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 October 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 – six months ended September 30, 2016

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: October 27, 2016	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Six Months Ended September 30, 2016 (U.S. GAAP)


Date:		October 27, 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 six months ended September 30
	2015					2016
	(Millions of yen, except per share data)
	% Change from September 30, 2014					% Change from September 30, 2015
Total revenue		926,355		1.5	%		844,521		(8.8%)
Net revenue		760,636		2.1	%		685,475		(9.9%)
Income before income taxes		125,889		0.2	%		144,539		14.8%
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		115,301		58.5	%		108,005		(6.3%)
Comprehensive income (loss)		94,296		(26.3	%)		(3,529	)	— %
Basic-Net income attributable to NHI shareholders per share (Yen)		32.06					30.10
Diluted-Net income attributable to NHI shareholders per share (Yen)		31.26					29.39
Return on shareholders’ equity-annualized		8.4	%				8.1	%

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 September 30
	2016			2016
	(Millions of yen, except per share data)
Total assets		41,090,167			42,957,438
Total equity		2,743,015			2,699,957
Total NHI shareholders’ equity		2,700,239			2,639,363
Total NHI shareholders’ equity as a percentage of total assets		6.6	%		6.1	%
Total NHI shareholders’ equity per share (Yen)		748.32			742.39

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		9.00		—
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 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 September 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		267,314,307

	For the six months ended September 30
	2015		2016
Average number of shares outstanding (year-to-date)		3,596,599,957		3,588,288,755

*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.

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 –

1.	Qualitative Information of the Quarterly Consolidated Results

(1)

Consolidated Operating Results

U.S. GAAP


	Billions of yen						% Change
	For the six months ended						(B-A)/(A)
	September 30, 2015 (A)			September 30, 2016 (B)			(B-A)/(A)
Net revenue		760.6			685.5			(9.9	)
Non-interest expenses		634.7			540.9			(14.8	)

Income (loss) before income taxes		125.9			144.5			14.8
Income tax expense		8.0			35.5			344.4

Net income (loss)		117.9			109.0			(7.5	)

Less: Net income (loss) attributable to noncontrolling interests		2.6			1.0			(60.6	)

Net income (loss) attributable to NHI shareholders		115.3			108.0			(6.3	)

Return on shareholders’ equity-annualized		8.4	%		8.1	%		—

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 685.5 billion yen for the six months ended September 30, 2016, a decrease of 9.9% from the same period in the prior year. Non-interest expenses decreased by 14.8% from the same period in the prior year to 540.9 billion yen. Income before income taxes was 144.5 billion yen and net income attributable to NHI shareholders was 108.0 billion yen for the six months ended September 30, 2016.

Segment Information


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2015 (A)		September 30, 2016 (B)		(B-A)/(A)
Net revenue		762.5		688.4		(9.7	)
Non-interest expenses		634.7		540.9		(14.8	)

Income (loss) before income taxes		127.8		147.5		15.4

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the six months ended September 30, 2016 was 688.4 billion yen, a decrease of 9.7% from the same period in the prior year. Non-interest expenses decreased by 14.8% from the same period in the prior year to 540.9 billion yen. Income before income taxes was 147.5 billion yen for the six months ended September 30, 2016. Please refer to page 10 for further details of the differences between U.S. GAAP and business segment amounts.

– 2 –

<Business Segment Results>

Operating Results of Retail


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2015 (A)		September 30, 2016 (B)		(B-A)/(A)
Net revenue		246.3		169.9		(31.0	)
Non-interest expenses		158.7		146.8		(7.5	)

Income (loss) before income taxes		87.6		23.1		(73.7	)

Net revenue decreased by 31.0% from the same period in the prior year to 169.9 billion yen, primarily due to decreasing commissions from distribution of investment trusts and brokerage. Non-interest expense decreased by 7.5% to 146.8 billion yen. As a result, income before income taxes decreased by 73.7% to 23.1 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2015 (A)		September 30, 2016 (B)		(B-A)/(A)
Net revenue		49.8		47.2		(5.1	)
Non-interest expenses		29.6		27.5		(7.0	)

Income (loss) before income taxes		20.2		19.7		(2.4	)

Net revenue decreased by 5.1% from the same period in the prior year to 47.2 billion yen. Non-interest expense decreased by 7.0% to 27.5 billion yen. As a result, income before income taxes decreased by 2.4% to 19.7 billion yen. Assets under management were 38.5 trillion yen as of September 30, 2016.

