UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F/A‘
È‘‘

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934OR
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period fromtoOR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
Commission file number: 1-15270

Nomura Horudingusu Kabushiki Kaisha(Exact name of registrant as specified in its charter)

Nomura Holdings, Inc.
(Translation of registrant’s name into English)

13-1, Nihonbashi 1-chome
Chuo-ku, Tokyo 103-8645
Japan

Japan
(Jurisdiction of incorporation or organization)(Address of principal executive offices)

Takumi Kitamura, 81-3-5255-1000, 81-3-6746-7850(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of Each Class

Trading Symbol(s)Name of Each Exchange On Which Registered

American Depositary Shares
Common Stock*

NMR

New York Stock Exchange* Not for trading, but only in connection with the registration of the American Depositary Shares, each representing one share of Common Stock.
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
As of March 31, 2023, 3,003,679,324 shares of Common Stock were outstanding, including 38,182,446 shares represented by 38,182,446 American Depositary Shares.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. È Yes ‘ No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934. ‘ Yes È No
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days. Yes È No ‘
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes È No ‘
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of“large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer È
Accelerated filer ‘
Non-accelerated filer ‘
Emerging growth company ‘
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use theextended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ‘† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards
Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control overfinancial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. È
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect thecorrection of an error to previously issued financial statements. È
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of theregistrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ‘
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP È
International Financial Reporting Standards as issued
Other ‘by the International Accounting Standards Board ‘
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected tofollow. ‘ Item 17 ‘ Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ‘ Yes È No
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934
subsequent to the distribution of securities under a plan confirmed by a court. ‘ Yes ‘ No

EXPLANATORY NOTE
Nomura Holdings, Inc. (the “Company”) is filing this amendment on Form 20-F/A (“Amendment No. 1”) inorder to amend our Annual Report on Form 20-F for the year ended March 31, 2023 (the “Original Filing”)
which was originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 28, 2023 (the“Original Filing Date”). The purpose of this Amendment No.1 is as follows:•

To restate the Company’s consolidated financial statements as of March 31, 2022 and 2023 and for thethree years ended March 31, 2023 (such restated financial statements are referred to as the “Restated
Financial Statements”) to correct certain material presentation and classification errors identified within
the Company’s consolidated statement of cash flows (“the cash flow statement errors”);•

To amend relevant footnote disclosures in the consolidated financial statements related to the cash flow
statement errors;•

To amend disclosure within Item 3.D “Risk Factors—Risks Relating to Legal, Compliance and Other
Operational Issues” to add a risk factor on the material weakness in the Company’s internal control overfinancial reporting identified in connection with the cash flow errors;•

To amend disclosure within Item 5.B “Liquidity and Capital Resources—Funding and Liquidity
Management—Cash Flows” to update disclosures related to the consolidated cash flow statement;•

To include disclosure within Item 6.F “Disclosure of a registrant’s action to recover erroneously
awarded compensation”;•

To amend disclosure within Item 15 “Controls and Procedures” to reflect our management’s
determination that, as of March 31, 2023, our disclosure controls and procedures were not effective, thata material weakness existed in our internal control over financial reporting and that our internal control
over financial reporting was not effective, as well as to make other related disclosures;•

To include the revised report of the Company’s independent registered public accounting firm, Ernst &Young ShinNihon LLC, on the Restated Financial Statements on page F-2 of this Amendment No. 1;•

To include the revised report of the Company’s independent registered public accounting firm, Ernst &Young ShinNihon LLC, on the effectiveness of internal control over financial reporting on page F-5 ofthis Amendment No. 1;•

To include updated certifications from our Group Chief Executive Officer and Chief Financial Officer,
as required by Section 302 and 906 of the Sarbanes-Oxley Act of 2002 as Exhibits 12.1, 12.2, 13.1 and13.2 to this Amendment No. 1;•

To include an updated consent letter from the Company’s independent registered public accounting
firm, Ernst & Young ShinNihon LLC, as Exhibit 15.1 to this annual report;•

To file Nomura’s compensation recovery policy adopted pursuant to the NYSE listing standards
required by 17 CFR 240.10D-1 (“Rule 10D-1”), as Exhibit 97.1 to this annual report; and•To include updated XBRL information (including the relevant exhibits).

Other than the changes expressly described above, the Amendment No.1 continues to present information asof the Original Filing Date and has not been amended, supplemented, or updated to reflect any new information,other circumstances or subsequent events which have occurred since the Original Filing date. Accordingly, thisAmendment No.1 should be read in conjunction with the Company’s reports filed with or furnished to the SEC
subsequent to the Original Filing Date. The filing of this Amendment No.1, including the relevant updated
certifications and consents, should not be understood to mean that any other statements, disclosures orinformation contained in the Original Filing, continue to be true and complete as of any date subsequent to theOriginal Filing Date, other than as expressly described above.
See Item 15. “Controls and Procedures” and Note 1. “Summary of Accounting Policies” in the consolidated
financial statements included in this Amendment No.1 for further details of the nature of the cash flow statement
errors, the material weakness in internal control over financial reporting identified as a result of the cash flow
statement errors, and the remediation plan of our management to address the material weakness.

TABLE OF CONTENTS
PagePART I
Item 1.

Identity of Directors, Senior Management and Advisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2Item 2.

Offer Statistics and Expected Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2Item 3.

Key Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2Item 4.

Information on the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

Item 4A.

Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55

Item 5.

Operating and Financial Review and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

55

Item 6.

Directors, Senior Management and Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

95

Item 7.

Major Shareholders and Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

122

Item 8.

Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123

Item 9.

The Offer and Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124

Item 10.

Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124

Item 11.

Quantitative and Qualitative Disclosures about Market, Credit and Other Risk . . . . . . . . . . . . . .

132

Item 12.

Description of Securities Other Than Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

151

PART II
Item 13.

Defaults, Dividend Arrearages and Delinquencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

153

Item 14.

Material Modifications to the Rights of Security Holders and Use of Proceeds . . . . . . . . . . . . . .

153

Item 15.

Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

153

Item 16A. Audit Committee Financial Expert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

154

Item 16B. Code of Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

154

Item 16C. Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

155

Item 16D. Exemptions from the Listing Standards for Audit Committees . . . . . . . . . . . . . . . . . . . . . . . . . . .

156

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers . . . . . . . . . . . . . . . . . . . .

156

Item 16F. Change in Registrant’s Certifying Accountant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

157

Item 16G. Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

157

Item 16H. Mine Safety Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

158

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . . . . . . . . . . . . . . . . . . . . . .

158

PART III
Item 17.

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

159

Item 18.

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

159

Item 19.

Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

159

Index to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-1

1

As used in this annual report, references to the “Company”, “Nomura”, the “Nomura Group”, “we”, “us”
and “our” are to Nomura Holdings, Inc. and, except as the context otherwise requires, its consolidated
subsidiaries. As part of certain line items in Nomura’s financial statements and information included in thisannual report, references to “NHI” are to Nomura Holdings, Inc.
As used in this annual report, “yen” or “¥” means the lawful currency of Japan, “dollar” or “$” means thelawful currency of the United States of America (“U.S.”), and “EUR” means the lawful currency of the member
states of the European Monetary Union.
As used in this annual report, “ADS” means an American Depositary Share, currently representing one
share of the Company’s common stock, and “ADR” means an American Depositary Receipt evidencing one ormore ADSs.
As used in this annual report, except as the context otherwise requires, the “Companies Act” means theCompanies Act of Japan and the “FSA” means the Financial Services Agency of Japan.
Amounts shown in this annual report have been rounded to the nearest indicated digit unless otherwise
specified. In tables and graphs with rounded figures, sums may not add up due to rounding.

