOMURA Report 2012
services to meet their individual needs. Asset Management aims to establish
itself as a distinct Asian asset manager by offering clients a diverse range of
investment opportunities. These initiatives will increase the ability of both Retail
and Asset Management to provide the firm with a stable earnings base.
This year we have combined the financial information from our annual report
and the corporate social responsibility and environmental, social, and
corporate governance initiatives outlined in our citizenship report into a single
report. With this new Nomura Report we hope to provide all of our stakeholders
with a detailed view of the direction we are moving in as we navigate the
changing environment to take the firm the next level.
To further integrate our business activities and corporate citizenship
initiatives, I have taken over as chairman of the firm’s CSR Committee. Nomura
is committed to contributing to sustainable development through our core
business and corporate activities in order to make the world a better place for
future generations.
We will focus everything we do on our clients, transforming Nomura into a
corporate citizen that works closely with the communities in which we operate
and listens intently to our clients and other stakeholders.
Koji Nagai
Group CEO
Message from the Group CEO
Nomura Report
NOMURA Report 2012
Message from the Group COO
Asia advantage
Nomura’s competitive advantage lies in our roots in Asia, a region expected
to enjoy strong growth in the years ahead and the location of a deep pool of
funds looking for investment opportunities.
As Asia’s global investment bank, Nomura has a formidable client
franchise across all our businesses in Japan and we have built up a global
platform tailored to regional strategies in the Americas, EMEA, and Asia ex-
Japan. This allows us to work with our clients on local businesses in each
region and on cross-border opportunities that bridge East and West.
A strong commitment to collaboration across regions and divisions
within the firm means we are well placed to deliver best-in-class solutions that
meet the diverse needs of our global client base.
Wholesale profitability
The challenges faced by our industry are underscored by the current global
economic slowdown, precipitated by the sovereign debt crisis in Europe, and
the ongoing move to tighter financial regulations around the world. Given that
we expect this environment to continue, our immediate priority is to improve
the profitability of our Wholesale division.
We have positioned Asia including Japan as our home market and we
are shifting to a global business model centered on Asia. We are focusing on
businesses in each region that offer synergies with other regions and divisions
or are profitable on a stand-alone basis. At the same time, we are working to
lower our break-even point to ensure Wholesale is profitable without relying
on a market recovery.
Nomura has a long history in Asia. Over the years we have forged close
relationships with a broad range of clients in the region. Combined with our
dominant client franchise in Japan, this forms a solid base to connect with our
operations in EMEA and the Americas for a globally linked business platform
to drive earnings growth.
Looking ahead, we aim to further enhance our presence as a trusted
financial services group focused on our global client base.
Atsushi Yoshikawa
Group COO
NOMURA Report 2012 0
Chapter I
Business for Sustainability
Business for
Sustainability
Responsible
Business
Citizenship
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Stakeholder Dialog
Creating a New Business Model to Drive Regional Revitalization
Case 1
Establishing an Agribusiness Model for Future Generations
Nomura Agri Planning & Advisory is helping to industrialize agriculture by utilizing local
information obtained from the Nomura Group’s nationwide network of 178 head and branch
offices and wealth of financial expertise. The company’s subsidiary Nomura Farm is working
together with agricultural producers’ co-operative corporation “wagoen” in Chiba Prefecture,
Japan, to build expertise on farm management through growing tomatoes.
Views from Stakeholders
Building a food
manufacturing industry in a
speedy manner
Hirokazu Kiuchi
President
Agricultural producers’ co-operative corporation “wagoen”
in the
Defining agriculture as a ‘food manufacturing industry’ can help
people gain a business management perspective that is lacking
today, generate employment opportunities
local
community, and develop the industry for future generations.
The strength of Japan’s agriculture is forward-looking, exciting
products that capture consumer demand. Once it can utilize
the expertise of other industries and establish an integrated
service combining production, processing and distribution,
Japan’s agribusiness will be able to accommodate domestic
demand even better and also capture foreign currency through
international demand, and it will be able to contribute to the
benefit of the country.
I expect the Nomura Group to serve as a facilitator
between a wide range of industries, provide information on
international markets, and offer financing support, which is the
‘blood’ flowing through the veins of industry. On the other hand,
the food industry experiences fast-paced trend cycles, meaning
that strategies will face a quick expiration date. This is why I’d
like Nomura to help us quickly come up with a successful
business model.
Helping to industrialize agribusiness
by utilizing experience in agriculture
as a management resource
Yuuki Takagi
President (former Administrative Vice-Minister for MAFF)
Japan Professional Agriculture Total Support Organization
In order to sustain agriculture as an industry, we need to
increase the number of people who engage in agriculture with
an eye on business management, or so-called ‘sustainable
agribusiness entities.’ The Japan Professional Agriculture Total
Support Organization (J-PAO) engages in activities aimed at
this goal. I believe many of Japan’s technologies and its know-
how from other industries can and should be widely applied to
agriculture. In order to attract the technologies and know-how
of various sectors and companies to agriculture, it will be
important to promote a greater interest in agriculture from
people throughout Japan.
I would like the Nomura Group to connect agriculture
with a wide range of industries by utilizing its broad business
network and the agribusiness know-how it has accumulated
through partnerships in tomato cultivation with producers. I
anticipate that Nomura’s unique management resources will
play a key role in establishing a new agribusiness model and
speeding up the industrialization process.
Response to Stakeholder Dialog
Supporting agriculture’s industrialization while recognizing regional revitalization as a business opportunity
Agriculture is an industry deeply rooted in the local community. Revitalizing this important industry will not
only enhance local economies and provide demand for financing, but also can become a solution for
many of the challenges facing society today, such as Japan’s declining birthrate and aging population,
economic disparities between regions, food security and environmental issues. Although agriculture
faces many challenges, Nomura believes that this means there are also many opportunities to revitalize
regional economies. Regional revitalization and the international expansion of Japan’s agribusiness
represent major business opportunities for Nomura. I hope to contribute to the industrialization of
agriculture more quickly by leveraging the financial expertise from our core business, our domestic and
international network and the know-how gained from our business experiences in agriculture.
Takashi Nishizawa
President
Nomura Agri Planning &
Advisory Co., Ltd.
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Stakeholder Dialog
Creating a New Business Model to Drive Regional Revitalization
Case 2
Supporting Regional Economic Revitalization in Mie Prefecture
Nomura Securities is helping to support regional economic revitalization in Mie Prefecture through
its involvement in Mie University’s Regional Area Strategy Center together with local regional banks
and other parties. The center is a think tank that works to resolve regional issues by leveraging the
university’s intellectual assets and private-sector network. The center has also begun to provide
support to companies from Mie Prefecture looking to expand into the ASEAN market. Going
forward, we stand at the ready to provide a wide range of support to the regional revitalization of
Mie Prefecture by capitalizing on the strengths of the Nomura Group.
Views from Stakeholders
Developing a local think tank
that can help revitalize the
regional economy
Atsumasa Uchida
President
Mie University
Mie University’s Regional Area Strategy Center is a local think
tank established to tackle the challenges faced by the
prefecture’s local economy.
Although we are one of Japan’s leading universities in
terms of joint research conducted with local companies, we still
need to capitalize on the knowledge accumulated by the
university to play a role as a coordinator that connects local
residents, companies, municipalities and
the national
government. This is why we decided to welcome the involvement
of the Nomura Group to take full advantage of its vast network.
The center has already launched several projects, including
one aimed at commercializing citrus fruit production in the southern
part of the prefecture to help promote regional revitalization.
Conventionally, such projects were the domain of the prefectural
government, but the center won a mandate for implementation,
making it one of Japan’s forerunners in terms of regional revitalization
through business–academia collaboration. Moving forward, I
anticipate that we will be able to make greater progress with regional
collaboration thanks to our newfound knowledge of Japan and the
world through our partnership with the Nomura Group.
Response to Stakeholder Dialog
Using ‘collaborative innovation’ to
revitalize Mie’s economy and
generate employment opportunities
Susumu Yamakawa
General Manager
Economics and Employment Department
Mie Prefectural Government
Today, Mie Prefecture’s economy is supported by mid-
stream industries that serve as materials processing
suppliers to major manufacturers. Our challenge will be
making these industries stronger and capable of generating
more employment opportunities.
With more of these companies expanding operations
overseas, it has become increasingly important to focus on
capturing global demand by reviewing the role of Japan and
Mie Prefecture from the perspective of international markets.
As a result, Mie Prefecture has established a Sales and
Marketing Division
the prefecture’s
manufacturing base once again into key export industries.
transform
to help
Mie Prefecture has positioned
the concept of
‘collaborative innovation’ with private sector companies and
local communities as an important pillar in its vision for the
prefecture. I have high expectations that the Nomura Group
will be able to provide support as a globally minded
professional organization with financing solutions and the
capabilities needed to help build the overseas presence of
Mie Prefecture companies.
Contributing to the revitalization of regional industries through initiatives directly related to our core business
We are providing a wide range of support aimed at regional economic revitalization in Mie Prefecture.
This includes support to the prefecture’s only national university through our involvement in the Regional
Area Strategy Center and to its government by helping companies in the prefecture to expand into the
ASEAN market. We believe that assisting regional initiatives and helping to revitalize the local economy
are integral to the growth of our own core business as well as to fulfilling our social responsibility. While
this process is expected to require some time, we expect that our competitiveness will also be enhanced
over the long term as a result. Using our nationwide network of 178 head and branch offices, we will
continually identify the needs of our clients locally and provide solutions to key issues by combining
information obtained through these ventures with our group’s vast global network.
Masamichi Niisato
Managing Director,
Tsu Branch Office
Nomura Securities
NOMURA Report 2012
Case 3
Helping Rebuild in the Aftermath of the Great East Japan Earthquake
In April 2012, Nomura Securities concluded an agreement with Fukushima University to
support the reconstruction effort following the devastating earthquake and tsunami that struck
in 2011. Fukushima University has been working diligently on reconstruction initiatives in
Fukushima Prefecture, which suffered extensive damage from the earthquake, tsunami and
nuclear accident at the Fukushima Daiichi Nuclear Power Plant. Through this agreement,
Nomura Securities is committed to assisting not only Fukushima University, but also the
reconstruction effort across the whole of Fukushima Prefecture as well.
Views from Stakeholders
I would like to combine our
university’s knowledge with
Nomura’s broad network
Osamu Nittono
President
Fukushima University
As a university in the region, Fukushima University established
the Fukushima Future Center for Regional Revitalization in April
2011 in order to promote an organized, long-term approach to
the reconstruction effort together with Fukushima Prefecture,
municipalities, various organizations and NPOs. However, the
university lacks the information and intellectual properties
needed to push forward with the real reconstruction effort today
and beyond. This is why we decided to conclude an agreement
with the Nomura Group, to capitalize on its wealth of information
and broad network.
For us, the Nomura Group’s truly extensive network
caught our eye, as did its involvement in small-scale hydroelectric
power, energy conservation and smart grids, which will form an
important part of the reconstruction effort. In addition, we will
be conducting surveys on the disaster-affected areas together
with the Nomura Group, including surveys on harmful rumors.
By aptly combining one another’s strengths and perspectives,
I believe that together we will be able to successfully establish
a foundation for the reconstruction effort.
Response to Stakeholder Dialog
I welcome the frank feedback
and advice provided by the
private sector
Youichi Nozaki
General Manager
Planning and Coordination Department
Fukushima Prefectural Government
Following the earthquake, Fukushima Prefecture has seen an
exodus of its population. Therefore, we are taking prefecture-
wide efforts to address this issue by focusing on employment
and healthcare. We have developed mechanisms to attract
private sector companies and generate employment, in order
to develop an environment where the young generation can live
with peace of mind. I believe the reconstruction effort in
Fukushima Prefecture will not be a success without a
local government, private sector,
partnership
companies, NPOs and local residents.
involving
The Nomura Group has many tools at its disposal that
can help supplant any shortfalls in the government or local
communities. I believe that Fukushima University will be able to
leverage these tools in the reconstruction effort and thereby
provide more effective support to municipalities throughout the
prefecture. I would also like the Nomura Group to share its
perspective as a private sector company to point out shortfalls
and what needs to be done by the government.
Contributing to the reconstruction of Fukushima Prefecture and creating a new future as a corporate citizen
intertwined with the local economy
Our nationwide network of 178 head and branch offices shows that we are a company truly rooted in
the local economy. We cannot grow as a company without regional economic growth. As a result, we
are committed more than ever before to helping local economies grow, as evidenced by our regional
revitalization initiatives implemented in tandem with universities and local governments across Japan.
We have three branch offices located in Fukushima Prefecture, which is in the process of recovering from
the Great East Japan Earthquake of 2011. Over the years we have provided information to and held
discussions with Fukushima University and Fukushima Prefectural Government. Our agreement with
Fukushima University will enable us to leverage our network for the benefit of reconstruction assistance
initiatives, which in turn will help Fukushima recover quicker and enable us to create a new future together.
Masaru Omori
Managing Director
Institutional Clients
Consulting Department
Nomura Securities
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
At a Glance
Retail
Nomura’s Retail business in Japan delivers a wide array of financial services to individual and
corporate clients through a nationwide network of 178 branch offices (as of March 31, 2012), call
centers, and online.
Our branch offices provide in-depth, consulting-based services tailored to our clients’
individual needs. This is backed by a range of services, investment insights, and financial products
available through our call centers and online platforms.
p.17
Asset Management
Asset Management operates as a global business with ¥25.0 trillion of assets under management
from both retail and institutional investors. (as of March 31, 2012)
Our investment trust business in Japan delivers a diverse range of products through
distribution channels such as securities firms including Nomura Securities Company, banks,
Japan Post Bank, and branches of Japan Post.
We also run a global investment advisory business that offers a high level of service to
pension funds, governments and central banks, commercial banks, insurers, and other
institutional investors around the world.
p. 21
Wholesale
Consists of Fixed Income, Equities, Investment Banking and serves a broad range of global
corporations, governments and financial institutions.
The Fixed Income and Equities focus on institutional investment research and the
distribution, structuring and trading of global securities. Investment Banking provides equity and
debt financing, risk solutions and advisory services to a broad range of international clients.
Note: Wholesale results do not reflect reclassifications due to a reorganization in April 2012.
NOMURA Report 2012
p. 25
Net revenue
2011/2012
¥350.3 billion
Down 10.7% year on year
Non-interest expenses
2011/2012
¥287.1billion
Down 1.4% year on year
Net income before income taxes
2011/2012
¥63.1billion
Down 37.6% year on year
(Billions of yen)
500
(Billions of yen)
300
(Billions of yen)
150
400
300
200
100
0
200
100
0
100
50
0
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
Net revenue
2011/2012
¥65.8 billion
Down 1.1% year on year
(Billions of yen)
100
80
60
40
20
0
Non-interest expenses
2011/2012
¥45.3 billion
Down 2.6% year on year
Net income before income taxes
2011/2012
¥20.5 billion
Up 2.5% year on year
(Billions of yen)
(Billions of yen)
60
40
20
0
40
30
20
10
0
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
Net revenue
2011/2012
¥555.9 billion
Down 11.8% year on year
Non-interest expenses
2011/2012
¥593.5 billion
Down 4.9% year on year
Net income (loss) before income taxes
2011/2012
¥-37.6 billion
(Billions of yen)
800
(Billions of yen)
800
(Billions of yen)
200
600
400
200
0
-200
600
400
200
0
100
0
-100
-200
-800
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
2007/08 08/09
09/10
10/11
11/12
(Fiscal year)
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Retail
The Retail Division delivers a wide range of financial products and high quality
investment advice, consistently enhancing its services in order to respond to the diverse
and increasingly sophisticated needs of clients. These services are provided through
several channels including a nationwide network of 178 branch offices (as of March 31,
2012) and Nomura Net & Call, which commenced services in October 2011.
We seek to strengthen our consulting-based sales, and deliver top-quality products
and services tailored to the needs of each client, so that the Nomura Group can
remain a trusted partner to our clients.
Financial Review
environment. As a result, our clients are
concerned about how they should design their
investments for the future, in order to prepare
for the likely risks that lie ahead and safely pass
on their assets to future generations.
Market Environment
Retail investors in Japan face an increasingly
Meanwhile,
the evolution of digital
information devices and the growth of global
uncertain environment both at home and
communication networks have reduced the
abroad. Domestically, more than a year and a
disparity
that once existed
in accessing
half have passed since the earthquake and
information. These have enabled anyone to
tsunami disaster, but Japan continues to face
keep abreast of the latest information, and as a
many
issues
including serious structural
result, clients’ engagement with the market is
challenges that were present prior to the
changing at an accelerated pace.
disaster, such as the country’s fiscal problem, a
Given this environment, clients’ financial
dwindling birthrate and an aging population.
needs are becoming increasingly diverse and
Internationally,
the
prolonged European
sophisticated. This requires financial institutions
sovereign debt crisis and other geopolitical risks
to provide even greater levels of service, tailored
are deepening.
to the needs of each individual client.
With uncertainty growing due to this
Over half of Japan’s personal financial
complicated mixture of social factors, it has also
assets continue to remain in savings and deposit
become difficult to predict the emerging market
accounts. As a result, the role of financial
Retail client assets
(Trillions of yen)
72.2
73.5
70.6
72.0
59.3
80
60
40
20
0
institutions continues to be essential in ensuring
a smooth flow of funds into the economy.
Moreover,
through
their services, financial
institutions are expected to make contributions
to the development of the economy and society.
With a nationwide network of branch
offices, call centers and Internet services, we
will continue to provide world-class products
and services centered on consulting-based
sales, and implement a series of strategic
initiatives to ensure we remain a trusted partner
to our clients.
Other
Overseas Mutual Funds
Bond Investment Trusts
Stock Investment Trusts
Domestic Bonds
Foreign Currency Bonds
Equities
2007/08
2008/09
2009/10
2010/11
2011/12
(Fiscal year)
NOMURA Report 2012
Financial Results for FY2011/12
Despite the extremely challenging economic
services, we have set up special desks staffed
with highly knowledgeable financial professionals
environment, net revenue for FY2011/12 was
at our nationwide network of branch offices. In
¥350.3 billion, non-interest expenses were
FY2011/12, an additional four branches were
¥287.1 billion, and income before income taxes
opened in Tottori, Imabari, Shonai and Kamiooka
was ¥63.1 billion. These results helped drive
in order to broaden interaction with our clients.
company-wide profits for the year.
We launched Nomura Net & Call last October to
At the end of March 2012, we had 4.985
provide non
face-to-face services via the
million client accounts, an increase of about
Internet and call centers. We will continue to
49,000 accounts from March 2011. We steadily
enhance our service offerings with the hope of
expanded our client franchise during the year
laying the groundwork for addressing the needs
with net asset inflows of ¥2.4 trillion.
of an increasing number of clients going forward.
