Nomura : Consolidated Results of Operations First quarter, year ending March 2022

Consolidated Results of Operations

First quarter, year ending March 2022

(US GAAP)

Nomura Holdings, Inc.

July 2021

Connecting Markets East & West

© Nomura

Outline

Presentation

• Executive summary (p. 2)
• Overview of results (p. 3)
• Business segment results (p. 4)
• Retail (p. 5-6)
• Investment Management (p. 7-8)
• Wholesale (p. 9-11)
• Non-interestexpenses (p. 12)
• Robust financial position (p. 13)
• Funding and liquidity (p. 14)

Financial Supplement

• Consolidated balance sheet (p. 16)
• Value at risk (p. 17)
• Consolidated financial highlights (p. 18)
• Consolidated income (p. 19)
• Main revenue items (p. 20)
• Consolidated results: Income (loss) before income taxes by segment and region (p. 21)
• Segment "Other" (p. 22)
• Retail related data (p. 23-26)
• Investment Management related data (p. 27-28)
• Wholesale related data (p. 29)
• Number of employees (p. 30)

Executive summary

FY2021/22 1Q highlights

• Income before income taxes: Y78.5bn; Net income1: Y48.5bn; ROE2: 7.1%; EPS3: Y15.59
• • Three segment income (loss) before income taxes recovered from last quarter; Investment Management had a strong quarter; Although Wholesale performance was again impacted by transactions with a US client, we exited all remaining positions, while Fixed Income booked higher revenues QoQ and Investment Banking continued to see strong momentum
  • Segment Other performance also improved mainly due to upturn in gain/loss related to affiliate companies (impairment loss booked last quarter no longer present and realized gains booked from sale of equity stake)4
• Three segment income before income taxes of Y35.6bn Retail
• • Efforts to grow client assets resulted in net inflows into investment trusts and discretionary investments each month
  • Retail client assets at record high of Y127trn driven by positive contribution from net inflows of cash and securities
  • Retail clients continued to sit on the sidelines over fears of another wave of the pandemic and a sharp decline in share prices in early May, leading to lower sales of stocks and investment trusts QoQ

Investment Management

- Inflows lifted AuM to record high of Y65.8trn

- Investment gain/loss up significantly on realized and unrealized gains of about Y24bn due to IPO of

Nomura Capital Partners investee company and American Century Investments related gain/loss

Income (loss) before income taxes and net income (loss)1

Firmwide		(billions of yen)
181.8
142.5	131.3
83.6	98.4	78.5
	67.6	48.5

Income (loss) before income taxes	-155.4
Net income (loss)
-166.1

	FY2020/21		FY2021/22
1Q	2Q	3Q	4Q	1Q

Three segment income (loss) before income taxes6

125.1	126.7
	100.4

contribution of Y12.9bn

Wholesale

- Booked additional loss arising from transactions with a US client of Y65.4bn5

Wholesale

35.6

-104.5

-	Excluding this trading loss, Global Markets revenues declined 8% QoQ; Equities revenues slowed,
	while Fixed Income revenues grew driven by spread products such as Credit and Securitized Products
-	Investment Banking revenues remained strong for third straight quarter on contributions from M&A
	business and solid performance in ECM/DCM

Investment Management

Retail

	FY2020/21		FY2021/22
1Q	2Q	3Q	4Q	1Q

1.	Net income (loss) attributable to Nomura Holdings shareholders.	2.	Calculated using annualized net income attributable to Nomura Holdings shareholders for each period
3.	Diluted net income (loss) attributable to Nomura Holdings shareholders per share.	2
4.	Booked impairment charge of Y47.7bn in FY2020/21 4Q related to investment in Nomura Real Estate Holdings, and booked realized gain on partial sale of stake in Nomura Research Institute of Y36.2bn in FY2021/22 1Q.
5.	Of Y65.4bn additional loss arising from transactions with a US client, Y56.1bn booked as trading loss in Equities revenues and Y9.3bn booked as loan loss provision in expenses.
6.	On April 1, 2021, Asset Management and Merchant Banking were dissolved and Investment Management newly established. As a result, historical figures have been reclassified in line with the disclosure format for FY2021/22.

Overview of results

Highlights

(billions of yen, except EPS and ROE)

Net revenue

Non-interest expenses

Income (loss) before income

taxes

Net income (loss)1

EPS2

ROE3

FY2021/22FY2020/21

1Q4Q

353.3170.0

274.7336.1

78.5-166.1

48.5-155.4

Y15.59-Y50.78

7.1%		-

QoQ

108%

-18%

-

-

-

FY2020/21

1Q

460.7

278.9

181.8

142.5

Y45.65

21.0%

YoY

-23%

-2%

-57%

-66%

-66%

1. Net income (loss) attributable to Nomura Holdings shareholders.
2. Diluted net income (loss) attributable to Nomura Holdings shareholders per share.
3. Calculated using annualized net income attributable to Nomura Holdings shareholders for each period

3

Business segment results

Net revenue and income (loss) before income taxes1

	(billions of yen)				FY2021/22			FY2020/21		QoQ			FY2020/21		YoY
						1Q			4Q				1Q
	Net revenue	Retail			85.0			96.8		-12%			81.1		5%
			Investment Management			63.5			54.0		17%			39.7		60%
			Wholesale			132.8			-0.8		-			248.7		-47%
			Subtotal			281.2			150.1		87%			369.4		-24%
			Other*			68.7			15.3		4.5x			89.0		-23%
			Unrealized gain (loss) on investments in equity		3.4			4.6		-27%			2.3		46%
			securities held for operating purposes
			Net revenue			353.3			170.0		108%			460.7		-23%
	Income (loss) Retail			19.0			26.1		-27%			15.1		26%
	before income	Investment Management			44.9			35.2		27%			22.2		103%
	taxes
			Wholesale			-28.4			-165.9		-			87.9		-
			Subtotal			35.6			-104.5		-			125.1		-72%
			Other*			39.6			-66.2		-			54.4		-27%
			Unrealized gain (loss) on investments in equity		3.4			4.6		-27%			2.3		46%
			securities held for operating purposes
			Income (loss) before income taxes		78.5			-166.1		-			181.8		-57%
	*Additional information on "Other" (1Q)	 Realized gain on partial sale of stake in the affiliate company, Nomura Research Institute (Y36.2bn)
				 Income related to economic hedging (Y3.4bn)
				 Loss on changes to own and counterparty credit spread relating to Derivatives (Y1.8bn)
1. On April 1, 2021, Asset Management and Merchant Banking were dissolved and Investment Management newly established. As a result, historical figures have been reclassified in line with the disclosure format	4
	for FY2021/22.