PART I
Item 1. Identity of Directors, Senior Management and Advisers
Not applicable.
Item 2. Offer Statistics and Expected Timetable
Not applicable.
Item 3. Key Information
A. Selected Financial Data
See Item 5. “Operating and Financial Review—A. Operating Results—Other operating results—Selected
Financial Data.”
B. Capitalization and Indebtedness.
Not applicable.
C. Reasons for the Offer and Use of Proceeds.
Not applicable.

2

D. Risk Factors.
Risk Factors
You should carefully consider the risks described below before making an investment decision. If any of therisks described below actually occurs, our business, financial condition, results of operations or cash flows could
be adversely affected. In that event, the trading prices of our shares could decline, and you may lose all or part ofyour investment. In addition to the risks listed below, risks not currently known to us or that we now deem
immaterial may also harm us and affect your investment.
INDEX
Š

Risks Relating to the Business Environment

1

Our business may be materially affected by financial markets, economic conditions and market
fluctuations in Japan and elsewhere around the world(1) Governmental fiscal and monetary policy changes in Japan, or in any other countries or regions where
we conduct business may affect our business, financial condition and results of operations(2) Extended market declines and decreases in market participants can reduce liquidity and lead to material
losses(3) Natural disaster, terrorism, military dispute and infectious disease could adversely affect our business(4) The COVID-19 pandemic may affect our business(5) Transition from U.S. Dollar LIBOR to alternative rate indices may adversely affect our business

2

The financial services industry faces intense competition(1) Competition with other financial firms and financial services by non-financial companies is increasing(2) Increased consolidation, business alliance and cooperation in the financial services industry mean
increased competition for us(3) Our global business continues to face intense competition and may require further revisions to its
business model3

Event risk may cause losses in our trading and investment assets as well as market and liquidity risk

4

Environmental, Social and Governance (“ESG”) factors including climate change and broader
associated policy changes in each jurisdiction could adversely affect our businessŠ

Risks Relating to Our Businesses5

Our business may incur losses due to various factors in the conduct of its operations(1) We may incur significant losses from our trading and investment activities(2) Holding large and concentrated positions of securities and other assets may expose us to significant
losses(3) Our hedging strategies may not prevent losses(4) Our risk management policies and procedures may not be fully effective in managing risk(5) Market risk may increase other risks that we face(6) Our brokerage and asset management revenues may decline(7) Our investment banking revenues may decline(8) Our electronic trading business revenues may decline3

6

We may be exposed to losses when third parties do not perform their obligations to us(1) Defaults by a large financial institution could adversely affect the financial markets generally and us
specifically(2) There can be no assurance as to the accuracy of the information about our credit risk, or the sufficiencyof the collateral we use in managing it(3) Our clients and counterparties may be unable to perform their obligations to us as a result of political or
economic conditions

7

We are exposed to model risk, i.e., risk of financial loss, incorrect decision making, or damage to thefirm’s credibility arising from model errors or incorrect or inappropriate model application

8

We are a holding company and depend on payments from our subsidiaries

9

We may not be able to realize gains we expect, and may even suffer losses, on our investments inequity securities and non-trading debt securities

10

We may face an outflow of clients’ assets due to losses of cash reserve funds or debt securities we offer

Š

Risks Relating to Our Financial Position

11

We may have to recognize impairment losses with regard to the amount of goodwill, tangible andintangible assets recognized on our consolidated balance sheets

12

Liquidity risk could impair our ability to fund operations and jeopardize our financial condition(1) We may be unable to access unsecured or secured funding(2) We may be unable to sell assets(3) Lowering of our credit ratings could impact our funding

13

Equity investments in affiliates and other investees accounted for under the equity method in ourconsolidated financial statements may decline significantly over a period of time and result in us
incurring impairment lossesŠ

Risks Relating to Legal, Compliance and Other Operational Issues

14

Operational risk could adversely affect our business15

We have identified a material weakness in our internal control over financial reporting and, despite
our efforts to remediate, may identify further material weaknesses in the future

16

Misconduct or fraud by an employee, director or officer, or any third party, could occur, and our
reputation in the market and our relationships with clients could be harmed

17

A failure to identify and appropriately address conflicts of interest could adversely affect our business18

Our business is subject to substantial legal, regulatory and reputational risks(1) Legal liability may occur due to events such as market downturn and could adversely affect ourbusiness, financial condition and results of operations(2) Extensive regulation of our businesses limits our activities and may subject us to significant penalties
and losses(3) Tightening of regulations applicable to the financial system and financial industry could adversely
affect our business, financial condition and results of operations4(4) Deferred tax assets may be impacted due to a change in business condition or in laws and regulations,
resulting in an adverse effect on our operating results and financial condition(5) Defects in our anti-money laundering and counter-terrorism financing measures could have serious
consequences such as, administrative penalties or punitive fines
19

Unauthorized disclosure or misuse of personal information held by us may adversely affect ourbusiness

20

System failure, the information leakage and the cost of maintaining sufficient cybersecurity could
adversely affect our business, financial condition and results of operations

21

Our business may be adversely affected if we are unable to hire, retain and develop qualified
personnel

Š

Risks Related to Holding or Trading of our Shares and ADSs

22

Because of daily price range limitations under Japanese stock exchange rules, you may not be able tosell your shares of the Company’s common stock at a particular price on any particular trading day,or at all23

Under Japan’s unit share system, holders of the Company’s shares constituting less than one unit are
subject to transfer, voting and other restrictions

24

As a holder of ADSs, you will have fewer rights than a shareholder has and you will have to act
through the depositary to exercise these rights

25

Rights of shareholders under Japanese law may be more limited than under the laws of otherjurisdictions

26

The Company’s shareholders of record on a record date may not receive the dividend they anticipate

27

It may not be possible for investors to secure personal jurisdiction within the U.S. over the Company
or the Company’s directors or executive officers, or to enforce against the Company or those persons
judgments obtained in U.S. courts predicated upon the civil liability provisions of the federal
securities laws of the U.S.

ŠSpecial Note Regarding Forward-looking Statements

Š

Risks Relating to the Business Environment

1.

Our business may be materially affected by financial markets, economic conditions and market
fluctuations in Japan and elsewhere around the world

Our business and revenues may be affected by any adverse changes or volatility in the Japanese and global
economic environments and financial markets. In addition, not only purely economic factors but also wars, actsof terrorism, economic or political sanctions, pandemics, forecasts of geopolitical risks and geopolitical events
which have actually occurred, natural disasters or other similar events could have an effect on the financial
markets and economies of each country. If any adverse events including those discussed above were to occur, amarket or economic downturn may last for a long period of time, which could adversely affect our business andcan result in us incurring substantial losses. In addition to conditions in financial markets, social conditions suchas the long-term trends of population aging and population decline faced by Japan are expected to continue to put
downward pressure on demand in the businesses in which we operate, including, in particular, our Retailbusiness. The following are certain risks related to the financial markets and economic conditions for our specificbusinesses.