Operating Results of Wholesale


	Billions of yen				% Change
	For the six months ended				(B-A)/(A)
	September 30, 2015 (A)		September 30, 2016 (B)		(B-A)/(A)
Net revenue		398.1		370.8		(6.9	)
Non-interest expenses		369.8		284.9		(23.0	)

Income (loss) before income taxes		28.3		85.9		203.6

Net revenue decreased by 6.9% from the same period in the prior year to 370.8 billion yen. Non-interest expense decreased by 23.0% to 284.9 billion yen. As a result, income before income taxes increased by 203.6% from the same period in the prior year to 85.9 billion yen.

– 3 –

Other Operating Results


	Billions of yen					% Change
	For the six months ended					(B-A)/(A)
	September 30, 2015 (A)			September 30, 2016 (B)		(B-A)/(A)
Net revenue		68.3			100.5		47.1
Non-interest expenses		76.6			81.7		6.6

Income (loss) before income taxes		(8.3	)		18.9		—

Net revenue was 100.5 billion yen. Income before income taxes was 18.9 billion yen.

(2) Consolidated Financial Position

Total assets as of September 30, 2016 were 42,957.4 billion yen, an increase of 1,867.3 billion yen compared to March 31, 2016, mainly due to the increase in Securities purchased under agreements to resell. Total liabilities as of September 30, 2016 were 40,257.5 billion yen, an increase of 1,910.3 billion yen compared to March 31, 2016, mainly due to the increase in Securities sold under agreements to repurchase. Total equity as of September 30, 2016 was 2,700.0 billion yen, a decrease of 43.1 billion yen compared to March 31, 2016.

(3) Consolidated Earnings Forecasts

– 4 –

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.

– 5 –

(1) Consolidated Balance Sheets (UNAUDITED)


	Millions of yen
	March 31, 2016			September 30, 2016			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		3,476,261			3,092,991			(383,270	)
Time deposits		196,632			131,865			(64,767	)
Deposits with stock exchanges and other segregated cash		225,950			220,290			(5,660	)

Total cash and cash deposits		3,898,843			3,445,146			(453,697	)

Loans and receivables:
Loans receivable		1,605,603			1,533,496			(72,107	)
Receivables from customers		210,844			104,026			(106,818	)
Receivables from other than customers		1,156,608			1,107,506			(49,102	)
Allowance for doubtful accounts		(3,477	)		(3,510	)		(33	)

Total loans and receivables		2,969,578			2,741,518			(228,060	)

Collateralized agreements:
Securities purchased under agreements to resell		9,205,165			10,973,911			1,768,746
Securities borrowed		5,872,495			6,092,429			219,934

Total collateralized agreements		15,077,660			17,066,340			1,988,680

Trading assets and private equity investments:
Trading assets*		16,379,424			16,819,227			439,803
Private equity investments		30,578			26,731			(3,847	)

Total trading assets and private equity investments		16,410,002			16,845,958			435,956

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥402,599 million as of March 31, 2016 and ¥405,616 million as of September 30, 2016)		355,507			336,703			(18,804	)
Non-trading debt securities*		870,812			823,726			(47,086	)
Investments in equity securities*		137,970			133,621			(4,349	)
Investments in and advances to affiliated companies*		395,284			401,822			6,538
Other		974,511			1,162,604			188,093

