N
o
m
u
r
a
R
e
p
o
r
t
2
0
1
7
N
o
m
u
r
a
H
o
l
d
i
n
g
s
,
I
n
c
.
Nomura Report
2017
Nomura Holdings, Inc.
Introduction
Nomura Group contributes to
the economic development and realization
of a prosperous society through its
involvement in the securities industry.
2
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
1
1
Introduction
“Place our clients at the heart of
everything we do”
A commitment that remains unchanged
since our founding
2
Nomura Report 2017
Nomura Report 2017
3
Introduction
Aiming for a better future
Individuals’ asset formation is closely connected to the financing and growth of individual companies and the
broader economy. To prepare for the future, individuals can invest to receive capital gains, dividends, interest
and other benefits commensurate with their risk taking. In addition, corporations and public bodies can create
value, revitalize communities, and sometimes even resolve social issues through the capital markets. We
connect both investors and companies to these capital markets, thereby supporting the productive use of risk
capital, paving the way to a better future.
Social contribution through risk capital cycle (Nomura’s Retail-Wholesale two-pronged business model)
OUTCOME
Resolve
social
issues
Promote
innovations
Provide
infrastructure
Stimulate
regional
economies
Increase
employment
Profits
Returns
Investment
(reinvestment)
Preparing
for the future
OUTCOME
Finance by corporates
and public bodies
Capital
Capital
markets
markets
Equities
and
bonds
Individuals’ asset
formation
Prosperous
lives
Investment
Financing
Capital gains,
Dividends and
interest income
Improving
living standards
Supporting financing by companies and public bodies
1961
First American Depositary Receipts issued by
Japanese company (Sony Corporation)
1987
Nippon Telegraph and Telephone Corporation (NTT)
listed on stock market
2015
Three Japan Post Group companies listed
on stock market
Supporting individuals’ asset formation
1953
Distributed “Million Ryo Savings Chest” piggy
banks to promote securities investment
as a form of savings
2012
Start using mobile tablets for client consultations
(Photo taken in 2017)
2016
Providing investment information through
robo advisory service
Please see “Special Feature 1: Transforming
business model in Japan” on P28 for more details.
Please see “Special Feature 2: Leveraging new
technologies” on P30 for more details.
Financial and economic education
4
Nomura Report 2017
Nomura Report 2017
5
2000
Start of financial education courses for universities
(Photo taken in 2015)
2008
Start of “Manabou Classroom” school-visit classes
for elementary schools
(Photo taken in 2017)
Please see “Special Feature 3: Promoting financial and economic education in Japan” on P32 for more details
2016
The 17th Nikkei Stock League contest
award ceremony
INDEX
About Nomura
Strengths Supporting Value Creation
P 8 Business Model
P46 Corporate Governance
P10 History of the Nomura Group
P54
Interview with Outside Director
—Contributing to the Development of Capital Markets for 91 Years
P12 Nomura by the Numbers
P13 Key Events during the Year
P14 Financial and Non-Financial Highlights
P56
Interview with Advisory Board Member
P58 Message from the Chief of Staff
P60 Directors of Nomura Holdings / Outside Directors of Major
Subsidiaries in Japan / Executive Officers and Senior
Managing Directors of Nomura Holdings
Strategies for Value Creation
P16 Message from Group CEO
P22 Message from Group COO
P26 Message from CFO
P28 Special Feature 1: Transforming business model in Japan
P30 Special Feature 2: Leveraging new technologies
P32 Special Feature 3: Promoting financial and economics
education in Japan
P34 Special Feature 4: Supporting the growth of private and
public sectors through our business
P36 Special Feature 5: Strengthening international businesses
P38 At a Glance
P40 Business Divisions: Retail Division
P42 Business Divisions: Asset Management Division
P44 Business Divisions: Wholesale Division
P64 Risk Management
P70 Compliance
P72 Investing in Our Employees
P76 Corporate Social Responsibility
P78 Advancing Sustainable Finance
P80 Supporting Our Communities
P84 Our Environment
Corporate Information / Data
P86 Key Financial Data
P88 Eleven-Year Consolidated Financial Summary
P90 CSR Key Facts
P94 Independent Assurance
P96 Global Network
P97 Services for Retail Clients / Nomura Securities Branches
in Japan
P98 Corporate Data / Share Information / Credit Rating
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.
6
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
7
7
About Nomura
Business Model
Nomura Group value creation model
The Nomura Group’s business is executed according to our philosophy of always “placing our clients at the
heart of everything we do.” We contribute to the economic growth and creation of a prosperous society by
providing financial products, services, and solutions that are innovative and competitive, while also utilizing our
high-quality management resources. We strive to raise our economic value by building a sustainable business
foundation to support growth in any environment.
Social issues
Management
resources
Our
businesses
Our
strengths
Our
strategy
Our products
and services
OUTCOME: Value creation
Raising social value
Contribute to the resolution of
social issues
INPUT
Japan
Human capital
Retail
• Aging population with a low birthrate, limits
to social security system
• Necessity of shift from savings to investment
• Evolution of corporate governance
Intellectual capital
Social capital
Asset
Management
Global
Physical capital
• Prepare for potential geopolitical risks
• Supply risk assets to growth industries
and countries
• Pursue opportunities for corporate growth
• Promote innovation
Financial capital
Wholesale
Reinvestment
Help tackle social
issues
Provide financial products
and services to individual
and corporate clients
through our 158 branches
throughout Japan
See P40 for Business
Division details
Operate globally, providing
asset management
services to a wide range of
clients
See P42 for Business
Division details
Global Markets
Provide a variety of financial
services, including trading,
sales and structuring to our
institutional investors and
corporate clients
Investment Banking
Support our clients by
underwriting bonds and
stocks and providing M&A
and other advisory services
See P44 for Business
Division details
OUTPUT
Realize the founder’s mission to
“enrich the nation through the
securities business”
Unparalleled track
record in Japan
Diverse employee
base, representing
more than
70 nationalities
Continuous accumulation
of experience and
knowledge
Global franchise
Close relationships with
a wide range of
stakeholders
Robust financial
position
Competitive
financial
products,
services,
and solutions
Establish a
solid position
as Asia’s global
investment
bank
Enhance human capital, intellectual
capital and social capital by improving
financial literacy and
supporting innovation
Raising economic value
Build a sustainable business
foundation to support growth
in any environment
FY2019/20 management target:
EPS of ¥100
(FY2016/17: ¥65.65)
Invest in areas of growth
Provide appropriate
shareholder returns
8
Nomura Report 2017
Nomura Report 2017
9
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data History of the Nomura Group — Contributing to the Development of Capital Markets for 91 Years
Pursue long-term growth by responding
to clients’ needs and providing
a wide range of financial services
Since its inception in 1925, the Nomura Group has continually expanded its product and service offerings,
developed its global operations and reinforced its corporate governance systems. Our Founder set forth ten
principles that, even today, lie at the heart of Nomura’s operations. Among these founding principles is a
description of Nomura’s raison d’être or mission to “enrich the nation through the securities business.”
We will continue to contribute to economic growth and a more fulfilling society by delivering superior services
and solutions to meet all of our clients’ investment needs.
Unchanged from time of founding
Changes from time of founding
Founder’s Principles
“Nomura’s mission is to
enrich the nation
through the securities
business.”
1926
2000
2017
— 1,062.7
—
62.4
84
14,823
5
—
—
126
19
0.3*
1,403.2
107.7
28,186
158
42
77
Net revenue (billions of yen)
Retail client assets (trillions of yen)
Employees
Branches in Japan
Personnel working outside of Japan (%)
Aggregate number of participants
in financial education programs
(tens of thousands of people)
* Figures as of March 31, 2001
91 Years of contributing to the development of capital markets
-1927
Operations centered on
underwriting and sale of
public and corporate bonds
1941
Sale of Japan’s first
investment trust products
1947
Public offering of 8 power stocks
(currently electricity stocks)
1961
First American Depositary Receipts issued
by Japanese company (Sony Corporation)
1949
Issuance of Japan’s first
convertible bonds (I unit
Takashimaya convertible bonds)
1962
First overseas issuance of convertible
bonds by a Japanese company (Shin
Mitsubishi Heavy Industries [currently
Mitsubishi Heavy Industries])
1968
Nippon Gakki (currently Yamaha)
conducted public stock offering by
issuing Japan’s first shares at
market value
1970
First issuance of samurai bonds
by overseas entity (Asian
Development Bank)
1972
Deregulation of foreign
investment trust sales in Japan
History of the Nomura Group
1925
The Securities Department of
Osaka Nomura Bank split off
into a separate company,
Nomura Securities
10
Nomura Report 2017
1927
Opened representative office in
New York
1959
Founded Nomura Securities Investment
Trust
1967
Established Nomura International
(Hong Kong)
1961
Nomura Securities listed its shares on the
Tokyo Stock Exchange, Osaka Securities
Exchange, and Nagoya Stock Exchange
1969
Established Nomura
Securities International,
a U.S. subsidiary
1980
Development and commencement of
sales of the Medium-Term Japanese
Government Bond Fund
1987
Nippon Telegraph and Telephone (NTT)
listed on stock market
Early 1990s
Adoption of Open Architecture:
offering products managed by
a wide range of asset
managers
1994
Global offering conducted by
Japan Telecom, when listing on
stock market
2003
Commence of government bond
issuance targeting individual
investors by Ministry of Finance
1994
Japan Tobacco listed on stock
market
2015
Three Japan Post Group listed on
stock market
1981
Established Nomura Investment
Management
1981
Established Nomura International,
a U.K. subsidiary
1993
Established The Nomura Trust
and Banking
2001
Formed 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
2016
Entered into a strategic
alliance with American
Century Investments
Nomura Report 2017
11
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data19251930193519401950194519551960197019751990199520002005201020152017196540,00020,00060012019801985Nikkei Stock Average(lhs, yen)Retail Client Assets(rhs, trillions of yen)Global financial crisisiDeCo-Expansion of eligibilityStart of Nippon Individual Savings Account programCollapse of bubble economyGames of the XVIII Olympiad in TokyoJapan’s “financial Big Bang”Introduction of the electronic share certificate systemEnd of WWII107.7
Nomura by the Numbers
Key Events during the Year
Nomura Securities branches
Client Assets of Retail Division
Accounts with balances
158 branches
(As of March 31, 2017)
¥107.7 trillion
(As of March 31, 2017)
5.36million
(As of March 31, 2017)
¥148 branches
(As of March 31, 2007)
¥85.2 trillion
(As of March 31, 2007)
3.95 million
(As of March 31, 2007)
In the spring of 2016, against a backdrop of a changing
In July 2016, we adopted the Nomura Health &
business environment, which began in the second half of
Productivity Declaration Statement and the Nomura
2015, and a tighter regulatory environment, we made
Group Declaration on Diversity & Inclusion. These
strategic changes to the Wholesale businesses in EMEA
initiatives are intended to ensure a working environment
and the Americas. Although FY2016/17 was subsequently
that values diversity, supports the health and well-being
marked by major events that affected the macro
of our employees and encourages them to demonstrate
environment, we were able to return to profitability in
their individuality.
our international businesses.
Assets under Management of
Asset Management Division
¥44.4 trillion
(As of March 31, 2017)
¥27.0 trillion
(As of March 31, 2007)
Central bank seminar
Held for
36
(As of March 31, 2017)
consecutive years
Percentage of Japanese listed
companies that name Nomura as
lead / deputy underwriter
62.6%
Support for financing in overseas
markets
Nomura
was
involved in
70%
of deals
Number of Japan-related
stock global offerings and
euro-yen convertible bonds
(April 2016–March 2017)
Ratio of non-Japanese Advisory
Board members
Ratio of overseas employees
(EMEA, Americas, AEJ)
100%
(As of March 31, 2017)
42%
(As of March 31, 2017)
An annual event in which central
banks, financial institutions, and
issuers from countries and
regions around the world gather
and to which top-level speakers
are invited
0%
(As of March 31, 2007)
Advisory Board formed
in 2001 to advise the
Executive Management
Board
24 %
(As of March 31, 2007)
Nomura Group’s female
manager ratio
Participants in economics and
financial education courses
Economics and finance
learning materials distributed
Donations of learning materials for junior high
school students to schools
15%
(As of March 31, 2017)
Cumulative total:
Cumulative total:
767,000 453,000
(As of March 31, 2017)
(As of March 31, 2017)
Cumulative total:
211,000
(As of March 31, 2007)
110,000
(As of April 30, 2007)
2016
April
May
June
July
August
September
December
2017
January
February
March
April
May
November
Standard & Poor’s raised long-term ratings on Nomura Holdings and
core subsidiaries
Announced strategic changes in EMEA and the Americas Wholesale
businesses
Completed equity investment in American Century Investments (ACI)
Completed share buyback program (35 million shares; about ¥16.3 billion)
Adopted Nomura Health & Productivity Declaration Statement
Appointed Chief Health Officer
Adopted Nomura Group Declaration on Diversity & Inclusion
Completion of equity investment
in ACI
Established Asia Infrastructure Project Office in Singapore
Selected as an index component of two Dow Jones Sustainability Indices
for global socially responsible investing: the DJSI World Index, and the
DJSI Asia Pacific Index
Launched Nomura’s first robo advisory service, a “Nomura Goal-Based”
online platform providing retail investors with automated, asset management
advisory services
Launched accelerator program, VOYAGER, to promote open innovation
Announced consideration of establishing a new company to promote new
business development and provide financial support to start-ups
Completed share buyback program (85.99 million shares; about ¥45.0 billion)
Launched new plan for individual-type defined contribution pension plan
(iDeCo)
Initiated the “Nomura Work Style Innovation” program, which is comprised
of Work Style Reform and Health & Productivity Management
Certified as one of the White 500 Health and Productivity Enterprises, a designation
given to companies that carry out superior health management activities
Announced partial amendment of organization and management (including
strengthening structure of Nomura Securities)
Established Policy on Customer-Oriented Business Conduct
Launched Nomura Fintech
Partnership accelerator
program, VOYAGER
Certified as one of the White 500
Health and Productivity Enterprises,
a designation given to companies
that carry out superior health
management activities
Reported diluted EPS of ¥65.65 in FY2016/17. International income before income
taxes of ¥88.1 billion, a record high since regional reporting began in 2002
Selected as Competitive IT Strategy Company 2017 by Ministry of
Economy, Trade and Industry, and Tokyo Stock Exchange
Selected as Competitive IT
Strategy Company 2017
12
Nomura Report 2017
Nomura Report 2017
13
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Financial and Non-Financial Highlights
Net revenue, non-interest expenses
(billions of yen)
2,000
1,500
1,000
500
0
1,091
773
852
787
1,093
1,151
1,046
1,131
1,037
313
Net revenue
Non-interest expenses
Members of the Board of Directors (End of June, 2017)
1,814
1,536
1,451
1,576
1,557
1,604
1,396
1,403
1,195
1,257
1,231
1,080
Percentage of
Outside Directors
60 %
Number of
Outside
Directors
6 of 10
Percentage of
non-Japanese Directors
10 %
Number of
non-Japanese
Directors
1 of 10
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Fiscal years ended March 31)
In FY2016/17, we performed a strategic review of the Wholesale business in EMEA and the Americas, and reallocated management resources to the areas where Nomura has competitive
strength. The strategic review was the culmination of an ongoing, multi-year review of our costs, especially across Wholesale. And as a result, we could significantly lower our expenses,
while growing revenues in FY2016/17.
The Board of Directors comprises a majority of Outside Directors, which enables it to
conduct highly transparent management while enabling oversight based on outside
perspectives. The Nomination Committee has established the Independence Criteria
for Outside Directors to ensure that Outside Directors are sufficiently independent
from the Group.
The Company places importance on the diversity of the Board of Directors in order to
allow for business execution to be supervised from various perspectives and to improve
effectiveness. Directors with various nationalities, genders, and backgrounds utilize their
extensive experience in a broad range of fields to make decisions on important
management matters, and to provide management oversight.
Income (loss) before income taxes, net income (loss) attributable to
Nomura Holdings shareholders, effective tax rate
Income (loss) before income taxes
Net income (loss) attributable to
Nomura Holdings shareholders
Effective tax rate (rhs)
Women in managerial
positions
Number of women in
managerial positions (lhs)
Percentage of women
in managerial positions (rhs)
Ratio of employees by region
Japan
Americas
Europe
Asia and Oceania
(billions of yen)
400
319
45.8
176
200
0
-200
-800
-65
-68
-780
-708
65.8
69.3
93
29
85
12
35.3
105
68
362
347
214
40.1
225
34.8
55.5
238
107
323
240
24.9
165
132
13.7
(%)
70
35
0
(Employees)
1,500
1,000
13
13
13
15
16
15
500
0
20
9
15
56
20
9
14
57
20
9
13
58
23
9
12
56
24
8
12
56
23
8
11
58
(%)
20
(%)
100
15
10
5
0
75
50
25
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2012
2013
2014
2015
2016
2017
2012
2013
2014
2015
2016
2017
(Fiscal years ended March 31)
(End of March)
(End of March)
We booked income before income taxes of ¥322.8bn in FY2016/17, of which ¥88.1bn, or close to 30%, was derived from the international businesses. Income generated overseas effectively
lowered the firm-wide effective tax rate to 25% and, as a result, net income attributable to Nomura Holdings shareholders improved to ¥239.6bn, the second highest level since we started
reporting under US GAAP in 2001.
Initiatives to support women in improving their careers include training and mentoring
programs for management candidates and sponsorship programs supported by senior
management, along with various other measures.
Nomura Group boasts a network consisting of business sites in more than 30 countries
and regions staffed by employees of more than 70 different nationalities. These diverse
human resources are our greatest asset for the ongoing creation of new value.
ROE
(%)
10
8.3
5
0
8.9
8.6
8.7
4.9
4.9
3.7
1.4
0.6
E PS
(yen)
100
50
0
-50
-400
(Diluted net income (loss) attributable to Nomura Holdings
shareholders per share)
92.00
55.81 60.03
65.65
28.37
35.52
21.59
7.86
3.14
-35.57
-366.16
(millions of yen)
3,000
2,033
2,000
2,441
2,515
1,000
0
Education and training expenses
Social contribution-type bonds
2,972
2,880
2,767
(billions of yen)
200
Proceeds (cid:9)lhs(cid:10)
Bonds issued (cid:9)rhs(cid:10)
(Bonds)
30
24
19
18
150
100
50
0
14
11
15
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2012
2013
2014
2015
2016
2017
2013
2014
2015
2016
2017
(Fiscal years ended March 31)
(Fiscal years ended March 31)
(Fiscal years ended March 31)
(Fiscal years ended March 31)
Our 2020 management vision is to create an organization capable of consistently delivering EPS of ¥100, which equates to approximately 10% of ROE. In addition to working to improve
profitability, we also continued to buy back shares and, as a result, EPS improved to ¥65.65 in FY2016/17.
We are establishing and enhancing human-resource development systems to enable
employees with diverse backgrounds and values to better display their talents. In
addition to offering equal employment, we provide appropriate, performance-based
evaluations and feedback.
Nomura offers products that contribute to sustainable development of society in order
to bridge the gap between investors that seek to aid society through investment and
projects, and funding drives that help resolve social and environmental issues.
14
Nomura Report 2017
Nomura Report 2017
15
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data Strategies for Value Creation
Message from Group CEO
Towards 2020
and beyond
Aiming for consistent growth
In August 2014 we announced Vision C&C, our long-
To achieve our vision, we are working to address
term management vision for 2020. This calls for us,
two overriding issues: transforming our business
as we head towards 2020 and beyond, to transform
model in Japan and improving the profitability of our
ourselves and create a robust operating platform
international operations. Our Retail business is
capable of delivering consistent growth in any
shifting to a consulting-based approach to meet
market environment.
individual needs and diversifying its offerings by
The key driver behind this is the changes we
working closely with our clients as a trusted partner.
envisage over the coming years. In Japan, the
In Wholesale, we are focusing on our areas of strength
declining birthrate and aging population will continue
where there is client demand and recalibrating our
Our operating environment is expected to
to hinder growth, while the global geopolitical
business portfolio to take services to the next level.
change dramatically over the coming years,
but our overriding philosophy of placing
clients at the heart of everything we do will
remain unchanged. As we head towards
2020 and beyond, we will continue to
transform ourselves and take on new
challenges with the aim of creating a solid
operating platform that can deliver consistent
growth in any market environment.
Koji Nagai
Group CEO
landscape shifts significantly as economic growth
We are already starting to see results, but when
powers ahead in the rest of Asia. With innovation,
we look ahead to 2020 and beyond, we still have a lot
conventional wisdom and the way business is
of work to do. By leveraging our strengths and
conducted could undergo fundamental changes.
transforming ourselves from within, we will continue
Naturally, we cannot accurately predict what the world
to take on new challenges to seek growth. Some
will be like in ten or twenty years’ time. That is why we
initiatives may not lead to concrete results in the
are looking to lay the foundation for a solid operating
short term, but I am personally committed to ensuring
platform that can help us sustain growth even under
their contribution to our success over the longer term.
uncertain conditions.
Creating synergies between Retail and Wholesale
We have a long-standing presence in the Retail business.
listed in Japan. We also have broad coverage of
To add to that strength, we built an independent
financial institutions and other institutional investors
Wholesale franchise to create a two-pronged business
across Japan which allows us to provide liquidity to
model. In the financial services industry, underwriting
a wide range of clients, giving us a competitive edge
and other Wholesale businesses can generally be
in our Global Markets business. That is why our
considered upstream while sales and distribution is
Wholesale and Retail businesses have never been
downstream. Having worked in both Retail and
separated and operate in unison, deriving synergies
Wholesale at Nomura, I can say confidently that we
from each other.
have a holistic approach, adding to our strength.
Corporate clients highly rate our ability to make
Issuers are well aware of our distribution
compelling proposals as well as our extensive
capabilities and, by delivering on the trust they place
distribution capabilities. Retail clients recognize our
in us, we have been able to forge close business
consulting expertise and diverse product offering.
partnerships with over 60 percent of companies
These are the reasons they choose Nomura.
16
16
Nomura Rep ort 2017
Nomura Report 2017
Nomura Report 2017
17
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Message from Group CEO
Growing with Asia as Asia’s global investment bank
fierce competition. So by establishing a robust Retail
Japan to Europe and the US will be our true
business and setting up a strong distribution network
competitive advantage which peers may find hard to
We believe that our successful Retail-Wholesale two-
when, where and how to lay the foundations for this
across the region, we believe we can avoid
replicate. That is the essence of Connecting Markets
pronged business model in Japan can be exported
business in Asia.
unnecessary competition. Having a two-pronged
East & West.
to some other regions internationally. We recognize
With Capital Nomura Securities (CNS) in Thailand
business model in Asia that connects Asia including
that it will be challenging to build a Retail brand from
and BDO Nomura Securities in the Philippines, we
scratch in Europe or the US where there are multiple
already have a Retail presence in some Asian markets.
high-profile brands with long histories. But in Asia
We now have to make a concerted effort to increase
including Japan, the region we consider our home,
client accounts and position ourselves to respond to
we have an advantage and we believe we can build
the middle class that emerges with economic growth.
a credible business.
Thailand is about to enter that phase and CNS has
That said, Asia is a diverse region where each
500 financial advisors who have started proving
Generational asset shift and technological innovation: Working with the next generation
In Japan, our strongest market, people’s lifestyles
and behavior are expected to change significantly as
the population declines and ages and as a result of
country is at a different stage of population growth
consulting services to their clients. (
For details, please refer to
technological innovation.
and economic development. To establish a viable
“Special Feature 5: Strengthening international businesses” on pages 36-37.)
Retail business in any country, there needs to be
In China, we have set up a joint venture with a
a middle class and per-capita GDP of around
local financial firm in the Shanghai Free Trade Zone
US$15,000 to US$20,000. Asian countries are
as part of our efforts to steadily build out our
expected to start entering this zone and we believe
business platform there.
there are ample business opportunities over the long
The Wholesale business in Asia, and investment
With people now living into their nineties, it is
essential that personal financial assets are managed
from a long-term perspective so that they live a
fulfilling life in old age. The Japanese government
has introduced a number of schemes, such as the
accumulation-type NISA that starts in 2018 and is
term. However, we will have to carefully assess
banking in particular, is known for its low fees and
tax-free for twenty years. There is also the iDeCo,
demand for advice around estate planning and
GDP per capita*1, Nomura’s Retail and Asset Management businesses in Asia ex-Japan
(US dollar)
60,000
2005
2015
52,239
42,431
Nomura China
Asset Management
Capital Nomura Securities*2
(since 1970)
27,397
22,358
Shanghai Nomura Lujiazui
Investment Management
(Wealth Management)
Nomura Asset
Management Taiwan
BDO Nomura Securities
(since 2016)
Asset Management
Wealth Management
9,768
8,109
5,815
3,346
2,904
2,068
1,614
1,161
50,000
40,000
30,000
20,000
10,000
0
Singapore
Hong Kong Republic of
Taiwan
Malaysia
China
Thailand
Indonesia
Philippines
Vietnam
India
Myanmar
Korea
*1 Source:United Nations, IMF data used for Taiwan
*2 Engages in Wholesale business
otherwise known as J401K, which is a defined
business succession. We have set up a team to
contribution pension plan that offers tax breaks for
respond to these needs and provide the required
individuals. At Nomura, we are developing systems
solutions. We also have dedicated lawyers,
to help investors tap into these plans through simple,
accountants, and tax attorneys who help support our
low-fee products that they can use to invest over the
clients’ needs.
long term. By meeting the needs of asset builders
One of the key challenges for Japan is to protect
today, we aim to pave the way for their success in
and grow the 1,800 trillion yen of personal financial
twenty years.
assets. And Nomura has a major role to play in this.