5(1) Governmental fiscal and monetary policy changes in Japan, or in any other countries or regions where we
conduct business may affect our business, financial condition and results of operations
We engage in our business globally through domestic and international offices. Governmental fiscal,monetary and other policy changes in Japan, or in any other countries or regions where we conduct business may
affect our business, financial condition and results of operations. In addition, any changes to the monetary policyof the Bank of Japan or central banks in major economies worldwide, which could potentially lead to volatility ofinterest rate or yields may negatively affect our ability to provide asset management products to our clients aswell as our trading and investment activities. For example, in the fiscal year ended March 31, 2023, the U.S.
Federal Open Market Committee increased the federal funds rate multiple times as part of its strategy to combat
inflation, leading to significant increases in U.S. Dollar interest rates as well as turmoil in the banking sector in
the United States and in other countries, causing significant market volatility widely affecting our business andthe financial services industry.
(2) Extended market declines and decreases in market participants can reduce liquidity and lead to material
lossesExtended market declines can reduce the level of market activity and the liquidity of the assets traded inthose markets in which we operate. Market liquidity may also be affected by decreases in market participants, forexample, if financial institutions scale back market-related businesses due to increasing regulation or otherreasons. As a result, it may be difficult for us to sell, hedge or value such assets. In the event that a market fails in
pricing such assets, it will be difficult to estimate their values. If we cannot properly close out or hedge ourassociated positions in a timely manner or in full, particularly with respect to Over-The-Counter (“OTC”)
derivatives, we may incur substantial losses. Further, if the liquidity of a market significantly decreases and themarket may become unable to price financial instruments held by us, this could lead to unanticipated losses.
(3) Natural disaster, terrorism, military dispute and infectious disease could adversely affect our businessWe have developed a contingency plan for addressing unexpected situations and conduct crisis management
exercises which include employee notification tests. We also continue to ensure we can maintain operational
resilience (which refers to the ability to continue to provide critical services at a minimum level that should bemaintained in the event of a system failure, cyberattacks or natural disaster). This includes the establishment ofan emergency command center in the event of an actual disaster to account for the safety of our employees andtheir families. However, disaster, terrorism, military disputes or widespread infectious diseases afflicting ourbusiness, management and employees could exceed the assumptions of our plan and our framework, and we may
not always be able to respond to every situation, afflicting our management and employees, facilities andsystems, which could adversely affect our business. In addition, there is a possibility that unknown infectious
diseases other than COVID-19 pandemic may hinder the operational duties of our management and employees.
(4) The COVID-19 pandemic may affect our business
The COVID-19 pandemic that began in 2020, and governmental measures to prevent its spread, havesignificantly affected the operating environment, for example causing volatility in global equity prices, interest
rates and elsewhere and a widening of credit spreads. While the spread or impact of the disease is graduallysubsiding as vaccination efforts progress, ongoing negative effects on markets, economic activity or the operating
environment could further adversely affect our business, results of operations and financial condition.
(5) Transition from U.S. Dollar LIBOR to alternative rate indices may adversely affect our business
The United Kingdom (“U.K.”) Financial Conduct Authority confirmed on March 5, 2021 that U.S. Dollar
LIBOR settings will cease after June 30, 2023. All transaction agreements which refer to U.S. Dollar LIBOR andremain after its cessation are expected to be amended to refer alternative reference rates; or to be altered by6

adding fallback provisions that are agreed between the contracting parties in advance. These changes could
require us to incur additional costs and subject us to risks associated with systematic reform, operational
application and client disclosure, or adversely impact the pricing, volatility and liquidity of financial products
including derivatives, bonds and loans which reference U.S. Dollar LIBOR. Therefore, our business, financial
condition and results of operations could be materially and adversely affected and/or we could be subject todisputes, litigation or other actions with counterparties or relative participants.
2.

The financial services industry faces intense competition

Our businesses are intensely competitive, and are expected to remain so. We compete on the basis of anumber of factors, including transaction execution capability, our products and services, innovation, reputationand price. We have experienced intense price competition, particularly in brokerage, investment banking andother businesses.
(1) Competition with other financial firms and financial services by non-financial companies is increasing
We face intense competition in the financial services sector from a wide variety of competitors. In Japan, we
compete with other independent Japanese securities firms as well as securities firms affiliated with commercial
banks and with overseas firms. As a result, our market shares in the sales and trading, investment banking andretail businesses in particular have been affected. In recent years, competition has intensified beyond the
traditional financial sector based on the increasing digitalization of the industry, not only with the rise of online
securities firms but also FinTech companies and the entry of non-financial companies into the financial services
sector. In order to address such changes in the competitive landscape, we have already begun various efforts tothese changes in the competitive environment. However, these measures may not be successful in growing ormaintaining our market share in this increasingly fierce competitive environment, and we may lose business ortransactions to our competitors, harming our business and results of operations.
(2) Increased consolidation, business alliance and cooperation in the financial services industry mean
increased competition for us
There has been substantial consolidation and convergence among companies in the financial services
industry. In particular, a number of large commercial banks and other broad-based large financial services groups
have established or acquired broker-dealers or have consolidated with other financial institutions. These large
financial services groups have developed business linkage within their respective groups in order to provide
comprehensive financial services to clients, offering a wide range of products, including loans, deposit-taking,insurance, brokerage, asset management and investment banking services within their group, which may enhancetheir competitive position compared with us. They also have the ability to supplement their investment banking
and brokerage businesses with commercial banking and other financial services revenues in an effort to gain
market share. In addition, the financial services industry has seen collaboration beyond the borders of businesses
and industries, such as alliances between commercial banks and securities companies outside of framework ofexisting corporate groups and recent alliances with non-financial companies including emerging companies. Ourcompetitiveness may be adversely affected if our competitors are able to expand their businesses and improvetheir profitability through such business alliances. We also enter into strategic alliances, make investments andlaunch new businesses. However, if the development and implementation of these business strategies do notproceed as expected, we may not be able to achieve the expected synergies and other benefits or recoup related
investments. These new business initiatives and acquisitions may subject us to increased risk as we engage in
new activities, transact with a broader array of clients and counterparties and expose us to new asset classes andnew markets.
(3) Our global business continues to face intense competition and may require further revisions to its businessmodel
We continue to believe there are significant opportunities in the international markets, but there is alsosignificant competition associated with such opportunities. In order to take advantage of these opportunities, we
7

will have to compete successfully with financial services firms based in important non-Japanese markets,
including the U.S., Europe and Asia. Despite our efforts facing competition, we recognized an impairment loss
on goodwill attributable to previous overseas acquisitions of ¥81,372 million in the fiscal year ended March 31,
2019. Since April 2019, we have been working to rebuild our global business platform, under which we aim totransform our business portfolio and pivot towards client businesses and growth areas. The acquisition ofGreentech Capital, LLC (“Greentech”) in 2020 and transfer of stake of Capital Nomura Securities PublicCompany Limited in 2023, are examples of reviewing our business platform both organically and inorganically.
We will continue to review our entire business portfolio while looking at the competitive environment, andintend to implement our strategies in consideration of potential risks. However, the risk remains that we may berequired to incur greater expenses than expected, or to commit greater financial, management and other resources
to the strategies than expected, which could adversely affect our business and results of operations. Moreover,
the assumptions and expectations upon which the strategies are based may not be correct, which could lead to us
realizing fewer benefits than expected or could even harm our business and results of operations overall.
Furthermore, to the extent we reduce compensation or headcount as part of this strategy, our ability to attract andretain the employees needed to successfully run our businesses could be adversely affected. We may also be
unsuccessful in designing a streamlined management structure, which could harm our ability to properly control
or supervise our many businesses across the world.
3.

