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 January 2017

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 – nine months ended December 31, 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: January 31, 2017	By:	/s/ Hajime Ikeda
		Hajime Ikeda
		Senior Managing Director

Financial Summary For the Nine Months Ended December 31, 2016 (U.S. GAAP)


Date:		January 31, 2017
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 nine months ended December 31
	2015						2016
	(Millions of yen, except per share data)
				% Change from December 31, 2014						% Change from December 31, 2015
Total revenue		1,360,881			(4.2	%)		1,288,405			(5.3	%)
Net revenue		1,115,535			(4.6	%)		1,054,120			(5.5	%)
Income before income taxes		177,496			(26.6	%)		240,487			35.5	%
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		150,703			5.6	%		178,351			18.3	%
Comprehensive income (loss)		132,536			(53.5	%)		190,070			43.4	%
Basic-Net income attributable to NHI shareholders per share (Yen)		41.88						49.94
Diluted-Net income attributable to NHI shareholders per share (Yen)		40.85						48.76
Return on shareholders’ equity - annualized		7.3	%					8.6	%

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 December 31
	2016			2016
	(Millions of yen, except per share data)
Total assets		41,090,167			43,052,109
Total equity		2,743,015			2,867,979
Total NHI shareholders’ equity		2,700,239			2,807,241
Total NHI shareholders’ equity as a percentage of total assets		6.6	%		6.5	%
Total NHI shareholders’ equity per share (Yen)		748.32			796.79

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: Fiscal year 2017 Q4 dividend forecasts 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 in accordance with changes in the scope of consolidation.)

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

(3) Changes in accounting policies

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

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

(4) Number of shares issued (common stock)


	At March 31		At December 31
	2016		2016
Number of shares outstanding (including treasury stock)		3,822,562,601		3,822,562,601
Number of treasury stock		214,170,602		299,352,820

	For the nine months ended December 31
	2015		2016
Average number of shares outstanding (year-to-date)		3,598,664,288		3,571,089,578

*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) Changes in Tax Laws			P.14
(4) Unconsolidated Quarterly Financial Statements [Japanese GAAP]			P.15
(5) Other			P.15

— 1 —

1. Qualitative Information of the Quarterly Consolidated Results

(1) Consolidated Operating Results

U.S. GAAP


	Billions of yen						% Change
	For the nine months ended						(B-A)/(A)
	December 31, 2015 (A)			December 31, 2016 (B)			(B-A)/(A)
Net revenue		1,115.5			1,054.1			(5.5	)
Non-interest expenses		938.0			813.6			(13.3	)

Income (loss) before income taxes		177.5			240.5			35.5
Income tax expense		24.0			60.7			152.6

Net income (loss)		153.5			179.8			17.1

Less: Net income (loss) attributable to noncontrolling interests		2.8			1.4			(48.9	)

Net income (loss) attributable to NHI shareholders		150.7			178.4			18.3

Return on shareholders’ equity - annualized		7.3	%		8.6	%		—

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 1,054.1 billion yen for the nine months ended December 31, 2016, a decrease of 5.5% from the same period in the prior year. Non-interest expenses decreased by 13.3% from the same period in the prior year to 813.6 billion yen. Income before income taxes was 240.5 billion yen and net income attributable to NHI shareholders was 178.4 billion yen for the nine months ended December 31, 2016.

Segment Information


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2015 (A)		December 31, 2016 (B)		(B-A)/(A)
Net revenue		1,112.7		1,044.7		(6.1	)
Non-interest expenses		938.0		813.6		(13.3	)

Income (loss) before income taxes		174.7		231.0		32.3

In the above segment information totals, which exclude unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the nine months ended December 31, 2016 was 1,044.7 billion yen, a decrease of 6.1% from the same period in the prior year. Non-interest expenses decreased by 13.3% from the same period in the prior year to 813.6 billion yen. Income before income taxes was 231.0 billion yen for the nine months ended December 31, 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 nine months ended				(B-A)/(A)
	December 31, 2015 (A)		December 31, 2016 (B)		(B-A)/(A)
Net revenue		350.6		271.3		(22.6	)
Non-interest expenses		235.2		222.2		(5.5	)

Income (loss) before income taxes		115.5		49.0		(57.5	)

Net revenue decreased by 22.6% from the same period in the prior year to 271.3 billion yen, primarily due to decreasing commissions from distribution of investment trusts and brokerage. Non-interest expense decreased by 5.5% to 222.2 billion yen. As a result, income before income taxes decreased by 57.5% to 49.0 billion yen.

