#1Investor Day Kentaro Okuda Group Co-COO Nomura Holdings, Inc. April 4, 2019 NOMURA Connecting Markets East & West Nomura#21 Rebuilding our global business platform Radical Simplification of Operating Model Overhaul business and regional matrix structure Simplify Corporate structure NOMURA Wholesale 2 Transform business 3 portfolio Pivot to client businesses and growth areas Reduce lower growth, lower profitability businesses (Flow businesses, etc.) Right-size platform in EMEA Pursue growth in large single markets ✓ Expand business with corporate clients Strengthen Origination businesses including Advisory, Solutions, Financing ✓ Increase profitability by using Al for Flow Trading $1bn cost reduction Cut costs by $1bn (~19%) compared to FY2017/18 over medium term - Over 60% to be completed by end FY2019/20 $0.3-0.4bn revenue upside Up to 60% by growing client businesses => P11 (Solutions, Advisory, etc..) 40% driven by technology => P12 (Trading efficiencies using Al, etc.) Build Wholesale platform that delivers consistent pretax income of $1.0bn 1#3Challenges facing Wholesale ■Fixed Income revenue declining against market backdrop Cost flexibility constrained owing to rigid indirect costs Wholesale revenue, costs, PTI (billions of USD) Revenue 2 1 NOMURA 7.0 7.7 7.6 7.2 6.0 6.8 6.5 4.9 -24% Costs 7.5 6.9 6.5 -8% 6.4 5.9 5.6 5.3 5.1 (Direct Costs) 5.1 4.8 4.6 4.5 4.0 3.7 3.5 -11% 3.3 (Indirect Costs¹) 2.4 2.1 2.0 1.9 1.9 1.8 1.8 -1% 1.8 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 1-3Q (Annualized)² PTI -0.5 0.8 1.1 0.7 0.1 1.5 0.9 -0.2 1. 2. Indirect costs include Corporate expenses directly related to Wholesale and other Corporate expenses allocated to Wholesale based on certain criteria. On April 1, 2018, Nomura adopted Accounting Standards Update 2014-09 "Revenue from Contracts with Customers" and revenues and expenses related to certain Execution Services transactions are now shown as net value rather than gross value. As a result, revenues and expenses for FY2018/19 1-3Q declined by approx. 13.4 billion yen. Excluding Goodwill impairment charge of 81 billion yen in Q3 FY 18/19. 2#41 Challenges facing Wholesale 2 NOMURA External factors: Secondary trading environment worsening (billions of USD) Internal factors: Rigid cost structure (billions of USD). Global Wholesale fee-pool1 Wholesale direct costs vs. indirect costs 232 2011-12 Avg. vs. 2018 ■FY12/13 ■FY18/19 1-3Q (Annualized)² Advisory 19 212 200 14% 21 Financing/ 21 13% 4.8 57 -31% Solutions 66 64 11% 3.3 Secondary trading 156 125 115 26% 2011-2012 (Average) 2016 2018 Direct costs -13% 2.1 1.8 Indirect costs Margin compression with electrification Leverage ratios, MiFID-II, other regulatory requirements Shift from active investments to passive Complicated organization structure Remain high indirect costs due to responding to regulatory requirements, lagging peers in reducing costs Behind the curve in strategic digital transformation 1. Source: Coalition, Nomura estimates 2. Excluding goodwill impairment charge of Y81bn in Q3 FY18/19 3#51 Overhaul matrix management structure ■Eliminate the concept of regions to alleviate duplication between business and region ■ Corporate departments will continue to act as management control functions Retail Asset Management Wholesale GM IB Corporate Until April 30, 2019 From May 1, 2019 NOMURA Regions Japan Ae J EMEA Americas Japan Ae J EMEA Americas Retail Asset Management Wholesale GM IB Corporate Significant operational complexity Duplication in business / regional roles Build-up of sticky costs over years Simpler, leaner organizational structure Agile and efficient decision making ■ Enabler of cost reduction across regions 4#61 Simplification of Corporate structure ■Reduce number of functions to create sim pler organization and avoid duplication ■Reduce costs while ensuring speedy decision making 1. Example of Competitor Nomura Model NOMURA New Corporate Model Shared Services (Technology, Operations, Strategy, etc.) Risk Management Shared processes Finance Legal HR ■ Functions: approx. 