FORM 6-K/A
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 April 2024

NOMURA HOLDINGS, INC.
(Translation of registrant’s name into English)

13-1, 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):

EXPLANATORY NOTE
Nomura Holdings, Inc. (the “Company”) is furnishing this amendment on Form 6-K/A (“Amendment No. 1”) in order to amend our interim reporton Form 6-K containing our Interim Operating and Financial Review for the period ended September 30, 2023 (the “Original Form 6-K Filing”) which
was originally furnished to the U.S. Securities and Exchange Commission (the “SEC”) on December 15, 2023 (the “Original Form 6-K Filing Date”).
Along with Amendment No. 1, the Company is also refiling amendment on Form 20-F/A (“Form 20-F Amendment No. 1”) separately in order to amend
our annual report on Form 20-F for the year ended March 31, 2023 (the “Original Form 20-F Filing”) which was filed with the SEC on June 28, 2023.
References to our Annual Report on Form 20-F for the year ended March 31, 2023 contained herein are to such Form 20-F as amended by theForm 20-F Amendment No. 1 (to the extent so amended), unless otherwise stated. The purpose of this Amendment No.1 is as follows:•

To restate the Company’s interim consolidated financial statements (unaudited) as of September 30, 2023 and for the three-month and sixmonth periods ended September 30, 2022 and 2023 (such restated interim consolidated financial statements are referred to as the “RestatedInterim Financial Statements”) to correct certain material presentation and classification errors identified within the Company’s
consolidated statement of cash flows for the six-month periods ended September 30, 2022 and 2023 on page F-10 to F-11 (“the cash flow
statement errors”);•

To amend relevant footnote disclosures in the interim consolidated financial statements (unaudited) related to the consolidated statementsof cash flows for the six months ended September 30, 2022 and 2023;•

To amend disclosure within “Consolidated Regulatory Capital Requirements” in Exhibit 1 to correct the Company’s Risk-Weighted Assets,
Consolidated Capital Adequacy Ratios and External TLAC Ratios as of September 30, 2023;•

To amend disclosure within “Liquidity and Capital Resources” in Exhibit 1 to update disclosures related to the consolidated statements ofcash flows for the six months ended September 30, 2022 and 2023;•

To newly include disclosure under “Controls and Procedures” in Exhibit 1 concerning our disclosure controls and procedures, our internal
control over financial reporting and certain related matters;•

To include the revised report of the Company’s independent registered public accounting firm, Ernst & Young ShinNihon LLC, on the
Restated Financial Statements on page F-99 of this Amendment No. 1;•

To include an updated acknowledgement letter from the Company’s independent registered public accounting firm, Ernst & Young
ShinNihon LLC; and•To include updated XBRL information (including the relevant exhibits).








Other than the changes expressly described above, the Amendment No.1 continues to present information as of the Original Form 6-K Filing Dateand has not been amended, supplemented, or updated to reflect any new information, other circumstances or subsequent events which have occurredsince the Original Form 6-K Filing Date. Accordingly, this Amendment No.1 should be read in conjunction with the Company’s reports filed with or
furnished to the SEC subsequent to the Original Form 6-K Filing Date. The furnishing of this Amendment No.1 should not be understood to mean thatany other statements, disclosures or information contained in the Original Form 6-K Filing, continue to be true and complete as of any date subsequent
to the Original Form 6-K Filing Date, other than as expressly described above.
See Note 1. “Summary of Accounting Policies” in the interim consolidated financial statements included in this Amendment No.1 for further
details of the nature of the cash flow statement errors.

Incorporation by Reference
The registrant hereby incorporates Exhibits 1 and 17 to this report on Form 6-K/A by reference (i) in the prospectus that is part of the Registration
Statement on Form F-3 (Registration No. 333-261756) of the registrant, filed with the SEC on December 20, 2021 and (ii) in the prospectus that is partof the Registration Statement on Form F-3 (Registration No. 333-273353) of the registrant and of Nomura America Finance, LLC, filed with the SEC on
July 20, 2023.
Information furnished on this form:

EXHIBITSExhibit Number

1.

Nomura Holdings, Inc. Interim Operating and Financial Review

15.

Acknowledgment Letter of Ernst & Young ShinNihon LLC

17.

Subsidiary Issuer of Registered Guaranteed Securities

101.INS

Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags areembedded within the Inline XBRL document

101.SCH

Inline XBRL Taxonomy Extension Schema

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase

104

The cover page for the Company’s Interim Report on Form 6-K for the six months ended September 30, 2023, hasbeen formatted in Inline XBRL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 theundersigned, thereunto duly authorized.


NOMURA HOLDINGS, INC.
Date: April 12, 2024

By:/s/ Yoshifumi Kishida
Yoshifumi Kishida
Senior Managing Director

Exhibit 1
NOMURA HOLDINGS, INC.
INTERIM OPERATING AND FINANCIAL REVIEWTABLE OF CONTENTS


Presentation of Financial and Other Information

1

Recent Regulatory Developments

2

Risk Factors

4

Operating and Financial Review and Prospects

6

Interim Consolidated Financial Statements (UNAUDITED)
Consolidated Balance Sheets as of March 31, 2023 and September 30, 2023

F-2

Consolidated Statements of Income for the Six Months Ended September 30, 2022 and 2023 and Three Months Ended September 30, 2022
and 2023

F-5

Consolidated Statements of Comprehensive Income for the Six Months Ended September 30, 2022 and 2023 and Three Months Ended
September 30, 2022 and 2023

F-7

Consolidated Statements of Changes in Equity for the Six Months Ended September 30, 2022 and 2023 and Three Months Ended
September 30, 2022 and 2023

F-8

Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2022 and 2023

F-10

Notes to the Interim Consolidated Financial Statements

F-12

Review Report of Independent Registered Public Accounting Firm

F-99

Presentation of Financial and Other Information
As used in this Form 6-K, references to the “Company”, “Nomura”, “Nomura Group”, “we”, “us” and “our” are to Nomura Holdings, Inc. and,except as the context otherwise requires, its consolidated subsidiaries. As part of certain line items in Nomura’s financial statements and information
included in this Form 6-K, references to “NHI” are to Nomura Holdings, Inc.
Unless otherwise stated, references in this Form 6-K to “yen” and “¥” are to the lawful currency of Japan and references to “U.S. dollars” and “$”
are to the lawful currency of the United States of America (“U.S.”).
All ownership data with respect to us presented in this Form 6-K is presented based on the voting interests directly or indirectly held by us. Our
voting interest is presented in accordance with Japanese reporting requirements, pursuant to which the amount presented with respect to each subsidiaryis the percentage of voting rights of such subsidiary held directly by us or our subsidiaries.
For example, wholly-owned subsidiaries of our subsidiaries are listed as 100%, regardless of the level of our direct interest in the intermediate
subsidiaries.
Amounts shown within this Form 6-K have been rounded to the nearest indicated digit unless otherwise specified. In tables and graphs withrounded figures, sums may not add up due to rounding.
Except as otherwise indicated, all financial information with respect to us presented in this Form 6-K is presented on a consolidated basis. Our
fiscal year ends on March 31 of each year. We prepare interim consolidated financial statements in accordance with U.S. generally accepted accounting
principles (“U.S. GAAP”). Our interim consolidated financial statements, including the notes thereto, for the six months ended September 30, 2022 and2023 are included elsewhere in this Form 6-K. The interim consolidated financial statements included in this Form 6-K have been reviewed inaccordance with the standards of the Public Company Accounting Oversight Board (United States) by our independent registered public accounting
firm.


1

Recent Regulatory Developments
This section updates certain disclosure presented under Item 4. Information on the Company—B. Business Overview—Regulation of our annual
report on Form 20-F for the fiscal year ended March 31, 2023.
Regulatory Developments in the United States
In June 2016, the Securities and Exchange Commission (the “SEC”) approved amendments to Financial Industry Regulatory Authority(“FINRA”) Rule 4210, which require FINRA member broker-dealers to set risk limits on each counterparty transacting in specified forward-settling
agency mortgage-backed securities (“covered agency transactions”) as of December 2016, and to collect variation margin and/or maintenance margin
from certain counterparties transacting in covered agency transactions as of June 2018. A failure to collect required margin in a timely manner (T+1)
results in an obligation for the FINRA member broker-dealer to take a capital charge, and ultimately (T+5) to liquidate the customer’s position in orderto satisfy the margin deficiency. After seven years of extending the implementation date of the original rulemaking, the SEC approved FINRA’s
amendments on July 27, 2023, and the amendments are scheduled to become effective on May 22, 2024.
In January 2021, the Commodity Futures Trading Commission (“CFTC”) adopted rules that limit the size of positions in physical commodity
derivatives that can be held by any entity, or any group of affiliates or other parties trading under common ownership or control, or trading incoordination with each other. Swap dealers were previously able to claim an exemption from the position limits for the bona fide hedging of swaprelated risks, but this exemption was eliminated in January 2023. The CFTC position limits apply to futures on specified physical commodities andoptions on such futures, and these limits apply to both physically and cash settled positions. In addition, in January 2023, the position limit rules became
applicable to swaps that are economically equivalent to such futures and options. The position limit rules initially impose limits in the spot month only
(i.e., during the delivery period for the physical commodities, which is typically a period of several days). CFTC spot and non- spot month limits willcontinue to apply to futures on certain legacy agricultural commodities, and it is possible that non-spot month limits will at some point be adopted for
futures and swaps on other physical commodities.
On October 13, 2023, the SEC adopted new Rule 10c-1a, which requires (a) certain persons to report information about securities loans to aregistered national securities association (“RNSA”), such as the Financial Industry Regulatory Authority and (b) RNSAs to make publicly available
certain information that they receive regarding those lending transactions.
In December 2021, the SEC proposed rules (a) to prevent fraud, manipulation and deception in connection with security-based swaps, (b) toprevent undue influence over the chief compliance officer (CCO) of security-based swaps (“SBS”) dealers and major SBS participants and (c) to require
any person with a large SBS position to publicly report certain information related to the position. On June 7, 2023, the SEC adopted the first two ofthese rules, relating to fraud, manipulation and deception in connection with security-based swaps and prevention of undue influence over the CCO. The
SEC has not yet adopted final rules requiring public reporting of large security-based swaps positions.
On January 25, 2023, the SEC proposed a rule (Securities Act Rule 192) that would prohibit securitization participants, which includes any
underwriter, placement agent, initial purchaser or sponsor of an asset-backed security (or any affiliate or subsidiary), from engaging, directly or
indirectly, in any transaction that would involve or result in a material conflict of interest between the securitization participant and an investor in an
asset-backed security, including reducing its exposure to the asset-backed securities, subject to certain exceptions.
Regulatory Developments in the U.K. and Europe
Since Brexit, the EU Capital Requirements Regulation (“CRR”) and subsequent amendments are no longer applicable in the U.K. HM Treasury
and as a result HM Treasury and the Prudential Regulation Authority (the “U.K. PRA”) published updated rules for implementation of similar reforms to
the CRRII in the U.K. which were implemented from Jan 2022. HM Treasury and U.K. PRA have further published consultations at the end of 2022 to
implement the final elements of the Basel 3.1 framework, broadly equivalent to those in the EU CRRIII package, with a proposed implementation dateof July 2025.


2

On July 1, 2021, the U.K. HM Treasury launched a Wholesale Market Review (“WMR”) Consultation. As part of the changes foreseen in the
WMR, the Financial Conduct Authority (the “U.K. FCA”) launched public consultations in 2022 in relation to equity markets and trading venue
perimeter. On July 5, 2023, the U.K. FCA published a policy statement (PS23/11) on trading venue perimeters and a consultation paper (CP23/15) on a
proposed framework for a U.K. consolidated tape. After it has considered the feedback, the U.K. FCA plans to make the necessary amendments to its
Handbook and publish a policy statement in December 2023.
On December 9, 2022, the U.K. Government outlined a Financial Services Package (the “Package”) designed to drive growth and competitivenessin the U.K. financial services sector (the Edinburgh Reforms). The Package, consisting of 30 measures (and divided into four categories: a competitivemarketplace promoting effective use of capital; sustainable finance; technology and innovation; and consumers and business), is intended to complement
the Financial Services and Markets Bill (FSMB) 2023-23 (the “FSMB”). The FSMB provides the U.K. Government with significant powers to overhaul
regulatory policy and rules post-Brexit. Among other things, it includes changes to the Markets in Financial Instruments Directive (“MiFID”) research
unbundling rules, U.K. consolidated tape, post-trade / T+1 settlement, reforms to Senior Managers and Certification Regime, repeal and replacement ofcertain EU legislation by tranches (including the Wholesale Market Review which amends the U.K. MiFID Framework). The FSMB received the Royal
Assent on June 29, 2023 and it is now known as the Financial Services and Markets Act 2023.
On July 18, 2023, the FCA and the PRA published a consultation paper (CP13/23– Margin requirements for non-centrally cleared derivatives:
Amendments to BTS 2016/2251), which include amendments to the regulatory technical standards (RTS) for risk-mitigation techniques forover-the-counter (OTC) derivative contracts not cleared by a Central Counterparty (“CCP”) under the retained EU Regulation on OTC derivativetransactions, CCPs and trade repositories (U.K. EMIR). Among other things, it proposes to extend the temporary exemption for single-stock equity
options and index options from the U.K. bilateral margining requirements from January 4, 2024 until January 4, 2026, enabling the regulators to gather
the evidence necessary to create a permanent regime. The consultation closed on October 18, 2023.
On June 30, 2023, the U.K. HM Treasury published a consultation paper on the reform of the anti-money laundering and counter-terrorism
financing (AML/CTF) supervisory regime. The HM Treasury review set out four possible models for a future AML/CTF supervisory system. This
consultation further develops these models, assessing them against three consultation objectives. The consultation paper does not include a policy
preference and invites respondents’ views regarding the potential benefits and disadvantages of each potential reform model. HM Treasury is also using
the consultation to gather evidence as to whether there is a need for a more formalized system of sanctions supervision, and how this could interact withthe four model reforms. The consultation closed on September 30, 2023.
The EU Benchmark Regulation (“BMR”) rules are currently suspended to allow EU supervised entities to continue to use non-EU benchmarks
until December 31, 2023. On July 14, 2023, the EU Commission adopted a draft delegated act that extends the transitional period for third-country
benchmark administrators, as set out under the EU BMR, to December 31, 2025.
On November 23, 2022, the U.K. FCA announced that it will continue to use its powers under the U.K. Benchmarks Regulation to compel
LIBOR’s administrator, ICE Benchmark Administration to publish three-month sterling LIBOR on a synthetic basis until the end of March 2024. After
March 2024, the rate will be discontinued. U.K. FCA also launched a consultation on the wind-down of U.S. Dollar LIBOR, proposing that one-month,three-month and six-month U.S. Dollar LIBOR continue to be published on a synthetic basis until the end of September 2024. On April 3, 2023, the
FCA announced its final decision, in line with the proposals consulted upon. The Feedback Statement was published on May 31, 2023, and the FCA
published formal legal notices which completed the implementation of the decision.
On June 27, 2023, the U.K. HM Treasury announced that the U.K. and EU have signed a Memorandum of Understanding (MoU) on regulatory
cooperation in financial services. The MoU sets out plans for U.K./EU cooperation and is intended to help establish a constructive and mutually
beneficial relationship between the U.K. and the EU in financial services. The agreement will create an ongoing forum for HM Treasury and theEuropean Commission to discuss voluntary regulatory cooperation on financial services issues of mutual interest. Both sides will share information,
work together towards meeting joint challenges and coordinate positions where appropriate on issues ahead of G7, G20 and other international meetings.


3

Risk Factors
There is no significant change from the risks as previously disclosed in Part I, Item 3. D “Risk Factors” of our annual report on Form 20-F for theyear ended March 31, 2023.


4

Special Note Regarding Forward-Looking Statements
This report contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about ourbusiness, our industry and capital markets around the world. These forward-looking statements are subject to various risks and uncertainties. Generally,
these forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “estimate”,“plan” or similar words. These statements discuss future expectations, identify strategies, contain projections of our results of operations or financial
condition, or state other forward-looking information.
Known and unknown risks, uncertainties and other factors may cause our actual results, performance, achievements or financial position to differ
materially from any future results, performance, achievements or financial position expressed or implied by any forward-looking statements contained inthis report. Such risks, uncertainties and other factors are set forth in “Risk Factors” above and in Item 3. D of our annual report on Form 20-F for the
fiscal year ended March 31, 2023, as well as elsewhere in this Form 6-K.


5

Operating and Financial Review and Prospects
Results of Operations—Six Months Ended September 30, 2022 and 2023
The unaudited interim consolidated financial statements are prepared on a basis consistent with the audited consolidated financial statements
included in our Form 20-F for the fiscal year ended March 31, 2023 filed on June 28, 2023, except for the effect of new accounting pronouncements
recently adopted by Nomura as disclosed in Note 1 “Summary of accounting policies” to the interim consolidated financial statements.
6

Progress on Key Performance Indicators (KPIs)[Management Indicators]
Return on Equity
One component of Nomura’s management vision is “achieving sustainable growth by solving social issues” and we have set Return on Equity(ROE) as one of our most important indicators towards the fiscal year ending March 31, 2025. After the introduction of the Corporate Governance Codein Japan, the importance of management having an awareness of capital costs has increased among Japanese companies. In addition, under theframework of global financial regulations, more effective use of capital is required. As a result, we believe that the optimal allocation of management
resources will become even more important for our company in the future. Accordingly, beginning in the year ended March 31, 2021, we adopted ROE
as a key management indicator, which management uses to track the progress of our sustainable business transformation, along with the revision of“Fundamental Management Policy” based on the approval at the Board of Directors meeting held in May 2020.
ROE is defined and calculated as net income attributable to NHI shareholders divided by total NHI shareholders’ equity. We believe that
disclosure of ROE is useful to investors in that it helps them to assess business conditions and our effective use of capital to enhance corporate value.
We have set a target ROE of 8-10% for the fiscal year ending March 31, 2025, reflecting the cost of capital demanded by our company. However,ROE may be of limited use in that it does not necessarily reflect financial soundness. In order to avoid the excessive pursuit of capital efficiency with theaim of improving ROE at the expense of financial soundness, we attach importance to the creation of corporate value, giving due consideration tofinancial soundness, and thereby improving ROE. ROE for the six months ended September 30, 2023 increased to 3.6% from 1.2% for the same period
in the prior year.
Common equity Tier1 capital ratio (CET1 ratio)
There are multiple global financial regulations that we must comply with, including capital regulations established by Basel Committee on
Banking Supervision as interpreted and implemented by the Financial Services Agency of Japan (“FSA”) which have a direct impact on the way weconduct business. For this reason, we have set a target of maintaining a common equity Tier 1 ratio (CET1 ratio) of at least 11%, so that we will take
into consideration the financial soundness including certain buffer against severe market stress. Our CET1 ratio increased to 16.55% as of September 30,
2023 from 16.32% as of March 31, 2023. For further details, on the key capital requirements we must follow, see “Consolidated Regulatory Capital
Requirements.”[Indicators by Business Segment]
In addition to the Group KPIs, our management also uses certain divisional specific KPIs to monitor and assess performance of the divisions.
7

Retail
We have adopted the following key indicators in the Retail Division to quantify the outcomes of our efforts and monitor our business: Recurring
revenue assets; Net inflows of recurring revenue assets; Flow business clients; and Services for salaried employees; so that our management will be able
to monitor the progress of our businesses and target sustainable and further business growth. We believe that disclosure of those indicators is useful toinvestors in that it helps them to assess the progress of the division’s client-facing activities as well as digest and understand our growth potential.

(Trillions of yen)

Recurring revenue assets

March 31,2023

September 30,
2023

¥

¥

18.7

2022

Net inflows of recurring revenue assets

¥

260.7

2022

Flow business clients

Services for salaried employees

20.2% Change fromMarch 31, 2023

8.1%

Six months ended September 30 (Billions of yen)
% Change from2023
previous year

¥

57.3

(78.0)%

Six months ended September 30 (Thousands)% Change from2023
previous year

1,075

1,247

March 31,
2023

(Thousands)
September 30,
2023

3,489

3,565

16.0%
% Change fromMarch 31, 2023

2.2%


•

Recurring revenue assets

Recurring revenue assets are defined by adding related loans to the total amount of assets, such as investment trusts, discretionary investments,
insurance, and level fee assets, for which management fees and other recurring fees are charged. The amount of related loans totaled approximately¥770.2 billion within Loans receivable in the consolidated balance sheets as of September 30, 2023. Total recurring revenue assets as of September 30,
2023 was ¥20.2 trillion, an increase of ¥1.5 trillion, or 8.1%, from ¥18.7 trillion as of March 31, 2023 due to initiatives to increase recurring revenue
assets and market factors.

•Net inflows of recurring revenue assets

Net inflows of recurring revenue assets are defined and calculated by subtracting the amount of sell-offs and outflows from the amount ofpurchase and inflows of recurring revenue assets, and is an index used to measure the expansion of recurring revenue assets excluding changes in market
value. The total net inflows of recurring revenue assets during the six months ended September 30, 2023 was ¥57.3 billion, lower than that of the six
months ended September 30, 2022 which was ¥260.7 billion due to the increase of sell-offs by clients in the rising market, but we have achieved a netincrease in recurring revenue assets, mainly in services such as insurance and discretionary investment.

•

Flow business clients

The number of flow business clients is defined as the total number of clients to whom we provide flow business, businesses that generate flow
revenues within the fiscal year, and is a measure of the growth in the client base that is critical to realizing the growth in flow revenue, etc. The numberof flow business clients as of September 30, 2023 was approximately 1,247 thousand, which is 16.0% higher than that of September 30, 2022, which
was 1,075 thousand. We achieved the increase by reallocation of our people to provide services to inactive clients, in addition to the improvement of themarket sentiment.

•Services for salaried employees

Services for salaried employees are defined as the sum of the number of workplace financial services provided, such as the number of members of
the employee stock ownership, accounts derived from the employee stock ownership (excluding current members) and corporate DC pension plan
subscribers, and is an index used to measure the expansion of the client base through workplace financial businesses. As of September 30, 2023, thenumber of workplace services provided stood at 3,565 thousand. We achieved an expansion of 77 thousand, 2.2% increase from that of March 31, 2023
which was 3,489 thousand, mainly in terms of the increase in number of members of the employee stock ownership, and have expanded our client basewhich will lead to sustainable growth.
8Investment Management
We have set the balance of assets under management as a key performance indicator for the Investment Management Division. The businesses in theInvestment Management Division generally earn management or similar fees based on the amount of assets under management, meaning that revenue
trends for these businesses tend to follow trends in the amount of assets under management, and our management considers this measure to be effective
in monitoring the progress of these businesses. We also believe that it is an important indicator of how well investment products are received byinvestors. Beginning in the fiscal year ending March 31, 2022, we have also set net inflows as a key performance indicator in the Investment
Management Division. We believe that net inflows is an effective measure in monitoring the progress of the division’s asset management businesses,
excluding market factors from fluctuations in the balance of assets under management. It is an important indicator for ascertaining the effectiveness ofthe division’s measures to expand assets under management and thereby achieve its profit expansion target.

(Trillions of yen)

The balance of assets under management

March 31,2023

September 30,
2023

¥

¥

67.3

2022

Net inflows¥% Change fromMarch 31, 2023

76.5

13.7%

Six months ended September 30 (Billions of yen)
% Change from2023
previous year

(224)

¥

2,306

— %


•

The balance of assets under management

The balance of assets under management includes the net balance (after deducting duplications) of assets under management (gross) of Nomura
Asset Management Co., Ltd., Nomura Corporate Research and Asset Management Inc. and Wealth Square., Ltd., as well as third-party investments infunds managed by Nomura SPARX Investment, Inc., Nomura Mezzanine Partners., Ltd., Nomura Capital Partners Co., Ltd., Nomura Research &Advisory Co., Ltd. and Nomura Real Asset Investment Co., Ltd.. During the six months ended September 30, 2023, we reached a significant milestone
with a record-high balance of assets under management. This accomplishment is a result of a combination of favorable market factors and robust net
inflows of funds across various channels.

•

Net inflows

Net inflows are calculated by subtracting cash outflows from cash inflows. For these purposes, cash outflows do not include outflows from
distributions. While we recorded significant inflows from Japanese and overseas pension institutions, our investment trust business experienced strong
net inflows particularly into exchange traded funds (ETFs), money market funds, and defined contribution pension dedicated funds.
Wholesale
We have adopted a cost-to-income ratio and a revenue to modified RWA ratio as additional key performance indicators in our Wholesale Division.
We believe that disclosure of these indicators would be useful for investors to assess progress in terms of cost and resource efficiency. Additionally, we
use these indicators to evaluate our business based on progress on cost savings initiatives and return on resources.


June 30,
2022

Cost-to-income ratio
Revenue/modified RWA

87%
7.3%

September 30,
2022

June 30,
2023

90%
7.1%

Three months ended% Change fromprevious year

99%
6.2%

12%
(1.1)%

September 30,
2023

96%
6.4%

% Change fromprevious year6%(0.7)%

•

Cost-to-income ratio

The cost-to-income ratio for the Wholesale Division is calculated by dividing non-interest expenses for the division for a given reporting periodby net revenue generated by the division for the same period, calculated consistently, in each case, with our segment presentation for the division. It ismonitored at a divisional level to track operating margins for the business. The ratio increased for the quarter ended June 30, 2023 compared to the priorfiscal year mainly due to decline in Fixed Income revenue from a challenging environment for Macro business as well as increase in costs amidst
inflationary environment. This was partly offset by higher Investment Banking revenue. The ratio increased for the quarter ended September 30, 2023
compared to the prior fiscal year mainly due to decline in Fixed Income revenue amidst market uncertainty and recognition of expenses related toplatform streamlining. This was partly offset by higher Equities and Investment Banking revenue.


9

•

Revenue to modified Risk Weighted Asset (RWA) ratio

The revenue to modified RWA ratio for the Wholesale division is calculated by dividing net revenue generated by our Wholesale Division for agiven reporting period (in the case of net revenue for the Wholesale Division for periods shorter than a full fiscal year, on an annualized basis) by theaverage balance of modified RWA used by the Wholesale Division for the same period. The Revenue to modified RWA ratio is monitored to track ourrevenue earning capacity against risk resources deployed. Modified RWA is the total of (i) average daily risk-weighted assets as calculated and presented
under Basel regulations as interpreted and implemented by the FSA and (ii) an adjustment equal to the regulatory adjustment to common equity tier1(CET1) capital calculated and presented under Basel regulations as interpreted and implemented by the FSA divided by our internal minimum capitalratio target of 12.5%. (daily average for the accounting period), which we use to estimate the amount of deductions to RWA generated by the division.
The revenue to modified RWA as we calculate and present it may differ from similarly titled measures presented by our competitors due to the approachand methodologies used for calculation. Our credit risk-weighted assets and operational risk equivalent assets are calculated by using the foundation
Internal Ratings-Based Approach and the Standardized Approach, respectively, with the approval of the FSA. Furthermore, Market risk equivalent assets
are calculated by using the Internal Models Approach for market risk. The conversion of Wholesale RWA to modified RWA is based on adjustments
reflecting our internal minimum capital ratio target. Moreover, the usefulness of this ratio may be limited in that the adjustment applied to RWA, whichis intended to capture the appropriate amount of RWA to attribute to our businesses (as opposed to RWA as calculated for regulatory capital purposes), isan estimate incorporating our internal risk tolerance; however, this adjustment may not appropriately reflect the actual regulatory capital impact of thecharged assets that are used by our business. Revenue to modified RWA decreased for the quarter ended June 30, 2023 compared to the prior fiscal year,
primarily driven by decline in Fixed Income revenue amidst challenging Macro environment, partly offset by higher Investment Banking revenue. The
ratio decreased slightly for the quarter ended September 30, 2023 compared to the prior fiscal year due to decline in Fixed Income revenue, partly offset
by higher Equities and Investment Banking revenue.
Current Challenges
There is no significant change to our current challenges nor new challenges for the six months ended September 30, 2023.


10

Overview
The following table provides selected consolidated statements of income information for the six months ended September 30, 2022 and 2023.

Millions of yen
except percentages
Six months ended September 30
2022

Non-interest revenues:
Commissions
Fees from investment banking
Asset management and portfolio service fees
Net gain on trading
Gain on private equity investments
Gain (loss) on investments in equity securities
Other
Total non-interest revenues
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes
Income tax expense
Net income
Less: Net income (loss) attributable to noncontrolling interests
Net income attributable to NHI shareholders¥¥

Return on shareholders’ equity (annualized)(1)(1)

138,583
51,474
137,288
302,823
1,203(3,265)
9,772
637,878(20,892)
616,986
573,769
43,21726,081
17,136(1,331)
18,4671.2%

% Change fromprevious year

2023

¥

¥

171,692
69,750148,473
232,176
8,010
7,569
60,274
697,944
18,729716,673
613,628
103,045
41,57861,4672,904
58,563

23.9%
35.5
8.1
(23.3)
565.8
—
516.8
9.4
—
16.2
6.9
138.4
59.4
258.7%—
217.1%

3.6%

Calculated as Net income attributable to NHI shareholders divided by average Total NHI shareholders’ equity multiplied by two.

Net revenue increased from the six months ended September 30, 2022 to the six months ended September 30, 2023. Commissions increased
primarily due to clients sentiment improving by Japanese stock market rally. Fees from investment banking increased primarily due to increase inunderwriting fees from Japan-related ECM transactions. Net gain on trading decreased primarily due to slow down in rates business. Gain on private
equity investments increased primarily due to the increase of fair value of Nomura Capital Partners Co., Ltd.’s investee companies. Other revenue
increased primarily due to American Century Investments related gain/loss.
Net interest revenue is a function of the level and the mix of total assets and liabilities, which includes trading assets and financing and lendingtransactions, and the level, term structure and volatility of interest rates. Net interest revenue is an integral component of our trading business. In
assessing the profitability of our overall business and of our Wholesale division in particular, we view Net interest revenue and Non-interest revenues inaggregate.
Non-interest expenses increased from the six months ended September 30, 2022 for the six months ended September 30, 2023.


11

We are subject to a number of different taxes in Japan and have adopted the Group Tax Sharing system under Japanese tax law. The Group Tax
Sharing system only imposes a national tax. Our foreign subsidiaries are subject to the income taxes of the countries in which they operate, which are
generally lower than those in Japan. The Company’s effective statutory tax rate in any one year is therefore dependent on our geographic mix of profits
and losses and also on the specific tax treatment applicable in each location.
For the six months ended September 30, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 60.3%
was mainly due to an increase in valuation allowances, while non-taxable revenues decreased the effective tax rate.
For the six months ended September 30, 2023, the difference between the effective statutory tax rate of 31% and the effective tax rate of 40.3%
was mainly due to non-deductible expenses, while non-taxable revenues decreased the effective tax rate.
RetailIn our Retail Division, our sales activities focus on providing consultation services and investment proposals to clients for which we receive
commissions and fees. Additionally, we receive fees from asset management companies in connection with administration services we provide inconnection with investment trust certificates that we distribute. We also receive agent commissions from insurance companies for the insurance products
we sell as an agent. Nomura plans to rename its Retail Division as Wealth Management Division, effective April 1, 2024.


2022

Non-interest revenues
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥¥

142,603
1,263
143,866
133,465
10,401Millions of yen
Six months ended September 30% Change from2023
previous year¥¥

188,301
2,681
190,982
138,990
51,992

32.0%
112.3
32.7
4.1
399.9%Net revenue increased from the six months ended September 30, 2022 to the six months ended September 30, 2023.
Non-interest expenses increased from the six months ended September 30, 2022 to the six months ended September 30, 2023.
Income before income taxes increased from the six months ended September 30, 2022 to the six months ended September 30, 2023.
The following table presents a breakdown of Retail non-interest revenues for the six months ended September 30, 2022 and 2023.


2022

Commissions
Brokerage commissions
Commissions for distribution of investment trusts
Other commissions
Net gain on trading
Fees from investment banking
Asset management fees
OthersNon-interest revenues¥¥

52,16424,03913,901
14,224
21,3486,697
54,4507,944
142,603

Millions of yen
Six months ended September 30% Change from2023
previous year¥¥

83,24337,933
26,84018,47027,6408,866
59,3709,182
188,301

59.6%
57.8
93.1
29.9
29.5
32.4
9.0
15.6
32.0%

Commissions increased from the six months ended September 30, 2022 to the six months ended September 30, 2023, primarily due to an increasein commissions from sales of stocks and investment trusts. Net gain on trading increased from the six months ended September 30, 2022 to the six
months ended September 30, 2023. Fees from investment banking increased from the six months ended September 30, 2022 to the six months ended
September 30, 2023, primarily due to increase in underwriting fees from Japan-related ECM transactions. Asset management fees increased from the six
months ended September 30, 2022 to the six months ended September 30, 2023.


12

Retail Client Assets
The following table presents the amounts and details of Retail client assets as of March 31, 2023 and September 30, 2023.



Equities
Debt securities
Stock investment trusts
Bond investment trusts
Overseas mutual funds
Others
Total

Balance at
March 31, 2023

Trillions of yen
From March 31, 2023 to September 30, 2023
Marketappreciation /Gross inflows
Gross outflows(depreciation)

Balance at
September 30,
2023

¥

¥

¥

¥

78.0
18.5
10.2
6.8
1.2
7.5
122.2

¥

14.0
7.6
1.7
0.0
0.1
0.4
23.8

¥

¥

(12.3)(11.3)
(1.7)
(0.1)
(0.1)
(0.3)
(25.8)

¥

¥

8.0
4.3
1.0
0.4
0.3
0.2
14.2

¥

87.7
19.1
11.2
7.1
1.5
7.8
134.4

Retail client assets increased by ¥12.2 trillion from ¥122.2 trillion as of March 31, 2023 to ¥134.4 trillion as of September 30, 2023. The balancesof our clients’ equity and equity-related products was ¥78.0 trillion as of March 31, 2023 and ¥87.7 trillion as of September 30, 2023. The balances ofour clients’ investment trusts and mutual funds increased by ¥1.6 trillion from ¥18.2 trillion as of March 31, 2023 to ¥19.8 trillion as of September 30,
2023.


13

Investment Management
Our Investment Management Division is conducted through Nomura Asset Management Co., Ltd. (“NAM”) and other investment and asset
management subsidiaries. We earn portfolio management fees through the development and management of collective investment schemes such as
investment trusts, provide investment advisory services for pension funds and other institutional clients. We also provide private equity/debt strategies aswell as product offering platform that invests in tangible assets such as infrastructure, real estate and aircraft. Our revenue also include investment
gain/loss related to our investments in American Century Investments and in other investment businesses.

2022

Non-interest revenues
Net interest revenue
Net revenue
Non-interest expenses
Income (loss) before income taxes¥¥

35,366(1,616)33,75039,911(6,161)Millions of yen
Six months ended September 30% Change from2023
previous year¥

76,357(4,721)
71,63644,794
26,842¥115.9%
—
112.3
12.2
— %

Net revenue increased from the six months ended September 30, 2022 to the six months ended September 30, 2023 primarily due to the increaseof the fair value of the investee companies.
Non-interest expenses increased from the six months ended September 30, 2022 to the six months ended September 30, 2023.
The breakdown of net revenue for Investment Management is as follows:Millions of yen
Six months ended September 30
2022
2023

Business revenue(1)Investment gain/ loss(2)Net revenue¥¥

60,553(26,803)33,750¥¥65,937
5,699
71,636(1)(2)

Consists of division revenue, other than investment gain/loss, including revenue generated by our asset management business (excluding gains andlosses related to our investment in American Century Investments), revenues generated by Nomura Babcock & Brown Co., Ltd.’s aircraft leasingrelated businesses and management fee revenues generated from our private equity and other investment businesses.
Consists of division revenue attributable to investments (including fair value fluctuations, funding cost and dividends), including gains and losses
related to our investment in American Century Investments and our investments held in our private equity and other investment businesses.

14The following table presents assets under management of each principal Nomura entity within our Investment Management Division as ofMarch 31, 2023 and September 30, 2023. Gross outflows include outflow from distribution.



Nomura Asset Management Co. , Ltd.
Nomura Corporate Research and Asset Management Inc. etc
Combined total
Shared across group companies
Total

Balance at
March 31, 2023

Billions of yen
From March 31, 2023 to September 30, 2023
Marketappreciation /Gross inflows
Gross outflows(depreciation)

Balance at
September 30,
2023

¥

¥

¥

¥

69,092
3,868
72,960(5,688)67,272¥

14,768937
15,705(1,045)
14,660¥¥(13,431)(489)(13,920)773(13,147)

¥

7,896
536
8,432
(760)
7,672

¥

¥

78,325
4,852
83,177(6,720)76,457

Assets under management increased primarily due to increases in the market value of assets under management.
The following table shows NAM’s market share, in terms of net asset value, in the Japanese Asset management market as of March 31, 2023 andSeptember 30, 2023.

March 312023

Total of publicly offered investment trusts
Equity investment trusts
Debt investment trusts

27%
25%
44%



15

September 30
2023

27%
25%
43%

Wholesale
In Wholesale, we are engaged in the sales and trading of debt securities and equity securities and currencies on a global basis to various
institutions, providing investment banking services such as the underwriting of bonds and equities as well as mergers and acquisitions and financial
advice and investing in private equity businesses with the goal of maximizing returns on these investments by increasing the corporate value of investee
companies.

2022

Non-interest revenues
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥¥

Millions of yen
Six months ended September 30% Change from2023
previous year

406,582(2,096)404,486
359,025
45,461¥¥

387,061
7,876
394,937
384,572
10,365(4.8)%—(2.4)
7.1(77.2)%Net revenue decreased from the six months ended September 30, 2022 to the six months ended September 30, 2023.
Non-interest expenses increased from the six months ended September 30, 2022 to the six months ended September 30, 2023.
The following table presents a breakdown of net revenue for Wholesale for the six months ended September 30, 2022 and 2023.


2022

Global Markets
Investment Banking
Net revenue¥¥

352,770
51,716404,486

Millions of yen
Six months ended September 30% Change from2023
previous year¥¥

331,062
63,875394,937(6.2)%
23.5(2.4)%

Global Markets net revenue was ¥331.1 billion. Fixed Income net revenue decreased from ¥228.2 billion for the six months ended September 30,
2022 to ¥194.2 billion for the six months ended September 30, 2023 because of slowdown in macro products from uncertain outlook. Equities net
revenue increased from ¥124.6 billion for the six months ended September 30, 2022 to ¥136.8 billion for the six months ended September 30, 2023 due
to a strong increase in execution service revenue in Japan. Investment banking net revenue was ¥63.9 billion.


16

Other Operating Results
Other operating results include net gain (loss) related to economic hedging transactions, a part of realized gain (loss) on investments in equity
securities held for operating purposes, equity in earnings of affiliates, corporate items, and other financial adjustments. See Note 15 “Segment andgeographic information” in our interim consolidated financial statements.
Net revenue was ¥39,548 million for the six months ended September 30, 2022 and ¥60,708 million for the six months ended September 30, 2023
primarily due to increase in interest revenue. Non-interest expenses were ¥41,368 million for the six months ended September 30, 2022 and¥45,272 million for the six months ended September 30, 2023. Income (loss) before income taxes in other operating results was ¥(1,820) million for thesix months ended September 30, 2022 and ¥15,436 million for the six months ended September 30, 2023.
Other operating results for the six months ended September 30, 2023 include losses from changes in the fair value of derivative liabilities of¥8.4 billion attributable to the change in Nomura’s own creditworthiness and gains from changes in counterparty credit spreads of ¥3.6 billion.
Number of Employees
The following table presents the number of our employees as of September 30, 2022 and 2023.


September 30
2022
2023

Japan
EuropeAmericas
Asia and Oceania
Total

15,384
2,869
2,358
6,520
27,131

17

15,158
2,993
2,486
6,492
27,129

Summary of Regional Contributions
For a summary of our net revenue, income (loss) before income taxes and long-lived assets by geographic region, see Note 15“Segment and geographic information” in our interim consolidated financial statements.
Regulatory Capital Requirements
Many of our business activities are subject to statutory capital requirements, including those of Japan, the U.S., the U.K. and certain othercountries in which we operate.
Translation Exposure
A significant portion of our business is conducted in currencies other than Japanese Yen—most significantly, U.S. Dollars, British Pounds andEuros. We prepare financial statements of each of our consolidated subsidiaries in its functional currency, which is the currency of the primary economic
environment in which the entity operates. Translation exposure is the risk arising from the effect of fluctuations in exchange rates on the net assets of ourforeign subsidiaries. Translation exposure is not recognized in our consolidated statements of income unless and until we dispose of, or liquidate, therelevant foreign subsidiary.
Critical Accounting Policies and Estimates
Critical accounting policies are the accounting policies which have the most significant impact on the preparation of our consolidated financial
statements included within this report and which require the most difficult, subjective and complex judgments by our management to develop estimatesused in the application of these policies. Estimates, by their nature, are based on underlying assumptions which require management judgment anddepend on the extent of information available at the time. Actual results in future reporting periods may differ from these estimates, which could have amaterial impact on our consolidated financial statements.
The following table summarizes the critical accounting policies which have the most significant impact on our consolidated financial statements
for the six months ended September 30, 2023. For each of the critical accounting policies, the table also identifies the inherent accounting estimates, thenature of the estimates, the underlying assumptions and judgments made by our management during the six months ended September 30, 2023 to derive
those estimates and the financial impact had we applied different estimates or assumptions during the six months ended September 30, 2023. See Note 1“Summary of Accounting Policies” in our consolidated financial statements included in this report for more information on the critical accounting
policies we apply in these areas and the relevant footnote disclosures referred to in the table for more information around how these critical accounting
policies and critical accounting estimates have been applied.


18

Critical
accounting
policyFair value offinancial
instruments
Note 2 “Fair value
measurements”

Critical accounting
estimates

Estimating fair value
for financial
instruments

Key subjective assumptions or judgments by management

Effect of changes in estimatesand assumptions during thesix months ended September 30,
2023

See Note 2 “Fair value
measurements” for further
information around ourvaluation methodologies andour policy for classification offinancial instruments within theThis may affect the amount and timing of unrealized gains or losses fair value hierarchy.
recognized in the consolidated statements of income for a particular
Level 3 financial assets (net offinancial instrument.
derivative liabilities) increased
from ¥868 billion as of
Selection of appropriate valuation techniques
March 31, 2023 to• For financial instruments measured at fair values where quoted ¥1,014 billion as ofprices are available in active markets, we typically use quoted September 30, 2023. Total level
prices as level 1 inputs for determining the fair values of these 3 financial assets to total
financial instruments.
financial assets carried at fairvalue on a recurring basis ratio• For financial instruments where such quoted prices are not
was 6 % as of September 30,
available, fair values of these financial instruments aremeasured using level 2 or level 3 inputs. Significant judgment 2023 (5% as of March 31,
2023.)
is involved in selection of appropriate valuation techniques
A significant portion of our financial instruments are carried at fairvalue. The fair values of these financial instruments may not only
be measured at quoted prices but also impacted by other factors,
including selection of valuation techniques/ models and otherassumptions that require judgment.

and validation of assumptions applied in models because theestimated fair values measured could vary depending on
which models and assumptions are used. When selecting
valuation techniques, various factors such as the particular
circumstances and markets where these financial instruments
are traded, the availability of reliable inputs, maximizing theuse of relevant observable inputs and minimizing the use ofunobservable inputs are considered.
Significance of level 3 inputs•

Fair values are more judgmental when we use level 3 inputs,
which are based on significant non-market based unobservable
inputs.

For these instruments, fair value is determined based on
management’s judgment about the assumption that market
participant would use in pricing the instruments, including
perception of liquidity, economic environment and the risks
affecting the specific instruments.
19

See Note 2“Fair Valuemeasurements” for further
quantitative and qualitative
information regarding level 3
inputs, including the sensitivityof fair values of the underlying
financial instruments to changes
in level 3 inputs.

Critical
accounting
policyLitigation
provisions
Note 14“Commitments,
contingencies andguarantees”

Critical accounting
estimates

Determination ofwhether a loss isprobable andmeasurement ofprovisions andreasonably possibleloss

Key subjective assumptions or judgments by management

In the normal course of business, we may be involved ininvestigations, lawsuits and other legal proceedings (“legal
matters”) and, as a result, may suffer losses from any fines,
penalties or settlements we choose to make to resolve the matters.
The losses could be significant to our consolidated results ofoperations. Various judgments and assumptions are required bymanagement around the likelihood of loss in respect of a legal
matter and the eventual amount of such loss.

Effect of changes in estimatesand assumptions during thesix months ended September 30,
2023

See Note 14 “Commitments,
contingencies and guarantees”
for details of the various legal
matters we are currently
involved with, including thosewhere legal provisions havebeen recognized or where a loss
is considered reasonably
possible.

Determination if a loss is probable
•
•

•

•

If we concluded as ofDecember 15, 2023 that for
those legal matters where an
estimate of reasonably possible
Significant judgment required in deciding the likelihood ofloss can be made, where the risk
whether a loss from a legal matter is probable, reasonably
of loss was considered probablepossible or remote.
rather than just reasonably
Such judgment usually involves consideration of external legal possible, we would recognize
counsel opinion, our own historical experiences in court andadditional legal provisions
similar matters, progress of regulatory investigation or
through earnings oflitigation proceedings, and the appetite of management or the approximately ¥32 billion.
counterparty to settle the matter.
Recognition of legal provisions are only required if a loss isprobable and can be reasonably estimated.

If a loss is only considered to be reasonably possible orremote, no legal provision is required.

Measurement of a probable or reasonably possible loss•

Once a loss in respect of a legal matter has been determined as
being probable of occurring, a legal provision is recognizedwhen the amount of such loss or a range of loss can bereasonably estimated.

•

Where a loss is reasonably possible rather than probable ofoccurring, and such loss or range of reasonably possible loss
can be reasonably estimated, the reasonably possible
maximum loss in excess of any amounts recognized as a legal
provision is disclosed.

•

All of the above determination is often inherently difficult,especially for legal claims or regulatory investigations that areindeterminate or still at an early stage.

•

In exceptional circumstances, where we believe a loss isprobable or reasonably possible, but we are unable toreasonably estimate the amount of such loss, due to inherent
complexities or other reasons surrounding the legal matter, we
are unable to recognize a legal provision or disclose therelevant amount of reasonably possible loss and disclose this
fact.



20

However, this estimate does notinclude the impact of probablelosses where we cannot
reasonably estimate such losses.

