Corporate Profile
Nomura is a leading financial services group and the
External Recognition
preeminent Asia-based investment bank with a worldwide
reach. Our Retail, Asset Management and Wholesale
divisions provide a broad range of innovative, value-added
solutions tailored to the specific requirements of individual,
institutional, corporate and government clients through an
Nomura’s CSR initiatives and information disclosure
practices have been widely recognized outside the
company. Nomura Holdings has been selected for
inclusion in the Dow Jones Sustainability Indexes and the
FTSE4Good Index, both socially responsible investment
(SRI) indexes. Nomura was also selected as the only
international network in over 30 countries around the world.
financial services company recognized in the Japan
500 CDLI.
Returning to Our Roots
For over 80 years, we have
continued to uphold our
founder’s principles. One of
these principles, “putting
the customer first,” evolved
into “prospering with our
clients” and is now defined
by our commitment
to
“place clients at the heart of
everything we do.” Although the words may change,
over unwavering focus on our clients remains the same.
Involvement in External ESG Initiatives
• UN PRI (Principles for Responsible Investment)
• Principles for Financial Action towards a Sustainable
Society (Principles for Financial Action for the 21st Century)
• Multistakeholder Forum on Social Responsibility for a
Sustainable Future
• Banking Environment Initiative
Editorial Policy
In FY2011/12, we began publishing the Nomura Report, an
integrated version of our annual report and our citizenship
report, which detailed our CSR initiatives. We hope that this
new integrated report helps readers gain a broader
understanding of our activities to support sustainable
development and grow together with our stakeholders as
Asia’s global investment bank.
Report Period
April 1, 2012 to March 31, 2013
(Some content may be outside this timeframe)
Previous Report September 2012
Next Report
August 2014
Entities Covered
Nomura Holdings, Inc. and its major subsidiaries and affiliates.
(http://www.nomuraholdings.com/company/group/)
Numerical data are presented alongside information on the
scope of companies covered.
Reference Guidelines
• 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/gri/
• Environmental Reporting Guidelines (2012 Version) of
Japan’s Ministry of the Environment
• Charter of Corporate Behavior of Keidanren
1
Nomura Report 2013
C o n t e n t s
Financial Highlights
Message from the Group CEO
Placing clients at the heart of everything we do as Asia’s global
investment bank
Interview with the CEO and COO
Leveraging our unique network to provide
high value-added services
Message from the CFO
Reallocating resources in line with the changing environment to build
on our strengths as a global financial services group
At a Glance
Retail
Asset Management
Wholesale
Global Research
Business for Sustainability
Column
Collaborating across Regions and Divisions for Our Clients and Society
Rebuilding Trust
Corporate Governance
Compliance
Risk Management
CSR Management
Our Community
Our People
Our Environment
Data Section
Forward-Looking Statements
This
forward-looking
report contains
statements about the future plans, strategies,
beliefs, and performance of the Company.
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.
Five-Year Financial Summary
CSR Key Facts
Independent Assurance on Environmental Reporting
Global Network
Nomura Securities Domestic Network
Corporate Data
Website Information
3
5
7
11
13
15
19
23
29
31
33
35
37
43
45
47
49
51
53
55
57
62
63
64
65
66
Nomura Report 2013 2
Financial Highlights (US GAAP)
For the fiscal years beginning April 1 and ending March 31 of the following year
MAJOR FINANCIAL DATA
Net revenue
Income (loss) before income taxes
Net income (loss)*1,3
Total assets
Shareholders’ equity*2,3
Short-term unsecured debt
Long-term unsecured debt
Total risk-weighted assets*4
PER SHARE DATA
Net income (loss)—diluted
Shareholders’ equity
Cash dividends
MAJOR MANAGEMENT INDICATORS
ROE
Gross leverage (times)
Net leverage (times)*5
Consolidated capital adequacy ratio*4
Tier 1 ratio*4
*1 Net income (loss) attributable to Nomura Holdings, Inc. shareholders
*2 Total Nomura Holdings, Inc. shareholders’ equity
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
312.6
(780.3)
(708.2)
1,150.8
1,130.7
1,535.9
1,813.6
105.2
67.8
93.3
28.7
85.0
11.6
237.7
107.2
Billions of yen
24,837.8
32,230.4
36,693.0
35,697.3
37,942.4
1,539.4
2,126.9
2,082.8
2,107.2
2,294.4
1,932.4
4,646.4
2,153.5
6,024.6
2,634.3
6,466.9
3,009.1
6,373.0
2,293.3
6,457.3
11,935.9
11,525.7
11,629.5
14,681.0
17,546.7
(366.16)
590.99
25.5
21.59
579.70
8.0
7.86
578.40
8.0
3.14
575.20
6.0
-
16.1
10.7
18.9
11.7
3.7
15.2
9.3
24.3
17.3
1.4
17.6
10.3
22.2
16.4
0.6
16.9
10.4
16.5
14.2
Yen
28.37
618.27
8.0
%
4.9
16.5
10.4
13.9
11.9
*3 On April 1, 2009, we adopted new guidance for the accounting and reporting for noncontrolling interests. In the above table, this guidance has been retrospectively applied to the amounts
as of and for the years ended March 31, 2009.
*4 FY2008/09 - FY2010/11 based on Basel 2; FY2011/12 based on Basel 2.5; FY2012/13 based on Basel 3.
*5 Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity.
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
25,626
15,320
4,294
1,079
4,933
26,374
15,053
4,369
1,781
5,171
26,871
14,918
4,353
2,348
5,252
34,395
21,609
4,014
2,420
6,352
People
27,956
16,030
3,618
2,271
6,037
NUMBER OF EMPLOYEES
Total
Japan
Europe
Americas
Asia-Pacific
3
Nomura Report 2013
Net revenue
(Billions of yen)
2,000
Segment income (loss) before income taxes
(Billions of yen)
400
1,500
1,000
500
0
-500
Other
Wholesale
Asset
Management
Retail
200
0
-200
-800
Other
Wholesale
Asset
Management
Retail
2008/09 2009/10 2010/11 2011/12 2012/13
(Fiscal year)
2008/09 2009/10 2010/11 2011/12 2012/13
(Fiscal year)
Total assets
(Trillions of yen)
40
Unsecured debt
(Billions of yen)
10,000
Total risk-weighted assets and Tier 1 ratio*4
(Billions of yen)
(%)
20,000
20
Tier 1 ratio
30
20
10
0
8,000
6,000
4,000
2,000
0
Short-term
unsecured
debt
Long-term
unsecured
debt
16,000
12,000
8,000
4,000
0
2008/09
2009/10
2010/11
2011/12
2012/13
(Fiscal year)
2008/09 2009/10 2010/11 2011/12 2012/13
(Fiscal year)
2008/09 2009/10 2010/11
2011/12
2012/13
16
12
8
4
Total risk-
weighted
assets
0
(Fiscal year)
Number of employees by region
Europe
3,618
Asia-Pacific
6,037
Japan
16,030
Americas
2,271
Nomura Report 2013 4
Message from the Group CEO
Placing clients at the heart of everything we do as
Asia’s global investment bank
Nomura has been a client-focused organization since our earliest days. By placing
clients at the heart of everything we do, we are able to deliver high value-added
products and services that meet the needs of our clients and local communities,
thereby contributing to social development and economic growth.
Supporting Japan’s Future
Our home market of Japan is on the verge of significant change. Since the new
government came to power last year, we have seen early signs of an economic
recovery. To build on this momentum, we need to look hard at what the country
requires and how we can contribute.
5
Nomura Report 2013
Given that Japan is the world’s largest creditor nation and has the world’s
fastest aging population, one area that requires attention is the creation of a new
social framework. At the same time, we need to revise the structure of our financial
system. For Japan to grow sustainably into the future, the capital markets will have
to play a more prominent role. Indeed, Japan’s approximately ¥1,500 trillion in
personal financial assets holds the key to the country’s future growth. Nomura aims
to support this growth by facilitating the flow of funds throughout the economy.
Connecting Markets East & West
Asia is expected to account for half of the world’s GDP by 2050 and will no doubt
remain the growth engine of the global economy over the coming years. However,
for the region to realize its full potential, Asian countries must finance the large-scale
infrastructure projects required to underpin economic growth. Japan can play a
leading role here, growing together with the rest of Asia by putting its financial
assets to work across the region. With Asia as our home market, this is an area
in which Nomura has a distinct competitive advantage.
As economies around the world mature and become increasingly global,
companies and investors in the West are looking east for growth opportunities. As
the only Japanese financial institution with a truly global network, Nomura is well
placed to connect markets in the East and the West by leveraging our franchise
to provide liquidity in the world’s capital markets. By meeting the needs of our
global client base and expanding our business, we can contribute to economic
growth and social development.
In doing so, we aim to win the trust of our clients and society as we work
towards being Asia’s global investment bank.
Koji Nagai
Group CEO
Nomura Report 2013 6
Interview with the CEO and COO
Leveraging our unique network to provide
high value-added services
Koji Nagai Group CEO
Atsushi Yoshikawa President and Group COO
Q1
How were the operating environment and the firm’s
performance in FY2012/13?
Nagai: We reported a significant gain in revenues and income during the year
ended March 2013. Net revenue increased 18% year on year to ¥1,813.6 billion,
pretax income jumped 180% to ¥237.7 billion, and net income grew by 9.3 times
to ¥107.2 billion. At both the pretax and net income levels we had our best year
since the year ended March 2007, positioning us well as we work towards
achieving our target of earnings per share of ¥50 by March 2016.
While our performance partly reflects the benefits gained from the market
rally in Japan on the back of Abenomics, we are also starting to see results flow
through from the initiatives we took last year. Specifically, Retail continued to
develop its consulting based sales approach and Wholesale reduced costs in
order to improve profitability.
Yoshikawa: Last summer, one of the biggest challenges we faced was to return
our international Wholesale operations to profit. To address this, we have been
rebuilding our business and we saw a huge improvement in performance.
Wholesale reported pretax income of ¥71.7 billion in FY2012/13 versus a pretax
loss of ¥37.7 billion in the previous year.
7
Nomura Report 2013
We are working to lower our breakeven point. Last September, we
announced a $1 billion cost reduction program, which was 78% complete as of
the end of March 2013 with one year to go until the target completion date. As
part of this program, the migration of our Execution Services businesses in
EMEA, the Americas, and Asia ex-Japan to Instinet is progressing as scheduled.
In addition, we have right-sized our international operations, particularly in
EMEA, and reduced risk weighted assets in light of Basel 3 and other regulatory
reforms.
Q2
What is your vision for future growth?
Nagai: We boast an extensive client franchise in Japan, a country known for its
deep pool of financial assets. We have also built up a solid retail channel across
Japan. Our business model combines our strengths by integrating the
management of our Retail and Wholesale businesses. We are independent firm.
And we are headquartered in Asia, the world’s fastest growing region. These
attributes are our unique strategic strengths.
We believe that the regulatory reforms faced by global financial institutions
could prove to be relatively positive for Nomura. We expect to see European
financial institutions refocus on their home markets and indeed this trend is
already starting to take hold. This presents us with business opportunities that we
aim to capture with a focus on our core businesses. As the only Japanese financial
institution with a truly global platform, we are leveraging our deep product
expertise and extensive network to deliver high value-added financial services to
our clients as Asia’s global investment bank.
Q3
How does your international strategy fit in with your vision for
the firm?
Yoshikawa: We have shifted from a global full coverage, full service structure to
a more sharpened strategy. We now focus on businesses where we can leverage
our strengths to add value for our clients.
We don’t expect to monetize our Asian business immediately. That said, we
are prioritizing market share growth in the region by positioning Asia including
Japan as our home market and pursuing cross-border opportunities between the
East and West. We are working to improve profitability in EMEA by realigning our
Nomura Report 2013 8
Interview with the CEO and COO
9
Nomura Report 2013
business to reflect the operating environment. In the US, which has the world’s
largest fee pool, we are investing selectively in areas such as Fixed Income sales,
while focusing on businesses where we have a competitive advantage, such as
Securitized Products and Credit.
As Mr. Nagai mentioned, some of our competitors are scaling back their
operations and returning to their home markets in the wake of the European
debt crisis. This is opening up room for us to expand our Fixed Income and
cross-border businesses.
Q4
What steps have you taken to rebuild the firm from the
ground up?
Nagai: We first looked at what had to change and what should remain the same.
We then communicated that to our people. We realized that we shouldn’t change
our corporate philosophy or the principles of conduct that underpin the way
Nomura people work. However, based on our underlying philosophy of placing
our clients at the center of everything we do, we felt that we should reaffirm with
everyone the importance of being client focused, an attribute that has defined
Nomura since our earliest days.
On the other hand, we recognized the need to change the mindset of
individuals in the firm. In relation to the insider trading incidents last year, we were
criticized for allowing a culture to develop in which people thought they could do
anything as long as they stayed within the letter of the law. In other words, people
didn’t take the time to consider the spirit or purpose of the applicable laws and
regulations. This highlighted the need to make sure each person in the firm thinks
long and hard about all the consequences of their actions before making
decisions. In addition to such reforms, the efforts of each division have allowed us
to capture the benefits of the market rally in Japan and deliver solid financial
results by living up to the trust placed in us by our clients.
Q5
How are you revamping the organization and HR systems
in order to improve client satisfaction?
Nagai: Our clients’ needs are extremely diverse, yet closely linked. In spite of this,
when looking for solutions for their clients, our people only turned to their own
business line. As such, I felt we weren’t fully leveraging our competitive strengths.
And this held us back from improving client satisfaction levels.
Our people come from diverse backgrounds in terms of their work
experience, gender, and nationality. It is important that we make the most of this
diversity to ensure we place our clients at the center of everything we do.
Therefore, we revised our HR systems recently to make it easier for people to
move across divisions. By creating an environment where people can share their
diverse skills, experience, and knowledge, we can create new value which will
ultimately enhance client satisfaction.
Yoshikawa: Earlier this year our Retail business announced the results of a client
satisfaction survey. Wholesale is also working to ensure our clients turn to Nomura as
a trusted partner. We remain focused on improving our league table standings, market
share, and financial performance, all of which are evidence of client satisfaction.
Q6
How is Nomura contributing to sustainable development?
Nagai: Our business can’t grow without strong local economies in the communities
in which we operate. It is very important for us to help energize local economies. In
Japan, we put our financial expertise to work to support new agricultural businesses
and environmental and energy-related businesses. We also work closely with
industry and academia to encourage the development of new industries.
From a long-term perspective, we play an important role in using the capital
markets to finance the development of social infrastructure in Asia and other
emerging markets. Asia is expected to account for more than half of the
world’s GDP by 2050. But that will require $8 trillion in infrastructure investment.
To raise this money, Asia will have to further develop its primary and secondary
capital markets.
We have a long history of providing financial education programs aimed at
creating sound capital markets by educating future generations. Since 1995, our
branch managers and other employees have lectured at over 100 universities across
Japan. We also conduct classes for elementary and junior high school students and
we are a long-standing sponsor of the Nikkei Stock League Contest, which
encourages students from junior high through to university to learn about investing.
These activities allow us to use our expertise to contribute to sustainable
growth. We aim to grow together with local communities in order to meet the
expectations of all our stakeholders.
Nomura Report 2013 10
Message from the CFO
Reallocating resources in line with the changing environment to
build on our strengths as a global financial services group
For the past few years, financial institutions have faced a rapidly changing
environment. Nomura moved swiftly to adapt to these changes by further
enhancing our financial position and reducing our cost base.
As CFO, I see my job as consisting of two main roles. First, to allocate the
firm’s resources in a way that allows us to best meet regulatory requirements and
adapt to the changing market environment. Second, improve communication
with shareholders, counterparties, ratings agencies, regulatory authorities, ESG*
research organizations, and other stakeholders in order to disclose accurate and
timely information about the current status of the firm.