3~6 ■ Globally aligned Indirect cost ratio 1 -30% Finance Operations Risk Management Legal Compliance HR Corporate Communications Strategy Headquarters IT Internal Audit Functions: 10 (excl. Internal Audit) Regionally aligned Indirect cost ratio¹ ~36% Chief Financial Officer Chief Risk Officer Chief Compliance Officer Chief Strategy Officer Chief Administrative Officer Internal Audit ■ Functions: 5 (excl. Internal Audit) Globally aligned Indirect cost ratio 1 -30% Indirect cost ratio is ratio of Corporate costs to total cost base for Wholesale division LO 5#7NOMURA 2 Transform business portfolio ■Scale-back international Fixed Income, digitize trading platform, shift towards origination business ■De-emphasize platform in EMEA, while increasing focus in growing geographies Shift towards Growing Areas Revenue mix Advisory 4% Primary 12% Solutions / Structured Origination businesses 19% Flow Financing 9% Market Outlook Focus on Growing Regions Cost mix AeJ 19% 20% Americas 45% 49% Secondary- 28% Equities Secondary related businesses EMEA 36% Secondary- Fixed Income 31% 28% Average 1 Target Average 1 Target 1. Average of FY15/16, FY16/17 and FY17/18, exclude some non-core business lines Pursue strategic growth opportunities in China, etc. ■ Collaborate with HNW business ■ Increased penetration with corporate clients ■ Grow Solutions business Simplified Flow Fixed Income ■ Focus on Primary and Solutions Market Outlook 6#82 Right-Size international franchise: Summary of actions ■Right-sizing of international platform ■ Protecting client franchise to ensure sustainable performance Summary of Actions NOMURA Primary Ae J EMEA Americas 1 EMEA Flow business M&A ECM Advisory / Primary 5 DCM / ALF Coverage ☐ Solutions / Structured Flow Financing Cross-Product Repo/ Equity Financing 1 3 Securitized Products G10 Rates 2 G10 FX 4 3 ■ 50% cost reduction ■ Downscale footprint and capital ■ Streamline continental presence 2 International Flow Macro (Rates, FX) Digitization of Flow Fixed Income Optimize part of Rates business while enhancing capabilities as a core product Flow Credit in Americas and EMEA ☐ Shift to risk-light model in Americas and EMEA, dedicated to CFS support ■ Exit from high-yield bonds (maintain ALF support function) Optimize Cash Equities platform ☐ Consolidation of Nomura-Instinet in Asia Secondary Secondary Trading Emerging Markets Flow Credit Non Cash Equities Cash Equities Instinet Exited 2016 Optimize Downscale Maintain/Grow ☐ Leverage Instinet technology in Japan 5 Optimize international Investment Banking ☐ L Optimize ECM in Asia and Americas Optimize coverage banker footprint#91. 2. 2 Right-Size international franchise NOMURA 1 Reshaping and downscaling the EMEA Platform ■ Downscale EMEA Flow Trading excluding areas of our competitive advantage such as Euro Rates ■ Maintain traditional strength in client franchise and increase revenue contribution from origination EMEA Wholesale Revenue mix (illustrative) 2 3 International Flow Fixed Income Resizing ■ Cut Flow Fixed Income direct costs and part of indirect costs by 42% ■ Shift towards more stable business mix ■ Increased focus on digitization Flow Fixed Income¹ direct costs and certain indirect costs² 25%: Stable Secondary Advisory Execution 8% 15%: Flow Secondary Flow Financing 11% 14% Solution 41% 0.8 AeJ Primary 11% EMEA Americas 60%: Origination Flow Fixed Income includes trading, sales and research for Flow Rates, Flow Credit and FX/ EM, excluding Flow Financing and Structured Includes IT and product control expenses allocated directly to Wholesale. -42% 0.5 37% 50% FY 17/18 FY 19/20 Run-rate cost 36% 8#102 Reduction in Wholesale cost base $1bn reduction in Wholesale cost base versus FY 17/18 ■Building flexible cost structures to stay resilient across business and market cycles Wholesale run-rate cost¹ (billions of USD) 6.0 5.0 4.0 3.0 2.0 20 10 1.0 NOMURA 5.6 Instinet soft- dollar accounting change (0.2bn) Indirect costs ■ Direct costs $1bn 0.2 -5.1 0.4 4.7 0.3 4.4 0.0 FY17/18 Pay for performance, actions, etc. (net of investments, etc.) Note: Indirect costs include shared and dedicate corporate costs Cost saves assumes FY18/19 revenue environment continues Excluding goodwill impairment charge of Y81bn in Q3 FY18/19 Excluding restructuring charges, etc. 1. 2. 