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The start of a new future
Nomura Holdings, Inc.
Nomura Report 2016
This report was produced
using non VOC inks.
All electricity to print this
booklet was generated by
green energy. (3,932 kWh)
About the Cover Photo
To visually express the title of this report, “The start
of a new future” the cover photograph captures
the stillness of the morning air as the sun rises
behind our Nihonbashi Head Office building. The
photograph evokes our determination to embark
on a new future as we celebrate our 90th founding
anniversary and look back on 90 years in the
securities business.
Printed in Japan
N
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About Nomura Report 2016
< Additional Information > Please visit the Nomura websites if you require more detailed information than has been included in this Nomura Report.
In FY2012/13, 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 integrated report helps readers gain a broader understanding
of our activities to support sustainable development and aim to grow and develop
together with our stakeholders, including our clients and shareholders, as Asia’s
global investment bank.
Forward-Looking Statements
This Nomura Report contains forward-looking statements about the future plans, strategies, beliefs,
and performance of Nomura Group. These forward-looking statements are not historical facts. They
are expectations, estimates, forecasts, and projections based on information currently available to
the Company and are subject to a number of risks, uncertainties, and assumptions, which, without
limitation, include market trends, economic trends, competition in the financial industry, laws and
regulations, and tax systems. As such, actual results may differ materially from those projected.
P. 2 〜
P. 12 〜
P. 17 〜
Nomura
Today
Leadership
Actions for
Shaping Our Future
A look at the current state of
Nomura Group.
Insights into management’s
thinking and the current status of
the Executive Officers and Senior
Managing Directors.
Message from
the Group CEO
Executive Officers and
Senior Managing Directors
12
16
Nomura Today
Financial and
Non-Financial Highlights
The Principles Established
by Nomura’s Founder and
the Current Corporate
Culture
Nomura Group
Businesses Underpin
Our Founder’s Principles
2
4
6
8
At a Glance /
Business Segments
10
Based on our philosophy of “placing our clients
at the heart of everything we do,” Nomura
Group continues to innovate and take up
new challenges to drive sustainable growth,
along with undertaking a variety of activities to
fulfill our corporate social responsibility (CSR).
We hope that this section will increase your
understanding of these and other actions.
Message from
the Group COO
Shaping Our Future with
Actions in Each Division
18
20
Actions Across the Regions 28
Advisory Board
Directors
Outside Director’s
Message
31
34
37
• Nomura Holdings Website
http://www.nomura.com/
• CSR Website
• Investor Relations Website
http://www.nomuraholdings.com/csr/
http://www.nomuraholdings.com/investor/
Basic Information in the Report
Period Covered
Entities Covered
Reference Guidelines
April 1, 2015 to March 31, 2016
(Some content may be outside this time frame.)
Nomura Holdings, Inc. and its major subsidiaries
and affiliates
http://www.nomuraholdings.com/company/group/
Numerical data are presented alongside infor-
mation on the scope of companies covered.
• Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI)
This report contains information regarding the standard disclosure
items contained in the fourth edition of the GRI Sustainability Reporting
Guidelines. Please access the following URL on our corporate website for
our GRI Guidelines Index.
http://www.nomuraholdings.com/csr/gri/index.html
• Environmental Reporting Guidelines (2012 Version) of Japan’s Ministry of
the Environment
• Charter of Corporate Behavior of Keidanren
P. 63 〜
Performance Review &
Data Section
In this section, we present the basic information needed to under-
stand Nomura Group, beginning with our performance history,
in addition to our Company-wide and business segment results
for the fiscal year ended March 31, 2016 and Nomura Holdings’
financial strategies.
Corporate Governance
Compliance
Risk Management
CSR Management
Contributing to Sound and
Sustainable Capital Markets
39
45
48
50
52
Contributing to Sustainable
Communities
54
Fostering Human Resources
with a Respect for Diversity
Our Environment
58
61
Key Financial Data
Message from the CFO
Performance Review of
Divisions
Eight-Year Consolidated
Financial Summary
(US GAAP)
64
66
69
72
CSR Key Facts
Independent Assurance
History
Global Network
Nomura Securities
Domestic Network
74
78
79
80
81
Share Data / Credit Rating
82
Corporate Data
83
1
Nomura Report 2016 Nomura Today
Overview of Nomura Group
Presence of Nomura Group
Nomura Group is Asia’s global investment bank with an integrated network spanning over 30 countries and
regions. By connecting markets East and West, we service the needs of individuals, institutions, corporates
and governments through our three business divisions: Retail, Asset Management, and Wholesale (Global
Markets and Investment Banking).
Nomura Holdings
Retail Division
Asset Management
Division
Wholesale Division
Wealth
Management
Global
Markets
Investment
Banking
(1,214 consolidated subsidiaries and consolidated variable interest entities as of March 31, 2016)
Assessments from Third Parties
Inclusion in SRI Indices
Nomura’s CSR initiatives and environment, social,
and governance (ESG) information disclosure
practices have been widely recognized outside the
Company. Nomura Holdings has been selected for
inclusion in the Dow Jones Sustainability Indices,
the FTSE4Good Index, and, as of January 2016,
• Dow Jones Sustainability Indices
The world’s first sustainability equity indices,
Dow Jones & Company and RobecoSAM,
jointly choose the companies to be included
in these benchmarks
• FTSE4Good Index
FTSE, a subsidiary of the London Stock
exchange, has created a socially responsible
investment index by selecting excellent
companies from around the world
the Morningstar Socially Responsible Investment
• MS-SRI
Index (MS-SRI), all of which are socially responsible
investment (SRI) indexes. Furthermore, in November
2015, Nomura was selected for inclusion in “100
Morningstar, Inc. selected 150 companies
that were assessed as excellent socially aware
companies from among companies listed in Japan,
and created Japan’s first socially responsible
investment index by indexing their stock prices
Most Sustainable Companies in Asia” announced by
Channel NewsAsia, the CSR think-tank CSR Asia,
and the ESG assessment organization Sustainalytics.
• 100 Most Sustainable Companies in Asia
Channel NewsAsia and other ESG organizations
rank companies in Asia with the best ESG
indicators
Credit Rating
Nomura Securities, which is the core operating
Rating and Investment
Information, Inc. (R&I)
A+
Standard & Poor's
A–
company within Nomura Group, has received ratings
of A rank or higher from five Japanese and overseas
Japan Credit Rating
Agency, Ltd. (JCR)
AA–
Fitch Ratings
A–
rating agencies.
Moody's
A3
(As of June 30, 2016)
Group-wide
28,865
Number of employees
As of March 31, 2016, 28,865 employees were
working in Nomura Group in Japan and the
rest of the world. Of these, 44% were working
outside Japan.
More than 70 countries
Number of nationalities
among Group personnel
Executives and employees working in
Nomura Group are citizens of more than 70
countries. The goal of the Group is to create
a corporate culture where staff with diversified
backgrounds can mutually respect each
other’s values and work together.
Retail
Division
¥100.6 trillion
159 branches
Retail client assets
Retail client assets, a sign of the trust placed
in us by our clients, was ¥100.6 trillion as of
March 31, 2016. This was twice the size of the
balance of client assets of the second largest
company, which was ¥51.0 trillion.
Number of Nomura Securities Branches
in Japan
Through 159 branches nationwide, Nomura
Securities provides meticulous products and
services that suit each individual client’s needs.
Asset
Management
Division
¥40.1trillion
Assets under management
The total balance of assets, including
investment trusts and exchange-traded funds,
from Japanese and overseas individual and
institutional investors that have been entrusted
to us for management as of March 31, 2016
was ¥40.1 trillion.
24.8 %
Share of public investment trust market
in Japan
Nomura Asset Management’s share of the
public investment trust market in Japan was
24.8%. We are maintaining our leadership,
by far outstripping the second largest asset
management company in Japan, which has a
14.5% share. (Source: The Investment Trusts
Association, Japan)
Wholesale
Division
63.1%
64.0 %
Percentage of Japanese listed companies
which name Nomura as lead / deputy underwriter
Percentage of revenues from overseas
Over the years, Nomura Group has built a
relationship of trust with its clients. We have
been named as the lead underwriter by 38.8%
of Japanese listed companies and 63.1% of
Japanese listed companies, including roles as
deputy underwriter (on a market capitalization
basis). We support a wide range of clients as
regards their financing and financial affairs.
Wholesale revenues for the fiscal year ended
March 31, 2016 totaled ¥720.3 billion, of
which 64.0% was contributed from overseas.
Through a network covering more than 30
countries and regions, we offer global products
and services to a wide range of clients.
2
3
Nomura Report 2016Nomura Report 2016Nomura Today Financial and Non-Financial Highlights
Net revenue
Income before income taxes, Net income*
Members of the board
2,000
1,500
1,000
500
0
(Yen)
80
60
40
20
0
(Billions of yen)
(Billions of yen)
1,814
1,536
1,557
1,604
1,396
2012
2013
2014
2015
2016
(Fiscal years ended March)
400
300
200
100
0
225
214
107
132
12
2012
2013
2014
2015
2016
(Fiscal years ended March)
■ Income before income taxes
* Net income attributable to Nomura Holdings shareholders.
Net income*
EPS*
60.03
55.81
28.37
35.52
3.14
2012
2013
2014
2015
2016
(%)
10
8
6
4
2
0
ROE
8.9
8.6
4.9
0.6
4.9
2012
2013
2014
2015
2016
(Fiscal years ended March)
(Fiscal years ended March)
* Diluted net income attributable to Nomura Holdings shareholders per share.
Percentage of
Outside Directors
55%
Percentage of
non-Japanese Directors
27%
Number of
Outside
Directors
6 of 11
Number of
non-Japanese
Directors
3 of 11
(End of June 2016)
(End of June 2016)
Women in managerial positions
Ratio of employees by region
(Employees)
1,500
1,000
500
0
16
15
13
13
13
2012
2013
2014
2015
2016
(%)
20
15
10
5
0
(%)
100
80
60
40
20
0
20
9
15
20
9
14
20
9
13
23
9
12
24
8
12
56
57
58
56
56
2012
2013
2014
2015
2016
■ Number of women in managerial positions (lhs)
Percentage of women in managerial positions (rhs)
■ Japan ■ EMEA ■ Americas ■ AEJ
(End of March)
(End of March)
Total assets
RWA, Tier 1 capital ratio*
Education and training expenses
Social contribution-type bonds
(Trillions of yen)
50
40
30
20
10
0
43.5
41.8
41.1
35.7
37.9
2012
2013
2014
2015
2016
(Billions of yen)
20,000
15,000
10,000
5,000
0
16.1
14.2
13.2
11.9
12.9
2012
2013
2014
2015
2016
(%)
20
15
10
5
0
2,972
2,880
(Millions of yen)
200,000
24
(Millions of yen)
3,000
2,033
2,000
2,441
2,515
1,000
0
2012
2013
2014
2015
2016
150,000
19
100,000
14
11
50,000
0
2013
2014
2015
2016
(Bonds)
25
20
15
10
5
0
(End of March)
(End of March)
(Fiscal years ended March)
(Fiscal years ended March)
■■ RWA (lhs) ■
* Figures for March 2012 were prepared under Basel 2.5 standards.
Tier 1 capital ratio* (rhs)
Figures for March 2013 to March 2016 were prepared under Basel 3
standards.
■ Proceeds (lhs)
Bonds issued (rhs)
4
Nomura Report 2016
5
Nomura Report 2016Nomura Today
The Principles Established by
Nomura’s Founder and
the Current Corporate Culture
Our Founder's Principles Are
the Cornerstone of Our Business Activities
Ten principles set out by our founder
We remain committed to enriching society by delivering superior services and
solutions to our clients that meet all their investment needs. This has been our
unwavering spirit since our founding. It is our social mission and our raison d’être.
Our History & Founder's Principles
http://www.nomuraholdings.com/company/basic/
Founder Tokushichi Nomura
1. Nomura’s raison d’être
“Nomura’s mission is to enrich the nation through the securities business. This is something
we must absolutely see though.”
2. Principle of putting the customer first
“We must place our customers’ interests before our own.”
3. Global ambition
“Nomura is destined to become an active player on the international stage.”
4. Emphasis on rigorous research and analysis
“We have a duty to research scientifically the intrinsic nature of all securities.”
5. Staying one step ahead
“Always strive to stay one step ahead. Standing still is retrogressive.”
6. Entrepreneurial spirit
“If, as an entrepreneur, you can determine something to a 70% certitude, you must have the
courage to take up the challenge even though some uncertainty remains.”
7. Human resources
“Nomura underscores the fact that the development of human resources, acquisition of
talented personnel and ability to match the right talent with the most appropriate position are
more formidable assets than sheer capital strength.”
8. Emphasis on team work
“It is the management’s task to see that Nomura employees take responsibility and pride in
their work and to form a unified team under the control of branch office managers.”
9. Business development frame of mind
“We must have the courage to boldly follow the path of our convictions.”
10. Customer service mindset
“If you conduct your work in a mechanical manner, believing simply that your role is over once
the deal is done, there is no use in drawing on the strengths of those around you.”
Carrying Forward Our Founder’s Principles
To this day, Nomura Group employees draw on the ten principles handed down from the founder for
inspiration in their business activities. We introduce some examples of the principles here.
5. Staying one step ahead
7. Human resources
Shohei Goto
Deputy Manager Financial Consulting
Section, Namba Branch,
Nomura Securities Co., Ltd.
Philipp de Cassan
Managing Director,
Head of Euro Flow Rates Trading,
Nomura International plc
I make comprehensive proposals on business succession,
reorganization and M&As to corporate customers, as well
as inheritance strategies for individual customers. Through
counseling customers, I try to find out their various needs
such as a real estate transaction or an M&A. I then work
with our specialized Head Office departments and affiliate
companies to come up with forward-looking solutions.
When a certain customer was having difficulty trying to
sell an apartment building, we went a step further to
propose the sale of the corporation that nominally owned
the building instead. As a result, the customer invested
the proceeds to other financial products through us. The
customer was very pleased and surprised by the reach of
our financial consulting services. Apart from our investment
capabilities, I also draw on the Group’s organizational
strengths to come up with new ideas for customers.
Here at Nomura in London, I oversee our group’s risk
and trading decisions, where we show liquidity in
financial assets to our clients from across Nomura's
broad franchise. We are always working very closely
with our international client base, in order to help them
achieve the best possible outcome for their investment
or hedging needs. We constantly strive to come up
with innovative and strategic solutions for our clients,
often working closely with our colleagues in Asia. This
approach ensures that our clients know that we are
fully committed to delivering best-in-class solutions for
them and reinforces how we are linking markets East
and West.
8. Emphasis on team work
10. Customer service mindset
Keishi Nobukuni
Deputy Head, Equity Capital Markets
Dept./Capital Markets Dept.,
Nomura Securities Co., Ltd.
Mizuho Sugiura
Deputy Manager Financial Consulting
Section, Okazaki Branch,
Nomura Securities Co., Ltd.
In 2015, three companies of the Japan Post Group
held their initial public offering (IPO) at once. To guide
this IPO to success in coordination with the client and
many divisions within the Company, it was important
for each member of the team to demonstrate their
abilities as a professional. To make sure that we
maintained smooth interaction between all parts of
the project, we strove to keep the team organization
compact so as to remain in close communication with
the client and to centralize the management of the
IPO. We had to take on many initiatives for the first
time, including a briefing for individual investors at 12
locations throughout Japan, but the Company worked
together as a team to make the project a success.
To further the depth of our customer consultations,
we are using tools developed by the Company to run
lifelong financial planning and inheritance simulations
and make tailored proposals. In the process, we
often listen to the daily worries of our customers in
addition to their asset management needs. My job
is to suggest the best products in anticipation of
changes in the market. But I also think that it’s my
job to understand what customers plan to do with
their lives and what they’re trying to accomplish with
their investments. I’m always ready to listen because
I want to be of assistance when customers are willing
to open up their hearts.
6
Nomura Report 2016
7
Nomura Report 2016Nomura Today Nomura Group Businesses Underpin
Our Founder’s Principles
Based on our philosophy of “placing our clients at the heart of everything we do,”
Nomura Group leverages our high-quality management resources to develop creative
solutions for our stakeholders. We deliver value-added services to our clients through our
core businesses while also engaging in key CSR initiatives that will help Nomura establish
a solid position as Asia’s global investment bank.
Input
Management
resources
Financial capital
• Robust financial position
• Efficient allocation of
management resources
Human capital
• Diversified talents
• High sense of ethics
and professional and
social norms
Intellectual capital
• Knowledge of financial
products
• High-quality research
Social capital
• Mission to provide
products and services
to the public markets
Wide range of stakeholders
Shareholders
and
investors
Governments
and central
banks
Environment
Clients
Creditors
Suppliers
Employees
Capital exchange, payment for services,
constructive dialogue, etc.
Deliver value through core
business functions
Community
Provide creative
solutions
Sales of
secondary
products
Underwriting, syndi-
cation and distribution
of primary deals and
M&A advisory
Asset
management
and investment
advisory services
Provide
liquidity
Retail
Asset
Management
Collaborate across
divisions and regions
Wholesale
Corporate
governance
Nurture human
resources with
a respect for
diversity
Compliance
Dialogue with
stakeholders
Risk
management
Contribute to sound
and sustainable
capital markets
Key CSR Initiatives of Nomura Group
Looking Ahead
Establish solid
position as
“Asia’s global
investment bank”
Create value
required by
our global
stakeholders
Output
Value creation
Economic value
• Deliver stable profitability
• FY2019/20 management target:
EPS of ¥100
• Invest in areas of growth and
generate appropriate shareholder
returns
Corporate value,
brand-building
• Win clients’ trust
• Develop a unique corporate
culture
Added value,
innovative services
• Deliver competitive products,
services and solutions
• Create financial innovation
Social value
• Contribute to society through our
core businesses
• Coexist and coprosper with
regional societies
8
9
Nomura Report 2016Nomura Report 2016Nomura Today At a Glance / Business Segments
Retail
Retail Division provides a broad range of
financial products and services through its
head office and its nationwide network of 159
branches, as well as Nomura Net & Call (online-
based platform and call centers), to individual
and corporate clients. Nomura also develops
its Wealth Management Business in Japan and
Asia ex-Japan.
Highlights
Nomura Securities 22.7%
5,389 thousand accounts
Income before
income taxes:
¥127.6 billion
Retail client assets:
¥100.6 trillion
Number of
branches:
159
All accounts held at
securities companies
in Japan:
23,737
thousand accounts
Source: Japan Securities
Dealers Association
Asset Management
Asset Management Division operates globally, with
Nomura Asset Management playing a central role.
Investment trusts business offers a wide lineup of
products through a broad range of channels such as
securities companies (including Nomura Securities),
banks, post offices and insurance companies.
Investment advisory and overseas business provide
high-quality products and asset management services
to a broad spectrum of institutional investors, including
pension funds in Japan and overseas, government
organizations, central banks, commercial banks and
insurance companies.
Income before
income taxes:
¥36.7 billion
Assets under
management:
¥40.1 trillion
Nomura Asset Management
24.8%
¥23.0 trillion
Total net assets of
publicly offered
investment trusts
in Japan:
¥92.4 trillion
Share of ETFs in Japan:
48%
(Source: The Investment Trusts
Association, Japan)
Source: The Investment Trusts
Association, Japan
Wholesale
Wholesale Division consists of two businesses:
Global Markets providing financial products and
solutions and secondary market liquidity, and
Investment Banking offering capital-raising transac-
tions and advisory services.
Nomura Group provides diverse services to
a broad range of clients including corporates,
government entities and financial institutions in
Japan and overseas.
Income before
income taxes:
¥15.4 billion
Countries possessing
the Primary Dealer
qualification
World's major
markets
15 countries
Nomura
27.9%
Ranked No.1
Total transactions
of the Japan ECM
League Table:
$ 45.1 billion
(April 2015 to March 2016)
Source: Thomson Reuters
Clients
Our Services
Channels
Our Focus
• Individual investors
• Regional government agencies
• Regional financial institutions
• Corporates
• Educational institutions
• Other legal entities
• Equities • Bonds
• Investment trusts
• Insurance
• Discretionary investments
• M&A advisory
• Real estate (agency services)
• Inheritance and business
succession services
• 159 branches nationwide
• Call centers and websites
• Enhancing in-depth identification of client needs
• Expanding recurring revenue by increasing client assets
• Individual investors
• Domestic and overseas pension
funds
• Governments and central banks
• Institutional investors, etc.
• Domestic investment trusts: Securities companies, banks,
Japan Post Bank, insurance companies, and other intermediary
sales companies
• Domestic investment advisory: Direct sale of services to
pension funds, institutional investors, etc.
• Overseas business: Intermediary sales companies and direct
sales of services to pension funds, institutional investors, etc.
• Domestic equities and bonds
• Further improving fund performance
• Asian equities and bonds
• Global equities and bonds
• Balanced funds
• Strengthening capabilities for providing products and
solutions matching client needs
• Establishing a highly transparent corporate governance
• Absolute profit-type investments
structure
» P.20
» P.22
» P.25
• Financial institutions
• Institutional investors
• Corporates
• Governments and government
entities
• Network covering more than 30 countries and regions
• Underwriting of bonds and stocks
• M&A advisory
• Syndication of financial products,
provision of liquidity
• Proposals for investment, high-level
execution
• Offering solutions that match client needs and
regional characteristics
• Strengthening cross-divisional and cross-regional
collaboration
• Connecting markets East and West
10
11
* Income before income taxes is for FY2015/16, and the remaining figures are as of March 31, 2016, unless otherwise defined.
Nomura Report 2016Nomura Report 2016Nomura Today Message from the Group CEO
We continue to transform ourselves and
take on new challenges to improve satisfaction
among clients, shareholders, and employees.
Looking Back
can feel excited about their job. We have
kept refreshing our organization by promoting
It is now four years since I took over as Group
younger managers and have proactively rotated
CEO in August 2012.
people between divisions. In addition, we are
At that time, Nomura faced an unprece-
conducting regular employee surveys that target
dented number of complaints from our clients
our entire population in order to gauge the
and dissatisfaction about our slumping share
current understanding of the firm. We have also
price in the wake of a scandal. Our internal
focused on promoting a risk culture by having
culture had become restrictive and our organi-
all employees understand and follow the firm’s
zation was outdated. This caused satisfaction
stance towards risk.
levels of our stakeholders to drop dramatically. I
For shareholders, although we could not
made it my first mission to raise the satisfaction
make a commitment regarding our share price,
levels of clients, shareholders, and employees,
we committed to returning our EPS to ¥50 by
while rebuilding the firm from the ground up.
March 2016, the end of the range it was at
To improve client satisfaction, I announced
before we conducted two capital raisings and
that our underlying approach would be to put
our earnings slumped. We achieved this target
clients at the heart of everything we do. This
two years ahead of schedule.
meant moving away from a product-driven sales
approach where we pushed products to the
clients. Instead, we would have to listen closely
to what they had to say and work to be chosen
Our Founder’s Principles and
Nomura’s Corporate Culture
by our clients as a true partner. For instance,
Nomura celebrated its 90th anniversary in
the needs of retail clients extend beyond just
December 2015. Although Nomura was estab-
financial products. They require services for all
lished in 1925, we can trace our roots back
their assets, including real estate. To respond to
further to 1872 when Nomura Shoten was
these needs, we established new organizations
established as a moneychanger.
and introduced more training programs so our
Nomura grew from a moneychanger to a
employees can improve their consulting skills.
huge conglomerate before the end of World
To improve employee satisfaction, we
War II when it as was dismantled. Nomura then
changed our corporate culture to an open one
embarked on an extensive international push
by bringing down the walls between divisions
on the back of the rapidly expanding Japanese
and creating a workplace where everyone
economy. Driven by the shift to financial
Koji Nagai Group CEO
deregulation, Nomura then transformed itself
principles: “Principle of putting the customer
from a securities firm to a financial services
first.” Based on this philosophy, it is critical that
group. In this way, Nomura has continued to
we continue to transform ourselves.
transform itself in line with the changing times
We also place great importance on corporate
and take on new challenges.
ethics. In 2015, we established Nomura
We have been able to survive for 90 years
Founding Principles and Corporate Ethics Day so
thanks to our ability to transform ourselves to
that employees never forget the fact that we lost
adapt to the unpredictable markets in which we
the trust of society and learned many lessons from
operate.
the insider trading incidents related to capital
Nomura has ten principles that we follow
raisings in 2012. This is an opportunity to reflect
called Our Founder’s Principles (see p.6 ). Our
on our founding principles and for all officers and
philosophy of putting clients at the heart of
employees to understand our past and recognize
everything we do comes from one of these
the heavy social responsibility we bear.
12
13
Nomura Report 2016Nomura Report 2016Leadership Message from the Group CEO
Towards Further Growth
Investments announced in December 2015, we
are accelerating our growth to become a global
Achieving Continued Growth
raising stakeholder satisfaction levels.
In the year ended March 2016, we estab-
In August 2014, we outlined a long-term
asset manager.