For asset builders, it is critical to proactively use
The field of gerontology, or the study of old age, has
latest technologies such as artificial intelligence and big
received significant attention recently. In October
data. To this end, Nomura offers goal-based robo
2016, we launched a joint research project with Keio
advisory services and the moneby app on smartphones.
University on financial gerontology that looks into the
We have set up a dedicated department in the firm to
implications of old age on financial behavior. This is a
guide our use of the latest technologies and to drive
part of our efforts to conduct research and provide
open innovation by teaming up with start-ups.
advice on how to solve the problems that older people
(
For details, please refer to “Special Feature 2: Leveraging new
face in managing their assets. We will continue to stay
technologies” on pages 30-31.)
close to our clients to ascertain their needs and
In Japan, which has an annual inheritance related
leverage the full expertise of Nomura to be chosen as
market of over 50 trillion yen, there is increasing
the best partner by clients across generations.
18
Nomura Report 2017
Nomura Report 2017
19
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Message from Group CEO
Our people continue to challenge the status quo
Staying relevant by helping solve social and environmental issues
We cannot achieve our goals or meet the needs of
and always being forward looking in trying to make
Our Founder’s Principles have acted as a compass to
on to future generations from what needs to change.
our clients without excellent people in the firm.
our tomorrow better than today, we have never
guide our work and contribute to economic and
With this in mind, we have drawn up a corporate
When we started out in Osaka in 1925, we were
been afraid of change or taking on new challenges.
social development. As our operating environment
philosophy and are internally discussing how to share
already a latecomer to the Tokyo market. But by
As Japan was recovering from World War II, we
changes, we need to distil what needs to be passed
this with our stakeholders.
placing our clients at the heart of everything we do
promoted the democratization of securities and
negotiated hard with the authorities to allow the
recommencement of investment trust sales as we
believed it would help steer the country towards
economic recovery. To this end, we set up
investment consultation booths in department
stores and offered courses for women to learn
about savings and investment. Our employees
thought of new ideas that led to concrete results.
As such, adapting to change and taking on new
challenges is a part of our DNA.
In our business we don’t deal with tangible
products. Our clients buy financial products based
on the values and individual qualities of each of our
people. Our people therefore constantly work to
improve themselves, enhancing trust among clients
and growing with them.
We currently have employees from over 70
nationalities, each of whom strives to take on new
challenges and grow as a professional, while
providing the best solutions to our clients by
collaborating across divisions and regions.
Nomura Group Corporate Philosophy
Mission
Contributing to Society
We help to enrich society through our expertise in capital markets
Vision
Trusted Partner
As a leading financial institution, we aim to be the most trusted partner for our clients
Values
Entrepreneurial Leadership
With passion and courage, we continually innovate to meet the needs of our stakeholders
Teamwork
To build our values and ‘Deliver Together’, we promote diversity and collaboration across
divisions and regions
Integrity
Personal integrity is paramount to us. We act honestly, fairly and openly
To remain relevant to society and ensure
importance of the ESG framework to the way we do
consistent growth, we must listen to our diverse
business.
group of stakeholders and increasingly contribute to
Looking ahead, we are entering an era in which
resolving issues that society faces. It is also essential
conventional wisdom will be increasingly challenged
that we recognize the importance of environmental,
and the financial services industry will change
social and governance (ESG) aspects to ensure
considerably. No matter what the future holds, we
sustainable growth of the corporate sector. In my
must expand our focus with an eye on helping solve
efforts to raise the satisfaction levels of clients,
social and environmental issues to continue to be
shareholders and employees since I took over as
relevant to society. Nomura aims to help create a
CEO five years ago, I have always emphasized the
better future for everyone.
20
Nomura Report 2017
Nomura Report 2017
21
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Message from Group COO
Management target (EPS*) and its progress
“Vision C&C”
The business environment surrounding Nomura is expected to change even
more dramatically than in the past. We see this as the perfect chance to
take decisive action and change the way we operate. We have expressed
this as “Vision C&C,” where “C&C” represents a chance to change.
The letter “C” also demonstrates our willingness to always take on new
challenges and put our clients first. Under this overriding vision, we will
focus on achieving our 2020 management targets.
Long-term management vision for 2020
“Vision C&C”
Two Challenges
•Transforming business model in Japan
•Improving profitability of international business
100
FY2015/16 management target
EPS ¥50
Achieved target 2 years ahead of schedule
55.81
60.03
65.65
35.52
28.37
3.14
Tetsu Ozaki
Group COO
* Net income attributable to Nomura Holdings shareholders per share
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
FY2019/20
(target)
Working toward 2020 Management Vision
fiscal year on the back of a market recovery. In addition,
also expanding market share. In addition, as a result of
while negative interest rate policy in Japan made investing
mandates won from institutional investors both in Japan
unprecedentedly challenging, we still managed to grow our
and abroad, funds flowed into high-performing high-yield
investment solutions business for financial institution clients
products. And finally, markets appreciated globally
and the Division successfully grew its business succession
during the year, positively impacting AuM. Even amid a
and asset management platform for the owners of small to
declining return environment, the Division was able to
medium-sized enterprises.
prudently manage the costs associated with each asset
With three years remaining to realize management’s
The environment in the previous fiscal year was
We remain focused on achieving ¥150 trillion of
class to achieve the highest income before income taxes
Vision C&C for the fiscal year ending March 2020,
characterized by an undercurrent of historic changes
clients assets by 2020, one of our key performance
since the fiscal year ended March 2002.
Nomura is fulfilling various initiatives and programs that
marked by the referendum in the U.K. over Brexit and
indicators (KPIs). To facilitate this asset growth, the
As we head toward March 2020, we aim to maintain
are aligned with the vision and the Road to 2020.
the U.S. presidential election – two events made us
structure of the Retail Division has been changed to allow
and expand our market share, while also contributing to
As technology continues to evolve and the political
remember that we live in an age of uncertainty.
more frequent and more effective touch points with
the development and growth of Japan’s asset
and economic landscape around the globe reaches a
Notwithstanding, Nomura achieved EPS of ¥65.65, the
clients. Also, as part of the structural change, heads of
management industry. As part of our efforts to achieve
historic turning point, we anticipate the business
record-high level since the financial crisis in 2008.
retail branches across Japan have been given the
¥55 trillion of AuM by 2020, one of our KPIs, we will also
models of financial institutions will change more rapidly
than ever before. Under these circumstances, we
continue to challenge ourselves and pursue our
Performance and initiatives in each business
flexible and stay closer to clients.
overseas by deepening our collaboration with American
At the same time, within Retail, efforts to promote
Century Investments.
discretion to make more business decisions to remain
further expand our investment advisory business
philosophy of “placing clients at the heart of everything
Below is an explanation of each division’s performance
financial innovation through the introduction of FinTech,
The most important theme for the Retail Division and
we do.” Over the last five years, we have dedicated
in FY2016/17 and new initiatives planned for the next
etc., will be accelerated.
For details, please refer to “Special Feature
the Asset Management Division is to help address
ourselves to accomplishing the two main strategic
three years to help us progress toward our March 2020
2: Leveraging of New Technologies” on page 30.
Japan’s national challenge of expanding risk assets and
goals of “business model transformation in Japan” and
goals.
The Asset Management Division successfully brought
increasing the flow of money from cash to securities and
“improvement of profitability of our international
The Retail Division struggled in a difficult market
assets under management (AuM) to a record high as of
other investments. With regard to the recently
businesses.” With these goals at our core, we believe
environment and grappled with attracting new assets for
March 2017. The increase in AuM can be attributed to an
reconfirmed “Customer-Oriented Business Conduct,”
we are poised to steadily progress toward our
the purpose of long-term investment. In the first quarter,
expansion of our ETF business, as we were able to offer
both divisions are aiming to resolve any issues and
management goal for 2020 of EPS of ¥100.
revenue hit a low but began rising toward the end of the
a wide range of products to meet investors’ needs, while
improve performance by retaining the de facto standards
22
Nomura Report 2017
Nomura Report 2017
23
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Message from Group COO
of a leading company.
such as Rates and Emerging Markets, including
declining birthrate, Japan is confronting the challenge of
of Nomura’s strengths while, at the same time, working on
As a result of the strategic review of businesses in
currencies. In Investment Banking, in addition to winning
improving productivity and resolving a generational divide.
measures to improve productivity, including Company-wide
EMEA and the Americas conducted in April 2016, the
cross-border M&A mandates and ancillary transactions,
As Japanese society undergoes rapid changes, it is also
cost controls. We expect Nomura’s business efforts will
Wholesale Division succeeded in increasing revenues
we deepened collaboration with Global Markets to
pursuing a new growth model. Through the implementation
complement broader initiatives across Japan that are
and greatly lowering the breakeven point overseas.
strengthen our origination and distribution structure,
of Nomura Work Style Innovation, Nomura will endeavor to
intended to promote financial innovation, attract a greater
Although revenue was slow in Japan due to rigid interest
which resulted in a significant improvement of
provide more effective services in a more efficient manner.
number of participants, and ultimately revitalize the
rates and a lack of momentum in the equity market, our
productivity, especially in the Americas.
In other words, we will enable our clients to make the most
country’s financial markets.
enhanced risk culture (
for details, please refer to “Risk Management”
As we move toward March 2020, we will continue to
on page 64) helped us successfully navigate major events
expand our Origination and Emerging Market businesses
overseas, such as the decision of Brexit and the start of
to meet clients’ needs by deepening the collaboration
the Trump Administration. Through the year, we were
between Global Markets and Investment Banking. Also,
able to improve productivity both in Global Markets and
we will continue to focus on cross-border businesses by
Investment Banking and we have come to the point
promoting and developing relationships across regions.
where we can acknowledge our success in “improving
Lastly, we will continue to balance prudent risk
profitability of our international business.”
management and efficient resource allocation to
In Global Markets, we successfully broadened our
establish a more stable business model that is not easily
client base and diversified revenue streams as we
influenced by market fluctuations.
continued to win clients’ trust, especially in businesses
Matrix management structure
Retail
Eiichiro Yamaguchi
Head of Retail
Asset
Management
Kunio Watanabe
Head of Asset Management
Wholesale
Steven Ashley
Head of Wholesale
Koji Nagai
Group CEO
Tetsu Ozaki
Group COO
Toshio Morita
President,
Nomura Securities
Yuji Nakata
Deputy President,
Nomura Securities
Co-CRO
Vikas Sharma
Head of
Asia ex-Japan
Jonathan Lewis
Head of EMEA
Kentaro Okuda
Head of Americas
JAPAN
Asia ex-Japan
EMEA
Americas
Key performance indicators (KPIs) to achieve 2020 management target*
Shoichi Nagamatsu
Chief of Staff
Takumi Kitamura
CFO
Lewis O’Donald
CRO
2020 management
target
EPS ¥100
(EPS ¥65.65)
Three segment income
before income taxes
¥450-470 billion
(¥278.6 billion)
(
) is for FY2016/17, or as of March 2017
Retail
¥195-205 billion
(¥74.8 billion)
Asset Management
¥50-55 billion
(¥42.3 billion)
Wholesale
¥200-220 billion
(¥161.4 billion)
Retail client assets
¥150 trillion
(¥107.7 trillion)
Recurring revenue cost coverage ratio
around 50%
(25%)
AuM
¥55 trillion
(¥44.4 trillion)
Fee pool market share
3.4 %
(3.2 %)
* FY2019/20 market assumptions: Nikkei 225 at ¥25,000; USD/JPY rate ¥115; Effective tax rate for Japanese corporates below 30%; Global fee pool annual growth rate of 1%
Our matrix management structure
by clients. The Americas region has entered a critical
stage that will determine whether we can establish a
In the fiscal year ended March 2017, Nomura’s matrix-
structure that allows us to address growing needs for
based management structure was strengthened to
cross-border businesses, while also retaining enhanced
enable each region to resolve challenges and achieve
productivity. And across Asia, we will accelerate our
its previously defined goals. With Brexit in the
offering of cross-divisional services to build Nomura’s
background, the EMEA region is now at a turning point
franchise in emerging countries, including China.
that will determine whether we are going to be chosen
Against the backdrop of an aging population and a
From the left: Vikas Sharma, Head of Asia ex-Japan; Kunio Watanabe, Head of Asset Management; Steven Ashley, Head of Wholesale;
Tetsu Ozaki, Group COO; Koji Nagai, Group CEO; Shoichi Nagamatsu, Chief of Staff; Toshio Morita, President, Nomura Securities;
Eiichiro Yamaguchi, Head of Retail (front row); Jonathan Lewis, Head of EMEA; Kentaro Okuda, Head of Americas
24
Nomura Report 2017
Nomura Report 2017
25
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Message from CFO
Takumi Kitamura
Chief Financial Officer
Controlling costs to achieve the long-term
management vision for 2020
highest level since we introduced US GAAP in 2001.
Our expanded client base and thorough risk
management culture have contributed to a more stable
In FY2016/17, we succeeded in nearly doubling income
revenue stream. We are, however, not insulated from
before income taxes, on revenues that were roughly
the impact of uncertain financial markets and, in order
unchanged from the prior year.
to continue to improve profitability, we must maintain
The international regions have been a long-lasting
stringent cost controls. For example, personnel
challenge for Nomura. In the spring of 2016, we performed
expenses represent close to 50% of our total cost base
a strategic review of the Wholesale business in EMEA and
and, to closely manage these costs, we will continue to
the Americas, exited some businesses, and scaled back
emphasize the concept of “Pay for Performance.” In
others in order to reallocate resources in the areas where
addition, we are able to control our IT and occupancy
Nomura has competitive advantages. In FY2016/17, all
costs through the use of Cloud technology and a
international regions returned to profitability and generated
thorough review of office space usage. At the same
close to 30% of the Company’s total income before
time, we will be conducting an overhaul of all costs,
income taxes, primarily due to the difficult decisions made
including our centralized, firm-wide purchasing system,
overseas. The international business contributed to our
and introducing new technologies that will improve
success in maintaining stable firm-wide revenues and
business process efficiency. These initiatives will allow
dramatically lowering costs, which resulted in a significant
the Finance to support the Company’s initiative to
improvement in profitability. In fact, net income attributable
“grow in a sustainable manner, no matter what the
to our shareholders came to ¥239.6 billion, the second
external environment.”
Execute a flexible capital policy while con-
sidering the needs of various stakeholders
and maintained an open dialogue with other
stakeholders to share information about Nomura and
obtain feedback about our business and capital
As a global financial institution, various capital
planning policies. While the opinions of different
adequacy regulations, including those laid out by the
stakeholders vary and sometimes conflict with one
Basel Committee on Banking Supervision, impact the
another, my mission as CFO is to balance the desires of
way we conduct business. As of March 2017, our
each stakeholder to identify the best course of action
Common Equity Tier 1 (CET 1) ratio was 18.2%, up
for Nomura.
significantly from 11.9% four years ago, as a result of
In our shareholder return policy, we have adopted a
our efforts to accumulate Tier 1 capital and reduce
dividend payout ratio of 30%, based on half-year
risk-weighted assets, while actively conducting
performance. Therefore, after we pay 30% of profits to
shareholder returns.
shareholders in the form of a dividend, we theoretically
While we intend to retain a CET 1 ratio of 11% or
add the remaining 70% to our capital base. Looking
more in the medium term, we are currently retaining an
ahead, we will pay close attention to the market
excess in anticipation of potentially tighter regulations
environment and the impact of regulatory changes to
and their uncertain impact on Nomura.
appropriately allocate our capital surplus to business
Nomura has a broad range of stakeholders including
investment, share buyback, etc. In addition, we will
clients, shareholders, creditors and regulators. In
regularly review the capital allocated to each business
FY2016/17, we held more than 300 one-on-one
to continue to improve capital efficiency.
meetings with equity investors and sell-side analysts,
Consolidated capital adequacy ratio
RWA
CET1 capital ratio*(rhs)
Dialogue with stakeholders in FY2016/17
(trillions of yen)
20
15
10
5
0
18.2
14.0
(%)
20.0
15.0
10.0
5.0
0
2 013
2 014
2 015
2 016
2 017
Conference
Conference call following results announcements
Presentations on strategies
One-on-one meetings (incl. small meetings)
With analysts and institutional investors
With debt investors
With credit rating agencies
Individual investors
No.
4
2
No.
302
67
42
No.
* CET 1 capital ratio is defined as Tier 1 capital minus Additional Tier 1
capital divided by risk-weighted assets.
No. of attendees at 113th General Shareholders Meeting
545
(end of March)
No. of individual shareholders (March 2017)
374,769
26
Nomura Report 2017
Nomura Report 2017
27
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Special
Feature
01
Special Features:
Transforming business model
in Japan
Initiatives to enhance consulting service
Business model transformation to better respond to each client’s needs
The Retail Division has been transforming its
and passing them on to the next generation. In
business model to grow its business by
addition, the owners of small- to medium-sized
enhancing client trust and satisfaction and
enterprises must plan and execute strategies
becoming a financial institution many people
for business succession, and regional financial
turn to. The transformation will enable Nomura
institutions are faced with selecting investment
to address clients’ more diversified needs and
strategies appropriate in a low interest rate
the challenges they face against a backdrop of
environment. In order to effectively respond to
an aging population, a low birthrate and
these challenges, we are shifting our business
consistently low interest rates. For example,
model to one focused on individual consulting
Japan’s senior generation is currently
services and need-based solutions from one
confronted with protecting their own assets
centered on product offerings.
Changing the performance management and HR system
Our first priority has been to educate our
client, we have started offering a wider variety
people about the benefits of the business
of products such as discretionary investment
model transformation. We have also revised
products, insurance and real estate offerings
our performance management and HR
that complement more traditional financial
systems to better reflect our long-term goals
products. In addition, in April 2015, we also
for the business.
enhanced the inheritance related services that
To tailor investment solutions for each
the business is able to offer to our clients.
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Toward 2020
Business model transformation: Aim to grow our business by enhancing client trust and satisfaction to become
a financial institution many people turn to
Change employee mindset
Organization
and HR
changes
April 2013
Changes to performance management system
• Emphasize client asset growth and client relations
• Reward on results for full term of appointment
September 2014
Revision of HR system
• Lengthened appointments for General Career Type A
Employees (from average of 3 to 5 years)
• Introduced new employment category (no rotations,
retirement up to 70, recurring revenue based compensation)
April 2017
Established Policy on
Customer-Oriented
Business Conduct
April 2017
• Organizational change:
Abolished regional head
• Place stronger emphasis on
improvements in client
satisfaction as part of employee
performance management
Service and
product
enhancement
July 2012
Sales staff started using mobile
tablets for client consultations
Steady growth in
product and business
offering
• Discretionary investments
• Insurance
• Real estate
• SME M&A
April 2015
• Nomura Trust & Banking enters
estate planning business
• Established Nomura Institute of
Estate Planning
January 2018
Integrate and
increase online services
(Nomura online services)
October 2016
Launched a joint research project with Keio
University on financial gerontology
Retail Division’s consulting services: On the front lines
By putting Nomura’s all-around capabilities to use, we are able to address
each client’s unique concerns, ensuring we become their go-to partner for
all aspects of their financial plans.
Q.
What kind of things do you consider when
you talk with clients?
I look to grasp precisely, quickly, and thoroughly what the
client is really concerned about and I try to picture his or
her concerns in the form of a pie chart. For example, if you
are a company owner your main business may take up
about 70%–80% of your attention, leaving a small amount
of time to focus on business succession and inheritance
issues. In these instances, financial planning or asset
management, which is the main focus of securities
companies’ activities, are often surprisingly low on the list.
Q.
What can you do for a client who is tack-
ling issues with their principal business?
A client’s business concerns may vary from time to time;
e.g. its principal business, potential expansion of overseas
business, employee training, succession plan issues, etc.
If it comes to principal business, I can provide information
tailored to the client’s needs by liaising with and leveraging
resources across Nomura’s core business divisions. If a
client is interested in growing their business overseas, we
can provide introductions to local partners through
Shosaku Tobioka
Financial Consulting Section
Niigata Branch
Nomura Securities Co., Ltd.
Nomura’s global network and office locations overseas. In
a restructuring of his asset management company and
addition, if a client is interested in improving employee
various inheritance-related measures. Since all of them
training, I can at least speak about Nomura’s approach to
were very important for the entire family, I also met with his
human resources. By listening and responding carefully to
children to explain the details of the plan and their parents’
each concern, I believe Nomura can become a go-to
overall intentions. After much discussion, and only after the
partner for all aspects of a client’s wealth, including
entire family was comfortable with Nomura’s proposal, we
financial matters.
implemented the restructuring and estate plan.
Q.
Can you give a specific example?
Q.
What are your ambitions now?
There was one company owner who had been managing his
Nomura has a wide range of networks, specialized
financial assets through Nomura. As I got to know the
knowledge, product lineups and infrastructure, including
client better, it became clear to me that he was having
a tablet terminal that provides access to the company’s
trouble finding someone to rely on for assistance managing
internal knowledge, even on the go. We, however, are
his family’s total assets and aiding gifting and inheritance
not making full use of our potential. When I joined
planning. Before we began working together, he had
Nomura, my boss told me that client satisfaction was of
engaged with several financial institutions to address
utmost importance. I truly believe the effectiveness of
certain portions of his financial plan, but altogether, the
my work can be measured by the gratitude and thanks
works were incomplete. I, together with a tax accountant
that I receive from my clients. It is my personal and
who was familiar with inheritance tax matters, visited him,
professional goal to enhance my skill set so that I can
and reviewed his complete estate plan and discussed his
continue to act as a partner and ultimately please each
inheritance goals. We drafted a total solution that included
of my clients.
28
Nomura Report 2017
Nomura Report 2017
29
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Special
Feature
02
Special Features:
Leveraging new technologies
Enhanced services through online services and contact
centers in Japan
Appealing to a broad client base
The Retail Division offers products and services
transactions like order entry, deposits and
tailored to client needs, either by working
withdrawals, and also provide direction for new
together at Nomura branches or through our
clients. Looking ahead, we are keen on adding
online services and contact centers. As Japan’s
advisory functions and improving client access,
conventional social security system has been
eliminating the need to visit a branch office.
reaching its limits in tandem with its aging
Our online services currently include Nomura
population and declining birthrate, the need to
Home Trade, which is available to clients who
prepare for old age has been growing. Nomura
have an account at our headquarters or one of
has been supporting the shift from savings to
our branches, and Nomura Net & Call, which
asset formation through interactive seminars
specializes in online-based and telephone-based
and virtual communications.
services. Beginning in January 2018, we plan to
We would also reinforce our business purpose
combine those two services to optimize their
other than face-to-face services. Our contact
complementary strengths, and ultimately enhance
centers currently focus mainly on recurring
to the status of “digital advisers.”
Image through to 2020
Headquarters and branches
Contact Centers
Online Services
Channel
Number of
clients
(image)
Reinforcing
client-approach
effectiveness
•Strengthening consulting
•Assistant system
•Enhanced remote consulting
services
•Advisory functions
•Introduction of new technologies,
other companies’ technologies
Strengthening services
Nomura Securities
Nomura Asset Management
In November 2016, we launched our first robo-
In April 2016, we launched our asset management
advisor, “Nomura Goal-Based,” to provide
robo advisor “Funds Robo,” and in March
clients with online financial advice. In addition to
2017 we released our “moneby” smartphone
proposing optimal investment solutions, it offers
app. This “moneby” is equipped with a game
“Investor Style Diagnostics” and “Investment
function that predicts the movement of the
Goal Setting,” which allow clients to set
Nikkei Average and Dow Jones, and a function
investment goals while considering their risk
called “school” which helps people learn
tolerance and overall financial objectives.
about investing.
Promote FinTech initiatives by collaborating globally, and utilizing
third-party expertise and technology
Promotion of accelerator programs and new business development in Japan and India
Nomura Accelerator Program
VOYAGER
Together with Nomura Research Institute and Nomura
Real Estate Holdings, we identified five themes that
address important social issues. We then invited and
selected qualified start-ups to work together with us to
commercialize various new businesses initiatives.
New business development
Establishment of N-Village, a subsidiary
In April 2017, we established N-Village as a
subsidiary focused on new business development
and open innovation. N-Village aims to transform
the way Nomura works with its clients by creating
new services and promoting existing businesses.
In addition, N-Village will engage and partner with
start-ups to support their business expansion.
Expand accelerator program to India
We started a similar accelerator program in
India in order to expand into Asia.
Five recruitment themes
Establishment of Nomura Innovation Center
Creating services to enrich the lives of seniors
in India
Improving the reliability of financial
information using technology
Proposing new approaches to owning, giving, and
bestowing assets in step with changing lifestyles
Creating strong ties with consumer companies
Creating living environments that meet diversified lifestyles
We established the Nomura Innovation Center
(NICe) in India as an “innovation laboratory”
that evaluates and applies new ideas and
technologies to Nomura’s core businesses.