3. FY18/19 1-3Q² (Annualized) Saves³ FY 19/20 Run-Rate (Excl. restructuring costs, cost increase due to revenue increase, and growth investments) Saves³ 3 Sustainable Run-Rate (Excl. cost increase due to revenue increase and growth investments) 9#11NOMURA 3 Future of Wholesale business ■Client-centric business mix centered on origination Consolidate resources into high profitability businesses with competitive advantage to maximize revenues Efficient operations focused on large single markets China Pursue medium term growth opportunities - Nomura Orient International Securities, first JV majority- owned by a Japanese securities firm Set up Japan-China Industrial Cooperation Fund Strengthen business with corporate clients --------- Grow origination businesses Optimize secondary businesses Japan Enhance businesses with regional financial institutions and corporates Enhance IPO business Americas Focus on businesses / sectors of competitive strengths Enhance cross-border business Client strategy focused on middle market Bring together GM and IB capabilities with particular focus internationally on enhancing cross selling opportunities through CFS ■ Grow business with corporate clients; Deliver consistent earnings Increase revenues from origination businesses ■In secondary business, Rates and Equities will be core businesses in which we aim to strategically enhance our competitiveness Embed Al into flow trading businesses 10#12NOMURA 3 Grow client businesses In addition to financial institutions and institutional investors, focus on growing business with corporate clients to diversify client base and ensure stable business ■Broad service offering for corporate clients led by CFS Client revenue in international region 1. Going forward Other 10% 10% 30% FIG 34% Corporates 15% 20% Institutional (Asset 41% 39% Management, Hedge Funds) FY12/13 FY15/16 1 (Avg.) FY18/19 1-3Q (Annualized) ☐ Grow services for corporate clients through CFS Client approach: Provide broad range of services centered on corporate clients with various business needs (e.g.: Offering FX Solutions unassociated with M&As to IB clients) ■ Products/service: In addition to existing underwriting related businesses (DCM, ECM, ALF) and hedging solutions (Rates, FX, Equities, etc.), expand into services such as infrastructure financing in Americas ■ Maintain/strengthen business for institutional investors and financial institutions Institutional: Use Al in market-making to increase wallet share Agency: Expand product line-up and enhance quants and technology capabilities ■ FIG: Continue to target hedging solutions; grow penetration with Advisory and CFS offering $200 - $300m Revenue Upside 11 Corporates include Sponsor; FIG includes banks, insurers, publics, CBS/SWFs and SSAS; Others include other Divisions and non-institutional clients#133 Pursue growth opportunities by leveraging technology NOMURA Instinet ■FY18/19 1-3Q(Annualized) +19% Target +10% +4% +18% Al Led Flow Market Making Americas AeJ Japan EMEA Revenue Cost +15% -10% Pursue a strategy for further deepening relationships with largest institutions Expansion of BlockCross (acquisition in 2017) platform to Europe and Asia Expansion of software and technology business Joint Venture with Brevan Howard for Al- led market making platform, roll-out in progress $100 - $150m Revenue Upside ☐ Increase hit ratio leveraging Al tools FY18/19 1-3Q Target (Annualized) FY18/19 1-3Q Target (Annualized) KOMAINU DIGITAL Digital Asset Custody Solutions Ledger NOMURA Global Advisors Provide custody solutions for digital assets that meet the needs of institutional investors High-level of security that meets demands of commercial bank clients and can be used for various digital assets 12#14Generating sustainable PTI ■Structural changes to build a platform capable of delivering consistent PTI of around $1bn Wholesale PTI 1. 2. (billions of USD) 1.5 0.9 0.1 0.4 FY16/17 FY17/18 -0.2 FY18/19 1-3Q (Annualized)1 Downscaling unprofitable businesses², pay for performance Excluding Goodwill impairment charge of Y81bn in Q3 FY18/19 Revenue normalization due to scaling back of negative risk-revenue businesses NOMURA ~0.1 Approx. 1.0 0.1 0.5 Business portfolio Pivot towards Growth transformation Run-rate business platform impact of -FY18/19 cost reduction Transform (Simplify organization structure, etc.) Sustainable PTI 13#15Disclaimer NOMURA This document is produced by Nomura Holdings, Inc. ("Nomura"). Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof. 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