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

Supplement for the month of July 2003.

Total number of pages: 23.

The exhibit index is located on page 2.

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):

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

Information furnished on this form:

EXHIBIT

Exhibit Number				Page Number

1. [ Financial Highlights—Three months ended June 2003]				4

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.

By:		/s/ MASANORI ITATANI
		Masanori Itatani Senior Managing Director

Date:

July 31, 2003

LOGO

July 31, 2003

Financial Highlights – Three months ended June 2003

We are pleased to report the following consolidated financial highlights based on consolidated financial information under US GAAP for the three months ended June 2003.

For further information, please contact:

Koichi Ikegami

General Manager

Investor Relations Department

Nomura Group Headquarters

Nomura Securities Co., Ltd.

9-1 Nihonbashi 1-chome, Chuo-ku

Tokyo 103-8011, Japan

TEL: +813-3211-1811

Financial Summary For the Three Months Ended June 30, 2003

Date:		July 31, 2003
Company name (code number):		Nomura Holdings, Inc. (8604)
Head office:		1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8011, Japan
Stock exchange listings:		(In Japan) Tokyo, Osaka, Nagoya (Overseas) New York, Amsterdam, Singapore
Representative:		Nobuyuki Koga
		President and Chief Executive Officer, Nomura Holdings, Inc.
For inquiries:		Koichi Ikegami
		General Manager, Investor Relations Department, Nomura Group Headquarters, Nomura Securities Co., Ltd. Tel: (Country Code 81) 3-3211-1811 URL (http://www.nomura.com)

(1) Operating Results

	For the three months ended June 30						For the year ended March 31
	2003			2002			2003
	(Yen amounts in millions, except per share data)
Total revenue	¥	279,790		¥	216,971		¥840,919
Change from the three months ended June 30, 2002		29.0	%
Net revenue	¥	200,087		¥	142,666		¥566,274
Change from the three months ended June 30, 2002		40.2	%
Income before income taxes and cumulative effect of accounting change	¥	71,300		¥	18,371		¥ 47,409
Change from the three months ended June 30, 2002		288.1	%
Net income	¥	39,048		¥	117,845		¥119,913
Change from the three months ended June 30, 2002		(66.9	%)
Basic net income per share	¥	20.14		¥	59.95		¥ 61.26
Diluted net income per share	¥	20.14		¥	59.95		¥ 61.26
Return on shareholders’ equity		9.4	% *		8.6	% *	7.4%

ROE for the three month ended June 30, 2003 and 2002 is calculated as below;

(Income before cumulative effect of accounting change x 4 + Cumulative effect of accounting change, if any)

(Shareholders’ equity at the beginning of period + Shareholders’ equity at the end of period) / 2

(2) Financial Position

	At June 30						At March 31
	2003			2002			2003
	(Yen amounts in millions, except per share data)
Total assets	¥	24,779,048		¥	18,138,542		¥	21,169,446
Shareholders’ equity	¥	1,690,273		¥	1,706,559		¥	1,642,328
Shareholders’ equity as a percentage of total assets		6.8	%		9.4	%		7.8	%
Book value per share	¥	872.53		¥	868.23		¥	846.40

(3) Difference in recognition method with latest fiscal year: none

(4) Scope of consolidation and equity method application

Number of consolidated subsidiaries 114

Number of affiliated companies, which were accounted for by the equity method 12

(5) Movement in the scope of consolidation and equity method application for this period

Number of consolidation Inclusion 1

Number of equity method application Exclusion 1

NOMURA HOLDINGS, INC.

FINANCIAL HIGHLIGHTS

(UNAUDITED)

							% Change		Translation into U.S. dollars
	For the three months ended/ as of										For the year ended/ as of
	June 30, 2002 (A)			June 30, 2003 (B)			(B) vs. (A)		June 30, 2003		March 31, 2003
	(yen and dollar amounts in millions, except per share data)
*FOR THE PERIOD ENDED*
							%
Total revenue	¥	216,971		¥	279,790		29.0		$	2,334	¥	840,919
Net revenue		142,666			200,087		40.2			1,669		566,274
Non-interest expenses		124,295			128,787		3.6			1,074		518,865
Income before income taxes and cumulative effect of accounting change		18,371			71,300		288.1			595		47,409
Income before cumulative effect of accounting change		8,046			39,048		385.3			326		10,114
Cumulative effect of accounting change		109,799			—		—			—		109,799
Net income		117,845			39,048		(66.9	)		326		119,913
Per share data :
Basic-
Income before cumulative effect of accounting change		4.09			20.14		392.4			0.17		5.17
Cumulative effect of accounting change		55.86			—		—			—		56.09
Net income		59.95			20.14		(66.4	)		0.17		61.26
Diluted-
Income before cumulative effect of accounting change		4.09			20.14		392.4			0.17		5.17
Cumulative effect of accounting change		55.86			—		—			—		56.09
Net income		59.95			20.14		(66.4	)		0.17		61.26
Cash dividends		—			—					—		15.00
Return on equity (ROE):		8.6	%*		9.4	%*						7.4	%

*AT PERIOD-END*
Total Assets	¥	18,138,542		¥	24,779,048				$	206,716	¥	21,169,446
Shareholders’ equity		1,706,559			1,690,273					14,101		1,642,328
Per share data :
Shareholders’ equity		868.23			872.53					7.28		846.40

•

ROE for the interim period is calculated as below;

(Income before cumulative effect of accounting change x 4 + Cumulative effect of accounting change, if any)

(Shareholders’ equity at the beginning of period + Shareholders’ equity at the end of period) / 2

Results of Operations

Financial Overview

The following table provides selected consolidated income statement information for the three months ended June 30, 2002 and 2003.