Assets and Liabilities Associated with Investment and Financial Services Business
Exposure to Certain Financial Instruments and Counterparties
Market conditions continue to impact numerous products to which we have certain exposures. We also have exposures to Special Purpose Entities(“SPEs”) and other counterparties in the normal course of business.
Leveraged Finance
We provide loans to clients in connection with leveraged buy-outs and leveraged buy-ins. As this type of finance is usually initially provided
through a commitment, we have both funded and unfunded exposures on these transactions.
The following table presents our exposure to leveraged finance transactions, separately showing funded and unfunded commitments bygeographic location of the target company as of September 30, 2023.


FundedEuropeAmericas
Asia and Oceania
Total

¥

¥

Millions of yen
September 30, 2023
Unfunded

Total

18,052 ¥ 70,950 ¥ 89,002
21,359124,812146,171
18,52921,75640,28557,940 ¥ 217,518 ¥ 275,458

Special Purpose Entities (“SPEs”)
Our involvement with these entities includes structuring, underwriting, distributing and selling debt instruments and beneficial interests issued bythese entities, subject to prevailing market conditions. In connection with our securitization and equity derivative activities, we also act as a transferor of
financial assets to these entities, as well as, underwriter, distributor and seller of asset-repackaged financial instruments issued by these entities. We
retain, purchase and sell variable interests in SPEs in connection with our market-making, investing and structuring activities. Our other types of
involvement with SPEs include guarantee agreements and derivative contracts.
For further discussion on Nomura’s involvement with variable interest entities (“VIEs”), see Note 6. “Securitizations and Variable Interest
Entities” included in our interim consolidated financial statements.
Accounting Developments
See Note 1 “Summary of accounting policies: New accounting pronouncements recently adopted” in our interim consolidated financial
statements.


21

Deferred Tax Assets Information
Details of deferred tax assets and liabilities
The following table presents details of deferred tax assets and liabilities reported within Other assets—Other and Other liabilities, respectively, inthe consolidated balance sheets as of September 30, 2023.

Millions of yen
September 30, 2023

Deferred tax assets
Depreciation, amortization and valuation of fixed assets
Investments in subsidiaries and affiliates
Valuation of financial instruments
Accrued pension and severance costs
Other accrued expenses and provisions
Operating losses
Lease liabilities
Other
Gross deferred tax assets
Less—Valuation allowances
Total deferred tax assets
Deferred tax liabilities
Investments in subsidiaries and affiliates
Valuation of financial instruments
Undistributed earnings of foreign subsidiaries
Valuation of fixed assets
Right-of-use assets
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)¥¥

40,7797,389
150,895
16,82276,502464,795
51,922
18,769827,873(569,483)
258,390108,078
130,880
2,946
22,30745,8835,000
315,094(56,704)

Calculation method of deferred tax assets
In accordance with U.S. GAAP, we recognize deferred tax assets to the extent we believe that it is more likely than not that a benefit will be
realized. Valuation allowances are provided for tax benefits available to us, which are not deemed more likely than not to be realized.
Legal Proceedings
For a discussion of our litigation and related matters, see Note 14 “Commitments, contingencies and guarantees” in our interim consolidated
financial statements.
22

Liquidity and Capital Resources
Funding and Liquidity Management
Overview
We define liquidity risk as the risk of loss arising from difficulty in securing the necessary funding or from a significantly higher cost of funding
than normal levels due to deterioration of the Nomura Group’s creditworthiness or deterioration in market conditions. This risk could arise from
Nomura-specific or market-wide events such as inability to access the secured or unsecured debt markets, a deterioration in our credit ratings, a failure
to manage unplanned changes in funding requirements, a failure to liquidate assets quickly and with minimal loss in value, or changes in regulatory
capital restrictions which may prevent the free flow of funds between different group entities. Our global liquidity risk management policy is based on
liquidity risk appetite formulated by the Executive Management Board (“EMB”). Nomura’s liquidity risk management, under market-wide stress and in
addition, under Nomura-specific stress, seeks to ensure enough continuous liquidity to meet all funding requirements and unsecured debt obligations
across one year and 30-day periods, respectively, without raising funds through unsecured funding or through the liquidation of assets. We are required
to meet regulatory notice on the liquidity coverage ratio and the net stable funding ratio issued by the FSA.
We have in place a number of liquidity risk management frameworks that enable us to achieve our primary liquidity objective. These frameworks
include (1) Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio; (2) Utilization of Unencumbered Assets as Part of Our
Liquidity Portfolio; (3) Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with the Composition of Assets;(4) Management of Credit Lines to Nomura Group Entities; (5) Implementation of Liquidity Stress Tests; and (6) Contingency Funding Plan.
Our EMB has the authority to make decisions concerning group liquidity management. The Chief Financial Officer (“CFO”) has the operational
authority and responsibility over group liquidity management based on decisions made by the EMB.
1. Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio.
We centrally control residual cash held at Nomura Group entities for effective liquidity utilization purposes. As for the usage of funds, the CFO
decides the maximum amount of available funds, provided without posting any collateral, for allocation within Nomura and the EMB allocates the funds
to each business division. Global Treasury monitors usage by businesses and reports to the EMB.
In order to enable us to transfer funds smoothly between group entities, we limit the issuance of securities by regulated broker-dealers or banking
entities within the Nomura Group and seek to raise unsecured funding primarily through the Company or through unregulated subsidiaries. The primary
benefits of this strategy include cost minimization, wider investor name recognition and greater flexibility in providing funding to various subsidiaries
across the Nomura Group.
To meet any potential liquidity requirement, we maintain a liquidity portfolio, managed by Global Treasury apart from other assets, in the form of
cash and highly liquid, unencumbered securities that may be sold or pledged to provide liquidity. As of September 30, 2023, our liquidity portfolio was¥7,767.1 billion which sufficiently met liquidity requirements under the stress scenarios.
The following table presents a breakdown of our liquidity portfolio by type of financial assets as of March 31, 2023 and September 30, 2023 andaverages maintained for the years ended March 31, 2023 and September 30, 2023. Yearly averages are calculated using month-end amounts.

Cash, cash equivalents and time deposits(1)Government securities
Others(2)Total liquidity portfolio

Average foryear ended
March 31, 2023

Billions of yen
Average forsix months ended
March 31, 2023
September 30, 2023

September 30, 2023

¥

¥

¥

¥

3,155.5
4,073.8416.9
7,646.2¥

3,229.3
3,984.0441.0
7,654.3¥¥

3,532.1
3,981.1
420.1
7,933.2¥

3,580.3
3,811.9374.8
7,767.1

(1)(2)

Cash, cash equivalents, and time deposits include nostro balances and deposits with both central banks and market counterparties that are readily
available to support the liquidity position of Nomura.
Others include other liquid financial assets such as money market funds and U.S. agency securities.



23

The following table presents a breakdown of our liquidity portfolio by currency as of March 31, 2023 and September 30, 2023 and averages
maintained for the years ended March 31, 2023 and September 30, 2023. Yearly averages are calculated using month-end amounts.

Japanese Yen
U.S. Dollar
Euro
British Pound
Others(1)Total liquidity portfolio

Average foryear ended
March 31, 2023

Billions of yen
Average forsix months ended
March 31, 2023
September 30, 2023

September 30, 2023

¥

¥

¥

¥

1,613.6
4,326.0
869.3
505.7
331.6
7,646.2¥

1,852.0
3,953.3
964.5
522.4
362.1
7,654.3¥

1,882.8
4,151.5
975.6
510.8
412.6
7,933.2¥¥

1,603.0
4,186.9
950.7
597.9
428.6
7,767.1

(1)Includes other currencies such as the Australian Dollar, the Canadian Dollar and the Swiss Franc.

We assess our liquidity portfolio requirements globally as well as by each major operating entity in the Nomura Group. We primarily maintain our
liquidity portfolio at Nomura Holdings, Inc. (“NHI”) and Nomura Securities Co., Ltd. (“NSC”), our other major broker-dealer subsidiaries, our banksubsidiaries, and other group entities. In determining the amounts and entities which hold this liquidity portfolio, we consider legal, regulatory and tax
restrictions which may impact our ability to freely transfer liquidity across different entities in the Nomura Group.
The following table presents a breakdown of our liquidity portfolio by entity as of March 31, 2023 and September 30, 2023.

March 31, 2023

NHI and NSC(1)Major broker-dealer subsidiaries
Bank subsidiaries(2)Other affiliates
Total liquidity portfolio¥¥

Billions of yen
September 30, 2023

1,806.4
3,012.6
1,178.6
1,656.7
7,654.3¥¥

1,455.7
3,255.2
1,170.3
1,885.9
7,767.1


(1)

(2)

NSC, a broker-dealer located in Japan, holds an account with the Bank of Japan (“BOJ”) and has direct access to the BOJ Lombard facility
through which same day funding is available for our securities pool. Any liquidity surplus at NHI is lent to NSC via short-term intercompany
loans, which can be unwound immediately when needed.
Includes Nomura Bank International plc (“NBI”), Nomura Singapore Limited and Nomura Bank (Luxembourg) S.A.
2. Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio.

In addition to our liquidity portfolio, we had ¥3,410.4 billion of other unencumbered assets comprising mainly of unpledged trading assets that canbe used as an additional source of secured funding. Global Treasury monitors other unencumbered assets and can, under a liquidity stress event when thecontingency funding plan has been invoked, monetize and utilize the cash generated as a result. The aggregate of our liquidity portfolio and otherunencumbered assets as of September 30, 2023 was ¥11,177.5 billion, which represented 337.0% of our total unsecured debt maturing within one year.

Billions of yen
March 31, 2023
September 30, 2023

Net liquidity value of other unencumbered assets
Liquidity portfolio
Total

¥
¥



24

2,842.5
7,654.3
10,496.8¥¥

3,410.4
7,767.1
11,177.5

3. Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with the Composition of Assets
We seek to maintain a surplus of long-term debt and equity above the cash capital requirements of our assets. We also seek to achieve
diversification of our funding by market, instrument type, investors, currency, and staggered maturities in order to reduce unsecured refinancing risk.
We diversify funding by issuing various types of debt instruments—these include both structured loans and structured notes with returns linked tointerest rates, currencies, equities, commodities, or related indices. We issue structured loans and structured notes in order to increase the diversity of ourdebt instruments. We typically hedge the returns we are obliged to pay with derivatives and/or the underlying assets to obtain funding equivalent to our
unsecured long-term debt. The proportion of our non-Japanese Yen denominated long-term debt increased to 59.4% of total long-term debt outstanding
as of September 30, 2023 from 55.9% as of March 31, 2023.
3.1 Short-Term Unsecured Debt
Our short-term unsecured debt consists of short-term bank borrowings (including long-term bank borrowings maturing within one year), otherloans, commercial paper, deposit at banking entities, certificates of deposit and debt securities maturing within one year. Deposits at banking entities andcertificates of deposit comprise customer deposits and certificates of deposit of our banking subsidiaries. Short-term unsecured debt includes the current
portion of long-term unsecured debt.
The following table presents an analysis of our short-term unsecured debt by type of financial liability as of March 31, 2023 and September 30,
2023.

March 31, 2023

Short-term bank borrowings
Other loans
Commercial paper
Deposits at banking entities
Certificates of deposit
Debt securities maturing within one year
Total short-term unsecured debt

¥

¥

203.3
256.8
300.0
1,705.0
224.2
721.9
3,411.2

Billions of yen
September 30, 2023

¥

¥

119.0
257.8
293.1
1,596.3
232.7
817.4
3,316.3

3.2 Long-Term Unsecured Debt
We meet our long-term capital requirements and also achieve both cost-effective funding and an appropriate maturity profile by routinely funding
through long-term debt and diversifying across various maturities and currencies.
Our long-term unsecured debt includes senior and subordinated debt issued through U.S. registered shelf offerings and our U.S. registeredmedium-term note programs, our Euro medium-term note programs, registered shelf offerings in Japan and various other debt programs.
As a globally competitive financial services group in Japan, we have access to multiple global markets and major funding centers. The Company,
NSC., Nomura Europe Finance N.V., NBI, Nomura International Funding Pte. Ltd. and Nomura Global Finance Co., Ltd. are the main group entities
that borrow externally, issue debt instruments and engage in other funding activities. By raising funds to match the currencies and liquidities of ourassets or by using foreign exchange swaps as necessary, we pursue optimization of our funding structures.
We use a wide range of products and currencies to ensure that our funding is efficient and well diversified across markets and investor types. Our
unsecured senior debt is mostly issued without financial covenants, such as covenants related to adverse changes in our credit ratings, cash flows, resultsof operations or financial ratios, which could trigger an increase in our cost of financing or accelerate repayment of the debt.
25

The following table presents an analysis of our long-term unsecured debt by type of financial liability as of March 31, 2023 and September 30,
2023.

March 31, 2023

Long-term deposits at banking entities
Long-term bank borrowings
Other loans
Debt securities(1)Total long-term unsecured debt

¥

¥

208.8
3,004.9
265.5
5,291.5
8,770.7

Billions of yen
September 30, 2023

¥

¥

235.3
3,333.4
291.9
5,871.2
9,731.8

(1)

Excludes long-term debt securities issued by consolidated special purpose entities and similar entities that meet the definition of variable interest
entities under Accounting Standard Codification (“ASC”) 810 “Consolidation” and secured financing transactions recognized within Long-termborrowings as a result of transfers of financial assets that are accounted for as financings rather than sales in accordance with ASC 860 “Transfer
and Servicing.”
3.3 Maturity Profile

We also seek to maintain an average maturity for our plain vanilla debt securities and borrowings greater than or equal to three years. The average
maturity for our plain vanilla debt securities and borrowings with maturities longer than one year was 3.8 years as of September 30, 2023. A significant
amount of our structured loans and structured notes are linked to interest rates, currencies, equities, commodities, or related indices. These maturities areevaluated based on internal models and monitored by Global Treasury. Where there is a possibility that these may be called prior to their scheduled
maturity date, maturities are based on our internal stress option adjusted model. The model values the embedded optionality under stress market
conditions in order to determine when the debt securities or borrowings are likely to be called. The graph below shows the distribution of maturities ofour outstanding long-term debt securities and borrowings by the model.
On this basis, the average maturity of our structured loans and structured notes with maturities longer than one year was 9.5 years as of
September 30, 2023. The average maturity of our entire long-term debt with maturities longer than one year including plain vanilla debt securities andborrowings was 6.8 years as of September 30, 2023.



3.4 Secured Funding
We typically fund our trading activities through secured borrowings, repurchase agreements and Japanese “Gensaki Repo” transactions. We
believe such funding activities in the secured markets are more cost-efficient and less credit-rating sensitive than financing in the unsecured market. Our
secured funding capabilities depend on the quality of the underlying collateral and market conditions. While we have shorter term secured financing forhighly liquid assets, we seek longer terms for less liquid assets. We also seek to lower the refinancing risks of secured funding by transacting with adiverse group of global counterparties and delivering various types of securities collateral. In addition, we reserve an appropriate level of liquidity
portfolio for the refinancing risks of secured funding maturing in the short term for less liquid assets. For more detail of secured borrowings andrepurchase agreements, see Note 5 “Collateralized transactions” in our consolidated financial statements.
26

4. Management of Credit Lines to Nomura Group Entities
We maintain and expand credit lines to Nomura Group entities from other financial institutions to secure stable funding. We ensure that thematurity dates of borrowing agreements are distributed evenly throughout the year in order to prevent excessive maturities in any given period.
5. Implementation of Liquidity Stress Tests
We maintain our liquidity portfolio and monitor the sufficiency of our liquidity based on an internal model which simulates changes in cash
outflow under specified stress scenarios to comply with our above mentioned liquidity management policy.
We assess the liquidity requirements of the Nomura Group under various stress scenarios with differing levels of severity over multiple time
horizons. We evaluate these requirements under Nomura-specific and broad market-wide events, including potential credit rating downgrades at theCompany and subsidiary levels. We call this risk analysis our Maximum Cumulative Outflow (“MCO”) framework.
The MCO framework is designed to incorporate the primary liquidity risks for Nomura and models the relevant future cash flows in the following
two primary scenarios:•Stressed scenario—To maintain adequate liquidity during a severe market-wide liquidity event without raising funds through unsecured
financing or through the liquidation of assets for a year; and•Acute stress scenario—To maintain adequate liquidity during a severe market-wide liquidity event coupled with credit concerns regarding
Nomura’s liquidity position, without raising funds through unsecured financing or through the liquidation of assets for 30 days.

We assume that Nomura will not be able to liquidate assets or adjust its business model during the time horizons used in each of these scenarios.
The MCO framework therefore defines the amount of liquidity required to be held in order to meet our expected liquidity needs in a stress event to alevel we believe appropriate based on our liquidity risk appetite.
As of September 30, 2023, our liquidity portfolio exceeded net cash outflows under the stress scenarios described above.
We constantly evaluate and modify our liquidity risk assumptions based on regulatory and market changes. The model we use in order to simulate
the impact of stress scenarios includes the following assumptions:•

No liquidation of assets;•

No ability to issue additional unsecured funding;•

Upcoming maturities of unsecured debt (maturities less than one year);•

Potential buybacks of our outstanding debt;•

Loss of secured funding lines particularly for less liquid assets;•

Fluctuation of funding needs under normal business circumstances;•

Cash deposits and free collateral roll-off in a stress event;•

Widening of haircuts on outstanding repo funding;•

Additional collateralization requirements of clearing banks and depositories;•

Drawdown on loan commitments;•

Loss of liquidity from market losses;•

Assuming a two-notch downgrade of our credit ratings, the aggregate fair value of assets that we would be required to post as additional
collateral in connection with our derivative contracts; and•Legal and regulatory requirements that can restrict the flow of funds between entities in the Nomura Group.

















27

6. Contingency Funding Plan
We have developed a detailed Contingency Funding Plan (“CFP”) to integrate liquidity risk control into our comprehensive risk management
strategy and to enhance the quantitative aspects of our liquidity risk control procedures. As a part of our CFP, we have developed an approach foranalyzing and quantifying the impact of any liquidity crisis. This allows us to estimate the likely impact of both Nomura-specific and market-wide
events; and specifies the immediate action to be taken to mitigate any risk. The CFP lists details of key internal and external parties to be contacted andthe processes by which information is to be disseminated. This has been developed at a legal entity level in order to capture specific cash requirements at
the local level—it assumes that our parent company does not have access to cash that may be trapped at a subsidiary level due to regulatory, legal or tax
constraints. We periodically test the effectiveness of our CFP for different Nomura-specific and market-wide events. We also have access to central
banks including, but not exclusively, the BOJ, which provide financing against various types of securities. These operations are accessed in the normal
course of business and are an important tool in mitigating contingent risk from market disruptions.
Liquidity Regulatory Framework
In 2008, the Basel Committee published “Principles for Sound Liquidity Risk Management and Supervision”. To complement these principles, theCommittee has further strengthened its liquidity risk management framework by developing two minimum standards for funding liquidity. Thesestandards have been developed to achieve two separate but complementary objectives.
The first objective is to promote short-term resilience of a financial institution’s liquidity risk profile by ensuring that it has sufficient high-quality
liquid assets to survive a significant stress scenario lasting for 30 days. The Committee developed the Liquidity Coverage Ratio (“LCR”) to achieve thisobjective.
The second objective is to promote resilience over a longer time horizon by creating additional incentives for financial institutions to fund theiractivities with more stable sources of funding on an ongoing basis. The Net Stable Funding Ratio (“NSFR”) has a time horizon of one year and has beendeveloped to provide a sustainable maturity structure of assets and liabilities.
These two standards are comprised mainly of specific parameters which are internationally “harmonized” with prescribed values. Certain
parameters, however, contain elements of national discretion to reflect jurisdiction-specific conditions.
In Japan, the regulatory notice on the LCR, based on the international agreement issued by the Basel Committee with necessary national revisions,
was published by Financial Services Agency (on October 31, 2014). The notices have been implemented since the end of March 2015 with phased-inminimum standards. Average of Nomura’s LCRs for the three months ended September 30, 2023 was 193.7%, and Nomura was compliant withrequirements of the above notices. As for the NSFR, the revision of the liquidity regulatory notice was published by FSA (on March 31, 2021) and it has
been implemented from the end of September 2021. Nomura’s NSFR as of September 30, 2023 was compliant with the regulatory requirements.
28

Cash Flows
Nomura’s cash flows are primarily generated from operating activities undertaken in connection with our client flows and trading and fromfinancing activities which are closely related to such activities. As a financial institution, growth in operations tends to result in cash outflows fromoperating activities as well as investing activities. For the six months ended September 30, 2022, we recorded net cash outflows from operating activities
and investing activities and net cash inflows from financing activities. For the six months ended September 30, 2023, we recorded net cash outflows
from investing activities and net cash inflows from operating activities and financing activities as discussed in the comparative analysis below.
The following table presents the key information on our consolidated cash flows for the six months ended September 30, 2022 and 2023. As
discussed in Note 1 “Summary of accounting policies”, amounts for the six months ended September 30, 2022 and 2023 have been restated to correct
certain errors identified during the quarter ended March 31, 2024.

Billions of yen
Six months ended September 30
2022
2023
(Restated)(Restated)

Net cash provided by (used in) operating activities
Net income
Trading assets and private equity and debt investments
Trading liabilities
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase
Securities borrowed, net of securities loaned
Other net operating cash flow reconciling items
Net cash used in investing activities
Net cash outflows from time deposits
Net cash outflows from loans
Net cash inflows/(outflows) from non-trading debt securities
Other net investing cash outflows
Net cash provided by financing activities
Net cash inflows from long-term borrowings
Net cash inflows from short-term borrowings
Net cash inflows/(outflows) from deposits received at banks
Other net financing cash outflows
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period¥¥(612.0)17.1(1,297.7)
1,598.3(1,254.9)
270.7
54.5
(171.9)(5.4)(171.8)57.4(52.1)
871.6
553.5
228.4
223.4
(133.7)271.5
359.3
3,316.4
3,675.7

¥

¥

194.1
61.5
(604.4)(59.3)
627.5(166.4)335.2(332.9)(9.6)(283.9)(1.5)(37.9)
223.5
488.5
23.7
(145.4)(143.3)
199.7
284.4
3,820.9
4,105.3

See the consolidated statements of cash flows in our consolidated financial statements included within this annual report for more detailed
information.
For the six months ended September 30, 2023, our cash, cash equivalents, restricted cash and restricted cash equivalents increased by¥284.4 billion to ¥4,105.3 billion. There were net cash inflows of ¥223.5 billion from financing activities, primarily due to net cash inflows of¥488.5 billion by an increase in Net cash inflow from long-term borrowings. There were net cash outflows of ¥332.9 billion from investing activities,
primarily due to net cash outflows of ¥283.9 billion by an increase in Net cash outflows from loans. There were net cash inflows of ¥194.1 billion fromoperating activities, primarily due to net cash inflows of ¥627.5 billion from a decrease in Securities purchased under agreements to resell, net of
securities sold under agreements to repurchase, offset against net cash outflows of ¥604.4 billion from an increase in Trading assets and private equity
and debt investments.
For the six months ended September 30, 2022, our cash, cash equivalents, restricted cash and restricted cash equivalents increased by¥359.3 billion to ¥3,675.7 billion. There were net cash inflows of ¥871.6 billion from financing activities, primarily due to net cash inflows of¥553.5 billion by an increase in Net cash inflows from long-term borrowings. There were net cash outflows of ¥171.9 billion from investing activities,
primarily due to net cash outflows of ¥171.8 billion by an increase in Net cash outflows from loans. There were net cash outflows of ¥612.0 billion fromoperating activities, primarily due to net cash outflows of ¥1,297.7 billion from an increase in Trading assets and private equity and debt investments
and of ¥1,254.9 billion from an increase in Securities purchased under agreements to resell, net of securities sold under agreements to repurchase, offset
against net cash inflows of ¥1,598.3 billion from an increase in Trading liabilities.
29

Balance Sheet and Financial Leverage
Total assets as of September 30, 2023, were ¥54,815.3 billion, an increase of ¥7,043.5 billion compared with ¥47,771.8 billion as of March 31,
2023, primarily due to an increase in Securities purchased under agreements to resell. Total liabilities as of September 30, 2023, were ¥51,443.0 billion,
an increase of ¥6,895.4 billion compared with ¥44,547.7 billion as of March 31, 2023, primarily due to an increase in Securities sold under agreements
to repurchase. NHI shareholders’ equity as of September 30, 2023, was ¥3,291.4 billion, an increase of ¥142.9 billion compared with ¥3,148.6 billion asof March 31, 2023, primarily due to an increase in Accumulated other comprehensive income.
We seek to maintain sufficient capital at all times to withstand losses due to extreme market movements. The EMB is responsible for
implementing and enforcing capital policies. This includes the determination of our balance sheet size and required capital levels. We continuously
review our equity capital base to ensure that it can support the economic risk inherent in our business. There are also regulatory requirements forminimum capital of entities that operate in regulated securities or banking businesses.
As leverage ratios are commonly used by other financial institutions similar to us, we voluntarily provide a Leverage ratio and Adjusted leverage
ratio primarily for benchmarking purposes so that users of our annual report can compare our leverage against other financial institutions. Adjusted
leverage ratio is a non-GAAP financial measure that Nomura considers to be a useful supplemental measure of leverage.
The following table presents NHI shareholders’ equity, total assets, adjusted assets and leverage ratios as of March 31, 2023 and September 30,
2023.










NHI shareholders’ equity
Total assets
Adjusted assets(1)Leverage ratio(2)Adjusted leverage ratio(3)









(1)
(2)
(3)


September 30, 2023 

Billions of yen, except ratios
March 31, 2023

 

3,148.6 
47,771.8 
29,654.3 
15.2x 9.4x 

¥¥3,291.4
54,815.3
33,045.4
16.7x
10.0x

Represents total assets less Securities purchased under agreements to resell and Securities borrowed. Adjusted assets is a non-GAAP financial
measure.
Equals total assets divided by NHI shareholders’ equity.
Equals adjusted assets divided by NHI shareholders’ equity.










Total assets
Less:
Securities purchased under agreements to resell
Securities borrowed








Adjusted assets


September 30, 2023 

Billions of yen
March 31, 2023

¥





¥









 

47,771.8 13,834.5 
4,283.0 
29,654.3 

¥54,815.3
16,973.4
4,796.5













¥

33,045.4

Total assets increased by 14.7% reflecting primarily an increase in Securities purchased under agreements to resell. NHI shareholders’ equity
increased by 4.5% primarily due to an increase in Accumulated other comprehensive income. As a result, our leverage ratio rose from 15.2 times as ofMarch 31, 2023 to 16.7 times as of September 30, 2023.
Adjusted assets increased primarily due to an increase in Trading assets. As a result, our adjusted leverage ratio rose from 9.4 times as ofMarch 31, 2023 to 10.0 times as of September 30, 2023.


30



Capital Management
Capital Management Policy
We seek to enhance shareholder value and to capture growing business opportunities by maintaining sufficient levels of capital. We will continue
to review our levels of capital as appropriate, taking into consideration the economic risks inherent to operating our businesses, the regulatory
requirements, and maintaining our ratings necessary to operate businesses globally.
Dividends
We believe that raising corporate value over the long term and paying dividends is essential to rewarding shareholders. We will strive to pay
dividends using a consolidated pay-out ratio of at least 40 percent of each semi-annual consolidated earnings as a key indicator.
Dividend payments are determined taking into account a comprehensive range of factors such as the tightening of Basel regulations and otherchanges to the regulatory environment as well as the Company’s consolidated financial performance.
Dividends will in principle be paid on a semi-annual basis with record dates of September 30 and March 31.
Additionally we will aim for a total payout ratio, which includes dividends and share buybacks, of at least 50 percent.
With respect to retained earnings, in order to implement measures to adapt to regulatory changes and to increase shareholder value, we seek toefficiently invest in business areas where high profitability and growth may reasonably be expected, including the development and expansion of
infrastructure.
Dividends for the Fiscal Year
Based on our Capital Management Policy described above, we paid a dividend of ¥8 per share to shareholders of record as of September 30, 2023.
The following table sets forth the amounts of dividends per share paid by us in respect of the periods indicated:
Fiscal year ended or ending March 31,

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

2019
2020
2021
2022
2023
2024

¥

¥

¥

¥

¥ 6.00
20.00
35.00
22.00
17.00

—
—
—
—
—
—

3.00
15.00
20.00
8.00
5.00
8.00

—
—
—
—
—
—

3.00
5.00
15.00
14.00
12.00

Consolidated Regulatory Capital Requirements
The FSA established the “Guideline for Financial Conglomerates Supervision” (“Financial Conglomerates Guideline”) in June 2005 and set out
the rules on consolidated regulatory capital. We started monitoring our consolidated capital adequacy ratio in accordance with the Financial
Conglomerates Guideline from April 2005.
The Company has been assigned by the FSA as a Final Designated Parent Company who must calculate a consolidated capital adequacy ratio
according to the Capital Adequacy Notice on Final Designated Parent Company in April 2011. Since then, we have been calculating our consolidated
capital adequacy ratio according to the Capital Adequacy Notice on Final Designated Parent Company. In December 2011, we began to measure theconsolidated capital adequacy ratio in accordance with Basel 2.5, a major revision of the measurement method for market risk equivalents. Furthermore,from the end of March 2013, we have been measuring the consolidated capital adequacy ratio based on the content of Capital Adequacy Notice on Final
Designated Parent Company further revised to be in line with Basel III, which redefined capital items for the purpose of requiring higher quality ofcapital and expansion of the scope of credit risk-weighted assets calculation.
31

In accordance with Article 2 of the Capital Adequacy Notice on Final Designated Parent Company, our consolidated capital adequacy ratio iscurrently calculated based on the amounts of common equity Tier 1 capital, Tier 1 capital (sum of common equity Tier 1 capital and additional Tier 1
capital), total capital (sum of Tier 1 capital and Tier 2 capital), credit risk-weighted assets, market risk and operational risk. As of September 30, 2023,
our common equity Tier 1 capital ratio is 16.50%, Tier 1 capital ratio is 18.57% and consolidated capital adequacy ratio is 18.57% and we are incompliance with the requirement for each ratio set out in the Capital Adequacy Notice on Final Designated Parent Company etc. (required level
including applicable minimum consolidated capital buffers as of September 30, 2023 is 7.75% for the common equity Tier 1 capital ratio, 9.25% for the
Tier 1 capital ratio and 11.25% for the consolidated capital adequacy ratio).
In accordance with Article 2 of the “Notice of the Establishment of Standards that Indicate Soundness pertaining to Loss-absorbing andRecapitalization Capacity, Established as Criteria by which the Highest Designated Parent Company is to Judge the Soundness in the Management of
the Highest Designated Parent Company and its Subsidiary Corporations, etc., under Paragraph 1, Article 57-17 of the Financial Instruments andExchange Act” (the “TLAC Notification”), we have started calculating our external TLAC ratio on a risk-weighted assets basis from March 2021. As of
September 30, 2023, our external TLAC as a percentage of risk-weighted assets is 33.84% and we are in compliance with the requirement set out in the
TLAC Notification.
The following table presents the Company’s consolidated capital adequacy ratios, consolidated leverage ratio and External TLAC ratios as ofMarch 31, 2023 and September 30, 2023.

Billions of yen, except ratios
March 31, 2023
September 30, 2023
(restated)

Common equity Tier 1 capital
Tier 1 capital
Total capital
Risk-Weighted Assets
Credit risk-weighted assets
Market risk equivalent assets
Operational risk equivalent assets
Total risk-weighted assets¥¥

Consolidated Capital Adequacy Ratios
Common equity Tier 1 capital ratio
Tier 1 capital ratio
Consolidated capital adequacy ratio
Consolidated Leverage Ratio
External TLAC Ratios
Risk-weighted assets basis
Leverage ratio exposure measure basis

2,828.8
3,203.7
3,204.1
8,385.8
6,270.6
2,667.5
17,323.9¥¥

3,005.7
3,382.4
3,382.8
9,021.3
6,575.2
2,615.6
18,212.2

16.32%
18.49%
18.49%
5.63%

16.50%
18.57%
18.57%
5.18%

31.78%
10.63%

33.84%
10.34%

Since the end of March 2011, we have been calculating credit risk-weighted assets and operational risk equivalent assets by using the foundation
Internal Ratings-Based Approach and the Standardized Approach, respectively, with the approval of the FSA. Furthermore, market risk equivalent assets
are calculated using the Internal Models Approach.
We provide consolidated capital adequacy ratios not only to demonstrate that we are in compliance with the requirements set out in the Capital
Adequacy Notice on Final Designated Parent Company but also for benchmarking purposes so that users of this annual report can compare our capital
position against those of other financial groups to which Basel III is applied. Our management receives and reviews these capital ratios on a regularbasis.
32

Consolidated Leverage Ratio Requirements
In March 2019, the FSA set out requirements for the calculation and disclosure and minimum requirement of 3% of a consolidated leverage ratio,
and the publication of “Notice of the Establishment of Standards for Determining Whether the Adequacy of Leverage, the Supplementary Measure to
the Adequacy of Equity Capital of a Final Designated Parent Company and its Subsidiary Corporations, etc. is Appropriate Compared to the Assets Heldby the Final Designated Parent Company and its Subsidiary Corporations, etc., under Paragraph 1, Article 57-17 of the Financial Instruments andExchange Act” (2019 FSA Regulatory Notice No. 13; “Notice on Consolidated Leverage Ratio”), through amendments to revising “Specification of
items which a final designated parent company should disclose on documents to show the status of its sound management” (2010 FSA Regulatory
Notice No. 132; “Notice on Pillar 3 Disclosure”). In June 2020, the FSA published amendments to the Notice on Consolidated Leverage Ratio, in
coordination with the monetary policy of the Bank of Japan in response to the impact of the COVID-19 pandemic. Under this amendment, deposits with
the Bank of Japan have been excluded from the total exposure measure used to calculate the leverage ratio. We began measuring and disclosing its
consolidated leverage ratio at the end of March 2015 in accordance with these Notices. In addition, from the end of March 2019, the Company has beenmeasuring the consolidated leverage ratio in accordance with the Notice on Pillar 3 Disclosure, Notice on Consolidated Leverage Ratio and other related
Notices. As of September 30, 2023, our consolidated leverage ratio is 5.18%.
In accordance with Article 2 of the TLAC Notification we have started calculating our external TLAC ratio on a total exposure basis from March
2021. As of September 30, 2023, our external TLAC as a percentage of leverage ratio exposure measure is 10.34% and we are in compliance with therequirement set out in the TLAC Notification.
33

Regulatory changes which affect us
The Basel Committee has issued a series of announcements regarding a Basel III program designed to strengthen the regulatory capital framework
in light of weaknesses revealed by the financial crises. The following is a summary of the proposals which are most relevant to us.
On December 16, 2010, in an effort to promote a more resilient banking sector, the Basel Committee issued Basel III, that is, “Internationalframework for liquidity risk measurement, standards and monitoring” and “A global regulatory framework for more resilient banks and banking
systems”. They include raising the quality, consistency and transparency of the capital base; strengthening the risk coverage of the capital framework
such as the implementation of a credit value adjustment (“CVA”) charge for OTC derivative trades; introducing a leverage ratio requirement as asupplemental measure to the risk-based framework; introducing a series of measures to address concerns over the “procyclicality” of the current
framework; and introducing a liquidity standard including a 30-day liquidity coverage ratio as well as the net stable funding ratio to measure stability offinancing structure. These standards were implemented from 2013, which includes transitional treatment, (i.e. they are phased in gradually from 2013).
In addition, the Basel Committee has issued interim rules for the capitalization of bank exposures to central counterparties (“CCPs”) on July 25, 2012,
which came into effect in 2013 as part of Basel III. Moreover, in addition to Basel III leverage ratio framework under which we started the calculationand disclosure of consolidated leverage ratio as above, a series of final standards on the regulatory frameworks such as capital requirements for banks’equity investments in funds, the standardized approach for measuring counterparty credit risk exposures, capital requirements for bank exposures to
CCPs, supervisory framework for measuring and controlling large exposures, and revisions to the securitization framework, and revised framework formarket risk capital requirements have been published by the Basel Committee.
At the G-20 summit in November 2011, the Financial Stability Board (“FSB”) and the Basel Committee announced the list of global systemicallyimportant banks (“G-SIBs”) and the additional requirements to the G-SIBs including the recovery and resolution plan. The group of G-SIBs have been
updated annually and published by the FSB each November. Since November 2011, we have not been designated as a G-SIBs. On the other hand, the
FSB and the Basel Committee were asked to work on extending the framework for G-SIBs to domestic systemically important financial institutions(“D-SIBs”) and the Basel Committee developed and published a set of principles on the assessment methodology and the higher loss absorbency
requirement for D-SIBs. In December 2015, the FSA identified us as a D-SIB and required additional capital charge of 0.5% after March 2016, with
3-year transitional arrangement.
In November 2015, the FSB issued the final TLAC standard for G-SIBs. The TLAC standard has been designed so that failing G-SIBs will havesufficient loss-absorbing and recapitalization capacity available in resolution for authorities to implement an orderly resolution. In response to the FSB’s
publication of the TLAC standard, in April 2016, the FSA published its policy to develop the TLAC framework in Japan applicable to Japanese G-SIBs
and, in April 2018, revised such policy to apply the TLAC requirements in Japan not only to Japanese G-SIBs but also to Japanese D-SIBs that are
deemed (i) of particular need for a cross-border resolution arrangement and (ii) of particular systemic significance to Japanese financial system if they
fail. In the revised policy, the Japanese G-SIBs and Nomura (“TLAC Covered SIBs”) would be subject to the TLAC requirements in Japan. On March
2019, the FSA published the notices and revised the guidelines of TLAC regulations. Although Nomura is not identified as a G-SIB as of the date of thisannual report, the TLAC Covered SIBs, including Nomura, will be required to meet the TLAC requirement alongside the minimum regulatory
requirements set out in the Basel III framework. Specifically, Nomura will be required to meet a minimum TLAC requirement of holding TLAC in an
amount at least 16% of our consolidated risk-weighted assets as from March 31, 2021 and at least 18% as from March 31, 2024 as well as at least 6% of
the applicable Basel III leverage ratio denominator from March 31, 2021 and at least 6.75% from March 31, 2024 (which 6.75% will be increased,pursuant to recent amendment to the TLAC regulations in Japan, to 7.1% from April 1,2024).
Furthermore, according to the FSA’s revised policy published in April 2018, which is subject to change based on future international discussions,the preferred resolution strategy for the TLAC Covered SIBs is Single Point of Entry (“SPE”) resolution, in which resolution powers are applied to the
top of a group by a single national resolution authority (i.e. the FSA), although the actual measures to be taken will be determined on a case-by-casebasis considering the actual condition of the relevant the TLAC Covered SIBs in crisis.
To implement this SPE resolution strategy effectively, the FSA requires holding companies of the TLAC Covered SIBs (“Domestic Resolution
Entities”) to (i) meet the minimum external TLAC requirements and (ii) cause their material subsidiaries that are designated as systemically importantby the FSA, including but not limited to certain material sub-groups as provided in the FSB’s TLAC standard, to maintain a certain level of capital anddebt recognized by the FSA as having loss-absorbing and recapitalization capacity, or Internal TLAC.
34

In addition, the TLAC Covered SIBs’ Domestic Resolution Entities will be allowed to count the amount equivalent to 2.5% of their consolidated
risk-weighted assets from the implementation date of the TLAC requirements in Japan (March 31, 2021 for Nomura) and 3.5% of their consolidated
risk-weighted assets from 3 years after the implementation date (March 31, 2024 for Nomura) as our external TLAC, considering the Japanese Deposit
Insurance Fund Reserves.
It is likely that the FSA’s regulation and notice will be revised further to be in line with a series of rules and standards proposed by the BaselCommittee, FSB or International Organization of Securities Commissions.


35

Credit Ratings
We obtain credit ratings on our long-term and short-term debt from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings, Rating andInvestment Information, Inc. and Japan Credit Rating Agency.
There were no significant rating actions in the first half of the fiscal year ending March 2024.
As of November 17th, 2023, the credit ratings of the Company and NSC were as follows:
Nomura Holdings, Inc.

S&P Global Ratings
Moody’s Investors Service
Fitch Ratings
Rating and Investment Information, Inc.
Japan Credit Rating Agency, Ltd.
Nomura Securities Co. , Ltd.

S&P Global Ratings
Moody’s Investors Service
Fitch Ratings
Rating and Investment Information, Inc.
Japan Credit Rating Agency, Ltd.
36

Short-term Debt

Long-term Debt

A-2
—
F1
a-1
—

BBB+ (Stable)
Baa1 (Negative)
A- (Stable)
A (Stable)AA- (Stable)

Short-term Debt

Long-term Debt

A-2
P-2
F1
a-1
—

A- (Stable)
A3 (Negative)
A- (Stable)
A+ (Stable)AA- (Stable)

Off-Balance Sheet Arrangements
Off-balance sheet entities
In the normal course of business, we engage in a variety of off-balance sheet arrangements with off-balance sheet entities which may have an
impact on Nomura’s future financial position and performance.
Off-balance sheet arrangements with off-balance sheet entities include where Nomura has:•

an obligation under a guarantee contract;•a retained or contingent interest in assets transferred to an off-balance sheet entity or similar arrangement that serves to provide credit,
liquidity or market risk support to such entity;•

any obligation, including a contingent obligation, under a contract that would be accounted for as a derivative instrument; or•

any obligation, including a contingent obligation, arising out of a variable interest in an off-balance sheet entity that is held by, andmaterial to, us, where such entity provides financing, liquidity, market risk or credit risk support to, or engages in leasing, hedging or
research and development services with, us.

Off-balance sheet entities may take the form of a corporation, partnership, fund, trust or other legal vehicle which is designed to fulfill a limited,
specific purpose by its sponsor. We both create or sponsor these entities and also enter into arrangements with entities created or sponsored by others.
Our involvement with these entities includes structuring, underwriting, distributing and selling debt instruments and beneficial interests issued bythese entities, subject to prevailing market conditions. In connection with our securitization and equity derivative activities, we also act as a transferor of
financial assets to these entities, as well as, underwriter, distributor and seller of asset-repackaged financial instruments issued by these entities. We
retain, purchase and sell variable interests in SPEs in connection with our market-making, investing and structuring activities. Our other types ofoff-balance sheet arrangements include guarantee agreements and derivative contracts. Significant involvement is assessed based on all of ourarrangements with these entities, even if the probability of loss, as assessed at the balance sheet date, is remote.
For further information about transactions with VIEs, see Note 6 “Securitizations and Variable Interest Entities” in our interim consolidated
financial statements.
Contractual Obligations
Since March 31, 2023, there have been no other material changes outside our ordinary course of business in connection with our standby letters ofcredit and other guarantees, long-term borrowings and contractual interest payments, operating lease commitments, finance lease commitments,
purchase obligations, commitments to extend credit and commitments to invest in partnerships.
For further details on our commitments, contingencies and guarantees, see Note 14 “Commitments, contingencies and guarantees” in our interim
consolidated financial statements.
37

Quantitative and Qualitative Disclosures about Market, Credit and Other Risk
Overview of Risk Management
Business activities of Nomura Group are exposed to various risks such as market risk, credit risk, operational risk and other risks caused byexternal factors. Nomura Group has established a risk management framework to control, monitor and report those risks in a comprehensive manner inorder to maintain financial soundness and to sustain and enhance its enterprise value.
Risk Management
Nomura defines risks as (i) the potential erosion of Nomura’s capital base due to unexpected losses arising from risks to which its business
operations are exposed, such as market risk, credit risk, operational risk and model risk, (ii) liquidity risk, the potential lack of access to funds or higher
cost of funding than normal levels due to a deterioration in Nomura’s creditworthiness or deterioration in market conditions, and (iii) strategic risk, therisk to current or anticipated earning, capital, liquidity, enterprise value, or the Nomura Group’s reputation arising from adverse business decisions, poor
implementation of business decisions, or lack of responsiveness to change in the industry or external environment.
A fundamental principle established by Nomura is that all employees shall regard themselves as principals of risk management and appropriately
manage these risks. Nomura seeks to promote a culture of proactive risk management throughout all levels of the organization and to limit risks to theconfines of its risk appetite. The risk management framework that Nomura uses to manage these risks consists of its risk appetite, risk management
governance and oversight, the management of financial resources, the management of all risk classes, and processes to measure and control risks.
Furthermore, in response to the U.S. Prime Brokerage Event, we reviewed our risk management framework for considering improvements thereto. Eachof these key components is explained in further detail below.
As a part of the efforts to enhance the risk management governance, the Board Risk Committee (the “BRC”) was formally established on
October 29, 2021 to discuss important risks independently of the execution side within the high-level governance structure. The BRC assists the Boardof Directors (the “BoD”) in supervising such matters as (i) providing consent to Risk Appetite Statement, (ii) providing consent to the main design of therisk management framework, (iii) results of analysis and verification or future forecasts of risk environment, and (iv) supervision over execution state of
the overall risk management and medium- to long-term risk strategies for contributing to the sophistication of the Group’s risk management.
Nomura engages in the risk management through the Three Lines of Defense framework.
•First Line of Defense: All executives and employees of the front office for Financial Risk and all executives and employees for
Non-Financial Risk are primarily responsible for risk management and assume the consequences associated with business execution and toprovide evidence and justify that the risk arising from their business activities is in line with risk appetite.

•

Second Line of Defense: The department responsible for risk management supports and monitors management activities on the First Lineof Defense and reports to boards and the senior management. In addition, the Second Line independently evaluates risk management
governance established by the First Line.

•

Third Line of Defense: The Internal Audit function examines and evaluates the risk management from an independent standpoint, provides
advice for improvement, and reports the examination and evaluation are reported to the Audit Committee.



Risk Appetite
Nomura has determined the types and levels of risk that it will assume in pursuit of its strategic objectives and business plan and has articulated
this in its Risk Appetite Statement. This document is jointly submitted by the Chief Risk Officer (the “CRO”) and the Chief Financial Officer (the“CFO”) to the Executive Management Board (the “EMB”) for approval. It will then be further reviewed at the BRC through the authority to consent to
the relevant proposal raised by the executive side. The Risk Appetite Statement provides an aggregated view of risk and includes capital adequacy,liquidity, financial risk and non-financial risk. It is subject to regular monitoring and breach escalation as appropriate by the owner of the relevant risk
appetite statement.
Nomura’s Risk Appetite Statement is required to be reviewed at least annually by the EMB but it is reviewed on an ad hoc basis if necessary, andmust specifically be reviewed following any significant changes in Nomura’s strategy. Risk appetite underpins all additional aspects of Nomura’s risk
management framework.