We expect the shift to tighter regulation to continue in the future. However,
given that we will be relatively less affected by the reforms than our competitors, we
believe this trend will present new opportunities for Nomura. Accordingly, we will
continue to solidify our position to ensure sustainable profits under any environment.
* Environmental, social, and governance.
Robust Financial Position
At the end of March 2013, when Japan became one of the first countries to
implement Basel 3, Nomura reported total assets of ¥37.9 trillion, shareholders’
equity of ¥2.3 trillion, and gross leverage of 16.5 times. Ahead of the introduction
of the new regulations, we reallocated resources by selling our stake in Annington,
a private equity investee company, in December 2012 and deconsolidating
Nomura Real Estate Holdings in March 2013. As a result, our Tier 1 common ratio
under Basel 3 was 11.9% at the end of March 2013. Based on a forward simulation
using our March 2013 year-end balance sheet, our fully loaded 2019 Tier 1
common ratio is approximately 10%, which places us among the industry leaders.
We also held a high quality liquidity portfolio surplus of ¥5.9 trillion as of the
end of March 2013. This allows us to continue operating for one year without the
need for additional unsecured funding or asset sales even under stressed market
conditions. In addition, the liability side of our balance sheet is dominated by
long-term debt, and we have diversified our sources of funding across currencies.
This robust financial position is a competitive advantage that directly benefits
our clients by allowing us to deliver the best products and services tailored to their
specific requirements.
Shigesuke Kashiwagi
Chief Financial Officer
11
Nomura Report 2013
Adapting to the Changing Environment
The global fee pool in our industry has been shrinking since the start of the
European debt crisis. Coupled with this, financial institutions have been forced
to rethink their strategies due to the shift to tighter regulations.
To reposition Nomura for this new environment, we have revised our cost
base, which was set for the much larger fee pool environment of 2009, and we
have been working on a $2 billion cost reduction program since July 2011
aimed at lowering the breakeven point of our Wholesale business. Of this $2
billion, the $1 billion cost reductions announced in September 2012 were 78%
complete as of the end of March 2013, with personnel expense reductions
running ahead of schedule. Despite the recently improved revenue environment,
we remain focused on completing the cost reductions by March 2014. By
enhancing the profitability of our international Wholesale operations, we aim to
achieve our management target of earnings per share of ¥50 by the year
ending March 2016.
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 full-year consolidated payout ratio of 30% as a key indicator.
In determining dividend payments, we take into account a comprehensive
range of factors including our consolidated financial performance and global
regulatory reforms such as the new Basel regulations. Based on this policy, we
paid an annual dividend of ¥8 per share in FY2012/13.
In addition, we seek to efficiently invest retained earnings in business
areas with prospects of high profitability and growth, while also taking into
account the regulatory environment, in order to increase shareholder value.
Since the Abe administration came to office in December 2012, the world
has started to look on Japan in a new light and expectations are rising over the
country’s future. As the dominant player in Japan’s financial and capital
markets, Nomura is well placed to connect markets in the East and the West,
further stimulating Japan’s economy.
To remain a trusted partner for our global clients, we will leverage our
access to Japan’s deep pool of funds and our geographic advantage in the
world’s growth region of Asia.
Nomura Report 2013 12
At a Glance
13
Nomura Report 2013
Retail
Nomura’s Retail business in Japan delivers a wide array of financial services to individual and
corporate clients through a nationwide network of 177 branch offices (as of March 31, 2013),
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.15
Asset Management
Asset Management operates as a global business with ¥27.9 trillion of assets under
management from both retail and institutional investors (as of March 31, 2013).
Our investment trust business in Japan delivers a diverse range of products through
distribution channels such as securities firms including Nomura Securities, 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.19
Wholesale
This business consists of Global Markets, Investment Banking and serves a broad range of
global corporations, governments and financial institutions.
Global Markets 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: Due to a reorganization in April 2012, reported amounts for Wholesale and Other have been reclassified.
p. 23
Net revenue
FY2012/2013
¥397.9 billion
Up 13.6% year on year
Non-interest expenses
FY2012/2013
¥297.3 billion
Up 3.5% year on year
Net income before income taxes
FY2012/2013
¥100.6 billion
Up 59.4% year on year
(Billions of yen)
400
(Billions of yen)
300
(Billions of yen)
150
300
200
100
0
200
100
0
100
50
0
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
Net revenue
FY2012/2013
¥68.9 billion
Up 4.8% year on year
Non-interest expenses
FY2012/2013
¥47.8 billion
Up 5.5% year on year
Net income before income taxes
FY2012/2013
¥21.2 billion
Up 3.2% year on year
(Billions of yen)
80
(Billions of yen)
60
(Billions of yen)
30
60
40
20
0
40
20
0
20
10
0
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
Net revenue
FY2012/2013
¥644.9 billion
Up 16.2% year on year
Non-interest expenses
FY2012/2013
¥573.2 billion
Down 3.3% year on year
Net income (loss) before income taxes
FY2012/2013
¥71.7 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
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
2008/09 09/10
10/11
11/12 12/13
(Fiscal year)
Nomura Report 2013 14
Retail
The Retail Division delivers a wide range of financial products and high-quality
investment advice, constantly 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 177 branch offices (as
of March 31, 2013) and Nomura Net & Call.
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.
Toshio Morita
Retail CEO
Market Environment
The market environment remained challenging for most of FY2012/13, but the large-scale
monetary easing program initiated after the start of the new Abe administration in December
2012 resulted in a significant boost to Japanese equities and a highly positive outlook. However,
many issues remain entrenched around the world, including Japan’s fiscal woes, a dwindling
birthrate and an aging population, as well as Europe’s sovereign debt crisis and other global
geopolitical risks. This has meant that our clients face a constantly evolving landscape, with
future prospects somewhat uncertain.
Amid growing uncertainty about the increasing complexity and rapid advancements in an
information-intensive society, our clients’ interests, values and challenges continue to grow more
diverse. The same can be said about financial assets, as the answer to the question of how to
protect, use and pass on financial assets to future generations is different for each client,
Business results
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
(Billions of yen)
Net revenue
291.9
388.3
392.4
350.3
397.9
Non-interest expenses
273.6
274.9
291.2
287.1
297.3
Income before
income taxes
18.2
113.4
101.2
63.1
100.6
15
Nomura Report 2013
depending on their individual lifeplan, family members, and approach to capital preservation.
With many unsure of how best to design their portfolio, financial institutions now more than ever
need to provide services tailored to the unique needs of each client.
Over half of Japan’s personal financial assets remain in savings and deposit accounts. As
a result, the role of securities brokerages continues to be essential in ensuring a smooth flow of
funds into the economy. Moreover, through their services, securities brokerages are expected to
make contributions to the development of the economy and society.
Via branch offices, online, and call-center channels, Retail will continue to provide quality
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.
Financial Results for FY2012/13
Although the economic environment remained challenging for much of the year, the markets
have seen a strong upturn since the end of 2012. As a result, net revenue for FY2012/13 was
¥397.9 billion, non-interest expenses were ¥297.3 billion, and income before income taxes was
¥100.6 billion, up 59% compared to the previous year.
At the end of March 2013, we had 5.02 million client accounts, an increase of about
40,000 accounts since March 2012. We steadily expanded our client franchise during the year,
with net asset inflows of ¥1.355 trillion. Retail also expanded total sales by providing a range of
products suitable for individual client needs, investment strategies and risk appetites. As a result
of this expansion and the major upturn in markets, Retail client assets increased to ¥83.8 trillion
as of March 31, 2013.
Retail client assets
Accounts with balances
(Trillions of yen)
80
60
59.3
83.8
73.5
70.6
72.0
40
20
0
Other*2
Overseas
mutual
funds
Bond
investment
trusts
Stock
investment
trusts
Domestic
bonds*1
Foreign
currency
bonds
Equities
(Thousands)
5,000
4,000
3,000
0
2008/09 2009/10 2010/11
2011/12
2012/13
(Fiscal year)
2008/09 2009/10 2010/11 2011/12 2012/13
(Fiscal year)
*1 Includes CBs and warrants
*2 Includes variable annuity insurance
Nomura Report 2013 16
Enhancing Client Satisfaction
Since FY2010/11, Retail has held a monthly CS (Customer Satisfaction) Improvement Meeting
chaired by the Retail CEO and attended by Senior Managing Directors and other key stakeholders.
The meeting reviews complaints, feedback and requests made through the customer help desk,
call centers and our website, and based on these reviews, works to improve products, services
and systems.
As part of our efforts, we have established a service assistance program where specially
trained employees provide services to our elderly and disabled clients. This program was rolled
at 128 (70%) of our branch offices in March 2013, and we became the first securities brokerage
in Japan to have a team of several hundred service assistants operating in this way. Going
forward, our service assistants will ensure that we provide a more customer-centric and enhanced
level of service to our client base as it ages.
Customer Satisfaction Survey
In order to remain cognizant of customer satisfaction levels, since January 2011 we have been
conducting customer questionnaires with clients who meet our financial services specialists,
which cover our over-the-counter services such as customer service and product explanations.
These questionnaires were conducted at 126 branch offices in FY2012/13. (See page 57 for the
results for survey.)
In February 2013, we conducted a customer satisfaction survey about our sales staff.
Asset management consultants who received particularly high praise from clients were rewarded
and introduced on the Nomura Securities website.
Results of these surveys are shared with management, the head office and branch offices,
and potential improvement measures are examined by Retail to provide better overall service.
Looking Forward
In FY2013/14, Retail continues to leverage its consulting-based services to foster greater trust
among clients and to capture greater business opportunities. We aim to increase client assets,
which provide a symbol of the trust our clients place in us, while striving to expand recurring
revenues such as investment trust administration fees. This approach will enable us to build a
solid and stable earnings base. Also, we continue to expand our line-up of low-risk products to
meet the needs of our older clients who tend to prefer safer investment options.
Retail
17
Nomura Report 2013
To enhance the quality of our consulting services, we are expanding on-the-job training
programs and increasing the support provided to branch offices by the head office. Furthermore,
we strive to enhance client satisfaction by utilizing the wide range of tools at our disposal, such
as the Asset Planning Service, which conducts interviews with clients to ascertain and analyze
their current asset situation, and NOMURA i-port, which is used to centrally manage the securities
portfolios of corporate clients. Starting in August 2012, a tablet PC was distributed to each of our
sales staff to use for delivery of useful and important information to our clients in a timely manner
from locations both inside and outside branches.
Going forward, each and every one of us at Nomura is committed to delivering superior
quality service that satisfies the increasingly diverse needs of our clients, and to contributing to
local economies and society as a whole through our core business.
Nippon Individual Savings Accounts (NISA)
Japan’s equity markets are paying close attention to the start of Nippon Individual Savings
Accounts (NISA), slated for January 2014. Under this program, individuals will be able to invest
up to ¥1 million tax free each year. This represents a great opportunity to expand the horizons of
securities investing for those with no investment experience and to encourage clients who have
taken time off from investing to come back to the markets.
Retail is organizing various seminars across our domestic branch network to continue to
meet the needs of its clients looking to invest using NISA.
Expanding the Number of Products and Services for Aging Societies
Older clients need to set aside funds for living expenses later in life as well as make preparations
for leaving an inheritance for their dependants. To meet these needs, Nomura is taking steps to
enhance its product lineup by offering annuities that provide regular income, whole life insurance
for those clients thinking about their legacy, and comparatively low-risk investment trusts.
In addition to these products, we also offer a full lineup of services that meets the diverse
needs of an aging society, such as seminars on inheritance matters and “My Life Note,” a
message written by the client to their family members.
Outside the realm of finance, we are partnering with companies that provide products and
services geared toward seniors to host “Happy Life Seminars,” which have been held at our
branch offices across Japan since January 2013. This approach to satisfying an even broader
range of needs is helping us to build a stronger rapport with our clients.
Nomura Report 2013 18
Asset Management
Based in Asia, the Asset Management Division provides a range of products and
services that satisfy a broad mix of investment needs. We are striving to enhance
our asset management performance and to establish a solid presence as a firm
trusted by investors around the world.
Although FY2012/13 got off to a challenging start in the first half, we did see
fund inflows into domestic investment trusts and an increase in mandates from
foreign institutional investors. We also strove to reduce costs. In the second half,
fund inflows continued and the environment improved, leading to an increase in
assets under management. As a result, for the full year, Asset Management realized
revenues and income before income taxes that surpassed the previous year.
Market Environment
Japan’s public investment trust market grew 17.0% in FY2012/13 to ¥73 trillion. Although the
first half of FY2012/13 was marred by the re-emergence of the European sovereign debt crisis
and concerns of a worldwide economic slowdown, the market environment enjoyed an upturn
thanks to policy changes initiated by the new Japanese government administration.
Toshihiro Iwasaki
Asset Management CEO
Business results
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
(Billions of yen)
Net revenue
51.9
Non-interest expenses
47.8
Income before income
taxes
4.1
62.1
46.8
15.2
66.5
46.5
20.0
65.8
45.3
20.5
68.9
47.8
21.2
Note: Due to a reorganization in April 2011, reported amounts for Asset Management and Other have been reclassified.
19
Nomura Report 2013
* UCITS: The Undertakings for
Collective Investment in
Transferable Securities
Financial Results for FY2012/13
Our investment trust business offered a truly wide range of products, including funds aimed at
reducing risk and funds tailored to the current investment environment. As a result, we saw
investment inflows into our Premium strategy fund, which combines investments in global equities,
REIT and Japanese stocks with derivative transactions, and our other high-yield bond and
emerging market bond funds. We listed a number of new ETFs as part of the NEXT FUNDS family,
including ETFs linked to the Nikkei 225 Leveraged Index, Nikkei 225 Inverse Index and the Nomura
Japan Equity High Dividend 70. This approach enabled us to capture fund inflows for a wide range
of products throughout the year, despite the changing market conditions. Consequently, Nomura
Asset Management’s share (net asset basis) of Japan’s public investment trust market stood at
22.3% as of the end of March 2013, compared to 22.1% at the end of the previous year.
Our investment advisory business steadily increased mandates for Japanese stocks, high
yield bonds and global bonds primarily from European financial institutions and sovereign wealth
funds in Asia, which helped to steadily increase our assets under management. We also increased
net assets by providing Japanese equity funds and US high yield bond funds compliant with
Europe’s UCITS* mainly to high net worth individuals outside of Japan.
As a result, assets under management reached ¥27.9 trillion at the end of March 2013,
marking a ¥3.3 trillion increase compared to the previous fiscal year end. Asset Management
reported net revenue of ¥68.9 billion, up 5.0% year on year, and income before income taxes of
¥21.2 billion, an increase of 3.0% year on year.
Assets under management
(Trillions of yen)
30
27.9
23.4
24.7
24.6
20
10
0
2009/10
2010/11
2011/12 2012/13
(Fiscal year)
Note: Net after deduction duplications from total assets under
management of companies that belong to the Asset
Management Division
Share of public investment trust market in
Japan
(As of March 31, 2013)
Others
27.3%
#9
2.8%
#8
3.2%
#7
3.3%
#6
3.6%
Nomura
Asset Management
22.3%
#2
14.4%
#3
11.1%
#4
7.2%
#5
4.8%
Nomura Report 2013 20
Asset Management
21
Nomura Report 2013
Nomura Fund Recognized with Award
Nomura Asset Management’s investment trusts have earned a strong reputation from investment
trust rating agencies for their ability to satisfy a broad range of investment strategies. Nine of
Nomura’s funds, including the “World Water Fund Course A,” received a best funds award at the
“Lipper Fund Awards 2013 Japan” for their solid mid- to long-term performance. In addition,
Nomura funds also received Morningstar’s “Fund of the Year 2012” and “R&I Fund Award 2012.”
Responsible Investment
Nomura Asset Management is a signatory of the United Nations-backed Principles for Responsible
Investment (UN PRI) and ensures that its client-focused asset management services are
performed in accordance with the firm’s social responsibilities. To that end, we have established
the ESG Committee, which is chaired by the CIO and meets twice a year to deliberate our
approach to addressing environment, social and governance
issues. In FY2012/13, we organized in-house training
programs for asset managers in order to raise awareness
and broaden their understanding of responsible investments.
