Investment Bank. Nomura Holdings, Inc. June 3, 2011

Transcription

1 Becoming a Top Tier Global Investment Bank Nomura Holdings, Inc. June 3, 2011

2 Contents 1. Essence of Investment Banking 2. Progress After Lehman Integration 3. Strategy Going Forward

3 1. Essence of Investment Banking

4 1. Essence of Investment Banking Building the IB Business Post-financial crisis, Investment Banking has returned to a Client-driven business model Building a Successful Investment Banking Franchise Establish Coverage Platform Identify Clients Needs => Need for medium to long-term relationship and commitment to our clients Strengthen Execution Capabilities Offer Tailor-made Products Build and Monetize Pipeline 4

5 1. Essence of Investment Banking Contribution to the Firm IB aims to be a key revenue driver for the entire Nomura Group Clients Deal Origination (Underwriting, Advisory, etc.) Gross Revenue (Revenues to the Firm) Nomura IB Net Revenue (Post profit-sharing) Distribution of product by other Divisions etc (Profit-sharing with other divisions, etc) Retail Investors Institutional Investors Financial / Public Institutions Corporate Clients 5

6 1. Essence of Investment Banking Nomura Group Business Segments and IB Financial Disclosure Nomura Group Business Segments < FY09/10 > < FY10/11 > Wholesale Division Retail Retail established in Fixed Income April 2010 Asset Management Global Markets Equity Fixed Income Investment Banking Merchant Banking Asset Management Other Wholesale Global Markets Investment Banking Equity Other Investment Banking Other IB Financial Disclosure < FY09/10 > < FY10/11 > FY2009/10 Gross Revenue disclosure from ( bn) FY2010/11 FY2010/11 Investment banking (gross) Allocation to other divisions 82.6 Investment banking (net) Other 9.4 Net revenue Net revenue Non-interest expenses Non-interest expenses Income (loss) before income taxes 1.7 Income (loss) before income taxes ( bn) 6

7 2. Progress After Lehman Integration

8 2. Progress After Lehman Integration Maintaining i i Dominant Market Share in Japan Japan related M&A, ECM, DCM League Tables (FY2010/11) Financial Advisor / Bookrunner Share (%) # Deals 1 Nomura $64 bn M&A 1 2 JP Morgan $37 bn MUFJ Morgan Stanley $31 bn Nomura $21 bn ECM 2 Goldman Sachs $5 bn Daiwa $5 bn Nomura 2.3 tr DCM 2 2 Mizuho 1.9 tr Daiwa 1.6 tr Note: 1. Excludes real estate transactions 2. All corporate debt (excludes government, agencies and government sponsored enterprises), includes self-led issues Source: M&A & ECM league tables per Thomson Reuters, DCM league table per Thomson DealWatch 8

9 2. Progress After Lehman Integration Gaining i Traction in International ti Large Transactions International ECM 1 International M&A 2 Client Region Product 3 ($m) Target Acquirer Region ($m) FY 09/10 Maxis AEJ IPO 3,315 United Company Rusal AEJ IPO 2,238 Hynix Semiconductor AEJ PO 814 First Quantum Minerals Americas CB 500 Givaudan EMEA PO 383 Power Regal Group AEJ CB 281 Unitymedia Liberty Media Corp EMEA 5,195 Sepracor Shenzhen Dvlp Bank Dainippon Sumitomo Pharma Ping An Insurance(Group) Americas/ Japan 2,357 AEJ 2,279 Kumho Industrial Creditors AEJ 2,210 Oriental Brewery Investor Group AEJ 1,800 Aircel Ltd-Mobile Towers CNIL AEJ 1,704 FY 10/11 Client Region Product ($m) Target Acquirer Region BBVA EMEA PO 6,861 GDF Suez Energy Europe International Power EMEA 25,056 Nordea Bank EMEA PO 2,931 Bank Zachodni WBK Banco Santander EMEA 5,629 Billion Express Investments (China Unicom) Chongqing Rural Commercial Bank AEJ CB 1,839 AEJ IPO 1,697 Legrand EMEA PO 1,608 Atlantia EMEA PO 838 AIG Star / AIG Edison Talecris Biotherapeutics Dimension Data Holdings Prudential Financial Grifols Japan/ Americas Americas / EMEA EMEA / Japan Dimension Data Nippon Telegraph EMEA / and Telephone ($m) 4,800 4,016 2,730 Tanjong Tanjong Capital AEJ 2,440 Note: 1. Excludes Japan originated transactions, 2. Excludes Japan domestic transactions, 3. Thomson Reuters 9

