Nomura Securities Co., Ltd. Non-consolidated Balance Sheets
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1 ASSETS Non-consolidated Balance Sheets Nomura Securities Co., Ltd. (Millions of yen) March 31, 2014 March 31, 2015 Increase/(Decrease) Current Assets 12,488,887 13,949,399 1,460,512 Cash and time deposits 915, ,750 (323,747) Deposits with stock exchanges and other segregated cash 16,670 89,906 73,235 Trading assets: 3,858,341 3,949,294 90,954 Trading securities 3,097,103 3,065,753 (31,350) Derivative contracts 761, , ,304 Net receivables arising from pre-settlement date trades 168, , ,072 Margin account assets: 318, ,480 (49,542) Loans to customers in margin transactions 312, ,834 (63,617) Cash collateral to securities finance companies 5,572 19,646 14,075 Loans with securities as collateral: 6,236,656 7,325,001 1,088,345 Cash collateral for securities borrowed 5,537,366 6,725,304 1,187,938 Loans in gensaki transactions 699, ,697 (99,593) Receivables from customers and others 1,045 3,031 1,986 Short-term guarantee deposits 870,524 1,309, ,360 Short-term loans receivable 6,013 4,153 (1,861) Deferred tax assets 47,060 49,581 2,521 Other current assets 50,238 89,407 39,169 Allowance for doubtful accounts (94) (74) 20 Fixed Assets 67,235 68,638 1,403 Tangible fixed assets 1,594 1,502 (92) Intangible fixed assets (124) Investments and others 64,944 66,563 1,619 Investment securities 165 (165) Deferred tax assets 5,671 5,148 (523) Other investments 60,359 62,618 2,260 Allowance for doubtful accounts (1,251) (1,203) 48 TOTAL ASSETS 12,556,123 14,018,037 1,461,914 1
2 (Millions of yen) March 31, 2014 March 31, 2015 Increase/(Decrease) LIABILITIES Current Liabilities 10,362,347 11,805,361 1,443,014 Trading liabilities: 3,711,344 4,080, ,599 Trading securities 3,199,421 3,312, ,715 Derivative contracts 511, , ,884 Margin account liabilities: 43,473 72,509 29,036 Borrowings from securities finance companies 11,900 3,875 (8,026) Customer margin sale proceeds 31,573 68,634 37,061 Borrowings with securities as collateral: 3,619,048 4,538, ,853 Cash collateral for securities loaned 995,985 1,374, ,830 Borrowings in gensaki transactions 2,623,063 3,164, ,023 Payables to customers and others 243, , ,727 Guarantee deposits received 503, , ,093 Short-term borrowings 1,894,300 1,726,200 (168,100) Short-term bonds payable 163, ,400 (41,600) Bond due within one year 34,200 34,200 Accrued income taxes 16,738 21,075 4,336 Accounts payable 47,868 59,801 11,933 Accrued bonuses for employees 51,299 52,455 1,155 Other current liabilities 68,312 71,092 2,781 Long-term Liabilities 1,145,230 1,214,076 68,846 Bonds payable 93,194 53,896 (39,299) Long-term borrowings 915, ,595 61,683 Reserve for retirement benefits 20,985 26,410 5,425 Other long-term liabilities 115, ,176 41,037 Statutory Reserve 11,378 13,820 2,442 Reserve for financial instruments transactions 11,378 13,820 2,442 TOTAL LIABILITIES 11,518,955 13,033,257 1,514,302 NET ASSETS Shareholder's equity 1,035, ,011 (52,024) Common stock 10,000 10,000 Capital reserves 574, ,646 Additional paid-in capital 529, ,579 Other capital reserves 45,067 45,067 Retained earnings 450, ,366 (52,024) Other retained earnings 450, ,366 (52,024) General reserve 63,000 63,000 Retained earnings carried forward 387, ,366 (52,024) Valuation and translation adjustments 2,132 1,769 (364) Deferred gains or losses on hedges 2,132 1,769 (364) TOTAL NET ASSETS 1,037, ,780 (52,388) TOTAL LIABILITIES AND NET ASSETS 12,556,123 14,018,037 1,461,914 2
3 Operating revenue 816, ,268 (1.8) Commissions 481, ,065 (6.4) Net gain on trading 268, , Interests and dividends income 65,485 79, Interest expenses 66,876 89, Net operating revenue 749, ,032 (5.0) Selling, general, and administrative expenses 497, ,637 (3.1) Transaction-related expenses 95,389 87,563 (8.2) Compensation and benefits 201, ,657 (1.1) Rental and maintenance 44,514 42,646 (4.2) Data processing and office supplies 143, ,737 (2.3) Others 12,239 12,034 (1.7) Operating income 252, ,395 (8.7) Non-operating income 927 1, Non-operating expenses 1, (64.8) Ordinary income 251, ,280 (8.2) Special profits 7,686 2,748 (64.2) Gains due to sale of securities 4,551 (100) Gains due to the exemption from payments of sharebased compensation Nomura Securities Co., Ltd. Non-consolidated Income Statements 3,135 2,748 (12.3) Special losses 3,118 2,442 (21.7) Legal reserve for financial instruments transactions 3,118 2,442 (21.7) Income before income taxes 256, ,586 (9.7) Income taxes - current 58,610 82, Income taxes - deferred 39,115 (478) Total income taxes 97,725 81,560 (16.5) Net income 158, ,027 (5.5) 3