Retail client assets increased by ¥1.4
For clients with Japanese-style ESOPs and
trillion to ¥72.0 trillion as of March 31, 2012.
defined contribution pension funds, we also
Retail maintained a high level of total sales,
continue to provide convenient services.
driven primarily by a wide variety of investment
In addition to these structural improvements,
trusts tailored to the needs of our clients, and
Retail recognizes the importance of enhancing
selected foreign denominated bonds.
client satisfaction by delivering top quality
Looking Forward
The challenging business environment will likely
services that meet the various needs of clients
better than ever before. We offer our people on-
the-job training to help them increase their
persist in FY2012/13. Nevertheless, Retail will
consulting skills. This practical
training
is
seek ways to expand profitability by promoting
reinforced by head office support given to
a thorough approach to consulting-based sales,
branch offices. Moreover, we continue to expand
while also growing client assets. We will continue
our lineup of products and services that
to focus on strategic initiatives around our
accommodate client needs, streamline our
distribution channels, marketing, network of
operations using IT technologies and focus on
branches, human resources, products and IT
enhancing our level of client service. As we build
technologies, and we will implement various
up our capabilities, we remain committed to
tactical measures aimed at making further
taking our Retail operations to the next level and
strides forward.
creating an organization that contributes to our
In catering to the diverse needs of both
clients, our regional economies, and our society.
retail and corporate clients with face-to face
Business results
(Billions of yen)
Accounts with balance
FY2007
/08
FY2008
/09
FY2009
/10
FY2010
/11
FY2011
/12
Net revenue
402.0
291.9
388.3
392.4
350.3
Non-interest expenses
279.7
273.6
274.9
291.2
287.1
Income before
income taxes
122.3
18.2
113.4
101.2
63.1
(Thousands)
5,000
4,000
3,000
0
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Retail
Responding to Clients’
Needs/Feedback from
Clients
Promoting Consulting-based Services to
Enhance Customer Satisfaction
Retail capitalizes on a diverse array of tools to
visit the Nomura Securities website.
http://www.nomura.co.jp/support/voice/index.html
Customer Questionnaire
In order to ascertain customer satisfaction
levels, since January 2011 we have regularly
conducted a Customer Questionnaire, which
covers our customer services and product
provide consulting-based services that fulfill the
explanations. Results of this questionnaire are
needs of its clients. The Asset Design Service is
shared with management, head office and
a tool that uses interviews with clients to
branch offices, and as a result improvement
ascertain and analyze their current asset situation
measures are examined by Retail to provide
and deliver an optimal investment management
better overall service.
plan customized to their life goals.
NOMURA i-port is a system that enhances
the risk management of corporate clients by
centrally managing information on their securities
portfolios, including balances, profit and loss,
and risk. Retail is committed to leveraging the
various services and tools at its disposal to
improve customer satisfaction.
Business for
Sustainability
Lineup of Products Tailored to the Diverse
Needs of an Aging Society
Older clients need to set aside funds for living
Customer Satisfaction Improvement Committee
Since FY2010/11, Retail has organized the once
expenses later in life as well as make preparations
for leaving an inheritance for their dependants.
monthly CS (Customer Satisfaction) Improvement
To meet these needs, Nomura is taking steps to
Liaison Meeting chaired by the Retail CEO and
enhance its product lineup by offering annuities
consisting of Managing Directors from key
that provide regular income, whole life insurance
departments. The
liaison meeting
reviews
for those clients thinking about their legacy,
complaints,
feedback and
requests made
comparatively low-risk investment trusts, and
through customer service centers, call centers
reconstruction bonds In addition to these
and our website, and based on these reviews,
works to improve the systems and rules so as to
products, we also offer a full lineup of services
that meets the diverse needs of an aging society,
enhance the products and services offered and
such as seminars on inheritance matters and
standards of customer service. For more details,
“My Life Note,” a message written by the client
Customer Satisfaction Questionnaire*
Other
2.6%
Dissatisfied
15.9%
Neither
30.9%
NOMURA Report 2012
* Conducted in January 2012 using postcards
Satisfied
50.6%
to their family members.
Working together with Local Governments,
Universities and Companies
Industry-academia-government collaborations
which leverage the knowledge of the local
universities are essential for revitalizing the
Japanese region’s – the driving force behind
Japan’s national economy. Nomura Securities
works closely in such partnerships all over
Japan, focusing on helping to ‘jump start’ these
regional economies. In Mie Prefecture, Nomura
Securities collaborated with Mie University and
businesses. NAPA works with 25 financial
Hyakugo Bank to establish a regional think tank
institutions across Japan to share information
at Mie University that serves local governments
and promote the agricultural industry, with
and regional industries and also helps to develop
regional revitalization its main objective. NAPA’s
venture businesses in the region. Nomura
affiliate works with local farmers in Chiba
Securities also works with Utsunomiya University
and Hokkaido to produce both outdoor and
and Fukushima University to help revitalize local
indoor grown agricultural crops. Production
economies and provide support for earthquake
technologies and farm management expertise
reconstruction initiatives.
are in turn used in NAPA’s consulting business.
Donations of ¥8 Million Made to Fukushima
University Thanks to Reduced Use of Paper
from E-statements
In April 2012, Nomura Securities concluded a
comprehensive partnership agreement with
Fukushima University’s Fukushima Future
Center for Regional Revitalization, which is
assisting earthquake reconstruction activities in
High sugar-content tomatoes
—the first crop harvested by
Nomura Wago Farm
Helping Revitalize Regional Medicine
through Efforts in Healthcare
the prefecture. This marks the first time that
The healthcare industry in Japan is expected to
Nomura Securities has concluded a partnership
grow on the back of the country’s slowing
agreement with a national university to assist
birthrate and aging population, but the industry
the earthquake reconstruction effort. As part of
is also faced with serious challenges, such as
its support, Nomura Securities initiated the
how to strengthen its management structure
Paper Reduction Project where it donated ¥100
and improve its financial standing. Nomura is
to the Center for every client that agreed to
helping to secure the safety of regional
receive their statements in electronic format. As
medicine, revitalize regional economies and
a result, thanks to the shared commitment of
generate employment opportunities through
our clients, Nomura Securities was able to make
healthcare and nursing care consulting and the
a donation of ¥8,063,400. Nomura Securities
provision of financial solutions by Nomura
stands committed to this accord and will
Healthcare Co., Ltd.
to proactively assist earthquake
continue
reconstruction efforts led by universities and
Nomura Securities also supports hospitals
that provide helicopter emergency medical
local governments.
Helping Revitalize Regional Economies
through Agribusiness
With
lower
industrialization but
increasing
demand for new and innovative food products,
agribusiness offers a significant opportunity for
the revitalization of regional economies. Nomura
is supporting the growth of community based
agricultural industries through the Nomura Agri
Planning & Advisory Co. Ltd. (NAPA). This
leverages the financial services know how and
information gathering abilities of Nomura’s 178
nationwide branch offices
to help grow
services to help build-up the capabilities of
regional medicine. By the end of June 2012, it
had donated ¥1 million to each of 11 hospitals
with a helicopter emergency medical service.
Helicopter emergency medical services play a key role on the frontlines
of regional medicine in Japan.
NOMURA Report 2012 0
Business for
Sustainability
Responsible
Business
Citizenship
Asset Management
FY2011/12 saw a challenging environment amid sluggish market conditions caused
by the European sovereign debt crisis and concerns over a global economic
slowdown. Nevertheless, Asset Management reported higher income in FY2011/12
on the back of inflows of funds into various products, including actively managed
funds, and cost reduction efforts. We will continue to build on this momentum and
remain focused on winning greater trust from retail and institutional investors in
Japan and abroad, and on delivering on our strategy to build a world-class asset
management firm with a strong competitive edge in Asia.
Financial Review
Market Environment and Financial Results
for FY2011/12
assets under management. In addition we focused
on ensuring compliance with investment trust
regulation. Consequently, Nomura Asset
Management’s share (net asset basis) of Japan’s
publicly offered investment trust market stood
at 22.1% as of the end of March 2012.
Despite the challenging environment, our
Japan’s publicly offered investment trust market
investment advisory business steadily increased
declined 5.0% in FY2011/12 to ¥62 trillion due
mandates from institutional investors, including
to sluggish market conditions caused by the
pension funds in Japan and abroad and global
European sovereign debt crisis and concerns
sovereign wealth funds, by responding to the
over a global economic slowdown. However,
specific set of needs that exist in each region
we did see positive inflows of funds from retail
and differing fund management objectives.
investors during the year.
Assets under management totaled ¥24.6
Our investment trust business was able to
trillion at the end of March 2012 on the back of
overcome market price drops thanks to an inflow
inflows of funds into various products including
of funds into a wide range of investment trusts.
actively managed funds.
These include trusts focused on Japanese equities
As a result, Asset Management reported
and overseas bonds. Funds managed by an
net revenue of ¥65.8 billion, down 1.0% year on
investment strategy tailored for the changing
year, and income before income taxes of ¥20.5
economic climate in FY2011/12 helped us expand
billion, an increase of 2.0% year on year.
Total assets under management
Share of public investment trust market in Japan
(As of March 31, 2012)
(Trillions of yen)
30
20
10
0
2007/08 2008/09 2009/10
2010/11
2011/12
(Fiscal year)
Note: The sum for asset management companies that belong to the
Asset Management Division after adjusting for asset overlaps.
NOMURA Report 2012
Other
26.9%
#9
2.9%
#8
3.0%
#7
3.4%
#6
4.1%
Nomura
Asset Management
22.1%
#2
14.7%
#3
10.6%
#4
6.9%
#5
5.4%
Looking Forward
Asset Management is committed to earning
further enhancing our product and our service
offering, and providing educational opportunities
even greater trust from investors around the
for participants on how to manage their
world and growing its business by providing
investments within the schemes.
competitive performance of equity and bond
In the investment advisory business, we
funds not only in Japan and other parts of Asia,
will strive to deliver products that reflect the
but globally.
diverse needs of our clients. In Japan, we will
We will further strengthen our management
fulfill our fiduciary duty and address changes
capabilities for Japanese and Asian equity funds
taking place in the employees’ pension plan. In
where we offer superior experience and results,
terms of product strategy, overall we will aim to
expand
fund management services and
deliver return while reducing total risk in the
research in Emerging Markets, and strengthen
emerging equity funds where we anticipate
strong returns.
portfolio. We will increase the availability of
absolute return, high alpha and RAFI® products*,
enabling clients to enhance yield and returns in
We will provide unique fixed income
the context of a balanced portfolio. Outside of
products like global bond (where we have an
Japan, we will strive to provide competitive,
established track record) and high-yield bond
actively managed funds, including Japanese
funds managed by Nomura Corporate Research
equity, Asian equity and global bond funds, to
and Asset Management Inc., high alpha funds
institutional investors like pension funds in
by Nomura Global Alpha, and inflation-linked
Europe and North America as well as sovereign
bond funds by Nomura Asset Management
wealth funds in Asia and the Middle East.
Deutschland KAG mbH.
In addition to growing revenues, we will
In the investment trust business, we will
continue
to closely manage costs and
establish an even stronger presence in Japan’s
effectively make use of our limited headcount
investment trust market. Along with delivering
and resources.
diverse investment opportunities to meet the
Capitalizing on the above initiatives, Asset
broad range of retail investor needs, we will
Management will achieve stable and sustainable
strive to grow the overall market by expanding
growth as an asset management company that
the scale of our existing products while
is trusted by investors around the world and will
complying with investment trust regulations.
contribute to an increase in earnings by expanding
The defined contribution pension plan
the client franchise of the Nomura Group.
segment represents an important growth driver
for the investment trust market. We will focus on
Investment advisory assets under management
* RAFI® products: Products that
use a portfolio building method
where weight is assigned to a
stock based on fundamental
indicators rather than stock
price.
Business results
FY2007
/08
FY2008
/09
FY2009
/10
FY2010
/11
FY2011
/12
(Trillions of yen)
10
(Billions of yen)
Net revenue
81.1
51.9
62.1
66.5
65.8
Non-interest expenses
50.0
47.8
46.8
46.5
45.3
Income before
income taxes
31.1
4.1
15.2
20.0
20.5
Notes: 1) The defined contribution pension plan business in Asset Management was integrated to Other business
in the second quarter of the fiscal year ended March 31, 2009. Certain reclassifications of previously
reported amounts have been made to conform to the current presentation.
2) Nomura Bank (Luxembourg) S.A. in Asset Management was integrated to Other business in April 2011.
Certain reclassifications of previously reported amounts have been made to conform to the current
presentation.
8
6
4
2
0
Overseas
Domestic
2007/08 2008/09 2009/10 2010/11 2011/12
(Fiscal year)
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Asset Management
Responding to Clients’
Needs/Feedback from
Clients
Survey on Investment Trusts
Since 2005, we have conducted the Investment
Trust Survey once per annum. This survey
interviews people who have already invested in
or are thinking of investing in investment trusts
Client Feedback
Inquiries from retail investors and distributors of
in order to study investment trust ownership,
future ownership plans, and customer
investment trusts such as securities firms,
satisfaction. Survey results are published on
banks, Japan Post Bank, and Japan Post are
Nomura Asset Management’s corporate website
handled at a dedicated toll free customer service
and utilized to find ways to broaden the range of
center. Client feedback and requests received
investment trust ownership.
here are shared with related departments and
reflected in product development and service
enhancements where possible.
Study Sessions for Distributors and
Investor Seminars
http://www.nomura-am.co.jp/ishiki-chosa/
Awards Received by Our Managed Funds
Investment trusts managed by Nomura Asset
Management have received countless awards
from ratings agencies. Lipper Fund Awards
Every year we hold a total of about 8,000 study
Japan 2012 recognized 10 Nomura funds,
sessions for investment trust sales staff and
including
the Rainbow
Fund
(Earthly
seminars for retail investors at branches of
Environment Fund) with a best funds award
Nomura Securities, and other securities firms,
based on an evaluation of their mid- to long-
banks, Japan Post Bank and Japan Post. These
term performance. In addition, four Nomura
seminars are used to deliver easy-to-understand
funds received awards from Morningstar’s Fund
information that helps broaden both sales staff
of the Year 2011, and Nomura managed funds
and retail investor understanding of the risks
were also presented with awards in five divisions
and characteristics of investment trusts. We
of the R&I Fund Award 2012.
also utilize these meetings as an opportunity to
deepen our understanding of investors’ needs.
Major awards received by Nomura Asset Management managed funds (year ended March 2012)
Lipper Fund Awards Japan 2012 Best Funds
Evaluation Period
3 years
5 years
10 years
3 including Nomura US High Yield Corporate Bond Fund Course A
5 including High Yield Corporate Bond Open Yen Hedged
2 including Rainbow Fund (Earthly Environment Fund)
Morningstar Fund of the Year 2011
Best Awarded Fund in the Balanced Fund Division
Nomura Global Six Assets Diversified Fund (Stability Type)
Excellent Awarded Fund in the Domestic Stock Fund Division
3 including Strategic Value Open "Shinka-ron"
R&I Fund Award 2012
Best Fund
Best Awarded Fund
Excellent Awarded Fund
Investment Trusts / Foreign Bond fund Aggregate
2 including J-REIT Open (J-REIT type)
2 including Global REIT Open (foreign REIT type)
NOMURA Report 2012
Business for
Sustainability
Nomura’s Pledge toward a Sustainable Society
Reflecting Nomura Securities and Nomura
Nomura’s East Japan Revival Support Bond
Fund Receives a 2011 Nikkei Superior
Products & Services Awards
In May 2011, Nomura Asset Management
launched the East Japan Revival Support Bond
Fund 1105 with the goal of providing disaster
relief assistance to those areas affected by
Asset Management signed the Principles for
Japan’s earthquake and tsunami disaster.
Financial Action towards a Sustainable Society
The fund is structured so that it provides
(Principles for Financial Action for the 21st
donations (about 0.2% annually on the total daily
Century) in January 2012. The principles are
net assets of the fund) once every six-month
intended to provide guidelines for financial
settlement period. Thus far, the fund has donated
institutions to fulfill their roles and responsibilities
a portion of its custodian fee from the first
in shaping a sustainable society.
settlement period to Aomori Prefecture, Iwate
Nomura Asset Management is also a
Prefecture, Miyagi Prefecture, Fukushima Prefecture,
signatory of the United Nations-backed Principles
Ibaraki Prefecture and Sendai City to be used for
for Responsible Investment (UN PRI), and has
reconstruction projects. In addition to these local
established the ESG Committee, which is chaired
governments, the recipients of the donation from
by its CIO and consists of responsible officers
the second settlement period also included charitable
from Investment Management and Research,
funds providing educational and living support for
Client Services and the Corporate Office. ESG
children orphaned in the earthquake and tsunami.
stands for environment, social and governance.
The fund was recognized with the Great
In this regard, Nomura recognizes that continually
East Japan Earthquake Response Special
taking initiatives to fulfill its responsibilities toward
Award during the 2011 Nikkei Superior Products
society will lead to the long-term enhancement
& Services Awards. The fund was selected for
of corporate value. As such, it incorporates this
this honor based on a comprehensive evaluation
perspective into its corporate management,
of its concept of investing in bonds that
which focuses both on shareholder returns and
contribute to the relief effort, its scheme of
urging the same responsible approach in the
providing continual donations from the custodian
businesses it invests in.
Examples of financial products offered by
Nomura Asset Management that contribute to
sustainability
Rainbow Fund
(Earthly Environment Fund)
Nomura Global SRI 100
(also known as Nomura Global Social Responsibility Investment)
Nomura High Yield Supranational Bond Fund
Monthly Dividend
(also known as Global Assist)
Nomura Japan Smart City Stock Fund
(also known as Nippon no Mirai)
fee, and Nomura Asset Management’s ability to
quickly plan and arrange such a novel financial
product in the aftermath of the earthquake.
Similar donations as those noted above
will be provided a total of 10 times over the
fund’s five-year term.
Status of donations from the East Japan Revival
Support Bond Fund
Settlement
Period
First
(November
2011)
Second
(May 2012)
Recipient
Amount
Aomori Prefecture, Iwate Prefecture,
Miyagi Prefecture, Fukushima Prefecture,
Ibaraki Prefecture, and Sendai City
¥45
million
In addition to the above local
governments, the Iwate Learning Hope
Fund, the Funds for the benefit of
Miyagi Children after the Great East
Japan Earthquake, and the Fukushima
Donation for Orphans affected by the
Great East Japan Earthquake
¥49
million
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Wholesale
The Wholesale division provides capital raising and advisory services, structuring,
sales and trading of global securities, and distinctive investment research to
global corporations, governments and financial institutions.
Wholesale’s mission is to be Asia’s global investment bank, with depth at home
complemented by a solid global platform.
Our business is client-centric and focused on markets and segments where we
know we can add value. We aim to be globally competitive, delivering sustainable
profits in those areas in which we choose to compete. Our offering is innovation-
and knowledge-led, delivered in a “one firm” manner.
Financial Review
of reductions were implemented with only limited
impact on our underlying revenue momentum.
We also simplified management structure and
upgraded talent in a number of areas.
Market Environment and Financial Results
for FY2011/12
Looking Forward
While we expect the overall wholesale market to
Net revenue for the fiscal year was ¥555.9 billion,
remain suppressed this year driven by continuing
a fall of 12% from the previous year. Loss before
macro economic uncertainty, there are several
income taxes was ¥37.6 billion, compared to a
pockets of potential upside, such as in the fixed
profit of ¥6.7 billion the year before, reflecting a
income and equity electronic trading segment
very challenging business environment.
and in providing sophisticated risk solutions to
Despite the challenges, our underlying
our clients. We expect to take advantage of any
business momentum continued. Client penetration
emerging opportunities.
increased across our Fixed Income and Equities
Moving
forward, we will continue
businesses, and we engaged in some of the
strengthening our global footprint, including
year’s most significant Investment Banking
further expansion of local market businesses.
transactions. Our expansion into the Americas
Specific investments will be focused on products
continued, with the region becoming profitable
where we have an edge, such as those
in the final quarter of the year.
businesses that depend on innovation and
Reacting
to
the continuing market
intellectual capital. Combined with our
deterioration, we announced wholesale level
organizational agility, this will ensure strong
cost reductions of over $1 billion, substantially
market positioning and sustainable economics
lowering our breakeven point. At year’s end, 81%
for Wholesale.
