Edgar Filing: NOMURA HOLDINGS INC

FORM 6-K

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

Commission File Number: 1-15270

For the month of July 2016

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Information furnished on this form:

EXHIBIT


Exhibit Number

1.		Financial Summary – three months ended June 30, 2016

The registrant hereby incorporates Exhibit 1 to this report on Form 6-K by reference in the prospectus that is part of Registration Statement on Form F-3 (Registration No. 333-191250) of the registrant and Nomura America Finance, LLC, filed with the Securities and Exchange Commission on September 19, 2013.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	NOMURA HOLDINGS, INC.

Date: July 28, 2016	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Three Months Ended June 30, 2016 (U.S. GAAP)


Date:		July 28, 2016
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Nagoya
		(Overseas) New York, Singapore
Representative:		Koji Nagai
		Group CEO, Nomura Holdings, Inc.
For inquiries:		Michio Okazaki
		Managing Director, Head of Management Accounting and Investor Relations, Nomura Holdings, Inc.
		Tel: (Country Code 81) 3-5255-1000
		URL: http://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results


	(Rounded to nearest million)

	For the three months ended June 30
	2015						2016
	(Millions of yen, except per share data)
				% Change from June 30, 2014						% Change from June 30, 2015
Total revenue		508,448			10.0	%		418,412		(17.7%)
Net revenue		424,032			14.3	%		338,480		(20.2%)
Income before income taxes		106,012			105.2	%		62,765		(40.8%)
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		68,742			246.1	%		46,825		(31.9%)
Comprehensive income		89,646			612.7	%		(46,781	)	— %
Basic-Net income attributable to NHI shareholders per share (Yen)		19.11						13.00
Diluted-Net income attributable to NHI shareholders per share (Yen)		18.65						12.71
Return on shareholders’ equity-annualized		10.0	%					7.0	%

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position


	At March 31			At June 30
	2016			2016
	(Millions of yen, except per share data)
Total assets		41,090,167			42,918,447
Total equity		2,743,015			2,699,280
Total NHI shareholders’ equity		2,700,239			2,642,277
Total NHI shareholders’ equity as a percentage of total assets		6.6	%		6.2	%
Total NHI shareholders’ equity per share (Yen)		748.32			736.47

2. Cash Dividends


	For the year ended March 31
	2016		2017		2017 (Plan)
	(Yen amounts)
Dividends per share
Dividends record dates
At June 30		—		—		—
At September 30		10.00		—		Unconfirmed
At December 31		—		—		—
At March 31		3.00		—		Unconfirmed
For the year		13.00		—		Unconfirmed

Note: Nomura plans to forgo dividend distribution for Q3 of fiscal year 2017. Fiscal year 2017 Q2 and Q4 dividend amount are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2017”.

3. Earnings Forecasts for the year ending March 31, 2017

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, does not present earnings forecasts.

Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in Specified Subsidiaries accompanying changes in scope of consolidation.)

(2) Adoption of the simplified and particular accounting treatments: None

(3) Changes in accounting policies

Changes in accounting policies due to amendments to the accounting standards : Yes

Changes in accounting policies due to other than a) : None

(4) Number of shares issued (common stock)


	At March 31		At June 30
	2016		2016
Number of shares outstanding (including treasury stock)		3,822,562,601		3,822,562,601
Number of treasury stock		214,170,602		234,811,125

	For the three months ended June 30
	2015		2016
Average number of shares outstanding (year-to-date)		3,596,764,719		3,600,920,503

*Quarterly review

The review process of the quarterly consolidated financial statements for this period has not been completed by the external auditors at the point of disclosing this financial summary. As a result of such review, certain of the information set forth herein could be subject to revision, possibly material, in the quarterly securities report for the period ended June 30, 2016, an English translation of which the registrant plans to furnish on Form 6-K in due course.