Operating Results of Asset Management


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2015 (A)		December 31, 2016 (B)		(B-A)/(A)
Net revenue		75.1		76.1		1.4
Non-interest expenses		44.2		42.5		(4.0	)

Income (loss) before income taxes		30.9		33.7		9.0

Net revenue increased by 1.4% from the same period in the prior year to 76.1 billion yen. Non-interest expense decreased by 4.0% to 42.5 billion yen. As a result, income before income taxes increased by 9.0% to 33.7 billion yen. Assets under management were 43.2 trillion yen as of December 31, 2016.

Operating Results of Wholesale


	Billions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2015 (A)		December 31, 2016 (B)		(B-A)/(A)
Net revenue		584.1		568.1		(2.7	)
Non-interest expenses		545.8		434.8		(20.3	)

Income (loss) before income taxes		38.2		133.3		248.7

Net revenue decreased by 2.7% from the same period in the prior year to 568.1 billion yen. Non-interest expense decreased by 20.3% to 434.8 billion yen. As a result, income before income taxes increased by 248.7% from the same period in the prior year to 133.3 billion yen.

— 3 —

Other Operating Results


	Billions of yen					% Change
	For the nine months ended					(B-A)/(A)
	December 31, 2015 (A)			December 31, 2016 (B)		(B-A)/(A)
Net revenue		102.9			129.2		25.6
Non-interest expenses		112.8			114.2		1.2

Income (loss) before income taxes		(9.9	)		15.0		—

Net revenue was 129.2 billion yen. Income before income taxes was 15.0 billion yen.

(2) Consolidated Financial Position

Total assets as of December 31, 2016 were 43,052.1 billion yen, an increase of 1,961.9 billion yen compared to March 31, 2016, mainly due to the increase in Securities purchased under agreements to resell. Total liabilities as of December 31, 2016 were 40,184.1 billion yen, an increase of 1,837.0 billion yen compared to March 31, 2016, mainly due to the increase in Securities sold under agreements to repurchase and Trading liabilities. Total equity as of December 31, 2016 was 2,868.0 billion yen, an increase of 125.0 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			December 31, 2016			Increase/ (Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents		3,476,261			2,647,280			(828,981	)
Time deposits		196,632			185,418			(11,214	)
Deposits with stock exchanges and other segregated cash		225,950			264,793			38,843

Total cash and cash deposits		3,898,843			3,097,491			(801,352	)

Loans and receivables:
Loans receivable		1,605,603			1,661,118			55,515
Receivables from customers		210,844			120,227			(90,617	)
Receivables from other than customers		1,156,608			1,105,080			(51,528	)
Allowance for doubtful accounts		(3,477	)		(3,526	)		(49	)

Total loans and receivables		2,969,578			2,882,899			(86,679	)

Collateralized agreements:
Securities purchased under agreements to resell		9,205,165			11,263,688			2,058,523
Securities borrowed		5,872,495			6,708,693			836,198

Total collateralized agreements		15,077,660			17,972,381			2,894,721

Trading assets and private equity investments:
Trading assets*		16,379,424			16,141,117			(238,307	)
Private equity investments		30,578			25,645			(4,933	)

Total trading assets and private equity investments		16,410,002			16,166,762			(243,240	)

Other assets:
Office buildings, land, equipment and facilities
(net of accumulated depreciation and amortization of ¥402,599 million as of March 31, 2016 and ¥437,669 million as of December 31, 2016)		355,507			340,286			(15,221	)
Non-trading debt securities*		870,812			799,251			(71,561	)
Investments in equity securities*		137,970			149,234			11,264
Investments in and advances to affiliated companies*		395,284			411,397			16,113
Other		974,511			1,232,408			257,897