10 2. Progress After Lehman Integration Growing the Leveraged Finance and Solutions Business Leverage EMEA s expertise in other regions EMEA Leveraged Finance Solutions Business Risk Solutions Fixed Income related solutions (Rates, FX, etc) Equity Solutions Equity related solutions (Equity hedging, Margin loans, etc) Insurance Solutions Insurance risk Japan AEJ Americas 10

11 2. Progress After Lehman Integration International ti Pipeline (Since 2010) EMEA Stable pipeline levels While pipeline drops when large transactions are executed, overall value has been gradually increasing AEJ Large pipeline increase in line with fee pool growth Americas Pipeline has been steadily growing with the development of our coverage platform 11

12 3. Strategy Going Forward

13 3. Strategy Going Forward R Room tto IIncrease M Market k t Sh Share iin International I t ti l Regions R i Global Fee Pool (3 year average1) 4.2% Competitors 1.0% AEJ $8.2bn EMEA 5.3% Competitors $19.4bn 1.3% Americas $30.6bn Japan $3.3bn 2 7 0% Competitors 7.0% C 0.2% Average market share (past 3 years1) 2.9% Competitors % 2% Note: 1. FY08/09 FY10/11 2. Average market share of nine competitors (Bank of America Merrill Lynch, Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley, UBS) Source: Dealogic 13

14 3. Strategy Going Forward Increasing International ti Revenues Enhance client coverage in select industries - FIG, Natural Resources/Power, Consumer/Retail Americas Focus on increasing quality cross-border M&A transactions Capitalize on financial sponsors related opportunities Develop the high-margin solutions business AEJ Increase revenue in major growth markets such as China and Australia Elevate the ECM and M&A businesses to the next level EMEA Continue to leverage our expertise in the leveraged finance and solutions business 14

15 Appendix

16 Appendix 2010 League Tables Financial Advisor EMEA ($bn) Share ( %) # Deals 1 Morgan Stanley JP Morgan Goldman Sachs Deutsche Bank Credit Suisse UBS Lazard BofA Merrill Lynch Rothschild Citi Financial Advisor M&A AEJ ($bn) Share (%) # Deals 1 Goldman Sachs UBS Morgan Stanley Credit Suisse Macquarie Group Deutsche Bank BofA Merrill Lynch Citi Barclays Capital JP Morgan Financial Advisor Americas ($bn) Share (%) # Deals 1 Morgan Stanley Goldman Sachs JP Morgan Credit Suisse Barclays Capital BofA Merrill Lynch Citi Deutsche Bank UBS Lazard Nomura Nomura Nomura Note: Red outline represents our target range for league table rankings Source: Thomson Reuters (2010/1/1 2010/12/31) 16

17 Appendix 2010 League Tables ECM Book Runner EMEA AEJ Americas ($bn) Share ( %) # Issues 1 Goldman Sachs Book Runner ($bn) Share ( %) # Issues 1 Goldman Sachs Book Runner ($bn) Share ( %) # Issues 1 Morgan Stanley Morgan Stanley JP Morgan Deutsche Bank BofA Merrill Lynch UBS Credit Suisse Citi Barclays Capital Societe Generale Morgan Stanley UBS JP Morgan Credit Suisse BofA Merrill Lynch Citi Deutsche Bank Macquarie Group CIMB Group BofA Merrill Lynch JP Morgan Citi Goldman Sachs Barclays Capital Credit Suisse Deutsche Bank UBS Wells Fargo Nomura Nomura Nomura Note: Red outline represents our target range for league table rankings Source: Thomson Reuters (2010/1/1 2010/12/31) 17