Business results
(Billions of yen)
FY2007/08
FY2008/09
FY2009/10
FY2010/11
FY2011/12
Net revenue
243.5
(163.6)
789.5
630.5
555.9
Non-interest expenses
393.6
553.7
614.3
623.8
593.5
Income (Loss) before
income taxes
(150.1)
(717.3)
175.2
6.7
(37.6)
Note: Wholesale results do not reflect reclassifications due to a reorganization in April 2012.
NOMURA Report 2012
Fixed Income
Market Environment and Financial Results
for FY2011/12
Looking Forward
We expect Fixed Income markets to remain
FY2011/12 was another challenging year for
subdued given low interest rate expectation,
the
industry, with a
trading environment
continued macro uncertainty and regulatory
characterized by high levels of volatility, shallow
pressure. We also expect to see greater
liquidity and depressed client volumes as the
emphasis on central clearing and electronic
Eurozone continued to dominate the Macro
trading throughout the course of the year.
agenda. Spread products suffered as basis risk
The nimbleness of our franchise is one of
widened while, in Macro products, a decline in
our key advantages in these markets and we
the Rates business was partially offset by
continue to align our business portfolio to
increased client activity in FX. With the traditional
compete and grow through an evolving market
funding markets under significant stress and
environment. Going forward, our emphasis will
regulatory changes imminent, investor demand
be
to
further strengthen our core flow
for structured funding and solutions saw an
businesses and infrastructure, and deploy our
uptick during the year.
resources in markets where we have a clear
Nomura Fixed Income franchise remained
competitive advantage.
resilient despite difficult markets, and delivered
We aim to reinforce our position as the
stronger performance versus the previous fiscal
“gateway to/from Asia” and be at the center of
year. Revenues increased by 4% year on year,
flows to and from the region. We are among the
and we gained market share despite intense
few banks less affected by the changing
competition in a shrinking revenue pool. Growth
regulatory landscape, but nonetheless, we are
in flow business was driven by resilient client
focused on rebalancing our portfolio toward the
flows and robust risk management, while
businesses with highest potential return.
structured business increased on strong deal
flow and continued product innovation.
We continued to be a leader in Research
in Japan as reflected in our #1 rank in the Nikkei
Veritas poll, while making significant strides in
other regions, including attaining a #2 position
in FinanceAsia’s Fixed Income Research ranking
for Asia, and #5 and #7 ranks in the most recent
Research surveys by Institutional Investor for
EMEA and the Americas, respectively.
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Wholesale
Equities
Market Environment and Financial Results
for FY2011/12
Looking Forward
Despite the market challenges, we are expecting
FY2011/12 was a very difficult year for equities
client confidence and activity to gradually resume
globally, especially in the second quarter of the
as the global economy stabilizes. Our global
year, as markets declined and exchange volumes
trading capabilities will help provide liquidity to
waned. Execution Services performed in-line
our clients as the markets recover, while the
with the market volume declines, while Derivatives
change in global market structure provides
was particularly challenging in certain products,
Nomura the opportunity to offer state of the art,
Derivatives did, however, show resilience with
best execution tools and services to our clients.
innovative products in Japan along with tailored
The derivatives market still
remains
solutions for corporates globally. Year-on-year
challenging with regulation looming on the
revenue declined 20%, although performance
horizon. However, with the build-up of our global
improved in each subsequent quarter after the
derivatives platform, we look to provide clients
market lows of the second quarter.
with more global and innovative solutions across
Equities remains a key liquidity provider in
different asset classes, tailored to client needs.
the market with #1 market share on the Tokyo
and London stock exchanges. While EMEA
continues to present a tough market environment,
our expansion in the Americas and market
penetration in AEJ are increasing our diversified
revenue streams. We remained focused on
providing a full service globally in our key
markets and product areas.
Equities
TSE market share
1st
Total rank
(%)
LSE market share
1st
Customer rank
(%)
14%
14%
14%
13%
13%
12%
15%
14%
14% 14%
13%
13%
13%
12%
12%
12%
15
10
5
0
10%
9%
9%
9%
9%
9%
9%
8%
8%
8%
8%
8% 8% 8%
7%
7%
10
5
0
Feb. Mar.
Apr.
Jan.
2011
May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.
2012
Feb.
Mar.
Apr.
Jan.
2011
Feb. Mar.
Apr.
May Jun. Jul. Aug. Sep. Oct.
Nov. Dec. Jan.
2012
Feb. Mar.
Apr.
NOMURA Report 2012
Investment Banking
Market Environment and Financial Results
for FY2011/12
transactions.
In Asia ex-Japan, we successfully executed
Investment Banking continued
to build
ECM deals including the offer for sale of Oil and
momentum globally, reporting gross revenue of
Natural Gas Corporation Limited (ONGC) in
¥141.7 billion for the fiscal year ended March
India, the real estate fund IPO of Tesco Lotus, a
31, 2012. The environment proved challenging
retailer in Thailand, and the CB*3 offering of
for many of our clients and businesses,
Lotte Shopping. We also played an important
especially in equity capital markets, due to the
role in a number of cross-border deals between
lingering effects of the European sovereign debt
Asia and other regions including Japan.
crisis and the natural disaster in Japan. However,
In the Americas, we book-ran the LBO
Solutions businesses, such as non-traditional
financing*4 for Apollo Global Management’s
financing, interest rate and FX risk hedging,
acquisition of Belgian chemical manufacturer
expanded, benefiting from financial institutions,
Taminco, and debt issuances for a corporate
particularly in Europe, actively raising capital on
client in Brazil. We also executed several deals
the back of tighter regulation. This helped to
for financial institutions clients and solutions
diversify our revenue sources globally.
transactions, steadily increasing revenues in
In Japan, equity
issuance declined
the region.
significantly compared to FY2010/11, but the
number of cross-border M&A deals involving
Japanese
companies,
seeking
growth
Looking forward
We will drive profitable growth by focusing on
opportunities abroad, continued to increase.
areas where Nomura can win, with clients and
We advised on several major M&A deals,
on opportunities where we can truly differentiate.
including Asahi Group Holdings’ acquisition of
We are focused globally on key sectors such as
Independent Liquor, a major manufacturer and
Financial Institutions, Natural Resources/Power,
distributor of alcoholic beverages
in New
Consumer/Retail and Sponsors, and value-
Zealand, and Tonen General’s acquisition of
added products including cross-border M&A
Exxon Mobil’s Japanese subsidiary. We book-
and Solution services, while delivering results in
ran a selection of significant equity offerings,
Asia to enable our clients to access dynamic
including Nexon’s IPO. We also underwrote a
growth markets.
number of debt issuances from domestic and
- In Japan, maintain dominance in traditional
foreign issuers in a relatively stable Japanese
businesses and grow our Solutions business.
bond market. This enabled us to maintain our
- In AEJ, focus on large fee pools, high-growth
leading market share in each product.
countries and on enhancing cross-border
In EMEA, we executed a number of capital
collaboration with other regions.
raising
transactions
for European financial
- In EMEA,
focus on strengthening core
institutions, including the rights issue*1 of Banco
geographic markets and key products
de Sabadell in Spain and Tier 1 capital
including structured solutions.
securities*2 of Rabobank in the Netherlands,
- In the Americas, pursue a multi-year phased
and also advised on several high-profile M&A
growth strategy.
deals, including the merger of major Swiss
mining company Xstrata with Glencore
International. We executed innovative solutions
for our clients’ financing needs relating to M&A,
as well as FX and interest rate risk hedging
NOMURA Report 2012
increasing
*1 A method of
capital
existing
where
shareholders are allotted,
without
consideration,
warrants that can be used to
purchase the stock at a price
below the market price
*2 Securities that have both a
debt and equity component
that are considered as capital
for ratings purposes
*3 Convertible bond (bond with
share warrant attached)
*4 Financing provided to an
acquirer in an M&A deal that
is secured by the assets or
cash flow of the target
Business for
Sustainability
Responsible
Business
Citizenship
Wholesale
Responding to Clients’
Needs/Feedback from
Clients
Fixed Income
Enhancing Service Quality to Respond to
Clients’ Needs
and analyst
reports and meetings. We
continuously strive to improve our services
based on these qualitative and quantitative
assessments. We are also focusing efforts on
providing the latest, most advanced trading
services with optimized order placement and
execution via order systems using sophisticated
algorithms and high-speed order placement
Nomura’s Fixed Income is working to enhance
systems directly connected to exchanges.
its services in order to respond to the diverse
These efforts to improve our services have
needs of its extensive global client base, which
helped us capture a large share of the market in
spans from institutional investors to retail clients.
major exchanges around the world, including
We currently serve as a primary dealer in 16
Tokyo and London.
countries, which enables us to easily trade
various
types of debt securities,
including
government bonds. Through these activities,
Nomura’s Fixed Income is striving to expand its
presence and supply greater liquidity to markets.
Investment Banking
Providing Financial Solutions to Meet the
Diversified and Sophisticated Needs of
Our Clients
We are also providing more opportunities
The business environment has become more
in cross-border transactions by means of our
complex and the needs of our clients have
diversified capabilities in foreign currencies.
grown more diverse, requiring more innovative
Furthermore, we are expanding customized
bespoke solutions. We continue to leverage our
solutions using financial
technologies
like
global client coverage and structured product
derivatives, in order to respond to the unique
capabilities to provide an extensive range of
needs of each and every client.
financial solutions.
Our clients have recognized our ongoing
As tighter capital regulations are imposed
and worldwide efforts, and service quality
globally, many financial institutions, particularly
surveys have shown that our ranking among
in Europe, are seeking to raise capital or divest
peers is on the rise in markets around the world.
assets. Given
this environment, we are
Equities
Capturing even Higher Market Share by
Enhancing Service Quality Based on
Customer Feedback
supporting such clients in order to improve their
capital adequacy
ratio
through
various
instruments, such as rights issues, CB and Tier
1 capital securities.
Nomura’s Equities is structured on a global
League Table Ranking (CY2011)
scale to respond quickly and accurately to the
sophisticated needs of its clients and is able to
consistently provide high quality products and
services. Our clients can be found in every
Japan-related
ECM, DCM, M&A:
corner of the world and include major institutional
Global ECM:
investors and asset managers that manage
investment trusts and pension assets. We gain
an understanding of these clients and their
needs through daily communication. We also
ask clients to regularly provide feedback on the
services we provide, including sales, trading,
NOMURA Report 2012
Global M&A:
Note:
Japan-related DCM represents ranking for fiscal year ended
March 2012
Source: Thomson Reuters for ECM and M&A, Thomson DealWatch
for DCM
1
10
13
st
th
th
Business for
Sustainability
Supporting Our Clients to Play a Greater
Role in Resolving Social Issues with
Financial Services
These include JBIC, DBJ and JICA in Japan as
well as Kommunalbanken and Kommuninvest
internationally. In addition, we also served as a
financial advisor as part of our initiative to help
public
institutions support private sector
companies in improving and redeveloping social
infrastructure.
Nomura supports clients to solve social issues
through their business in areas such as clean
Sustainable Investing
The benefits of Sustainable Investing are to
technology and healthcare sectors, by providing
both help find solutions for social challenges
financial services globally.
and earn returns commensurate with the risk of
In
the clean
technology sector, we
the broader issue. Nomura acts as a bridge
supported the financing for new eco-friendly
between investors who want their investments
products and
technological developments,
to benefit society, and the financing needs of
which included capital raising for Ceramic Fuel
our clients to fund socially responsible projects
Cells in Australia and TMO Renewables in the
around the world.
UK. We also hosted the 8th Nomura Global
In February, April and September of 2011
Environment Technology Conference 2012
Nomura underwrote the Green Bonds issued by
where we helped to promote collaboration
IFC and distributed them to investors through
among companies, universities, public agencies,
our retail network in which proceeds are set
municipalities and financial institutions with the
aside for investing exclusively in renewable
theme of venture capital support.
energy, energy efficiency and other climate-
In the healthcare sector, we supported
friendly projects in developing countries. In May
the financing for new products and technological
2012 we also supported the issuance of ADB
developments aimed at people’s health and
Clean Energy Bonds, which are used to invest
advancements in the medical field, which
in a variety of clean energy projects in developing
included capital raising for MDxHealth in Belgium
countries in Asia. Going forward, we will continue
and Vernalis in the UK. We also acted as a
to actively promote financial products that help
financial advisor
for Japanese healthcare
resolve social issues.
companies looking to expand into emerging
countries
that have strong demand
for
pharmaceuticals. These include the acquisition
of a Swiss pharmaceutical company Nycomed
by Takeda Pharmaceutical and the acquisition
of shares in C&O Pharmaceutical Technology of
China by Shionogi & Co.
Helping Build Social Infrastructure by
Meeting the Financing and M&A Needs of
Public Institutions
Nomura helped public institutions around the
world in their fund raising to lend money to or
make investments in private sector companies,
with the purpose of promoting economic
development, industrial growth and exports.
ADB Photo Library
NOMURA Report 2012 0
Business for
Sustainability
Responsible
Business
Citizenship
Global Research
Nomura: A force in global research
The Nomura name has been synonymous with research since our founding. We remain
dedicated to offering insightful research and analysis, which is ever more important in
today’s uncertain investment environment. With research hubs in key Asia-Pacific
markets, including Tokyo and Hong Kong, and in London and New York, we currently
have almost 600 researchers in 15 countries and regions globally. Our researchers
collaborate closely across regions and disciplines to track changes and spot future
trends in politics, economics, foreign exchange, interest rates, equities, credit and
quantitative analysis. This extensive network of intellectual capital provides our clients
with timely, actionable information.
Broad Equity Research Coverage
Our research offering is our distinctively broad
Award-winning Research
Our research consistently receives high industry
coverage in equity research. We launched our US
recognition. In the 2012 equity research rankings
coverage in earnest in October 2010 and have
announced by Institutional Investor, we again
extended coverage there to key sectors, which
ranked number one overall in Japan, while in
include financial services, telecommunications,
overseas regions we ranked first or second in a
technology, and retail. In Southeast Asia, we
range of sectors and disciplines including, in
have broadened our scope to include Indonesia,
Asia ex-Japan, telecommunications, financial
Malaysia, and the Philippines in tandem with
services and fixed income strategy. In Japan,
growing business needs. At of the end of March
we topped the Nikkei Veritas rankings for bond
2012, our global equity research coverage
analysts and economists and Japanese equity
extended to about 2,000 companies across
analysts, while in FinanceAsia’s fixed income
Japan, Europe, Asia and the US.
poll, we jumped to second place overall.
In foreign exchange research, our teams
have won high marks around the world, placing
top in the Institutional Investor rankings in the
US, second in Europe, and third in Asia.
Growth of equity research coverage
Research coverage in Asia
2,000
1,500
1,000
500
0
1,520
394
545
581
1,029
130
296
603
1,940
120
561
1,761
594
581
659
1,958
203
414
765
586
600
576
Americas
Europe
Asia
(Excluding
Japan)
Japan
Philippines
0.4%
New Zealand
0.7%
Thailand
1.3%
Malaysia
4.7%
Singapore
6.3%
Indonesia
6.3%
Taiwan
10.3%
9/2008
3/2009
3/2010
3/2011
3/2012
Note: Excluding Japan (As of March 31, 2012)
NOMURA Report 2012
China
28.0%
India
16.5%
South Korea
13.3%
Australia
12.3%
High-quality, Timely Research with a Focus
on Global Trends
We offer timely, clearly presented evaluations of
global trends and anticipated developments in
reports covering such themes as the risk of a
collapse in the euro, the practical application of
renewable energy, and corporate governance.
Our top-level teams in such specialist fields as
geopolitics, economics, interest rates, equities
and credit work
together
to coordinate
investment opinions and offer investors high-
value-added investment ideas.
We observe that the sustainability of
companies being considered for investment is
increasingly being evaluated in three non-
financial areas—environmental, social, and
governance
(ESG).
In North America and
Europe, such evaluation is not only a requirement
for “responsible investment,” but some investors
consider ESG to be a standard for valuing a
company’s long-term performance.
At Nomura, we have started
listing
companies’ ESG
ratings along with our
fundamental analysts’ ratings in research reports
with strong environmental themes, such as
ones on geothermal power and power grid
stabilization measures. We intend to increase
the number of ESG-oriented reports and also
develop indexes based on ESG information to
meet client needs.
ESG rating
Information for
evaluating
companies
Environmental
Nonfinancial
information
Social
ESG
rating
Governance
Financial
information
Fundamental
analysts’
ratings
Examples of reports
NOMURA Report 2012
Message from CFO
We aim to achieve sustainable profitability and growth as Asia’s global
investment bank by leveraging our robust financial position and allocating
resources more efficiently.
Financial institutions currently face a constantly changing operating environment. The
sovereign debt problems in Europe continue to heighten market volatility, while the shift to
Basel III and other tougher regulations and oversight is gathering pace.
Amid this environment, global financial institutions face three challenges: maintaining a
healthy balance sheet, enhancing capital to satisfy regulatory requirements, and structuring
costs in line with current market opportunities. We anticipated the changing environment and
regulatory reforms, and acted swiftly to address the first two challenges. As a result, our
financial position is now one of the healthiest and most robust among our global peers. And
Last year, we started addressing the third challenge by optimizing our cost structure.
Healthy balance sheet
We have built a structurally stable balance sheet. As of the end of March 2012, total assets
stood at ¥35.7 trillion, shareholders’ equity was ¥2.1 trillion, and our gross leverage was 16.9
times. Highly liquid trading assets that are marked to market on a daily basis accounted for
78% of our total assets. The remainder consists of long-term debt with an average maturity
of over six years and equity.
We maintain a liquidity portfolio of ¥5.4 trillion, which represents 15% of total assets. We
believe this provides us with ample liquidity to respond to changes in the operating environment.
Junko Nakagawa Chief Financial Officer
NOMURA Report 2012
Sufficient capital
The most significant regulatory reform for Nomura is the requirements for Tier 1 common capital
that will be phased in from 2013 under Basel III. To ensure we achieve sustainable growth in the
new regulatory environment, we have reduced private equity assets and other capital intensive
assets. At the end of March 2012, our Tier 1 common ratio under Basel 2.5 was 12.2%, which
is more than sufficient to meet the requirements under Basel III next year.
We believe our robust financial position is a distinct competitive advantage for Nomura. It
allows us to provide liquidity to our clients and offer the products and services they require.
Profitability in a changing environment
Driven by the shifting market landscape and regulatory reforms, overall industry fee pools are
trending down. In response, we started reviewing our cost structure last year and have been
working to lower our breakeven point.
Although our FY2011/12 return on equity was 0.6% due primarily to the effects of the
sovereign debt crisis in Europe during the first half of the year, profits improved in the third and
fourth quarters on the back of stronger business momentum and stringent expense management.
Fourth quarter net income attributable to Nomura Holdings shareholders was ¥22.1
billion. On an annualized basis, this equates to a return on equity of 4.2%.
Shareholder returns
Our underlying approach to shareholder returns centers on continually raising shareholder
value while also paying dividends. We aim to deliver stable dividends using a consolidated
payout ratio of 30% as a key indicator. In determining dividend payments, we take into account
a comprehensive range of factors including global regulatory reforms and our consolidated
financial performance. Our annual dividend for FY2011/12 was ¥6 per share.