Looking Forward
Delivering Highly Competitive and Industry-Leading Performance
Asset Management is committed to leveraging its core active management capabilities to deliver
highly competitive and industry-leading performance for Japanese and Asian equities funds,
where it offers superior experience and results, Asian bonds and emerging equities funds through
its expanded investment management and research reach, and J-REITs, where it has established
a solid track record over the years.
Main awards received by Nomura Asset Management managed funds (FY2012/13)
Morningstar Fund of the Year 2012
Excellent Awarded Fund High Dividend Bond Fund Division /
Nomura Emerging Bond Open Course A
R&I Fund Award 2012 (defined benefits pension plan category)
Japanese Core Equity Fund Category / Japan Equity Advanced Alpha
Japanese Growth Equity Fund Category / Japan Equity Active Growth
We will also strive to provide a more unique range of asset management solutions, such as
the management of high yield and inflation-linked bond funds, which require advanced financial
expertise, high alpha bond funds that seek absolute returns, and Shariah-compliant asset
* Shariah-compliant asset
management services: A
method of asset management
fully compliant with Islamic
Shariah Law.
management services*, where demand is expected to grow.
Encouraging a Shift from Savings to Investing through Investment Trusts
In the investment trust business, we will deliver diverse investment opportunities that meet a
broad range of retail investor needs in order to strengthen our presence in the domestic
investment trust market. Furthermore, we will strive to grow the overall market by expanding the
scale of our existing products. We will continue to offer a toll free customer service center for retail
investors and investment trust sales staff, study sessions for distributors, and retail investor
seminars. This will help us broaden investor understanding about investment trust products and
associated risks and gain a better recognition of investor needs. In turn, this knowledge will be
utilized to further enhance our services.
We will further expand our product lineup in order to capture opportunities from the growth
of defined contribution pension plans. At the same time, we will increase investor education
programs, correct the imbalance toward more conservative products within defined contribution
plans, and make improvements to these plans to enable other products to be rolled into
investment trusts.
In advance of the Nippon Individual Savings Account (NISA) program slated to begin in
January 2014, we conducted a survey of retail investors and published the results in April 2013.
Going forward, we will continue to share easy-to-understand information to raise awareness
about NISA and promote the use of this program. We will also develop products fully compliant
with the program.
Further Expanding the Investment Advisory Business
In the investment advisory business, we will work to develop asset management policies tailored
to each client segment, country and region, and propose a strategy best suited to each client’s
investment objectives. Asset Management is in the process of expanding its lineup of products
that seek absolute returns, to complement its existing strengths in Japanese equities and Asian
equities as well as global and high yield bonds.
With Japan’s employee pension scheme undergoing changes, we will respond to a broad
range of asset management needs and fulfill our fiduciary duty to our clients. Outside of Japan,
we will continue to increase mandates from sovereign wealth funds, central banks and major
pension funds. We will also further expand the fund business in Europe and Asia by utilizing
UCITS-compliant funds.
Nomura Report 2013 22
Wholesale
The Wholesale division provides a wide range of financial products and solutions to
clients globally. It comprises Global Markets which offers structuring, sales and
trading of global securities and Investment Banking which offers capital raising and
advisory services.
We position ourselves as Asia’s Global Investment Bank. We aim to increase
profitability by focusing on the businesses where we have a competitive edge and
by providing high value-add services to our clients.
Atsushi Yoshikawa
Wholesale CEO
Market Environment and Results of FY2012/13
Net revenue for the fiscal year was ¥644.9 billion, an increase of 16% from the previous year.
Income before income taxes was ¥71.7 billion, compared to a loss of ¥37.7billion the year before,
marking a strong year-on-year turnaround.
It was a year of evolving fortunes, with overall business performance improving significantly
in the second half. This was driven by increasing client volumes in Fixed Income flow products
and a robust recovery in income from Japanese equities transactions thanks to the impact of the
“Abenomics” policy measures announced by the Japanese government and the Bank of Japan.
Fixed Income delivered a strong performance with revenues increasing 38% over the
previous year. Growth was seen across the global franchise - all international regions grew
significantly, with the Americas delivering their highest revenues since 2010, when we started the
US build out.
Business results
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
(Billions of yen)
Net revenue
(163.6)
789.5
626.1
555.0
644.9
Non-interest expenses
553.7
614.3
622.0
592.7
573.2
Income (loss) before
income taxes
(717.3)
175.2
4.1
(37.7)
71.7
Note: Due to a reorganization in April 2012, reported amounts for Wholesale and Other from the year ended March 2011 have been reclassified.
23
Nomura Report 2013
Equities results were broadly in line with the previous year. This was despite the disruption
through significant changes to the cost structure of the business, for example, through the migration
of our execution capabilities to Instinet and the reorganization of our equity research platform.
Investment Banking revenues improved significantly based on increased Equity issuance in
Japan in the second half of the year. In the international business we underwrote a number of
capital raising transactions for European financial institutions and were involved in a wide range
of Asia related cross-regional advisory and financing deals.
Looking Forward
While we believe that more time is needed for an economic recovery to gain traction in Europe, we
have a largely positive outlook for the economies of Japan and the United States. Meanwhile, the
economic outlook for Asia, which is expected to see strong growth over the medium to long term,
remains somewhat unclear in the short term amid uncertainties surrounding the Chinese economy.
Internationally, multinational financial services firms will continue to face an unstable
earnings environment because of macroeconomic conditions, international politics, and tighter
regulatory requirements around capital, liquidity, leverage, etc.
Our strategy for Wholesale is to act as a gatekeeper between Asia and the rest of world,
focusing on sectors and products where we have an advantage. In facilitating cross-border
commerce between Japan and the rest of Asia and between APAC and the rest of the world we
will continue to build on our position as Asia’s Global Investment Bank and achieve standalone
profitability in each region and business line.
FY2012/13 Wholesale net revenue by region
(Billions of yen)
200
150
100
50
0
137.1
121.9
189.0
196.9
AEJ
Americas
EMEA
Japan
Q1
Q2
Q3
Q4
Nomura Report 2013 24
Wholesale
25
Nomura Report 2013
Global Markets
Market Environment and Results of FY2012/13
FY2012/13 was another tumultuous year for the financial markets. It started with a selloff of risk
assets on the back of Eurozone concerns and political gridlock in the US. However, the business
environment improved in later quarters following the European Central Bank’s bond-buying
program and the Federal Reserve Bank’s QE3 program implemented in September 2012, and
further driven by a major liquidity injection by the Bank of Japan in December 2012.
Fixed income markets saw improving conditions as spreads tightened in most regions
during the second half of the year. Client transactions also increased thanks to more favorable
conditions for Credit and Securitized Products given the recovery in investor sentiment.
Our Fixed Income franchise reported market share gains across all major products and
delivered its best performance in three years, driven by steady client flows on the back of
worldwide monetary easing.
We continue to enhance our Fixed Income services to respond to the diverse needs of our
clients, spanning from institutional investors globally to retail clients in Japan. In particular, we
continue to extended our electronic and clearing offerings to allow investors to address the
evolving market structure. These efforts have been acknowledged by our clients as reflected in
higher market recognition.
Equities markets remained subdued in the first half of the year in line with low market
volumes as clients shied away from riskier assets amid the uncertain macroeconomic outlook.
However, Japan’s aggressive monetary easing policies introduced in December 2012 by the new
government and the Bank of Japan as part of “Abenomics” spurred renewed confidence in the
Japanese markets, providing fresh inflows of funds in to the market.
Awards & Rankings
Institutional Investor
All-Japan Research Team
• No.1: All-Japan Research Team
• No.1: All-Japan Sales Team
• No.1: All-Japan Trading Team
All-America Fixed Income
Research Team
• No.1: Currency/Foreign Exchange
• No.2: RMBS Strategy/Agency
All-Europe Fixed Income
Research Team
Risk Magazine
Risk Institutional Investor
Nikkei
Nikkei analyst survey
• No.2: Currency/Foreign Exchange
• No.1: All Rates Products-Yen
• No.1: Interest Rate Swaps-Yen
• No.1: Single-name Credit Default Swaps (Investment-grade and high yield) – Asia
• Analyst Ranking: No.1 overall
• Fixed Income Analyst / Economist: No.1 overall
Equities reported stronger Japanese product related revenues on larger number of
transactions in both the Cash and Derivatives businesses. Meanwhile, we remain focused on
building a profitable business structure by reducing costs through initiatives such as consolidating
our execution capabilities with Instinet.
Looking Forward
Market Outlook
With the varied pace of economic recovery and divergence in fiscal and monetary policies around
the world, the outlook for both the fixed income and equities markets remains uncertain. A more
cautious outlook in the financial markets is warranted as the trend towards stricter capital
requirements will continue to put downward pressure on fee pools.
Integrated Platform Combined with Home Market Advantage in Asia
In December 2012, we reorganized Fixed Income and Equities into an integrated Global Markets
structure in order to further enhance our operating efficiencies. This change will not only result in
cost synergies, but also enable us to leverage the newly integrated Global Markets platform to
deliver innovative cross-asset products and solutions to our clients and to maximize our return
on financial resources.
As the only Asian house with a global reach, we are leveraging our market leading position
in Japan to expand our share of cross-border flows connecting Asia with EMEA and the Americas.
Equities Trading Volume Share
TSE market share
(%)
15
13
13
12
11
10
5
0
Q1
FY2012/13
Q2
Q3
Q4
Nomura Report 2013 26
Wholesale
Investment Banking
Market Environment and Financial Results for FY2012/13
Financing and M&A deals were down globally in the first half of FY2012/13 due to the lingering
effects of the European sovereign debt crisis and concerns over a slowdown in the Chinese and
European economies, while in the second half markets received a boost from an increase in
monetary easing programs around the world, which helped drive a recovery in equity financings,
especially in Japan.
Investment Banking continued to build momentum globally, reporting gross revenue of
¥143.0 billion for FY2012/13. With clients’ needs growing even more diverse and global, Nomura
stepped up collaboration between different regions and business divisions to participate in more
cross-border M&A deals and financings in global markets. We also captured non-traditional
solution business associated with such deals, including interest rate and FX risk hedging. This
approach enabled us to meet a wide range of client needs and play a key role in the growth of
their businesses.
Nomura advised a number of clients on cross-border M&A deals, which covered
acquisitions by Japanese companies seeking growth opportunities abroad and takeovers of
European companies by Asian companies. Examples of these deals include Itochu Corporation’s
acquisition of business units from Dole Food Co. and Cheung Kong Infrastructure Holdings’
takeover of Wales & West Utilities of the UK by a consortium led by Cheung Kong Infrastructure.
We also played a key role in a number of major industry consolidations taking place in Europe.
These included Credit Agricole’s sales of its Greek subsidiary as well as the restructuring of
Spanish banks led by The Fund for Orderly Bank Restructuring (FROB).
As for financings, Nomura worked as a bookrunner on a number of major deals in Japan
where equities markets continued to stage a strong comeback. These included All Nippon
Airways’ (currently ANA Holdings) global offering and Sony’s euro-yen convertible bond. We also
underwrote bonds issuances for many domestic and foreign issuers, including Takeda
Pharmaceutical’s US dollar bond and a Samurai bond issued by Rabobank.
League table ranking (CY2012)
Japan-related M&A
Japan-related ECM
Samurai Bond
27
Nomura Report 2013
st
1 Global ECM
1
1
Global M&A
st
st
11
12
th
th
Source: Thomson Reuters
In Europe, we executed a number of capital raising transactions for European financial
institutions, including rights issues*1 by Italian insurance companies Fondiaria and Unipol. We
also executed Électricité de France’s (EDF) US dollar hybrid bond.
In Asia, we acted as a bookrunner on a number of financings aimed at unlocking future
growth opportunities, including IPOs for Haitong Securities (in Hong Kong) and Religare Health
Trust (an Indian company controlled by hospital operator Fortis Healthcare).
As clients’ needs become increasingly diverse and sophisticated, Nomura also provided
various solutions related to M&A and financing activities, including interest rate and FX risk
hedging, mainly to financial sponsors and financial institution clients. This approach helped to
boost revenues.
*1 Rights issue: A method of
increasing capital where
existing shareholders are
allotted, without consideration,
warrants that can be used to
purchase the stock at a price
below the market price
*2 Hybrid securities: Securities
that have both a debt and
equity component that are
considered as capital for
ratings purposes
Looking Forward
We will further enhance and drive profitable growth by focusing on areas where Nomura can win
and providing a wide range of sophisticated solutions to our clients.
M&A Advisory
In addition to capturing major deals associated with industry consolidation in Japan and abroad,
we will focus on pursuing cross-border M&A deals by encouraging greater collaboration among
regions. Such deals involve Japanese companies seeking growth opportunities overseas and
growing Asian companies.
Major Japanese Trading Companies and Financial Sponsors
As new investments and exits continue to be brisk, we aim to provide truly comprehensive
solutions that include M&A advisory, acquisition & leveraged finance, underwriting IPOs of
portfolio companies, as well as the provision of ancillary transactions like FX hedging.
Financial Institutions
As capital regulations become tighter with the implementation of Basel III, we will provide a variety
of solutions aimed at improving the financial strength of clients by way of underwriting rights issues
and hybrid securities*2, as well as advising on their disinvestment of non-core businesses.
Expanding our Presence in the Americas
The Americas is home to the largest fee pool in the world. With financial sponsors here expected
to be active going forward, we will pursue a multi-year phased growth strategy that will include
increasing M&A deals including those involving the portfolio companies of financial sponsors,
strengthening capabilities in leveraged finance and expanding our client base.
Nomura Report 2013 28
Global Research
29
Nomura Report 2013
Nomura’s global research is renowned for its combination of accuracy and forward-
looking coverage. With research hubs in key Asia-Pacific markets, including Tokyo,
Hong Kong and Singapore, as well as in London and New York, we currently have
some 560 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 strategies. This extensive network of intellectual capital provides our
clients with timely, actionable information.
Macro Approach to Global Research
Nomura’s global research covers GDP data
FX research, with its Asian FX and Rates
Strategy
team ranked #1
in
the 2013
for 38 countries and regions around the
Institutional Investor All-Asia Research Team
world, 32 different currencies, and every
survey. The achievement of Nomura’s Asian
major stock market in Japan, North America,
FX and rates strategy team mirrors that of its
Europe and Asia. This represents 90% of the
number one ranked FX/Currency Research
world’s economic and financial indicators,
team in the most recent Institutional Investor
positioning us well
to provide
timely
All-America Fixed Income Research survey,
information
that
investors can put
to
and number two ranked FX Research Team in
immediate use.
the All-Europe Fixed Income Research survey.
Nomura’s bond research also received
Award-Winning Research
Our research consistently receives high
strong recognition, with our Bond Strategy
team in Japan ranked number one and our
industry recognition. In the 2013 equity
US MBS team ranked second in their
research rankings announced by Institutional
respective fields. Furthermore, we topped the
Investor, we topped the All-Japan Research
Nikkei Veritas rankings for bond analysts,
Team for the fourth year running.
credit analysts, securitization analysts, and
Meanwhile, Nomura has confirmed its
Japanese equity analysts.
position as the world’s pre-eminent provider of
Global equity research coverage (As of June 30, 2013)
Total: 1,851 companies
Europe
376
Americas
203
Japan
548
Asia
(Excluding Japan)
724
Leading the Global Flow of Money
Nomura’s award-winning worldwide forex
teams to enable more seamless coverage of
growing Asian markets. As of March 31,
research
team consists of 17
full-time
2013, we covered some 1,300 companies in
researchers covering 32 major currencies. By
Japan and Asia and approximately 400 stocks
providing timely information on forecasts and
in Europe.
strategy for each currency, they help money
from Japan flow to the rest of the world and
money from the rest of the world flow into
Japan and Asia.