Nomura’s social mission is to contribute to
lished our Corporate Governance Guidelines
management vision targeted at the fiscal year
To improve profitability in Wholesale, we have
economic growth and social development
as a way to ensure transparent, fair, swift, and
ending March 2020. We expect our operating
stringently managed costs and taken a number
through the securities business by promoting the
decisive decision-making.
environment to change more than ever. But
of steps to raise our global market share to the
we see this as the perfect chance to change
high 3% range.
ourselves. That is why we named this Vision C&C.
However, in the current environment, we are
There are two main themes for this vision:
seeing the impact of monetary policies around
appropriate flow of funds in the capital markets.
Aside from our core business, we are actively
involved in contributing to society by providing
opportunities for people all around Japan to
Transforming Ourselves and
Taking on Challenges
1. Transforming our domestic business model
the world coupled with heightened geopolitical
learn about economics and finance in order to
Our operating environment will continue to
2. Further improving the profitability of our
uncertainties. At the same time, U.S. and
expand Japan’s financial markets and enhance
change not only until 2020 but through to our
international operations
European firms that played the role of liquidity
financial literacy.
100th anniversary in 2025. Nomura will transform
In addressing these issues, we are laying
providers have significantly reduced their opera-
Internationally, we have participated in the
itself to deliver continued growth under any
the ground for all divisions to achieve continued
tions due to regulatory requirements. This has
UN Global Compact since 2015. We support the
environment and contribute to economic growth
growth in any market environment.
resulted in volatile markets and a deeper than
voluntary actions advocated by the UN and are
and social development by promoting the shift
In Retail, we aim to gain client trust and
expected drop in market liquidity.
working to ensure sustainable growth based on
from savings to investment for Japan’s more
expand our business, focusing on deliv-
Based on a conservative assumption that
Our Founder’s Principles and the Code of Ethics
than ¥1,700 trillion in personal financial assets.
ering products and services matched to the
this environment will continue in the foreseeable
of Nomura Group.
individual needs of each client. Our Retail key
future, we decided to step up our focus on core
Communication with all stakeholders is
We look forward to your continued support
performance indicators (KPIs) are Retail client
businesses and significantly reduce our cost
becoming increasingly important. Transparent
as we transform ourselves and take on new
assets of ¥150 trillion and a recurring revenue
base. Specifically, while we will maintain our
corporate governance is a critical factor in
challenges.
cost coverage ratio*1 of approx. 50% by 2020.
current business lineup in Japan and the rest
As of March 2016, we had Retail client assets
of Asia, we have decided to close or streamline
of ¥100.6 trillion and our recurring revenue
certain businesses in EMEA and the Americas.
cost coverage ratio was 25%.
We remain focused on improving profitability
Asset Management is making steady
to deliver consistent earnings under any
progress to achieving its target of assets
environment.
under management of over ¥50 trillion. With
our strategic alliance with American Century
*1 Total Retail expenses divided by recurring revenue. Recurring revenue
refers to revenue received from ongoing services related to client
assets such as investment trust administration fees.
FY2019/20
management
target
EPS
¥100
Key Performance Indicators (KPI)
to reach our FY2019/20 management target
Income from three Segments before income taxes
Division
Retail
Income before income taxes
Client assets
Recurring revenue cost coverage ratio
Asset
Management
Income before income taxes
Assets under management
FY2019/20
¥450-470 billion
¥195-205 billion
¥150 trillion
Approx. 50%
¥55-60 billion*2
¥50 trillion +α*2
Wholesale
Income before income taxes
Fee pool market share
¥200-220 billion*2
3% plus
*2 Revised in December 2015 in line with the changed environment
August 2016
Koji Nagai Group CEO
14
15
Nomura Report 2016Nomura Report 2016Leadership Executive Officers and Senior Managing Directors
(As of June 1, 2016)
•
•
•
•
•
•
Group CEO
Group COO
Koji Nagai
Tetsu Ozaki
Retail
Head of Retail Division
Eiichiro Yamaguchi
Asset Management
Head of Asset Management Division
Kunio Watanabe
Wholesale
Joint Heads of Wholesale Division
Head of Global Markets
Global Markets
Global Markets Co-Head
Head of Global Markets EMEA
Investment Banking
Head of Investment Banking
Americas
EMEA
Asia ex-Japan
Banking
Head of Americas
Co-Head of Americas
Executive Chairman, EMEA
Head of EMEA
Head of Asia ex-Japan
Co-Head of Asia ex-Japan
Banking
Chief of Staff
Chief Financial Officer (CFO)
Steven Ashley
Kentaro Okuda
Steven Ashley
Yasuo Kashiwagi
Yutaka Nakajima
Kentaro Okuda
David Findlay
Tsutomu Takemura
Minoru Shinohara
Jonathan Lewis
Toshiyasu Iiyama
Takeo Aoki
Chie Toriumi
Shoichi Nagamatsu
Takumi Kitamura
Group Entity Structure and Co-CRO
Yuji Nakata
Chief Risk Officer (CRO)
Chief Information Officer (CIO)
Group CAO (Wholesale IT, Global Operations,
Facility Management)
Lewis O’Donald
Kaoru Numata
Paul Spanswick
Corporate
Head of Group Compliance and Operations
Tomoyuki Teraguchi
Chief Legal Officer (CLO)
Yasushi Takayama
Deputy Chief of Staff and Group Strategy
Yo Akatsuka
Group Corporate Communications, Corporate
Citizenship and Tokyo 2020 Olympic and
Paralympic
Hajime Ikeda
Global Head of Human Resources
Kenji Kimura
General Services
Asia Strategy (China)
Internal Audit
Group Internal Audit
Rikiya Nonomura
Toshihiro Iwasaki
Junko Nakagawa
• indicates an Executive Officer
16
Actions for
Shaping
Our Future
Based on our philosophy of “placing our clients at the heart of
everything we do,” Nomura Group continues to innovate and
take up new challenges to drive sustainable growth, along with
undertaking a variety of activities to fulfill our corporate social
responsibility (CSR). We hope that this section will increase your
understanding of these and other actions.
Nomura Report 2016 Message from the Group COO
“Our long-standing commitment
to building relationships of trust
with clients underpins the
competitive advantage of the
Nomura brand.”
Tetsu Ozaki Group COO
Koji Nagai Group CEO
Tetsu Ozaki Group COO
Retail
Eiichiro Yamaguchi
Head of Retail Division
Asset
Manage-
ment
Kunio Watanabe
Head of Asset Management Division
Whole-
sale
Steven Ashley
Kentaro Okuda
Joint Heads of Wholesale Division
Japan
AEJ
EMEA
Americas
Koji
Nagai
Tetsu
Ozaki
Toshiyasu
Iiyama
Head of Asia
ex-Japan
Minoru
Shinohara
Executive
Chairman,
EMEA
David
Findlay
Head of
Americas
Takeo
Aoki
Co-Head
of Asia
ex-Japan
Jonathan
Lewis
Head of
EMEA
Tsutomu
Takemura
Co-Head of
Americas
Cooperation with business infrastructure division heads
Our operating environment is at a crucial point
debate over the state of capitalism and financial
medium to long term. For over 90 years, Nomura
Driven by this corporate culture, senior
for two reasons.
services. Regulations have been tightened,
has met the needs of our clients and faced
management has a strong commitment to
First, our clients’ needs are increasing
placing downward pressure on the earnings
market fluctuations together with our clients.
implement change and take on new challenges
dramatically and becoming more diverse. It has
of financial institutions. As FinTech and other
During that time we have built up an organi-
together with the strong leadership we have in
been difficult to forecast the recent significant
financial innovation accelerate, business models
zation that is speedy and responsive, focuses on
our management matrix across divisions and
moves in interest rates and currencies, which
could also be completely transformed.
innovation by developing new schemes, and has
regions. We have delegated appropriate authority
have impacted the economic activity of govern-
the people and organizational strength to make
to division heads, business infrastructure division
ments and corporates as well as investment
Amid this environment, we will take the time
all that happen. Nomura’s corporate culture
heads, and regional heads in order to improve
results for investors. As a result, our clients
to understand the issues our clients face and
is founded on listening closely to our clients’
the expertise in each area and ensure close
require diverse solutions. In Europe and Japan
proactively provide solutions in a timely way,
needs and not shying away from change or new
collaboration centered on each head. With this
where interest rates have entered negative
working hard for our clients at this historical
challenges.
vertical and horizontal management approach,
territory, many financial institutions, investors,
turning point by placing them at the heart of
This corporate culture based on relationships
we can cooperate together and maintain a
and corporates require new solutions. In Japan,
everything we do. As a partner to our clients,
of trust with clients runs through all of us and
stable management structure globally.
for example, many industries and companies
we will further differentiate ourselves and
provides a solid foundation for differentiation and
of different sizes are working to improve capital
continue to achieve efficiencies to ensure profits
will give us a significant competitive advantage
Our global clients place high expectations on
efficiency and setting out their growth strategies
and continue to transform and take on new
under the Nomura brand. We have over 70
us every day. Each of our clients is in the midst
for the next generation. This is an area where
challenges for the next generation.
client needs are growing.
nationalities working for us. Our corporate
of historical changes and faces new challenges.
culture is based on mutual respect of diverse
Nomura will focus on meeting the expectations
Second, the financial services industry is in
Corporate culture is critical when it comes
views across divisions and regions and this is
of our clients and delivering results while trans-
the middle of a historical transformation. Since
to addressing the next generation and ensuring
something we work to develop globally in all
forming ourselves and taking on new challenges.
the global financial crisis, there has been much
competitiveness that sets us apart over the
regions.
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19
Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Shaping Our Future with Actions in Each Division
Retail Division
Responding to
Clients’ Diversifying
Needs and Concerns
Along with Era’s Changes.
Eiichiro Yamaguchi Head of Retail Division
Strengths of the Division
Recent Business Conditions and Risks
Actions to Shape Our Future
advisory for small- to medium-sized enterprises,
completing 37 transactions in FY2015/16, up
Retail Division provides a broad range of financial
Amid a greying of the population, client needs
Aiming towards “winning client trust” and
from 13 in the previous year.
products and services through its nationwide
are diversifying into addressing such risks as
“business expansion,” our Retail Division has
In July 2015, we invited preeminent
network of 159 branches as well as Nomura Net
preparing for longer life and succession of
been working to transform its business model
leaders of the regions to become members of
& Call (online-based platform and call centers).
assets to the next generation. With the Bank
since August 2012. The Division is targeting
Branch version of Advisory Board, and receive
As of March 31, 2016, Nomura held 5.389
of Japan's introduction of the negative interest
to achieve Retail client assets of ¥150 trillion,
advice and suggestions on our initiatives and
million client accounts (excluding those without
rate policy, our individual and corporate clients
a sign of trust placed in us by our clients, and
businesses so we could provide better service
balances), with client assets totaling ¥100.6
are concerned about how to safeguard their
a recurring revenue cost coverage ratio* of
to the clients.
trillion. This represents 23% of the securities
money, and are waiting for a variety of asset
approximately 50% by FY2019/20.
We also focus on proposing solutions for
accounts in Japan.
management solutions. On the other hand, this
With an eye on transforming the business
the entire families of our customers through
One of Retail Division’s strengths is its
policy could encourage individuals to move their
model, Retail Division has been taking various
Junior NISA, a junior version of Nippon Individual
sophisticated consulting services. For individual
money out of savings accounts into investments.
actions to correspond to clients’ needs. These
Savings Account which started this year, and
investors, we provide tailored services to each
Risk factors include changes in the global
efforts have begun to show steady results. For
Estate Planning Reports, a comprehensive
client by listening to their life plans, family
economy such as weak crude oil, slowdown
example, the volume of real estate transactions
service for customers taking action regarding
structure and goals. Consulting services and
in the Chinese economy and uncertain
exceeded ¥80 billion in FY2015/16. In addition,
inheritance matters.
periodic follow-up advice are provided through
monetary policies. Risks also entail potential
we have seen a steady increase in M&A
* Recurring revenue is revenue from ongoing services linked to assets
under custody, such as fees from investment trusts.
Nomura Financial Tools, which include advice
adverse effects on Retail Division's operating
based on the future life plans, assets and
environment such as expansion of FinTech in
inheritance matters of each client, as well as
the financial sector and the declining population
Asset Portfolio Reports, which include advice
of Japan.
and analysis of entire portfolio, even assets held
outside Nomura.
Another major strength is to provide
high-quality products and services by lever-
aging our expertise within the Group, including
Wholesale and Asset Management Divisions.
Initiatives to Improve Products and Services
Efforts to Improve Customer Satisfaction
Retail Division is redoubling efforts to improve customer satisfaction. With members including the Head of
Retail Division and other senior managers of the division, the Customer Satisfaction Improvement Liaison
Committee meets once a month to discuss how to improve products, services and systems based on
customer feedback. The Branch Customer Satisfaction Survey was conducted for the five times, asking
approx. 250,000 customers in total about their experience visiting our branch offices (details on results of the
survey may be found on page 74). In addition, we conducted customer satisfaction surveys for sales repre-
sentatives. On our website, we show the 20 sales representatives who received the best assessments from
customers as financial consultants chosen by customers.
20
21
SOWTStrengthsOpportunitiesWeaknessesThreatsNomura Report 2016Nomura Report 2016Actions for Shaping Our Future•Insufficiency of engaging clients’ core assets•Level of recurring revenue, earnings structure exposed to market environment•Acquisition of younger clients•Largest branch network in Japan’s securities sector and client base centered on wealthy individuals•Sophisticated consulting services•Differentiation from other securities firms by collaborating with various Group functions and creation of new business•Rise of online securities firms•Close relationship between mega banks and clients•Trends in FinTech and impact of new technologies•Challenges of asset management in a low interest rate environment•Actualizing needs of inheritance Shaping Our Future with Actions in Each Division
Asset Management Division
To better meet the needs of our clients,
we are strengthening our
investment capabilities while focusing
on product development and
the proposal of solutions.
Kunio Watanabe Head of Asset Management Division
Strengths of the Division
Recent Business Conditions and Risks
Management Division is making every effort to
which an Outside Director also participates, has
latch onto these trends in the development of
formulated company-wide policies to address
In addition to sophisticated in-house research
Reforms being advanced by the Japanese
new products.
and investment expertise, Asset Management
government have provided a tailwind for the
Division’s strengths include its ability to select
asset management industry, such as raising tax
external managers through its multi-manager fund
exempt amounts in the Nippon Individual Savings
Actions to Shape Our Future
issues relating to the environment, social, and
governance (ESG). With proxy voting and
engagement through investee companies for
increasing their enterprise values, we encourage
management system, which works with excellent
Account (NISA) program, introducing a Junior
Asset Management Division is focusing on growth
them to strengthen their governance structures to
fund managers outside the Company to augment
NISA program, and expanding the range of people
in overseas operations. By leveraging UCITS*2,
achieve sustainable growth and aim to increase
in-house investment capabilities.
qualified to contribute to defined contribution
the European criteria for investment trusts, we
returns on investments for beneficiaries over the
Asset Management Division has been expanding
pension plans.
aim to expand overseas business by offering such
medium term. Furthermore, we established the
into differentiated investment products such as
Moreover, the asset management reforms by
products to global institutional investors, private
Fund Management Council, of which the majority
high-yield bonds, absolute profit-type investment
the Government Pension Investment Fund (GPIF),
banks, and retail channels.
of members are independent Outside Directors,
funds, smart beta indexes, and exchange traded
one of the largest pension funds in the world, are
Moreover, we are reinforcing our business
in order to verify that our fund management
funds (ETFs) in addition to our traditional foothold
bringing about significant changes in the industry.
foundation in North America through a strategic
activities, such as investment trust product devel-
in Japanese and Asian equities, where we have
These changes have presented Asset Management
business partnership with American Century
opment, redemption and consolidation and policy
extensive experience and track records. Also we
Division with many business opportunities.
Investments (ACI), an investment management firm
of investment trust fee level, meet the fiduciary
promote research and development by pilot funds
However, conditions in the industry have
in the U.S.
duty standards so that our clients’ interests are
and mergers and alliances with other companies for
become more challenging as a result of industry
Our Responsible Investment Committee, in
adequately protected.
complementary global investments.
consolidation, such as moves by major banks and
Another strength is our ability to propose
regional financial institutions to strengthen their
solutions tailored to the various needs of our
asset management businesses. Nomura’s Asset
clients, combining a variety of investment products
Management Division aims to reinforce its in-house
*2 UCITS stands for “Undertakings for Collective Investment in Transferable Securities” and is a general term referring to funds that meet certain criteria
established in European Union Directives. UCITS is part of a basic investment trust framework focused on the EU, but has also been adopted in some
countries in Asia and Latin America.
and services. Not only do we offer investment
investment capabilities and its sales network in
Initiatives to Improve Products and Services
products to customers including individual
order to enhance its competitiveness.
investors, institutional investors, intermediary
The introduction of a negative interest rate
sales companies and financial institutions, we also
policy has had negative consequences as bond
provide evaluations and analytical information about
funds are losing attractiveness due to declining
external asset management companies, a fund
yields in the money market, but it could have the
wrap management platform, and various consulting
considerably positive effect of accelerating the
services related to asset management.
shift from savings accounts to investments. Asset
*1 Absolute profit-type investment funds employ an asset management method that seeks to realize profits on investment principal. These funds do not
necessarily guarantee a positive return. Absolute profit type investment funds are generally shielded from market trends, but their performance largely
depends on the investment capabilities of the fund managers.
Telephone Support Service
Nomura Asset Management has set up a dedicated telephone support
service to field inquiries about investment trusts from individual investors
and intermediary sales companies. In the fiscal year ended March 2016,
the service responded to 36,922 inquiries. In addition to using this
support service to carefully explain our products to clients, the opinions
and requests obtained through this channel are a precious information
resource that is used to develop new products and services that better fit
the needs of our clients, as well as to further raise service quality.
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23
SOWTStrengthsOpportunitiesWeaknessesThreatsNomura Report 2016Nomura Report 2016Actions for Shaping Our Future•Room for improvement in our presence outside Nomura Group •Different stages of progress in retail development in Japan versus overseas •Business expenses need to be reduced through greater efficiency•Sophisticated in-house research and investment capabilities, and multi-manager fund management systems•Capabilities for global product devel-opment and supply•Ability to propose and provide solutions tailored to diverse needs of clients•Global stiff competition•Tougher regulatory environment after the financial crisis•Pressure of reducing fee level•Growing needs for asset management around the world, tailwinds from system reforms•Global business expansion from business partnership with American Century Investments•Further address diversifying client needs Fe at ure
Shaping Our Future with Actions in Each Division
Wholesale Division
A Strategic Partnership
with American Century
Investments
ACI’s logo is the oak tree which is symbolic of continued growth and stability. To honor our
partnership, ACI presented Nomura with the bronze statue pictured above.
East and West, and delivering competitive services
to our clients.
By leveraging Nomura’s strength in Asia-Pacific,
we are effectively connecting markets
A Partnership with Advantages
for Both Companies
A Common Founding Spirit and
Corporate Culture
Founded in 1958, ACI is an independent investment
management firm based in the U.S., with offices in the U.K.
and Hong Kong.
ACI has a strong presence in the U.S. mutual fund
market, which is about 22 times the size of Japan’s, and
has particular expertise actively managing U.S. and global
equity funds. In addition, ACI has strong connections to
key distribution channels including leading global advisors,
banks, and insurance companies.
Given the minimal overlap between Nomura’s and
ACI’s investment strategies, products and regional
coverage, both companies expect the strategic partnership
will bring value to its organization. To date, ACI has had
limited business development opportunities outside of the
U.S., making Nomura Group’s strength in Japan and Asia
extremely attractive. Nomura Asset Management plans to
access and leverage ACI’s expertise to offer a wider range
of investment management solutions to our individual and
institutional clients in Japan and the rest of the world.
The founder of ACI believed that “if we help others
become successful, they, in turn, will make us successful.”
This saying, similar to Nomura’s founder’s principle of
“putting the customer first,” illustrates ACI’s and Nomura’s
common values. Nomura was also attracted to ACI
because of its corporate culture and practice of appreci-
ating and praising employees who work enthusiastically to
help their clients succeed.
> For information about Nomura’s founder’s principles and our current
corporate culture, please refer to page 6.
Regular Management Meetings Will
Enhance Strategic Direction
Jonathan S. Thomas, CEO of ACI, and Kunio Watanabe,
Head of Asset Management Division, jointly chair the
Business Opportunity Committee that will be held twice
a year. During its first meeting on April 19, 2016, the
committee outlined concrete strategies that will shape
Nomura’s partnership with ACI and contribute to the
growth of the two companies.
Strengths of the Division
position for U.S. Agency Securities*3 (Fannie
Mae, Freddie Mac, etc.). We were also ranked
At Nomura, all the divisions and regions work
#7 in the Global SSA*4 underwriting league table.
collaboratively to provide best-of-breed products
As our clients globalize their businesses,
and solutions to meet the diverse needs of our
we have strengthened our cross-regional and
clients globally. For example, we have a robust
cross-divisional collaboration in Wholesale to
underwriting and distribution capability, with
offer holistic support to clients encompassing
shares and bonds underwritten by Investment
cross-border M&A, capital-raising, and currency
Banking and distributed to a broad investor base
and interest rates hedging.
globally by Global Markets and Retail branches.
Global Markets also provides secondary
Recent Business Conditions and Risks
market liquidity, market and macro insights,
and investment ideas to help clients effectively
FY2015/16 was a challenging year, with
manage their portfolios.
macroeconomic headwinds emerging from the
Nomura positions Asia-Pacific as our
resurgence of the Greek debt crisis, the slowdown
“mother-market.” We have an unparalleled
in the Chinese economy, diverging central bank
presence in Japan, as evidenced by our #1 rank
policies, and a sharp decline in commodity prices,
in the Japan ECM underwriting league table*1,
especially crude oil. Secondary market liquidity
and a top-tier market share of volumes traded in
including stock, bond and loan markets declined
Tokyo Stock Exchange and a high market share
further during the year, impacting client activity
in JGB auctions.
and the fee pool for the industry.
Nomura’s international network spans more
In primary markets, the issuance of equities
than 30 countries and regions including the
and bonds decreased on the back of volatile
Americas, EMEA and Asia ex-Japan, and we
markets and global economic uncertainty. The
support clients globally. This is complemented
M&A market was very active with an increase in
by 15 primary dealerships in major markets
companies looking to expand their businesses
around the globe, a Top-10 U.S. Fixed Income
through industry consolidation or strategic
franchise*2 including a Top-3 market maker
acquisition of companies.
From the left: Kunio Watanabe, Head of Asset Management Division; Koji Nagai, Group CEO of Nomura Holdings;
Jonathan S. Thomas, CEO of ACI; Michael Green, Senior Vice President of ACI; and Mark Killen, Senior Vice President of ACI
*1 Source: Thomson Reuter (April 2015 to March 2016)
*3 Source: U.S. Federal Reserve
*2 Source: Greenwich Associates, 2015
*4 Sovereign, Supranational and Agency. Source: Dealogic (Jan to Dec 2015)
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25
Global MarketsInvestment BankingNomura Report 2016Nomura Report 2016Actions for Shaping Our FutureOn May 19, 2016, Nomura Holdings acquired a non-controlling approx. 41% economic interest (voting rights of 10.1%) in American Century Investments (ACI), an independent investment management firm in the U.S. Looking ahead, Nomura and ACI intend to work together as strategic partners. Joint Heads of Wholesale Division
Kentaro Okuda
Steven Ashley
In FY2016/17, we expect the market
expertise and competitive advantages, and
on the back of medium- to long-term growth in
October 2015, we arranged and sold Education,
environment to continue to be challenging. On
position our business to deliver sustainable profit
the region. We will continue to deliver compet-
Youth and Employment (EYE) Bonds to retail
the regulatory front, we continue to pay close
across market cycles.
itive products and services to our clients by
investors in Japan. Also, our continuous efforts
attention to the pace of reform. The purpose of
In detail, we continue to strengthen our
connecting markets East and West, leveraging
resulted in a total sale of over ¥56 billion in
these regulations is to ensure the stability of the
Global Macro business including Rates products
our strengths in Asia-Pacific as well as our broad
World Bank Sustainable Development Bonds,
broader financial system, the health of relevant
and our Emerging Markets platform, building
client base and strong product capabilities in
making it this product’s largest distributor in
entities and the protection of clients. However,
on our success in the past few years. We also
EMEA and the Americas.
required changes to comply with upcoming
remain focused on reinforcing our agency
rules may lead to a reduction in capacity and
execution business, Instinet, which includes
liquidity provided by market participants. It is
expanding our product offering to position the
our mission to play a role as a liquidity provider
business as a multi-asset agency platform.
