Edgar Filing: NOMURA HOLDINGS INC

Form 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

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 January 2003.

Total number of pages: 58.

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

		1. [Financial Highlights-Nine months ended December 2002]

		2. [Consolidated Results of Operations (US GAAP) Third quarter, fiscal year ended March 2003]

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 Director

Date: January 30, 2003

January 30, 2003

Financial Highlights—Nine months ended December 2002

We are pleased to report the following consolidated financial highlights based on consolidated financial information under US GAAP for the nine months ended December 2002.

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

The following unaudited consolidated financial information is not intended to comply with Regulation S-X and therefore should not be construed to include all information required for interim financial information under Regulation S-X.

NOMURA HOLDINGS, INC.

FINANCIAL HIGHLIGHTS

(UNAUDITED)

							% Change		Translation into U.S. dollars
	For the nine months ended/ as of										For the year ended/ as of
	December 31, 2001 (A)			December 31, 2002 (B)			(B) vs. (A)		December 31, 2002		March 31, 2002
	(yen and dollar amounts in millions, except per share data)
*FOR THE PERIOD ENDED*
							%
Total revenue	¥	1,138,395		¥	634,390		(44.3	)	$	5,342	¥	1,825,399
Net revenue		717,093			415,562		(42.0	)		3,499		1,321,351
Non-interest expenses		821,549			355,935		(56.7	)		2,997		1,148,379
Income (loss) before income taxes		(104,456	)		59,627		—			502		172,972
Income (loss) before cumulative effect of accounting change		(75,909	)		36,242		—			305		168,046
Cumulative effect of accounting change		—			109,799		—			925		—
Net income (loss)		(75,909	)		146,041		—			1,230		168,046
Per share data :
Basic—
Income (loss) before cumulative effect of accounting change		(38.66	)		18.47		—			0.16		85.57
Cumulative effect of accounting change		—			55.95		—			0.47		—
Net income (loss)		(38.66	)		74.42		—			0.63		85.57
Diluted—
Income (loss) before cumulative effect of accounting change		(38.66	)		18.47		—			0.16		85.32
Cumulative effect of accounting change		—			55.95		—			0.47		—
Net income (loss)		(38.66	)		74.42		—			0.63		85.32
Cash dividends		—			—					—		15.00
Return on equity (ROE):		(7.2)%	*		9.5%	*						11.1%

*AT PERIOD-END*
Total Assets	¥	18,679,743		¥	19,451,687				$	163,804	¥	17,758,273
Shareholders’ equity		1,376,430			1,723,821					14,517		1,604,929
Per share data :
Shareholders’ equity		700.18			885.77					7.46		816.48

ROE for the interim period is calculated as below;

(Income before cumulative effect of accounting change x (4/3) + Cumulative effect of accounting change)

(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 nine months ended December 31, 2001 and 2002.

	Millions of yen
	For the nine months ended,
	December 31, 2001			December 31, 2002
Non-interest revenue	¥	718,645		¥	320,287
Net interest revenue		(1,552	)		95,275

Net revenue		717,093			415,562
Non-interest expenses		821,549			355,935

Income (loss) before income taxes		(104,456	)		59,627
Income tax expense (benefit)		(28,547	)		23,385
Cumulative effect of accounting change ⁽¹⁾		—			109,799

Net income (loss)	¥	(75,909	)	¥	146,041

Annualized return on equity (ROE)		(7.2%	)		9.5%

(Note 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 a net revenue of ¥ 416 billion for the nine months ended December 31, 2002, a decrease of ¥ 301 billion or 42% from ¥ 717 billion for the nine months ended December 31, 2001. Non-interest expenses were ¥ 356 billion for the nine months ended December 31, 2002, a decrease of ¥ 466 billion or 57% over the same period in the prior year.

The decline in net revenues and non-interest related expenses is due to the fact that the results of operations for the nine months ended December 31, 2001 include the consolidated results of Principal Finance Group (“PFG”) entities, which were contributed to a limited partnership on March 27, 2002 in exchange for a limited partnership interest and, accordingly are not consolidated with our results of operations for the nine months ended December 31, 2002. PFG accounted for ¥ 339 billion of net revenues and ¥ 343 billion of non-interest related expenses for the nine months ended December 31, 2001.

Income before income taxes and net income were ¥ 60 billion and ¥ 146 billion, respectively, for the nine months ended December 31, 2002. This compares to a loss before income taxes and a net loss of ¥ 104 billion and ¥ 76 billion respectively for the same period in the prior year.

Total assets were approximately ¥ 19.5 trillion at December 31, 2002, an increase of approximately ¥ 1.7 trillion from March 31, 2002 and total shareholders’ equity increased by ¥ 118.9 billion from March 31, 2002 to approximately ¥ 1.7 trillion at December 31, 2002. Nomura’s return on equity was 9.5% for the nine months ended December 31, 2002 on an annualized basis.

Business Segments

Operating Results of Domestic Retail

	Millions of yen
	For the nine months ended,
	December 31, 2001		December 31, 2002
Non-interest revenue	¥	168,983	¥	191,938
Net interest revenue		2,412		2,119

Net revenue		171,395		194,057
Non-interest expenses		157,330		159,609

Income before income taxes	¥	14,065	¥	34,448

Domestic Retail has furthermore 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 13% from ¥171,395 million for the nine months ended December 31, 2001 to ¥194,057 million for the nine months ended December 31, 2002, mainly due to an increase in selling commissions from foreign currency bonds and medium term notes. Non-interest expenses increased by 1% from ¥157,330 million for the nine months ended December 31, 2001 to ¥159,609 million for the nine months ended December 31, 2002. As a result, Income before income taxes increased by 145% from ¥14,065 million for the nine months ended December 31, 2001 to ¥34,448 million for the nine months ended December 31, 2002.