With an eye to raising shareholder value, retained earnings are put to use not only for
regulatory requirements, but also to invest in our infrastructure and business areas that offer
prospects of high profitability and strong growth.
Asia’s global investment bank
Looking ahead, we expect the environment to remain challenging. As such, we will focus on
maintaining our robust financial position, ensuring disciplined cost control, and allocating
resources optimally across regions. In doing so, we aim to deliver growth coupled with
sustainable profits as Asia’s global investment bank.
We are also taking on new initiatives in areas such as agriculture, the environment, and
healthcare that fully leverage our extensive network. We believe these efforts to solve social
issues through our core business will prove to be a source of competitiveness and earnings
over the longer term and will allow us to support the sustainable development of society.
NOMURA Report 2012
Chapter II
Responsible Business
Business for
Sustainability
Responsible
Business
Citizenship
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Corporate Governance
Underlying Concept
We have determined the Committee
System to be the most suitable form of corporate
governance for the Company. By separating
management oversight functions from the day-to-
Nomura Holdings strives for transparency and
day execution of business, we have strengthened
speed in the management of its operations and
oversight and transparency of our management.
while aiming to enhance the corporate value of the
At the same time, to manage the Company’s
group in the medium to long term, we place our
consolidated operations with speed, the Board of
highest importance on strengthening and further
Directors has delegated to the Executive Officers
enhancing our corporate governance system.
a wide scope of authority for business execution.
Upon becoming a holding company and
We also believe that, among various
our listing on the New York Stock Exchange
organizational structures applicable in Japan,
(NYSE) both in 2001, we appointed outside
the Committee System is most compatible with
directors,
established
the
Executive
the corporate governance system stipulated in
Management Committee (currently the Internal
the NYSE Listed Company Manual.
Controls Committee),
a
compensation
committee (consisting of a majority of Outside
Directors) as well as the Advisory Board
(consisting of outside experts) and also took
measures to further enhance our disclosure.
Further, in 2003, we adopted a committee–
based
corporate
governance
system
(Committee System) and set up the Nomination,
Audit and Compensation committees, each
comprised of a majority of outside directors.
Board of directors
(As of August 1, 2012)
Outside directors
64 % (7 of 11)
Non-Japanese directors 27 % (3 of 11)
Female directors
9 % (1 of 11)
Management structure
Shareholders’ Meeting
Board of Directors
Nomination Committee
Audit Committee
Compensation Committee
• Three directors, including two outside directors
• Determines the details of proposals on the election and dismissal of directors for
submission to a meeting of shareholders in accordance with a set criteria for character,
insight, experience, and independence
• Directors concurrently serving as executive officers are not members
• Three directors, including two outside directors
• Audits the execution of duties by the Directors and Executive Officers, prepares audit
reports, and determines details of proposals regarding the election, dismissal, and non-
reelection of the Independent Auditor for submission to a meeting of shareholders.
• All committee members are acknowledged as an independent director as stipulated by
the Sarbanes-Oxley Act of 2002
• Three directors, including two outside directors
• Determines policy with respect to the particulars of compensation to be paid to
directors and executive officers, as well as the individual compensation
• Directors concurrently serving as executive officers are not members
Group CEO
Executive Management Board
Deliberates on and determines important management matters, such as the management
strategy for Nomura Group, business plans, budgets, and capital allocation
Group Integrated Risk Management Committee
Deliberates on and determines important matters concerning
the integrated risk management of Nomura Group
Internal Controls Committee
Deliberates on and determines matters concerning the establishment and assessment of
internal control of Nomura Group and promoting proper corporate behavior
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Corporate Governance
Board of Directors
Internal Controls
Our Board consists of 11 directors, of which 7
We are strengthening and improving our internal
are outside directors. A director who does not
control system to promote proper corporate
concurrently serve as an executive officer acts
behavior
throughout
the group
from
the
as chairman.
viewpoints of efficient and
transparent
Nomura places high value on achieving
management,
legal
compliance,
risk
business oversight from multiple perspectives
management, ensuring the reliability of business
by diversifying the Board, as well as each
and financial reports, and timely and appropriate
director’s advanced professional knowledge.
disclosure of information.
Specifically, each of the seven outside directors
Furthermore, in order to ensure effective
brings different backgrounds to the table,
and appropriate internal controls, we have
including nationality, gender and professional
established the Group Internal Audit Department,
experience. The outside directors’ are playing
which is independent from the business lines,
an exemplary role in determining important
and along with internal audit departments
managerial matters and oversight of
the
established in significant subsidiaries, conducts
business, by applying their rich experience in
internal audits of
the Company and
its
their respective fields such as business managers,
subsidiaries. The Group
Internal Audit
attorneys, accountants or with government
Department acts under the direction of the
organizations. We report all seven outside
Internal Controls Committee in execution of its
directors as independent directors, as stipulated
duties. Results of the internal audits are reported
by the rules of the Tokyo Stock Exchange.
not only to business lines, but also to the Audit
Committee and the Audit Mission Director.
Internal controls system
Internal Controls Committee
Audit Committee
Audit Mission Director
• Four executive officers and senior managing
• Three directors, including two outside
• A full-time director who does not
directors, including the Group CEO
directors
- One outside director (Chairman of the Audit
• Audits the execution of duties by the
Committee)
- One director (Audit Committee member)
• Deliberates on and determines matters
concerning the maintenance and assessment
of internal control and promoting proper
corporate behavior
Directors and Executive Officers, prepares
audit reports, and determines details of
proposals regarding the election, dismissal,
and non-reelection of the Independent
Auditor for submission to a meeting of
shareholders.
concurrently serve as an
Executive Officer
Audit plan
approval
Report
Office of Audit Committee
Report
• Assists audits by members of the Audit
Committee and the Audit Mission Director
• Handles administrative tasks for the
Audit Committee
Report
Group Internal Audit Department
Internal audits
Management
Nomura Holdings and
subsidiaries
Business
Risk
Management
Compliance
NOMURA Report 2012
Business Execution
The most important matters of business shall
be deliberated and decided by specific
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
management structures of
the Company,
including the Executive Management Board,
Compensation Policies Applicable to the
Board of Directors and Executive Officers
the Group
Integrated Risk Management
The compensation of directors and executive
Committee,
and
the
Internal Controls
officers comprises base salary, an annual
Committee. Each of the management structure
bonus, and a long-term incentive plan. The
reports to the Board of Directors at least once
Compensation Committee has approved the
every three months on the status of their
following matters related to compensation of
deliberations. In addition, we have established
directors and executive officers:
the Advisory Board consisting of prominent
1. Base Salary
experts as a consultative panel to the Executive
Management Board.
In order to further enhance our business
execution framework in the face of increasing
sophistication and specialization in the finance
industry, we have created Senior Managing
Directors (“SMDs”) who receive a delegation of
authority from the Executive Officers so that
each SMD is responsible for his/her individual
business line and operations.
Compensation for Directors
and Executive Officers
As Nomura has adopted a committee system
for corporate governance, 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
Nomura has developed our compensation
policy for both executives and employees of
group to enable us to achieve sustainable
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
subjective assessment of
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
individual
and
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. 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 individual responsibilities and performance.
Payments under long-term incentive plans are
made when a certain degree of achievement is
accomplished. Payments are made in equity
based compensation with a certain non-exercise
period
the mid-/long-term
that
interests of Directors and Executive Officers are
closely aligned with those of shareholders.
to ensure
growth,
realize a
long-term
increase
in
Please refer to the 20-F.
shareholder value, deliver client excellence,
compete in a global market and enhance our
reputation. Our compensation policy is based
around the following six key themes.
http://www.nomuraholdings.com/investor/library/ar/
index.html
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
CSR Management
Fundamental Approach
CSR Activities Promotion
Framework
We recognize CSR is not only an effective risk
The CSR Committee is the management level
management tool, but is also a way to identify
decision-making entity for corporate social
opportunities for our business. Through our
responsibility. Chaired by the Group CEO, the
involvement, we also aim to contribute to
committee comprises of six executive officers
developing a sustainable society. We have been
and one audit mission director as of September
taking steps to strategically analyze the impact
2012. The Corporate Citizenship Department
of the group’s business processes on the
serves as
its secretariat and spearheads
environment, community and society as part of
inclusive and effective CSR activities. The
our management decision-making.
Corporate Citizenship Department also works
The core role of any financial institution is to
closely with the business divisions globally to
contribute to the sustainable development of the
ensure a consistent and proactive approach to
economy and society by promoting sound capital
their community affairs activities in line with
markets through providing its products and
the needs of the local community as well as
services. In March 2010, we established “For
their operations.
Future Generations,” which represents our goal
across the entire Nomura Group to support the
next generation. We engage in our business and
community affairs activities in line with this goal.
For Future Generations
To ensure our business goals are aligned with providing positive contributions to our stakeholders and
the communities where we operate.
We create opportunities for a sustainable future, making sure that the decisions we make today support
the success of future generations.
Citizenship
To build relationships of trust with local communities, society
and stakeholders as good corporate citizens.
Business for Sustainability
To provide innovation through our products and services to
deliver long-term solutions for the changing needs of clients
and society.
Responsible Business
To build value for clients through responsible businesses
practices which respond to client needs.
NOMURA Report 2012
Communication with
Stakeholders
Our communications with external
stakeholders take the form of information
dissemination via reports and our website, in
addition we undertake stakeholder dialog
We believe internal and external communications
sessions and interactive communication via
are important mechanisms to showcase our
social media, such as our official Twitter account
business and community activities to ensure
and Facebook pages.
we are addressing the expectations of our
In fiscal 2011, we received important
external stakeholders.
feedback
from stakeholders regarding our
We strive to raise awareness and educate
business and community affairs activities (see
our employees on corporate social responsibilities
pages 12 and 48). We also rolled out business
through messages and information on CSR
and community affairs activities for the local
provided by senior management through our
community
that
reflected
the voices of
intranet system. This is based on our belief that
stakeholders and clients as part of our assistance
it is essential for employees, who engage with
to the earthquake and tsunami reconstruction
various stakeholders, to take the lead role in
effort (see pages 20, 24, and 54).
implementing CSR activities.
Organizational structure
CSR Committee
Chairman:
Group CEO
Secretariat
Corporate Citizenship Department
Strategy
Responsible
Business
Key issues
Goals
Corporate Governance
Enhance medium to long-term corporate value by ensuring timely decision-
making and strong oversight of management using a diverse group of directors
Compliance
Identify and appropriately address compliance risks that are highly relevant to
our business
Risk Management
In addition to market and credit risk management, identify and appropriately
address the indirect impact of our business on the environment and society
CSR Management
Take steps to strategically analyze the group’s impact on the environment and
society as part of our management decision-making, social contribution activities,
and business processes
Japan
AEJ
EMEA
Americas
Progress in
fiscal 2011
p. 36
p. 43
p. 41
p. 39
Client Focused
Maintain client trust to create added value
pp. 19, 23, 29
Business for
Sustainability
—
Actively engage in businesses that contribute to addressing social and
environmental challenges
pp. 19, 24, 30
Community Investment
Promote community affairs activities that meet the needs of sustainable
development in each community
Citizenship
Diversity & Inclusion
Promote global initiatives on personnel development as well as diversity
and inclusion
Environmental Footprint
Identify the environmental impact of our operations and pursue initiatives for
reducing such impact
p. 51
p. 55
p. 59
NOMURA Report 2012 0
Business for
Sustainability
Responsible
Business
Citizenship
Risk Management
Fundamental Approach
include Nomura’s risk appetite, risk tolerance
criteria based on the management strategies,
goals and financial grounding of the entire group.
In order to achieve the risk management
Our business activities are inherently subject to
market risk*1, credit risk*2, operational risks*3
such as administrative risk and system risk, and
framework set out above, Nomura’s
risk
management departments around the world
work together with the Chief Risk Officer (CRO)
risks resulting from other factors. Managing
to build a Group-wide
risk management
these risks is an integral part of management’s
framework and manage this in an integrated
responsibilities to secure financial health as well
way using stress scenario analysis and other
as to help maintain and expand corporate value.
means. Each business department has also
Guided by senior management’s proactive
strengthened its risk management practices on
commitment to risk management, our risk
a variety of levels in order to maximize revenues
management framework and governance structure
from trading activities without deviating from
are intended to provide comprehensive controls,
Nomura’s predetermined risk appetite.
monitoring and reporting on a global basis.
Nomura’s
Internal Audit Department
Risk Management
Structure
operates independently from other departments
in the organization and strives toward enhancing
the effectiveness of internal control, including
our risk management structure, and it makes
proposals and recommendations for operational
The Nomura Group’s Executive Management
improvements based on the evaluations of the
Board has delegated to the Group Integrated
Risk Management Committee*4 the authority to
deliberate and make decisions on key issues
related to integrated risk management. These
effectiveness and validity of risk identification
and risk management practices.
For more information, please see:
http://www.nomuraholdings.com/investor/library/
*1 Market risk: potential loss in
the value of an asset resulting
from changes in market prices,
rates,
indices, volatilities,
correlations or other market
factors
*2 Credit risk: risk of losses
arising from the decrease
of asset values (including
items)
off-balance sheet
due
in
creditworthiness or default of
an obligor or counterparty
to deterioration
*3 Operational risk: risk of losses
arising from inadequate or
failed
internal processes,
people and systems or from
external events
*4 The Group Integrated Risk
Management Committee is
chaired by the Group CEO
and comprised of the Group
COO, business division CEOs,
the Chief Risk Officer, the Chief
Financial Officer, the Executive/
Senior Managing Director
responsible for the Corporate
Office, the Group Compliance
Head, the Chief Legal Officer
and the Deputy CRO
Risk management structure
Report
Board of Directors
Executive Management Board
Group Integrated Risk Management Committee
Group Internal Audit
Department
CFO
CRO
Risk Management Departments
Audit
Report
Check
Individual Business Units
• Market risk
management
• Credit risk
management
• Operational risk
management
• Other
NOMURA Report 2012
Social and Environmental
Risk Management
policy, we constantly implement measures to
prevent crises, and in the event one should
occur, this policy clarifies the organizational
structure that will ensure we are ready to take
We believe that advancing the management of
prompt and appropriate action.
our reputational risks is possible by broadening
Specifically, the Nomura Group Crisis
our scope beyond legal compliance to effective
Management Committee, which is chaired by
control of social and environmental risks that
an executive officer nominated by the Group
may arise from various transactions. In this
CEO and comprised of crisis management officers
regard, we have strengthened our
risk
of each group company worldwide, has been
management structure.
established to confront crises as they occur.
For example, when executing underwriting
In addition, the committee’s secretariat
deals, we review and confirm the issuer’s
maintains our ability to confirm the safety of all of
awareness of any potentially associated risks to
our employees and their family members in any
society and the environment and that the issuer
emergency situation through ongoing efforts to
has taken appropriate steps to address such
foster employee awareness of crisis management,
risks, including the disclosure of information
including regular drills, business continuity
about those risks. Impact on the environment
procedures and crisis management training.
and society, as well as the financial condition
and results of operations, and other aspects,
are included in the overall guidelines applied by
Strengthening Our Response to Disasters
We have been stepping up our preparedness
relevant departments during the assessment
for major disasters following the lessons learned
process as vital items that must be confirmed
from the earthquake and tsunami disaster that
when taking on underwriting deals.
struck Japan in March 2011. In FY 2011/12, we
Assessment process
Assessment of
transaction
Decision
• Regulations
• Environmental and
social issues
Crisis Management
focused efforts on the following initiatives.
1. Upgrading of communication methods
• Deployed satellite phones, wireless radio system
and other communications equipment
• Enhanced employee safety confirmation system
• Improved public address system in the head
office building
2. Reinforcement of emergency supplies
• Expanded stored supplies of water and food
• Established
area-by-area
strategy
an
for
emergency supplies
• Distributed emergency kits to all employees
3. Implementation of earthquake-resistance measures
• Fixed furnishings and fixtures in place
We established the Nomura Group Crisis
4. Creation of evacuation methods and procedures
Management Policy in 2005 to mitigate damage
and quickly restore operations from natural
disasters or fires in Japan and overseas.
This policy covers a wide range of risks
facing the company, including natural disasters,
fires, serious crimes committed by the company
or its executive officers or employees, system
interruptions, transmittable diseases and the
divulgation of information assets. Based on this
• Distributed disaster card that specifies our initial
response procedures for a disaster
5. Revisions to rules and manuals
• Shifted decision-making authority in a disaster to
(department and branch
onsite supervisors
office heads)
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Compliance
Fundamental Approach
compliance-related issues under the direction
of the Head of Group Compliance.
Compliance is a top management priority for
Nomura Securities’ Compliance Structure
In addition to group-wide initiatives, Nomura
the Nomura Group, and the Nomura Group
Securities has also established a Compliance
Code of Ethics represents our fundamental
Program as a detailed action plan and put into place
policy on compliance.
a compliance framework based on this program.
Compliance Framework
A Compliance Committee chaired by the
President oversees company-wide initiatives and
is in charge of establishing and deliberating on
important issues related to internal controls. In
addition, the company has assigned an Internal
We work to eliminate behavior that could result
Administration Supervisor to monitor compliance
in legal or regulatory violations. Should such
issues and set up the Compliance Division.
suspicions arise, corporate structures and
The Compliance Division strengthens and
systems have been put into place to effectively
improves legal and regulatory compliance as
handle them, including the prompt delivery of all
well as
the
internal controls system by
related
information without exception
to
formulating internal rules and disseminating
management.
them throughout the company. It also monitors
Specifically, we have appointed a Group
the status of compliance with respect to these
Compliance Head to oversee compliance for
rules at each department and branch office.
the group as a whole along with a Group
Should any problems arise, the division takes
Compliance Department that provides support.
remedial action such as increasing awareness
A Wholesale Compliance Head has also been
of the rules or revising them as needed.
designated to strengthen our internal controls
due to international business expansion.
Compliance Officers are also assigned to
each group company,
including overseas
offices, to develop and maintain their respective
compliance
structures
and
report
on
Compliance framework
Nomura Holdings
Board of Directors
Audit Committee
Executive Management Board
Group Compliance Head
Direction
Report
Wholesale Compliance Head
Direction
Report
Group Compliance Department
Direction
Report
Compliance Officers
Direction
Report
Departments
Nomura Group
companies
NOMURA Report 2012
Nomura Securities’ Primary Initiatives
• Protocols for preventing money laundering, including
reporting of suspicious
identification and
the
transactions
• Protocols for eliminating all transactions associated with
criminal or unethical organizations or activities in
violation of applicable laws, such as not allowing
organized crime groups to participate in trading with
Nomura Securities
• Managing conflicts of interest and insider information
from a global perspective by concentrating information
in the Group Compliance Department
Compliance Hotline
Employees in Japan who have become aware
of potential legal or regulatory violations are able
to directly report
their concerns
to staff
designated by Nomura Holdings through the
Compliance Hotline.
Information can be provided anonymously,
and employees have been
informed
that
systems are in place to ensure that individuals
who give their name when reporting violations
will not suffer any negative consequences.