Table of Contents for the Accompanying Materials


1. Qualitative Information of the Quarterly Consolidated Results			P.2

(1) Consolidated Operating Results			P.2
(2) Consolidated Financial Position			P.4
(3) Consolidated Earnings Forecasts			P.4

2. Notes to the Summary Information			P.5

(1) Changes in Accounting Policies			P.5

3. Quarterly Consolidated Financial Statements			P.5

(1) Consolidated Balance Sheets			P.6
(2) Consolidated Statements of Income			P.8
(3) Consolidated Statements of Comprehensive Income			P.9
(4) Note with respect to the Assumption as a Going Concern			P.9
(5) Segment Information – Operating Segment			P.10
(6) Significant Changes in Equity			P.11

4. Supplementary Information			P.12

(1) Consolidated Statements of Income – Quarterly Comparatives			P.12
(2) Business Segment Information – Quarterly Comparatives			P.13
(3) Unconsolidated Quarterly Financial Statements [Japanese GAAP]			P.14
(4) Other			P.14

1.	Qualitative Information of the Quarterly Consolidated Results

(1)

Consolidated Operating Results

U.S. GAAP


	Billions of yen						% Change
	For the three months ended						(B-A)/(A)
	June 30, 2015 (A)			June 30, 2016 (B)			(B-A)/(A)
Net revenue		424.0			338.5			(20.2	)
Non-interest expenses		318.0			275.7			(13.3	)

Income (loss) before income taxes		106.0			62.8			(40.8	)
Income tax expense		36.4			15.8			(56.6	)

Net income (loss)		69.6			47.0			(32.6	)

Less: Net income (loss) attributable to noncontrolling interests		0.9			0.1			(83.5	)

Net income (loss) attributable to NHI shareholders		68.7			46.8			(31.9	)

Return on shareholders’ equity-annualized		10.0	%		7.0	%		—

Note: Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (collectively, “Nomura”) reported net revenue of 338.5 billion yen for the three months ended June 30, 2016, a decrease of 20.2% from the same period in the prior year. Non-interest expenses decreased by 13.3% from the same period in the prior year to 275.7 billion yen. Income before income taxes was 62.8 billion yen and net income attributable to NHI shareholders was 46.8 billion yen for the three months ended June 30, 2016.

Segment Information


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2015 (A)		June 30, 2016 (B)		(B-A)/(A)
Net revenue		415.0		349.0		(15.9	)
Non-interest expenses		318.0		275.7		(13.3	)

Income (loss) before income taxes		97.0		73.3		(24.4	)

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the three months ended June 30, 2016 was 349.0 billion yen, a decrease of 15.9% from the same period in the prior year. Non-interest expenses decreased by 13.3% from the same period in the prior year to 275.7 billion yen. Income before income taxes was 73.3 billion yen for the three months ended June 30, 2016. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

<Business Segment Results>

Operating Results of Retail


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2015 (A)		June 30, 2016 (B)		(B-A)/(A)
Net revenue		130.7		83.8		(35.9	)
Non-interest expenses		79.8		75.1		(5.9	)

Income (loss) before income taxes		50.9		8.7		(83.0	)

Net revenue decreased by 35.9% from the same period in the prior year to 83.8 billion yen, primarily due to decreasing commissions from distribution of investment trusts and brokerage. Non-interest expense decreased by 5.9% to 75.1 billion yen. As a result, income before income taxes decreased by 83.0% to 8.7 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2015 (A)		June 30, 2016 (B)		(B-A)/(A)
Net revenue		26.9		25.9		(3.7	)
Non-interest expenses		15.2		13.7		(9.7	)

Income (loss) before income taxes		11.7		12.2		4.2

Net revenue decreased by 3.7% from the same period in the prior year to 25.9 billion yen. Non-interest expense decreased by 9.7% to 13.7 billion yen. As a result, income before income taxes increased by 4.2% to 12.2 billion yen. Assets under management were 37.3 trillion yen as of June 30, 2016.

Operating Results of Wholesale


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2015 (A)		June 30, 2016 (B)		(B-A)/(A)
Net revenue		205.2		190.9		(6.9	)
Non-interest expenses		185.5		144.3		(22.2	)

Income (loss) before income taxes		19.7		46.6		137.1

Net revenue decreased by 6.9% from the same period in the prior year to 190.9 billion yen. Non-interest expense decreased by 22.2% to 144.3 billion yen. As a result, income before income taxes increased by 137.1% from the same period in the prior year to 46.6 billion yen.

Other Operating Results


	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30, 2015 (A)		June 30, 2016 (B)		(B-A)/(A)
Net revenue		52.2		48.4		(7.3	)
Non-interest expenses		37.5		42.6		13.6

Income (loss) before income taxes		14.7		5.8		(60.8	)

Net revenue was 48.4 billion yen. Income before income taxes was 5.8 billion yen.