	Millions of yen
	For the three months ended
	June 30, 2002			June 30, 2003
Non-interest revenue	¥	125,906		¥	165,946
Net interest revenue		16,760			34,141

Net revenue		142,666			200,087
Non-interest expenses		124,295			128,787

Income before income taxes		18,371			71,300
Income tax expense		10,325			32,252
Cumulative effect of accounting change (*1)		109,799			—

Net income	¥	117,845		¥	39,048

Return on equity (ROE)		8.6	%		9.4	%

(*1)

Cumulative effect of accounting change represents writing off the remaining unamortized negative goodwill associated with the acquisition of Nomura Asset Management Co., Ltd.

Nomura Holdings, Inc. and its consolidated subsidiaries (“Nomura”) reported net revenue of ¥ 200 billion for the three months ended June 30, 2003, an increase of ¥ 57 billion or 40% from ¥ 143 billion for the three months ended June 30, 2002. Non-interest expenses were ¥ 129 billion for the three months ended June 30, 2003, an increase of ¥ 4 billion or 4% from the same period in the prior year.

Income before income taxes and net income were ¥ 71 billion and ¥ 39 billion, respectively, for the three months ended June 30, 2003. This compares to income before income taxes and net income of ¥ 18 billion and ¥ 118 billion respectively for the same period in the prior year.

Total assets were approximately ¥ 24.8 trillion at June 30, 2003, an increase of approximately ¥ 3.6 trillion from March 31, 2003 and total shareholders’ equity increased by ¥ 48 billion from March 31, 2003 to approximately ¥ 1.7 trillion at June 30, 2003. Nomura’s return on equity was 9.4% for the three months ended June 30, 2003.

Business Segments

Operating Results of Domestic Retail

	Millions of yen
	For the three months ended
	June 30, 2002		June 30, 2003
Non-interest revenue	¥	66,436	¥	74,573
Net interest revenue		599		397

Net revenue		67,035		74,970
Non-interest expenses		53,136		54,201

Income before income taxes	¥	13,899	¥	20,769

Domestic Retail has further strengthened its capabilities to provide personalized investment consultation services with customers in order to meet their various investment needs in the current low interest rate environment. Net revenue increased by 12% from ¥67,035 million for the three months ended June 30, 2002 to ¥ 74,970 million for the three months ended June 30, 2003, mainly due to the fact that the placements and sales of bonds increased. Non-interest expenses increased by 2% from ¥ 53,136 million for the three months ended June 30, 2002 to ¥ 54,201 million for the three months ended June 30, 2003. As a result, Income before income taxes increased by 49% from ¥ 13,899 million for the three months ended June 30, 2002 to ¥ 20,769 million for the three months ended June 30, 2003.

Operating Results of Global Wholesale

	Millions of yen
	For the three months ended
	June 30, 2002		June 30, 2003
Non-interest revenue	¥	73,321	¥	68,977
Net interest revenue		16,540		25,177

Net revenue		89,861		94,154
Non-interest expenses		53,387		56,356

Income before income taxes	¥	36,474	¥	37,798

Global Wholesale has made an effort to manage its business portfolio based on global customers’ order-flow and Fixed Income increased net gain on trading. Net revenue increased by 5% from ¥ 89,861 million for the three months ended June 30, 2002 to ¥ 94,154 million for the three months ended June 30, 2003. Non-interest expenses increased by 6% from ¥ 53,387 million for the three months ended June 30, 2002 to ¥ 56,356 million for the three months ended June 30, 2003. As a result, Income before income taxes increased by 4% from ¥ 36,474 million for the three months ended June 30, 2002 to ¥ 37,798 million for the three months ended June 30, 2003.

Fixed Income

Net revenue increased by 42% from ¥ 43,887 million for the three months ended June 30, 2002 to ¥ 62,261 million for the three months ended June 30, 2003, mainly due to an increase in net gain on trading relating to medium-term notes and foreign currency bonds. Non-interest expenses increased by 32% from ¥ 18,944 million for the three months ended June 30, 2002 to ¥ 25,093 million for the three months ended June 30, 2003. As a result, Income before income taxes increased by 49% from ¥ 24,943 million for the three months ended June 30, 2002 to ¥ 37,168 million for the three months ended June 30, 2003.

Equity

Net revenue decreased by 33% from ¥ 30,416 million for the three months ended June 30, 2002 to ¥ 20,381 million for the three months ended June 30, 2003, mainly due to a decrease in customers’ order-flow, such as block trading. Non-interest expenses decreased by 10% from ¥ 18,340 million for the three months ended June 30, 2002 to ¥ 16,470 million for the three months ended June 30, 2003. Income before income taxes decreased by 68% from ¥ 12,076 million for the three months ended June 30, 2002 to ¥ 3,911 million for the three months ended June 30, 2003.

Investment Banking

Net revenue for Investment Banking decreased by 23% from ¥ 16,830 million for the three months ended June 30, 2002 to ¥ 12,908 million for the three months ended June 30, 2003, partly due to a reduction in equity capital markets. Non-interest expenses for Investment Banking decreased by 13% from ¥ 13,850 million for the three months ended June 30, 2002 to ¥ 12,086 million for the three months ended June 30, 2003. As a result, Income before income taxes for Investment Banking decreased by 72% from ¥ 2,980 million for the three months ended June 30, 2002 to ¥ 822 million for the three months ended June 30, 2003.

