#1Investor Day Eiichiro Yamaguchi Head of Retail Nomura Holdings, Inc. May 26, 2017 NOMURA Connecting Markets East & West O Nomura#22020 Retail KPIs NOMURA#32020 Retail KPIs Grow our business by enhancing client trust and satisfaction to become a financial institution many people turn to Retail KPIs to realize our 2020 management vision NOMURA 2020 KPIs FY2016/17 (end Mar) ■ Income before income taxes Y195bn - Y205bn Y74.8bn ■ Retail client assets Y150trn Y107.7trn ■ Recurring revenue Approx. Y150bn Y73.7bn ■ Recurring revenue cost coverage ratio Approx. 50% 25% 2#4Changes to Retail environment NOMURA#5Changes to Retail environment Regulation Trend towards Customer-Oriented Business Conduct Greater disclosure for products and services NOMURA Competition External factors Clients Move from commission based approach to fee based approach given the trend towards lower commissions for investment management products Closer collaboration between banking, trust, and securities arms of other financial groups Other industries entering financial services Shift from savings to asset building ■Technological advances Clients getting older and living longer The coming great wealth transfer Increasingly demanding sophisticated consulting services Changing the way we work Employees Diverse set of values Financial institutions that can win client trust by responding to environmental changes will survive#6Changes to Retail environment Environmental changes Retail strategy NOMURA Regulation Competition External factors Clients Employees ■ Increase Retail client assets ■ Revenue streams resilient to market changes ✓ Increase recurring revenue ✓ Expand consulting business ■Lower breakeven point 5#7Increase Retail client assets NOMURA#8Increase Retail client assets Factors to increase Retail client assets to Y150trn by 2020 (trillions of yen) Corporates and institutions 107.7 100.6 Individuals 59 59 49 NOMURA Promote asset building via shift from savings to investment Market factors 150 Inflows Approx. 23 Insurance, pension, etc. (32%) Approx. I 19 Nomura market share among securities 17% Personal financial assets Y1,800trn (Dec 2016) Cash and deposits (52%) Mar-16 Mar-17 2020 (KPI) *Mar 2020 Assumptions: Nikkei 225 at 25,000 and US$1=Y115 Securities Around Y290trn (16%) Asset building via shift from savings to investment Factors to drive 2020 inflow target (Approx. Y19trn) Promote shift from savings to investment ✓ Increase market share 7#9Increase Retail client assets 1. Organizational and HR strategy 2. Sales strategy 3. Product strategy 4. Services strategy 5. Mass retail strategy NOMURA 8#10Increase Retail client assets 1. Organizational and HR strategy Living longer Worried about the future Closer to our clients Succession of shares in own company Lack of successors Shrinking domestic market Business expansion NOMURA Inheritance and gift taxes Branch office employees attuned to concerns and changing needs of clients Further grow our business by allowing branch managers to make more decisions on their own Total support including executives to deliver best possible value added products and services to our clients Reassign executives along client segments Place stronger emphasis on improvements in client satisfaction as part of employee performance management Add net cash inflow as item to evaluate business expansion#11Increase Retail client assets 2. Sales strategy Branch offices using time efficiently Survey workload of approx. 2,000 people at 28 branches RA:201740118-201740131 Client map NOMURA Average time sales staff spend on each task per day Client interactions Other core tasks 30% 20% 口座数:702 電話:446 34.75% 377 6.95% 0.89% 70 ポップアップをクリックされます アニメーション Non-core tasks 28% Miscellaneous tasks Specialist employees for senior clients 22% Specialist employees for senior clients Foster appropriate relationships Senior clients and their family Financial gerontology research project with Keio University 10#12Increase Retail client assets 3. Product strategy Enhance sales of low risk products Last year was recent high for sales of JGBs for individual investors (trillions of yen) 8 4 2 ااا 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 (fiscal year) New trend in low risk investment trusts (billions of yen) Nomura PIMCO World Income 150 Strategy Fund 100 50 0 201604 201607 (billions of yen) JPMorgan Best Income 41 123 3.0x 201610 201701 201704 145 150 Fund 2.7x 100 53 50 0 201604 201607 201610 201701 