High-Quality Research with a Focus
on Global Trends
We offer timely, clearly presented evaluations
Another strength found in Nomura’s
of global trends and anticipated developments
global research is our ability to quickly provide
in reports covering such themes as the
investment ideas on multiple asset classes
change of government administrations seen
based on multifaceted analysis of standalone
around the world in 2012, the risk of a
themes. For example, in April 2013 our
collapse in the euro, the US fiscal cliff, shale
researchers around the world debated the
gas, and corporate governance.
impact that the Bank of Japan’s quantitative
With growing interest in the sustainability
easing program would have on individual
of companies and other organizations,
financial products. These discussions were
Nomura has been conducting research on
used to provide investment implications on
themes with a close correlation to the
not only Japanese equities, the yen-dollar
environment, including power grid stabilization
exchange rate, and the Japanese economy,
measures as well as the carbon capture and
but also European and North American debt,
storage business.
international equities and emerging market
Meanwhile,
investments
that are
currencies to clients. In this regard, our
considerate of the environment, society and
researchers played a key role in leading the
governance, or ESG, are beginning to catch
global flow of money.
on more widely among mainly European
investors. Yet, with the release of the
In-Depth Equity Research Coverage
The cornerstone of Nomura’s equity research
Principles for Financial Action towards a
Sustainable Society by Japan’s Ministry of
is our in-depth, focused analysis of core
the Environment in 2011, interest has also
global sectors, particularly those that are
blossomed
in ESG-friendly
investments
highly sensitive to economic, market and
among Japanese investors as well. With this
corporate trends in the Asia-Pacific region,
in mind, Nomura organized its first seminar
where Nomura can leverage its natural
on ESG investments in July 2012. Nomura
advantage as Asia’s global investment bank.
also publishes reports on utilizing ESG
We launched our US coverage in earnest in
information in equity investing as part of its
October 2010 and after narrowing our focus
ongoing commitment to provide investment
to key sectors, which
include
financial
ideas and hints on how best to use ESG
services, telecommunications, technology,
information. Going forward, Nomura will
and retail, our US coverage has expanded to
continue to provide beneficial research to its
more than 200 stocks. In Asia, we merged
clients through the development of related
our Japan and ex-Japan equity research
equity indexes and other means.
Nomura Report 2013 30
Business for Sustainability
The Nomura Group recognizes that the financial services industry plays a vital role
in contributing to economic growth and the sustainable development of society by
stimulating the circulation of capital through its products and services. As such, we
are firmly committed to solving a variety of social issues around the world through
our core businesses.
East Japan Revival Support Bond
Fund 1105
natural gas power generation, to ensure the
availability of alternative power sources.
Nomura Asset Management has been
managing the East Japan Revival Support
Bond Fund 1105 since its inception in May
Underwriter for JICA Bond Issuance
Japan
International Cooperation Agency
2011, with the goal of providing disaster relief
(JICA) is the unified implementing body of
assistance to those areas affected by the Great
Japan’s Overseas Development Assistance
East Japan Earthquake. The fund is structured
(ODA). In order to diversify its fundraising and
so that it provides donations (approximately
widely share its mission to the people of
0.2% annually of the fund’s total daily net
Japan, JICA issues bonds for retail investors
assets) once every six-month settlement
called JICA bonds. In December 2012,
period. The fund donated a portion of its
Nomura was given
the opportunity
to
custodial fees from the settlement periods of
underwrite a JICA bond issuance as one of
November 2012 and May 2013 to Aomori
the lead managers.
Prefecture, Iwate Prefecture, Miyagi Prefecture,
For this occasion, Nomura organized
Fukushima Prefecture, Ibaraki Prefecture and
investment seminars across Japan for retail
Sendai City, to be used for reconstruction
investors and also distributed a video
projects. In addition to these local governments,
program on JICA bonds for salespeople at all
donations were also provided for educational
of its branches in Japan. Going forward, we
and living support for children orphaned by the
will continue to market and promote the
disaster. The total amount donated was ¥33
million.*1 A total of 10 donations will be made
over the fund’s five-year term.
Public–Private Partnership
Infrastructure Fund Distribution
positive implications of making contributions
to international society through investing.
Supporting Investment in Clean
Energy Projects
The Banking Environment Initiative (BEI) is
In September 2012, Nomura Securities
an environmental and social sustainability
commenced sales of the SPARX – Public – Private
Partnership Green Energy Investment Limited
Liability Partnership, in order to help establish
initiative
spearheaded by multinational
financial institutions. As one of the ten*2
the Nomura Group
founding members,
a
financing
system
for
infrastructure
participates
in
the organization’s Clean
development and ensure the stable supply of
Energy Working Group, and as part of this,
electricity. This is a public–private partnership
Nomura Securities has researched valuation
fund established by the Tokyo Metropolitan
methods employed in clean energy project
Government to prevent an energy crisis in the
investment. In November 2012, the results of
wake of the Great East Japan Earthquake and
this research were presented in the keynote
nuclear power plant shutdowns. Through this
presentation “An Options Approach
to
fund, Nomura Securities solicits investments
Unlocking Investment in Clean Energy,” at the
in power providers, including solar, wind and
1st BEI Forum held in London.
*1 The total amount from the
fourth settlement period
(November 2012 to May 2013)
*2 BEI participants: Nomura
Group, Bank of New York
Mellon, Barclays, Credit
Suisse, Deustche Bank,
Westpac, and others.
31
Nomura Report 2013
Contributing to the Real Economy through Innovative Businesses
Based on its commitment to helping grow Japan’s economy through regional economic revitalization, the Nomura Group
leverages its strong network of head and branch offices in Japan to engage in a variety of new innovative businesses, including
agribusiness, healthcare and regional funds.
Pursuing Regional Economic Revitalization
Helping Revitalize Regional Economies
through a Broader Approach to Agribusiness
industrial policy
Agribusiness offers a significant opportunity for the revitalization of
regional economies. This is because of the hidden potential it offers as
for promoting sixth-order
a pillar of Japan’s
industrialization with agriculture, forestry and fisheries industries. The
Nomura Group is supporting the growth of community based
agricultural industries through Nomura Agri Planning & Advisory Co.
Ltd. (NAPA) by leveraging the financial services know-how and
information gathering capabilities of Nomura’s nationwide branch office
network. NAPA utilizes expertise gained from experimental farms
located in Chiba and Hokkaido to support companies that are
newcomers to agriculture, to assist in the development of a new
agricultural business model for areas
damaged in the Great East Japan
Earthquake, and to host seminars with
the support of
the Ministry of
Agriculture, Forestry and Fisheries to
encourage sixth-order industrialization
across Japan.
Taking Part in Commercialization Projects
through Industry–Academia Partnerships
The Nomura Group considers the lack of accumulated expertise in
commercialization as a major issue facing today’s industry–academia
partnerships. To solve this, the Nomura Group is committed to
proactively providing the know-how that it has accumulated over many
years in the field. In April 2013, Nomura Holdings and Nomura Securities
were recognized as “Project Promoters” for the Ministry of Education,
Culture, Sports, Science and Technology’s “Program for Creating
STart-ups from Advanced Research and Technology” (START). Under
this program, Project Promoters partner with universities to cultivate
their research and development into viable businesses. To that end, the
Nomura Group is fully utilizing its network and functions to create the
new industries and new markets of the future.
Learn more about the Nomura Group’s “Business for Sustainability” on our corporate website:
http://www.nomuraholdings.com/csr/sustainable/services.html
http://www.nomuraholdings.com/csr/sustainable/products.html
Supporting the Establishment and
Management of Regional Funds
The Nomura Group has been involved in the
establishment and management of funds by
regional banks, such as Akita Bank’s “Akita
Regional Revitalization Assistance Fund No.
2” and Yamagata Bank’s “Yamagata Regional
Growth Fund.” These funds seek to incubate
local companies engaged in future growth
fields, including renewable energies.
Helping Revitalize Regional Medicine through
Healthcare Initiatives
The healthcare industry in Japan is expected to grow on
the back of the country’s slowing birthrate and aging
population, but the industry also faces serious social
challenges, such as how to strengthen its management
structure and improve its financial standing. The Nomura
Group is helping to secure the safety of regional medicine,
revitalize regional economies and generate employment
opportunities through healthcare and nursing care
consulting and the provision of financial solutions by Nomura
Healthcare Co., Ltd. In FY2012/13, Nomura provided
consulting services on the construction of new hospitals
in the Kinki region of Japan.
Moreover, by the end of
March 2013, Nomura
Securities had donated to
each of 25 hospitals with
a helicopter emergency
medical service.
Nomura Report 2013 32
Column
Collaborating across Regions and Divisions for Our Clients and Society
Nomura stands committed to being Asia’s global investment bank. Utilizing our global business
platform, we are working in a variety of ways to connect our clients to the growth markets of Asia
through collaboration that transcends both regions and business divisions. Below, we introduce the
case of ADB Clean Energy Bonds as a highlight of these efforts. By arranging such financial instruments,
we contribute to the sustainable economic growth of Asia.
Supporting the Enhancement of Social Infrastructure in Asia through Financial Instruments
It has been said that around $8 trillion will be required to
divisions (Investment Banking and Global Markets
enhance social infrastructure in the coming years to
units), with our offices in London and Japan working
achieve further growth in Asia, which is a key driver of
together. Going forward, we will use similar collaboration
global economic growth. Nomura serves as a bridge
transcending both regions and business divisions to
between investors who wish to make a contribution to
develop and offer products and services that help
society through their investments and the financial
resolve social issues and fulfill a variety of client needs.
needs of projects that aim to resolve the region’s many
social issues.
As an example, in January 2013 Nomura underwrote
the Clean Energy Bonds
issued by
the Asian
Development Bank (ADB) and distributed them to
Japanese investors. Proceeds from these bonds are
used to fund clean energy projects such as solar and
wind power, which contributes to the sustainable
economic development of Asia.
These bonds were structured and distributed
through a collaborative effort by our Retail and Wholesale
Clean Energy Projects Receiving Support from the ADB
PRC Zhangbei Wind Power Project
ADB Photo Library
Philippine Energy Efficiency Project
ADB Photo Library
Stakeholder Feedback
Supporting Energy Projects with Green Energy Bonds
Anthony J. Jude
Chair, Energy Committee; Senior Advisor and Practice Leader (Energy)
Regional and Sustainable Development Department, Asian Development Bank
The Asian Development Bank has raised, through Nomura
International plc, the equivalent of more than $400 million
from its second sale of Clean Energy Bonds to Japanese
retail investors in 2012/13. The Clean Energy Bonds
provide a way for investors to direct funding to clean
energy projects. The bonds will support ADB’s ongoing
renewable energy and energy efficiency projects in Asia
and the Pacific.
In 2012, ADB approved $2.36 billion investment in
clean energy projects up from $2.1 billion in 2011 and
surpassing the 2013 target of $2 billion. About 41.3% of
this amount is for energy efficiency projects with the
remaining amount going to renewable energy projects.
Renewable energy projects include hydro, solar, wind,
biomass, and waste-to-energy projects. Energy efficiency
projects consist of district heating retrofits, electric vehicles,
loss reduction in transmission and distribution lines, and
industrial energy efficiency improvements. The 2012 ADB
clean energy projects are expected to add 1,255 MW of
renewable energy capacity, to save annually 871 GWh of
electricity and 71,938 TJ of fuel and to avoid 15.9 million
tons of CO2.
ADB and Nomura will continue
to promote and support socially-
in clean
responsible
energy as they move forward to create
a sustainable society free of poverty.
investments
33
Nomura Report 2013
Partnerships and Business Flow Transcending Regions and Business Divisions
Asia
Clean energy projects in Asian countries
Investment
Asian Development Bank (ADB)
Investment capital
UK
Nomura Group
Investment Banking
Working with the ADB
Corporate
Document preparation
The clean energy bonds issued together
with the ADB yielded an excellent result. The
proceeds help the ADB to diversify its
funding sources and make an impactful
contribution to sustainability.
Japan
Malik Menzer
Debt Capital Markets
Overall deal coordination
This deal connected the ADB, which is
supporting clean energy projects, with the
broad range of Japanese investor needs
through
team-wide collaboration across
different regions and business divisions.
Saori Tanaka
Syndicate Department
Intermediary to distributors
Product planning
Retail Division
Gary Durham
Transaction Legal - Debt Capital Markets
Global Markets
Information and order provision to Sales
Takuji Nishike
Fixed Income Marketing Dept.
There is increasing demand for contributing
to society through investments, rather
than donations or charitable fundraising.
This product was developed to cultivate
these needs.
Regional
banks,
etc.
Product
sales
Tatsuya Kitamura
Brokerage Alliance Business Consulting Dept.
Takahiro Kikutake
Product Development and Planning Dept.
Product sales
Product sales
I received a great deal of positive
feedback from clients. This included
that it was easy to understand how
the funds would be used and that they
were happy to know their investment
would make a difference. This
reaffirmed for me the important role
that we played in helping to connect
investors with financing demand.
Noriko Suzaki
Yokohama Branch Office
Mikiko Omori
Sendai Branch Office
Product sales
Investors
I helped clients to understand
the importance of the issuer’s
rating, the purpose of financing,
and currency diversification,
which provided a real sense of
contributing to the betterment of
society through investing.
Nomura Report 2013 34
Rebuilding Trust
Nomura would like to take this opportunity to
put in place remain effective. To this end, the
once again apologize to its many stakeholders
status of implementation of the improvement
for any trouble or concern it may have caused
measures will be monitored by
the
in relation to the series of insider trading
Improvement Measures
Implementation
incidents in 2012 related to public offerings
Committee under the direct control of the
for which Japan’s Securities and Exchange
Representative Executive Officer and President
Surveillance Commission has recommended
of Nomura Securities.
administrative penalties.
By
thoroughly
implementing
the
improvement measures, we will work to
Overview
On June 29, 2012, Nomura Securities
prevent such incidents from occurring again
and strive to regain the public’s trust while
announced a series of business improvement
continuing to reinforce our internal controls.
measures to address these incidents that
have now been fully implemented. While we
believe that all the improvement measures
Improvement Measures
The
following
represents
the main
are functioning effectively, we recognize the
improvement measures implemented for this
importance
of maintaining
consistent
series of insider trading incidents related to
implementation of the measures to ensure
public offerings.
the new organizational structure and systems
Summary of Implemented Improvement Measures
1. Enhancement of the Control System for
Corporate-Related Information
reported to related departments and the relevant executive
officers in charge.
Company rules were revised and the departments in
charge of institutional equity sales are now prohibited from
requesting corporate-related information from analysts or
departments that are likely to be in contact with corporate-
related information for business reasons, such as the
Syndicate Department. Rules are now more rigorously
enforced to ensure that both corporate-related information
and information that is indicative of corporate-related
information is no longer transmitted by the departments in
charge of institutional equity sales.
2. New Establishment of Equity Administration
Department (Currently GM Sales Administration
Department)
In July 2012, the Equity Administration Department was
established. Since then, this department has been
monitoring call recordings, use of e-mails and online
chats, and use of entertainment expenses by employees
in the departments in charge of institutional equity sales. In
April 2013, the name of this department was changed to
the GM Sales Administration Department and its scope of
monitoring was expanded to departments in charge of
bond sales. At the same time, a framework for monitoring
the sales activities of all departments in charge of sales
targeting institutional investors was also set up. In order to
monitor exchanges with clients, employees of departments
in charge of institutional equity sales have been issued
mobile phones with a call recording function that must be
used at all times. The results of monitoring activities are
35
Nomura Report 2013
3. Improvement of Personnel System and
Implementation of Training
Changes were made to the personnel system and
performance appraisals now emphasize “Business Ethics/
Compliance” as an important assessment criterion that is
equally ranked with “Achievements and Results” and
“Potential.” Changes were also made to the compensation
scheme and new guidelines created to give qualitative
assessment of business ethics more weight in promotion
criteria, to reflect the qualitative assessment in the year-
end assessment/compensation (bonus), and to prepare
guidelines concerning the reduction or clawback of
deferred compensation on the grounds of receiving a
disciplinary action in connection with a breach of
compliance rules and policies.