Merchant Banking

Net loss for Merchant Banking was ¥ 1,272 million for the three months ended June 30, 2002 and ¥ 1,396 million for the three months ended June 30, 2003, because funding costs have been charged for its assets in Europe, although there were exit transactions for this period. Non-interest expenses for Merchant Banking increased by 20% from ¥ 2,253 million for the three months ended June 30, 2002 to ¥ 2,707 million for the three months ended June 30, 2003. As a result, Loss before income taxes for Merchant Banking was ¥ 3,525 million for the three months ended June 30, 2002 and ¥ 4,103 million for the three months ended June 30, 2003.

Operating Results of Asset Management

	Millions of yen
	For the three months ended
	June 30, 2002			June 30, 2003
Non-interest revenue	¥	9,850		¥	7,598
Net interest revenue		(55	)		682

Net revenue		9,795			8,280
Non-interest expenses		8,682			8,192

Income before income taxes	¥	1,113		¥	88

Net revenue decreased by 15% from ¥ 9,795 million for the three months ended June 30, 2002 to ¥ 8,280 million for the three months ended June 30, 2003, due to a decreases in asset management and portfolio service fees reflecting declines in the outstanding balance of bond investment trusts. Non-interest expenses decreased by 6% from ¥ 8,682 million for the three months ended June 30, 2002 to ¥ 8,192 million for the three months ended June 30, 2003. As a result, Income before income taxes decreased by 92% from ¥ 1,113 million for the three months ended June 30, 2002 to ¥ 88 million for the three months ended June 30, 2003.

Other Operating Results

Other operating results include gain (loss) on investment securities, equity in earnings (losses) of affiliates and other financial adjustments. Please refer to Note 4 to the consolidated financial information for a reconciliation of segment results to income statement information. Loss before income taxes in Other decreased from ¥ 29,701 million for the three months ended June 30, 2002 to ¥ 3,516 million for the three months ended June 30, 2003.

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen						% Change		Translation into millions of U.S. dollars			Millions of yen
	For the three months ended											For the year ended
	June 30, 2002 (A)			June 30, 2003 (B)			(B) vs. (A)		June 30, 2003			March 31, 2003
Revenue:
Commissions	¥	46,091		¥	33,752		(26.8	)%	$	281		¥	141,640
Fees from investment banking		15,632			14,498		(7.3	)		121			81,847
Asset management and portfolio service fees		24,190			13,735		(43.2	)		115			79,290
Net gain on trading		36,964			80,432		117.6			671			172,308
Interest and dividends		91,065			113,844		25.0			950			401,924
(Loss) gain on investments in equity securities		(3,325	)		16,168		—			135			(41,288	)
Gain (loss) on private equity investments		3,037			(669	)	—			(6	)		(14,391	)
Other		3,317			8,030		142.1			67			19,589

Total revenue		216,971			279,790		29.0			2,334			840,919
Interest expense		74,305			79,703		7.3			665			274,645

Net revenue		142,666			200,087		40.2			1,669			566,274

Non-interest expenses:
Compensation and benefits		63,595			65,903		3.6			550			244,167
Commissions and floor brokerage		4,477			4,904		9.5			41			20,844
Information processing and communications		18,176			18,890		3.9			157			77,389
Occupancy and related depreciation		14,563			13,319		(8.5	)		111			57,152
Business development expenses		5,895			4,983		(15.5	)		42			24,361
Other		17,589			20,788		18.2			173			94,952

		124,295			128,787		3.6			1,074			518,865

Income before income taxes and cumulative
effect of accounting change		18,371			71,300		288.1			595			47,409

Income tax expense (benefit):
Current		15,100			27,093		79.4			226			25,519
Deferred		(4,775	)		5,159		—			43			11,776

		10,325			32,252		212.4			269			37,295

Income before cumulative effect of accounting change		8,046			39,048		385.3			326			10,114
Cumulative effect of accounting change		109,799			—		—			—			109,799

Net income	¥	117,845		¥	39,048		(66.9	)	$	326		¥	119,913

Per share of common stock:	Yen						% Change		Translation into U.S. dollars			Yen
Basic-
Income before cumulative effect of accounting change	¥	4.09		¥	20.14		392.4	%	$	0.17		¥	5.17
Cumulative effect of accounting change		55.86			—		—			—			56.09

Net income	¥	59.95		¥	20.14		(66.4	)	$	0.17		¥	61.26

Diluted-
Income before cumulative effect of accounting change	¥	4.09		¥	20.14		392.4		$	0.17		¥	5.17
Cumulative effect of accounting change		55.86			—		—			—			56.09

Net income	¥	59.95		¥	20.14		(66.4	)	$	0.17		¥	61.26

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen									Translation into millions of U.S. dollars
	June 30, 2002			March 31, 2003			June 30, 2003			June 30, 2003
ASSETS
Cash and cash deposits:
Cash and cash equivalents	¥	358,509		¥	491,237		¥	681,628		$	5,686
Time deposits		398,373			422,570			291,133			2,429
Deposits with stock exchanges and other segregated cash		33,508			41,702			66,962			559

		790,390			955,509			1,039,723			8,674

Loans and receivables:
Loans receivable from customers		255,444			257,254			255,839			2,134
Loans receivable from other than customers		539,047			179,117			158,531			1,323
Receivables from customers		196,120			404,388			11,630			97
Receivables from other than customers		268,001			311,665			584,959			4,880
Receivables under resale agreements and securities borrowed transactions		6,810,596			8,603,170			9,388,771			78,325
Securities pledged as collateral		2,646,734			3,359,807			5,268,547			43,952
Allowance for doubtful accounts		(18,163	)		(15,159	)		(14,468	)		(121	)