Total other assets		2,734,084			2,858,476			124,392

Total assets		41,090,167			42,957,438			1,867,271

*	Including securities pledged as collateral

– 6 –


			Millions of yen
			March 31, 2016			September 30, 2016			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				662,902			542,027			(120,875	)
Payables and deposits:
Payables to customers				688,196			954,260			266,064
Payables to other than customers				1,337,931			1,943,066			605,135
Deposits received at banks				2,222,991			1,052,275			(1,170,716	)

Total payables and deposits				4,249,118			3,949,601			(299,517	)

Collateralized financing:
Securities sold under agreements to repurchase				14,192,309			17,052,166			2,859,857
Securities loaned				1,937,009			2,168,593			231,584
Other secured borrowings				476,273			375,511			(100,762	)

Total collateralized financing				16,605,591			19,596,270			2,990,679

Trading liabilities				7,499,335			7,637,309			137,974
Other liabilities				1,200,647			1,130,182			(70,465	)
Long-term borrowings				8,129,559			7,402,092			(727,467	)

Total liabilities				38,347,152			40,257,481			1,910,329


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 September 30, 2016
Outstanding	-	3,608,391,999 shares as of March 31, 2016 and 3,555,248,294 shares as of September 30, 2016		594,493			594,493			—
Additional paid-in capital				692,706			688,444			(4,262	)
Retained earnings				1,516,577			1,571,328			54,751
Accumulated other comprehensive income (loss)				44,980			(46,383	)		(91,363	)

Total NHI shareholders’ equity before treasury stock				2,848,756			2,807,882			(40,874	)
Common stock held in treasury, at cost -
		214,170,602 shares as of March 31, 2016 and
		267,314,307 shares as of September 30, 2016		(148,517	)		(168,519	)		(20,002	)

Total NHI shareholders’ equity				2,700,239			2,639,363			(60,876	)

Noncontrolling interests				42,776			60,594			17,818

Total equity				2,743,015			2,699,957			(43,058	)

Total liabilities and equity				41,090,167			42,957,438			1,867,271

– 7 –

(2) Consolidated Statements of Income (UNAUDITED)


	Millions of yen						% Change
	For the six months ended
	September 30, 2015 (A)			September 30, 2016 (B)			(B-A)/(A)
Revenue:
Commissions		241,844			150,895			(37.6	)
Fees from investment banking		69,364			40,666			(41.4	)
Asset management and portfolio service fees		118,117			104,752			(11.3	)
Net gain on trading		187,299			258,901			38.2
Gain (loss) on private equity investments		1,756			(433	)		—
Interest and dividends		225,189			215,414			(4.3	)
Gain (loss) on investments in equity securities		(1,696	)		(2,312	)		—
Other		84,482			76,638			(9.3	)

Total revenue		926,355			844,521			(8.8	)
Interest expense		165,719			159,046			(4.0	)

Net revenue		760,636			685,475			(9.9	)

Non-interest expenses:
Compensation and benefits		305,619			253,918			(16.9	)
Commissions and floor brokerage		66,864			47,039			(29.6	)
Information processing and communications		96,153			85,850			(10.7	)
Occupancy and related depreciation		37,902			35,031			(7.6	)
Business development expenses		16,784			15,177			(9.6	)
Other		111,425			103,921			(6.7	)

Total non-interest expenses		634,747			540,936			(14.8	)

Income before income taxes		125,889			144,539			14.8
Income tax expense		7,991			35,512			344.4

Net income		117,898			109,027			(7.5	)

Less: Net income attributable to noncontrolling interests		2,597			1,022			(60.6	)

Net income attributable to NHI shareholders		115,301			108,005			(6.3	)

Per share of common stock:

	Yen						% Change
Basic-
Net income attributable to NHI shareholders per share		32.06			30.10			(6.1	)

Diluted-
Net income attributable to NHI shareholders per share		31.26			29.39			(6.0	)