(2)

Consolidated Financial Position

Total assets as of June 30, 2016 were 42,918.4 billion yen, an increase of 1,828.3 billion yen compared to March 31, 2016, mainly due to the increase in Securities purchased under agreements to resell and Trading assets. Total liabilities as of June 30, 2016 were 40,219.2 billion yen, an increase of 1,872.0 billion yen compared to March 31, 2016, mainly due to the increase in Securities sold under agreements to repurchase. Total equity as of June 30, 2016 was 2,699.3 billion yen, a decrease of 43.7 billion yen compared to March 31, 2016.

(3)

Consolidated Earnings Forecasts

2.	Notes to the Summary Information

(1)

Changes in Accounting Policies (UNAUDITED)

Recognition and measurement of financial assets and financial liabilities

On April 1, 2016, Nomura early adopted the presentation change of own credit adjustments provided by Accounting Standards Update 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities.” Accordingly, unrealized changes in the fair value of financial liabilities elected for the fair value option attributable to instrument-specific credit risk (“own credit adjustments”) are now presented separately in other comprehensive income rather than through earnings. As a result of this adoption based on the modified retrospective application, the beginning balance of Retained earnings has been adjusted.

Consolidation analysis

On April 1, 2016, Nomura adopted Accounting Standard Update 2015-02 “Amendments to the Consolidation Analysis.” Accordingly, the consolidation guidance applied to certain investment companies, money market funds, qualifying real estate funds and similar entities has been changed. As a result of this adoption based on the modified retrospective application, the beginning balance of Noncontrolling interests has been adjusted.

Presentation of debt issuance costs

On April 1, 2016, Nomura adopted Accounting Standard Update 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” Accordingly, debt issuance costs related to a recognized debt liability, which used to be presented as a separate asset, are now presented as a direct deduction from the carrying amount of that debt liability. These accounting changes have not had a material impact on Nomura’s consolidated financial statements.

3.	Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 23, 2016) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 23, 2016) for the year ended March 31, 2016.

The review process of the quarterly consolidated financial statements for this period has not been completed by the external auditors.

(1)

Consolidated Balance Sheets (UNAUDITED)


	Millions of yen
	March 31, 2016			June 30, 2016			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		3,476,261			1,950,897			(1,525,364	)
Time deposits		196,632			163,039			(33,593	)
Deposits with stock exchanges and other segregated cash		225,950			248,669			22,719

Total cash and cash deposits		3,898,843			2,362,605			(1,536,238	)

Loans and receivables:
Loans receivable		1,605,603			1,484,536			(121,067	)
Receivables from customers		210,844			181,942			(28,902	)
Receivables from other than customers		1,156,608			1,516,854			360,246
Allowance for doubtful accounts		(3,477	)		(3,533	)		(56	)

Total loans and receivables		2,969,578			3,179,799			210,221

Collateralized agreements:
Securities purchased under agreements to resell		9,205,165			11,189,830			1,984,665
Securities borrowed		5,872,495			5,760,815			(111,680	)

Total collateralized agreements		15,077,660			16,950,645			1,872,985

Trading assets and private equity investments:
Trading assets*		16,379,424			17,519,194			1,139,770
Private equity investments		30,578			27,684			(2,894	)

Total trading assets and private equity investments		16,410,002			17,546,878			1,136,876

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥402,599 million as of March 31, 2016 and ¥396,766 million as of June 30, 2016)		355,507			348,106			(7,401	)
Non-trading debt securities*		870,812			879,487			8,675
Investments in equity securities*		137,970			123,854			(14,116	)
Investments in and advances to affiliated companies*		395,284			391,031			(4,253	)
Other		974,511			1,136,042			161,531

Total other assets		2,734,084			2,878,520			144,436

Total assets		41,090,167			42,918,447			1,828,280

*	Including securities pledged as collateral


			Millions of yen
			March 31, 2016			June 30, 2016			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				662,902			722,950			60,048
Payables and deposits:
Payables to customers				688,196			715,092			26,896
Payables to other than customers				1,337,931			1,736,240			398,309
Deposits received at banks				2,222,991			1,103,619			(1,119,372	)

Total payables and deposits				4,249,118			3,554,951			(694,167	)