Event risk may cause losses in our trading and investment assets as well as market and liquidity risk

Event risk refers to potential losses we may suffer through unpredictable events that cause large unexpectedmarket price movements such as natural or man-made disasters, epidemics, acts of terrorism, armed conflicts orpolitical instability, as well as adverse events specifically affecting our business activities or counterparties.
These events include not only significant events such as the Great East Japan Earthquake in March 2011, theincreasing tensions on Korean Peninsula following North Korean nuclear tests in 2017, sudden and unexpecteddevelopments in global trade or security policies such as tensions between the United States and China since
2018 and ongoing geopolitical tensions in Asia overall, the COVID-19 pandemic in 2020, and the invasion of
Ukraine by the Russian Federation in 2022, but also more specifically the following types of events that could
cause losses in our trading and investment assets:4.

•

sudden and significant reductions in credit ratings with regard to financial instruments held by our
trading and investment businesses by major rating agencies,•

sudden changes in trading, tax, accounting, regulatory requirements, laws and other related rules which
may make our trading strategy obsolete, less competitive or no longer viable, or•an unexpected failure in a corporate transaction in which we participate resulting in our not receiving
the consideration we should have received, as well as bankruptcy, deliberate acts of fraud, andadministrative penalty with respect to the issuers of our trading and investment assets.

Environmental, Social and Governance (“ESG”) factors including climate change and broader
associated policy changes in each jurisdiction could adversely affect our business

Increasing attention to the management of Environmental, Social and Governance (“ESG”) factors in thebusiness makes it imperative that we continue to develop policies and capabilities in these areas, and that we act
responsibly towards our stakeholders, including our shareholders, clients and society at large. Amid rapidlychanging circumstances around ESG, a lack of sufficient focus on ESG matters such as the environment orhuman rights may impede our ability to maintain a sustainable business model and support clients facing trends
such as the just transition to the low carbon economy or other ESG-related initiatives, and may also adversely
affect our reputation, results of operations and financial condition. Reputational risks also include the risk
associated with over-stating our credentials, or not delivering on commitments we have made (also known as“greenwashing”).
We consider climate change one of the most important global challenges facing society. The direct impact
of climate change, and the resulting changes in the business environment could cause us to incur losses. Climate8risks are widely recognized to have two aspects – physical and transition risks. Physical risk refers to the risk ofloss or damage driven by extreme weather events, such as hurricane, flood, drought, heatwave or frost, or fromthe longer term shifts in climate patterns and rising sea levels. Transition risk is the risk associated with thetransition to a low-carbon economy, and could result from changing government policies, technologies orchanges to consumer demand.
Š

Risks Relating to Our Businesses5.

Our business may incur losses due to various factors in the conduct of its operations.
(1) We may incur significant losses from our trading and investment activities

We maintain trading and investment positions in fixed income, equity and other markets, both forproprietary purposes and for the purpose of facilitating our clients’ trades. Our positions consist of various typesof assets, including securities, derivatives transactions with equity, interest rate, currency, credit and other
underliers, as well as loans, and reverse repurchase agreements. Fluctuations in the markets where these assets
are traded can adversely affect the value of our positions, in these assets, with downturns potentially negatively
affecting long positions and upturns potentially negatively affecting short positions. Although we continue tomitigate these position risks with a variety of hedging techniques, we may also incur losses if the value of theseassets fluctuates or if the financial system is overly stressed and the markets move in a way we have notanticipated. In addition, prices of crypto-assets may fluctuate significantly due to various factors such as
developments in the industry or in regulation of crypto assets.
Our businesses have been, and may continue to be, affected by changes in market volatility levels. Certainof our trading businesses such as those engaged in trading and arbitrage opportunities depend on market volatility
to generate revenues. Lower volatility may lead to a decrease in business opportunities which may affect theresults of operations of these businesses. On the other hand, while higher volatility can increase trading volumes,
it also increases risk as measured by Value-at-Risk (“VaR”). Higher volatility and wider bid offer spreads may
expose us to higher risks in connection with our market-making and proprietary trading businesses. Higher
volatility can also cause us to reduce the outstanding positions or size of these businesses where we consider
necessary.
For example, in March 2021, following the default of a U.S. prime brokerage client in respect of a margin
call, we issued a close-out event notice to such client, and proceeded to wind down positions held as hedges fortransactions with the client, leading us to recognize significant trading losses on the unwinding of the underlying
positions and a provision for expected credit losses to reflect a shortfall in the value of securities pledged by theclient as collateral against financing provided to it. We refer to this event and the losses caused as the “U.S.
Prime Brokerage Event.” See Item 11. “Quantitative and Qualitative Disclosures about Market, Credit andOther Risk” for further information on the nature of this event. Despite our actions in response to the U.S. Prime
Brokerage Event, including to improve our risk management activities, our business model necessarily involves
significant trading activity, and we may record significant losses as a result of such trading activity again in the
future.
Furthermore, we commit capital to take relatively large positions for underwriting or warehousing assets tofacilitate certain capital market transactions. We also structure and take positions in pilot funds for developing
financial investment products and invest seed money to set up and support financial investment products. We
may incur significant losses from these positions in the event of significant market fluctuations.
In addition, if we are the party providing collateral in a transaction, significant declines in the value of thecollateral or a requirement to provide additional collateral due to a decline in our creditworthiness (by way of alowered credit rating or otherwise) can increase our costs and reduce our profitability. On the other hand, if weare the party receiving collateral from our clients and counterparties, such declines may also affect our
profitability due to decrease in client transactions. See also “—Risks Relating to Our Financial Position—12.
9Liquidity risk could impair our ability to fund operations and jeopardize our financial condition—(3) Loweringof our credit ratings could impact our funding”.
(2) Holding large and concentrated positions of securities and other assets may expose us to significant losses
We regularly hold large and concentrated positions of certain securities in our businesses such as marketmaking, block trading, underwriting, asset securitization, prime brokerage, acquiring newly-issued convertible
debt securities through third party allotment or providing business solutions to meet our clients’ needs. We havecommitted substantial amounts of capital to these businesses. This often requires us to take large positions in the
securities of a particular issuer or issuers in a particular industry, country or region. Fluctuations in the prices ofthese securities can significantly affect the prices at which we are able to liquidate them when needed, resulting
in us incurring significant trading losses, such as those incurred in connection with the U.S. Prime Brokerage
Event. See Item 11. “Quantitative and Qualitative Disclosures about Market, Credit and Other Risk” for further
information on the nature of this event. We generally have higher exposure to those issuers engaged in financial
services businesses, including commercial banks, broker-dealers, clearing houses, exchanges and investmentcompanies. There may also be cases where we hold relatively large amounts of securities by issuers in particularcountries or regions due to the business we conduct with our clients or our counterparties. In addition, we may
incur losses due to market fluctuations on asset-backed securities such as residential mortgage-backed securities(“RMBS”) and commercial mortgage-backed securities (“CMBS”).
(3) Our hedging strategies may not prevent losses
We use a variety of financial instruments and strategies to hedge our exposure to financial risks arising fromthe financial instruments we enter into for proprietary purposes or for our clients. If our hedging strategies are noteffective, we may incur losses. We base many of our hedging strategies on historical trading patterns andcorrelations. For example, if we hold an asset, we may hedge this position by taking a position in another asset
which has, historically, moved in a direction that would offset a change in value of the former asset. However,historical trading patterns and correlations may not continue, as seen in the case of past financial crises, and these
hedging strategies may not be fully effective in mitigating our risk exposure because we are exposed to all typesof risk in a variety of market environments. Moreover, not all hedging strategies are effective, and certain
strategies may, if the risk is not otherwise appropriately managed, increase our risk. For example, many of thetransactions leading to the U.S. Prime Brokerage Event entailed providing the client with “total return swap”
derivatives exposure to certain equities. See Item 11. “Quantitative and Qualitative Disclosures about Market,
Credit and Other Risk” for further information on the nature of this event. In order to hedge the total return
payments we were obligated to make to the client, we held long positions in the underlying equities. However,this specific hedging strategy was not intended to hedge the risk of a default by the client and the potential needto liquidate the underlying positions in a volatile market environment. When such risk was realized, our hedging
strategy of holding the underlying securities meant that we were exposed to such market fluctuations,contributing to the losses we incurred.
(4) Our risk management policies and procedures may not be fully effective in managing risks
Our policies and procedures to identify, monitor and manage risks may not be fully effective. Althoughsome of our methods of managing risk are based upon observed historical market data, the future movements inthe financial markets may not be the same as was observed in the past. As a result, we may suffer significant
losses through unexpected future risk exposures. Other risk management methods that we use also rely on ourevaluation of information regarding markets, clients or other matters, which is publicly available or otherwise
accessible by us. This information may not be accurate, complete, up-to-date or properly evaluated, and we may
be unable to properly assess our risks, and thereby suffer large losses. Furthermore, certain factors, such as
market volatility, may render our risk evaluation model unsuitable for a new market environment. In such event,
we may become unable to evaluate or otherwise manage our risks adequately. Moreover, regardless of how wellpolicies and procedures are designed, they must be properly implemented and followed in order to be effective,
10