Promoting Socially Responsible
Investment (SRI)
the Uridashi market. We will continue to offer
investment products that contribute to the
resolution of social issues and help create a
more affluent society by serving as an interme-
diary between individuals who are interested in
and respond to the various needs of our clients,
In the M&A advisory business where we see
Nomura has been promoting SRI as an
participating in providing solutions to social and
while maintaining a resilient risk culture as well
increasing client demand, we continue to
investment strategy for Japanese retail investors,
environmental issues, and projects or funding
as flexible resource allocation.
provide high-quality services while also seeking
and established a track record in this field. In
needs in developing countries.
Furthermore, the Corporate Governance
to provide clients with ancillary financing and risk
Code went into effect in June 2015 in Japan. As
solutions including interest rates and FX hedges.
our corporate clients look to improve their ROE,
The new Wholesale structure has reinforced
we will provide tailor-made solutions to meet
the partnership between Global Markets and
the specific requirements of each of our clients.
Investment Banking, which should encourage
For example, we have supported many clients in
product innovation and improve ‘time to market,’
Initiatives to Improve Products and Services
unwinding their cross shareholdings and share
especially for our Solutions businesses.
buybacks using derivative solutions.
Such strategic review of the businesses in
Global Research Portal
Actions to Shape Our Future
EMEA and the Americas will enable us to have
a stronger focus on our areas of strength, which
should support our transition to a more profitable
In April 2016, Wholesale conducted a strategic
and sustainable business model. In Asia-Pacific,
review of the business portfolio in EMEA and the
our business will not be negatively affected by
Americas. The purpose of this exercise was to
these changes. We will maintain and seek to
reallocate our managerial resources to further
further grow the existing full-service platform, to
focus on selected businesses where we have
tap into various business opportunities that arise
Nomura’s global research team collaborates across regions and products to
provide clients with insightful opinions and investment recommendations in
core areas including the economy, equities, quantitative strategies, foreign
exchange, interest rates and credit. Our team has achieved high acclaim from
our clients. They are easily able to access our research online at the Global
Research Portal (GRP), where they have the option to automatically receive
the latest reports of their choosing through GRP’s mail delivery service.
Research reports are provided online in Japanese and English.
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SOWTStrengthsOpportunitiesWeaknessesThreatsNomura Report 2016Nomura Report 2016Actions for Shaping Our Future•Seeking efficient usage of resources to improve international productivity•Relatively high sensitivity to market fluctuation•Asia-Pacific leadership, particularly in Japan•Global client base through an interna-tional network that covers more than 30 countries•Leading facilitator of cross-border transactions globally•Macroeconomic uncertainty and geopo-litical risks•Further impact from tightening regula-tions on financial institutions•Increased competition from domestic and global peers / mega banks•Increase in globalization of Japanese / APAC corporates•Tailor-made products and innovative solutions to meet specific client needs•Connecting “West” to Asia growth and Asia to develop market products Actions Across the Regions
Americas
Actions Across the Regions
EMEA
David Findlay Head of Americas
Jonathan Lewis Head of EMEA
The Americas represents the largest financial
Americas region. To do so, we will emphasize the
market in the world. Over time, the market has
importance of working across regions and across
grown dynamically while adapting to change
divisions to leverage our diversified franchise and
and promoting financial innovation. We started
play a key role for our global clients.
to organically rebuild our business in the region
Our ability to adjust to evolving markets is
in 2009 and, as markets evolve, we continue to
critically important and our management team
take the steps required to grow stronger, build our
remains focused on how the macro environment
franchise and use our advantage in Japan and Asia
and financial regulations may affect our businesses.
to connect markets East and West.
We remain flexible and nimble and will optimize
Our Wholesale business provides differentiated
resources and improve efficiencies to enhance our
services that meet each of our client’s individual
value proposition to our clients. Our commitment
needs. In Global Markets, we offer a full range
to our clients remains steadfast and we will
of products across Equities and Fixed Income,
continue to deliver value-added services to meet
focusing on our areas of strength. In Investment
our long-term goals by achieving sustainable
Banking, we continue to deliver superior service to
profitability.
our clients across M&A, ECM, DCM and Solutions.
Our Asset Management business, Nomura
Corporate Research and Asset Management
(NCRAM), complements the Americas Wholesale
franchise. With high-yield investment as its core
competency, NCRAM continues to win large
institutional mandates and grow assets under
management. In addition, we recently entered
into a strategic alliance with American Century
Investments, which could expand our presence
in the U.S. and also allow Nomura to access
American Century’s asset management capabilities
for our retail and institutional clients around the
world.
We believe it is imperative that we work
together to deliver the superior products and
innovative solutions that are expected of the
The key priorities in EMEA (Europe, the Middle
and efficiently across businesses, ensuring they
East and Africa) are aligned with Nomura’s
are targeted to our most valued clients.
underlying approach to our international business.
This year, we have both enhanced and refined
We will continue to strengthen our global
our regional corporate governance, most notably
client franchise, focus on areas of competitive
with the appointment of Jim Leng as Chairman
advantage and improve profitability.
of NEHS, who brings a wealth of boardroom
EMEA is dedicated to serving a diverse
experience from a wide range of international
range of important clients including institutional
companies. We also aim to develop a culture that
investors, financial institutions, corporates,
promotes proper conduct and accountability,
financial sponsors and government entities. This
empowers colleagues and embeds a collaborative
means that the region is critical to Nomura’s
environment.
global business vision of connecting markets East
All of these changes will not only provide more
and West.
value to our clients but also improve Nomura’s
However, Nomura’s regional strategy is
EMEA and international profitability. We have
a selective model. In light of the challenging
taken steps to significantly reduce both our cost
business environment, we have recently refined
base and risk-weighted assets over the last few
our proposition to a more focused product offering
years, and this vigilance on costs and return on
that plays to our strengths.
resources will remain. EMEA now has a strong
For example, we have a strong Rates business
foundation to further strengthen our franchise and
and have been developing our G10 Foreign
drive sustainable regional profitability.
Exchange and Emerging Markets’ franchise.
Our Solutions business builds on our intellectual
capital to provide bespoke structured solutions
to financial institutions, corporates and sovereign
clients. In Equities, we recently made strategic
choices to exit certain product lines. Our business
is now centered on equity sales of Japanese
and Asian stocks, as well as ECM for Japanese
issuers. We deliver these services and solutions
through a globally integrated Wholesale structure.
This enables us to allocate our resources flexibly
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our FutureOur focus is to support Nomura’s global vision to connect markets East and West, and to improve EMEA’s sustainable profitability.The Americas commitment to sustainable profitability is unwavering. Actions Across the Regions
AEJ
Toshiyasu Iiyama Head of Asia ex-Japan
The fast-growing region of Asia ex-Japan (AEJ)
needs for funding and investing. While tougher
is a critical part of Nomura’s core strategy
competition is anticipated in the long run, we
to establish a solid position as Asia’s global
will continue to establish a solid operating
investment bank. The scale of the financial
platform that can generate profits sustainably by
markets and the number of high-net-worth
leveraging our strengths to capture client needs
individuals in the region are both expected to
and continuing to transform ourselves and take
expand rapidly. Nomura has been committed
on new challenges.
to AEJ for 50 years. Over this time, we have
We intend to continue to invest strategically
built up an extensive presence across twelve
in talent to enhance key business areas and
countries and regions. We offer a diverse range
countries where we see the greatest long-term
of services to a broad client base that includes
opportunities and potential with the view to
governments, central banks, corporates, institu-
meeting clients’ needs. Also, our philosophy of
tional investors and retail clients.
placing clients at the heart of everything we do
As the market matures, we expect to see a
will remain central to our core values, and we
rapid increase in the number of high-net-worth
will continue to further enhance communication
individuals and an expansion in direct financing.
with clients.
In line with this, our clients’ needs are becoming
In Asia, Retail and Wholesale can work
increasingly sophisticated and diverse. For
together to create synergies using our
instance, in infrastructure space, we believe we
two-pronged approach that has been successful
can play a significant role in response to client
in Japan for many years. With Nomura’s global
vision of connecting markets East and West, we
will collaborate within the Group and integrate
our products and coverage teams further to
deliver seamless solutions across divisions and
regions.
In FY2015/16, AEJ reported its second
consecutive profitable year despite the difficult
operating environment. We will continue to
capture the opportunities in Asia and focus on
future growth going forward.
Advisory Board
Nomura Holdings formed its Advisory
Board in 2001 to advise the firm’s Executive
Management Board, which is responsible for
making decisions on business executions.
In 2015, Nomura newly appointed four preeminent Asian leaders as
its eighth Advisory Board members and held its second meeting in
Tokyo in February 2016. The meeting was held over two days with
executives in attendance and opinions were exchanged from a variety
of perspectives on matters including Nomura’s business development
in Asia, social infrastructure needed to bring about growth in Asian
countries and the type of support that capital markets can provide.
Advisory Board members also visited the Head Office Sales
Department in Nomura Securities, where they received an explanation
and watched on an iPad how Retail Division provides clients with
consulting services. “We were impressed with Nomura’s people and
their consulting skills. Nomura will prove to have a strong competitive
edge overseas,” some of the Advisory Board members commented.
Front row, from the left: Mr. Deepak Parekh, Mr. Goh Chok Tong, Mr. Sofjan Wanandi, and Mr. Kan Trakulhoon
Back row: Nomura Group management
Mr. Deepak Parekh
(India)
Mr. Goh Chok Tong
(Singapore)
Mr. Sofjan Wanandi
(Indonesia)
Mr. Kan Trakulhoon
(Thailand)
Chairman of HDFC Group
Chairman of HDFC since 1993. He
has successively filled roles on various
high-powered economic groups, govern-
ment-appointed advisory committees, and
task forces.
Emeritus Senior Minister of Singapore
Prime Minister of Singapore from 1990
to 2004 and Senior Minister from 2004
to 2011. He has been Emeritus Senior
Minister of Singapore and Senior Advisor
to the Monetary Authority of Singapore
since 2011.
Senior Advisor to the Vice President
of Indonesia
Former Chairman of APINDO (Indonesian
Employers Association) and founder of the
Santini Group. He has been Senior Advisor
to the Vice President of Indonesia since
November 2014.
Director and Chairman of the Management Advisory
Committee of SCG
Former President and CEO of SCG, one of Thailand’s most
reputable industrial conglomerates established in 1913.
Chairman of the Management Advisory Committee from 2016.
He was recently awarded the 2014 Deming Distinguished
Service Award for Dissemination and Promotion (Overseas).
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31
Nomura Report 2016Nomura Report 2016Actions for Shaping Our FutureFully committed to Asia ex-Japan. Message from an Advisory Board Member
Discussing Nomura’s Growth from a Global Perspective
The Nomura Group Has
Great Growth Potential in Asia
Please give us your view of the global
with and invest in other economies in the region.
economic situation, including the uncertainty in
There are areas, such as robotics or infrastructure
financial markets.
technology, that Japanese companies have an
advantage in, and Japanese companies will do
The current slowdown in the developed economies,
well to export their expertise, in particular to the
and to some extent the emerging economies,
emerging economies.
will continue to lead to uncertainty in the financial
Asia ex-Japan needs immense investments in
markets. Slower global growth rates are a struc-
infrastructure such as for transport and energy. The
tural issue. For the developed economies generally,
Asian Infrastructure Investment Bank (AIIB) has been
we see a continued decline in productivity growth.
set up, although Japan is not involved, so we are
Advisory Board Member
Goh Chok Tong
Emeritus Senior Minister of Singapore
Prime Minister of Singapore from 1990 to 2004 and Senior
Minister from 2004 to 2011. He has been Emeritus Senior
Minister of Singapore and Senior Advisor to the Monetary
Authority of Singapore since 2011.
There is no easy way to achieve sustained
on the verge of having a global system for estab-
I suggest that Nomura increase its brand
Nomura’s aim to look beyond Japanese markets
growth in the future, and countries will have to
lishing infrastructure. Japan has also expanded
awareness in these markets, and establish itself as
and explore new ideas with non-Japanese advisors.
raise productivity through long-term measures of
its Partnership for Quality Infrastructure program,
a trusted partner in the emerging markets. It also
To me, this is an enlightened approach as I under-
investment in new technologies, education and
under which Japanese agencies would partner with
can draw on its wide networks in the Japanese
stand that most Japanese companies tend not to
continuing re-training of workers.
the Asian Development Bank (ADB) in providing up
market, pick up detailed messages from customers,
have foreign directors and advisors.
Looking at the Asian region, the Chinese
to $200 billion in funding for infrastructure projects
and seek to link Japanese companies with other
The Nomura Advisory Board comprises
economy is currently in a transition phase. As their
over the next 5 years. With funding available for
partners that are looking for advice in addition to
preeminent persons from throughout Asia. The
labor force ages and growth slows, moderation
infrastructure from the ADB and AIIB, Japanese
investment funds.
in the economic growth rate is expected. The
companies which have expertise and experience in
Advisory Board’s current members, Mr. Wanandi
from Indonesia, Mr. Parekh from India and Mr.
Chinese government is also looking at rebalancing
executing major projects will benefit.
What is your impression of Nomura’s
Trakulhoon from Thailand all have expertise and
the Chinese economy away from exports toward
Even for China’s proposed One Belt One Road
management team? How should the Nomura
fine track records, and we are capable of providing
internal consumption and services. There will be
(1B1R), there will be opportunities for Japanese
management team make the best use of the
Nomura with appropriate opinions from various
some short-term adjustment costs.
companies. The Maritime Silk Road, for example,
Advisory Board?
I am optimistic about the longer-term prospects
will benefit Japan, given that Japan is a major
different perspectives. It is my desire to play a role
ensuring the Advisory Board will be actively utilized
of the regional economies, in particular China,
commercial maritime nation.
I think Nomura’s management team is prepared to
as an advisory organ by Mr. Nagai and the Nomura
India and ASEAN. The number of middle income
listen, ask questions and learn. These are positive
management team.
consumers continues to grow. If they manage to
What is your view of Nomura’s initiatives
attributes for growth. When we first met in June last
The management team should continue to
successfully reform and make the transition, the
aiming to contribute to the development of Asian
year, the management team sought the views of
challenge the Advisory Board by asking good
potential is immense.
capital markets?
Geopolitically, there are areas of disputes
the Advisory Board on Nomura’s business in Asia.
questions and seeking more in-depth knowledge
The Advisory Board members were also learning
from us.
over sovereignty of islands and seas. They get
The Nomura Group has great growth potential in
about Nomura and its business. Nevertheless, they
I think before future meetings, the management
head-lined. But I believe these disputes will be
Asia. Having firmly established itself in the Japanese
shared some areas where Nomura could explore.
team can pose specific questions or areas which
managed. Put these disputes in the multi dimen-
market, Nomura can build on its strong working
This February, when we had our second meeting
they want the individual advisors to comment on.
sional and long-term context of relations between
relationships with Japanese firms and existing
in Tokyo, the management team had prepared a
Advisors are not “all-knowing." But they can do
the disputing countries, and it is clear that there is
networks in its Asian offices, and work as a bridge
very detailed brief on the areas we had discussed
some research and thinking on these issues before
too much to lose for all if they get out of hand.
for Japanese companies to invest their funds in
in June. We then had two days of meetings where
they meet the management team.
other countries. In particular, I see Southeast Asia
the management team asked deeper questions to
For me, I hope to contribute to Nomura’s growth
What role do you think Japan and globally
and India as regions where Nomura can expand
glean more insights from the Advisory Board. We
by sharing my insights on the global and regional
active Japanese companies should play amid the
its reach and invest even more resources. This is a
even had a working discussion during lunch!
political and economic landscapes. Personally,
current environment?
particularly good window for Nomura as traditional
investment banks from the West are looking to
Not only is the management team hardworking
I have also learnt from sharing with the Nomura
but it is also very much on the ball. As I under-
management team and the other board members.
Japan and its companies should find ways to work
reduce their roles in emerging markets.
stand it, the setup of the Advisory Board is part of
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future
Directors of Nomura Holdings (As of July 1, 2016)
Nomura Holdings’ organizational design is the Company with Three Board Committees structure, where the oversight
function is strengthened by separating the management oversight and business execution functions, enabling the Company
to realize an expedited decision-making process through the Board of Directors delegating considerable authority for the
execution of business functions to Executive Officers, and to realize increased transparency through establishing three
(Nomination, Audit, and Compensation) board committees, each comprised of a majority of Outside Directors.
Nobuyuki Koga
Chairman of the Board of Directors, Chairman of the Nomination Committee,
Chairman of the Compensation Committee
Apr. 1974 Joined the Company
Jun. 1995 Director of the Company
Apr. 1999 Managing Director of the Company
Jun. 2000 Director and Deputy President of the Company
Oct. 2001 Director and Deputy President of the Company
(concurrently Director and Deputy President of Nomura
Securities Co., Ltd.)
Apr. 2003 Director and President of the Company (concurrently
Director and President of Nomura Securities Co., Ltd.)
Jun. 2003 Director, President & CEO of the Company (concurrently
Director and Executive Officer and President of Nomura
Securities Co., Ltd.)
Apr. 2008 Director and Representative Executive Officer of the
Company (concurrently Director and Chairman of
Nomura Securities Co., Ltd.)
Jun. 2008 Director and Chairman of Nomura Securities Co., Ltd.
Jun. 2011 Director and Chairman of the Company (concurrently
Director and Chairman of Nomura Securities Co., Ltd.)
(Current)
Mr. Koga, who has held a number of significant positions, including Director and President of Nomura Holdings and Director and President
of Nomura Securities, and currently holds the positions of Vice Chairman of Nippon Keidanren (Japan Business Federation) and Vice
Chairman of the Japan Securities Dealers Association, is well-versed not only in the business of Nomura Group but also in the customs of
the securities industry, and contributes to the smooth operation of the meeting of the Board of Directors, acting as chairman.
Takao Kusakari
Outside Director, Member of the Nomination Committee,
Member of the Compensation Committee; Special Advisor of NYK Line
Apr. 1964 Joined Nippon Yusen Kabushiki Kaisha (NYK Line)
Aug. 1999 President of NYK Line
Apr. 2002 President, Corporate Officer of NYK Line
Apr. 2004 Chairman, Corporate Officer of NYK Line
Apr. 2006 Chairman, Chairman Corporate Officer of NYK Line
Apr. 2009 Director and Corporate Advisor of NYK Line
Jun. 2010 Corporate Advisor of NYK Line
Jun. 2011 Outside Director of the Company (Current)
Apr. 2015 Special Advisor of NYK Line (Current)
Mr. Kusakari has held a number of significant positions, including President of NYK Line and Vice Chairman of Nippon Keidanren (Japan
Business Federation), and his achievements and insights have been evaluated highly both within and outside of the Company. Applying
his extensive experience with respect to management, Mr. Kusakari contributes to the Company as an Outside Director.
Hiroshi Kimura
Outside Director, Member of the Nomination Committee,
Member of the Compensation Committee; Advisor of Japan Tobacco Inc.
Apr. 1976 Joined Japan Tobacco and Salt Public Corporation
Jun. 2006 President and CEO and Representative Director of
(currently, Japan Tobacco Inc.)
Jun. 1999 Director of Japan Tobacco Inc.
Jun. 2001 Resigned as Director of Japan Tobacco Inc.
Jun. 2005 Director of Japan Tobacco Inc.
Japan Tobacco Inc.
Jun. 2012 Chairman of the Board of Japan Tobacco Inc.
Jun. 2014 Special Advisor of Japan Tobacco Inc.
Jun. 2015 Outside Director of the Company (Current)
Jul. 2016 Advisor of Japan Tobacco Inc. (Current)
Mr. Kimura has held a number of significant positions, including President, CEO and Representative Director of Japan Tobacco Inc., and
his achievements and insights have been evaluated highly both within and outside of the Company. Applying his extensive experience
with respect to management, Mr. Kimura contributes to the Company as an Outside Director.
Noriaki Shimazaki
Outside Director, Chairman of the Audit Committee; Advisor of the IFRS Foundation
Asia-Oceania Office; Former Executive Vice President of Sumitomo Corporation
Apr. 1969 Joined Sumitomo Corporation
Jun. 1998 Director of Sumitomo Corporation
Apr. 2002 Representative Director and Managing Director of
Jan. 2009 Trustee of the IFRS Foundation
Jul. 2009 Special Advisor of Sumitomo Corporation
Jun. 2011 Director of the Financial Accounting Standards Foundation;
Sumitomo Corporation
Jan. 2003 Member of the Business Accounting Council of the
Financial Services Agency
Apr. 2004 Representative Director and Senior Managing
Executive Officer of Sumitomo Corporation
Apr. 2005 Representative Director and Executive Vice President
of Sumitomo Corporation
Chairman of Self-regulation Board; Public Governor of
the Japan Securities Dealers Association
Sep. 2013 Advisor of the IFRS Foundation Asia-Oceania Office (Current);
Advisor of the Japanese Institute of Certified Public
Accountants (Current)
Jun. 2016 Outside Director of the Company (Current)
Mr. Shimazaki has held a number of significant positions, including Representative Director and Executive Vice President of Sumitomo
Corporation, and his achievements and insights have been evaluated highly both within and outside of the Company. Applying
his abundant experience in corporate management and high degree of expertise with regard to international accounting systems
corresponding to a Sarbanes-Oxley Act of 2002 financial expert, he contributes to the Company as an Outside Director.
Toshinori Kanemoto
Outside Director, Member of the Audit Committee
Of-Counsel, City-Yuwa Partners
Apr. 1968 Joined National Police Agency
Apr. 1992 Kumamoto Prefecture Police Headquarters, Director-
Apr. 2001 Director of Cabinet Intelligence, Cabinet Secretariat,
Government of Japan
General
Jan. 2007 Registered as Attorney-at-Law (Dai-ichi Tokyo Bar
Aug. 1995 Director General of the International Affairs
Department, National Police Agency
Oct. 1996 President of ICPO-INTERPOL
Aug. 2000 President, National Police Academy
Association)
Feb. 2007 Of-Counsel, City-Yuwa Partners (Current)
Jun. 2011 Outside Director of the Company (Current)
Mr. Kanemoto has held a number of significant positions, including President of ICPO-INTERPOL, and his achievements and insights
have been evaluated highly both within and outside of the Company. Applying his sophisticated expertise and extensive experience as a
currently active attorney, Mr. Kanemoto contributes to the Company as an Outside Director.
Hisato Miyashita
Director, Member of the Audit Committee (Full-time member)
Jul. 1987 Joined the Company
Jun. 1993 Joined Union Bank of Switzerland (currently UBS)
Aug. 1996 Joined Bankers Trust Asia Securities Ltd.
Apr. 1998 Joined Credit Suisse First Boston Securities (Japan) Limited
Dec. 1999 Joined Nikko Citigroup Limited (currently Citigroup
Global Markets Japan Inc.)
Mar. 2005 Executive Officer of Nikko Citigroup Limited, Internal
Control Supervisory Manager
Jul. 2009 Management Director of Group Compliance
Department of the Company
Apr. 2012 Senior Managing Director of the Company, Head of
Wholesale Compliance
Jun. 2012 Senior Managing Director of the Company, Group
Compliance Head (concurrently Senior Managing
Director of Nomura Securities Co., Ltd.)
Apr. 2013 Senior Managing Director of the Company, Group Compliance
Head (concurrently Representative Executive Officer of Nomura
Securities Co., Ltd., Internal Control Supervisory Manager)
Apr. 2015 Senior Managing Director of the Company, Deputy Chief of
Staff and Group Compliance Head (concurrently Representative
Executive Officer and Senior Corporate Managing Director of
Nomura Securities Co., Ltd., Internal Control Supervisory Manager)
Apr. 2016 Advisor of the Company (Current)
Jun. 2016 Director of the Company (Current)
Mr. Miyashita has engaged in legal and compliance work for many years at a number of securities companies, including the Company, and by
working in positions such as the Group Compliance Head of the Nomura Group, he has extensive experience and knowledge in the compliance
field. As a full-time member of the Audit Committee, he contributes to enhancing the effectiveness of audits by the Audit Committee.
Dame Clara Furse
Outside Director; External Member of the Bank of England’s Financial Policy Committee
Feb. 1983 Joined Phillips & Drew (currently UBS)
Jun. 1990 Non-Executive Director of the London International
Financial Futures Exchange (LIFFE)
Jun. 1997 Deputy Chairman of LIFFE
May 1998 Group Chief Executive of Credit Lyonnais Rouse
Jan. 2001 Chief Executive of the London Stock Exchange Group
Jun. 2010 Outside Director of the Company (Current)
Apr. 2013 External Member of the Bank of England's Financial
Policy Committee (Current)
Dame Clara Furse has held a number of significant positions, including Chief Executive of the London Stock Exchange Group, and she
was also made Dame Commander of the Order of the British Empire. Her achievements and insights have been evaluated highly both
within and outside of the Company. Applying her global and extensive experience with respect to financial businesses, Dame Clara Furse
contributes to the Company as an Outside Director.