Operating Results of Global Wholesale

	Millions of yen
	For the nine months ended,
	December 31, 2001		December 31, 2002
Non-interest revenue	¥	186,132	¥	137,769
Net interest revenue		30,275		78,081

Net revenue		216,407		215,850
Non-interest expenses		146,460		148,652

Income before income taxes	¥	69,947	¥	67,198

Under continued adverse business circumstances such as the stagnant Japanese equity markets 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 decreased by only 0.3% from ¥216,407 million for the nine months ended December 31, 2001 to ¥215,850 million for the nine months ended December 31, 2002. Non-interest expenses increased by 1% from ¥146,460 million for the nine months ended December 31, 2001 to ¥148,652 for the nine months ended December 31, 2002. As a result, Income before income taxes decreased by 4% from ¥69,947 million for the nine months ended December 31, 2001 to ¥67,198 million for the nine months ended December 31, 2002.

Fixed Income

Net revenue increased by 86% from ¥63,451 million for the nine months ended December 31, 2001 to ¥117,913 million for the nine months ended December 31, 2002, mainly due to an increase in net gain on bond trading relating to medium term notes and foreign currency bonds. Non-interest expenses increased by 10% from ¥47,866 million for the nine months ended December 31, 2001 to ¥52,882 million for the nine months ended December 31, 2002. As a result, Income before income taxes increased by 317% from ¥15,585 million for the nine months ended December 31, 2001 to ¥65,031 million for the nine months ended December 31, 2002.

Equity

Net revenue decreased by 32% from ¥89,453 million for the nine months ended December 31, 2001 to ¥60,642 million for the nine months ended December 31, 2002, mainly due to a decrease in customers’ order-flow such as block trading resulting from the stagnant Japanese equity markets. Non-interest expenses decreased by 1% from ¥49,204 million for the nine months ended December 31, 2001 to ¥48,696 million for the nine months ended December 31, 2002. Income before income taxes decreased by 70% from ¥40,249 million for the nine months ended December 31, 2001 to ¥11,946 million for the nine months ended December 31, 2002.

Investment Banking and Merchant Banking

Net revenue decreased by 41% from ¥63,503 million for the nine months ended December 31, 2001 to ¥37,295 million for the nine months ended December 31, 2002. Non-interest expenses decreased by 5% from ¥49,390 million for the nine months ended December 31, 2001 to ¥47,074 million for the nine months ended December 31, 2002. As a result, Income before income taxes was ¥14,113 million for the nine months ended December 31, 2001 and Loss before income taxes was ¥9,779 million for the nine months ended December 31, 2002.

Net revenue for Investment Banking decreased by 30% from ¥68,391 million for the nine months ended December 31, 2001 to ¥48,085 million for the nine months ended December 31, 2002, partly due to a decrease in order-flow relating to Japanese equity markets such as stagnant IPO volume in capital markets. Non-interest expenses for Investment Banking decreased by 6% from ¥43,263 million for the nine months ended December 31, 2001 to ¥40,568 million for the nine months ended December 31, 2002. As a result, Income before income taxes for Investment banking activities decreased by 70% from ¥25,128 million for the nine months ended December 31, 2001 to ¥7,517 million for the nine months ended December 31, 2002.

Net revenue for Merchant Banking changed by 121% from (¥4,888) million for the nine months ended December 31, 2001 to (¥10,790) million for the nine months ended December 31, 2002, because there were no exit transactions in Merchant Banking for this period and funding costs have been charged for its assets. Non-interest expenses for Merchant Banking increased by 6% from ¥6,127 million for the nine months ended December 31, 2001 to ¥6,506 million for the nine months ended December 31, 2002. As a result, loss before income taxes for Merchant Banking increased by 57% from ¥11,015 million for the nine months ended December 31, 2001 to ¥17,296 million for the nine months ended December 31, 2002.

Operating Results of Asset Management

	Millions of yen
	For the nine months ended,
	December 31, 2001		December 31, 2002
Non-interest revenue	¥	35,217	¥	27,428
Net interest revenue		653		1,730

Net revenue		35,870		29,158
Non-interest expenses		26,137		25,699

Income before income taxes	¥	9,733	¥	3,459

Net revenue decreased by 19% from ¥35,870 million for the nine months ended December 31, 2001 to ¥29,158 million for the nine months ended December 31, 2002, due to a decrease in asset management fees associated with changes in product characteristics of Nomura Bond Fund and a decrease in the outstanding balance of bond investment trusts. Non-interest expenses decreased by 2% from ¥26,137 million for the nine months ended December 31, 2001 to ¥25,699 million for the nine months ended December 31, 2002. As a result, Income before income taxes decreased by 64% from ¥9,733 million for the nine months ended December 31, 2001 to ¥3,459 million for the nine months ended December 31, 2002.

Other Operating Results

Other operating results include gains (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 ¥118,160 million for the nine months ended December 31, 2001 to ¥7,728 million for the nine months ended December 31, 2002. The main reason for the decrease was that an impairment loss of ¥92,441 million was recorded for an affiliated company was for the nine months ended December 31, 2001.

