FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 1-15270
For the month of February 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):

Information furnished on this form:

EXHIBITS
Exhibit Number

1.

(English Translation) Quarterly Securities Report Pursuant to the Financial Instruments and Exchange Act for the Nine Months Ended
December 31, 2023.

2.

(English Translation) Confirmation Letter.

The registrant hereby incorporates Exhibits 1 (except Part I, Item 4.2 — “Quarterly Review Certificate” and the English translation of Quarterly
Review Report of Independent Auditor), and 2 to this report on Form 6-K 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 part of theRegistration 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.

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: February 27, 2024

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

Exhibit 1
Quarterly Securities Report Pursuant to the Financial Instruments and Exchange Act for the Nine Months Ended December 31, 2023
Items included in the Quarterly Securities Report
Page

Part I

Corporate Information

Item 1. Information on Company and Its Subsidiaries and Affiliates
1. Selected Financial Data
2. Business Overview
Item 2. Operating and Financial Review
1. Risk Factors
2. Operating, Financial and Cash Flow Analyses by Management
3. Significant Contracts
Item 3. Company Information
1. Share Capital Information
2. Directors and Executive Officers

1
1
1
1
2
2
3
20
21
21

Item 4. Financial Information24

Preparation Method of Consolidated Financial Statements and Quarterly Review Certificate

24

1. Consolidated Financial Statements

25(1) Consolidated Balance Sheets (UNAUDITED)(2) Consolidated Statements of Income (UNAUDITED)(3) Consolidated Statements of Comprehensive Income (UNAUDITED)(4) Consolidated Statements of Changes in Equity (UNAUDITED)(5) Consolidated Statements of Cash Flows (UNAUDITED)
Notes to the Consolidated Financial Statements (UNAUDITED)
2. OtherPart II

25
28
30
31
33
35
127

Information on Guarantor of the Company

Quarterly Review Report of Independent Auditors
Note: Translations for the underlined items are attached to this form as below.

128

Part I

Corporate Information

Item 1.

Information on Company and Its Subsidiaries and Affiliates

1. Selected Financial Data

Total revenue
Net revenue
Income before income taxes
Net income attributable to Nomura Holdings, Inc. (“NHI”)
shareholders
Comprehensive income attributable to NHI shareholders
Total equity
Total assets
Net income attributable to NHI shareholders per share—basic
Net income attributable to NHI shareholders per share—diluted
Total NHI shareholders’ equity as a percentage of total assets
Cash flows from operating activities 3
Cash flows from investing activities 3
Cash flows from financing activities
Cash, cash equivalents, restricted cash and restricted cash equivalents
at end of period
123Nine months
ended
December 31,
2022

Nine months
ended
December 31,
2023

Three months
ended
December 31,
2022

Three months
ended
December 31,
2023

Year ended
March 31,2023

1,716,061
1,010,644
126,783

2,986,540
1,116,898
181,756

772,241
393,658
83,566

1,080,487
400,225
78,7112,486,726
1,335,577
149,474(Mil yen)
85,411109,113(Mil yen)
247,509
161,166(Mil yen) 3,199,908
3,360,649(Mil yen) 49,242,426 54,752,735
(Yen)
28.40
36.08
(Yen)
27.44
34.69
(%)
6.4
6.0
(Mil yen) (1,036,453)
580,649(Mil yen)
136,410(740,058)(Mil yen)
834,382
582,118

66,944(35,475)
—
—
22.30
21.51
—
—
—
—

(Mil yen)(Mil yen)(Mil yen)(Mil yen)

3,395,959

4,337,268—

50,55092,786(21,505)
283,267—
3,224,142—
47,771,802
16.77
30.86
16.10
29.74
—
6.6
—
(840,952)—(94,853)—
1,291,697—

3,820,852

The selected financial data of Nomura Holdings, Inc. (the “Company”) and other entities in which it has a controlling financial interest(collectively referred to as “Nomura”, “we”, “our”, or “us”) are stated in accordance with the accounting principles generally accepted in the
United States of America (“U.S. GAAP”).
As the consolidated financial statements have been prepared, selected financial data on the Company are not disclosed.
We have revised certain prior period amounts of “Cash flows from operating activities” and “Cash flows from investing activities” to conform tothe current period presentation. See Item 4. Financial Information, 1. Consolidated Financial Statements, Note 1 “Basis of accounting” for further
information.

2. Business Overview
There were no significant changes to the businesses of the Company and its 1,542 consolidated subsidiaries for the nine months ended
December 31, 2023.
There were 14 affiliated companies which were accounted for by the equity method as of December 31, 2023.
1

Item 2. Operating and Financial Review
1. Risk Factors
There is no significant change in our Risk Factors for the nine months ended December 31, 2023 and until the submission date of this report.
22. Operating, Financial and Cash Flow Analyses by Management(1) Operating Results
Nomura reported net revenue of ¥1,116.9 billion, non-interest expenses of ¥935.1 billion, income before income taxes of ¥181.8 billion, and net
income attributable to NHI shareholders of ¥109.1 billion for the nine months ended December 31, 2023.
The breakdown of net revenue and non-interest expenses on the consolidated statements of income is as follows:
Millions of yen
Nine months ended December 31
2022
2023

Commissions
Brokerage commissions
Commissions for distribution of investment trust
Other
Fees from investment banking
Underwriting and distribution
M&A / financial advisory fees
Other
Asset management and portfolio service fees
Asset management fees
Other
Net gain on trading
Gain (loss) on private equity and debt investments
Net interest
Gain (loss) on investments in equity securities
Other
Net revenue¥

216,085
163,306
22,23830,541
85,25730,871
42,59911,787204,323
186,318
18,005444,955
9,253(26,192)(2,621)
79,584¥ 1,010,644¥

257,410
181,843
40,50335,064
124,979
56,33844,60024,041225,969
205,180
20,789357,245
9,892
24,767
4,219
112,417¥ 1,116,898

Millions of yen
Nine months ended December 31
2022
2023

Compensation and benefits
Commissions and floor brokerage
Information processing and communications
Occupancy and related depreciation
Business development expenses
Other
Non-interest expenses¥¥
3

450,230
88,946
155,863
50,182
16,363
122,277
883,861¥¥

496,440
100,016
160,794
50,884
17,697
109,311935,142

Business Segment Information
Results by business segment are noted below.
Reconciliations of Net revenue and Income before income taxes on segment results of operations and the consolidated statements of income are set
forth in Item 4. Financial Information, 1. Consolidated Financial Statements, Note 15. “Segment and geographic information.”
Net revenue
Millions of yen
Nine months ended December 31
2022
2023

RetailInvestment Management
Wholesale
Other (Incl. elimination)
Total

¥

224,885
90,715593,543
126,858¥ 1,036,001¥

293,607
110,582
611,933
115,328¥ 1,131,450

Non-interest expenses
Millions of yen
Nine months ended December 31
2022
2023

RetailInvestment Management
Wholesale
Other (Incl. elimination)
Total

¥

¥

201,22163,574549,936
69,130883,861¥¥

209,688
68,144
578,598
78,712
935,142

Income before income taxes
Millions of yen
Nine months ended December 31
2022
2023

RetailInvestment Management
Wholesale
Other (Incl. elimination)
Total

¥

¥

23,664
27,141
43,60757,728152,140¥¥

83,91942,43833,33536,616
196,308

RetailNet revenue was ¥293.6 billion primarily due to increase in Brokerage commissions and Commissions for distribution of investment trust. Noninterest expenses were ¥209.7 billion and income before income taxes was ¥83.9 billion. Retail client assets were ¥135.9 trillion as of December 31,
2023, ¥13.7 trillion increase from March 31, 2023.
Investment Management
Net revenue was ¥110.6 billion. Non-interest expenses were ¥68.1 billion and income before income taxes was ¥42.4 billion. Assets undermanagement were ¥78.5 trillion as of December 31, 2023, ¥11.3 trillion increase from March 31, 2023, primarily due to increase in the market value of
assets under management.
4

The breakdown of net revenue for Investment Management is as follows:
Millions of yen
Nine months ended December 31
2022
2023

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

(2)

¥
¥

91,918 ¥(1,203)90,715 ¥99,261
11,321
110,582

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.

WholesaleNet revenue was ¥611.9 billion. Non-interest expenses were ¥578.6 billion and income before income taxes was ¥33.3 billion.
The breakdown of net revenue for Wholesale is as follows:
Millions of yen
Nine months ended December 31
2022
2023

Global Markets
Investment Banking
Net revenue¥¥

507,025 ¥
86,518593,543 ¥

502,682
109,251
611,933

Global Markets net revenue was ¥502.7 billion. Fixed Income net revenue decreased from ¥315.0 billion in the previous year to ¥297.7 billion due
to struggling results in first half in foreign fixed income, especially macro products (Rates and FX/EM) from unclear market environment. Equities net
revenue increased from ¥192.1 billion in the previous year to ¥205.0 billion primarily due to high interest in Japanese equity. Investment banking net
revenue was ¥109.3 billion.
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. Other operating results for thenine months ended December 31, 2023 include losses from changes in the fair value of derivative liabilities of ¥10.5 billion attributable to the change in
its own creditworthiness and gains from changes in counterparty credit spread of ¥5.5 billion. Net revenue was ¥115.3 billion. Non-interest expenses
were ¥78.7 billion. Income before income taxes was ¥36.6 billion for the nine months ended December 31, 2023.
Geographic Information
Please refer to Item 4. Financial Information, 1. Consolidated Financial Statements, Note 15. “Segment and geographic information” for net
revenue and income (loss) before income taxes by geographic allocation.
Cash Flow Information
Please refer to “(5) Liquidity and Capital Resources.”5(2) 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 others 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 financing is usually initially provided
through a commitment, we have both funded and unfunded exposures on these transactions.
The following table sets forth our exposure to leveraged finance with unfunded commitments, presenting funded and unfunded
portions by geographic location of the target company as of December 31, 2023.

FundedEuropeAmericas
Asia and Oceania
Total

¥

¥

Millions of yen
December 31, 2023
Unfunded

Total

17,191 ¥66,311 ¥ 83,502
21,943
196,517
218,460
16,027
112,850
128,877
55,161 ¥ 375,678 ¥ 430,839

Special Purpose Entities
Our involvement with these entities includes structuring, underwriting, as well as, subject to prevailing market conditions, distributing and sellingdebt instruments and beneficial interests issued by these entities. In the normal course of securitization and equity derivative activities business, we also
act as a transferor of financial assets to, and underwriter, distributor and seller of 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 involvementwith SPEs include guarantee agreements and derivative contracts.
For further discussion on Nomura’s involvement with variable interest entities (“VIEs”), see Item 4. Financial Information, 1. Consolidated
Financial Statements, Note 6. “Securitizations and Variable Interest Entities.”6

(3) Trading Activities
Assets and liabilities for trading purposes
Please refer to Item 4. Financial Information, 1. Consolidated Financial Statements, Note 2. “Fair value measurements” and Note 3. “Derivative
instruments and hedging activities” regarding the balances of assets and liabilities for trading purposes.
Risk management of trading activity
We adopt Value at Risk (“VaR”) for measurement of market risk arising from trading activity.
1) Assumptions on VaR•

Confidence Level: 95%•

Holding period: One day•

Consideration of price movement among the products

2) Records of VaRMarch 31, 2023

EquityInterest rate
Foreign exchange
Subtotal
Diversification benefit
VaR

¥

¥

Billions of yen
December 31, 2023

3.3
4.7
1.4
9.4
(3.2)
6.2

¥

3.6
2.8
2.3
8.7
(2.9)
5.8

¥

Billions of yen
Nine months ended December 31, 2023
Maximum(1)Minimum(1)Average(1)

VaR
(1)

¥

6.8

Represents the maximum, average and minimum VaR based on all daily calculations over the nine-month period.
7

¥

4.3

¥

5.5

(4) 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 December 31, 2023.
Millions of yen
December 31, 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 allowance
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)¥¥

39,6687,363
129,897
16,83675,512437,948
49,067
18,237774,528(548,636)
225,892
109,980
104,615
3,014
22,53743,548
4,693
288,387(62,495)

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. A valuation allowance is provided for tax benefits available to us, which are not deemed more likely than not to be realized.
8

(5) 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 Financial Services Agency (“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.
9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 December 31, 2023, our liquidity portfolio was¥8,472.9 billion which sufficiently met liquidity requirements under the stress scenarios.
2) Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio
In addition to our liquidity portfolio, we had unencumbered assets comprising mainly of unpledged trading assets that can be used as an additionalsource of secured funding. Global Treasury monitors other unencumbered assets and can, under a liquidity stress event when the contingency funding
plan has been invoked, monetize and utilize the cash generated as a result. The aggregate of our liquidity portfolio and other unencumbered assets was
sufficient against our total unsecured debt maturing within one year.
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.
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),other loans, commercial paper, deposit at banking entities, certificates of deposit and debt securities maturing within one year. Deposits atbanking entities and certificates 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 andDecember 31, 2023.
Billions of yen
March 31, 2023
December 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

¥

¥
10

203.3
256.8
300.0
1,705.0
224.2
721.9
3,411.2

¥

¥

39.7
238.3
232.8
1,723.1
246.7
740.5
3,221.1

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 byroutinely 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.
registered medium-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, Nomura Securities Co. Ltd., Nomura Europe Finance N.V., Nomura Bank International plc, 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 otherfunding activities. By raising funds to match the currencies and liquidities of our assets 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, results of operations or financial ratios, which could trigger an increase in our cost of financing or accelerate repayment of
the debt.
The following table presents an analysis of our long-term unsecured debt by type of financial liability as of March 31, 2023 andDecember 31, 2023.
Billions of yen
March 31, 2023
December 31, 2023