Collateralized financing:
Securities sold under agreements to repurchase				14,192,309			17,102,372			2,910,063
Securities loaned				1,937,009			2,010,872			73,863
Other secured borrowings				476,273			402,893			(73,380	)

Total collateralized financing				16,605,591			19,516,137			2,910,546

Trading liabilities				7,499,335			7,528,501			29,166
Other liabilities				1,200,647			1,137,392			(63,255	)
Long-term borrowings				8,129,559			7,759,236			(370,323	)

Total liabilities				38,347,152			40,219,167			1,872,015


Equity
NHI shareholders’ equity:
Common stock
Authorized	-	6,000,000,000 shares
Issued	-	3,822,562,601 shares as of March 31, 2016 and 3,822,562,601 shares as of June 30, 2016
Outstanding	-	3,608,391,999 shares as of March 31, 2016 and 3,587,751,476 shares as of June 30, 2016		594,493			594,493			—
Additional paid-in capital				692,706			689,859			(2,847	)
Retained earnings				1,516,577			1,542,199			25,622
Accumulated other comprehensive income				44,980			(28,615	)		(73,595	)

Total NHI shareholders’ equity before treasury stock				2,848,756			2,797,936			(50,820	)
Common stock held in treasury, at cost -
214,170,602 shares as of March 31, 2016 and
234,811,125 shares as of June 30, 2016				(148,517	)		(155,659	)		(7,142	)

Total NHI shareholders’ equity				2,700,239			2,642,277			(57,962	)

Noncontrolling interests				42,776			57,003			14,227

Total equity				2,743,015			2,699,280			(43,735	)

Total liabilities and equity				41,090,167			42,918,447			1,828,280

(2)

Consolidated Statements of Income (UNAUDITED)


	Millions of yen					% Change
	For the three months ended
	June 30, 2015 (A)		June 30, 2016 (B)			(B-A)/(A)
Revenue:
Commissions		130,343		76,255			(41.5	)
Fees from investment banking		24,497		17,313			(29.3	)
Asset management and portfolio service fees		59,940		52,612			(12.2	)
Net gain on trading		124,748		140,143			12.3
Gain (loss) on private equity investments		1,154		(13	)		—
Interest and dividends		113,649		106,551			(6.2	)
Gain (loss) on investments in equity securities		9,186		(9,966	)		—
Other		44,931		35,517			(21.0	)

Total revenue		508,448		418,412			(17.7	)
Interest expense		84,416		79,932			(5.3	)

Net revenue		424,032		338,480			(20.2	)

Non-interest expenses:
Compensation and benefits		155,896		125,949			(19.2	)
Commissions and floor brokerage		34,243		24,172			(29.4	)
Information processing and communications		47,934		44,249			(7.7	)
Occupancy and related depreciation		18,729		18,228			(2.7	)
Business development expenses		8,330		8,296			(0.4	)
Other		52,888		54,821			3.7

Total non-interest expenses		318,020		275,715			(13.3	)

Income before income taxes		106,012		62,765			(40.8	)
Income tax expense		36,368		15,791			(56.6	)

Net income		69,644		46,974			(32.6	)

Less: Net income attributable to noncontrolling interests		902		149			(83.5	)

Net income attributable to NHI shareholders		68,742		46,825			(31.9	)

Per share of common stock:

	Yen					% Change
Basic-
Net income attributable to NHI shareholders per share		19.11		13.00			(32.0	)

Diluted-
Net income attributable to NHI shareholders per share		18.65		12.71			(31.8	)

(3)

Consolidated Statements of Comprehensive Income (UNAUDITED)


	Millions of yen						% Change
	For the three months ended
	June 30, 2015 (A)			June 30, 2016 (B)			(B-A)/(A)
Net income		69,644			46,974			(32.6	)
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		20,549			(81,335	)		—
Deferred income taxes		(240	)		4,678			—

Total		20,309			(76,657	)		—

Defined benefit pension plans:
Pension liability adjustment		(522	)		(333	)		—
Deferred income taxes		330			57			(82.7	)

Total		(192	)		(276	)		—

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		(35	)		(2,062	)		—
Deferred income taxes		(80	)		(429	)		—

Total		(115	)		(2,491	)		—

Own Credit Adjustments:
Own Credit Adjustments:		—			(17,253	)		—
Deferred income taxes		—			2,922			—

Total		—			(14,331	)		—

Total other comprehensive income (loss)		20,002			(93,755	)		—

Comprehensive income		89,646			(46,781	)		—
Less: Comprehensive income attributable to noncontrolling interests		1,480			(717	)		—

Comprehensive income attributable to NHI shareholders		88,166			(46,064	)		—

(4)

Note with respect to the Assumption as a Going Concern (UNAUDITED)

Not applicable.