Total other assets		2,734,084			2,932,576			198,492

Total assets		41,090,167			43,052,109			1,961,942

*Including securities pledged as collateral

— 6 —


			Millions of yen
			March 31, 2016			December 31, 2016			Increase/ (Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				662,902			620,934			(41,968	)
Payables and deposits:
Payables to customers				688,196			1,024,080			335,884
Payables to other than customers				1,337,931			1,916,879			578,948
Deposits received at banks				2,222,991			1,058,930			(1,164,061	)

Total payables and deposits				4,249,118			3,999,889			(249,229	)

Collateralized financing:
Securities sold under agreements to repurchase				14,192,309			15,812,389			1,620,080
Securities loaned				1,937,009			1,883,569			(53,440	)
Other secured borrowings				476,273			290,850			(185,423	)

Total collateralized financing				16,605,591			17,986,808			1,381,217

Trading liabilities				7,499,335			8,712,668			1,213,333
Other liabilities				1,200,647			1,283,935			83,288
Long-term borrowings				8,129,559			7,579,896			(549,663	)

Total liabilities				38,347,152			40,184,130			1,836,978

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 December 31, 2016
Outstanding	-	3,608,391,999 shares as of March 31, 2016 and
		3,523,209,781 shares as of December 31, 2016		594,493			594,493			—
Additional paid-in capital				692,706			681,758			(10,948	)
Retained earnings				1,516,577			1,641,167			124,590
Accumulated other comprehensive income				44,980			75,846			30,866

Total NHI shareholders’ equity before treasury stock				2,848,756			2,993,264			144,508

Common stock held in treasury, at cost -
214,170,602 shares as of March 31, 2016 and
299,352,820 shares as of December 31, 2016				(148,517	)		(186,023	)		(37,506	)

Total NHI shareholders’ equity				2,700,239			2,807,241			107,002

Noncontrolling interests				42,776			60,738			17,962

Total equity				2,743,015			2,867,979			124,964

Total liabilities and equity				41,090,167			43,052,109			1,961,942

— 7 —

(2) Consolidated Statements of Income (UNAUDITED)


	Millions of yen				% Change
	For the nine months ended				(B-A)/(A)
	December 31, 2015(A)		December 31, 2016(B)		(B-A)/(A)
Revenue:
Commissions		344,167		237,152		(31.1	)
Fees from investment banking		89,380		64,409		(27.9	)
Asset management and portfolio service fees		175,925		159,858		(9.1	)
Net gain on trading		292,490		367,286		25.6
Gain on private equity investments		10,447		163		(98.4	)
Interest and dividends		333,121		332,797		(0.1	)
Gain on investments in equity securities		2,994		10,553		252.5
Other		112,357		116,187		3.4

Total revenue		1,360,881		1,288,405		(5.3	)
Interest expense		245,346		234,285		(4.5	)

Net revenue		1,115,535		1,054,120		(5.5	)

Non-interest expenses:
Compensation and benefits		447,426		381,510		(14.7	)
Commissions and floor brokerage		97,990		70,016		(28.5	)
Information processing and communications		142,984		128,002		(10.5	)
Occupancy and related depreciation		57,498		51,910		(9.7	)
Business development expenses		26,114		24,025		(8.0	)
Other		166,027		158,170		(4.7	)

Total non-interest expenses		938,039		813,633		(13.3	)

Income before income taxes		177,496		240,487		35.5
Income tax expense		24,039		60,730		152.6

Net income		153,457		179,757		17.1

Less: Net income attributable to noncontrolling interests		2,754		1,406		(48.9	)

Net income attributable to NHI shareholders		150,703		178,351		18.3

Per share of common stock:

	Yen				% Change
Basic-
Net income attributable to NHI shareholders per share		41.88		49.94		19.2

Diluted-
Net income attributable to NHI shareholders per share		40.85		48.76		19.4

— 8 —

(3) Consolidated Statements of Comprehensive Income (UNAUDITED)


	Millions of yen						% Change
	For the nine months ended
	December 31, 2015(A)			December 31, 2016(B)			(B-A)/(A)
Net income		153,457			179,757			17.1
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments		(1,998	)		27,770			—
Deferred income taxes		(18,051	)		(1,332	)		—