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

¥

¥

208.8
3,004.9
265.5
5,291.5
8,770.7

¥

¥

245.0
3,321.1
285.8
6,164.0
10,015.9

Excludes long-term debt securities issued by consolidated special purpose entities and similar entities that meet the definition ofvariable interest entities under ASC 810 “Consolidation” and secured financing transactions recognized within Long-term borrowings
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. A
significant amount of our structured loans and structured notes are linked to interest rates, currencies, equities, commodities, or related
indices. These maturities are evaluated 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 theembedded optionality under stress market conditions in order to determine when the debt securities or borrowings are likely to be called.
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 theunsecured market. Our secured funding capabilities depend on the quality of the underlying collateral and market conditions. While we haveshorter term secured financing for highly liquid assets, we seek longer terms for less liquid assets. We also seek to lower the refinancing risksof secured funding by transacting with a diverse 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 lessliquid assets. For more detail of secured borrowings and repurchase agreements, see Note 5 “Collateralized transactions” in our consolidated
financial statements.
11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 December 31, 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.
12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 Bank of Japan, which provide financing against various types of securities. These operations are accessed in thenormal 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. The notices have been implemented since the end of March 2015 with phased-in minimum standards.
Average of Nomura’s LCRs for the three months ended December 31, 2023 was 191.5%, and Nomura was compliant with requirements 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 fromthe end of September 2021. Nomura’s NSFR as of December 31, 2023 was compliant with the regulatory requirements.
Cash Flows
Cash, cash equivalents, restricted cash and restricted cash equivalents’ balance as of December 31, 2022 and as of December 31, 2023 were
¥3,396.0 billion and ¥4,337.3 billion, respectively. Cash flows from operating activities for the nine months ended December 31, 2022 were outflows of¥1,036.5 billion primarily due to an increase in Trading assets and private equity and debt investments and the comparable period in 2023 were inflowsof ¥580.6 billion primarily due to a decrease in Securities purchased under agreements to resell, net of securities sold under agreements to repurchase.
Cash flows from investing activities for the nine months ended December 31, 2022 were inflows of ¥136.4 billion primarily due to a decrease in Nontrading debt securities, net and the comparable period in 2023 were outflows of ¥740.1 billion primarily due to an increase in Non-trading loans
receivable, net. Cash flows from financing activities for the nine months ended December 31, 2022 were inflows of ¥834.4 billion primarily due to anincrease in Long-term borrowings and the comparable period in 2023 were inflows of ¥582.1 billion primarily due to an increase in Long-termborrowings.
We have revised certain prior period amounts of “Cash flows from operating activities” and “Cash flows from investing activities” to conform tothe current period presentation. See Item 4. Financial Information, 1. Consolidated Financial Statements, Note 1 “Basis of accounting” for further
information.
Balance Sheet and Financial Leverage
Total assets as of December 31, 2023, were ¥54,752.7 billion, an increase of ¥6,980.9 billion compared with ¥47,771.8 billion as of March 31,
2023, primarily due to increases in Trading assets and Securities purchased under agreements to resell. Total liabilities as of December 31, 2023, were¥51,392.1 billion, an increase of ¥6,844.4 billion compared with ¥44,547.7 billion as of March 31, 2023, primarily due to an increase in Securities soldunder agreements to repurchase. NHI shareholders’ equity as of December 31, 2023, was ¥3,279.5 billion, an increase of ¥131.0 billion compared with
¥3,148.6 billion as of March 31, 2023, primarily due to an increase in Accumulated other comprehensive income.
13

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 sets forth NHI shareholders’ equity, total assets, adjusted assets and leverage ratios:
Billions of yen, except ratios
March 31, 2023
December 31, 2023

NHI shareholders’ equity
Total assets
Adjusted assets(1)Leverage ratio(2)Adjusted leverage ratio(3)¥3,148.6
47,771.8
29,654.3
15.2x
9.4x

¥

3,279.5
54,752.7
34,287.5
16.7x
10.5x

(1) Represents total assets less Securities purchased under agreements to resell and Securities borrowed. Adjusted assets is a non-GAAP financial
measure and is calculated as follows:(2) Equals total assets divided by NHI shareholders’ equity.
(3) Equals adjusted assets divided by NHI shareholders’ equity.
Billions of yen
March 31, 2023
December 31, 2023

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

47,771.8¥

13,834.5
4,283.0
29,654.3¥

54,752.7¥

15,847.9
4,617.3
34,287.5

Total assets increased by 14.6% reflecting primarily increases in Trading assets and Securities purchased under agreements to resell. NHI
shareholders’ equity increased by 4.2% primarily due to an increase in Accumulated other comprehensive income. As a result, our leverage ratio
increased from 15.2 times as of March 31, 2023 to 16.7 times as of December 31, 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 10.5 times as of December 31, 2023.
14

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.
15

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 December 31, 2023,
our common equity Tier 1 capital ratio is 16.32%, Tier 1 capital ratio is 18.38% and consolidated capital adequacy ratio is 18.38% and we were 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 December 31, 2023 is 7.77% for the common equity Tier 1 capital ratio, 9.27% for the
Tier 1 capital ratio and 11.27% 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
December 31, 2023, our external TLAC as a percentage of risk-weighted assets is 32.81% 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 ofDecember 31, 2023.
Billions of yen, except ratios
December 31, 2023

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

2,995.3
3,371.9
3,372.3
9,082.1
6,642.1
2,620.5
18,344.7
16.32%
18.38%
18.38%
5.28%
32.81%
10.36%

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 quarterly 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.
16

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,
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 December 31, 2023, our consolidated leverage ratio is 5.28%.
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 December 31, 2023, our external TLAC as a percentage of leverage ratio exposure measure is 10.36% and we are in compliance with therequirement set out in the TLAC Notification.
17

Credit Ratings
There were no significant rating actions in the third quarter of the fiscal year ending March 2024.
18

(6) Current Challenges
There is no significant change to our current challenges nor new challenges for the nine months ended December 31, 2023.
19

3. Significant Contracts
Not applicable.
20

Item 3. Company Information
1. Share Capital Information(1) Total Number of Shares
A. Number of Authorized Share Capital
Authorized Share Capital(shares)Type

Common stock
Class 1 preferred stock
Class 2 preferred stock
Class 3 preferred stock
Class 4 preferred stock
Total

6,000,000,000
200,000,000
200,000,000
200,000,000
200,000,000
6,000,000,000

The “Authorized Share Capital” is stated by class and the total is the number of authorized share capital designated in the Articles of Incorporation.
B. Issued Shares
Number ofIssued Shares as ofDecember 31, 2023

Type

Common stock

3,163,562,601

Total

3,163,562,601

(1)
(2)
(3)

Number ofIssued Shares as ofFebruary 14, 2024

Trading Markets

3,163,562,601 Tokyo Stock Exchange(2)Nagoya Stock Exchange(3)Singapore Exchange
New York Stock Exchange
3,163,562,601—

Description

1 unit is 100 shares—

Shares that may have increased from exercise of stock options between February 1, 2024 and February 14, 2024 are not included in the number ofissued shares as of February 14, 2024.
Listed on the Prime Market.
Listed on the Premier Market.
21

(2) Stock Acquisition Rights
A. Stock option
Not applicable in this quarter.
B. Other stock acquisition rights
Not applicable in this quarter.
(3) Exercises, etc., of moving strike convertible bonds, etc.
None(4) Changes in Issued Shares, Common Stock, etc.

Increase/(Decrease)of Issued Shares

Date

December 31, 2023

—

Total
Issued Shares

Increase/(Decrease)of Common stock

3,163,562,601—(5) Major Shareholders
Not applicable as this is the third quarter.
22

Millions of yen
Increase/(Decrease) ofAdditional
paid-in capital
Common Stock594,493—

Additional
paid-in capital

559,676

(6) Voting Rights
The “Voting Rights” as of the end of the current third quarter is presented as of September 30, 2023, the most recent cutoff date, because thenumber of beneficiary shareholders as of December 31, 2023, could not be ascertained.
A. Outstanding Shares
Number of Shares

Stock without voting right
Stock with limited voting right (Treasury stocks, etc.)
Stock with limited voting right (Others)
Stock with full voting right (Treasury stocks, etc.)

Stock with full voting right (Others)
Shares less than 1 unit

(Treasury stocks)
Common stock(Crossholding stocks)
Common stock
Common stock
Common stock

Total Shares Issued

As of September 30, 2023
Number of Votes

—
—
—

—
—
—

149,131,300——

1,667,600
3,011,228,000—
30,112,280

1,535,701
3,163,562,601———

30,112,280

Voting Rights of Total Shareholders(1)

Description

—
—
—

—
—
Shares less than 1 unit
(100 shares)——

Stock with full voting right (Others) includes 2,000 shares held by Japan Securities Depository Center, Inc. Shares less than 1 unit includes 40
treasury stocks.
B. Treasury Stocks

Name

Address(Treasury stocks)
Nomura Holdings, Inc.

1-13-1, Nihonbashi, Chuo-ku,
Tokyo, Japan

Total
(1)

Directly
heldshares149,131,300
149,131,300

As of September 30, 2023
Indirectly
heldshares
Total——

Percentage ofIssued Shares(%)

149,131,300
149,131,300

In addition to the above, 1,667,600 shares are directly held by a subsidiary of the Company for the purpose of securities related business.
23

4.71
4.71

Item 4. Financial Information
12

Preparation Method of Consolidated Financial Statements(1)

The consolidated financial statements have been prepared in accordance with accounting principles, procedures, and presentations which
are required in order to issue American Depositary Shares, i.e., U.S. generally accepted accounting principles, pursuant to Article 95 of“Regulations Concerning the Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements” (Cabinet
Office Ordinance No. 64, 2007).

(2)

The consolidated financial statements have been prepared by making necessary adjustments to the financial statements of eachconsolidated company which were prepared in accordance with the accounting principles generally accepted in each country. Suchadjustments have been made to comply with the principles noted in (1) above.

Quarterly Review Certificate
Under Article 193-2 Section 1 of the Financial Instruments and Exchange Act, Ernst & Young ShinNihon LLC performed a quarterly
review of the consolidated financial statements for the nine and three months ended December 31, 2023.
<Note>
Although Ernst & Young ShinNihon LLC reported that they applied limited procedures in accordance with professional standards in Japanon the interim consolidated financial statements, prepared in Japanese for the nine and three months ended December 31, 2023, they havenot performed any such limited procedures nor have they performed an audit on the English translated version of the consolidated financial
statements for the above-mentioned periods which are included in this report on Form 6-K.
24

1. Consolidated Financial Statements(1) Consolidated Balance Sheets (UNAUDITED)Millions of yen
March 31,
December 31,
2023
2023

Notes

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 ¥1,979,022 at fair value option)
Receivables from customers (includes ¥39,107 and ¥29,025 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 ¥485,143 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 ¥8,862,427; includes ¥7,043 and ¥7,974
at fair value option)
Private equity and debt investments (includes ¥18,033 and ¥21,303 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 amortizationof ¥459,954 and ¥502,837)
Non-trading debt securities
Investments in equity securities (includes assets pledged of ¥953 and ¥802)
Investments in and advances to affiliated companies (includes assets pledged of ¥5,658 and ¥6,364)
Other (includes ¥168,780 and ¥184,431 at fair value option)
Total other assets
Total assets
25

¥

*2, 7
*2, 4

3,820,685
409,082
291,480
4,521,247¥

4,337,014
489,290285,786
5,112,090

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

4,957,782
321,908
1,188,688(3,916)
6,464,462*2

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

15,847,868
4,617,342
20,465,210

*2, 3
*2

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

20,150,489
111,484
20,261,973

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

466,800
349,186
88,300451,731
1,092,983
2,449,000
54,752,735

*7

*2
*2
*7
*2, 9
¥

¥

(1) Consolidated Balance Sheets—(Continued) (UNAUDITED)Millions of yen
March 31,
December 31,
2023
2023

Notes

LIABILITIES AND EQUITY
Short-term borrowings (includes ¥476,212 and ¥524,912 at fair value option)
Payables and deposits:
Payables to customers
Payables to other than customers
Deposits received at banks (includes ¥159,505 and ¥178,201 at fair value option)
Total payables and deposits
Collateralized financing:
Securities sold under agreements to repurchase (includes ¥666,985 and ¥793,371 at fair value option)
Securities loaned (includes ¥82,136 and ¥76,102 at fair value option)
Other secured borrowings
Total collateralized financing
Trading liabilities
Other liabilities (includes ¥34,984 and ¥48,418 at fair value option)
Long-term borrowings (includes ¥4,957,581 and ¥5,827,772 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 3,014,418,144 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 149,144,457 shares
Total NHI shareholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity
26

*2 ¥

1,008,541*4

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

1,445,280
2,441,592
2,214,784
6,101,656

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

18,938,951
1,509,922
289,881
20,738,754
10,539,741
1,331,862
11,805,442
51,392,086

594,493
707,189
1,647,005
318,454
3,267,141(118,574)
3,148,567
75,5753,224,142
47,771,802 ¥594,493700,203
1,693,511
370,5073,358,714(79,190)3,279,524
81,1253,360,649
54,752,735

*2

*2
*2

*2, 3
*2, 9
*2

¥

874,631

*14

*13

¥

(1) 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,
December 31,
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.
27

23 ¥
1,044
127
1,194 ¥

8
1,221
135
1,364

0 ¥
5
887
892 ¥

0
6
989
995

(2) Consolidated Statements of Income (UNAUDITED)Millions of yen
Nine months ended December 31
2022
2023

Notes

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

*4 ¥
*4
*4
*2, 3

*4

216,085
85,257204,323444,955
9,253
679,225(2,621)
79,584
1,716,061
705,417
1,010,644
450,230
88,946
155,863
50,182
16,363
122,277
883,861
126,783
43,71083,073(2,338)85,411

*12
¥
¥

¥
¥

257,410
124,979
225,969
357,245
9,892
1,894,409
4,219
112,417
2,986,540
1,869,642
1,116,898
496,440
100,016
160,794
50,884
17,697
109,311935,142
181,756
68,151
113,605
4,492
109,113

Yen
Nine months ended December 31
2022
2023

Notes

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

¥

*10
¥

28.40

¥

36.08

¥

27.44

¥

34.69

The accompanying notes are an integral part of these consolidated financial statements.
28