In addition, all officers and employees must now
participate in an annual training session to raise greater
awareness
Furthermore,
employees of departments in charge of sales targeting
institutional investors must take part in these training
sessions biannually.
about business
ethics.
In order to rationalize the use of entertainment
expenses, company rules have been put in place to
regulate gifts and business entertainment expenses
outside of the Company as well as to prohibit the excessive
concentration of gifts and business entertainment
expenses on particular clients.
Shoichi Nagamatsu
Executive Managing Director
Chief of Staff
Nomura Holdings, Inc.
Re-Imbuing Compliance and Business Ethics
Nomura has reinforced and made changes to its compliance
system as well as initiated various measures to foster greater
compliance awareness and business ethics among all its
executive officers and employees in order to prevent insider
trading scandals from ever happening again.
Specifically, these efforts can be broken down into
three points. First, Nomura changed the way it manages
corporate-related information and established a system for
properly managing this information between departments
that have such information, departments without such
information, and clients. Second, Nomura newly
established the Equity Administration Department to
reinforce its monitoring functions of departments in charge
Hisato Miyashita
Senior Managing Director
Group Compliance Head
Nomura Holdings, Inc.
Representative Executive Officer
Compliance Division, Internal Control
Supervisory Manager
Nomura Securities Co., Ltd.
Internal Control Supervisory Manager,
Living up to the Trust Our Clients Place in Us
In April 2013, I was appointed as Representative Executive
Officer of Nomura Securities Co., Ltd., Compliance
to
Division,
complement my current posting of Senior Managing
Director of Nomura Holdings and Group Compliance Head.
In 2012, Nomura Securities drew up preventive
measures for the series of insider trading incidents related
to public offerings for which Japan’s Securities and
Exchange Surveillance Commission
recommended
administrative penalties. Each and every one of these
preventive measures is now being fully implemented, and
we are currently monitoring the implementation process,
making further changes and taking steps to further enhance
of institutional equity sales. The name of this department
was changed to the GM Sales Administration Department
as of April 1, 2013, and its scope was expanded to
departments in charge of bond sales. Third, Nomura has
made improvements to its personnel management system
and training programs. Greater weight has been given to
business ethics and compliance for performance appraisals
and promotions, and business ethics training sessions are
now held regularly for all executive officers and employees.
Going forward, the most important action we can
take is to ensure that our efforts are maintained and
sustained. To that end, each and every executive officer
and employee must be fully prepared to remake the
company from the ground up and maintain the same high
level of business ethics demanded from professionals in
the financial services industry. Such business ethics are
formed through training as well as daily communication
between supervisors, junior staff and fellow colleagues as
well as clients. Nomura will continue to implement these
compounding, company-wide efforts that are essential to
restoring our trust and credibility and to making market
growth possible.
and reinforce our internal control framework. I am committed
to ensure the continuity and sustained functionality of these
preventive measures and to make further improvements
going forward.
I believe that the essence of compliance can be found
in professionalism underpinned by business ethics and
social conventions. In this sense, compliance forms a vital
element that determines the true value of the many services
we provide clients. Each and every one of our employees
needs to abide by the rules, which includes the laws and
regulations that form a vital part of their duties, to understand
the essence and act according to these rules, and constantly
be aware of their own role in society as someone working in
the financial services industry. That is, it is critical for Nomura
to foster a corporate culture where employees perform their
duties with a strong sense of business ethics and
commitment to compliance. I am convinced that such a
corporate culture will enable us to regain the trust of our
clients and make further contributions to the sound
development of capital markets. Going forward, we will
continue to build up our compliance framework with an even
greater commitment than before.
Nomura Report 2013 36
Corporate Governance
Approach to Corporate Governance
Nomura Holdings recognizes that enhancement of corporate governance is one of the top priorities to
achieve its management visions of enhancing corporate value by deepening society’s trust in the firm
and increasing the satisfaction of stakeholders, including that of shareholders and clients. On this basis,
we are committed to strengthening and improving the governance framework by pursuing transparency
in our management and expediting the decision-making process within the Nomura Group.
Measures for Reinforcing Governance
When we adopted a holding company
by adopting the Committee System, a system
in which management oversight and business
structure and listed on the New York Stock
execution functions are clearly separated.
Exchange (NYSE) in 2001, we installed
In 2004, we established the “Code of
Outside Directors, established an Internal
Ethics of Nomura Group”, which specifies
Controls Committee, a Compensation
matters to be observed by each director,
Committee (the majority of the members are
officer and employee of the Nomura Group
Outside Directors) as well as an Advisory
with respect to corporate governance and
Board of eminent persons from outside the
corporate social responsibility. We are striving
company, and further improved our information
to thoroughly implement such matters by
disclosure system, as part of our commitment
obtaining a compliance pledge once a year
to ensure management transparency.
and conducting training programs. Please
In addition,
in 2003, we
further
see our corporate website for more details.
strengthened and increased the transparency
Code of Ethics of Nomura Group
of our oversight functions and expedited the
Nomura Group’s decision-making process
http://www.nomuraholdings.com/company/
basic/ethics.html
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 satisfy requirements for independent directors as defined in the
Sarbanes-Oxley Act of 2002
• Three Directors, including two Outside Directors
• Determines policy with respect to the particulars of compensation for each Director and
Executive officer, as well as the individual compensation
• Directors concurrently serving as executive officers are not members
Group CEO
Executive Management Board
Advisory Board
Deliberates on and determines important management matters,
such as the management strategy for Nomura Group, business
plans, budgets, and allocation of management resources
Established as a consulting body to
the Executive Management Board,
with the aim to bring an external
perspective to the formation of our
management strategy
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
37
Nomura Report 2013
Corporate Governance System
The Committee System clearly separates
Directors, and based on supervision with an
emphasis on the external perspective, we are
management
oversight
and business
aspiring to put in practice management with
execution functions. The Committee System
a high level of transparency. We emphasize
expedites the decision–making process by
the independence of Outside Directors from
broadly delegating authority for the execution
the Nomura Group, and in order to maintain
of business functions from the Board of
such independence, we have established the
Directors to the Executive Officers. Further,
“Independence Criteria for Outside Directors.”
the Committee System enhances management
As none of the Outside Directors fall under
oversight by establishing the Nomination,
the categories for which independence is
Audit and Compensation Committees, and
considered suspect, and since none of the
the majority of
the members of each
Outside Directors have any conflicts of interests
committee are Outside Directors. Among the
with the shareholders, we have reported that
various organizational structures we could
each of
the six Outside Directors are
have chosen to adopt, we believe that the
independent directors in our submission to the
Committee System is the most compatible
Tokyo Stock Exchange. Please see our Annual
with the corporate governance standards
Securities Report for more information on the
which form a part of the NYSE Listed
Independence Criteria for Outside Directors.
Company Manual.
6-K
Based on this, we determined that
the Committee System is the most suitable
form of corporate governance for us at this
point in time.
Board of Directors
In order to achieve effective oversight of
business execution functions from multiple
perspectives, we place
importance on
diversity within the Board of Directors. Each
director has a diverse background in terms of
http://www.nomuraholdings.com/investor/
library/sec
Board of Directors
(As of June 26, 2013)
Outside Directors
54% (6 of 11)
Non-Japanese Directors 27% (3 of 11)
nationality, gender, professional experience,
Female Directors
etc., and by utilizing their extensive experience
in their respective fields, such as business
manager, legal/accounting professional and
public servant, the directors assist with the
FY2012/13 Board Meetings
9% (1 of 11)
determination of
important managerial
Convened:
matters and oversee business execution.
Average attendance rate:
11 times
97%
Additionally, six of the eleven Directors
making up our Board of Directors are Outside
Note: The number of meetings and average attendance rate for the
Board of Directors represents results for fiscal 2012 (April
2012 to March 2013)
Nomura Report 2013 38
Corporate Governance
Business Execution
The Board of Directors has broadly delegated
Internal Controls
We are committed to strengthening and
decision making authority
for business
improving our internal controls system to
execution functions to the Executive officers
promote
proper
corporate
behavior
to ensure that they can execute the company’s
throughout the Nomura Group, from the
business with speed and efficiency. Among
viewpoints
of
ensuring management
the matters delegated to the Executive
transparency and efficiency, complying with
Officers by resolutions adopted by the Board
laws and
regulations, controlling
risks,
of Directors, the most important matters of
ensuring
the reliability of business and
business must be deliberated and decided
financial reports and fostering the timely and
by specific management bodies within the
appropriate disclosure of information.
company, including the Executive Management
Furthermore, in order to ensure effective
Board, the Group Integrated Risk Management
and adequate internal controls, the Group
Committee, and
the
Internal Controls
Internal Audit Department, which is independent
Committee. These management bodies are
from the business execution functions, and
required to report to the Board of Directors
other similar audit sections placed in major
on the status of their deliberations at least
subsidiaries, conduct internal audits of the
once every three months.
company and its subsidiaries.
In order to further bolster our business
The implementation status of internal
execution framework for financial operations
audits are also reported to the Board of
that are becoming increasingly sophisticated
Directors and the Audit Committee.
and specialized, we utilize a system whereby
In
addition,
to
strengthen
the
the Executive Officers delegate a part of their
independence of the internal audit sections
authority for business execution decisions to
from
the business execution
functions,
Senior Managing Directors (SMDs), who
implementation plans and the formulation of
focus on individual business line activities.
the budget of the Internal Audit Divisions, as
well as the election and dismissal of the Head
Nomura Internal Controls
Internal Controls Committee
Agrees on IA’s audit plan, human
resources and budget
Audit Committee
• Deliberates on and determines matters concerning
the maintenance and assessment of internal
controls and promoting proper corporate behavior
• Members include two Audit Committee
members, the Group CEO and the Group COO
• Audit plan and budget
approval
• Appointment and
dismissal of IA head
Report
Report
Report
• Consists of two Outside Directors, and one
Director not concurrently serving as an Executive
Officer
Assists the Audit
Committee with its duties
Office of Audit Committee
Internal Audit
Internal audits
Management
Business
Risk
Management
Compliance
39
Nomura Report 2013
of the Internal Audit Division require the
history, responsibilities, and compensation
consent of the Audit Committee. Audit
standards of related business fields. A portion
Committee members may
recommend
of base salary may be paid in the form of
changes to the implementation plan, etc., to
equity-based compensation with a certain
Executive Officers.
Compensation for Directors and
Executive Officers
non-exercise period to ensure that the
interests of Directors and Executive Officers
are closely aligned with those of shareholders.
As Nomura has adopted a committee system
for corporate governance, the Compensation
2. Annual Bonus
Annual Bonuses of Directors and Executive
Committee has prepared and approved the
Officers are determined by taking into account
Compensation Policy of Nomura Group and
both quantitative and qualitative factors.
Compensation Policy
for Directors and
Quantitative factors include performance of the
Officers of Nomura Holdings, Inc.
Group and
the division
results, while
qualitative factors include achievement of
Compensation Policy of Nomura Group
individual goals and subjective assessment
To enable us to achieve sustainable growth,
of individual contributions. Depending on the
realize a long-term increase in shareholder
level of bonus payment, a portion of payment
value, deliver added value to our clients,
in cash may be deferred. In addition, a portion
compete in the global market and enhance
of deferred bonus may be paid in equity-
our reputation, Nomura has developed the
based compensation with a certain non-
Compensation Policy of Nomura Group
exercise period in lieu of cash. Such deferred
applicable to regular employees, including
bonus may be unpaid or forfeited under
senior management. The policy is broadly
specific circumstances.
divided into six key themes.
1. Align with Nomura values and strategies
2. Reflect firm, division, and individual performance
3. Establish appropriate performance measurement
with a focus on risk
4. Align employee and shareholder interests
5. Establish appropriate compensation structures
6. Ensure robust governance and control processes
Compensation Policy for Directors and
Executive Officers of Nomura Holdings, Inc.
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 achievements are accomplished.
Payments are made in equity linked awards
The compensation of directors and executive
with appropriate vesting periods to ensure
officers comprises base salary, an annual
that medium
to
long-term
interests of
bonus, and a long-term incentive plan. The
Directors and Executive Officers are closely
Compensation Committee has approved the
aligned with those of shareholders.
following matters related to compensation of
directors and executive officers:
Please refer to the 20-F.
1. Base Salary
Base salary is determined based on factors
such as professional background, career
Form 20-F
http://www.nomuraholdings.com/investor/
library/ar/
Nomura Report 2013 40
Corporate Governance
Board of Directors (As of June 26, 2013)
Nobuyuki Koga
Chairman of the Board of
Directors
Chairman of the Nomination
Committee
Chairman of the Compensation
Committee
Masahiro Sakane
Outside Director
Nomination Committee Member
Compensation Committee Member
Councilor and Senior Adviser of
Komatsu Ltd.
Takao Kusakari
Outside Director
Nomination Committee Member
Compensation Committee Member
Corporate Advisor of NYK Line
Tsuguoki Fujinuma
Outside Director
Chairman of the Audit Committee
Certified Public Accountant
Former Chairman and President of
the Japanese Institute of Certified
Public Accountants
Toshinori Kanemoto
Outside Director
Audit Committee Member
Attorney-at-Law
Of-Counsel, City-Yuwa Partners
Former President of
ICPO-INTERPOL
Hiroyuki Suzuki
Audit Committee Member
Executive Management Structure (As of August, 2013)
Group CEO
President and Group COO; Wholesale CEO
Retail
Retail CEO
Asset Management
Asset Management CEO
Wholesale
Global Markets
Group COO; Wholesale CEO
Head of Global Markets
Co-Head of Global Markets
Investment Banking
Head of Investment Banking
AEJ
Americas
EMEA
Regional CEO, Asia ex-Japan
Regional CEO, Americas
Regional Co-CEO, Americas
Regional CEO, EMEA
Regional Co-CEO, EMEA
41
Nomura Report 2013
Koji Nagai
Atsushi Yoshikawa
Toshio Morita
Toshihiro Iwasaki
Atsushi Yoshikawa
Steven Ashley
Naoki Matsuba
Kentaro Okuda
Minoru Shinohara
David Findlay
Toshiya Hasegawa
Jeremy Bennett
Yasuo Kashiwagi
Board of Directors (As of June 26, 2013)
Executive Management Structure (As of August, 2013)
Koji Nagai
Representative Executive Officer
Group CEO
Atsushi Yoshikawa
Representative Executive Officer
President and Group COO
Dame Clara Furse
Outside Director
Former Chief Executive of London
Stock Exchange Group
Member of the Bank of England’s
Financial Policy Committee
Michael Lim Choo San
Outside Director
Former Executive Chairman of
PricewaterhouseCoopers,
Singapore
David Benson
Chief of Staff
Chief Financial Officer
Chief Risk Officer
Deputy Chief Risk Officer
Deputy Chief of Staff
Shoichi Nagamatsu
Shigesuke Kashiwagi
Lewis O’Donald
Yuji Nakata
Chie Toriumi
Corporate, Others
Group CAO (Wholesale IT, Global Operations, Facility Management)
Paul Spanswick
CIO
Naohiro Sako
Head of Group Compliance and Wholesale Compliance Head
Hisato Miyashita
Global Operations, General Services
Chief Legal Officer and Secretariat
Group Corporate Communications
Head of Global Human Resources
Internal Audit
Group Internal Audit
Masaru Konno
Noriaki Nagai
Eiji Miura
Akihito Watanabe
Junko Nakagawa
Head of Asia Strategy and Wealth Management, Asia
Hiromasa Yamazaki
Nomura Report 2013 42
Compliance
Compliance framework
Nomura Holdings
Nomura Group
companies
43
Nomura Report 2013
Fundamental Approach
Compliance is a top management priority for
of the Head of Group Compliance are also
assigned to each Group company, including
the Nomura Group, and the Nomura Group
overseas offices, to develop and maintain
Code of Ethics represents our fundamental
their respective compliance structures.
policy on compliance.