		10,697,779			13,100,242			15,653,809			130,590

Trading assets and private equity investments:
Securities inventory		4,712,795			5,152,393			6,138,174			51,207
Derivative contracts		286,165			503,417			520,031			4,338
Private equity investments		272,037			270,890			278,448			2,323

		5,270,997			5,926,700			6,936,653			57,868

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥162,406 million at June 30, 2002, ¥177,374 million at March 31, 2003, and ¥178,454 million ($1,489 million) at June 30, 2003, respectively)		168,512			184,868			181,520			1,514
Lease deposits		73,896			65,211			67,034			559
Non-trading debt securities		417,253			270,120			231,271			1,929
Investments in equity securities		192,024			138,084			152,314			1,271
Investments in and advances to affiliated companies		260,044			223,970			228,739			1,908
Deferred tax assets		127,975			112,313			120,152			1,002
Other assets		139,672			192,429			167,833			1,401

		1,379,376			1,186,995			1,148,863			9,584

Total assets	¥	18,138,542		¥	21,169,446		¥	24,779,048		$	206,716

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen									Translation into millions of U.S. dollars
	June 30, 2002			March 31, 2003			June 30, 2003			June 30, 2003
LIABILITIES AND SHAREHOLDERS’ EQUITY
Payables, borrowings and deposits:
Payables to customers	¥	199,416		¥	180,565		¥	581,881		$	4,854
Payables to other than customers		243,239			384,910			486,531			4,059
Payables under repurchase agreements and securities loaned transactions		8,433,607			10,952,135			13,541,593			112,969
Short-term borrowings		1,596,326			1,497,468			1,336,501			11,150
Time and other deposits received		310,273			256,184			407,187			3,397

		10,782,861			13,271,262			16,353,693			136,429

Trading liabilities:
Securities sold but not yet purchased		3,238,810			3,401,715			3,751,753			31,299
Derivative contracts		247,212			487,005			537,553			4,484

		3,486,022			3,888,720			4,289,306			35,783

Other liabilities:
Accrued income taxes		26,791			28,608			35,321			295
Accrued pension and severance costs		56,446			86,582			87,253			728
Other		225,275			296,509			277,467			2,314

		308,512			411,699			400,041			3,337

Long-term borrowings		1,854,588			1,955,437			2,045,735			17,066

Total liabilities		16,431,983			19,527,118			23,088,775			192,615

Commitments and contingencies (See Note 3)
Shareholders’ equity:
Common stock
Authorized 6,000,000,000 shares Issued 1,965,919,860 shares at June 30, 2002, March 31, 2003 and June 30, 2003		182,800			182,800			182,800			1,525

Additional paid-in capital		150,979			151,328			151,459			1,264

Retained earnings		1,434,065			1,407,028			1,446,077			12,064

Accumulated other comprehensive (loss) income
Minimum pension liability adjustment		(24,370	)		(41,558	)		(40,858	)		(341	)
Cumulative translation adjustments		(36,298	)		(22,329	)		(10,591	)		(89	)

		(60,668	)		(63,887	)		(51,449	)		(430	)

		1,707,176			1,677,269			1,728,887			14,423
Less-Common stock held in treasury, at cost
351,529 shares, 25,556,340 shares, and 28,716,559 shares at June 30, 2002,
March 31, 2003, and June 30, 2003, respectively		(617	)		(34,941	)		(38,614	)		(322	)

Total shareholders’ equity		1,706,559			1,642,328			1,690,273			14,101

Total liabilities and shareholders’ equity	¥	18,138,542		¥	21,169,446		¥	24,779,048		$	206,716

NOMURA HOLDINGS, INC.

CONSOLIDATED INFORMATION OF CASH FLOWS

(UNAUDITED)

	Millions of yen						Translation into millions of U.S. dollars		Millions of yen
	For the three months ended June 30, 2002			For the three months ended June 30, 2003			For the three months ended June 30, 2003		For the Year ended March 31, 2003
Cash flows from operating activities:
Net income	¥	117,845		¥	39,048		$326		¥	119,913
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative effect of accounting change		(109,799	)		—		—			(109,799	)
Depreciation and amortization		7,383			8,287		69			31,249
Loss (gain) on investments in equity securities		3,325			(16,168	)	(135	)		41,288
Deferred income tax (benefit) expense		(4,775	)		5,159		43			11,776
Changes in operating assets and liabilities :
Time deposits		(26,734	)		144,901		1,209			(36,585	)
Deposits with stock exchanges and other segregated cash		1,496			(24,799	)	(207	)		(6,271	)
Trading assets and private equity investments		(564,774	)		(931,447	)	(7,770	)		(1,167,700	)
Trading liabilities		896,764			340,739		2,842			1,242,333
Receivables under resale agreements and securities borrowed transactions		(623,625	)		(677,193	)	(5,650	)		(2,315,743	)
Payables under repurchase agreements and securities loaned transactions		813,454			2,454,886		20,480			3,236,698
Loans and receivables, net of allowance		(33,017	)		(1,684,328	)	(14,051	)		(590,802	)
Time and other deposits received and other payables		(427,251	)		616,264		5,141			(477,756	)
Accrued income taxes, net		(20,221	)		6,524		54			(31,738	)
Other, net		(26,091	)		(20,911	)	(174	)		87,250

Net cash provided by operating activities		3,980			260,962		2,177			34,113

Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities		(8,779	)		(4,300	)	(36	)		(45,235	)
Proceeds from sales of office buildings, land, equipment and facilities		7			924		8			690
Payments for purchases of investments in equity securities		(564	)		(14	)	(0	)		(10,299	)
Proceeds from sales of investments in equity securities		4,279			1,724		14			30,067
Decrease in non-trading debt securities, net		6,717			40,551		338			152,209
(Increase) decrease in other investments and other assets, net		(1,985	)		(5,267	)	(44	)		6,621