NICe is a component of our effort to promote
innovation globally.
Example of use of artificial intelligence in public-private partnerships
In 2015, Nomura Securities created the Nomura AI
of Economy, Trade and Industry’s Industrial Production
Business Confidence Index, which was developed
Index in order to promptly disclose its results. Through
through the AI-based analysis of economic and
direct collaboration with Ministry of Economy, Trade and
financial data provided by the government and Bank of
Industry, this initiative has enhanced the efficiency and
Japan. We are now working to reproduce the Ministry
accuracy of such indices.
Other initiatives
Blockchains
RPA
We are participating in the R3 consortium, a research and
Robotic Process Automation (RPA) is used to automate
development initiative for blockchain and decentralized
work processes that until now have been handled only
account technologies that support financial institutions.
by humans. Nomura is currently using RPA to improve
In addition, we are also participating in the Japan Exchange
overall work efficiency and productivity, a project we
Group’s blockchain verification project to support the practical
expect will reduce costs and improve processes across
30
Nomura Report 2017
“Nomura Goal-Based”
“Funds Robo”
Smartphone application
“moneby”
use of blockchains across the financial services industry.
our businesses.
Nomura Report 2017
31
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data Special
Feature
03
Special Features:
Promoting financial and economics
education in Japan
Supporting the shift in asset-building from savings to investment
Asset-building taking new shape to meet rapid changes in the
structure of society
Japan is at a point where approaches to asset-
and economics education initiatives for young people in
building are changing dramatically against a backdrop
Japan. We initiated educational and awareness
of an aging population, declining birthrate, and people
activities for university students in 2001, and today we
living longer lives. People need to make their own
are focusing on providing educational programs for all
efforts to build assets, and financial and economics
generations, ranging from elementary and junior high
education, particularly for young people, has
school students, to university students and adults. We
become a vital issue. Financial and economics
are continuing to contribute to the creation of a truly
knowledge is important not only for appropriate
thriving society by offering a diverse range of
asset-building but also for developing sound capital
economics and securities education opportunities
markets from a long-term perspective.
for children, who hold the future in their hands—
Nomura Group has long been engaged in financial
and for all who wish to gain financial knowledge.
Comprehension of financial terms
financial literacy: International comparison
Interest
Suppose you put ¥1
million into a savings
account with an annual
interest rate of 2%. How
much would be in the
account at the end of
the first year?
Risk/Return
Investments providing
above-average returns
entail above-average risk
61%
64%
48%
77%
79%
47%
Compound interest
With the same condition as on
the left, how much would be
in the account at the end of
five years? Choose one of the
following responses:
(1) more than ¥1.1 million, (2) exactly
¥1.1 million, (3) less than ¥1.1 million,
(4) it is impossible to tell from the
information given, (5) don’t know.
Diversification
It is usually possible
to reduce the risk of
investing in the stock
market by buying one
company’s stocks and
shares
47%
37%
31%
60%
55%
30%
UK
Germany
Japan
Inflation
When inflation is high,
prices of goods and
services increase rapidly
overall.
94%
87%
Five question
average
65%
67%
40%
39%
Source: UK and Germany: from OECD International Network on Financial Education pilot study undertaken in 14 countries in 2010-11,
Measuring Financial Literacy. (Questionnaire used in face-to-face and telephone interviews)
Japan: Nomura Research Institute (NRI), door-to-door survey of 10,000 consumers “Third Questionnaire Survey of 10,000 Japanese
Consumers – Financial Edition” (number of respondents: 10,070) aged 18-79 across Japan in August – September 2016
Providing a wide range of tools for different purposes and audiences
We have been providing financial and economics
education across different generations since the 1990s.
Our programs and educational materials are designed
to meet the needs in all areas set forth in “financial
literacy as a life skill” within the broader “Financial
Literacy Map” in a report by the Study Group on
Financial Education established by the Financial
Services Agency in April 2013.
Financial and economics education programs offered by Nomura Group
Aim
Course
Elementary school students
Junior high school students
High school students
Become familiar
with “Money”
Let’s Learn about the
Meaning of Investment”
Let’s Learn about
“The Future” and “Money”
University students
Let’s Learn about “Living
Economics Activities” from a
Practical Perspective!
Instructors
Practical Financial and
Economics Education
Manabou Classroom for
elementary schools
(for learning about foreign
exchange and stocks)
Investor Experience:
“What Is Investing?”
Let’s Learn about Life
Planning: “A Talk on Your
Future and Money”
NOMURA Business Challenge: Teaching junior high and
high school students about entrepreneurship
Sponsored Lecture:
“The Role of Capital
Markets and Securities
Investments”
Seminars for instructors
Learning about stocks
through games
Courses for children and parents to learn about
investment based on animated cartoons
Study materials
(free distribution)
“The Economics Classroom”
“Social System and the Role of
Money” textbook
An introduction to the
economy:
“The T-Shirt Shop”
“STOCK FANTASY”
Sponsored Lecture:
(reference library)
“Investment Basics”
“Japan’s Capital Markets”
Textbook:
“Social System and the
Role of Money”
(Instructors Manual)
Publications
Co-sponsored programs
Online
“Nyanta and the Great Adventure of Money”
Team challenge! Learning from Stock Investment: Nikkei Stock League
“The Compendium of Securities Companies”
The Nikkei Stock League stock education contest
Sponsorship of “Nikkei Investing in the Future” contest
man@bow economics learning website
Expanding efforts in education to improve financial literacy
Nomura Group’s financial and economics education programs
offices in 47 prefectures nationwide, our branches have been
have been approved as official programs of the Olympic and
working hand-in-hand with people in local communities to send
Paralympic Games Tokyo 2020 in the field of economics and
Nomura Group employees to serve as visiting lecturers to
technology. In FY2016/17, we held financial courses at 104
schools throughout Japan. Through contact with employees
universities throughout Japan. We also offered programs in
who are professionals in finance, we hope children will deepen
which parents and children could participate together, and on
their understanding of finance and the economy. We also hope
the theme of entrepreneurship, which drew high demand from
that they will make use of this knowledge as they build their
high schools. Tapping the experience of staff in our network of
future careers.
Implementation status of programs
(as of March 31, 2017)
Year first offered
No. of schools/participants, etc.
Total number of participants
Nikkei Stock League
Financial courses for universities
Financial courses for the general public
Visiting classes (elementary, junior, senior high
schools, universities, teachers)
2000
2001
2003
2008
No. of teams: 26,118
103,528
No. of schools: 1,758
228,200
No. of times: 7,850
391,650
No. of classes: 1,066
43,787
Donations of teaching materials
(as of March 31, 2017)
Year first offered
FY2016/17
Cumulative total
Teaching materials for elementary schools
(“The Economics Classroom,” “Social System and the
Role of Money”)
2008
Teaching materials for junior high schools
(“The T-shirt Shop”)
2006
No. of schools: 378
4,048
No. of copies: 25,503
308,111
No. of schools: 56
4,778
No. of copies: 4,664
452,660
Total number
of participants
767,165
Total:
761,000
copies
Courses for children together
with their parents
In FY2016/17, we developed a
program for parents and children
together featuring an animated movie,
and held the program at 15 branches.
To ensure the effective implementation of programs, we have
been offering visiting classes in cooperation with local education
coordinators. We have also been providing support by sending
employees as lecturers to study groups organized by student
bodies.
As part of our post-disaster reconstruction support, we have
been sending employees as visiting teachers for middle school
students in disaster-affected areas. In Kumamoto Prefecture,
employees visiting middle schools had students speak about
their future dreams.
Special partnership program
The Nikkei Stock League is a competition-based stock education
program for junior high school, high school and university students.
Nomura Group has served as a special sponsor since the contest began
in 2000. Each year, almost 100 of our employees participate as members
of the report review panel.
32
Nomura Report 2017
Nomura Report 2017
33
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Special
Feature
04
Special Features:
Supporting the growth of private and
public sectors through our business
Connecting “issuers needing funds” and “investors
providing funds”
Today’s economic climate is changing at a startling
but other times it is necessary to utilize capital
speed, as evidenced by the evolution of technology
markets to undertake business reorganizations,
and change of consumer behavior. All corporations,
mergers, investments or financing to remain
including financial institutions, are faced with the
competitive. In this situation, Nomura acts in its
challenge of responding to these changes and
capacity as Asia’s global investment bank and
adapting to the new environment. Often times,
aims to provide various solutions that respond to
corporations are able to forge ahead on their own,
each company’s individual needs.
Nomura’s strength is providing comprehensive solutions matched to
client needs.
Corporates,
government
institutions, etc.
M&A advisory
Financing
Solutions business
Nomura Group
• Issuing stocks, convertible and
other bonds
• Share buyback
• Acquisition financing, etc.
• Foreign exchange and interest
rate hedges
• Real estate purchase, sale,
securitization, etc.
Sales
Investors
Trading desk
Business foundation and track record necessary to provide optimal
solutions.
Investment
Banking
Thomson Reuters
Deal Watch Awards 2016 - Overall
“House of the Year - Nomura Securities”
Deal Watch Awards 2016 - Equity
“Equity House of the Year - Nomura Securities”
Asiamoney
Best Domestic Bank Awards 2016
“Best Domestic Equity House in Japan”
Trading
Sales
Euromoney
FX Survey 2016
No. 18 in overall ranking
(No. 1 among Japanese financial
institutions for 7 consecutive years)
Coalition
2016 APAC Investment Banking
League Table
Tied for No. 3
(Up from No. 8 in 2015)
Institutional Investor
All-Japan Sales Team Ranking
No. 2 overall
Japan’s Top Corporate Access
Provider Ranking
No. 1 overall
J.D. Power
2012–2016 Japan Investor
Satisfaction Study
Full-Service Securities Segment
“No. 1 in investor satisfaction for
5 consecutive years”
Support for new market entrants
The Nomura Group provides support for its clients by
for future business growth, Nomura aspires to support
connecting investors with new issuers with high growth
the health of the Japanese economy and invigorate
potential. By helping private companies list on public
capital markets while also, in some cases, aiding the
exchanges, and by providing them with ongoing support
resolution of various social issues.
Number of new listings in Japan and the percentage of these for
which Nomura was the lead underwriter
1
No.1 share in underwriting
Number of new listings in Japan (lhs)
Percentage for which Nomura was the lead underwriter
(based on number of deals) (rhs)
(Companies)
200
1
1
1
1
1
1
1
1
1
1
1
1
150
100
50
0
73
50
27
23
23
22
23
29
19
29
35
37
33
36
31
26
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
(%)
100
75
50
25
0
Newly listed company stories
HEALIOS K.K.
(Listed on the TSE Mothers market on
June 16, 2015)
Kanamic Network Co., Ltd.
(Listed on the TSE Mothers market on
September 14, 2016)
The mission of HEALIOS K.K. is “to be the change in an ever
Kanamic Network provides information solutions across the
evolving world through enrichment of living.” Guided by this mission,
medical care, long-term care, and child-rearing industries.
Healios develops its business by utilizing its iPS cell and other stem
Ultimately, their goal is to support comprehensive regional care
cell technologies to deliver treatments and hope to patients suffering
through cloud-based services. The company’s main business
from intractable diseases. Healios was established in February 2011
focus is currently its information sharing platform Kanamic Cloud
with the aim of realizing practical application of treatments for
Services. For example, Kanamic’s cloud services can play an
age-related macular degeneration that entail transplanting retinal
important role by sharing information about a medical patient with
pigment epithelium cells derived from allogeneic iPSC. In addition to
all interested parties, including doctors, care managers, etc. In
alliances with leading Japanese companies, Healios has procured
addition, parents can use the cloud-based platform to receive
approximately ¥7.7 billion in capital by its listing on the Tokyo Stock
regular updates about their child from the child-rearing facility or
Exchange Mothers in June 2015. The company is moving forward
the individual caregiver.
with development projects in Japan and overseas with the aim of
Through the listing, the company hopes to fund its ambition of
establishing treatment methods that work to fully cure illnesses with
becoming the top cloud service provider in the medical care,
a focus on diseases that are rising with the aging of the population
long-term care and child-rearing sectors and to ultimately help to
and other diseases that are currently without a viable treatment.
build a safe and thriving society.
Contents distribution from corporates
Parties relevant
to medical
care, long-term
care
Kanamic Cloud Services
Parties relevant
to child-rearing
support
•Information sharing platform
•Care operations management system
•Child-rearing support system
•Contents service
Comprehensive multi-generational care
At the Cell Processing Center
34
Nomura Report 2017
Nomura Report 2017
35
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Special
Feature
05
Special Features:
Strengthening international
businesses
Initiatives towards improving international profitability
Paving the way for future growth in Asia
Achieving sustainable profitability in our
operations returned to profitability and the
international platform has been a key priority
business portfolio is well positioned for growth
for Nomura. A number of strategic initiatives
opportunities going forward. In order to ensure
have been implemented in the Wholesale
the sustainability of our performance, we will
Division over the years to structurally lower
pursue revenue growth while continuing to shift
our cost base and realign our overseas
towards a flexible cost structure leveraging
platform around the areas of our strength.
industry best practices and synergies within the
As a result, our firm-wide international
Nomura Group.
Cost rationalization
Strategic
repositioning
Growth focus
Thailand
Initiatives of Capital Nomura
Securities
Major review of cost structure
Integrated Global Markets
Rationalization of underperforming
businesses
Focused investments
Improving returns
CNS booth at an event for individual investors sponsored by
the Stock Exchange of Thailand
Front to back streamlining
Focus on areas of strength
Firm-wide international profitability improved
Firm-wide international profitability improved
following to a series of initiatives
following to a series of initiatives
(billions of yen)
Firm-wide international income (loss) before income taxes
100
50
0
-50
-100
-150
88.1
-24.7
-16.4
-79.4
-79.6
-129.1
FY 2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Philippines
Initiatives of BDO Nomura
Securities
Party commemorating start of general operations on October
24, 2016
Capital Nomura Securities Public Company Ltd. (CNS) is a securities
company based in Bangkok, Thailand, that engages in both Retail
and Wholesale businesses. It was established in May 1970, became
a founding member of the Stock Exchange of Thailand in 1975, and
was then listed on the exchange in 1988.
As of December 31, 2016, CNS had 17 offices across Thailand
and employed approximately 580 people. CNS has grown into one
of Thailand’s leading securities companies by increasing trading
volumes by private and institutional investors, underwriting volumes
of initial public offerings and investment trust sales.
Nomura Holdings held a minority stake in CNS until 2014 when it
increased its stake to 85.78% through a tender offer bid and
subsequently converted CNS to a consolidated subsidiary. CNS
continues to focus on both its Retail and Wholesale businesses to
capitalize on the rising number of listed companies and the growing
population of investors across Thailand. In addition, as Thailand
faces an aging population, CNS will also expand operations by
moving away from the conventional, brokerage-centric business
model to a consulting-based business model.
In 2016, Nomura and Banco de Oro Unibank, Inc. (BDO Unibank),
the Philippines, largest commercial bank, established BDO Nomura
Securities, Inc. (BDO Nomura), an online securities company and a
means for Nomura to develop a Retail business in the Philippines.
In October 2016, BDO Nomura commenced operations targeting
major domestic clients of BDO Unibank. It also began transacting
with local Philippine stock exchanges to fill orders received from
Nomura’s global clientele.
The economic growth rate in the Philippines was 6.8% in 2016,
one of the highest among principal Asian countries, second only to
India. High economic growth, coupled with the exceptionally low
average age of 23, leaves the country ripe for future business growth.
Despite the country’s socio-economic landscape, average daily
trading volumes across all stock exchanges were only ¥17 billion
(US$153 million) in 2016, and roughly half of the transactions were
placed by overseas investors, which is most likely a function of the
nation’s low financial literacy rate.
The population of the Philippines is expected to exceed that of
Japan within the next decade. BDO Nomura intends to grow with
the population as it leverages the experience and insight it has
gained in Japan, Asia’s largest retail market. Ultimately, BDO
Nomura’s goal is to increase the risk capital and stimulate the
growth and development of capital markets across the Philippines.
36
Nomura Report 2017
Nomura Report 2017
37
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
At a Glance
Business segments
Retail
Retail Division provides a broad range
of financial products and services
through its head office and its nation-
wide network of 158 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.
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.
Investment advisory business provides
high-quality products and asset
management services to a broad
spectrum of institutional investors.
Income before
income taxes:
¥74.8 billion
Retail client
assets:
¥107.7 trillion
Number of
branches:
158
Income before
income taxes:
¥42.3 billion
Assets under
management:
¥44.4 trillion
Share of ETFs
in Japan:
45 %
Source: The Investment Trusts Association, Japan
• Individual investors
• Regional government
Clients
agencies
• Regional financial
institutions
• Corporates
• Educational institutions
• Other legal entities
Our
Services
• Sales of financial products
• M&A advisory
• Real estate (agency services)
• Inheritance and business
succession services
• Individual investors
• Domestic and overseas
Clients
pension funds
• Governments and central
banks
• Institutional investors, etc.
Our
Services
• Development of financial
products and asset
management
• Direct sales of services to
some investors
Wholesale
Wholesale Division consists of two
businesses: Global Markets providing
financial products and solutions and
secondary market liquidity, and
Investment Banking offering capital-
raising transactions and advisory
services.
It provides diverse services to a
broad range of clients including
corporates, government entities and
financial institutions in Japan and
overseas.
Income before
income taxes:
¥161.4 billion
Countries possessing
the Primary Dealer
qualification
World’s major
markets
15 countries
Japan ECM League Table
1st / Share 22.0 %
(April 2016 to March 2017) Source: Thomson Reuters
Clients
• Financial institutions
• Institutional investors
• Corporates
• Governments and
government entities
Our
Services
• Underwriting of bonds
and stocks
• M&A advisory
• Syndication of financial
products, proposal for
investment
• Provision of liquidity,
high-level execution
Overview of regions
One of the Nomura’s strengths is its global business platform.
By collaborating closely across businesses and regions, we are
able to provide optimal solutions to meet the needs of our clients.
Asia ex- Japan*2
6,619 people
We define Asia, including Japan, as our home
market. It is in Asia ex-Japan however, where high
economic growth is expected. We are well poised
to capitalize on this growth as our business,
led by our Wholesale and Asset Management
Divisions, operates in 12 countries across the
region. In addition, we also have an overseas
Retail business in Asia ex-Japan.
Japan
16,227 people
Japan has been the home base of the
Nomura Group for 91 years since it was
established in 1925. The Group provides a
full range of financial services to a broad
range of clients through its Retail, Asset
Management and Wholesale Divisions.
Asia and Oceania
¥23.7billion
Japan
¥234.7 billion
Income before
income taxes
¥322.8 billion
Europe
¥14.4 billion
Europe
3,026 people
Europe is the world’s second-largest financial
market, after the Americas. In this region, the
Wholesale Division is focusing on businesses
of strength, including Macro (Rates, Foreign
Exchange), M&A advisory and solutions,
while also controlling costs to improve
profitability.
The Americas
¥50.0 billion
The Americas
2,314 people
The Americas is the largest financial market in the
world and a key strategic region for Nomura. The
Wholesale Division is looking to grow its market
share by allocating management resources to
areas where we have a competitive edge.
In addition, the Asset Management Division
has been diversifying its investor base while
increasing assets under management, mainly in
high-yield bond products, through new investor
mandates and assets appreciation.
A
b
o
u
t
N
o
m
u
r
a
S
t
r
a
t
e
g
e
s
i
l
f
o
r
V
a
u
e
C
r
e
a
t
i
o
n
S
t
r
e
n
g
t
h
s
S
u
p
p
o
r
t
i
n
g
V
a
l
u
e
C
r
e
a
t
i
o
n
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
/
D
a
t
a
*1 Income before income taxes is for FY2016/17, and the remaining figures are as of March 31, 2017, unless otherwise defined.
38
Nomura Report 2017
*1 Income before income taxes is for FY2016/17, and the remaining figures are as of March 31, 2017
*2 Includes Powai office in India
Nomura Report 2017
39
Business Divisions
Retail Division
Strengths, Challenges, Actions
Strategy (Actions to create value)
• Largest branch network and client base across Japan’s securities sector
• Ability to prepare and deliver best-in-class investment advice
Strengths
• Sophisticated consulting services
The Retail Division has been working to transform its
expanded its eligibility to a wider range of nations in
business model as it aims to grow the business by
January 2017, and monthly investment-type NISA
• Leverage capabilities across the Nomura Group to offer clients
enhancing client trust and satisfaction and becoming a
plan will start from January 2018. Through diverse
differentiated services
• Approaching clients’ core assets, in addition to investment assets
Challenges
• Earnings structure exposed to market environment
• Building relationships with family members of elderly clients
• Increasing new, younger clients
• Training consultants whom clients could completely trust
• Building stable earnings structure by increasing recurring revenues
• Enhancing products and services aimed at elderly clients and their
younger family members
Actions
financial institution people turn to. The key performance
channels, we are explaining the benefits of the
indicators (KPIs) we are targeting as we head towards
expanded systems to clients, when appropriate.
FY2019/20 are income before income taxes of ¥195-205
We are also pursuing initiatives designed to
billion, client assets of ¥150 trillion, and a recurring
enhance client convenience. In February 2017, we
revenue cost coverage ratio of 50%*1. In the last fiscal
launched our new money transfer service. This
year, we made major organization changes across Retail
enables the immediate transfer of funds from clients’
to enhance our efforts to raise client trust and satisfaction
bank accounts to their securities accounts with
and to ultimately achieve our KPIs.
Nomura after making a request via telephone or
• Enhancing content targeted at younger people (websites, seminars,
We continue to promote various initiatives that will
through Nomura Home Trade.
robo advisor services, etc.)
Review of FY2016/17
During the first half of the fiscal year, client activity declined amid an uncertain
market environment. Following the US presidential election in November 2016
however, trading of equities and bonds recovered as the yen depreciated and
stock prices rose. Notwithstanding the improvement in the second half, full-
year net revenue was ¥374.4 billion and income before income taxes was
¥74.8 billion, both marking year-on-year declines.
Against this backdrop, the Retail Division continued to expand its consulting
services and pursue its ambition to counsel each client about their individual
concerns and requirements, with a goal of providing optimal investment
solutions. Supported by this effort, discretionary investment client assets
expanded, helping stabilize earnings. Assets under custody also increased over
the year, approaching a record high.
Trend of business results
(billions of yen)
Net revenue
Income before income taxes
435.6
374.4
127.6
74.8
600
450
300
150
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Fiscal years ended March 31)
offer higher-value consulting services to clients. For
In January 2018, we intend to rebrand our online
example, we have been reinforcing our inheritance and
services as Nomura Online Service, which will integrate
business succession planning capabilities. Specifically,
Nomura Home Trade and Nomura Net & Call and will
The Nomura Trust and Banking Co., Ltd. launched
aim to further improve customer satisfaction of our
testamentary trust and estate management and Nomura
online services.
Institute of Estate Planning*2 established an estate
In addition to the programs mentioned, we continue
planning research center. The research center is staffed
to emphasize the importance of customer satisfaction
with certified tax accountants that strengthen the
and are maintaining ongoing annual customer
network for research and information exchange relating
satisfaction surveys of sales representatives.
to estate planning and business succession.
We are targeting a wide range of investors focused
on accumulating assets. In addition to the Nippon
Individual Savings Account (NISA) program, individual-
type defined contribution pension plans (iDeCo)
*1 Recurring revenue divided by total Retail expenses. Recurring revenue
refers to revenue received from ongoing services related to client assets
such as investment trust administration fees.
*2 A wholly owned subsidiary of Nomura Holdings established in April 2015
to undertake research and disseminate information on estate planning
and business succession issues.
Morning Pitch is an event aimed at creating business
Topics
tie-ups between venture companies and large enterprises
held every Thursday from 7am at the Shinjuku Nomura
Building Branch of Nomura Securities. The program began
in 2013 on a proposal put forward by Tohmatsu Venture
Support and Nomura Securities employees as a way of
accelerating the emergence of new companies that will
drive the Japanese economy. To date, more than 900
venture companies have made presentations and
participated in always lively question and answer sessions.
40
Nomura Report 2017
Nomura Report 2017
41
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Business Divisions
Asset Management Division
Strengths, Challenges, Actions
Strategy (Actions to create value)
• Sophisticated in-house research and investment expertise, combined
with a multi-manager fund management system, enables us to offer a
wider range of investment products and solutions than we can handle
Strengths
through in-house management alone
• The ability to offer persuasive solutions to meet diverse customer
needs by combining a wide range of investment products and services
• Dynamic product development and a sales structure able to offer products globally
• Intensifying competition and structural changes in the asset
Challenges
management industry in Japan and overseas
• Growing social demands with respect to fiduciary duty
• Attracting individual investors as they reach the asset accumulation threshold
• Expand our investment capabilities to access more business opportunities globally
• Further strengthen business collaboration with American Century Investments
(ACI) to leverage mutually complementary sales regions and products
• Deepen commitment to client-first business operations through efforts
Actions
such as establishing the conflict of interest management policy
• Hold seminars to improve financial literacy and support wealth and asset
building, information campaigns related to provision of smartphone apps, etc.