We introduced certain methodologies to allocate Headquarters’ expenses to our three business segments effective April 1, 2002. We created global Headquarters accounts and allocate its expenses to business segments according to benefits received by each business segment. The improvement was made to better allocate the expenses based on benefits received by each segment, and it also included allocation of headquarters’ expenses which previously were not allocated to segments. Had we not applied the current allocation methodologies for the nine months ended December 31, 2002, income before income taxes for Domestic Retail, Global Wholesale and Asset Management would have been ¥39,714 million, ¥73,733 million and ¥3,989 million, respectively.

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen						% Change		Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended											For the year ended
	December 31, 2001 (A)			December 31, 2002 (B)			(B) vs. (A)		December 31, 2002			March 31, 2002
Revenue:
Commissions	¥	105,155		¥	115,079		9.4	%	$	969		¥	140,001
Fees from investment banking		56,661			50,850		(10.3	)		428			75,255
Asset management and portfolio service fees		83,099			63,636		(23.4	)		536			109,985
Net gain on trading		130,683			114,489		(12.4	)		964			162,228
Interest and dividends		419,750			314,103		(25.2	)		2,645			500,541
Loss on investments in equity securities		(56,528	)		(32,331	)	—			(272	)		(55,860	)
Gain from changes in equity of an affiliated company		3,504			—		—			—			3,504
PFG entities product sales		221,927			—		—			—			294,931
PFG entities rental income		120,919			—		—			—			177,053
Gain on sales of PFG entities		—			—		—			—			116,324
Gain (loss) on private equity investments		—			(4,883	)	—			(41	)		232,472
Other		53,225			13,447		(74.7	)		113			68,965

Total revenue		1,138,395			634,390		(44.3	)		5,342			1,825,399
Interest expense		421,302			218,828		(48.1	)		1,843			504,048

Net revenue		717,093			415,562		(42.0	)		3,499			1,321,351

Non-interest expenses:
Compensation and benefits		251,708			180,755		(28.2	)		1,522			379,540
Commissions and floor brokerage		15,409			13,594		(11.8	)		114			20,962
Information processing and communications		62,869			56,210		(10.6	)		473			87,252
Occupancy and related depreciation		52,308			43,218		(17.4	)		364			73,787
Business development expenses		19,373			18,500		(4.5	)		156			26,652
PFG entities cost of goods sold		153,527			—		—			—			200,871
PFG entities expenses associated with rental income		70,167			—		—			—			111,529
Other		196,188			43,658		(77.7	)		368			247,786

		821,549			355,935		(56.7	)		2,997			1,148,379

Income(loss) before income taxes		(104,456	)		59,627		—			502			172,972

Income tax expense(benefit):
Current		42,948			15,929		(62.9	)		134			61,898
Deferred		(71,495	)		7,456		—			63			(56,972	)

		(28,547	)		23,385		—			197			4,926

Income(loss) before cumulative effect of accounting change		(75,909	)		36,242		—			305			168,046
Cumulative effect of accounting change		—			109,799		—			925			—

Net income(loss)	¥	(75,909	)	¥	146,041		—		$	1,230		¥	168,046


Per share of common stock:
	Yen						% Change		Translation into U.S. dollars			Yen
Basic—							%
Income(loss) before cumulative effect of accounting change	¥	(38.66	)	¥	18.47		—		$	0.16		¥	85.57
Cumulative effect of accounting change		—			55.95		—			0.47			—

Net income(loss)	¥	(38.66	)	¥	74.42		—		$	0.63		¥	85.57

Diluted—
Income(loss) before cumulative effect of accounting change	¥	(38.66	)	¥	18.47		—		$	0.16		¥	85.32
Cumulative effect of accounting change		—			55.95		—			0.47			—

Net income(loss)	¥	(38.66	)	¥	74.42		—		$	0.63		¥	85.32

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen									Translation into millions of U.S. dollars
	December 31, 2001			March 31, 2002			December 31, 2002			December 31, 2002
ASSETS
Cash and cash deposits:
Cash and cash equivalents	¥	871,387		¥	356,635		¥	568,644		$	4,789
Time deposits		150,342			381,038			277,207			2,334
Deposits with stock exchanges and other segregated cash		94,038			38,061			34,849			294

		1,115,767			775,734			880,700			7,417

Loans and receivables:
Loans receivable from customers		219,771			221,455			320,431			2,698
Loans receivable from other than customers		230,695			451,662			221,061			1,862
Receivables from customers		57,817			21,191			24,674			208
Receivables from other than customers		329,523			370,116			344,042			2,897
Receivables under resale agreements and securities borrowed transactions		7,055,611			6,680,001			7,613,379			64,113
Securities pledged as collateral		2,971,665			2,964,276			3,400,186			28,633
Allowance for doubtful accounts		(15,134	)		(18,410	)		(16,593	)		(140	)

		10,849,948			10,690,291			11,907,180			100,271

Trading assets and private equity investments:
Securities inventory		3,566,398			4,302,217			4,688,918			39,486
Derivative contracts		352,413			293,266			496,836			4,184
Private equity investments		—			281,774			276,970			2,332

		3,918,811			4,877,257			5,462,724			46,002

Other:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥218,485 million at December 31, 2001, ¥221,113 million at March 31, 2002, and ¥176,389 million ($ 1,485 million) at December 31, 2002, respectively)		169,685			170,762			182,135			1,534
PFG entities land, buildings, equipment and furniture and fixtures (net of accumulated depreciation and amortization of ¥103,670 million at December 31, 2001)		1,125,912			—			—			—
Lease deposits		81,893			74,591			75,775			638
Non-trading debt securities		299,720			426,400			298,684			2,515
Investments in equity securities		193,932			192,377			142,793			1,202
Investments in and advances to affiliated companies		262,443			257,089			246,052			2,072
Deferred tax assets		37,422			132,808			104,707			882
Other assets		624,210			160,964			150,937			1,271