Total		(20,049	)		26,438			—

Defined benefit pension plans:
Pension liability adjustment		(297	)		1,197			—
Deferred income taxes		225			(334	)		—

Total		(72	)		863			—

Non-trading securities:
Net unrealized gain (loss) on non-trading securities		(992	)		(7,606	)		—
Deferred income taxes		192			2,463			—

Total		(800	)		(5,143	)		—

Own Credit Adjustments:
Own Credit Adjustments		—			(13,865	)		—
Deferred income taxes		—			2,020			—

Total		—			(11,845	)		—

Total other comprehensive income (loss)		(20,921	)		10,313			—

Comprehensive income		132,536			190,070			43.4
Less: Comprehensive income attributable to noncontrolling interests		1,820			147			(91.9	)

Comprehensive income attributable to NHI shareholders		130,716			189,923			45.3

(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 nine months ended					(B-A)/(A)
	December 31, 2015 (A)			December 31, 2016 (B)		(B-A)/(A)
Net revenue
Business segment information:
Retail		350,627			271,257		(22.6	)
Asset Management		75,098			76,118		1.4
Wholesale		584,072			568,080		(2.7	)

Subtotal		1,009,797			915,455		(9.3	)
Other		102,913			129,213		25.6

Net revenue		1,112,710			1,044,668		(6.1	)

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		2,825			9,452		234.6

Net revenue		1,115,535			1,054,120		(5.5	)


Non-interest expenses
Business segment information:
Retail		235,153			222,233		(5.5	)
Asset Management		44,210			42,458		(4.0	)
Wholesale		545,833			434,757		(20.3	)

Subtotal		825,196			699,448		(15.2	)
Other		112,843			114,185		1.2

Non-interest expenses		938,039			813,633		(13.3	)

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

Non-interest expenses		938,039			813,633		(13.3	)


Income (loss) before income taxes
Business segment information:
Retail		115,474			49,024		(57.5	)
Asset Management		30,888			33,660		9.0
Wholesale		38,239			133,323		248.7

Subtotal		184,601			216,007		17.0
Other *		(9,930	)		15,028		—

Income (loss) before income taxes		174,671			231,035		32.3

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes		2,825			9,452		234.6

Income (loss) before income taxes		177,496			240,487		35.5

*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 nine months ended						(B-A)/(A)
	December 31, 2015 (A)			December 31, 2016 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		(2,128	)		(8,093	)		—
Realized gain (loss) on investments in equity securities held for operating purposes		169			1,101			551.5
Equity in earnings of affiliates		27,669			22,963			(17.0	)
Corporate items		(47,096	)		(10,341	)		—
Other		11,456			9,398			(18.0	)

Total		(9,930	)		15,028			—

— 10 —

(6) Significant Changes in Equity (UNAUDITED)

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


	Millions of yen
	For the nine months ended December 31, 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		(10,948	)

Balance at end of period		681,758

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		178,351
Cash dividends		(31,997	)
Gain (loss) on sales of treasury stock		(2,470	)

Balance at end of period		1,641,167

Accumulated other comprehensive income
Cumulative translation adjustments
Balance at beginning of year		53,418
Net change during the period		26,373

Balance at end of period		79,791

Defined benefit pension plans
Balance at beginning of year		(33,325	)
Pension liability adjustment		863

Balance at end of period		(32,462	)

Non-trading securities
Balance at beginning of year		24,887
Net unrealized gain (loss) on non-trading securities		(3,819	)

Balance at end of period		21,068

Own credit adjustments
Balance at beginning of year		—
Cumulative effect of change in accounting principle (1)		19,294
Own credit adjustments		(11,845	)

Balance at end of period		7,449

Balance at end of period		75,846

Common stock held in treasury
Balance at beginning of year		(148,517	)
Repurchases of common stock		(61,334	)
Sale of common stock		1
Common stock issued to employees		22,554
Other net change in treasury stock		1,273

Balance at end of period		(186,023	)