• Expand lineup of products in which individual investors reaching the
asset accumulation threshold find it easy to invest
Review of FY2016/17
In the Asset Management Division, net fund inflows during the year amounted to ¥2.2
trillion supported by efforts to offer clients a broad range of products to address
diverse investment needs. Assets under management at the year-end amounted to a
record-high ¥44.4 trillion. For the year, net revenue was ¥99.4 billion and income
before income taxes was ¥42.3 billion, both up sharply from the year before.
As part of the strategic partnership with ACI, Nomura completed the purchase of
a 41% economic interest in ACI in May 2016. The alliance gained traction with such
developments as the November 2016 launch of the U.S. Value Strategy Fund, man-
aged by ACI, for retail investors in Japan.
Trend of business results
(billions of yen)
Net revenue
Income before income taxes
99.4
95.4
42.3
36.7
100
75
50
25
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Fiscal years ended March 31)
We are working to ensure the highest level of client
investment advisory businesses in Japan and overseas.
satisfaction and earn the implicit trust of our clients based
While looking to further improve the performance of
on the three pillars of “maximizing value,” “advanced
existing investment strategies, we are actively working
expertise,” and “confidence and responsibility.”
on stewardship activities and developing investment
The global asset management industry is expected
strategies that make effective use of pilot funds to
to see sustained expansion. At the same time, the
enhance value-creation effectiveness. To respond
industry structure is changing and becoming more
promptly and more effectively to client needs, we are
dynamic amid moves by major Japanese financial
also broadening our solutions lineup and strengthening
institutions to reinforce their asset management
cooperation between sales and investment management
businesses, and due to ongoing mergers between
departments. Furthermore, we are working to boost
global asset management companies. In addition,
competitiveness by securing and nurturing talented staff
competitors have been developing various investment
with high-level expertise across different business fields.
techniques and the use of ETFs and other passive
We are focusing on improving work efficiency from a
investment approaches has been gaining momentum.
global and company-wide standpoint.
Nomura Asset Management ETFs
assets under management
(trillions of yen)
12
10.5
Share in Japan
with our strategic partner ACI. Leveraging ACI’s strong
We are steadily making headway in our collaboration
45%
presence in the US mutual fund market and Nomura’s
strengths in Japan and Asia, we are beginning to reap
6
0
7.5
6.2
4.0
2.6
2013
2014
2015
2017
2016
(End of March)
(Source: The Investment
Trusts Association, Japan)
(As of March 31, 2017)
good results through the mutual supply of products to
clients as we continue to expand our business.
The Asset Management Division will always operate
with professionalism as an investment manager
entrusted with clients’ assets. We intend to contribute
In this environment, the Asset Management Division
to our clients’ wealth and asset building through the
aims by FY2019/20 to raise income before income taxes
sustainable value creation of investee companies, which
to ¥50-55 billion and increase assets under management
we hope can be part of future growth cycles.
to ¥55 trillion through expanding investment trust and
What can we do, as an asset management company,
to realize a virtuous cycle through investment?
The role of investment in society is to create future growth cycles by circulating
Topics
money. To align this cycle in a positive direction, we are engaged in stewardship
activities. As an asset management company, we seek to encourage sound
corporate management through constructive dialogue with the companies in
which we invest while exercising voting rights to maximize investment returns.
We also conduct wide-ranging activities to explain the role and appeal of
investment to individual investors through seminars and press advertisements.
42
Nomura Report 2017
Nomura Report 2017
43
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Business Divisions
Wholesale Division
Strengths, Challenges, Actions
Strategy (Actions to create value)
• Top-in-class industry presence in Asia-Pacific region, particularly in
Strengths
Japan, and strengthening international platform
• Global client base across more than 30 countries
• Leading facilitator of cross-border transactions worldwide
• Generating higher return under tighter regulatory environment
Challenges
• Relatively high sensitivity to market fluctuation
• Changes in market structure and competitor dynamics
• Continue to align our portfolio to evolving market conditions
and client needs
Actions
• Reinforce risk culture and discipline
• Deliver growth through value-added service to clients
and selective investment in growth areas
Review of FY2016/17
Since the second half of 2015, global markets have experienced extreme
volatility and a significant decline in liquidity, triggered by heightened
uncertainty in the global economy. With the assumption that this market
environment would continue, and under tighter regulatory environment,
Wholesale took decisive action to make strategic changes in EMEA and the
Americas and lowered its breakeven point. As a result, full year net revenue
was ¥739.3 billion and income before income taxes jumped to ¥161.4 billion.
We succeeded in increasing our net revenue within this difficult market
environment, while also significantly lowering our cost base. In particular,
Fixed Income revenue jumped on strong client flows.
Trend of business results
(billions of yen)
Net revenue
Income (loss) before income taxes
800
600
400
200
0
-200
-800
720.3
739.3
161.4
15.4
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
At Nomura Wholesale Division, our focus has been to
Wholesale business made a remarkable recovery during
position the business to deliver sustainable performance
FY2016/17. Going forward, the key priorities are to build
across market cycles, and contribute ¥200 – ¥220 billion
on this robust foundation through the following items.
to the firm’s income before income taxes by FY2019/20.
To that end, we undertook strategic repositioning of the
• Reinforce our client franchise, particularly in
international business portfolio in April 2016, to shift away
international regions, to ensure long-term sustainable
from structurally disadvantaged businesses, and to focus
performance
our management resources to areas of strength including
• Invest in medium-term growth drivers, including
Global Macro, Emerging Markets, M&A and Solutions, etc.
Advisory and Origination, Emerging Markets, and
At the same time, the breakeven point for our business
Structured Products & Solutions
has been lowered through structural cost reductions
• Increase optimal utilization of financial resources to serve
through initiatives such as the streamlining of our ”front to
client needs seamlessly across the Wholesale portfolio
back” infrastructure, and synergies from stronger
collaboration between Global Markets and Investment
In responding to the various needs of our clients, we
Banking under an integrated Wholesale structure.
will continue to maintain a resilient risk culture as well as
As a result of these initiatives, and continued
flexible resource allocation, collaborating effectively
resilience in our home market in Asia-Pacific, the
between Global Markets and Investment Banking.
Global business expansion of Wholesale Division
Leverage strengths in APAC to deliver competitive services to clients in Europe/US and Asia:
“Connecting Markets East & West”
Clients
EMEA
Focus on areas of strength
Institutional investors
Financial institutions
Corporates
Retail investors
Government entities
Financial sponsors
Americas
Strengthen franchise, maintain
full service platform
APAC
Expand franchise to tap into growth
Provide liquidity to market
Nomura Wholesale aims to make markets across asset classes and market cycles for clients. We are active
participants across primary and secondary markets, as reflected in ~6% market share in U.S. Treasuries
and ~13% in JGBs. We also actively help corporates raise funding and were ranked No. 1 in the Japan
ECM underwriting league table in FY2016/17 with a 22.0% market share as well as a No. 1 ranking in the
Japan IPO league table in FY2016/17 with 27.3% market share.
Wholesale exercises robust risk discipline while providing liquidity and deploying our financial resources to
meet client needs. There has been relentless and ongoing focus on strengthening our risk framework, and
Topics
44
Nomura Report 2017
Nomura Report 2017
45
(Fiscal years ended March 31)
improving return on financial resources by seamless allocation across all areas of the Wholesale business portfolio.
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Strengths Supporting Value Creation
Corporate Governance
http://www.nomuraholdings.com/company/cg/index.html
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 goals of bolstering corporate value by deepening society’s trust in the firm and increasing the satisfaction of clients and
other stakeholders. We are working to make the Group’s decision-making process speedy and efficient, while also striving to ensure
effective oversight of management and management transparency through the enhancement of corporate governance.
Corporate governance system and features
• Strengthening oversight through the separation of management oversight and business execution
• Rapid decision-making through the delegation of business execution authority
Nomura Holdings has adopted a “Company with Three
execution to a large extent to Executive Officers.
Board Committees” structure. Though this structure, we
In addition, we have put in place three board
aim to strengthen the oversight function by separating
committees (the Nomination Committee, the Audit
management oversight and business execution. We also
Committee, and the Compensation Committee), all
aim to ensure prompt decision-making by having the
comprising a majority of Outside Directors, in order to
Board of Directors delegate authority for business
further improve transparency.
Audit
Execution
General Meeting of Shareholders
Board of Directors (Page 50)
10 Directors, of which six are Outside Directors
• In its composition, the Board of Directors emphasizes diversity. Board members conduct
oversight from diverse perspectives, applying their experience and knowledge in various
specialized fields in order to realize highly transparent management
Nomination Committee
Three Directors, of whom two are Outside Directors
• Comprises Directors who are not concurrently serving as Executive Officers
• Determines the details of proposals on the election and dismissal of Directors for
submission to the General Meeting of Shareholders, in accordance with set criteria
for character, insight, corporate management experience and expertise, as well as
independence
Audit Committee
Four directors, comprising three Outside Directors and
one full-time member of the Audit Committee
• Audits the execution of duties by Directors and Executive Officers, prepares audit
reports, and determines details of proposals regarding the election, dismissal, and
non-reelection of the Independent Auditor
Compensation Committee
Three Directors, including two Outside Directors
• Comprises Directors who are not concurrently serving as Executive Officers
• Determines policies with respect to the compensation of Directors and Executive
Officers, and determines compensation for each individual
Outside Director Meetings (Page 51)
Outside Directors meet periodically to hold discussions on such topics as Nomura Group’s
strategies and the management of the Board of Directors
Group CEO
Executive Management Board
Deliberates on and determines important Nomura Group matters,
such as the management strategy for Nomura Group, business plans,
budgets, and allocation of management resources
Delegates authority to
make decisions on
business execution
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
Group Integrated Risk Management
Committee (Page 52)
Deliberates on and determines important matters
concerning Nomura Group’s integrated risk
management
Internal Controls Committee (Page 52)
Deliberates on and determines matters
concerning the establishment and
assessment of Nomura Group’s
internal controls and the promotion of
appropriate corporate behavior
Matrix Management Across Three Divisions and Regions (Page 25)
Nomura Group employs a matrix management system across divisions. Under this system, the organization implements
strategies and attains management goals through close collaboration between Nomura Holdings, division heads, business
infrastructure division heads, and regional heads
A
b
o
u
t
N
o
m
u
r
a
S
t
r
a
t
e
g
e
s
i
l
f
o
r
V
a
u
e
C
r
e
a
t
i
o
n
S
t
r
e
n
g
t
h
s
S
u
p
p
o
r
t
i
n
g
V
a
l
u
e
C
r
e
a
t
i
o
n
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
/
D
a
t
a
46
46
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
47
47
Corporate Governance
Measures to reinforce governance
Nomura’s initiatives to bolster corporate governance
• Adoption of the “Company with Three Board Committees” structure
• Establishment of the Advisory Board
In 2001, when we adopted a holding company structure
transparency of our oversight function and expedited
and listed on the New York Stock Exchange (NYSE), we
Nomura Group’s management process by adopting the
introduced Outside Directors and established an Internal
“Company with Committees, etc.” structure (now the
Controls Committee, a Compensation Committee (the
“Company with Three Board Committees” structure),
majority of the members of which are Outside Directors),
a governance structure under which management
and an Advisory Board of distinguished persons from
oversight and business execution functions are clearly
outside the Company.
separated.
We have also diversified the Board of Directors in
The Company’s corporate governance system is
terms of the backgrounds of members and made efforts
very similar to the corporate governance standard
to improve management transparency by such means
stipulated in the NYSE’s Corporate Governance Guide
as further improving our information disclosure system.
for listed companies and we judge that it is the optimal
In 2003, we further strengthened and increased the
institutional design for us at this point in time.
Addressing Japan’s Corporate Governance Code
• Implementation of all principles of Japan’s Corporate Governance Code
With the application of Japan’s Corporate Governance
initiatives to reinforce corporate governance. As a
Code to publicly listed companies beginning in June
result, we have at this point adopted all of the
2015, Nomura Holdings has been undertaking various
principles of the Code.
Establishing Corporate Governance Guidelines
• Structure for transparent/fair and timely/decisive decision-making
In November 2015, the Board of Directors of Nomura
“Company with Three Board Committees” structure,
Holdings, recognizing the perspectives of various
with a Nomination Committee, a Compensation
stakeholders beginning with shareholders and clients,
Committee, and an Audit Committee, promoting
established Nomura Holdings Corporate Governance
dialogue with shareholders, and fulfilling our social
Guidelines, with the aim of defining and contributing to
responsibility.
the realization of a framework of effective corporate
Please visit our website to view the full text of the
governance as a structure for transparent/fair and
Corporate Governance Guidelines and the Corporate
timely/decisive decision-making. The Corporate
Governance Report, which discloses the status of our
Governance Guidelines stipulates the frameworks for
measures to address Japan’s Corporate Governance Code.
strengthening corporate governance, including the
composition of the Board of Directors, the outline for the
Nomura Holdings Corporate Governance Guidelines
http://www.nomuraholdings.com/company/cg/data/cg_guideline.pdf
Company with Board of Auditors
Appointed one Outside Statutory Auditor
1994
1998
2001
Established the Compensation
Committee (voluntary)
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)
2003
2004
Company with Committees, etc
Established the Nomination, Audit
and Compensation Committees
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
Started evaluation of the Board of Directors meetings
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
48
Nomura Report 2017
Nomura Report 2017
49
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Corporate Governance
Board of Directors
Management status of the Board of Directors
• Outside Directors comprise a majority of the Board of Directors including independent Outside Directors
• Emphasis on diversity within the Board of Directors to conduct oversight from diverse perspectives
Separate from Board of Directors meetings, meetings
the management of the Board of Directors are
comprising only Outside Directors are held, where
discussed to help strengthen the oversight function.
Nomura Holdings has made management oversight the
ensure the independence of Outside Directors from
main role of the Board of Directors. Based on oversight
Nomura Group. As none of the six Outside Directors of
with an emphasis on an external perspectives, we aspire to
Nomura Holdings fall under the categories for which
have highly transparent management, through such means
independence is considered suspect, we have reported
as structuring the Board of Directors with a majority of
that each of the Outside Directors is an independent
Outside Directors. Currently, six of the 10 members of the
Director in our submission to the Tokyo Stock Exchange.
Board are Outside Directors. Our Board of Directors
consists of members with diverse backgrounds in terms of
nationality, gender, professional experience, and other
attributes. By utilizing their extensive experience in their
respective fields, such as finance, corporate management,
and law, the Directors assist with the determination of
important management matters and oversee business
execution.
We have established Independence Criteria for
Outside Directors within the Nomination Committee to
Independence Criteria for Outside Directors
http://www.nomuraholdings.com/company/cg/data/criteria.pdf
Composition of the Board of Directors
(as of July 1, 2017)
Concurrently serving as
Executive Officers
2
Familiar with
securities
business
2
Attorney-at-law
1
Corporate
managers
2
Accountants
2
Business
accounting expert
1
Support system for Directors
• Establishment of system to support directors in their duties
The Company has established an Office of Non-
to Meetings of the Board of Directors, continuously
Executive Directors and Audit Committee to support
provides updates to Outside Directors regarding
the work of the Audit Committee and the Board of
important matters of the Company, including business
Directors. The office acts as the secretariat of the
content, business plans, financial status, and governance
Audit Committee and supports Directors in the
structures such as the internal controls system.
performance of their duties by such means as
In addition, an Outside Director may request an
regularly providing information on management to
explanation or report and/or request materials from
Outside Directors.
Executive Officers and employees as necessary. An
In connection with meetings of the Board of Directors,
Outside Director may consult legal, accounting, or other
the Company, by using occasions such as briefings prior
outside experts at the Company’s expense, as necessary.
matters such as the strategy of Nomura Group and
Number of
meetings of Board
of Directors
11 (from April 1, 2016 to March 31, 2017)
Outline of
discussions
• Items relating to quarterly earnings results
• Decisions on interim and full-year dividends
• Statutory matters such as the appointment of
Executive Officers
• Reports on business conditions in each division and region and on
business execution
• Analysis and discussion related to management strategy based on
the PDCA cycle
• Reports related to such matters as risks and compliance Officers
Regularly held meetings attended only by Outside Directors
Evaluation of the effectiveness of
Board of Directors meetings
Since FY2015/16, the Company has conducted evaluations
of the effectiveness of the Board of Directors. We assess
the effectiveness of the Board of Directors in terms of such
matters as its management, the quality and quantity of
information provided, and the content of discussions. We
are working to further strengthen the oversight function,
including through discussions at the Board of Directors
meetings based on the results of assessments.
Each individual
Director evaluates
the status of his/her
execution of duties
and the effectiveness
of the entire Board of
Directors
The Board of Directors
analyzes and evaluates
the effectiveness of the
entire Board of Directors
based on the evaluation
of each individual Director
1
4
2
3
The results of the
evaluation including
the report on
response measures
are discussed at
meetings of the Board
of Directors
Discussion of issues
that can be handled
by Executive Officers,
proposals submitted
to the Board of
Directors
Evaluation
method
Matters
evaluated
Questionnaires are submitted to the Directors, and discussions are held by the Board of Directors based on questionnaire results
• Composition and management of the Board of Directors
• Provision of information to the Board of Directors
• The involvement of the Board of Directors in management
targets and management strategy
• The Board of Directors’ management oversight function
• The three Board committees
(Nomination, Audit, and Compensation)
• Monitoring of the status of dialogue with stakeholders
• Meetings of Outside Directors, etc.
Addressing
the results
We have established the Office of Non-Executive Directors and Audit Committee to support the duties of the Audit Committee
and Directors, and have otherwise enhanced the organizational platform for providing information to Directors, along with
further improving the management of the Board of Directors.
50
Nomura Report 2017
Nomura Report 2017
51
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Corporate Governance
Business execution by Executive Officers
Compensation for Directors and Executive Officers
• Agile business execution through the broad delegation of decision-making authority to Executive Officers
The Board of Directors has broadly delegated decision-
Internal Controls Committee. These management
making authority for business execution to Executive
bodies report to the Board of Directors on the status of
Officers to ensure that they can execute business with
their deliberations at least once every three months.
speed and efficiency. Furthermore, among the matters
In order to further bolster our business execution
of business delegated to the Executive Officers by
framework for financial business that is becoming
resolutions adopted by the Board of Directors, certain
increasingly sophisticated and specialized, we utilize a
important matters must be deliberated and decided by
system whereby the Executive Officers delegate a part
specific management bodies within the Company,
of their authority for business execution decisions to
including the Executive Management Board, the Group
Senior Managing Directors, whose role is to focus on
Integrated Risk Management Committee, and the
individual businesses and operations.
Internal Controls
• Established internal audit departments, independent from business execution, in the Company and in key subsidiaries
As Nomura has adopted the “Company with Three Board
Compensation Policy for Directors and Executive
Committees” structure, the Compensation Committee
Officers of Nomura Holdings, Inc.
has established the Compensation Policy of Nomura
The compensation of Directors and Executive Officers
Group and the Compensation Policy for Directors and
comprises base salary, yearly cash bonuses and
Executive Officers of Nomura Holdings, Inc.
long-term incentive plans, and is determined by the
Compensation Committee based on this policy. A
Compensation Policy of Nomura Group
portion of compensation may be deferred or paid in
To enable us to achieve sustainable growth, realize a
the form of equity-linked awards. Equity-linked
long-term increase in shareholder value, deliver added
awards have vesting periods to ensure that the
value to our clients, compete in the global market, and
medium- to long-term interests of Directors and
enhance our reputation, our compensation policy is
Executive Officers are closely aligned with those of
based on the following aims.
shareholders.
1. Align compensation with Nomura’s values and
strategies
2. Reflect company, division, and individual performance
3. Establish appropriate performance measurement with
We are committed to strengthening and improving our
audits of the Company and its subsidiaries, in addition to
a focus on risk
internal controls system to promote proper corporate
the audits carried out by the Audit Committee. ( Please see
4. Align compensation with company earnings and
behavior throughout Nomura Group, with the aim of
page 65 regarding risk management through the so-called “Three Lines of
shareholder interests
ensuring management transparency and efficiency,
Defense” approach.) The implementation status of internal
complying with laws and regulations, controlling risks,
audits is also reported to the Board of Directors and the
ensuring the reliability of business and financial reports,
Audit Committee.
and promoting the timely and appropriate disclosure of
In addition, to strengthen the independence of the
5. Establish appropriate compensation systems
6. Ensure robust governance and control processes
information. Furthermore, in order to manage business
internal audit sections from the business execution function,
Compensation paid to Directors and Executive Officers
risk, to implement risk management through the risk
implementation plans and the formulation of the budget of
management and compliance functions, and to ensure
the Internal Audit Division, as well as the election and
effective and adequate internal controls, the Group
dismissal of the Head of the Internal Audit Division require
Internal Audit Department, which is independent from the
the consent of the Audit Committee. Audit Committee
business execution function, and other similar audit
members may recommend changes to the implementation
sections established in key subsidiaries, conduct internal
plan and other matters 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
Agrees on IA’s audit plan,
human resources, and budget
Report
Audit Committee
• Four Directors, comprising three Outside
Directors and one full-time member of the
Audit Committee
• Internal audit plan and budget approval
• Appointment and dismissal of IA head
Report
Assists the Audit
Committee with its
duties
Office of Non-Executive Directors and
Audit Committee
52
Nomura Report 2017
Business
Risk Management
Compliance
Internal Audit (IA)
Internal Audit
Management
Position
Number of
People*1
Basic
Compensation*2,3
(millions of yen)
Bonus
(millions of yen)
Deferred
Compensation*4
(millions of yen)
Total Amount Paid
(millions of yen)
Directors
(Outside directors)
Executive
Officers
Total
9
(6)
6
15
315
(146)
430
745
94
(-)
379
473
88
(-)
288
376
497
(146)
1,098
1,595
*1 There were 9 Directors and 6 Executive Officers as of March 31, 2017. The number of people and compensation to Directors who were concurrently serving as
Executive Officers is included in the section for Executive Officers.
*2 Basic compensation of 745 million yen includes other compensation (commuter pass allowance) of 690 thousand yen.
*3 In addition to basic compensation, 24 million yen of corporate housing costs, such as corporate housing tax and related tax adjustments, were provided.
*4 For deferred compensation (such as stock options) granted during and prior to the fiscal year ended March 31, 2017, the amount recognized as expense in the
fiscal year ended March 31, 2017, are shown here.
*5 Subsidiaries of the Company paid 47 million yen to Outside Directors as compensation etc. for their directorship at those subsidiaries for the year ended
March 31, 2017.
*6 The Company abolished retirement bonuses to Directors in 2001.
Compensation for Directors and Executive Officers
http://www.nomuraholdings.com/company/cg/compensation.html
Nomura Report 2017
53
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Interview with Outside Director
I will continue to strive to contribute to the enhancement
of Nomura’s competitiveness and the creation of value
by offering advice as well as acting as a check
Noriaki Shimazaki
Outside Director, Chairman of the Audit Committee;
Advisor of the IFRS Foundation Asia-Oceania Office;
Former Executive Vice President of
Sumitomo Corporation
Please discuss the merits and challenges with
respect to Nomura’s corporate governance.
Please discuss the specific roles and activities of
the Audit Committee.
In 2003, Nomura became one of the first companies in
In terms of how we operate, the Audit Committee has
Japan to adopt the “Company with Three Board
adopted a new approach since 2016, under which Outside
Committees” structure. Today, a majority of the Board of
Directors who are not Audit Committee members are
Directors is comprised of independent Outside Directors,
invited to attend monthly meetings. At Audit Committee
and the Company has a clear separation of supervisory and
meetings, we invite leaders such as the Group CEO, Group
business execution functions.
COO, division heads, and heads of subsidiaries to join us,
In one year since I was appointed Outside Director,
and we spend about an hour talking with them. This gives
I have come to clearly understand that Nomura’s corporate
us access to the thinking of the executive side. The aim
governance structure is in no way superficial, and that the
here is to eliminate disparities in the amount of information
nomination, audit, and remuneration committees, all of
available to each Director, to the maximum extent possible.
What is needed to raise Nomura’s presence
overseas?