		2,795,217			1,414,991			1,201,083			10,114

Total assets	¥	18,679,743		¥	17,758,273		¥	19,451,687		$	163,804

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen									Translation into millions of U.S. dollars
	December 31, 2001			March 31, 2002			December 31, 2002			December 31, 2002
LIABILITIES AND SHAREHOLDERS’ EQUITY
Payables, borrowings and deposits:
Payables to customers	¥	660,265		¥	729,907		¥	418,349		$	3,523
Payables to other than customers		300,409			182,760			307,247			2,587
Payables under repurchase agreements and securities loaned transactions		8,910,696			8,245,492			9,954,502			83,827
Short-term borrowings		1,093,538			1,689,504			1,267,750			10,676
Time and other deposits received		294,469			338,925			248,646			2,094

		11,259,377			11,186,588			12,196,494			102,707

Trading liabilities:
Securities sold but not yet purchased		2,354,901			2,387,847			2,869,497			24,164
Derivative contracts		395,029			305,899			454,732			3,829

		2,749,930			2,693,746			3,324,229			27,993

Other liabilities:
Accrued income taxes		36,565			50,920			19,607			165
Accrued pension and severance costs		42,976			56,109			55,876			471
Other		418,021			411,127			228,612			1,925

		497,562			518,156			304,095			2,561

Long-term borrowings		1,437,792			1,754,854			1,903,048			16,026

Non-recourse PFG entities loans and bonds		1,358,652			—			—			—

Total liabilities		17,303,313			16,153,344			17,727,866			149,287

Commitments and contingencies (See note 3)
Shareholders’ equity:
Common stock
Issued—1,965,919,860 shares, 1,965,919,860 shares, and 1,965,919,860 shares at December 31, 2001, March 31, 2002, and December 31, 2002, respectively		182,800			182,800			182,800			1,539

Additional paid-in capital		150,979			150,979			151,197			1,273

Retained earnings		1,101,750			1,316,221			1,462,261			12,314

Accumulated other comprehensive income
Minimum pension liability adjustment		(17,667	)		(24,972	)		(23,362	)		(197	)
Cumulative translation adjustments		(41,272	)		(19,685	)		(22,151	)		(186	)

		(58,939	)		(44,657	)		(45,513	)		(383	)

		1,376,590			1,605,343			1,750,745			14,743
Less—Common stock held in treasury, at cost—93,131 shares, 246,075 shares, 19,803,406 shares at December 31, 2001, March 31, 2002 and December 31, 2002, respectively		(160	)		(414	)		(26,924	)		(226	)

Total shareholders’ equity		1,376,430			1,604,929			1,723,821			14,517

Total liabilities and shareholders’ equity	¥	18,679,743		¥	17,758,273		¥	19,451,687		$	163,804

NOMURA HOLDINGS, INC.

CONSOLIDATED INFORMATION OF CASH FLOWS

(UNAUDITED)

	Millions of yen			Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended December 31, 2002			For the nine months ended December 31, 2002			For the Year ended March 31, 2002
Cash flows from operating activities:
Net income	¥	146,041		$	1,230		¥	168,046
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Cumulative effect of accounting change		(109,799	)		(925	)		—
Depreciation and amortization		23,150			195			70,042
Loss on investments in equity securities		32,331			272			55,860
Gain on sales of PFG entities		—			—			(116,324	)
Loss (gain) on private equity investments		4,883			41			(232,472	)
Deferred income tax expense (benefit)		7,456			63			(56,972	)
Changes in operating assets and liabilities:
Time deposits		104,200			877			(97,592	)
Deposits with stock exchanges and other segregated cash		548			5			10,695
Trading assets and private equity investments		(683,497	)		(5,755	)		(854,907	)
Trading liabilities		665,569			5,605			(264,355	)
Receivables under resale agreements and securities borrowed transactions		(1,312,665	)		(11,054	)		(379,434	)
Payables under repurchase agreements and securities loaned transactions		2,226,603			18,750			363,754
Loans and other receivables, net of allowance		(380,221	)		(3,202	)		(107,129	)
Time and other deposits received and other payables		(293,170	)		(2,469	)		3,326
Accrued income taxes, net		(36,097	)		(304	)		6,058
Other, net		(29,159	)		(245	)		128,020

Net cash provided by (used in) operating activities		366,173			3,084			(1,303,384	)

Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities		(31,607	)		(266	)		(92,168	)
Proceeds from sales of office buildings, land, equipment and facilities		462			4			25,762
Payments for purchases of investments in equity securities		(1,102	)		(9	)		(3,017	)
Proceeds from sales of investments in equity securities		25,112			211			36,621
Business combinations, net of cash acquired		—			—			(258,987	)
Cash contributed to private equity investments		—			—			(95,720	)
Proceeds from sales of PFG entities		—			—			129,469
Decrease in non-trading debt securities, net		121,125			1,020			178,869
Decrease in other investments and other assets, net		15,164			128			26,989

Net cash provided by (used in) investing activities		129,154			1,088			(52,182	)