38

Risk Management Governance and OversightCommittee GovernanceNomura has established a committee structure to facilitate effective business operations and management of Nomura’s risks. The formal
governance structure for risk management within Nomura is as follows:

Board of Directors
The BoD determines the policy for the execution of the business of Nomura and other matters prescribed in laws and regulations, supervises theexecution of Directors’ and Executive Officers’ duties and has the authority to adopt, alter or abolish the regulations of the EMB.
Board Risk Committee
The BRC provides specialized oversight to deepen the oversight functions of the BoD. To ensure a high degree of independence, the BRC ischaired by an outside director. The BRC contributes to more sophisticated Group risk management mainly in the areas outlined below:•Amendment and abolition of the Risk Appetite Statement•

Change in risk management framework•

Results of analysis and verification or future forecasts of risk environment•

Execution state of the overall risk management and medium- to long-term risk strategies

Executive Management Board
The EMB deliberates on and determines management strategy, the allocation of management resources and important management matters of
Nomura, and seeks to increase shareholder value by promoting effective use of management resources and unified decision-making with regard to the
execution of business. The EMB delegates responsibility for deliberation of matters concerning risk management to the GRMC. Key responsibilities of
the EMB include the following:•Resource Allocation—At the beginning of each financial year, the EMB determines the allocation of management resources and financial
resources such as risk-weighted asset and unsecured funding to business units and establishes usage limits for these resources;•

Business Plan—At the beginning of each financial year, the EMB approves the business plan and budget of Nomura. Introduction ofsignificant new businesses, changes to business plans, the budget and the allocation of management resources during the year are also
approved by the EMB; and•Reporting—The EMB reports the status of its deliberations to the BoD.







39

Group Risk Management Committee
Upon delegation from the EMB, the GRMC deliberates on or determines important matters concerning integrated risk management of Nomura toassure the sound and effective management of its businesses. The GRMC establishes a framework of integrated risk management consistent with
Nomura’s risk appetite. The GRMC supervises Nomura’s risk management by establishing and operating its risk management framework. The GRMC
reports the status of key risk management issues and any other matters deemed necessary by the committee chairman to the BoD and the EMB. In
addition, the GRMC, upon delegation from the EMB, has established the Risk Management Policy, describing Nomura’s overall risk management
framework including the fundamental risk management principles followed by Nomura.
Group Risk Review Committee (the “GRRC”)
Upon delegation from the GRMC, the GRRC deliberates on or determines matters concerning the enterprise risk management of Nomura Group
from a practical point of view and thereby assuring the sound and effective management of the businesses.
Group Reputational Risk Management Committee (the “GRRMC”)
Upon delegation from the GRMC, the GRRMC deliberates on or making necessary decisions on the matters which require consideration from theperspectives of Nomura Group’s reputation.
40

Asset Liability Committee (the “ALCO”)
Upon delegation from the EMB and the GRMC, the ALCO deliberates on, based on Nomura’s risk appetite determined by the EMB, balance sheet
management, financial resource allocation, liquidity management and related matters. The ALCO reports to the GRMC the status of discussions at its
meetings and any other matters as deemed necessary by the committee chairman.
Global Transaction Committee (the “GTC”)
Upon delegation from the GRRC, the GTC deliberates on or determines individual transactions in line with Nomura’s risk appetite determined by
the EMB and thereby seeks to assure the sound and effective management of Nomura’s businesses.
Electronic and Algorithmic Trading Risk Oversight Committee (the “EATROC”)
Upon delegation from the GRRC, the EATROC shall be responsible for all matters relating to the development and implementation of agovernance, risk and control management framework for Electronic and Algorithmic Trading Activity within the Nomura’s Wholesale Division.
Other Committees
Model related committees including the Global Risk Analytics Committee and the Model Risk Analytics Committee deliberate on or determine
matters concerning the development, management and strategy of models upon delegation from the GRRC, respectively. The primary responsibility ofthese committees is to govern and provide oversight of model management, including the approval of new models and significant model changes. Eachcommittee reports significant matters and material decisions taken to the GRRC on a regular basis. The Global Collateral Steering Committee
deliberates on or determines Nomura’s collateral risk management, including concentrations, liquidity, collateral re-use, limits and stress tests, provides
direction on Nomura’s collateral strategy and ensures compliance with regulatory collateral requirements upon delegation from the CRO.
Chief Risk Officer
The CRO is responsible for setting the overall strategy and direction of the Risk Management Division. The CRO is responsible for supervising
the Risk Management Division and maintaining the effectiveness of the risk management framework independently from the business units within
Nomura. The CRO regularly reports on the status of Nomura’s risk management to the GRMC, and reports to and seeks the approval of the GRMC on
measures required for risk management.
Chief Financial Officer
The CFO is responsible for overall financial strategy of Nomura, and has operational authority and responsibility over Nomura’s liquidity
management based on decisions made by the EMB.
Other Responsible Officers
Officers, who oversee the functions in charge of Operational Risks in accordance with the Risk Management Policy of Three Lines of Defense, areresponsible for formulating the appropriate management framework and taking the lead in designing Risk Appetites for Operational Risks they cover.
They also cooperate with CRO who is responsible for monitoring and maintaining of the effectiveness of the Risk Appetites.
The Chief Compliance Officer (“CCO”) is responsible for taking the lead in the coordination for formulating the appropriate management
framework and designing Risk Appetite for Reputational Risk, with the cooperation of CRO. The CCO also cooperates with CRO who is responsible formonitoring and maintaining of the effectiveness of the Risk Appetite.
Risk Policy Framework
Policies and procedures are essential tools of governance and define principles, rules and standards, and the specific processes that must be
adhered to in order to effectively manage risk at Nomura. Risk management operations are designed to function in accordance with these policies andprocedures.


41

Monitoring, Reporting and Data Integrity
Development, consolidation, monitoring and reporting of risk management information (“MI”) are fundamental to the appropriate management of
risk. The aim of all risk MI is to provide a basis for sound decision-making, action and escalation as required. The Risk Management Division and the
Finance Division are responsible for producing regular risk MI, which reflects the position of Nomura relative to stated risk appetite. Risk MI includes
information from across the risk classes defined in the risk management framework and reflect the use of the various risk tools used to identify andassess those risks. These divisions are responsible for implementing appropriate controls over data integrity for risk MI.
Risk Management Enhancement Program (“RMEP”)
U.S. Prime Brokerage Event
In March 2021, following the default of one of our prime brokerage clients in the United States on its obligations to post additional margin in
respect of its positions with us, we issued a closeout notice to the client following which we began to wind down the positions held by us and liquidate
hedges held against those positions. Due to fluctuations in the market values of the hedges against the positions and our expectation that we will not beable to recover those losses from the client, we recognized significant losses in the fourth quarter and fiscal year ended March 31, 2021, and recognized
additional losses in the first quarter and fiscal year ended March 31, 2022.
Our transactions with the client comprised (i) total return swaps (the “TRS transactions”), which are transactions that allow the client to obtain
synthetic (i.e., derivative) long or short exposure to underlying individual equities or indices, as well as (ii) providing financing against a portfolio ofsecurities in the client’s cash prime brokerage account. To manage credit risk in relation to prime brokerage clients, we require that prime brokerageclients deposit collateral (referred to as “margin”) in respect of their positions with us in accordance with the margin ratios applied to them. Thesemargin ratios are determined based on the results of an internal risk assessment of the specific client and the composition of the client’s positions andmay require that they post additional margin based on the effect of market movements on these ratios. TRS transactions are hedged from a market risk
perspective by holding long or short positions in individual equities or indices and through derivative transactions, depending on the positions taken by
the relevant client. For long equity positions taken by the client, we hold cash equity long positions in the underlying equities as well as derivativetransactions. For short equity positions taken by the client, we hold cash equity short positions and derivative transactions. Lending transactions against
cash prime brokerage portfolios are generally overcollateralized, and therefore not separately hedged, and we may enter into separate hedges if the valueof the collateral falls.
Between January and March 2021, transaction amounts and volumes with the client increased significantly as a result of changes in market prices
as well as new positions entered into by the client. However, in March 2021, the market value of certain securities in which the client held a large
synthetic position experienced a sharp decline, after which we requested that the client deposit additional margin with us pursuant to our contractual
agreements with the client. The client defaulted on its obligation to post additional margin, and we issued a closeout notice to the client. It became clearthat the client had similar large positions with other financial institutions, and that the client had also defaulted on margin calls with these financial
institutions. Although we endeavored to take a disciplined approach to unwind the positions and liquidate the hedges for the TRS transactions, taking
into account both market impact and our own trading losses, due to the significant volume of positions being closed by both us and the other affectedfinancial institutions and the effect on market prices, we recognized ¥204.2 billion of losses in earnings reported within Net gain (loss) on trading in the
fourth quarter and fiscal year ended March 31, 2021. We also recognized additional provisions for current expected credit losses of ¥41.6 billion inearnings reported within other expenses in the fourth quarter and the fiscal year ended March 31, 2021 against loans extended to the client collateralized
by a cash portfolio of securities, reflecting the reduced likelihood of recovery on these lending transactions. All of the positions with the client wereclosed out and hedges liquidated by May 17, 2021, as a result of which we recognized losses of approximately ¥65.4 billion in the first quarter and thefiscal year ended March 31, 2022, of which ¥56.1 billion booked in Equities revenues as trading loss and ¥9.3 billion booked as loan loss provision in
expenses.


42

RMEP Overview
Following this incident, we conducted a comprehensive review of our risk management framework and considered a broad range of measures tofurther strengthen our risk management.
As an important measure of risk management enhancement, we established the Board Risk Committee ( “BRC”) to provide specialized oversightto deepen the oversight functions of the Board of Directors. At the same time, the existing committee to deliberate risk management matters on theexecutive side was partially reorganized, from the GIRMC to the GRMC, in order to effectively coordinate with the BRC on the supervisory side. For
details on the BRC and the GRMC, see ‘Risk Management Governance and Oversight’.
In addition, the Steering Committee for Enhancement of Risk Management (“Steering Committee”), which was chaired by Group CEO, wasestablished in 2021 to promote the implementation of measures to enhance risk management across the group. Under the leadership of the Steering
Committee, detailed measures to enhance risk management have been categorized into four areas: business strategy, oversight, risk management, andrisk culture. In August 2023, the Steering Committee was integrated into the GRMC as most of the enhancement measures have been steadily achieved.
The RMEP key achievements are as follows.
Business Strategy
We clarified our Global Markets business strategy and conducted regular reviews of the business portfolio. We also take the measures to maintainconsistency between the risk profile, and other areas such as the firm’s strategic direction, risk appetite and allocation of resources.
Oversight
In order to build a more robust, global cross-border governance framework, we are taking measures related to the cross-border booking model andcontrols at local entities. We also set up functions which controls Financial and Non-Financial risk management in Wholesale Front Office. Through thisinitiative, we have built the framework to strengthen critical first-line risk management functions and enhance oversight of complex business activities
carried out globally. In addition, we have introduced globally unified performance management for senior management in the Wholesale Division tobetter align individual compensation with our medium- and long-term strategic initiatives and Risk and Conduct related performance.
Risk Management
We have redesigned financial risk appetite to more explicitly describe the types and levels of risk that we accept in order to achieve the objectivesof our management strategy and business plan and appetites are now expressed in more specific quantitative metrics. In addition, we reviewed ourcommittees to strengthen the governance of portfolio risk management and transaction approvals. Further, in order to enhance the understanding andembeddedness of the roles and responsibilities related to risk management in the three lines of defense model, we clearly documented these roles andresponsibilities at the group level and provided related training.
We are also enhancing various methods for measuring risks and exposures and are comprehensively reviewing risks based on multiple risk
metrics, including newly developed metrics. Moreover, in order to manage risks appropriately, according to the size and complexity of the business, wehave increased staff within the risk control function of the first line, the risk management function of the second line, and Internal Audit, which is thethird line.
Risk Culture
As a firm that emphasizes the cultivation of a corporate culture, including a risk culture, we regularly incorporate our attitude into our various
plans and publications and continue to communicate it both internally and externally. For example, we revised Nomura Group Code of Conduct inMarch 2022 to include a new section on “Managing risks appropriately.” In addition to further enhancing the understanding and embeddedness of risk
culture through discussion-based workshops and other activities, we have developed a framework for measuring embeddedness over time by adding
questions related to risk culture to the Nomura Group Employee Survey. Furthermore, we work to continuously foster our risk culture by incorporatingrisk culture elements into existing frameworks such as those related to hiring and performance reviews.
43

Management of Financial Resources
Nomura has established a framework for management of financial resources in order to adequately manage utilization of these resources. The
EMB allocates financial resources to business units at the beginning of each financial year. These allocations are used to set revenue forecasts for eachbusiness units. Key components are set out below:
Risk-weighted assets
A key component used in the calculation of our consolidated capital adequacy ratios is risk-weighted assets. The EMB determines the risk appetite
for our consolidated Tier 1 capital ratio on an annual basis and sets the limits for the usage of risk-weighted assets by each division and by additional
lower levels of the division. In addition the EMB determines the risk appetite for the level of exposures under the leverage ratio framework which is a
non-risk based measure to supplement risk-weighted assets. See Item 4.B. “Business Overview—Regulatory Capital Rules” of our annual report on
Form 20-F for the fiscal year ended March 31, 2023, and “Consolidated Regulatory Capital Requirements” and “Consolidated Leverage Ratio
Requirements” in this annual report for further information on our consolidated capital adequacy ratios and risk-weighted assets.
Available Funds
The CFO decides the maximum amount of available funds, provided without posting of any collateral, for allocation within Nomura and the EMB
approves the allocation of the funds to each business division. Global Treasury monitors the usage by businesses and reports to the EMB.


44

Risk Category and Definition
Nomura categories and defines risks as follows and has established departments or units to manage each risk type.


Definition

Risk Category

Financial Risk

Market risk

Risk of loss arising from fluctuations in values of financial assets or debts (including off-balance sheet items) due tofluctuations in market risk factors (interest rates, foreign exchange rates, prices of securities and others).

Credit risk

Risk of loss arising from an obligor’s default, insolvency or administrative proceeding which results in the obligor’s failure
to meet its contractual obligations in accordance with agreed terms. It is also the risk of loss arising through a credit
valuation adjustment (the “CVA”) associated with deterioration in the creditworthiness of a counterparty.

Model risk

Risk of financial loss, incorrect decision making, or damage to the firm’s credibility arising from model errors or incorrect
or inappropriate model application.

Non-financial Risk

Operational risk

Risk of financial loss or non-financial impact arising from inadequate or failed internal processes, people and systems, orfrom external events. Operational risk includes in its definition Compliance, Legal, IT and Cyber Security, Fraud, Third
Party and other non-financial risks.

Reputational risk

Possible damage to Nomura’s reputation and associated risk to earnings, capital or liquidity arising from any association,action or inaction which could be perceived by stakeholders to be inappropriate, unethical or inconsistent with Nomura
Group’s values and corporate philosophy.

Liquidity risk

Liquidity risk

Risk of loss arising from difficulty in securing the necessary funding or from a significantly higher cost of funding thannormal levels due to deterioration of the Nomura Group’s creditworthiness or deterioration in market conditions.

Other Risks

ESG: Environmental,
Social andGovernance

ESG is a collective term for Environmental (E), Social (S) and Governance (G) factors. “Environmental” includes issues
related to impacts on the natural environment, including climate change. “Social” includes interactions with stakeholders
and communities, for example the approach to human rights, workplace related issues and engagement on social issues.
Governance includes issues related to corporate governance, corporate behaviour and the approach to transparent reporting.

Strategic risk

Risk to current or anticipated earning, capital, liquidity, enterprise value, or the Nomura Group’s reputation arising fromadverse business decisions, poor implementation of business decisions, or lack of responsiveness to change in the industry
or external environment.

Market Risk Management
Market risk is the risk of loss arising from fluctuations in values of financial assets and liabilities (including off-balance sheet items) due tofluctuations in market risk factors (interest rates, foreign exchange rates, prices of securities and others).
Market Risk Management Process
Effective management of market risk requires the ability to analyze a complex and evolving portfolio in a constantly changing global market
environment, identify problematic trends and ensure that appropriate action is taken in a timely manner.
Nomura uses a variety of statistical risk measurement tools to assess and monitor market risk on an ongoing basis, including, but not limited to,
Value at Risk (“VaR”), Stressed VaR (“SVaR”) and Incremental Risk Charge. In addition, Nomura uses sensitivity analysis and stress testing to measure
and analyze its market risk. Sensitivities are measures used to show the potential changes to a portfolio due to standard moves in market risk factors.
They are specific to each asset class and cannot usually be aggregated across risk factors. Stress testing enables the analysis of portfolio risks or tailrisks, including non-linear behaviors and can be aggregated across risk factors at any level of the group hierarchy, from group level to business division,
units or desk levels. Market risk is monitored against a set of approved limits, with daily reports and other management information provided to thebusiness units and senior management.
45

Value at Risk
VaR is a measure of the potential loss due to adverse movements of market factors, such as equity prices, interest rates, credit, foreign exchange
rates, and commodities with associated volatilities and correlations.
VaR Methodology Assumptions
Nomura uses a single VaR model which has been implemented globally in order to determine the total trading VaR. A historical simulation is
implemented, where historical market moves over a two-year window are applied to current exposure in order to construct a profit and loss distribution.
Potential losses can be estimated at required confidence levels or probabilities. For internal risk management purposes, VaR is calculated across Nomura
using a One-day time horizon; this data is presented below. A scenario weighting scheme is employed to ensure that the VaR model responds tochanging market volatility. For regulatory reporting purposes, Nomura uses a Ten-day time horizon, calculated using actual Ten-day historical market
moves and employ an equal weight scheme to ensure VaR is not overly sensitive to changing market volatility. To complement VaR under Basel 2.5
regulations, Nomura also computes SVaR, which samples from a one-year window during a period of financial stress. The SVaR window is regularly
calibrated and observations are equally weighted.
Nomura’s VaR model uses exact time series for each individual risk factor. However, if good quality data is not available, a ‘proxy logic’ maps the
exposure to an appropriate time series. The level of proxying taking place is carefully monitored through internal risk management processes and there
is a continual effort to source new time series to use in the VaR calculation.
VaR Backtesting
The performance of Nomura’s VaR model is closely monitored to help ensure that it remains fit for purpose. The main approach for validating
VaR is to compare actual One-day trading losses with the corresponding VaR estimate. Nomura’s VaR model is backtested at different hierarchy levels.
Backtesting results are reviewed on a monthly basis by Nomura’s Risk Management Division. No trading losses exceeded the 99% VaR estimate (thecurrently required regulatory backtesting level) at the Nomura Group level for the six months ended September 30, 2023.
Limitations and Advantages of VaRVaR aggregates risks from different asset classes in a transparent and intuitive way. However, there are limitations. VaR is a backward-looking
measure: it implicitly assumes that distributions and correlations of recent factor moves are adequate to represent moves in the near future. VaR isappropriate for liquid markets and is not appropriate for risk factors that exhibit sudden jumps. Therefore it may understate the impact of severe events.
Given these limitations, Nomura uses VaR only as one component of a diverse market risk management process.


46

VaR metrics: 95% Confidence Interval
One-day VaR data using the confidence level of 95% for the six months ended September 30, 2023 and the fiscal year ended March 31, 2023 arepresented below.
The following graph shows the daily VaR over the last six quarters for substantially all of Nomura’s trading positions:

The following tables show the VaR as of each of the dates indicated for substantially all of Nomura’s trading positions:
Billions of yen
As ofMar. 31,2023

EquityInterest rate
Foreign exchange
Subtotal
Less: Diversification Benefit
VaR

¥

¥

3.3
4.7
1.4
9.4
(3.2)
6.2

Sep. 30,
2023

¥

¥

3.0
3.5
1.7
8.2
(2.7)
5.5

Billions of yen
For the twelve
For the six
months ended
months ended
Mar. 31,
Sep. 30,
2023
2023

Maximum daily VaR(1)Average daily VaR(1)Minimum daily VaR(1)

¥



(1)

6.8
4.8
2.7

¥

6.8
5.6
4.6

Represents the maximum, average and minimum VaR based on all daily calculations for the twelve months ended March 31, 2023 and for the six
months ended September 30, 2023.



47

Stress Testing
Nomura conducts market risk stress testing since VaR and sensitivity analysis have limited ability to capture all portfolio risks or tail risks. Stresstesting for market risk is conducted regularly, using various scenarios based upon features of trading strategies. Nomura conducts stress testing not onlyat the desk level, but also at the Nomura Group level with a set of common global scenarios in order to reflect the impact of market fluctuations on theentire Nomura Group.
Non-Trading Risk
A major market risk in Nomura’s non-trading portfolio relates to equity investments held for operating purposes and on a long-term basis. Equity
investments held for operating purposes are minority stakes in the equity securities of unaffiliated Japanese financial institutions and corporations heldin order to promote existing and potential business relationships. This non-trading portfolio is exposed mainly to volatility in the Japanese stock market.
One method that can estimate the market risk in this portfolio is to analyze market sensitivity based on changes in the TOPIX, which is a leading index
of prices of stocks on the Tokyo Stock Exchange.
Nomura uses regression analysis covering the previous 90 days which tracks and compares fluctuations in the TOPIX and the fair value of
Nomura’s equity investments held for operating purposes, which allows to determine a correlation factor. Based on this analysis for each 10% change in
the TOPIX, the fair value of Nomura’s operating equity investments held for operating purposes can be expected to change by ¥6,871 million at the endof March 2023 and ¥6,892 million at the end of September 2023. The TOPIX closed at 2,003.50 points at the end of March 2023 and at 2,323.39 points
at the end of September 2023. This simulation analyzes data for the entire portfolio of equity investments held for operating purposes at Nomura andtherefore actual results may differ from Nomura’s expectations because of price fluctuations of individual equities.
Credit Risk Management
Credit risk is the risk of loss arising from an obligor’s default, insolvency or administrative proceeding which results in the obligor’s failure tomeet its contractual obligations in accordance with agreed terms. This includes both on and off-balance sheet exposures. It is also the risk of loss arisingthrough a CVA associated with deterioration in the creditworthiness of a counterparty. Nomura manages credit risk on a global basis and on an
individual Nomura legal entity basis.
Credit Risk Management Framework
The measurement, monitoring and management of credit risk at Nomura are governed by a set of global policies and procedures. Credit Risk
Management (“CRM”), a global function within the Risk Management Division, is responsible for the implementation and maintenance of these policies
and procedures. These policies are authorized by the GRMC and/or Global Risk Strategic Committee, prescribe the basic principles of credit risk
management and set delegated authority, which enables CRM personnel to set credit limits.
Credit risk is managed by CRM together with various global and regional risk committees. This helps to ensure transparency of material credit
risks and compliance with established credit limits, the approval of material extensions of credit and the escalation of risk concentrations to appropriatesenior management.
48

Credit Risk Management Process
CRM operates as a credit risk control function within the Risk Management Division, reporting to the CRO. The process for managing credit risk
at Nomura includes:
•

Evaluation of likelihood that a counterparty defaults on its payments and obligations;•

Assignment of internal ratings to all active counterparties;•

Approval of extensions of credit and establishment of credit limits;•

Measurement, monitoring and management of Nomura’s current and potential future credit exposures;•

Setting credit terms in legal documentation; and•Use of appropriate credit risk mitigants including netting, collateral and hedging.







The scope of credit risk management includes counterparty trading and various debt or equity instruments including loans, private equity
investments, fund investments, investment securities and any other as deemed necessary from a credit risk management perspective.
The evaluation of counterparties’ creditworthiness involves a thorough due diligence and analysis of the business environments in which they
operate, their competitive positions, management and financial strength and flexibility. Credit analysts also take into account the corporate structure andany explicit or implicit credit support. CRM evaluates credit risk not only by counterparty, but also by counterparty group.
Following the credit analysis, CRM estimates the probability of default of a given counterparty or obligor through an alphanumeric ratings scale
similar to that used by rating agencies and a corresponding numeric scale. Credit analysts are responsible for assigning and maintaining the internalratings, ensuring that each rating is reviewed and approved at least annually.
Nomura’s internal rating system employs a range of ratings models to achieve global consistency and accuracy. These models are developed andmaintained by the Risk Methodology Group. Internal ratings represent a critical component of Nomura’s approach to managing counterparty credit risk.
They are frequently used as key factors in:•Establishing the amount of counterparty credit risk that Nomura is willing to take to an individual counterparty or counterparty group(setting of credit limits);•

Determining the level of delegated authority for setting credit limits (including tenor);•

The frequency of credit reviews (renewal of credit limits);•

Reporting counterparty credit risk to senior management within Nomura; and•Reporting counterparty credit risk to stakeholders outside of Nomura.






The Credit Risk Control Unit (“CRCU”) is a function within the Risk Model Validation Group which is independent of CRM. It seeks to ensurethat Nomura’s internal rating system is properly reviewed and validated, and that breaks or issues are reported to senior management for timely
resolution. The unit is responsible for ensuring that the system remains accurate and predictive of risk and provides periodic reporting on the system tosenior management.
For regulatory capital calculation purposes, Nomura has been applying the Foundation Internal Rating Based Approach in calculating credit riskweighted assets since the end of March 2011. The Standardized Approach is applied to certain business units or asset types, which are considered
immaterial to the calculation of credit risk-weighted assets.
Internal ratings are mapped to the probabilities of default (“PD”) which in turn are used for calculating credit risk-weighted assets. PDs are
estimated annually by the Risk Methodology Group and validated by the CRCU through testing of conservativeness and backtesting of PDs used in
calculations.


49

Credit Limits and Risk Measures
Internal ratings form an integral part in the assignment of credit limits to counterparties. Nomura’s credit limit framework is designed to ensurethat Nomura takes appropriate credit risk in a manner that is consistent with its overall risk appetite. Global Credit policies define the delegated authority
matrices that establish the maximum aggregated limit amounts and tenors that may be set for any single counterparty group based on their internalrating.
Nomura’s main type of counterparty credit risk exposures arise from derivatives transactions or securities financing transactions. Credit exposuresagainst counterparties are managed by means of setting credit limits based upon credit analysis of individual counterparty. Credit risk is managed daily
through the monitoring of credit exposure against approved credit limits and the ongoing monitoring of the creditworthiness of Nomura’s counterparties.
Changes in circumstances that alter Nomura’s risk appetite for any particular counterparty, sector, industry or country are reflected in changes to theinternal rating and credit limit as appropriate.
Nomura’s global credit risk management systems record credit limits and capture credit exposures to Nomura’s counterparties allowing CRM tomeasure, monitor and manage utilization of credit limits, ensure appropriate reporting and escalation of limit breaches.
For derivatives and securities financing transactions, Nomura measures credit risk primarily by way of a Monte Carlo-based simulation model that
determines a Potential Exposure profile at a specified confidence level. The exposure calculation model used for counterparty credit risk management
has also been used for the Internal Model Method based exposure calculation for regulatory capital reporting purposes since the end of December 2012.
Loans and lending commitments are measured and monitored on both a funded and unfunded basis.
Wrong Way Risk
Wrong Way Risk (“WWR”) occurs when exposure to a counterparty is highly correlated with the deterioration of creditworthiness of thatcounterparty. Nomura has established global policies that govern the management of WWR exposures. Stress testing is used to support the assessment of
WWR embedded within existing portfolios and adjustments are made to credit exposures and regulatory capital, as appropriate.
Stress Testing
Stress Testing is an integral part of Nomura’s management of credit risk. Regular stress tests are used to support the assessment of credit risks bycounterparties, sectors and regions. The stress tests include potential concentrations that are highlighted as a result of applying shocks to risk factors,
probabilities of default or rating migrations.
Risk Mitigation
Nomura utilizes financial instruments, agreements and practices to assist in the management of credit risk. Nomura enters into legal agreements,
such as the International Swap and Derivatives Association, Inc. agreements or equivalent (referred to as “Master Netting Agreements”), with many of
its counterparties. Master Netting Agreements allow netting of receivables and payables and reduce losses potentially incurred as a result of acounterparty default. Further reduction in credit risk is achieved through entering into collateral agreements that allow Nomura to obtain collateral fromcounterparties either upfront or contingent on exposure levels, changes in credit rating or other factors.
50Credit Risk to Counterparties in Derivatives Transaction
The credit exposures arising from our trading-related derivatives as of March 31, 2023 are summarized in the table below, showing the positive
fair value of derivative assets by counterparty credit rating and by remaining contractual maturity. The credit ratings are internally determined by
Nomura’s CRM.


Billions of yen
Credit Rating

AAA
AA
A
BBB
BB and lower
Other(2)Sub-total
ListedTotal

Less than
1 yearYears to Maturity
1 to 33 to 55 to 7
years
years
years

More than
7 years

Cross-Maturity
Netting(1)Total
Fair Value(a)

Collateralobtained(b)

Replacementcost(3)(a)-(b)

¥

¥

¥

¥

¥

¥

¥

41
260
425
193
68
37
¥ 1,024435¥ 1,459

38
362
437
123
135
103
¥1,19863¥1,261

¥

3
224
233
79
26
82
¥647
1
¥648

¥

4
55
149
51
24
101
¥384
—
¥384

50
626
808
342
41
723
¥ 2,590—¥ 2,590¥¥(107)(1,212)(1,678)(395)(217)(1,121)(4,730)(192)(4,922)

29
315
374
393
77
(75)
¥ 1,113307¥ 1,420

2
47
101
134
384
103
¥ 771
230
¥ 1,001

¥
¥

27
268
273
259
—
—
827
77
904


(1)

(2)
(3)

Represents netting of derivative liabilities against derivatives assets entered into with the same counterparty across different maturity bands.
Derivative assets and derivative liabilities with the same counterparty in the same maturity band are net within the relevant maturity band. Cashcollateral netting against net derivative assets in accordance with ASC 210-20 “Balance Sheet—Offsetting” and ASC 815 “Derivatives andHedging” is also included.
“Other” comprises unrated counterparties and certain portfolio level valuation adjustments not allocated to specific counterparties.
Zero balances represent instances where total collateral received is in excess of the total fair value; therefore, Nomura’s credit exposure is zero.



51

Country Risk
At Nomura, country risk is defined as the risk of loss arising from country-specific events (such as political, economic, legal and other events) that
affect counterparties and/or issuers within that country, causing those counterparties and/or issuers to be unable to meet financial obligations. Nomura’s
country risk framework acts as a complement to other risk management areas and encompasses a number of tools including, but not limited to, country
limits, which restrict credit exposure concentration to any given country. Other tools to manage country risk include country ratings as well as country
risk policies and procedures that describe responsibilities and delegation for decision-making.
Nomura’s credit portfolio remains well-diversified by country and concentrated towards highly-rated countries. The breakdown of top 10 country
exposures is as follows:Billions of yen(As of September 30, 2023)

Top 10 Country Exposures(1)United States
Japan
United Kingdom
Singapore
South Korea
FranceCanadaIndia
Luxembourg
Switzerland

6,386
3,265
1,095
379
227
227
200
194
190
170



(1)

The table represents the Top 10 country exposures as of September 30, 2023 based on country of risk, combining counterparty and inventory
exposures:
Counterparty exposures include cash and cash equivalents held at banks; the outstanding default fund and initial margin balances posted
by Nomura to central clearing counterparties as legally required under its direct and affiliate clearing memberships; the aggregate
marked-to-market exposure by counterparty of derivative transactions and securities financing transactions (net of collateral where thecollateral is held under a legally enforceable margin agreement); and the fair value of total commitment amount less any applicablereserves.
Inventory exposures are the market value of debt and equity securities, and equity and credit derivatives, using the net of long versus shortpositions.

52

Operational Risk Management
Operational risk is the risk of financial loss, or non-financial impacts such as violations of laws and regulations or deterioration of the reputationof Nomura, resulting from inadequate or failed internal processes, people, and systems or from external events. Operational risk includes in its definition
Compliance, Legal, IT, and Cyber Security, Fraud, Third Party and other non-financial risks. It excludes strategic risk (the risk of loss as a result of poor
strategic business decisions), and reputational risk, however, some operational risks can lead to reputational issues and as such operational andreputational risks may be closely linked.
Operational Risk Management Framework
An Operational Risk Management Framework has been established in order to allow Nomura to identify, assess, manage, monitor and report on
operational risk. The GRMC, with delegated authority from the EMB has formal oversight over the management of operational risk. This framework is
set out below.
Foundation of the risk management framework•

Policy framework: Sets standards for managing operational risk and details how to monitor adherence to these standards.

•

Training and awareness: Action taken by the Operational Risk Management (“ORM”) to improve business understanding of operational
risk.



Key risk management activities•

Event Reporting: This process is used to identify and report any event which resulted in or had the potential to result in a loss or gain orother impact associated with inadequate or failed internal processes, people and systems, or from external events.

•

Risk and Control Self-Assessment (the “RCSA”): This process is used to identify the inherent risks the business faces, the key controls
associated with those risks and relevant actions to mitigate the residual risks. Global ORM are responsible for developing the RCSA
process and supporting the business in its implementation.

•

Key Risk Indicators (the “KRI”): KRIs are metrics used to monitor the business’ exposure to operational risk and trigger appropriate
responses as thresholds are breached.

•

Scenario Analysis: The process used to assess and quantify potential high impact, low likelihood operational risk events. During theprocess actions may be identified to enhance the control environment.







Outputs from the risk management activities
•

Analysis and reporting: A key aspect of ORM’s role is to analyze, report, and challenge operational risk information provided by business
units, and work with business units to develop action plans to mitigate risks.

•

Operational risk capital calculation: Calculate operational risk capital as required under applicable Basel standards and local regulatory
requirements.





53

Regulatory Capital Calculation for Operational Risk
Nomura uses the Standardized Approach for calculating regulatory capital for operational risk. This involves using a three-year average of grossincome allocated to business lines, which is multiplied by a fixed percentage (the “Beta Factor”) determined by the FSA, to establish the amount of
required operational risk capital.
Nomura uses consolidated net revenue as gross income, however for certain consolidated subsidiaries, gross operating profit is used as grossincome. Gross income allocation is performed by mapping the net revenue of each business segment as defined in Nomura’s management accounting
data to each business line defined in the Standardized Approach as follows:Business Line

Description

Retail Banking
Commercial Banking
Payment and Settlement
Retail Brokerage
Trading and Sales
Corporate FinanceAgency Services
Asset Management

Retail deposit and loan-related services
Deposit and loan-related services except for Retail Banking business
Payment and settlement services for clients’ transactions
Securities-related services mainly for individuals
Market-related business
M&A, underwriting, secondary and private offerings, and other funding services for clients
Agency services for clients such as custody
Fund management services for clients

Beta Factor

12%
15%
18%
12%
18%
18%
15%
12%



•

Nomura calculates the required amount of operational risk capital for each business line by multiplying the allocated annual gross income
amount by the appropriate Beta Factor defined above. The operational risk capital for any gross income amount not allocated to a specificbusiness line is determined by multiplying such unallocated gross income amount by a fixed percentage of 18%.

•

The total operational risk capital for Nomura is calculated by aggregating the total amount of operational risk capital required for eachbusiness line and unallocated amount and by determining a three-year average. Where the aggregated amount for a given year is negative,then the total operational risk capital amount for that year will be calculated as zero. In any given year, negative amounts in any businessline are offset against positive amounts in other business lines. However, negative unallocated amounts are not offset against positive
amounts in other business lines and are calculated as zero.

•Operational risk capital is calculated at the end of September and March each year.

Model Risk Management
Model Risk is the risk of financial loss, incorrect decision making, or damage to the firm’s credibility arising from Model errors or incorrect orinappropriate Model application.
To effectively manage the Firm’s Model Risk, Nomura has established a Model Risk Management Framework to govern the development,
ownership, validation, approval, usage, ongoing monitoring, and periodic review of the Firm’s Models. The framework is supported by a set of policies
and procedures that articulate process requirements for the various elements of the model lifecycle, including monitoring of model risk with respect to
the Firm’s appetite.
New models and material changes to approved models must be independently validated prior to official use. Thresholds to assess the materialityof model changes are defined in Model Risk Management’s procedures. During independent validation, validation teams analyze a number of factors toassess a model’s suitability, identify model limitations, and quantify the associated model risk, which is ultimately mitigated through the imposition of
approval conditions, such as usage conditions, model reserves and capital adjustments. Approved models are subject to Model Risk Management’s
periodic review process and ongoing performance monitoring to assess their continued suitability. Appropriately delegated Model Risk Management
Committees provide oversight, challenge, governance, and ultimate approval of validated Models.


54

Funding and Liquidity Risk Management
For further information on funding and liquidity risk management, see “Liquidity and Capital Resources—Funding and Liquidity Management” inthis report.
Risk Measures and Controls
Limit Frameworks
The establishment of robust limit monitoring and management is central to appropriate monitoring and management of risk. The limit
management frameworks incorporate escalation policies to facilitate approval of limits at appropriate levels of seniority. The Risk Management Divisionand the Finance Division are responsible for day-to-day operation of these limit frameworks including approval, monitoring, and reporting as required.
Business units are responsible for complying with the agreed limits. Limits apply across a range of quantitative measures of risk and across market andcredit risks.
New Business Risk Management
The new business approval process represents the starting point for new business in Nomura and exists to support management decision-making
and ensure that risks associated with new products and transactions are identified and managed appropriately. The new business approval process
consists of two components:(1)Transaction committees are in place to provide formal governance over the review and decision-making process for individualtransactions. The liability for non-compliance is also clarified.

(2)

The new product approval process allows business unit sponsors to submit applications for new products and obtain approval fromrelevant departments prior to execution of the new products. The process is designed to capture and assess risks across various risk classes
as a result of the new product or business.

The new business approval process continues to seek assuring the sound and effective management to better meet the various changes observed in
the market environment.
55

Stress Testing
Stress testing performed at the Nomura Group seeks to provide comprehensive coverage of risks across different hierarchical levels, and covers
different time horizons, severities, plausibilities and stress testing methodologies. The results of stress tests are used in capital planning processes,
capital adequacy assessments, liquidity adequacy assessments, recovery and resolution planning, assessments of whether risk appetite is appropriate, andin routine risk management.
Stress tests are run on a regular basis or on an ad hoc basis as needed, for example, in response to material changes in the external environment
and/or in the Nomura Group risk profile. The results of stress tests with supporting detailed analysis are reported to senior management and otherstakeholders as appropriate for the stress test being performed.
Stress testing is categorized either as sensitivity analysis or scenario analysis and may be performed on a Nomura Group-wide basis or at moregranular levels.
•

Sensitivity analysis is used to quantify the impact of a market move in one or two associated risk factors (for example, equity prices,
equity volatilities) in order primarily to capture those risks which may not be readily identified by other risk models;•

Scenario analysis is used to quantify the impact of a specified event across multiple asset classes and risk classes. This is a primary
approach used in performing stress testing at the different hierarchical levels of the Nomura Group;

Scenario analysis includes following examples.
•

Nomura Group establishes several stress scenarios to validate risk appetite for capital and liquidity soundness, taking into account thebusiness environment, business’s risk profile, economic environment and forecasts.

•

Group-wide stress to assess the capital adequacy of the Nomura Group under severe but plausible market scenarios is conducted on aquarterly basis at a minimum; and•Reverse stress testing, a process of considering the vulnerabilities of the firm and hence how it may react to situations where it becomesdifficult to continue its business and reviewing the results of that analysis, is conducted on an annual basis at a minimum.

Stress testing is an integral part of the Nomura Group’s overall governance and is used as a tool for forward-looking risk management, decisionmaking and enhancing communication amongst Corporate Functions, Business Divisions, and senior management.
56

Controls and Procedures
As disclosed in the Form 20-F Amendment No. 1, in April 2024, our management concluded that, as of March 31, 2023, our disclosure controls
and procedures were not effective, that a material weakness existed in our internal control over financial reporting and that our internal control overfinancial reporting was not effective. For more information, see Item 15. “Controls and Procedures” in the Form 20-F Amendment No. 1.
57

Interim Consolidated Financial Statements (UNAUDITED)
Page

Consolidated Balance Sheets as of March 31, 2023 and September 30, 2023

F-2

Consolidated Statements of Income for the Six Months Ended September 30, 2022 and 2023 and Three Months Ended September 30, 2022 and
2023

F-5

Consolidated Statements of Comprehensive Income for the Six Months Ended September 30, 2022 and 2023 and Three Months Ended
September 30, 2022 and 2023

F-7

Consolidated Statements of Changes in Equity for the Six Months Ended September 30, 2022 and 2023 and Three Months Ended September 30,
2022 and 2023

F-8

Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2022 and 2023

F-10

Notes to the Interim Consolidated Financial Statements

F-12

Review Report of Independent Registered Public Accounting Firm (PCAOB ID 789)

F-99



F-1

Interim Consolidated Financial Statements
Consolidated Balance Sheets (UNAUDITED)
Millions of yen
March 31,
September 30,
2023
2023

ASSETSCash and cash deposits:
Cash and cash equivalents
Time deposits
Deposits with stock exchanges and other segregated cash
Total cash and cash deposits
Loans and receivables:
Loans receivable (includes ¥1,650,115 and ¥1,908,000 at fair value option)
Receivables from customers (includes ¥39,107 and ¥25,857 at fair value option)
Receivables from other than customers
Allowance for credit losses
Total loans and receivables
Collateralized agreements:
Securities purchased under agreements to resell (includes ¥303,499 and ¥345,006 at fair value option)
Securities borrowed
Total collateralized agreements
Trading assets and private equity and debt investments:
Trading assets (includes assets pledged of ¥5,656,626 and ¥6,825,755; includes ¥7,043 and ¥7,736 at fair value
option)Private equity and debt investments (includes ¥18,033 and ¥22,119 at fair value option)
Total trading assets and private equity and debt investments
Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥459,954
and ¥509,094)
Non-trading debt securities (includes assets pledged of ¥ nil and ¥42,252)
Investments in equity securities (includes assets pledged of ¥953 and ¥1,053)
Investments in and advances to affiliated companies (includes assets pledged of ¥5,658 and ¥6,324)
Other (includes ¥168,780 and ¥178,555 at fair value option)
Total other assets
Total assets


F-2

¥

¥

3,820,685
409,082
291,480
4,521,247¥

4,105,049
454,862
316,895
4,876,806

4,013,852
379,911819,263(5,832)
5,207,194

4,724,588
340,112
1,052,928(5,781)
6,111,847

13,834,460
4,283,039
18,117,499

16,973,371
4,796,490
21,769,861

17,509,934
99,39917,609,333

19,520,629
111,212
19,631,841

464,316
337,361
97,660402,485
1,014,707
2,316,529
47,771,802

462,873
390,620
106,422450,360
1,014,663
2,424,938
54,815,293¥

Consolidated Balance Sheets—(Continued) (UNAUDITED)
Millions of yen
March 31,
September 30,
2023
2023

LIABILITIES AND EQUITY
Short-term borrowings (includes ¥476,212 and ¥635,138 at fair value option)
Payables and deposits:
Payables to customers
Payables to other than customers
Deposits received at banks (includes ¥159,505 and ¥172,887 at fair value option)
Total payables and deposits
Collateralized financing:
Securities sold under agreements to repurchase (includes ¥666,985 and ¥718,215 at fair value option)
Securities loaned (includes ¥82,136 and ¥80,071 at fair value option)
Other secured borrowings
Total collateralized financing
Trading liabilities
Other liabilities (includes ¥34,984 and ¥48,032 at fair value option)
Long-term borrowings (includes ¥4,957,581 and ¥5,331,898 at fair value option)
Total liabilities
Commitments and contingencies
Equity:Nomura Holdings, Inc. (“NHI”) shareholders’ equity:
Common stock
No par value share
Authorized—6,000,000,000 shares
Issued—3,233,562,601 and 3,163,562,601 shares
Outstanding—3,003,679,324 and 3,014,059,732 shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income
Total NHI shareholders’ equity before treasury stock
Common stock held in treasury, at cost—229,883,277 and 149,502,869 shares
Total NHI shareholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity


F-3

¥

¥

1,008,541¥

1,065,078

1,359,948
1,799,585
2,137,936
5,297,469

1,328,776
2,560,594
2,064,279
5,953,649

14,217,966
1,556,663
334,319
16,108,948
10,557,971
1,175,521
10,399,210
44,547,660

18,591,260
1,739,100
291,383
20,621,743
11,141,359
1,219,158
11,442,058
51,443,045

594,493
707,189
1,647,005
318,454
3,267,141(118,574)
3,148,567
75,5753,224,142
47,771,802 ¥594,493
690,842
1,642,918
442,562
3,370,815(79,375)
3,291,440
80,8083,372,248
54,815,293

Consolidated Balance Sheets—(Continued) (UNAUDITED)The following table presents the classification of consolidated variable interest entities’ (“VIEs”) assets and liabilities included in the consolidatedbalance sheets above. The assets of a consolidated VIE may only be used to settle obligations of that VIE. Creditors do not typically have any recourse
to Nomura beyond the assets held in the VIEs. See Note 6 “Securitizations and Variable Interest Entities” for further information.

Billions of yen
March 31,
September 30,
2023
2023

Cash and cash deposits
Trading assets and private equity and debt investments
Other assets
Total assets¥

Trading liabilities
Other liabilities
Borrowings
Total liabilities¥¥¥
The accompanying notes are an integral part of these consolidated financial statements.



F-4

23
1,044
127
1,194

¥

0
5
887
892

¥

¥

¥

11
1,155
115
1,281
0
5
934
939

Consolidated Statements of Income (UNAUDITED)
Millions of yen
Six months ended September 30
2022
2023

Revenue:Commissions
Fees from investment banking
Asset management and portfolio service fees
Net gain on trading
Gain on private equity and debt investments
Interest and dividends
Gain (loss) on investments in equity securities
Other
Total revenue
Interest expense
Net revenue
Non-interest expenses:
Compensation and benefits
Commissions and floor brokerage
Information processing and communications
Occupancy and related depreciation
Business development expenses
Other
Total non-interest expenses
Income before income taxes
Income tax expense
Net income
Less: Net income (loss) attributable to noncontrolling interests
Net income attributable to NHI shareholders¥¥¥

138,583 ¥
51,474
137,288
302,8231,203
305,942(3,265)
9,772
943,820
326,834
616,986

171,692
69,750148,473
232,176
8,010
1,208,109
7,569
60,274
1,906,053
1,189,380
716,673

293,955
56,671
101,859
33,002
10,052
78,230573,769
43,21726,081
17,136 ¥(1,331)
18,467 ¥

325,81165,701
106,452
34,078
11,54070,046
613,628
103,045
41,57861,4672,904
58,563Yen
Six months ended September 30
2022
2023

Per share of common stock:
Basic—Net income attributable to NHI shareholders per share
Diluted—
Net income attributable to NHI shareholders per share

¥

6.13

¥

19.34

¥

5.91

¥

18.62

The accompanying notes are an integral part of these consolidated financial statements.