Net cash (used in) provided by investing activities		(325	)		33,618		280			134,053

Cash flows from financing activities:
Increase in long-term borrowings		257,699			149,589		1,248			654,407
Decrease in long-term borrowings		(60,103	)		(77,838	)	(649	)		(324,232	)
Decrease in short-term borrowings, net		(153,996	)		(150,153	)	(1,253	)		(290,775	)
Payments for repurchases of common stock		—			(3,673	)	(31	)		(34,527	)
Payments for cash dividends		(29,485	)		(29,117	)	(243	)		(29,485	)

Net cash provided by (used in) financing activities		14,115			(111,192	)	(928	)		(24,612	)

Effect of exchange rate changes on cash and cash equivalents		(15,896	)		7,003		59			(8,952	)

Net increase in cash and cash equivalents		1,874			190,391		1,588			134,602
Cash and cash equivalents at beginning of the period		356,635			491,237		4,098			356,635

Cash and cash equivalents at end of the period	¥	358,509		¥	681,628		$5,686		¥	491,237

NOMURA HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION

(UNAUDITED)

1. Accounting policies:

The consolidated financial information herein has basically been prepared in accordance with Nomura’s accounting policies which are disclosed in the footnotes of Nomura Holdings, Inc’s Annual Securities Report (the Annual Report filed with the Director of the Kanto Local Finance Bureau of the Ministry of Finance in Japan) and Form 20-F (the Annual Report filed with the U.S. Securities and Exchange Commission) for the year ended March 31, 2003.

2. U.S. dollar amounts:

The U.S. dollar amounts are included solely for convenience of the reader and have been translated at the rate of ¥119.87 = US$1, the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2003. This translation should not be construed to imply that the yen amounts actually represent, or have been or could be converted into, equivalent amounts in U.S. dollars.

3. Credit commitments and guarantees:

In the normal course of the Company’s subsidiaries’ banking and financing activities, the subsidiaries enter into contractual commitments to extend credit and commitments for note issuance facility; issuance of standby letters of credit and other guarantees, which generally have a fixed expiration date. In addition, Nomura enters into certain derivative contracts that meet the accounting definition of a guarantee under FIN No. 45. Contractual amounts of these commitments other than derivative contracts, for which the fair values are recorded on the consolidated balance sheets at fair value, at June 30, 2003 and March 31, 2003 were as follows:

	Millions of yen		Translation into millions of U.S. dollars		Millions of yen
	June 30, 2003		June 30, 2003		March 31, 2003
Commitments to extend credit and note issuance facility	¥	188,476	$	1,572	¥	218,862
Standby letters of credit and other guarantees		50,579		422		49,449

NOMURA HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION (Continued)

(UNAUDITED)

4. Segment Information-Operating segment:

Business segments’ results for the three months ended June 30, 2002, 2003, and for the year ended March 31, 2003, are shown in the following table.

	Millions of yen
	Domestic Retail		Global Wholesale		Asset Management			Other (Inc. elimination)			Total
Three months ended June 30, 2002
Non-interest revenue	¥	66,436	¥	73,321	¥	9,850		¥	(20,288	)	¥	129,319
Net interest revenue		599		16,540		(55	)		(323	)		16,761

Net revenue		67,035		89,861		9,795			(20,611	)		146,080
Non-interest expenses		53,136		53,387		8,682			9,090			124,295

Income (loss) before income taxes	¥	13,899	¥	36,474	¥	1,113		¥	(29,701	)	¥	21,785

Three months ended June 30, 2003
Non-interest revenue	¥	74,573	¥	68,977	¥	7,598		¥	(4,663	)	¥	146,485
Net interest revenue		397		25,177		682			7,884			34,140

Net revenue		74,970		94,154		8,280			3,221			180,625
Non-interest expenses		54,201		56,356		8,192			6,737			125,486

Income (loss) before income taxes	¥	20,769	¥	37,798	¥	88		¥	(3,516	)	¥	55,139


	Change (%)
	Change (%)
Income (loss) before income taxes
Three months ended June 30, 2003 vs. 2002		49.4		3.6		(92.1	)		—			153.1


	Translation into millions of U.S. dollars
Three months ended June 30, 2003
Non-interest revenue	$	622	$	575	$	63		$	(38	)	$	1,222
Net interest revenue		3		210		6			66			285

Net revenue		625		785		69			28			1,507
Non-interest expenses		452		470		68			57			1,047

Income (loss) before income taxes	$	173	$	315	$	1		$	(29	)	$	460


	Millions of yen
Year ended March 31, 2003
Non-interest revenue	¥	246,938	¥	196,675	¥	34,828		¥	(2,966	)	¥	475,475
Net interest revenue		2,313		101,794		2,232			20,939			127,278

Net revenue		249,251		298,469		37,060			17,973			602,753
Non-interest expenses		213,562		207,436		33,866			58,678			513,542

Income (loss) before income taxes	¥	35,689	¥	91,033	¥	3,194		¥	(40,705	)	¥	89,211

NOMURA HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION (Continued)

(UNAUDITED)

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

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

	Millions of yen						Translation into millions of U.S. dollars			Millions of yen
	For the three months ended									For the year ended
	June 30, 2002			June 30, 2003			June 30, 2003			March 31, 2003
(Loss)/gain on undesignated hedging instruments included in Net gain on trading	¥	(16,914	)	¥	(6,610	)	$	(55	)	¥	2,065
(Loss)/gain on investment securities		(744	)		1,137			10			(561	)
Equity in (losses)/income of affiliates		(37	)		535			4			(3,842	)
Corporate items		1,868			(5,604	)		(47	)		(9,356	)
Impairment loss on investment in an affiliated company		—			—			—			(21,165	)
Others		(13,874	)		7,026			59			(7,846	)

Total	¥	(29,701	)	¥	(3,516	)	$	(29	)	¥	(40,705	)

The table below presents reconciliation of the combined segment information included in the table on previous page to reported net revenue and income before income taxes and cumulative effect of accounting change in the consolidated income statement information.