Compliance Training
We conduct comprehensive compliance training
protection of clients’ personal information and
other information assets of the group. Each
for all executive officers and employees on
company in the group maintains its own
topics such as the prevention of money
supplemental rules based on this policy and
laundering and
insider
trading,
firewall
endeavors
to strengthen
its management
regulations, and guidelines
for managing
systems by disseminating these supplemental
customer information.
rules and ensuring full compliance by all
Examples of Nomura Securities’ Initiatives
• Training for operating officers, internal controls officers,
and employees of internal controls departments, as well
as quality improvement training for securities sales
representatives
• Training for branch managers, general administration
managers, new employees, newly appointed managers
and others, aimed at increasing knowledge and
deepening the understanding of compliance
• Supplementary compliance education and drills during
various training sessions and meetings
• Training for Compliance Officers
• Monthly Compliance Hour at branch offices and
departments
Fair Business Practices
executive officers and employees.
Information Security Management Structure
We have established
the Nomura Group
Information Security Policy in order to ensure
the presence of a rigorous structure
for
managing information assets. The Nomura
Group Information Security Committee was also
established
to deliberate key
information
security
issues, and
the committee has
developed a system for reporting as necessary
to the Group Management Committee.
In addition, all department and branch
office heads of Nomura Holdings, Nomura
Securities, Nomura Asset Management and
The Nomura Trust & Banking serve as
Nomura Securities seeks to enhance the quality
Information Security Managers as well as
of financial products offered to customers through
personal data controllers as defined by the
the following initiatives under the Guidelines for
Financial Services Agency. They are responsible
Financial Instruments Business Supervision.
for the security and proper management of
information assets handled by their work area
and for properly providing employees and staff
with advice and guidance. Customer-related
personal information is handled under stringent
standards set out in the Nomura Group Privacy
Policy and other information security-related
rules, and in full compliance with personal
information-related laws and regulations.
For more information, please see:
http://www.nomuraholdings.com/policy/privacy.html
Examples of Nomura Securities’ Initiatives
• Appointing officers
internal controls,
to oversee
compliance, etc., and developing systems to ensure
compliance and the appropriateness of operations
• Thoroughly screening account openings and conducting
proper examination when underwriting securities
• Carefully reviewing product details and taking action to
provide accurate and comprehensive information
• Conducting sales and solicitation activities in compliance
with the Financial Instruments and Exchange Act and
laws and regulations governing each operation with an
overall understanding of the customer’s knowledge of
financial instruments and financial conditions
• Ensuring thorough compliance with laws, regulations
and internal rules through compliance training
Information Security
The Nomura Group Information Security Policy
is the basic document governing the effective
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Restoring Trust and Credibility
On March 21, May 29 and June 8 of this year, the
Securities and Exchange Surveillance Commission
recommended orders
for administrative monetary
penalties against certain entities for insider trading. On
findings that these entities had received inside information
from Nomura employees, an Investigation Committee of
external attorneys commissioned by Nomura has
conducted an extensive investigation to identify the facts
and analyze the causes of these incidents. On June 29,
we released a report from the Investigation Committee on
problems found in the management system for corporate-
related information and institutional investor sales at
Nomura Securities as well as on preventative measures.
We also announced improvement measures at this time.
On July 26, we released an additional internal report
based on the findings of the Investigation Committee and
in conjunction with a report on the implementation status
of the improvement measures.
On August 8, Nomura Securities submitted a report
on the following business improvement measures as well
as progress it has made to Japan’s Financial Services
Agency in accordance with the business improvement
order issued on August 3.
We established an
Improvement Measures
Implementation Committee to monitor the implementation
of improvement measures. The committee reports directly
to the President of Nomura Securities, Koji Nagai, and
includes the company’s Internal Control Supervisory
Manager, Shoichi Nagamatsu, as well as relevant
executive officers and department heads.
Going forward, we will continue to further enhance
our internal controls by continually conducting self-led
inspections and investigations while working to prevent
similar incidents and regain the trust of the capital markets
by thoroughly implementing improvement measures.
• Re the Securities and Exchange Surveillance Commission’s Recommendations: Report of the Committee’s Investigation and Nomura’s Proposed Improvement
Measures (News Releases) http://www.nomuraholdings.com/news/nr/holdings/20120629/20120629_b.pdf
• Re: Status of Progress of Improvement Measures concerning the Securities and Exchange Surveillance Commission’s Recommendations and Additional Investigations
(News Releases) http://www.nomuraholdings.com/news/nr/holdings/20120726/20120726_b.pdf
Outline of Improvement Measures
1. Enhancement of the control system for Corporate-related Information
• The newly established “Equity Administration Department” shall monitor
call recordings, use of e-mails and online chats, and use of entertainment
expenses by the employees in the departments in charge of institutional
equity sales.
• It shall be the responsibility of the Equity Administration Department to
prepare for public offerings, thereby not allowing salespeople to interfere
with such matters. This process shall prevent Corporate-related
Information from being inferred by the salespeople.
• The employees in the departments in charge of institutional equity sales
shall be provided with mobile phones with a recording function, and the
use of such mobile phones shall be required. The use of private mobile
phones for business purposes shall be prohibited. The retention period
for call recordings (both the office phones and the mobile phones) for the
departments in charge of institutional equity sales shall be two years.
• The employees in the departments in charge of institutional equity sales
shall be prohibited from making any inquiries regarding Corporate-
related Information to analysts or to private-side departments* such as
the Syndicate Department.
• Inadvertent dissemination of information that may suggest Corporate-
related Information shall be prevented by limiting the users of chat
functionalities to those approved by the Equity Administration Department
and by restricting what could be communicated in online chats.
• The transfer of information that is clearly recognizable as Corporate-
related Information as well as any information that may suggest
Corporate-related Information shall be prohibited by internal rules.
* “Private-side departments” means those divisions at an operational level that have a
high likelihood of contact with corporate-related Information
2. Improvement of personnel management system
• In performance appraisals, “Business Ethics/Compliance” shall be
emphasized as an important assessment criterion to be ranked equal to
“Achievement and Result” and “Potentiality.”
• In reviewing our compensation scheme, (1) the qualitative assessment
of business ethics shall be given more weight in the promotion criteria,
(2) the year-end assessment/compensation (bonus) shall reflect the
qualitative assessment, and (3) guidelines concerning the reduction or
clawback of deferred compensations on the ground of receiving a
disciplinary action in connection with a breach of compliance rules and
policies shall be prepared.
• The category of employees for whom the passing of the Japan Securities
Dealers Association’s “Internal Administration Supervisor Qualification
Examination” is a prerequisite for promotion to the manager grade level
shall be expanded.
• Compliance and ethical values shall be emphasized in the firm’s
recruitment process. In conducting aptitude checks, further emphasis
shall be placed on “White-collar crime” and “Leakage of information”
among wrong-doing tendencies and in conducting interviews, the
interviewee’s compliance awareness shall be evaluated.
3. Imbuing of business ethics
• All officers and employees shall be required to attend a mandatory group
training session on business ethics once a year. In addition to the annual
training session, the employees in charge of institutional equity sales shall
be required to attend a semi-annual training session on business ethics.
Through these training sessions, each employee shall be made fully
aware that any breach of laws and regulations would result in severe
disciplinary action and that a history of disciplinary action would affect
future performance appraisals and/or promotion decisions.
• The employees of the departments in charge of institutional equity sales
shall submit semi-annually a declaration of compliance relating to such
topics as information control and the prohibition against insider trading.
• All employees shall be reminded that, in the event that one notes any
questionable matter suggesting a lack of compliance, he/she should
actively report it to the Compliance Hotline.
• By drawing up guidelines prescribing the use of entertainment expenses,
restrictions shall be imposed on certain entertainment and gifts, and
excessive concentration on particular clients shall be prohibited. The
expense auditing by the Inspection & Examination Department shall
also be reinforced. Inappropriate use of entertainment expenses shall
be subject to severe disciplinary action.
NOMURA Report 2012
Code of Ethics and Compliance
Nomura Group established a Code of Ethics in March
2004 that covers all of its executives and employees
around the world. Every year each of our executives and
employees must renew their pledge to abide by the Code
of Ethics. Employees with divisions at an operational level
that often come into contact with corporate-related
information and confidential information are required to
sign a confidentiality pledge twice each year.
Our personnel management also places emphasis
on compliance awareness and professional ethics. At the
time of hiring, the compliance awareness of all prospective
employees, regardless if they are new graduates or mid-
career hires, is carefully scrutinized. Professional ethics
and compliance is an important indicator for personal
evaluations for performance assessments or job transfers
after joining the company. Our executives and employees
always set their challenges related to professional ethics
and compliance as part of the issues they plan to address
determined at the outset of each fiscal year. If problems
are found, the assessor provides proper guidance and
reflects evaluation results in their pay scale.
See pages 43 and 44 for more on our compliance
system. Visit our corporate website for more on the Code
of Ethics.
http://www.nomuraholdings.com/company/basic/
Reinforcing our commitment to compliance and professional ethics
I would like to share my thoughts on the problems that
would ever occur if we just automatically followed the
came to light regarding inside information being shared by
rules. The
Improvement Measures
Implementation
our employees in relation to public offerings. I would also
Committee has already reviewed our systems and
like to convey the measures that we are taking to prevent
practices and will take steps to continually reinforce our
this from occurring again.
internal controls and improve our self-discipline. I believe
First, all of our executives and employees must
that we must build a more effective
information
recognize that these incidents are not merely a problem
management system and ensure that all of our employees
related to certain departments and employees, but rather
understand and follow this system. We also need to
they should be seen as a company-wide issue. Under the
increase the severity of disciplinary action and make our
challenging business environment since the spring of
compliance hotline more known to our employees so they
2009, Japan has seen a number of large equity finance
can use it to report violations. I will continue to ensure that
transactions. We served as a lead underwriter on many of
we take measures to not forget what happened and how
these deals and our employees engaged
in both
we respond.
underwriting operations and primary and secondary sales.
As a market leader, our responsibility to society can
The fundamental problem behind these incidents is that as
be found in our efforts to help ensure the fair operation and
capital market professionals we failed to see the unusual
development of Japan’s capital markets. I will make certain
events that occurred in the market during this time as a
that our entire company works together in order to raise
problem. I believe that everyone at Nomura Securities
our awareness of this responsibility, establish a high
should have thought for themselves and pointed out anything
standard of professional ethics, regain the trust of public,
they felt was not right. We should have worked harder to
and contribute to the sound development of Japan’s
ensure the sound operation of Japan’s capital markets.
capital markets.
The second problem I would like to address is our
compliance practices. We have taken pride in the fact that
our compliance system is one of the most stringent in
Japan and is backed by clearly defined rules. However,
this pride may have made us believe that no problems
Shoichi Nagamatsu
Representative Executive Officer
Compliance Division and Corporate Planning
Nomura Securities Co., Ltd.
NOMURA Report 2012
Chapter III
Citizenship
Nomura Group in Chapter III refers to the Nomura Group without Nomura Land and Building Co., Ltd. (NLB) as well as the company that became a consolidated subsidiary
through the acquisition of shares in NLB by Nomura Holdings, Inc. The same applies for Key Facts related to CSR on p. 65 - p. 68.
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Stakeholder Dialog
Responding to the Voice of Society
Case 1
Financial Literacy Programs in Japan
The Nomura Group was among the first in the industry to begin offering financial and
economics education programs for youth. These include courses for college students that
began in 2001, lectures for elementary and junior high school students, and our sponsorship
of the Nikkei Stock League Contest for junior high school students through to college
students. Since their inception, more than 500,000 participants have taken part in these
programs. We sat down with stakeholders from both inside and outside the company to
discuss the future of our financial and economics education programs.
Challenges Related to Financial and Economics
Education in Japan
Nagasawa: If asked why we need financial and economics
education, I would respond that we need to use this as
knowledge in order to have a better quality of life. This
education should be provided from the elementary school
level, and I believe it is too late to wait until later in life when
someone finally begins to realize the need for asset building.
Moreover, consumers must be better educated under the
premise that more trustworthy financial products be provided
to the market.
Takahashi: Financial and economics education has recently
been included in government guidelines on school curriculum,
and teachers’ mindsets have also changed from viewing
finance and economics as a subject that should not be taught
to one that is integral in today’s educational curriculums. It is
important to continually deliver a strong message that in
order to build a sound society it is necessary to cultivate
sound companies. This is because many of the companies at
which students will work in the future have grown thanks
to investment.
What Role Should Nomura Play
Nagasawa: During times when society must change, finance
is the field that helps change major social frameworks and
lead to new innovation. Finance also helps new companies
grow and in this regard investment plays a major role in
forming a sustainable society. Since a certain level of
professional knowledge is necessary to teach finance and
economics, the financial institutions should provide knowledge
and personnel to schools. However, marketing and education
are two different things, so I would like Nomura to recognize
the need to maintain a neutral stance in the classroom.
Takahashi: I would like Nomura to be involved in financial and
economics education from the standpoint of cultivating
Japan’s future leaders. The other day my students and I were
invited to attend the Nikkei Stock League Contest’s
networking session*. Students appeared to be inspired by
the words of Nomura employees. I hope Nomura continues
to provide this type of stimulus. Also, I’d like Nomura to
develop a stronger interest in training teachers involved in
financial and economics education.
Koike: Mr. Takahashi mentioned that the goal of financial and
economics education is to build a better society. I believe the
securities industry shares this same goal for the future. I’m in
charge of training programs and find that employees are
motivated by the fact that they can make the future of Japan
and society in general better through investment. Yet,
unfortunately, I feel most people in Japan tend to view investing
as simply a way to make money. Financial and economics
education will play an important role in conveying the true
function of investment.
Toh: Our branch offices are involved with financial and
economics lectures provided in classrooms and I, too, have
had the chance to be a lecturer at an elementary school. We
also receive similar requests from schools outside this program
and the opportunity for frontline staff to make contributions to
the local community gives them a stronger sense of purpose. I
believe that our employees’ involvement in financial and
economics education, where they play a role in conveying the
role of investment and brokerage houses, will directly contribute
to the growth of the Nomura Group.
* The Nomura Group has served as a special sponsor of the Nikkei Stock League Contest,
a stock education competition held by the Nihon Keizai Shimbun, Inc., for more than a
decade. The networking session held for the winning team and Nomura employees
involves a presentation by students and Q&A session for employees.
Yumiko Nagasawa
Executive Director, Foster Forum
Member, Financial System Council, FSA
Katsuya Takahashi
Tokyo Metropolitan Oshukan Secondary
Education School
Executive Director
Civics and Social Studies Research Society
Rumi Koike
Human Resource Development,
Retail Strategy Department
Nomura Securities
Yuichi Toh
Sales, Koishikawa Branch
Nomura Securities
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Stakeholder Dialog
Responding to the Voice of Society
Case 2
Initiatives to Address Youth Unemployment in the UK
The UK’s youth unemployment rate stands at its highest level in the last 25 years, while
London has seen its population of NEET (Not in Education, Employment or Training) between
the ages of 16 to 24 jump to an estimated 120,000. The Nomura Group’s London Office is
working to address this issue together with a local NPO as part of its philanthropic activities.
Stakeholders from both inside and outside the company came together to discuss the topic of
youth unemployment and Nomura’s initiatives.
Major Societal Issues in London
Tyler: The key issues within the region and specifically urban
centers are around disengaged youth, unemployment and
lack of social mobility. The problems of youth unemployment
stem from a variety of reasons but all contribute to creating
a lost generation of talent and holding young people back
from fulfilling their true potential.
Nomura’s Initiatives to Address These Issues
Rahman: Through working closely with Tower Hamlets
Education Business Partnership and funding, through The
Nomura Charitable Trust our ‘Passport to Employability’
program, Nomura is committed to engaging with young
people before they reach the NEET stage. The program is
designed to familiarize and prepare young people for the
world of work and help to raise their aspirations and
confidence levels.
Harte: Some of the neighborhoods adjacent to Nomura’s
office in London face very high levels of deprivation, so all
our community affairs activities support the most vulnerable
in society. However, Nomura alone cannot resolve all the
social issues that are present in our local communities, but
through developing strong partnerships with the voluntary
sector, Nomura is making a positive difference to those most
in need. In addition, by working closely with peers in the
financial sector, we have identified streams of our giving so
we can maximize the impact we are making. For Nomura,
this includes addressing the aspirations, attainment and
employability of disadvantaged young people.
Leveraging the Skills and Professional
Knowledge of Nomura Employees
Harte: We know that to make a significant contribution to
the voluntary sector, our involvement needs to extend
beyond just financial contributions. Our diverse workforce in
London has a wide range of skills, expertise and knowledge
that can be used to inspire a generation of disadvantaged
young people to help them reach their full potential and
achieve their goals. Across the organization frequent
workshops and activities that support the employability
potential of young people take place at Nomura, including
mock interviews and CV writing. Nomura employees help
break down barriers and change misconceptions about
working in the City of London through advice, support and
guidance to the young people.
Amrani: I attended Oaklands Secondary School (one of
Nomura’s UK school partners) before gaining employment
at Nomura. Working for Nomura now, I was keen to give
something back to my local community and as such joined
one of the school partner schemes at Oaklands Secondary
School where I visited the school every two weeks to work
with a small group of students during their lunch hour.
Subsequently to this I took up a mentoring role with a young
student at the school who now has expressed an interest in
the graduate scheme at Nomura.
Mike Tyler MBE
Director
Tower Hamlets Education
Business Partnership
Imdadur Rahman
‘Passport to Employability’
Project Manager
Tower Hamlets Education
Business Partnership
Anthony Harte
Head of Community Affairs
EMEA
Nomura International PLC
Sofian Amrani
Finance Division,
Nomura International PLC
former Oaklands Secondary
School pupil
NOMURA Report 2012
Case 3
Initiatives to Help Lesser Privileged Children in India
Despite its rapid economic growth, India is still faced with serious poverty issues. Although the
poverty rate is higher in rural parts of the country compared to urban areas, cases of extreme
poverty are said to be most prevalent in cities. India also faces the problem of high primary
education dropout rates. The Nomura Group’s Powai Office and NGO partners engaged in
these issues sat down to discuss their activities.
Issues Facing Education in the Local Community
Manvi: The underprivileged in Mumbai are mainly slum dwellers,
who are illiterate immigrants from different parts of India.
They are unable to provide education to their children; some
families have low income and lack of work, so instead of
sending their children to school, they are sent to work. The
female child dropout rate is high as girls are expected to
share the burden of child care and housework. These
children lack adequate role models to motivate them toward
gaining education.
Sanaa: The conditions they live in can hamper their access
to education, despite the availability of free primary education.
The valiant efforts made by the government, municipal
corporations and the NGOs are not very effective as the
issue of school drop-outs and non-enrollment continue to
plague our society.
Nomura’s Assistance and Its Effect
Natasha: We would like to address the developmental
needs of the underprivileged children supported by our NGO
partners by focusing on increasing the reach of our volunteer
led programs like Spoken English, Saturday Club, Computer
program and Drop out remedial program, and Extend
support to more communities by associating with some
more NGOs.
Ruby: We measure the impact of our community affairs
initiatives in the area of education by measuring the number
of children supported through our initiatives, the number of
volunteers, the volunteer hours, funds raised through
initiatives. In addition to those we recognize that fostering
innovations are required for new activities to address an
unserved need or an existing need in a better way.
Leveraging the Skills and Professional
Knowledge of Nomura Employees
CSR Volunteers: Through various community affairs initiatives
we leverage the employees’ skills and their ability to make
positive contributions to the community. Currently our
volunteers are using their knowledge and skills to teach
underprivileged children basic computer skills, spoken
English, mathematics and science.