Millions of yen
Three months ended December 31
2022
2023

Notes

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

*4 ¥
*4
*4
*2, 3

77,50233,78367,035
142,132
8,050
373,283
644
69,812772,241
378,583
393,658*4

156,275
32,27554,004
17,1806,311
44,047
310,092
83,566
17,62965,937(1,007)
66,944

*12
¥
¥

¥
¥

85,71855,22977,496125,069
1,882
686,300(3,350)52,143
1,080,487
680,262400,225
170,629
34,31554,342
16,806
6,157
39,265
321,51478,711
26,57352,138
1,588
50,550Yen
Three months ended December 31
2022
2023

Notes

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

¥

*10
¥

22.30

¥

16.77

¥

21.51

¥

16.10

The accompanying notes are an integral part of these consolidated financial statements.
29

(3) Consolidated Statements of Comprehensive Income (UNAUDITED)Millions of yen
Nine months ended December 31
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¥

83,073¥¥¥

113,605

104,090(278)
103,81299,369(1,030)98,339

1,881
(492)
1,389

1,227
(337)
890

73,947(16,169)
57,778
162,979
246,052 ¥(1,457)
247,509 ¥(57,880)
11,573(46,307)52,922
166,527
5,361
161,166

Millions of yen
Three months ended December 31
2022
2023

Net income
Other comprehensive income (loss):
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 (loss)
Comprehensive income (loss)
Less: Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income (loss) attributable to NHI shareholders¥¥¥

The accompanying notes are an integral part of these consolidated financial statements.
30

65,937¥52,138(108,954)
296(108,658)(74,727)
263(74,464)

168
(151)
17

234
(113)
121

7,464
(2,512)
4,952(103,689)(37,752) ¥(2,277)(35,475) ¥5,083(3,161)
1,922(72,421)(20,283)
1,222(21,505)

(4) Consolidated Statements of Changes in Equity (UNAUDITED)Millions of yen
Nine months ended December 31
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 affiliated companies’ 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 (disposition) of subsidiary shares, net
Other net change in noncontrolling interests
Balance at end of period
Total equity
Balance at end of period(1)

Dividends per share

Nine months ended December 31, 2022 ¥5.00

¥

¥

¥

594,493594,493

697,507758(17)698,248

707,189(6,973)(13)
700,203

1,606,987
85,411(15,006)(1,835)—
1,675,557

1,647,005
109,113(24,112)(2,390)(36,105)
1,693,511

136,912102,931239,843

242,767
97,470340,237(43,803)
1,389(42,414)(32,174)890(31,284)

34,864
57,77892,642290,071

107,861(46,307)
61,554
370,507(112,355)(24,725)0
17,537—(119,543)(118,574)(20,010)0
23,28936,105(79,190)

3,138,826

3,279,524

58,198(3,299)(2,338)
881
(256)
7,896
61,08275,575(2,246)
4,492
869
346
2,089
81,125

3,199,908¥

Nine months ended December 31, 2023 ¥8.00

The accompanying notes are an integral part of these consolidated financial statements.
31

594,493594,4933,360,649

Millions of yen
Three months ended December 31
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 affiliated companies’ interests
Balance at end of period
Retained earnings
Balance at beginning of year
Net income attributable to NHI shareholders
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 (disposition) of subsidiary shares, net
Other net change in noncontrolling interests
Balance at end of period
Total equity
Balance at end of period¥¥

The accompanying notes are an integral part of these consolidated financial statements.
32

594,493594,493¥594,493594,493687,297
10,968(17)698,248

690,8429,360
1
700,203

1,608,564
66,94449
1,675,557

1,642,918
50,55043
1,693,511

347,231(107,388)
239,843414,335(74,098)
340,237(42,431)17(42,414)(31,405)121(31,284)

87,6904,952
92,642290,071

59,632
1,922
61,554
370,507(119,870)(2)0329(119,543)(79,375)(3)
0
188(79,190)

3,138,826

3,279,524

64,327(859)(1,007)(1,270)(340)
231
61,08280,808
91
1,588
(366)
1
(997)
81,125

3,199,908¥

3,360,649

(5) Consolidated Statements of Cash Flows (UNAUDITED)Millions of yen
Nine months ended December 31
2022
2023

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
Allowance for credit losses, net(1)(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:
Time deposits
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
Other secured borrowings
Margin loans and receivables(1)PayablesBonus accrual
Accrued income taxes, net
Other, net
Net cash provided by (used in) operating activities(1)Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities
Proceeds from sales of office buildings, land, equipment and facilities
Payments for purchases of investments in equity securities
Proceeds from sales of investments in equity securities
Increase in loans receivable at banks, net
Decrease (increase) in non-trading loans receivable, net(1)Decrease (increase) in non-trading debt securities, net
Business combinations or disposals, net
Decrease (increase) in investments in affiliated companies, net
Other, net
Net cash provided by (used in) investing activities(1)Cash flows from financing activities:
Increase in long-term borrowings
Decrease in long-term borrowings
Decrease in short-term borrowings, net
Increase in deposits received at banks, net
Proceeds from sales of common stock held in treasury
Payments for repurchases of common stock held in treasury
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
33¥

83,073¥

113,605

46,431(7,867)
2,621(27,432)
265
7,255

45,410(271)(4,219)
(973)
1,321
1,363

(71,487)
149,080(1,399,840)
1,167,248(51,315)
22,612(1,836,666)(360,538)(832,491)
565,506(63,035)(194,162)
59,715(38,582)(59,310)(423,441)(1,036,453)

2,495,520(297,488)(45,118)(323,765)
611,650(22,085)
42,554
189,052
580,649(144,586)
64,585(100)
24,691(63,196)
87,371
131,007—37,769(1,131)
136,410(117,550)
71,333—24,471(81,694)(602,928)(1,813)(447)(27,114)(4,316)(740,058)¥

1,519,686(837,791)(22,322)
246,8292(24,725)(57,262)
37,115(27,150)
834,382
145,21279,551
3,316,408
3,395,959 ¥

2,072,754(1,271,028)(163,683)
14,577
216(20,010)(60,164)
24,608(15,152)
582,118
93,708516,416
3,820,852
4,337,268¥¥

634,486
95,764

1,758,239
24,234¥¥(1)We have revised certain prior period amounts of “Cash flows from operating activities” and “Cash flows from investing activities” to conform tothe current period presentation. See Item 4. Financial Information, 1. Consolidated Financial Statements, Note 1 “Basis of accounting” for further
information.

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
Nine months ended December 31
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¥

3,395,791¥

4,337,014¥¥

168
3,395,959¥¥

254
4,337,268

Non-cash—
Total amount of right-of-use assets recognized during the nine months ended December 31, 2022 and December 31, 2023 were ¥20,325 millionand ¥21,492 million, respectively.
The accompanying notes are an integral part of these consolidated financial statements.
34

Notes to the Consolidated Financial Statements (UNAUDITED)
1. Basis of accounting:
In December 2001, Nomura Holdings, Inc. (“the Company”) filed a registration statement, in accordance with the Securities Exchange Act of1934, with the United States Securities and Exchange Commission (“SEC”) in order to list its American Depositary Shares (“ADS”) on the New York
Stock Exchange. Since then, the Company has had an obligation to file an annual report on Form 20-F with the SEC in accordance with the Securities
Exchange Act of 1934.
Therefore, the Company and other entities in which it has a controlling financial interest (collectively “Nomura”) prepares consolidated financial
statements in accordance with the accounting principles, procedures and presentations which are required in order to issue ADS, i.e., U.S. generally
accepted accounting principles (“U.S. GAAP”), pursuant to Article 95 of “Regulations Concerning the Terminology, Forms and Preparation Methods ofQuarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64, 2007).
The following paragraphs describe the major differences between U.S. GAAP applied by Nomura and accounting principles generally accepted inJapan (“Japanese GAAP”).
Scope of consolidation—
Under U.S. GAAP, the scope of consolidation is mainly determined by ownership of a majority of the voting interests in an entity or by
identifying the primary beneficiary of variable interest entities. Under Japanese GAAP, the scope of consolidation is determined by a “financial
controlling model”, which takes into account ownership level of voting interests in an entity and other factors.
Unrealized gains and losses on investments in debt and equity securities held for non-trading purposes—
Under U.S. GAAP applicable to broker-dealers, non-trading securities, including investments in equity securities held for operating purposes, aremeasured at fair value with changes in fair value recognized in earnings. Under Japanese GAAP, these securities are also measured at fair value, but
unrealized gains and losses, net of applicable income taxes, are reported in other comprehensive income.
Retirement and severance benefits—
Under U.S. GAAP, gains or losses resulting from either experience that is different from an actuarial assumption or a change in assumption isamortized over the average remaining service period of employees when a net gain or loss at the beginning of the year exceeds the “Corridor” which isdefined as 10% of the larger of projected benefit obligation or the fair value of plan assets. Under Japanese GAAP, these gains or losses are amortizedover a certain period, regardless of the Corridor.
Amortization of goodwill and equity method goodwill—
Under U.S. GAAP, goodwill is not amortized and is tested for impairment periodically. Under Japanese GAAP, goodwill is amortized over acertain periods of less than 20 years using the straight-line method.
Changes in the fair value of derivative contracts—
Under U.S. GAAP, all derivative contracts, including derivative contracts that have been designated as hedges of specific financial assets orfinancial liabilities, are carried at fair value, with changes in fair value recognized either in earnings or other comprehensive income. Under Japanese
GAAP, derivative contracts that have been entered into for hedging purposes are carried at fair value with changes in fair value, net of applicable income
taxes, recognized generally in other comprehensive income.
35

Financial assets and financial liabilities—
Under U.S. GAAP, the fair value option may be elected for eligible financial assets and financial liabilities which would otherwise be carried on abasis other than fair value (“the fair value option”). Where the fair value option is elected, the financial asset or liability is carried at fair value withchanges in fair value are recognized in earnings, except for movements attributable to own credit which are reported in other comprehensive income forfinancial liabilities. In addition, non-marketable equity securities which are carried at fair value under U.S. GAAP applicable to broker-dealers arecarried at cost less impairment loss under Japanese GAAP.
Offsetting of amounts related to derivative cash collateral—
Under U.S. GAAP, an entity that is a party to a master netting arrangement is permitted to offset fair value amounts recognized for the right toreclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against fair value amounts recognized for derivative
instruments that have been offset under the same master netting arrangement. Under Japanese GAAP, offsetting of such amounts is not permitted.
Stock issuance costs—
Under U.S. GAAP, stock issuance costs are deducted from capital. Under Japanese GAAP, stock issuance costs are either immediately expensed
or capitalized as a deferred asset and amortized over periods of up to three years using the straight-line method.
Accounting for change in controlling interest in a consolidated subsidiary’s shares—
Under U.S. GAAP, when a parent’s ownership interest decreases as a result of sales of a subsidiary’s common stock by the parent and thesubsidiary becomes an equity method investee, the parent’s remaining investment in the former subsidiary is measured at fair value as of the date of lossof the controlling interest and a related valuation gain or loss is recognized in earnings. Under Japanese GAAP, the remaining investment on the parent’s
consolidated balance sheet is computed as the sum of the carrying amount of investment in the equity method investee recorded in the parent’s standalone balance sheet as adjusted for the share of net income or losses and other adjustments from initial acquisition through to the date of loss of acontrolling interest multiplied by the ratio of the remaining shareholding percentage against the holding percentage prior to loss of control.
Stock-based and other compensation awards—
Under U.S. GAAP, stock-based payment awards such as restricted stock units (“RSUs”) issued to employees are classified as equity awards, withtotal compensation costs measured based on the fair value of the Company’s common stock on the grant date. Under Japanese GAAP, totalcompensation costs of RSUs are measured at fair values at reporting date.
36

Where the effect of application of an accounting policy under Japanese GAAP has a significant impact on amounts reported by Nomura under
U.S. GAAP in Income before income taxes, such higher or (lower) impact is disclosed in the following table for the nine and three months ended
December 31, 2022 and 2023.
Millions of yen
Nine months ended
December 31,
December 31,
2022
2023

Higher (lower) Income before income taxes based on Japanese GAAP
Unrealized gains and losses on investments in equity securities held for operating purposes
Unrealized gains and losses on investments in equity securities for other than operating purposes
Unrealized gains and losses on investments in debt securities held for non-trading purposes
Amortization of goodwill and equity method goodwill
Financial assets and financial liabilities elected for the fair value option
Stock-based and other compensation awards
Total

¥

¥

(24,742)1,484(6,006)
2,271(26,302)2,542(50,753)¥¥(16,455)
177
158
2,986
5,320
1,044
(6,770)Millions of yen
Three months ended
December 31,
December 31,
2022
2023

Higher (lower) Income before income taxes based on Japanese GAAP
Unrealized gains and losses on investments in equity securities held for operating purposes
Unrealized gains and losses on investments in equity securities for other than operating purposes
Unrealized gains and losses on investments in debt securities held for non-trading purposes
Amortization of goodwill and equity method goodwill
Financial assets and financial liabilities elected for the fair value option
Stock-based and other compensation awards
Total

¥

¥

(21,239)
456
660
612
11,848857(6,806)¥¥(15,111)
926
3,263
1,017
13,036274
3,405

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 nine months ended December 31, 2023.
37

New accounting pronouncements recently adopted—
No new accounting pronouncements relevant to Nomura were adopted during the three months ended December 31, 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, aninterest rate reduction, other-than-insignificant
payment delay or term 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.

38

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 afterJanuary 1, 2024, 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)”

ASU 2023-07 “Segment
Reporting (Topic 280):
Improvements toReportable Segment
Disclosures”

ASU 2023-08“Intangibles—Goodwill
and Other—Crypto Assets(Subtopic 350-60):
Accounting for andDisclosure of Crypto
Assets”

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.

•

Enhances segment reporting by introducing
incremental interim and annual disclosure requirements
for more disaggregated expense information about apublic entity’s reportable segments and expanding
frequency of existing segment disclosures.

•

Requires annual disclosures of information about thechief operating decision maker.

•

Clarifies circumstances where disclosure of more than
one measure of a segment’s profit or loss are permitted.