Nomura Securities’ Compliance Structure
Compliance Framework
We work to eliminate behavior that could
In addition to group-wide initiatives, Nomura
Securities has established a Compliance
result in legal or regulatory violations. Should
Program as a detailed action plan, and put
such suspicions arise, corporate structures
into place a compliance framework based on
and systems have been put into place to
this program.
effectively handle them, including the prompt
A Compliance Committee chaired by
delivery of all related information without
the President oversees company-wide
exception to management.
initiatives and is in charge of establishing and
Specifically, we have appointed a
deliberating on important issues related to
Group Compliance Head
to oversee
internal controls. In addition, the Company
compliance for the Group as a whole along
has assigned an
Internal Administration
with a Group Compliance Department that
Supervisor to monitor compliance issues and
provides support. A Wholesale Compliance
set up the Compliance Division.
Head has also been designated to strengthen
The Compliance Division strengthens
our internal controls in response to global
and improves legal and regulatory compliance
business expansion.
as well as the internal controls system by
Compliance Officers that report on
formulating internal rules and disseminating
compliance-related issues under the direction
them throughout the Company.
It also
monitors the status of compliance with
respect to these rules in each department
and branch office. Should any problems
arise, the division takes remedial action such
as increasing awareness of the rules or
Board of Directors
Audit Committee
revising them as needed.
Executive Management Board
Group Compliance Head
Direction
Report
Wholesale Compliance Head
Direction
Report
Group Compliance Department
Direction
Report
Compliance Officers
Direction
Report
Departments
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.
Compliance Training
We conduct comprehensive compliance
training
for all executive officers and
Nomura Securities’ Primary Initiatives
• Appointing officers to oversee internal controls,
compliance, etc., and developing systems to ensure
compliance and the appropriateness of operations
• Thoroughly screening account openings and conducting
proper examinations when underwriting securities
• Conducting sales and solicitation activities
• Carefully reviewing product details and taking action
to provide accurate and comprehensive information
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 status
employees on topics such as the prevention
• Ensuring thorough compliance with laws, regulations
of money laundering and insider trading,
firewall
regulations, and guidelines
for
managing customer information.
Nomura Securities’ Primary Initiatives
• Training for sales 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
personnel 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
Enhancing the Quality of Financial
Products and Services
and internal rules through compliance training
Fair Business Practices
The Nomura Group strives to ensure fair
business practices by prohibiting transactions
with anti-social forces, stipulating rules on
gifts and entertainment of public officials and
private sector groups, and ensuring that all
employees fully comply with both.
Information Security
The Nomura Group Information Security
Policy is the basic document governing the
effective protection of clients’ personal
information and other information assets of
the Group.
Customer-related personal information
Nomura Securities seeks to enhance the quality
is handled under stringent standards set out in
of financial products and services offered to
the Nomura Group Privacy Policy and other
customers under the Guidelines for Financial
information security-related rules, and in full
Instruments Business Supervision. Some of its
compliance with personal information-related
initiatives include rigorous screening of account
laws and regulations. For more information,
openings and securities underwriting practices
please see:
as well as the provision of accurate and easy-
Nomura Group Privacy Policy
to-understand information.
http://www.nomuraholdings.com/policy/
privacy.html
Nomura Report 2013 44
Risk Management
Fundamental Approach
The business activities of the Nomura Group
are exposed to various risks such as market
risk*1, credit risk*2, operational risk*3 and
other risks caused by external factors. We
of the risk management framework, while
Risk Management Departments, which are
independent from our business lines, work
together globally under the leadership of the
CRO to build group-wide risk management
have established a
risk management
frameworks and comprehensively manage
framework
to provide
comprehensive
risk through the use of stress testing and
controls, monitoring and reporting of these
other methods.
risks in order to maintain financial soundness
Nomura’s Internal Audit Department
and the Company’s corporate values.
operates
independently
from
other
departments in the organization and strives
Risk Management Structure
Our
fundamental policy concerning risk
toward enhancing the effectiveness of internal
controls, including our risk management
management is to control risks arising in the
structure, and
it makes proposals and
course of business operations to the confines
recommendations for operational improvements
of the Company’s risk appetite, which is
based on audits and evaluations of the
clearly established based on risk tolerance in
effectiveness and validity of risk identification
line with group-wide business strategy,
and risk management practices.
business targets, management strength and
Form 20-F
capital base. In accordance with this, the
Group
Integrated Risk Management
Committee*4 has been delegated by the
Executive Management Board to deliberate
and determine important matters pertaining
http://www.nomuraholdings.com/investor/
library/ar/
Social and Environmental Risk
Management
to integrated risk management.
We believe that considering the social and
The Chief Risk Officer
(CRO)
is
environmental risks that may arise from various
responsible for maintaining the effectiveness
transactions is key to managing our reputational
*1 Market risk: Risk of losses
arising from fluctuations in
values of financial assets and
debts (including off-balance
sheet items) due to
fluctuations in market risk
factors (interest rates, foreign
exchange rates, prices of
securities and others)
*2 Credit risk: Risk of losses
arising from the decrease of
asset values (including
off-balance sheet items) due
to deterioration in
creditworthiness or default of
an obligor or counterparty
*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 Chief
Legal Officer, the Deputy CRO,
and other members appointed
by the chairman.
Risk management structure
Board of Directors
Report
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
risk. As such, in executing our business
operations we focus on these risks in the same
way we are careful about legal compliance.
For example, underwriting
financing
deals, we review and confirm the issuer’s
awareness of any associated potential risks to
society and the environment and that the issuer
has taken appropriate steps to address such
risks, including the disclosure of information
about those risks. Impact on the environment
Assessment process
Assessment of
transaction
Decision
• Regulations
• Environmental
and social issues
45
Nomura Report 2013
and society, as well as financial condition,
Strengthening Our Response to Disasters
operating results, and other aspects, are
The Nomura Group has revised the risk
included in the overall guidelines applied by
scenarios it uses based on the lessons
relevant departments during the assessment
learned
from
the Great East Japan
process as vital items that must be confirmed
Earthquake in order to be fully prepared for
when taking on underwriting deals.
other natural disasters, such as a major
Crisis Management
The Nomura Group has established the Crisis
earthquake that may strike directly below the
Tokyo area or in the Nankai Trough off the
coast of Nagoya. We are also strengthening
Management Committee, comprised of crisis
our organizational disaster preparedness
management officers of each Group company
measures on a global basis. In FY2012/13,
worldwide, to address any crisis that may
we focused efforts on the following initiatives.
occur. Chaired by an executive officer
nominated by the Group CEO, this committee
has established a system for managing crises
and ensuring business continuity in the event
of an emergency.
This committee's secretariat regularly
1. Increased supply stockpiles
• Increased supplies of food and water at the head
office and branch offices
• Provided additional supplies to branch offices
located in areas likely to be damaged by a tsunami
2. Strengthened collaboration between Group
companies in Japan and overseas
conducts employee safety verification drills,
• Bolstered the system to collect and share
disaster prevention drills, and business
continuity drills, in order to be fully prepared
to check the status of all Nomura employees
during an emergency. As part of these efforts,
the secretariat is also tasked with fostering
greater awareness of crisis management as
well as maintaining and strengthening our
ability to respond to emergencies.
This system and these measures are
stipulated
in
the Nomura Group Crisis
Management Policy. This policy covers a
wide range of risks facing the Company,
including natural disasters, fires, serious
crimes committed against the Company or its
information with overseas branch offices
• Enhanced information sharing with domestic
Group companies
3. Conducted training drills
• Conducted drill based on the scenario of an
earthquake striking directly beneath Tokyo
• Carried out street-wide exercises
• Performed drills to verify the safety of employees
4. Fostered greater awareness of crisis management
• Conducted crisis management training
5. Business continuity plan
• Analyzed degree of impacts on business operations
• Revised business continuity plan in conjunction
with core system renewals
Security Measures for Online Services
executive officers and employees, system
In order to accommodate the diverse needs of
interruptions, transmittable diseases and the
its clients, the Nomura Group provides a
leakage of information assets. We have
wide range of its services over the Internet.
delegated significant authority
to crisis
These services use the latest, most advanced
management officers to ensure they can
encryption technologies to ensure that important
promptly make decisions onsite should a
client
information
is always safeguarded.
crisis occur. The above policy dictates that
Furthermore, we
have
strengthened
crisis management officers be able to take
surveillance of our in-house systems and
the most appropriate actions necessary to
implemented new security systems in order
ensure people’s safety and minimize the
to prevent illegal access from external parties
spread of damage.
or information leakages caused by cyber-
attacks, which have become increasingly
threatening in recent years.
Nomura Report 2013 46
CSR Management
47
Nomura Report 2013
Fundamental Approach
We recognize that CSR is not only an effective
that spans the entire Nomura Group to
support the next generation. We engage in
risk management tool, but is also a way to
our business and community affairs activities
identify opportunities for our business. We
in line with this goal.
have been taking steps to strategically
analyze the relationship between the group’s
business activities and society as well as the
CSR Activities Promotion Framework
The CSR Committee is the management level
environment, and are
taking steps
to
decision-making entity for the corporate social
incorporate these into our management
responsibility program. Chaired by the Group
decision-making, business processes and
CEO, the committee comprises six executive
community affairs activities. In March 2010,
officers. The Corporate Citizenship Department
we formulated “For Future Generations” as
serves as its secretariat and spearheads
our key focus area to be shared among all of
comprehensive CSR activities. The Corporate
our executive officers and employees.
Citizenship Department also works closely
The core role of any financial institution
with regional offices globally to ensure that
is to contribute to the sustainable development
business divisions maintain a consistent and
of the economy and society by promoting
proactive approach to their community affairs
sound capital markets through its products
activities in line with their operations as well as
and services. We established “For Future
the needs of the local community.
Generations,” which represents a commitment
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 and to contribute to
developing a sustainable society for future generations
Business for Sustainability
To provide innovation through our products based on market
mechanisms 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
Communication with Stakeholders
We
internal
believe
and
external
communications are important mechanisms
that ensure we are addressing
the
expectations of our external stakeholders as
well as incorporating the needs of society in
our business activities.
We strive to raise awareness and
educate our employees on corporate social
responsibilities
through messages
and
information provided by senior management
through our intranet system. This is based on
our belief that it is essential for employees,
who engage with various stakeholders, to take
the lead role in implementing CSR activities.
Our communications with external
stakeholders take the form of information
dissemination via reports and our website. In
addition, we undertake stakeholder dialogue
sessions and interactive communication via
social media, such as our official Twitter
account and Facebook pages.
Community affairs activities are considered
important platforms for encouraging direct
interaction between employees and external
stakeholders, and
include
financial and
Organizational structure
CSR Committee
Chairman:
Group CEO
Strategy
Secretariat
Corporate Citizenship Department
Japan
AEJ
EMEA
Americas
Key issues
Goals
Progress in
fiscal 2012
Responsible Business
Corporate
Governance
Enhance medium- to long-term corporate value by
ensuring timely decision-making and strong management
oversight using a diverse group of directors
pp. 37– 42
Compliance
Identify and appropriately address compliance risks
that are highly relevant to our business
pp. 35– 36,
43 – 44
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
pp. 45– 46
CSR
Management
Identify business opportunities and risks associated
with social and environmental factors and reflect these
in business activities and community affairs activities
pp. 47– 48
Client
Win the trust of clients by providing high quality services
pp. 15– 28
economics education and support for the
Business for Sustainability
reconstruction effort following the Great East
Japan Earthquake.
In addition, we are
involved
in
initiatives as well as multi-
Business
activities
Proactively support businesses that contribute to
solving social and environmental
through
financial mechanisms, thereby generating added value
issues
pp. 31– 34
stakeholder frameworks aimed at making
Citizenship
contributions to society and the environment
both in Japan and abroad. We also receive
valuable feedback from our stakeholders
about our community affairs activities, including
financial and economics education programs
and regional revitalization initiatives.
Stakeholder Dialogue
http://www.nomuraholdings.com/csr/
dialogue/
Community
Investment
Promote community affairs activities that meet the
needs of each community with a focus on developing
the next generation
pp. 49 – 50
Diversity &
Inclusion
Promote human resources development to train highly
professional employees capable of working on the
global stage
pp. 51– 52
Environmental
Footprint
Identify the environmental impacts of our operations
and pursue initiatives to reduce such impacts
pp. 53 – 54
Nomura Report 2013 48
Our Community
Fundamental Approach
Under its goal of “For Future Generations,” the
and economics is crucial not only for building
adequate wealth but also for the sound, long-
Nomura Group is contributing to a sustainable
term development of the capital markets.
tomorrow by investments in young people
Since the 1990s, we have provided financial
through its core businesses as well as its
and economics education for students as
diverse employee-led volunteer activities.
well as adults.
A core focus for our work is to support
Our involvement includes the distribution
educational activities, which vary depending
of textbooks, financial courses for university
on the needs of each region. Employees
students worldwide, employee-led programs
participate in activities such as financial and
for elementary and
junior high school
economics education programs, basic
students, and a stock education contest for
education
in developing countries and
junior and senior high school and university
employment assistance for youth.
students through the Nikkei Stock League.
Initiatives in Japan
Nomura’s
initiatives
in Japan
All told, more than 580,000 students have
taken part in our programs.
focus on
In continuation from the previous year,
financial and economics education programs
in fiscal 2013 we hosted a stakeholder
and the Pacific Music Festival (PMF) aimed at
dialogue session with people from both
developing the next generation. As an integral
inside and outside the Company on the topic
member of the local community, we are also
of how best to utilize financial and economics
committed to various community activities
education in school curriculum.
and to assisting the reconstruction effort
Stakeholder Dialogue
following the Great East Japan Earthquake.
http://www.nomuraholdings.com/csr/dialogue/
sl.html
Financial and Economics Education
Programs
Restoration Assistance Following
the Great East Japan Earthquake
Nomura believes that knowledge of finance
We are assisting the people and communities
affected by the Great East Japan Earthquake
through a number of initiatives. In addition to
our support through our core businesses
(see page 31), our employees have
volunteered to plant cherry trees and carry
out a variety of other rebuilding activities. We
were recognized at the Make a CHANGE Day
for our efforts to host events aimed at
facilitating people to communicate directly
with those working in the affected areas.
Breakdown of community contribution
expenditure
Others
12.6%
Disaster relief
6.5%
Human
rights and
labor
0.2%
Environment
3.4%
Welfare and
health
5.8%
Community
contribution
14.7%
Education
41.2%
Total
¥1.35 billion
Arts, culture
and sports
6.0%
Science and
academic achievement
9.5%
Notes:
1) Total expenditure worldwide (Fiscal 2012)
2) Figures includes:
- Approximately ¥220 million from the Nomura Foundation
- Approximately ¥60 million from the Nomura Charitable Trust
- Approximately ¥10 million from the Nomura America Foundation
Employee volunteers planting cherry trees in spring
2012 (the third time this activity has been organized)
49
Nomura Report 2013
Initiatives around the World
The Nomura Group engages in numerous community affairs activities at its offices around the world. As a member of the local
community, Nomura participates in dialogue with its stakeholders in order to better understand cultural differences and needs, and
actively gets involved through employee-driven activities intended to educate, help local communities and protect the environment.
EMEA
Americas
Instinet
In the EMEA region, our community
contributions are focused towards
helping disadvantaged young people
break through the limitations of their
environment
their
and
aspirations to reach new goals. Our
activities to support these young people
are based on collaborative efforts with
NPOs and other local organizations.
raising
Our program encourages employees to
become involved with monthly initiatives
focused on the local community. Our
educational partnership with Everybody
WINS provides mentoring and literacy
support
local children, allowing
Nomura to focus its efforts on future
generations.
for
A large number of Instinet employees participate
in local initiatives, centered on efforts to assist
young people. Examples include a partnership
with the Make-a-Wish Foundation to assist sick
children, work with Operation Backpack to
provide disadvantaged youngsters with school
supplies, and our high school mentoring efforts
with Elevate New York.