4 Nomura Securities Co., Ltd. Quarterly Income Statement from April 1, 2014 to June 30, 2014 from July 1, 2014 to September 30, 2014 from October 1, 2014 to December 31, 2014 from January 1, 2015 to March 31, 2015 (Millions of yen) March 31, 2015 Operating revenue 190, , , , ,268 Commissions 94, , , , ,065 Net gain on trading 71,038 60,062 81,837 57, ,361 Interest and dividend income 24,709 14,741 24,439 15,954 79,842 Interest expenses 26,656 20,242 25,587 16,752 89,236 Net operating revenue 163, , , , ,032 Selling, general and administrative expenses 119, , , , ,637 Transaction-related expenses 19,776 22,848 20,769 24,170 87,563 Compensation and benefits 53,514 48,947 48,823 48, ,657 Rental and maintenance 10,379 10,367 10,298 11,601 42,646 Data processing and office supplies 32,069 34,243 34,360 39, ,737 Other 3,559 2,335 3,240 2,900 12,034 Operating income 44,489 46,475 84,170 55, ,395 Non-operating income 1, ,346 Non-operating expenses Ordinary income 45,456 46,493 84,082 55, ,280 Special profits 1, ,748 Gains due to the exemption from payments of share-based compensation 1, ,748 Special losses ,442 Reserve for securities transactions ,442 Income before income taxes 45,896 46,635 83,837 55, ,586 Income taxes - current 19,441 11,124 42,833 8,639 82,037 Income taxes - deferred (1,810) 1,483 (14,165) 14,014 (478) Total income taxes 17,631 12,607 28,669 22,653 81,560 Net income 28,265 34,028 55,168 32, ,027 4
5 Nomura Securities Co., Ltd. Supplementary Information 1. Commission Revenues (1) Breakdown by Category Brokerage commissions 156, ,828 (23.6) (Stocks) 147, ,689 (25.4) Commissions for underwriting, secondary distribution and solicitation for selling and others for Professional Investors 44,028 40,072 (9.0) (Stocks) 37,800 30,497 (19.3) (Bonds) 6,228 9, Fees for offering, secondary distribution and solicitation for selling and others for Professional Investors 162, ,387 (14.8) (Investment trust certificates) 157, ,490 (13.3) Other commissions 118, , (Investment trust certificates) 59,407 64, Total 481, ,065 (6.4) (2) Breakdown by Product Stocks 189, ,836 (23.4) Bonds 12,721 13, Investment trust certificates 226, ,783 (6.8) Others 53,976 81, Total 481, ,065 (6.4) 2. Net Gain on Trading Stocks 101,441 97,872 (3.5) Bonds and Forex 167, , Total 268, ,
6 3. Stock Trading (excluding futures transactions) Number of shares Amount (Millions of shares or yen, except per share data and percentages) Number of shares Amount Total 192, ,536, , ,038,960 (20.4) (9.6) (Brokerage) 177, ,231, , ,367,357 (22.8) (12.0) (Proprietary Trading) 15,175 18,305,868 16,189 20,671, Brokerage / Total Ratio 92.1% 90.5% 89.4% 88.1% TSE Share 9.0% 10.7% 8.8% 10.9% Number of shares Amount Brokerage commission per share (yen) Underwriting, Subscription, and Distribution Underwriting Stocks (number of shares) (64.7) (yen amount) 991, ,819 (29.3) Bonds (face value) 5,923,766 6,276, Investment trust certificates (yen amount) (Millions of shares or yen, except percentages) Subscription and Distribution* Stocks (number of shares) (yen amount) Bonds (face value) Investment trust certificates (yen amount) (62.0) 1,128, ,074 (28.2) 2,732,438 3,173, ,033,012 26,464, *Include secondary offering, private placement, and solicitation for selling and others for professional investors. 5. Capital Adequacy Ratio (Rounded down to millions of yen, except percentages) March 31, 2014 March 31, 2015 Increase/(Decrease) Tier I (A) 835, ,011 (152,023) Valuation and translation adjustments 2,132 1,768 (363) Tier II Statutory reserves 11,377 13,819 2,442 Allowance for doubtful accounts (20) Subordinated debts 329, ,095 79,901 Total (B) 342, ,757 81,959 Illiquid Asset (C) 81,908 94,297 12,388 Net Capital (A) + (B) - (C) = (D) 1,095,924 1,013,470 (82,453) Market risk 100, ,160 17,039 Risk Counterparty risk 159, ,245 16,302 Basic risk 141, ,020 (2,780) Total (E) 401, ,426 30,561 Capital Adequacy Ratio (D)/(E) % % (38.4) % 6
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