	Millions of yen						Translation into millions of U.S. dollars			Millions of yen
	For the three months ended									For the year ended
	June 30, 2002			June 30, 2003			June 30, 2003			March 31, 2003
Net revenue	¥	146,080		¥	180,625		$	1,507		¥	602,753
Unrealized (loss)/gain on investments in equity securities held for relationship purpose		(3,414	)		16,682			139			(43,017	)
Effect of consolidation/deconsolidation of the PFG entities and other private equity investee companies		—			2,780			23			6,538

Consolidated net revenue	¥	142,666		¥	200,087		$	1,669		¥	566,274

Income before income taxes	¥	21,785		¥	55,139		$	460		¥	89,211
Unrealized (loss)/gain on investments in equity securities held for relationship purpose		(3,414	)		16,682			139			(43,017	)
Effect of consolidation/deconsolidation of the PFG entities and other private equity investee companies		—			(521	)		(4	)		1,215

Consolidated income before income taxes and cumulative effect of accounting change	¥	18,371		¥	71,300		$	595		¥	47,409

NOMURA HOLDINGS, INC.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

“Commissions received” and “Net gain on trading” consist of the following.

Commissions received

	Millions of yen				% Change		Translation into millions of U.S. dollars		Millions of yen
	For the three months ended								For the year ended
	June 30, 2002(A)		June 30, 2003 (B)		(B) vs. (A)		June 30, 2003		March 31, 2003
Commissions	¥	46,091	¥	33,752	(26.8	)	$	281	¥	141,640

Brokerage Commissions		28,548		22,078	(22.7	)		184		85,157
Commissions for Distribution of Investment Trust		11,841		7,170	(39.4	)		60		30,507
Fees from Investment Banking		15,632		14,498	(7.3	)		121		81,847

Underwriting and Distribution		12,800		11,834	(7.5	)		99		62,365
M&A / Financial Advisory Fees		2,595		2,608	0.5			22		16,803
Asset Management and Portfolio Service Fees		24,190		13,735	(43.2	)		115		79,290

Asset Management Fees		21,827		11,322	(48.1	)		94		70,181
Total	¥	85,913	¥	61,985	(27.9	)	$	517	¥	302,777

Net gain on trading

	Millions of yen					% Change	Translation into millions of U.S. dollars		Millions of yen
	For the three months ended								For the year ended
	June 30, 2002 (A)			June 30, 2003 (B)		(B) vs. (A)	June 30, 2003		March 31, 2002
Merchant Banking	¥	(738	)	¥	91	—	$	1	¥	2,779
Equity Trading		18,510			20,060	8.4		167		35,919
Fixed Income and Other Trading		19,192			60,281	214.1		503		133,610

Total	¥	36,964		¥	80,432	117.6	$	671	¥	172,308

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen
	For the three months ended
	June 30, 2002			September 30, 2002			December 31, 2002			March 31, 2003			June 30, 2003
Revenue:
Commissions	¥	46,091		¥	34,685		¥	34,303		¥	26,561		¥	33,752
Fees from investment banking		15,632			18,281			16,937			30,997			14,498
Asset management and portfolio service fees		24,190			21,905			17,541			15,654			13,735
Net gain on trading		36,964			29,185			48,340			57,819			80,432
Interest and dividends		91,065			115,848			107,190			87,821			113,844
(Loss) gain on investments in equity securities		(3,325	)		(7,094	)		(21,912	)		(8,957	)		16,168
Gain (loss) on private equity investments		3,037			(5,929	)		(1,991	)		(9,508	)		(669	)
Other		3,317			6,401			3,729			6,142			8,030

Total revenue		216,971			213,282			204,137			206,529			279,790
Interest expense		74,305			72,533			71,990			55,817			79,703

Net revenue		142,666			140,749			132,147			150,712			200,087

Non-interest expenses:
Compensation and benefits		63,595			57,688			59,472			63,412			65,903
Commissions and floor brokerage		4,477			5,553			3,564			7,250			4,904
Information processing and communications		18,176			19,233			18,801			21,179			18,890
Occupancy and related depreciation		14,563			14,537			14,118			13,934			13,319
Business development expenses		5,895			7,782			4,823			5,861			4,983
Other		17,589			13,690			12,379			51,294			20,788

		124,295			118,483			113,157			162,930			128,787

Income (loss) before income taxes and cumulative effect of accounting change		18,371			22,266			18,990			(12,218	)		71,300

Income tax expense (benefit):
Current		15,100			(1,256	)		2,085			9,590			27,093
Deferred		(4,775	)		10,297			1,934			4,320			5,159

		10,325			9,041			4,019			13,910			32,252

Income (loss) before cumulative effect of accounting change		8,046			13,225			14,971			(26,128	)		39,048
Cumulative effect of accounting change		109,799			—			—			—			—