F-5

Consolidated Statements of Income—(Continued) (UNAUDITED)
Millions of yen
Three months ended September 30
2022
2023

Revenue:Commissions
Fees from investment banking
Asset management and portfolio service fees
Net gain on trading
Gain on private equity and debt investments
Interest and dividends
Gain (loss) on investments in equity securities
Other
Total revenue
Interest expense
Net revenue
Non-interest expenses:
Compensation and benefits
Commissions and floor brokerage
Information processing and communications
Occupancy and related depreciation
Business development expenses
Other
Total non-interest expenses
Income before income taxes
Income tax expense
Net income
Less: Net income (loss) attributable to noncontrolling interests
Net income attributable to NHI shareholders¥¥¥

68,152 ¥24,18969,038160,905
5,738
196,893(1,523)
10,460533,852
215,894
317,958

88,92238,60476,666116,613
1,123
658,458
2,792
29,522
1,012,700
644,940
367,760

150,894
28,18352,127
16,643
5,353
33,274286,474
31,484
14,741
16,743 ¥(28)
16,771 ¥

167,138
34,336
53,616
17,477
5,396
33,062311,025
56,735
21,15035,585353
35,232

Yen
Three months ended September 30
2022
2023

Per share of common stock:
Basic—Net income attributable to NHI shareholders per share
Diluted—
Net income attributable to NHI shareholders per share

¥

5.59

¥

11.61

¥

5.41

¥

11.21

The accompanying notes are an integral part of these consolidated financial statements.
F-6

Consolidated Statements of Comprehensive Income (UNAUDITED)
Millions of yen
Six months ended September 30
2022
2023

Net income
Other comprehensive income:Cumulative translation adjustments:
Cumulative translation adjustments
Deferred income taxes
Total
Defined benefit pension plans:
Pension liability adjustment
Deferred income taxes
Total
Own credit adjustments:
Own credit adjustments
Deferred income taxes
Total
Total other comprehensive income
Comprehensive income
Less: Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to NHI shareholders¥

17,136¥

213,044(574)
212,470

174,096(1,293)
172,803

1,713
(341)
1,372

993
(224)
769

66,483(13,657)
52,826
266,668
283,804 ¥820
282,984 ¥¥¥

61,467(62,963)
14,734(48,229)
125,343
186,810
4,139
182,671

Millions of yen
Three months ended September 30
2022
2023

Net income
Other comprehensive income:Cumulative translation adjustments:
Cumulative translation adjustments
Deferred income taxes
Total
Defined benefit pension plans:
Pension liability adjustment
Deferred income taxes
Total
Own credit adjustments:
Own credit adjustments
Deferred income taxes
Total
Total other comprehensive income
Comprehensive income
Less: Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income attributable to NHI shareholders¥¥¥

The accompanying notes are an integral part of these consolidated financial statements.
F-7

16,743¥35,58567,726(158)
67,56845,170(948)
44,222

787
(201)
586

461
(99)
362

37,624(8,224)29,40097,554
114,297 ¥(327)
114,624 ¥(25,270)
5,653(19,617)
24,96760,552860
59,692

Consolidated Statements of Changes in Equity (UNAUDITED)
Millions of yen
Six months ended September 30
2022
2023

Common stock
Balance at beginning of year
Balance at end of period
Additional paid-in capital
Balance at beginning of year
Stock-based compensation awards
Changes in an affiliated company’s interests
Balance at end of period
Retained earnings
Balance at beginning of year
Net income attributable to NHI shareholders
Cash dividends(1)Gain (loss) on sales of treasury stock
Cancellation of treasury stock
Balance at end of period
Accumulated other comprehensive income (loss)
Cumulative translation adjustments
Balance at beginning of year
Net change during the period
Balance at end of period
Defined benefit pension plans
Balance at beginning of year
Pension liability adjustment
Balance at end of period
Own credit adjustments
Balance at beginning of year
Own credit adjustments
Balance at end of period
Balance at end of period
Common stock held in treasury
Balance at beginning of year
Repurchases of common stock
Sales of common stock
Common stock issued to employees
Cancellation of treasury stock
Balance at end of period
Total NHI shareholders’ equity
Balance at end of period
Noncontrolling interests
Balance at beginning of year
Cash dividends
Net income (loss) attributable to noncontrolling interests
Accumulated other comprehensive income attributable to noncontrolling interests
Purchase / sale of subsidiary shares, net
Other net change in noncontrolling interests
Balance at end of period
Total equity
Balance at end of period¥¥

594,493594,493¥

697,507(10,210)—687,297

707,189(16,333)(14)
690,842

1,606,987
18,467(15,006)(1,884)—
1,608,564

1,647,005
58,563(24,112)(2,433)(36,105)
1,642,918

136,912210,319347,231242,767
171,568
414,335(43,803)
1,372(42,431)(32,174)769(31,405)

34,86452,826
87,690392,490

107,861(48,229)59,632442,562(112,355)(24,723)
0
17,208—(119,870)(118,574)(20,007)0
23,101
36,105(79,375)

3,162,974

3,291,440

58,198(2,440)(1,331)
2,151
84
7,665
64,32775,575(2,337)
2,904
1,235
345
3,086
80,8083,227,301

¥


(1)

Dividends per share

Six months ended September 30, 2022 ¥ 5.00

Six months ended September 30, 2023 ¥8.00

The accompanying notes are an integral part of these consolidated financial statements.
F-8

594,493594,493

3,372,248

Consolidated Statements of Changes in Equity—(Continued) (UNAUDITED)
Millions of yen
Three months ended September 30
2022
2023

Common stock
Balance at beginning of year
Balance at end of period
Additional paid-in capital
Balance at beginning of year
Stock-based compensation awards
Changes in an affiliated company’s interests
Balance at end of period
Retained earnings
Balance at beginning of year
Net income attributable to NHI shareholders
Cash dividends(1)Gain on sales of treasury stock
Balance at end of period
Accumulated other comprehensive income (loss)
Cumulative translation adjustments
Balance at beginning of year
Net change during the period
Balance at end of period
Defined benefit pension plans
Balance at beginning of year
Pension liability adjustment
Balance at end of period
Own credit adjustments
Balance at beginning of year
Own credit adjustments
Balance at end of period
Balance at end of period
Common stock held in treasury
Balance at beginning of year
Repurchases of common stock
Sales of common stock
Common stock issued to employees
Balance at end of period
Total NHI shareholders’ equity
Balance at end of period
Noncontrolling interests
Balance at beginning of year
Cash dividends
Net income (loss) attributable to noncontrolling interests
Accumulated other comprehensive income (loss) attributable to noncontrolling interests
Purchase / sale of subsidiary shares, net
Other net change in noncontrolling interests
Balance at end of period
Total equity
Balance at end of period¥¥

594,493594,493¥

678,1159,182—
687,297

680,736
10,117(11)
690,842

1,606,779
16,771(15,006)20
1,608,564

1,631,772
35,232(24,112)26
1,642,918

279,364
67,867347,231370,620
43,715414,335(43,017)586(42,431)(31,767)362(31,405)

58,29029,40087,690392,490

79,249(19,617)59,632442,562(118,541)(1,514)0
185(119,870)(59,667)(20,005)
0
297(79,375)

3,162,974

3,291,440

59,642
57
(27)
(299)
84
4,870
64,32780,403
(159)
353
507
0
(296)
80,8083,227,301

¥


(1)

Dividends per share

Three months ended September 30, 2022 ¥ 5.00

Three months ended September 30, 2023 ¥8.00

The accompanying notes are an integral part of these consolidated financial statements.
F-9

594,493594,493

3,372,248

Consolidated Statements of Cash Flows (UNAUDITED)
Millions of yen
Six months ended September 30
2022
2023
(Restated)(Restated)

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
Provision for credit losses(Gain) loss on investments in equity securities
Gain on investments in subsidiaries and affiliates
Loss on disposal of office buildings, land, equipment and facilities
Deferred income taxes
Changes in operating assets and liabilities:
Deposits with stock exchanges and other segregated cash
Trading assets and private equity and debt investments
Trading liabilities
Securities purchased under agreements to resell, net of securities sold under agreements torepurchase
Securities borrowed, net of securities loaned
Margin loans and receivables
PayablesBonus accrual
Accrued income taxes, net
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments for placements of time deposits
Proceeds from redemption or maturity of time deposits
Payments for purchases of office buildings, land, equipment and facilities
Proceeds from sales of office buildings, land, equipment and facilities
Payments for purchases of equity investments
Proceeds from sales of equity investments
Net cash outflows from loans receivable at banks
Payments for purchases or origination of other non-trading loans
Proceeds from sales or repayments of other non-trading loans
Net cash outflows from interbank money market loans
Payments for purchases of non-trading debt securities
Proceeds from sales or maturity of non-trading debt securities
Acquisitions, net of cash acquired
Payments for purchases of investments in affiliated companies
Proceeds from sales of investments in affiliated companies
Other, net
Net cash used in investing activities


F-10

¥

17,136¥

61,46730,355
(647)
3,265
—
151
11,05030,027(224)(7,569)(129)887(1,949)99,999(1,297,744)
1,598,294

5,537(604,418)(59,347)(1,254,871)
270,702(162,986)
408,030(72,500)(38,497)(223,701)(611,964)

627,468(166,357)(154,758)
521,626(63,072)
44,537(39,594)
194,132(99,908)
94,492(55,969)
25,324(1,756)
7,443(31,689)(2,721,023)
2,581,870(961)(28,261)
85,703—(3,000)178(24,337)(171,894)(244,577)
234,987(52,800)
42,333(8,105)
24,156(36,821)(1,971,685)
1,724,607—(61,663)
60,163(446)(27,517)820(16,330)(332,878)

Consolidated Statements of Cash Flows—(Continued) (UNAUDITED)
Millions of yen
Six months ended September 30
2022
2023
(Restated)(Restated)

Cash flows from financing activities:
Proceeds from issuances of long-term borrowings
Payments for repurchases or maturity of long-term borrowings
Proceeds from issuances of short-term borrowings
Payments for repurchases or maturity of short-term borrowings
Net cash inflows (outflows) from interbank money market borrowings
Net cash inflows (outflows) from other secured borrowings
Net cash inflows (outflows) from deposits received at banks
Payments for withholding taxes on stock-based compensation
Proceeds from sales of common stock
Payments for repurchases of common stock
Payments for cash dividends
Contributions from noncontrolling interests
Distributions to noncontrolling interests
Net cash provided by financing activities
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
Supplemental information:
Cash paid during the period for—
Interest
Income tax payments, net¥

1,096,983(543,440)
1,340,872(1,112,505)
2,309(70,777)
223,424(9,060)3(23,209)(42,254)
32,899(23,612)871,633
271,536
359,3113,316,408
3,675,719 ¥

1,628,667(1,140,128)
842,108(818,367)(88,631)6,269(145,429)(12,669)110(20,007)(36,049)
18,906(11,291)
223,489
199,672
284,415
3,820,852
4,105,267¥¥

302,848
53,527

1,127,545(1,010)¥¥The following table presents a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported within the
consolidated balance sheets to the total of the same such amounts shown in the statements of cash flows above. Restricted cash and restricted cash
equivalents are amounts where access, withdrawal or usage by Nomura is substantively prohibited by a third party entity outside of the Nomura group.

Millions of yen
Six months ended September 30
2022
2023

Cash and cash equivalents reported in Cash and cash equivalents
Restricted cash and restricted cash equivalents reported in Deposits with stock exchanges and other
segregated cash
Total cash, cash equivalent, restricted cash and restricted cash equivalents¥

3,675,554 ¥

4,105,049

¥
¥

165 ¥
3,675,719 ¥

218
4,105,267

Non-cash—
Total amount of right-of-use assets recognized during the six months ended September 30, 2022 and September 30, 2023 were ¥15,692 millionand ¥17,508 million, respectively.
Restatement of above comparatives
See Note 1 “Summary of Accounting Policies” within these consolidated financial statements included in this interim report for further
information on the nature of this restatement.
The accompanying notes are an integral part of these consolidated financial statements.


F-11

Notes to the Interim Consolidated Financial Statements (UNAUDITED)
1. Summary of accounting policies:
Restatement of historical interim consolidated financial statements
Nature of errors
During the quarter ended March 31, 2024, the Company identified classification and presentation errors within the consolidated statements of cash
flows as reported in historical interim financial statements. These classification errors related to the incorrect classification of cash flows arising fromcertain non-trading loans, other financial and non-financial transactions within operating rather than investing or financing activities. These presentation
errors related to the presentation of certain cash flows from non-trading debt securities, short-term borrowings and other financial and non-financialtransactions on a net rather than gross basis. None of these errors impact the consolidated balance sheets, consolidated statements of income orconsolidated statements of comprehensive income and therefore do not impact previously reported earnings per share amounts.
The Company has concluded that certain of these errors are material and therefore the Company has restated comparative amounts included in the
consolidated statements of cash flows during the six months ended September 30, 2022 and September 30, 2023 to correct the identified classificationand presentation errors.
The following tables present the impact of correction of each of these errors on prior amounts as previously reported in specific line items in the
consolidated statement of cash flows and the restated amounts for the six months ended September 30, 2022 and September 30, 2023.


Six months ended September 30, 2023
Millions of yen
As Previously Reported
Line item

AmountAdjustment[Line item not previously reported]
Time deposits
Trading assets and private equity and debt investments
Other secured borrowings
Loans and receivables, net of allowance for credit losses
Other, net
Net cash used in operating activities[Line item not previously reported][Line item not previously reported]
Payments for purchases of investments in equity securities
Proceeds from sales of investments in equity securities[Line item not previously reported][Line item not previously reported]
Increase in loans receivable at banks, net[Line item not previously reported][Line item not previously reported]
Decrease in non-trading debt securities, net[Line item not previously reported][Line item not previously reported]
Business combinations or disposals, net—(9,293)(609,071)(43,730)(383,335)(95,506)(147,809)
—
—
(13)
9,901
—
—
(38,020)
—
—
2,376
—
—
(446)

(224)
9,293
4,653
43,730228,577
55,912
341,941(244,577)
234,987
13(9,901)(8,105)
24,156
1,199(1,971,685)
1,724,607(2,376)(61,663)
60,163—

Increase in investments in affiliated companies, net[Line item not previously reported][Line item not previously reported]
Other, net
Net cash used in investing activities
Increase in long-term borrowings
Decrease in long-term borrowings
Increase (decrease) in short-term borrowings, net[Line item not previously reported][Line item not previously reported](26,947)——
2,400(61,216)
1,493,493(993,655)(11,883)——

26,947(27,517)820(18,730)(271,662)
135,174(146,473)
11,883
842,108(818,367)[Line item not previously reported][Line item not previously reported]
Increase (decrease) in deposits received at banks, net[Line item not previously reported]
Net cash provided by financing activities——(145,856)—
293,768(88,631)6,269
427(12,669)(70,279)F-12

As RestatedLine item

Provision for credit losses[Line item removed]
Trading assets and private equity and debt investments[Line item removed]
Margin loans and receivables
Other, net
Net cash provided by (used in) operating activities
Payments for placements of time deposits
Proceeds from redemption or maturity of time deposits[Line item removed][Line item removed]
Payments for purchases of equity investments
Proceeds from sales of equity investments
Net cash outflows from loans receivable at banks
Payments for purchases or origination of other non-trading loans
Proceeds from sales or repayments of other non-trading loans[Line item removed]
Payments for purchases of non-trading debt securities
Proceeds from sales or maturity of non-trading debt securities
Acquisitions, net of cash acquired
Divestures, net of cash disposed of[Line item removed]
Payments for purchases of investments in affiliated companies
Proceeds from sales of investments in affiliated companies
Other, net
Net cash used in investing activities
Proceeds from issuances of long-term borrowings
Payments for repurchases or maturity of long-term borrowings[Line item removed]
Proceeds from issuances of short-term borrowings
Payments for repurchases or maturity of short-term borrowings
Net cash inflows (outflows) from interbank money market
borrowings
Net cash inflows (outflows) from other secured borrowings
Net cash inflows (outflows) from deposits received at banks
Payments for withholding taxes on stock-based compensation
Net cash provided by financing activities

Amount(224)—(604,418)—(154,758)(39,594)
194,132(244,577)
234,987——(8,105)
24,156(36,821)(1,971,685)
1,724,607—(61,663)
60,163(446)——(27,517)820(16,330)(332,878)
1,628,667(1,140,128)—
842,108(818,367)(88,631)6,269(145,429)(12,669)
223,489

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)Six months ended September 30, 2022
Millions of yen
As Previously Reported
Line item[Line item not previously reported]
Time deposits
Trading assets and private equity and debt investments
Other secured borrowings
Loans and receivables, net of allowance for credit losses
Other, net
Net cash used in operating activities[Line item not previously reported][Line item not previously reported]
Proceeds from sales of investments in equity securities[Line item not previously reported][Line item not previously reported]
Increase in loans receivable at banks, net[Line item not previously reported][Line item not previously reported][Line item not previously reported]
Decrease in non-trading debt securities, net

AmountAdjustment—(8,439)(1,293,513)(70,778)(275,360)(84,920)(659,896)
—
—
816
—
—
(33,031)———57,442(647)
8,439(4,231)
70,778112,374(138,781)
47,932(99,908)
94,492(816)(1,756)
7,443
1,342(2,721,023)
2,581,870(961)—

Increase in investments in affiliated companies, net(2,822)—Other, net
Net cash used in investing activities
Increase in long-term borrowings
Decrease in long-term borrowings
Increase (decrease) in short-term borrowings, net[Line item not previously reported][Line item not previously reported]

480(7,760)991,025(525,048)
121,210——(24,817)(164,134)
105,958(18,392)(121,210)
1,340,872(1,112,505)[Line item not previously reported][Line item not previously reported]
Increase (decrease) in deposits received at banks, net[Line item not previously reported]
Contributions from noncontrolling interests
Distributions to noncontrolling interests
Net cash provided by financing activities——
232,810—3,334(2,440)755,4312,309(70,777)(9,386)(9,060)29,565(21,172)
116,202

As RestatedLine item

Provision for credit losses[Line item removed]
Trading assets and private equity and debt investments[Line item removed]
Margin loans and receivables
Other, net
Net cash provided by (used in) operating activities
Payments for placements of time deposits
Proceeds from redemption or maturity of time deposits[Line item removed]
Payments for purchases of equity investments
Proceeds from sales of equity investments
Net cash outflows from loans receivable at banks
Payments for purchases or origination of other non-trading loans
Proceeds from sales or repayments of other non-trading loans
Net cash outflows from interbank money market loans
Payments for purchases of non-trading debt securities
Proceeds from sales or maturity of non-trading debt securities
Payments for purchases of investments in affiliated companies
Proceeds from sales of investments in affiliated companies
Other, net
Net cash used in investing activities
Proceeds from issuances of long-term borrowings
Payments for repurchases or maturity of long-term borrowings[Line item removed]
Proceeds from issuances of short-term borrowings
Payments for repurchases or maturity of short-term borrowings
Net cash inflows (outflows) from interbank money market
borrowings
Net cash inflows (outflows) from other secured borrowings
Net cash inflows (outflows) from deposits received at banks
Payments for withholding taxes on stock-based compensation
Contributions from noncontrolling interests
Distributions to noncontrolling interests
Net cash provided by financing activities

Amount(647)—(1,297,744)—(162,986)(223,701)(611,964)(99,908)
94,492—(1,756)
7,443(31,689)(2,721,023)
2,581,870(961)(28,261)
85,703(3,000)178(24,337)(171,894)
1,096,983(543,440)—
1,340,872(1,112,505)
2,309(70,777)
223,424(9,060)32,899(23,612)871,633

Description of business —Nomura Holdings, Inc. (“Company”) and its broker-dealer, banking and other financial services subsidiaries provide investment, financing andrelated services to individual, institutional and government clients on a global basis. The Company and other entities in which it has a controlling
financial interest are collectively referred to as “Nomura” within these consolidated financial statements.
Nomura operates its business through various divisions based upon the nature of specific products and services, its main client base and its
management structure. Nomura reports operating results through three business segments: Retail, Investment Management and Wholesale.
In its Retail segment, Nomura provides investment consultation services mainly to individual clients in Japan. In its Investment Management
segment, Nomura mainly provides various investment management services and investment solutions such as establishing and managing investment
trusts, discretionary investment services for domestic and overseas investors, investment and management for investment corporation and for funds for
institutional investors, and management of Tokumei kumiai (silent partnerships). In its Wholesale segment, Nomura engages in the sales and trading ofdebt and equity securities, foreign exchange contracts and derivatives globally, and provides investment banking services such as the underwriting anddistribution of debt and equity securities as well as mergers and acquisitions and financial advisory.
The accounting and financial reporting policies of Nomura conform to U.S. generally accepted accounting principles (“U.S. GAAP”) as applicable
to broker dealers. A summary of the significant accounting policies applied by Nomura within these interim consolidated financial statements isprovided within in the notes to the consolidated financial statements of Nomura’s annual report on Form 20-F for the year ended March 31, 2023 as filedon June 28, 2023 as amended by certain new accounting pronouncements adopted by the Company during the six months ended September 30, 2023
and discussed further below.
F-13

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)
Use of estimates —There have been no significant adverse changes in accounting estimates used by management which have had a significant adverse effect on the
Company’s financial position or financial performance during the six months ended September 30, 2023.
New accounting pronouncements recently adopted —No new accounting pronouncements relevant to Nomura were adopted during the three months ended September 30, 2023.
The following table presents a summary of new accounting pronouncements relevant to Nomura which have been adopted since April 1, 2023, thedate of adoption by Nomura and whether the new accounting pronouncement has had a material financial impact on these consolidated financial
statements on adoption or prospectively since adoption:

Pronouncement

ASU 2022-02 “Financial
instruments – Credit losses(Topic 326): Troubled debt
restructurings and vintage
disclosures”

Summary of new guidance•

Eliminates specific recognition and measurement
guidance for troubled debt restructurings (“TDRs”).
Single guidance to be applied to all modifications when
determining whether a modification results in a newreceivable or a continuation of an existing receivable.

•

Requires to use a discounted cash flow (“DCF”) orreconcilable method for measurement of current
expected credit losses for modified receivables isremoved; where a DCF method is used for themeasurement, an effective interest rate (EIR) derived
from the modified contractual terms should be applied.

•

Enhances disclosures by creditors for modifications ofreceivables from debtors experiencing financial
difficulty in the form of principal forgiveness, an interest
rate reduction, other-than-insignificant payment delay orterm extension.

•

Augments the current requirements for public business
entity creditors to disclose current-period gross writeoffs by year of origination (i.e., the vintage year) for
financing receivables and net investments in leases.

Adoption date andmethod of adoption

Nomura has adopted
the amendments
prospectively from
April 1, 2023.

Effect on these
consolidated financial
statements

No material financial impact
on initial adoption or since
adoption.
See Note 7. “Financing
receivables” for related new
disclosures.

Future accounting developments —The following table presents a summary of new authoritative accounting pronouncements relevant to Nomura which will be adopted on or after
October 1, 2023, the expected date of adoption by Nomura and whether the new accounting pronouncement may have a material financial impact onthese consolidated financial statements on initial adoption or prospectively:Pronouncement

ASU 2022-03 “Fair value
measurement (Topic 820)”

Summary of new guidance•

Clarifies that a contractual sale restriction is an entityspecific characteristic and therefore should not be
considered in the fair value measurement of an equity
security.

•

Enhances disclosures for fair value of investments inequity securities subject to contractual sale restrictions,nature and remaining duration of the restrictions andcircumstances that could cause a lapse in the
restrictions.



F-14

Expected adoption dateand method of adoption

Effect on these
consolidated financial
statements

Nomura currently plans No material financial impact
to adopt the
expected.
amendments
prospectively from
April 1, 2024.

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

2. Fair value measurements:
The fair value of financial instruments
A significant amount of Nomura’s financial instruments are carried at fair value. Financial assets carried at fair value on a recurring basis arereported in the consolidated balance sheets within Trading assets and private equity and debt investments, Loans and receivables, Collateralized
agreements and Other assets. Financial liabilities carried at fair value on a recurring basis are reported within Trading liabilities, Short-term borrowings,
Payables and deposits, Collateralized financing, Long-term borrowings and Other liabilities.
Other financial assets and financial liabilities are carried at fair value on a nonrecurring basis, where the primary measurement basis is not fairvalue but where fair value is used in specific circumstances after initial recognition, such as to measure impairment.
In all cases, fair value is determined in accordance with ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fairvalue as the amount that would be exchanged to sell a financial asset or transfer a financial liability in an orderly transaction between market participantsat the measurement date. It assumes that the transaction occurs in the principal market for the relevant financial assets or financial liabilities, or in theabsence of a principal market, the most advantageous market.
Fair value is usually determined on an individual financial instrument basis consistent with the unit of account of the financial instrument.
However, certain financial instruments managed on a portfolio basis are valued as a portfolio, namely based on the price that would be received to sell a
net long position (i.e., a net financial asset) or transfer a net short position (i.e., a net financial liability) consistent with how market participants would
price the net risk exposure at the measurement date.
Financial assets carried at fair value also include investments in certain funds where, as a practical expedient, fair value is determined on the basisof net asset value per share (“NAV per share”) if the NAV per share is calculated in accordance with certain industry standard principles.
Increases and decreases in the fair value of assets and liabilities may significantly impact Nomura’s position, performance, liquidity and capital
resources. As explained below, valuation techniques applied contain inherent uncertainties and Nomura is unable to predict the accurate impact of future
developments in the market. The valuation of financial instruments is more difficult during periods of market stress as a result of greater volatility andreduced price transparency, such as during the COVID-19 pandemic in 2021 and may therefore require the greater use of judgement in the determinationof fair value. Where appropriate, Nomura uses economic hedging strategies to mitigate risk, although these hedges are also subject to unpredictable
movements in the market.
Valuation methodology for financial instruments carried at fair value on a recurring basis
The fair value of financial instruments is based on quoted market prices including market indices, broker or dealer quotations or an estimation by
management of the expected exit price under current market conditions. Various financial instruments, including cash instruments and over-the-counter(“OTC”) contracts, have bid and offer prices that are observable in the market. These are measured at the point within the bid-offer range which best
represents Nomura’s estimate of fair value. Where quoted market prices or broker or dealer quotations are not available, prices for similar instruments orvaluation pricing models are considered in the determination of fair value.
Where quoted prices are available in active markets, no valuation adjustments are taken to modify the fair value of assets or liabilities marked
using such prices. Other instruments may be measured using valuation techniques, such as valuation pricing models incorporating observable valuation
inputs, unobservable parameters or a combination of both. Valuation pricing models use valuation inputs which would be considered by market
participants in valuing similar financial instruments.
Valuation pricing models and their underlying assumptions impact the amount and timing of unrealized and realized gains and losses recognized,
and the use of different valuation pricing models or underlying assumptions could produce different financial results. Valuation uncertainty results froma variety of factors, including the valuation technique or model selected, the quantitative assumptions used within the valuation model, the inputs into
the model, as well as other factors. Valuation adjustments are used to reflect the assessment of this uncertainty. Common valuation adjustments include
model reserves, credit adjustments, close-out adjustments, and other appropriate instrument-specific adjustments, such as those to reflect transfer or sale
restrictions. Changes in these valuation adjustments may have a significant impact on our consolidated financial statements.


F-15

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The level of adjustments is largely judgmental and is based on an assessment of the factors that management believe other market participants
would use in determining the fair value of similar financial instruments. The type of adjustments taken, the methodology for the calculation of theseadjustments, and the valuation inputs for these calculations are reassessed periodically to reflect current market practice and the availability of new
information.
For example, the fair value of certain financial instruments includes adjustments for credit risk, both with regards to counterparty credit risk on
positions held and Nomura’s own creditworthiness on positions issued. Credit risk on financial assets is significantly mitigated by credit enhancements
such as collateral and netting arrangements. Any net credit exposure is measured using available and applicable valuation inputs for the relevant
counterparty. The same approach is used to measure the credit exposure on Nomura’s financial liabilities as is used to measure counterparty credit risk
on Nomura’s financial assets.
Such valuation pricing models are calibrated to the market on a regular basis and inputs used are adjusted for current market conditions and risks.
The Valuation Model Validation Group within Nomura’s Risk Management Department reviews pricing models and assesses model appropriateness andconsistency independently of the front office. The model reviews consider a number of factors about a model’s suitability for valuation and sensitivity ofa particular product. Valuation models are calibrated to the market on a periodic basis by comparison to observable market pricing, comparison withalternative models and analysis of risk profiles.
As explained above, any changes in fixed income, equity, foreign exchange and commodity markets can impact Nomura’s estimates of fair value
in the future, potentially affecting trading gains and losses. Where financial contracts have longer maturity dates, Nomura’s estimates of fair value may
involve greater subjectivity due to the lack of transparent market data.
Fair value hierarchy
All financial instruments carried at fair value, including those carried at fair value using the fair value option, have been categorized into a threelevel hierarchy (“fair value hierarchy”) based on the transparency of valuation inputs used by Nomura to estimate fair value. A financial instrument isclassified in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement of the financial instrument. The
three levels of the fair value hierarchy are defined as follows, with Level 1 representing the most transparent inputs and Level 3 representing the leasttransparent inputs:
Level 1:
Observable valuation inputs that reflect quoted prices (unadjusted) for identical financial instruments traded in active markets at the measurement
date.
Level 2:
Valuation inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the financial instrument.
Level 3:
Unobservable valuation inputs which reflect Nomura assumptions and specific data.


F-16

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The availability of valuation inputs observable in the market varies by product and can be affected by a variety of factors. Significant factors
include, but are not restricted to the prevalence of similar products in the market, especially for customized products, how established the product is in
the market, for example, whether it is a new product or is relatively mature, and the reliability of information provided in the market which would
depend, for example, on the frequency and volume of current data. A period of significant change in the market may reduce the availability ofobservable data. Under such circumstances, financial instruments may be reclassified into a lower level in the fair value hierarchy.
Significant judgments used in determining the classification of financial instruments include the nature of the market in which the product would
be traded, the underlying risks, the type and liquidity of market data inputs and the nature of observed transactions for similar instruments.
Where valuation models include the use of valuation inputs which are less observable or unobservable in the market, significant management
judgment is used in establishing fair value. The valuations for Level 3 financial instruments, therefore, involve a greater degree of judgment than thosevaluations for Level 1 or Level 2 financial instruments.
Certain criteria used to determine whether a market is active or inactive include the number of transactions, the frequency that pricing is updated
by other market participants, the variability of price quotes among market participants, and the amount of publicly available information.


F-17

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following tables present the amounts of Nomura’s financial instruments carried at fair value on a recurring basis as of March 31, 2023 andSeptember 30, 2023 within the fair value hierarchy.
Assets:Trading assets and private equity and debt investments(2)Equities(3)Private equity and debt investments(5)Japanese government securities
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading purposes
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Issued/Guaranteed by government sponsored entity
Other
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other(6)Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivative assets(7)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Netting
Total derivative assets
Subtotal
Loans and receivables(8)Collateralized agreements(9)Other assets(2)Non-trading debt securities
Other(3)(4)
Total
Liabilities:
Trading liabilities
Equities
Japanese government securities
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Residential mortgage-backed securities (“RMBS”)
Investment trust funds and otherTotal trading liabilities
Derivative liabilities(7)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Netting
Total derivative liabilities
Subtotal
Short-term borrowings(11)Payables and deposits(10)(12)
Collateralized financing(9)Long-term borrowings(11)(13)(14)
Other liabilities(15)
Total


F-18

Billions of yen
March 31, 2023
Counterparty
and Cash
Level 3Collateral Netting(1)Balance as ofMarch 31,2023¥

Level 1

Level 2

¥1,906
25
1,627
—
3,566
—
—
—
—
—
—
—
307
7,431

¥ 1,111
—
—
157
2,221
1,268
—
3,402
3,265
137
58
35
3
8,255

¥

2
73
8
0
1
—
84
¥7,515——

1,052
12,593
232
4,171
2
—
18,050¥26,305
1,498
286

11
133
36
49
—
—
229
¥ 686
191
17

87
188
¥7,790247
164¥28,500

3
196¥1,093¥¥2,068
1,469
—
3,579
—
—
158
7,274

¥

¥

¥

3
45
14
0
—
—
62
¥7,336
¥ —
—
—
27
108
¥7,471

1,602
12,080
276
4,090
3
—
18,051¥19,322
¥ 446
142
749
4,437
175
¥25,271

13
—
5
1,021
232
0
—
1,271

4
52
—
2
8
258
0
8
—
8
95
28
2
457

1
—
—
0
3
—
0
4

5
122
68
30
—
—
225
¥ 229
¥ 30
17
—
493
21
¥ 790

¥

¥

¥
¥

¥

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(16,943)(16,943)(16,943)————(16,943)

—
—
—
—
—
—
—
—
—
—
—
—
—
(16,329)(16,329)(16,329)—————(16,329)

¥

¥

¥

¥
¥

¥

3,021
77
1,627
159
5,795
1,526
0
3,410
3,265
145
153
63
312
16,143
1,065
12,799276
4,220
3(16,943)
1,420
17,563
1,689
303
337
548
20,440

2,082
1,469
5
4,600
235
0
158
8,549
1,610
12,247358
4,120
3(16,329)
2,009
10,558
476
159
749
4,957
304
17,203

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Assets:Trading assets and private equity and debt investments(2)Equities(3)Private equity and debt investments(5)Japanese government securities
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading purposes
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Issued/Guaranteed by government sponsored entity
Other
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other(6)Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivative assets(7)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Netting
Total derivative assets
Subtotal
Loans and receivables(8)Collateralized agreements(9)Other assets(2)Non-trading debt securities
Other(3)(4)
Total
Liabilities:
Trading liabilities
Equities
Japanese government securities
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Residential mortgage-backed securities (“RMBS”)
Collateralized debt obligations (“CDOs”) and other(6)Investment trust funds and otherTotal trading liabilities
Derivative liabilities(7)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Netting
Total derivative liabilities
Subtotal
Short-term borrowings(11)Payables and deposits(10)(12)
Collateralized financing(9)Long-term borrowings(11)(13)(14)
Other liabilities(15)
Total


F-19

Billions of yen
September 30, 2023
Counterparty
and Cash
Level 3Collateral Netting(1)Balance as of
September 30,
2023¥

Level 1

Level 2

¥2,052
6
1,960
—
4,474
—
—
—
—
—
—
—
354
8,846

¥ 1,201
2
—
105
2,564
1,478
—
3,236
3,096
140
20
54
1
8,661

¥

1
36
0
1
0
—
38
¥8,884——

1,066
16,408
177
5,900
1
—
23,552¥32,213
1,678
333

10
191
42
56
—
—
299
¥ 831
256
12

103
238
¥9,225

264
156¥34,64423
216¥1,338¥¥2,432
1,482
—
4,086
—
—
—
141
8,141

¥

¥

¥

1
16
1
—
2
—
20
¥8,161———22
160¥8,343

1,505
15,590
246
5,638
2
—
22,981¥24,243
591
156
798
4,838
164
¥30,790

17
—
6
976
263
0
—
0
1,262

28
73
—
0
2
250
0
10
—
10
141
27
1
532

0
—
—
0
5
—
0
0
5

4
199
84
37
—
—
324
¥ 329
45
16
—
472
34
¥ 896

¥

¥

¥

¥

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(22,351)(22,351)(22,351)————(22,351)

—
—
—
—
—
—
—
—
—
—
—
—
—
—
(21,592)(21,592)(21,592)—————(21,592)

¥

¥

¥

¥

¥

3,281
81
1,960
105
7,040
1,728
0
3,246
3,096
150
161
81
356
18,0391,077
16,635219
5,957
1(22,351)
1,538
19,577
1,934
345
390
610
22,856

2,449
1,482
6
5,062
268
0
0
141
9,408
1,510
15,805331
5,675
4(21,592)
1,733
11,141
636
172
798
5,332
358
18,437

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)



(1)
(2)

(3)
(4)
(5)

(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)

Represents the amount offset under counterparty netting of derivative assets and liabilities as well as cash collateral netting against net derivatives.
Investments that are carried at fair value using NAV per share as a practical expedient have not been classified in the fair value hierarchy. As of
March 31, 2023 and September 30, 2023, the fair values of these investments which are included in Trading assets and private equity and debt
investments were ¥47 billion and ¥55 billion, respectively. As of March 31, 2023 and September 30, 2023, the fair values of these investments
which are included in Other assets were ¥3 billion and ¥3 billion, respectively.
Includes equity investments that would have been accounted for under the equity method had Nomura not chosen to elect the fair value option.
Includes equity investments which comprise listed and unlisted equity securities held for operating purposes in the amounts of ¥69,475 millionand ¥28,185 million, respectively, as of March 31, 2023 and ¥77,648 million and ¥28,774 million, respectively, as of September 30, 2023.
Private equity and debt investments include private non-traded financial instruments including minority private equity and venture capital equity
investments and other junior debt investments such as mezzanine debt held for non-trading purposes, and post-IPO investments. These
investments also include minority equity investments that would have been accounted for under the equity method had Nomura not chosen to electthe fair value option
Includes collateralized loan obligations (“CLOs”) and asset-backed securities (“ABS”) such as those secured on credit card loans, auto loans andstudent loans.
Derivatives which contain multiple types of risk are classified based on the primary risk type of the instrument.
Includes loans and receivables for which the fair value option has been elected.
Includes collateralized agreements or collateralized financing for which the fair value option has been elected.
Includes deposits received at banks for which the fair value option has been elected.
Includes structured notes for which the fair value option has been elected.
Includes embedded derivatives bifurcated from deposits received at banks. Deposits are adjusted for fair value changes in corresponding
embedded derivatives for presentation in the consolidated balance sheets.
Includes embedded derivatives bifurcated from issued structured notes. Structured notes are adjusted for fair value changes in corresponding
embedded derivatives for presentation in the consolidated balance sheets.
Includes liabilities recognized from secured financing transactions that are accounted for as financings rather than sales. Nomura elected the fairvalue option for these liabilities.
Includes loan commitments for which the fair value option has been elected.

Valuation techniques by major class of financial instrument
The valuation techniques used by Nomura to estimate fair value for major classes of financial instruments, together with the significant inputs
which determine classification in the fair value hierarchy, are as follows.
Equities and equity securities reported within Other assets—Equities and equity securities reported within Other assets include direct holdings ofboth listed and unlisted equity securities, and fund investments. The fair value of listed equity securities is determined using quoted prices for identicalsecurities from active markets where available. These valuations should be in line with market practice and therefore can be based on bid prices or midmarket prices. Nomura determines whether the market is active depending on the sufficiency and frequency of trading activity. Where these securities
are classified in Level 1 of the fair value hierarchy, no valuation adjustments are made to fair value. Listed equity securities traded in inactive markets
are also generally valued using the exchange price and are classified in Level 2. Whilst rare in practice, Nomura may apply a discount or liquidity
adjustment to the exchange price of a listed equity security traded in an inactive market if the exchange price is not considered to be an appropriate
representation of fair value. These adjustments are determined by individual security and are not determined or influenced by the size of holding. The
amount of such adjustments made to listed equity securities traded in inactive markets was ¥nil as of March 31, 2023 and September 30, 2023,
respectively. The fair value of unlisted equity securities is determined using the same valuation technique as private equity and debt investments
described below and are usually classified in Level 3 because significant valuation inputs such as liquidity discounts and credit spreads areunobservable.


F-20

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Private equity and debt investments—The determination of fair value of unlisted equity and debt investments requires significant management
judgment because the investments, by their nature, have little or no price transparency. Private equity and debt investments are initially carried at cost as
an approximation of fair value. Adjustments to carrying value are made if there is third-party evidence of a change in value. Adjustments are also made,in the absence of third-party transactions, if it is determined that the expected exit price of the investment is different from carrying value. In reachingthat determination, Nomura primarily uses either a discounted cash flow (“DCF”) or market multiple valuation technique. A DCF valuation techniqueincorporates estimated future cash flows to be generated from the investee, as adjusted for an appropriate growth rate discounted at a weighted average
cost of capital (“WACC”). Market multiple valuation techniques include comparables such as Enterprise Value/Earnings before interest, taxes,
depreciation and amortization (“EV/EBITDA”) ratios, Price/Earnings (“PE”) ratios, Price/Book ratios, Price/Embedded Value ratios and other multiples
based on relationships between numbers reported in the financial statements of the investee and the price of comparable companies. A liquidity discount
may also be applied to either a DCF or market multiple valuation to reflect the specific characteristics of the investee. The liquidity discount includes
considerations for various uncertainties in the model and inputs to valuation. Where possible these valuations are compared with the operating cash
flows and financial performance of the investee or properties relative to budgets or projections, PE data for similar quoted companies, trends within
sectors and/or regions and any specific rights or terms associated with the investment, such as conversion features and liquidation preferences. Private
equity and debt investments are generally classified in Level 3 since the valuation inputs such as those mentioned above are usually unobservable.
Government, agency and municipal securities—The fair value of Japanese and other G7 government securities is primarily determined using
quoted market prices, executable broker or dealer quotations, or alternative pricing sources. These securities are traded in active markets and therefore
are classified within Level 1 of the fair value hierarchy. Non-G7 government securities, agency securities and municipal securities are valued using
similar pricing sources but are generally classified in Level 2 as they are traded in inactive markets. Certain non-G7 securities may be classified in Level
1 because they are traded in active markets. Certain securities may be classified in Level 3 because they are traded infrequently and there is not
sufficient information from comparable securities to classify them in Level 2. These are valued using DCF valuation techniques which include
significant unobservable valuation inputs such as credit spreads of the issuer.
Bank and corporate debt securities—The fair value of bank and corporate debt securities is primarily determined using broker or dealer quotations
and recent market transactions of identical or similar debt securities if available, but also using DCF valuation techniques. Consideration is given to thenature of the broker and dealer quotations, namely whether these are indicative or executable, the number of available quotations and how these
quotations compare to any available recent market activity or alternative pricing sources. The significant valuation inputs used for DCF valuations areyield curves, asset swap spreads, recovery rates and credit spreads of the issuer. Bank and corporate debt securities are generally classified in Level 2
because these valuation inputs are usually observable or market-corroborated. Certain bank and corporate debt securities will be classified in Level 3
because they are traded infrequently and there is insufficient information from comparable securities to classify them in Level 2, or credit spreads orrecovery rates of the issuer used in DCF valuations are unobservable.
Commercial mortgage-backed securities (“CMBS”) and Residential mortgage-backed securities (“RMBS”)—The fair value of CMBS and RMBS
are primarily determined using DCF valuation techniques but also using broker or dealer quotations and recent market transactions of identical orsimilar securities, if available. Consideration is given to the nature of the broker and dealer quotations, namely whether these are indicative or
executable, the number of available quotations and how these quotations compare to any available recent market activity or alternative pricing sources.
The significant valuation inputs include yields, prepayment rates, default probabilities and loss severities. CMBS and RMBS securities are generallyclassified in Level 2 because these valuation inputs are observable or market-corroborated. Certain CMBS and RMBS positions will be classified in
Level 3 because they are traded infrequently and there is insufficient information from comparable securities to classify them in Level 2, or one or moreof the significant valuation inputs used in DCF valuations are unobservable.
Real estate-backed securities—The fair value of real estate-backed securities is determined using broker or dealer quotations, recent market
transactions or by reference to a comparable market index. Consideration is given to the nature of the broker and dealer quotations, namely whether
these are indicative or executable, the number of available quotations and how these quotations compare to any available recent market activity oralternative pricing sources. Where all significant inputs are observable, the securities will be classified in Level 2. For certain securities, no direct
pricing sources or comparable securities or indices may be available. These securities are valued using DCF or valuation techniques and are classified in
Level 3 as the valuation includes significant unobservable valuation inputs such as yields or loss severities.


F-21

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)Collateralized debt obligations (“CDOs”) and other—The fair value of CDOs is primarily determined using DCF valuation techniques but alsousing broker or dealer quotations and recent market transactions of identical or similar securities, if available. Consideration is given to the nature of thebroker and dealer quotations, namely whether these are indicative or executable, the number of available quotations and how these quotations compare
to any available recent market activity or alternative pricing sources. The significant valuation inputs used include market spread data for each credit
rating, yields, prepayment rates, default probabilities and loss severities. CDOs are generally classified in Level 2 because these valuation inputs areobservable or market-corroborated. CDOs will be classified in Level 3 where one or more of the significant valuation inputs used in the DCF valuations
are unobservable.
Investment trust funds and other—Publicly traded funds which are valued based on quoted prices in active markets are classified in Level 1 of thefair value hierarchy. Investments in funds that are not publicly traded but Nomura has the ability to redeem its investment at NAV per share on thebalance sheet date are valued at NAV and classified in Level 2. Investments in funds which are valued using significant unobservable valuation inputs
such as credit spreads of issuer and correlation are classified in Level 3. Investment in funds that are carried at fair value using NAV per share as apractical expedient are not classified in the fair value hierarchy.
Derivatives—Equity contracts—Nomura enters into both exchange-traded and OTC equity derivative transactions such as index and equity
options, equity basket options and index and equity swaps. Where these derivatives are traded in active markets and the exchange price is representativeof fair value, the fair value of exchange-traded equity derivatives is determined using an unadjusted exchange price and classified in Level 1 of the fairvalue hierarchy. The fair value of exchange-traded equity derivatives which are traded in inactive markets or where the exchange price is not
representative of fair value is determined using a model price and are classified in Level 2. The fair value of OTC equity derivatives is determinedthrough option models such as Black-Scholes and Monte Carlo simulation. The significant valuation inputs used include equity prices, dividend yields,
volatilities and correlations. Valuation adjustments are also made to model valuations in order to reflect counterparty credit risk on derivative assets andNomura’s own creditworthiness on derivative liabilities. OTC equity derivatives are generally classified in Level 2 because all significant valuation
inputs and adjustments are observable or market-corroborated. Certain less liquid vanilla or more complex equity derivatives are classified in Level 3
where dividend yield, volatility or correlation valuation inputs are significant and unobservable.
Derivatives—Interest rate contracts—Nomura enters into both exchange-traded and OTC interest rate derivative transactions such as interest rate
swaps, currency swaps, interest rate options, forward rate agreements, swaptions, caps and floors. Where these derivatives are traded in active markets
and the exchange price is representative of fair value, the fair value of exchange-traded interest rate derivatives is determined using an unadjusted
exchange price and classified in Level 1 of the fair value hierarchy. The fair value of exchange-traded interest rate derivatives which are traded ininactive markets or where the exchange price is not representative of fair value is determined using a model price and are classified in Level 2. The fairvalue of OTC interest rate derivatives is determined through DCF valuation techniques as well as option models such as Black-Scholes or Monte Carlosimulation. The significant valuation inputs used include interest rates, forward foreign exchange (“FX”) rates, volatilities and correlations. Valuation
adjustments are also made to model valuations in order to reflect counterparty credit risk on derivative assets and Nomura’s own creditworthiness onderivative liabilities. OTC interest rate derivatives are generally classified in Level 2 because all significant valuation inputs and adjustments areobservable or market-corroborated. Certain less liquid vanilla or more complex OTC interest rate derivatives are classified in Level 3 where interest
rate, volatility or correlation valuation inputs are significant and unobservable.
Derivatives—Credit contracts—Nomura enters into OTC credit derivative transactions such as credit default swaps and credit options on single
names, indices or baskets of assets. The fair value of OTC credit derivatives is determined through DCF valuation techniques as well as option models
such as Black-Scholes or Monte Carlo simulation. The significant valuation inputs used include interest rates, credit spreads, recovery rates, default
probabilities, volatilities and correlations. Valuation adjustments are also made to model valuations in order to reflect counterparty credit risk onderivative assets and Nomura’s own creditworthiness on derivative liabilities. OTC credit derivatives are generally classified in Level 2 of the fair value
hierarchy because all significant valuation inputs and adjustments are observable or market-corroborated. Certain less liquid vanilla or more complex
OTC credit derivatives are classified in Level 3 where credit spread, recovery rate, volatility or correlation valuation inputs are significant andunobservable.