which may not always occur despite our diligent efforts. Further, potential weaknesses in our organization
structures and governance frameworks may lead to misunderstanding over roles and responsibilities.
For example, with respect to the U.S. Prime Brokerage Event, we incurred significant losses throughexposures to the client’s counterparty risk and market risks relating to the securities underlying the prime
brokerage transactions with the client. We have reviewed and are in the process of completing a number ofactions to comprehensively review, revise and strengthen our risk management policies and procedures and theimplementation thereof. See Item 11. “Quantitative and Qualitative Disclosures about Market, Credit and Other
Risk” for further information on the nature and status of these review procedures. Such actions remain ongoing,
however, and when completed, may not be sufficient to prevent similar exposure to such risks in the future,including to identify and rectify potential shortcomings, whether within the same business or among our manyother business units, impairing the ability of such policies and procedures to prevent future losses.
(5) Market risk may increase other risks that we face
In addition to the potentially adverse effects on our businesses described above, market risk could
exacerbate other risks that we face. For example, the risks inherent in financial instruments developed throughfinancial engineering and innovation may be increased by market risk.
Also, if we incur significant trading losses caused by our exposure to market risk, our need for liquidity
could rise sharply while our access to cash may be impaired as a result of market perception of our credit risk.
Furthermore, in a downturn in the market overall or for specific securities, our clients and counterparties
could incur significant losses or experience other adverse events of their own, thereby weakening their financial
condition and, as a result, increasing the credit risk they pose to us, such as occurred as part of the U.S. Prime
Brokerage Event.
(6) Our brokerage and asset management revenues may decline
A market downturn could result in a decline in the revenues generated by our brokerage business because ofa decline in the volume and value of securities that we broker for our clients. Also, within our asset management
and investment management business, in most cases, we charge fees for managing our clients’ portfolios that are
based on the market value of their portfolios. A market downturn that reduces the market value of our clients’portfolios may increase the amount of withdrawals or reduce the amount of new investments in these portfolios,
and would reduce the revenue we receive from these businesses. Also, any changes in our clients’ investment
preference on their asset portfolios, including shifting investment assets to stable assets such as deposits and/or
passive funds, which bring us relatively low fee revenue, may reduce our revenue as well.
(7) Our investment banking revenues may decline
Changes in financial or economic conditions would likely affect the number and size of transactions forwhich we provide securities underwriting, financial advisory and other investment banking services. Ourinvestment banking revenues, which include fees from these services, are directly related to the number and sizeof the transactions in which we participate and would therefore decrease if there are financial and market changes
unfavorable to our investment banking business and our clients.
For example, net revenue from our investment banking activities declined during the year ended March 31,
2023 compared to the years ended March 31, 2021 and 2022 primarily due to geopolitical developments anduncertainty regarding the economic outlook, and net revenues may decline further in light of a decrease in M&A
activities and other investment banking activities.
(8) Our electronic trading business revenues may decline
Electronic trading is essential for our business in order to execute trades faster with fewer resources.
Utilizing these systems allows us to provide an efficient execution platform and on-line content and tools to our11clients via exchanges or other automated trading facilities. Revenue from our electronic trading, which includes
trading commissions and bid-offer spreads is directly correlated with the number and size of the transactions inwhich we participate. Competition in electronic trading is intense and the introduction of highly discounted or
no-commission trades at competitors has and will continue to exert pressure on our electronic and traditional
trading revenue. Moreover, such revenue would decrease if there are financial market or economic changes thatwould cause our clients to trade less frequently or in a smaller amount. Even if trade volumes increase due to theconvenience of electronic trading, this may not be sufficient to offset margin erosion in our execution business,leading to a potential decline in revenue generated from this business. We continue to invest in developing
technologies to provide an efficient trading platform, however, we may fail to maximize returns on theseinvestments due to this increased pressure on lowering margins.
6.