Net income (loss)	¥	117,845		¥	13,225		¥	14,971		¥	(26,128	)	¥	39,048

Per share of common stock:								Yen

Basic-
Income (loss) before cumulative effect of accounting change	¥	4.09		¥	6.73		¥	7.65		¥	(13.46	)	¥	20.14
Cumulative effect of accounting change		55.86			—			—			—			—

Net income (loss)	¥	59.95		¥	6.73		¥	7.65		¥	(13.46	)	¥	20.14

Diluted-
Income (loss) before cumulative effect of accounting change	¥	4.09		¥	6.73		¥	7.65		¥	(13.46	)	¥	20.14
Cumulative effect of accounting change		55.86			—			—			—			—

Net income (loss)	¥	59.95		¥	6.73		¥	7.65		¥	(13.46	)	¥	20.14

Unconsolidated Financial Information of Major Consolidated Entities

(UNAUDITED)

The unconsolidated financial information, prepared under Japanese GAAP, is presented for the following entities;

-Nomura Holdings, Inc. Financial Information (Parent Company Only)

-Nomura Securities Co., Ltd. Financial Information

NOMURA HOLDINGS, INC. (PARENT COMPANY ONLY)

INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen
	For the three months ended			For the year ended
	June 30, 2003		June 30, 2002	March 31, 2003
Operating revenue	41,044		24,939	102,633
Operating expenses	23,036		21,901	92,596

Operating income	18,008		3,037	10,036

Non-operating income	590		1,987	3,824
Non-operating expenses	142		59	3,119

Ordinary income	18,455		4,965	10,742

Special profits	22		147	16,498
Special losses	250		59	44,773

Income (loss) before income taxes	18,228		5,053	(17,531	)

Income taxes—current	(1,135	)	0	(39,527	)
Income taxes—deferred	1,666		4,243	34,821

Net income (loss)	17,698		808	(12,825	)

Unappropriated retained earnings brought forward	4,606		6,855	6,855

Unappropriated retained earnings (accumulated deficit)	22,304		7,664	(5,969	)

NOMURA HOLDINGS, INC. (PARENT COMPANY ONLY)

BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen
	June 30, 2003	June 30, 2002	March 31, 2003
Assets:
Current Assets	836,750	467,538	652,450
Fixed Assets	1,469,428	1,556,168	1,468,663

Total Assets	2,306,179	2,023,707	2,121,113

Liabilities:
Current Liabilities	446,706	250,375	256,253
Long-term Liabilities	523,193	362,689	522,824

Total Liabilities	969,900	613,064	779,077

Total Shareholders’ Equity	1,336,278	1,410,643	1,342,035

Total Liabilities and Shareholders’ Equity	2,306,179	2,023,707	2,121,113

NOMURA SECURITIES CO., LTD.

INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen
	For the three months ended			For the year ended
	June 30, 2003 (A)	June 30, 2002 (B)	(A) / (B)	March 31, 2003 (C)		(A)*4 / (C)
Operating revenue	151,204	123,248	122.7	470,099		128.7

Commissions	42,204	59,102	71.4	207,103		81.5
Net gain on trading	91,926	50,916	180.5	207,158		177.5
Net gain on other inventories	3	1	259.8	11		141.9
Interest and dividend income	17,070	13,227	129.0	55,826		122.3

Interest expenses	14,467	7,767	186.3	31,167		185.7

Net operating revenue	136,736	115,480	118.4	438,932		124.6

Selling, general and administrative expenses	78,026	78,036	100.0	316,414		98.6

Operating income	58,709	37,444	156.8	122,517		191.7

Non-operating income	482	352	136.9	1,504		128.2
Non-operating expenses	506	351	144.1	2,036		99.5

Ordinary income	58,685	37,444	156.7	121,985		192.4

Special profits	97	—	—	196		199.4
Special losses	153	143	107.0	388		158.6

Income before income taxes	58,629	37,300	157.2	121,793		192.6

Income taxes—current	23,009	10,498	219.2	55,343		166.3
Income taxes—deferred	2,477	3,723	66.5	(4,172	)	—

Net income	33,142	23,079	143.6	70,622		187.7

Unappropriated retained earnings brought forward	29,862	20,351		20,351

Unappropriated retained earnings	63,005	43,430		90,973

NOMURA SECURITIES CO., LTD.

BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen
	June 30, 2003	June 30, 2002	March 31, 2003
Assets
Current Assets:	11,316,808	8,988,903	9,625,560

Trading Assets	7,084,789	4,784,488	5,172,420
Loans with securities as collateral	3,607,477	3,246,187	3,538,974
Other	624,541	958,227	914,165

Fixed Assets	67,613	64,575	70,420

Total Assets	11,384,421	9,053,479	9,695,981

Liabilities
Current Liabilities:	10,278,298	7,851,222	8,606,713

Trading liabilities	3,009,734	2,670,026	2,869,769
Borrowings with securities as collateral	5,087,882	3,329,965	3,729,547
Other	2,180,681	1,851,230	2,007,396

Long-term Liabilities	439,633	600,740	439,963

Statutory Reserves	1,005	607	851

Total Liabilities	10,718,937	8,452,570	9,047,528

Total Shareholder’s Equity	665,484	600,909	648,452

Total Liabilities and Shareholder’s Equity	11,384,421	9,053,479	9,695,981

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

1. Commission Revenues

(1) Breakdown by Category

(Millions of yen except percentages)

	Three Months Ended				Comparison A/B(%)		Year Ended March 31, 2003 (C)		Comparison A/(C*1/4)(%)
	June 3, 2003 (A)		June 30, 2002 (B)		Comparison A/B(%)		Year Ended March 31, 2003 (C)		Comparison A/(C*1/4)(%)
Brokerage commissions	18,461		24,511		75.3	%	73,119		101.0	%