Michael Lim Choo San Outside Director; Former Executive Chairman of PricewaterhouseCoopers, Singapore
Aug. 1972 Joined Price Waterhouse, Singapore
Jan. 1992 Managing Partner of Price Waterhouse, Singapore
Oct. 1998 Member of the Singapore Public Service Commission
(Current)
Jul. 1999 Executive Chairman of PricewaterhouseCoopers, Singapore
Independent Director of Olan International Limited
Sep. 2002 Chairman of the Land Transport Authority of Singapore
Sep. 2004
Jun. 2011 Outside Director of the Company (Current)
Nov. 2011 Chairman of the Accounting Standards Council, Singapore
Apr. 2013 Chairman of the Singapore Accountancy Commission
Mr. Lim has held a number of significant positions, including Executive Chairman of PricewaterhouseCoopers, Singapore and was also
awarded with national honors by the Government of Singapore three times. His achievements and insights have been evaluated highly
both within and outside of the Company. Applying his global and extensive experience and his high degree of expertise with respect to
international accounting systems, Mr. Lim contributes to the Company as an Outside Director.
David Benson
Director
Feb. 1997 Joined Nomura International plc
Jul. 1999 Head of Risk Management, Nomura International plc
Mar. 2005 Chief Operating Officer (COO) of Nomura International plc
Aug. 2007 Resigned from Nomura International plc
Nov. 2008 Chief Risk Officer (CRO),
Senior Managing Director of the Company
Jan. 2011 Senior Managing Director of the Company, Vice
Chairman, Risk and Regulatory Affairs
Apr. 2011 Vice Chairman of the Company (Senior Managing Director)
Jun. 2011 Director of the Company (Current)
Mr. Benson has held a number of significant positions, including Vice Chairman (Senior Managing Director) and Chief Risk Officer (CRO)
of the Company. Applying his experience and expertise, Mr. Benson contributes to strengthening the oversight functions of the Board of
Directors in relation to risk management.
Koji Nagai
Director, Representative Executive Officer, Group CEO
Apr. 1981 Joined the Company
Apr. 2003 Director of Nomura Securities Co., Ltd.
Jun. 2003 Senior Managing Director of Nomura Securities Co., Ltd.
Apr. 2007 Executive Managing Director of Nomura Securities Co., Ltd.
Oct. 2008 Senior Corporate Managing Director of Nomura
Securities Co., Ltd.
Apr. 2009 Executive Managing Director and Executive Vice
President of Nomura Securities Co., Ltd.
Apr. 2011 Co-COO and Deputy President of Nomura Securities Co., Ltd.
Apr. 2012 Senior Managing Director of the Company (concurrently
Director and President of Nomura Securities Co., Ltd.)
Aug. 2012 Representative Executive Officer and Group CEO of
the Company (concurrently Director and President of
Nomura Securities Co., Ltd.)
Jun. 2013 Director, Representative Executive Officer and Group
CEO of the Company (concurrently Director and
President of Nomura Securities Co., Ltd.) (Current)
Mr. Nagai has held a number of significant positions, including Director and President of Nomura Securities Co., Ltd. By having Mr. Nagai,
who serves as Representative Executive Officer and Group CEO of the Company, the Board of Directors will be able to easily understand the
business execution status and internal affairs of the Company, and he contributes to the effectiveness of the oversight functions of the Board.
Tetsu Ozaki
Director, Representative Executive Officer, Group COO
Apr. 1982 Joined the Company
Apr. 2004 Senior Managing Director of the Company (concurrently
Senior Managing Director of Nomura Securities Co., Ltd.)
Apr. 2008 Executive Managing Director of Nomura Securities Co., Ltd.
Oct. 2008 Senior Corporate Managing Director of Nomura Securities Co., Ltd.
Aug. 2012 Deputy President of Nomura Securities Co., Ltd.
Apr. 2013 Director and Deputy President of Nomura Securities Co., Ltd.
Apr. 2014 Executive Managing Director of the Company (concurrently
Deputy President of Nomura Securities Co., Ltd.)
Jun. 2016 Representative Executive Officer and Group COO of the
Company (concurrently Director and Deputy President
of Nomura Securities Co., Ltd.) (Current)
Mr. Ozaki has held a number of significant positions including CEO of the Wholesale Division (Executive Managing Director) of the
Company and Deputy President of Nomura Securities Co., Ltd. By having Mr. Ozaki, who serves as Representative Executive Officer and
Group COO serve concurrently as a Director, the Board of Directors will be able to easily understand the business execution status and
the status of the Company, and he contributes to more-effective oversight functions of the Board.
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future
Outside Directors of Major Subsidiaries in Japan
(Nomura Securities Co., Ltd. / Nomura Asset Management Co., Ltd.)
Outside Director’s Message
Nomura Securities Co., Ltd.
Toshiaki Hiwatari
Outside Director; Advisor Attorney of TMI Associates
Former Superintending Prosecutor
Apr. 1970 Public Prosecutor
Jun. 1997 Public Prosecutor, the Supreme Public Prosecutors’
Jul. 2008 Prosecutor General
Sep. 2010 Registered as Attorney-at-Law (Dai-ichi Tokyo Bar
Office
Aug. 2002 Detective Superintendent, Ministry of Justice
Jun. 2004 Administrative Vice-Minister of the Ministry of Justice
Dec. 2006 Superintending Prosecutor, Tokyo High Public
Prosecutors’ Office
Association); Advisor Attorney of TMI Associates
(Current)
Oct. 2012 Outside Director of Nomura Securities Co., Ltd. (Current)
Mr. Hiwatari has held a number of significant positions, including Administrative Vice-Minister of the Ministry of Justice and Prosecutor
General, and his achievements and insights have been evaluated highly both within and outside of the Company. Applying his
sophisticated expertise and extensive experience as a currently active attorney, Mr. Hiwatari contributes to Nomura Securities as an
Outside Director.
Motoki Ozaki
Outside Director; Former Chairman of the Board of Directors of Kao Corporation
Apr. 1972 Joined Kao Corporation (formerly Kao Soap Co., Ltd.)
Apr. 2000 President, Prestige Cosmetics of Kao Corporation
Apr. 2002 President, Global Fabric and Home Care of Kao
Corporation
Jun. 2002 Board of Director, Executive Officer of Kao Corporation
Jun. 2004 Representative Director, President and Chief Executive
Officer of Kao Corporation
Jun. 2012 President and Representative Director of the Kao
Foundation for Arts and Sciences (Current)
Jun. 2015 Outside Director of Nomura Securities Co., Ltd. (Current)
Mr. Ozaki has held a number of significant positions, including Representative Director, President and Chief Executive Officer of Kao
Corporation, and his achievements and insights have been evaluated highly both within and outside of the Company. Applying his
extensive experience with respect to management, Mr. Ozaki contributes to Nomura Securities as an Outside Director.
Nomura Asset Management Co., Ltd.
Rikio Nagahama
Outside Director; Board Chairperson of NPO Triton Arts Network
Apr. 1967 Joined Dai-ichi Life Insurance Company
Apr. 2003 Representative Director and Executive Vice President
of Dai-ichi Life Insurance Company
Jun. 2009 Councilor of DIAM Co., Ltd.
Jun. 2010 Board Chairperson of NPO Triton Arts Network (Current)
Jun. 2015 Outside Director of Nomura Asset Management Co.,
Jun. 2004 Representative Director and President of DLIBJ Asset
Ltd. (Current)
Management Co., Ltd.
Jan. 2008 Representative Director and President of DIAM Co.,
Ltd. (company name changed)
Mr. Nagahama has held a number of significant positions, including Representative Director and President of DIAM Co., Ltd., and his
achievements and insights have been evaluated highly both within and outside of the Company. Applying his extensive experience with
respect to management of an asset management company, Mr. Nagahama contributes to Nomura Asset Management Co., Ltd. as an
Outside Director.
Akiko Kimura
Outside Director; Of-Counsel, Anderson Môri & Tomotsune
Apr. 1973 Registered as Attorney-at-Law (Dai-ichi Tokyo
Apr. 2013 Member of the Certified Public Accountants and
Bar Association) and joined Nishimura Komatsu &
Tomotsune (currently Anderson Môri & Tomotsune)
Jan. 1977 Partner of Nishimura Komatsu & Tomotsune
Jan. 2011 Of-Counsel, Anderson Môri & Tomotsune (Current)
Jun. 2012 Outside Corporate Auditor of Fuji Electric Co., Ltd.
(Current)
Auditing Oversight Board (Current)
Jun. 2014 Outside Corporate Auditor of Daiichi Sankyo Co, Ltd.
(Current)
Jun. 2015 Outside Director of Nomura Asset Management Co.,
Ltd. (Current)
Ms. Kimura has held a number of significant positions, including many years of service in fields such as finance as Of-Counsel of
Anderson Môri & Tomotsune, and her achievements and insights have been evaluated highly both within and outside of the Company.
Applying her advanced expertise and extensive experience with respect to the law, Ms. Kimura contributes to Nomura Asset
Management Co., Ltd. as an Outside Director.
Nomura has a good board
culture that is open and invites
commentary and challenge
Dame Clara Furse — Outside Director
Dame Clara Furse has held a number of significant positions, including Chief Executive of the London Stock Exchange Group, and
she was also made Dame Commander of the Order of the British Empire. Her achievements and insights have been evaluated
highly both within and outside of the Company. Applying her global and extensive experience with respect to financial businesses,
Dame Clara Furse contributes to the Company as an Outside Director.
What are your thoughts on your mission as
As an Outside Director of Nomura Holdings,
an Outside Director?
could you please share with us your evaluation of
Nomura’s corporate governance system and the
I was delighted to be asked to join the board of
effectiveness of the Board of Directors?
Nomura Holdings in 2010, a year after I stepped
down as Chief Executive of the London Stock
Our board completed a self-evaluation of its
Exchange. My time at the Exchange pulled together
effectiveness this year. This supports the aims
a career in global markets with the challenge of
of the Corporate Governance Code recently
running a complex organization and listed company
issued by Japan’s financial authorities. I believe
that entered the FTSE-100. The Exchange was
this important exercise showed that Nomura
almost constantly in the public eye, valued as a
has a good board culture that is open and
national institution, but also subjected to critical
invites commentary and challenge. Suggestions
media attention.
to management are met with a prompt and
It was a period of immense change for the
satisfactory response. The Nomura board is
Exchange, as it navigated its way through a number
already very diverse with a broad range of
of strategic, technological, corporate, reputational,
experience, nationalities and perspectives.
anti-trust and shareholder challenges.
Moreover, independent Outside Directors are in
Prior to joining the Exchange, I had managed
the majority.
global business lines, mainly for UBS, covering
A committee system has been in place
commodity, currency, fixed income and derivatives
since 2003 and I have a high regard for the
markets. At that time, I was also on the boards
Audit Committee, which does a thorough job of
of the LIFFE and critical parts of the financial
evaluating and overseeing the Company’s risks. I
infrastructure, notably LCH.Clearnet and Euroclear.
am also pleased with the increasingly detailed and
This brought wider experience in the areas of
informative Risk Report presented at each board
financial networks and global inter-connectedness
meeting; a sharp focus on risk has become vital
as well as counterparty and operational risk.
in this more difficult, post-2008-crisis world where
My mission as an Outside Director is to bring
political risk has also increased in some important
this financial services and corporate experience
developed economies.
to the board table in a way that helps Nomura to
More recently, regular meetings for Outside
deliver its global strategy and create shareholder
Directors were introduced in order for us to
value, by putting clients at the heart of everything
exchange views and share our understanding of
it does.
rapidly changing issues outside the boardroom.
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future
Outside Director’s Message
Corporate Governance
Corporate Governance
http://www.nomuraholdings.com/company/cg/
Could you please share your thoughts on
What role do you think diversity should play
Nomura’s strategy of establishing a dominant
in global management?
position as Asia’s global investment bank?
One of my first invitations to speak within Nomura
I believe Nomura rightly sees many opportunities as
was from WIN (Women in Nomura) in London. I
Asia’s global investment bank. While transforming
was inspired by their businesslike and inclusive
the business model in Japan, Nomura pursues
approach, which welcomes all employees to regular
opportunities for growth across Asia, but is also
events and open discussions. I discovered that
in a unique position to support global clients as
Nomura has an impressive program to assist and
the most solid financial bridge between East and
support employees, with generous and sensitive
West. The recent strategic changes in EMEA and
initiatives during maternity and parental leave.
the Americas are important initiatives in this regard,
More recently, the Group COO has established
as they are geared to stabilizing the profitability of
a Diversity and Inclusion Committee, chaired
the global franchise, thereby improving the strength
by himself, to promote more active and diverse
and resilience of the bridge.
participation across the Company, consistent with
As regulatory authorities in all global centers
one of the three arrows of the Abenomics Growth
endeavor to secure a strong financial system,
Strategy.
Nomura management has worked hard to build
As more than 70 nationalities work for Nomura,
constructive relationships, in EMEA, for example,
I am pleased to see that diversity is embedded
where regulatory reform has been particularly
within the Company. Management is aware that
ambitious and demanding.
this will help Nomura to deliver financial solutions
I believe and expect that this strategic bridge
to clients around the world. Nomura is committed
will sustain and invite increasing amounts of ‘traffic’
to employee networks that support career
over the coming years and decades, delivering
opportunities across a wide range of nationalities,
important financial services to Nomura’s clients
cultures, ages and levels of experience and for
around the world.
female employees and LGBT staff. I believe this is
a source of strength that will help to drive future
growth for the Company.
Nomura Group is progressively working
to enhance corporate governance.
Fundamental Approach
Nomura Holdings recognizes that the enhancement
of corporate governance is one of the most important
issues in terms of achieving management’s goal of
enhancing corporate value by deepening society’s trust
in the firm and increasing the satisfaction of stakeholders
beginning with clients.
We are working to make the Group’s decision-
making process speedy and efficient, in conjunction
with ensuring effective oversight of management and
management transparency through the enhancement
of corporate governance.
Addressing Japan’s Corporate Governance Code
• Implemented all principles of Japan’s Corporate Governance Code
In anticipation of the enforcement of Japan’s
nominee” for all internal director nominees in the
Corporate Governance Code to all publicly listed
Notice of Convocation of the 111th Annual Meeting
companies from June 2015, Nomura Holdings has
of Shareholders (held in June 2015), along with
been taking various initiatives to reinforce corporate
undertaking an evaluation of the effectiveness of the
governance.
Board of Directors as a whole. As a result, Nomura
Additionally, we took new actions such as
Holdings has implemented all principles of Japan’s
disclosing the “Reasons for designation as a director
Corporate Governance Code at this time.
Establishing Corporate Governance Guidelines
• Structure for transparent/fair and timely/decisive decision-making
In November 2015, the Board of Directors of Nomura
An outline of the Corporate Governance Guidelines is
Holdings, recognizing the perspectives of various
provided on the next page.
stakeholders beginning with shareholders and
Please visit our website to view the full text of the
clients, established the Nomura Holdings Corporate
Corporate Governance Guidelines and the Corporate
Governance Guidelines, with the aim of defining
Governance Report, which discloses the status
and contributing to the realization of a framework
of our measures to address Japan’s Corporate
of effective corporate governance as a structure for
Governance Code.
transparent/fair and timely/decisive decision-making.
Corporate Governance
http://www.nomuraholdings.com/company/cg/
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Meetings attended only by Outside Directors are periodically held.
Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future
Corporate Governance
Outline of the Nomura Holdings Corporate Governance Guidelines
Board of Directors ( »p.42)
Internal Controls System ( »p.43)
• The Board of Directors shall, as a general rule, delegate its
authority to execute business to the Executive Officers. The
main role of the Board of Directors shall be management
oversight.
• The composition of the Board of Directors shall have a
diversity that enables active discussions from diverse
perspectives.
• As a general rule, the majority of the Board of Directors shall
be Outside Directors, and Directors shall include experts in
accounting, corporate management, and law, etc.
• Three (Nomination, Audit and Compensation) board
committees shall be established, each comprised of a
majority of Outside Directors.
• The Board of Directors shall, based on the evaluation by
each Director, analyze and evaluate the effectiveness of the
Board of Directors as a whole and disclose a summary of
the results.
» Nomination Committee
• The Nomination Committee shall decide director
nominees based on certain appointment standards,
including personality, insight, ethics, in-depth knowledge
and experience in his/her field of expertise.
• The Nomination Committee shall establish Independence
Criteria for Outside Directors and shall, as a general rule,
nominate Outside Director nominees who satisfy such
criteria.
• In light of the responsibilities of the Nomination
Committee, the Chairman of the Nomination Committee
shall be a Director who is well-versed in the business of
the Nomura Group and the practices of the securities
industry.
» Compensation Committee
• On the basis of the general rule of paying compensation
commensurate with business performance, the
Compensation Committee shall decide the compensation
of Directors and Executive Officers while seeking to
enhance objectivity and transparency based on analysis
performed by external evaluation institutions, etc.
• The Compensation Committee shall utilize deferred
compensation, to seek alignment with the interests of
shareholders and increase long-term incentives.
• In light of the responsibilities of the Compensation
Committee, the Chairman of the Compensation
Committee shall be a Director who is well-versed in the
business of the Nomura Group and the practices of the
securities industry.
» Audit Committee
• All members of the Audit Committee must satisfy
the criteria for independence in accordance with the
Sarbanes-Oxley Act of 2002.
• As a general rule, at least one member shall be a financial
expert.
• As a general rule, the Chairman of the Audit Committee
shall be an Outside Director in order to strengthen the
independence of the Audit Committee from execution
functions and to enhance the transparency of audit
activities.
• In order to enhance the effectiveness of audits, the Board
of Directors shall appoint an internal Director who does
not concurrently serve as an Executive Officer and who
is well-versed in the Nomura Group’s business as a full-
time member of the Audit Committee or an Audit Mission
Director.
• The Board of Directors shall oversee the status of the
maintenance and operation of internal controls through
audits by the Audit Committee and activities by the Internal
Audit division, which is independent from the business
execution functions.
• An Internal Controls Committee attended by the Group
CEO and the members of the Audit Committee shall be
established for the purpose of further strengthening and
enhancing the Internal Controls System.
• The involvement of the Audit Committee in the
implementation plans of the Internal Audit Division as well as
in the election and dismissal of the Head of the Internal Audit
Division shall be assured.
Risk Management ( »p.48)
• To ensure financial soundness and to maintain and
improve corporate value, management shall establish a risk
management framework and the Board of Directors shall
oversee the effectiveness of the framework.
Dialogue with Shareholders
• The Company shall treat shareholders equally based on their
shareholdings, and shall disclose information appropriately
and timely to avoid information disparity.
• The Company, based on the importance of shareholder
rights, shall take necessary measures to ensure that
shareholders are not unfairly precluded from exercising their
rights.
• The Company shall engage in a constructive dialogue with
major shareholders for the purpose of sustainable growth
of the Company and the mid- to long-term enhancement of
corporate value.
• Regarding dialogue with stakeholders, the Company
shall endeavor to enhance methods of dialogue and also
provide explanations on general policies for the allocation of
management resources.
• An officer in charge of IR shall endeavor to share the
outcomes of such dialogue with the Board of Directors.
Basic Policy for Strategic Shareholdings
• Regarding strategic shareholdings, the Company and
its core subsidiaries shall consider perspectives of
business strategy, and shall hold such shares only if such
shareholdings will contribute to maintaining/enhancing the
corporate value of the Nomura Group.
Fulfillment of Corporate Responsibilities ( »p.50-62)
• The Company established the “Code of Ethics of Nomura
Group” as a code of conduct for each director, officer, and
employee of the Nomura Group to comply with.
• The Company shall enhance corporate value in the long-
term by respecting the diversity and different values among
the directors, officers and employees of the Nomura Group,
and establishing a sound workplace to enable all directors,
officers, and employees to perform at their full potential.
• The Company shall actively engage in CSR activities,
including educational activities in economics and finance,
in addition to contributing to expanding securities markets
through daily business.
Measures for Reinforcing Governance
• Establishment of the Advisory Board
• Adoption of the “Company with Three Board Committees” structure
Since 2001, when we adopted a holding company
information disclosure system.
structure and listed on the New York Stock
Moreover, in 2003, we further strengthened and
Exchange (NYSE), we have taken steps to ensure
increased the transparency of our oversight functions
the transparency of management, including installing
and expedited Nomura Group’s decision-making
Outside Directors and establishing an Internal
process by adopting the “Company with Committees,
Controls Committee, a Compensation Committee
etc.” structure (now the “Company with Three Board
(the majority of the members are Outside Directors),
Committees” structure), a governance structure
and an Advisory Board of distinguished persons
under which management oversight and business
from outside the Company, and further improved our
execution functions are clearly separated.
Chronological Table
1994
Company with Board of Auditors
Appointed one Outside Statutory Auditor
1998
2001
2003
2004
Established the Compensation
Committee (voluntary)
Company with Committees, etc
Established the Nomination,
Audit and Compensation
Committees
Established the whistle-blowing system “Compliance Hotline”
Appointed two Outside Directors
Adopted a holding company structure and changed the Company’s name to
Nomura Holdings, Inc.
(1) Strengthen corporate governance and ensure transparency
(2) Election of two Outside Directors and two Outside Statutory Auditors
(3) Established the Internal Controls Committee
(4) Established the Executive Compensation Committee (one Representative
Director and two Outside Directors)
Listed on the New York Stock Exchange (NYSE)
Adopted a “Company with Committees, etc.” structure
Passed resolution on the Internal Controls System
Formulated the Code of Ethics of Nomura Group
2006
Company with Committees
Passed resolution on amending the Internal Controls System
Began making pledges to abide by the Code of Ethics of Nomura Group
2010
2012
2013
2015
Company with Three Board
Committees
2016
Diversification of the composition of Directors (appointed two non-Japanese
Directors and one female Director)
Outside Directors became the majority of Directors
Appointed an Outside Director who does not serve concurrently at Nomura
Holdings to Nomura Securities Co., Ltd.
Passed a resolution on amending the Internal Controls System
Published the Independence Criteria for Outside Directors of Nomura
Holdings, Inc.
Passed a resolution on amending the Internal Controls System
Appointed an Outside Director from outside the Nomura Group to Nomura
Asset Management Co., Ltd.
Established the Nomura Holdings Corporate Governance Guidelines
Established August 3 as Nomura Founding Principles and Corporate Ethics Day
Established “office of Non-Executive Directors and Audit Committee” as
an organization to support Directors’ execution of duties by ensuring full
provision of information to Outside Directors and so forth.
Passed a resolution on amending the Internal Controls System
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Corporate Governance
Board of Directors
Business Execution
• Outside Directors comprise a majority of the Board of Directors
• Emphasis on diversity within the Board of Directors to oversight from diverse perspectives
• Emphasis on the independence of Outside Directors
Nomura Holdings has made management oversight
We emphasize the independence of Outside
the main role of the Board of Directors. Based
Directors from the Nomura Group, and in order to
on supervision with an emphasis on an external
maintain such independence, we have established
perspective, we are aspiring to put in practice
Independence Criteria for Outside Directors within
management with a high level of transparency,
the Nomination Committee. As none of the Outside
through such means as structuring the Board of
Directors of Nomura Holdings fall under the
Directors with a majority of Outside Directors.
categories for which independence is considered
Moreover, in order to achieve effective oversight
suspect, and since none of the Outside Directors
of business execution functions from multiple
have any conflicts of interests with the shareholders,
perspectives, we place importance on diversity within
we have reported that each of the six Outside
the Board of Directors. Each Director of Nomura
Directors are independent Directors in our submission
Holdings has a diverse background in terms of
to the Tokyo Stock Exchange.
nationality, gender, professional experience, etc.,
and by utilizing their extensive experience in their
respective fields, such as accounting, corporate
Board of Directors (As of July 1, 2016)
Outside Directors
management and law, the Directors assist with the
Non-Japanese Directors
55% (6 of 11)
27% (3 of 11)
9% (1 of 11)
Female Directors
More information on the Company’s Independence
Criteria for Outside Directors
http://www.nomuraholdings.com/company/cg/data/
criteria.pdf
determination of important managerial matters and
oversee business execution.
Additionally, 6 of the 11 Directors making up
our Board of Directors are Outside Directors.