Total NHI shareholders’ equity

Balance at end of period		2,807,241

Noncontrolling interests
Balance at beginning of year		42,776
Cumulative effect of change in accounting principle (1)		11,330
Net change during the period		6,632

Balance at end of period		60,738

Total equity

Balance at end of period		2,867,979

(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			September 30, 2016(A)			December 31, 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			86,257		15.6			431,959
Fees from investment banking		24,497		44,867			20,016		28,953			17,313			23,353			23,743		1.7			118,333
Asset management and portfolio service fees		59,940		58,177			57,808		53,081			52,612			52,140			55,106		5.7			229,006
Net gain on trading		124,748		62,551			105,191		61,541			140,143			118,758			108,385		(8.7	)		354,031
Gain (loss) on private equity investments		1,154		602			8,691		3,314			(13	)		(420	)		596		—			13,761
Interest and dividends		113,649		111,540			107,932		106,929			106,551			108,863			117,383		7.8			440,050
Gain (loss) on investments in equity securities		9,186		(10,882	)		4,690		(23,498	)		(9,966	)		7,654			12,865		68.1			(20,504	)
Other		44,931		39,551			27,875		44,103			35,517			41,121			39,549		(3.8	)		156,460

Total revenue		508,448		417,907			434,526		362,215			418,412			426,109			443,884		4.2			1,723,096
Interest expense		84,416		81,303			79,627		82,069			79,932			79,114			75,239		(4.9	)		327,415

Net revenue		424,032		336,604			354,899		280,146			338,480			346,995			368,645		6.2			1,395,681

Non-interest expenses:
Compensation and benefits		155,896		149,723			141,807		126,765			125,949			127,969			127,592		(0.3	)		574,191
Commissions and floor brokerage		34,243		32,621			31,126		25,891			24,172			22,867			22,977		0.5			123,881
Information processing and communications		47,934		48,219			46,831		46,926			44,249			41,601			42,152		1.3			189,910
Occupancy and related depreciation		18,729		19,173			19,596		20,913			18,228			16,803			16,879		0.5			78,411
Business development expenses		8,330		8,454			9,330		9,778			8,296			6,881			8,848		28.6			35,892
Other		52,888		58,537			54,602		62,211			54,821			49,100			54,249		10.5			228,238

Total non-interest expenses		318,020		316,727			303,292		292,484			275,715			265,221			272,697		2.8			1,230,523

Income (loss) before income taxes		106,012		19,877			51,607		(12,338	)		62,765			81,774			95,948		17.3			165,158
Income tax expense		36,368		(28,377	)		16,048		(1,443	)		15,791			19,721			25,218		27.9			22,596

Net income (loss)		69,644		48,254			35,559		(10,895	)		46,974			62,053			70,730		14.0			142,562

Less: Net income attributable to noncontrolling interests		902		1,695			157		8,258			149			873			384		(56.0	)		11,012

Net income (loss) attributable to NHI shareholders		68,742		46,559			35,402		(19,153	)		46,825			61,180			70,346		15.0			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			19.89		16.3			36.53

Diluted-
Net income (loss) attributable to NHI shareholders per share		18.65		12.63			9.61		(5.33	)		12.71			16.68			19.44		16.5			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			September 30, 2016(A)		December 31, 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		101,342			17.6			435,634
Asset Management		26,917		22,854			25,327			20,311			25,934			21,277		28,907			35.9			95,409
Wholesale		205,184		192,911			185,977			136,205			190,932			179,863		197,285			9.7			720,277

Subtotal		362,790		331,423			315,584			241,523			300,617			287,304		327,534			14.0			1,251,320
Other		52,244		16,080			34,589			62,139			48,411			52,111		28,691			(44.9	)		165,052

Net revenue		415,034		347,503			350,173			303,662			349,028			339,415		356,225			5.0			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		12,420			63.9			(20,691	)

Net revenue		424,032		336,604			354,899			280,146			338,480			346,995		368,645			6.2			1,395,681


Non-interest expenses

Business segment information:
Retail		79,790		78,913			76,450			72,850			75,086			71,754		75,393			5.1			308,003
Asset Management		15,171		14,442			14,597			14,533			13,695			13,844		14,919			7.8			58,743
Wholesale		185,513		184,282			176,038			159,039			144,290			140,596		149,871			6.6			704,872