F-22

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Derivatives—Foreign exchange contracts—Nomura enters into both exchange-traded and OTC foreign exchange derivative transactions such as
foreign exchange forwards and currency options. The fair value of exchange-traded foreign exchange derivatives which are traded in inactive markets or
where the exchange price is not representative of fair value is determined using a model price and are classified in Level 2. The fair value of OTC
foreign exchange derivatives is determined through DCF valuation techniques as well as option models such as Black-Scholes or Monte Carlosimulation. The significant valuation inputs used include interest rates, forward FX rates, spot FX rates and volatilities. Valuation adjustments are also
made to model valuations in order to reflect counterparty credit risk on derivative assets and Nomura’s own creditworthiness on derivative liabilities.
OTC foreign exchange derivatives are generally classified in Level 2 because all significant valuation inputs and adjustments are observable or marketcorroborated. Certain foreign exchange derivatives are classified in Level 3 where interest rates, volatility or correlation valuation inputs are significant
and unobservable.
Nomura includes valuation adjustments in its estimation of fair value of certain OTC derivatives relating to funding costs associated with thesetransactions to be consistent with how market participants in the principal market for these derivatives would determine fair value.
Loans and receivables—The fair value of loans and receivables carried at fair value either as trading assets or through election of the fair value
option is primarily determined using DCF valuation techniques as quoted prices are typically not available. The significant valuation inputs used aresimilar to those used in the valuation of corporate debt securities described above. Loans and receivables are generally classified in Level 2 of the fairvalue hierarchy because all significant valuation inputs are observable. Certain loans and receivables, however, are classified in Level 3 because they aretraded infrequently and there is not sufficient information from comparable securities to classify them in Level 2 or credit spreads of the issuer orrecovery rates used in DCF valuations are significant and unobservable.
Collateralized agreements and Collateralized financing—The primary types of collateralized agreement and financing transactions carried at fairvalue are reverse repurchase and repurchase agreements elected for the fair value option. The fair value of these financial instruments is primarily
determined using DCF valuation techniques. The significant valuation inputs used include interest rates and collateral funding spreads such as generalcollateral or special rates. Reverse repurchase and repurchase agreements are generally classified in Level 2 of the fair value hierarchy because thesevaluation inputs are usually observable.
Non-trading debt securities—These are debt securities held by certain non-trading subsidiaries in the group and are valued and classified in thefair value hierarchy using the same valuation techniques used for other debt securities classified as Government, agency and municipal securities andBank and corporate debt securities described above.
Short-term and long-term borrowings (“Structured notes”)—Structured notes are debt securities issued by Nomura or by consolidated variableinterest entities (“VIEs”) which contain embedded features that alter the return to the investor from simply receiving a fixed or floating rate of interest toa return that depends upon some other variables, such as an equity or equity index, commodity price, foreign exchange rate, credit rating of a third party
or a more complex interest rate (i.e., an embedded derivative).


F-23

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The fair value of structured notes is determined using quoted prices in active markets for the identical instrument if available, and where notavailable, using a mixture of valuation techniques that use the quoted price of the identical liability when traded as an asset, quoted prices for similar
liabilities, similar liabilities when traded as assets, or an internal model which combines DCF valuation techniques and option pricing models,depending on the nature of the embedded features within the structured note. Where an internal model is used, Nomura estimates the fair value of boththe underlying debt instrument and the embedded derivative components. The significant valuation inputs used to estimate the fair value of the debt
instrument component include yield curves, prepayment rates, default probabilities and loss severities. The significant valuation inputs used to estimate
the fair value of the embedded derivative component are the same as those used for the relevant type of freestanding OTC derivative discussed above. A
valuation adjustment is also made to the entire structured note in order to reflect Nomura’s own creditworthiness. This adjustment is determined basedon recent observable secondary market transactions and executable broker quotes involving Nomura debt instruments and is therefore typically treatedas a Level 2 valuation input. Structured notes are generally classified in Level 2 of the fair value hierarchy as all significant valuation inputs andadjustments are observable. Where any unobservable valuation inputs are significant, such as yields, prepayment rates, default probabilities, loss
severities, volatilities and correlations used to estimate the fair value of the embedded derivative component, structured notes are classified in Level 3.
Long-term borrowings (“Secured financing transactions”)—Secured financing transactions are liabilities recognized when a transfer of afinancial asset does not meet the criteria for sales accounting under ASC 860 “Transfer and Servicing” (“ASC 860”) and therefore the transaction is
accounted for as a secured borrowing. These liabilities are valued using the same valuation techniques that are applied to the transferred financial assets
which remain on the consolidated balance sheets and are therefore classified in the same level in the fair value hierarchy as the transferred financial
assets. These liabilities do not provide general recourse to Nomura and therefore, no adjustment is made to reflect Nomura’s own creditworthiness.
F-24

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Level 3 financial instruments
The valuation of Level 3 financial assets and liabilities is dependent on certain significant valuation inputs which are unobservable. Common
characteristics of an inactive market include a low number of transactions of the financial instrument, stale or non-current price quotes, price quotes thatvary substantially either over time or among market makers, non-executable broker quotes or little publicly released information.
If corroborative evidence is not available to value Level 3 financial instruments, fair value may be measured using other equivalent products in themarket. The level of correlation between the specific Level 3 financial instrument and the available benchmark instrument is considered as anunobservable valuation input. Other techniques for determining an appropriate value for unobservable valuation input may consider information such asconsensus pricing data among certain market participants, historical trends, extrapolation from observable market data and other information Nomura
would expect market participants to use in valuing similar instruments.
Use of reasonably possible alternative valuation input assumptions to value Level 3 financial instruments will significantly influence fair value
determination. Ultimately, the uncertainties described above about input assumptions imply that the fair value of Level 3 financial instruments is a
judgmental estimate. The specific valuation for each instrument is based on management’s judgment of prevailing market conditions, in accordance with
Nomura’s established valuation policies and procedures.


F-25

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Quantitative and qualitative information regarding significant unobservable valuation inputs
The following tables present quantitative and qualitative information about the significant unobservable valuation inputs used by Nomura tomeasure the fair value of financial instruments classified in Level 3 as of March 31, 2023 and September 30, 2023. These financial instruments will also
typically include observable valuation inputs (i.e., Level 1 or Level 2 valuation inputs) which are not included in the table and are also often hedgedusing financial instruments which are classified in Level 1 or Level 2 of the fair value hierarchy. Changes in each of these significant unobservablevaluation inputs used by Nomura will impact upon the fair value measurement of the financial instrument. The following tables also illustratequalitatively how an increase in those significant unobservable valuation inputs might result in a higher or lower fair value measurement at the reporting
date and the interrelationship between significant unobservable valuation inputs where more than one is used to determine fair value measurement of thefinancial instruments.

March 31, 2023

Financial Instrument
Assets:Trading assets and private equity anddebt investments
Equities
Private equity and debt
investments

Fairvalue inbillionsof yen¥4
52

Valuationtechnique

DCF
DCF

Marketmultiples
Foreign government, agency andmunicipal securities
Bank and corporate debt securities
and loans for trading purposes
Residential mortgage backed
securities (“RMBS”)

8

DCF

258

DCF

8

DCF

Real estate-backed securities
Collateralized debt obligations(“CDOs”) and other

95
28

DCF
DCF

Investment trust funds and other2

DCF

Weighted
Average(2)(3)

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)75.0%
5.5 – 17.5%
0.0 – 2.0%
7.5 – 10.9%
5.0 – 30.0%
2.0 – 11.7 x
11.3 – 24.3 x
5.0 – 20.0%
0.0 – 1.7%
6.3 – 18.0%
0.0 – 21.8%
0.0 – 100.0%
17.7 – 28.6%
12.0 – 15.0%
0.4 – 99.6%
1.3 – 70.0%
6.0 – 38.9%
18.0 – 20.0%
2.0%
50.0 – 100.0%

75.0%
10.1%
0.7%
9.8%
17.1%
8.4 x
14.4 x
11.0%
0.7%
8.1%
5.7%
83.1%
24.3%
13.2%
20.3%
9.2%
13.9%
19.0%
2.0%
52.6%

Lower fair value
Lower fair value
Higher fair value
Lower fair value
Lower fair value
Higher fair value
Higher fair value
Lower fair value
Lower fair value
Higher fair value
Lower fair value
Higher fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value

0.0 – 2.0%

1.0%

Lower fair value

Significant
unobservablevaluation input

Range ofvaluation inputs(1)Liquidity discounts
WACC
Growth rates
Credit spreads
Liquidity discounts
EV/EBITDA ratios
PE Ratios
Liquidity discounts
Credit spreads
Recovery rates
Credit spreads
Recovery rates
Yields
Prepayment rates
Loss severities
Loss severities
Yields
Prepayment rates
Default probabilities
Loss severities

Liquidity discounts



F-26

Interrelationships
between valuation
inputs(6)Not applicable
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
Not applicable
Change in default
probabilities typicallyaccompanied bydirectionally similar change
in loss severities andopposite change inprepayment rates
Not applicableNotes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)March 31, 2023

Financial Instrument

Fair
value inbillionsof yenDerivatives, net:
Equity contracts¥

Valuationtechnique

6

OptionmodelsInterest rate contracts

11

DCF/
OptionmodelsCredit contracts

(32)

DCF/
OptionmodelsForeign exchange contracts

19

Loans and receivables

191

OptionmodelsDCF

Collateralized agreements
Other assets
Non-trading debt securities
Other(7)

17

DCF

3
196

DCF
DCF
Marketmultiples

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)Interrelationships
between valuation
inputs(6)Significant
unobservablevaluation input

Range ofvaluation inputs(1)Weighted
Average(2)(3)

Dividend yield
Volatilities
Correlations
Interest rates
Volatilities
Volatilities
Correlations
Credit spreads
Recovery rates
Volatilities
Correlations
Volatilities
Correlations
Credit spreads
Recovery rates
Repo rate

0.0 – 25.1%
15.4 – 108.6%(0.85) – 0.98
1.0 – 4.4%
10.7 – 14.1%
38.5 – 147.4 bp(1.00) – 1.00
0.1 – 348.3%
0.0 – 90.0%
55.5 – 61.1%
0.23 – 0.90
1.0 – 23.6%
0.18 – 0.74
0.0 – 25.8%
22.1 – 100.0%
2.8 – 6.0%

—
—
—
—
—
—
—
—
—
—
—
—
—
7.1%
74.5%
3.4%

Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Lower fair value
Higher fair value
Lower fair value

Credit spreads
WACC
Growth rates
EV/EBITDA ratios
PE Ratios
Price/Book ratios

0.0%
11.2%
3.0%
4.0 – 5.4 x
7.4 – 30.8 x
0.3 – 1.6 x
25.0 – 30.0%

0.0%
11.2%
3.0%
4.4 x
10.3 x
0.8 x
29.8%

Lower fair value
Lower fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Lower fair value

Not applicable
No predictableinterrelationship
Generally changes in
multiples result in acorresponding similar
directional change in a fairvalue measurement, assuming
earnings levels
remain constant.

Liquidity discounts

No predictableinterrelationship
No predictableinterrelationship

No predictableinterrelationship

No predictableinterrelationship
No predictableinterrelationship
Not applicable

Liabilities:
Trading liabilities
Bank and corporate debt
securities
Short-term borrowings

3

DCF

Recovery rates

4.5 – 95.0%

65.5%

Higher fair value

Not applicable

30

Volatilities
Correlations

15.4 – 100.6%(0.80) – 0.95——

Higher fair value
Higher fair value

No predictableinterrelationshipPayable and deposits

17

Volatilities
Correlations

10.7 – 11.3%
0.40 – 0.98——

Higher fair value
Higher fair value

No predictableinterrelationship

Long-term borrowings

493

21

Loss severities
Volatilities
Volatilities
Correlations
Recovery rates

0.0 – 30.0%
10.5 – 100.6%
51.9 – 63.6 bp(1.00) – 0.98
40.0 – 98.5%

9.0%
—
—
—
89.9%

Lower fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value

Not applicable
No predictableinterrelationship

Other liabilities

DCF/
Optionmodels
DCF/
Optionmodels
DCF
DCF/
Optionmodels
DCF



F-27

Not applicableNotes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

September 30, 2023

Financial Instrument
Assets:Trading assets and private equity anddebt investments
Equities
Private equity and debt
investments

Fairvalue inbillionsof yen¥28
73

Real estate-backed securities
Collateralized debt obligations(“CDOs”) and other

75.0%
5.4 – 17.5%
0.0 – 2.0%
7.5 – 11.0%
5.0 – 30.0%
1.3 – 12.8 x12.7 – 26.9 x
5.0 – 20.0%
0.0 – 1.6%
5.3 – 17.0%
0.0 – 88.0%
0.0 – 100.0%

75.0%
9.5%
0.6%
9.7%
16.1%
9.1 x
15.6 x
10.3%
0.6%
8.2%
8.1%
71.9%

Lower fair value
Lower fair value
Higher fair value
Lower fair value
Lower fair value
Higher fair value
Higher fair value
Lower fair value
Lower fair value
Higher fair value
Lower fair value
Higher fair value

Not applicable
No predictableinterrelationship17.4 – 37.5%
12.0 – 15.0%
2.3 – 100.0%
0.6 – 26.4%
6.0 – 60.5%
20.0%
2.0%
30.0 – 100.0%

28.3%
13.4%
21.1%
7.7%
15.3%
20.0%
2.0%
76.0%

Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value
Lower fair value

No predictableinterrelationship

ValuationtechniqueSignificant
unobservable input

Range ofvaluation inputs(1)

DCF
DCF

Liquidity discounts
WACC
Growth rates
Credit spreads
Liquidity discounts
EV/EBITDA ratios
PE Ratios
Liquidity discounts
Credit spreads
Recovery rates
Credit spreads
Recovery rates
Yields
Prepayment rates
Loss severities
Loss severities
Yields
Prepayment rates
Default probabilities
Loss severities

Marketmultiples
Foreign government, agency andmunicipal securities
Bank and corporate debt
securities and loans for
trading purposes
Residential mortgage backed
securities (“RMBS”)

Weighted
Average(2)(3)

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)

2

DCF

250

DCF

10

DCF

141
27

DCF
DCF



F-28

Interrelationships
between valuation
inputs(6)No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship

Not applicable
Change in default
probabilities typicallyaccompanied bydirectionally similar change
in loss severities andopposite change inprepayment rates

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

September 30, 2023

Financial Instrument

Fair
value inbillionsof yenDerivatives, net:
Equity contracts¥

Significant
unobservable input

Range ofvaluation inputs(1)Weighted
Average(2)(3)

6

OptionmodelsInterest rate contracts

(8)

DCF/
OptionmodelsCredit contracts(42)

Foreign exchange contracts

19

DCF/
Optionmodels
OptionmodelsDividend yield
Volatilities
Correlations
Interest rates
Volatilities
Volatilities
Correlations
Credit spreads
Recovery rates
Correlations
Interest rates
Volatilities
Correlations
Credit spreads
Recovery rates
Repo rate

0.0 – 13.5%
0.0 – 71.9%(0.85) – 0.99
1.5 – 5.3%
10.8 – 13.9%
40.5 – 175.0 bp(1.00) – 1.00
0.1 – 24.5%
5.0 – 90.0%
0.27 – 0.83
4.0 – 4.3%
7.5 – 20.4%
0.22 – 0.70
0.0 – 198.8%
36.8 – 100.0%
3.1%

—
—
—
—
—
—
—
—
—
—
—
—
—
9.5%
90.5%
3.1%

Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Lower fair value
Higher fair value
Lower fair value

Credit spreads
WACC
Growth rates
EV/EBITDA ratios
PE Ratios
Price/Book ratios
Liquidity discounts

0.0 – 4.7%
11.7%
3.0%
3.9 – 5.8 x
8.3 – 41.9 x
0.4 – 1.4 x
25.0 – 30.0%

4.1%
11.7%
3.0%
4.5 x
11.4 x
0.8 x
29.7%

Lower fair value
Lower fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value
Lower fair value

Not applicable
No predictableinterrelationship
Generally changes in
multiples result in acorresponding similar
directional change in afair value measurement,
assuming earnings levels
remain constant.

Credit spreads
Recovery rates
Volatilities
Correlations

3.6 – 3.8%
3.0 – 96.9%
11.5 – 64.4%(0.71) – 0.95

3.7%
49.0%
—
—

Higher fair value
Higher fair value
Higher fair value
Higher fair value

No predictableinterrelationship
No predictableinterrelationship

Volatilities
Correlations

11.0 – 11.6%
0.40 – 0.98——

Higher fair value
Higher fair value

No predictableinterrelationship

Loss severities
Volatilities
Volatilities
Correlations
Recovery rates

16.8%
10.8 – 64.4%
56.3 – 67.3 bp(1.00) – 0.98
40.0 – 93.0%

16.8%
—
—
—
84.3%

Lower fair value
Higher fair value
Higher fair value
Higher fair value
Higher fair value

Not applicable
No predictableinterrelationship

256

DCF

Collateralized agreements
Other assets
Non-trading debt securities
Other(7)

12

DCF

23
216

DCF
DCF
Marketmultiples

Liabilities:
Trading liabilities
Bank and corporate debt
securities
Short-term borrowings

5

DCF

45

Payable and deposits

16

Long-term borrowings

472

Other liabilities

34

DCF/
Optionmodels
DCF/
Optionmodels
DCF
DCF/
Optionmodels
DCF

(1)

(2)
(3)
(4)

(5)

(6)
(7)

Interrelationships
between valuation
inputs(6)Valuationtechnique

Loans and receivablesImpact ofincreases insignificant
unobservablevaluation
inputs(4)(5)

No predictableinterrelationship
No predictableinterrelationship

No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
Not applicableNot applicable

Range information is provided in percentages, coefficients and multiples and represents the highest and lowest level significant unobservablevaluation input used to value that type of financial instrument. A wide dispersion in the range does not necessarily reflect increased uncertainty or
subjectivity in the valuation input and is typically just a consequence of the different characteristics of the financial instruments themselves.
Weighted average information for non-derivatives is calculated by weighting each valuation input by the fair value of the financial instrument.
Nomura has not provided weighted average information for derivatives as unlike cash products the risk on such products is distinct from thebalance sheet value and is subject to netting.
The above table only considers the impact of an increase in each significant unobservable valuation input on the fair value measurement of thefinancial instrument. However, a decrease in the significant unobservable valuation input would have the opposite effect on the fair value
measurement of the financial instrument. For example, if an increase in a significant unobservable valuation input would result in a lower fairvalue measurement, a decrease in the significant unobservable valuation input would result in a higher fair value measurement.
The impact of an increase in the significant unobservable valuation input on the fair value measurement for a derivative assumes Nomura is longrisk to the input e.g., long volatility. Where Nomura is short such risk, the impact of an increase would have a converse effect on the fair value
measurement of the derivative.
Consideration of the interrelationships between significant unobservable valuation inputs is only relevant where more than one unobservablevaluation input is used to determine the fair value measurement of the financial instrument.
Valuation techniques and unobservable valuation inputs in respect of equity securities reported within Other assets in the consolidated balance
sheets.

F-29

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Qualitative discussion of the ranges of significant unobservable valuation inputs
The following comments present qualitative discussion about the significant unobservable valuation inputs used by Nomura for financial
instruments classified in Level 3.
Derivatives—Equity contracts—The significant unobservable valuation inputs are dividend yield, volatilities and correlations. The range ofdividend yields varies as some companies do not pay any dividends, for example due to a lack of profits or as a policy during a growth period, and hence
have a zero dividend yield while others may pay high dividends, for example to return money to investors. The range of volatilities is wide as thevolatilities of shorter-dated equity derivatives or those based on single equity securities can be higher than those of longer-dated instruments or those
based on indices. Correlations represent the relationships between one input and another (“pairs”) and can either be positive or negative amounts. The
range of correlations moves from positive to negative because the movement of some pairs is very closely related and in the same direction causing
highly positive correlations while others generally move in opposite directions causing highly negative correlations with pairs that have differing
relationships throughout the range.
Derivatives—Interest rate contracts—The significant unobservable valuation inputs are interest rates, volatilities and correlations. The range ofinterest rates is due to interest rates in different countries/currencies being at different levels. The range of volatilities is wide as volatilities of shorterdated interest rate derivatives are typically higher than those of longer-dated instruments. The range of correlations moves from positive to negative
because the movement of some pairs is very closely related and in the same direction causing highly positive correlations while others generally move in
opposite directions causing highly negative correlations with pairs that have differing relationships through the range. All significant unobservablevaluation inputs are spread across the ranges.
Derivatives—Credit contracts—The significant unobservable valuation inputs are credit spreads, recovery rates, volatilities and correlations. The
range of credit spreads reflects the different risk of default present within the portfolio. At the low end of the range, underlying reference names have avery limited risk of default whereas at the high end of the range, underlying reference names have a much greater risk of default. The range of recovery
rates varies primarily due to the seniority of the underlying exposure with senior exposures having a higher recovery than subordinated exposures. The
range of volatilities is wide as the volatilities of shorter-dated credit contracts are typically higher than those of longer-dated instruments. The correlation
range is positive since credit spread moves are generally in the same direction. Highly positive correlations are those for which the movement is very
closely related and in the same direction, with correlation falling as the relationship becomes less strong.
Derivatives—Foreign exchange contracts—The significant unobservable valuation inputs are interest rates, volatilities and correlations. The range
of interest rates is due to interest rates in different countries/currencies being at different levels with some countries having extremely low levels andothers being at levels that while still relatively low are less so. The range of volatilities is mainly due to the lower end of the range arising fromcurrencies that trade in narrow ranges (e.g., versus the U.S. Dollar) while the higher end comes from currencies with a greater range of movement suchas emerging market currencies. The range of correlations moves from positive to negative because the movement of some pairs is very closely related
and in the same direction causing highly positive correlations while others generally move in opposite directions causing highly negative correlations
with pairs that have differing relationships through the range.
Short-term borrowings and Long-term borrowings—The significant unobservable valuation inputs are yields, prepayment rates, default
probabilities, loss severities, volatilities and correlations. The range of volatilities is wide as the volatilities of shorter-dated instruments are typicallyhigher than those in longer-dated instruments. The range of correlations moves from positive to negative because the movement of some pairs is very
closely related and in the same direction causing highly positive correlations while others generally move in opposite directions causing highly negative
correlations with pairs that have differing relationships through the range.


F-30

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Movements in Level 3 financial instruments
The following tables present gains and losses as well as increases and decreases of financial instruments carried at fair value on a recurring basis
which Nomura classified in Level 3 of the fair value hierarchy for the six and three months ended September 30, 2022 and 2023. Financial instruments
classified in Level 3 are often hedged with instruments within Level 1 or Level 2 of the fair value hierarchy. The gains or losses presented below do notreflect the offsetting gains or losses for these hedging instruments. Level 3 financial instruments are also measured using both observable andunobservable valuation inputs. Fair value changes presented below, therefore, reflect realized and unrealized gains and losses resulting from movements
in both observable and unobservable valuation inputs.
For the six months ended September 30, 2022 and 2023, gains and losses related to Level 3 assets and liabilities did not have a material impact on
Nomura’s liquidity and capital resources management.

Billions of yen
Six months ended September 30, 2022

Assets:Trading assets and private equity and debt investments
Equities
Private equity and debt investments
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading
purposesCommercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivatives, net(3)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Total derivatives, net
Subtotal
Loans and receivables
Collateralized agreements
Other assets
Non-Trading Debt Securities
Other
Total
Liabilities:
Trading liabilities
Equities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading liabilities
Short-term borrowings
Payables and deposits
Long-term borrowings
Other liabilities
Total

Beginningbalance as ofsix months
ended
September 30,
2022

Total gains(losses)
recognized in
net revenue(1)Total gains(losses)
recognized in
otherSales /
comprehensive Purchases /redemptions(2)incomeissues(2)

¥

¥

¥

¥

¥

¥

¥

¥

14
32
2
10

¥

0

(168)
0
(1)
(75)
(37)
0
(293)

—
—
—
—
—
—
—

27
—
2
14
4
0
49

55
0
1
—
0
0
57

(18)
—
—
—
—
—
(25)

272
7
9
103
20
0
478

10
(11)
(33)
10
(24)
374 ¥
205
16

12
22
12
0
46
33
5
0

—
—
—
—
—
—
—
—

—
—
—
—
—
305 ¥
25
—

—
—
—
0
(293) ¥
(52)
—

(25)
17
(6)
9
(5)
(5) ¥
—
—

(3)
0
(4)
2
(5)
44 ¥
29
3

(1)
11
(2)
0
8
65 ¥
36
—

2
(4)
0
0
(2)
(27) ¥
(27)
—

(5)
35
(33)
21
18
496
221
19

—
197
792

0
(34)
4 ¥

—
0
0 ¥

0
1
331 ¥

—
(1)
(346) ¥

—
—
(5) ¥

1
25
102

2
1
104

—
—
(54) ¥

3
189
928

0
0
0
—
0
0
0
1
13
9
23

— ¥
—
—
—
—
— ¥
0
0
3
—
3 ¥

0 ¥
—
1
1
—
2 ¥
26
15
122
3
168 ¥

(1) ¥
—
(3)
(1)
0
(5) ¥
(16)
—
(77)
(7)
(105) ¥

—
—
—
—
—
—
—
—
—
—
—

0
0
0
0
0
0
0
—
3
5
8

¥

¥

¥

¥

¥



F-31

7

¥

0

—
—
—
—

¥

157
0
0
98
29
0
305

—

(2) ¥
(2)
0
(8)

¥

—
—
—
—
—
—
—

¥

7 ¥
7

Transfers
out ofLevel 3(5)

(1)
0
(1)
(13)
(2)
0
(13)

¥

¥

Transfers
intoLevel 3(4)(5)

220
7
8
79
26
0
398

0
0
3
0
0
3
58
8
479
32
580

—
—
—
—

Foreignexchange
movements

1
—
—
0

¥

0
2
0
2

Settlements

20Balance as ofsix months
ended
September 30,
2022

—

¥

¥

¥

¥

¥

¥

¥

2
—
3
—
—
5
4
7
38
0
54

¥

¥

¥

¥

(6) ¥
—
—
(1)

16
39
2
10

—
—

¥

0
—
—
0 ¥
(43)
(8)
(134)
(1)
(186) ¥

1
0
4
—
0
5
29
21
415
23
493

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Billions of yen
Six months ended September 30, 2023

Assets:Trading assets and private equity and debt investments
Equities
Private equity and debt investments
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading
purposesCommercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivatives, net(3)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Total derivatives, net
Subtotal
Loans and receivables
Collateralized agreements
Other assets
Non-Trading Debt Securities
Other
Total
Liabilities:
Trading liabilities
Equities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading liabilities
Short-term borrowings
Payables and deposits
Long-term borrowings
Other liabilities
Total

Beginningbalance as ofsix months
ended
September 30,
2023

¥

¥

¥

¥

¥

¥

4
52
2
8

Total gains(losses)
recognizedin netrevenue(1)Total gains(losses)
recognized inothercomprehensive
incomePurchases /Sales /
issues(2)redemptions(2)

¥

¥

¥

1

—
—
—
—

258
0
8
95
28
2
457

(2)
0
0
(2)
(2)
0
3

—
—
—
—
—
—
—

230
0
2
104
52
32
457

(263)
0
0
(67)
(63)
(33)
(433)

6
11
(32)
19
4
461 ¥
191
17

(1)
(8)
(4)
(3)
(16)
(13) ¥
9
0

—
—
—
—
—
—
—
—

—
—
—
—
—
457 ¥
74
—

3
196
868

0
(3)
(7) ¥

—
0
0

¥

(2) ¥
0
2
—
—
0 ¥
(1)
1
(6)
5
(1) ¥

—
¥
—
—
—
—
—
¥
0
0
(2)
—
(2) ¥

1
0
3
—
0
4
30
17
493
21
565

0
8
—

¥

¥

¥

¥



F-32

¥

22 ¥
12
—
3

Settlements

(1) ¥
0
0
(6)

—
—
—
—

Foreignexchange
movements

Transfers
intoLevel 3(4)(5)Transfers
out ofLevel 3(5)

¥

¥

¥

1
1

Balance as ofsix months
ended
September 30,
2023

0

2
—
—
0

—
—
—
—
—
—
—

20
—
1
11
2
0
36

38
—
—
—
13
—
53

(31)
—
(1)
—
(3)
0
(41)

250
0
10
141
27
1
532

—
0
—
—
0
(433) ¥
(49)
(8)

(4)
12
(2)
2
8
8 ¥
—
—

1
0
(3)
2
0
36 ¥
23
3

2
(22)
1
(1)
(20)
33 ¥
41
—

2
(1)
(2)
0
(1)
(42) ¥
(33)
—

6
(8)
(42)
19
(25)
507
256
12

—
5
536 ¥

0
(2)
(492) ¥

—
—
8

0
20
82

20
—
94

¥

—
—
(75) ¥

23
216
1,014

6 ¥
—
4
0
—
10 ¥
32
3
119
18
182 ¥

(8) ¥
0
(2)
—
0
(10) ¥
(15)
—
(96)
(2)
(123) ¥

—
—
—
—
—
—
—
—
—
—
—

0

¥

(1) ¥
—
(2)
—
—
(3) ¥
(8)
(6)
(103)
0
(120) ¥

0
0
5
0
0
5
45
16
472
34
572

—

¥

¥

¥

¥

0
0
0
—
0
0
1
—
7
2
10

¥

¥
—

¥

¥

4
—
—
4
4
3
44
0
55

¥

¥

0 ¥
—
(2)
(4)

28
73
0
2

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Assets:Trading assets and private equity and debt investments
Equities
Private equity and debt investments
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading
purposesCommercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivatives, net(3)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Total derivatives, net
Subtotal
Loans and receivables
Collateralized agreements
Other assets
Non-Trading Debt Securities
Other
Total
Liabilities:
Trading liabilities
Equities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading liabilities
Short-term borrowings
Payables and deposits
Long-term borrowings
Other liabilities
Total

Beginningbalance as ofthree months
ended
September 30,
2022

¥

¥

¥

¥

¥

¥

19
32
2
12

Total gains(losses)
recognizedin netrevenue(1)Billions of yen
Three months ended September 30, 2022
Total gains(losses)
recognized inotherForeigncomprehensive Purchases /Sales /
exchange
incomeissues(2)redemptions(2) Settlements movements

Transfers
intoLevel 3(4)(5)Transfers
out ofLevel 3(5)

¥

¥

¥

¥

2
3
0
0

—
—
—
—

¥

1 ¥
5
—
2

(2) ¥
(1)
0
(3)

—
—
—
—

¥

1
0
0

1
—
—
0

—

Balance as ofthree months
ended
September 30,
2022

(6) ¥
—
—
(1)

16
39
2
10

260
7
9
105
23
0
469

(3)
0
0
(3)
2
0
1

—
—
—
—
—
—
—

72
—
0
36
12
0
128

(98)
0
(1)
(41)
(18)
0
(164)

—
—
—
—
—
—
—

11
—
1
6
1
0
20

33
0
—
—
0
0
34

(3)
—
—
—
—
—
(10)

272
7
9
103
20
0
478

26
20
(30)
18
34
503 ¥
196
18

(2)
20
(5)
(1)
12
13 ¥
3
0

—
—
—
—
—
—
—
—

—
—
—
—
—
128 ¥
18
—

—
0
—
—
0
(164) ¥
(21)
—

(27)
0
4
5
(18)
(18) ¥
—
—

(2)
(1)
0
0
(3)
17 ¥
9
1

(5)
(2)
(2)
0
(9)
25 ¥
16
—

5
(2)
0
(1)
2
(8) ¥
—
—

(5)
35
(33)
21
18
496
221
19

3
189
909

0
(10)
6 ¥

—
0
0 ¥

0
0
146 ¥

—
0
(185) ¥——
(18) ¥

0
9
36

—
1
42

—
—
(8) ¥

3
189
928

0 ¥
0
0
—
0
0 ¥
(2)
0
0
(1)
(3) ¥

— ¥
—
—
—
—
— ¥
0
0
2
—
2 ¥

—
—

0 ¥
0
(3)
0
0
(3) ¥
(10)
—
(22)
(5)
(40) ¥

—
—
—
—
—
—
—
—
—
—
—

0
0
0
—
0
0
0
—
2
2
4

—
—

1
0
4
—
0
5
29
21
415
23
493

1
0
5
0
0
6
35
25
442
26
534

¥

¥

¥

¥



F-33

¥

¥

0
—
—
0 ¥
9
4
37
0
50 ¥

¥

¥

¥

¥

¥

¥

¥

0
—
2
—
—
2
3
—
16
0
21

¥

¥

¥

¥

¥

0
—
—
0 ¥
(10)
(8)
(58)
(1)
(77) ¥

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Beginningbalance as ofthree months
ended
September 30,
2023

Assets:Trading assets and private equity and debt investments
Equities¥
Private equity and debt investments
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading purposes
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivatives, net(3)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Total derivatives, net
Subtotal¥
Loans and receivables
Collateralized agreements
Other assets
Non-Trading Debt Securities
Other
Total
¥
Liabilities:
Trading liabilities
Equities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading liabilities
Short-term borrowings
Payables and deposits
Long-term borrowings
Other liabilities
Total

3
0
5
—
0
8
30
22
393
30
483



(1)

(2)
(3)
(4)
(5)

¥

¥

¥

5
61
0
3
230
0
10
106
26
2
443

Total gains(losses)
recognizedin netrevenue(1)¥Billions of yen
Three months ended September 30, 2023
Total gains(losses)
recognized inotherForeigncomprehensive Purchases /Sales /
exchange
incomeissues(2)redemptions(2) Settlements movements

(1) ¥
3
—
0
2
0
0
0
(1)
0
3

—
—
—
—
—
—
—
—
—
—
—

2
2
(39)
14
(21)
422 ¥
248
16

1
(11)
(1)
0
(11)
(8) ¥
4
0

—
—
—
—
—
—
—
—

3
211
900

0
0
(4) ¥

0
0
0
—
—
0
0
1
13
0
14

¥

¥

¥

¥

¥

¥

¥

¥

22 ¥
9
—
1
196
0
0
71
32
30
361

0 ¥
0
0
(2)
(209)
0
0
(39)
(37)
(31)
(318)

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
361 ¥
19
—

—
(1)
—
—
(1)
(319) ¥
(20)
(4)

0
3
0
5
8
8
—
—

—
0
0 ¥

—
0
380 ¥

—
(1)
(344) ¥

—
—
8

— ¥
—
—
—
—
— ¥
0
0
0
—
0 ¥

—
—

(2) ¥
0
(2)
—
0
(4) ¥
(3)
—
(15)
0
(22) ¥

—
—
—
—
—
—
—
—
—
—
—

¥

¥

1
0
—
1 ¥
13
1
79
3
97 ¥

¥

0
0

Transfers Transfers
into
out ofLevel 3(4)(5) Level 3(5)

¥

0
5
—
0
3
1
0
9

2 ¥
—
—
0
27
—
—
—
7
—
36

0 ¥
—
—
0
(1)
—
0
—
(1)
0
(2)

28
73
0
2
250
0
10
141
27
1
532

0
0
(1)
0
(1)
8 ¥
7
0

1
0
1
0
2
38 ¥
30
—

2
(1)
(2)
0
(1)
(3) ¥
(32)
—

6
(8)
(42)
19
(25)
507
256
12

0
6
21

20
—
88 ¥

—
—
(35) ¥

23
216
1,014

—
—

(1) ¥
—
(1)
—
—
(2) ¥
—
(6)
(12)
—
(20) ¥

0
0
5
0
0
5
45
16
472
34
572

—

¥

¥

¥

¥

¥

Balance as ofthree months
ended
September 30,
2023

0
0
0
—
0
0
1
—
1
1
3

¥

¥

¥

¥

¥

2
—
—
2 ¥
4
—
39
0
45 ¥

Includes gains and losses reported primarily within Net gain on trading, Gain (loss) on private equity and debt investments, and also within Gain(loss) on investments in equity securities, Revenue—Other and Non-interest expenses—Other, Interest and dividends and Interest expense in the
consolidated statements of income.
Amounts reported in Purchases / issues include increases in trading liabilities while Sales / redemptions include decreases in trading liabilities.
Derivatives which contain multiple types of risk are classified based on the primary risk type of the instrument.
Amounts of gains and losses on these transfers which were recognized in the period when the Transfers into Level 3 occurred were not significant
for the six and three months ended September 30, 2022 and 2023.
Transfers into Level 3 indicate certain valuation inputs of a financial instrument become unobservable or significant. Transfers out of Level 3
indicate certain valuation inputs of a financial instrument become observable or insignificant. See “Quantitative and qualitative information
regarding significant unobservable valuation inputs” above for the valuation inputs of each financial instruments.



F-34

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Unrealized gains and losses recognized for Level 3 financial instruments
The following table presents the amounts of unrealized gains (losses) for the six and three months ended September 30, 2022 and 2023, relating tothose financial instruments which Nomura classified in Level 3 within the fair value hierarchy and that were still held by Nomura at the relevant
consolidated balance sheet date.

Billions of yen
Six months ended September 30
2022
2023
Unrealized gains / (losses)(1)

Assets:Trading assets and private equity and debt investments
Equities
Private equity and debt investments
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading purposes
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivatives, net(2)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Total derivatives, net
Subtotal
Loans and receivables
Collateralized agreements
Other assets
Other
Total
Liabilities:
Trading liabilities
Equities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Total trading liabilities
Short-term borrowings(3)Payables and deposits(3)Long-term borrowings(3)Other liabilities
Total

¥

¥

¥

¥

¥

¥



F-35

0
2
0
0
0
0
0
(1)
(3)
0
(2)
11
15
3
(7)
22
20
4
0
(34)
(10)

0
0
0
0
0
1
19
14
34

¥

¥

¥

¥

¥

¥

0
8
—
0
(5)
0
1
(1)
(1)
0
2
2
(15)
(8)
(7)
(28)
(26)
8
0
(3)
(21)

(1)
0
1
0
0
1
0
1
2

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Billions of yen
Three months ended September 30
2022
2023
Unrealized gains / (losses)(1)

Assets:Trading assets and private equity and debt investments
Equities
Private equity and debt investments
Japanese agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities and loans for trading purposes
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)
Real estate-backed securities
Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal trading assets and private equity and debt investments
Derivatives, net(2)Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Total derivatives, net
Subtotal
Loans and receivables
Collateralized agreements
Other assets
Other
Total
Liabilities:
Trading liabilities
Equities
Bank and corporate debt securities
Total trading liabilities
Short-term borrowings(3)Payables and deposits(3)Long-term borrowings(3)Other liabilities
Total

¥

¥

¥

¥
¥

¥

2
3
0
0
(2)
0
0
(2)
1
0
2
4
11
(5)
(2)
8
10
3
0
(9)
4

0
0
0
(1)
0
5
1
5

¥

¥

(1)
4
—
0
(2)
0
1
0
(1)
0
1
0
(17)
(3)
0
(20)
(19)
3
0

¥

0
(16)

¥

—

¥

¥

0
0
0
2
16
(1)
17


(1)

(2)
(3)

Includes gains and losses reported within Net gain on trading, Gain (loss) on private equity and debt investments, and also within Gain (loss) on
investments in equity securities, Revenue—Other and Non-interest expenses—Other, Interest and dividends and Interest expense in the
consolidated statements of income.
Derivatives which contain multiple types of risk are classified based on the primary risk type of the instrument.
Includes unrealized gains/ (losses) of ¥3 billion and ¥(1) billion for the six months ended September 30, 2022 and 2023 respectively, and¥2 billion and ¥0 billion for the three months ended September 30, 2022 and 2023, respectively, recognized in Other comprehensive income (loss)
for recurring Level 3 fair value measurements held at the end of the reporting period.



F-36

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Investments in investment funds that calculate NAV per share
In the normal course of business, Nomura invests in non-consolidated funds which meet the definition of investment companies or are similar innature and which do not have readily determinable fair values. For certain of these investments, Nomura uses NAV per share as the basis for valuation asa practical expedient. Some of these investments are redeemable at different amounts from NAV per share.
The following tables present information on these investments where NAV per share is calculated or disclosed as of March 31, 2023 andSeptember 30, 2023. Investments are presented by major category relevant to the nature of Nomura’s business and risks

Hedge funds
Venture capital funds
Private equity funds
Real estate funds
Total

Hedge funds
Venture capital funds
Private equity funds
Real estate funds
Total

Fair value

Unfundedcommitments(1)

¥

¥

¥

12
11
24
3
50

¥

1
9
10
1
21

Fair value

Unfundedcommitments(1)

¥

¥

¥

11
13
29
4
57

¥

1
6
14
—
21

Billions of yen
March 31, 2023
Redemption frequency(if currently eligible)(2)Redemption notice(3)Monthly———

Same day-30 days———

Billions of yen
September 30, 2023
Redemption frequency(if currently eligible)(2)Redemption notice(3)Monthly———

Same day-30 days
—
—
—


(1)
(2)
(3)

The contractual amount of any unfunded commitments Nomura is required to make to the entities in which the investment is held.
The range in frequency with which Nomura is permitted to redeem investments.
The range in notice period required to be provided before redemption is possible.
Hedge funds:

These investments include funds of funds that invest in multiple asset classes. The fair values of these investments are determined using NAV pershare. Although majority of these funds are redeemable monthly, certain funds cannot be redeemed within one month due to contractual, liquidity or
gating issues. The redemption period is unknown for certain suspended or liquidating funds. Some of these investments contain restrictions against
transfers of the investments to third parties.
Venture capital funds:
These investments include primarily start-up funds. The fair values of these investments are determined using NAV per share. Most of these funds
cannot be redeemed within six months. The redemption period is unknown for certain suspended or liquidating funds. Some of these investments
contain restrictions against transfers of the investments to third parties.
Private equity funds:
These investments are made mainly in various sectors in Europe, U.S. and Japan. The fair values of these investments are determined using NAV
per share. Redemption is restricted for most of these investments. The redemption period is unknown for certain suspended or liquidating funds. Someof these investments contain restrictions against transfers of the investments to third parties.
Real estate funds:
These are investments in commercial and other types of real estate. The fair values of these investments are determined using NAV per share.
Redemption is restricted for most of these investments. The redemption period is unknown for certain suspended or liquidating funds. Some of theseinvestments contain restrictions against transfers of the investments to third parties.


F-37

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)Fair value option for financial assets and financial liabilities
Nomura measures certain eligible financial assets and liabilities at fair value through the election of the fair value option permitted by ASC 815“Derivatives and Hedging” and ASC 825 “Financial Instruments.” When Nomura elects the fair value option for an eligible item, changes in that item’sfair value are recognized through earnings. Election of the fair value option is generally irrevocable unless an event occurs that gives rise to a new basisof accounting for that instrument.
The financial assets and financial liabilities primarily elected for the fair value option by Nomura, and the reasons for the election, are as follows:•

Equity method investments reported within Trading assets and private equity and debt investments and Other assets held for capital
appreciation or current income purposes which Nomura generally has an intention to exit rather than hold indefinitely. Nomura elects thefair value option to more appropriately represent the purpose of these investments in these consolidated financial statements.

•

Loans receivable and Receivables from customers reported within Loans and receivables which are risk managed on a fair value basis andloan commitments related to loans receivable for which the fair value option will be elected upon funding. Nomura elects the fair value
option to mitigate volatility through earnings caused by the difference in measurement basis that otherwise would arise between loans andthe derivatives used to risk manage those instruments.

•

Reverse repurchase and repurchase agreements reported within Collateralized agreements and Collateralized financing which are risk
managed on a fair value basis. Nomura elects the fair value option to mitigate volatility through earnings caused by the difference inmeasurement basis that otherwise would arise between the reverse repurchase and repurchase agreements and the derivatives used to risk
manage those instruments.

•

All structured notes issued on or after April 1, 2008 reported within Short-term borrowings or Long-term borrowings. Nomura elects thefair value option for those structured notes primarily to mitigate the volatility through earnings caused by differences in the measurement
basis for structured notes and the derivatives Nomura uses to risk manage those positions. Nomura also elects the fair value option forcertain notes issued by consolidated VIEs for the same purpose and for certain structured notes issued prior to April 1, 2008. Certain
subsidiaries elect the fair value option for structured loans and vanilla debt securities issued by those subsidiaries.

•

Certain structured deposit issuances reported within Deposits received at banks. Nomura elects the fair value option for those structured
deposits primarily to mitigate the volatility through earnings caused by differences in the measurement basis for structured deposits andthe derivatives Nomura uses to risk manage those positions.

•

Financial liabilities reported within Long-term borrowings recognized in transactions which are accounted for as secured financing
transactions under ASC 860. Nomura elects the fair value option for these financial liabilities to mitigate volatility through earnings that
otherwise would arise had this election not been made. Even though Nomura usually has little or no continuing economic exposure to thetransferred financial assets, they remain on the consolidated balance sheets and continue to be carried at fair value, with changes in fairvalue recognized through earnings.

•

Financial reinsurance contracts reported within Other assets. Nomura elects the fair value option to mitigate income volatility caused by
the difference in measurement basis that would otherwise exist. Changes in the fair value of the reinsurance contracts carried at fair value
are reported in the consolidated statements of income.













Interest and dividends arising from financial instruments for which the fair value option has been elected are recognized within Interest anddividends, Interest expense or Revenue—Net gain on trading.


F-38

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following table presents gains (losses) due to changes in fair value for financial instruments carried at fair value using the fair value option forthe six and three months ended September 30, 2022 and 2023.