What needs to be done in order to enhance
Nomura’s corporate value?
which comprise a majority of Outside Directors, function
In FY2016/17, the Audit Committee debated four main
Nomura Group has declared its aim to be “Asia’s global
I see two main themes crucial to achieving Nomura Group’s
extremely well. I think this stems from a strong awareness
topics and reported back to the Board of Directors. The first
investment bank,” but I think it is one of the few companies
long-term management vision targeting the fiscal year
on the part of senior management. Every year, August 3 is
matter was about creating something that would make it
taking up the challenge of globalization. Above all, the key
ending March 2020: reforming the business model in Japan
designated as Nomura Founding Principles and Corporate
easier for employees to understand top management’s
to success is people. The quality of Nomura’s people
and further improving profitability overseas. We must work
Ethics Day, and this day is used to renew awareness of the
thinking, in order to ensure an even healthier corporate
abroad, both in terms of abilities and awareness, is higher
to build a foundation for sustainable growth regardless of
lessons learned from past mistakes. I, too, watched the
culture. Secondly, we discussed enhancing Nomura’s
than I had imagined. This is true not only for people in
the business environment. Progress here requires top
video prepared by the Company and took an oath. I sense
corporate value by ensuring a balance between earnings in
management positions, but it applies to people throughout
management to clearly delineate strategies and give a clear
a strong determination to achieve sustained growth based
Nomura’s core businesses, while at the same time adhering
the organization, including sales staff and the people
sense of direction. At the same time, it is important to make
on the principle of putting the customer first as found in the
to the customer-first principle. Thirdly, we talked about
working in such areas as IT, human resources, general
sure that people throughout the group gain a firm
ten principles set out by our founder Tokushichi Nomura,
monitoring the specific strategies of different departments
services, and business support centers. The staff in Tokyo
understanding of these strategies and the overall direction
while making sure to prevent a “business above all else”
to ensure that efforts are aligned towards realizing Nomura
who work in cooperation with these people overseas are
that Nomura Group is heading in.
culture from taking hold.
Group’s overall management strategies. Finally, with
also outstanding. Nomura’s head office is becoming an
In addition, I think it is vital to listen to the opinions of
After assuming my post, I visited the Kyoto and Osaka
respect to internal control, we looked to build a strong
increasingly international place. Surely we can raise our
our people on the ground regarding these strategies in
branches, along with offices in New York, London, Hong
platform to bolster management control, and both expand
presence overseas by further strengthening systems to
order to factor their views into new strategies and tactical
Kong, Singapore, and Powai. I interviewed executives and
the earnings base and generate higher earnings than before
better enable our diverse human resources to demonstrate
approaches. Moreover, we also need to aim higher on the
held group discussions with mid-level employees, and
through appropriate risk-taking. In our dealings with the
their individuality and abilities to the fullest extent.
back of repeated PDCA (plan, do, check, action) cycles.
what struck me was how much traction top management’s
authorities and our independent auditors, we focused on
Nomura Group has adopted a matrix system of
It is also important to learn from best practices. While
philosophy has gained among the staff in all of the
establishing relationships of trust with an element of
management across divisions and regions, under which
studying U.S. and European investment banks, Japanese
different regions.
“tension” that prizes extensive communications but also
appropriate authority is delegated to division and regional
megabanks, and others that have succeeded in steadily
One of the roles of an Outside Director is to give
welcomes healthy pressure.
heads in order to enhance expertise in each area. I think we
expanding earnings in Japan and overseas, thereby
counsel on whether any particular business is consistent
In such ways, the Audit Committee has been going a
need to look to more precisely define assignments and
increasing corporate value, Nomura needs to create its
with Nomura’s excellent principles. I am happy to report
little beyond simple oversight, as we have been monitoring
further clarify responsibilities so that this management
own, unique value. Outside Directors have a role to play in
that Nomura’s senior executives take such external
business activities and giving advice targeting additional
approach does not become overly complicated, and I
overseeing executive officers and providing advice that
opinions very seriously, and the effectiveness of
growth for Nomura.
believe that close cooperation centered on each division
supports corporate strategies and growth. As an Outside
governance has steadily improved.
We also hold meetings limited to Outside Directors four
and regional head will enhance competitiveness overseas.
Director and Chairman of the Audit Committee, I will
times in FY2016/17. At about two of these meetings, we
invite the Group CEO, Group COO, or other executives, and
spend considerable time discussing detailed strategies, the
medium-term management plan, and other matters.
It is also important to integrate operations in Japan and
continue to strive to contribute to the enhancement of
Asia, and to bring the know-how and expertise that Japan
Nomura’s competiveness and the creation of value by
possesses to the rest of Asia.
offering advice as well as acting as a check.
54
Nomura Report 2017
Nomura Report 2017
55
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Interview with Advisory Board Member
Kan Trakulhoon
Advisory Board Member
Director and Chairman of the Management Advisory
Committee of the Siam Cement Group (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).
I believe that with corporate values that reflect
innovation and sustainability, Nomura can become not
only Asia’s global investment bank but also a global
leader by its 100th anniversary
What is your philosophy for steering organizations
as a member of top management?
to top management.
Employee surveys are helpful for acquiring insights on
Adaptability and responsiveness are among the most
trends, such as why young people tend to leave their
important qualities and, as such, they must be ingrained in
companies. We found that the largest proportion of young
the organizational culture in order to compete globally.
people—40%—does so to further their education. We
Employees need to be highly flexible and always welcome
established networks and programs to support and
change. People are the most crucial resource, and
maintain contact with employees who leave to study
management must commit to protecting and providing for
abroad and encourage them to return after graduation. We
the true betterment of its employees in order to inspire
also learned that the younger generation has a strong
loyalty, integrity, and sustainable development.
volunteer spirit, and with this in mind, we introduced many
A number of companies laid off staff during the Asian
CSR programs, even during orientation training, that bring
currency crisis of 1997. The Siam Cement Group (SCG), for
real benefits to communities and the environment. Taking
example, incurred large losses and reduced its equity
part in activities that give back to society gives employees
holdings. During this challenging time, however, we did not
a sense of pride, both personal and with regard to their
benefit from the employment of women in more challenging
sustainable organization. I agree with Nomura’s vision to be
roles. Nomura could brand itself as “the leading workplace
Asia’s global investment bank, but I would also like for
for women.”
Nomura to include innovation and sustainability as
elements of its overall vision. As such, Nomura’s branding
Nomura aims to contribute to the development of
Asian capital markets. How do you view Nomura’s
potential to support growth in Asia?
must reflect its personality from the perspectives of
innovation and sustainability. I believe that Nomura can
consistently provide creative and novel product offerings
I think Nomura has tremendous potential to support growth
that please customers while being a good global corporate
in Asia and establish a dominant position as Asia’s global
citizen. In addition, I recommend developing the right CSR
investment bank. Currently, even within Asia, regions vary in
programs to engage Nomura’s employees and local
terms of the degree of development and customer needs,
communities, which in turn will strengthen Nomura’s brand.
and Nomura can leverage its diverse experience in
In order to survive future competition, a company must
developed markets such as Japan, North America, and
draw on its internal strengths, which derive from its
Europe to capitalize on trends in various Asian markets.
corporate culture. After spending two years on the Nomura
We have discussed at length our strategies for
Advisory Board, it is evident that Nomura has a well-rounded
investment in China. Certainly, investment in China is a
perspective, a dynamic culture, and a management team
must that cannot be avoided. Finding a partner is extremely
with a forward-looking approach, exemplified by a diverse
important, however, and finding a good partner will require
board comprising 50% foreign and outside directors.
a lot of effort. The internationalization strategy for the
Nomura is quite advanced compared to its Japanese
Chinese yuan also presents Nomura with business
competitors, but there is still room for improvement. I believe
opportunities. Hong Kong is already a financial hub.
that with corporate values that reflect innovation and
lay off any personnel, and instead continued to hire 200
company. Since people are Nomura’s most important asset,
Singapore is becoming very strong and indeed may have
sustainability, Nomura can become not only Asia’s global
young recruits each year. We believed that to contribute to
Nomura should implement such CSR programs for its
society, young people needed employment in order to avert
employees, especially for the younger generation.
already surpassed Hong Kong. Also, Taiwan is striving to
investment bank but also a global leader by its 100th
become a financial hub, and I see a lot of potential in
anniversary.
structural problems with the “population pyramid.”
Finally, I believe in the power and value of diversity. For
investing more in Taiwan.
A company must also provide suitable engagement
example, SCG has more than 17,000 employees working
programs for its employees, including training and
outside Thailand, with diversity in religion, culture, and
development, a good succession plan process, regular
gender, who now represent about 32% of our total
review of employee talent, employee surveys, and CSR
workforce and collaborate together as one. I believe that
activities, among other things. Leaders at every level must
Nomura can gain immensely from such diversity in the
be good role models in terms of fairness, ethics, and
workforce. I have been to Japan more than 170 times and
commitment to sustainable development, demonstrating
have noticed that Japanese women in the workforce are
their abilities through their roles and responsibilities.
very intelligent, but they remain underutilized. With Japan’s
Furthermore, leaders must also provide their subordinates
aging population and shrinking workforce, Nomura has an
with challenging jobs and thoughtful mentoring so that they
opportunity to leverage the country’s talented female
can develop and achieve their fullest potential. For instance,
workforce by developing policies that promote career
every year I committed several hundred hours to teaching a
advancement for women. I see great potential, especially
number of classes to employees of all levels—from new hires
for companies in the financial sector, like Nomura, to
I think the key for Nomura to achieve its goals in Asia will
lie in the research capabilities of the aforementioned
How should the Nomura management team make
the best use of the Advisory Board?
countries and may thus require selective synergistic
After two years of working together with Nomura’s
collaboration with local banks. Finding a partner for such
management, I feel that we are much more open toward
collaboration, however, remains a crucial part of the process.
each other and I find that our discussions are very smooth
To meet the aforementioned expectations as we
head toward our 100th anniversary in 2025 and
beyond, what do you think will be important in
order for Nomura to increase its corporate value
and grow sustainably?
and fluid in every session. It is important as well to have free
and open discussion, as I believe this makes the best use of
the Advisory Board. Occasionally, the Advisory Board may
base its comments on previous experiences that may no
longer be applicable in certain situations. Thus, I urge the
management team to have frank, open discussion with the
Nomura is approaching its 100th anniversary, and I would
Advisory Board without worrying about differences of
like to see the Company branded as an innovative and
opinion or anyone losing face over a particular matter.
56
Nomura Report 2017
Nomura Report 2017
57
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Message from the Chief of Staff
Shoichi Nagamatsu
Chief of Staff
Enhancing Nomura’s Value
I believe it is vital for Nomura Group to create a higher level
requires us to build upon the strengths of individuals. It is
of value if we are to achieve our long-term management
important that each individual determine what they personally
vision targeting FY2019/20, and continue to grow both
should do to contribute to organization-wide optimization. For
towards and beyond our 100th anniversary in 2025. We are
this reason, every employee must see themself as a key player
thus undertaking a significant shift in management with the
in pursuing the targets set forth by senior management,
caring deeply about their work and become accustomed to
Today, Nomura Holdings’ Nomination Committee,
losing. Conversely, a commitment to victory requires
Compensation Committee and the Board of Directors are
maximum effort. This is rightfully based on the premise that
comprised of a majority of Outside Directors. Accordingly,
individuals are compliant with laws and having a clear
authority regarding senior management personnel matters
notion of right and wrong based on their ethics. It is vital
rests with the Board of Directors, which represents a truly
that everyone feel a strong passion to contribute to the
advanced system among Japanese companies. In 2015, a
team effort of raising the brand value of Nomura Group so
Outside Directors Meeting was established, and at these
that we can be victorious in all areas, including staying at
meetings, attended solely by Outside Directors, deliberations
the top of the league tables.
on specific strategies, medium-term management plans, and
Moreover, we must never stray from our established
other matters are held, with the Group CEO and Group COO
principles and mindset regarding customers and how to
invited to join meetings as necessary. This is one example of
work with them. There are, however, areas in which we
how our Board of Directors does more than just carry out
should actively pursue change, such as in our processes
management oversight. In 2016, we began looking for ways
for doing business with customers. The ideal approach,
to reduce disparities in the information held by different
the one that is best for customers, changes with the
Directors. One measure to this end was having Outside
times. A customer-oriented business is one that stays in
Directors who are not members of the Audit Committee
tune with the times by transforming all of its systems as
attend meetings between the Audit Committee and Company
necessary to maximize the benefits for customers. I am
officers. In this manner, we are constantly tweaking our
confident that Nomura Group will create even more value
corporate governance system to make it even more effective.
if we all remain highly receptive to changing social issues
Moreover, the Chairman of the Audit Committee adds his
and client needs, always seeking solutions.
own prominent finance and accounting experience and
Corporate governance supporting our
missions
insights to form his views on the global situation and issues
faced in Japan and overseas, and we receive the frank and
advanced opinions of the Chairman. The Chairman has also
adopted other unprecedented approaches to enhancing
Enhancing corporate governance is one of the most
corporate governance, including actively engaging with
important matters when it comes to helping employees
accounting audit firms to ensure that highly competent
fulfill their missions to achieve goals.
individuals are assigned to the Company’s account so they
Nomura committed two scandals in the late 1990s, and
can provide the Company with incredibly viable advice.
these regrettable experiences made us realize that we
Furthermore, Outside Directors inspect overseas sites and
must never again lose the trust of society. Based on this
visit domestic branches to obtain input from frontline
recognition, we established the Advisory Board in 2001 to
employees that can be incorporated into management. This
incorporate input from people outside Nomura Group. This
active involvement by Outside Directors is another distinctive
move represented a large step forward in the enhancement
characteristic of Nomura’s corporate governance.
aim of realizing our vision for the future.
recognizing and faithfully carrying out their mission toward
of our corporate governance system.
Amassing of individual strengths to achieve
sustainable growth
accomplishing these targets. It is also critical that supervisors
provide appropriate guidance to employees in their reporting
line, helping them to identify their particular objectives.
Everyone should be constantly asking themselves what they
Later, in 2003, we transitioned to the Company with
Increasing Nomura’s Value
Committees, etc., system described in the Companies Act of
Japan (currently the Company with Three Board Committees)
Having a diverse group of personnel is important in order for
in order to further clarify the separation of the management
Nomura to provide financial solutions to customers all over
The Financial Services Agency of Japan published the
want Nomura Group to become and what they can do to raise
oversight function from the business execution function and
the world. Currently, more than 70 nationalities are
“Principles for Customer-Oriented Business Conduct” in
the Group’s value. Without such individual reflection,
March 2017. This document contains principles for seven
sustainable growth will remain beyond our reach. Bringing
increase transparency. This change made it possible for
represented within Nomura Group, and diversity has become
Outside Directors to engage in discussions from the
deeply rooted in the organization. Looking ahead, we should
areas, including pursuing the best interests of customers
together the thoughts of each and every employee is a source
standpoint of management oversight. We have achieved a
step up efforts to increase diversity at the management level
and appropriately managing conflicts of interest. These
of strength for Nomura Group.
principles are congruent with Nomura Group’s approach,
as striving to be an organization that customers choose has
always been our top priority based on the principle of putting
Pursuing change while maintaining
important values
the customer first–one of the ten principles set out by our
more stable corporate governance system which
by promoting female employees to management positions
incorporates active discussions and the various perspectives
and creating frameworks for utilizing, in management, the
of both domestic and overseas Outside Directors. The
skills and experience of employees that have worked
Advisory Board, which had comprised business managers of
overseas. Finally, to raise Nomura’s value going forward, we
Japanese companies, was transformed in 2015, when we
will communicate even more closely with people from both
founder.
As we work to make Nomura Group more competitive, it is
appointed four renowned experts from Asia and reinforced
inside and outside Nomura Group and in Japan and overseas,
Increasing Nomura Group’s value based on our philosophy
crucial that we maintain our desire to never lose. If people
our governance system toward our aim to establish
and actively implement changes where they are needed.
of “placing our clients at the heart of everything we do”
do not hold onto a strong aversion to losing, they will stop
ourselves as “Asia’s global investment bank.”
58
Nomura Report 2017
Nomura Report 2017
59
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Directors of Nomura Holdings
(As of July 1, 2017)
Nomura Holdings has adopted a company with three
board committees structure, under which the
management oversight and business execution
functions are separate from one another. This system
allows the Board of Directors to delegate considerable
authority for the execution of business to Executive
Officers, thereby enabling expedited decision-making.
Directors are experts in fields such as finance,
corporate management and law, and draw upon their
extensive experience and insights to oversee
management from many different perspectives. Also,
the establishment of three (Nomination, Audit, and
Compensation) committees, each comprised of a
majority of Outside Directors, allows for enhanced
management supervision and increased transparency.
* In 2001, the Company changed its name to Nomura Holdings, Inc.
Mari Sono
Outside Director, Member of the Audit Committee
Oct. 1976 Joined NISSHIN Audit Corporation
(currently Ernst & Young ShinNihon LLC)
Mar. 1979 Registered as Certified Public Accountant
Nov. 1988 Partner of CENTURY Audit Corporation
(currently Ernst & Young ShinNihon LLC)
Nov. 1990 Member of “Certified Public Accountant Examination
System Subcommittee,” Certified Public Accountant
Examination and Investigation Board, Ministry of Finance
Apr. 1992 Member of “Business Accounting Council,” Ministry of Finance
Dec. 1994 Senior Partner of CENTURY Audit Corporation
(currently Ernst & Young ShinNihon LLC)
Oct. 2002 Member of Secretariat of the Information Disclosure,
Cabinet Office (currently Secretariat of the
Information Disclosure and Personal Information
Protection Review Board, Cabinet Office)
Apr. 2005 External Comprehensive Auditor, Tokyo
Jul. 2008 Senior Partner of Ernst & Young ShinNihon LLC
Aug. 2012 Retired Ernst & Young ShinNihon LLC
Dec. 2013 Commissioner of the Securities and Exchange Surveillance Commission
Jun. 2017 Outside Director of the Company (Current)
Ms. Sono has many years of experience as a Certified Public Accountant and has served as a member of the Securities and Exchange Surveillance
Commission. Her experience and insight are highly regarded both inside and outside the Company. She has been applying her extensive experience and
high degree of expertise and independence to contribute as an Outside Director to determining important managerial matters and overseeing the
business execution of the Company.
Nobuyuki Koga
Chairman of the Board of Directors, Chairman of the Nomination Committee, Chairman of the Compensation Committee
Hisato Miyashita
Director, Member of the Audit Committee (Full-time member)
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)
Apr. 2017 Director and Chairman of the Company (concurrently
Director 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 practices in the securities industry and, as
Chairman, contributes to the smooth operation of the Board of Directors.
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
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
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
Jan. 2009 Trustee of the IASCF Foundation (currently, IFRS Foundation)
Jul. 2009 Special Advisor of Sumitomo Corporation
Jun. 2011 Director of the Financial Accounting Standards
Foundation; 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 (Concurrently Director of
Nomura Securities Co., Ltd.) (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 making him the equivalent of 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,
Aug. 2000 President, National Police Academy
Apr. 2001 Director of Cabinet Intelligence, Cabinet Secretariat,
Director-General
Aug. 1995 Director General of the International Affairs
Department, National Police Agency
Oct. 1996 President of ICPO-INTERPOL
Government of Japan
Jan. 2007 Registered as Attorney-at-Law (Dai-ichi Tokyo Bar 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 evalu-
ated highly both within and outside of the Company. Applying his high level of expertise and extensive experience as a currently active attorney, Mr.
Kanemoto contributes to the Company as an Outside Director.
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
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)
(currently Citigroup Global Markets Japan Inc.)
Apr. 2015 Senior Managing Director of the Company, Deputy
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
Chief of Staff and Group Compliance Head (concurently
Representative Executive Officer and Senior Corporate
Managing Director of Nomura Securities Co., Ltd.,
Internal Control Supervisory Manager)
Apr. 2016 Advisor of the Company
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.
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
Sep. 2002 Chairman of the Land Transport Authority of Singapore
Sep. 2004
Independent Director of Olam International Limited
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
Sep. 2016 Non-Executive Chairman of Fullerton Healthcare
Corporation Limited (Current)
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 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.
Directors who are concurrently serving as Executive Officers
Koji Nagai
Director, Representative Executive Officer, President and 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
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
Securities Co., Ltd.
Apr. 2009 Executive Managing Director and Executive Vice
CEO of the Company (concurrently Director and
President of Nomura Securities Co., Ltd.)
President of Nomura Securities Co., Ltd.
Apr. 2017 Director, Representative Executive Officer, President and Group
Apr. 2011 Co-COO and Deputy President of Nomura Securities Co., Ltd.
Apr. 2012 Senior Managing Director of the Company (concurrently
CEO of the Company (concurrently Director and Chairman 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, serve as Director, the Board of Directors is able to easily understand the
business execution status and general status of the Company, and he contributes to the effectiveness of the oversight function of the Board.
Tetsu Ozaki
Director, Representative Executive Officer, Deputy President and 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.)
Apr. 2016 Representative Executive Officer and Group COO of the
Company (concurrently Director and Deputy President of
Nomura Securities Co., Ltd.)
Jun. 2016 Director, Representative Executive Officer and Group COO of
the Company (concurrently Director and Deputy President of
Nomura Securities Co., Ltd.)
Apr. 2017 Director, Representative Executive Officer, Deputy President
and Group COO of the Company (concurrently Director 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 is able to easily understand the business execution status and general status of the Company, and
he contributes to more effective oversight by the Board.
60
Nomura Report 2017
Nomura Report 2017
61
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Outside Directors of major subsidiaries in Japan
(Nomura Securities Co., Ltd. / Nomura Asset Management Co., Ltd.)
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 Prosecutor’s 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 Prosecutor’s Office
Jul. 2008 Prosecutor General
Sep. 2010 Registered as Attorney-at-Law (Dai-ichi Tokyo Bar 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 Vice-Minister of Justice at the Ministry of Justice and Prosecutor General, and his
achievements and insights are highly regarded both within and outside the Company. Applying his advanced 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 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 are highly regarded both within and outside the Company. Applying his extensive management experience, Mr. Ozaki
contributes to Nomura Securities as an Outside Director.
Executive Officers and Senior Managing Directors of Nomura Holdings
(As of July 1, 2017)
Executive Officers
Representative Executive Officer, President and Group CEO
Representative Executive Officer, Deputy President and Group COO
Koji Nagai
Tetsu Ozaki
Representative Executive Officer, Deputy President and Chief of Staff
Shoichi Nagamatsu
Executive Managing Director
Executive Managing Director, Head of Asset Management
Executive Managing Director, Chief Financial Officer
Toshio Morita
Kunio Watanabe
Takumi Kitamura
Executive Managing Director, Head of Group Entity Structure and Co-CRO
Yuji Nakata
Senior Managing Directors
Retail
Wholesale
Head of Retail
Head of Wholesale and Global Markets (based in London)
Co-Head of Wholesale and Head of Investment Banking
Eiichiro Yamaguchi
Steven Ashley
Minoru Shinohara
Co-Head of Global Markets and Head of Global Markets, EMEA (based in Tokyo)
Yutaka Nakajima
Nomura Asset Management Co., Ltd.
Global Markets, Global Head of Equities
Co-Head of Global Markets, EMEA (based in London)
Head of Global Markets, Asia ex-Japan (based in Singapore)
Rikio Nagahama
Outside Director, Board Chairperson of NPO Triton Arts Network
Corporate
Chief Risk Officer (CRO) (based in London)
Apr. 1967 Joined Dai-ichi Life Insurance Company
Apr. 2003 Representative Director and Executive Vice President, Dai-ichi Life
Jan. 2008 Representative Director and President, DIAM Co., Ltd.
(currently, Asset Management One Co., Ltd.)
Insurance Company
Jun. 2004 Representative Director and President, DLIBJ Asset Management
Co., Ltd.
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., Ltd. (Current)
Mr. Nagahama has held a number of significant positions, including Representative Director and President of DIAM Co., Ltd., and his achievements
and insights are highly regarded both within and outside the Company. Applying his extensive experience managing asset management companies,
Mr. Nagahama contributes to Nomura Asset Management Co., Ltd. as an Outside Director.
Akiko Kimura
Outside Director, Of-Counsel, Attorney-at-Law, Anderson Môri & Tomotsune
Apr. 1973 Registered as Attorney-at-Law (Dai-ichi Tokyo Bar Association)
and joined Nishimura Komatsu & Tomotsune (currently Anderson
Môri & Tomotsune)
Jun. 2012 Outside Corporate Auditor of Fuji Electric Co., Ltd. (Current)
Apr. 2013 Member of the Certified Public Accountants and Auditing
Oversight Board (Current)
Jan. 1977 Partner, Nishimura Komatsu & Tomotsune
Jan. 2011 Of-Counsel, Anderson Môri & Tomotsune (Current)
Jun. 2014 Outside Corporate Auditor, Daiichi Sankyo Co, Ltd. (Current)
Jun. 2015 Outside Director, Nomura Asset Management Co., Ltd. (Current)
Ms. Kimura has held a number of significant positions, including a long career as an attorney at Anderson Môri & Tomotsune working in the field of
finance and other areas, and her achievements and insights are highly regarded both within and outside the Company. Applying her high level of
expertise and extensive experience in law, Ms. Kimura contributes to Nomura Asset Management Co., Ltd. as an Outside Director.