•

Requires all in-scope crypto assets be subsequently
measured at fair value at each reporting period throughearnings.

•

Presentation of in-scope crypto assets in the financial
statements to be shown separately from otherintangible assets.

•

Introduces new disclosure requirements for in-scope
crypto assets applicable to all entities.

39

Expected adoption
date and method of
adoption

Effect on these
consolidated financial
statements

Nomura currently
plans to adopt theamendments
prospectively from
April 1, 2024.

No material financial impact
expected.

Nomura currently
plans to adopt theamendments
retrospectively fromMarch 31, 2025.

No material financial impact
expected.

Nomura currently
plans to adopt theamendments basedon a modified
retrospective
approach from
April 1, 2025.

No material financial impact
expected.

ASU 2023-09 “Income
Taxes (Topic 740):
Improvements to Income
Tax Disclosures”•

Introduces new disclosure requirements for in-scope
crypto assets applicable to all entities.

•

Introduces incremental annual disclosures fordisaggregated information about an entity’s effective
tax rate reconciliation and information on income taxes
paid.

•

Removes certain existing disclosure requirements inrelation to unrecognized tax benefits and temporary
differences for which a deferred tax liability is notrecognized.

Nomura currently
plans to adopt theamendments
prospectively from
April 1, 2025.

No material financial impact
expected.

Revision—
For the nine months ended December 31, 2023, Nomura made a revision of the presentation in the Consolidated Statements of Cash Flows toclassify cash flows from non-trading loans, other than short-term secured margin loans, as investing activities. Nomura also revised comparative
information in the Consolidated Statements of Cash Flows for the nine months ended December 31, 2022, as shown in the table below. There was no
impact to the Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, or Consolidated
Statements of Changes in Equity for any period presented.
Millions of yen
Nine months ended December 31, 2022
As reported
Effect of change
As revised

Net cash used in operating activities
Net cash provided by investing activities
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
40(949,082)
49,039834,382
145,21279,551
3,316,408
3,395,959(87,371)
87,371—————(1,036,453)
136,410
834,382
145,21279,551
3,316,408
3,395,959

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.
41

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.
42

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.
43

The following tables present the amounts of Nomura’s financial instruments carried at fair value on a recurring basis as of March 31, 2023 and December 31, 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

44

Billions of yen
March 31, 2023
Counterparty
and CashCollateral
Netting(1)Level 3

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

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

87
188
¥ 7,790247
164¥28,500

3
196¥1,093——¥ (16,943)¥¥ 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

¥

—
—
—
—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—

—
—
—
—
—
(16,329)(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

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

45

Billions of yen
December 31, 2023
Counterparty
and CashCollateral
Level 3
Netting(1)Balance as ofDecember 31,
2023¥

Level 1

Level 2

¥ 2,255
3
3,454
—
3,836
—
—
—
—
—
—
—
588
10,136¥ 1,393
3
—
115
2,277
1,344
1
3,037
2,927
110
50
52
0
8,272

¥

0
19
0
—
—
—
19
¥10,155——

1,967
12,364
208
5,081
1
—
19,621¥27,893
1,737
474

9
139
48
51
—
—
247
¥ 743
272
11

—
—
—
—
—
(18,584)(18,584)¥ (18,584)
—
—

102
332
¥10,589225
66¥30,395

21
218¥1,265——¥ (18,584)¥¥ 2,504
1,611
—
3,422
—
—
—
79
7,616

¥

¥

¥

¥

1
14
1
1
2
—
19
¥ 7,635
—
—
—
20
265
¥ 7,920

2,499
11,950
240
4,816
2
—
19,507¥20,465
491
161
869
5,279
72
¥27,337

11
—
5
747
195
0
—
—
958

5
74
—
0
4
194
0
29
—
29
131
55
4
496

0
—
—
0
1
—
—
0
1

4
128
94
41
—
—
267
¥ 268
35
17
—
483
37
¥ 840

¥

—
—
—
—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

—
—
—
—
—
(17,828)(17,828)¥ (17,828)
—
—
—
—
—
¥ (17,828)

¥

¥

¥

3,653
80
3,454
115
6,117
1,538
1
3,066
2,927
139
181
107
592
18,904
1,976
12,522
2565,132
1(18,584)
1,303
20,207
2,009
485
348
616
23,665

2,515
1,611
5
4,169
196
0
—
79
8,575
2,504
12,092335
4,858
4(17,828)
1,965
10,540
526
178
869
5,782
374
18,269

(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 December 31, 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 December 31, 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 ¥61,826 million and ¥26,474 million, respectively, as of December 31, 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 December 31, 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.
46

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.
47

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.
48

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).
49

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.
50

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.
51

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 December 31, 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”)

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%

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%

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

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%

24.3%
13.2%
20.3%
9.2%
13.9%
19.0%
2.0%
52.6%

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

8

DCF

258

DCF

8

DCF

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

95
28

DCF
DCF

Yields
Prepayment rates
Loss severities
Loss severities
Yields
Prepayment rates
Default probabilities
Loss severities

Investment trust funds and other2

DCF

Liquidity discounts

52

Interrelationships
between valuation
inputs(6)Not applicable
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
Not applicable
Change in default probabilities
typically accompanied bydirectionally similar change inloss severities and oppositechange in prepayment rates
Not applicable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

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

3
30

Payable and deposits

17Long-term borrowings

493

Other liabilities

21

DCF
DCF/
Optionmodels
DCF/
Optionmodels
DCF
DCF/
Optionmodels
DCF

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)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
Liquidity discounts

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.

Recovery rates
Volatilities
Correlations

4.5 – 95.0%
15.4 – 100.6%(0.80) – 0.95

65.5%
—
—

Higher fair value
Higher fair value
Higher fair value

Not applicable
No predictableinterrelationship

Volatilities
Correlations

10.7 – 11.3%
0.40 – 0.98——

Higher fair value
Higher fair value

No predictableinterrelationship

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

53

Interrelationships
between valuation
inputs(6)No predictableinterrelationship
No predictableinterrelationship

No predictableinterrelationship

No predictableinterrelationship
No predictableinterrelationship
Not applicableNot applicableDecember 31, 2023

Financial Instrument

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

Fairvalue inbillionsof yen¥5
74

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
Credit spreads

75.0%
5.4 – 17.1%
0.0 – 2.0%
7.5 – 11.0%
5.0 – 30.0%
2.5 – 11.9 x
12.8 – 29.5 x
5.0 – 20.0%
0.0 – 1.6%
0.5 – 20.6%
0.0 – 34.3%
0.0 – 100.0%
17.7 – 41.2%
12.0 – 15.0%
0.0 – 100.0%
0.0 – 17.3%
6.0 – 70.0%
20.0%
2.0%
46.5 – 100.0%
0.0 – 0.1%

75.0%
9.4%
0.6%
9.7%
15.9%
9.0 x
15.9 x
10.2%
0.7%
14.2%
7.3%
72.6%
30.5%
13.4%
17.2%
2.7%
11.0%
20.0%
2.0%
80.9%
0.0%

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
Lower fair value

Liquidity discounts

0.0 – 2.9%

2.0%

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

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)

4

DCF

194

DCF

29

DCF

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

131
55

DCF
DCF

Investment trust funds and other

4

DCF

54

Weighted
Average(2)(3)Interrelationships
between valuation
inputs(6)Not applicable
No predictableinterrelationship

No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
No predictableinterrelationship
Not applicable
Change in default
probabilities typicallyaccompanied by directionallysimilar change in loss
severities and oppositechange in prepayment rates
Not applicableDecember 31, 2023

Financial Instrument

Fair
value inbillionsof yenDerivatives, net:
Equity contracts¥

Significant
unobservable input

Range ofvaluation inputs(1)Weighted
Average(2)(3)5

OptionmodelsInterest rate contracts

11

DCF/
OptionmodelsCredit contracts(46)

Foreign exchange contracts

10

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

0.0 – 17.3%
4.4 – 105.4%(0.85) – 0.99
1.0 – 4.3%
11.0 – 14.0%
39.3 – 153.3 bp(1.00) – 1.00
0.0 – 34.1%
0.0 – 90.0%
0.25 – 0.83
7.4 – 20.5%
0.24 – 0.88
0.0 – 21.1%
30.0 – 100.0%
3.1%

—
—
—
—
—
—
—
—
—
—
—
—
6.7%
86.6%
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
Lower fair value
Higher fair value
Lower fair value

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

4.8 – 8.5%
11.0%
3.0%
3.6 – 6.0 x
7.8 – 41.1 x
0.4 – 1.3 x
25.0 – 30.0%

5.3%
11.0%
3.0%
4.3 x
10.8 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.

Volatilities
Correlations
Volatilities
Correlations
Loss severities
Volatilities
Volatilities
Correlations
Recovery rates

15.0 – 49.7%(0.71) – 0.97
11.0 – 11.8%
0.40 – 0.98
13.6%
11.0 – 49.7%
47.7 – 58.2 bp(1.00) – 0.98
69.0 – 93.8%

—
—
—
—
13.6%
20.1%
—
—
83.9%

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

No predictableinterrelationship
No predictableinterrelationship
Not applicable
No predictableinterrelationship

Loans and receivables

272

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

11

DCF

21
218

DCF
DCF
Marketmultiples

Liabilities:
Trading liabilities
Short-term borrowings

35

Payables and deposits

17Long-term borrowings

483

Other liabilities

37

(2)
(3)
(4)

Interrelationships
between valuation
inputs(6)Valuationtechnique

DCF/
Optionmodels
OptionmodelsDCF(1)

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)

DCF/option
models
DCF/option
modelsDCF
DCF/option
modelsDCF

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.
55

(5)

(6)
(7)

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.
56

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.
57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 nine and three months ended December 31, 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 nine months ended December 31, 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
Nine months ended December 31, 2022

Assets:Trading assets and private equity and debt
investments
Equities
Private equity and debt investments
Japanese agency and municipal
securities
Foreign government, agency andmunicipal securities
Bank and corporate debt securities andloans 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 anddebt 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 andmunicipal 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 ofnine months
ended
December 31,
2022

Total gains(losses)
recognized
in revenue(1)Total gains(losses)
recognized inothercomprehensive
incomePurchases /issues(2)Sales /
redemptions(2)Settlements

Foreignexchange
movements

Transfers
intoLevel 3(4)(5)Transfers
out ofLevel 3(5)Balance as ofnine months
ended
December 31,
2022

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

14
32
2

(2)
8
0

—
—

10
13

—

0

(11)
(18)
0

—
—
—

1
0
—

1
—
—

(6)
—
—

7
35
2

10

1

—

14

(18)

—

0

0

0

7

220

(4)

—

237

(212)

—

12

79

(20)

312

7

0

—

0

0

—

—

(7)

0

8
79

(1)
(13)

—
—

2
128

(11)
(87)

—
—

0
7

10
—

—
—

8
114

26
0

(5)
0

—
—

43
25

(47)
(23)

—
—

2
1

4
0

(1)
—

22
3

¥

398

¥

¥

10
(11)
(33)
10
(24)
374
205
16
—
197
792

¥

0

¥

(16)

¥

¥

3
2
22
2
29
13
19
0
0
(23)
9

¥

0

¥

—

¥

¥

—
—
—
—
—
—
—
—
—
—
—

¥

—

¥

472

¥

¥

—
—
—
—
—
472
52
—
0
1
525

¥

0

¥

(427)

¥

—

¥

(22)
(1)
(2)
10
(15)
(15)
—
—
—
—
(15)

¥

—

¥

—
0

¥

—
—
0
(427)
(74)
—
—
(9)
(510)

¥

¥

(1)

¥

¥

0

¥

23

¥

(4)
3
(3)
1
(3)
20
11
1
0
14
46

¥

94

¥

3
10
(2)
0
11
105
58
—
3
1
167

¥

¥

0

¥

2

¥

0
3

0
0

—
—

1
1

0
(5)

—
—

0
0

—

—

¥

0
0
3

¥

—
—
—

¥

1
0
3

¥

(1)
0
(7)

¥

—
—
—

¥

0
0
0

¥

58
8
479
32
580

¥

0
0
4
—
4

¥

35
16
192
3
249

¥

(25)
0
(112)
(1)
(145)

¥

—
—
—
—
—

¥

0
—
2
3
5

¥

0
0

¥

0
2
29
17
48

58

¥

(34)

¥

19
(8)
0
(1)
10
(24)
(34)
—
—
—
(58)

¥

510

¥

9
(5)
(18)
22
8
518
237
17
3
181
956

¥

—

¥

1

6

—
(1)

1
4

¥

—
—
8

¥

—
—
(1)

¥

0
0
6

¥

8
7
85
0
108

¥

(51)
(15)
(160)
(1)
(228)

¥

25
14
453
19
517

Billions of yen
Nine months ended December 31, 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 ofnine months
ended
December 31,
2023

Total gains(losses)
recognized
in revenue(1)Total gains(losses)
recognized inothercomprehensive
incomePurchases /Sales /
issues(2)redemptions(2)

¥

¥

¥

¥

1

—
—
—
—

¥

(4)
0
0
0
(1)
0
5 ¥

—
—
—
—
—
—
—

6
11
(32)
19
4
461 ¥
191
17

(1)
(16)
(3)
(7)
(27)
(22) ¥
15
0

—
—
—
—
—
—
—
—

3
196
868

0
11
4

¥

—
0
0

¥

(1) ¥
0
2
—
0
1 ¥

—
—
—
—
—
—

¥

(1)
0
(24)
5
(19) ¥

¥

¥

¥

¥

4
52
2
8
258
0
8
95
28
2
457

¥

1
0
3
—
0
4

¥

30
17
493
21
565

0
9
—

¥

¥

59

Settlements

Foreignexchange
movements

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

¥

¥

¥

23 ¥
13
—
4

(18) ¥
(1)
0
(8)

—
—
—
—

256
0
23
163
98
40
620 ¥

(322)
0
(2)
(134)
(86)
(38)
(609) ¥

—
—
—
—
—
—
—

—
—
—
—
—
620 ¥
109
—

—
—
—
—
—
(609) ¥
(64)
(7)