We may be exposed to losses when third parties do not perform their obligations to us

Our counterparties are from time to time indebted or otherwise owe certain obligations (such as withregards to the posting of collateral) to us as a result of transactions or contracts, including loans, commitments tolend, other contingent liabilities and derivative transactions. We may incur material losses when ourcounterparties default or fail to perform on their obligations to us due to their filing for bankruptcy, adeterioration in their creditworthiness, lack of liquidity, operational failure, an economic or political event,
repudiation of the transaction or for other reasons. The U.S. Prime Brokerage Event, during which a U.S. prime
brokerage client defaulted on obligations to us to post additional margin in respect of trading activities as well as
to repay amounts lent against collateral held by us, is an example. See Item 11. “Quantitative and Qualitative
Disclosures about Market, Credit and Other Risk” for further information on the nature of this event. Although
we establish and maintain allowances for credit losses, such allowances reflect management judgments andassumptions based on information available to us, which may provide incorrect or incomplete, and thesejudgments and assumptions may prove to be incorrect, potentially significantly so.
Credit risk may also arise from:•holding securities issued by third parties, or•the execution of securities, futures, currency or derivative transactions that fail to settle at the required
time due to non-delivery by the counterparty of Nomura, such as financial institutions and hedge funds,
or to systems failure by clearing agents, exchanges, clearing houses or other financial infrastructure.

Issues related to third party credit risk may include the following:(1) Defaults by a large financial institution could adversely affect the financial markets generally and us
specifically
The commercial soundness of many financial institutions is closely interrelated as a result of credit, trading,clearing or other relationships among the institutions. As a result, concern about the creditworthiness of or adefault by, a certain financial institution could lead to significant liquidity problems or losses in, or defaults by,other financial institutions. This may adversely affect financial intermediaries, such as clearing agencies, clearing
houses, banks, securities firms and exchanges, with which we interact on a daily basis. Actual defaults, increases
in perceived default risk and other similar events could arise in the future and could have an adverse effect on thefinancial markets and on us. Our funding operations may be adversely affected if major financial institutions,Japanese or otherwise, fail or experience severe liquidity or solvency problems.
(2) There can be no assurance as to the accuracy of the information about our credit risk, or the sufficiency ofthe collateral we use in managing it
We regularly review our credit exposure to specific clients or counterparties and to specific countries andregions that we believe may present credit concerns. Default risk, however, may arise from events orcircumstances that we do not detect, such as account-rigging and fraud. We may also fail to receive full12

information with respect to the risks of a counterparty, or to accurately manage and assess such informationinternally. For example, our credit risk assessments with respect to the client whose default led to the U.S. Prime
Brokerage Event did not reflect the full extent of the client’s relevant trading activity. In addition, in cases where
we have extended credit against collateral, we may fall into a deficiency in value in the collateral if sudden
declines in market values reduce the value of our collateral, as was the case with loans extended to the prime
brokerage client leading in part to the U.S. Prime Brokerage Event. See Item 11. “Quantitative and Qualitative
Disclosures about Market, Credit and Other Risk” for further information on the nature of this event.
(3) Our clients and counterparties may be unable to perform their obligations to us as a result of political or
economic conditions
Country, regional and political risks are components of credit risk, as well as market risk. Political or
economic pressures in a country or region, including those arising from local market disruptions or currency
crises, may adversely affect the ability of clients or counterparties located in that country or region to obtain
credit or foreign exchange, and therefore to perform their obligations owed to us.
7.

We are exposed to model risk, i.e., risk of financial loss, incorrect decision making, or damage to thefirm’s credibility arising from model errors or incorrect or inappropriate model application

Models are widely used by Nomura for various purposes including valuation of low liquidity derivativetransactions or estimation of credit worthiness of obligors. However, models are never perfect, and their use
subjects Nomura to model risk. Model errors or incorrect or inappropriate model applications could lead toincorrect decision making, financial losses or damage to the firm’s credibility.
8.

We are a holding company and depend on payments from our subsidiaries

We are a holding company and heavily depend on dividends, distributions and other payments from oursubsidiaries to make payments on our obligations. Regulatory and other legal restrictions, such as those under theCompanies Act, may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular,
many of our subsidiaries, including our broker-dealer subsidiaries, are subject to laws and regulations, including
regulatory capital requirements, that authorize regulatory bodies to block or reduce the flow of funds to theparent holding company, or that prohibit such transfers altogether in certain circumstances. For example, Nomura
Securities Co., Ltd. (“NSC”), Nomura Securities International, Inc., Nomura International plc and Nomura
International (Hong Kong) Limited, our main broker-dealer subsidiaries, are subject to regulatory capitalrequirements and changes in such regulatory capital requirements and the required level could limit the transfer
of funds to us. While we monitor and manage the transfer of funds among Nomura Group on the basis of therelevant laws and regulations on a daily basis, these laws and regulations may hinder our ability to access funds
needed to make payments on our obligations.
9.

We may not be able to realize gains we expect, and may even suffer losses, on our investments inequity securities and non-trading debt securities

We hold substantial investments in equity securities including private equity investments and non-trading
debt securities. Under U.S. GAAP, depending on market conditions, we may recognize significant unrealized
gains or losses on our investments in equity securities and debt securities, which could have an adverse impact on
our financial condition and results of operations. For example, in the fiscal year ended March 31, 2020, we
recognized a loss of ¥16.4 billion related to our investment in American Century Investments and ¥16.6 billion
on our investments in equity securities resulting from market declines arising from the COVID-19 pandemic.
Moreover, while we may decide to dispose of these equity securities and debt securities, depending on the market
conditions, we may not be able to dispose of these equity securities and debt securities when we would like to doso, as quickly as we may wish or at the desired price.

13

10. We may face an outflow of clients’ assets due to losses of cash reserve funds or debt securities we offer
Cash reserve funds, such as money market funds and money reserve funds are categorized as low risk
financial products. As a result of a sudden rise in interest rates, such cash reserve funds may fall below par value
due to losses resulting from price decreases of debt securities in the portfolio, defaults of debt securities in theportfolio or charges of negative interest. If we determine that a stable return cannot be achieved from theinvestment performance of cash reserve funds, we may accelerate the redemption of, or impose a deposit limit
on, such cash reserve funds.
In addition, debt securities that we offer may default or experience delays in the payment of interest and/or
principal.
These events above may result in the loss of client confidence and lead to an outflow of client assets fromour custody or preclude us from increasing such client assets.
Š

Risks Relating to Our Financial Position

11. We may have to recognize impairment losses with regard to the amount of goodwill, tangible andintangible assets recognized on our consolidated balance sheets
We have purchased all or a part of the equity interests in, or operations from, certain other companies inorder to pursue our business expansion, and expect to continue to do so when and as we deem appropriate. We
account for certain of those and similar purchases and acquisitions as a business combination under U.S. GAAP
by allocating our acquisition costs to the assets acquired and liabilities assumed and recognizing the remaining
amount as goodwill. On April 1, 2020, Nomura acquired 100% of Greentech and goodwill of ¥12,480 million isreported on our consolidated balance sheet. We also possess tangible and intangible assets other than those statedabove.
We may have to recognize impairment losses, as well as other losses associated with subsequenttransactions, with regard to the amount of goodwill, tangible and intangible assets and, recognized on ourconsolidated group balance sheet which may adversely affect our financial condition and results of operations.
For example, during the year ended March 31, 2019, we recognized an impairment loss on goodwill in ourWholesale segment attributable to previous overseas acquisitions of ¥81,372 million.
12. Liquidity risk could impair our ability to fund operations and jeopardize our financial condition
Liquidity, or having ready access to cash, is essential to our business. We define liquidity risk as the risk ofloss arising from difficulty in securing the necessary funding or from a significantly higher cost of funding thannormal levels due to deterioration of our creditworthiness or deterioration in market conditions. In addition tomaintaining a readily available cash position, we seek to secure ample liquidity through repurchase agreements
and securities lending transactions, long-term borrowings and the issuance of long-term debt securities,
diversification of our short-term funding sources such as commercial paper, and by holding a portfolio of highly
liquid assets. We bear the risk that we may lose liquidity under certain circumstances, including the following:(1) We may be unable to access unsecured or secured funding
We continuously access unsecured funding from issuance of securities in the short-term credit markets anddebt capital markets as well as bank borrowings to finance our day-to-day operations, including refinancing. We
also enter into repurchase agreements and securities lending transactions to raise secured funding for our tradingbusinesses. An inability to access unsecured or secured funding or funding at significantly higher cost thannormal levels could have a substantial negative effect on our liquidity. For example, lenders could refuse to14

extend the credit necessary for us to conduct our business based on their assessment of our long-term or shortterm financial prospects if:•