Norikazu Akedo
Hideo Kitano
Rig Karkhanis
Lewis O’Donald
Kaoru Numata
Paul Spanswick
Tomoyuki Teraguchi
Yasushi Takayama
Satoshi Arai
Yo Akatsuka
Chief Information Officer (CIO)
Deputy Chief of Staff and Group Chief Administrative Officer (CAO)
Head of Group Compliance and Operations
Chief Legal Officer (CLO)
Deputy Chief of Staff and Group Strategy
Innovations
Group Corporate Communications, Corporate Citizenship and Tokyo 2020 Olympic
and Paralympic
Hajime Ikeda
Banking
Americas
Global Head of Human Resources
Human Resources
Head of General Services
Banking
Executive Chairman, Americas (based in New York)
Head of Americas (based in New York)
Co-Head of Americas (based in New York)
EMEA
Executive Chairman, EMEA (based in London)
Head of EMEA (based in London)
Asia ex-Japan
Executive Chairman, Asia ex-Japan; Head of China Committee; Asia Strategy
(based in Hong Kong/Singapore)
Head of Asia ex-Japan (based in Singapore/Hong Kong)
Internal Audit
Group Internal Audit
Kenji Kimura
Yuji Hibino
Rikiya Nonomura
Chie Toriumi
David Findlay
Kentaro Okuda
Tsutomu Takemura
Yasuo Kashiwagi
Jonathan Lewis
Toshiyasu Iiyama
Vikas Sharma
Shoji Ogawa
62
Nomura Report 2017
Nomura Report 2017
63
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Risk Management
http://www.nomuraholdings.com/company/risk/index.html
Risk
Management
Fundamental Approach
The three lines of defense in risk management
Nomura Group has established processes to accurately identify risks arising from all types of operations and trading, and is
working to bolster risk evaluation and the risk management framework.
Nomura Group has adopted the following layered structure on the grounds that all employees are accountable for
proactively managing risk.
Risk management policy
Our business activities are exposed to various risks including market
risk, credit risk, operational risk, and liquidity risk. Properly managing
these risks is one of management’s top priorities.
In order to maintain capital adequacy and achieve its business
plans under any type of economic environment, Nomura Group has
defined the types and maximum levels of risk that the firm is willing
to take, as documented in the Risk Appetite Statement.
Risk culture
Fostering a sound risk culture is essential for Nomura Group to
maintain its social credibility and sustain its business activities.
At Nomura Group, all employees, irrespective of their function or
geographic location, must understand their specific responsibilities
related to risk management, and actively work to manage risks. We
aim to embed this risk culture throughout the firm through various
training courses, a as well as company rules and regulations.
First line of defense
Departments engaged
in trading and sales
Establish and
promote the risk
management
framework; monitor
and challenge
the first line of
defense
Second line of
defense
Departments
engaged in risk
management
Third line of defense
Review from
an independent
position
Internal Audit
First line of
defense
Second line of
defense
Departments engaged in
trading and sales
Departments engaged in risk
management
Third line of
defense
Internal Audit
As the first line of defense,
Departments engaged in risk
Internal Audit reviews and
departments engaged in sales
management establish frameworks
provides consulting from an
and trading manage the risks
to manage each type of risk,
independent, objective position,
associated with their own business
and support risk management
with the aim of adding value
activities.
measures taken by sales and
by improving the organization’s
For example, trading
trading departments, which are the
operations and frameworks,
departments do business within
First Line of Defense.
including risk management.
predetermined risk limits, and
Risk management departments
proactively identify and address
independently monitor risks,
any issues they find.
and keep trading and sales
departments in check as needed.
64
64
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
65
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Risk Management
Risk management framework
Stress testing
Nomura Group has established a risk management
committees comprising members of senior
Nomura Group conducts stress testing to address risks
Stress testing uses stress scenarios to assess the
framework based on risk profiles, as shown in the
management. The Group Integrated Risk
that may spread globally, and to identify risks that are
impact on our business and financial soundness should
table below. We have also adopted a multi-faceted
Management Committee (GIRMC) and Global Risk
difficult to recognize with statistical methods alone, as
those adverse events occur. These scenarios may
risk evaluation process to avoid risks that may be
Management Committee (GRMC), for example,
well as to prepare for unprecedented risk events.
include severe deterioration in the economic
damaging to our reputation.
deliberate and decide on risk management issues
environment, geopolitical conflicts, and natural disasters.
Risk management oversight is carried out by the
material to the firm.
Related Divisions
Retail
Asset Management
Wholesale
Examples of stress scenarios
Key Risk Types
Description
Market risk
Risk of losses arising from fluctuations in values of financial assets
and debt (including off balance sheet items) due to fluctuations in
market risk factors (including interest rates, foreign exchange rates,
and securities prices)
Credit risk
Risk of losses arising from the inability of an obligor or counterparty
to fulfil their obligations under the terms of a previously agreed
contract as the result of default, bankruptcy, or legal proceedings
Operational risk
Risk of losses arising from inadequate or failed internal processes,
people, and systems or from external events
Liquidity risk
Risk of losses arising from a potential lack of access to funds or
higher cost of funding than normal levels due to a deterioration in
Nomura’s creditworthiness or deterioration in market conditions
Adapting to the globalization of risk
We have observed the impact of the financial crisis in
Nomura Group has Risk Management Departments
Europe and the US on the world economy. We have
in five regions and seven countries. In addition to
also witnessed economic developments in Asia
managing risks particular to their individual region,
influencing global energy prices. In terms of risk
these Risk Management Departments work in close
management, we must increasingly address risk on a
cooperation across the globe to ascertain and lessen
global level.
the impact that risks may have on other regions.
Assessment of capital adequacy under the
scenario that a serious economic situation
that occurred in the past happens again
(Example: Financial crisis)
Assessment of the impact on Nomura’s
earnings of extreme economic conditions that
could occur in the future (Example: Economic
collapse in a particular country or region)
Assessment of the impact on Nomura’s portfolio
of political events in Japan or overseas
(Example: UK referendum on leaving EU)
Assessment of the impact on Nomura’s
earnings of a large-scale natural disaster
(Example: earthquake directly under the Tokyo
metropolitan area)
66
Nomura Report 2017
Nomura Report 2017
67
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Risk Management
Cyber security measures
Missions of business continuity
Nomura Group has for some time been undertaking
Organizational Structure
The impacts of earthquakes, typhoons, and other
and applications will be protected in a backup
various security measures to protect systems against
Nomura Group, along with Nomura Securities and
natural disasters as well as the threats of terrorism and
datacenter located in a different location. Additionally,
cyber-attacks. However, in light of the growing cyber
other Group companies, has established an
other malicious acts are increasing in Japan and
we have reinforced our infrastructures, for example,
security threat worldwide, we recognize that our
organizational structure, centered on the Nomura
around the world. In light of this situation, Nomura
such as installing the power generators. Accordingly,
current countermeasures may be insufficient.
Group Computer Security Incident Response Team
Group has established a global business continuity
these infrastructures can be used in the event of a
Faced with this growing cyber security threat,
(CSIRT), to work together to deal with events
management structure and is continuously enhancing
single building failure or a wide area disaster, such as a
Nomura Group is working continuously to strengthen
stemming from cyber-attacks and to minimize the
its program through implementations of numerous
Tokyo Inland Earthquake, to avoid systemic risks and
its cyber security platform to ensure that clients’
damage they may cause.
measures and awareness programs.
continue or quickly recover high-priority operations
information and assets are secure, and to enable
clients to conduct transactions with peace of mind.
Information-sharing
organizations, etc.
Cooperation
Organizations
specializing in security
Nomura Group CSIRT
Nomura Group
company cyber
security
organizations
(Group company
CSIRTs, etc.)
Nomura Securities
cyber security
organization
(Nomura Securities
CSIRT)
Client information
Client assets
Monitoring/
response
Client transactions
Multi-layered defense system
(inbound perimeter control, intranet security control,
outbound perimeter control)
Growing cyber
security threats
Countermeasures
In terms of system security measures, we have put in
Recognizing the importance of cyber security amid
place a multi-layered defense system, which includes
increasingly sophisticated and cunning cyber-attacks,
multiple detection and defense mechanisms against
we established CSIRTs with the aim of further
unauthorized access and malicious programs such as
improving our response capability. We are promoting
computer viruses. We review these countermeasures as
measures to enhance cyber security centering on the
appropriate to deal with new threats.
way the organization operates, system security
As a human-level response, the Group has
measures, executive and employee training, and
prepared the Nomura Group Information Security
cooperation with external organizations.
Policy and regularly conducts relevant training for all
With respect to the organization, we participate in
executives and employees in order to raise awareness
drills to protect against cyber-attacks, and have outside
among executives and employees.
cyber security experts evaluate the effectiveness of our
Nomura Group has established information
cyber security measures. In addition, when we obtain
collecting and sharing systems relating to cyber
information on dangerous vulnerabilities or detect cyber
attacks and attack methods through information-
that are crucial to the lives of our clients. Similar
Business continuity structure
measures and infrastructure have also been placed at
Nomura Group has established the Crisis Management
our major overseas offices.
Committee, which is comprised of officers responsible
The Office of Crisis Management Committee
for crisis management from Group companies
regularly conducts employee safety confirmation drills,
worldwide, to prepare for major natural and manmade
disaster prevention drills, and business continuity drills
disasters. With this committee in place, we have
in Japan to ensure that we are able to respond
developed a business continuity and crisis
immediately during the crisis situation. For overseas
management structure to cover aforementioned
offices, these activities are carried out by the Business
disasters globally.
Continuity Management Team. Through these efforts,
Should a major office be rendered unable to
we are working to foster greater awareness of crisis
continue its operations due to disasters, we have set
management and strengthen our ability to respond to
up backup offices allowing us to continue our
emergencies. These structures and measures are
operations from these alternate locations. Similarly,
stipulated in Nomura Group Crisis Management
we have built redundancy into our datacenters so
Regulations.
that, in the event of a datacenter outage, critical data
Activities of crisis and business continuity management
1 Strengthening structure for business continuity
• Establishment and reinforcement of backup offices • Establishment of datacenter redundancy
• Identification of critical resources • Enhancement of emergency communication equipment
2 Drills and training
• Emergency Command Center activation drills • Employee safety confirmation drills • Drills based on business continuity plan
• Initial response drills simulating Tokyo Inland Earthquake • Nankai Trough earthquake response training at branch offices
3 Strengthening collaboration between Group companies in Japan and overseas
• Enhancing information sharing between domestic Group companies
• Enhancing information sharing among overseas Group companies
4 Enhancing business continuity plan
• Review and revision of business continuity plan
• Review and revision of business continuity plan for datacenter outage scenario
• Review and revision of business continuity plan for Tokyo Inland Earthquake scenario
5 Others
security events, the CSIRT leads the response effort to
sharing organizations such as Financial ISAC Japan
• Stockpiling of water, food, and other emergency supplies at headquarters, branch offices, and backup offices
analyze the cause, minimize damage, and quickly
and Nippon CSIRT Association.
restore systems.
68
Nomura Report 2017
Risk Management
http://www.nomuraholdings.com/company/risk/index.html
Nomura Report 2017
69
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Compliance
http://www.nomuraholdings.com/company/compliance/index.html
Compliance
Fundamental Approach
Compliance is a top management priority for Nomura Group, and the Code of Ethics of Nomura Group defines our funda-
mental policy on compliance. The management and employees of the Group pledge to abide by the rules stated in this code
once each year. Also, we have established Nomura Founding Principles and Corporate Ethics Day as a day for management
and employees annually to reaffirm our corporate culture and corporate ethics, underpinned by Our Founder’s Principles.
occurrence of activities that may be construed as
Compliance Hotline (informants have the option of
illegal by establishing effective control measures. In
remaining anonymous). In FY2017, there were 42 calls
the event that such issues arise, they are reported in
received via the Compliance Hotline, and in all cases the
full to management-level officers without delay, and
status of related matters was confirmed and appropriate
organizations and systems are structured to respond
measures were taken.
appropriately.
Nomura Securities conducts comprehensive
Nomura employees who have become aware of
compliance training for all Executive Officers and
potential legal or regulatory violations are able to report
employees on topics such as the prevention of money
their concerns to persons designated by Nomura
laundering and insider trading, firewall regulations,
Holdings, including Outside Directors, through the
and guidelines for managing customer information.
Compliance framework
Offering high-quality financial services
We have appointed a Group Compliance Head to oversee
compliance for the Group as a whole along with a Group Compliance
Department that provides support. In addition, Compliance Officers
have been assigned to each Group company to strengthen our
internal controls in response to global business development, and to
develop and maintain the respective compliance structures of each
Group company, including overseas offices.
In addition to Group-wide initiatives, Nomura Securities has
established a Compliance Program as a detailed action plan, and
put into place a compliance framework based on this program.
Board of Directors
Audit Committee
Nomura Holdings
Executive Management Board
Group Compliance Head
Direction
Report
Group Compliance Department
Direction
Report
Compliance Officers
Direction
Report
Departments
Nomura Securities seeks to enhance the quality of financial
compliance, etc., and developing systems to ensure
products and services offered to customers through the
compliance and the appropriateness of operations
following initiatives under the Guidelines for Supervision of
• Thoroughly screening account openings and conducting
Financial Instruments Business Operators, etc.
proper examinations when underwriting securities. For
Nomura Securities’ Primary Initiative
• Appointing officers to oversee internal controls,
further information, please refer to our website.
Nomura Securities' Primary Initiatives
http://www.nomuraholdings.com/company/compliance/
Ensuring fair financial business practices
• Prohibition of transactions with anti-social forces
sector groups and disseminates the guidelines
• Prevention of bribery
• Management of conflicts of interest and
prevention of insider trading
throughout the Company and works to ensure fair
business practices to prevent bribery. We manage
conflicts of interest and insider information on a global
Nomura Group works to prohibit transactions with
basis by concentrating the information in the Group
anti-social forces and to prevent money laundering.
Compliance Department.
Nomura Group has established guidelines related to
gifts and entertainment of public officials and private-
Fair Financial Business Practices
http://www.nomuraholdings.com/company/compliance/
• Appropriate segregation of customer assets
• Effective protection of clients’ personal information
and other information assets of the Group
Nomura Group Information Security Policy is the basic
document governing the effective protection of clients’
personal information and other information assets.
Under applicable laws and regulations, including the
Customer-related personal information is handled under
Financial Instruments and Exchange Act and the Personal
stringent standards set out in Nomura Group Privacy
Information Protection Act, Nomura Group works to
Policy and other information security related rules, and in
properly protect customers’ assets and information.
full compliance with personal information-related laws
In accord with applicable laws and regulations,
and regulations. For further information, please refer to
including the Financial Instruments and Exchange Act,
our website.
Nomura Securities properly segregates the assets of its
customers from the assets of Nomura Securities itself.
Privacy Policy
http://www.nomuraholdings.com/policy/privacy.html
Nomura Report 2017
71
Nomura Group
companies
Customer protection and information security
Legal compliance measures
• Maintenance of compliance framework and enhancement
of management systems
• Compliance Hotline
• Carrying out compliance training
In all Group companies and departments, Nomura Group complies
with applicable laws and regulations and endeavors to prevent the
70
70 Nomura Report 2017
Nomura Report 2017
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Our People
http://www.nomuraholdings.com/csr/employee/index.html
Investing in Our
Employees Human Resources Strategy
Fundamental Approach
Individuals from over 70 nationalities are currently employed in Nomura Group. This diverse group of people represents our
greatest asset. Nomura Group provides equal opportunities and, under the Code of Ethics of Nomura Group, forbids discrimination
based on nationality, ethnic origin, race, gender, age, religion, beliefs, social standing, gender preference, gender identity,
disability or any other attribution, so that each and every employee can be active and successful in utilizing her or his
capabilities and personal strengths.
A Company in which diverse people can
play a full role
Since its establishment, Nomura has prioritized the development of human
resources, emphasis on teamwork, staying one step ahead, and global
ambition. Since the time of our founder, Tokushichi Nomura, we have
continued our efforts to secure and nurture human resources, recruiting
personnel who are adept in foreign languages and actively employing new
graduates of colleges and vocational schools to promote the modernization of
the organization. Upon taking on employees from Lehman Brothers in 2008,
we adopted a globally integrated approach to human resource management.
In April 2013, in order to further promote personnel exchanges between
divisions, we introduced a system of job classifications based on core work
responsibilities, consisting of General Career Type A employees, Type B, and
Type C. General Career Type A employees and Type B differ only in that the
latter are not subject to relocation. The aim with both is for employees to
develop careers as generalists based on a broad range of experience. General
Career Type C employees are specialists who pursue advanced expertise as
required in their particular business area, and work under a merit-based
system. To the extent possible, we have standardized recruitment and
training, particularly for younger employees. We look to develop their core
skills and judge their individual aptitudes from an organization-wide
perspective, and create a wide range of opportunities for them to develop
their careers through transfers and other means, which allows the organization
to better ensure that we have the right people in the right positions.
Overview of employment categories (Nomura Securities)
General
Career
Type A and Type B
Pursue career development through broad experience without prerequisite of specific
expertise. Type B is not subject to transfer with relocation
Type C
Specialists located in specified regions required to demonstrate a high level of expertise
in their business areas. They are evaluated in a “pay for performance” environment.
Specified
Career
Financial advisors,
Specialist
employees
and others
Work on specific area of business/operation
Not subject to transfers as a general rule
Financial advisors are sales professionals attached to specific regions
Global human resources framework
Nomura Group employs a pool of professional
Global human resources framework
personnel around the world who are capable of
providing financial services that meet the diverse
needs of clients, and whose career paths within the
Group and values are unique. We strive to manage our
personnel in a flexible and suitable manner so that
each and every one of our employees can thrive as
they contribute their skills to the workplace.
In addition to providing well-developed education
and training programs to support our employees’
self-led skill-building endeavors, we also evaluate the
achievements and skills of each employee and deploy
our personnel with an eye on the future career path of
each individual.
In this manner, Nomura Group is able to maximize
the skills of each employee and further enhance client
services through personnel management that
emphasizes diversity.
Recruitment and hiring
Talent
acquisition
Improve Work
environment
Assessment
&
development
Organization
effectiveness
Recognizing that people are our greatest asset, since
people are placed in positions they are best suited for
our founding we have placed particular emphasis on
and that each employee can display their capabilities
recruitment. In our constant effort to secure the most
to the fullest. An example of this is our system under
talented people, we continue to follow a policy of
which employees can transfer from General Career
recruiting people regardless of nationality, gender, and
Type A to Type B employees, Type A employees can
other attributes. In FY2015/16 we introduced a “career
switch to Type C employees, and Type C employees
support system” for new graduate hires and we have
can apply for other positions using an internal job
broadened contact points with students by expanding
posting program.
our internship program and other measures. Since
2008, we have also been actively recruiting new
graduates overseas.
In recent years, we have also been actively hiring
mid-career professionals capable of contributing
immediately, and about 1,000 people each year have
been joining Nomura in Japan through this route. In
addition, we have been rehiring employees who
previously left Nomura, with the expectation they will
hit the ground running. We have also adopted a
Number of new hires
Mid-career hires
31%
Financial
advisors
1%
General Career
Type C employees
(new graduates)
5 %
General Career Type
A employees
(new graduates)
38%
General Career Type
B employees
(new graduates)
25%
personnel management approach that ensures that
(Japan: Nomura Holdings, Nomura Securities FY2016/17)
72
72
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
73
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Investing in Our Employees
Employee development
Creating work environments that allow diverse personnel to thrive
In developing and growing our business globally, we believe
programs include group training programs based on years of
Promoting Work Style Reform and Health &
events related to diversity in the workplace. These
that improving our personnel system is important in order to
service and job position, elective group training programs
Productivity Management
networks also provide opportunities for interaction
ensure that personnel with diverse career backgrounds and
tailored to staff in the Wholesale and Corporate divisions,
In July 2016, Nomura Group adopted the NOMURA
both internally and externally.
values can demonstrate their talents. Accordingly, we
and on-the-job training. To support self-driven skills
provide diverse education and training programs to help
development, we have also established a self-study support
employees at all levels develop their careers.
system that includes a wide range of external training and
Health & Productivity Declaration Statement as part of
the Group’s efforts led by the Group COO, acting as
Chief Health Officer, to maintain and improve the health
* “Women in Nomura (WIN)” which focuses on women’s career advancement
“Life & Family Network” (L&F)”, which is concerned with work-life management
“LGBTA”, which promotes understanding of diverse value systems and
multicultural values
In Nomura Securities, each division appoints instructors to
correspondence courses helpful in enhancing business and
of employees.
Supporting women’s careers
serve for one year to guide and train new hires and help them
management skills, including language courses.
In addition, Nomura has launched the “Nomura
In May 2015, Nomura Securities set a quantitative target
develop into talented and independent-minded employees. In
Furthermore, in order to develop personnel capable
Work Style Innovation” initiative, which comprises
of 550 female managers by 2020. In March 2016, an
the Retail Division, a (management-level) employee is appointed
of playing an active role globally, we have established
“Work Style Reform” and “Health & Productivity
action plan was announced to help women thrive in the
as a mentor to work with the instructor in nurturing sales staff.
study-abroad programs and overseas training programs
Management.” Under this policy, we have
company. The action plan outlines initiatives to achieve
In order to make personnel development more visible, Nomura
where employees themselves determine where they go
introduced a work-at-home system, established
quantitative targets, including support for female
has established a competency framework, which sets out the
and what topics they study.
behavioral requirements and skills needed, and announces
Amount invested in employees
them to individual employees. In the case of the Retail
Education and training
expenses
In-house training
(FY2016/17)
Division, this covers competency conditions and behavioral
requirements, while in the Wholesale Division and the
Corporate Division the aim is to raise performance levels. At
the same time, discussions are held between employees
2,094
Japan
and their supervisors with the aim of identifying areas
needing development. With regard to Type C employees,
who are highly skilled in a specific area, we have put in place
a system that allows employees hired in Japan and those
hired overseas to take courses with identical content.
In addition to training programs for new hires, our core
Proper evaluation and compensation
EMEA
Americas
AEJ
161
299
213
2,767million yen
(FY2016/17)
2,033
(FY2012/13)
million yen
Cumulative total(cid:1)of participants:
195,819 employees
Cumulative total of hours:
562,289 hours
To properly evaluate performance and further the
employees, and persons under their supervision.
development of personnel, the Group adopts an integrated
Every employee is provided, in principle once a
personnel evaluation process and all employees in principle
year, with an opportunity to be interviewed by the
participate in this process. Employees set their goals at the
Human Resources Department and directly
beginning of each year, and these goals are aligned with
communicate their thoughts about their career.
the Group’s strategy as well as competency and behavioral
The Group has established its Compensation Policy for
requirements. Employees then meet with their supervisors
Group management and employees. This policy aims to
in the middle and at the end of the year to have frank
promote the sustainable growth of the Group and continue
discussions regarding goal attainment. This approach
increasing its global competitiveness and shareholder value
enables the Group to evaluate its personnel fairly and
over the long term. It also has the objective of contributing
identify development opportunities suited to their
to the value-added the Group can offer its customers and
capabilities and competencies. For personnel chosen from
realizing continued improvement in the Group’s evaluation
among those in managerial-level positions, depending on
among its clients through securing, retaining, motivating,
days off for employees to receive comprehensive
employees’ career-building and support for balancing
medical checkups, and embraced the “Premium
their careers with life events, among other measures to
Friday” campaign.
establish an employment environment in which female
employees can thrive.
Diversity and Inclusion
Initiatives to support women in improving their
Nomura Group believes that by having employees with
careers include a mentoring program for managers, a
diverse backgrounds and values respect one another
sponsorship program in which executive officers support
and work together, the organization is better able to
management candidates, and training programs for
provide high value-added services and satisfy a wide
management candidates, among other efforts.
variety of customer needs.
We have established the Nomura Group Diversity
LGBT
and Inclusion Committee, which is chaired by the
At Nomura Securities, we have implemented measures
Group COO. The committee is made up of division
to support lesbian, gay, bisexual and transgender
representatives who regularly discuss the promotion of
(LGBT) and other sexual-minority employees through
diversity and inclusion. In March 2017, the committee
training for all staff, activities to increase the number of
conducted a diversity and inclusion survey targeting all
support allies, and by introducing a partnership system.
Nomura Securities employees in order to ascertain their
In recognition of these efforts, in October 2016 we were
views on the subject as part of the committee’s efforts
given the highest Gold grade in the Pride Index, Japan’s
to promote diversity and inclusion.
first evaluation of the LGBT-friendliness of work
Nomura has three autonomously run employee
environments run by Work with Pride, a private group.
networks* that provide a range of information and hold
External evaluations
• From Jun. 2007 Kurumin (Nomura Securities)
• From Oct. 2016 Tomonin (Nomura Securities)
• Jun. 2016
• Oct. 2016
• Feb. 2017
ERUBOSHI (Nomura Trust and Banking)
Pride Index, Gold grade (Nomura Securities)
White 500 Health and Productivity Enterprises
(Nomura Holdings)
Nadeshiko Brand (Nomura Holdings)
the business unit the Group also provides 360-degree
and nurturing outstanding employees.
• Mar. 2017
evaluation based on feedback from their supervisors, fellow
Nomura Group’s Basic Compensation Policy
http://www.nomuraholdings.com/csr/employee/capability.html
74
Nomura Report 2017
Certifications on promoting women participation in workplace
http://www.nomuraholdings.com/csr/employee/di.html
Nomura Report 2017
75
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
CSR
http://www.nomuraholdings.com/csr/index.html
Corporate Social
Responsibility
CSR Initiatives
Fundamental Approach
Code of Ethics of Nomura Group
http://www.nomuraholdings.com/company/basic/ethics.html
Nomura Group actively engages in initiatives to address social issues in order to fulfill its social responsibilities as a
corporate citizen. The Group believes that promoting and managing corporate social responsibility (CSR) activities properly is
an important factor in maintaining and increasing its corporate value. The basic policy concerning CSR is set out in the Code
of Ethics of Nomura Group and its Basic Management Policy. Moreover, the Nomura Holdings Corporate Governance
Guidelines formulated in November 2015 state that Nomura shall actively engage in CSR activities, including educational
activities in economics and finance, in addition to contributing to expanding securities markets through daily business.