Cash flows from financing activities:
Increase in long-term borrowings		555,016			4,674			1,499,309
Decrease in long-term borrowings		(244,023	)		(2,055	)		(966,131	)
(Decrease) increase in short-term borrowings, net		(529,458	)		(4,459	)		696,681
Payments for repurchases of common stock		(26,510	)		(223	)		—
Payments for cash dividends		(29,485	)		(248	)		(34,352	)

Net cash (used in) provided by financing activities		(274,460	)		(2,311	)		1,195,507

Effect of exchange rate changes on cash and cash equivalents		(8,858	)		(75	)		13,018

Net increase (decrease) in cash and cash equivalents		212,009			1,786			(147,041	)
Cash and cash equivalents at beginning of the period		356,635			3,003			503,676

Cash and cash equivalents at end of the period	¥	568,644		$	4,789		¥	356,635

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 Form 20-F (the Annual Report filed with the U.S. Securities and Exchange Commission) for the year ended March 31, 2002. Critical changes in accounting methods are as follows.

Change in Method of Accounting for Stock Options:

Effective April 1, 2002 Nomura changed its method of accounting for stock-based compensation plans. Nomura has adopted the fair-value-based method of accounting for company stock options. The effect of this change in accounting was to increase compensation and benefits expense and decrease income before income taxes by ¥218 million ($2 million) for the nine-months ended December 30, 2002.

Cumulative Effect of Accounting Change:

In June 2001, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets” (“SFAS No. 142”). SFAS No. 142 no longer permits the amortization of goodwill and intangible assets with indefinite lives. Instead these assets must be reviewed annually, or more frequently in certain circumstance, for impairment. Intangible assets that have determinable lives will continue to be amortized over their useful lives and reviewed for impairment. In addition, negative goodwill that arises in a business combination must be written off immediately. Nomura adopted SFAS No. 142 effective April 1, 2002, which resulted in writing off negative goodwill arising from a previous business combination of ¥109,799 million ($925 million), net of taxes.

2. U.S. dollar amounts:

The U.S. dollar amounts are included solely for convenience and have been translated at the rate of ¥118.75 = 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 December 31, 2002. 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 contingencies:

In the normal course of Nomura Holding, Inc’s subsidiaries’ banking and financing activities, the subsidiaries enter into contractual commitments to extend credit, standby letters of credit, underwriting commitments and issuance of financial guarantees, which generally have a fixed expiration date.

Contractual amounts of these commitments at December 31, 2002 and March 31, 2002 were as follows:

	Millions of yen		Translation into millions of U.S. dollars		Millions of yen
	December 31, 2002		December 31, 2002		March 31, 2002
Commitments to extend credit and note issuance facility	¥	134,138	$	1,130	¥	138,599
Standby letters of credit and financial guarantees		46,742		394		25,721

NOMURA HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION—(Continued)

(UNAUDITED)

4. Segment Information-Operating segment:

Business segments’ results for the nine months ended December 31, 2001, 2002, and for the year ended March 31, 2002, are shown in the following table.

	Millions of yen
	Domestic Retail		Global Wholesale			Asset Management			Other (Inc. elimination)			Total
Nine months ended December 31, 2001
Non-interest revenue	¥	168,983	¥	186,132		¥	35,217		¥	12,250		¥	402,582
Net interest revenue		2,412		30,275			653			18,552			51,892

Net revenue		171,395		216,407			35,870			30,802			454,474
Non-interest expenses		157,330		146,460			26,137			148,962			478,889

Income (loss) before income taxes	¥	14,065	¥	69,947		¥	9,733		¥	(118,160	)	¥	(24,415	)

Nine months ended December 31, 2002
Non-interest revenue	¥	191,938	¥	137,769		¥	27,428		¥	(206	)	¥	356,929
Net interest revenue		2,119		78,081			1,730			13,345			95,275

Net revenue		194,057		215,850			29,158			13,139			452,204
Non-interest expenses		159,609		148,652			25,699			20,867			354,827

Income (loss) before income taxes	¥	34,448	¥	67,198		¥	3,459		¥	(7,728	)	¥	97,377

	Change (%)
Income (loss) before income taxes
Nine months ended December, 2002 vs. 2001		144.9		(3.9	)		(64.5	)		—			—

	Translation into millions of U.S. dollars
Nine months ended December 31, 2002
Non-interest revenue	$	1,616	$	1,160		$	231		($	1	)	$	3,006
Net interest revenue		18		658			14			112			802

Net revenue		1,634		1,818			245			111			3,808
Non-interest expenses		1,344		1,252			216			176			2,988

Income (loss) before income taxes	$	290	$	566		$	29		($	65	)	$	820

	Millions of yen
For the year ended March 31, 2002
Non-interest revenue	¥	226,156	¥	385,430		¥	46,840		¥	11,171		¥	669,597
Net interest revenue		2,949		54,505			367			14,422			72,243

Net revenue		229,105		439,935			47,207			25,593			741,840
Non-interest expenses		208,621		248,657			37,031			168,990			663,299

Income (loss) before income taxes	¥	20,484	¥	191,278		¥	10,176		¥	(143,397	)	¥	78,541

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 nine months ended									For the year ended
	December 31, 2001			December 31, 2002			December 31, 2002			March 31, 2002
Gain on not designated hedging instruments	¥	27,359		¥	293		$	2		¥	31,435
(Loss)/gain on investment securities		(4,721	)		5,227			44			218
Equity in losses of affiliates		(9,953	)		(93	)		(1	)		(9,551	)
Corporate items		(24,993	)		(1,126	)		(9	)		(41,730	)
Amortization of goodwill and negative goodwill		9,889			—			—			13,316
Impairment loss on investment in an affiliated company		(92,441	)		—			—			(92,441	)
Multi-employer pension plan		(18,720	)		—			—			(18,720	)
Profit from changes in equity of an affiliated company		3504			—			—			3,504
Others		(8,084	)		(12,029	)		(101	)		(29,428	)

Total	¥	(118,160	)	¥	(7,728	)	$	(65	)	¥	(143,397	)

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 in the consolidated income statement information.