(3)
(2)
(3)
(2)
(10)
(10) ¥
—
—

0
5
734 ¥

(2)
(4)
(686) ¥

¥

7 ¥
—
4
0
—
11 ¥

0
0
(1)
—
(1) ¥

46
2
205
22
286 ¥

¥

¥

¥

¥

(7) ¥
—
(2)
(4)

5
74
0
4

¥

(48)
—
0
—
(3)
0
(64) ¥

194
0
29
131
55
4
496

0
1
(1)
2
2
23 ¥
14
1

4
(27)
(5)
0
(28)
38 ¥
52
—

(1)
44
(2)
(2)
39
(25) ¥
(45)
—

5
11
(46)
10
(20)
476
272
11

—
—
(10) ¥

0
10
48

20
—
110

—
—
(70) ¥

21
218
998

(8) ¥
—
(5)
0
0
(13) ¥

—
—
—
—
—
—

0
0
0
—
0
0

¥

(1) ¥
—
(2)
—
—
(3) ¥

0
0
1
—
0
1

(35)
—
(177)
(2)
(227) ¥

—
—
—
—
—

¥

(13)
(6)
(117)
0
(139) ¥

35
17
483
37
573

¥

¥

¥

1
1
—
0
11
—
0
7
1
0
21

¥

¥

¥

¥

¥

5
4
50
0
62

—

¥

43
—
—
—
18
—
66

0
—
3
—
—
3

1
4
1
6

2
—
—
3

Balance as ofnine months
ended
December 31,
2023

¥

¥

Billions of yen
Three months ended December 31, 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 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

Beginningbalance as ofthree months
ended
December 31,
2022

Total gains(losses)
recognizedin netrevenue(1)

¥

¥

¥

¥

¥

¥

¥

¥

16
39
2
10
272
7
9
103
20
0
478

Total gains(losses)
recognized inothercomprehensive Purchases /Sales /
incomeissues(2)redemptions(2)

¥

(1) ¥
6
0
(1)
(2)
0
0
(1)
(3)
1
(1) ¥

—
—
—
—
—
—
—
—
—
—
—

(5)
35
(33)
21
18
496 ¥
221
19

(10)
(20)
11
2
(17)
(18) ¥
13
0

—
—
—
—
—
—
—
—

3
189
928

0
11
6

—
—
—

1
0
4
—
0
5
29
21
415
23
493

¥

¥

¥

¥

0
0
0
—
0
0
0
1
16
8
25

¥

¥

¥

¥

60

¥

Settlements

¥

0
—
—
0
25
—
9
—
4
—
38

—
—
—
—
—
(152) ¥
(26)
—

2
(18)
4
1
(11)
(11) ¥
—
—

¥

—
1
216 ¥

—
(8)
(186) ¥

— ¥
—
—
—
—
— ¥
0
0
2
—
2 ¥

0 ¥
—
0
0
0
0 ¥
9
1
72
1
83 ¥

0 ¥
0
(2)
—
—
(2) ¥
(8)
0
(35)
4
(41) ¥

¥

(9) ¥
(15)
0
(9)
(55)
0
(11)
(17)
(13)
(23)
(152) ¥

—
—
—
—
—
—
—
—
—
—
—

1
—
—
—
1
186 ¥
29
—

¥

Transfers
intoLevel 3(4)(5)

(1) ¥
0
—
0
(16)
—
(1)
(8)
(1)
0
(27) ¥

¥

3 ¥
5
0
7
89
0
3
37
16
25
185 ¥

Foreignexchange
movements

Transfers
out ofLevel 3(5)

¥

(1) ¥
—
—
0
(1)
(7)
(1)
—
(1)
—
(11) ¥

7
35
2
7
312
0
8
114
22
3
510

0
3
0
(1)
2
(25) ¥
(17)
(2)

4
(1)
0
0
3
41 ¥
23
—

17
(4)
0
(1)
12
1 ¥
(6)
—

9
(5)
(18)
22
8
518
237
17

—
—
(11) ¥

0(12)(56) ¥

—
0
64

¥

—
—
(5) ¥

3
181
956

—
—
—
—
—
—
—
—
—
—
—

0 ¥
0
0
—
0
0 ¥
0
—
(2)
(1)
(3) ¥

—
—

¥

—

1
1
4
0
0
6
25
14
453
19
517

¥

¥

¥

¥

Balance as ofthree months
ended
December 31,
2022

3
—
—
3
4
—
47
—
54

¥

¥

¥
1
(1)
—
—
—
¥
(9)
(7)
(26)
—
(42) ¥

Billions of yen
Three months ended December 31, 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

(1)

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

Beginningbalance as ofthree months
ended
December 31,
2023

Total gains(losses)
recognizedin netrevenue(1)

¥

¥

¥

¥

¥

¥

¥

¥

28
73
0
2
250
0
10
141
27
1
532

Total gains(losses)
recognized inothercomprehensive Purchases /Sales /
incomeissues(2)redemptions(2)

¥

0 ¥
2
—
0
(2)
0
0
3
1
0
4 ¥

—
—
—
—
—
—
—
—
—
—
—

6
(8)
(42)
19
(25)
507 ¥
256
12

0
(8)
2
(5)
(11)
(7) ¥
5
0

—
—
—
—
—
—
—
—

0
13
11

23
216
1,014

0
0
5
0
0
5
45
16
472
34
572

¥

¥

¥

¥

¥

Settlements

1 ¥
0
—
1
28
—
21
65
47
8
171 ¥

(17) ¥
(1)
0
(1)
(63)
0
(1)
(71)
(26)
(5)
(185) ¥

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
171 ¥
41
—

¥

—
0
0 ¥

0 ¥
0
1
—
0
1 ¥
(1)
(1)
(18)
0
(19) ¥

— ¥
—
—
—
—
— ¥
0
0
1
—
1 ¥

¥

¥

Foreignexchange
movements

¥

(1) ¥
0
—
0
(7)
—
(1)
(7)
(1)
0
(17) ¥

0
—
—
2
5
—
—
—
7
—
14

—
0
—
—
0
(185) ¥
(17)
—

0
(13)
(1)
(3)
(17)
(17) ¥
—
—

0
1
213 ¥

(1)
(2)
(205) ¥

0 ¥
—
0
—
—
0 ¥
15
—
87
5
107 ¥

—

¥
0
(3)
0
—
(3) ¥
(19)
(1)
(83)
0
(106) ¥¥

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

¥

(6) ¥
—
—
0
(17)
—
—
—
—
—
(23) ¥

5
74
0
4
194
0
29
131
55
4
496

0
0
1
(1)
0
(17) ¥
(11)
(1)

1
(4)
(6)
1
(8)
6 ¥
10
—

(2)
44
0
(1)
41
18 ¥
(12)
—

5
11
(46)
10
(20)
476
272
11

—
—
(17) ¥

0(10)(39) ¥

—
—
16

(1)
—
5 ¥

21
218
998

—
—
—
—
—
—
—
—
—
—
—

0 ¥
0
0
0
0
0 ¥
(1)
—
(2)
(2)
(5) ¥

—
—

0 ¥
—
0
—
—
0 ¥
(6)
—
(14)
—
(20) ¥

0
0
1
—
0
1
35
17
483
37
573

¥

¥

¥

¥

Balance as ofthree months
ended
December 31,
2023

¥

¥
0

—
—
0
0
1
6
0
7

¥

¥

Includes gains and losses reported primarily within Net gain on trading, Gain 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 nine and three months ended December 31, 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.
61

Unrealized gains and losses recognized for Level 3 financial instruments
The following table presents the amounts of unrealized gains (losses) for the nine and three months ended December 31, 2022 and 2023, relating
to those 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
Nine months ended December 31
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

¥

¥

¥

¥

¥

¥
62

(2)
5
0
(1)
(4)
0
0
0
(5)
0
(7)
5
(13)
15
(6)
1
(6)
16
0
(26)
(16)

0
0
0
0
1
2
42
0
45

¥

¥

0
10
—
1
(8)
0
1
1
(3)
0
2
1
(28)
2
(10)
(35)
(33)
21
0

¥

8
(4)

¥

—

¥

¥

0
1
1
0
0
(11)
3
(7)

Billions of yen
Three months ended December 31
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
Bank and corporate debt securities
Total trading liabilities
Short-term borrowings(3)Payables and deposits(3)Long-term borrowings(3)Other liabilities
Total
(1)

(2)
(3)

¥

¥

¥

¥
¥

¥

0
3
0
(1)
(4)
0
0
1
(3)
0
(4)
(9)
(30)
23
1
(15)
(19)
13
0
12
6

0
0
1
1
21
5
28

¥

¥

¥

¥
¥

¥

0
2
—
0
(6)
0
0
2
1
0
(1)
1
(23)
9
(2)
(15)
(16)
3
0
10
(3)

1
1
0
(1)
(13)
1
(12)

Includes gains and losses reported within Net gain on trading, Gain 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 and losses of ¥5 billion and ¥0 billion for the nine months ended December 31, 2022 and 2023 respectively, and¥2 billion and ¥1 billion for the three months ended December 31, 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.
63

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 andDecember 31, 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
(1)
(2)
(3)

Fair value

Unfundedcommitments(1)

¥

¥

¥

12
11
24
3
50

¥

1
9
10
1
21

Fair value

Unfundedcommitments(1)

¥

¥

¥

11
13
30
4
58

¥

2
6
14
—
22

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

Same day-30 days———

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

Same day-30 days———

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.
64

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.
65

The following table presents gains (losses) due to changes in fair value for financial instruments carried at fair value using the fair value option for
the nine and three months ended December 31, 2022 and 2023.
Billions of yen
Nine months ended December 31
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

¥

¥

0 ¥
2
35
0
(24)
13 ¥

0
1
41
7
9
58

156 ¥
15
(1)
470
9
649 ¥

27
9
(14)
(80)
0
(58)

Billions of yen
Three months ended December 31
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)
(3)
(4)
(5)
(6)

¥

¥

1
0
19
2
11
33

¥

¥

0
0
14
4
10
28

30 ¥
6
(4)
28
(7)
53 ¥

55
(3)
(17)
(226)
1
(190)

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.
66

As of March 31, 2023 and December 31, 2023, Nomura held an economic interest of 39.32% and 39.90% 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 nine months ended December 31, 2022, changes in gains and losses attributable to instrument-specific credit risk of loans and receivables
elected for the fair value option were primarily due to a recovery of increasing in the estimated fair value of certain transactions with a U.S. client inconnection with the U.S. Prime Brokerage Event elected to be measured at fair value and not significant from others. See Note 15 “Segment andgeographic information” for further information on this recovery of increasing in the estimated fair value.
For the nine months ended December 31, 2023, there was no significant impact on loans and receivables 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 nine and three months ended December 31, 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 nine and three months
ended December 31, 2022 and 2023 and the cumulative amounts recognized in accumulated other comprehensive income as of December 31, 2022 and2023.
Billions of yen
Nine months period ended December 31
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

¥

76
0
123

¥

(57)
0
91

Billions of yen
Three months period ended December 31
2022
2023

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

¥

13 ¥
(1)

6
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 December 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 ¥27 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 ¥409 billion less than theprincipal balance of such Long-term borrowings.
67

Investment 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.
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 18% as ofDecember 31, 2023.
The following tables present geographic allocations of Nomura’s trading assets related to government, agency and municipal securities as ofMarch 31, 2023 and December 31, 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(1)¥3,569Billions of yen
March 31, 2023
EU & U.K.

¥

2,309

Other

Total(1)¥ 925¥7,581

Billions of yen
December 31, 2023
U.S.
EU & U.K.
Other¥2,936¥

1,809¥1,372

Total(1)¥9,686

Other than above, there were ¥324 billion and ¥255 billion of government, agency and municipal securities reported within Other assets—Nontrading debt securities in the consolidated balance sheets as of March 31, 2023 and December 31, 2023, respectively. These securities areprimarily 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.
68

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

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

¥

¥

Liabilities:
Short-term borrowings
Deposits received at banks
Securities sold under agreements to repurchase
Securities loaned
Other secured borrowings
Long-term borrowings
Total
(1)
(2)

¥ 4,337
489
286
4,955
15,848
4,617¥30,532¥ 4,337
489
286
4,953
15,848
4,617¥30,530¥4,337—————¥4,337

¥

—
489
286
3,621
15,837
4,617¥24,850

¥ —
—
—
1,332
11
—
¥1,343

¥

¥

¥ —
—
—
—
—
21
¥ 21

¥

¥

875
2,215
18,9391,510
290
11,805¥35,634

Includes financial instruments which are carried at fair value on a recurring basis.
Carrying values are shown after deducting relevant allowances for credit losses.
69

31
17
—
—
—
528
¥ 576

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

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

978
2,121
14,218
1,557
334
9,795
¥29,003875
2,214
18,9391,510
290
11,803¥35,631840
2,197
18,9391,510
290
11,267¥35,043

35
17
—
—
—
515
¥ 567

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 December 31, 2023, there were no significant amount of assets or liabilities which were carried at fair value on anonrecurring basis.
70

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.
71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 December 31, 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
72

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
December 31, 2023
Impact ofmaster netting
Impact ofagreements
collateralNet exposure tocredit risk

¥

¥

¥

16,490(14,056)¥ (2,012)

422

Derivative activities
The following tables quantify of Nomura’s derivative positions as of March 31, 2023 and December 31, 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(1)(2)

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
December 31, 2023
Derivative assets
Derivative liabilities
Fair value
Fair value(1)¥¥60,9844,232,505
36,008380,233271¥ 4,710,001

¥

¥

¥

3,124
173
¥
3,297
¥ 4,713,298

¥
¥

¥
¥

1,976
12,514256
5,132
1
19,879¥8—
819,887

¥

¥

¥
¥

180
0
180
18,336

2,504
11,929335
4,851
4
19,623163
7
170
19,793

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 December 31, 2023.
73

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 December 31, 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.
74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
OTC centrally-cleared
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
(1)
(2)

(3)

(4)

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

¥

880
730

¥ 1,556
420

11,535
1,191
73

10,9761,226
45

11,084
1,422
16

10,594
1,485
13

182
86
8

252
92
14

223
33
0

303
31
1

4,220
—

4,120
—

5,131
1

4,857
1

649
416

¥

¥

1,764
740

2
3
1
2
1
—
0
2
¥ 18,363 ¥ 18,338 ¥ 19,887 ¥ 19,793(16,943)(16,329) (18,584)(17,828)¥ 1,420 ¥ 2,009 ¥ 1,303 ¥ 1,965(394)¥ 1,026 ¥(315)
1,694 ¥

(426)
877 ¥

(401)
1,564

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 December 31,
2023, the gross balance of such derivative assets and derivative liabilities was ¥378 billion and ¥756 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 December 31, 2023, Nomura offset a total of ¥1,598 billion of cash collateral
receivables against net derivative liabilities and ¥2,354 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.
75

(5)

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 December 31, 2023, a total of ¥279 billion of cash collateral receivables and ¥837 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.”
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 nine and three months ended December 31, 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
Nine months ended December 31
2022
2023

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

¥

¥

9
74
(74)
717
(5)
721

¥

¥

(111)
150
119
249
14
421

Billions of yen
Three months ended December 31
2022
2023

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

¥

¥

29
(227)
27
446
(7)
268

¥

¥

(70)
(153)
175
81
(13)
20

Includes net gains (losses) on derivatives used for non-trading purposes which are not designated as fair value or net investment hedges. For thenine and three months ended December 31, 2022 and 2023, net gains (losses) for these non-trading derivatives were not significant.
76

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 December 31, 2023.