Management Structure
Shareholders’ Meeting
Board of Directors
Nomination
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, corporate
management experience and specialization, and independence
• Directors concurrently serving as Executive Officers are not members
Audit
Committee
• Three Directors, including two Outside Directors, one full-time member of the Audit Committee
• 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
Compensation
Committee
• Three Directors, including two Outside Directors
• Determines policy with respect to the particulars of compensation for each Director and
Executive Officer, as well as individual compensation
• Directors concurrently serving as Executive Officers are not members
Group CEO
Executive Management Board
Advisory Board
Established as a consulting body to the
Executive Management Board, with the
aim of bringing an external perspective to
the formation of our management strategy
Deliberates on and determines important management formation of our
management strategy matters, such as the management strategy for the Nomura
Group, business plans, budgets, and allocation of management resources
Group Integrated Risk
Management Committee
Deliberates on and determines important
matters concerning the integrated risk
management of the Nomura Group
Internal Controls Committee
Deliberates on and determines matters concerning the
establishment and assessment of internal control of the Nomura
Group and promoting proper corporate behavior
• Broadly delegate decision-making authority to the Executive Officers to ensure speedy and efficient
business execution
The Board of Directors has broadly delegated decision-
the Internal Controls Committee. These management
making authority for business execution functions to
bodies report to the Board of Directors on the status of
the Executive Officers to ensure that they can execute
their deliberations at least once every three months.
business with speed and efficiency. Furthermore, among
In order to further bolster our business execution
the matters of business delegated to the Executive
framework for financial operations that are becoming
Officers by resolutions adopted by the Board of
increasingly sophisticated and specialized, we utilize a
Directors, certain important matters must be deliberated
system whereby the Executive Officers delegate a part
and decided by specific management bodies within the
of their authority for business execution decisions to
Company, including the Executive Management Board,
Senior Managing Directors, whose role is to focus on
the Group Integrated Risk Management Committee, and
individual business and operations.
Internal Controls
• Established the Group Internal Audit Department, which is independent from the business execution
functions, and other similar audit sections in major subsidiaries
We are committed to strengthening and improving our
and its subsidiaries, in addition to the audits carried
internal controls system to promote proper corporate
out by the Audit Committee. The implementation
behavior throughout the Nomura Group, from the
status of internal audits is also reported to the Board
viewpoints of ensuring management transparency
of Directors and the Audit Committee.
and efficiency, complying with laws and regulations,
In addition, to strengthen the independence of the
controlling risks, ensuring the reliability of business
internal audit sections from the business execution
and financial reports, and fostering the timely and
functions, implementation plans and the formulation
appropriate disclosure of information. Furthermore,
of the budget of the Internal Audit Division, as well
in order to ensure effective and adequate internal
as the election and dismissal of the Head of the
controls, the Group Internal Audit Department, which
Internal Audit Division require the consent of the
is independent from the business execution functions,
Audit Committee. Audit Committee members may
and other similar audit sections placed in major
recommend changes to the implementation plan,
subsidiaries conduct internal audits of the Company
etc., to Executive Officers.
Internal Controls System
Internal Controls Committee
• Deliberates on and determines matters concerning the
establishment and assessment of internal control, along with
promoting proper corporate behavior
• Made up of the Group CEO, the Group COO, two Audit
Committee members, and persons appointed by the Group CEO
• Internal audit plan and budget approval
• Appointment and dismissal of IA head
Report
Agrees on IA’s audit
plan, human resources,
and budget
Report
Report
Audit Committee
• Consists of two Outside Directors
and one Director not concurrently
serving as an Executive Officer
Assists the Audit Committee
with its duties
Office of Non-Executive
Directors and Audit Committee
Internal Audit (IA)
Internal audit
Business
Management
Risk
Management
Compliance
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Corporate Governance
Compliance
Compliance
http://www.nomuraholdings.com/company/compliance/
Compensation for Directors and Executive Officers
As Nomura has adopted the “Company with Three
1. Base Salary
Board Committees” structure, the Compensation
Committee has prepared and approved the
Compensation Policy of Nomura Group and
Compensation Policy for Directors and Executive
Officers of Nomura Holdings, Inc.
Compensation for Directors and Executive Officers
http://www.nomuraholdings.com/company/cg/
compensation.html
Base salary is determined based on factors
such as professional background, career history,
responsibilities, and compensation standards
of related business fields. A portion of base
salary may be paid in the form of equity-based
compensation with a certain non-exercise period
to ensure that the interests of Directors and
Executive Officers are closely aligned with those of
shareholders.
Compensation Policy of Nomura Group
2. Annual Bonus
To enable us to achieve sustainable growth, realize a
long-term increase in shareholder value, deliver added
value to our clients, compete in the global market, and
enhance our reputation, Nomura has developed the
Compensation Policy of Nomura Group applicable to
regular employees, including senior management. The
policy is broadly 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 with 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.
The compensation of Directors and Executive Officers
comprises base salary, an annual bonus, and a long-
term incentive plan. The Compensation Committee
has approved the following matters related to the
compensation of Directors and Executive Officers:
Annual bonuses of Directors and Executive
Officers are determined by taking into account
both quantitative and qualitative factors.
Quantitative factors include performance of the
Group and the division results, while qualitative
factors include achievement of individual goals and
subjective assessment of individual contributions.
Depending on the level of bonus payment, a
portion of payment in cash may be deferred. In
addition, a portion of deferred bonus may be paid
in equity-based compensation with a certain non-
exercise period in lieu of cash. Such deferred
bonus may be unpaid or forfeited under specific
circumstances.
3. Long-Term Incentive Plans
Long-term incentive plans may be awarded to
Directors and Executive Officers, depending on
their individual responsibilities and performance.
Payments under long-term incentive plans are
made when a certain degree of achievements is
accomplished. Payments are made in equity-linked
awards with appropriate vesting periods to ensure
that medium- to long-term interests of Directors
and Executive Officers are closely aligned with
those of shareholders.
Form 20-F
http://www.nomuraholdings.com/investor/library/sec/
Nomura Group has established an appropriate compliance framework,
and insists on compliance with all applicable laws, rules and regulations
in all Group companies and departments.
Fundamental Approach
Compliance is a top management priority for Nomura
year. Also, we have established Nomura Founding
Group, and the Code of Ethics of Nomura Group
Principles and Corporate Ethics Day, as a day for
defines our fundamental policy on compliance. The
management and employees to annually reaffirm our
management and employees of the Group pledge
corporate culture and corporate ethics, underpinned
to abide by the rules stated in this code once each
by Our Founder’s Principles.
Compliance Framework
We have appointed a Group Compliance Head to
structures of each Group company, including
oversee compliance for the Group as a whole along
overseas offices.
with a Group Compliance Department that provides
In addition to Group-wide initiatives, Nomura
support. In addition, Compliance Officers have been
Securities has established a Compliance Program
assigned to each Group company to strengthen our
as a detailed action plan, and put into place a
internal controls in response to global business, and
compliance framework based on this program.
to develop and maintain the respective compliance
Nomura Securities’ Compliance Structure
• A Compliance Committee chaired by the
President oversees Company-wide initiatives
and is in charge of establishing and deliberating
on important issues related to internal controls.
• The Company has established the post of
Internal Administration Supervisor to monitor
compliance issues in line with Japan Securities
Dealers Association’s rule
• The Company has established the posts of
Sales Officers, Internal Controls Officers and
Compliance Officers
• The Compliance Division strengthens and
improves legal and regulatory compliance
as well as the internal controls system by
formulating internal rules and disseminating
them throughout the Company.
Nomura Holdings
Board of Directors
Audit Committee
Executive Management Board
Group Compliance Head
Direction
Report
Group Compliance Department
Direction
Report
Nomura Group companies
Compliance Officers
Direction
Report
Departments
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Compliance
Legal Compliance Measures
• Insistence on legal compliance and enhancement of management systems
• Establishment of a Compliance Hotline
• Carrying out compliance training
Ensuring Fair Financial Business Practices
• Prohibition of transactions with anti-social forces
• Prevention of acceptance or giving of bribes
• Management of conflicts of interest and prevention of insider trading
In all Group companies and departments, Nomura
by Nomura Holdings, including Outside Directors,
Nomura Group works to prohibit transactions with
business practices to prevent the acceptance or
Group insists on compliance with laws and
through the Compliance Hotline (persons reporting
anti-social forces and to prevent money laundering.
giving of bribes.
regulations and endeavors to prevent the occurrence
have the option of remaining anonymous). In
Nomura Group has established guidelines
We manage conflicts of interest and insider
of activities that may be construed as illegal by
FY2015/16, there were 19 calls received via the
related to gifts and entertainment of public officials
information from a global perspective by
structuring the necessary administrative systems. In
Compliance Hotline, and the status of related matters
and private-sector groups, and by disseminating
concentrating information in the Group Compliance
the event that such issues arise, they are reported in
was confirmed, and appropriate measures were
them throughout the Company, works to ensure fair
Department.
full to management-level officers without delay, and
processed.
organizations and systems are structured to respond
We conduct comprehensive compliance training
appropriately.
for all Executive Officers and employees on topics
Nomura employees who have become aware
such as the prevention of money laundering and
of potential legal or regulatory violations are able
insider trading, firewall regulations, and guidelines for
to report their concerns to persons designated
managing customer information.
Offering High-Quality Financial Services
Customer Protection and Information Security
• Appropriate segregation of customer assets
• Effective protection of clients’ personal information and other information assets of the Group
Under various applicable laws and regulations,
relevant U.S. standards as regards the segregation of
including the Financial Instruments and Exchange Act
customer assets by Ernst & Young ShinNihon LLC.
and the Personal Information Protection Act, Nomura
Nomura Group Information Security Policy is the
Nomura Securities seeks to enhance the quality of financial products and services offered to customers
Group works to properly protect customers’ assets
basic document governing the effective protection of
through the following initiatives under the Guidelines for Supervision of Financial Instruments Business
and information.
clients’ personal information and other information
Operators, etc.
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
• Carefully reviewing product details and taking
action to provide accurate and comprehensive
information
• Conducting sales and solicitation activities
in compliance with the Financial Instruments
and Exchange Act and applicable laws and
regulations governing each operation with an
overall understanding of the customer’s needs
and knowledge of financial instruments and
financial status
• Structuring systems that establish guidelines
for sales to senior customers and requiring
compliance with these guidelines
• Ensuring compliance with laws, regulations, and
internal rules through compliance training
In accord with various applicable laws and
assets. Customer-related personal information is
regulations, including the Financial Instruments
handled under stringent standards set out in Nomura
and Exchange Act, Nomura Securities properly
Group Privacy Policy and other information security-
segregates the assets of its customers from the
related rules, and in full compliance with personal
assets of Nomura Securities itself. Nomura Securities
information-related laws and regulations. For further
has received a report certifying its compliance with
information, please refer to our website.
all material aspects of the criteria in effect under
Privacy Policy
http://www.nomuraholdings.com/policy/privacy_hd.html
TO PI CS
Nomura Founding Principles and Corporate Ethics Day
Nomura Group, which celebrated its 90th anniversary in 2015, has established Nomura Founding Principles
and Corporate Ethics Day. This provides an opportunity each year for all of us to reflect on our corporate
culture and corporate ethics based on Our Founder’s Principles and remind ourselves of the actions that have
brought scrutiny upon the firm. Every year on Nomura Founding Principles and Corporate Ethics Day, we take
measures for everyone in each Group company, including overseas offices, to think about Nomura’s founding
principles and corporate ethics to ensure we never repeat the mistakes of the past.
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Risk Management
Risk Management
http://www.nomuraholdings.com/company/risk/
Nomura Group implements processes to properly identify the possibility
Ensuring Financial Soundness and Transparency
of potential losses arising from various operations and transactions,
• Calculate risk factors on a daily basis
• Utilize risk measurement models
and seeks to establish a framework for assessing all risks and enforcing
• Periodically conduct stress tests
appropriate controls.
Fundamental Approach
The business activities of Nomura Group are exposed
Risk Appetite Statement. This statement sets forth
to various risks such as market risk, credit risk,
the content of risks that the Group can undertake,
operational risk, model risk, and other risks caused
and it takes account of the Group’s business strategy
by external factors. We are working constantly to
and business targets, including the amount of capital
further upgrade and strengthen our risk management
and liquidity required under regulations, and the
systems. In parallel, Nomura Group has prepared its
business environment.
Risk Management Systems
The Risk Appetite Statement is proposed by the
risk appetite, the Group Integrated Risk Management
Chief Risk Officer (CRO) and the Chief Financial
Committee, which has been delegated responsibility
Officer (CFO), and submitted for final approval to the
by the Executive Management Board, is responsible
Executive Management Board. With a basic policy
for deliberating and determining all important matters
of controlling risks that arise in the course of the
pertaining to risk management.
Group’s operations within the limits of the Group’s
Internal Controls Committee
Report
Board of Directors
Executive Management Board
Group Integrated Risk
Management Committee
Group Internal Audit Department
CFO
CRO
Risk Management Departments
Report
Check
Individual Business Units
Audit
Form 20-F
http://www.nomuraholdings.com/investor/library/sec/
• Market risk management
• Credit risk management
• Operational risk management
• Other
Nomura Group calculates vast amounts of risk factors
on a daily basis using cutting-edge risk management
methodologies for measuring increasingly complex
and diverse risks. Based on periodic verification of risk
measurement models, and with the approval of the
authorities, the Group uses risk measurement models
to compute its capital adequacy ratio, thus ensuring
a high degree of reliability and transparency regarding
the soundness of Nomura Group’s financial position.
Furthermore, Nomura Group periodically conducts
stress tests to monitor the amount of losses that
may emerge under assumptions of extremely difficult
economic conditions.
Business Resilience*
• Established the Crisis Management Committee • Strengthen systems for dealing with major earthquake disasters
• Strengthen and enhance cyber security
Nomura Group has established the Crisis Management
Committee, comprised of officers who concurrently
serve as the Crisis Management Manager in each
Nomura Group company worldwide, to address any
crisis that may occur. Chaired by an Executive Officer
appointed by the Group CEO, this committee has
established a system for managing crises and ensuring
business continuity in the event of an emergency.
Under the crisis management system, the Crisis
Management Committee reports to the Executive
Management Board regarding matters related to crisis
management. In addition, this committee’s secretariat
regularly conducts employee safety verification drills,
disaster prevention drills, and business continuity drills,
in order to respond immediately 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 Nomura Group Crisis
Management Policy.
In addition, Nomura Group is using the lessons
learned at the time of the Great East Japan Earthquake
to develop systems toward natural and other disasters.
Moreover, in view of the release of studies by Japan’s
Central Disaster Prevention Council in 2013, regarding
the impact of earthquakes that might occur directly
beneath the Tokyo metropolitan area and along the
Nankai Trough off the coast of Nagoya, we reviewed our
disaster risk scenarios to take account of the impact of
such major earthquakes. Key issues identified were how
to deal with these disasters and how to secure business
continuity, and, as part of addressing these issues, we
are working to strengthen and upgrade our collaboration
with Nomura Group companies in Japan and overseas.
To deal with the increasing number of cyber attacks,
Nomura is taking further measures to enhance system
security, and, by forming a specialized unit, is working
to strengthen its organizational response. Nomura is
also endeavoring to further improve the capabilities
of its management and employees to handle cyber
attacks through training and practice drills, along with
enhancing cooperation on information sharing with
external organizations. For further details, please refer to
our website.
*Ability of an organization to anticipate, prepare for, and respond and adapt to
incremental change and sudden disruptions in order to survive and prosper.
Social and Environmental Risk Management
• Identify social and environmental risk in the assessment process and other business operations
We believe that considering the social and environmental
risks that may arise from various transactions is key to
managing our reputational risk. As such, in executing
our business operations, we focus on these risks in the
same cautious manner as legal compliance.
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future CSR Management
Nomura Group's CSR
http://www.nomuraholdings.com/csr/group/
Nomura Group’s CSR
Identification of Material CSR Issues
Fundamental Approach
Framework for Promoting CSR Activities
Nomura Group actively engages in initiatives to
The CSR Committee has been formed as the
address social issues to fulfill its social responsibilities
management-level decision-making entity for
as a corporate citizen. The Group believes
promoting Group-wide CSR programs. Chaired by
that promoting and managing corporate social
the chairperson appointed by the Group CEO, the
responsibility (CSR) activities properly is an important
committee comprises seven Executive Officers,
factor to maintain and increase its corporate value.
including the chairperson. The responsibilities of
The basic policy concerning CSR is set forth in
the committee include formulating policies for CSR
the Code of Ethics of Nomura Group and its Basic
initiatives as well as approving and monitoring
Management Policy. Moreover, Nomura Holdings
progress of these activities. The activities of the
Corporate Governance Guidelines formulated in
committee are reported to the Board of Directors and
November 2015 stated Nomura shall actively engage
the Executive Management Board accordingly. During
in CSR activities, including educational activities in
FY2015/16, the CSR Committee held two meetings.
economics and finance, in addition to contributing to
expanding securities markets through daily business.
Code of Ethics of Nomura Group
http://www.nomuraholdings.com/company/
basic/ethics.html
CSR Framework
Board of Directors
Japan
EMEA
Executive
Management Board
Report
Approve
CSR Committee
Report
Approve
Cooperation
Americas
Secretariat: Corporate
Citizenship Department
AEJ
Identification of Material CSR Issues in Nomura Group
Clients
Shareholders
Investors
Employees
Communities
Government organizations
NGOs/NPOs
Economic and business
groups
• Key non-financial indicators, such as GRI and SASB
• Dialogue with socially responsible investment (SRI) organizations
• Trends among financial institutions
Our Founder’s Principles
» Code of Ethics
• Contribute to economic growth and social development
• Draw on the capabilities of personnel and respect for diversity
» Basic management policy
• Maintain the spirit of putting the customer first, etc.
In 2014, Nomura Group reassessed its material CSR
CSR. Based on these, we identified the issues for
issues through reflecting the opinions of third parties,
the Group. Next, we assessed the “stakeholders’
hearings conducted across internal departments, and
materiality” of the identified issues based on the
receiving confirmations on our reassessment by the
evaluations of representative SRI institutions in Japan
CSR Committee.
and overseas. We then assessed and prioritized the
In the reassessment process, we first looked
issues as regards “the Group’s materiality” based
at the external elements. We analyzed the GRI
on hearings conducted across internal departments
Guidelines (G4), the criteria for information disclosure
and reflecting the Group’s Basic Management Policy.
on sustainability, such as those of the Sustainability
We formed a “materiality matrix” of the issues based
Accounting Standard Board (SASB), and Japan’s
on these two assessments to identify issues of high
Stewardship Code. Turning to the internal elements,
importance to both stakeholders and the Group as
we analyzed elements such as the Code of Ethics
material CSR issues.
of Nomura Group and our fundamental approach to
Material CSR Issues
Corporate Governance
Strengthening corporate governance
CSR management
Compliance
Legal compliance and reporting of violations
Ensuring fair financial business practices
Preventing bribery
Preventing money laundering
Risk management
Enhancing and strengthening risk management systems
Ensuring financial soundness and transparency
Business resilience
Social and environmental risk management
Contributing to sound
and sustainable
capital markets
Offering high-quality financial services
Products and services responding to environmental and social issues
Customer protection and information security
Improving financial literacy
Contributing to
sustainable communities
Global CSR initiatives
Communication with stakeholders
Fostering human
resources with a respect
for diversity
Fostering human resources
Diversity and inclusion
Employee-friendly work environments
Respecting human rights
» P.41
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» P.47
» P.47
» P.47
» P.48
» P.49
» P.49
» P.49
» P.46
» P.27
» P.47
» P.52
» P.54
» P.54
» P.58
» P.58
» P.60
» P.60
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our FutureBases of Nomura GroupImpact on stakeholders Contributing to Sound and Sustainable Capital Markets
Nomura’s social mission is to contribute to economic growth and
social development through the securities business by promoting the
appropriate flow of funds in the capital markets.
Fundamental Approach
One of the highest-priority issues for Nomura Group
financial and capital markets, and providing high-
is contributing to sound and sustainable capital
quality financial services. Moreover, Nomura is taking
markets. The Group is listening intently to the
active initiatives to contribute to society, principally
opinions of its customers and the market, offering
through providing opportunities for financial and
high-value-added solutions to its customers through
economic education.
Offering High-Quality Financial Services
• Working to offer high-quality and appropriate financial services to contribute to economic growth and
social development
For further details, please refer to the following sections of this report.
Retail Division: Pages 20-21 / Asset Management Division: Pages 22-24 / Wholesale Division: Pages 25-27 / Compliance: Pages 46-47.
Customer Protection and Information Security
• Appropriate segregation of customer assets
• Effective protection of clients’ personal information and other information assets of the Group
For further details, please refer to page 47.
Products and Services Responding to Environmental and Social Issues
• Underwriting and sale of social contribution-type bonds
• Promoting ESG investment within the Group
For further details, please refer to the following sections of this report.
Asset Management Division: Page 23 / Wholesale Division: Page 27 / CSR Key Facts: Page 74.
Improving Financial Literacy
• Providing more than 100 financial education lectures to universities annually
• Conducting off-site lectures by Nomura employees at elementary, junior high, and senior high schools
nationwide
• Developing educational programs according to contemporary needs
Knowledge and understanding of finance and
markets and appropriate flows of funds. Since the
economics are important for leading self-reliant,
1990s, Nomura Group has been providing financial
secure, and prosperous lives. We trust that having
and economic education targeting a wide range of
each and every citizen improve their financial literacy
age groups, from Japanese elementary and junior
leads to promoting the development of sound capital
high school students to adults.
TO PI CS
Perspectives on Broadening Access to
Financial and Economic Education
Expanding Financial and Economic Education
http://www.nomuraholdings.com/csr/society/education.html
Contributing to Social Development
since Our Foundation
Actions Ahead
In step with changes in Japan’s economy and society
Our Founder’s Principles contain the phrase “Nomura’s
including the creation of a Junior NISA program which
mission is to enrich the nation through the securities
is a tax-free, small-sum investment system for minors
business.” In essence, this means that Nomura will help to
and a lowering of the voting age to 18, there has been
create a fulfilling society through its business activities. This
growing interest in finance and economic education. In
spirit has been carefully handed down to the present day.
response, Nomura Group provides programs according
Under our Fundamental Management Policy, we
to society’s needs, through actions including teaming up
have set out to engage in educational activities regarding
with schools to develop textbooks focused on the theme
economics and investments. Every year, we send around
of fostering life skills. In addition, the Group will also work
400 Nomura Group employees to universities to serve
to nurture personnel who will become the next generation
as lecturers, along with conducting off-site lectures at
of leaders in the capital markets, and foster entrepreneurs
elementary, junior high and senior high schools across
who support new businesses. Nomura is working to
Japan.
Initiatives and Accomplishments in Review
make it possible for everyone, including people in remote
areas and economically disadvantaged children, to have
equal access to opportunities for financial and economic
The number of participants in all programs provided by
education. Similarly, for adult members of society, the
Nomura Group since 2000 has reached a cumulative
Group offers its Lifelong Learning Venues program in
total of around 720,000. Our financial education courses
regional communities and workplaces. The aim of this
for university students are attended by more than 10,000
program is to provide participants with knowledge of
students annually. Off-site lectures for elementary,
finance and investments that will enable them to live
junior high and senior high school students are carried
affluent “second lives.”
out more than 150 times a year, and more than 4,700
students have participated. In other activities, the Group
provides a wide range of educational content through
initiatives including lectures for adult members of society,
distribution of textbooks, the Nikkei Stock League stock
education contest and special support for the Nikkei
Future Investment Program.
2000 Nikkei Stock League stock education contest
2001 Financial education courses for universities
2004 Lectures on securities for adult members of society
2006 Provided textbooks to junior high schools nationwide
2008 Provided textbooks to elementary schools nationwide
“Let’s Learn Classes” off-site lectures for elementary
school students
2010 Financial education seminars for instructors
2011 Actual working experience and off-site lectures for
junior and senior high school students
“What is Investing?” “A Talk on Your Future and Money”
2014 Nikkei Future Investment Program
Development of new textbooks with instructors
Participation in Saturday school initiatives with Japan’s
Ministry of Education, Culture, Sports, Science and
Technology
2015 Renewal of a program for junior high school students
Provided “Dreams, Support, Company,” a finance and
economic education TV program for parents and their
children
Growing Demand
for Financial Knowledge
I believe that allowing students to come into
contact with professionals in their respective fields
is the key to nurturing students who think and act
independently. Talks given by businesspeople active
on the front lines have inspired many students to give
serious thought to their future educational and career
planning. Financial knowledge is crucial to surviving
in our increasingly complex and specialized society.
Therefore, I believe that demand and expectations for
Nomura’s program, which was developed based on
extensive specialized knowledge and experience, will
only continue to grow
in the years ahead.
Isao Hirano
Principal,
Komaba Toho Junior and
Senior High School
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Contributing to Sustainable Communities
Dialogue with Stakeholders
http://www.nomuraholdings.com/
csr/stakeholder/
We believe that dialogue with stakeholders inside and outside the Group
Dialogue with Stakeholders (Selected Examples)
is important to understand the expectations and requests of society and
reflect these in our business and CSR activities.
Fundamental Approach
Through continuing communication with a range
FY2015/16 Community Contribution Expenditure
of stakeholders, from customers to shareholders,
the community and employees, we are working
to contribute to finding solutions to social and
environmental issues. Nomura Holdings Corporate
Governance Guidelines, formulated in November
2015, laid out the principle that the Company shall
endeavor to contribute to the development of society
at all times and shall fulfill Nomura Group’s corporate
social responsibility as a corporate citizen through the
implementation of Our Founder’s Principles that have
been inherited since the foundation of the Company.
13.3%
I
H
4.2%
3.0%
2.2%
G
F
6.0%
E
D
12.2%
Total
Approx.