	Millions of yen						Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended									For the year ended
	December 31, 2001			December 31, 2002			December 31, 2002			March 31, 2002
Net revenue	¥	454,474		¥	452,204		$	3,808		¥	741,840
Unrealized loss on investments in equity securities held for relationship purpose		(56,271	)		(38,735	)		(326	)		(60,177	)
Effect of consolidation/deconsolidation of the PFG entities and other private equity investee companies		318,890			2,093			17			639,688

Consolidated net revenue	¥	717,093		¥	415,562		$	3,499		¥	1,321,351

Income before income taxes	¥	(24,415	)	¥	97,377		$	820		¥	78,541
Unrealized loss on investments in equity securities held for relationship purpose		(56,271	)		(38,735	)		(326	)		(60,177	)
Effect of consolidation/deconsolidation of the PFG entities and other private equity investee companies		(23,770	)		985			8			154,608

Consolidated income (loss) before income taxes	¥	(104,456	)	¥	59,627		$	502		¥	172,972

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 nine months ended								For the year ended
	December 31, 2001 (A)		December 31, 2002 (B)		(B) vs. (A)		December 31, 2002		March 31, 2002
Commissions	¥	105,155	¥	115,079	9.4		$	969	¥	140,001

Brokerage Commissions		74,770		69,875	(6.5	)		588		97,505
Commissions for Distribution of Investment Trust		19,013		24,382	28.2			205		26,728

Fees from Investment Banking		56,661		50,850	(10.3	)		428		75,255

Underwriting and Distribution		46,439		38,230	(17.7	)		322		61,010
M&A / Financial Advisory Fees		9,516		10,731	12.8			90		13,383

Asset Management and Portfolio Service Fees		83,099		63,636	(23.4	)		536		109,985

Asset Management Fee		75,728		56,691	(25.1	)		477		100,142

Total	¥	244,915	¥	229,565	(6.3	)	$	1,933	¥	325,241

Net gain on trading

	Millions of yen						% Change		Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended											For the year ended
	December 31, 2001 (A)			December 31, 2002 (B)			(B) vs. (A)		December 31, 2002			March 31, 2002
Merchant Banking	¥	(5,060	)	¥	(1,301	)	—		$	(11	)	¥	(6,828	)
Equity Trading		78,719			14,730		(81.3	)		124			113,036
Fixed Income and Other Trading		57,024			101,060		77.2			851			56,020

Total	¥	130,683		¥	114,489		(12.4	)	$	964		¥	162,228

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen
	For the three months ended
	June 30, 2001			September 30, 2001			December 31, 2001			March 31, 2002		June 30, 2002			September 30, 2002			December 31, 2002
Revenue:
Commissions	¥	39,597		¥	30,971		¥	34,587		¥	34,846	¥	46,091		¥	34,685		¥	34,303
Fees from investment banking		14,122			22,907			19,632			18,594		15,632			18,281			16,937
Asset management and portfolio service fees		29,639			27,765			25,695			26,886		24,190			21,905			17,541
Net gain on trading		72,780			10,124			47,779			31,545		36,964			29,185			48,340
Interest and dividends		182,491			129,854			107,405			80,791		91,065			115,848			107,190
(Loss) profit on investments in equity securities		(1,423	)		(41,735	)		(13,370	)		668		(3,325	)		(7,094	)		(21,912	)
Profit from changes in equity of an affiliated company		—			—			3,504			—		—			—			—
PFG entities product sales		86,528			67,565			67,834			73,004		—			—			—
PFG entities rental income		28,210			36,643			56,066			56,134		—			—			—
Gain on sales of PFG entities		—			—			—			116,324		—			—			—
Gain on private equity investments		—			—			—			232,472		3,037			(5,929	)		(1,991	)
Other		18,422			19,925			14,878			15,740		3,317			6,401			3,729

Total revenue		470,366			304,019			364,010			687,004		216,971			213,282			204,137
Interest expense		180,203			133,342			107,757			82,746		74,305			72,533			71,990

Net revenue		290,163			170,677			256,253			604,258		142,666			140,749			132,147

Non-interest expenses:
Compensation and benefits		80,091			96,844			74,773			127,832		63,595			57,688			59,472
Commissions and floor brokerage		4,891			5,270			5,248			5,553		4,477			5,553			3,564
Information processing and communications		19,825			20,501			22,543			24,383		18,176			19,233			18,801
Occupancy and related depreciation		20,671			15,859			15,778			21,479		14,563			14,537			14,118
Business development expenses		6,029			7,921			5,423			7,279		5,895			7,782			4,823
PFG entities cost of goods sold		61,387			45,648			46,492			47,344		—			—			—
PFG entities expenses associated with rental income		15,040			18,244			36,883			41,362		—			—			—
Other		29,358			135,329			31,501			51,598		17,589			13,690			12,379

		237,292			345,616			238,641			326,830		124,295			118,483			113,157

Income(loss) before income taxes		52,871			(174,939	)		17,612			277,428		18,371			22,266			18,990