We incur large trading losses,•

The level of our business activity decreases due to a market downturn,•

Regulatory authorities take significant action against us, or•

Our credit rating is downgraded.

In addition to the above, our ability to borrow in the debt capital markets could also be adversely impacted
by factors that are not specific to us, such as increases in market interest rates, reductions in banks’ lending
capacity, a severe disruption of the financial and credit markets, negative views about the general prospects forthe investment banking, brokerage or financial services industries, or negative market perceptions of Japan’s
financial soundness.
(2) We may be unable to sell assets
If we are unable to raise funds or if our liquidity declines significantly, we will need to liquidate assets or
take other actions in order to meet our maturing liabilities. In volatile or uncertain market environments, overallmarket liquidity may decline. In a time of reduced market liquidity, we may be unable to sell some of our assets,
or we may have to sell at depressed prices, which could adversely affect our results of operations and financial
condition. Our ability to sell assets may also be adversely impacted by other market participants seeking to sellsimilar assets into the market at the same time.
(3) Lowering of our credit ratings could impact our funding
Our funding depends significantly on our credit ratings. Rating agencies may reduce or withdraw theirratings or place us on “credit watch” with negative implications. For example, following the U.S. Prime
Brokerage Event, in March 2021, Fitch Ratings, Inc. placed our credit ratings on negative watch and Moody’s
Investors Service, Inc. changed the outlook on our credit ratings to negative, which may lead either agency todowngrade our credit ratings in the future. See Item 11. “Quantitative and Qualitative Disclosures about Market,
Credit and Other Risk” for further information on the nature of this event. Future downgrades could increase ourfunding costs and limit our funding. This, in turn, could adversely affect our result of operations and our financial
condition. In addition, other factors which are not specific to us may impact our funding, such as negative market
perceptions of Japan’s financial soundness.
13. Equity investments in affiliates and other investees accounted for under the equity method in ourconsolidated financial statements may decline significantly over a period of time and result in us
incurring impairment losses
We have affiliates and investees accounted for under the equity method in our consolidated financial
statements and whose shares are publicly traded. If there is a decline in the market price, of the shares we hold insuch affiliates over a period of time, and we determine that the decline is other-than-temporary, then we
recognize an impairment loss for the applicable fiscal period which may have an adverse effect on our financial
condition and results of operations. For example, we recognized an impairment loss of ¥47,661 million against
its investment in Nomura Real Estate Holdings, Inc. during the year ended March 31, 2021.
Š

Risks Relating to Legal, Compliance and Other Operational Issues

14. Operational risk could adversely affect our business
Operational risk is the risk of financial loss or non-financial impact arising from inadequate or failed
internal processes and systems, from a lack of appropriate personnel, from human errors, or from external events,
15

and includes compliance, legal, IT and cyber security, fraud, third party, and other non-financial risks. We
always face the potential of operational risk, and if materializes, it could adversely affect our business.
Issues related to operational risk may also include the risks listed in items 15 to 21 below.
15. We have identified a material weakness in our internal control over financial reporting and, despite
our efforts to remediate, may identify further material weaknesses in the future
The Company identified a material weakness in our internal control over financial reporting during thequarter ended March 2024 in relation to certain classification and presentation matters within the consolidated
statement of cash flows as included within our consolidated financial statements, which has resulted in the needto restate the consolidated statement of cash flows in certain of the Company’s annual and interim consolidated
financial statements. The Company has identified and is in the process of implementing a number of remediation
actions, which are also being tested, to address this material weakness and intended to mitigate the risk of similarerrors occurring in the future within the consolidated statement of cash flows. Nonetheless, additional material
weaknesses or other issues may arise in the future resulting in the Company not being able to provide financial
information in our consolidated financial statements and elsewhere in an accurate, timely and reliable manner or
requiring additional restatements of our consolidated financial statements or other aspects of our periodic
reporting. This may undermine confidence in our published financial information and other reported informationby users of our consolidated financial statements, including holders of our securities, resulting in reductions in
the price of our common stock and/or ADRs as well as limit our access to capital markets, impact client or
counterparty appetite to enter into transactions with us and subject us to potential regulatory investigations andsanctions, each of which may materially and adversely affect our business, results of operations and financial
condition. See Note 1. “Summary of accounting policies” in the consolidated financial statements included in thisAmendment No.1 for further details of the nature of the errors identified within the consolidated statement ofcash flows and Item 15 “Controls and Procedures” in this Amendment No. 1 for further details on the material
weakness identified and our remediation actions to address this material weakness.
16. Misconduct or fraud by an employee, director or officer, or any third party, could occur, and our
reputation in the market and our relationships with clients could be harmed
We always face the risk that our employees, directors or officers, or any third party, could engage inmisconduct that may adversely affect our business. Misconduct by an employee, director or officer includes
conduct such as entering into transactions in excess of authorized limits, acceptance of risks that exceed ourlimits, or concealment of unauthorized or unsuccessful activities. The misconduct could also involve theimproper use or disclosure of non-public information relating to us or our clients, such as insider trading,
improper transmission of such information and the recommendation of trades based on such information, as wellas other crimes, which could result in regulatory sanctions, legal liability and serious reputational or financial
damage to us.
For example, on March 5, 2019, a researcher at Nomura Research Institute, Ltd. (“NRI”), our equity-method
affiliate, revealed information that there was a high possibility that the standard for designating the top market of
the Tokyo Stock Exchange (the “TSE”) would fall to ¥25 billion, which had been under review at the TSE, to achief strategist (the “NSC Strategist”) in the research division of NSC. The researcher at NRI was a member ofthe Advisory Group to Review the TSE Equity Market Structure and received this information in such capacity.
On the same day and the next day, the NSC Strategist communicated the information to certain people including
members of Japanese stock sales team of NSC and Nomura International (Hong Kong) Limited, some of whom
provided the information to their institutional investor clients. Although the provision of the information did not
represent a violation of law, they were inappropriate conducts and impaired the implicit trust placed in us and our
employees by other market participants. Following a special internal investigation conducted by external experts,
on May 24, 2019, we announced a remediation plan and the reduction of compensation of certain of our
16executives and those of NSC. On May 28, 2019, the FSA issued a business improvement order to us and to NSC,
requiring us to clarify responsibility for this incident, develop and submit a detailed improvement plan, andreport periodically on the implementation and effectiveness of measures for improvement, and on August 28,
2019, a fine of ¥10 million was imposed by Tokyo Stock Exchange, Inc. as a penalty.
Third parties may also engage in fraudulent activities, including devising a fraudulent scheme to induce ourinvestment, loans, guarantee or any other form of financial commitment, both direct and indirect. Because of thebroad range of businesses that we engage in and the large number of third parties with whom we deal in our
day-to-day business operations, such fraud or any other misconduct may be difficult to prevent or detect, and our
future reputation and financial condition could be adversely affected, which could result in serious reputational or
financial damage to us in the future.
Measures we have implemented or additional measures that may be implemented in the future may not beeffective in preventing or managing the risk of misconduct or fraud in all cases, and we may not always be able
to detect or deter misconduct or fraud by an employee, director, officers, or third parties. If any administrative or
judicial sanction is issued against us as a result of such fraudulent or misconduct, we may lose business
opportunities, and our future revenue and results of operations may be materially and adversely affected, evenafter the sanction is lifted, if and to the extent that our clients, especially public institutions, decide not to engage
us for their financial transactions.
17. A failure to identify and appropriately address conflicts of interest could adversely affect our businessWe are a global financial institution that provides a wide range of products and services to a diverse groupof clients, including individuals, corporations, other financial institutions and governmental institutions. As such,
we face potential conflicts of interest in the ordinary course of our business. Conflicts of interests can arise when
our services to a particular client conflict or compete, or are perceived to conflict or compete, with our own
interests. In addition, where non-public information is not appropriately restricted or shared within the firm,
conflicts of interest can also arise where a transaction within the Nomura Group and or a transaction with anotherclient conflict or compete, or is perceived to conflict or compete, with a transaction with a particular client. A
failure, or a perceived failure, to identify, disclose and appropriately address such conflicts could adversely affectour reputation, the willingness of current or potential clients to do business with us and our revenues and resultsof operations. In addition, conflicts of interest could give rise to regulatory actions or litigation.
18. Our business is subject to substantial legal, regulatory and reputational risks
Substantial legal liability or a significant regulatory action against us could have a material adverse effect on
our business, financial condition or results of operations, or cause reputational harm to us. Also, material changes
in regulations applicable to us or to the markets in which we operate could adversely affect our business. See
Note 19. “Commitments, contingencies and guarantees” in our consolidated financial statements included in thisannual report for further information regarding the significant investigations, lawsuits and other legal
proceedings that we are currently facing.
We face significant legal risks in our businesses. These risks include liability under securities or other laws
in connection with securities underwriting and offering transactions, liability arising from the purchase or sale ofany securities or other financial products, disputes over the terms and conditions of complex tradingarrangements or the validity of contracts for our transactions, disputes with our business alliance partners andlegal claims concerning our other businesses.
(1) Legal liability may occur due to events such as market downturn and could adversely affect our business,financial condition and results of operations
During a prolonged market downturn or upon the occurrence of an event that adversely affects the market,
we would expect claims against us to increase. We may also face significant litigation. The cost of defending
17