Sneha: Many volunteers lead these initiatives and are able to
put their leadership and organizing skills to use. Our
volunteers form a relationship of trust and mutual respect
with the children they support wherein the children look up
to them as role models.
Natasha: For employees, deploying their skills, time and
effort to give back to the communities gives them satisfaction
through the positive contributions they make. Volunteering is
a platform that allows employees to support and work
closely with various NGOs. It involves going out into the
communities, teaching, participating in meaningful activities,
volunteering in the pediatric wards and old age homes or
merely spending time with the underprivileged children and
women. This encourages and fosters teamwork and bonding
among our employees, as they spend time with each other
in activities toward a common cause, which are also outside
of the work environment.
Manvi Singh
Program Head, Vidya
Sanaa Shaikh
Director, Education and
Donor Relations,
Aseema Charitable Trust
Sneha Senapati
Program Manager,
Udaan India Foundation
Natasha Mathur
Head of Recruitment, L&D,
D&I and CSR, Nomura, Powai
Ruby Lahir
CSR Lead, Nomura, Powai
CSR Divisional Representatives •Devina Malik •Santosh Huprikar •Sonal Patnaik •Darius Rastagiri
CSR Volunteers •Ajith Menon •Ankush Agrawal •Kirk Fonseca •Vipul Bhardwaj
NOMURA Report 2012 0
Business for
Sustainability
Responsible
Business
Citizenship
Our Community
Fundamental Approach
Initiatives in Japan
Nomura’s initiatives in Japan mainly focus on
financial and economics education programs
and the Pacific Music Festival (PMF) aimed at
Under its goal of “For Future Generations,” the
developing the next generation. We also work
Nomura Group participates in dialog with its
to resolve social issues through participation in
stakeholders and gets involved with a wide range
community activities,
relief assistance
to
of social action programs around the world
disasters worldwide and our financial services.
through its business operations and as a member
of the local community. In order to achieve
Financial and Economics Education Programs
sustainable development in society for future
Nomura believes that knowledge of finance
generations, we actively promote employee-
and economics is crucial not only for building
driven activities in the areas of education,
adequate wealth but also for the sound,
community affairs and environmental protection.
long-term development of the capital markets.
In
the
important field of education,
Since the 1990s, we have provided financial
employees actively participate in activities such
and economics education for students as well
as financial and economics education programs,
as adults. Our involvement spans the distribution
basic education in developing countries and
of textbooks for elementary, junior and senior
employment assistance to youngsters. As part of
high school students to financial lectures, and
our community affairs, Nomura works as a whole
financial courses
for university students
to resolve various social issues through different
worldwide, and employee-led programs for
events, support of regional health and welfare-
elementary,
junior and senior high school
related programs and environmental conservation
students, and a stock education contest for
activities. These
initiatives also provide an
junior and senior high school and university
opportunity for our employees to grow.
students through the Nikkei Stock League. See
our website for details.
Breakdown of community contribution
expenditure
http://www.nomuraholdings.com/csr/citizenship/
society/education.html
Community-based Activities
Our more than 170 branches and offices in Japan
contribute
to
local communities
through
sponsorship of regional events and social activities,
and other employee-driven community affairs
activities. In fiscal 2011, employees also took
part in charity marathons and local festivals,
Education
48.2%
Total
¥1.2 billion
Arts, culture
and sports
8.7%
Science and academic achievement
6.5%
Other
6.5%
Disaster relief
5.8%
Human
rights
and labor
0.2%
Environment
3.5%
Welfare and
health
4.0%
Community
contribution
16.5%
Notes:
1) Total expenditure worldwide (Fiscal 2011)
2) Figures includes:
- Approximately ¥230 million from the Nomura Foundation
- Approximately ¥80 million from the Nomura Charitable Trust
- Approximately ¥20 million from the Nomura America Foundation
NOMURA Report 2012
Over 200 employees and their families took part in the Nihonbashi
Bridge Cleanup Event
regularly visited orphanages and assisted in
volunteers visit an NGO and teach various
community clean-ups.
Initiatives in AEJ
In AEJ, our Community Affairs Network conducts
subjects to children aged six to eight. A spoken
English program prepares pre-college students,
and a remedial program helps young girls who
have left school and taken up menial jobs to
volunteer activities aimed at resolving issues
add to their family income. The volunteers raise
related to the environment and children based
awareness about alternate careers and help the
on community needs. In March 2012, the
girls develop vocational skills in arts and crafts
Network launched a two-year partnership with
and acquire a basic understanding of
HandsOn HK, an NGO working with local
mathematics and English.
charities to develop volunteer programs and to
recruit, train and manage volunteers for these
projects. The initiative focuses on children, the
Initiatives in EMEA
Our community affairs program in EMEA focuses
elderly, people with disabilities and animal welfare.
on supporting disadvantaged young people in
In Powai, we partner with NGOs to
the local communities in which we operate. Our
implement programs
in
four
areas—
approach is to help young people break through
environment, education,
fundraising and
the limitations of their environment and raise
employee engagement. Our emphasis in 2011
their aspirations. Like initiatives elsewhere, we
was on employee engagement and education
partner with charities and local community
as we worked to raise awareness in our offices
organizations
to
provide
the
financial
of key issues facing local communities. We try
contributions as well as the variety of skills and
to address these issues through employee
expertise of our employees required to deliver
initiatives and structured forums and events.
the most meaningful and sustainable results.
Lead Sponsor for the Hong Kong International
Costal Cleanup Challenge
Rainbow Trust Partnership (2011–13)
Nomura’s London Charity Partner, Rainbow
For
the
third consecutive year, Nomura
Trust, provides emotional and practical support
International Limited (Hong Kong) was the lead
to families who have a child with a life-threatening
sponsor of the Hong Kong International Coastal
or terminal illness. Over the last fourteen months,
Cleanup Challenge (HKICCC), a two-month
697 employees have helped raise more than
event organized annually by
the Ocean
£310,000. The money will fund a brand new
Conservancy.
It
is
the world’s
largest
central London team of support workers to help
environmental volunteer effort, comprised of half
families in need.
a million people from over 100 countries. This
year’s program attracted 11,912 participants
Oaklands Secondary School (Volunteering)
who removed 47,942kg of waste from over
The partnership between Oaklands Secondary
170km of local beaches in Hong Kong. Over
School in London and Nomura has been in
160 Nomura volunteers spent a day cleaning the
existence since October 2008. The partnership
Suk Kwu Wan beach on Lamma Island.
is firmly rooted in the daily operations of the
bank,
through seven volunteer schemes,
welcoming students into our offices and hosting
work experience placements.
Education Programs for Children Supported
by Our Partner NGOs
The Powai office partners with NGOs that
support underprivileged children while employee
volunteers work with them on educational
initiatives. At a Saturday club program, Nomura
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Our Community
Initiatives in the Americas
Our community affairs program in the Americas
supports international exchanges to foster US–
Japan cultural, educational and economic ties.
Foundations
Employee volunteers also provide help based
Nomura Foundation (Japan)
on community needs.
Japan Day 2011
The Nomura Foundation is a public benefit
foundation established in April 2010 through the
merger of Nomura Foundation for Social Science,
Nomura Holding America Inc. (NHA) sponsored
The Nomura Cultural Foundation and Tokyo Club
the fifth annual “Japan Day @ Central Park” in
Foundation for Global Studies. Its goals are to
New York on May 22, 2011. In light of the March
advance academic research in Japan, the world
11 disaster in Japan, the festival’s theme was
economy and arts and culture,
fostering
“Ganbare! Japan!” (“Don’t give up, Japan”).
international talent and encouraging international
Events
included cultural workshops and
understanding. The foundation extends grants
demonstrations, and a special appearance by
for the social sciences, awards scholarships to
Hello Kitty.
foreign students, and supports global economic
The festival builds bridges of cultural
research and arts and culture. See our website
understanding between the two countries and
for details.
facilitates stronger grassroots connections
http://www.nomurafoundation.or.jp/en/
within the local Japanese community.
Initiatives by INSTINET
INSTINET INCORPORATED supports a range
The Nomura Charitable Trust (UK)
The Nomura Charitable Trust was established in
2009 to improve the lives of disadvantaged
of charitable organizations globally, primarily
young people who need assistance in London
directing aid to healthcare and educational
and across the region. The trust focuses on
initiatives. The Nomura subsidiary encourages
raising educational attainment, employability
employee participation
in
its charitable
potential and aspirations of disadvantaged
endeavors, with
staff nominating most
young people. In 2011, nine grants were
beneficiary organizations.
awarded, supporting more than 8,000 young
people across the region.
Elevate New York Mentoring Partnership
Since early 2011, Instinet employees have
mentored Bronx high school students through
Nomura America Foundation (US)
The Nomura America Foundation awards grants
the Elevate New York program, aimed at building
to organizations for charitable, scientific, literary
long-term, life-changing relationships between
and educational purposes. The foundation
urban youth and professionals. Participating
supports a variety of
large and small
Instinet employees donated approximately 500
organizations that promote the arts, cultural
work hours to the effort in FY2011, each week
awareness, music,
science,
education,
discussing one of 13 character qualities and life
children’s welfare and community projects.
skills, as well as providing practical assistance
In 2011, the foundation established two
with college preparation, career selection and
matching gift programs through which it matches
resume development. In the summer of 2012,
donations made by employees of NHA and
Instinet will expand the relationship by providing
certain US affiliates to qualified educational
internships to Elevate New York graduates.
institutions and international relief organizations.
NOMURA Report 2012
Column
Reconstruction Assistance Following the Great East Japan Earthquake
Nomura has been supporting disaster victims and stricken areas through our regular operations
(see pages 14, 20 and 24) and volunteer efforts by employees. We are continuing to provide support
as needs have shifted from emergency relief to reconstruction.
Employee Volunteer Activities/
Donations
• Participated in volunteer relief and recovery
programs, including debris removal in stricken
areas such as Rikuzentakata city in Iwate.
• Provided employee volunteer support to hold
sports days for elementary and junior high
schools through the “Sports Festival Support
Caravan 2011.”
• Collected funds in-house in Japan, EMEA, AEJ,
and the Americas, and made donations to five
prefectural governments
in stricken areas
through Japan Platform and the Red Cross, etc.
• Donated over 170 pieces of office furniture to five
fisheries facilities in three towns through “Signal
of Hope Project” for the recovery of fishing ports
and markets.
• Employees in New York and Washington, D.C.
The children of Uiso Elementary School, Miyako City, Iwate
Prefecture
“This has really made the students think
about what they can do to repay such kindness,
and we are all working hard to foster them as
forces of reconstruction so that they can contribute
to society in the future.” stated one junior high
participated in “Run for Japan” and other charity
school principal in a word of thanks.
events.
• Served salads and sandwiches using vegetables
from stricken areas at company cafeterias to
counter harmful rumors and encouraged the
purchase of fruit from Fukushima within the Group.
Relief and reconstruction volunteer activities in stricken area
Donated Musical Instruments through
PMF Charity Concert
Nomura held a charity concert on August 4,
2011, together with the Pacific Music Festival
(PMF), an international educational music festival
we have supported for 20 years. A total of 30
instruments were donated to elementary and
junior high schools in stricken areas using ticket
proceeds and donations collected at the concert
and from employees.
Continued to Support Stricken Areas
through “Sakura Project 3.11”
Nomura supported “Sakura Project 3.11” by
helping to plant cherry trees in Tohanayama in
Miyagi Prefecture and through donations. Plans
are to continue supporting tree planting and nature
conservation activities in this area.
Nomura Foundation Scholarship
Supports Regional Revival
The Nomura Foundation provides ¥100 million in
scholarships over five years (¥20 million annually)
to students of Iwate University, Tohoku University
and Fukushima University that are in stricken
areas to provide much-needed financial support,
help developing
researchers and promote
regional education.
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Our People
Fundamental Approach
programs that will help enhance each employee’s
competitiveness and build teamwork.
Through these education and training
programs, we provide employees with the
The Nomura Group employs a diverse pool of
necessary skills for their current workplace and
professional personnel around the world who
develop the personnel who will serve as the
are capable of providing sophisticated financial
future leaders of the finance industry. Another
services and whose career paths within the
aim of these programs is to help employees
group and values are unique. We strive to
build their respective future careers at Nomura.
manage our personnel in a flexible and suitable
manner so that each and every one of our
employees can thrive as they contribute their
skills to the workplace.
[Training Program Example 1]
Development Program for Junior Employees:
Receiving Feedback
In addition to providing well-developed
Junior employees need to be able to analyze
education and training programs to support
feedback from their supervisors and use it for
our
employees’
self-led
skill building
personal growth and skills development. This
endeavors, we also evaluate the achievements
program teaches them how to examine and
and skills of each employee and deploy our
take advantage of supervisor
feedback.
personnel with an eye on the future career
Participants learn how to interpret feedback and
path of each individual.
recognize differences in feedback resulting from
In this manner, the Nomura Group is able
the communication style of their supervisor.
to maximize the skills of each employee and
further enhance its client services through
personnel management
that emphasizes
[Training Program Example 2]
Program for Managers: Leading Change
diversity in the workplace.
Personnel Development
Constantly changing markets demand leaders
capable of understanding the process of these
changes, driving organization-wide changes,
and providing management and support. This
program teaches managers about the actions
leaders should take in order to cope with and
Wholesale Division
Today, the Nomura Group’s workforce includes
make changes. Past participants have shared
the
following
feedback on
the program:
employees
representing more
than 70
“I
learned
about
the
importance
of
nationalities. This diverse pool of personnel is
communication and coaching,” and, “I was able
our most important asset, and as such, we are
to understand the process for leading change.”
committed to providing education and training
Personnel Development Policy
• Partner with our business divisions to identify needs, and provide practical, relevant solutions to drive
employee and organizational performance.
• Plan, develop and deliver learning programs to create opportunities for our people to build their core skills.
• Provide various platforms for our people to establish networks across products, divisions and regions.
• Build organizational and leadership capability to manage change and continue to build the Nomura
global franchise.
NOMURA Report 2012
Retail Division
To provide sophisticated financial services that
activities at our business sites. Today, these
networks include Women in Nomura (WIN),
better respond to clients’ needs, our Retail Division
which encourages the career development of
has been encouraging the personal growth of
and provides networking opportunities
for
its employees through educational programs
women, Life & Family, which promotes healthy
that develop capabilities
for
independently
living and managing a work-life balance, and
thinking, acting and delivering results.
Lesbian, Gay, Bisexual and Transgender (LGBT),
Group training for the first three years of
which works to foster understanding about
employment and training at given milestones
gender minorities. These networks are run by
(new hire, appointment or promotion) provide
our employees who organize and implement
the specific knowledge and skills required while
their activities.
also
reinforcing personal qualities
and
strengthening compliance and professional
ethics. In addition to Web-based tools and
Employee Network Activities
As part of WIN activities in Japan, we regularly
e-learning, practical business
training
is
host the WIN Roundtable. Each session involves
conducted by individual departments and for
presentations made by women role models on
each job title as required to effectively upgrade
certain themes as well as interactive discussions
employee competencies. We cover the costs of
with participants. The purpose of the WIN
certification examination fees and other expenses
Roundtable is to help employees share their
as well as voluntary training programs, and
feelings and understand issues facing them
provide
support
for
commuting
and
through discussions
to build a more
correspondence courses associated with learning
accommodating workplace.
another language. Looking ahead, we plan to
further upgrade programs with new methods
The 2nd WIN Roundtable held on
February 1, 2012, featured discussions on a
and approaches based on employee feedback.
SWOT (strengths, weaknesses, opportunities,
Diversity and Inclusion at
Nomura
threats) analysis of the Nomura Group based
on the work experiences of women employees
who joined Nomura at the time of the Lehman
Brothers acquisition and mid-career female
hires who had professional experience at
Nomura recognizes the
importance
for a
non-Japanese financial institutions prior to
multinational company
to offer workplace
joining Nomura.
environments that encourage diversity and
inclusion, to promote recognition of differences,
respect for one another and team work.
The Nomura Group considers the promotion
of diversity and inclusion to be one of its most
important tasks. This belief is deeply ingrained
in our action plan for all employees, hiring criteria
and personnel development policy.
Employee networks play a central role in
The 2nd WIN Roundtable
NOMURA Report 2012
Business for
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Citizenship
Our People
Good Work Environments
to Facilitate Productivity
provides easy-to-understand commentary on
basic approaches to mental healthcare and
how to work with employees affected by a
mental illness. These initiatives have helped us
The Nomura Group recognizes the importance
build a solid employee mental healthcare system
of maintaining decent, comfortable working
that covers all workplaces.
environments. We offer employee benefits
programs, such as childcare, family nursing
care and employee healthcare
to ensure
Diversity in Work Formats
We have established workplaces where each
employees can complete their work confidently
employee can thrive at work, regardless of his
and enthusiastically on an ongoing basis.
or her age or physical ability.
In advance of revisions made to Japan’s
Occupational Health and Safety
We support working conditions that allow each
Act for Stabilization etc. of Employment of Older
Persons
in 2006, we
introduced a
re-
employee to fully concentrate on their work in a
employment program fully compliant with the
healthy condition, both with good physical and
new law. Since then, we have provided flexible
mental health. We have shifted our emphasis to
employment opportunities in principle to all
early discovery and intervention.
applicants, spanning from after mandatory
Our industrial physicians periodically visit
retirement at age 60 to age 65, based on their
our worksites for health monitoring and conduct
experience and
requests. Each of
these
face-to-face
interviews with
supervising
employees has been able to balance their work
managers. Improvement measures are being
with their post-retirement lifestyle, contributing
introduced to departments with a history of
their skills in a wide array of workplaces.
employees working long hours, and mandatory
The Nomura Group also provides a broad
health examinations are provided for employees
range of employment opportunities to persons
who work extended hours.
with disabilities. Each workplace is consulted
To safeguard the mental health of our
with on how best to utilize the skills and aptitudes
employees, we provide access to psychiatrists
of these individuals so that they are motivated
and an employee counseling room staffed by a
and committed to their duties. Nomura Securities
dedicated professional. We
also offer
provides employment opportunities to persons
consultation services provided by medical staff
with disabilities that exceed the number as
at our Health Management Center. For
required by law, and these individuals can be
employees affected by a mental illness, we
found in a variety of workplaces at the company.
assign a dedicated medical staff member that
maintains regular and close contact with the
employee and also works with their supervisor
Helping Employees Balance Work
and Childcare
to ensure a smooth transition back to work.
The Nomura Group has developed a wide range
In fiscal 2011, we compiled and distributed
of programs based on Japan’s Act for Measures
a Mental Healthcare Manual to managers that
to Support the Development of the Next
Action Plan for the Act for Measures to Support the Development of the Next Generation
(Term: April 1, 2012 to March 31, 2015)
Target 1
Maintain the following standards in terms of employees taking childcare leave during the term of the action plan:
• Male employees: Ensure childcare leave is taken by at least one male employee
• Female employees: Ensure childcare leave is taken by more than 80% of eligible female employees
Target 2 Make the daycare subsidy program better known to employees during the term of the action plan
Target 3 Make the babysitter discount program known to employees during the term of the action plan
NOMURA Report 2012
Generation, which encourages companies to
basic policies and guidelines to address the
provide workplace environments where employees
various forms of harassment and for protecting
can balance their work and childcare needs.
the rights of people infected with HIV. All types
Nomura Securities sets targets for the
of consultation contacts are available both
number of male employees taking childcare
within and outside the company through our
leave and for the use of its benefit programs
Sexual Harassment/Power Harassment Hotline
such as special work hours during child-rearing
to help prevent harassment in the workplace.
years, among other themes. As a result of these
initiatives, we were certified with the Kurumin
logo as part of the Act for Measures to Support
the Development of the Next
Generation again
in fiscal
2012,
following
similar
recognition in 2007 and 2009.