¥1.33
billion
C
B
9.0%
7.7%
A
42.4%
A: Education & young people
C: Science and Academia
E: Healthcare and Welfare
G: People
H: Emergency relief
B: Art and Culture, Sport
D: Community Contribution
F: Environment
I: Others
Note: The total includes approximately ¥0.14 billion from Nomura Foundation
and ¥0.05 billion from The Nomura Charitable Trust.
Global CSR Initiatives
• Share the basic CSR theme of “For Future Generations”
• Conduct activities in line with regional needs
In the regions around the world where Nomura
These activities will be focused on nurturing future
Group conducts its business activities, we will
generations, including activities aimed at eradicating
carry out activities in line with regional needs while
disparities that may be carried forward to future
forming partnerships with NGOs and other entities.
generations.
Themes
External Organization
Outline
Human rights,
labor, environment,
anti-corruption
United Nations (UN)
Global Compact
Participation in the Global
Compact Network Japan
UN Principles for
Responsible Investment
Participation in the Japan
network
Principles for Financial
Action for the 21st
Century
Climate Bonds Initiative
CSR Asia
Participation in a working
group on asset management,
securities, and investment
banking businesses
Participation as a partner in
activities to promote green
bonds
Exchanges of opinions on
ESG issues in Asia
Promotion, as a signatory, of
the climate change and water
programs
Environment
The Carbon Disclosure
Project (CDP)
ESG
ESG
ESG
ESG
TO PI CS
Dialogue with Communities
Urgent Humanitarian Assistance through Partnerships with NGOs
Japan Platform (JPF) was formed in 2000 to provide
his expectations for JPF’s future, noting that JPF’s
a new framework for humanitarian assistance by
activities have enhanced Japan’s presence on the
linking NGOs in Japan with political and business
international stage as a nation offering humanitarian
circles. Today, JPF is undertaking humanitarian
support and have led to the formation of stronger
assistance activities in the international community
relationships of trust between NGOs and corporations.
in cooperation with various institutions, including the
Nomura Group sees NGOs as important
United Nations. Nomura Group has been working in
stakeholders. Accordingly, Nomura will continue
collaboration with JPF since its establishment and
to work closely with NGOs and other stakeholders
For further details, please refer to page 56-57.
offering humanitarian aid.
as it pushes ahead with its corporate citizenship
In January 2016, a symposium was held to mark
activities.
Communication with Stakeholders
• Participate in initiatives in Japan and overseas to fulfill corporate social responsibility as a corporate citizen
One of the ways Nomura Group interacts with
with stakeholders, we carefully examine and review
stakeholders is through participation in activities
the activities and information disclosure we undertake
with various initiatives in Japan and overseas that
that are related to the economy, society (human
have the objective of contributing to society and the
rights and labor), and environmental issues. We also
environment. Through dialogue and collaboration
report to the CSR Committee when needed.
the 15th anniversary of the establishment of JPF.
While Nobuyuki Koga, Chairman of of the Board of
Directors of Nomura Holdings, Inc., gave a speech
as a representative of the business community,
reviewing JPF’s accomplishments from its founding
to the present day. He noted that JPF’s cooperative
framework, linking NGOs with political and business
circles, is functioning effectively and fostering
cooperation toward the goal of implementing timely
and effective humanitarian assistance. He shared
his perspectives on the significance of JPF and
Nobuyuki Koga, Chairman of the Board of Directors of Nomura Holdings, Inc.,
delivers a greeting at the 15th anniversary of the establishment of JPF.
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Contributing to Sustainable Communities
JAPAN
Gl ob al CSR Ini tia tives
Support for Tokyo 2020 Olympic and Paralympic Games
The Road to 2020 http://www.nomuraholdings.com/tokyo2020/
Support for Para-Sports
Recognizing that support for para-sports is
crucial, the Nomura Group is committed to
supporting para-sports as an official partner
of Japanese Para-Sports Association. Nomura
Group also supports Japan Para-Volleyball
Association as a special partner. This association
is working to popularize sitting volleyball, an official
event of the Tokyo 2020 Paralympic Games. The
Nomura Group will support para-sports by taking
steps such as broadening the appeal of these
Although public awareness of para-sports still remains low
in Japan, in the run-up to 2020, I would like to see the
paralympic games and para-sports become an integral
part of people’s lives, and to create a society where all
people can enjoy sports together, regardless of physical
disability. Sitting volleyball is a sport that is accessible
to a wide range of age groups, from elementary
school children to the elderly. I believe that enabling all
participants to truly enjoy and understand sitting volleyball
will ultimately lead to the advancement of this sport.
sports, training athletes, and encouraging general
Yoshihisa Mano, Chairman, Japan Para-Volleyball Association
understanding of para-sports.
EMEA
Americas
Nomura’s UK Community Affairs program is
split into three key areas: Two-Year London
Charity Partnership, The Nomura Charitable
Trust, and Employee Engagement. In 2015,
we signed a two-year agreement with Rays
of Sunshine, a charity that grants wishes for
seriously ill children. In one year, we have
raised over US$500,000 through a variety
of fundraising activities—from runs, walks
and challenge events to a talent competition,
raffles and quizzes. The partnership has been
an incredible success and this contribution
will provide over 200 wish experiences.
The CSR program in the Americas focuses on benefiting
the younger generation and local community. Nomura
works to help children study and learn in an effort to
positively impact their lifestyles. Nomura partners with
Read Ahead and the Covenant House New York to provide
mentorship and literacy support for children and teens in
the community. Nomura has held career sessions, book
drives and backpack drives to support local students
participating in these programs.
Instinet’s* CSR activities aim to reduce income
disparities among young people by motivating them to study
in addition to providing support for life planning. Instinet
partners with Elevate New York and Operation Backpack.
* Instinet, a Nomura subsidiary
Powai, India
AEJ
Nomura Powai continues to focus on supporting
the lesser privileged communities across India by
delivering quality education and healthcare. We
partner with various NGO’s and fund projects in
these focused areas, thereby creating significant
impact to the lives of children and youth from these
communities. One of the objectives of Powai CSR
is to integrate employee volunteering initiatives
with ongoing CSR projects. This provides every
employee an opportunity to contribute towards
the CSR efforts of the firm. Over the past year,
4,550 volunteer hours were put in by a total of
2,668 volunteers through 158 unique volunteering
initiatives, fund raisers, and drives conducted
collaboratively with our NGO partners.
In Asia ex-Japan, a group of employee volunteers
established the Nomura CARES network to be the
focal point for CSR initiatives across the region. We
now have charity partnerships with local NGOs in
Hong Kong, Singapore and China that our employees
support via various fundraising and volunteering events
throughout the calendar year. We also have local
CSR initiatives in Australia, Korea and India. Nomura
CARES focuses on four main streams: our local charity
partnerships, green/environmental initiatives including
annual beach cleanup events, small grant donations
to NGOs that our employees are actively involved
with, and the Interbank Not-For-Profit Director Training
Program in Hong Kong and Singapore that Nomura
helps to organize along with four other industry peers.
Japan women’s national sitting volleyball team seeks to deliver a strong performance at Tokyo 2020 Paralympic Games.
Nomura Holdings supports the Tokyo 2020 Olympic and Paralympic Games as the Gold Securities Partner.
56
57
Nomura Report 2016Nomura Report 2016Actions for Shaping Our FutureNomura Holdings will sponsor Tokyo 2020 Olympic and Paralympic Games (Tokyo 2020 Games) as the exclusive Gold Partner in the Securities category. Nomura Holdings sees the Tokyo 2020 Games as not just a sports event, but also a perfect opportunity for Japan to emphasize its commitment to embracing “Change and Challenge” on the world stage as it seeks to revitalize the Japanese economy and achieve sustainable growth by overcoming challenges such as deflation, low economic growth, and an aging population with a low birth rate. With this in mind, Nomura Holdings has decided to support the Tokyo 2020 Games as a sponsor in the highest domestic tier of the Tokyo 2020 Sponsorship Program. Eyeing 2020, all employees of the Nomura Group will make a concerted effort to contribute to the success of the Tokyo 2020 Games while fostering economic growth and social development in Japan. Fostering Human Resources
with a Respect for Diversity
Our People
http://www.nomuraholdings.com/csr/employee/
Developing a diverse workforce is Nomura Group’s greatest asset and is
one of the highest priority issues in continuing to create new added value.
Fundamental Approach
Today, persons of more than 70 nationalities work
orientation, gender identity, age, religion, beliefs,
in the Group and this diverse workforce is the
social standing, physical impairments, or any other
Group’s greatest asset. Each and every employee
criteria. In addition, the Nomura Holdings Corporate
is given an equal opportunity to be active and
Governance Guidelines formulated in November 2015
successful, utilizing her/his capability and personal
promotes establishment of a sound workplace to
strengths. The Code of Ethics of Nomura Group
enable all employees to perform at their full potential
forbids discrimination in any way on the basis
and strive to enhance corporate value.
of nationality, race, ethnic origin, gender, sexual
Diversity and Inclusion at Nomura
Nomura Group employees come from various
Diversity and Inclusion Committees respectively as
backgrounds and have different sets of values, but
an organization to hold firm-wide discussions on
we believe that by showing mutual respect and by
promoting such active participation. The Nomura
working together we will be able to provide high
Group Diversity and Inclusion Committee will be
value-added services to fulfill customers’ diverse
chaired by the Group COO and members include
needs. In December 2015, Nomura Holdings and
representatives of each division. Through these
Nomura Securities established the Nomura Group
measures, we have established a system in which
Diversity and Inclusion Department as an organization
all employees are enabled to demonstrate their
to promote active participation of diverse employees.
individual character and capabilities.
In April 2016, the two companies established
Supporting Women through Their Career
In May 2015, Nomura Securities set a quantitative
other measures to establish an equal employment
target of 550 female managers by 2020 (384 as of
environment in which women can fully exert their
June 1, 2016). In March 2016, an action plan was
abilities.
announced to promote the active participation of
Initiatives to support women in improving their
women in the workplace.
careers include a mentoring program for management
The action plan outlines initiatives to achieve
candidates and a sponsorship program supported by
quantitative targets, including support for female
senior management, among other efforts to further
employees' career formation and support for
aid women's active participation.
balancing their careers with life events, among
Employee Networks
Nomura has three autonomously operated
employee networks that provide a range of
events with information related to diversity in the
workplace and provide opportunities to share both
internally and externally.
• Women’s career advancement
Women in Nomura (WIN)
• Health, childcare and senior care
Life & Family Network considering
work-life management
• Multicultural, disability, LGBTA
Promote understanding of diverse value systems
Multicultural value
Employment of People with Disabilities
Nomura Group motivates employees with disabilities
work and aim to provide them with a stable work life.
by deciding their job tasks (job description)
At Nomura Securities, each year, the employment
assignments flexibly through ongoing discussions
rate people with disabilities continues to exceed the
with the workplaces where they will be assigned. By
legal requirements, and they are contributing actively
placing them in positions suited to their capabilities,
in a wide range of departments.
Nomura encourages them to be autonomous in their
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Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Fostering Human Resources with a Respect for Diversity
Our Environment
Our Environment
http://www.nomuraholdings.com/csr/environment/
Employee-Friendly Work Environments
• Provide work environments enabling each employee to fully concentrate on work in a physically and
mentally healthy condition
• Build healthy labor-management relationships
• Realizing work practices that allow flexibility and diversity
Mental Healthcare
To safeguard the mental health of employees, we
Realizing Work Practices that Allow
Flexibility and Diversity
provide access to psychiatrists and an employee
Management and labor are monitoring employees’
counseling room staffed by a dedicated professional.
working hours to maintain physical and mental health of
Since May 2016, we have conducted stress checks
employees and enable them to conduct work efficiently.
to promote employee awareness of their own stress,
Also, in some departments, Nomura works to optimize
and aim to prevent mental health issues from arising
total hours worked by giving consideration to the actual
by creating workplaces that are easy to work in.
conditions in each department and having managerial
Furthermore, we are committed to helping employees
staff exercise flexibility regarding hours worked,
who have taken leave to recover from mental illness
including such measures as adopting a work shift
return to the workplace.
Relationships with Labor Unions
system and encouraging employees to use their allotted
vacation days. Moreover, Nomura’s flexible work styles
provide employees with work security for the long term.
More than half of the employees of Nomura
In specific terms, Nomura has endeavored to provide
Securities are members of the Nomura Securities
improved arrangements that allow employees to take
Employees Union, and Nomura Securities has
standing labor agreements with the union. To
half-day paid vacation time and leave for childbirth and
child-rearing, and has enhanced the system for nursing
maintain sound and healthy relationships between
care. In fact, all of the benefits provided by Nomura are
labor and management, discussions are conducted
above the legal requirement minimum, including leave
with the union on a wide range of topics on day-to-
before and after childbirth, leave for child-rearing, leave
day issues, including respect for employee rights
for nursing for sick children, subsidies for nurseries,
and management issues. Through these discussions,
nursing care leave and long-term leave for senior care.
management and labor share views, and employees
Nomura has also started a corporate contract to use
in the workplace have the opportunity to make their
nurseries to improve the level of support for those
views known.
engaged in both child-rearing and work.
Respecting Human Rights
• Established various mechanisms to prevent discrimination and harassment
• Continue to conduct human rights training
• Bolstered Sexual Harassment/Power Harassment Hotline
The Nomura Group has set up Nomura Group
awareness about human rights issues. The Group
Human Rights Committee to have discussions over
has established consultation contacts both within
various human rights issues and determine human
and outside the Company and provides similar
rights initiatives. In addition, we continue to hold
advisory functions for all harassment issues.
human rights training for all Nomura people, including
members of the Board of Directors, to create greater
In 2009, Nomura Group created both its Environmental Statement and
Environmental Policy and, with the Environmental Activities Working
Group as the core, the Group is proactively working to reduce the
environmental impact of its business activities.
Fundamental Approach and Environmental Management
The Code of Ethics of Nomura Group states, “Nomura
activities. Also, to make sure the plan, do, check,
Group is committed to acting in an environmentally
action (PDCA) management approach is functioning,
responsible manner and should, therefore, approach
internal environmental audits are conducted
environmental issues positively.”
periodically.
In Japan, we have established an environmental
Our offices around the world are implementing
management system (EMS) and are implementing
environmental initiatives. For example, our London
comprehensive environmental preservation activities
headquarters building obtained ISO 14001
to deal with environmental risks and issues. Our
certification in 2007 following an audit performed by
Environmental Activities Working Group, which is a
a local accreditation body and has maintained its
Group-wide organization, meets once a month to
certification to the present.
monitor the progress of environmental preservation
Nomura Group Environmental Management Framework
Board of Directors
Executive
Management Board
Report
Approve
CSR Committee
Report
The Head of
Environmental Affairs
Environmental Activities
Working Group
Cooperation
Approve
Nomura Group
companies
Nomura Securities
head office/branch
offices
Asia
Europe
Americas
Environmental Targets
We set environmental goals for each year and
To deepen the understanding of environmental
closely manage the progress of our environmental
issues and conduct related educational programs, we
preservation activities. In Japan, in line with the target
have held an annual environmental training program
to cut electricity consumption per square meter in
for all Nomura Group employees since 2009. In
FY2030/31 by 20% or more from FY2009/10, the
FY2015/16, 94% of employees in Japan participated
Group is working to conserve resources and energy.
in this program.
60
61
Nomura Report 2016Nomura Report 2016Actions for Shaping Our Future Our Environment
Nomura Group Environmental Objectives and Progress (Japan)
FY2015/16 targets
Reduction of
greenhouse gas
emissions
Reduce domestic Nomura Group CO2
emissions per square meter of floor space
by 20% or more from FY2009/10
Assessments
〇
Reduction: 31.3%
Shift and maintain the percentage of fuel-
efficient, low pollution leased vehicles of
Nomura Securities at 95%
〇
Switchover ratio: 99.9%
FY2016/17 targets
Reduce domestic Nomura Group CO2
emissions per square meter of floor space
by 20% or more from FY2009/10
Reduce the CO2 emissions per mileage
driven of leased vehicles of Nomura
Securities from the previous year
Raise the wastepaper recycling rate at
principal offices to 95%
〇
Recycling ratio: 99%
Reduce the waste emissions volume at
principal offices from FY2013/14
Effective use of
resources
Have green products account for 85% of
supplies request system items
Reduction of paper
usage
Reduce use of copy paper (as measured
by the annual volume purchased) from the
previous year
〇
Purchase ratio: 88.65%
×
3.9% increase year on year
Encourage electronic document delivery
service
〇
Accounts accepting electronic document
delivery: 1.35 million
Have green products account for 85% of
supplies request system items
Reduce use of copy paper (as measured
by the annual volume purchased) from the
previous year
Encourage electronic document delivery
service
Contribution to
environment through
Nomura’s main
businesses
Increase the number of financial products
and services that help resolve social issues
〇
Pursued underwriting and sales of
sustainable development bonds to promote
“social contribution-type investments”
Increase the number of financial products
and services that help resolve social issues
Note: For further information on environmental objectives, please visit: http://www.nomuraholdings.com/csr/environment/management
Efforts to Address Climate Change
The proper management of climate change risk
Nomura Group is working to lighten the impact of
and the promotion of measures to deal with global
its activities on the environment through the purchase
warming will lead to solutions to social problems
of green power. Our purchases of green power began
and will contribute to maintaining and increasing
domestically in 2006, and these reached a cumulative
corporate value. Nomura Group, as a multinational
total of 60.76 million kWh. Beginning in 2014, we have
corporation with offices around the world, is making
set a goal of continuing these purchases of green
every effort to help resolve climate change issues
power (from biomass power generation and other
through its business activities and to reduce the
green sources) for three consecutive years, and it will
impact of its business activities on the natural
be allocated to our principal domestic offices (located in
environment.
Nihonbashi in Tokyo, Osaka, and Nagoya). In addition,
We collect and disclose environmental
at our offices in London and elsewhere in Europe, we
information, and, since FY2009/10, we have
make use of electric power generated by renewable
introduced third-party assurance verifications to
energy sources, including hydroelectric power.
ensure the reliability of this information (refer to page
78 for the third-party verification).
Going Paperless and Promoting Recycling
We are making efforts to more effectively use limited
reduce paper usage. We also use these devices for
natural resources and reduce the environmental
training and internal meetings.
impact of our activities and assist in the creation of a
We are also continuing to expand the range of
recycling-oriented society. As part of our commitment
documents that are distributed electronically for our
to reducing paper usage, we continue to digitize
Nomura Home Trade service.
prospectuses, reports, forms, and other documents.
During FY2015/16, approximately 11.13 million
Beginning in 2012, our initiatives have included
documents were delivered electronically.
providing all of our sales staff with tablet devices
In our offices, we are working to raise employee
featuring digitized sales and marketing tools to
awareness of the amount of paper they use as part
enhance the quality of our services and further
of our campaign to reduce paper consumption.
62
Performance
Review &
Data Section
In this section, we present the basic information needed to
understand the Nomura Group, beginning with our performance
history, in addition to our Company-wide and business segment
results for the fiscal year ended March 31, 2016 and Nomura
Holdings’ financial strategies.
Nomura Report 2016 Key Financial Data
P/L
Net revenue
Income before income taxes
Net income*
*Net income attributable to Nomura Holdings shareholders
Segment information
Net revenue
Retail
Asset Management
Wholesale
Subtotal
Other
Unrealized gain (loss) on investments in
equity securities held for operating purposes
Income (loss)
before income
taxes
Net revenue
Retail
Asset Management
Wholesale
Subtotal
Other
Unrealized gain (loss) on investments in
equity securities held for operating purposes
Income before income taxes
Geographic information*
Income (loss)
before income
taxes by region
Japan
Americas
Europe
Asia and Oceania
Subtotal
Consolidated
(billions of yen)
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
1,535.9
1,813.6
1,557.1
1,604.2
1,395.7
85.0
11.6
237.7
107.2
361.6
213.6
346.8
224.8
165.2
131.6
Funding and liquidity
Liquidity portfolio*
Short-term unsecured debt
Long-term unsecured debt
(billions of yen)
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
5,427.7
5,883.5
6,127.2
6,064.0
5,947.1
3,009.1
2,293.3
2,969.3
2,557.0
3,303.8
6,373.0
6,457.3
6,218.6
6,509.4
6,593.6
*Definition differs from financial disclosures reflecting Liquidity Management’s view. Cash and cash deposits portion of liquidity portfolio excludes funds on deposit at exchanges
and segregated client funds.
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Per share data
(billions of yen)
350.3
65.8
555.0
971.1
560.9
397.9
68.9
644.9
511.9
80.5
765.1
476.5
92.4
789.9
435.6
95.4
720.3
1,111.7
1,357.5
1,358.7
1,251.3
664.2
188.8
220.8
165.1
3.8
37.7
10.7
24.7
(20.7)
1,535.9
1,813.6
1,557.1
1,604.2
1,395.7
63.1
20.5
(37.7)
46.0
35.2
3.8
85.0
100.6
21.2
71.7
193.5
6.6
37.7
237.7
192.0
27.1
111.8
330.9
20.0
10.7
361.6
161.8
127.6
32.1
82.2
276.1
46.0
24.7
346.8
36.7
15.4
179.7
6.1
(20.7)
165.2
(billions of yen)
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
214.1
317.2
386.3
363.2
244.8
(24.6)
(91.5)
(12.9)
(129.1)
25.7
(93.1)
(12.1)
(79.4)
29.5
(48.9)
(5.2)
(24.7)
(27.6)
(23.5)
34.6
(16.4)
(32.0)
(67.4)
19.8
(79.6)
Basic-net income attributable to Nomura Holdings
shareholders per share (EPS)
Diluted-net income attributable to Nomura Holdings
shareholders per share (EPS)
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
3.18
29.04
57.57
61.66
36.53
(yen)
3.14
28.37
55.81
60.03
35.52
Nomura Holdings shareholders’ equity per share (BPS)
575.20
618.27
676.15
752.40
748.32
Dividends per share (DPS)
Dividend payout ratio (%)
6.0
8.0
188.7%
27.5%
17.0
29.5%
19.0
13.0
30.8%
35.6%
Consolidated capital adequacy, etc.*1
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
Tier 1 capital
Tier 2 capital
Total capital
RWA
Tier 1 capital ratio
CET 1 capital ratio*2
Consolidated capital adequacy ratio
Consolidated leverage ratio*3
HQLA*4
LCR*4
(billions of yen)
2,090.2
2,092.9
2,314.2
2,459.2
2,577.5
319.6
359.2
401.5
361.2
323.1
2,427.0
2,452.1
2,715.7
2,820.4
2,900.6
14,681.0
17,546.7
17,425.9
18,929.2
15,970.5
14.2%
14.2%
16.5%
—
—
—
11.9%
11.9%
13.9%
—
—
—
13.2%
13.2%
15.5%
—
—
—
12.9%
12.9%
14.8%
3.82%
16.1%
15.4%
18.1%
4.28%
(trillions of yen)
—
—
6.2
175.8%
*1 Figures for March 2012 were prepared under Basel 2.5 standards. Figures for March 2013 to March 2016 were prepared under Basel 3 standards.
*2 CET 1 capital ratio is defined as Tier 1 capital minus minority interests divided by risk-weighted assets.
*3 Tier 1 capital divided by exposure (sum of on-balance sheet exposures and off-balance sheet items).
*4 Monthly average of 4Q.
85.0
237.7
361.6
346.8
165.2
Number of shares outstanding, share price, etc.
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
*Region information is based on US GAAP. Revenues and expenses are allocated based on the country of domicile of the legal entity providing the service. This information is not
used for business management purposes.
Number of shares outstanding (thousands)
3,822,563
3,822,563
3,822,563
3,822,563
3,822,563
ROE
ROE
B/S
Total assets
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
0.6%
4.9%
8.9%
8.6%
4.9%
Share price (fiscal year-end) (yen)
Market capitalization (trillions of yen)*
PBR (times)*
PER (times)*
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
35,697.3
37,942.4
43,520.3
41,783.2
41,090.2
(billions of yen)
*Figures based on the fiscal year-end share price.
Total Nomura Holdings shareholders’ equity
2,107.2
2,294.4
2,513.7
2,707.8
2,700.2
Gross leverage (times)
Net leverage* (times)
16.9
10.4
16.5
10.4
17.3
10.4
15.4
9.3
15.2
9.6
*Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity.
366
1.4
0.64
577
2.2
0.93
662
2.5
0.98
706.2
502.9
2.7
0.94
1.9
0.67
13.77
115.09
19.87
11.50
11.45
64
65
Nomura Report 2016Nomura Report 2016Performance Review & Data Section Net income*1 and EPS*2
Net revenue in FY2015/16
Wholesale costs*1
Aiming at reducing costs by approximately
20% compared to FY2014/15
Message from the CFO
I was appointed as CFO in April 2016.
Prior to that, I spent around 20 years working
in finance-related roles that supported our
businesses. Based on this background, I have
set myself two key missions to carry out as CFO.