End of the school year celebrations with
our partner primary school, Southwark
Park
Children’s holiday party held in our office
The Elevate students (and the CEO of
Elevate New York, Kevin Singleton, in the
middle) on Instinet's trading floor
Powai, India
employees
Nomura’s Powai CSR program
encourages
to
become involved with initiatives
focused on giving back to our
community. Our partnership with
NGOs helps support
literacy
programs, environmental activities
and health initiatives for the
lesser privileged.
Children and a team of employees
volunteering at one of our partners
Mumbai Mobile Crèches' Day Care
Center
AEJ
NomuraCARES (Nomura Community
Affairs Raising Funds and Employee
Services) is an AEJ network started
by employees based on a desire to
give back to communities in Asia
through philanthropic initiatives focused
primarily on causes that help children,
the elderly and the environment.
Learn more about our relationship with local communities on our corporate website:
http://www.nomuraholdings.com/csr/citizenship/
Over 200 Nomura employees spent a
day
for the Hong Kong Cleanup
Challenge
Nomura Report 2013 50
Our People
51
Nomura Report 2013
Personnel Development
Today,
the Nomura Group’s workforce
Diversity and Inclusion at Nomura
The Nomura Group is committed to fostering
includes employees representing more than
a corporate culture that respects its people’s
70 different nationalities. This diverse pool of
values regardless of background, such as
personnel is our most important asset, and
gender, nationality, age or sexual orientation.
as such, we are committed to providing
education and training programs that will help
Employee Networks
enhance each employee’s competitiveness
Nomura engages
in activities
through
and build teamwork.
networks run independently by its employees.
The Retail Division has been encouraging
A total of three networks, one focused on
the personal growth of its employees through
women in the workplace, one on life and
educational
programs
that
develop
family, and one on generational and cultural
capabilities for independently thinking, acting
differences, disseminate information as well
and delivering results. Group training for the
as plan and
implement events. These
first three years of employment and training
networks also proactively host events jointly
at given milestones (new hire, appointment or
with other companies.
promotion) provide the specific knowledge
and skills required while also reinforcing
personal
qualities
and
strengthening
compliance awareness.
The Wholesale Division offers practical
training to build upon the core skills of
employees and raise the performance of the
entire organization, based on its own set of
needs. Specifically, this includes a program for
improving presentation skills, a program on
communication and coaching to get the most
out of an organization, and leadership training.
Photo taken at the five-company cross-industrial women’s forum
hosted by Women In Nomura (WIN)
Furthermore, we have company-wide
External Networks
programs to support employees in obtaining
The promotion of diversity is shifting from the
licensing or other certifications as well as to
phase in which companies make efforts and
develop their own career path. We are also
innovate on a standalone basis to the phase
helping to build internal networks by enabling
where networks are created
to share
employees
from different divisions and
information and best practices. The Nomura
geographic regions to take part in the same
Group has established a network with more
training programs.
than 30 companies from varying industries
and segments,
through which
it hosts
bimonthly round table meetings to exchange
information on issues related to diversity.
Employee-Friendly Work
Environments
Respecting Human Rights
We have established various mechanisms to
We support working conditions that allow
prevent discrimination and harassment, in
each employee to fully concentrate on their
accordance with the Nomura Group Code of
work in a healthy condition, with both good
Ethics. Specifically, we set up the Nomura
physical and mental health. We have shifted
Group Human Rights Committee to debate
our emphasis
to early discovery and
and determine human rights initiatives as well
intervention. Our
industrial physicians
as to share information across the Group
periodically visit our worksites for health
from its secretariat.
monitoring
and
conduct
face-to-face
In addition, we continue to hold human
interviews with
supervising managers.
rights training for all Nomura people in order
Improvement measures are being introduced
to raise greater awareness about human
to departments with a history of employees
rights issues.
working long hours, and mandatory health
All types of consultation contacts are
examinations are provided for employees
available both within and outside
the
who work extended hours.
company through our Sexual Harassment/
Power Harassment Hotline to help prevent
Mental Healthcare
harassment in the workplace.
To safeguard the mental health of our
employees, we
provide
access
to
psychiatrists and an employee counseling
Making Efforts to Resolve Human Rights
Issues through Multi-Stakeholder Dialogue
room staffed by a dedicated professional. We
As part of our human rights initiatives, we
also offer consultation services provided by
participate in the Human Rights Due Diligence
medical staff at our Health Management
Workshop, which approaches issues through
Center. Furthermore, we are committed to
dialogue with a wide range of stakeholders.
helping employees who have overcome
In 2012, more than 40 companies and more
mental illnesses return to the workplace.
than 10 human rights NGOs gathered to hold
Initiatives in Fiscal 2012
We developed tools to help employees manage their
own mental healthcare needs.
(1) We published basic information on mental health
on our in-house website
(2) We streamed a program on how to deal with stress
on our in-house website
(3) We began conducting stress checks that include a
physician interview on employees working especially
long hours in order to objectively determine the level
of stress these employees are under
discussions on human rights issues that
should be
identified and addressed by
companies. Discussions concerning how we
can review, recognize the importance of, and
address our own human rights issues took
place. Going forward, we will continue to
tackle human rights issues through our
involvement in this workshop.
Learn more about our relationship with employees on our corporate website:
http://www.nomuraholdings.com/csr/citizenship/
Nomura Report 2013 52
Our Environment
Environmental Management
Section 10 of our Code of Ethics states,
Environmental Targets
We set environmental goals for each year and
“Nomura Group is committed to acting in an
closely manage
the progress of our
environmentally
responsible manner and
environmental
preservation
activities.
should therefore approach environmental
Environmental goals are set for each region,
issues positively.” Based on this commitment,
and the Environmental Activities Working
in 2009 we created both our Environmental
Group checks to see if these targets are met.
Statement and Environmental Policy, and are
Moreover, the Head of Environmental Affairs
proactively working
to
reduce
our
reviews activities at the end of each fiscal
environmental impacts.
year to assess the relative achievement of
In Japan, we have established an
environmental goals and ensure continuous
environmental management system (EMS)
improvements are being made.
and
are
implementing
comprehensive
To ensure the effectiveness of the
environmental preservation activities based
group environmental management system,
on a correct awareness of environmental
we conduct an environmental
training
risks and issues. Our offices around the world
program for all Nomura Group employees, in
are also
implementing environmentally
which 91.4% of employees participated in
friendly initiatives, which include our London
Japan in fiscal 2012, and an environmental
headquarters building obtaining ISO 14001
efforts status review, which garnered a 81.4%
certification
in 2007
following an audit
response rate in Japan in fiscal 2012.
performed by a local accreditation body.
Furthermore, we stream information over our
intranet system and host events to raise
environmental awareness.
Fiscal 2012 environmental objectives and progress, fiscal 2013 targets (Japan)
Fiscal 2012 targets
Assessment
Fiscal 2013 targets
Lower CO2 emissions at Nihonbashi head
office to 25% below fiscal 2002 level
Reduced 36.8%
Reduction of
greenhouse gas
emissions
Fuel-efficient, low-pollution vehicles to account
for 80% of fleet
82.0% of vehicles replaced
Reduce CO2 emissions per square meter of
floor area at Nomura Group offices in Japan
by 15% of fiscal 2009 levels
Have fuel-efficient, low-pollution vehicles to
account for 90% of fleet
Raise waste recycling rate at Nihonbashi head
office and Nagoya branch office to 87%
Nihonbashi 89.2%
Nagoya 88.0%
Raise waste recycling rate at Nihonbashi head
office to 90% and Nagoya Branch to 88%
Promotion of
green purchasing
Green products to account for 75% of supplies
request system items
Green products accounted
for 75.7% of purchases
Have green products account for 75% of
supplies request system items
Reduce use of paper per person bought
through supplies request system to 25%
below fiscal 2006 level
Reduced 44.8%
Reduce use of paper per person bought
through supplies request system to 30% below
fiscal 2006 level
Reduction of
paper usage
Increase number of accounts that agree to
accept documents electronically by promoting
electronic receipt of prospectuses
1.26 million accounts
Promote electronic receipt of documents
Reduce use of paper for internal forms by
promoting electronic documentation
196 types of forms digitized on the
application and approval system
(Savings of 110,000 sheets of paper)
Reduce use of paper for internal forms by
promoting electronic documentation of
confirmation forms
Increase the number financial products and
services that help resolve social issues
Expand lineup, including ADB bonds
and JICA bonds
Increase the number of financial products and
services that help resolve social issues
Promulgation of
environmental
business
53
Nomura Report 2013
Efforts to Address Climate Change
The Nomura Group addresses climate
usage we continue to digitize prospectuses,
reports, forms, and other documents.
change from the standpoint of both risk and
In August 2012, we issued tablet
opportunity and recognizes it as an important
devices
featuring digitized sales and
issue to tackle. As a multinational corporation
marketing tools to all of our sales staff in
with offices around the world, we are making
order to enhance the quality of our services
every effort to help resolve climate change
and further reduce paper usage at the same
issues through our business (see pages 31 to
time. In January 2013, we expanded the
34) and to reduce the environmental impacts
range of documents for which electronic
from our own business activities.
distribution will apply for our Nomura Home
We collect and disclose group-wide
Trade service.
environmental information and since fiscal
At our offices, we are working to raise
2011 we have
introduced
third-party
employee awareness of the amount of paper
assurance verifications to ensure the reliability
they use as part of our campaign to reduce
of this information. In each region, we are
paper consumption. Some of our back
addressing the issue of climate change
offices have even become paperless without
through our continued efforts to reduce
a single printer on the floor. Going forward,
power consumption at offices and reduce
we will continue
to reduce our paper
CO2 emissions from employee travel.
consumption and strive to raise awareness
Our purchases of green power
about paper usage across the entire Group.
certificates, which we began domestically in
fiscal 2006, have reached a total of 41.36
million kWh,
including 5.4 million kWh
purchased in fiscal 2012. These certificates
are allocated to seminar events as well as our
Nihonbashi head office and Takanawa
Training Center. Moreover, our offices in
Switzerland and Germany have actively
switched over to renewable energy sources,
such as hydroelectricity.
Going Paperless and Promoting
Recycling
We are making efforts to more effectively use
limited natural resources and reduce our
environmental
impacts
to assist
in
the
creation of a recycling-oriented society. As
part of our commitment to reducing paper
TOPICS
Nomura Selected for Inclusion in the Carbon Disclosure
Leadership Index by the CDP
In November 2012, Nomura Holdings became the only company from
Japan’s financial sector to be selected for inclusion in the Japan 500* Carbon
Disclosure Leadership Index (CDLI). This was based on a survey conducted
by the CDP about climate change strategy and greenhouse gas reduction
efforts that showed Nomura Holdings to be a leader in information disclosure.
Nomura Group has implemented a system to reflect its corporate social
responsibilities in its decision making, business processes and community
affairs activities, based on a strategic recognition of the relationship between
its business activities and society and the environment. Under this system,
we have been disclosing information to the CDP since 2003. Going forward,
we will continue with our environmental
management practices, work together globally,
and proactively disclose information.
* 500 major Japanese companies surveyed by the CDP
Learn more about our environmental initiatives on our corporate website:
http://www.nomuraholdings.com/csr/citizenship/
Nomura Report 2013 54
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 shareholders
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 provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
55
Nomura Report 2013
FY2008/09
FY2009/10
FY2010/11
FY2011/12
¥
306,803
¥
395,083
¥
405,463
¥
347,135
¥
359,069
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)
¥
(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
¥
67,798
¥
28,661
¥
¥
107,234
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
¥ (1,500,770)
(269,643)
2,176,530
964
¥
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
¥
(235,090)
(423,214)
1,284,243
(26,246)
¥
599,693
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
9,942
(844,311)
(6,314)
¥ 32,230,428
¥ 36,692,990
¥ 35,697,312
¥ 37,942,439
¥
290,863
¥
549,501
¥
(549,820)
¥
(265,433)
Millions of yen
FY2012/13
62,353
141,029
367,979
8,053
394,007
38,686
708,767
2,079,943
266,312
1,813,631
547,591
91,388
179,904
91,545
49,010
616,463
1,575,901
237,730
132,039
105,691
(1,543)
¥ 1,652,752
2,629,875
14,115,257
17,124,349
2,420,206
¥ 37,942,439
¥
738,445
2,413,801
15,409,383
8,491,296
978,163
7,592,368
35,623,456
2,294,371
24,612
2,318,983
(160,486)
(701,623)
47,175
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)
Trading assets and private equity investments
Balance Sheets (Period End):
Cash and cash deposits
Loans and receivables
Collateralized agreements
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
Cash Flows:
Total liabilities and equity
Less: Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to NHI shareholders
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
FY2008/09
FY2009/10
FY2010/11
FY2011/12
Millions of yen
FY2012/13
¥
306,803
¥
395,083
¥
405,463
¥
347,135
¥
359,069
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)
¥
(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
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
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
¥
67,798
¥
28,661
¥
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
¥ 1,352,244
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
¥ 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
¥ 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
62,353
141,029
367,979
8,053
394,007
38,686
708,767
2,079,943
266,312
1,813,631
547,591
91,388
179,904
91,545
49,010
616,463
1,575,901
237,730
132,039
105,691
(1,543)
¥
107,234
¥ 1,652,752
2,629,875
14,115,257
17,124,349
2,420,206
¥ 37,942,439
¥
738,445
2,413,801
15,409,383
8,491,296
978,163
7,592,368
35,623,456
2,294,371
24,612
2,318,983
¥ 32,230,428
¥ 36,692,990
¥ 35,697,312
¥ 37,942,439
¥ (1,500,770)
(269,643)
2,176,530
964
¥
407,081
¥
(235,090)
(423,214)
1,284,243
(26,246)
¥
599,693
¥
290,863
¥
549,501
9,942
(844,311)
(6,314)
(160,486)
(701,623)
47,175
¥
(549,820)
¥
(265,433)
Nomura Report 2013 56
Data Section
CSR Key Facts
Corporate Governance
Members of the board
Board of directors
Outside directors
Non-Japanese directors
Female directors
Unit
June 30, 2011
June 30, 2012
June 30, 2013
No. of people
Ratio (%)
No. of people
Ratio (%)
No. of people
Ratio (%)
No. of people
Ratio (%)
14
-
8
57
4
29
1
7
11
-
7
64
3
27
1
9
11
-
6
54
3
27
1
9
Unit
April 1, 2011
April 1, 2012
April 1, 2013
Officers (Executive Officers and Senior Managing Directors)
Men
Women
Ratio of women
No. of people
No. of people
%
30
1
3.2
41
2
4.6
23
2
8
Board of directors meetings
No. of times held
Average attendance rate
Client Focused
Unit
FY2010/11
FY2011/12
FY2012/13
No. of times
%
10
96
10
95
11
97
Unit
FY2010/11
FY2011/12
FY2012/13
Caseload at Customer Help Desk Department (Retail Division)
Total
Complaints
Inquiries
Opinions and requests
Other
No. of cases
No. of cases
No. of cases
No. of cases
No. of cases
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)
No. of branch offices
No. of branch offices
No. of branch offices
No. of branch offices
No. of branch offices
5,189
2,359
2,408
256
166
30
78
53
136
15
5,005
3,012
1,836
13
144
30
80
54
140
14
5,693
3,409
2,119
23
142
30
81
57
139
13
Results for survey of customer satisfaction with branch office service (Retail Division)
Unit
June 1, 2012
September 1, 2012
Extremely satisfied/satisfied
Neither satisfied nor dissatisfied
Extremely dissatisfied/dissatisfied
Note: These surveys were conducted at 126 branch offices.