Our Founder’s Principles
Since its founding, Nomura Group has been committed to contributing to the development of society at all times.
We believe CSR is an essential part of Nomura Group’s commitment to implementing our Founder’s Principles—
principles that have been passed down since Tokushichi Nomura founded the company.
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/
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.”
Founder
Tokushichi Nomura
CSR implementation process
Identification of Material CSR Issues
http://www.nomuraholdings.com/csr/group/index.html
Framework for promoting CSR activities
the committee include formulating policies for CSR
The CSR Committee functions as the management-
initiatives as well as approving and monitoring the
level decision-making entity for promoting Group-wide
progress of these activities. The activities of the
CSR programs. The committee comprises seven
committee are reported to the Board of Directors and
executive officers, including the chairperson
the Executive Management Board accordingly. During
appointed by the Group CEO. The responsibilities of
FY2016/17, the CSR Committee held one meeting.
CSR framework
Board of
Directors
Executive
Management Board
Report
Approve
CSR
Committee
Japan
EMEA
Americas
Report
Approve
Secretariat:
Corporate
Citizenship
Department
Cooperation
AEJ
Nomura Group, our fundamental approach to CSR, and
other matters. Based on such analysis, we identified the
issues for the Group. Next, we assessed the “materiality
to stakeholders” of the identified issues based on the
evaluations of prominent SRI (socially responsible
investment) bodies in Japan and overseas. We then
assessed and prioritized the issues with regard to the
“materiality to the Group” based on internal hearings
and looking at the Group’s Basic Management Policy.
We formed a materiality matrix of the issues based on
Identification of material CSR issues and PDCA
these two assessments to identify CSR issues of high
In 2014, Nomura Group reassessed its material CSR
importance to both stakeholders and the Group.
issues through reflecting the opinions of third parties,
In FY2016/17, we also examined the relationship
hearings conducted across internal departments, and
between our material CSR issues and SDGs*. Going
confirmation by the CSR Committee members.
forward, through CSR activities incorporating
In the reassessment process, we first looked at external
stakeholders' perspectives, including SDGs, we will
elements. We analyzed the GRI Guidelines (G4), the
promote initiatives aimed at sustainable development
criteria for information disclosure on sustainability, such
and resolving social issues, as well as work to increase
as those of the Sustainability Accounting Standard
our corporate value over the long term.
Board (SASB), and Japan’s Stewardship Code. Turning
to internal elements, we analyzed the Code of Ethics of
* SDGs: "Sustainable Development Goals" adopted at the United Nations
Sustainable Development Summit in September 2015.
Material CSR issues for the Nomura Group
Corporate governance
Measures to reinforce governance
CSR management
Risk management
Compliance
Enhancing and strengthening risk management systems
Ensuring financial soundness and transparency
Business resilience
Social and environmental risk management
Legal compliance and reporting of violations
Ensuring fair financial business practices
Preventing bribery
Preventing money laundering
Contributing to sound
and sustainable capital
markets
Offering high-quality financial services
Products and services that address 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.48
P.76
P.64
P.66
P.69
P.66
P.71
P.71
P.71
P.71
P.71
P.78
P.71
P.32
P.80
P.80
P.74
P.75
P.75
P.75
76
Nomura Report 2017
Nomura Report 2017
77
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Advancing
Sustainable Finance
Fundamental Approach
Contributing to Sound and Sustainable
Capital Markets
Nomura Group believes that the social mission of the financial services sector is to contribute to economic growth and
sustainable social development by promoting the appropriate flow of funds in the capital markets through providing
products and services that meet customers’ needs. In addition, through dialogue with stakeholders, we offer financial
services that help address various social and environmental issues around the world.
Working to address social issues through
financial services
In FY2016/17, Nomura Securities provided support for the first “Social
Bond” issued by a domestic issuer, the Japan International Cooperation
Agency (JICA), and the first “Green Bond” issued by a non-financial
company in Japan, Nomura Research Institute (NRI), in the Japanese
bond market as lead manager. We will continue to serve as a bridge
between the needs of investors who want to contribute to society and
the funding demands of projects aimed at solving social issues. In
doing so, we aim to contribute towards the development of Japan’s
Green Bond and Social Bond markets.
Social Bonds: JICA Bonds
In September 2016, Nomura Securities was lead manager for a ¥35
billion bond issuance by the Japan International Cooperation Agency
(JICA). The proceeds are being used for such purposes as infrastructure
projects in emerging and developing countries and measures to tackle
climate change. JICA received a second opinion from the Japan
Research Institute, Limited (“JRI”) that the framework of JICA bonds is
aligned with the features of Social Bonds as defined in the updated
Green Bond Principles, 2016, where the proceeds will be exclusively
used for social projects to address social issues.
In 2015, the United Nations set out its Sustainable Development
Goals (SDGs). Within the Japanese government’s SDGs Implementation
Guiding Principles, “issuance of JICA bonds” is given as a specific
example for the 17th of the SDG goals, “partnerships for the goals.”
Green Bond Issue: NRI Green Bond
has been certified as an environmentally friendly
Against the backdrop of expanding ESG (Environment,
property, and occupancy work related to the building.
Social, Governance) investment, Green Bonds have
A Second Party Opinion certifying conformity with
been attracting international attention as one way of
the Green Bond Principles has been obtained from
addressing environmental issues. In September 2016,
Vigeo Eiris which provides ESG evaluation. In addition,
Nomura Securities structured, underwrote, and sold the
the NRI Green Bond has received an R&I Green Bond
first yen-denominated Green Bond issue in Japan, by
Assessment of the highest grade, “GA1”, from Rating
Nomura Research Institute (NRI). The bond proceeds
and Investment Information, Inc.
were used to finance the acquisition of trust beneficiary
rights for part of the Yokohama Nomura Building, which
Social Finance Products
http://www.nomuraholdings.com/csr/sustainable/products.html
Realizing a virtuous cycle through investment as a Responsible Institutional Investor
Financial Services Agency of Japan published the
management and seeks to maximize returns on investment.
“Principles for Responsible Institutional Investors”
Nomura Asset Management agrees with the purport
(“Japan’s Stewardship Code”) in 2014. By actively
of the Code and also undertakes investments taking
undertaking stewardship activities through constructive
ESG into consideration. We are supporting future
dialogue with investee companies and proxy voting,
growth cycles by boosting companies’ ability to grow
Nomura Asset Management encourages sound corporate
sustainability and by helping people build their assets.
Realizing the Investment Chain targeted by Nomura Asset Management
Responsible Investment System
Sustainable economic growth / Thriving society
Investee
companies
Investment and returns
Shareholders
Customers
Employees
High-quality products / increased purchases
Increase in employment / higher pay
Growth in orders placed / received
Stakeholders
Business
partners
Individual
investors
Pension
funds,
etc.
I
n
v
e
s
t
m
e
n
t
a
n
d
r
Constructive
dialogue
Investment
Chain
e
t
u
r
n
s
s
n
r
u
t
e
r
d
n
Investment a
Nomura Asset Management established the
Responsible Investment Department In April
2016. Through it, we aim to strengthen dialogue
with investee companies relating to ESG, make
investment decision-making more precise, and
support sustainable corporate growth.
Responsible
Investment
Committee
Responsible
Investment
Council
Reporting
Bring up issues, etc.
Responsible Investment Department
•Proxy voting
•Engagement
•ESG research and analysis
Reporting
Integration
Nomura Asset Management
Investment and Research Division
Responsible Investment
http://global.nomura-am.co.jp/responsibility-investment/
Holding ESG seminars
78
78 Nomura Report 2017
Nomura Report 2017
s
r
o
t
s
e
v
n
I
Investment
in JICA
bonds
Interest
payments,
bond
redemptions
e
c
n
a
t
s
i
s
s
a
n
a
o
L
Investments
and
loans
Repayment
ODA yen loans
and overseas
investment in
developing
countries
.
c
t
e
,
s
e
i
r
t
n
u
o
c
g
n
p
o
e
v
e
D
l
i
Infrastructure, medical treatment, health,
measures to combat climate change
Development of
Thilawa Special
Economic Zone
(Myanmar)
Olkaria
Geothermal Power
Development
Project (Kenya)
Polio
eradication
program
(Pakistan)
In response to growing interest in ESG investment based
of ESG seminars for institutional investor clients on such
on an evaluation of a company’s efforts with respect to
themes as the environment, ESG developments in
the environment, society, and governance at the time of
Europe, and the evaluation of Boards of Directors. More
investment, Nomura Securities has been holding a series
than 300 people attended these seminars in FY2016/17.
Nomura Report 2017
79
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Community Support Activities
http://www.nomuraholdings.com/csr/society/contribution/index.html
Supporting Our
Communities
Fundamental Approach
Contributing to Sustainable Communities
Community contribution expenditure
We are working to contribute to finding solutions to social and
environmental issues by communicating with a wide range of
stakeholders, from customers to shareholders, local communities, and
employees on a continual basis. Nomura Holdings Corporate Governance
Guidelines, formulated in November 2015, set out the principle that the
Company shall endeavor to contribute to the development of society at all
times and shall fulfill Nomura Group’s social responsibilities as a
corporate citizen by putting into practice Our Founder’s Principles that
have been inherited since the foundation of the Company.
(FY2016/17)
Others
11%
Emergency
relief
4%
People and
human rights
1%
Environment
4%
Healthcare and
welfare
3%
Community
contribution
Total Approx.
¥1.7 billion
Education &
young people
26%
Art and culture,
sport
33%
11%
* The total includes approximately ¥160 million from Nomura
Foundation and ¥40 million from The Nomura Charitable Trust.
Science and
academia
7%
Global CSR initiatives
In the regions around the world where Nomura Group conducts its
business activities, we share the basic CSR theme of “For Future
Generations” and carry out activities in line with regional needs while
forming partnerships with NGOs and other entities. These activities
are focused on nurturing future generations, including activities
aimed at eradicating disparities for future generations.
Communication with stakeholders
Nomura Group participates in initiatives in Japan and overseas that
aim to contribute to society and the environment to fulfill its
corporate social responsibility as a corporate citizen. Through
dialogue and collaboration with stakeholders, we carefully examine
the activities and information disclosure we undertake that are
related to the economy, society, and environmental issues. We also
review these activities and information disclosure, and report to the
CSR Committee when needed.
Dialogue with stakeholders (selected examples)
Themes
External Organization
Outline
Human rights, labor,
environment,
anti-corruption
United Nations (UN)
Global Compact
Participation in Global
Compact Network Japan
ESG
ESG
ESG
ESG
UN Principles for
Responsible Investment
Participation in the Japan
network
Principles for Financial
Action for the 21st Century
Climate Bonds Initiative
Participation in working
group on asset management,
securities, and investment
banking businesses
Participation as a partner in
activities to promote green
bonds
CSR Asia
Exchange of opinions on
ESG issues in Asia
Environment
CDP
Promotion, as a signatory, of
the climate change and water
programs
Communication with Stakeholders
http://www.nomuraholdings.com/csr/stakeholder/communication.html
Participation in Initiatives for Sustainability
http://www.nomuraholdings.com/csr/stakeholder/initiatives.html
Inclusion in SRI indices
Nomura’s CSR initiatives and ESG information
and, as of January 2017, the Morningstar Socially
disclosure practices have been widely recognized
Responsible Investment Index (MS-SRI). In October
outside the Company. Nomura Holdings has been
2016, Nomura Holdings was selected as a component
selected for inclusion in a number of SRI indexes,
of the STOXX Global ESG Leaders Index for the
including the Dow Jones Sustainability Indices (DJSI
second consecutive year.
World and DJSI Asia Pacific), the FTSE4Good Index,
External Assessment
http://www.nomuraholdings.com/csr/evaluations/
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 Russel, a subsidiary of the London Stock exchange, has created a socially responsible
investment index by selecting excellent companies from around the world
STOXX Global ESG Leaders Index
STOXX Limited, a wholly owned subsidiary of Deutsche Borse Group, has established the global
index for SRI represents companies that meet strict environmental, ESG criteria
MS-SRI
Morningstar, Inc. selected 150 companies that were assessed as having a high level of social
awareness from among companies listed in Japan, and created Japan’s first socially responsible
investment index by indexing their stock prices
80
80 Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
Nomura Report 2017
81
81
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data Supporting Our Communities
Contributing to sustainable communities 2020 and beyond
Global initiatives
Proudly supporting Japan every step of the way.
Support for the Olympic and Paralympic Games Tokyo 2020
The Road to 2020
http://www.nomuraholdings.com/tokyo2020/
Nomura Holdings is sponsoring the Olympic and Paralympic Games
Tokyo 2020 (the Tokyo 2020 Games) as the exclusive Gold Partner in
the Securities category. We see this as a perfect opportunity for Japan
to showcase on the world stage its efforts to stimulate the Japanese
economy and achieve sustainable growth by overcoming challenges
such as low economic growth and an aging population with a low birth
rate. Nomura Holdings is working not only to ensure the success of the
Tokyo 2020 Games but also to stimulate the entire Japanese economy
by applying its strengths and extensive experience in providing support
to a wide range of companies through the capital markets. At the same time, in order to foster opportunities throughout
society, Nomura Holdings is undertaking activities in support of the Tokyo 2020 Nationwide Participation Programme.
Under this program, we are making a concerted effort to support post-disaster restoration work and promote educational
programs to enhance financial and economic literacy. All Nomura employees are coming together to support sustainability
in Japan in 2020 and beyond.
Participating in BE FREE Tokyo Bicycle
Sharing Project
Support for Para-Sports
Nomura Group is committed to supporting para-sports as an official
As a leading partner in this project, we are promoting
partner of the Japanese Para-Sports Association. Nomura Group also
bicycle sharing with the aims of contributing to the
supports the Japan Para-Volleyball Association as a special top partner.
health of users, revitalizing the area, and enhancing the
This association is working to increase the popularity of sitting volleyball,
central Tokyo environment. We continue to tackle
an official event of the Tokyo 2020 Paralympic Games. In FY2016/2017,
various economic, social, and environmental issues as
Nomura Group supported para-sports by holding events for staff to
part of our effort to support sustainable communities.
experience sitting volleyball for themselves, holding national athletic
meeting supporter group meetings, and preparing DVDs and pamphlets
introducing the different events. We intend to continue to broaden the
appeal of these sports, support training athletes, and encourage general
awareness of para-sports.
Post-earthquake restoration support: The Sakura Project
Since 2012, Nomura has been working hand in hand with local groups to make
Tohanayama Hill in Yamamoto Town, Watari District, Miyagi Prefecture, a notable
cherry blossom (“sakura”) viewing spot. The Watari District suffered severe
tsunami damage in the Great East Japan Earthquake. With the eleventh semi-
annual event held in April 2017, we commemorated the steady growth of the
newly planted trees by inviting local people and children to enjoy the blossoms
and join with us in planting more saplings. Approximately 800 employees have
participated in these activities to date.
EMEA
Americas
The focus of the EMEA Community Affairs program is to support
Nomura Americas’ CSR program aims to support future
the success of future generations, and is divided into three main
generations in our New York City community through mentorship,
areas: Two-Year Charity Partnership, The Nomura Charitable
fundraising efforts, and awareness campaigns. Nomura works
Trust, and Employee Engagement. FY2016/17 saw the second
to improve the literacy of local students through the Read
year of the partnership with Rays of Sunshine, a charity that
Ahead program. The firm also supports several New York City
grants wishes for seriously ill children. Over US$815,000 was
organizations that benefit communities in need, including the Anti-
raised for the charity, which included a range of fundraising
Violence Project to empower LGBTA and HIV-affected individuals
activities—from challenges and quizzes to sports and cooking
through education, counseling and advocacy, and Toys for Tots
competitions. Employee volunteering is a key part of EMEA’s
for less fortunate children. Fundraising campaigns are also held
Community Affairs program, with employees volunteering for
through the year to increase local awareness and contribute to
initiatives such as school mentoring, work skills support, and
medical research these non-profits, include the Memorial Sloan
schemes designed to raise the aspirations of future generations.
Kettering Cancer Center, Autism Speaks, and the National MS
Society. Instinet continues to support local youth through its
partnerships with Elevate and Operation Backpack.
EMEA
AEJ
Powai,
India
Americas
AEJ
Powai, India
The Nomura CARES network was established by employee
Nomura Powai’s CSR initiatives focus on the key areas of education
volunteers as the focal point for CSR initiatives in Asia ex-Japan.
and healthcare. These include programs in remedial education,
We have charity partnerships with local NGOs in Hong Kong,
skills development, primary healthcare, and cancer treatment.
Singapore, and China that our employees support via various
Current efforts are directed toward creating collective impact by
fundraising and volunteering events. In India, we comply with
engaging with NGOs who have complementary capabilities to
Section 135 of the Companies Act to allocate at least two
improve the overall welfare of a community. Powai CSR consistently
percent of average net profit for CSR activities. We also support
adds value by building a robust employee engagement program
local CSR projects in Australia and Korea. Nomura CARES focuses
and integrating it with its ongoing projects. The volunteering
on four main streams: local charity partnerships, environmental
programs leverage core competencies and domain knowledge of
initiatives including annual beach cleanup events, donations to
our employees in building capacities of partner NGOs and their
NGOs that our employees are actively involved with, and the Hong
stakeholders. In FY2016/17, 2,802 employees put in 6,641 hours
Kong Community Connections Program that Nomura helps to
participating in 212 volunteering initiatives.
organize along with five other industry peers.
82
Nomura Report 2017
Nomura Report 2017
83
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data Our
Environment
Fundamental Approach
Environmental Initiatives
http://www.nomuraholdings.com/csr/environment/index.html
Environmental Initiatives
Nomura Group, recognizing its responsibilities as a corporate group that operates globally, is committed to helping address
climate change issues through its business activities. At the same time, we are working to reduce the environmental
impact of our own business activities themselves. The Code of Ethics of Nomura Group states, “Nomura Group is commit-
ted to acting in an environmentally responsible manner and should, therefore, approach environmental issues positively.”
In addition, we are working on a global basis to tackle climate change issues based on recognized international criteria
such as sustainable development goals (SDGs) and the Paris Agreement on Climate Change.
Environmental management
In 2009, Nomura Group created both its Environmental Statement
and Environmental Policy based on the Code of Ethics of Nomura
Group. Centered on the Environmental Activities Working Group, the
Group is proactively working to reduce the environmental impact of
its business activities.
In Japan, we have established an environmental management
system (EMS) and are implementing comprehensive environmental
preservation activities to deal with environmental risks and issues.
Our offices around the world are also implementing environmental
initiatives. For example, our London headquarters building obtained
ISO 14001 certification in 2007 following an audit performed by a
local accreditation body and has maintained its certification to the
present. In addition, its energy management system received
ISO 50001 certification in 2015.
Nomura Group environmental management framework
Board of
Directors
Executive
Management
Board
Report
Approve
CSR
Committee
The Head of
Environmental
Affairs
Report
Approve
Asia
Environmental Activities
Working Group
Cooperation
Europe
Nomura
Group
companies
Nomura
Securities head
office/branch
offices
Americas
Nomura Group environmental targets (Japan)
In Japan, the Group is working to conserve resources and energy as it seeks to attain its target to reduce CO2
emissions per square meter in FY2030/31 by 20% or more from FY2009/10.
Nomura Group environmental objectives and progress (Japan)
FY2016/17 targets
Assessments
FY2017/18 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
Reduce the CO2 emissions per mileage driven of leased
vehicles of Nomura Securities from the previous year
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
Reduction: 32.4%
Reduction: 2.4%
Reduction: 6.0%
Purchase ratio: 92.09%
Reduction: 5.0%
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
Reduce the waste emissions volume at principal offices
from FY2013/14
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
Accounts accepting electronic document
delivery: 1.38 million
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
Pursued underwriting and sales of JICA Bonds
and NRI Green Bond 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
FY2017/18 targets
CO2 emissions
CO2
-20%
CO2 emissions
per mileage driven
Year-on-year
reduction
Waste emissions volume
Reduction
Compared
with
FY2013/14
Green office supplies purchase
ratio
Volume of copy paper
usage
Electronic
document exchange
85%
Year-on-year
reduction
Promotion
Number of financial
products and services
that help resolve
social issues
Expansion
Efforts to address climate change
Nomura Group is making efforts to improve disclosure of environmental information globally. In addition, we are
working to lighten the impact of our activities on the environment through the purchase of green power.
Per-employee greenhouse gas
emissions (scope 1, 2)
(t-CO2)
Japan
EMEA
Americas
Green power purchasing volume
Greenhouse gas emissions (scope 1, 2)
(t-CO2)
AEJ
100,000
Americas
Japan
EMEA
80,000
60,000
40,000
20,000
0
2014
2015
2016
2017
(Fiscal years ended March 31)
7
6
5
4
3
2
1
0
2014
2015
2016
(Fiscal years ended March 31)
2017
AEJ
(MWh)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Japan and main EMEA offices
2014
2015
2016
2017
(Fiscal years ended March 31)
Nomura Report 2017
85
84
84
Nomura Report 2017
Nomura Report 2017
* For detailed environmental information please refer to Our Environment on page 93.
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Corporate Information / Data
Key Financial Data
P/L
Net revenue
Income before income taxes
Net income*
* Net income attributable to Nomura Holdings shareholders
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
1,535.9
1,813.6
1,557.1
1,604.2
1,395.7
1,403.2
85.0
11.6
237.7
107.2
361.6
213.6
346.8
224.8
165.2
131.6
322.8
239.6
(billions of yen)
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
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
397.9
68.9
644.9
511.9
80.5
765.1
476.5
92.4
789.9
435.6
95.4
720.3
(billions of yen)
FY2016/17
374.4
99.4
739.3
1,111.7
1,357.5
1,358.7
1,251.3
1,213.1
664.2
188.8
220.8
165.1
183.5
350.3
65.8
555.0
971.1
560.9
3.8
37.7
10.7
24.7
(20.7)
6.6
1,535.9
1,813.6
1,557.1
1,604.2
1,395.7
1,403.2
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
32.1
82.2
276.1
46.0
24.7
346.8
127.6
36.7
15.4
179.7
6.1
(20.7)
165.2
74.8
42.3
161.4
278.6
37.6
6.6
322.8
(billions of yen)
Geographic information*
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Income
(loss) before
income
taxes by
region
Japan
Americas
Europe
Asia and Oceania
Subtotal
Consolidated
214.1
(24.6)
(91.5)
(12.9)
(129.1)
85.0
317.2
386.3
363.2
244.8
234.7
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)
50.0
14.4
23.7
88.1
237.7
361.6
346.8
165.2
322.8
* 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.
ROE
ROE
B/S
Total assets
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
0.6%
4.9%
8.9%
8.6%
4.9%
8.7%
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
35,697.3
37,942.4
43,520.3
41,783.2
41,090.2
42,852.1
(billions of yen)
Total Nomura Holdings shareholders’ equity
2,107.2
2,294.4
2,513.7
2,707.8
2,700.2
2,789.9
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
15.4
8.6
* Total assets minus securities purchased under agreements to resell and securities borrowed, divided by Nomura Holdings shareholders’ equity.
Funding and liquidity
Liquidity portfolio*
Short-term unsecured debt
Long-term unsecured debt
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016 March 31, 2017
5,427.7
3,009.1
6,373.0
5,883.5
2,293.3
6,457.3
6,127.2
2,969.3
6,218.6
6,064.0
2,557.0
6,509.4
5,947.1
3,303.8
6,593.6
4,970.3
1,883.0
5,918.9
(billions of yen)
* 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.
Per share data
Basic-net income attributable to Nomura
Holdings shareholders per share (EPS)
Diluted-net income attributable to Nomura
Holdings shareholders per share (EPS)
Nomura Holdings shareholders’ equity per share
(BPS)
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
3.18
29.04
57.57
61.66
36.53
67.29
(yen)
3.14
28.37
55.81
60.03
35.52
65.65
575.20
618.27
676.15
752.40
748.32
790.70
Dividends per share (DPS)
Dividend payout ratio
6.0
8.0
17.0
19.0
13.0
188.7%
27.5%
29.5%
30.8%
35.6%
20.0
29.7%
Consolidated capital adequacy, etc.*1
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016 March 31, 2017
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
2,689.8
319.6
359.2
401.5
361.2
323.1
109.6
2,427.0
2,452.1
2,715.7
2,820.4
2,900.6
2,799.4
14,681.0
17,546.7
17,425.9
18,929.2
15,970.5
13,977.9
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%
19.2%
18.2%
20.0%
4.63%
(trillions of yen)
—
—
6.2
4.5
175.8%
180.0%
*1 Figures for March 2012 were prepared under Basel 2.5 standards. Figures for March 2013 to March 2017 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.
Number of shares outstanding, share price, etc. March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016 March 31, 2017
Number of shares outstanding (thousands)
3,822,563 3,822,563 3,822,563 3,822,563 3,822,563
3,822,563
Share price (fiscal year-end) (yen)
Market capitalization (trillions of yen)*
PBR (times)*
PER (times)*
* Figures based on the fiscal year-end share price.