Balance sheet line item in which thehedged item is included:

Carrying amount of the hedged
liabilities
March 31, 2023
December 31, 2023

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

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

Long-term borrowings
Total

¥
¥

¥
¥

¥
¥

2,659
2,659

¥
¥

2,962
2,962

168
168

¥
¥

159
159

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 nine and three months ended December 31, 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
Nine months ended December 31
2022
2023

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

¥
¥

107
107

¥
¥

(25)
(25)

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

¥
¥

(107)
(107)

¥
¥

25
25

Billions of yen
Three months ended December 31
2022
2023

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

¥
¥

(32)
(32)

¥
¥

(124)
(124)

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

¥
¥

32
32

¥
¥

124
124

77

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 nine and three months ended December 31, 2022 and 2023.
Billions of yen
Nine months ended December 31
2022
2023

Net investment hedging instruments:
Foreign exchange contracts
Total

¥
¥

7
7

¥
¥

(4)
(4)

Billions of yen
Three months ended December 31
2022
2023

Net investment hedging instruments:
Foreign exchange contracts
Total

¥
¥

(11)
(11)

¥
¥

(9)
(9)

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 nine andthree months ended December 31, 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 December 31, 2023 was¥687 billion with related collateral pledged of ¥515 billion. In the event of a one-notch downgrade to Nomura’s long-term credit rating in effect as ofDecember 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
to settle the instruments immediately was ¥7 billion.
78

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.
79

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 December 31, 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
(1)

¥

(109)
(100)
24
0
(185)

¥

Total

¥ 8,121
6,839
624
51
¥15,635

Total¥ 8,271
7,988
921
26
¥17,206

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
December 31, 2023
Maximum potential payout/NotionalYears to maturity
Less than
1 to 33 to 5More than
1 yearyears
years
5 years

Notional
Purchased
creditprotection¥ 1,7412,164
129—¥ 4,034¥ 5,906
5,092
687—¥ 11,685¥3,0952,601
216—¥5,912¥2,9482,540
264—¥5,752¥2,5792,284
210
37¥5,110¥2,761
2,468
493
26¥5,748

¥

821
816
35
—
¥ 1,672

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
80

AAA

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

AA

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

Total¥308 ¥1,273 ¥2,457 ¥2,790 ¥ 767 ¥ 676 ¥ 8,271
71
217 2,858 4,217
216
409
7,988
—
—
34
590
18
279
921
—
—
—
23
3
—
26
¥379 ¥1,490 ¥5,349 ¥7,620 ¥1,004 ¥1,364 ¥17,206

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 nine months ended December 31 2023. The following table provides information about relevanttransactions outstanding as of March 31, 2023 and December 31, 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
December 31, 2023

¥
¥
¥
¥

69,383
69,25355,575
13,546

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 December 31, 2023. Of which ¥10,119 million and ¥13,546 million are included in interest rate contracts used for
trading purpose as of March 31, 2023 and December 31, 2023 respectively as disclosed in present Note 3 “Derivative instruments and hedging
activities.”81

4. Revenue from services provided to customers
Revenue by types of service
The following table presents revenue earned by Nomura from providing services to customers by relevant line item in the consolidated statements
of income for the nine and three months ended December 31, 2022 and 2023.
Millions of yen
Nine months ended December 31
2022
2023

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

¥

¥

216,085 ¥
85,257204,323
32,632538,297 ¥257,410
124,979
225,969
33,977642,335

Millions of yen
Three months ended December 31
2022
2023

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

¥

¥

77,502 ¥33,78367,035
11,617
189,937 ¥

85,71855,22977,496
13,324
231,767

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 nine and three months ended
December 31, 2022 and 2023.
Millions of yen
Nine months ended December 31
2022
2023

Brokerage commissions
Commissions for distribution of investment trust
Other commissions
Total

¥

¥

149,449 ¥22,23844,398216,085 ¥

169,976
40,50346,931
257,410

Millions of yen
Three months ended December 31
2022
2023

Brokerage commissions
Commissions for distribution of investment trust
Other commissions
Total

¥

¥
82

52,629 ¥8,314
16,55977,502 ¥56,428
13,114
16,17685,718Fees from investment banking represent revenues 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 nine and three months
ended December 31, 2022 and 2023.
Millions of yen
Nine months ended December 31
2022
2023

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

¥

¥

13,433 ¥15,71542,59913,51085,257 ¥35,55018,44544,60026,384
124,979

Millions of yen
Three months ended December 31
2022
2023

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

¥

¥

8,117 ¥
4,500
14,2896,877
33,783 ¥17,923
7,890
20,9858,431
55,229Asset management and portfolio service fees represent revenues 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 nine and three months ended December 31,
2022 and 2023.
Millions of yen
Nine months ended December 31
2022
2023

Asset management fees
Administration fees
Custodial fees
Total

¥

¥

128,727 ¥57,59218,004204,323 ¥

140,927
64,253
20,789225,969

Millions of yen
Three months ended December 31
2022
2023

Asset management fees
Administration fees
Custodial fees
Total

¥

¥
83

41,810 ¥19,014
6,211
67,035 ¥48,062
22,2487,186
77,496

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
84

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.
85

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 amount of contract
assets as of March 31, 2023 and December 31, 2023 was not significant.
Millions of yen
March 31, 2023
December 31, 2023

Customer contract receivables
Contract liabilities(1)(1)¥

85,1005,226¥

106,914
5,224

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 nine months ended December 31, 2022 and2023, respectively.
Nomura recognized ¥4,865 million and ¥354 million of revenue from performance obligations satisfied in previous periods for the nine months
ended December 31, 2022 and the three months ended December 31, 2022. Nomura recognized ¥2,786 million and ¥538 million of revenue fromperformance obligations satisfied in previous periods for the nine months ended December 31, 2023 and the three months ended December 31, 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 ¥791 million as of December 31, 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 December 31, 2023 were not significant.
86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 andDecember 31, 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.
87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
December 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
(1)

(2)

Reverserepurchaseagreements

Securities
borrowingtransactions¥ 42,486(26,638)¥ 15,848¥(13,883)(32)¥ 1,933

Liabilities
Securities
Repurchaselendingagreements
transactions

¥

4,611
—
4,611

¥ 45,577(26,638)¥ 18,939¥(3,021)—
1,590(14,958)(1)¥ 3,980

¥
¥

1,836
—
1,836

¥

(1,566)—270

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 December 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 ¥867 billion and ¥3,017 billion, respectively. As of December 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 ¥1,336 billion and ¥205 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.
88

(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 consolidated balance sheets 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
sufficient evidence 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 tables present 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 December 31, 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)(1)(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
December 31, 2023
30 – 90days
90 days – 1 year

¥ 18,664
1,258¥ 19,922¥18,921219¥19,140¥4,97925¥5,004

¥
¥

¥
¥

1,357
498
1,855

2,166
334
2,500

Greaterthan 1 year

¥
¥

780
27
807

Greaterthan 1 year

¥
¥

847
—
847

Total

¥35,414
1,825¥37,239

Total¥45,577
1,836¥47,413

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.
89

Securities transferred in repurchase agreements and securities lending transactions
The following tables present 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 December 31,
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
December 31, 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)
(1)

(2)

¥

249
2,707
34,535
3,307
17
4,534
217
11
¥ 45,577

¥

¥

1,418
0
75
166
—
—
—
177
1,836

Total

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

Total¥ 1,667
2,707
34,610
3,473
17
4,534
217
188
¥47,413

Includes ¥2,080 billion of U.S. government sponsored agency mortgage pass through securities and collateralized mortgage obligations as ofMarch 31, 2023. Includes ¥3,811 billion of U.S. government sponsored agency mortgage pass through securities and collateralized mortgage
obligations as of December 31, 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 December 31, 2023.
90

Billions of yen
March 31, 2023
December 31, 2023

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

53,857¥64,711

38,417

48,692

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 December 31, 2023.
Millions of yen
March 31, 2023
December 31, 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¥

207,828
1,130,052
116,9692,331,921
27,966
11,6093,826,345

¥
¥

¥
¥

111,279
14,767

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 December 31, 2023.
Millions of yen
March 31, 2023
December 31, 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¥¥

441,413
1,552,700
3,167
111,2822
999
2,109,563

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.
91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 nine and three months ended
December 31, 2022, Nomura received cash proceeds from SPEs in new securitizations of ¥225 billion and ¥89 billion, respectively, and the associatedgain on sale was was immaterial. For the nine and three months ended December 31, 2023, Nomura received cash proceeds from SPEs in new
securitizations of ¥352 billion and ¥117 billion, respectively, and the associated gain on sale was immaterial. For the nine and three months ended
December 31, 2022, Nomura received debt securities issued by these SPEs with an initial fair value of ¥374 billion and ¥103 billion, respectively, andcash inflows from third parties primarily on the sale of those debt securities of ¥373 billion and ¥154 billion, respectively. For the nine and three months
ended December 31, 2023, Nomura received debt securities issued by these SPEs with an initial fair value of ¥167 billion and ¥75 billion, respectively,
and cash inflows from third parties primarily on the sale of those debt securities of ¥104 billion and ¥27 billion, respectively. The cumulative balance offinancial assets transferred to SPEs with which Nomura has continuing involvement was ¥5,745 billion and ¥6,334 billion as of March 31, 2023 andDecember 31, 2023, respectively. Those transferred financial assets are substantially government, agency and municipal securities. Nomura’s retainedinterests were ¥168 billion and ¥173 billion, as of March 31, 2023 and December 31, 2023, respectively. For the nine and three months ended
December 31, 2022, Nomura received cash flows of ¥20 billion and ¥7 billion, respectively, from the SPEs on the retained interests held in the SPEs.
For the nine and three months ended December 31, 2023, Nomura received cash flows of ¥18 billion and ¥5 billion, respectively, from the SPEs on theretained interests held in the SPEs.
Nomura did not provide financial support to SPEs beyond its contractual obligations as of March 31, 2023 and December 31, 2023.
92

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
December 31, 2023

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

Level 1

Level 2

Level 3

Total

¥ —
—
—
¥ —

¥ 166
—
—
¥ 166

¥ —
—
7
¥ 7

¥166
—
7
¥173

¥

166
—
2
168

¥

¥—
—
5
¥ 5

As of March 31, 2023 and December 31, 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
December 31, 2023

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

¥

93

¥

1
25
328
354

¥

¥

1
16
531
548

¥

354

¥

548

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.
94

The following table presents the classification of consolidated VIEs’ assets and liabilities in these consolidated financial statements. Most of theseassets 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
December 31, 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

¥

8

¥

491
491
27
0
35
49
78
1,194

¥

550
574
51
1
45
49
86
1,364

¥

0

¥

0

¥

94
793
5
892

¥

108
881
6
995

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.
95

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
December 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

¥

22
116
3,002
137
23
1,248
21
—
¥4,569

¥

¥

—
—
—
—
—
—
—
—
—

The above does not include certain repurchase agreement financings provided to third parties or Nomura sponsored VIEs.
96

¥

¥

22
116
3,002
137
23
1,248
21
251
4,820

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.
97

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 December 31, 2023 by portfolio segment.

Carriedatamortized cost

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

Millions of yen
March 31, 2023
Carried atfair value(1)

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
December 31, 2023
CarriedCarried atatamortized 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
(1)

Total

¥

¥

884,407548,954
40,0001,505,682
2,979,043———
1,978,739¥1,978,739¥ 884,407
548,954
40,0003,484,421¥4,957,782

¥

7,808
2,986,851

283¥1,979,022

8,091¥4,965,873

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 nine months ended December 31, 2022 and 2023, respectively.

There were also no significant reclassifications of loans receivable to or from trading assets during the nine months ended December 31, 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 andDecember 31, 2023.
98

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 December 31, 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.
99

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 nine months ended December 31,
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.
100The following tables present changes in the allowances for current expected credit losses for the nine and three months ended December 31, 2022
and 2023 as determined using the CECL impairment model defined by ASC 326.