%
%
%
76.6
20.0
3.4
77.0
19.1
3.9
57
Nomura Report 2013
Unit
FY2010/11
FY2011/12
FY2012/13
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
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Amount (Millions of yen)
Ratio (%)
Number of community development projects implemented
Total
Japan
EMEA
Americas
AEJ
No. of projects
No. of projects
No. of projects
No. of projects
No. of projects
Assistance provided to groups that contribute to society
No. of groups assisted
No. of groups
1,400
-
623
44.5
71
5.0
162
11.6
138
9.8
55
3.9
25
1.8
27
1.9
121
8.6
182
13.0
173
40
83
31
19
200
1,235
-
582
47.1
106
8.6
83
6.7
200
16.1
49
3.9
43
3.4
3
0.2
71
5.7
103
8.3
370
27
196
107
40
243
1,348
-
556
41.2
81
6.0
129
9.5
199
14.7
79
5.8
47
3.4
4
0.2
88
6.5
171
12.6
423
24
195
151
53
274
Unit
FY2011/12
FY2012/13
Cumulative total
Participants and materials in financial and economics education
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, teachers)
Nikkei Stock League
Since 2008
Since 2006
Since 2008
Since 2000
Finance courses for universities
Since 2001
Financial courses for the general
public
Since 2003
No. of schools
No. of copies
No. of schools
No. of copies
No. of classes
No. of participants
No. of teams
No. of members
No. of schools
No. of participants
No. of courses
No. of participants
120
5,000
180
17,200
22
1,087
1,420
5,741
115
12,000
536
27,839
396
17,422
387
17,326
31
1,865
1,287
5,120
114
11,000
444
21,696
2,716
222,422
4,267
414,526
106
6,172
20,226
80,613
1,328
184,000
6,037
317,157
Nomura Report 2013 58
Unit
FY2010/11
FY2011/12
FY2012/13
Data Section
CSR Key Facts
Our People
Education and training expenses
Total
Japan
EMEA
Americas
AEJ
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Participation in education and training (in-house training)
Total
Japan
EMEA
Americas
AEJ
Number of employees
Total
Japan
EMEA
Americas
AEJ
Aggregate no. of hours
Aggregate no. of participants
Aggregate no. of hours
Aggregate no. of participants
Aggregate no. of hours
Aggregate no. of participants
Aggregate no. of hours
Aggregate no. of participants
Aggregate no. of hours
Aggregate no. of participants
No. of employees
Ratio of male employees (%)
Ratio of female employees (%)
No. of employees
Ratio of male employees (%)
Ratio of female employees (%)
No. of employees
Ratio of male employees (%)
Ratio of female employees (%)
No. of employees
Ratio of male employees (%)
Ratio of female employees (%)
No. of employees
Ratio of male employees (%)
Ratio of female employees (%)
Ratio of employees by region
Total
Japan
EMEA
Americas
AEJ
%
%
%
%
%
2,455
1,573
489
257
136
272,528
13,146
207,458
8,255
3,790
407
-
-
61,280
4,484
26,871
62
38
14,918
56
44
4,353
70
30
2,348
74
26
5,252
68
32
100
55
16
9
20
2,033
1,468
133
280
153
225,184
21,928
169,385
11,965
2,766
977
7,390
1,182
45,643
7,804
27,168
62
38
15,145
56
44
4,014
70
30
2,420
74
26
5,589
66
34
100
56
15
9
20
2,441
1,907
108
233
193
254,117
22,048
208,087
12,081
1,732
647
7,204
1,794
37,094
7,526
26,242
62
38
15,004
57
43
3,618
70
30
2,271
74
26
5,349
65
35
100
57
14
9
20
Composition by employment contract (Japan)
Full-time regular employment
Part-time regular employment
No. of employees
No. of employees
14,918
788
15,145
766
15,004
606
59
Nomura Report 2013
Unit
FY2010/11
FY2011/12
FY2012/13
Number of new hires
Total
Japan
EMEA
Americas
AEJ
Composition of managers
Total
Japan (Nomura Holdings, Nomura
Securities)
EMEA
Americas
AEJ
No. of employees
No. of employees
No. of employees
No. of employees
No. of employees
Men
Women
Ratio of women (%)
Men
Women
Ratio of women (%)
Men
Women
Ratio of women (%)
Men
Women
Ratio of women (%)
Men
Women
Ratio of women (%)
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
No. of employees
No. of employees
No. of employees
No. of employees
No. of employees
No. of employees
No. of employees
No. of employees
Post-childcare leave reinstatement and retention rates (Nomura Securities)
Reinstatement rate
Retention rate
Men (%)
Women (%)
Men (%)
Women (%)
Human rights training (Nomura Securities)
3,634
990
754
638
1,252
6,643
898
12
3,474
173
5
1,553
317
17
786
159
17
830
249
23
233
338
435
104
332
13
0
30
100
96
100
95
3,280
989
663
478
1,150
7,299
1,064
13
3,623
205
5
1,693
325
16
1,060
243
19
923
291
24
237
367
478
148
365
6
0
33
100
99
100
98
2,465
938
307
361
859
7,024
1,055
13
3,549
219
6
1,557
315
17
1,016
234
19
902
287
24
249
392
529
175
390
11
2
43
100
98
50
98
Sessions
Participants
No. of sessions
No. of participants
32
13,827
20
9,823
16
14,129
Status of other personnel and labor-related issues
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)
%
No. of employees
%
days
%
5
713
1.86
9.7
53.8
6
763
2.00
9.9
52.8
Thousands of yen
10,869
10,660
7
727
2.02
10.0
53.0
9,990
Nomura Report 2013 60
Data Section
CSR Key Facts
Our Environment
Environmental performance
Unit
FY2010/11
FY2011/12
FY2012/13
CO2 emissions*1
CO2 emissions per
employee
Electricity
consumption*2
Fuel consumption*2
Purchased amount
of Green Power*3
CO2 emissions
from employee
travel*4
Water
consumption*5
Copy paper
consumption*6
Amount of waste
generated*7
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Nomura Group companies in Japan
Nomura Group companies in EMEA
Nomura Group companies in AEJ
Nomura Group companies in
Americas
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Main American offices
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
Nomura Group companies in Japan
Main EMEA offices
Main AEJ offices
tons-CO2
tons-CO2
tons-CO2
tons-CO2
tons-CO2/FTE
tons-CO2/FTE
tons-CO2/FTE
tons-CO2/FTE
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
tons-CO2
tons-CO2
tons-CO2
tons-CO2
thousand m3
thousand m3
thousand m3
thousand m3
ton
ton
ton
ton
ton
ton
44,626
23,664
16,917
-
3.0
6.4
1.8
-
89,674
47,830
17,813
-
14,275
6,783
406
-
5,900
12,407
-
2,595
-
204
101
36
-
726
-
-
1,078
-
372
36,588
22,927
23,899
15,018
2.4
6.9
4.9
6.2
74,648
50,091
27,474
23,197
12,664
6,981
272
0
7,424
18,505
9,446
11,883
6,060
188
136
33
4
701
90
134
945
-
278
41,215
18,159
23,966
14,720
2.7
6.2
5.3
6.5
74,249
38,679
28,012
22,665
11,948
7,025
800
0
6,329
17,919
9,728
11,057
5,124
178
124
159
4
654
78
92
884
722
297
*1 Totals for our main AEJ offices only included the India office in fiscal 2010.
Data for fiscal 2011 was revised by expanding the scope of aggregation (the same applies to electricity and fuel consumption). Data for our main EMEA offices was revised as follows.
(1) The data for fiscal 2010 and fiscal 2011 was revised by changing the CO2 emissions factor applied to the London office.
(2) The data for fiscal 2010 was revised by refining the scope of inclusion.
Calculation of CO2 emissions is based on electricity, fuel and heat consumption. See http://www.nomuraholdings.com/csr/data for details about the emissions factors applied.
*2 Totals for our main AEJ offices only included the India office in fiscal 2010.
*3 In fiscal 2010, data applied only to the Nomura Group companies in Japan. From fiscal 2011, however, in addition to the Nomura Group companies in Japan, the Frankfurt and Zurich
offices from our main EMEA offices are included in the totals.
*4 Data compiled on domestic and international flights and long-distance railway transportation tickets purchased through designated firms. Totals for the Nomura Group companies in AEJ
only included the India office in fiscal 2010. Data for regular automobile usage by the Nomura Group companies in Japan, the Nomura Group companies in EMEA and by our India office
out of the Nomura Group companies in AEJ is also included in the tally. Fiscal 2011 data for the Nomura Group companies in Japan was revised by refining the method of aggregation.
See http://www.nomuraholdings.com/csr/data for details about the emissions factors applied.
*5 Totals for our main EMEA offices only included the London office in fiscal 2010. Totals for our main AEJ offices only applied to the India office in fiscal 2010 and fiscal 2011.
*6 Totals for the Nomura Group in Japan include items purchased through designated firms by Nomura Securities. Totals for our main EMEA offices include the London office, and totals for
our main AEJ offices include the India office.
*7 Of the Nomura Group companies in Japan, totals include Nomura Securities Nihonbashi Head Office building, the Dai-ni Edobashi Building, the Osaka Branch, and the Nagoya Branch.
Of our main EMEA offices, totals include the London, Paris, Frankfurt, and Zurich offices. Of our main AEJ offices, totals include the India office. Fiscal 2010 and fiscal 2011 data for the
Nomura Group companies in Japan was revised by expanding the scope of aggregation.
Of our main AEJ offices, the fiscal 2012 data for our Hong Kong and Singapore offices is as follows.
- CO2 emissions: 6,175 tons-CO2
- CO2 emissions per employee: 4.7 tons-CO2
- Electricity consumption: 9.420MWh
- Fuel consumption: 0MWh
- CO2 emissions from employee travel: 6,077 tons-CO2
- Water consumption: 493m3
Our main EMEA offices are located in London, Paris, Frankfurt, Zurich, Madrid , and Milan .
Our main AEJ offices are located in Hong Kong, Singapore, India, and Dalian in China.
Our main American offices are located in New York and include INSTINET offices.
Offices to which the scope of aggregation was expanded.
61
Nomura Report 2013
Independent Assurance on Environmental Reporting
Nomura Report 2013 62
Data Section
Global Network
Major
Subsidiaries
and Affiliates Europe
Retail
Asia-Pacific
Japan
Americas
• Nomura Securities Co., Ltd.
• Nomura Healthcare Co., Ltd.
• Nomura Agri Planning &
Advisory Co., Ltd.
• Nomura Farm Co., Ltd.
• Nomura Asset Management
• Nomura Asset Management
• Nomura Asset Management
• Nomura Asset Management
U.K. Limited
• Nomura Asset Management
Deutschland KAG mbH
Hong Kong LTD.
Offices: Hong Kong, Shanghai
• Nomura Asset Management
Singapore LTD.
• Nomura Funds Research
and Technologies Co., Ltd.
• Nomura Private Equity
Co., Ltd.
USA Inc.
• Nomura Global Alpha LLC
• Nomura Corporate
Research and Asset
Management Inc.
• Nomura Funds Research and
Technologies America, Inc.
• Nomura Asset Management
Capital Co., Ltd.
Malaysia Sdn. Bhd.
• Nomura Islamic Asset
Management Sdn.Bhd.
• Nomura Asset Management
Australia Pty LTD.
• Nomura Europe Holdings
PLC
• Nomura Asia Holding N.V.
• Nomura International (Hong
• Nomura Securities Co., Ltd.
• Nomura Capital Investment
• Nomura Holding America Inc.
Offices: New York, Washington, D.C.
Co., Ltd.
• Nomura International PLC
Offices: London, Frankfurt,
Helsinki, Madrid, Milan,
Stockholm, Vienna, Doha, Dubai
• Banque Nomura France
• Nomura Bank (Switzerland)
Ltd.
• Nomura Nederland N.V.
• Nomura Bank International
PLC
Offices: London, Milan, Labuan
Kong) LIMITED
Offices: Hong Kong, Hanoi, Taipei
• Nomura Australia LIMITED
• Nomura Financial Advisory
and Securities (India) Private
Limited
• Nomura Financial
Investment (Korea) Co. Ltd.
• Nomura Malaysia Sdn. Bhd.
• Nomura Singapore LIMITED
• P.T. Nomura Indonesia
Other office locations
Dublin, Warszawa, Bahrain
Other office locations
Beijing, Shanghai, Manila, Powai
• Nomura Securities
International, Inc.
Offices: New York, Atlanta,
Boston, Chicago, Houston,
Miami, San Francisco, Toronto,
São Paulo
• INSTINET Incorporated
Asset
Management
Wholesale*1
Others
• The Nomura Trust & Banking Co., Ltd. • Nomura Investor Relations Co., Ltd. • Nomura Babcock & Brown Co., Ltd.
• Nomura Research & Advisory Co., Ltd. • Nomura Business Services Co., Ltd. • Nomura Facilities, Inc.
• Nomura Institute of Capital Markets Research • Nomura Financial Products & Services, Inc. • Nomura Land and Building Co., Ltd.
• Nomura Bank (Luxembourg) S.A. • Nomura Information Technology (Dalian) Co., Ltd • Nomura Research Institute, Ltd.*2
• JAFCO Co., Ltd.*2 • Nomura Real Estate Holdings, Inc.*2 • Capital Nomura Securities Public Company Limited*2
*1 Subsidiaries and offices involved primarily in Wholesale related businesses.
*2 Affiliated companies accounted for by the equity method
63
Nomura Report 2013
Nomura Securities Domestic Network
(As of August 1, 2013)
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 (40 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
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 Office
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 2013 64
Data Section
Corporate Data
Corporate Data
Company name
Nomura Holdings, Inc.
Paid-in capital
¥594.5 billion (As of March 31, 2013)
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, 2013)
Listing
The common shares of Nomura Holdings, Inc. are listed on the
Tokyo, 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 represents one share of common stock. (As of March 31, 2013)
Securities code
8604 (Tokyo Stock Exchange)
NMR (New York Stock Exchange)
Number of shareholders
482,935 (Unit shareholders: 459,985) (As of March 31, 2013)
Major shareholders (Top 10)
Names of shareholders
Number of
shares
Percentage
(rounded to
two decimal
places)
Japan Trustee Services Bank, Ltd. (Trust Account)
181,118,532
4.74%
The Master Trust Bank of Japan, Ltd. (Trust Account)
143,236,500
3.75%
SSBT OD05 Omnibus Account Treaty Clients
92,515,219
2.42%
CACEIS BANK FRANCE,ORDINARY ACCOUNT
62,518,270
1.64%
Japan Trustee Services Bank, Ltd. (Trust Account 9)
38,988,900
1.02%
State Street Bank and Trust Company 505225
38,865,003
1.02%
Head office
1-9-1, Nihonbashi, Chuo-ku, Tokyo
103-8645, Japan
Group employees 27,956 (As of March 31, 2013)
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
The Chase Manhattan Bank, N.A. London S.L.Omnibus
Account
37,287,773
0.98%
3/2009
3/2010
3/2011
3/2012
3/2013
Japan Trustee Services Bank, Ltd. (Trust Account 1)
37,005,700
0.97%
Nomura Group Employee’s Stock Ownership Association
36,573,507
0.96%
Northern Trust Company (AVFC) Sub-account American Client 36,448,600
0.95%
Note: The Company has 108,435,696 shares (2.84%) of treasury stock as of March 31, 2013,
which is not included in the major shareholders list above.
Date of record for
dividend payments
Second quarter
Year-end
September 30
March 31
Other
Credit rating
Standard & Poor’s
Moody’s Investors Service
R&I
JCR
Note: As of May 31, 2013
65
Nomura Report 2013
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/
The Nomura Group strives to make its corporate
website broadly accessible by eliminating troubles
people may have in accessing information and
services due to visual, hearing, speech or other
physical impairments.
http://www.nomuraholdings.com/policy/acresult.html
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
pertaining 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 2013 66