– 8 –

(3) Consolidated Statements of Comprehensive Income (UNAUDITED)


	Millions of yen						% Change
	For the six months ended
	September 30, 2015 (A)			September 30, 2016 (B)			(B-A)/(A)
Net income		117,898			109,027			(7.5	)
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		(2,621	)		(95,129	)		—
Deferred income taxes		(17,529	)		5,882			—

Total		(20,150	)		(89,247	)		—

Defined benefit pension plans:
Pension liability adjustment		(543	)		92			—
Deferred income taxes		342			(81	)		—

Total		(201	)		11			—

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		(4,417	)		(8,492	)		—
Deferred income taxes		1,166			1,345			15.4

Total		(3,251	)		(7,147	)		—

Own Credit Adjustments:
Own Credit Adjustments		—			(19,093	)		—
Deferred income taxes		—			2,920			—

Total		—			(16,173	)		—

Total other comprehensive income (loss)		(23,602	)		(112,556	)		—

Comprehensive income (loss)		94,296			(3,529	)		—
Less: Comprehensive income (loss) attributable to noncontrolling interests		2,060			(877	)		—

Comprehensive income (loss) attributable to NHI shareholders		92,236			(2,652	)		—

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

Not applicable.

– 9 –

(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 six months ended						(B-A)/(A)
	September 30, 2015 (A)			September 30, 2016 (B)			(B-A)/(A)
Net revenue
Business segment information:
Retail		246,347			169,915			(31.0	)
Asset Management		49,771			47,211			(5.1	)
Wholesale		398,095			370,795			(6.9	)

Subtotal		694,213			587,921			(15.3	)
Other		68,324			100,522			47.1

Net revenue		762,537			688,443			(9.7	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(1,901	)		(2,968	)		—

Net revenue		760,636			685,475			(9.9	)

Non-interest expenses
Business segment information:
Retail		158,703			146,840			(7.5	)
Asset Management		29,613			27,539			(7.0	)
Wholesale		369,795			284,886			(23.0	)

Subtotal		558,111			459,265			(17.7	)
Other		76,636			81,671			6.6

Non-interest expenses		634,747			540,936			(14.8	)

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

Non-interest expenses		634,747			540,936			(14.8	)

Income (loss) before income taxes
Business segment information:
Retail		87,644			23,075			(73.7	)
Asset Management		20,158			19,672			(2.4	)
Wholesale		28,300			85,909			203.6

Subtotal		136,102			128,656			(5.5	)
Other*		(8,312	)		18,851			—

Income (loss) before income taxes		127,790			147,507			15.4

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		(1,901	)		(2,968	)		—

Income (loss) before income taxes		125,889			144,539			14.8

*	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 six months ended						(B-A)/(A)
	September 30, 2015 (A)			September 30, 2016 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		(1,501	)		7,855			—
Realized gain (loss) on investments in equity securities held for operating purposes		205			656			220.0
Equity in earnings of affiliates		22,885			12,003			(47.6	)
Corporate items		(43,925	)		(9,572	)		—
Other		14,024			7,909			(43.6	)

Total		(8,312	)		18,851			—

– 10 –

(6) Significant Changes in Equity (UNAUDITED)

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


	Millions of yen
	For the six months ended September 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		(4,262	)

Balance at end of period		688,444

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		108,005
Cash dividends		(31,997	)
Gain (loss) on sales of treasury stock		(1,963	)

Balance at end of period		1,571,328

Accumulated other comprehensive income (loss)
Cumulative translation adjustments
Balance at beginning of year		53,418
Net change during the period		(89,146	)

Balance at end of period		(35,728	)

Defined benefit pension plans
Balance at beginning of year		(33,325	)
Pension liability adjustment		11

Balance at end of period		(33,314	)

Non-trading securities
Balance at beginning of year		24,887
Net unrealized gain on non-trading securities		(5,349	)