(Stocks)	(15,587	)	(22,742	)	(68.5	)	(65,939	)	(94.6	)
Underwriting commissions	3,569		3,752		95.1		25,686		55.6

(Stocks)	(2,179	)	(2,632	)	(82.8	)	(18,769	)	(46.5	)
(Bonds)	(1,389	)	(1,119	)	(124.1	)	(6,917	)	(80.3	)
Distribution commissions	7,348		11,791		62.3		31,858		92.3

(Investment trust certificates)	(7,134	)	(11,768	)	(60.6	)	(30,277	)	(94.3	)
Other commissions	12,825		19,048		67.3		76,438		67.1

(Investment trust certificates)	(4,619	)	(11,052	)	(41.8	)	(33,933	)	(54.5	)

Total	42,204		59,102		71.4		207,103		81.5

(2) Breakdown by Product

(Millions of yen except percentages)

	Three Months Ended		Comparison A/B(%)		Year Ended March 31, 2003 (C)	Comparison A/(C*1/4)(%)
	June 30, 2003 (A)	June 30, 2002 (B)	Comparison A/B(%)		Year Ended March 31, 2003 (C)	Comparison A/(C*1/4)(%)
Stocks	18,004	26,135	68.9	%	89,400	80.6	%
Bonds	4,485	3,072	146.0		16,726	107.3
Investment trust certificates	14,264	24,034	59.3		69,474	82.1
Others	5,449	5,859	93.0		31,501	69.2

Total	42,204	59,102	71.4		207,103	81.5

2. Net Gain/Loss on Trading

(Millions of yen except percentages)

	Three Months Ended		Comparison A/B(%)		Year Ended March 31, 2003 (C)	Comparison A/(C*1/4)(%)
	June 30, 2003 (A)	June 30, 2002 (B)	Comparison A/B(%)		Year Ended March 31, 2003 (C)	Comparison A/(C*1/4)(%)
Stocks	19,063	10,212	186.7	%	51,250	148.8	%
Bonds and forex	72,862	40,703	179.0		155,907	186.9

Total	91,926	50,916	180.5		207,158	177.5

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

3. Stock Trading (excluding futures transactions)

	(Millions of shares or yen except per share data and percentages)
	Three Months Ended								Comparison A/B(%)				Year Ended March 31, 2003 (C)				Comparison A/(C*1/4)(%)
	June 30, 2003(A)				June 30, 2002 (B)				Comparison A/B(%)				Year Ended March 31, 2003 (C)				Comparison A/(C*1/4)(%)
	Number of shares		Amount		Number of shares		Amount		Number of shares		Amount		Number of shares		Amount		Number of shares		Amount
Total	13,799		9,418,335		11,992		14,214,774		115.1	%	66.3	%	42,770		42,064,005		129.1	%	89.6	%

(Brokerage)	9,302		5,874,135		6,779		7,589,083		137.2		77.4		26,404		24,210,854		140.9		97.0
(Proprietary Trading)	4,496		3,544,199		5,212		6,625,690		86.3		53.5		16,365		17,853,150		109.9		79.4

Brokerage / Total	67.4	%	62.4	%	56.5	%	53.4	%					61.7	%	57.6	%

TSE Share	6.7	%	7.4	%	8.1	%	9.9	%					7.5	%	8.7	%

Brokerage Commission per share (yen)	1.64				3.30								2.42

4. Underwriting, Subscription, and Distribution

	(Millions of shares or yen except percentages)
	Three Months Ended		Comparison A/B(%)		Year Ended March 31, 2003 (C)	Comparison A/(C*1/4)(%)
	June 30, 2003 (A)	June 30, 2002 (B)	Comparison A/B(%)		Year Ended March 31, 2003 (C)	Comparison A/(C*1/4)(%)
Underwriting
Stocks (number of shares)	44	12	358.6	%	191	92.3	%
(yen amount)	46,446	181,739	25.6		503,603	36.9
Bonds (face value)	1,544,231	1,610,270	95.9		5,710,311	108.2
Investment trust certificates (yen amount)	—	—	—		—	—
Commercial paper and others (face value)	134,700	170,200	79.1		757,500	71.1

Subscripition and Distribution*
Stocks (number of shares)	50	12	413.8		1,486	13.5
(yen amount)	49,404	157,187	31.4		607,806	32.5
Bonds (face value)	501,409	507,237	98.9		1,840,377	109.0
Investment trust certificates (yen amount)	3,133,883	3,310,141	94.7		11,905,684	105.3
Commercial paper and others (face value)	134,700	170,200	79.1		757,500	71.1

Includes secondary offerings and private placements.

5. Capital Adequacy Ratio

			(Millions of yen except percentages)
			June 30, 2003		June 30, 2002		March 31, 2003
Tier I		(A)	665,484		600,909		632,341

Tier II	Statutory reserves		1,005		607		851
	Allowance for doubtful accounts		123		724		211
	Subordinated debt		189,900		190,000		190,000

	Total	(B)	191,029		191,332		191,062

Illiquid Asset		(C)	77,853		75,464		74,298

Net Capital	(A) + (B) – (C) =	(D)	778,659		716,777		749,106

	Market risk		118,295		108,193		101,337
Risk	Counterparty risk		118,920		110,755		103,251
	Basic risk		86,260		81,999		83,199

	Total	(E)	323,475		300,947		287,789

Capital Adequacy Ratio		(D)/(E)	240.7	%	238.1	%	260.2	%

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