Opening balance
Provision for credit losses
Write-offs
Other(2)(3)Ending balance

Opening balance
Provision for credit losses
Write-offs
Other(3)Ending balance

Millions of yen
Nine months ended December 31, 2022
Allowances for current expected credit losses
against loans
Allowances
againstShort-term
receivables
securedother thanmarginCorporateLoans
loans(1)
loans
loans
Subtotal
at banks

Total
allowances
for current
expected
credit losses¥ 2,434 ¥
672(1,523)(417)¥ 1,166 ¥

1,559
47
—
208
1,814

¥ 66,346
1,787(4,121)27¥ 64,039

Millions of yen
Nine months ended December 31, 2023
Allowances for current expected credit losses
against loans
Allowances
againstShort-term
receivables
securedother thanLoansmarginCorporateloans(1)at banks
loans
loans
Subtotal

Total
allowances
for current
expected
credit losses¥ 1,126 ¥(378)——¥ 748 ¥

—
—
—
—
—

—
—
—
—
—

¥ 62,353 ¥64,787 ¥
1,068
1,740
(2,598) (4,121)
236
(181)
¥ 61,059 ¥62,225 ¥¥ 2,930 ¥ 4,056 ¥430
52(1,891) (1,891)
119
119¥ 1,588 ¥ 2,336 ¥

1,776 ¥
5—(201)
1,580 ¥

Millions of yen
Three months ended December 31, 2022
Allowances for current expected credit losses
against loans
Allowances
Short-term
againstsecuredreceivables
marginCorporateother than
Loans
loans
loans
Subtotalloans(1)at banks

Opening balance
Provision for credit losses
Write-offs
Other(2)(3)Ending balance¥ 1,166———¥ 1,166
101

¥

¥

—
—
—
—
—

¥ 69,154 ¥70,320 ¥
(304)
(304)
(46)
(46)
(7,745) (7,745)¥ 61,059 ¥62,225 ¥

5,832
57
(1,891)
(82)
3,916

Total
allowances
for current
expected
credit losses

1,836 ¥ 72,156
32
(272)
—
(46)
(54)
(7,799)1,814 ¥ 64,039

Opening balance
Provision for credit losses
Write-offs
Other(3)Ending balance
(1)
(2)
(3)

Millions of yen
Three months ended December 31, 2023
Allowances for current expected credit losses
against loans
Allowances
Short-term
againstsecuredreceivables
marginCorporateLoansother than
loans
loans
Subtotal
at banks
loans(1)Totalallowances
for current
expected
credit losses

¥

¥

749
(378)
—
377
¥ 748

¥

¥

—
—
—
—
—

¥ 3,307(106)(1,505)(108)¥ 1,588¥ 4,056(484)(1,505)269¥ 2,336

¥

¥

1,725
(9)
—
(136)
1,580

¥

5,781
(493)
(1,505)133
3,916

Includes amounts recognized against collateralized agreements, customer contract assets and receivables and other receivables.
A part of above provision for losses for a U.S. client, ¥1,910 million, was released in the quarter ended December 31, 2022.
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 nine months ended December 31,
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 nine months ended
December 31, 2022, the amounts of modification or restructuring of loans classified as TDRs were not significant.
102

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 December 31, 2023, the amount of loans which were placed on a nonaccrual status 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 December 31, 2023. The amounts of write offs during the ninemonths ended December 31, 2023 were not significant.
103Millions of yen
March 31, 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

2020

2019

2018 orearlier

8,050
1,642
—
—
¥ 9,692¥14,817415——¥15,232¥ 16,047
2,395——¥ 18,442

9,169
1,000
—
—
¥ 10,169

¥

9,513
3,370
—
—
¥ 12,883¥11,036
1,692——¥12,728¥ 25,806
1,660——¥ 27,466

¥

—
—
—
2,081
¥ 2,081

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
237,425¥ 237,425

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—

¥

—

¥

—

¥

—

¥

—

¥

—

¥

—

¥

—

¥

9,132
598
—
1,550
11,280¥20,423
23,811—
2¥44,236¥—
20,791——¥ 20,791¥

10,392
69,260—119
79,771

2023

2022¥ 104,543
117,680—
55,842¥ 278,065¥152,888
199,696—
45,404¥397,988

¥

5,960
—
—
—
¥ 5,960

¥

¥

4,673
—
—
—
4,673

¥

9,297
—
—
—
¥ 9,297¥———
217,767¥ 217,767

¥

¥

¥
¥

¥

¥433,330
8,242
—
458
¥442,030

2021¥¥184,579
7,322——¥191,901
104¥¥169,393
14,954——¥184,347¥¥

Revolving

¥

¥
¥

¥

Total

—
—
—
—
—

¥ 302,305
321,828—
101,246¥ 725,379

—
—
—
—
—

¥

¥

69,494
7,722——
77,216———457,273¥ 457,273¥ 827,249
144,978—
2,129¥ 974,356

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
(1)

¥

2022

—
—
—
200
200

¥

—
—
—
—
¥
—
¥ 511,985

¥

¥
¥

¥

2021

—
—
—

¥

3
3

3,000
—
—
—
¥ 3,000¥854,399

2020

—
—
—
472
472

¥

1,000
—
—
—
¥ 1,000¥209,502¥¥¥

Relate to collateralized exposures where a specified ratio of LTV is maintained.
105

2018 orearlier

2019

Revolving

—
—
—
166
166

¥

—
—
2,184
—
¥ 2,184¥———
126,488¥126,488

¥

—
—
—
—
¥
—
¥207,088

¥

¥

¥

¥

—
—
—
—
¥ —
¥74,380

—
—
—
—
¥
—
¥193,187

Total

—
—
—
—
—

¥

—
—
—
—
¥
—
¥ 317,196

¥

¥

—
—
2,184
127,329¥ 129,513

4,000
—
—
—
¥
4,000
¥2,367,737

Millions of yen
December 31, 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

2020

2019

2018 orearlier

3,925
1,652
—
—
¥ 5,577¥13,143———¥13,143¥ 13,514
1,714——¥ 15,228

8,612
1,000
—
—
¥ 9,612

¥

7,868
933
—
—
¥ 8,801¥ 9,284
1,900——¥11,184¥ 21,650
700——¥ 22,350

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
—
—

¥

—
—
—
282,139¥ 282,139———
548,954¥ 548,954

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

—
—
—
—

¥

30,00010,000
—
—

¥

—

¥

—

¥

—

¥

—

¥

—

¥

—

¥

40,0002023

2022¥ 311,893
318,270—
125,745¥ 755,908¥ 12,000
6,044——¥ 18,044

¥

5,660
—
—
—
¥ 5,660¥¥

14,2791,556——
15,835

¥

3,065
—
—
—
¥ 3,065¥———
266,815¥ 266,815¥¥

30,00010,000——¥40,000¥¥¥ 183,299
15,936—
6,631¥ 205,866¥¥173,622
13,649——¥187,271

2021¥¥ 41,921
4,432——¥ 46,353
106¥¥128,995
18,741——¥147,736¥¥27,524
7,824
—
1,486
¥36,834¥¥ 15,960
2,247——¥ 18,207

Revolving

¥

¥
¥

Total

—
—
—
—
—

¥ 360,135
327,680—
125,745¥ 813,560

—
—
—
—
—

¥

¥ 589,736
132,410—309¥ 722,455¥

64,758
6,089——
70,847¥¥1,161,057
195,239—8,426¥1,364,722

Millions of yen
December 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
(1)

¥

¥
¥

—
5,795
—
249
6,044

3,808
—
—
—
¥
3,808
¥1,294,276

2022

¥

2021

—
—
—
—
—

¥

¥ 3,000———¥ 3,000¥211,380

¥

¥

2020

—
—
—
502
502

¥

1,000
—
—
—
¥ 1,000¥ 63,127¥¥

Relate to collateralized exposures where a specified ratio of LTV is maintained.
107

—
—
—
—
—

¥

—
—
—
—
¥
—
¥162,114¥¥

2018 orearlier

2019

Revolving

—
—
—
—
—

¥

—
—
—
134,414¥134,414

¥

—
—
—
—
¥ —
¥61,161

¥

¥

¥

—
—
—
—
¥
—
¥190,199

Total

—
—
—
—
—

¥

—
—
—
—
¥
—
¥1,004,594

¥

¥

—
5,795
—
135,165¥ 140,960
7,808
—
—
—
¥
7,808
¥2,986,851

The following table presents a definition of each of the internal ratings used in Nomura.
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.
108

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 December 31, 2023.
Millions of yen
Cost

Real estate(1)Aircraft
Total
(1)

¥

21
49,472¥49,493

March 31, 2023
Accumulated
depreciation

Net carrying
amount

¥

¥

¥

—
(741)
(741)

¥

21
48,731
48,752Cost¥

21
49,550¥49,571

December 31, 2023
Accumulated
Net carrying
depreciation
amount

¥
¥

—
(467)
(467)

¥
¥

21
49,083
49,104

Cost, accumulated depreciation and net carrying amounts include amounts relating to real estate utilized by Nomura.

Nomura recognized lease income of ¥951 million and ¥542 million for the nine and three months ended December 31, 2022, respectively, and¥1,987 million and ¥587 million for the nine and three months ended December 31, 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 to be received in connection with noncancellable operating leases
entered into by Nomura as lessor over the remaining lease term as of December 31, 2023. Amounts in connection with finance leases were notsignificant.
Millions of yen
December 31, 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

¥

¥
109

3,798
3,798
3,798
3,798
3,798
15,12034,110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 December 31, 2023.
Millions of yen
March 31,
December 31,
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¥ 325,797
41,37018,515266,203324,290
23,66093,148¥ 1,092,983

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¥ 325,797
56,313557,921
186,777
205,054¥ 1,331,862

(1)
(2)

Includes equity securities without a readily determinable fair value of ¥65,365 million as of March 31, 2023 and as of December 31, 2023
respectively.
Includes Japan Securities Clearing Corporation’s clearing fund.
110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
Nine months ended December 31
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¥

85,411
3,007,925,168¥
28.40

109,113
3,023,923,222
¥
36.08

¥

¥

85,2783,107,855,543
¥
27.44

¥

108,991
3,141,657,400¥
34.69

Millions of yen
except per share data
presented in yen
Three months ended December 31
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¥

66,9443,001,497,064¥
22.30

50,5503,014,259,244
¥
16.77

¥

¥

66,922
3,110,816,453
¥
21.51

¥

50,522
3,137,882,054¥
16.10

Net income attributable to NHI shareholders is adjusted to reflect the decline in Nomura’s equity share of earnings of subsidiaries and affiliates forthe nine and three months ended December 31, 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 thenine and three months ended December 31, 2022 and 2023.
Antidilutive stock options and other stock-based compensation plans to purchase 7,147,000 common shares were not included in the computationof diluted EPS for the nine and three months ended December 31, 2022. Antidilutive stock-options and other stock-based compensation plans topurchase 4,688,100 and 2,466,300 common shares were not included in the computation of diluted EPS for the nine and three months ended
December 31, 2023, respectively.
111

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
Nine months ended December 31
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

¥

¥

4,798
1,824
(4,477)2,864(1,205)
3,804

¥

¥

4,521
2,612
(4,243)2,105(1,202)
3,793

Millions of yen
Three months ended December 31
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

¥

¥

1,599
608
(1,493)
955
(402)
1,267

Nomura also recognized net periodic benefit cost of plans other than Japanese entities’ plans, which are not significant.
112

¥

¥

1,507
870
(1,414)
702
(400)
1,265

12. Income taxes:
For the nine months ended December 31, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 34.5%
was mainly due to increase in non-deductible expenses, whereas non-taxable income decreased the effective tax rate.
For the three months ended December 31, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 21.1%
was mainly due to decrease in valuation allowance, whereas non-deductible expenses increased the effective tax rate.
For the nine months ended December 31, 2023, the difference between the effective statutory tax rate of 31% and the effective tax rate of 37.5%
was mainly due to increase in non-deductible expenses, whereas non-taxable income decreased the effective tax rate.
For the three months ended December 31, 2023, the difference between the effective statutory tax rate of 31% and the effective tax rate of 33.8%
was mainly due to increase in non-deductible expenses, whereas different tax rate applicable to income (loss) of foreign subsidiaries decreased theeffective tax rate.
113

13. Other comprehensive income (loss):
Changes in accumulated other comprehensive income (loss) are as follows:
Millions of yen
Nine months ended December 31, 2022
Balance at
beginningof year

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total
(1)

¥ 136,912(43,803)
34,864¥ 127,973

Othercomprehensive
income (loss)
beforereclassifications

Reclassifications out ofaccumulated othercomprehensive
income (loss)(1)

¥

¥

¥

103,858
169
57,617
161,644

¥

(927)
1,220
161
454

Net change
during theperiodBalance at
end of period¥ 102,931
1,389
57,778¥ 162,098¥ 239,843(42,414)
92,642¥ 290,071

Reclassifications out of accumulated other comprehensive income (loss) were not significant.
Millions of yen
Nine months ended December 31, 2023
Balance at
beginningof year

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total
(1)

¥ 242,767(32,174)
107,861¥ 318,454

Othercomprehensive
income (loss)
beforereclassifications

Reclassifications out ofaccumulated othercomprehensive
income (loss)(1)

Net change
during theperiod¥¥¥¥97,827276(45,899)
52,204

¥

(357)
614
(408)
(151)

97,470890(46,307)¥ 52,053

Balance at
end of period¥ 340,237(31,284)
61,554¥ 370,507

Reclassifications out of accumulated other comprehensive income (loss) were not significant.
Millions of yen
Three months ended December 31, 2022
Balance at
beginningof period

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total
(1)

¥ 347,231(42,431)
87,690¥ 392,490

Othercomprehensive
income (loss)
beforereclassifications

Reclassifications out ofaccumulated othercomprehensive
income (loss)(1)

¥

¥

¥

(106,461)
(336)
5,022
(101,775)

¥

(927)
353
(70)
(644)

Net change
during theperiodBalance at
end of period¥ (107,388)
17
4,952¥ (102,419)¥ 239,843(42,414)
92,642¥ 290,071

Reclassifications out of accumulated other comprehensive income (loss) were not significant.
Millions of yen
Three months ended December 31, 2023
Balance at
beginningof period

Cumulative translation adjustments
Pension liability adjustment
Own credit adjustments
Total
(1)

¥ 414,335(31,405)
59,632¥ 442,562

Othercomprehensive
income (loss)
beforereclassifications

Reclassifications out ofaccumulated othercomprehensive
income (loss)(1)

¥

¥

¥

(73,735)(72)
2,134(71,673)