Balance at end of period		19,538

Own credit adjustments
Balance at beginning of year		—
Cumulative effect of change in accounting principle (1)		19,294
Own credit adjustments		(16,173	)

Balance at end of period		3,121

Balance at end of period		(46,383	)

Common stock held in treasury
Balance at beginning of year		(148,517	)
Repurchases of common stock		(34,285	)
Sale of common stock		0
Common stock issued to employees		13,010
Other net change in treasury stock		1,273

Balance at end of period		(168,519	)

Total NHI shareholders’ equity
Balance at end of period		2,639,363

Noncontrolling interests
Balance at beginning of year		42,776
Cumulative effect of change in accounting principle (1)		11,330
Net change during the period		6,488

Balance at end of period		60,594

Total equity
Balance at end of period		2,699,957

(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.”

– 11 –

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			June 30, 2016 (A)			September 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			74,640			(2.1	)		431,959
Fees from investment banking		24,497		44,867			20,016		28,953			17,313			23,353			34.9			118,333
Asset management and portfolio service fees		59,940		58,177			57,808		53,081			52,612			52,140			(0.9	)		229,006
Net gain on trading		124,748		62,551			105,191		61,541			140,143			118,758			(15.3	)		354,031
Gain (loss) on private equity investments		1,154		602			8,691		3,314			(13	)		(420	)		—			13,761
Interest and dividends		113,649		111,540			107,932		106,929			106,551			108,863			2.2			440,050
Gain (loss) on investments in equity securities		9,186		(10,882	)		4,690		(23,498	)		(9,966	)		7,654			—			(20,504	)
Other		44,931		39,551			27,875		44,103			35,517			41,121			15.8			156,460

Total revenue		508,448		417,907			434,526		362,215			418,412			426,109			1.8			1,723,096
Interest expense		84,416		81,303			79,627		82,069			79,932			79,114			(1.0	)		327,415

Net revenue		424,032		336,604			354,899		280,146			338,480			346,995			2.5			1,395,681

Non-interest expenses:
Compensation and benefits		155,896		149,723			141,807		126,765			125,949			127,969			1.6			574,191
Commissions and floor brokerage		34,243		32,621			31,126		25,891			24,172			22,867			(5.4	)		123,881
Information processing and communications		47,934		48,219			46,831		46,926			44,249			41,601			(6.0	)		189,910
Occupancy and related depreciation		18,729		19,173			19,596		20,913			18,228			16,803			(7.8	)		78,411
Business development expenses		8,330		8,454			9,330		9,778			8,296			6,881			(17.1	)		35,892
Other		52,888		58,537			54,602		62,211			54,821			49,100			(10.4	)		228,238

Total non-interest expenses		318,020		316,727			303,292		292,484			275,715			265,221			(3.8	)		1,230,523

Income (loss) before income taxes		106,012		19,877			51,607		(12,338	)		62,765			81,774			30.3			165,158
Income tax expense		36,368		(28,377	)		16,048		(1,443	)		15,791			19,721			24.9			22,596

Net income (loss)		69,644		48,254			35,559		(10,895	)		46,974			62,053			32.1			142,562

Less: Net income attributable to noncontrolling interests		902		1,695			157		8,258			149			873			485.9			11,012

Net income (loss) attributable to NHI shareholders		68,742		46,559			35,402		(19,153	)		46,825			61,180			30.7			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			17.10			31.5			36.53

Diluted-
Net income (loss) attributable to NHI shareholders per share		18.65		12.63			9.61		(5.33	)		12.71			16.68			31.2			35.52

– 12 –

(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			June 30, 2016 (A)			September 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			86,164		2.9			435,634
Asset Management		26,917		22,854			25,327			20,311			25,934			21,277		(18.0	)		95,409
Wholesale		205,184		192,911			185,977			136,205			190,932			179,863		(5.8	)		720,277