Income tax expense(benefit):
Current		15,224			10,168			17,556			18,950		15,100			(1,256	)		2,085
Deferred		11,505			(81,114	)		(1,886	)		14,523		(4,775	)		10,297			1,934

		26,729			(70,946	)		15,670			33,473		10,325			9,041			4,019

Income(loss) before cumulative effect of accounting change		26,142			(103,993	)		1,942			243,955		8,046			13,225			14,971
Cumulative effect of accounting change		—			—			—			—		109,799			—			—

Net income(loss)	¥	26,142		¥	(103,993)		¥	1,942		¥	243,955	¥	117,845		¥	13,225		¥	14,971

	Yen
Per share of common stock:
Basic—
Income(loss) before cumulative effect of accounting change	¥	13.32		¥	(52.98	)	¥	0.99		¥	124.10	¥	4.09		¥	6.73		¥	7.65
Cumulative effect of accounting change		—			—			—			—		55.86			—			—

Net income(loss)	¥	13.32		¥	(52.98	)	¥	0.99		¥	124.10	¥	59.95		¥	6.73		¥	7.65

Diluted—
Income(loss) before cumulative effect of accounting change	¥	13.30		¥	(52.98	)	¥	0.99		¥	123.72	¥	4.09		¥	6.73		¥	7.65
Cumulative effect of accounting change		—			—			—			—		55.86			—			—

Net income(loss)	¥	13.30		¥	(52.98	)	¥	0.99		¥	123.72	¥	59.95		¥	6.73		¥	7.65

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 Asset Management Co., Ltd. Financial Information

NOMURA HOLDINGS, INC. (PARENT COMPANY ONLY)

INCOME STATEMENT INFORMATION

(UNAUDITED)

	For the nine months ended December 31, 2002		For the year ended March 31, 2002
Operating revenue	75,391		269,122
Operating expenses	67,922		209,786

Operating income	7,468		59,336

Non-operating income	3,057		12,643
Non-operating expenses	711		3,793

Ordinary income	9,814		68,186

Special profits	15,616		35,282
Special losses	9,105		162,750

Income (loss) before income taxes	16,325		(59,282	)

Income taxes—current	(33,039	)	390
Income taxes—deferred	38,479		(22,459	)

Net income (loss)	10,886		(37,212	)

Unappropriated retained earnings brought forward	6,855		23,931

Unappropriated retained earnings (accumulated deficit)	17,741		(13,280	)

Note: On October 1, 2001, the corporate separation date, Nomura Holdings, Inc. (the Company) implemented corporate separation and the operation of the securities and other related businesses was succeeded by Nomura Securities Co., Ltd., the Company’s wholly-owned subsidiary and the Company became a holding company. The results for the year ended March 2002 include the revenue related to the securities businesses when the Company was engaged in securities business activities (from April 1, 2001 to September 30, 2001).

NOMURA HOLDINGS, INC. (PARENT COMPANY ONLY)

BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen
	December 31, 2002	March 31, 2002
Assets:
Current Assets	471,036	475,668
Fixed Assets	1,537,624	1,548,240

Total Assets	2,008,660	2,023,909

Liabilities:
Current Liabilities	171,577	277,158
Long-term Liabilities	462,671	305,116

Total Liabilities	634,249	582,274

Total Shareholders’ Equity	1,374,411	1,441,634

Total Liabilities and Shareholders’ Equity	2,008,660	2,023,909

NOMURA SECURITIES CO., LTD.

INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen
	For the nine months ended December 31, 2002		For the year ended March 31, 2002
Operating revenue	356,161		223,529

Commissions	160,402		106,962
Net gain on trading	150,702		100,002
Net gain on other inventories	7		11
Interest and dividend income	45,048		16,552

Interest expenses	25,423		8,377

Net operating revenue	330,737		215,151

Selling, general and administrative expenses	233,686		154,747

Operating income	97,051		60,404

Non-operating income	1,176		1,354
Non-operating expenses	1,046		786

Ordinary income	97,181		60,972

Special profits	272		1,680
Special losses	217		—

Income before income taxes	97,236		62,653

Income taxes—current	43,891		29,974
Income taxes—deferred	(5,058	)	(5,671	)

Net income	58,403		38,351

Unappropriated retained earnings brought forward	20,351		—

Unappropriated retained earnings	78,754		38,351

NOMURA SECURITIES CO., LTD. BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen
	December 31, 2002	March 31, 2002
ASSETS
Current Assets:	8,087,149	7,947,203

Trading Assets	4,573,790	4,196,718
Loans with securities as collateral	2,958,086	2,825,204
Other	555,272	925,279

Fixed Assets	69,963	63,073

Total Assets	8,157,112	8,010,276

LIABILITIES
Current Liabilities:	6,974,060	6,839,245

Trading liabilities	2,466,072	1,691,817
Borrowings with securities as collateral	2,769,787	2,741,798
Other	1,738,199	2,405,629

Long-term Liabilities	546,138	597,260

Statutory Reserves	680	463

Total Liabilities	7,520,879	7,436,969

Total Shareholder’s Equity	636,233	573,307

Total Liabilities and Shareholder’s Equity	8,157,112	8,010,276

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

Please note that the results for the year ended March 31, 2002 show in effect six months’ results as Nomura Securities Co., Ltd. started its securities business on October 1, 2001.