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
115.09
19.87
11.50
11.45
13.77
691.9
2.6
0.88
10.28
86
Nomura Report 2017
Nomura Report 2017
87
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data Eleven-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.
FY2006/07
FY2007/08
FY2008/09
FY2009/10
FY2010/11
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
(Millions of yen)
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
Private equity entities product sales
Other
Total revenue
Interest expense
Net revenue
Non-interest expenses:
Compensation and benefits
Commissions and floor brokerage
Information processing and communications
Occupancy and related depreciation
Business development expenses
Private equity entities cost of goods sold
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
¥
337,458 ¥
404,659 ¥
306,803 ¥
347,135 ¥
359,069 ¥
473,121 ¥
453,401 ¥
99,276
145,977
290,008
47,590
981,344
(20,103)
100,126
67,425
2,049,101
958,000
1,091,101
345,936
50,812
109,987
61,279
38,106
57,184
109,295
772,599
318,502
145,930
172,572
(3,256)
85,096
189,712
61,720
76,505
796,540
(48,695)
—
28,185
1,593,722
806,465
787,257
366,805
90,192
135,004
64,841
38,135
—
157,190
852,167
(64,910)
3,259
(68,169)
(322)
(67,847) ¥
54,953
140,166
(128,339)
(54,791)
331,356
(25,500)
—
39,863
664,511
351,884
312,627
491,555
73,681
154,980
78,480
31,638
—
262,558
1,092,892
(780,265)
(70,854)
(709,411)
(1,219)
(708,192) ¥
395,083
121,254
132,249
417,424
11,906
235,310
6,042
—
37,483
1,356,751
205,929
1,150,822
526,238
86,129
175,575
87,806
27,333
—
142,494
1,045,575
105,247
37,161
68,086
288
67,798
¥
405,463 ¥
107,005
143,939
336,503
19,292
346,103
(16,677)
—
43,864
1,385,492
254,794
1,130,698
518,993
92,088
182,918
87,843
30,153
—
125,448
1,037,443
93,255
61,330
31,925
3,264
¥
28,661 ¥
59,638
144,251
272,557
25,098
435,890
4,005
—
563,186
1,851,760
315,901
1,535,859
534,648
93,500
177,148
100,891
48,488
—
496,227
1,450,902
84,957
58,903
26,054
14,471
11,583 ¥
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
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
431,959 ¥
118,333
229,006
354,031
13,761
440,050
(20,504)
—
156,460
1,723,096
327,415
1,395,681
327,129
92,580
216,479
475,587
1,371
441,036
7,708
—
153,626
1,715,516
312,319
1,403,197
574,191
123,881
189,910
78,411
35,892
—
228,238
1,230,523
165,158
22,596
142,562
11,012
496,385
94,495
175,280
69,836
35,111
—
209,295
1,080,402
322,795
80,229
242,566
2,949
239,617
Net income (loss) attributable to NHI shareholders
¥
175,828 ¥
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
1,643,007
8,412,618
11,672,612
1,686,902
1,406,216
17,838,227
13,094,552
2,184,504
1,187,600
10,391,367
10,278,188
1,944,832
¥ 1,054,012 ¥ 1,434,067 ¥ 1,422,709 ¥ 1,352,244
2,071,714
12,467,213
14,700,282
1,638,975
¥ 35,577,511 ¥ 25,236,054 ¥ 24,837,848 ¥ 32,230,428
¥ 1,093,529 ¥ 1,426,266 ¥ 1,183,374 ¥ 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
¥ 35,577,511 ¥ 25,236,054 ¥ 24,837,848 ¥ 32,230,428
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
950,381
10,540,731
4,469,942
623,206
5,224,426
23,234,952
1,988,124
12,978
2,001,102
1,262,187
20,599,256
4,588,208
808,482
5,002,890
33,354,552
2,185,919
37,040
2,222,959
2,969,578
15,077,660
16,410,002
2,734,084
2,629,875
14,115,257
17,124,349
2,420,206
2,948,424
16,719,520
17,308,848
2,709,848
2,570,678
17,347,001
18,714,314
2,699,011
2,211,423
13,742,646
14,123,594
3,665,972
2,227,822
15,156,318
15,241,931
1,916,466
¥ 2,150,453 ¥ 1,953,677 ¥ 1,652,752 ¥ 2,189,310 ¥ 2,096,596 ¥ 3,898,843 ¥ 2,972,088
3,097,428
18,729,825
15,192,364
2,860,373
¥ 36,692,990 ¥ 35,697,312 ¥ 37,942,439 ¥ 43,520,314 ¥ 41,783,236 ¥ 41,090,167 ¥ 42,852,078
¥ 1,167,077 ¥ 1,185,613 ¥
543,049
3,708,435
19,061,091
8,191,794
1,308,510
7,195,408
40,008,287
2,789,916
53,875
2,843,791
¥ 36,692,990 ¥ 35,697,312 ¥ 37,942,439 ¥ 43,520,314 ¥ 41,783,236 ¥ 41,090,167 ¥ 42,852,078
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
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
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
2,413,801
15,409,383
8,491,296
978,163
7,592,368
35,623,456
2,294,371
24,612
2,318,983
2,103,608
13,686,438
8,688,998
552,316
8,402,917
34,601,354
2,082,754
8,882
2,091,636
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
738,445 ¥
602,131 ¥
662,256 ¥
662,902 ¥
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
¥ (1,627,156) ¥
(533,813)
1,568,703
(647,906) ¥
(102,019)
942,879
(712,629) ¥ (1,500,770)
(269,643)
2,176,530
(98,905)
999,760
¥
(235,090) ¥
(423,214)
1,284,243
290,863 ¥
9,942
(844,311)
549,501 ¥
(160,486)
(701,623)
457,426 ¥
(103,195)
289,385
(77,028) ¥ 1,238,372 ¥ 1,305,025
(23,711)
12,337
(118,051)
986,387
(178,206)
(2,130,644)
Effect of initial adoption of investment company
accounting on cash and cash equivalents
—
(38,427)
—
—
—
—
—
—
—
—
—
Effect of exchange rate changes on cash and cash equivalents
10,333
Net increase (decrease) in cash and cash equivalents
¥
(581,933) ¥
(57,319)
97,208 ¥
(81,896)
106,330 ¥
964
407,081
(26,246)
599,693 ¥
¥
(6,314)
47,175
41,089
68,513
(40,195)
(549,820) ¥
(265,433) ¥
684,705 ¥
(174,384) ¥ 2,160,853 ¥
4,249
(939,421)
88
Nomura Report 2017
Nomura Report 2017
89
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Unit
June 30, 2012 June 30, 2013
June 30, 2014
June 30, 2015 June 30, 2016 June 30, 2017
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Dialogue with stakeholders
Data for FY2016/17 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
10
6
60
1
10
1
10
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
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
33
1
3
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Board of Directors meetings
No. of times held
Average attendance rate
No. of times
%
10
95
11
97
10
98
10
99
10
100
11
99
Client Focused
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Caseload at Customer Help Desk Department (Nomura Securities)
Total
Complaints
Inquiries
Opinions and requests
Other
No. of cases
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
6,003
2,531
3,267
98
107
*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.
Community contribution expenditures
Total
Millions of yen
Millions of yen
Education
Arts, culture, and sports
Millions of yen
Science and academic achievement Millions of yen
Community contribution
Millions of yen
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
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
FY2016/17
1,704
451
567
116
189
53
71
12
61
184
Cumulative
total
Participants and materials in financial and economics education
Visiting classes (elementary, junior, senior
high schools, universities, teachers)
Since 2008
Financial courses for universities
Since 2001
No. of participants
No. of schools
No. of schools
No. of participants
22
31
56
265
304
346
1,077
1,087
115
12,000
536
27,839
1,420
5,741
120
1,865
114
11,000
444
21,696
1,287
5,120
396
2,825
112
11,000
531
23,897
1,484
5,699
227
9,836
108
11,000
566
24,712
1,361
5,167
366
9,637
106
11,000
412
14,958
1,429
5,587
361
304
15,317
104
43,787
1,758
11,200 228,200
7,850
10,926 391,650
1,618
26,118
6,462 103,528
4,048
378
Financial courses for the general public
Since 2003
No. of courses
No. of participants
No. of teams
No. of members
No. of schools
Nikkei Stock League
Since 2000
Teaching material for elementary schools
(The Economics classroom,“The Framework
of Society and the Role of Money”)*
Since 2008
Teaching material for junior high
schools (The t-shirt shop)*
Since 2006
No. of copies
5,000
17,422
14,639
24,170
21,377
25,503 308,111
No. of schools
180
387
215
161
79
56
4,778
No. of copies
17,200
17,326
12,162
15,380
5,928
4,664 452,660
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
* The total volume of learning materials donated to elementary and junior high schools by Nomura Holdings
Branches that are barrier-free and have AEDs (Nomura Securities)
Certified universally accessible
Wheelchair-accessible toilets
No. of branch offices
Wheelchair-accessible elevators No. of branch offices
No. of branch offices
With steps removed from entrances and
exits (with ramps, elevators, or no steps)
No. of branch offices
With installations to mitigate entrance and
exit steps (railings or reduced step heights)
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
32
83
66
132
12
100
86.7
Unit
January 2012 December 2013
August 2014
January 2015 February 2016 February 2017
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
83.7
14.3
2.0
Unit
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
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
ADB Bonds/IADB 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
18
78,118
Developing human resources who respect diversity
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
Education and training expenses
Total
Millions of yen
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
2,767
2,094
161
299
213
562,289
195,819
303,854
15,581
94,550
44,325
15,848
19,816
148,037
116,097
* 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.
90
Nomura Report 2017
Nomura Report 2017
91
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data CSR Key Facts
Data for FY2016/17 items marked with
undergone assurance verification by a third party.
Developing human resources who respect diversity
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
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
Japan (Nomura Holdings,
Nomura Securities)
Europe
Americas
Asia-Pacific
No. of employees
Men (No. of employees)
Women (No. of employees)
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*3
Total
Japan
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
28,186
61
39
16,227
58
42
3,026
70
30
2,314
74
26
6,619
59
41
100
58
11
8
23
2,266
526
430
189
94
227
91
425
284
7,705
1,405
15
4,289
383
8.2
1,270
289
19
1,029
250
20
1,117
483
30
*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.
*3 Composition of managers: The figures cover Nomura Group on a consolidated basis. In FY2015/16 and prior years, some domestic subsidiaries
were not included in the scope of the calculations.
Please refer to standards for calculation (http://www.nomuraholdings.com/csr/data/).
92
Nomura Report 2017
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.)
Indirect energy
consumption
(Purchased electric power)
Including, Green electric
purchase power*4
(Purchased cooling and
heating power)
Unit
FY2011/12
FY2012/13
FY2013/14
FY2014/15
FY2015/16
FY2016/17
t-CO2
Japan
Europe
t-CO2
Americas t-CO2
Asia-Pacific t-CO2
t-CO2
Japan
Europe
t-CO2
Americas t-CO2
Asia-Pacific t-CO2
t-CO2
Japan
Europe
t-CO2
Americas t-CO2
Asia-Pacific t-CO2
t-CO2
Japan
Europe
t-CO2
Americas t-CO2
Asia-Pacific*3 t-CO2
MWh
Japan
Europe MWh
Americas MWh
Asia-Pacific MWh
MWh
Japan
Europe MWh
Americas MWh
Asia-Pacific MWh
2,373
1,299
0
76
34,214
21,629
6,784
24,357
2.4
6.9
2.8
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
6,278
24,323
2.8
6.2
2.8
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
5,015
21,601
3.0
6.0
2.2
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
6,406
22,007
2.9
4.6
2.6
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
6,966
21,892
2.7
4.3
2.8
4.2
22,013
7,651
4,966
11,587
10,573
4,201
355
732
70,520
30,133
21,882
26,720
2,005
772
72
173
36,783
11,786
6,168
20,942
2.5
4.2
2.7
4.2
22,936
7,023
4,343
11,041
10,654
4,329
359
743
68,372
30,713
20,236
25,577
MWh
7,424
6,329
6,317
32,626
34,652
35,033
Japan
MWh
Europe MWh
Americas MWh
Asia-Pacific MWh
Environmental resource efficiency
Water consumption*5
Thousand m3
Japan
Thousand m3
Europe
Americas Thousand m3
Asia-Pacific Thousand m3
Copy paper consumption*6
Amount of waste generated*7
ton
ton
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
12,320
0
198
1,723
168
107
29
35
1,018
2,658
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. However, data on air transportation in scope 3 are compiled based on corporate data.
Japan: 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
*1 The Bangkok office was included in the scope for Asia from FY2014/2015
Indirect emissions at offices located in New York were previously calculated
using emission factors from the Emissions & Generation Resource
Integrated Database of the United States Environmental Protection Agency
for the NYLI, a decision made based on a conservative assessment.
However, the Company has since chosen to utilize emission factors for the
NYCW based on an on-site survey aimed at improving the precision of data
collection. Information on the impact of this change can be found on the
Company’s corporate website (http://www.nomuraholdings.com/csr/data/).
*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 offices of Asia include emissions
from regularly used automobiles.
*3 Assurance-verified data for Asia totaled 9,723 t-CO2 in FY2016/17.
(Offices in Hong Kong, Singapore, India and Bangkok.)
*4 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.
*5 Only the India office was included in the scope for Asia in FY2011/12.
*6 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.
*7 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.
Nomura Report 2017
93
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
Independent Assurance
Website Information
Nomura Holdings Website
http://www.nomura.com/
At Nomura Group, we are continuing to strive to
make our corporate website broadly accessible by
eliminating difficulties people may have in access-
ing information and services due to visual, hearing,
speech, or other physical impairments.
Investor Relations Site
Corporate Citizenship Site
http://www.nomuraholdings.com/investor/
http://www.nomuraholdings.com/csr/
Provides various investor relations information for
Nomura Group makes available detailed information
Nomura Group, including earnings presentations,
on this site regarding its CSR activities. This site
financial data, the Nomura Report, notices for
also contains application forms for requesting guest
shareholders, and information pertaining to
lectures by Nomura staff on financial and economic
corporate governance.
topics, a GRI Guidelines Index, and other CSR-
related data as well as other materials.
About the Company Logo
The logo of Nomura Group is based on our Company badge. This badge
design is an arrangement of an ivy leaf, which appears on the crest of the
Nomura family, and the original Nomura trade name in Japanese, yamato.
The yama portion of the trade name, which means “mountain,” was restyled
in the shape of a mountain.
94
Nomura Report 2017
Nomura Report 2017
95
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data Global Network
(As of March 31, 2017)
Services for Retail Clients / Nomura Securities Branches in Japan
The Nomura Group, as Asia’s global investment bank, has a
global network spanning more than 30 countries and regions.
Europe, the Middle East and Africa
Americas
London
Amsterdam
Vienna
Subsidiary*
Subsidiary
Representative office
Stockholm
Branch
Zurich
Paris
Frankfurt
Helsinki
Madrid
Milan
Subsidiary
Branch*
Subsidiary
Branch*
Subsidiary
Branch*
Branch
Branch
Branch
Luxembourg
Subsidiary
Istanbul
Qatar
Dubai
Bahrain
Riyadh
Representative office
Branch
Branch
Subsidiary
Subsidiary
New York
Subsidiary*
Branch*
Washington, D.C.
Branch
Boston
Chicago
Branch*
Branch*
Manhattan Beach Branch
San Francisco
Los Angeles
St. Louis
Branch*
Branch*
Branch*
New Jersey
Subsidiary
Branch
Subsidiary*
Representative office
Representative office
Subsidiary
Toronto
Colombia
São Paulo
Bermuda
Japan
South Africa
Branch
Japan
Head office, branches and offices 158
Stockholm
Helsinki
Luxembourg
London
Paris
Zurich
Madrid
Amsterdam
Frankfurt
Vienna
Milan
Istanbul
Bahrain
Riyadh
Europe,
the Middle East and Africa
Dubai
Qatar
Hanoi
Mumbai
Seoul
Beijing
Shanghai
Hong Kong
Taipei
Japan
St. Louis
Chicago
Toronto
San Francisco
Los Angeles
Manhattan Beach
Boston
New York
New Jersey
Bermuda
Washington, D.C.
Philippines
Bangkok
Kuala Lumpur
Singapore
Asia ex-Japan
Americas
Colombia
Jakarta
South Africa
Sydney
Melbourne
São Paulo
Asia ex-Japan
Hong Kong
Subsidiary*
Branch
Beijing
Shanghai
Taipei
Seoul
Mumbai
Representative office
Representative office
Branch
Subsidiary
Representative office
Subsidiary
Hanoi
Jakarta
Kuala Lumpur
Philippines
Bangkok
Singapore
Sydney
Representative office
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary*
Subsidiary*
*Includes subsidiaries and branches of Instinet
Melbourne
Representative office
96
96
Nomura Report 2017
Nomura Report 2017
Consulting Services
Provide tailored consulting services to each client through
Nomura’s head office and nationwide network of 158 branch offices
Client
Real estate
Asset Management
Insurance
Loan
Business succession
Estate planning, Bestowing gifts
Testamentary trust
Call Center
Provide a wide range of services to clients who have existing
accounts at Nomura, as well as new potential clients
• Transaction orders
• Market outlook and investment consulting (reservation required)
• Individual-type defined contribution pension plan (iDeCo) information and services
• Administrative functions, including new account opening services
Online Services
Provide access to information and convenient tools through a broad range of
devices. Clients with accounts in Nomura can execute various transactions
through their individual web interface
• Nomura Home Trade*: Services for clients who have accounts at our head office or a branch
• Nomura Net & Call*
• Website exclusive for each subscriber of individual-type defined contribution pension plan (iDeCo)
• Website exclusive for each subscriber of employee stock ownership plan
* Beginning January 2018, Nomura Home Trade and Nomura Net & Call will be integrated
and re-launched as Nomura Online Service.
Nomura Securities: 158 branches in Japan
(As of March 31, 2017)
Hokuriku
4 branches
Chubu
16 branches
Kinki
27 branches
1 private banking office
Chugoku
8 branches, 1 office
Shikoku
4 branches
Kyushu
10 branches
A
b
o
u
t
N
o
m
u
r
a
S
t
r
a
t
e
g
e
s
i
l
f
o
r
V
a
u
e
C
r
e
a
t
i
o
n
S
t
r
e
n
g
t
h
s
S
u
p
p
o
r
t
i
n
g
V
a
l
u
e
C
r
e
a
t
i
o
n
C
o
r
p
o
r
a
t
e
I
n
f
o
r
m
a
t
i
o
n
/
D
a
t
a
Nomura’s call center and internet service was
awarded a ‘five star’ rating by the Help Desk
Institute for three consecutive years for its defined
contribution pension plan services
Hokkaido
4 branches, 1 office
Tohoku
8 branches, 1 office
Tokyo metropolitan area
1 Head office, 33 branches
1 private banking office
Branches operating after 5 p.m. on weekdays and on
Saturday and Sunday
Saturday and Sunday
Keio Shinjuku Branch
Shinagawa Branch
After 5 p.m.
After 5 p.m.
Okinawa
1 branch
Kanto
36 branches, 1 office
Branches operating after 5 p.m. on weekdays and on
Saturday, Sunday, and holidays
After 5 p.m. Saturday, Sunday and holidays
Aeon Mall Funabashi Office
Nomura Report 2017
Nomura Report 2017
97
97
Component ratio of shareholders
http://www.nomuraholdings.com/csr/gri/index.html
Corporate Data / Share Information / Credit Rating
CORPORATE DATA
Company name
Nomura Holdings, Inc.
Date of incorporation
December 25, 1925
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.
Head office
1-9-1, Nihonbashi, Chuo-ku, Tokyo
103-8645, Japan
Paid-in capital
¥594,493 million
Group employees
28,186
Common stock issued
3,822,562,601 shares
Number of shareholders 379,603 (Unit shareholders: 357,883)
Securities code
8604 (Tokyo Stock Exchange), NMR (New York Stock Exchange)
Transfer agent and registrar
Depositary for American
Depositary Receipts (ADRs)
Date of record for dividend
payments
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Department
The Bank of New York Mellon
September 30, March 31
SHARE INFORMATION
(As of March 31, 2017)
Major shareholders (Top 10)*1
Name of shareholder
Number of shares
owned (thousands)*2
Ownership
(%)*2
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account 5)
State Street Bank and Trust Company
State Street Bank West Client-Treaty 505234
Japan Trustee Services Bank, Ltd. (Trust Account 1)
Japan Trustee Services Bank, Ltd. (Trust Account 2)
Japan Trustee Services Bank, Ltd. (Trust Account 7)
Japan Trustee Services Bank, Ltd. (Trust Account 9)
The Bank of New York Mellon SA/NV 10
204,409
152,015
74,128
61,747
55,202
54,864
54,364
54,153
46,852
44,288
5.8%
4.3%
2.1%
1.7%
1.6%
1.6%
1.5%
1.5%
1.3%
1.3%
*1 The Company has 293,373 thousand shares of treasury stock as of March 31, 2017 which is not
included in the major shareholders list above.
*2 Figures for Number of Shares Owned are rounded down to the nearest thousand and figures for
Percentage of Shares Owned are calculated excluding treasury stock.
Total Shareholder Return (TSR)*1
Individuals and others
(including treasury stock)
33.3%
Financial institutions
(including Financial
instruments firms)
25.9 %
Other
legal entities
3.7%
Foreign legal
entities
37.1%
Nomura Holdings
TOPIX
TSR (annual average)
Holding Period*2
Nomura Holdings
TOPIX
1 year
42.57%
14.75%
3 years
4.31%
10.14%
5 years
16.41%
14.42%
Relative value of stock
price with dividends
reinvested, assuming
the closing price of
stock on March 30,
2012 was set at 1.
Mar. 2012
Mar. 2013
Mar. 2014
Mar. 2015
Mar. 2016
Mar. 2017
3.00
2.50
2.00
1.50
1.00
0.50
0.00
*1 TSR: Total shareholder return, combining capital gains and dividend. Dividend is to be reinvested. Source: Nomura, based on Bloomberg
*2 Holding period until March 31,2017
< Basic Information in the Report >
Period covered April 1, 2016 to March 31, 2017
(Some content may be outside this time frame.)
Reporting cycle
Previous:
Current:
Once a year
August 2016
August 2017
Entities covered
Nomura Holdings, Inc. and its major subsidiaries and affiliates
http://www.nomuraholdings.com/company/group/
Numerical data are presented alongside information on the
scope of companies covered.
Reference guidelines
• GRI Sustainability Reporting Standards (GRI Standards) 2016
This report contains information regarding the standard disclosure items contained in the GRI Standards
2016. Please access the following URL on our corporate website for our GRI Guidelines Index.
• Environmental Reporting Guidelines (2012 Version) of Japan’s Ministry of the Environment
• Charter of Corporate Behavior of Keidanren
Editing Nomura Report 2017
Since 2012, we have been publishing the Nomura Report as an integrated version
of our Annual Report and CSR Report. In this sixth edition of the Nomura Report,
we place the spotlight on Nomura’s activities and what defines us, starting with our
mission to contribute to economic development and realization of a prosperous
society through its involvement in the securities industry. We take as our entry
points our business, people, governance, and financial and non-financial
perspectives. We hope to deepen readers’ understanding of Nomura Group’s
initiatives, including our efforts to realize our management targets for 2020 and to
create corporate value over the medium to long term, as well as our endeavors to
embrace change and achieve sustained growth through 2020 and beyond.
In preparing this report, we took into consideration the global trend towards
integrated reports, and have referenced the international integrated reporting
framework advocated by the International Integrated Reporting Council (IIRC) and
GRI Standards 2016. In addition, we have received guarantees from independent
external organizations, thereby enhancing the reliability and transparency of certain
CSR data.
With the aim of having this report help to deepen dialogue with all of our
stakeholders, we will continue to proactively disclose information while working to
improve its reliability.
Hajime Ikeda
SMD, Group Corporate
Communications,
Corporate Citizenship and
Tokyo 2020
Olympic and Paralympic
CREDIT RATING (As of June 30, 2017)
R&I
JCR
Moody’s
Standard & Poor’s
Fitch Ratings
98
Nomura Report 2017
Nomura Securities
Nomura Holdings
Long-term
Short-term
Long-term
Short-term
INQUIRIES
Nomura Holdings, Inc.
A+
AA-
A3
A
A-
a-1
—
P-2
A-1
F1
A+
AA-
Baa1
A-
A-
a-1
—
—
A-2
F1
• Investor Relations
• Corporate Citizenship Department
Urbannet Otemachi Building, 2-2-2,
Otemachi, Chiyoda-ku, Tokyo 100-8130, Japan
Tel: +81 (3) 5255-1000 (Main switchboard)
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
Nomura Report 2017
99
About NomuraStrategies for Value CreationStrengths Supporting Value CreationCorporate Information / Data
N
o
m
u
r
a
R
e
p
o
r
t
2
0
1
7
This report was produced
using non VOC inks.
All electricity to print this
booklet was generated by
green energy. (399kWh)
Printed in Japan