201704 NOMURA Client needs Uptick in inquiries on where to place funds following introduction of negative interest rates Demand for products to take the place of deposits Demand for products to build assets over the long term Our product strategy Strengthen sales of low risk products Focus on themes with growth potential for products to build clients' assets over the long term 11#13Increase Retail client assets 3. Product strategy NOMURA Follow goal based approach for discretionary investments Goal based approach Set goals for different stages of clients' life Support clients to achieve their goals while diversifying investments over the long term SMA NOMURA SMA EXECUTIVE WRAP Fund Wrap Nomu Wrap Fund (investment advice) NOMURA NOMURA 野村SMA のむラップ・ファンド エグゼクティブ・ラップ) 野村ファンドラップ FUND のむラップ ファンド WRAP 12#14Increase Retail client assets 4. Services strategy Started new money transfer services from Feb 27 NOMURA Process Clients Instruct 野村證券 Bank NOMURA Deposit funds Make it easier and ease concerns for clients around bank transfers Simple to make instant deposits and large deposits (Max. Y300m per day) Web Plus Loan interest rate slashed from 2.975% to 1.5% Nomura Web Plus Loan Nomura Trust & Banking offers loans to clients on Nomura Home Trade using stocks, investment trusts and discretionary investments as collateral Easier, quicker application and review process Respond to sudden need for funds and prevent client asset outflows 13#15Online services Increase Retail client assets 5. Mass retail strategy: Expand online services Positioning Users Only a tool To date NOMURA Digital advisor Integrate in Going forward Japan's largest online service company #NomuraHomeTrade 野村ホームトレード Jan 2018 Complement face-to-face NOMURA ネット8 コール Trading platform Transfer employee shareholdings Users and people who trade only Check outstanding balance Trading Function Robo advisor Email marketing ΑΙ ΑΡΙ ktha Targeted banners goal base ゴールベース 無料診斷 Follow up based on assets All clients Advisory function Use new and third party technologies になる 14#16Increase Retail client assets 5. Mass retail strategy: initiatives aimed at asset builders NOMURA Leverage our strength in market for company employees Offer broad range of touch points for asset builders NISA Junior NISA NOMURA LIFE & MONEY Jan 2017 Jan 2018 iDeCo 野村ライフ&マネー B あなたの未来 wn EL BORDE 出席できる人がやっている 受けてもレスにしないな 20 EL BORDE Latest articles LOTUR あなたは、負け どっち られているのにやる気が出 デキるリーダーの ONGS Nomura DC Net RENBERGSE Installment-type NISA J-ESOP Website WEBサービス WEBサービスをはじめよう 手数料が 個人型確定挺出年金 200 O ービス A 新規ご加入キャンペーン実施中 三轉轉残高会 会のお手続 DeCo 「お申込みセット」 らくらくケース診断 シミュレーション メリット New content NOMURA ライフプラン情報 その他の役立つ情報 15#17Revenue streams resilient to market changes NOMURA#18Revenue streams resilient to market changes Strengthen consulting business NOMURA Projected revenue composition (billions of yen) 1. 2. Y374.4bn Approx. Y500bn 30 Advertising our service offering 資産運用のこと 不動産のこと Other 24.1 270 Brokerage 257.1 50 Consulting revenue² Consulting revenue² 19.5(5%) 150 Recurring 73.7(20%) revenue FY2016/17 approx. 10% Recurring revenue approx. 30% Mar 2020 assumptions: Nikkei 225 at 25,000, US$1=Y115. FY2019/20 Revenue image Consulting revenues include insurance, real estate, M&A, underwriting, financial consulting, etc. 保険のこと 相続・贈与のこと 大切なことを、 ひとつひとつ。 NOMURA 遺言信託のこと 事業承継のこと ローンのこと それ、野村にきいてみよう。 野村證券 17#19• • • • • Revenue streams resilient to market changes Business succession and estate planning business Balance sheet of individuals Management and consulting for own company shares Financial assets Other assets Succession planning Move own company shares (sell/gift) Set up and utilize asset management company Reorganize family company Issue class shares Set up foundations, etc. Business investment Airplane lease M&A NOMURA Borrowings Introduce professionals Real estate Funds for inheritance Tax payment Own company shares Net assets Family company Asset management company (Operating company) Tax accountants Lawyers Judicial scriveners Others 18#20Revenue streams resilient to market changes Business succession and estate planning business NOMURA Estate planning package Nomura branded package of estate planning services Gift package Package of three services for bestowing gifts Differentiate with new consulting services SERVICE GUIDE 資産承あんしんパック サービスガイド Introduce Estate planning report (edited by Yamada & Partners) Will kit professionals HEARING SHEET ク ヒアリングシート REPORT 遺言キット 資産承継あんしんレポート 