Reclassifications out of accumulated other comprehensive income (loss) were not significant.
114

¥

(363)
193
(212)
(382)

Net change
during theperiodBalance at
end of period¥ (74,098)
121
1,922
¥ (72,055)¥ 340,237(31,284)
61,554¥ 370,507

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
December 31, 2023

Commitments to extend credit
Liquidity facilities to central clearing counterparties
Other commitments to extend credit
Total¥ 1,623,897
1,010,332¥ 2,634,229¥

1,457,393
1,126,838
2,584,231

Commitments to invest¥¥

28,165¥21,994As of December 31, 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¥1,457,393
1,126,838¥2,584,231¥1,457,393
317,918¥1,775,311¥—
384,065¥384,065¥—
318,273¥318,273¥—
106,582¥106,582

Commitments to invest

¥

¥

¥

¥

¥ 21,572

28,165

2,296

3,690

607

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.
115

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.
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 December 31, 2023, the total liability of ¥42,459 million and ¥21,043 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 February 14, 2024, 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 ¥33 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.
116

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.
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 two Trusts, the Court has
granted the Trustees’ Petitions seeking approval to enter into settlement agreements approved by the Certificateholders. For the remaining two Trusts,
settlement agreements with the Trusts have been approved by Certificateholders and 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.
117

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.
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 January 2024, Alken appealed the Court ofAppeal’s decision to the Italian Supreme Court.
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.
118

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.
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 sought 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.
In January 2024, NIP received a notice from a Prosecutor of the Court of Auditors in Italy. The notice details the findings of an investigation into
an advisory relationship NIP entered into with an Italian counterparty in 2005. It alleges that NIP caused harm to the Italian counterparty and as suchdamages are payable. A civil claim for damages may be brought by the Prosecutor before the Court of Auditors in due course.
119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
December 31, 2023
Maximum
Maximum
Potential
Potential
Payout/Payout/Notional
Notional
Carrying
Carrying
Total
Total
value
value

Derivative contracts(1)(2)Standby letters of credit and other guarantees(3)
(1)
(2)
(3)

¥8,983,145—¥514,420,432
1,544,159¥9,836,259—¥600,579,626
3,263,230

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 December 31, 2023.

Derivative contracts
Standby letters of credit and other guarantees

Carrying
value

Total

¥9,836,259—¥600,579,626
3,263,230
120

Millions of yen
Maximum Potential Payout/NotionalYears to Maturity
Less than
1 to 33 to 5
1 yearyears
years¥126,603,636
3,218,105¥238,669,432
22,372¥57,569,617
20,087More than
5 years¥177,736,941
2,666

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.
Millions of yen
RetailInvestment
Management

Wholesale(1)Other(Incl. elimination)

Nine months ended December 31, 2022
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥222,846
2,039
224,885
201,221¥ 23,664¥

93,752(3,037)90,71563,574
27,141¥ 610,815(17,272)593,543
549,936¥ 43,607¥

Nine months ended December 31, 2023
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥288,919
4,688
293,607
209,688¥ 83,919¥ 105,187
5,395
110,582
68,144¥ 42,438¥ 614,617(2,684)
611,933
578,598¥ 33,335¥

RetailInvestment
Management

¥

¥

¥

Total

134,780(7,922)
126,858
69,13057,728¥1,062,193(26,192)
1,036,001
883,861¥ 152,140

97,96017,368115,328
78,712
36,616¥1,106,683
24,767
1,131,450
935,142¥ 196,308

Millions of yen

Three months ended December 31, 2022
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income (loss) before income taxes¥ 80,243776
81,01967,756¥ 13,263

Three months ended December 31, 2023
Non-interest revenue
Net interest revenue
Net revenue
Non-interest expenses
Income before income taxes¥100,618
2,007
102,625
70,698¥ 31,927
121

¥

¥
¥

¥

Wholesale(1)58,386(1,421)
56,96523,66333,302¥ 204,233(15,176)
189,057
190,911¥ (1,854)

28,830
10,11638,94623,35015,596¥ 227,556(10,560)
216,996
194,026¥ 22,970

Other(Incl. elimination)

¥

¥
¥

¥

Total

76,78910,52187,31027,76259,548¥ 419,651(5,300)414,351
310,092¥ 104,259

50,145
4,475
54,62033,44021,180¥ 407,149
6,038
413,187
321,514¥ 91,673

(1)Non-interest revenue and Non-interest expense for the nine months and three months ended December 31, 2022 include gains of ¥11,051 million,
as the recoverable amount for a part of the claim related to the loss arising from the U.S. Prime Brokerage Event can be reasonably estimated. The
gains are reported within Net gain on trading in the amount of ¥9,141 million and in Non-interest expenses—Other in the amount of¥(1,910) million in the consolidated statements of income.
122Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in “Other.”
The following table presents the major components of Income before income taxes in “Other.”
Millions of yen
Nine months ended December 31
2022
2023

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)(2)
Total

¥

¥

(11,164)
22,19035,000(4,798)16,50057,728¥¥2,064
19,97931,561(3,137)(13,851)
36,616

Millions of yen
Three months ended December 31
2022
2023

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)(2)
Total
(1)
(2)

¥

¥

(1,455)21,895
8,893(3,323)33,53859,548¥¥

7,575
11,762
8,830(6,459)(528)
21,180The income before income taxes for the nine and three months ended December 31, 2022 includes a gain of ¥28 billion from the sale of Nomura
Research Institute, Ltd. ordinary shares.
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
Nine months ended December 31
2022
2023

Net revenue
Unrealized gain (loss) on investments in equity securities held for operating purposes(1)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(1)Consolidated income before income taxes

¥

123

¥

¥

¥

1,036,001(25,357)
1,010,644¥

883,861—
883,861¥

152,140(25,357)
126,783

¥

¥

¥

¥

1,131,450(14,552)
1,116,898
935,142—935,142
196,308(14,552)
181,756

Millions of yen
Three months ended December 31
2022
2023

Net revenue
Unrealized gain (loss) on investments in equity securities held for operating purposes(1)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(1)Consolidated income before income taxes

¥

(1)

¥

¥

¥

414,351(20,693)393,658¥

310,092—
310,092¥

104,259(20,693)
83,566¥¥¥¥413,187(12,962)400,225
321,514—321,514
91,673(12,962)
78,711

Includes a reversal of unrealized gain (loss) on investments in equity securities held for operating purposes that were sold in nine and three months
ended December 31, 2022 and 2023.
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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
Nine months ended December 31
2022
2023

Net revenue(1)(2):
Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

Income (loss) before income taxes(2):Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

204,438
111,166
52,511
368,115
642,529
1,010,644(35,098)
12,831
22,263(4)
126,787
126,783¥¥¥¥

314,457
184,588
38,868537,913578,985
1,116,898
371(14,306)
14,531
596
181,160
181,756

Millions of yen
Three months ended December 31
2022
2023

Net revenue(1)(2):
Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

85,29947,102
10,854
143,255
250,403
393,658

¥

7,913
8,326
(1,654)
14,58568,981
83,566¥¥

112,037
74,82014,838201,695
198,530
400,225

Income (loss) before income taxes(2):Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated

¥

¥
125

¥

7,147
819
10,072
18,03860,67378,711(1)(2)

There is no revenue derived from transactions with a single major external customer.
Includes gains from the estimated recoverable amounts for a part of the claim related to the loss arising from the U.S. Prime Brokerage Event fornine months and for three months ended December 31, 2022.
Millions of yen
March 31, 2023
December 31, 2023

Long-lived assets:
Americas
EuropeAsia and Oceania
Subtotal
Japan
Consolidated¥¥

114,946
53,161
23,839191,946
308,941
500,887¥¥

114,984
62,39731,459208,840
300,140
508,980

16. Subsequent events:
The following event occurred between January 1, 2024 and the filing date (February 14, 2024) of this quarterly securities report.
On January 31, 2024, the board of directors approved a resolution to set up a share buyback program, pursuant to the Company’s articles ofincorporation set out in accordance with Article 459, Paragraph 1 of the Companies Act of Japan as follows: (a) total number of shares authorized for
repurchase is up to 125,000,000 shares, (b) total value of shares authorized for repurchase is up to ¥100,000 million and (c) the share buyback program
will run from February 16, 2024 to September 30, 2024 (excluding the ten business days following the announcement of quarterly financial results).
1262. Other
On October 27, 2023, the Board of Directors resolved to pay the dividend based on the record date of September 30, 2023 to shareholders
registered as of September 30, 2023.
a. Total dividend based on the record date of September 30, 2023
b. Dividend based on the record date of September 30, 2023 per share127¥ 24,115 million¥8[Translation]
Quarterly Review Report of Independent Auditor
February 14, 2024
The Board of Directors
Nomura Holdings, Inc.
Ernst & Young ShinNihon LLC
Tokyo office, Japan
Hiroki Matsumura
Certified Public Accountant
Designated and Engagement Partner
Hisashi Yuhara
Certified Public Accountant
Designated and Engagement Partner
Shinichi Hayashi
Certified Public Accountant
Designated and Engagement Partner
Toshiro Kuwata
Certified Public Accountant
Designated and Engagement Partner
Auditor’s Conclusion
We have performed a quarterly review of the quarterly consolidated financial statements of Nomura Holdings, Inc. (the “Company”) included in
Financial Information section for the three-month and nine-month periods ended December 31, 2023 within the fiscal period from April 1, 2023 toMarch 31, 2024, which comprise the quarterly consolidated balance sheet, the quarterly consolidated statements of income, comprehensive income,changes in equity and cash flows, and the related notes, pursuant to the requirement of the rule specified in Article 193-2, Section 1 of the Financial
Instruments and Exchange Act.
Based on our quarterly review, nothing has come to our attention that causes us to believe that the quarterly consolidated financial statements
referred to above do not present fairly, in all material respects, the consolidated financial position of the Company and its consolidated subsidiaries (the“Group”) as of December 31, 2023, and the consolidated results of their operations for the three-month and nine-month periods then ended and cash
flows for the nine-month period then ended in conformity with accounting principles generally accepted in the United States of America pursuant to
Article 95 of “Regulations Concerning the Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements” (see Note 1
to the quarterly consolidated financial statements).
Basis for Auditor’s Conclusion
We conducted our quarterly review in accordance with quarterly review standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Quarterly Review of the Quarterly Consolidated Financial Statements section of
our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements inJapan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that we have obtained the evidence toprovide a basis for our conclusion.
Responsibilities of Management and the Audit Committee for the Quarterly Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the quarterly consolidated financial statements in accordance withaccounting principles generally accepted in the United States of America (see Note 1 to the quarterly consolidated financial statements), and fordesigning and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the quarterly
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the quarterly consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going
concern and disclosing, as required by accounting principles generally accepted in the United States of America (see Note 1 to the quarterly consolidated
financial statements), matters related to going concern.
The Audit Committee is responsible for overseeing the Group’s financial reporting process.
128

Auditor’s Responsibilities for the Quarterly Review of the Quarterly Consolidated Financial Statements
Our responsibility is to independently express a conclusion on the quarterly consolidated financial statements in the quarterly review report basedon our quarterly review. As part of a quarterly review in accordance with quarterly review standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the quarterly review. We also:•

Make inquiries, primarily of management and persons responsible for financial and accounting matters and apply analytical and otherquarterly review procedures. A quarterly review is substantially less in scope than an audit conducted in accordance with auditing
standards generally accepted in Japan.

•

Conclude on whether nothing has come to our attention that causes us to believe that the quarterly consolidated financial statements do notpresent fairly in conformity with accounting principles generally accepted in the United States of America (see Note 1 to the quarterly
consolidated financial statements) based on the evidence obtained if we conclude that a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our quarterly review report to the related disclosures in the quarterly consolidated financial
statements or, if such disclosures are inadequate, to express a qualified conclusion or an adverse conclusion. Our conclusions are based on
the evidence obtained up to the date of our quarterly review report. However, future events or conditions may cause the Group to cease tocontinue as a going concern.

•

Evaluate whether nothing has come to our attention that cause us to believe that the overall presentation, structure and content of thequarterly consolidated financial statements, including the disclosures, and the quarterly consolidated financial statements do not represent
the underlying transactions and events in a manner that achieves fair presentation in accordance with accounting principles generally
accepted in the United States of America (see Note 1 to the quarterly consolidated financial statements).

•

Obtain evidence of the financial information of the Group to express its conclusions on the quarterly consolidated financial statements.
The auditor is responsible for directing, overseeing and implementing the quarterly review of the quarterly consolidated financial
statements. The auditor is solely responsible for the auditor’s conclusions.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the quarterly review and significant
quarterly review findings.
We also provide the Audit Committee with a statement that we have complied with the ethical requirements regarding independence that are
relevant to our audit of the consolidated financial statements in Japan, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied to reduce threats to an
acceptable level.
Conflicts of Interest
We have no interest in the Group which should be disclosed in accordance with the Certified Public Accountants Act.
*1.
*2.

The Company maintains the original of the Quarterly Review Report of Independent Auditor above.
XBRL data is not included in the scope of the quarterly review.

(Note)
This is an English translation of the Japanese language Quarterly Review Report of Independent Auditor issued by Ernst & Young ShinNihon LLC
in connection with the limited procedures applied on the quarterly consolidated financial statements of Nomura Holdings, Inc., prepared in Japanese, forthe three-month and nine-month periods ended December 31, 2023 within the fiscal period from April 1, 2023 to March 31, 2024. Ernst & Young
ShinNihon LLC have not applied any such procedures nor have they performed an audit on the English language version of the quarterly consolidated
financial statements for the above-mentioned period which are included in this report on Form 6-K.
129

Exhibit 2
Confirmation Letter
1 [Appropriateness of Quarterly Securities Report]
Kentaro Okuda, Group Chief Executive Officer, and Takumi Kitamura, Chief Financial Officer, have confirmed that the quarterly securities reportof Nomura Holdings, Inc. for the three months ended December 31, 2023 is appropriate under the Financial Instruments and Exchange Act.
2 [Special Comments]
There is no special comment to be stated.
130