(5)

Segment Information – Operating Segment (UNAUDITED)

The following table shows business segment information and reconciliation items to the consolidated statements of income.


	Millions of yen					% Change
	For the three months ended
	June 30, 2015 (A)		June 30, 2016 (B)			(B-A)/(A)
Net revenue

Business segment information:
Retail		130,689		83,751			(35.9	)
Asset Management		26,917		25,934			(3.7	)
Wholesale		205,184		190,932			(6.9	)

Subtotal		362,790		300,617			(17.1	)
Other		52,244		48,411			(7.3	)

Net revenue		415,034		349,028			(15.9	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		8,998		(10,548	)		—

Net revenue		424,032		338,480			(20.2	)


Non-interest expenses

Business segment information:
Retail		79,790		75,086			(5.9	)
Asset Management		15,171		13,695			(9.7	)
Wholesale		185,513		144,290			(22.2	)

Subtotal		280,474		233,071			(16.9	)
Other		37,546		42,644			13.6

Non-interest expenses		318,020		275,715			(13.3	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—			—

Non-interest expenses		318,020		275,715			(13.3	)


Income (loss) before income taxes

Business segment information:
Retail		50,899		8,665			(83.0	)
Asset Management		11,746		12,239			4.2
Wholesale		19,671		46,642			137.1

Subtotal		82,316		67,546			(17.9	)
Other*		14,698		5,767			(60.8	)

Income (loss) before income taxes		97,014		73,313			(24.4	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		8,998		(10,548	)		—

Income (loss) before income taxes		106,012		62,765			(40.8	)

* Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”


	Millions of yen						% Change
	For the three months ended						(B-A)/(A)
	June 30, 2015 (A)			June 30, 2016 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		(2,553	)		11,974			—
Realized gain (loss) on investments in equity securities held for operating purposes		188			582			209.6
Equity in earnings of affiliates		13,831			1,058			(92.4	)
Corporate items		(3,940	)		(4,306	)		—
Other		7,172			(3,541	)		—

Total		14,698			5,767			(60.8	)

(6)

Significant Changes in Equity (UNAUDITED)

Not applicable. For further details of the changes, please refer below.


	Millions of yen
	For the three months ended
	June 30, 2016
Common stock
Balance at beginning of year		594,493

Balance at end of period		594,493

Additional paid-in capital
Balance at beginning of year		692,706
Issuance and exercise of common stock options		(2,847	)

Balance at end of period		689,859

Retained earnings
Balance at beginning of year		1,516,577
Cumulative effect of change in accounting principle (1)		(19,294	)
Net income attributable to NHI shareholders		46,825
Gain (loss) on sales of treasury stock		(1,909	)

Balance at end of period		1,542,199

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year		53,418
Net change during the period		(76,374	)

Balance at end of period		(22,956	)

Defined benefit pension plans
Balance at beginning of year		(33,325	)
Pension liability adjustment		(276	)

Balance at end of period		(33,601	)

Non-trading securities
Balance at beginning of year		24,887
Net unrealized gain on non-trading securities		(1,908	)

Balance at end of period		22,979

Own credit adjustments
Balance at beginning of year		—
Cumulative effect of change in accounting principle (1)		19,294
Own credit adjustments		(14,331	)

Balance at end of period		4,963

Balance at end of period		(28,615	)

Common stock held in treasury
Balance at beginning of year		(148,517	)
Repurchases of common stock		(16,326	)
Sale of common stock		0
Common stock issued to employees		9,184

Balance at end of period		(155,659	)

Total NHI shareholders’ equity
Balance at end of period		2,642,277

Noncontrolling interests
Balance at beginning of year		42,776
Cumulative effect of change in accounting principle (1)		11,330
Net change during the period		2,897

Balance at end of period		57,003

Total equity
Balance at end of period		2,699,280

(1)	In relation to Cumulative effect of change in accounting principle, please refer to section “2. Notes to the Summary Information (1) Changes in Accounting Policies.”