Respecting Human
Rights
We have established various mechanisms to
prevent discrimination and harassment. Nomura
Securities strives to spread awareness of human
rights through ongoing human rights training,
primarily based on the efforts of the Nomura
Securities Human Rights Committee.
Committee
membership
includes
compliance officers in each department and
branch, who remind employees of the importance
of human rights and conduct training programs
to impart accurate knowledge and deepen
employees’ understanding of human rights.
We have also established and comply with
HIV
In April 2006, we revised our existing guidelines
on HIV-infected employees first established in
1994, creating the Basic Policy Concerning HIV-
infected Employees. This policy clearly stipulates
that the Nomura Group will eliminate discrimination
and prejudice and work harder to safeguard the
human rights of HIV-infected employees.
Basic Policy Concerning HIV-infected
Employees in Japan
1. The Nomura Group shall neither dismiss
employees on the grounds of HIV infection
nor subject them to any other form of
discrimination.
2. The Nomura Group shall rigorously safeguard
the personal data of HIV-infected employees.
3. The Nomura Group shall not test for HIV in
regular employee health checks.
4. The Nomura Group shall strive to ensure
that executive officers and employees have
a correct understanding of HIV to prevent
infection and eliminate prejudice toward
those infected with HIV.
5. The Nomura Group shall create workplaces
can
employees
where HIV-infected
comfortably work.
Human rights training structure
Human Rights Education Committee
Chairperson (Appointed by President)
Secretary: Executive officer, human resources Secretariat: Human Rights Education Department
Members: Selected executive officers and managing directors
Human Rights Awareness Promotion Members: Department / Branch Compliance Officers
Review and Monitor Employment System
Develop Awareness and Training Program Platforms
Hiring-related systems
• Assess recruiting and hiring tools
• Assess selection methods and criteria
Hiring-related training
• Participate in external workshops
• Train hiring managers in-house
Human rights education and training
• Participate in external workshops
• In-house training
NOMURA Report 2012
Business for
Sustainability
Responsible
Business
Citizenship
Our Environment
Fundamental Approach
comprehensively
conduct
environmental
preservation activities through an environmental
management system (EMS) based on PDCA
(Plan-Do-Check-Act) cycles.
The Nomura Group is working to lower its overall
The Environmental Activities Working
environmental impact. We have established an
Group in Japan collaborates with environmental
environmental management system to drive
managers at each of our business locations in
comprehensive efforts in Japan, and our business
EMEA, the Americas and AEJ to ensure that
offices across the globe are taking initiatives to
environmental information is collected on a
manage their environmental footprints. We have
worldwide basis.
expanded our disclosure globally, and report
The scope of environmental information
group environmental targets and achievements.
disclosed for fiscal 2010 includes Nomura Group
Environmental Statement and
Environmental Policy
locations in Japan, EMEA and India. For fiscal
2011, we have expanded this scope to include
our primary locations in AEJ and the Americas.
All our employees engage in activities aligned with
Nomura
International PLC, our UK
our Environmental Statement and Environmental
subsidiary, has maintained
ISO 14001
Policy, both established in 2009, which are based
certification of its environmental management
on our commitment to environmental issues as
system at its former London headquarters at
stated in our Code of Ethics.
Environmental Management Structure
Under the leadership of the Environmental
1 St. Martin’s-le-Grand since August 2007
based on assessment by the British Standards
Institution. In August 2010, 1 Angel Lane, the
new London headquarters, was also certified to
Activities Working Group, we systematically and
ISO 14001 following an intensive audit.
Environmental Statement
The Nomura Group believes a healthy environment is the foundation of stable economic and social conditions for future generations.
We are committed to acting in an environmentally responsible manner and should therefore approach environmental issues positively.
Environmental Policy
• We encourage investment and constructive engagement in environmentally friendly goods and services.
• We will assess environmental risks and continually strive to minimize pollution and improve the environment.
• We will comply with relevant environmental laws and regulations and engage with external stakeholders on environmental issues.
• We are committed to reducing waste and conserving energy and resources to minimize the impact of our footprint on the environment.
• We will communicate this policy to all employees to raise awareness of environmental issues and encourage environmentally
friendly initiatives.
• We make this policy available for public review.
Environmental management structure
Japan
Group CEO
EMEA
Head of Environmental Affairs
Head of Environmental Affairs, EMEA
Secretariat
(Environmental Activities Working Group)
Environmental Management
Forum / Working Group
Branch Offices
Companies
Divisions / Companies
NOMURA Report 2012
Environmental Targets
We set environmental goals for each year and
closely manage the progress of our environmental
preservation activities. Environmental goals are
Efforts to Address
Climate Change
set for each region, and the Environmental
We are addressing the issue of climate change
Activities Working Group checks to see if these
through such efforts as
reducing power
targets are met. Moreover,
the Head of
consumption at offices, reducing CO2 emissions
Environmental Affairs reviews activities at the
from employee travel and purchasing green
end of each fiscal year to assess the relative
power certificates. We also collect and disclose
achievement of environmental goals and ensure
group-wide environmental information.
continuous improvements are being made.
To ensure the effectiveness of the group
environmental management
system, we
Reducing Power Consumption
We are reducing power consumption at Group-
conduct an environmental training program for
owned buildings under an ongoing program of
all Nomura Group employees, in which 85% of
replacing electrical equipment with energy-
employees participated in Japan in fiscal 2011,
saving models and managing these with greater
and an environmental efforts status review,
efficiency. For example, we are encouraging the
which garnered a 92% response rate in Japan
replacement of air-conditioning units with more
in fiscal 2011.
efficient models and implementing energy-
In the UK, we established a new goal to
saving operations by reducing hours of usage
achieve a 10% reduction in CO2 emissions over the
and adjusting room temperature settings. We
next three years compared to our fiscal 2011 level.
are also actively working to reduce power
consumption from lighting, as Nomura Asset
Management changed over all of its lighting at
its head office building and the Daiichi Edobashi
Building to LED in fiscal 2011.
Fiscal 2011 environmental objectives and progress, fiscal 2012 targets (Japan)
Reduction of
greenhouse
gas emissions
Promotion
of green
purchasing
Reduction of
paper usage
Fiscal 2011 targets
Assessment
Fiscal 2012 targets
Lower CO2 emissions at Nihonbashi head
office to 20% below fiscal 2002 level
Fuel-efficient, low-pollution
vehicles to account for 80% of fleet
Raise waste recycling rate at Nihonbashi
head office to 90%
Reduced 49.0%
82.9% of vehicles replaced
Recycling rate: 89.5%
Lower CO2 emissions at Nihonbashi head office
to 25% below fiscal 2002 level
Have fuel-efficient, low-pollution vehicles to
account for 80% of fleet
Raise waste recycling rate at Nihonbashi head
office and Nagoya Branch to 87%
Green products to account for 75% of
supplies request system items
Green products accounted
for 77.1% of purchase
Have green products account for 75% of supplies
request system items
Reduce use of paper per person bought
through supplies request system to 20%
below fiscal 2006 level
Increase number of accounts that accept
prospectuses in electronic form by
promoting electronic documentation
Reduce use of paper for internal forms by
promoting electronic documentation of
confirmation forms
Reduced 41.4%
Number of accounts
increased to 1.29 million
179 types of forms digitized
on the application and
approval system
(Savings of 140 thousand
sheets of paper)
Reduce use of paper per person bought through
supplies request system to 25% below fiscal
2006 level
Increase number of accounts that accept
prospectuses in electronic form by promoting
electronic documentation
Reduce use of paper for internal forms by
promoting electronic documentation of
confirmation forms
Promulgation of
environmental
business
—
—
Expand the number of products and services that
help resolve social issues
NOMURA Report 2012 0
Business for
Sustainability
Responsible
Business
Citizenship
Our Environment
Expanding the Use of Green Energy
We have been purchasing green power
certificates every year since fiscal 2006 as part of
our efforts to expand our use of green energy.
Going Paperless and
Promoting Recycling
In fiscal 2011, we purchased green power
We are making efforts to more effectively use
certificates equivalent to an annual 6.4 million
limited natural resources and reduce our
kWh, which we allocated to our Nihonbashi
environmental impact to assist in the creation of
head office and Takanawa Training Center. We
a recycling-oriented society.
also purchased an additional 2,000kWh of
green power at the 31st Central Bank Seminar
held in April 2012. Moreover, our offices in
Cutting Paper Use by Distributing Digital
Prospectuses and Reports
Switzerland and Germany have actively
Nomura Securities encourages the distribution
switched over to renewable energy sources,
of electronic prospectuses and reports to clients
such as hydroelectricity.
as a way to conserve paper and reduce waste.
We began e-mailing prospectus files to clients
Reducing CO2 Emissions from Employee Travel
We are in the process of changing over vehicles
in 2008, and by the end of March 2012, 1.29
million client accounts received such documents
leased by the company to low-emission models,
electronically. We are also bolstering our Home
and in order to promote eco-friendly driving
Trade Service, which enables clients to check
habits we provide information through our
the status of transactions online. We offer
intranet and instituted a system to monitor the
Nomura Eco Discounts on account management
driving practices of drivers. We have also
fees and stock brokerage fees for clients who
implemented a car sharing system as part of
subscribe to these services.
our commitment to effectively utilize company-
owned vehicles. In addition, we have installed
videoconferencing systems at our locations in
Eliminating and Digitizing Internal Forms
We are digitizing internal paper forms and reports
Japan and overseas to reduce employee travel
through our application and approval system,
by vehicle and airplane.
which we launched in July 2008. At the end of
Our German office has also been using a
March 2012, we had completely digitized 179
program by Deutsche Bahn, Germany’s
types of forms, which reduced annual paper
national railway operator, to run 100% of its
consumption by 140,000 sheets in fiscal 2011.
trains on renewable energy. As a result,
business travel using Deutsche Bahn has been
CO2 free since 2011.
Green Power certificate consumption from Nomura Group events
When
Event
Location
Green power
contracted
(kWh)
November
2011
Nomura Investment Forum 2011
Tokyo
20,000
January 2012
Nomura New Year Reception
“Japan in the World”
Tokyo/Nagoya/
Osaka/Sapporo/
Fukuoka
March 2012
Nomura Global Environment
Technology Conference
April 2012
31st Central Bank Seminar
Tokyo
Tokyo
4,000
2,000
2,000
NOMURA Report 2012
Reducing Office Paper Consumption
We are working to raise employee awareness of
the amount of copy paper they use as part of
our campaign to reduce paper consumption. In
fiscal 2011, Nomura Securities used about 701
metric tons of A4 copy paper, or some 32% less
than the 1,027 metric tons used in fiscal 2006.
This also marks a 41% reduction in paper
consumption per employee.
Environmental Activities
in the Local Community
solar
lanterns while
learning about global
warming. Children participating in the event
expressed their intention to live a more eco-
friendly lifestyle, with one stating, “I learned the
The Nomura Group carries out environmental
importance of saving electricity. I’ll try my best
events and programs worldwide
to raise
each day not to waste electricity.” Overall, the
awareness of environmental issues.
event helped to cultivate greater awareness
about energy conservation.
Plan Bee (UK)
In July 2011, Nomura installed beehives on the
roof of our London headquarters’ building. The
Participating in Earth Hour 2012 (Global)
About 35 Nomura Group offices in EMEA and
bees are part of Nomura’s wider initiative to
AEJ participated in the World Wildlife Fund’s
work together with local communities toward a
Earth Hour 2012 on March 31. Lights were
sustainable future and growth. We are partnering
turned off for one hour starting at 8:30 p.m.,
with The Golden Company, a social enterprise
local
time, while employees were also
that works with young people from inner-city
encouraged to turn off unnecessary lights at
London to develop business skills through
home and in the office, allowing the entire group
producing, marketing and selling urban honey
to share a renewed awareness of the importance
and related products. Nomura is contributing to
of saving energy.
the local community by supporting the pollinators
and inner-city youth.
Summer Holidays Environmental Event (Japan)
In August 2011,
the Nomura Group
Tree Planting Activities (China)
A volunteer team from Nomura’s Beijing Office
partnered with iearth, an environmental NGO,
and Beijing Foreign Enterprises Human
Environmental Activities Working Group co-
Resources Service Co., Ltd. (FESCO) to conduct
hosted an environmental event with an
tree-planting activities
in China. Nomura
environmental NPO entitled, “Summer Holiday
Group’s employee volunteers and their family
Environment Event – Make a Solar Lantern.” A
members helped plant more than 1,000 trees
total of 117 participants attended, including 71
on the outskirts of Beijing as part of an effort to
children of Nomura employees and 46 of their
parents. Participants made their own original
raise environmental awareness and reduce
CO2 emissions.
Solar lanterns made by participants
Volunteers at work planting trees
NOMURA Report 2012
Data Section
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
Other
total revenue
Interest expense
net revenue
non-interest expenses:
Compensation and benefits
Commissions and floor brokerage
Information processing and communications
Occupancy and related depreciation
Business development expenses
Other
total non-interest expenses
Income (loss) before income taxes
Income tax expense (benefit)
net income (loss)
less: net income (loss) attributable to noncontrolling interests
net income (loss) attributable to nHI
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
CASH FlOWS:
net cash used in operating activities
net cash used in investing activities
net cash provided by financing activities
Effect of initial adoption of investment company accounting on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
net increase (decrease) in cash and cash equivalents
NOMURA Report 2012
FY2007/08
FY2008/09
FY2009/10
FY2010/11
¥ 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)
(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
¥ 395,083
¥ 405,463
¥ 347,135
¥
(708,192)
¥ 67,798
¥ 28,661
¥ 11,583
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)
(1,219)
¥ 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)
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
288
¥ 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
¥ (1,500,770)
(269,643)
2,176,530
—
964
¥ 106,330
¥
407,081
107,005
143,939
336,503
19,292
346,103
(16,677)
43,864
1,385,492
254,794
1,130,698
518,993
92,088
182,918
87,843
30,153
125,448
1,037,443
93,255
61,330
31,925
3,264
¥ 2,150,453
2,227,822
15,156,318
15,241,931
1,916,466
¥36,692,990
¥ 1,167,077
2,103,608
13,686,438
8,688,998
552,316
8,402,917
34,601,354
2,082,754
8,882
2,091,636
¥36,692,990
¥
(235,090)
(423,214)
1,284,243
—
(26,246)
¥ 599,693
Millions of yen
FY2011/12
59,638
144,251
272,557
25,098
435,890
4,005
563,186
1,851,760
315,901
1,535,859
534,648
93,500
177,148
100,891
48,488
496,227
1,450,902
84,957
58,903
26,054
14,471
¥ 1,953,677
2,211,423
13,742,646
14,123,594
3,665,972
¥35,697,312
¥ 1,185,613
2,437,370
12,519,274
7,495,177
1,165,901
8,504,840
33,308,175
2,107,241
281,896
2,389,137
¥35,697,312
¥
290,863
9,942
(844,311)
—
(6,314)
¥
(549,820)
FY2007/08
FY2008/09
FY2009/10
FY2010/11
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
Other
total revenue
Interest expense
net revenue
non-interest expenses:
Compensation and benefits
Commissions and floor brokerage
Information processing and communications
Occupancy and related depreciation
Business development expenses
Other
total non-interest expenses
Income (loss) before income taxes
Income tax expense (benefit)
net income (loss)
net income (loss) attributable to nHI
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
CASH FlOWS:
net cash used in operating activities
net cash used in investing activities
net cash provided by financing activities
Effect of initial adoption of investment company accounting on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
net increase (decrease) in cash and cash equivalents
¥ 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)
(322)
¥ 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
less: net income (loss) attributable to noncontrolling interests
¥
(67,847)
¥
491,555
73,681
154,980
78,480
31,638
262,558
1,092,892
(780,265)
(70,854)
(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
288
¥ 67,798
¥ 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
¥ (1,500,770)
(269,643)
2,176,530
—
964
407,081
¥
¥ 405,463
107,005
143,939
336,503
19,292
346,103
(16,677)
43,864
1,385,492
254,794
1,130,698
518,993
92,088
182,918
87,843
30,153
125,448
1,037,443
93,255
61,330
31,925
3,264
¥ 28,661
¥ 2,150,453
2,227,822
15,156,318
15,241,931
1,916,466
¥36,692,990
¥ 1,167,077
2,103,608
13,686,438
8,688,998
552,316
8,402,917
34,601,354
2,082,754
8,882
2,091,636
¥36,692,990
¥
(235,090)
(423,214)
1,284,243
—
(26,246)
¥ 599,693
Millions of yen
FY2011/12
¥ 347,135
59,638
144,251
272,557
25,098
435,890
4,005
563,186
1,851,760
315,901
1,535,859
534,648
93,500
177,148
100,891
48,488
496,227
1,450,902
84,957
58,903
26,054
14,471
¥ 11,583
¥ 1,953,677
2,211,423
13,742,646
14,123,594
3,665,972
¥35,697,312
¥ 1,185,613
2,437,370
12,519,274
7,495,177
1,165,901
8,504,840
33,308,175
2,107,241
281,896
2,389,137
¥35,697,312
¥
¥
290,863
9,942
(844,311)
—
(6,314)
(549,820)
NOMURA Report 2012
Data Section
Key Facts related to CSR
Chapter I
Responding to Clients’ Needs/Evaluations from Clients
Results of customer satisfaction survey (Retail Division)
(%)
Satisfied/Neither
Dissatisfied
Other
Caseload at Customer Help Desk Department (Retail Division)
total
Complaints
Inquiries
Opinions and requests
Other
Universally accessible branch offices (Retail Division)
Certified universally accessible
With toilets for the physically challenged
With elevators for the physically challenged
With steps removed from entrances and exits
(with ramps, elevators or no steps)
With installations to mitigate entrance and exit
steps (railings or step heights reduced)
Chapter II
Corporate Governance
2010
80
10
10
2010
5,189
2,359
2,408
256
166
2010
30
78
53
136
15
2011
82
16
3
2011
5,005
3,012
1,836
13
144
2011
30
80
54
140
14
Members of the board
Board of directors
Outside directors
Non-Japanese directors
Female directors
Chapter III
Our Community
Community contribution expenditures
total
Education
Arts, culture and sports
Science and academic achievement
Community contribution
Welfare and health
Environment
Human rights and labor
Disaster relief
Other
Participants and materials in financial and economics education
2010
2011
No. of people
Ratio (%)
No. of people
Ratio (%)
14
8
4
1
-
57
29
7
11
7
3
1
-
64
27
9
Amount (Millions of yen)
Ratio (%)
2010
2011
Amount (Millions of yen)
Ratio (%)
1,369
622
70
161
138
54
25
27
120
152
-
45.4
5.2
11.7
10.1
3.9
1.8
1.9
8.8
11.1
1,205
582
106
79
199
49
43
3
71
79
-
48.2
8.7
6.5
16.5
4.0
3.5
0.2
5.8
6.5
Teaching material for elementary
schools (The Economics Classroom)
Teaching material for junior high
schools (The t-shirt shop)
Visiting classes (elementary, junior,
senior high schools)
No. of schools / participants
Nikkei Stock League
No. of teams / members
Finance courses for universities
No. of schools / participants
Financial courses for the general public
No. of courses / participants
NOMURA Report 2012
Unit
No. of schools / copies
2011
120 / 5,000
Cumulative total
2,320 / 205,000
No. of schools / copies
180 / 17,200
3,880 / 397,200
24 / 847
1,420 / 5,741
115 / 12,000
536 / 27,839
77 / 4,067
18,939 / 75,493
1,214 / 173,000
5,593 / 295,461
Number of community development projects implemented
total
Japan
EMEA
Americas
AEJ
Assistance provided to groups that contribute to society
No. of groups assisted
Chapter III
Our People
Education and training expenses
total
Japan
EMEA
Americas
AEJ
Participation in education and training (in-house training)
2010
173
40
83
31
19
2010
200
2010
2,455
1,573
489
257
136
2010
2011
370
27
196
107
40
2011
243
2011
2,033
1,468
133
280
153
2011
(Millions of yen)
total
Japan
EMEA
Americas
AEJ
Aggregate no. of
hours
Aggregate no. of
participants
Aggregate no. of
hours
Aggregate no. of
participants
272,528
207,458
3,790
-
61,280
13,146
8,255
407
-
4,484
225,184
169,385
2,766
7,390
45,643
21,928
11,965
977
1,182
7,804
Note: The decline in aggregate number of hours for Japan is because training for new recruits was shortened from the usual one month to one week due to the impact of the
Great East Japan Earthquake.
