NOMURA HOLDINGS, INC

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Nomura : Investor Day Yoshihiro Namura Head of Investment Management Nomura Holdings, Inc.

05/12/2021 | 03:40am

Connecting Markets East & West

Investor Day

Yoshihiro Namura

Head of Investment Management

Nomura Holdings, Inc.

May 12, 2021

© Nomura

Investment management business environment

  • Challenging environment for investors marked by decline in global fixed income yields causes

diverse asset management needs

Fixed income yields1

(%)

Global bonds

Japanese bonds

12

10

8

6

4

2

0

  • Declining investment management fees and growing revenues from managing alternative

assets

Decline in investment management fees3

(%)

Actively managed products

Passively managed products

0.70

0.59

0.58

0.60

0.57

0.55

0.54

0.54

0.50

0.44

0.40

0.30

0.20

0.19

0.18

0.20

0.17

0.16

0.15

0.12

0.10

0.00

2012

2013

2014

2015

2016

2017

2025e

Assets in corporate pension funds in Japan2

Domestic and foreign bonds

Domestic and foreign stocks

Short-term assets

General account

  1. Other (alternative products, etc.)

100

2.7

7.4

8.6

11.6

14.4

80

60

40

20

0

2000

2005

2010

2015

2019

Fees by asset type4

(billions of yen)

400

Alternative products

Other

350

300

250

172

200

156

159

150

100

96

162

50

74

126

137

66

30

0

2003

2008

2018

2019

2024e

1.

Source: Nomura, based on data from FTSE World Government Bond Index (WGBI) and NOMURA-BPI.

1

2.

Source: Assets in corporate pension funds: Pension Fund Association report on research into current state of corporate pension funds (2019).

3.

Source: Investment management fee data: "Asset and wealth management revolution" by PwC.

4.

Source: "Global Asset Management 2020: Protect, Adapt, and Innovate" by Boston Consulting Group.

Establishment of Investment Management division

  • Set up Investment Management division as part of our strategy to expand from public markets into the private sphere and meet the increasingly diverse investment management needs of our clients

Aim and vision of Investment Management

  • Bring together groupwide expertise in equities, fixed income and other traditional assets as well as alternative assets such as private equity to deliver greater added value
  • Elevate investment management business and deliver services and solutions to meet increasingly diverse client needs

offering product Expand

Inorganic strategy

Organic strategy

Synergies

Private market

Public market

investment

investment

business

business

Group

strengths

base client Expand

Investment Management key attributes

  • Solid track record in both public and private markets
  • Enhanced growth within division and tap into full capabilities of Nomura Group
  • Pursue independent investment stance and advanced expertise
  • Manage business portfolio with nimble capital policy
  • Growth of inorganic business investments

2

Investment Management organization

  • Group of investment and asset management companies with track record across diverse investment businesses spanning public and private markets

Key investment and asset management companies in Investment Management division

Public markets

Private markets

Stocks/bonds

Alternative strategies

Alternative assets

Main

Judgmental

Multi-asset

Private Equity/Private debt

strategies

Index

Infrastructure/Real estate

Hedge funds

Solutions

Aircraft finance

Key

companies1

Nomura Corporate Research and

Asset Management Inc. (NCRAM)

Boutique in US specializing in investments in high-yield fixed income market

Provides fund wrap services through financial institutions

Operating globally offering products in traditional assets and alternatives

Nomura Capital Partners Co., Ltd.

Private equity investment company using own capital (Y100bn). Leverages both Nomura and third-party management resources to raise corporate value of investee companies

Nomura Mezzanine Partners Co., Ltd.

Manages mezzanine funds. Leverages broad sourcing base of Nomura Group and provides unique strategy focused on buyouts

Originates international leases for aircraft and other large equipment. Business tie-up with BBAM Aircraft Leasing & Management to provide investment opportunities focused on leasing.

AuM2

Y63.2trn

Y2.6trn

1.

The above companies are the main group companies that come under the Investment Management division.

3

2.

AuM includes net after deducting duplications from assets under management (gross) from Nomura Asset Management, Nomura Corporate Research and Asset Management Inc., Wealth Square, as well as money invested

by Nomura Babcock & Brown client and investments by Nomura Capital Partners, Nomura Mezzanine Partners, etc.

Enhancing growth and leveraging full capabilities of group

  • To deliver on Investment Management's aim of enhancing our product offering and expanding our client base we will leverage the full capabilities of Nomura Group and affiliates to pursue further growth

Organizational management for enhanced growth

Advanced investment management, expanded product offering

Ensure independence of each entity. Expand product offering with competitive performance backed by expertise and innovation of each group company

Meet diverse needs, grow client base

Collaborate across products to better solve client issues and provide solutions and expand our client base

Operational efficiency

Standardize internal processes

Drive efficiencies and reduce work-load through digitalization

Accelerate division strategy

Centralize strategy under dedicated department Accelerate strategic planning and execution required for growth

Leverage full capabilities of Nomura Group and affiliates

  • Advanced expertise, knowledge management
  • Leverage full capabilities of Nomura Group and affiliates to help resolve social issues and contribute to sustainable growth
  • Global sourcing network
  • Access to Nomura Group high-quality, extensive client base
  • Improve business structure using digital technologies

Wholesale

Content

CompanyRetail

Investment

Management

FutureNomura

InnovationResearch

Company Nomura Institute

Real

Estate

Holdings

4

Disclaimer

Nomura Holdings Inc. published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 07:39:05 UTC.

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