4.	Supplementary Information

(1)

Consolidated Statements of Income – Quarterly Comparatives (UNAUDITED)


	Millions of yen													% Change			Millions of yen
	For the three months ended													(B-A)/(A)			For the year ended March 31, 2016
	June 30, 2015		September 30, 2015			December 31, 2015		March 31, 2016 (A)			June 30, 2016 (B)			(B-A)/(A)			For the year ended March 31, 2016
Revenue:
Commissions		130,343		111,501			102,323		87,792			76,255			(13.1	)		431,959
Fees from investment banking		24,497		44,867			20,016		28,953			17,313			(40.2	)		118,333
Asset management and portfolio service fees		59,940		58,177			57,808		53,081			52,612			(0.9	)		229,006
Net gain on trading		124,748		62,551			105,191		61,541			140,143			127.7			354,031
Gain (loss) on private equity investments		1,154		602			8,691		3,314			(13	)		—			13,761
Interest and dividends		113,649		111,540			107,932		106,929			106,551			(0.4	)		440,050
Gain (loss) on investments in equity securities		9,186		(10,882	)		4,690		(23,498	)		(9,966	)		—			(20,504	)
Other		44,931		39,551			27,875		44,103			35,517			(19.5	)		156,460

Total revenue		508,448		417,907			434,526		362,215			418,412			15.5			1,723,096
Interest expense		84,416		81,303			79,627		82,069			79,932			(2.6	)		327,415

Net revenue		424,032		336,604			354,899		280,146			338,480			20.8			1,395,681

Non-interest expenses:
Compensation and benefits		155,896		149,723			141,807		126,765			125,949			(0.6	)		574,191
Commissions and floor brokerage		34,243		32,621			31,126		25,891			24,172			(6.6	)		123,881
Information processing and communications		47,934		48,219			46,831		46,926			44,249			(5.7	)		189,910
Occupancy and related depreciation		18,729		19,173			19,596		20,913			18,228			(12.8	)		78,411
Business development expenses		8,330		8,454			9,330		9,778			8,296			(15.2	)		35,892
Other		52,888		58,537			54,602		62,211			54,821			(11.9	)		228,238

Total non-interest expenses		318,020		316,727			303,292		292,484			275,715			(5.7	)		1,230,523

Income (loss) before income taxes		106,012		19,877			51,607		(12,338	)		62,765			—			165,158
Income tax expense		36,368		(28,377	)		16,048		(1,443	)		15,791			—			22,596

Net income (loss)		69,644		48,254			35,559		(10,895	)		46,974			—			142,562

Less: Net income attributable to noncontrolling interests		902		1,695			157		8,258			149			(98.2	)		11,012

Net income (loss) attributable to NHI shareholders		68,742		46,559			35,402		(19,153	)		46,825			—			131,550


	Yen													% Change			Yen
Per share of common stock:
Basic-
Net income (loss) attributable to NHI shareholders per share		19.11		12.95			9.83		(5.31	)		13.00			—			36.53

Diluted-
Net income (loss) attributable to NHI shareholders per share		18.65		12.63			9.61		(5.33	)		12.71			—			35.52

(2)

Business Segment Information – Quarterly Comparatives (UNAUDITED)

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.


	Millions of yen														% Change			Millions of yen
	For the three months ended														(B-A)/(A)			For the year ended March 31, 2016
	June 30, 2015		September 30, 2015			December 31, 2015			March 31, 2016 (A)			June 30, 2016 (B)			(B-A)/(A)			For the year ended March 31, 2016

Net revenue

Business segment information:
Retail		130,689		115,658			104,280			85,007			83,751			(1.5	)		435,634
Asset Management		26,917		22,854			25,327			20,311			25,934			27.7			95,409
Wholesale		205,184		192,911			185,977			136,205			190,932			40.2			720,277

Subtotal		362,790		331,423			315,584			241,523			300,617			24.5			1,251,320
Other		52,244		16,080			34,589			62,139			48,411			(22.1	)		165,052

Net revenue		415,034		347,503			350,173			303,662			349,028			14.9			1,416,372

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		8,998		(10,899	)		4,726			(23,516	)		(10,548	)		—			(20,691	)