Billions of yen
Six months ended September 30
2022
2023
Gains / (Losses)(1)

Assets:Trading assets and private equity and debt investments(2)Trading assets
Private equity and debt investments
Loans and receivables
Collateralized agreements(3)Other assets(2)
Total

¥

¥

Liabilities:
Short-term borrowings(4)Payables and deposits
Collateralized financing(3)Long-term borrowings(4)(5)
Other liabilities(6)
Total

¥

¥

(1)
2
16
(2)
(35)
(20)

¥

126
9
3
442
16
596

¥

¥

¥

0
1
27
3
(1)
30
(28)
12
3
146
(1)
132

Billions of yen
Three months ended September 30
2022
2023
Gains / (Losses)(1)

Assets:Trading assets and private equity and debt investments(2)Trading assets
Private equity and debt investments
Loans and receivables
Collateralized agreements(3)Other assets(2)
Total

¥

¥

Liabilities:
Short-term borrowings(4)Payables and deposits
Collateralized financing(3)Long-term borrowings(4)(5)
Other liabilities(6)
Total

¥

¥

(1)
1
7
(2)
(10)
(5)

¥

66
4
0
173
11
254

¥

¥

¥

0
—
10
(1)
(6)
3
(16)
12
7
173
14
190


(1)
(2)
(3)
(4)
(5)
(6)

Includes gains and losses reported primarily within Revenue—Net gain on trading and Revenue—Other in the consolidated statements of income.
Includes equity investments that would have been accounted for under the equity method had Nomura not chosen to elect the fair value option.
Includes reverse repurchase and repurchase agreements.
Includes structured notes and other financial liabilities.
Includes secured financing transactions arising from transfers of financial assets which did not meet the criteria for sales accounting.
Includes unfunded written loan commitments.



F-39

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)As of March 31, 2023 and September 30, 2023, Nomura held an economic interest of 39.32% and 39.82% in American Century Companies, Inc.,
respectively. The investment is carried at fair value on a recurring basis through election of the fair value option and is reported within Other assets—
Other in the consolidated balance sheets.
For the six months ended September 30, 2022 and 2023, there was no significant impact on financial assets for which the fair value option waselected attributable to instrument-specific credit risk.
Nomura calculates the impact of changes in its own creditworthiness on certain financial liabilities for which the fair value option is elected byrevaluation techniques using a rate which incorporates observable changes in its credit spread.
The following table presents changes in the valuation adjustment for Nomura’s own creditworthiness recognized in the consolidated statements ofcomprehensive income during the six and three months ended September 30, 2022 and 2023 in respect of financial liabilities elected for the fair value
option recognized in other comprehensive income during the periods. The following table also presents amounts reclassified to the consolidated
statements of income from accumulated other comprehensive income on early settlement of such financial liabilities during the six and three months
ended September 30, 2022 and 2023 and the cumulative amounts recognized in accumulated other comprehensive income as of September 30, 2022 and2023.

Billions of yen
Six months ended or as of September 30
2022
2023

Changes recognized as a credit to other comprehensive income
Credit amounts reclassified to earnings
Cumulative credit (debit) balance recognized in accumulated other comprehensive income

¥

63
0
116

¥

(64)
(0)
84

Billions of yen
Three months ended September 30
2022
2023

Changes recognized as a credit to other comprehensive income
Credit (debit) amounts reclassified to earnings

¥

35
(0)

¥

(26)
(0)

As of March 31, 2023, the fair value of the aggregate unpaid principal balance (which is contractually principally protected) of Loans andreceivables for which the fair value option was elected was ¥45 billion less than the principal balance of such Loans and receivables. There were no
Loans and receivables for which the fair value option was elected that were 90 days or more past due. The fair value of the aggregate unpaid principalbalance (which is contractually principally protected) of Long-term borrowings for which the fair value option was elected was ¥451 billion less than theprincipal balance of such Long-term borrowings.
As of September 30, 2023, the fair value of the aggregate unpaid principal balance (which is contractually principally protected) of Loans andreceivables for which the fair value option was elected was ¥69 billion less than the principal balance of such Loans and receivables. There were no
Loans and receivables for which the fair value option was elected that were 90 days or more past due. The fair value of the aggregate unpaid principalbalance (which is contractually principally protected) of Long-term borrowings for which the fair value option was elected was ¥555 billion less than theprincipal balance of such Long-term borrowings.
Investment held by Investment companies
Nomura carries all of investments by investment companies under ASC 946 “Financial Services—Investment Companies” (“ASC 946”) at fairvalue, with changes in fair value recognized through the consolidated statements of income.


F-40

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Concentrations of credit risk
Concentrations of credit risk may arise from trading, securities financing transactions and underwriting activities, and may be impacted bychanges in political or economic factors. Nomura has credit risk concentrations on debt securities issued by the Japanese Government, U.S.
Government, British Government (“U.K.”), Governments within the European Union (“EU”), their states and municipalities, and their agencies. These
concentrations generally arise from taking trading positions and are reported within Trading assets in the consolidated balance sheets. Government,
agency and municipal securities, including Securities pledged as collateral, represented 16% of total assets as of March 31, 2023 and 17% as of
September 30, 2023.
The following tables present geographic allocations of Nomura’s trading assets related to government, agency and municipal securities as ofMarch 31, 2023 and September 30, 2023. See Note 3 “Derivative instruments and hedging activities” for further information regarding the concentrationof credit risk for derivatives.


Government, agency and municipal securities

Japan

U.S.

¥1,786¥2,561Japan

Government, agency and municipal securities¥2,065

(1)

Billions of yen
March 31, 2023
EU & U.K.

¥

2,309

Other

Total(1)¥ 925¥7,581

Billions of yen
September 30, 2023
U.S.
EU & U.K.
Other¥3,670¥2,237¥1,133

Total(1)¥9,105

Other than above, there were ¥324 billion and ¥313 billion of government, agency and municipal securities reported within Other
assets—Non-trading debt securities in the consolidated balance sheets as of March 31, 2023 and September 30, 2023, respectively. These
securities are primarily Japanese government, agency and municipal securities.

Estimated fair value of financial instruments not carried at fair value
Certain financial instruments are not carried at fair value on a recurring basis in the consolidated balance sheets since they are neither held for
trading purposes nor are elected for the fair value option. These are typically carried at contractual amounts due or amortized cost.
The carrying value of the majority of the financial instruments detailed below approximates their fair value since they are short-term in nature andcontain minimal credit risk. These financial instruments include financial assets reported within Cash and cash equivalents, Time deposits, Deposits withstock exchanges and other segregated cash, Receivables from customers, Receivables from other than customers, Securities purchased underagreements to resell and Securities borrowed and financial liabilities reported within Short-term borrowings, Payables to customers, Payables to otherthan customers, Deposits received at banks, Securities sold under agreements to repurchase, Securities loaned and Other secured borrowings in the
consolidated balance sheets.
The fair values of other financial instruments which are longer-term in nature or may contain more than minimal credit risk may be different totheir carrying value. Financial assets of this type primarily include certain loans which are reported within Loans receivable while financial liabilities
primarily include long-term borrowings which are reported within Long-term borrowings.
F-41

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following tables present carrying values, fair values and classification within the fair value hierarchy for certain classes of financial
instrument not carried at fair value on a recurring basis in the consolidated balance sheets as of March 31, 2023 and September 30, 2023.


Carrying
value

Billions of yen
March 31, 2023(1)Fair value by level
Fair
value
Level 1
Level 2
Level 3

Assets:Cash and cash equivalents
Time deposits
Deposits with stock exchanges and other segregated cash
Loans receivable(2)Securities purchased under agreements to resell
Securities borrowed
Total¥ 3,821
409
291
4,010
13,834
4,283¥26,648¥ 3,821
409
291
4,009
13,834
4,283¥26,647¥3,821—————¥3,821

¥

—
409
291
2,855
13,817
4,283¥21,655

¥ —
—
—
1,154
17
—
¥1,171

Liabilities:
Short-term borrowings
Deposits received at banks
Securities sold under agreements to repurchase
Securities loaned
Other secured borrowings
Long-term borrowings
Total¥ 1,0092,138
14,218
1,557
334
10,399¥29,655¥ 1,0092,138
14,2181,557
334
10,350¥29,606

¥ —
—
—
—
—
27
¥ 27

¥

¥

978
2,121
14,218
1,557
334
9,795
¥29,003

31
17
—
—
—
528
¥ 576


Carrying
value

Billions of yen
September 30, 2023(1)Fair value by level
Fair
value
Level 1
Level 2
Level 3

Assets:Cash and cash equivalents
Time deposits
Deposits with stock exchanges and other segregated cash
Loans receivable(2)Securities purchased under agreements to resell
Securities borrowed
Total¥ 4,105
455
317
4,720
16,973
4,796¥31,366¥ 4,105
455
317
4,719
16,973
4,796¥31,365¥4,105—————¥4,105

¥

—
455
317
3,462
16,961
4,796¥25,991

¥ —
—
—
1,257
12
—
¥1,269Liabilities:
Short-term borrowings
Deposits received at banks
Securities sold under agreements to repurchase
Securities loaned
Other secured borrowings
Long-term borrowings
Total¥ 1,065
2,064
18,591
1,739
291
11,442¥35,192¥ 1,065
2,064
18,591
1,739
291
11,409¥35,159

¥ —
—
—
—
—
22
¥ 22

¥ 1,020
2,048
18,591
1,739
291
10,881¥34,570

¥


(1)
(2)

Includes financial instruments which are carried at fair value on a recurring basis.
Carrying values are shown after deducting relevant allowances for credit losses.



F-42

45
16
—
—
—
506
¥ 567

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Assets and liabilities measured at fair value on a nonrecurring basis
In addition to financial instruments carried at fair value on a recurring basis, Nomura also measures other financial and non-financial assets andliabilities at fair value on a nonrecurring basis, where the primary measurement basis is not fair value. Fair value is only used in specific circumstances
after initial recognition such as to measure impairment.
As of March 31, 2023 and September 30, 2023, there were no significant amount of assets or liabilities which were carried at fair value on anonrecurring basis.
F-43

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

3. Derivative instruments and hedging activities:
Nomura uses a variety of derivatives, including futures, forwards, options and swaps, for both trading and non-trading purposes.
Derivatives used for trading purposes
In the normal course of business, Nomura enters into transactions involving derivatives to meet client needs, for trading purposes, and to reduce
its own exposure to loss due to adverse fluctuations in interest rates, currency exchange rates and market prices of securities. These financial instruments
include contractual agreements such as commitments to swap interest payment streams, exchange currencies or purchase or sell securities and otherfinancial instruments on specific terms at specific future dates.
Nomura maintains active trading positions in a variety of derivatives. Most of Nomura’s trading activities are client oriented. Nomura utilizes avariety of derivatives as a means of bridging clients’ specific financial needs and investors’ demands in the securities markets. Nomura also actively
trades securities and various derivatives to facilitate its clients in adjusting their risk profiles change. In performing these activities, Nomura carries aninventory of capital markets instruments and maintains its access to market liquidity by quoting bid and offer prices to and trading with other market
makers. These activities are essential to provide clients with securities and other capital market products at competitive prices.
Futures and forward contracts are commitments to either purchase or sell securities, foreign exchange contracts or other capital market instruments
at a specific future date for a specified price and may be settled in cash or through delivery. Foreign exchange contracts include spot and forward
contracts and involve the exchange of two currencies at a rate agreed by the contracting parties. Risks arise from the possible inability of counterparties
to meet the terms of their contracts and from movements in market prices. Futures contracts are executed through exchanges which clear and guarantee
performance of counterparties. Accordingly, credit risk associated with futures contracts is considered minimal. In contrast, forward contracts are
generally negotiated between two counterparties and, therefore, are subject to counterparty risks.
Options are contracts that grant the purchaser, for a premium payment, the right to either purchase or sell a financial instrument at a specified pricewithin a specified period of time or on a specified date from or to the writer of the option. The writer of options receives premiums and bears the risk ofunfavorable changes in the market price of the financial instruments underlying the options.
Swaps are contractual agreements in which two counterparties agree to exchange certain cash flows, at specified future dates, based on an agreed
contract. Certain agreements may result in combined interest rate and foreign exchange exposures. Entering into swap agreements may involve the riskof credit losses in the event of counterparty default.
To the extent these derivatives are economically hedging financial instruments or securities positions of Nomura, the overall risk of loss may befully or partly mitigated by the hedged position.
Nomura seeks to minimize its exposure to market risk arising from its use of these derivatives through various control policies and procedures,
including position limits, monitoring procedures and hedging strategies whereby Nomura enters into offsetting or other positions in a variety of financial
instruments.
F-44

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Derivatives used for non-trading purposes
Nomura’s principal objectives in using derivatives for non-trading purposes are to manage interest rate risk, to modify interest rate risk profile ofcertain financial liabilities, to manage foreign exchange risk of certain foreign currency denominated debt securities, to manage net investment exposure
to fluctuations in foreign exchange rates arising from certain foreign operations and to mitigate equity price risk arising from certain stock-based
compensation awards given to employees. Credit risk associated with derivatives utilized for non-trading purposes is controlled and managed in thesame way as that associated with derivatives used for trading purposes.
Fair value hedges
Nomura designates certain derivatives as fair value hedges of interest rate risk arising from specific financial liabilities and foreign currency risk
arising from specific foreign currency denominated debt securities. These derivatives are effective in reducing the risk associated with the exposure
being hedged and are highly correlated with changes in the fair value and foreign currency rates of the underlying hedged items, both at inception andthroughout the life of the hedging relationship. Changes in fair value of the hedging derivatives are reported together with those of the hedged liabilities
and assets through the consolidated statements of income within Interest expense and Revenue—Other, respectively.
Net investment hedges
Nomura designates certain derivatives designated as hedges of its net investment in foreign operations relating to specific subsidiaries which have
non-Japanese Yen functional currencies. When determining the effectiveness of net investment hedges, the effective portion of the change in fair valueof the hedging derivative is determined by changes in spot exchange rates. Changes in fair value of the hedging derivatives attributable to changes in the
difference between the forward rate and spot rate are excluded from the measurement of hedge effectiveness and are reported in the consolidated
statements of income within Revenue-Other. All other movements in the fair value of highly effective net investment hedging derivatives are reported
through NHI shareholders’ equity within Accumulated other comprehensive income (loss).
Concentrations of credit risk for derivatives
The following tables present Nomura’s significant concentration of exposures to credit risk in OTC derivatives with financial institutions
including transactions cleared through central counterparties as of March 31, 2023 and September 30, 2023. The gross fair value of derivative assets
represents the maximum amount of loss due to credit risk that Nomura would incur if the counterparties of Nomura failed to perform in accordance withthe terms of the instruments and any collateral or other security Nomura held in relation to those instruments proved to be of no value.

Financial institutions

Financial institutions


F-45

Gross fair value ofderivative assets

Billions of yen
March 31, 2023
Impact ofmaster netting
Impact ofagreements
collateralNet exposure tocredit risk

¥

¥

¥

15,296(12,885)¥ (1,855)

556

Gross fair value ofderivative assets

Billions of yen
September 30, 2023
Impact ofmaster netting
Impact ofagreements
collateralNet exposure tocredit risk

¥

¥

¥

20,225(17,133)¥ (2,394)

698

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Derivative activities
The following tables quantify of Nomura’s derivative positions as of March 31, 2023 and September 30, 2023 through a disclosure of notionalamounts, in comparison with the fair value of those derivatives. All amounts are disclosed on a gross basis, prior to counterparty offsetting of derivative
assets and liabilities and cash collateral offsetting against net derivatives. Derivatives which contain multiple types of risk are classified in the tablebased on the primary risk type of the instrument. Changes in the fair value of derivatives are recognized either through the consolidated statements ofincome or the consolidated statements of comprehensive income depending on the purpose for which the derivatives are used.



Derivatives used for trading and non-trading purposes(2):Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Total
Derivatives designated as formal fair value or net investment accounting hedges:
Interest rate contracts
Foreign exchange contracts
Total
Total derivatives

Derivatives used for trading and non-trading purposes(2):Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Total
Derivatives designated as formal fair value or net investment accounting hedges:
Interest rate contracts
Foreign exchange contracts
Total
Total derivatives

Total notional(1)Billions of yen
March 31, 2023
Derivative assets
Derivative liabilities
Fair value
Fair value(1)¥39,203
3,423,357
35,007
337,616257¥ 3,835,440

¥

¥

¥

¥

1,065
12,799276
4,219
318,362¥0
1
118,363¥¥

1,610
12,065358
4,120
318,156

2,828
164
¥
2,992
¥ 3,838,432¥¥

Total notional(1)Billions of yen
September 30, 2023
Derivative assets
Derivative liabilities
Fair value
Fair value(1)¥48,8684,161,702
37,483393,751248¥ 4,642,052

¥

¥

¥

3,254
190
¥
3,444
¥ 4,645,496

¥

¥
¥

¥
¥

1,077
16,635219
5,948
1
23,880¥—9923,889

¥

¥

¥
¥

180
0
180
18,336

1,510
15,526331
5,675
4
23,046279—
279
23,325(1)(2)

Includes the amount of embedded derivatives bifurcated in accordance with ASC 815.
The amounts reported include derivatives used for non-trading purposes other than those designated as fair value or net investment accounting
hedges. These amounts have not been separately presented since such amounts were not significant as of March 31, 2023 and September 30, 2023.



F-46

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Offsetting of derivatives
Counterparty credit risk associated with derivatives is controlled by Nomura through credit approvals, limits and monitoring procedures. To
reduce the risk of loss, Nomura requires collateral, principally cash collateral and government securities, for certain derivative transactions. In certain
cases, Nomura may agree for such collateral to be posted to a third-party custodian under a control agreement that enables Nomura to take control ofsuch collateral in the event of counterparty default. From an economic standpoint, Nomura evaluates default risk exposure net of related collateral.
Furthermore, OTC derivative transactions are typically documented under industry standard master netting agreements which mitigate Nomura’s credit
exposure to counterparties. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by thatagreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default of the counterparty (“closeout and offsetting rights”).
For certain OTC centrally-cleared and exchange-traded derivatives, the clearing or membership agreements entered into by Nomura provide
similar rights to Nomura in the event of default of the relevant central clearing party or exchange. Nomura generally seeks to obtain an external legal
opinion in order to ascertain the enforceability of such close-out and offsetting rights within these agreements.
For certain counterparties and /or in certain jurisdictions, Nomura may enter into derivative transactions which are not documented under a masternetting agreement. Even when derivatives are documented under such agreements, Nomura may not have obtained, or may not be able to obtainevidence to determine with sufficient certainty that close-out and offsetting rights within such agreements are legally enforceable. This may be the casewhere the relevant local laws explicitly prohibit the enforceability of such close-out and offsetting rights, or where the local laws are complex,
ambiguous or silent on the enforceability of such rights. This may include derivative transactions executed with certain foreign governments, agencies,
municipalities, central clearing counterparties, exchanges and pension funds.
Nomura considers the enforceability of a master netting agreement in determining how credit risk arising from transactions with a specificcounterparty is hedged, how counterparty credit exposures are calculated and applied to credit limits and the extent and nature of collateral requirementsfrom the counterparty.
Derivative assets and liabilities with the same counterparty and the related cash collateral receivables and payables documented under anenforceable master netting agreement are presented on a net basis on the consolidated balance sheets where the specific criteria defined by ASC 210-20“Balance Sheet—Offsetting” (“ASC 210-20”) and ASC 815 are met.
The following table presents information about offsetting of derivatives and related cash collateral amounts on the consolidated balance sheets asof March 31, 2023 and September 30, 2023 by type of derivative contract, and additional amounts permitted to be offset legally by Nomura underenforceable master netting agreements, central clearing counterparties or exchange rules in the event of counterparty default but not offset on the
consolidated balance sheets due to one or more of the criteria defined by ASC 210-20 and ASC 815 are not met. Derivative transactions which are notdocumented under a master netting agreement or are documented under a master netting agreement for which Nomura does not have sufficient evidence
of enforceability of close-out and offsetting rights are not offset in the following table.


F-47

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Equity contracts
OTC settled bilaterally
Exchange-traded
Interest rate contracts
OTC settled bilaterally
OTC centrally-cleared
Exchange-traded
Credit contracts
OTC settled bilaterally
OTC centrally-cleared
Exchange-traded
Foreign exchange contracts
OTC settled bilaterally
Commodity contracts
OTC settled bilaterally
Exchange-traded
Total gross derivative balances(2)Less: Amounts offset in the consolidated balance sheets(3)Total net amounts reported on the face of the consolidated balance sheets(4)Less: Additional amounts not offset in the consolidated balance sheets(5)Financial instruments and non-cash collateral
Net amount

Billions of yen
March 31, 2023
Derivative
Derivative
assetsliabilities(1)Billions of yen
September 30, 2023
Derivative
Derivative
assetsliabilities(1)

¥

¥

649
416

¥

880
730

706
371

¥

921
589

11,535
1,191
73

10,9761,226
45

14,8501,753
32

14,095
1,699
11

182
86
8

252
92
14

188
31
0

300
30
1

4,220

4,120

5,957

5,675

2
3
1
2
1
—
0
2
¥ 18,363 ¥ 18,338 ¥ 23,889 ¥ 23,325(16,943)(16,329) (22,351)(21,592)¥ 1,420 ¥ 2,009 ¥ 1,538 ¥ 1,733(394)¥ 1,026 ¥(315)
1,694 ¥

(592)
946 ¥

(288)
1,445


(1)
(2)

(3)

(4)

(5)

Includes the amount of embedded derivatives bifurcated in accordance with ASC 815.
Includes all gross derivative asset and liability balances irrespective of whether they are transacted under a master netting agreement or whether
Nomura has obtained sufficient evidence of enforceability of the master netting agreement. As of March 31, 2023, the gross balance of derivative
assets and derivative liabilities which are not documented under master netting agreements or are documented under master netting agreements forwhich Nomura has not yet obtained sufficient evidence of enforceability was ¥479 billion and ¥753 billion, respectively. As of September 30,
2023, the gross balance of such derivative assets and derivative liabilities was ¥342 billion and ¥620 billion, respectively.
Represents amounts offset through counterparty offsetting of derivative assets and liabilities as well as cash collateral offsetting against net
derivatives under master netting and similar agreements for which Nomura has obtained sufficient evidence of enforceability in accordance with
ASC 815. As of March 31, 2023, Nomura offset a total of ¥1,591 billion of cash collateral receivables against net derivative liabilities and¥2,205 billion of cash collateral payables against net derivative assets. As of September 30, 2023, Nomura offset a total of ¥2,058 billion of cash
collateral receivables against net derivative liabilities and ¥2,817 billion of cash collateral payables against net derivative assets.
Net derivative assets and net derivative liabilities are generally reported within Trading assets and private equity and debt investments—Trading
assets and Trading liabilities, respectively in the consolidated balance sheet. Bifurcated embedded derivatives are reported within Short-termborrowings or Long-term borrowings depending on the maturity of the underlying host contract.
Represents amounts which are not permitted to be offset on the consolidated balance sheets in accordance with ASC 210-20 and ASC 815 but
which provide Nomura with a legally enforceable right of offset in the event of counterparty default. Amounts relating to derivative and collateralagreements where Nomura has not yet obtained sufficient evidence of enforceability of such offsetting rights are excluded. As of March 31, 2023,
a total of ¥298 billion of cash collateral receivables and ¥673 billion of cash collateral payables, including amounts reported in the table, have notbeen offset against net derivatives. As of September 30, 2023, a total of ¥391 billion of cash collateral receivables and ¥941 billion of cash
collateral payables, including amounts reported in the table, have not been offset against net derivatives.
For information on offsetting of collateralized transactions, see Note 5 “Collateralized transactions”.



F-48

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Derivatives used for trading purposes
Derivative financial instruments used for trading purposes, including bifurcated embedded derivatives, are carried at fair value with changes infair value recognized through the consolidated statements of income within Revenue—Net gain on trading.
The following tables present amounts included in the consolidated statements of income for the six and three months ended September 30, 2022
and 2023 related to derivatives used for trading and non-trading purposes by types of underlying derivative contract. Derivatives which contain multiple
types of risk are classified in the table based on the primary risk type of instrument.

Billions of yen
Six months ended September 30
2022

Derivatives used for trading and non-trading purposes(1):Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Total

¥

¥

2023

(20)
302
(101)
270
2
453

¥

¥

(42)
303
(56)
168
27
400

Billions of yen
Three months ended September 30
2022
2023

Derivatives used for trading and non-trading purposes(1):Equity contracts
Interest rate contracts
Credit contracts
Foreign exchange contracts
Commodity contracts
Total

¥

¥

14
190
4
55
(20)
243

¥

¥

(61)
62
(19)
189
24
195


(1)

Includes net gains (losses) on derivatives used for non-trading purposes which are not designated as fair value or net investment hedges. For thesix months ended September 30, 2022 and 2023, net gains (losses) for these non-trading derivatives were not significant.



F-49

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)Fair value hedges
Nomura issues Japanese Yen and foreign currency denominated debt with both fixed and floating interest rates. Nomura generally enters into swap
agreements to convert fixed rate interest payments on its debt obligations to a floating rate and applies fair value hedge accounting to these instruments.
The following table presents the carrying value of the hedged items that are currently designated in a hedging relationship by line items in the
consolidated balance sheets where the hedged item is reported, the cumulative amount of fair value hedging adjustment included in the carrying amountof the hedged items and the cumulative amount of fair value hedging adjustment remaining for the liabilities which hedge accounting has been
discontinued as of March 31, 2023 and September 30, 2023.

Balance sheet line item in which the hedged
item is included:

Carrying amount of the hedged
liabilities
March 31, 2023 September 30, 2023

Long-term borrowings
Total

¥
¥

2,659 ¥
2,659 ¥

Billions of yen
Cumulative gains of fair value
hedging adjustment included in
the carrying amount of thehedged assets/liabilities
March 31, 2023 September 30, 2023

2,992 ¥
2,992 ¥

168 ¥
168 ¥

Cumulative amount of fair value
hedging adjustment remaining
for the liabilities which hedge
accounting has been discontinued
March 31, 2023 September 30, 2023

260 ¥
260 ¥

2 ¥
2 ¥

2
2

Hedging derivatives designated as fair value hedges are carried at fair value attributable to the hedged risk, which is recognized in the
consolidated statements of income within Interest expense and Revenue-Other, respectively together with the change in fair value of the hedged items.
The following tables present amounts included in the consolidated statements of income for the six and three months ended September 30, 2022
and 2023 related to derivatives designated as fair value hedges by type of underlying derivative contract and the nature of the hedged item.

Billions of yen
Six months ended September 30
2022

2023

Derivatives designated as fair value hedging instruments:
Interest rate contracts
Total

¥
¥

139
139

¥
¥

98
98

Hedged items in fair value hedges:
Long-term borrowings
Total

¥
¥

(139)
(139)

¥
¥

(98)
(98)

Billions of yen
Three months ended September 30
2022
2023

Derivatives designated as hedging instruments:
Interest rate contracts
Total

¥
¥

88
88

¥
¥

70
70

Hedged items:
Long-term borrowings
Total

¥
¥

(88)
(88)

¥
¥

(70)
(70)



F-50

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Net investment hedges
Nomura designates certain foreign currency derivatives, as hedges of net investments in certain foreign operations with significant foreignexchange risks and applies hedge accounting to these instruments. Accordingly, foreign exchange gains and losses arising from the derivatives and nonderivative financial instruments designated as hedges, except for the portion excluded from effectiveness assessment, are recognized through theconsolidated statements of comprehensive income within Other comprehensive income (loss)—Change in cumulative translation adjustments. This isoffset by the foreign exchange adjustments arising from consolidation of the relevant foreign subsidiaries.
The following tables present gains (losses) from derivatives designated as net investment hedges included in the consolidated statements ofcomprehensive income for the six and three months ended September 30, 2022 and 2023.

Billions of yen
Six months ended September 30
2022

Net investment hedging instruments:
Foreign exchange contracts
Total

¥
¥

2023

18
18

¥
¥

5
5

Billions of yen
Three months ended September 30
2022
2023

Hedging instruments:
Foreign exchange contracts
Total

¥
¥

9
9

¥
¥

5
5


The portion of gains (losses) representing the amount excluded from the assessment of hedge effectiveness are recognized within Revenue—Net
gain on trading and Revenue—Other in the consolidated statements of income. The amount of gains (losses) was not significant during the six months
ended September 30, 2022 and 2023.
Derivatives containing credit risk related contingent features
Nomura enters into certain OTC derivatives and other agreements containing credit-risk-related contingent features. These features would require
Nomura to post additional collateral or settle the instrument upon occurrence of a credit event, the most common of which would be a downgrade in the
Company’s long-term credit rating.
The aggregate fair value of all derivatives with credit-risk-related contingent features that are in a liability position as of March 31, 2023 was¥574 billion with related collateral pledged of ¥403 billion. In the event of a one-notch downgrade to Nomura’s long-term credit rating in effect as ofMarch 31, 2023, the aggregate fair value of assets that would have been required to be posted as additional collateral or that would have been needed tosettle the instruments immediately was ¥11 billion.
The aggregate fair value of all derivatives with credit-risk-related contingent features that are in a liability position as of September 30, 2023 was¥699 billion with related collateral pledged of ¥586 billion. In the event of a one-notch downgrade to Nomura’s long-term credit rating in effect as of
September 30, 2023, the aggregate fair value of assets that would have been required to be posted as additional collateral or that would have been
needed to settle the instruments immediately was ¥16 billion.


F-51

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Credit derivatives
Credit derivatives are derivatives in which one or more of their underlying reference assets of the instrument are related to the credit risk of a
specified entity (or group of entities) or an index based on the credit risk of a group of entities that expose the seller of credit protection to potential loss
from credit events specified in the contract.
Written credit derivatives are instruments or embedded features where Nomura assumes third party credit risk, either as guarantor in a guaranteetype contract, or as the party that provides credit protection in an option-type contract, credit default swap, or any other credit derivative contract.
Nomura enters into credit derivatives as part of its normal trading activities as both purchaser and/ or seller of protection for credit risk mitigation,
proprietary trading positions and for client transactions.
The most common type of credit derivatives used by Nomura are single-name credit default swaps where settlement of the derivative is based on
the credit risk of a single reference entity or obligation. Nomura also writes credit derivatives linked to the performance of credit default indices andissues other credit risk related portfolio products.
Nomura would have to perform under a credit derivative contract if a credit event as defined in the respective contract occurs. Typical credit
events include bankruptcy, failure to pay and restructuring of obligations of the underlying reference asset.
Credit derivatives written by Nomura are either cash or physically settled. In cash-settled instruments, once payment is made upon an event ofdefault, the contract usually terminates with no further payments due. Nomura generally has no right to assume the reference assets of the counterparty
in exchange for payment, nor does Nomura usually have any direct recourse to the actual issuers of the reference assets to recover the amount paid. In
physically settled contracts, upon a default event, Nomura takes delivery of the reference asset in return for payment of the full notional amount of thecontract.
Nomura actively monitors and manages its credit derivative exposures. Where protection is sold, risks may be mitigated by purchasing credit
protection from third parties either on identical underlying reference assets or on underlying reference assets with the same issuer which would be
expected to behave in a correlated fashion. The most common form of recourse provision to enable Nomura to recover from third parties any amounts
paid under a written credit derivative is therefore not through the derivative itself but rather through the purchase of separate credit derivative protection
with identical or correlated underlying reference assets.
The extent of these purchased credit protection contracts is quantified in the following tables under the column titled “Purchased Credit
Protection.” These amounts represent purchased credit protection with identical underlying reference assets to the written credit derivatives which act as
a hedge against Nomura’s exposures. To the extent Nomura is required to pay out under the written credit derivative, a similar amount would generally
become due to Nomura under the purchased credit protection.
Written credit derivatives have a stated notional amount which represents the maximum payment Nomura may be required to make under the
written credit derivative. However, this is generally not a true representation of the amount Nomura will actually pay under these contracts as there areother factors that affect the likelihood and amount of any payment obligations under the contracts, including:
Probability of default: Nomura values credit derivatives by taking into account of the probability that the underlying reference asset will default
and that Nomura will be required to make payments under the contract. Based on historical experience and Nomura’s assessment of the market, Nomura
believes that the probability that all reference assets on which Nomura provides protection will default in a single period is remote. The notionalamounts are therefore, significantly higher than Nomura’s actual exposures to these contracts as a whole.
Recovery value on the underlying asset: In the case of the occurrence of an event of default, Nomura’s liability on a written credit derivative islimited to the difference between the notional amount and the recovery value of the underlying reference asset under default. While the recovery value
on a defaulted asset may be minimal in certain cases, this does reduce amounts paid on these contracts.


F-52

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following tables present information about Nomura’s written credit derivatives and purchased credit protection with identical underlying
reference assets as of March 31, 2023 and September 30, 2023.



Carrying value(Asset) / Liability(1)Single-name credit default swaps
Credit default swap indices
Other credit risk related portfolio products
Credit-risk related options and swaptions
Total

¥

(29)
(47)
38
0
(38)

¥

Carrying value(Asset) / Liability(1)Single-name credit default swaps
Credit default swap indices
Other credit risk related portfolio products
Credit-risk related options and swaptions
Total

¥

(67)
(52)
41
0
(78)

¥

Total

¥ 8,121
6,839
624
51
¥15,635

Total¥ 8,7437,700
688
4¥17,135

Billions of yen
March 31, 2023
Maximum potential payout/NotionalYears to maturity
Less than
1 to 33 to 5More than
1 yearyears
years
5 years

Notional
Purchased
creditprotection¥ 1,263
1,339
166—¥ 2,768¥ 1,184615
32
14¥ 1,845¥ 5,708
3,886
341
51
¥ 9,986

Billions of yen
September 30, 2023
Maximum potential payout/NotionalYears to maturity
Less than
1 to 33 to 5More than
1 yearyears
years
5 years

Notional
Purchased
creditprotection¥ 1,546
2,036
149—¥ 3,731¥ 6,4964,549
457
4¥ 11,506¥3,0952,601
216—¥5,912¥3,0872,413
219—¥5,719¥2,5792,284
210
37¥5,110¥2,8412,380
260
4¥5,485¥ 1,269871
60—¥ 2,200

(1)

Carrying value amounts are shown on a gross basis prior to cash collateral or counterparty offsetting. Asset balances represent positive fair value
amounts caused by tightening of credit spreads of underlyings since inception of the credit derivatives.

The following tables present information about Nomura’s written credit derivatives by external credit rating of the underlying asset. Credit ratings
are based on S&P Global Ratings (“S&P”), or if not rated by S&P, based on Moody’s Investors Service. If credit ratings from either of these agencies
are not available, the credit ratings are based on Fitch Ratings Ltd. or Japan Credit Rating Agency, Ltd. For credit default indices, the credit rating isdetermined by taking the weighted average of the external credit ratings given for each of the underlying reference entities comprising the portfolio or
index.

AAA

Single-name credit default swaps
Credit default swap indices
Other credit risk related portfolio products
Credit-risk related options and swaptions
Total

AA

Billions of yen
March 31, 2023
Maximum potential payout/Notional
A
BBB
BB
Other(1)

Total¥227 ¥1,405 ¥2,378 ¥2,530 ¥ 781 ¥ 800 ¥ 8,121
185
180 2,924 2,844
299
407
6,839
—
—
21
325
53
225
624
—
—
—
29
22
—
51
¥412 ¥1,585 ¥5,323 ¥5,728 ¥1,155 ¥1,432 ¥15,635



F-53

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)AAA

Single-name credit default swaps
Credit default swap indices
Other credit risk related portfolio products
Credit-risk related options and swaptions
Total

AA

Billions of yen
September 30, 2023
Maximum potential payout/Notional
A
BBB
BB
Other(1)

Total¥254 ¥1,330 ¥2,667 ¥2,894 ¥ 861 ¥ 737 ¥ 8,743
253
213 3,008 3,413
291
522
7,700
—
—
22
333
26
307
688
—
—
—
—
4
—
4
¥507 ¥1,543 ¥5,697 ¥6,640 ¥1,182 ¥1,566 ¥17,135

(1)

Other includes credit derivatives where the credit rating of the underlying reference asset is below investment grade or where a credit rating isunavailable.

Derivatives entered into in contemplation of sales of financial assets
Nomura enters into transactions which involve both the transfer of financial assets to a counterparty and a separate agreement enteredcontemporaneously with the same counterparty through which Nomura retains substantially all of the exposure to the economic return on the transferredfinancial assets throughout the term of the transaction. These transactions primarily include sales of securities with bilateral OTC total return swaps orother derivative agreements which are in-substance total return swaps.
These transactions are accounted for as sales of the securities with the derivative accounted for separately if the criteria for derecognition of the
securities under ASC 860 are met. Where the derecognition criteria are not met, the transfer and separate derivative are accounted for as a single
collateralized financing transaction which is reported within Long-term borrowings in the consolidated balance sheets.
Nomura entered into certain contemporaneous transactions involving the transfer of securities that are accounted for as sales, where substantiallyall of the economic exposures to the transferred securities are retained through total return swaps but does not retain control over the assets transferred.
There were no new contracts signed during the six months ended September 30 2023. The following table provides information about relevanttransactions outstanding as of March 31, 2023 and September 30, 2023.

March 31, 2023

Gross cash proceeds received at transfer dates
Fair value of transferred securities at transfer dates
Fair value of transferred securities at reporting dates
Gross derivative liabilities arising from the transactions at reporting dates(1)



(1)

¥
¥
¥
¥

69,53569,40559,199
10,119Millions of yen
September 30, 2023

¥
¥
¥
¥

69,53569,40554,554
14,760

Amounts presented on gross basis, before the application of counterparty offsetting are included in Trading liabilities in the consolidated balance
sheets as of March 31, 2023 and September 30, 2023. Of which ¥10,119 million and ¥14,760 million are included in interest rate contracts used
for trading purpose as of March 31, 2023 and September 30, 2023 respectively as disclosed in present Note 3 “Derivative instruments and hedging
activities”.



F-54

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

4. Revenue from services provided to customers
Revenue by types of service
The following tables present revenue earned by Nomura from providing services to customers by relevant line item in the consolidated statements
of income for the six and three months ended September 30, 2022 and 2023.

Millions of yen
Six months ended September 30
2022
2023

Commissions
Fees from investment banking
Asset management and portfolio service fees
Other revenue
Total

¥

¥

138,583 ¥
51,474
137,288
21,015348,360 ¥

171,692
69,750148,473
20,653
410,568

Millions of yen
Three months ended September 30
2022
2023

Commissions
Fees from investment banking
Asset management and portfolio service fees
Other revenue
Total

¥

¥

68,152 ¥24,18969,038
10,563
171,942 ¥

88,92238,60476,666
9,590
213,782

Commissions represent revenue principally from trade execution, clearing services and distribution of fund units primarily provided by the Retail
Division and to a lesser extent, the Wholesale Division. The following table shows a breakdown of Commissions for the six and three months ended
September 30, 2022 and 2023.

Millions of yen
Six months ended September 30
2022
2023

Brokerage commissions
Commissions for distribution of investment trust
Other commissions
Total

¥

¥

96,820 ¥13,924
27,839138,583 ¥

113,548
27,38930,755
171,692

Millions of yen
Three months ended September 30
2022
2023

Brokerage commissions
Commissions for distribution of investment trust
Other commissions
Total

¥

¥



F-55

48,454 ¥6,409
13,28968,152 ¥58,314
13,99916,60988,922

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Fees from investment banking represent revenue from financial advisory, underwriting and distribution primarily from the Wholesale Division,and to a lesser extent, the Retail Division. The following table shows the breakdown of Fees from investment banking for the six and three months
ended September 30, 2022 and 2023.

Millions of yen
Six months ended September 30
2022
2023

Equity underwriting and distribution fees
Debt underwriting and distribution fees
Financial advisory fees
Other fees
Total

¥

¥

5,316
11,21528,3106,633
51,474¥¥

17,627
10,55523,615
17,95369,750Millions of yen
Three months ended September 30
2022
2023

Equity underwriting and distribution fees
Debt underwriting and distribution fees
Financial advisory fees
Other fees
Total

¥

¥

1,603
4,517
14,2793,790
24,189¥¥13,097
5,211
9,991
10,30538,604

Asset management and portfolio service fees represent revenue from asset management services primarily from the Investment Management
Division, and to a lesser extent, the Retail Division.
The following table shows the breakdown of Asset management and portfolio service fees for the six and three months ended September 30, 2022
and 2023.

Millions of yen
Six months ended September 30
2022
2023

Asset management fees
Administration fees
Custodial fees
Total

¥

¥

86,917 ¥38,578
11,793
137,288 ¥

92,86542,005
13,603
148,473

Millions of yen
Three months ended September 30
2022
2023

Asset management fees
Administration fees
Custodial fees
Total

¥

¥



F-56

43,197 ¥
19,623
6,218
69,038 ¥47,63022,002
7,034
76,666

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following table presents summary information regarding the key methodologies, assumptions and judgments used in recognizing revenue foreach of the primary types of service provided to customers, including the nature of underlying performance obligations within each type of service andwhether those performance obligations are satisfied at a point in time or over a period of time. For performance obligations recognized over time,
information is also provided to explain the nature of the input or output method used to recognize revenue over time.

Type of service provided tocustomers

Trade execution, clearing
services and distribution of fundunits

Financial advisory services

Underwriting and syndication
services

Key revenue recognition policies, assumptions andjudgments

Overview of key services provided•

Buying and selling of securities onbehalf of customers•

Trade execution and clearing commissions recognized at a point in
time, namely trade date.

•

Distribution of fund units••

Clearing of securities and derivatives
on behalf of customers

Distribution fees are recognized at a point in time when the fundunits have been sold to third party investors.

•

Commissions recognized net of soft dollar credits provided tocustomers where Nomura is acting as agent in providing investment
research and similar services to the customer.

•

Fees contingent on the success of an underlying transaction arevariable consideration recognized when the underlying transaction
has been completed since only at such point is it probable that asignificant reversal of revenue will not occur.

•

Retainer and milestone fees are recognized either over the period towhich they relate or are deferred until consummation of theunderlying transaction depending on whether the underlying
performance obligation is satisfied at a point in time or over time.

•

Judgment is required to make this determination with factors
influencing this determination including, but not limited to, whether
the fee is in connection with an engagement designed to achieve a
specific transaction or outcome for the customer (such as thepurchase or sale of a business), the nature and extent of benefit to beprovided to the customer prior to, and in addition to such specifictransaction or outcome and the fee structure for the engagement.

•

Retainer and milestone fees recognized over time are normallyrecognized on a straight-line basis over the term of the contract
based on time elapsed.

•

Underwriting and syndication fees are recognized at a point in time
when the underlying transaction is complete.

•Commitment fees where draw down of the facility is deemed
remote recognized on a straight-line basis over the life of the
facility based on time elapsed.

•

Underwriting and syndication costs recognized either as a reductionof revenue or on a gross basis depending on whether Nomura isacting as principal or agent for such amounts.

•

Provision of financial advice tocustomers in connection with a
specific forecasted transaction ortransactions such as mergers andacquisitions•

Provision of financial advice not in
connection with a specific forecasted
transaction or transactions such as
general corporate intelligence andsimilar research•

Issuance of fairness opinions•

Structuring complex financial
instruments for customers•

Underwriting of debt, equity andother financial instruments on behalfof customers•

Distributing securities on behalf ofissuers•

Arranging loan financing forcustomers•

Syndicating loan financing on behalfof customer



F-57

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)Type of service provided tocustomers

Asset management services

Key revenue recognition policies, assumptions andjudgments

Overview of key services provided•

Management of funds, investment
trusts and other investment vehicles•

Provision of investment advisory
services••Management fees earned by Nomura in connection with managing afund, investment trust or other vehicle generally are recognized on astraight-line basis based on time elapsed.

•

Performance-based fees are variable consideration recognized when
the performance metric has been determined since only at such
point is it probable that a significant reversal of revenue will notoccur.

•

Custodial and administrative fees are recognized on a straight-line
basis over time based on time elapsed.

Provision of custodial andadministrative services to customers

Where revenue is recognized at a point in time, payments of fees are typically received at the same time as when the performance obligation issatisfied, or within several days or months after satisfying a performance obligation. In relation to revenue recognized over time, payments of fees are
typically settled monthly, quarterly or semi-annually.
The underlying contracts entered into by Nomura in connection with the services described above typically do not have significant financing
components. If such components exist in a contract, Nomura has made an accounting policy permitted by ASC 606 “Revenue from Contracts with
Customers” (“ASC 606”) not to adjust for the effects of a significant financing component where the financing is effectively for a period of one year or
less. Such contracts also typically do not contain any rights of return or similar features for the customer.


F-58

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Customer contract balances
When Nomura or the customer performs in accordance with the terms of a customer contract, a contract asset, customer contract receivable orcontract liability is recognized in Nomura’s consolidated balance sheet.
A contract asset represents accrued revenue recognized by Nomura for completion or partially completion of a performance obligation, namely aright of Nomura to receive consideration for providing the service to the customer, which is conditional on factors or events other than the passage oftime. A customer contract receivable is an unconditional right of Nomura to receive consideration in exchange for services provided. Both contract
assets and customer contract receivables are reported in Receivables from Customers within Nomura’s consolidated balance sheet. A contract liability is
any liability recognized in connection with a customer contract, including obligations to refund or obligations to provide a service in the future for which
consideration has already been received or is due to be received. Contract liabilities are reported in Payables to Customers within Nomura’s
consolidated balance sheet.
The following table presents the balances of customer contract receivables and contract liabilities in scope of ASC 606. The amounts of contract
assets as of March 31, 2023 and September 30, 2023 were not significant.

March 31, 2023

Customer contract receivables
Contract liabilities(1)

¥



(1)

85,1005,226Millions of yen
September 30, 2023¥

92,944
4,963

Contract liabilities primarily rise from investment advisory services and are recognized over the term of the contract based on time elapsed.

The balance of contract liabilities as of March 31, 2022 and 2023 were recognized as revenue for the six months ended September 30, 2022 and2023, respectively.
Nomura recognized ¥4,511 million and ¥810 million of revenue from performance obligations satisfied in previous periods for the six months
ended September 30, 2022 and the three months ended September 30, 2022, respectively. Nomura recognized ¥2,248 million and ¥571 million ofrevenue from performance obligations satisfied in previous periods for the six months ended September 30, 2023 and the three months ended
September 30, 2023.
Transaction price allocated to the remaining performance obligations
In the ordinary course of business, Nomura may enter into customer contracts where the performance obligations are wholly or partiallyunsatisfied as of fiscal year ends. The total transaction prices allocated to the remaining unsatisfied performance obligations within these customer
contracts were ¥1,189 million as of March 31, 2023 and ¥925 million as of September 30, 2023. As permitted by ASC 606, Nomura has elected not todisclose information about remaining performance obligations that have an individual estimated contract period of one year or less. In addition,
considerations arising from contracts with customers do not comprise any significant amount that is not included in transaction price.
Customer contract costs
As permitted by ASC 340 “Other Assets and Deferred Costs,” Nomura has elected to expense all costs to obtain customer contracts where suchamounts would be otherwise expensed within one year or less. As a result, the amounts of deferred costs to obtain or fulfill customer contracts as ofMarch 31, 2023 and September 30, 2023 were not significant.