Subtotal		280,474		277,637			267,085			246,422			233,071			226,194		240,183			6.2			1,071,618
Other		37,546		39,090			36,207			46,062			42,644			39,027		32,514			(16.7	)		158,905

Non-interest expenses		318,020		316,727			303,292			292,484			275,715			265,221		272,697			2.8			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		272,697			2.8			1,230,523


Income (loss) before income taxes

Business segment information:
Retail		50,899		36,745			27,830			12,157			8,665			14,410		25,949			80.1			127,631
Asset Management		11,746		8,412			10,730			5,778			12,239			7,433		13,988			88.2			36,666
Wholesale		19,671		8,629			9,939			(22,834	)		46,642			39,267		47,414			20.7			15,405

Subtotal		82,316		53,786			48,499			(4,899	)		67,546			61,110		87,351			42.9			179,702
Other *		14,698		(23,010	)		(1,618	)		16,077			5,767			13,084		(3,823	)		—			6,147

Income (loss) before income taxes		97,014		30,776			46,881			11,178			73,313			74,194		83,528			12.6			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		12,420			63.9			(20,691	)

Income (loss) before income taxes		106,012		19,877			51,607			(12,338	)		62,765			81,774		95,948			17.3			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			September 30, 2016(A)			December 31, 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	)		(15,948	)		—			6,370
Realized gain (loss) on investments in equity securities held for operating purposes		188			17			(36	)		18			582			74			445			501.4			187
Equity in earnings of affiliates		13,831			9,054			4,784			5,058			1,058			10,945			10,960			0.1			32,727
Corporate items		(3,940	)		(39,985	)		(3,171	)		(5,218	)		(4,306	)		(5,266	)		(769	)		—			(52,314	)
Other		7,172			6,852			(2,568	)		7,721			(3,541	)		11,450			1,489			(87.0	)		19,177

Total		14,698			(23,010	)		(1,618	)		16,077			5,767			13,084			(3,823	)		—			6,147

— 13 —

(3) Changes in Tax Laws (UNAUDITED)

On November 18, 2016, the “Act to partially amend the Act for partial amendment of the Local Tax Act and Local Allocation Tax Act and for the Drastic Reform of the Taxation System for Ensuring Stable Financial Resources for Social Security” (Act No.86 of 2016) was enacted. Under this Act, the timing of implementation for the tax reform which had been scheduled at the fiscal year beginning on or after April 1, 2017, was postponed to the fiscal year beginning on or after October 1, 2019.

Though the domestic statutory tax rates to calculate deferred tax assets and liabilities will not change, due to reclassification between national tax and local tax, net deferred tax liabilities increased by 3,366 million yen and income tax expenses increased by the same amount.

— 14 —

(4) 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			December 31, 2016
Assets
Current Assets		4,058,321			3,516,613
Fixed Assets		3,320,801			3,319,646

Total Assets		7,379,122			6,836,259

Liabilities
Current Liabilities		1,599,923			1,379,629
Long-term Liabilities		3,358,039			2,933,877

Total Liabilities		4,957,962			4,313,506

Net Assets
Shareholders’ equity		2,305,324			2,420,407
Valuation and translation adjustments		67,933			65,584
Stock acquisition rights		47,904			36,762

Total Net Assets		2,421,160			2,522,754

Total Liabilities and Net Assets		7,379,122			6,836,259

Nomura Holdings, Inc. Unconsolidated Statements of Income (UNAUDITED)
	Millions of yen
	For the nine months ended
	December 31, 2015			December 31, 2016
Operating revenue		528,610			369,554
Operating expenses		171,135			164,253

Operating income		357,475			205,300

Non-operating income		4,651			3,880
Non-operating expenses		5,843			11,516

Ordinary income		356,283			197,664

Special profits		1,406			6,572
Special losses		1,674			268

Income before income taxes		356,015			203,967

Income taxes - current		5,787			3,985
Income taxes - deferred		(55,091	)		313

Net income		405,319			199,670

(5) 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_3q.pdf

— 15 —