野村證券 Application kit Outline of services Gift giving guidebook MOLIC Testamentary trust and estate management Nomura testamentary trusts (野村)の 遺言信託 GUIDEBOOK <野村)の CALTHEME YEAR TAXATION OR GIFT 暦年贈与らくらくパック ドア サービスガイド Full support from drafting notarized documents to executing wills 野村证券 Gift services (transfer order, gift contract templates) Nomura estate management services (野村)の 遺產整理業務 Support clients with specialized expertise from initial consultations about estate planning to actual distribution of assets HIRS 19#21Revenue streams resilient to market changes SME M&A and real estate Sharp rise in number of SME M&A contracts (mandates) 13 37 37 60 60 NOMURA Steady growth in volume and number of real estate sales (billions of yen) 120 117.3 Transaction value 80 --Number of transaction (rhs) 93.4 86 78 H 40 36 40 28 176 185 123 326 233 600 572 478 400 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 200 0 0 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 3 6 Shrinking domestic market, lack of successors How to use funds after sale is major concern Bring in funds from sale by providing the right consulting services Established Corporate Innovation Consulting Dept. to support business growth of unlisted SMEs Increase tie ups to further grow our real estate business Nomura Real Estate Group, Mitsui Fudosan Realty, Sekiwa Real Estate Group, Sekisui House, Daiwa House Industry, etc. Run newspaper advertisements that Nomura does real estate consulting 20 20#22Lower breakeven point NOMURA#23Lower breakeven point Continue to reduce costs focusing on fixed costs (billions of yen) 315 308 300 300 FY14/15 FY15/16 FY16/17 FY19/20 NOMURA Additional fixed cost reduction measures Load Line Project Management resource efficiency project Branch office efficient time use project ✓ Process automation using RPA robot ✓ Reduce IT expenses (use cloud to reduce servers) ✓ Rearrange office space in HQ and branch offices (free address work spaces, etc.) ✓ Central purchasing ✓ Use Jabber to reduce training, meeting and business travel costs N 野村モール コピー用紙 検索 「申請 発注 承認 購買情報 受領 22 22#24Disclaimer 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. Offers to sell, sales, solicitations to buy, or purchases of any securities issued by Nomura or any affiliate thereof may only be made or entered into pursuant to appropriate offering materials or a prospectus prepared and distributed according to the laws, regulations, rules and market practices of the jurisdictions in which such offers or sales may be made. The information and opinions contained in this document have been obtained from sources believed to be reliable, but no representations or warranty, express or implied, are made that such information is accurate or complete and no responsibility or liability can be accepted by Nomura for errors or omissions or for any losses arising from the use of this information. All rights regarding this document are reserved by Nomura unless otherwise indicated. No part of this document shall be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Nomura. This document contains statements that may constitute, and from time to time our management may make "forward-looking statements" within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Any such statements must be read in the context of the offering materials pursuant to which any securities may be offered or sold in the United States. These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control. Actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risk factors, as well as those more fully discussed under Nomura's most recent Annual Report on Form 20-F and other reports filed with the U.S. Securities and Exchange Commission ("SEC") that are available on Nomura's website (http://www.nomura.com) and on the SEC's website (http://www.sec.gov); Important risk factors that could cause actual results to differ from those in specific forward-looking statements include, without limitation, economic and market conditions, political events and investor sentiments, liquidity of secondary markets, level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and size, and the number and timing of transactions. ■ Forward-looking statements speak only as of the date they are made, and Nomura undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. The consolidated financial information in this document is unaudited.#25Nomura Holdings, Inc. www.nomura.com NOMURA