F-59

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

5. Collateralized transactions:
Nomura enters into collateralized transactions, including reverse repurchase agreements, repurchase agreements, securities borrowing
transactions, securities lending transactions, other secured borrowings and similar transactions mainly to meet clients’ financing needs, finance trading
inventory positions and obtain securities for settlement.
Reverse repurchase agreements, repurchase agreements, securities borrowing transactions and securities lending transactions are typically
documented under industry standard master netting agreements which mitigate Nomura’s credit exposure to counterparties. For certain centrally-cleared
reverse repurchase and repurchase agreements, the clearing or membership agreements entered into by Nomura provide similar rights to Nomura in theevent of default of the relevant central clearing counterparty. Nomura generally seeks to obtain an external legal opinion in order to ascertain theenforceability of such close-out and offsetting rights within these agreements.
Nomura may enter into reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions withcertain types of counterparty and in certain jurisdictions which are not documented under a master netting agreement. Even when these transactions are
documented under such master netting agreements, Nomura may not have obtained, or may not be able to obtain, evidence to determine with sufficientcertainty that the close-out and offsetting rights in the agreements are legally enforceable. This may be the case where relevant local laws explicitly
prohibit such close-out and offsetting rights, or where local laws are complex, ambiguous or silent on the enforceability of such rights. This may include
reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions executed with certain foreign
governments, agencies, municipalities, central clearing counterparties, agent banks and pension funds.
Nomura considers the enforceability of a master netting agreement in determining how credit risk arising from transactions with a specificcounterparty is hedged, how counterparty credit exposures are calculated and applied to credit limits and the extent and nature of collateral requirementsfrom the counterparty.
In all of these transactions, Nomura either receives or provides collateral, including Japanese and non-Japanese government, agency, mortgagebacked, bank and corporate debt securities and equities. In most cases, the party receiving the collateral is free to sell or repledge the securities received
through repurchase agreements, securities lending transactions or to cover short positions. In repurchase and reverse repurchase agreements, the value ofcollateral typically exceeds the amount of cash transferred, where collateral is generally in the form of securities. Securities borrowing transactions
generally require Nomura to provide the counterparty with collateral in the form of cash or other securities. For securities lending transactions, Nomura
generally receives collateral in the form of cash or other securities. Nomura monitors the market value of the securities either received from or provided
to the counterparty. Additional cash or securities are exchanged as necessary, to ensure that such transactions are adequately collateralized throughout
the life of the transactions.
Offsetting of certain collateralized transactions
Reverse repurchase agreements and repurchase agreements, securities borrowing and lending transactions with the same counterparty documented
under a master netting agreement are offset in the consolidated balance sheets where specific criteria as defined by ASC 210-20 are met. These criteria
include requirements around maturity of transactions, underlying systems on which collateral is settled, associated banking arrangements and legal
enforceability of close-out and offsetting rights under relevant master netting agreements.
The following tables present information about offsetting of these transactions in the consolidated balance sheets as of March 31, 2023 andSeptember 30, 2023, together with the extent to which master netting agreements entered into with counterparties and central clearing parties permit
additional offsetting in the event of counterparty default. Transactions which are not documented under a master netting agreement or are documented
under a master netting agreement for which Nomura does not have sufficient evidence of enforceability are not offset in the following tables.


F-60

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Billions of yen
March 31, 2023
AssetsTotal gross balance(1)Less: Amounts offset in the consolidated balance sheets(2)Total net amounts of reported on the face of the consolidated balance sheets(3)Less: Additional amounts not offset in the consolidated balance sheets(4)Financial instruments and non-cash collateral
Cash collateral
Net amount

Reverserepurchaseagreements

Securities
borrowingtransactions¥ 35,030(21,196)¥ 13,834¥(11,938)(14)¥ 1,882

Liabilities
Securities
Repurchaselendingagreements
transactions

¥

4,280
—
4,280

¥ 35,414(21,196)¥ 14,218¥(2,690)—1,590(11,550)(1)¥ 2,667

¥
¥

1,825
—
1,825

¥

(1,617)—
208

Billions of yen
September 30, 2023
AssetsTotal gross balance(1)Less: Amounts offset in the consolidated balance sheets(2)Total net amounts of reported on the face of the consolidated balance sheets(3)Less: Additional amounts not offset in the consolidated balance sheets(4)Financial instruments and non-cash collateral
Cash collateral
Net amount

Reverserepurchaseagreements

Securities
borrowingtransactions¥ 39,992(23,019)¥ 16,973¥(14,428)(38)¥ 2,507

Liabilities
Securities
Repurchaselendingagreements
transactions

¥

4,793
—
4,793

¥ 41,610(23,019)¥ 18,591¥(3,113)—
1,680(14,843)(7)¥ 3,741

¥
¥

2,049
—
2,049

¥

(1,799)
—
250


(1)

(2)

Include all recognized balances irrespective of whether they are transacted under a master netting agreement or whether Nomura has obtained
sufficient evidence of enforceability of the master netting agreement. Amounts include transactions carried at fair value through election of the fairvalue option. As of March 31, 2023, the gross balance of reverse repurchase agreements and repurchase agreements which were not transacted
under master netting agreements or are documented under master netting agreements for which Nomura has not yet obtained sufficient evidence
of enforceability amounted to ¥883 billion and ¥2,394 billion, respectively. As of March 31, 2023, the gross balance of securities borrowing
transactions and securities lending transactions which were not transacted under master netting agreements or are documented under masternetting agreements for which Nomura has not yet obtained sufficient evidence of enforceability amounted to ¥1,449 billion and ¥137 billion,
respectively. As of September 30, 2023, the gross balance of reverse repurchase agreements and repurchase agreements which were not transacted
under master netting agreements or are documented under master netting agreements for which Nomura has not yet obtained sufficient evidence
of enforceability amounted to ¥865 billion and ¥3,419 billion, respectively. As of September 30, 2023, the gross balance of securities borrowing
transactions and securities lending transactions which were not transacted under master netting agreements or are documented under masternetting agreements for which Nomura has not yet obtained sufficient evidence of enforceability amounted to ¥1,371 billion and ¥167 billion,
respectively.
Represent amounts offset through counterparty netting under master netting or similar agreements for which Nomura has obtained sufficientevidence of enforceability in accordance with ASC 210-20. Amounts offset include transactions carried at fair value through election of the fairvalue option.



F-61

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)


(3)

(4)

Reverse repurchase agreements and securities borrowing transactions are reported within Collateralized agreements—Securities purchased underagreements to resell and Collateralized agreements—Securities borrowed in the consolidated balance sheets, respectively. Repurchase agreements
and securities lending transactions are reported within Collateralized financing—Securities sold under agreements to repurchase andCollateralized financing—Securities loaned in the consolidated balance sheets, respectively. Amounts reported under securities lendingtransactions also include transactions where Nomura lends securities and receives securities that can be sold or pledged as collateral. Nomura
recognizes the securities received at fair value and a liability for the same amount, representing the obligation to return those securities. The
liability is reported within Other liabilities in the consolidated balance sheets.
Represent amounts which are not permitted to be offset on the face of the balance sheet in accordance with ASC 210-20 but which provide
Nomura with the right of offset in the event of counterparty default. Amounts relating to agreements where Nomura has not yet obtained sufficientevidence of enforceability of such offsetting rights are excluded.
For information on offsetting of derivatives, see Note 3 “Derivative instruments and hedging activities.”

Maturity analysis of repurchase agreements and securities lending transactions
The following table presents an analysis of the total carrying value of liabilities recognized in the consolidated balance sheets for repurchaseagreements and securities lending transactions by remaining contractual maturity of the agreement as of March 31, 2023 and September 30, 2023.
Amounts reported are shown prior to counterparty netting in accordance with ASC 210-20.

Repurchase agreements
Securities lending transactions
Total gross recognized liabilities(2)Repurchase agreements
Securities lending transactions
Total gross recognized liabilities(2)Overnight
and open(1)Up to
30 days

Billions of yen
March 31, 2023
30 – 90days
90 days – 1 year

¥ 14,017
1,002¥ 15,019¥16,597
243¥16,840¥2,66355¥2,718Overnight
and open(1)Up to
30 days

Billions of yen
September 30, 2023
30 – 90days
90 days – 1 year

¥ 17,257
1,173¥ 18,430¥17,494
325¥17,819¥4,03067¥4,097

¥
¥

¥
¥

1,357
498
1,855

1,982
484
2,466

Greaterthan 1 year

¥
¥

780
27
807

Greaterthan 1 year

¥
¥

847
—
847

Total

¥35,414
1,825¥37,239

Total¥41,6102,049¥43,659
(1)(2)

Open transactions do not have an explicit contractual maturity date and are terminable on demand by Nomura or the counterparty.
Repurchase agreements and securities lending transactions are reported within Collateralized financing—Securities sold under agreements torepurchase and Collateralized financing—Securities loaned in the consolidated balance sheets, respectively. Amounts reported for securities
lending transactions also include transactions where Nomura lends securities and receives securities that can be sold or pledged as collateral.
Nomura recognizes the securities received at fair value and a liability for the same amount, representing the obligation to return those securities.
The liability is reported within Other liabilities in the consolidated balance sheets. The total gross recognized liabilities reported for repurchaseagreements and securities lending transactions are consistent with the total gross balances reported in the offsetting disclosures above.



F-62

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)Securities transferred in repurchase agreements and securities lending transactions
The following table presents an analysis of the total carrying value of liabilities recognized in the consolidated balance sheets for repurchaseagreements and securities lending transactions by class of securities transferred by Nomura to counterparties as of March 31, 2023 and September 30,
2023. Amounts reported are shown prior to counterparty netting in accordance with ASC 210-20.

Repurchaseagreements

Equities and convertible securities
Japanese government, agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)(1)Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal gross recognized liabilities(2)

¥

251
1,651
28,039
2,639
—
2,657
168
9
¥ 35,414

Billions of yen
March 31, 2023
Securities
lendingtransactions

¥

¥

1,598
0
74
128
—
—
—
25
1,825

Billions of yen
September 30, 2023
Securities
Repurchaselendingagreements
transactions

Equities and convertible securities
Japanese government, agency and municipal securities
Foreign government, agency and municipal securities
Bank and corporate debt securities
Commercial mortgage-backed securities (“CMBS”)
Residential mortgage-backed securities (“RMBS”)(1)Collateralized debt obligations (“CDOs”) and other
Investment trust funds and otherTotal gross recognized liabilities(2)

¥

232
2,645
31,308
2,834
20
4,324
211
36
¥ 41,610

¥

¥

1,670
0
66
177
—
—
—
136
2,049

Total

¥ 1,849
1,651
28,113
2,767
—
2,657
168
34
¥37,239

Total¥ 1,9022,645
31,374
3,011
20
4,324
211
172
¥43,659


(1)

(2)

Includes ¥2,080 billion of U.S. government sponsored agency mortgage pass through securities and collateralized mortgage obligations as ofMarch 31, 2023. Includes ¥3,619 billion of U.S. government sponsored agency mortgage pass through securities and collateralized mortgage
obligations as of September 30, 2023.
Repurchase agreements and securities lending transactions are reported within Collateralized financing—Securities sold under agreements torepurchase and Collateralized financing—Securities loaned in the consolidated balance sheets, respectively. Amounts reported for securities
lending transactions also include transactions where Nomura lends securities and receives securities that can be sold or pledged as collateral.
Nomura recognizes the securities received at fair value and a liability for the same amount, representing the obligation to return those securities.
The liability is reported within Other liabilities in the consolidated balance sheets. The total gross recognized liabilities reported for repurchaseagreements and securities lending transactions are consistent with the total gross balances reported in the offsetting disclosures above.

Collateral received by Nomura
The following table presents the fair value of securities received as collateral, securities borrowed with collateral and securities borrowed without
collateral, which Nomura is permitted to sell or repledge, and the portion that has been sold or repledged as of March 31, 2023 and September 30, 2023.


F-63

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Billions of yen
March 31, 2023
September 30, 2023

The fair value of securities accepted as collateral, primarily through securities borrowed or purchased
under agreement to resell
The portion of the above that has been sold (as reported within Trading liabilities in the consolidatedbalance sheets) or repledged¥

53,857¥59,51038,41743,457

Collateral is generally used for repurchased agreements and other securities financing agreements, to cover short sales and to collateralize
derivatives.
Assets pledged by Nomura
Nomura pledges owned securities and other financial assets to collateralize repurchase transactions, other secured financings and derivativetransactions. Pledged securities that can be sold or repledged by the transferee, including Gensaki Repo transactions, are reported in parentheses as
Assets pledged within Trading assets, Non-trading debt securities, Investments in equity securities and Investments in and advances to affiliatedcompanies in the consolidated balance sheets.
The following table presents the carrying amounts of financial assets recognized in the consolidated balance sheets which have been pledged ascollateral, primarily to stock exchanges and clearing organizations, the secured party does not have the right to sell or repledge them by type of asset asof March 31, 2023 and September 30, 2023.

Millions of yen
March 31, 2023
September 30, 2023

Trading assets:
Equities and convertible securities
Government and government agency securities
Bank and corporate debt securities
Residential mortgage-backed securities (“RMBS”)
Collateralized debt obligations (“CDOs”) and other(1)Investment trust funds and other¥

Non-trading debt securities(2)Investments in and advances to affiliated companies(3)



(1)
(2)
(3)

194,486
1,017,843
55,532
2,527,124
12,383
10,411¥ 3,817,779¥

222,349
1,513,312
49,736
2,704,642
11,37537,8054,539,219

¥
¥

¥
¥

100,457
14,673

106,319
14,023¥

Includes CLOs and ABS such as those secured on credit card loans, auto loans and student loans.
Non-trading debt securities are primarily Japanese municipal securities issued by prefectures or ordinance-designated city.
Investments in and advances to affiliated companies comprise shares in Nomura Research Institute, Ltd.

The following table presents the carrying amount of financial and non-financial assets recognized in the consolidated balance sheets, other thanthose disclosed above, which are subject to lien as of March 31, 2023 and September 30, 2023.

Millions of yen
March 31, 2023
September 30, 2023

Loans and receivables
Trading assets and private equity and debt investments
Office buildings, land, equipment and facilities
Non-trading debt securities
Investments in and advances to affiliated companies
Other

¥

354,508
1,397,669
3,323
107,852
3773¥ 1,864,128¥¥

457,382
1,466,978
3,219
100,697
3
1,044
2,029,323

Assets in the above table were primarily pledged for secured borrowings, including other secured borrowings, collateralized borrowings ofconsolidated VIEs, trading balances of secured borrowings, and derivative transactions.


F-64Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

6. Securitizations and Variable Interest Entities:
Securitizations
Nomura utilizes special purpose entities (“SPEs”) to securitize commercial and residential mortgage loans, government agency and corporate
securities and other types of financial assets. Those SPEs are incorporated as stock companies, Tokumei kumiai (silent partnerships), Cayman special
purpose companies (“SPCs”) or trust accounts. Nomura’s involvement with SPEs includes structuring SPEs, underwriting, distributing and selling debt
instruments and beneficial interests issued by SPEs to investors. Nomura accounts for the transfer of financial assets in accordance with ASC 860. This
statement requires that Nomura accounts for the transfer of financial assets as a sale when Nomura relinquishes control over the assets. ASC 860 deems
control to be relinquished when the following conditions are met: (a) the assets have been isolated from the transferor (even in bankruptcy or otherreceivership), (b) the transferee has the right to pledge or exchange the assets received, or if the transferee is an entity whose sole purpose is to engage insecuritization or asset-backed financing activities, the holders of its beneficial interests have the right to pledge or exchange the beneficial interests, and(c) the transferor has not maintained effective control over the transferred assets. Nomura may retain an interest in the financial assets, including residualinterests in the SPEs. Any such interests are accounted for at fair value and reported within Trading assets in Nomura’s consolidated balance sheets, withthe change in fair value reported within Revenue—Net gain on trading. Fair value for retained interests in securitized financial assets is determined byusing observable prices; or in cases where observable prices are not available for certain retained interests, Nomura estimates fair value based on thepresent value of expected future cash flows using its best estimates of the key assumptions, including forecasted credit losses, prepayment rates, forward
yield curves and discount rates commensurate with the risks involved. Nomura may also enter into derivative transactions in relation to the assets
transferred to an SPE.
As noted above, Nomura may have continuing involvement with SPEs to which Nomura transferred assets. For the six and three months ended
September 30, 2022, Nomura received cash proceeds from SPEs in new securitizations of ¥136 billion and ¥74 billion, respectively, and the associatedgain on sale was immaterial. For the six and three months ended September 30, 2023, Nomura received cash proceeds from SPEs in new securitizationsof ¥235 billion and ¥133 billion, respectively, and the associated gain on sale was immaterial. For the six and three months ended September 30, 2022,
Nomura received debt securities issued by these SPEs with an initial fair value of ¥271 billion and ¥70 billion, respectively, and cash inflows from third
parties on the sale of those debt securities of ¥219 billion and ¥48 billion, respectively. For the six and three months ended September 30, 2023, Nomura
received debt securities issued by these SPEs with an initial fair value of ¥92 billion and ¥29 billion, respectively, and cash inflows from third parties on
the sale of those debt securities of ¥78 billion and ¥16 billion, respectively. The cumulative balance of financial assets transferred to SPEs with which
Nomura has continuing involvement was ¥5,745 billion and ¥5,906 billion as of March 31, 2023 and September 30, 2023, respectively. Thosetransferred financial assets are substantially government, agency and municipal securities. Nomura’s retained interests were ¥168 billion and ¥187
billion, as of March 31, 2023 and September 30, 2023, respectively. For the six and three months ended September 30, 2022, Nomura received cash
flows of ¥13 billion and ¥7 billion, respectively, from the SPEs on the retained interests held in the SPEs. For the six and three months ended
September 30, 2023, Nomura received cash flows of ¥13 billion and ¥6 billion, respectively, from the SPEs on the retained interests held in the SPEs.
Nomura did not provide financial support to SPEs beyond its contractual obligations as of March 31, 2023 and September 30, 2023.


F-65

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following tables present the fair value of retained interests which Nomura has continuing involvement in SPEs and their classification in thefair value hierarchy, categorized by the type of transferred assets.

Billions of yen
March 31, 2023

Government, agency and municipal securities
Bank and corporate debt securities
CMBS and RMBS
Total

Level 1

Level 2

Level 3

Total

¥ —
—
—
¥ —

¥ 161
—
—
¥ 161

¥ —
—
7
¥ 7

¥161
—
7
¥168

Investment
grade

¥

Other

161
—
2
163

¥—
—
5
¥ 5

Investment
grade

Other

¥

Billions of yen
September 30, 2023

Government, agency and municipal securities
Bank and corporate debt securities
CMBS and RMBS
Total

Level 1

Level 2

Level 3

Total

¥ —
—
—
¥ —

¥ 179
—
—
¥ 179

¥ —
—
8
¥ 8

¥179
—
8
¥187

¥

179
—
2
181

¥

¥—
—
6
¥ 6

As of March 31, 2023 and September 30, 2023, predominantly all of the retained interests held by Nomura were valued using significant
observable prices. The initial fair value of these retained interests are mostly level 2 in the fair value hierarchy.
The following table presents the type and carrying value of financial assets included within Trading assets and Loans receivable which have beentransferred to SPEs but which do not meet the criteria for derecognition under ASC 860. These transfers are accounted for as secured financing
transactions and generally reported within Long-term borrowings. The assets are pledged as collateral of the associated liabilities and cannot be removed
unilaterally by Nomura and the liabilities are non-recourse to Nomura.

Billions of yen
March 31, 2023
September 30, 2023

AssetsTrading assets
Japanese government securities
Loans for trading purposes
Loans receivable
Total
Liabilities
Long-term borrowings

¥



F-66

¥

1
25
328
354

¥

¥

1
18
552
571

¥

354

¥

571

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Variable Interest Entities (“VIEs”)
In the normal course of business, Nomura acts as a transferor of financial assets to VIEs, and underwriter, distributor, and seller of repackaged
financial instruments issued by VIEs in connection with its securitization and equity derivative activities. Nomura retains, purchases and sells variableinterests in VIEs in connection with its market-making, investing and structuring activities.
If Nomura has power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and through Nomura’sinterest in the VIE, Nomura has the right to receive benefits or the obligation to absorb losses that could be potentially significant to the VIE, Nomura is
the primary beneficiary of the VIE and must consolidate the entity, provided that Nomura does not act as a fiduciary for other interest holders. Nomura’s
consolidated VIEs include those that were created to market structured securities to investors by repackaging corporate convertible securities, mortgages
and mortgage-backed securities. Certain VIEs used in connection with Nomura’s aircraft leasing business as well as other purposes are consolidated.
Nomura also consolidates certain investment funds for which Nomura is the primary beneficiary.
The power to direct the most significant activities may take a number of different forms in different types of VIEs. For transactions such as
securitizations, investment funds, and CDOs, Nomura generally considers collateral management and servicing to represent the power to make the mostsignificant decisions, unless such roles are deemed to be a fiduciary relationship. Accordingly, Nomura does not consolidate such types of VIEs forwhich it does not act as collateral manager or servicer unless Nomura has the unilateral right to replace the collateral manager or servicer or to requireliquidation of the entity.
For many transactions, such as where VIEs are used for re-securitizations of residential mortgage-backed securities, there are no significant
economic decisions made on an ongoing basis and no single investor has the unilateral ability to liquidate the VIE. In those cases, Nomura focuses its
analysis on the party who has the sole discretion in the initial design of the VIE, and considers factors such as the nature of the underlying assets held by
the VIE, the extent of third party investors’ involvement in the design of the VIE, the size of initial third party investment and the amount and level ofany subordination of beneficial interests issued by the VIE which will be held by Nomura and any third party investors. Nomura has sponsorednumerous re-securitization transactions and in many cases has determined that it is not the primary beneficiary on the basis that power to direct the mostsignificant activities relating to these entities are shared with third party investors. Nomura has consolidated certain VIEs where it was determined thatthird party investors were not involved in the design of the VIEs, including where the size of third party investment was insignificant at inception of thetransaction.


F-67

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following table presents the classification of consolidated VIEs’ assets and liabilities in these consolidated financial statements as ofMarch 31, 2023 and September 30, 2023. Most of these assets and liabilities are related to consolidated VIEs which securitize corporate convertible
securities, mortgages and mortgage-backed securities. The assets of a consolidated VIE may only be used to settle obligations of that VIE. Creditors do
not typically have any recourse to Nomura.

Billions of yen
March 31, 2023
September 30, 2023

Consolidated VIE assets
Cash and cash equivalents
Trading assets
Equities
Debt securities
CMBS and RMBS
Derivatives
Private equity and debt investments
Office buildings, land, equipment and facilities
Other
Total
Consolidated VIE liabilities
Trading liabilities
Derivatives
Borrowings
Short-term borrowings
Long-term borrowings
Other
Total

¥

23

¥

11

¥

491
491
27
0
35
49
78
1,194

¥

502
584
23
1
45
31
84
1,281

¥

0

¥

0

¥

94
793
5
892

¥

123
811
5
939

On a quarterly basis, Nomura reassesses its involvement with the VIEs and evaluates the impact of any changes in governing documents and/or
variable interests held by Nomura and other parties.
Nomura also holds variable interests in VIEs where Nomura is not the primary beneficiary. Nomura’s variable interests in such VIEs include
senior and subordinated debt, residual interests, and equity interests associated with commercial and residential mortgage-backed and other asset-backed
securitizations and structured financings, equity interests in VIEs which were formed primarily to acquire high yield leveraged loans and other lower
investment grade debt obligations, residual interests in operating leases for aircraft held by VIEs, and loans and investments in VIEs that acquire
operating businesses.
F-68Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following tables present the carrying amount of variable interests of unconsolidated VIEs and maximum exposure to loss associated withthese variable interests. Maximum exposure to loss does not reflect Nomura’s estimate of the actual losses that could result from adverse changes, nordoes it reflect the economic hedges Nomura enters into to reduce its exposure. The risks associated with VIEs in which Nomura is involved are limited
to the amount recorded in the consolidated balance sheets and the amount of any undrawn commitments and financial guarantees issued.

Billions of yen
March 31, 2023
Carrying amount ofMaximum exposure
variable interests
to loss toAssetsLiabilities
unconsolidated VIEs

Trading assets and liabilities
Equities
Debt securities
CMBS and RMBS
Investment trust funds and other
Private equity and debt investments
Loans
Other
Commitments to extend credit and other guarantees
Total

¥

18
64
3,376
164
21
936
3
—
¥4,582

¥

¥

—
—
—
—
—
—
—
—
—

¥

¥

18
64
3,376
164
21
936
3
196
4,778

Billions of yen
September 30, 2023
Carrying amount ofMaximum exposure
variable interests
to loss toAssetsLiabilities
unconsolidated VIEs

Trading assets and liabilities
Equities
Debt securities
CMBS and RMBS
Investment trust funds and other
Private equity and debt investments
Loans
Other
Commitments to extend credit and other guarantees
Total

¥

24
87
3,213
169
24
1,243
3
—
¥4,763

¥

¥

—
—
—
—
—
—
—
—
—

The above does not include certain repurchase agreement financings provided to third parties or Nomura sponsored VIEs.


F-69

¥

¥

24
87
3,213
169
24
1,243
3
311
5,074

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

7. Financing receivables:
In the normal course of business, Nomura extends financing to clients primarily in the form of loan receivables, loan commitments andcollateralized agreements such as reverse repurchase agreements and securities borrowing transactions.
These financing receivables are recognized as assets on Nomura’s consolidated balance sheets at fair value or on amortized cost basis and provide
a contractual right to receive money either on demand or on future fixed or determinable dates.
The carrying value of financing receivables measured on an amortized cost basis is adjusted for allowances for current expected credit losses
defined by ASC 326 “Financial Instruments—Credit Losses” (“ASC 326”) where appropriate. Allowances for current expected credit losses against
recognized financial instruments are reported in the consolidated balance sheets within Allowance for credit losses.
Collateralized agreements
Collateralized agreements consist of reverse repurchase agreements reported as Securities purchased under agreements to resell and securities
borrowing transactions reported as Securities borrowed in the consolidated balance sheets, including those executed under Gensaki Repo agreements.
Reverse repurchase agreements and securities borrowing transactions principally involve the buying of government and government agency securities
from customers under agreements that also require Nomura to resell these securities to those customers, or borrowing these securities with cash and noncash collateral. Nomura monitors the value of the underlying securities on a daily basis to the related receivables, including accrued interest, andrequests or returns additional collateral when appropriate. Except for those where we apply the fair value option, reverse repurchase agreements are
generally recognized in the consolidated balance sheets at the purchase price of the securities with applicable accrued interest. Securities borrowing
transactions are generally recognized in the consolidated balance sheets at the amount of cash collateral advanced. Allowances for current expectedcredit losses against collateralized agreements are not significant either because of application of practical expedients permitted by ASC 326 based on
the collateralization requirements and ongoing monitoring of the collateral levels or the short expected life of the financial instruments.
See Note 5 “Collateralized transactions” for more information about the financial instruments.
Loans receivable
The key types of loans receivable recognized by Nomura are loans at banks, short-term secured margin loans, inter-bank money market loans andcorporate loans.
Loans at banks include both retail and commercial secured loans and traditional unsecured loans mainly extended by Nomura Trust & Banking
Co., Ltd. Where retail and commercial loans are secured by real estate or securities, Nomura is exposed to the risk of a decline in the value of theunderlying collateral. Loans at banks also include unsecured commercial loans provided to investment banking clients for relationship purposes. For
unsecured commercial loans, Nomura is exposed to risk of default of the counterparty, although these counterparties usually have high or good credit
ratings. Where loans are secured by guarantees, Nomura is also exposed to the risk of default by the guarantor.
Short-term secured margin loans are margin loans provided to clients in connection with securities brokerage business in retail and wealthmanagement services. These loans provide funding for clients in order to purchase securities. Nomura requests initial margin in the form of acceptablesecurities or deposits against these loans and holds the purchased securities as collateral through the life of the loans. If the value of the securities
declines by more than specified amounts, Nomura can make additional frequent margin calls in order to maintain a specified loan-to-value (“LTV”)
ratio. These clients are required and reasonably expected to continue to replenish the amount of collateral as required by Nomura. Allowances for
current expected credit losses against short-term secured margin loans are therefore usually not significant.
Inter-bank money market loans are loans to financial institutions in the inter-bank money market, where overnight and intra-day financings aretraded through money market dealers. The risk to Nomura of making these loans is limited as only qualified financial institutions can participate in thesemarkets and these loans are usually overnight or short-term in nature. Allowances for current expected credit losses against inter-bank money market
loans are therefore usually not significant.


F-70

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Corporate loans are primarily commercial loans provided to corporate clients excluding those classified as Loans at banks. Corporate loans
include loans secured by real estate or securities, unsecured commercial loans provided to investment banking clients for relationship purposes. The risk
to Nomura of making these loans is similar to those risks arising from commercial loans reported in loans at banks.
The following tables present a summary of loans receivable reported within Loans and receivables or Investments in and advances to affiliatedcompanies in the consolidated balance sheets as of March 31, 2023, and September 30, 2023 by portfolio segment.

Millions of yen
March 31, 2023
Carried at
Carried atamortized costfair value(1)Loans receivables
Loans at banks
Short-term secured margin loans
Inter-bank money market loans
Corporate loans
Total loans receivables
Advances to affiliated companies
Total

Total

¥

802,595
457,273—
1,103,869¥ 2,363,737

¥

—
—
—
1,650,115¥1,650,115¥ 802,595
457,273—2,753,984¥4,013,852

4,000¥ 2,367,737—¥1,650,115

4,000¥4,017,852

Millions of yen
September 30, 2023
Carried at
Carried atamortized costfair value(1)Loans receivables
Loans at banks
Short-term secured margin loans
Inter-bank money market loans
Corporate loans
Total loans receivables
Advances to affiliated companies
Total

Total

¥

840,707542,026—
1,433,855¥ 2,816,588

¥

—
—
—
1,908,000¥1,908,000¥ 840,707
542,026—
3,341,855¥4,724,588

8,014¥ 2,824,602

298¥1,908,298

8,312¥4,732,900(1)Includes loans receivable and loan commitments carried at fair value through election of the fair value option.
There were no significant purchases or sales of loans receivable during the six months ended September 30, 2022 and 2023, respectively.

There were also no significant reclassifications of loans receivable to or from trading assets during the six months ended September 30, 2022 and2023, respectively.
Net unamortized deferred fees and costs related to loans receivable carried at amortized cost were not significant as of March 31, 2023 andSeptember 30, 2023.


F-71

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Allowances for current expected credit losses
Management has established allowances for current expected credit losses using the current expected credit losses impairment model (“CECL
impairment model”) against the following types of financial instruments, including financing receivables, which are not measured at fair value on arecurring basis, to reflect the net amount Nomura expects to collect:•

Loans receivable and written unfunded loan commitments;•

Cash deposits;•

Collateralized agreements such as reverse repos and securities borrowing transactions;•Customer contract assets and receivables; and•Other receivables including margin receivables, security deposits, default fund contributions to central clearing counterparties and net
investments in finance leases.






Current expected credit losses for an individual or portfolio of financial instrument are measured at each Nomura reporting date based on expectedcredit losses over the remaining expected life of the financial instruments that consider forecast of future economic conditions in addition to information
about past events and current conditions. Key macroeconomic inputs to our weighted average forecasts of three years include GDP and credit spreads.
The risk of loss is considered, even when that risk of loss is remote. While management has based its estimate of the allowances for current expectedcredit losses on the best information available, future adjustments to the allowances may be necessary as a result of changes in the economic
environment or variances between actual results and original assumptions.
Nomura has elected to exclude accrued interest receivable from the amortized cost basis of financial instruments used to measure expected credit
losses. The amount of accrued interest receivable as of March 31, 2023 and September 30, 2023 was not significant.
The methodology used by Nomura to determine allowances for current expected credit losses in accordance with the CECL impairment modelprimarily depends on the nature of the financial instrument and whether certain practical expedients permitted by ASC 326 are applied by Nomura.
Financial instruments subject to the CECL impairment model are written off when Nomura has deemed the loan or receivable as uncollectible,
namely management believes there is no reasonable expectation of collecting future contractual cash flows and all commercially reasonable means ofrecovering outstanding principal and interest balances have been exhausted.


F-72

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following table summarizes the methodology used for each significant type of financial instrument subject to the CECL impairment modeland the key assumptions used which have impacted the measurement of current expected credit losses during the six months ended September 30, 2023.

Methodology to determine current expected credit losses

Financial instrument

Loans, written loan commitments andcertain deposits

Collateralized agreements, short-term
secured margin loans and cash prime
brokerage loans

Customer contract assets and receivables•

Full loss rate model developed by Nomura’s Risk department•

Measures expected credit losses based on probability of default (PD), Loss Given Default (LGD) andExposure at Default (EAD) inputs.

•

PD inputs incorporate forward-looking scenarios used by Nomura for internal risk management andcapital purposes.

•

Immediate reversion method used for periods beyond which reasonable and supportable forecast is notavailable.

•

For financial instruments which have defaulted or are probable of defaulting, expected credit losses
measured using discounted cash flow analyses or, where the financial instrument is collateraldependent, based on any shortfall of fair value of the underlying collateral.

•

For reverse repos and short-term secured margin loans and cash prime brokerage loans where frequentmargining is required and the counterparty has ability to replenish margin, as permitted by a practical
expedient provided by ASC 326 expected credit losses are limited to difference between carrying valueof the reverse repo or margin loan and fair value of underlying collateral.

•

Securities borrowing transactions typically have very short expected lives and are collateralized andtherefore expected credit losses are generally determined qualitatively to be insignificant based on
historical experience and consistent monitoring of collateral.

•

Expected credit losses typically based on aging analysis where loss rates are applied to the carrying
value based on historical experience, the current economic climate and specific information about theability of the client to pay.



F-73

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following tables present changes in the allowances for current expected credit losses for the six and three months ended September 30, 2022
and 2023 as determined using the CECL impairment model defined by ASC 326.

Opening balance
Provision for credit losses
Written-offs
Other(2)Ending balance

Millions of yen
Six months ended September 30, 2022
Allowances for current expected credit losses against loans
Allowances
Short-term
againstsecuredreceivablesLoansmarginCorporateother thanat banks
loans
loans
Subtotalloans(1)Totalallowances for
current
expected
credit losses¥¥

2,434 ¥
672
(1,523)(417)¥ 1,166 ¥

—
—
—
—
—

¥

¥

62,353 ¥ 64,787 ¥
1,372
2,044
(2,552)(4,075)
7,981
7,564
69,154 ¥ 70,320 ¥

1,559
15
—
262
1,836

Millions of yen
Six months ended September 30, 2023
Allowances for current expected credit losses against loans
Allowances
Short-term
againstsecuredreceivablesLoansmarginCorporateother than
loans
loans
Subtotal
at banks
loans(1)Opening balance
Provision for credit losses
Written-offs
Other(2)Ending balance¥¥

1,126 ¥
—
—
(377)
749 ¥

—
—
—
—
—

¥

¥

2,930 ¥
537
(386)
226
3,307 ¥

4,056 ¥
537
(386)
(151)
4,056 ¥¥

3,016 ¥
90
(1,523)(417)¥ 1,166 ¥



F-74

—
—
—
—
—

¥

¥

65,242 ¥ 68,258 ¥
156
246
(82)
(1,605)
3,838
3,421
69,154 ¥ 70,320 ¥Total
allowances for
current
expected
credit losses

1,776 ¥
14—
(65)
1,725 ¥

Millions of yen
Three months ended September 30, 2022
Allowances for current expected credit losses against loans
Short-term
Allowances forsecuredreceivablesLoansmarginCorporateother than
loans
loans
Subtotal
at banks
loans(1)Opening balance
Provision for credit losses
Written-offs
Other(2)Ending balance¥

66,346
2,059(4,075)
7,826
72,156

5,832
551
(386)
(216)
5,781

Total
allowances for
current
expected
credit losses

1,842 ¥
(13)—
7
1,836 ¥

70,100233(1,605)
3,428
72,156

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
Three months ended September 30, 2023
Allowances for current expected credit losses against loans
Short-term
Allowances forsecuredreceivablesLoansmarginCorporateother thanat banks
loans
loans
Subtotalloans(1)Opening balance
Provision for credit losses
Written-offs
Other(2)Ending balance¥¥

1,126 ¥
—
—
(377)
749 ¥

—
—
—
—
—

¥

¥

3,083 ¥
262
(10)
(28)
3,307 ¥

4,209 ¥
262
(10)
(405)
4,056 ¥

Total
allowances for
current
expected
credit losses

1,739 ¥
12—
(26)
1,725 ¥

5,948
274
(10)
(431)
5,781


(1)
(2)

Includes amounts recognized against collateralized agreements, customer contract assets and receivables and other receivables.
Primarily includes the effect of recoveries collected and foreign exchange movements.
Modifications of loans from debtors experiencing financial difficulty

In the ordinary course of business, Nomura may choose to modify loans classified as held for investment either because of financial difficulties ofthe debtor, or simply as a result of market conditions or relationship reasons. Nomura adopted ASU 2022-02 “Financial instruments – Credit losses(Topic 326): Troubled debt restructurings and vintage disclosures” on April 1, 2023 as discussed in Note 1. The adoption of the ASU eliminated therecognition and measurement guidance for trouble debt restructurings (TDRs) and related disclosure requirements, and added new disclosures for thefinancial effect and subsequent performance of certain types of modifications of loans for debtors experiencing financial difficulty. These modifications
occur when Nomura (as lender) for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor including, but
not limited to, interest rate reductions, term extensions, other-than-insignificant payment delays and principal forgiveness that would not otherwise havebeen required under the terms of the original agreement.
Expected credit losses for certain loans being modified which only involve modification of the loan’s terms (rather than receipt of assets in full or
partial satisfaction) are typically determined using a discounted cash flow analysis. Assets received in full or partial satisfaction of loans from debtors
experiencing financial difficulty are recognized at fair value.
The amounts of modifications of loans from debtors experiencing financial difficulty which occurred during the six months ended September 30,
2023 were not significant.
Prior to April 1, 2023, modifications of loans where the borrower is deemed to be in financial difficulty and Nomura has granted, or is expected to
grant, a financial concession that Nomura would not otherwise consider were accounted for and reported as a TDRs. For the six months ended
September 30, 2022, the amounts of modification or restructuring of loans classified as TDRs were not significant.


F-75

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Nonaccrual and past due loans
Loans are placed on a nonaccrual status if interest is deemed uncollectible. Nomura policy is to define interest as being uncollectible if theborrower is determined to be in financial difficulty or an interest or principal payment on the loans is 90 days or more past due.
Where a loan is placed on a nonaccrual status, any accrued but unpaid interest receivable reversed and no further accrual of interest is permitted.
Interest income is subsequent recognized when a cash payment is received from the borrower using the cash basis method.
Generally, loans are only returned to an accrual status if the loan is brought contractually current, i.e., all overdue principal and interest amounts
are paid. In limited circumstances, a loan which has not been brought contractually current will also be returned to an accrual status if all principal andinterest amounts contractually due are reasonably assured of repayment within a reasonable period of time or there has been a sustained period of
repayment performance by the borrower.
As of March 31, 2023, there were ¥16,417 million of loans which were placed on a nonaccrual status, primarily secured corporate loans.
Corporate loans on a nonaccrual status as of March 31, 2023 include ¥14,233 million of loans which did not recognize allowances for current expectedcredit losses due to fair value of the collateral being in excess of the value of the loan. The amount of loans which were 90 days past due but were not on
a nonaccrual status was not significant.
As of September 30, 2023, there were ¥2,450 million of loans which were placed on a nonaccrual status, primarily secured corporate loans.
Corporate loans on a nonaccrual status which did not recognize allowances for current expected credit losses due to fair value of the collateral being inexcess of the value of the loan was not significant. The amount of loans which were 90 days past due but were not on a nonaccrual status was not
significant.
Credit quality indicators
Nomura is exposed to credit risks due to a decline in the value of loans or a default caused by deterioration of creditworthiness or bankruptcy ofthe borrower. Nomura’s risk management framework for such credit risks is based on a risk assessment through an internal rating process, in depth prefinancing credit analysis of each individual loan and continuous post-financing monitoring of the borrower’s creditworthiness.
The following tables present an analysis of each class of loans not carried at fair value using Nomura’s internal ratings or equivalent credit quality
indicators applied by subsidiaries by years of origination as of March 31, 2023 and September 30, 2023. The amounts of write offs during the six
months ended September 30, 2023 were not significant.


F-76

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
March 31, 2023
2023

Secured loans at banks:
AAA-BBB
BB-CCC
CC-D
Others(1)Total secured loans at banks
Unsecured loans at banks:
AAA-BBB
BB-CCC
CC-D
OthersTotal unsecured loans at banks
Short-term secured margin loans:
AAA-BBB
BB-CCC
CC-D
Others(1)Total short-term secured margin loans
Unsecured inter-bank money market loans:
AAA-BBB
BB-CCC
CC-D
OthersTotal unsecured inter-bank money market loans
Secured corporate loans:
AAA-BBB
BB-CCC
CC-D
Others(1)Total secured corporate loans

2022

2021

2020

2018 orearlier

2019

Revolving

Total¥104,543 ¥152,888 ¥ 5,960 ¥ 8,050 ¥14,817 ¥ 16,047 ¥
117,680 199,696
—
1,642
415
2,395
—
—
—
—
—
—
55,84245,404————¥278,065 ¥397,988 ¥ 5,960 ¥ 9,692 ¥15,232 ¥ 18,442 ¥

—
—
—
—
—

¥ 302,305
321,828—
101,246¥ 725,379

¥

—
—
—
—
—

¥

4,673 ¥ 9,297 ¥ 9,169 ¥ 9,513 ¥11,036 ¥ 25,806 ¥
—
—
1,000
3,370
1,692
1,660
—
—
—
—
—
—
—
—
—
—
—
—
¥ 4,673 ¥ 9,297 ¥ 10,169 ¥ 12,883 ¥12,728 ¥ 27,466 ¥

¥

— ¥
— ¥
—
—
—
—
217,767
2,081¥217,767 ¥ 2,081 ¥

—
—
—
—
—

¥

¥

—
—
—
—
—

¥

¥

—
—
—
—
—

¥

¥

¥

—
—
—
—
—

¥

¥

¥

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

¥

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

¥

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

¥

69,494
7,722——
77,216

— ¥
—
—
—
—
—
237,425457,273¥237,425 ¥ 457,273

¥

—
—
—
—
—

¥

¥

—
—
—
—
—

9,132 ¥433,330 ¥184,579 ¥169,393 ¥20,423 ¥— ¥ 10,392 ¥ 827,249
598
8,242
7,322
14,954 23,811
20,791
69,260144,978
—
—
—
—
—
—
—
—
1,550
458
—
—
2
—
119
2,129
¥ 11,280 ¥442,030 ¥191,901 ¥184,347 ¥44,236 ¥ 20,791 ¥ 79,771 ¥ 974,356



F-77

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
March 31, 2023
2023

Unsecured corporate loans:
AAA-BBB
BB-CCC
CC-D
OthersTotal unsecured corporate loans
Advances to affiliated companies
AAA-BBB
BB-CCC
CC-D
OthersTotal advances to affiliated companies
Total

¥

¥

2022

— ¥
—
—
200
200 ¥

— ¥
—
—
3
3 ¥

¥

— ¥
—
—
472
472 ¥

2020

2019

2018 orearlier

Revolving— ¥ — ¥
— ¥
—
—
—
—
2,184
—
166
—
126,488166 ¥ 2,184 ¥126,488 ¥

—
—
—
—
—

Total

¥

—
—
2,184
127,329¥ 129,513— ¥ 3,000 ¥ 1,000 ¥— ¥ — ¥
— ¥
— ¥
4,000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
¥
— ¥ 3,000 ¥ 1,000 ¥— ¥ — ¥
— ¥
— ¥
4,000
¥511,985 ¥854,399 ¥209,502 ¥207,088 ¥74,380 ¥193,187 ¥317,196 ¥2,367,737


(1)

2021

Relate to collateralized exposures where a specified ratio of LTV is maintained.



F-78

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
September 30, 2023
2023

Secured loans at banks:
AAA-BBB
BB-CCC
CC-D
Others(1)Total secured loans at banks
Unsecured loans at banks:
AAA-BBB
BB-CCC
CC-D
OthersTotal unsecured loans at banks
Short-term secured margin loans:
AAA-BBB
BB-CCC
CC-D
Others(1)Total short-term secured margin loans
Unsecured inter-bank money market loans:
AAA-BBB
BB-CCC
CC-D
OthersTotal unsecured inter-bank money market loans
Secured corporate loans:
AAA-BBB
BB-CCC
CC-D
Others(1)Total secured corporate loans

2022

2021

2020

2018 orearlier

2019

Revolving

Total¥220,003 ¥ 83,534 ¥ 5,810 ¥ 4,100 ¥14,962 ¥ 14,347 ¥
241,935
64,946
—
1,718
—
1,935
—
—
—
—
—
—
115,596—————¥577,534 ¥148,480 ¥ 5,810 ¥ 5,818 ¥14,962 ¥ 16,282 ¥

—
—
—
—
—

¥ 342,756
310,534—
115,596¥ 768,886¥ 10,867 ¥ 3,928 ¥ 8,774 ¥ 9,264 ¥10,734 ¥ 22,032 ¥
1,556
—
1,000
733
2,233
700
—
—
—
—
—
—
—
—
—
—
—
—
¥ 12,423 ¥ 3,928 ¥ 9,774 ¥ 9,997 ¥12,967 ¥ 22,732 ¥

—
—
—
—
—

¥

¥

— ¥
— ¥
—
—
—
—
255,7632,067¥255,763 ¥ 2,067 ¥

—
—
—
—
—

¥

¥

—
—
—
—
—

¥

¥

—
—
—
—
—

¥

¥

—
—
—
—
—

¥

¥

¥

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

¥

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

¥

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

¥

65,5996,222——
71,821

— ¥
—
—
—
—
—
284,196542,026¥284,196 ¥ 542,026

¥

—
—
—
—
—

¥

¥

—
—
—
—
—

¥190,714 ¥177,565 ¥ 70,811 ¥137,399 ¥28,391 ¥ 13,313 ¥501,982 ¥1,120,175
10,308
10,886
4,829
22,475
7,891
1,605 104,329
162,323
—
—
—
—
—
—
—
—
4,342
—
—
—
1,176
—
451
5,969
¥205,364 ¥188,451 ¥ 75,640 ¥159,874 ¥37,458 ¥ 14,918 ¥606,762 ¥1,288,467



F-79

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
September 30, 2023
2023

Unsecured corporate loans:
AAA-BBB
BB-CCC
CC-D
OthersTotal unsecured corporate loans
Advances to affiliated companies
AAA-BBB
BB-CCC
CC-D
OthersTotal advances to affiliated companies
Total

¥

¥

2022

— ¥
—
—
340
340 ¥

—
—
—
—
—

¥

¥

¥

— ¥
—
—
530
530 ¥

2020

2019

2018 orearlier

Revolving— ¥ — ¥
— ¥
—
—
—
—
2,450
—
187
—
141,881187 ¥ 2,450 ¥141,881 ¥

—
—
—
—
—

Total

¥

—
—
2,450
142,938¥ 145,388

4,014 ¥ 3,000 ¥ 1,000 ¥— ¥ — ¥
— ¥
— ¥
8,014
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
¥
4,014 ¥ 3,000 ¥ 1,000 ¥— ¥ — ¥
— ¥
— ¥
8,014
¥1,055,438 ¥345,926 ¥92,754 ¥175,876 ¥67,837 ¥195,813 ¥890,958 ¥2,824,602


(1)

2021

Relate to collateralized exposures where a specified ratio of LTV is maintained.