Net revenue		424,032		336,604			354,899			280,146			338,480			20.8			1,395,681


Non-interest expenses

Business segment information:
Retail		79,790		78,913			76,450			72,850			75,086			3.1			308,003
Asset Management		15,171		14,442			14,597			14,533			13,695			(5.8	)		58,743
Wholesale		185,513		184,282			176,038			159,039			144,290			(9.3	)		704,872

Subtotal		280,474		277,637			267,085			246,422			233,071			(5.4	)		1,071,618
Other		37,546		39,090			36,207			46,062			42,644			(7.4	)		158,905

Non-interest expenses		318,020		316,727			303,292			292,484			275,715			(5.7	)		1,230,523

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		—		—			—			—			—			—			—

Non-interest expenses		318,020		316,727			303,292			292,484			275,715			(5.7	)		1,230,523


Income (loss) before income taxes

Business segment information:
Retail		50,899		36,745			27,830			12,157			8,665			(28.7	)		127,631
Asset Management		11,746		8,412			10,730			5,778			12,239			111.8			36,666
Wholesale		19,671		8,629			9,939			(22,834	)		46,642			—			15,405

Subtotal		82,316		53,786			48,499			(4,899	)		67,546			—			179,702
Other*		14,698		(23,010	)		(1,618	)		16,077			5,767			(64.1	)		6,147

Income (loss) before income taxes		97,014		30,776			46,881			11,178			73,313			555.9			185,849

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		8,998		(10,899	)		4,726			(23,516	)		(10,548	)		—			(20,691	)

Income (loss) before income taxes		106,012		19,877			51,607			(12,338	)		62,765			—			165,158

*	Major components

Transactions between operating segments are recorded within segment results on commercial terms and conditions, and are eliminated in “Other.”

The following table presents the major components of income (loss) before income taxes in “Other.”


	Millions of yen															% Change			Millions of yen
	For the three months ended															(B-A)/(A)			For the year ended March 31, 2016
	June 30, 2015			September 30, 2015			December 31, 2015			March 31, 2016 (A)			June 30, 2016 (B)			(B-A)/(A)			For the year ended March 31, 2016
Net gain (loss) related to economic hedging transactions		(2,553	)		1,052			(627	)		8,498			11,974			40.9			6,370
Realized gain (loss) on investments in equity securities held for operating purposes		188			17			(36	)		18			582			—			187
Equity in earnings of affiliates		13,831			9,054			4,784			5,058			1,058			(79.1	)		32,727
Corporate items		(3,940	)		(39,985	)		(3,171	)		(5,218	)		(4,306	)		—			(52,314	)
Other		7,172			6,852			(2,568	)		7,721			(3,541	)		—			19,177

Total		14,698			(23,010	)		(1,618	)		16,077			5,767			(64.1	)		6,147

(3)

Unconsolidated Quarterly Financial Statements [Japanese GAAP]

Unconsolidated quarterly financial statements have been voluntarily disclosed and prepared based on regulatory rules.

Nomura Holdings, Inc. Unconsolidated Balance Sheets

(UNAUDITED)


	Millions of yen
	March 31, 2016		June 30, 2016
Assets
Current Assets		4,058,321		4,098,582
Fixed Assets		3,320,801		3,298,347

Total Assets		7,379,122		7,396,930

Liabilities
Current Liabilities		1,599,923		1,618,244
Long-term Liabilities		3,358,039		3,195,070

Total Liabilities		4,957,962		4,813,314

Net Assets
Shareholders’ equity		2,305,324		2,477,749
Valuation and translation adjustments		67,933		61,102
Stock acquisition rights		47,904		44,764

Total Net Assets		2,421,160		2,583,615

Total Liabilities and Net Assets		7,379,122		7,396,930

Nomura Holdings, Inc. Unconsolidated Statements of Income

(UNAUDITED)


	Millions of yen
	For the three months ended
	June 30, 2015		June 30, 2016
Operating revenue		394,650		249,139
Operating expenses		55,177		55,387

Operating income		339,472		193,752

Non-operating income		2,753		1,852
Non-operating expenses		1,235		2,779

Ordinary income		340,989		192,826

Special profits		482		874
Special losses		28		77

Income before income taxes		341,443		193,623

Income taxes - current		2,941		1,220
Income taxes - deferred		521		98

Net income		337,982		192,305

(4)

Other

Quarterly financial information for Nomura Securities Co., Ltd. can be found at the following URL.

http://www.nomuraholdings.com/company/group/nsc/pdf/2017_1q.pdf