Subtotal		362,790		331,423			315,584			241,523			300,617			287,304		(4.4	)		1,251,320
Other		52,244		16,080			34,589			62,139			48,411			52,111		7.6			165,052

Net revenue		415,034		347,503			350,173			303,662			349,028			339,415		(2.8	)		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	)		7,580		—			(20,691	)

Net revenue		424,032		336,604			354,899			280,146			338,480			346,995		2.5			1,395,681


Non-interest expenses

Business segment information:
Retail		79,790		78,913			76,450			72,850			75,086			71,754		(4.4	)		308,003
Asset Management		15,171		14,442			14,597			14,533			13,695			13,844		1.1			58,743
Wholesale		185,513		184,282			176,038			159,039			144,290			140,596		(2.6	)		704,872

Subtotal		280,474		277,637			267,085			246,422			233,071			226,194		(3.0	)		1,071,618
Other		37,546		39,090			36,207			46,062			42,644			39,027		(8.5	)		158,905

Non-interest expenses		318,020		316,727			303,292			292,484			275,715			265,221		(3.8	)		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			265,221		(3.8	)		1,230,523


Income (loss) before income taxes

Business segment information:
Retail		50,899		36,745			27,830			12,157			8,665			14,410		66.3			127,631
Asset Management		11,746		8,412			10,730			5,778			12,239			7,433		(39.3	)		36,666
Wholesale		19,671		8,629			9,939			(22,834	)		46,642			39,267		(15.8	)		15,405

Subtotal		82,316		53,786			48,499			(4,899	)		67,546			61,110		(9.5	)		179,702
Other*		14,698		(23,010	)		(1,618	)		16,077			5,767			13,084		126.9			6,147

Income (loss) before income taxes		97,014		30,776			46,881			11,178			73,313			74,194		1.2			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	)		7,580		—			(20,691	)

Income (loss) before income taxes		106,012		19,877			51,607			(12,338	)		62,765			81,774		30.3			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			June 30, 2016 (A)			September 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			(4,119	)		—			6,370
Realized gain (loss) on investments in equity securities held for operating purposes		188			17			(36	)		18			582			74			(87.3	)		187
Equity in earnings of affiliates		13,831			9,054			4,784			5,058			1,058			10,945			934.5			32,727
Corporate items		(3,940	)		(39,985	)		(3,171	)		(5,218	)		(4,306	)		(5,266	)		—			(52,314	)
Other		7,172			6,852			(2,568	)		7,721			(3,541	)		11,450			—			19,177

Total		14,698			(23,010	)		(1,618	)		16,077			5,767			13,084			126.9			6,147

– 13 –

(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			September 30, 2016
Assets
Current Assets		4,058,321			3,755,135
Fixed Assets		3,320,801			3,290,451

Total Assets		7,379,122			7,045,586

Liabilities
Current Liabilities		1,599,923			1,472,445
Long-term Liabilities		3,358,039			3,000,046

Total Liabilities		4,957,962			4,472,491

Net Assets
Shareholders’ equity		2,305,324			2,467,378
Valuation and translation adjustments		67,933			62,220
Stock acquisition rights		47,904			43,497

Total Net Assets		2,421,160			2,573,094

Total Liabilities and Net Assets		7,379,122			7,045,586

Nomura Holdings, Inc. Unconsolidated Statements of Income (UNAUDITED)
	Millions of yen
	For the six months ended
	September 30, 2015			September 30, 2016
Operating revenue		471,369			305,968
Operating expenses		113,480			109,901

Operating income		357,890			196,067

Non-operating income		3,263			2,908
Non-operating expenses		3,497			6,938

Ordinary income		357,655			192,037

Special profits		501			5,928
Special losses		377			181

Income before income taxes		357,780			197,784

Income taxes - current		4,876			1,890
Income taxes - deferred		(54,871	)		(730	)

Net income		407,775			196,624

(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_2q.pdf

– 14 –