F-80

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following table presents a definition of each of the internal ratings used in the Nomura Group.


Rating Range

Definition

AAA

Highest credit quality. An obligor or facility has extremely strong capacity to meet its financial commitments. ‘AAA range’ is the highest
credit rating assigned by Nomura. Extremely low probability of default.

AA

Very high credit quality category. An obligor or facility has very strong capacity to meet its financial commitments. Very low probabilityof default but above that of ‘AAA range.’

A

High credit quality category. An obligor or facility has strong capacity to meet its financial commitments but is somewhat more
susceptible to the adverse effects of changes in circumstances and economic conditions than those in higher-rated categories. Low
probability of default but higher than that of ‘AA range.’

BBB

Good credit quality category. An obligor or facility has adequate capacity to meet its financial commitments. However, adverse economic
conditions or changing circumstances are more likely to lead to a weakened capacity to meet its financial commitments. Medium
probability of default but higher than that of ‘A range.’

BB

Speculative credit quality category. An obligor or facility is less vulnerable in the near term than other lower-ratings. However, it faces
major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the inadequate
capacity to meet its financial commitments. Medium to high probability of default but higher than that of ‘BBB range.’

B

Highly speculative credit quality category. An obligor or facility is more vulnerable than those rated ‘BB range’, but the obligor currently
has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the issuer’s orobligor’s capacity or willingness to meet its financial commitments. High probability of default—more than that of ‘BB range.’

CCC

Substantial credit risk. An obligor or facility is currently vulnerable, and is dependent upon favorable business, financial, and economic
conditions to meet its financial commitments. Strong probability of default – more than that of ‘B range.’CC

Default category. An obligor or facility is currently highly vulnerable to nonpayment.

C

Default category. An obligor or facility is currently extremely vulnerable to nonpayment.

D

Failure of an obligor to make payments in full and on time of any financial obligations, markedly disadvantageous modification to acontractual term compared with the existing obligation, bankruptcy filings, administration, receivership, liquidation or other winding-up
or cessation of business of an obligor or other similar situations.

Nomura reviews internal ratings at least once a year by using available credit information of obligors including financial statements and otherinformation. Internal ratings are also reviewed more frequently for high-risk obligors or problematic exposures and any significant credit event of
obligors will trigger an immediate credit review process.


F-81

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

8. Leases:
Nomura as lessor
Nomura leases office buildings and aircrafts in Japan and overseas either as head lessor or through subleases. These leases and subleases areprimarily classified as operating leases. The related assets are stated at cost, net of accumulated depreciation, except for land, which is stated at cost in
the consolidated balance sheets and reported within Other assets—Office buildings, land, equipment and facilities.
The following table presents the types of assets which Nomura leases under operating leases as of March 31, 2023 and September 30, 2023.


Cost

Real estate(1)Aircraft
Total

¥

21
49,472¥49,493

Millions of yen
March 31, 2023
Accumulated
Net carrying
depreciation
amount
Cost

September 30, 2023
Accumulated
Net carrying
depreciation
amount

¥

¥

¥

—
(741)
(741)

¥
¥

21
48,731
48,752¥21
31,402¥31,423

—
(816)
(816)

¥

¥
¥

21
30,58630,607(1)

Cost, accumulated depreciation and net carrying amounts include amounts relating to real estate utilized by Nomura.

Nomura recognized lease income of ¥409 million and ¥249 million for the six and three months ended September 30, 2022, respectively, and¥1,400 million and ¥627 million for the six and three months ended September 30, 2023, respectively. These are included in the consolidated statements
of income within Revenue—Other.
The following table presents an analysis of future undiscounted lease payments receivable in connection with noncancellable operating leases
entered into by Nomura as lessor over the remaining lease term as of September 30, 2023. Amounts in connection with finance leases were notsignificant.

Millions of yen
September 30, 2023
Minimum lease payments
to be received

Years of receipt
Less than 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
More than 5 years
Total

¥

¥



F-82

3,829
3,829
3,829
3,829
3,829
10,26029,405

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

9. Other assets—Other / Other liabilities:
The following table presents components of Other assets—Other and Other liabilities in the consolidated balance sheets as of March 31, 2023 andas of September 30, 2023.

Millions of yen
March 31,
September 30,
2023
2023

Other assets—Other:
Securities received as collateral
Goodwill and other intangible assets
Deferred tax assets
Investments in equity securities for other than operating purposes(1)Deposit receivables(2)Prepaid expenses
Other
Total

¥ 268,591
36,194
22,645249,865
298,705
19,727
118,980¥1,014,707

309,466
40,92718,026
261,169
269,834
29,01686,225¥ 1,014,663

Other liabilities:
Obligation to return securities received as collateral
Accrued income taxes
Other accrued expenses and provisions
Operating lease liabilities
Other
Total

¥ 268,591
42,254479,491
193,883
191,302¥1,175,521¥¥

309,466
46,959484,410200,262
178,061¥ 1,219,158


(1)
(2)

Includes equity securities without a readily determinable fair value of ¥65,365 million as of March 31, 2023 and as of September 30, 2023
respectively.
Includes Japan Securities Clearing Corporation’s clearing fund.



F-83

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

10. Earnings per share:
A reconciliation of the amounts and the numbers used in the calculation of net income attributable to NHI shareholders per share (basic anddiluted) is as follows:Millions of yen
except per share data
presented in yen
Six months ended September 30
2022
2023

Basic—Net income attributable to NHI shareholders
Weighted average number of shares outstanding
Net income attributable to NHI shareholders per share
Diluted—
Net income attributable to NHI shareholders
Weighted average number of shares outstanding
Net income attributable to NHI shareholders per share¥
18,4673,010,633,495
¥
6.13

¥
58,563
3,028,036,425
¥
19.34

¥
18,354
3,104,874,653
¥
5.91

¥
58,4683,140,207,716¥
18.62

Millions of yen
except per share data
presented in yen
Three months ended September 30
2022
2023

Basic—Net income attributable to NHI shareholders
Weighted average number of shares outstanding
Net income attributable to NHI shareholders per share
Diluted—
Net income attributable to NHI shareholders
Weighted average number of shares outstanding
Net income attributable to NHI shareholders per share¥
16,7713,001,728,417
¥
5.59

¥
35,232
3,035,142,936
¥
11.61

¥
16,7383,093,327,844
¥
5.41

¥
35,202
3,140,174,302¥
11.21

Net income attributable to NHI shareholders is adjusted to reflect the decline in Nomura’s equity share of earnings of subsidiaries and affiliates forthe six and the three months ended September 30, 2022 and 2023, arising from options to purchase common shares issued by subsidiaries and affiliates.
The weighted average number of shares used in the calculation of diluted earnings per share (“EPS”) reflects the increase in potential issuance ofcommon shares arising from stock-based compensation plans issued by the Company and affiliates, which would have minimal impact on EPS for thesix and three months ended September 30, 2022 and 2023.
Antidilutive stock options and other stock-based compensation plans to purchase 9,712,800 common shares were not included in the computationof diluted EPS for the six and the three months ended September 30, 2022. Antidilutive stock-options and other stock-based compensation plans topurchase 6,940,000 and 4,691,700 common shares were not included in the computation of diluted EPS for the six and the three months ended
September 30, 2023, respectively.


F-84

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

11. Employee benefit plans:
Nomura provides various pension plans and other post-employment benefits which cover certain employees worldwide. In addition, Nomura
provides health care benefits to certain active and retired employees through its Nomura Securities Health Insurance Society.
Net periodic benefit cost
The net periodic benefit cost of the defined benefit plans of Japanese entities includes the following components.

Millions of yen
Six months ended September 30
2022
2023

Service cost
Interest cost
Expected return on plan assets
Amortization of net actuarial losses
Amortization of prior service cost
Net periodic benefit cost¥

3,199 ¥
1,216
(2,984)
1,909(803)
2,537 ¥

¥

3,014
1,742
(2,829)
1,403
(802)
2,528

Millions of yen
Three months ended September 30
2022
2023

Service cost
Interest cost
Expected return on plan assets
Amortization of net actuarial losses
Amortization of prior service cost
Net periodic benefit cost¥¥

Nomura also recognized net periodic benefit cost of plans other than Japanese entities’ plans, which are not significant.
F-85

1,600 ¥
608
(1,492)954(401)
1,269 ¥

1,507
871
(1,414)
701
(401)
1,264

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

12. Income taxes:
For the six months ended September 30, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 60.3%
was mainly due to an increase in valuation allowances, while non-taxable revenues decreased the effective tax rate.
For the three months ended September 30, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 46.8%
was mainly due to an increase in valuation allowances, while different tax rate applicable to income (loss) of foreign subsidiaries decreased the effective
tax rate.
For the six months ended September 30, 2023, the difference between the effective statutory tax rate of 31% and the effective tax rate of 40.3%
was mainly due to non-deductible expenses, while non-taxable revenues decreased the effective tax rate.
For the three months ended September 30, 2023, the difference between the effective statutory tax rate of 31% and the effective tax rate of 37.3%
was mainly due to non-deductible expenses, while non-taxable revenues decreased the effective tax rate.
F-86

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

13. Other comprehensive income (loss):
Changes in accumulated other comprehensive income (loss) are as follows:Balance at
beginningof year

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total

Millions of yen
Six months ended September 30, 2022
Other
comprehensive Reclassifications out of
Net change
income (loss)
accumulated otherduring thebeforecomprehensive(1)
periodreclassifications
income (loss)¥ 136,912 ¥(43,803)
34,864¥ 127,973 ¥

210,319505
52,595
263,419

¥

—
867
231
1,098

210,319
1,372
52,826
264,517¥ 347,231(42,431)
87,690¥ 392,490

Millions of yen
Six months ended September 30, 2023
Other
comprehensive Reclassifications out of
Net change
income (loss)
accumulated otherduring thebeforecomprehensive
periodreclassifications
income (loss)(1)

Balance at
end of period¥¥

Balance at
end of period

¥


(1)

Reclassifications out of accumulated other comprehensive income (loss) were not significant.

Balance at
beginningof year

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total¥ 242,767 ¥(32,174)
107,861¥ 318,454 ¥

171,562 ¥348(48,033)
123,877 ¥6 ¥ 171,568 ¥ 414,335
421
769(31,405)(196)(48,229)59,632231 ¥ 124,108 ¥ 442,562

(1)Reclassifications out of accumulated other comprehensive income (loss) were not significant.

Balance at
beginningof period

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total

Millions of yen
Three months ended September 30, 2022
Other
comprehensive Reclassifications out of
Net change
income (loss)
accumulated otherduring thebeforecomprehensive(1)
periodreclassifications
income (loss)¥ 279,364 ¥(43,017)58,290¥ 294,637 ¥

67,867217
29,477
97,561¥

Balance at
end of period—¥ 67,867
369
586
(77)
29,400292 ¥ 97,853¥ 347,231(42,431)
87,690¥ 392,490

Millions of yen
Three months ended September 30, 2023
Other
comprehensive Reclassifications out of
Net change
income (loss)
accumulated otherduring thebeforecomprehensive
periodreclassifications
income (loss)(1)

Balance at
end of period

¥


(1)

Reclassifications out of accumulated other comprehensive income (loss) were not significant.

Balance at
beginningof period

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total¥ 370,620 ¥(31,767)
79,249¥ 418,102 ¥

43,715 ¥66(19,509)24,272 ¥(1)Reclassifications out of accumulated other comprehensive income (loss) were not significant.



F-87

—
¥ 43,715 ¥ 414,335
296
362(31,405)(108) (19,617)
59,632188 ¥ 24,460 ¥ 442,562

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

14. Commitments, contingencies and guarantees:
Commitments—
Credit and investment commitments
In connection with its banking and financing activities, Nomura provides commitments to extend credit which generally have fixed expiration
dates. In connection with its investment banking activities, Nomura enters into agreements with clients under which Nomura commits to underwrite
securities that may be issued by the clients. As a member of certain central clearing counterparties, Nomura is committed to provide liquidity facilities
through entering into reverse repo transactions backed by government and government agency debt securities with those counterparties in a situation
where a default of another clearing member occurs. The outstanding commitments under these agreements are included below in commitments to extend
credit.
Nomura has commitments to invest in various partnerships and other entities and also has commitments to provide financing for investments
related to these partnerships. The outstanding commitments under these agreements are included below in commitments to invest.
The following table presents a summary of the key types of outstanding commitments provided by Nomura.

Millions of yen
March 31, 2023
September 30, 2023

Commitments to extend credit
Liquidity facilities to central clearing counterparties
Other commitments to extend credit
Total
Commitments to invest¥¥

1,623,897
1,010,332
2,634,229¥¥

1,337,173
1,155,526
2,492,699¥

21,994¥

22,523As of September 30, 2023, these commitments had the following maturities:

Millions of yen
Years to Maturity
Total
contractual
amountLess than
1 year1 to 3years

3 to 5years

More than
5 years

Commitments to extend credit
Liquidity facilities to central clearing counterparties
Other commitments to extend credit
Total¥1,337,173
1,155,526¥2,492,699¥1,337,173
231,492¥1,568,665¥—
391,580¥391,580¥—
386,341¥386,341¥—
146,113¥146,113

Commitments to invest

¥

¥

¥

¥

¥ 17,939

22,523

360

1,205

3,019

The contractual amounts of these commitments to extend credit represent the amounts at risk but only if the contracts are fully drawn upon, should
the counterparties default, and assuming the value of any existing collateral becomes worthless. The total contractual amount of these commitments may
not represent future cash requirements since the commitments may expire without being drawn upon. The credit risk associated with these commitments
varies depending on the clients’ creditworthiness and the value of collateral held. Nomura evaluates each client’s creditworthiness on a case-by-casebasis. The amount of collateral obtained, if deemed necessary by Nomura upon extension of credit, is based on credit evaluation of the counterparty.
Contingencies—
Investigations, lawsuits and other legal proceedings
In the normal course of business as a global financial services entity, Nomura is involved in investigations, lawsuits and other legal proceedings
and, as a result, may suffer loss from any fines, penalties or damages awarded against Nomura, any settlements Nomura chooses to make to resolve a
matter, and legal and other advisory costs incurred to support and formulate a defense.


F-88

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The ability to predict the outcome of these actions and proceedings is inherently difficult, particularly where claimants are seeking substantial orindeterminate damages, where investigations and legal proceedings are at an early stage, where the matters present novel legal theories or involve alarge number of parties, or which take place in foreign jurisdictions with complex or unclear laws.
The Company regularly evaluates each legal proceeding and claim on a case-by-case basis in consultation with external legal counsel to assess
whether an estimate of possible loss or range of loss can be made, if recognition of a liability is not appropriate. In accordance with ASC 450“Contingencies” (“ASC 450”), the Company recognizes a liability for this risk of loss arising on each individual matter when a loss is probable and theamount of such loss or range of loss can be reasonably estimated. The amount recognized as a liability is reviewed at least quarterly and is revised whenfurther information becomes available. If these criteria are not met for an individual matter, such as if an estimated loss is only reasonably possible
rather than probable, no liability is recognized. However, where a material loss is reasonably possible, the Company will disclose details of the legal
proceeding or claim below. Under ASC 450 an event is defined as reasonably possible if the chance of the loss to the Company is more than remote but
less than probable. As of March 31, 2023 and September 30, 2023, the total liability of ¥42,459 million and ¥33,721 million have been recognizedrespectively, and reported within Other liabilities in respect of outstanding and unsettled investigations, lawsuits and other legal proceedings where loss
is considered probable and the loss can be reasonably estimated.
The most significant actions and proceedings against Nomura are summarized below. The Company believes that, based on current information
available as of the date of these consolidated financial statements, the ultimate resolution of these actions and proceedings will not be material to theCompany’s financial condition. However, an adverse outcome in certain of these matters could have a material adverse effect on the consolidated
statements of income or cash flows in a particular quarter or annual period.
For certain of the significant actions and proceedings, the Company is currently able to estimate the amount of reasonably possible loss, or rangeof reasonably possible losses, in excess of amounts recognized as a liability (if any) against such cases. These estimates are based on current information
available as of the date of these consolidated financial statements and include, but are not limited to, the specific amount of damages or claims against
Nomura in each case. As of December 15, 2023, for those cases where an estimate of the range of reasonably possible losses can be made, the Company
estimates that the total aggregate reasonably possible maximum loss in excess of amounts recognized as a liability (if any) against these cases isapproximately ¥32 billion.
For certain other significant actions and proceedings, the Company is unable to provide an estimate of the reasonably possible loss or range ofreasonably possible losses because, among other reasons, (i) the proceedings are at such an early stage there is not enough information available toassess whether the stated grounds for the claim are viable; (ii) damages have not been identified by the claimant; (iii) damages are unsupported and/or
exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant legal issues to be resolved that may bedispositive, such as the applicability of statutes of limitations; (vi) there are novel or unsettled legal theories underlying the claims and/or (vii) a
judgment has been made against Nomura but detailed reasons for the basis for the judgment and how the amount of the judgment has been determined
have not yet been received.
Nomura will continue to cooperate with regulatory investigations and to vigorously defend its position in the ongoing actions and proceedings set
out below, as appropriate.
Claims for reimbursement of tax credits paid on dividends on Italian shares have been made by the tax authorities in Pescara, Italy alleging
breaches of the U.K.-Italy Double Taxation Treaty of 1998 against IBJ Nomura Financial Products (UK) PLC (“IBJN”) a group company which has
been in members’ voluntary liquidation since 2000. An Italian Supreme Court judgment in June 2019 confirmed that an amount of approximately EUR
38 million (comprised of tax credit refunds plus accrued interest), plus further interest, was payable by IBJN to the Italian tax authorities. IBJN elected
to apply for a tax amnesty regime set out under the 2023 Italian budget law which allows taxpayers to settle certain pending claims by paying only theprincipal amount. In October 2023, IBJN paid the principal amount under the amnesty regime, and as a result accrued interest and collecting fees were
waived.
In October 2010 and June 2012, two actions were brought against Nomura International plc (“NIP”), seeking recovery of payments allegedly
made to NIP by Fairfield Sentry Ltd. and Fairfield Sigma Ltd. (collectively, “Fairfield Funds”), which are now in liquidation and were feeder funds toBernard L. Madoff Investment Securities LLC (in liquidation pursuant to the Securities Investor Protection Act in the U.S. since December 2008)(“BLMIS”). The first suit was brought by the liquidators of the Fairfield Funds. It was filed on October 5, 2010 in the Supreme Court of the State of
New York, but was subsequently removed to the United States Bankruptcy Court for the Southern District of New York. The second suit was brought by
the trustee for the liquidation of BLMIS (“Madoff Trustee”). NIP was added as a defendant in June 2012 when the Madoff Trustee filed an amended
complaint in the United States Bankruptcy Court for the Southern District of New York. Both actions seek to recover approximately $34 million plus
interest.


F-89

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)In November 2011, NIP was served with a claim filed by the Madoff Trustee in the United States Bankruptcy Court for the Southern District of
New York. This is a clawback action similar to claims filed by the Madoff Trustee against numerous other institutions. The Madoff Trustee alleges that
NIP received redemptions from the BLMIS feeder fund, Harley International (Cayman) Limited in the six years prior to December 11, 2008 (the dateproceedings were commenced against BLMIS) and that these are avoidable and recoverable under the U.S. Bankruptcy Code and New York law. The
amount that the Madoff Trustee is currently seeking to recover from NIP is approximately $24.4 million plus interest.
Certain of the Company’s subsidiaries in the U.S. securitized residential mortgage loans in the form of residential mortgage-backed securities(“RMBS”). These subsidiaries did not generally originate mortgage loans, but purchased mortgage loans from third-party loan originators(“originators”). In connection with such purchases, these subsidiaries received loan level representations from the originators. In connection with thesecuritizations, the relevant subsidiaries provided loan level representations and warranties of the type generally described below, which mirror the
representations the subsidiaries received from the originators.
The loan level representations made in connection with the securitization of mortgage loans were generally detailed representations applicable toeach loan and addressed characteristics of the borrowers and properties. The representations included, but were not limited to, information concerning
the borrower’s credit status, the loan-to-value ratio, the owner occupancy status of the property, the lien position, the fact that the loan was originated inaccordance with the originator’s guidelines, and the fact that the loan was originated in compliance with applicable laws. Certain of the RMBS issued by
the subsidiaries were structured with credit protection provided to specified classes of certificates by monoline insurers.
With respect to certain of the RMBS issued from 2005 to 2007, the relevant subsidiaries received claims demanding the repurchase of certain
loans from trustees of various securitization trusts, made at the instance of one or more investors, or from certificate insurers. The total original principal
amount of loans for which repurchase claims were received by the relevant subsidiaries within six years of each securitization is $3,203 million. The
relevant subsidiaries summarily rejected any demand for repurchase received after the expiration of the statute of limitations applicable to breach of
representation claims. For those claims received within six years, the relevant subsidiaries reviewed each claim received, and rejected those claims
believed to be without merit or agreed to repurchase certain loans for those claims that the relevant subsidiaries determined to have merit. In several
instances, following the rejection of repurchase demands, investors instituted actions through the trustee alleging breach of contract from 2011 to 2014.
The breach of contract claims that were brought within the six-year statute of limitations for breach of contract actions survived motions to dismiss anddiscovery was completed and Notes of Issue were filed. The Company has been engaged in efforts to resolve the actions outside of Court. Threesettlement agreements with the respective Trustees have been finalized and the actions have been dismissed with prejudice. For the four Trusts as towhich claims are pending, settlement agreements with the Trusts have been approved by Certificateholders in all four and they are the subject of pending
Trust Instruction Proceedings before the Court.
In March 2013, Banca Monte dei Paschi di Siena SpA (“MPS”) issued a claim in the Italian Courts against (1) two former directors of MPS and(2) NIP. MPS alleged that the former directors improperly caused MPS to enter into certain structured financial transactions with NIP in 2009(“Transactions”) and that NIP acted fraudulently and was jointly liable for the unlawful conduct of MPS’s former directors. MPS claimed damages of
not less than EUR 1.1 billion.
In March 2013, NIP commenced a claim against MPS in the English Courts. The claim was for declaratory relief confirming that the Transactions
remained valid and contractually binding. MPS filed and served its defence and counterclaim to these proceedings in March 2014. MPS alleged in its
counterclaim that NIP was liable to make restitution of a net amount of approximately EUR 1.5 billion, and sought declarations regarding the illegality
and invalidity of the Transactions.
On September 23, 2015, NIP entered into a settlement agreement with MPS to terminate the Transactions. NIP believes that the Transactions wereconducted legally and appropriately, and does not accept the allegations made against it or admit any wrongdoing. Taking into account the views of
relevant European financial authorities and the advice provided by external experts, NIP considered it to be in its best interests to reach a settlement inrelation to this matter. As part of the agreement, the Transactions were unwound at a discount of EUR 440 million in favour of MPS and the civil
proceedings between MPS and NIP in Italy and England, respectively, will no longer be pursued. Pursuant to the settlement agreement MPS and NIP
applied to the Italian Courts to discontinue the proceedings brought by MPS against NIP. These proceedings have since been discontinued.
In April 2013, an investigation was commenced by the Public Prosecutor’s office in Siena, Italy, into various allegations against MPS and certainof its former directors, including in relation to the Transactions. The investigation was subsequently transferred to the Public Prosecutor of Milan. On
April 3, 2015, the Public Prosecutor’s office in Milan issued a notice concluding its preliminary investigation. The Public Prosecutor was seeking toindict MPS, three individuals from MPS’s former management, NIP and two former NIP employees for, among others, the offences of false accounting
and market manipulation in relation to MPS’s previous accounts. The preliminary hearing at which the Milan criminal court considered whether or not
to grant the indictment concluded on October 1, 2016, the Judge ordering the trial of all individuals and banks involved except for MPS (which enteredinto a plea bargaining agreement with the Public Prosecutor). The trial commenced in December 2016. As part of these proceedings, a number of civil
claimants were permitted to bring damages claims against a number of entities and individuals, including NIP.


F-90

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)On November 8, 2019, the court delivered its oral verdict, finding two former employees of NIP guilty of false accounting, market manipulationand obstructing the supervisory activities of CONSOB and that NIP had breached Italian corporate liability legislation. In so doing it imposed a fine of
EUR 3.45 million on NIP as well as ordering confiscation of EUR 88 million. On May 12, 2020, the court issued the detailed reasoning for the verdict(including the rationale for the penalties imposed). NIP appealed the decision to the Milan Court of Appeal. On May 6, 2022, the Milan Court of Appeal
delivered its oral verdict, overturning the first instance judgment and acquitting the two former employees of NIP of all charges. The court also
overturned the first instance judgment in respect of NIP and quashed the EUR 3.45 million fine and EUR 88 million confiscation order imposed on NIP.
The detailed reasoning for the verdict was made available on October 3, 2022. In November 2022, the Public Prosecutor appealed the decision to theSupreme Court. On October 11, 2023, the Supreme Court declared the Public Prosecutor’s appeal inadmissible. The Court of Appeal’s judgment ofacquittal has therefore become final.
In addition, NIP is involved in a number of separate civil or administrative matters relating to the Transactions including those described further
below.
In January 2018, a claim before the Italian Courts brought by two claimants, Alken Fund Sicav (on behalf of two Luxembourg investment funds
Alken Fund European Opportunities and Alken Fund Absolute Return Europe) and Virmont S.A. (formerly, Alken Luxembourg S.A, the funds’
management company) (collectively referred to as “Alken”) was served on NIP. The claim was made against NIP, MPS, four MPS former directors anda member of MPS’s internal audit board, and sought monetary damages of approximately EUR 434 million plus interest, as well as non-monetarydamages in an amount left to be quantified by the Judge. In July 2021, the court rejected all of Alken’s claims. In February 2022, Alken appealed thedecision to the Milan Court of Appeal and, in November 2023, the court dismissed Alken’s appeal.
In May 2019, a claim before the Italian Courts brought by York Global Finance Offshore BDH (Luxembourg) Sàrl and a number of seemingly
related funds was served on NIP. The claim is made against NIP, MPS, two MPS former directors and a member of MPS’s internal audit board, andseeks monetary damages of approximately EUR 186.7 million plus interest, as well as non-monetary damages in an amount left to be quantified by theJudge.
Additionally, NIP was served by the Commissione Nazionale per le Società e la Borsa (“CONSOB”, the Italian financial regulatory authority)with a notice commencing administrative sanction proceedings for market manipulation in connection with the Transactions. In relation to theTransactions, the notice named MPS, three individuals from MPS’s former management and two former NIP employees as defendants, whereas NIP wasnamed only in its capacity as vicariously liable to pay any fines imposed on the former NIP employees. On May 22, 2018 CONSOB issued its decisionin which it levied EUR 100,000 fines in relation to each of the two former NIP employees. In addition, CONSOB decided that the two employees did
not meet the necessary Italian law integrity requirements to perform certain senior corporate functions, for a period of three months and six months
respectively. NIP was vicariously liable to pay the fines imposed on its former employees. NIP paid the fines and appealed the decision to the Milan
Court of Appeal. In December 2020, the Court of Appeal annulled the CONSOB decision against NIP. CONSOB has appealed the Court of Appeal’s
decision to the Italian Supreme Court.
On May 20, 2021, NIP and the Company were named as addressees in a decision issued by the European Commission in which NIP, the Company
and various other third party banks have been found to have infringed EU competition law in connection with their activity in the primary and secondary
markets for European Government Bonds (“EGB”). The European Commission found that the infringement consisted of anticompetitive agreements
and/or concerted practices in the EGB sector in breach of EU competition law and fined NIP and the Company approximately EUR 129.6 million. In
August 2021, NIP and the Company appealed the decision. The fine has been provisionally paid, as is required, pending the outcome of NIP and theCompany’s appeal.
NIP and Nomura Securities International, Inc. (“NSI”) were named as defendants in a class action filed in the United States District Court for theSouthern District of New York alleging violations of U.S. antitrust law in relation to the alleged manipulation of the primary and secondary markets for
EGB. NSI has been dismissed from the action.


F-91

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Nomura is responding to requests for information from the U.S. Commodity Futures Trading Commission (“CFTC”) in relation to swap trading
related to bond issuances. On February 1, 2021, the CFTC filed a civil enforcement action against a Nomura employee and charged him with violating
the anti-fraud, price manipulation and false statements provisions of the Commodity Exchange Act in relation to a 2015 interest rate swap transaction.
The Securities and Exchange Commission (“SEC”) and the United States Department of Justice (“DOJ”) investigated past activities of several
former employees of NSI in respect of residential mortgage-backed securities transactions in the secondary market. In July 2019, NSI entered into asettlement with the SEC concerning its supervision of certain former employees, and the investigation has concluded. In August 2023, NSI entered intoa Non-Prosecution Agreement with the DOJ paying a civil monetary penalty of $35 million and making additional restitution to affected customers ofapproximately $0.8 million, resolving its investigation.
In September 2017 and November 2017, Nomura International (Hong Kong) Limited (“NIHK”) and Nomura Special Investments Singapore Pte
Limited (“NSIS”) were respectively served with a complaint filed in the Taipei District Court against NIHK, NSIS, China Firstextile (Holdings) Limited(“FT”) and certain individuals by First Commercial Bank, Ltd., Land Bank of Taiwan Co., Ltd., Chang Hwa Commercial Bank Ltd., Taishin
International Bank, E.Sun Commercial Bank, Ltd., CTBC Bank Co., Ltd., Hwatai Bank, Ltd. and Bank of Taiwan (collectively, “FT Syndicate Banks”).
The FT Syndicate Banks’ complaint relates to a $100 million syndicated term loan facility to borrower FT that was arranged by NIHK, and made by the
FT Syndicate Banks together with NSIS. The FT Syndicate Banks’ allegations in the complaint include tort claims under Taiwan law against thedefendants. The FT Syndicate Banks seek to recover approximately $68 million in damages, plus interest. By judgment dated October 13, 2023, theTaipei District Court dismissed the FT Syndicate Bank’s claims in entirety. In November 2023, Statements of Appeal were filed by 7 of the 8 FT
Syndicate Banks (First Commercial Bank, Ltd., Land Bank of Taiwan Co., Ltd., Chang Hwa Commercial Bank Ltd., Taishin International Bank, E.Sun
Commercial Bank, Ltd., CTBC Bank Co., Ltd. and Bank of Taiwan, together the “Appellants”), indicating the Appellants’ intention to appeal the Taipei
District Court decision to the Taiwan High Court. The claim amount for the appeal is approximately $63 million in damages, plus interest.
In August 2017, the Cologne public prosecutor in Germany notified NIP that it is investigating possible tax fraud by individuals who worked for
the Nomura Group in relation to the historic planning and execution of trading strategies around dividend record dates in certain German equities(known as “cum/ex” trading) and in relation to filings of tax reclaims in 2007 to 2012. During the fiscal year ended March 31, 2020, Nomura Group
became aware that certain of those individuals would be the subject of investigative proceedings in Germany. NIP and another entity in the Nomura
Group are cooperating with the investigation, including by disclosing to the public prosecutor certain documents and trading data, and Nomura Grouppremises in Frankfurt were raided by the public prosecutor in April 2023 for the purpose of obtaining additional data and documents. It appears that theinvestigation has expanded including to also now encompass cum/cum trading strategies in certain German equities. If the investigation involving
Nomura Group entities and former individuals proceeds to trial, the individuals could face criminal sanctions and Nomura Group entities could faceadministrative sanctions such as administrative fines or profit confiscation orders.
In and after August 2022, Nomura Financial Advisory and Securities (India) Private Limited (“NFASI”) was served with three commercial suits
filed with the Bombay High Court against NFASI and other parties. The lawsuits relate to the same equity disposal where the plaintiffs were three of thesellers and NFASI acted as financial advisor to the sellers, and include allegations that NFASI failed to comply with its duties as financial advisor. The
total claim amounts in the suits are approximately INR 2.8 billion in damages, plus interest.
F-92

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Guarantees—
In the normal course of business, Nomura enters into various guarantee arrangements with counterparties in the form 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, namely derivative contracts that
contingently require a guarantor to make payment to a guaranteed party based on changes in an underlying that relate to an asset, liability or equity
security held by a guaranteed party. Since Nomura does not track whether its clients enter into these derivative contracts for speculative or hedging
purposes, Nomura includes relevant information about these derivative contracts that could meet the accounting definition of guarantees in thedisclosure below.
For information about the maximum potential amount of future payments that Nomura could be required to make under these derivative contracts,
the notional amount of contracts has been disclosed, except for certain derivative contracts, such as written interest rate caps and written currency
options, the maximum potential payout amount cannot be estimated, as increases in interest or foreign exchange rates in the future could be theoreticallyunlimited.
The notional amounts do not represent anticipated losses from these derivatives contracts. As Nomura measures all derivative contracts at fairvalue, carrying value is considered the best indication of probability of payment and performance risks for these derivative contracts. Nomura may also
reduce net exposures to certain of these contracts by entering into offsetting transactions or by entering into contracts that hedge the market risks related
to these derivative contracts.
The following table presents information on Nomura’s derivative contracts that could meet the accounting definition of a guarantee and standby
letters of credit and other guarantees.

Millions of yen
March 31, 2023
September 30, 2023
Maximum
Maximum
Potential
Potential
Payout/Payout/Carrying
Notional
Carrying
Notional
value
Total
value
Total

Derivative contracts(1)(2)Standby letters of credit and other guarantees(3)¥8,983,145
—



(1)
(2)
(3)

¥514,420,432
1,544,159¥11,667,361—¥612,279,656
2,330,104

Credit derivatives are disclosed in Note 3. “Derivative instruments and hedging activities” and are excluded from above.
Derivative contracts primarily consist of equity, interest rate and foreign exchange contracts.
Primarily related to a certain sponsored repo program where Nomura guarantees to a third party clearing house in relation to its clients’ payment
obligations. Our credit exposures under this guarantee is minimized by obtaining collateral from clients at amount approximately the maximum
potential payout under the guarantee.

The following table presents maturity information on Nomura’s derivative contracts that could meet the accounting definition of a guarantee andstandby letters of credit and other guarantees as of September 30, 2023.



Derivative contracts
Standby letters of credit and other guarantees

Carrying
value

Total

¥11,667,361—¥612,279,656
2,330,104

F-93

Millions of yen
Maximum Potential Payout/NotionalYears to Maturity
Less than
1 to 33 to 5
1 yearyears
years¥116,962,643
2,290,331¥256,817,804
16,408¥65,002,343
18,191More than
5 years¥173,496,866
5,174

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

15. Segment and geographic information:
Operating segments—
Nomura’s operating management and management reporting are prepared based on the Retail, the Investment Management, and the Wholesalesegments. Nomura structures its business segments based upon the nature of its main products and services, its client base and its management structure.
Nomura plans to rename its Retail Division as Wealth Management Division, effective April 1, 2024.
The accounting policies for segment information follow U.S. GAAP, except for a part of the impact of unrealized gains/losses on certain
investments in equity securities held for operating purposes, which under U.S. GAAP are included in Income (loss) before income taxes, but excluded
from segment information.
Revenues and expenses directly associated with each business segment are included in the operating results of each respective segment. Revenues
and expenses that are not directly attributable to a particular segment are allocated to each respective business segment or included in “Other”, based
upon Nomura’s allocation methodologies as used by management to assess each segment’s performance.
Business segments’ results are shown in the following tables. Net interest revenue is disclosed because management views interest revenue net ofinterest expense for its operating decisions. Business segments’ information on total assets is not disclosed because management does not utilize suchinformation for its operating decisions and therefore, it is not reported to management.
F-94

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
RetailInvestment
Management

Six months ended September 30, 2022
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income (loss) before income taxes¥142,603
1,263
143,866
133,465¥ 10,401¥

Six months ended September 30, 2023
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥188,301
2,681
190,982
138,990¥ 51,992¥¥¥

Wholesale

Other(Incl. elimination)

35,366(1,616)33,75039,911(6,161)¥406,582(2,096)404,486
359,025¥ 45,461¥

76,357(4,721)
71,63644,794
26,842¥387,061
7,876
394,937
384,572¥ 10,365

¥

¥

¥

Total

57,991(18,443)
39,54841,368(1,820)¥642,542(20,892)
621,650
573,769¥ 47,881

47,815
12,89360,70845,272
15,436¥699,534
18,729718,263
613,628¥104,635

Millions of yen
RetailInvestment
Management

Three months ended September 30, 2022
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥ 71,977
503
72,48066,995¥ 5,485¥

Three months ended September 30, 2023
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income (loss) before income taxes¥ 97,630
1,302
98,932
69,887¥ 29,045¥¥¥

Wholesale

Other(Incl. elimination)

27,058(887)
26,171
20,6185,553¥214,413(8,914)205,499
185,310¥ 20,189¥

49,124(4,013)
45,111
21,89623,215¥205,699(1,612)204,087
195,823¥ 8,264

¥

¥

¥

Total

25,325(9,702)
15,623
13,551
2,072¥338,773(19,000)
319,773
286,474¥ 33,299(887)
17,84016,953
23,419(6,466)¥351,566
13,517365,083
311,025¥ 54,058Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”

F-95

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)The following table presents the major components of Income (loss) before income taxes in “Other.”






Millions of yen

Six months ended September 30







 



Net gain (loss) related to economic hedging transactions
Realized gain on investments in equity securities held for operating purposes
Equity in earnings of affiliates
Corporate items
Other(1)

 ¥




 ¥

Total

2022













2023

(9,709)  ¥295 26,107 (1,475) (17,038) (1,820)  ¥

(5,511)
8,217
22,731
3,322(13,323)















15,436

Millions of yen







Three months ended September 30



 







Net gain (loss) related to economic hedging transactions
Realized gain on investments in equity securities held for operating purposes
Equity in earnings of affiliates
Corporate items
Other(1)

 ¥




 ¥


Total


(1)



2022









2023

98  ¥
55 
9,114 4,513 (11,708) 
2,072  ¥












(8,905)
26
9,013
1,380
(7,980)

(6,466)Includes the impact of Nomura’s own creditworthiness.

The table below presents reconciliations of the combined business segments’ results included in the preceding table to Nomura’s reported Net
revenue, Non-interest expenses and Income before income taxes in the consolidated statements of income.

Millions of yen
Six months ended September 30
2022
2023

Net revenue
Unrealized gain (loss) on investments in equity securities held for operating purposes
Consolidated net revenue¥

Non-interest expenses
Unrealized gain (loss) on investments in equity securities held for operating purposes
Consolidated non-interest expenses¥

Income before income taxes
Unrealized gain (loss) on investments in equity securities held for operating purposes
Consolidated income before income taxes

¥

¥

¥

¥

621,650 ¥(4,664)
616,986 ¥

718,263(1,590)716,673573,769—
573,769¥

613,628—
613,628

47,881 ¥(4,664)
43,217 ¥104,635(1,590)103,045¥

Millions of yen
Three months ended September 30
2022
2023

Net revenue
Unrealized gain (loss) on investments in equity securities held for operating purposes
Consolidated net revenue¥

Non-interest expenses
Unrealized gain (loss) on investments in equity securities held for operating purposes
Consolidated non-interest expenses¥

Income before income taxes
Unrealized gain (loss) on investments in equity securities held for operating purposes
Consolidated income before income taxes

¥



F-96

¥

¥

¥

319,773 ¥(1,815)317,958 ¥

365,083
2,677
367,760

286,474—
286,474¥

311,025—
311,025

33,299 ¥(1,815)31,484 ¥54,0582,677
56,735¥

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Geographic information—
Nomura’s identifiable assets, revenues and expenses are generally allocated based on the country of domicile of the legal entity providing theservice. However, because of the integration of the global capital markets and the corresponding global nature of Nomura’s activities and services, it is
not always possible to make a precise separation by location. As a result, various assumptions, which are consistent among years, have been made inpresenting the following geographic data.
The table below presents a geographic allocation of Net revenue and Income (loss) before income taxes from operations by geographic areas, andlong-lived assets associated with Nomura’s operations. Net revenue in “Americas” and “Europe” substantially represents Nomura’s operations in the
U.S. and the U.K., respectively. Net revenue and Long-lived assets have been allocated based on transactions with external customers while Income(loss) before income taxes have been allocated based on the inclusion of intersegment transactions.


Millions of yen
Six months ended September 30
2022
2023

Net revenue(1):Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

Income (loss) before income taxes:
Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

119,13964,06441,657
224,860
392,126
616,986¥¥

202,420
109,768
24,030336,218
380,455
716,673(43,011) ¥4,505
23,917(14,589)
57,806
43,217 ¥(6,776)(15,125)
4,459(17,442)
120,487
103,045

Millions of yen
Three months ended September 30
2022
2023

Net revenue(1):Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

Income (loss) before income taxes:
Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated

¥

¥


(1)

There is no revenue derived from transactions with a single major external customer.



F-97

75,05735,533
4,744
115,334
202,624
317,958¥¥

124,978
58,817
8,806
192,601
175,159
367,760(21,364) ¥6,405
15,574615
30,86931,484 ¥13,134(9,182)
2,546
6,498
50,23756,735

Notes to the Interim Consolidated Financial Statements—(Continued) (UNAUDITED)

Millions of yen
March 31, 2023
September 30, 2023

Long-lived assets:
Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

114,946 ¥53,161
23,839191,946
308,941
500,887 ¥125,946
58,85032,514
217,310
287,063504,373

16. Supplementary subsidiary guarantee information required under SEC rules:
The Company provides several guarantees of debts of its subsidiaries.
The Company has fully and unconditionally guaranteed the securities issued by Nomura America Finance LLC (“NAFL”), which is an indirect,
wholly owned finance subsidiary of the Company. NAFL operates as a special purpose entity. It was formed for the purpose of issuing debt securities torepay existing credit facilities, refinance indebtedness, and for acquisition purposes. The guarantee will remain in effect until the entire principal, if any,of, and interest and premium, if any, on, the securities has been paid in full or discharged in accordance with the provisions of the indenture, orotherwise fully defeased by the Company.


F-98

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of
Nomura Holdings, Inc.
Results of Review of Interim Financial Statements
We have reviewed the accompanying consolidated balance sheet of Nomura Holdings, Inc. (the “Company”) as of September 30, 2023, the related
consolidated statements of income, comprehensive income and changes in equity for the three- and six-month periods ended September 30, 2023 and2022, the related consolidated statements of cash flows for the six-month periods ended September 30, 2023 and 2022, and the related notes(collectively referred to as the “interim consolidated financial statements”). Based on our reviews, we are not aware of any material modifications thatshould be made to the interim consolidated financial statements for them to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), theconsolidated balance sheet of Nomura Holdings, Inc. as of March 31, 2023, the related consolidated statements of income, comprehensive income,changes in equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated June 28, 2023, except for
the effects of the restatement described in “Restatement of historical interim consolidated financial statements” within Note 1, as to which the date is
April 12, 2024, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in theaccompanying consolidated balance sheet as of March 31, 2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
Restatement of the Interim Consolidated Financial Statements
As described in “Restatement of historical interim consolidated financial statements” within Note 1, the interim consolidated financial statements havebeen restated to correct misstatements.
Basis for Review Results
These financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists
principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less inscope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding thefinancial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
December 15, 2023, except for the effects of the restatement described in “Restatement of historical interim consolidated financial statements” within
Note 1, as to which the date is April 12, 2024
F-99

Exhibit 15
April 12, 2024
The Shareholders and Board of Directors of
Nomura Holdings, Inc.
We are aware of the incorporation by reference in the Registration Statements (Form F-3 No. 333-261756 and No. 333-273353 and Form S-8
No. 333-214267, No. 333-221128, No. 333-228585, No. 333-228586, No. 333-231683, No. 333-239996, No. 333-256408, No. 333-265160 and No.
333-272157) and related Prospectus of Nomura Holdings, Inc. of our report dated December 15, 2023, except for the effects of the restatement disclosed
in “Restatement of historical interim consolidated financial statements” within Note 1, as to which the date is April 12, 2024, relating to the unaudited
interim consolidated financial statements of Nomura Holdings, Inc. as of and for the quarter ended September 30, 2023 that are included in its Form 6K/A dated April 12, 2024.
/s/ Ernst & Young ShinNihon LLC

Exhibit 17
Subsidiary Issuer of Registered Guaranteed Securities
Nomura Holdings, Inc. (“NHI”) fully and unconditionally guarantees certain securities issued by its indirect, wholly owned finance subsidiary,
Nomura America Finance LLC (“NAFL”). The securities issued by NAFL and guaranteed by NHI that are subject to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 are as follows:•

Senior Global Medium-Term Notes, Series A, Callable Leveraged Steepener Notes due November 24, 2025•

Senior Global Medium-Term Notes, Series A, Callable Leveraged Steepener Notes due December 31, 2033•

Senior Global Medium-Term Notes, Series A, Callable Leveraged Steepener Notes due February 28, 2034•

Senior Global Medium-Term Notes, Series A, Callable Leveraged Steepener Notes due May 30, 2034•

Senior Global Medium-Term Notes, Series A, Callable Contingent Coupon Trigger Notes Linked to Russell 2000® Index due July 16, 2024•

Senior Global Medium-Term Notes, Series A, Callable Leveraged Steepener Notes due July 29, 2034•

Senior Global Medium-Term Notes, Series A, CPI-Linked Notes due December 24, 2024•

Senior Global Medium-Term Notes, Series A, Callable Leveraged Steepener Notes due December 24, 2034•

Senior Global Medium-Term Notes, Series A, Contingent Coupon Trigger Notes Linked to Russell 2000® Index due February 18, 2025•

Senior Global Medium-Term Notes, Series A, 3.00% Fixed to Floating Rate Notes due August 21, 2025