Ratio of employees by region
total
Japan
EMEA
Americas
AEJ
Number of employees
total
Japan
EMEA
Americas
AEJ
Number of new hires
total
Japan
EMEA
Americas
AEJ
2010
100
55
16
9
20
2010
(%)
2011
100
56
15
9
20
2011
No. of
employees
Ratio of male
employees (%)
Ratio of female
employees (%)
No. of
employees
Ratio of male
employees (%)
Ratio of female
employees (%)
26,871
14,918
4,353
2,348
5,252
62
56
70
74
68
2010
3,634
990
754
638
1,252
38
44
30
26
32
27,168
15,145
4,014
2,420
5,589
38
44
30
26
34
62
56
70
74
66
2011
3,280
989
663
478
1,150
NOMURA Report 2012
Data Section
Key Facts related to CSR
Composition by employment contract (Japan)
Full-time regular employment
Part-time regular employment
Composition of managers (Managing Director)
total
Japan (Nomura Securities, Nomura Holdings)
EMEA
Americas
AEJ
Composition of managers (Executive Director/Vice President)
2010
14,918
788
2010
(No. of employees)
2011
15,145
766
2011
Men
Women
Ratio of
women (%)
Men
Women
Ratio of
women (%)
953
322
338
157
136
58
7
19
11
21
6
2
5
7
13
1,138
385
366
216
171
66
7
20
16
23
5
2
5
7
12
2010
2011
Men
Women
Ratio of
women (%)
Men
Women
Ratio of
women (%)
total
Japan (Nomura Securities, Nomura Holdings)
EMEA
Americas
AEJ
5,690
3,152
1,215
629
694
Use of childcare and family nursing care support plans (Nomura Securities)
Pre- and post-natal leave
Childcare leave
Leave to care for sick or injured children
Childcare time
Assistance with daycare expenses
Family nursing care leave
Reduced working hour plan for family nursing care
Paid leave for family nursing care
840
166
298
148
228
2010
233
338
435
104
332
13
0
30
13
5
20
19
25
6,058
3,238
1,327
844
649
14
6
19
21
28
(No. of employees)
978
198
305
227
248
2011
237
367
478
148
365
6
0
33
Post-childcare leave reinstatement and retention rates (Nomura Securities)
(%)
Reinstatement rate
Retention rate
Human rights training (Nomura Securities)
Human rights training
Status of other personnel and labor-related issues
2010
Women
96
95
Men
100
100
2011
Women
99
98
Men
100
100
2010
No. of
sessions
No. of
participants
32
13,827
2011
No. of
sessions
20
No. of
participants
9,823
Employee turnover rate (Japan)
Number of seniors (aged 60 years and over)
rehired (Japan)
Percentage of employees with disabilities
(Nomura Securities)
Average number of annual paid leave days used
(Nomura Securities)
Percentage of employees with labor union
memberships (Nomura Securities)
Average annual salary
(Nomura Securities)
Unit
%
No. of employees
%
days
%
2010
5
713
1.86
9.7
53.8
Thousands of yen
10,869
2011
6
763
2.00
9.9
52.8
10,660
NOMURA Report 2012
Chapter III
Our Environment
Environmental performance
CO2 emissions*1
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Unit
tons-CO2
tons-CO2
tons-CO2
tons-CO2
CO2 emissions per employee
Nomura Group companies in Japan
tons-CO2/FTE
Main EMEA offices
Main AEJ offices
Main American offices
tons-CO2/FTE
tons-CO2/FTE
tons-CO2/FTE
Electricity consumption
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Gas consumption
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Purchased amount of Green Power*2
CO2 emissions from employee travel*3 Nomura Group companies in Japan
Main EMEA offices
AEJ
Americas
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
tons-CO2
tons-CO2
tons-CO2
tons-CO2
Water consumption*4
Nomura Group companies in Japan
thousand m3
Main EMEA offices
Main AEJ offices
Main American offices
thousand m3
thousand m3
thousand m3
Copy paper consumption*5
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Amount of waste generated*6
Waste recycling ratio*6
Green purchasing ratio*7
ton
ton
ton
ton
%
%
2009
48,402
13,620
-
-
3.2
4.1
-
-
89,966
26,261
-
-
14,019
1,801
-
-
5,900
10,952
-
-
-
197
47
-
-
730
-
-
701
91.6
74.9
2010
44,626
25,850
16,917
-
3.0
5.9
1.8
-
89,674
51,196
17,813
-
13,406
6,783
176
-
5,900
12,407
-
2,595
-
204
101
36
-
726
-
-
681
91.3
74.3
2011
36,579
24,358
23,857
8,253
2.4
7.4
5.1
4.1
74,632
49,274
27,438
13,439
11,859
6,745
132
0
7,424
11,873
9,446
11,883
6,060
188
136
33
4
701
90
134
629
89.3
77.1
*1 Calculated using the emissions factor applied under the Act on Promotion of Global Warming Countermeasures for the Nomura Group in Japan, from the Greenhouse Gas Protocol (the
World Resources Institute and the World Business Council for Sustainable Development) for main EMEA and AEJ offices, and under the US EPA, eGRID2012 Version 1.0 (created April
2012) for main American offices. In fiscal 2010, calculated totals for our main AEJ offices only included India. From fiscal 2011, however, these totals also include our Hong Kong and
Singapore offices.
*2 In fiscal 2010, data applied only to the Nomura Group in Japan. From fiscal 2011, however, our Frankfurt and Zurich offices are included in the totals.
*3 Data compiled on domestic and international flights and long-distance railway transportation tickets purchased through designated firms. Totals for our main AEJ offices only included
India in fiscal 2010, but from fiscal 2011 include all of our AEJ offices. Data for regular automobile usage by the Nomura Group in Japan and by our India office, out of our main AEJ offices,
is also included in the tally.
*4 Totals for our main EMEA offices only included the London office in fiscal 2010, but from fiscal 2011 include the Paris, Frankfurt, and Zurich offices as well.
*5 Data compiled on items purchased through designated suppliers at Nomura Securities, out of the Nomura Group in Japan. Data compiled from fiscal 2011 only includes the London
office, out of our main EMEA offices, and the India office, out of our main AEJ offices.
*6 Data compiled on the Nomura Securities Nihonbashi head office. From fiscal 2011, data for the Nomura Securities Nagoya branch is also included.
*7 Data compiled on items purchased through the supplies request system at Nomura Securities.
Main EMEA offices are located in London, Paris, Frankfurt, and Zurich.
Main AEJ offices are located in Hong Kong, Singapore, and India.
Main American offices are located in New York.
NOMURA Report 2012
Data Section
Independent Assurance on Environmental Reporting
External Assessment related to CSR
The China Charity Awards
Nomura has been named one of the
Corporate Winners of the China
Charity Awards.
Carbon Trust Standard
Awarded to Nomura International plc (U.K.)
in recognition of measuring, managing
and reducing its carbon emissions.
Clean City Award
Received a platinum City of London
Clean City Award for environmental
conservation activities in the city.
NOMURA Report 2012
Board of Directors
Board of Directors
Nobuyuki Koga
Haruo Tsuji*
(As of August 1, 2012)
Chairman of the Board of Directors
Chairman of the Nomination Committee, Chairman of the Compensation Committee
Corporate Advisor of Sharp Corporation
Chairman of the Audit Committee
Masahiro Sakane*
Director and Chairman of Komatsu Ltd.
Member of the Nomination Committee, Member of the Compensation Committee
Tsuguoki Fujinuma*
Advisor of The Japanese Institute of Certified Public Accountants
Member of the Audit Committee
Dame Clara Furse*
Former Chief Executive of London Stock Exchange Group
Takao Kusakari*
Corporate Advisor of Nippon Yusen Kabushiki Kaisha
Toshinori Kanemoto*
Of-Counsel, City-Yuwa Partners
Former President of ICPO INTERPOL
Member of the Nomination Committee, Member of the Compensation Committee
Michael Lim Choo San*
Former Executive Chairman of PricewaterhouseCoopers, Singapore
Masanori Itatani
Audit Mission Director
Masanori Nishimatsu
David Benson
* Outside Directors
NOMURA Report 2012 0
Data Section
Executive Management Structure
Executive Management Structure
(As of September 30, 2012)
Group CEO
Group COO; Wholesale CEO
Retail
Retail CEO
Asset Management
Asset Management CEO
Wholesale
Group COO; Wholesale CEO
Wholesale Division
Fixed Income
Global Head of Fixed Income
Equities
Joint Global Head of Equities
Joint Global Head of Equities
Investment Banking
Head of Investment Banking
Research
Global Research
Chief Financial Officer
Co-Deputy CFO
Chief Risk Officer
Deputy Chief Risk Officer
Co-Group CAO (Co-CIO, Global Operations)
Wholesale Co-CIO
Group Compliance
Chief Legal Officer and Secretariat
Corporate Office
Co-Group CAO (Co-CIO, Global Operations)
Corporate Office (Group Strategy)
Corporate, Others
Koji Nagai
Atsushi Yoshikawa
Toshio Morita
Toshihiro Iwasaki
Atsushi Yoshikawa
Hiromasa Yamazaki
Steven Ashley
Naoki Matsuba
Benoit Savoret
Kentaro Okuda
Hideyuki Takahashi
Junko Nakagawa
Shigeki Fujitani
Lewis O’Donald
Yuji Nakata
Paul Spanswick
Naohiro Sako
Hisato Miyashita
Noriaki Nagai
Hiroyuki Suzuki
Chie Toriumi
Corporate Office (Regional Management Support, Government
Affairs and Risk Advisory Group)
Shigesuke Kashiwagi
Group Corporate Communications
Global Human Resources
Internal Audit
Group Internal Audit
Americas
EMEA
Regional CEO, Americas
Regional Co-CEO, Americas
Regional CEO, EMEA
Regional COO, EMEA
Regional CEO, Asia ex-Japan
Eiji Miura
Akihito Watanabe
Masaru Konno
David Findlay
Toshiya Hasegawa
John Phizackerley
Yasuo Kashiwagi
Minoru Shinohara
AEJ
Corporate Office (Head of China Committee)
Noriyasu Yoshizawa
Wealth Management, Asia
Koki Miura
NOMURA Report 2012
nomura Securities Domestic network
(As of August 1, 2012)
Hokuriku (4 Branches)
Fukui Branch
Kanazawa Branch
Niigata Branch
Toyama Branch
Kinki (30 Branches)
Akashi Branch
Daito Branch
Esaka Office
Gakuenmae Branch
Higashiosaka
Branch
Himeji Branch
Hirakata Branch
Ibaraki Branch
Kawanishi Branch
Kishiwada Branch
Kobe Branch
Kurakuen Branch
Kyoto Branch
Kyoto Branch, Kyoto
Station Building,
the Cube Office
Nanba Branch
Nara Branch
Nishinomiya Branch
Okamoto Branch
Osaka Branch
Otsu Branch
Sakai Branch
Senri Branch
Takarazuka Branch
Takatsuki Branch
Tennoji Branch
Toyonaka Branch
Tsukaguchi Branch
Uehonmachi Branch
Umeda Branch
Wakayama Branch
Shikoku (5 Branches)
Imabari Office
Kochi Branch
Matsuyama Branch
Takamatsu Branch
Tokushima Branch
Chugoku (9 Branches)
Fukuyama Branch
Hiroshima Branch
Kurashiki Branch
Matsue Branch
Okayama Branch
Shimonoseki Branch
Tokuyama Branch
Tottori Office
Yonago Branch
Kyushu (11 Branches)
Fukuoka Branch
Fukuoka Branch,
Amu Plaza Hakata
Office
Kagoshima Branch
Kitakyushu Branch
Kumamoto Branch
Kurume Branch
Miyazaki Branch
Nagasaki Branch
Oita Branch
Saga Branch
Sasebo Branch
Okinawa (1 Branch)
Naha Branch
Hokkaido (5 Branches)
Asahikawa Branch
Hakodate Branch
Kushiro Branch
Sapporo Branch
Tokachi/Obihiro Office
tohoku (10 Branches)
Akita Branch
Aomori Branch
Fukushima Branch
Hachinohe Branch
Iwaki Office
Koriyama Branch
Morioka Branch
Sendai Branch
Shonai Office
Yamagata Branch
tokyo metropolitan area (41 Branches)
Chofu Branch
Denenchofu Branch
Fuchu Branch
Gotanda Branch
Hachioji Branch
Hamadayama Office
Hatagaya Branch
Head Office
Iidabashi Branch
Ikebukuro Branch
Ikebukuro Metropolitan
Plaza Branch
Jiyugaoka Branch
Kamata Branch
Kanda Branch
Kichijoji Branch
Kinshicho Branch
Koishikawa Branch
Koiwa Branch
Kokubunji Branch
Machida Branch
Mita Branch
Nakameguro Branch
Kanto (43 Branches)
Aeon Mall Funabashi Office
Aobadai Branch
Atsugi Branch
Chiba Branch
Fujisawa Branch
Funabashi Branch
Futamatagawa Office
Hiratsuka Branch
Ichikawa Branch
Kamakura Branch
Kamiooka Branch
Kashiwa Branch
Kawagoe Branch
Kawaguchi Branch
Kawasaki Branch
Kofu Branch
Konandai Office
Koshigaya Branch
Kumagaya Branch
Matsudo Branch
Mito Branch
Musashikosugi Branch
Odawara Branch
Chubu (16 Branches)
Gifu Branch
Hamamatsu Branch
Kanayama Branch
Kariya Branch
Kasugai Branch
Matsumoto Branch
Nagano Branch
Nagoya Branch
Nakano Branch
Nerima Branch
Ogikubo Branch
Omori Branch
Sakurashinmachi Office
Sangenjaya Office
Seijo Branch
Senju Branch
Shibuya Branch
Shinbashi Branch
Shinjuku Branch
Shinjuku Nomura Building
Branch
Shinjuku-eki Nishiguchi
Branch
Tachikawa Branch
Tamagawa Branch
Tanashi Branch
Tokyo Branch
Toranomon Branch
Ueno Branch
Omiya Nishiguchi Branch
Ota Branch
Sagamihara Branch
Saitama Branch
Saitama Branch,
Omiya Higashiguchi Office
Shiki Branch
Shinyurigaoka Branch
Takasaki Branch
Tama Plaza Branch
Tokorozawa Branch
Totsuka Branch
Tsuchiura Branch
Tsukuba Branch
Tsurumi Branch
Urawa Branch
Utsunomiya Branch
Yachiyodai Office
Yokohama
Bashamichi Branch
Yokohama Branch
Yokosuka Branch
Nagoya-ekimae Branch
Numazu Branch
Okazaki Branch
Shizuoka Branch
Toyohashi Branch
Toyota Branch
Tsu Branch
Yokkaichi Branch
NOMURA Report 2012
Data Section
Corporate Data
Corporate data
Company name Nomura Holdings, Inc.
Paid-in capital
¥594.5 billion (As of March 31, 2012)
Head office
1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-
8645, Japan
Group employees 34,395 (As of March 31, 2012)
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
80
60
40
20
0
Individuals and
Others
Foreign Legal
Entities
Other Legal Entities
Financial Institutions
3/2008
3/2009
3/2010
3/2011
3/2012
President & CEO Koji Nagai
December 25, 1925
Investment and financial services
Date of
incorporation
Business
description
Share data
Common stock issued
3,822,562,601 shares (As of March 31, 2012)
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, 2012)
Securities code
8604 (Tokyo Stock Exchange)
NMR (New York Stock Exchange)
number of shareholders
477,052 (Unit shareholders: 454,025) (As of March 31, 2012)
Major shareholders (top 10)
Names of shareholders
Shares held
(Thousand
shares)
Percentage
of issued
shares (%)
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
SSBT OD05 Omnibus Account Treaty Clients
State Street Bank and Trust Company
The Chase Manhattan Bank ,N.A. London S.L.Omnibus
Account
Japan Trustee Services Bank, Ltd. (Trust Account 9)
Japan Trustee Services Bank, Ltd. (Trust Account 4)
State Street Bank - West Pension Fund Clients - Exempt
Japan Trustee Services Bank, Ltd. (Trust Account 1)
Nomura Group Employee’s Stock Ownership Association
187,713
135,436
93,365
50,926
47,713
37,090
34,577
33,413
33,268
33,115
4.91
3.54
2.44
1.33
1.25
0.97
0.90
0.87
0.87
0.87
Note: The Company has 155,753 thousand shares of treasury stock as of March 31, 2012 which
is not included in the major shareholders list above.
Date of record for
dividend payments
Second quarter
Year-end
September 30
March 31
Dividend payment date
December 1
June 1
Other
Credit rating
Standard & Poor’s
Moody’s Investors Service
R&I
JCR
Note: As of June 30, 2012
NOMURA Report 2012
Nomura Holdings
Nomura Securities
Long-term
Short-term
Long-term
Short-term
BBB+
Baa3
A+
AA–
A-2
—
a-1
—
A–
Baa2
A+
AA–
A-2
P-2
a-1
—
Website Information
Nomura Holdings Website
http://www.nomura.com/
Corporate Citizenship Site
Investor Relations Site
http://www.nomuraholdings.com/csr/
http://www.nomuraholdings.com/investor/
Delivers information on the Nomura Group’s
CSR initiatives in a timely manner and contains
detailed dialog held with stakeholders.
Provides various investor relations information
for the Nomura Group, including earnings
presentations, financial data, annual reports,
notices for shareholders and information per-
taining to corporate governance.
Inquiries
nomura Holdings, Inc.
Investor Relations
Corporate Citizenship
Department
Urbannet Otemachi Building
2-2-2, Otemachi, Chiyoda-ku, Tokyo 100-8130, Japan
Tel. +81 (3) 5255-1000
Otemachi Nomura Building
2-1-1, Otemachi, Chiyoda-ku, Tokyo 100-8170, Japan
Tel. +81 (3) 5255-1000
e-mail: csr@jp.nomura.com
NOMURA Report 2012
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Nomura Holdings, Inc.
NOMURA Report 2012
This report was produced using FSC certified paper and vegetable oil-based
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All electricity to print this
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