My first mission is to improve profitability
and enhance the firm’s capital efficiency. For
instance, I will track the progress of our recently
announced cost reductions to ensure they
are properly carried out. I will also allocate
resources appropriately and evaluate the
return on resources to ensure that our limited
management resources are put to the best use.
My second mission is to maintain our appro-
priate financial position. Nomura’s core business
is to provide financial products in the volatile
capital markets. Amid the trend to apply tighter
regulations to global financial institutions, it is
critical to have abundant liquidity and a solid
financial position. Indeed, at times these can
also be a competitive advantage.
Takumi Kitamura
Chief Financial Officer (CFO)
(Billions of yen)
250
200
150
100
50
0
60.03
55.81
35.52
28.37
3.14
2012
2013
2014
2015
2016
(Yen)
100
80
60
40
20
0
■ Net income*1 (lhs)
*1 Net income attributable to Nomura Holdings shareholders.
*2 Diluted net income attributable to Nomura Holdings shareholders per share.
EPS*2 (rhs)
(Fiscal years ended March)
Other
Net revenue
¥ 165.1billion
Income before
income taxes
¥ 6.1 billion
Wholesale
Net revenue
¥ 720.3 billion
Income before
income taxes
¥ 15.4 billion
Segment total
¥1,416.4
billion
Retail
Net revenue
¥ 435.6
billion
Income before
income taxes
¥ 127.6
billion
Asset
Management
Net revenue
¥ 95.4
billion
Income before
income taxes
¥ 36.7
billion
66
8,000
7,519
6,879
6,511
6,419
5,871
6,000
4,000
2,000
0
20,000
15,000
10,000
5,000
0
14.2
13.2
11.9
12.9
16.1
5.9
6.1
6.1
5.9
5.4
20
15
10
5
0
8
6
4
2
0
FY2015/16 Financial Results
Improving Profitability and
Capital Efficiency
The year ended March 2016 started off relatively
smoothly. However, the second half of the
Our first priority must be to create a lean
year proved to be challenging as client activity
structure capable of delivering profits amid
weakened on the back of fears over a slowdown
challenging market conditions. We are focused
in China from August onwards and uncertainty
on the future, investing in IT systems to increase
surrounding the direction of monetary policy in
the efficiency of our work processes, and
major countries. Asset Management reported
intensifying our focus on areas where we can
stronger earnings as it continued to grow its
compete.
assets under management. However, Retail
Our Wholesale has started to review its
and Wholesale both booked a decline in pretax
businesses in EMEA and the Americas with the
income compared to the previous year. As a
aim of improving international profitability. We
result, income before income taxes from our
are lowering our breakeven point by closing
three business segments totaled ¥179.7 billion,
some businesses and streamlining others. We
representing a decline of 35% year on year.
250
Aside from the three segments, there was
100
downward pressure on earnings from unrealized
200
80
losses on securities held due to the decline
in stock prices and expenses related to the
150
60.03
60
settlement of legal proceedings. Group income
100
40
before income taxes was ¥165.2 billion, net
35.52
55.81
28.37
income was ¥131.6 billion, and earnings per
50
share (diluted) was ¥35.52.
3.14
0
20
0
(Millions of dollars)
8,000
7,519
−15%
6,879
6,511
6,419
Approx. −20%
5,871
6,000
4,000
2,000
0
are also focusing our management resources
on profitable areas that require a high-level of
expertise. We have made significant cost reduc-
tions in the past. This time, by closing certain
businesses, we are taking an even sharper
approach to refining our business portfolio.
We are working to ensure the optimal
allocation of financial resources across
businesses and regions in order to meet the
needs of our clients and move swiftly to capture
business opportunities as they arise. We are
regularly monitoring whether the resources
allocated to each business are generating
sufficient returns. We are making the necessary
decisions and reallocating management
resources flexibly, taking into account a compre-
hensive range of factors for each business
including the earnings outlook, the relevance
to our franchise, and our position within the
industry.
2012 2013 2014 2015 2016
Future run rate
costs*2
(Fiscal years ended March)
■Fixed costs ■Variable costs
*1 Converted into USD using average month-end spot rate for each period.
*2 Cost base assuming FY2015/16 business environment continues.
20,000
15,000
10,000
5,000
0
16.1
14.2
13.2
11.9
12.9
20
15
10
5
0
8
6
4
2
0
67
5.9
6.1
6.1
5.9
5.4
Nomura Report 2016Nomura Report 2016Performance Review & Data Section
Message from the CFO
Performance Review of Divisions / Retail
Financial Position
250
Shareholder Returns
100
One of our strengths is our robust financial
200
position. Since the global financial crisis in 2008,
80
Our main approach to shareholder returns is to
consistently improve shareholder value while also
150
there has been much discussion about tight-
60.03
60
providing returns in the form of dividends. A key
ening regulations for global financial institutions.
100
40
Several key regulations are yet to be finalized, so
35.52
55.81
at the moment, we are not sure of the full impact
50
20
of these regulations on our business. That said,
0
as of the end of March 2016, our Tier 1 capital
3.14
0
28.37
indicator for dividends is a consolidated dividend
payout ratio of 30% based on half-yearly
consolidated earnings. In determining dividends,
we also take into account a range of factors
including the regulatory environment globally and
ratio remained high at 16.1%. Our liquidity
our operating environment. For the year ended
portfolio was ¥5.9 trillion, which positions us
March 2016, we paid an annual dividend of ¥13
as being able to continue operating for one
per share, representing a consolidated dividend
year under liquidity stressed market conditions
payout ratio of 35.6%.
without the need for additional funding.
As part of our flexible capital policy, we also
Nomura has a broad range of stakeholders
conducted a share buyback program to improve
8,000
including clients, shareholders, creditors,
7,519
6,879
counterparties, financial and taxation authorities
6,000
in various countries, and credit rating agencies.
6,511
6,419
5,871
capital efficiency. Working towards our 2020
target of EPS of ¥100, we will invest in business
areas with strong profitability and high growth
I believe it is essential to listen closely to what
potential while delivering appropriate shareholder
4,000
our stakeholders have to say and implement
returns, taking into account our share price and
the best financial strategy and capital policy in
regulatory capital requirements.
such a way that allows us to achieve sustainable
2,000
growth into the future.
0
RWA and Tier 1 capital ratio*
Liquidity portfolio*
(Billions of yen)
20,000
15,000
10,000
5,000
0
16.1
14.2
13.2
11.9
12.9
2012
2013
2014
2015
2016
(%)
20
15
10
5
0
(Trillions of yen)
8
6
4
2
0
5.9
6.1
6.1
5.9
5.4
2012
2013
2014
2015
2016
(End of March)
(End of March)
Tier 1 capital ratio* (rhs)
■■ R WA (lhs) ■
* Figures for March 2012 were prepared under Basel 2.5 standards, and
figures for March 2013 to March 2016 were prepared under Basel 3
standards.
* Definition differs from financial disclosures reflecting Liquidity Management’s
view. The cash and cash deposits portion of liquidity portfolio excludes
funds on deposit at exchanges and segregated client funds.
FY2015/16 Financial Results
At the start of FY2015/16, stock markets were
relatively calm, with the Nikkei Stock Average
hovering around ¥20,000. In August however,
concerns about the Chinese economy and the
impact of global monetary policies resulted in a
dramatic decline in stock prices and meaningful
yen appreciation. In addition, the beginning of
calendar year 2016 also saw some turbulent
price movements as the Nikkei Stock Average
declined for six consecutive days and the yen’s
exchange rate against the U.S. dollar again
reached the ¥110 range.
The challenging market environment, particu-
larly in the second half of the year, had a negative
impact on Retail investor sentiment. Sales of
stocks and investment trusts slowed and as a
result, Retail net revenue was ¥435.6 billion, down
9% from last year, and income before income taxes
was ¥127.6 billion, down 21% year on year.
Initiatives to Transform Our Business
Model and Expand Our Client Base Are
Ongoing
Aiming towards “winning client trust” and “business
expansion,” our Retail Division has been working
to transform its business model since August
2012. The Division is targeting to achieve Retail
client assets of ¥150 trillion, a sign of trust placed
in us by our clients, and a recurring revenue
cost coverage ratio*1 of approximately 50% by
FY2019/20. We made progress on this initiative in
FY2015/16. While Retail brokerage commissions
from securities transactions declined, approxi-
mately ¥1.2 trillion flowed into investment trusts
and discretionary investment products*2, thereby
increasing our recurring revenue by 20% from the
prior year.
Retail Division continues to develop existing
and new client relationships and last year, we were
able to offer clients access to several large primary
transactions, including the initial public offering
of three companies of the Japan Post Group. In
addition, the Nippon Individual Savings Account
(NISA) program, which started in 2014, continues
to expand. As of March 31, 2016, 1.55 million NISA
accounts were opened at Nomura, with accumu-
lated investments of nearly ¥1.2 trillion.
As of March 31, 2016, total client accounts
(excluding those with empty balances) amounted to
5.389 million, representing an increase of approx.
95,000 accounts from the prior year. Retail client
assets remained at a high level of ¥100.6 trillion,
although it was down from ¥109.5 trillion at the end
of the previous fiscal year.
*1 Recurring revenue represents revenue received from ongoing services
linked to assets under custody, such as management fees from
investment trusts, etc.
*2 The amount obtained after deducting the redemptions from
subscriptions.
Net revenue and
income before income taxes
Recurring revenue and
recurring revenue cost coverage ratio
(Billions of yen)
(Billions of yen)
(Billions of yen)
600
450
300
150
0
192.0
200
100
161.8
127.6
100.6
63.1
2012
2013
2014
2015
2016
150
100
50
0
80
60
40
20
0
25
20
17
15
2013
2014
2015
2016
(%)
25
20
15
10
5
0
■ Net revenue (lhs)
Income before income taxes (rhs)
■ Recurring revenue (lhs)
Recurring revenue cost coverage ratio (rhs)
(Fiscal years ended March)
(Fiscal years ended March)
68
69
100
75
50
25
0
800
600
400
200
0
36.7
32.1
27.1
30.8
27.9
24.6
39.3
40.1
21.2
20.5
40
30
20
10
0
40
30
20
10
0
150
800
100
600
555.0
644.9
789.9
765.1
720.3
111.8
71.7
82.2
-37.7
50
0
15.4
400
200
−50
0
Nomura Report 2016Nomura Report 2016Performance Review & Data Section
Performance Review of Divisions / Asset Management
Performance Review of Divisions / Wholesale
FY2015/16 Financial Results
bond mandates. Overseas, Nomura Corporate
Research and Asset Management, whose
In FY2015/16, Asset Management Division
core competency is high-yield bonds, received
reported record net revenue of ¥95.4 billion, up
favorable evaluations for its medium- to
3% from the prior year. Income before income
long-term performance and also saw inflows
taxes increased 14% year on year to ¥36.7
from pension funds and other institutional
billion, its highest level since FY2006/07.
investors. As a result, inflows for the entire
At year-end, assets under management
investment advisory business were approxi-
(AUM) were ¥40.1 trillion, an increase of approx-
mately ¥2 trillion during the year.
imately ¥800 billion from last year. Despite the
impact market factors such as declining stock
market indices and ongoing yen appreciation
had on AUM, net inflows during the year were
Initiatives Aimed at Expanding Our
Investment Footprint in North America
¥4.8 trillion, largely due to our efforts to provide
In December 2015, we formed a strategic
clients with investment trusts and investment
partnership and acquired a non-controlling
advisory services that matched their specific
approx. 41% economic interest (voting rights
needs.
of 10.1%) in American Century Investments
In the investment trust business, we offered
(ACI), an independent investment management
funds to meet clients’ needs and worked to
192.0
600
200
increase AUM of existing funds. Net cash inflows
continued into discretionary investments and
161.8
450
privately placed funds for regional financial insti-
150
127.6
tutions. ETF products with unique characteristics,
such as leveraged ETFs, drew investor attention
300
100.6
100
as did conventional index-linked ETFs. As a result,
63.1
inflows for the entire investment trust business
150
amounted to ¥2.7 trillion during the year.
0
In the investment advisory business,
50
0
firm in the U.S. ACI is an active manager of
25
25
100
U.S. and global equities for its large client base
throughout North America. When coupled with
80
Asset Management Division, with its expertise
17
20
20
15
in Japanese and Asian equities and high-yield
60
bonds and its broad client base in Japan,
40
we believe both companies will benefit from
15
10
the other’s know-how and will deliver broad
20
investment solutions to a wider range of global
retail and institutional clients. The acquisition
0
5
0
Nomura was selected by the largest Japanese
was completed in May 2016.
public pension fund to manage four foreign
FY2015/16 Financial Results
161.8
The start of FY2015/16 ushered in a period of
higher volatility driven by concerns surrounding
192.0
the fiscal sustainability of Greece. In the latter part
600
200
of the year, market conditions deteriorated further
and client activity plummeted as the economic
450
127.6
slowdown in China, widening credit spreads,
plunging oil prices and monetary policy uncer-
300
100
tainties drove market participants to the sidelines.
In this challenging market environment, Wholesale
150
50
Division delivered net revenue of ¥720.3 billion,
9% lower than in the previous year, and income
before income taxes of ¥15.4 billion, 81% lower
than in the previous year.
100.6
63.1
150
0
0
Global Markets recorded net revenue
of ¥600.3 billion, a decline of 12% over the
previous year. Equities remained resilient amid
difficult market conditions, but Fixed Income net
revenues declined significantly, particularly in
the second half of the fiscal year when volatility
100
40
heightened and liquidity dried up.
36.7
32.1
27.1
21.2
20.5
Investment Banking enhanced cross-regional
30
75
and cross-divisional collaboration, producing a
number of notable M&A transactions and multi-
50
product deals across all regions. As a result,
Investment Banking net revenue was ¥120
25
billion, 13% higher than in the previous year. In
Japan, revenues increased year on year, driven
by the participation in key landmark financing
transactions, industry consolidation and
cross-border M&A deals, as well as Solutions
20
10
0
0
businesses such as foreign exchange and
interest rate hedges to corporates and financial
institutions. Among overseas regions, we saw
solid performance in EMEA and Asia ex-Japan,
while the Americas experienced a slowdown due
100
25
to significant market headwinds.
80
20
20
25
17
Initiatives to Improve Profitability
60
15
15
0
Wholesale Division has lowered its cost base by
40
10
$2 billion since 2011, including taking strategic
actions to align the Fixed Income business
20
portfolio to the evolving market environment
during FY2015/16. At the start of FY2016/17,
another strategic review of the business portfolio
was conducted in view of the challenging market
outlook, and a number of actions were taken
particularly in EMEA and the Americas.
5
0
Our mother-market platform in the
40.1
39.3
27.9
24.6
Asia-Pacific region was not affected by these
changes. In EMEA, we closed down certain
40
businesses with structural disadvantages to
focus on areas of our strength. In the Americas,
30.8
30
we streamlined some of our businesses to
refocus on our core businesses and pursue
20
selective growth opportunities to expand our
share of the world’s largest fee pool. Through
10
these actions, we have lowered the breakeven
point of the Division, and positioned the interna-
tional Wholesale platform to deliver sustainable
0
performance across market cycles.
Net revenue and
income before income taxes
Assets under management*
Net revenue and
income (loss) before income taxes
Net revenues by region
(Billions of yen)
(Trillions of yen)
(Billions of yen)
(Billions of yen)
(Billions of yen)
(Billions of yen)
100
36.7
32.1
27.1
21.2
20.5
2012
2013
2014
2015
2016
75
50
25
0
40
30
20
10
0
40
30
20
10
0
39.3
40.1
30.8
27.9
24.6
2012
2013
2014
2015
2016
800
600
400
200
0
150
800
100
600
555.0
644.9
789.9
765.1
720.3
111.8
71.7
82.2
50
0
15.4
400
200
-37.7
2012
2013
2014
2015
2016
−50
0
2012
2013
2014
2015
2016
■ Net revenue (lhs)
Income before income taxes (rhs)
* Net after deducting duplications from assets under management of
companies that belong to Asset Management Division.
■ Net revenue (lhs)
Income (loss) before income taxes (rhs)
■ Japan ■ AEJ ■ EMEA ■ Americas
(Fiscal years ended March)
(End of March)
(Fiscal years ended March)
(Fiscal years ended March)
70
71
150
800
100
600
555.0
644.9
789.9
765.1
720.3
111.8
71.7
82.2
800
600
400
200
0
-37.7
50
0
15.4
400
200
−50
0
Nomura Report 2016Nomura Report 2016Performance Review & Data Section
Eight-Year Consolidated 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 Form 20-F.
Operating Results:
Revenue:
Commission
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
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
FY2013/14
FY2014/15
¥
306,803
¥
395,083
¥
405,463
¥
347,135
¥
359,069
¥
473,121
¥
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)
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
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
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)
91,301
168,683
476,356
11,392
416,350
15,156
179,485
1,831,844
274,774
1,557,070
570,058
111,849
192,168
80,142
38,485
202,754
1,195,456
361,614
145,165
216,449
2,858
453,401
95,083
203,387
531,337
5,502
436,766
29,410
175,702
1,930,588
326,412
1,604,176
596,593
129,977
192,300
76,112
35,230
227,205
1,257,417
346,759
120,780
225,979
1,194
(Millions of yen)
FY2015/16
¥
431,959
118,333
229,006
354,031
13,761
440,050
(20,504)
156,460
1,723,096
327,415
1,395,681
574,191
123,881
189,910
78,411
35,892
228,238
1,230,523
165,158
22,596
142,562
11,012
Net income (loss) attributable to NHI shareholders
¥
(708,192)
¥
67,798
¥
28,661
¥
11,583
¥
107,234
¥
213,591
¥
224,785
¥
131,550
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:
¥ 1,422,709
¥ 1,352,244
¥ 2,150,453
¥ 1,953,677
¥ 1,652,752
¥ 2,189,310
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
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
2,227,822
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
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
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
2,570,678
17,347,001
18,714,314
2,699,011
¥ 43,520,314
¥
602,131
2,836,873
17,111,999
11,047,285
1,141,750
8,227,063
40,967,101
2,513,680
39,533
2,553,213
¥ 2,096,596
2,948,424
16,719,520
17,308,848
2,709,848
¥ 41,783,236
662,256
¥
3,398,600
15,379,803
10,044,236
1,217,099
8,336,296
39,038,290
2,707,774
37,172
2,744,946
¥ 3,898,843
2,969,578
15,077,660
16,410,002
2,734,084
¥ 41,090,167
¥
662,902
4,249,118
16,605,591
7,499,335
1,200,647
8,129,559
38,347,152
2,700,239
42,776
2,743,015
¥ 24,837,848
¥ 32,230,428
¥ 36,692,990
¥ 35,697,312
¥ 37,942,439
¥ 43,520,314
¥ 41,783,236
¥ 41,090,167
Net cash provided by (used in) operating activities
¥
(712,629)
¥ (1,500,770)
¥
(235,090)
¥
290,863
¥
549,501
¥
457,426
¥
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
(98,905)
999,760
(81,896)
(269,643)
2,176,530
964
(423,214)
1,284,243
(26,246)
9,942
(844,311)
(6,314)
(160,486)
(701,623)
47,175
(103,195)
289,385
41,089
(77,028)
12,337
(178,206)
68,513
¥ 1,238,372
(23,711)
986,387
(40,195)
Net increase (decrease) in cash and cash equivalents
¥
106,330
¥
407,081
¥
599,693
¥
(549,820)
¥
(265,433)
¥
684,705
¥
(174,384)
¥ 2,160,853
72
73
Nomura Report 2016Nomura Report 2016Performance Review & Data Section
Unit
June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Dialogue with Stakeholders
Data for FY2015/16 items marked with
have undergone assurance verification by a third party.
CSR Key Facts
Corporate Governance
Members of the board
Board of Directors
Outside Directors
Non-Japanese Directors
Female Directors
No. of people
No. of people
Ratio (%)
No. of people
Ratio (%)
No. of people
Ratio (%)
11
7
64
3
27
1
9
11
6
55
3
27
1
9
11
6
55
3
27
1
9
12
7
58
3
25
1
8
11
6
55
3
27
1
9
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Officers (Executive Officers and Senior Managing Directors)
Men
Women
Ratio of women
No. of people
No. of people
%
41
2
4
23
2
8
27
2
6
26
2
7
27
2
7
Board of Directors meetings
No. of times held
Average attendance rate
Client Focused
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
No. of times
%
10
95
11
97
10
98
10
99
10
100
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Caseload at Customer Help Desk Department (Nomura Securities)
Total
No. of cases
Complaints
Inquiries
Opinions and requests
Other
No. of cases
No. of cases
No. of cases
No. of cases
5,005
3,012
1,836
13
144
5,693
3,409
2,119
23
142
*1
*2
7,010
4,023
2,730
55
202
5,540
2,537
2,766
81
156
5,767
2,771
2,749
128
119
*1 The increase in the caseload in FY2013/14 was due to a rise in the number of incoming calls and heavy demand on telephone circuits.
*2 Of the total, 69 calls were related to the handling of customer information.
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Branches that are barrier-free and have AEDs (Nomura Securities)
Certified universally accessible
Wheelchair-accessible toilets
Wheelchair-accessible elevators
With steps removed from entrances and
exits (with ramps, elevators, or no steps)
With installations to mitigate entrance and
exit steps (railings or reduced step heights)
No. of branch offices
No. of branch offices
No. of branch offices
No. of branch offices
No. of branch offices
Percentage of branches equipped with
AEDs (automated external defibrillators)
Percentage of branches with personnel
designated to provide assistance to seniors
%
%
30
80
54
140
14
—
—
30
81
57
139
13
—
—
30
78
66
129
13
100
80
30
78
66
130
14
100
80
33
83
68
128
14
100
80
Unit
January 2012 December 2013
August 2014
January 2015 February 2016
Results of customer satisfaction surveys at branch offices (Nomura Securities)
Extremely satisfied/satisfied
Neither satisfied nor dissatisfied
%
%
Extremely dissatisfied/dissatisfied
%
—
—
—
81.6
15.7
2.7
81.4
16.3
2.2
80.9
16.3
2.8
82.1
15.1
2.8
Unit
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Social contribution-type bonds (Nomura Securities)
Name of bonds issued
ADB Clean Energy Bonds/
IFC Bonds
ADB Clean Energy Bonds/
ADB Water Bonds/AfDB
Education Support Bond/
IFC Bonds/IFC Green Bonds/
EIB Bonds
ADB Bonds/ADB Water Bond/
AfDB Food Safety and Security
Bond/IADB Bonds/IBRD
Bonds/IBRD Green Bonds/
IFC Bond/IFC Green Bond
ADB Bonds/IADB EYE Bonds/
IBRD Bonds/IFC Bonds/
NIB Bonds
Bonds issued
Proceeds
Number
Millions of yen
14
76,883
11
95,960
19
159,145
24
72,310
Community contribution expenditures
Total
Millions of yen
Millions of yen
Millions of yen
Education
Arts, culture, and sports
Science and academic achievement Millions of yen
Community contribution
Welfare and health
Environment
Human rights and labor
Disaster relief
Other
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Millions of yen
1,235
582
106
83
200
49
43
3
71
103
1,348
556
81
129
199
79
47
4
88
171
1,323
604
66
117
190
39
84
20
78
129
1,457
530
333
114
161
85
34
19
68
113
1,325
562
102
120
162
79
29
39
56
176
Unit
FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16
Cumulative
total
Participants and materials in financial and economics education
22
No. of schools
Visiting classes (elementary, junior,
senior high schools, universities,
teachers)
Since 2008
No. of
participants
1,087
1,865
2,825
9,836
9,637
28,470
No. of schools
115
114
112
108
106
1,654
31
56
265
304
731
Financial courses for universities
Since 2001
No. of
participants
12,000
11,000
11,000
11,000
11,000
217,000
Financial courses for the general
public
Since 2003
Nikkei Stock League
Since 2000
Teaching material for elementary
schools (The Economics
Classroom,“The Framework of
Society and the Role of Money”)*
Since 2008
No. of courses
536
444
531
566
412
7,546
No. of
participants
No. of teams
No. of
members
27,839
21,696
23,897
24,712
14,958
380,724
1,420
1,287
1,484
1,361
1,429
24,500
5,741
5,120
5,699
5,167
5,587
97,066
No. of schools
120
396
227
366
361
3,670
No. of copies
5,000
17,422
14,639
24,170
21,377
282,608
Teaching material for junior high
schools (The t-shirt shop)*
Since 2006
No. of schools
No. of copies
180
17,200
387
17,326
215
12,162
161
15,380
79
5,928
4,722
447,996
*The total volume of learning materials donated to elementary and junior high schools by Nomura Holdings
Developing Human Resources Who Respect Diversity
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Education and training expenses
Total
Japan
Europe
Americas
Asia-Pacific
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Participation in education and training*
Total
Japan
Europe
Americas
Asia-Pacific
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
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
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
2,515
1,978
81
262
194
406,602
89,657
284,920
12,325
26,117
21,822
7,811
5,598
87,754
49,912
2,972
2,076
115
573
208
507,639
132,672
333,305
14,398
48,434
41,654
15,439
12,255
110,461
64,365
2,880
2,020
225
426
209
589,242
211,014
307,295
16,294
137,565
62,077
17,589
25,122
126,793
107,521
* Certain subsidiaries and affiliates were excluded from the number of participants in internal education and training in Europe, the Americas and Asia as the data was
compiled based on persons registered through the Wholesale Division’s internal training system.