1. Commission Revenues

	(Millions of yen)
	Nine Months Ended December 31, 2002		Year Ended March 31, 2002
(1) Breakdown by Category
Brokerage commissions	60,343		38,921

(Stocks)	(55,133	)	(36,551	)
(Bonds)	(1,619	)	(1,044	)
Underwriting commissions	17,218		16,587

(Stocks)	(11,459	)	(13,405	)
(Bonds)	(5,758	)	(3,182	)
Distribution commissions	25,065		14,221

(Investment trust certificates)	(24,200	)	(14,138	)
Other commissions	57,775		37,231

(Investment trust certificates)	(27,738	)	(25,358	)

Total	160,402		106,962


(2) Breakdown by Product
Stocks	69,785		51,746
Bonds	12,160		6,872
Investment trust certificates	55,528		40,822
Others	22,927		7,521

Total	160,402		106,962

2. Net Gain/Loss on Trading

	(Millions of yen)
	Nine Months Ended December 31, 2002	Year Ended March 31, 2002
Stocks	28,211	46,671
Bonds and forex	122,491	53,330

Total	150,702	100,002

NOMURA SECURITIES CO., LTD. SUPPLEMENTARY INFORMATION

(UNAUDITED)

3. Stock Trading (excluding futures transactions)

	(Millions of shares or yen except per share data and percentages)
	Nine Months Ended December 31, 2002				Year Ended March 31, 2002
	Number of shares		Amount		Number of shares		Amount
Total	33,191		34,918,071		23,044		24,211,514
(Brokerage)	20,125		19,747,982		13,564		13,099,127
(Proprietary Trading)	13,066		15,170,088		9,480		11,112,387
Brokerage / Total	60.6	%	56.6	%	58.9	%	54.1	%
TSE Share	7.9	%	9.2	%	8.2	%	8.4	%
Brokerage Commission per share (yen)	2.65		2.64

4. Underwriting, Subscription, and Distribution

	(Millions of shares or yen)
	Nine Months Ended December 31, 2002	Year Ended March 31, 2002
Underwriting
Stocks (number of shares)	172	38
(yen amount)	351,891	181,024
Bonds (face value)	4,646,485	2,837,665
Investment trust certificates (yen amount)	—	—
Commercial paper and others (face value)	515,500	224,400
Subscription and Distribution*
Stocks (number of shares)	1,466	38
(yen amount)	404,248	187,697
Bonds (face value)	1,473,656	810,655
Investment trust certificates (yen amount)	9,357,646	9,654,633
Commercial paper and others (face value)	515,500	224,400

Includes secondary offerings and private placements.

5. Capital Adequacy Ratio

			Millions of yen except percentages
			December 31, 2002		March 31, 2002
Tier I		(A)	636,233		573,308
Tier II	Statutory reserves		680		464
	Allowance for doubtful accounts		211		631
	Subordinated debt		190,000		187,100
	Total	(B)	190,892		188,194

Illiquid Asset		(C)	78,315		73,395

Net Capital	(A) + (B)-(C) =	(D)	748,810		688,107

Risk	Market risk		97,909		113,743
	Counterparty risk		109,515		102,675
	Basic risk		78,928		80,660
	Total	(E)	286,354		297,078

Capital Adequacy Ratio		(D)/(E)	261.4	%	231.6	%

NOMURA ASSET MANAGEMENT CO., LTD.

UNCONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)

	Millions of yen
	For the nine months ended December 31, 2002		For the year Ended March 31, 2002
Operating revenue
Investment trust management fees	40,268		77,981
Investment advisory fees	5,382		7,339
Other operating revenue	0		0

	45,650		85,321

Operating expenses
Commissions	22,683		47,686
Other operating expenses	6,860		9,528

	29,543		57,215

General and administrative expenses	11,357		16,368

Operating income	4,749		11,738
Non-operating income	2,725		1,195
Non-operating expenses	467		106

Ordinary income	7,007		12,827
Special profits	8		1,430
Special losses	1,590		2,483

Income before income taxes	5,425		11,774
Income taxes—current	3,917		2,039
Income taxes—deferred	(1,544	)	2,856

Net income	3,052		6,879
Unappropriated retained earnings brought forward	621		741

Unappropriated retained earnings	3,673		7,621

NOMURA ASSET MANAGEMENT CO., LTD.

UNCONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)

	Millions of yen
	December 31, 2002	March 31, 2002
Assets
Current assets	49,814	90,881
Fixed assets	243,997	276,507

Total assets	293,811	367,389

Liabilities
Current liabilities	120,463	183,805
Long-term liabilities	7,626	11,644

Total liabilities	128,089	195,450

Total shareholder’s equity	165,722	171,938

Total liabilities and shareholder’s equity	293,811	367,389

NOMURA ASSET MANAGEMENT CO., LTD.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

1. Net Assets of Investment Trusts

	Billions of yen
	December 31, 2002	March 31, 2002
Stock Investment Trusts-Public
Unit Type	161	219
Open Type	3,167	2,979

	3,328	3,198
Bond Investment Trusts-Public
Bond Investment Trusts	4,465	6,299
Money Management Fund	1,394	1,785
Others	1,901	2,302

	7,761	10,387
Private Investment Trusts
Stock Investment Trusts	227	170
Bond Investment Trusts	9	10

	237	180

Total	11,328	13,767

2. Assets under Investment Management and Advisory Contracts

	Billions of yen
	December 31, 2002	March 31, 2002
Domestic-General	306	391
Domestic-Pension	2,728	3,180
Overseas	733	874

Total	3,767	4,446