74
75
Nomura Report 2016Nomura Report 2016Performance Review & Data Section CSR Key Facts
Data for FY2015/16 items marked with
have undergone assurance verification by a third party.
Developing Human Resources Who Respect Diversity
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Composition of employees*1
Total
Japan
Europe
Americas
Asia-Pacific
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
Europe
Americas
Asia-Pacific
%
%
%
%
Number of new hires*2
Total
No. of employees
Japan (Nomura Holdings,
Nomura Securities)
Men (No. of employees)
Women (No. of employees)
Europe
Americas
Asia-Pacific
Men (No. of employees)
Women (No. of employees)
Men (No. of employees)
Women (No. of employees)
Men (No. of employees)
Women (No. of employees)
Composition of managers
Total
Japan (Nomura Holdings,
Nomura Securities)
Europe
Americas
Asia-Pacific
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 (%)
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
3,359
573
495
663
478
1,150
7,299
1,064
13
3,623
205
5
1,693
325
16
1,060
243
19
923
291
24
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
2,554
446
581
307
361
859
7,024
1,055
13
3,549
219
6
1,557
315
17
1,016
234
19
902
287
24
26,019
62
38
15,062
56
44
3,461
71
29
2,281
74
26
5,215
64
36
100
58
13
9
20
2,920
507
522
503
418
970
6,913
1,031
13
3,480
218
6
1,507
290
16
1,028
234
19
898
289
24
28,672
62
38
15,973
58
42
3,485
71
29
2,449
74
26
6,765
61
39
100
56
12
9
23
2,934
482
363
389
121
382
128
718
351
7,095
1,234
15
3,437
236
6
1,479
311
17
1,093
250
19
1,086
437
29
28,865
62
38
16,083
58
42
3,424
71
29
2,503
74
26
6,855
61
39
100
56
12
8
24
2,868
537
395
286
119
313
111
714
393
7,165
1,370
16
3,345
270
7
1,503
335
18
1,123
276
20
1,194
489
29
*1 Composition of employees: The figures cover Nomura Group on a consolidated basis. In FY2013/14 and prior years, some subsidiaries were not included in the scope of
the calculations.
*2 Number of new hires: In Asia-Pacific, certain subsidiaries were not covered in the data for FY2014/15. Those not covered included Capital Nomura Securities Public
Company Limited (CNS) and Nomura Asset Management Taiwan Ltd.
Please refer to standards for calculation (http://www.nomuraholdings.com/csr/data/).
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
Our Environment
GHG Emissions
Scope 1: Direct emissions*1
Scope 2: Indirect emissions*1
Scope 1, 2 Emissions
per employee
Scope 3 Emissions from
employee travel*2 (Air, rail, and
automobile travel)
Energy Consumption
Direct energy consumption
(Natural gas, etc.)*4
Indirect energy consumption
(Purchased electric power)*4
Including, Green electric
purchase power*5
(Purchased cooling and heating
power)
Japan
Europe
Americas
Asia-Pacific
Japan
Europe
Americas
Asia-Pacific
Japan
Europe
Americas
Asia-Pacific
Japan
Europe
Americas
Asia-Pacific*3
Japan
Europe
Americas
Asia-Pacific
Japan
Europe
Americas
Asia-Pacific
Japan
Europe
Americas
Asia-Pacific
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
MWh
Environmental Resource Efficiency
Water consumption*6
Copy paper consumption*7
Amount of waste generated*8
Japan
Europe
Americas
Asia-Pacific
Thousand m3
Thousand m3
Thousand m3
Thousand m3
Ton
Ton
2,373
1,299
0
76
34,214
21,629
12,208
24,357
2.4
6.9
5.0
5.0
18,505
9,446
6,060
11,883
12,664
6,981
0
272
74,648
50,091
16,194
27,474
2,247
1,318
0
76
38,988
16,842
11,672
24,323
2.8
6.2
5.1
5.4
17,919
9,728
5,124
11,057
11,948
7,025
0
800
74,293
38,679
16,104
28,012
2,207
1,131
46
143
42,300
17,334
10,143
21,601
3.0
6.0
4.5
4.9
18,729
9,253
5,561
9,552
11,729
6,210
225
608
74,117
41,164
15,896
26,942
2,107
797
69
143
40,965
14,164
13,486
22,007
2.9
4.6
5.5
4.3
20,823
8,127
4,349
10,575
11,229
4,438
340
611
72,780
30,836
22,148
27,862
1,986
752
72
169
39,065
12,822
11,975
21,892
2.7
4.3
4.8
4.2
22,013
7,651
4,966
11,587
10,573
4,201
355
732
70,520
30,133
21,882
26,720
7,424
6,329
6,317
32,626
34,652
20,550
0
10,047
2,352
188
136
4
33
820
1,223
17,523
0
7,924
1,907
178
124
4
45
759
1,904
15,258
0
2,220
1,731
177
124
13
45
746
2,659
12,400
0
238
1,694
171
97
26
48
1,041
2,281
11,971
0
140
1,617
170
115
30
36
1,083
2,540
The scope 1, 2, and 3 classifications follow The Greenhouse Gas Protocol (GHG Protocol): http://www.ghgprotocol.org/
The coverage by region is as follows:
Japan: The Group companies located in Japan (http://www.nomuraholdings.com/company/group/)
Europe: Offices in London, Paris, Frankfurt, Zurich, Madrid, Milan, and Luxembourg
Americas: Offices in New York and Instinet offices
Asia-Pacific: Offices in Hong Kong, Singapore, India, Dalian, and Bangkok
However, data on air transportation in scope 3 are compiled based on corporate data
*1. The Bangkok office was included in the scope for Asia from FY2014/2015
*2. Data based on airline and long-distance railway travel in Japan and overseas
purchased from specified travel agencies. Data for Japan, Europe, and the India,
Hong Kong and Bangkok office components of Asia include emissions from
automobiles in regular use.
*3. Assurance-verified data for Asia totaled 10,275 t-CO2 in FY2015/16 (Two offices
in Hong Kong and one office each in Singapore, India and Bangkok)
*4. As a result of improvements in data collection precision, figures on direct energy
consumption in Japan for FY2014/15 were revised.
*5. Data for FY2011/12 and FY2012/13 were comprised of Japan and the Frankfurt
and Zurich offices for Europe. Additions to the scope for Europe were the Milan
office from FY2013/14, the London office from FY2014/15, and the Luxembourg
and Paris offices from FY2015/16.
*6. Only the India office was included in the scope for Asia in FY2011/12.
*7. Data for FY2011/12 and FY2013/14 were compiled based on paper purchased
from specified suppliers by Nomura Securities for Japan, paper consumed
by the London office for Europe, and paper consumed by the India and Hong
Kong offices for Asia. From FY2014/15, the scope was expanded to include
the Bangkok office for Asia, and from A4 paper to all copy paper purchased by
Nomura Securities for Japan.
*8. Data for FY2011/12 and FY2012/13 were compiled based on the Nihonbashi
Head Office building and Dai-ni Edobashi Building in Tokyo, the Osaka Branch,
and the Nagoya Branch for Japan, the London, Paris, Frankfurt, and Zurich offices
for Europe, and the India office for Asia. Additions to the scope were the Urbannet
Otemachi Building in Tokyo, the Kyoto Branch, and the Okayama Branch for
Japan, and the Hong Kong office for Asia from FY2013/14, the Luxembourg
office for Europe from FY2014/15, and the Nomura Asset Management Head
Office building in Tokyo for Japan from FY2015/16.
76
77
Nomura Report 2016Nomura Report 2016Performance Review & Data Section Independent Assurance
History
"Nomura’s continuous commitment to society has been demonstrated
throughout its 90 year history"
1925 —
Supported Japan’s securities market at the dawn of its development
1925
•
The Securities Department of Osaka Nomura Bank split
off into a separate company, Nomura Securities Co., Ltd.
Major Issue of New Companies’ Stocks
Marks the First Step toward Recovery
1927
1949
1953
1959
• Opened the representative office in New York
•
Became a full member of the Tokyo Stock Exchange
• Head Office moved to the Nihonbashi Nomura Building
•
Founded Nomura Securities Investment Trust Co., Ltd.
Nomura Securities was established in 1925 and,
following World War II, became prominent in Japan’s
securities business. Between 1947-1948, many
Japanese companies, including electric power distri-
bution companies (today’s electric power generation
companies), banks and textile companies, sought to
raise capital from investors. It was at this time that
Nomura, as a key underwriter and distributor of such
transactions, had the opportunity to contribute to
the post-war recovery while also building a leading
position in the securities market.
1960 —
Provided fund-raising support during the era of high economic growth in Japan
1961
1967
1969
1972
1980 —
1980
1981
1993
1997
•
•
•
•
•
•
•
• Nomura Securities listed its shares on the Tokyo Stock
Exchange, Osaka Securities Exchange, and Nagoya
Stock Exchange
Established Nomura International (Hong Kong) Limited
Established Nomura Securities International, Inc. (NSI), a
U.S. subsidiary
Established Nomura Europe N.V. in the Netherlands,
Nomura’s first subsidiary in Europe
Growing Influence in the Movement of
Capital between Japan and Overseas
Over time, a gradual easing of trade restrictions has
enabled the movement of capital between foreign
and domestic investors. Japanese companies were
more frequently interested in issuing securities in
international markets, and the number of interna-
tional investment trusts incorporating overseas
securities increased. Also, new channels opened
for domestic investors to buy investment overseas.
Nomura Group has responded to the evolving needs
of its clients by establishing overseas branches and
building foundation for today’s global business.
Offered products and services in response to Japan’s “financial Big Bang”
Began sales of the Medium-Term Japanese Government
Bond Fund
Moving toward Comprehensive
Financial Business Operations
Established Nomura Investment Management Co., Ltd.
Established Nomura International Limited, a U.K.
subsidiary
Established The Nomura Trust and Banking Co., Ltd.
• Nomura Securities Investment Trust and Nomura
Investment Management merged to form Nomura Asset
Management Co., Ltd.
Nomura Group continued to expand its business
capabilities to meet clients’ demands as a compre-
hensive financial services company. This has
included the establishment of Nomura Investment
Management Co., Ltd., The Nomura Trust and
Banking Co., Ltd., and other affiliated companies.
In addition, in response to Japan’s financial Big
Bang, Nomura expanded its offering of products
and services. Lastly, to meet the needs of corporate
clients with evolving business operations outside of
Japan, Nomura has established several overseas
subsidiaries.
2000 —
Began providing solutions to meet the increasingly diverse needs of clients
2001
•
Separated the roles of Nomura Holdings and Nomura
Securities to form a holding company structure
• Nomura Holdings listed its shares on the New York Stock
Exchange
2008
•
Absorbed the personnel of Lehman Brothers Asia Pacific
and its European and Middle Eastern divisions
2009
2016
• Nomura Holdings completed two public equity offerings
•
Entered into a strategic alliance with American Century
Investments, a U.S. based investment management firm
Strengthening Global Competitiveness
and Improving the Business Operation
System
Japan’s financial Big Bang in the late 1990s was
characterized by financial deregulation and the
expectation that financial assets would flow from
bank deposits to investments. Nomura believed
it was essential to strengthen its global competi-
tiveness and in 2001, created a holding company
structure that ensures compatibility between each
business unit. Looking ahead, Nomura remains
committed to offering optimal solutions and working
together across divisions and regions.
Aiming to establish ourselves as Asia’s global investment bank
78
79
Nomura Report 2016Nomura Report 2016Performance Review & Data Section Global Network
(As of June 30, 2016)
Nomura Securities Domestic Network
(As of June 30, 2016)
Europe, the Middle East and Africa
Nomura Europe Holdings plc (London)
Nomura International plc (London)
• Vienna Representative Office • Helsinki Branch
• Frankfurt Branch
• Qatar Branch
• Stockholm Branch
• South Africa Branch
• Milan Branch
• Madrid Branch
• Dubai Branch
Nomura Bank International plc (London)
Nomura Asset Management U.K. Ltd. (London)
Nomura Investment Banking (Middle East) B.S.C. (Bahrain)
Banque Nomura France (Paris)
Nomura Asset Management Deutschland KAG mbH (Frankfurt)
Nomura Bank (Luxembourg) S.A.
Nomura Nederland N.V. (Amsterdam)
Nomura Saudi Arabia (Riyadh)
Nomura Bank (Switzerland) Ltd. (Zurich)
Americas
Nomura Holding America Inc. (New York)
• Washington, D.C. Office
Nomura Securities International, Inc. (New York)
• Boston Office • Chicago Office
• Manhattan Beach Office
• São Paulo Representative Office
• Colombia Representative Office
• San Francisco Office
Nomura America Services, LLC (New York)
• Chicago Office
• New Jersey Office
Nomura America Mortgage Finance, LLC (New York)
Nomura Asset Capital Corporation (New York)
Nomura Asset Depositor Company, LLC (New York)
Nomura Asset Management U.S.A., Inc. (New York)
Nomura Corporate Funding Americas, LLC (New York)
Nomura Corporate Research And Asset Management Inc. (New York)
Nomura Credit & Capital, Inc. (New York)
Nomura Derivative Products Inc. (New York)
Nomura Funds Research And Technologies America, Inc. (New York)
Nomura Global Alpha LLC (New York)
Nomura Global Financial Products Inc. (New York)
Nomura International Trust Company (New Jersey)
Nomura Investment Company (Bermuda) Ltd.
Nomura Reinsurance Intermediary Inc. (New York)
Nomura Securities (Bermuda) Ltd.
NWL Company, LLC (New York)
The Capital Company Of America LLC (New York)
Instinet
Instinet Incorporated (New York) (Based in the Americas, Europe and Asia)
Japan
Nomura Securities Co., Ltd.
• Beijing Representative Office
• Shanghai Representative Office
Nomura Asset Management Co., Ltd.
• Seoul Representative Office
The Nomura Trust and Banking Co., Ltd.
Nomura Babcock & Brown Co., Ltd.
Nomura Capital Investment Co., Ltd.
Nomura Investor Relations Co., Ltd.
Nomura Funds Research And Technologies Co., Ltd.
Nomura Research & Advisory Co., Ltd.
Nomura Business Services Co., Ltd.
Nomura Facilities, Inc.
Nomura Institute of Capital Markets Research
Nomura Healthcare Co., Ltd.
Nomura Agri Planning & Advisory Co., Ltd.
Nomura Financial Products & Services, Inc.
Nomura Institute of Estate Planning
Asia ex-Japan
Nomura International (Hong Kong) Ltd.
• Taipei Branch Office • Hanoi Representative Office
Nomura Asia Holding N.V. (Hong Kong)
Nomura Securities (Hong Kong) Ltd.
Nomura Asia Ltd. (Hong Kong)
Nomura Asset Management Hong Kong Ltd.
Nomura Australia Ltd. (Sydney and Melbourne)
Nomura Asset Management Australia Pty Ltd. (Sydney)
Nomura Financial Advisory and Securities (India) Private Ltd. (Mumbai)
Nomura Fixed Income Securities Private Ltd. (Mumbai)
Nomura Capital (India) Private Ltd. (Mumbai)
Nomura Services India Private Ltd. (Mumbai)
Nomura Structured Finance Services Private Ltd. (Mumbai)
Nomura Fin Services (India) Private Ltd. (Mumbai)
PT Nomura Indonesia (Jakarta)
Nomura Securities Malaysia Sdn. Bhd. (Kuala Lumpur)
Nomura Asset Management Malaysia Sdn. Bhd. (Kuala Lumpur)
Nomura Islamic Asset Management Sdn. Bhd. (Kuala Lumpur)
Nomura Corporate Advisory (Shanghai) Co., Ltd.
Nomura Securities Philippines Inc. (Makati)
Nomura Singapore Ltd.
Nomura Securities Singapore Pte. Ltd.
Nomura Investments (Singapore) Pte. Ltd.
Nomura Special Investments Singapore Pte. Ltd.
Nomura Asset Management Singapore Ltd.
Nomura Trust Company (Singapore) Ltd.
Nomura Financial Investment (Korea) Co., Ltd. (Seoul)
Capital Nomura Securities Public Company Ltd. (Bangkok)
Nomura Asia Holding N.V. (Amsterdam)
Hokuriku
Fukui Branch
Kanazawa Branch
Niigata Branch
Toyama Branch
Chubu
Gifu Branch
Hamamatsu Branch
Kanayama Branch
Kariya Branch
Kasugai Branch
Matsumoto Branch
Nagano Branch
Nagoya Branch
Nagoya-ekimae
Branch
Numazu Branch
Okazaki Branch
Shizuoka Branch
Toyohashi Branch
Toyota Branch
Tsu Branch
Yokkaichi Branch
Hokkaido
Asahikawa Branch
Hakodate Branch
Kushiro Branch
Sapporo Branch
Tokachi Obihiro Office
Tohoku
Akita Branch
Aomori Branch
Fukushima Branch
Hachinohe Branch
Iwaki Office
Koriyama Branch
Morioka Branch
Sendai Branch
Yamagata Branch
Kinki
Akashi Branch
Daito Branch
Gakuenmae Branch
Higashiosaka Branch
Himeji Branch
Hirakata Branch
Ibaraki Branch
Kawanishi Branch
Kishiwada Branch
Kobe Branch
Kyoto Branch
Namba Branch
Nara Branch
Nishinomiya Branch
Okamoto Branch
Osaka Branch
Otsu Branch
Private Banking
Kyoto Office
Sakai Branch
Senri Branch
Takarazuka Branch
Takatsuki Branch
Tennoji Branch
Toyonaka Branch
Tsukaguchi Branch
Uehonmachi Branch
Umeda Branch
Wakayama Branch
Chugoku
Fukuyama Branch
Hiroshima Branch
Kurashiki Branch
Matsue Branch
Okayama Branch
Shimonoseki Branch
Tokuyama Branch
Tottori Office
Yonago Branch
Shikoku
Kochi Branch
Matsuyama Branch
Takamatsu Branch
Tokushima Branch
Kyushu
Fukuoka Branch
Fukuoka Branch,
Amu Plaza Hakata
Office
Kagoshima Branch
Okinawa
Naha Branch
Kitakyushu Branch
Kumamoto Branch
Kurume Branch
Miyazaki Branch
Nagasaki Branch
Oita Branch
Saga Branch
Sasebo Branch
Tokyo metropolitan area
Chofu Branch
Denenchofu Branch
Fuchu Branch
Gotanda Branch
Hachioji Branch
Head Office
Ikebukuro Branch
Ikebukuro Metropolitan
Plaza Branch
Jiyugaoka Branch
Kamata Branch
Keio Shinjuku Branch
Kichijoji Branch
Koiwa Branch
Kokubunji Branch
Machida Branch
Nakameguro Branch
Nakano Branch
Nerima Branch
Ogikubo Branch
Omori Branch
Private Banking
Ginza Office
Seijo Branch
Senju Branch
Shibuya Branch
Kanto
Aeon Mall Funabashi
Office
Aobadai Branch
Atsugi Branch
Chiba Branch
Fujisawa Branch
Funabashi Branch
Hiratsuka Branch
Ichikawa Branch
Kamakura Branch
Kashiwa Branch
Kawagoe Branch
Kawaguchi Branch
Kawasaki Branch
Kofu Branch
Koshigaya Branch
Kumagaya Branch
Matsudo Branch
Mito Branch
Musashikosugi Branch
Odawara Branch
Omiya Nishiguchi Branch
Ota Branch
Sagamihara Branch
Saitama Branch
Saitama Branch,
Omiya Higashiguchi Office
Shinyurigaoka Branch
Takasaki Branch
Tama Plaza Branch
Shinagawa 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
Tokorozawa Branch
Totsuka Branch
Tsukuba Branch
Tsurumi Branch
Urawa Branch
Utsunomiya Branch
Yokohama
Bashamichi Branch
Yokohama Branch
Yokosuka Branch
80
81
Nomura Report 2016Nomura Report 2016Performance Review & Data Section
Share Data / Credit Rating
Corporate Data
Share Data (As of March 31, 2016)
Common stock issued
3,822,562,601 shares
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.
Securities code
8604 (Tokyo Stock Exchange)
NMR (New York Stock Exchange)
Number of shareholders
415,706 (Unit shareholders: 393,674)
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
Date of record for dividend payments Second quarter-end: September 30 ／ Year-end: March 31
Major shareholders (Top 10)*
Component ratio of shareholders
(%)
100
80
60
40
20
0
2012
2013
2014
2015
2016
(End of March)
■
■
Financial institutions
Foreign legal entities
■
■
Other legal entities
Individuals and others
Name of shareholder
Number of shares
owned (thousands)
Ownership
(%)
State Street Bank and Trust Company 505223
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account 9)
State Street Bank West Client-Treaty 505234
Japan Trustee Services Bank, Ltd. (Trust Account 7)
The Bank of New York Mellon SA/NV 10
The Bank of New York Mellon as Depositary Bank
for DR Holders
Barclays Securities Japan Limited
Japan Trustee Services Bank, Ltd. (Trust Account 1)
246,648
135,640
124,589
52,439
52,055
50,608
47,067
43,528
42,000
39,075
6.8
3.8
3.5
1.5
1.4
1.4
1.3
1.2
1.2
1.1
* The Company has 213,040 thousand shares of treasury stock as of March 31, 2016, which is not
included in the major shareholders list above.
* Figures for “number of shares owned” are rounded down to the nearest thousand and figures for
“ownership” are calculated excluding treasury stock.
Credit Rating (As of June 30, 2016)
R&I
JCR
Moody's
Standard & Poor's
Fitch Ratings
Nomura Securities
Nomura Holdings
Long-term
Short-term
Long-term
Short-term
A+
AA−
A3
A−
A−
a-1
—
P-2
A-2
F1
A+
AA−
Baa1
BBB+
A−
a-1
—
—
A-2
F1
Corporate Data (As of March 31, 2016)
Company name
Group CEO
Date of incorporation
Business description
Paid-in capital
Head office
Group employees
Nomura Holdings, Inc.
Koji Nagai
December 25, 1925
Investment and financial services
¥594.5 billion
1-9-1, Nihonbashi, Chuo-ku,
Tokyo 103-8645, Japan
28,865
Inquiries
Nomura Holdings, Inc.
• Investor Relations
Urbannet Otemachi Building, 2-2-2, Otemachi, Chiyoda-ku,
Tokyo 100-8130, Japan
Tel. +81 (3) 5255-1000 (Main switchboard)
• Corporate Citizenship Department
Otemachi Nomura Building, 2-1-1, Otemachi, Chiyoda-ku,
Tokyo 100-8170, Japan
Tel. +81 (3) 5255-1000 (Main switchboard)
e-mail: csr@jp.nomura.com
Editing Nomura Report 2016
Nomura has tried to accurately convey
the connections between Nomura Group’s
business activities and its CSR activities
Hajime Ikeda
Group Corporate Communications, Corporate Citizenship and
Tokyo 2020 Olympic and Paralympic
Nomura Group began publishing the Nomura Report, integrating its annual
report and Citizenship report, in the fiscal year ended March 31, 2013. We
aim to express the relationships between our business activities, governance,
and CSR activities to enable all our stakeholders, including clients,
shareholders, suppliers, NGOs, and the communities, as well as employees,
to understand Nomura Group’s economic and social value.
Nomura Group marked its 90th anniversary in December 2015. In this
report, we have focused on how we will grow sustainably together with our
stakeholders over the next 10 years by presenting our corporate philosophy
and vision and our strategy to increase our medium- to long-term corporate
value through various perspectives.
In creating this report, we have referred to the International Integrated
Reporting Framework proposed by the International Integrated Reporting
Council, the GRI Guidelines (G4), and other guidelines and global integrated
reporting trends. In addition, some of our CSR data has been verified by an
independent third-party organization to enhance reliability.
This report and the Group’s website are intended to contribute to deeper
dialogue with stakeholders. To this end, we have made an effort to enhance
the content even further.
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Nomura Report 2016Nomura Report 2016Performance Review & Data Section
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The start of a new future
Nomura Holdings, Inc.
Nomura Report 2016
This report was produced
using non VOC inks.
All electricity to print this
booklet was generated by
green energy. (3,932 kWh)
About the Cover Photo
To visually express the title of this report, “The start
of a new future” the cover photograph captures
the stillness of the morning air as the sun rises
behind our Nihonbashi Head Office building. The
photograph evokes our determination to embark
on a new future as we celebrate our 90th founding
anniversary and look back on 90 years in the
securities business.
Printed in Japan
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