such litigation may be substantial and our involvement in litigation may damage our reputation. For example,
during the fiscal year ended March 2022, approximately ¥62.0 billion related to legacy transactions in the U.S.
from before the global financial crisis (2007 – 2008) was recognized including legal expenses as well as certaintransactions intended to mitigate future losses. In addition, even legal transactions might be subject to adverse
public reaction according to the particular details of such transactions. These risks may be difficult to assess orquantify and their existence and magnitude may remain unknown for substantial periods of time.
(2) Extensive regulation of our businesses limits our activities and may subject us to significant penalties andlosses
The financial services industry is subject to extensive regulation. We are subject to increasing regulation by
governmental and self-regulatory organizations in Japan and in virtually all other jurisdictions in which we
operate, and such governmental and regulatory scrutiny may increase as our operations expand or as lawschange. In addition, while regulatory complexities increase, possibilities of extra-territorial application of aregulation in one jurisdiction to business activities outside of such jurisdiction may also increase. These
regulations are broadly designed to ensure the stability of financial systems and the integrity of the financial
markets and financial institutions, and to protect clients and other third parties who deal with us, and often limit
our activities and/or affect our profitability, through net capital, client protection and market conduct
requirements. In addition, on top of traditional finance-related legislation, the scope of laws and regulations
applying to, and/or impacting on, our operations may become wider depending on the situation of the wider
international political and economic environment or policy approaches taken by governmental authorities inrespect of regulatory application or law enforcement. In particular, the number of investigations and proceedings
against the financial services industry by governmental and self-regulatory organizations has increased
substantially and the consequences of such investigations and proceedings have become more severe in recent
years, and we are subject to face the risk of such investigations and proceedings. For example, the U.S.
Department of Justice (the “DOJ”) conducted an investigation regarding residential mortgage-backed securities
securitized by some of our U.S. subsidiaries prior to 2009. On October 15, 2018, the U.S. subsidiaries settled theinvestigation with the DOJ and agreed to pay $480 million. We may not always be able to prevent such
violations, and we could be fined, prohibited from engaging in some of our business activities, ordered to
improve our internal governance procedures or be subject to revocation of our license to conduct business. Our
reputation could also suffer from the adverse publicity that any administrative or judicial sanction against us may
create, which may negatively affect our business opportunities and ability to secure human resources. As a resultof any such sanction, we may lose business opportunities for a period of time, even after the sanction is lifted, if
and to the extent that our clients, especially public institutions, decide not to engage us for their financialtransactions. In addition, certain market participants may refrain from investing in or entering into transactions
with us if we engage in business activities in regions subject to international sanctions, even if our activities do
not constitute violations of sanctions laws and regulations.
(3) Tightening of regulations applicable to the financial system and financial industry could adversely affectour business, financial condition and results of operations
If regulations that apply to our businesses are introduced, modified or removed, we could be adversely
affected directly or through resulting changes in market conditions. The impact of such developments could
make it economically unreasonable for us to continue to conduct all or certain of our businesses, or could cause
us to incur significant costs to adjust to such changes.
New regulations or revisions to existing regulations relating to accounting standards, regulatory capital
adequacy ratios, liquidity ratios and leverage ratios applicable to us could also have a material adverse effect on
our business, financial condition and results of operations. Such new regulations or revisions to existing
regulations include the so-called Basel III package formulated by the Basel Committee on Banking Supervision(“Basel Committee”) and the finalized Basel III reforms published in December 2017. Furthermore, in October
2012, the Basel Committee developed and published a set of principles on the assessment methodology and18higher loss absorbency requirements for domestic systemically important banks (“D-SIBs”), and, in December
2015, the FSA identified us as a D-SIB and imposed a surcharge of 0.5% on our required capital ratio after
March 2016 with 3-year transitional arrangement. In addition, FSB published the final standard requiring global
systemically important banks (“G-SIBs”) to maintain a certain level of total loss-absorbing capacity (“TLAC”)
upon their failure in November 2015. Under the FSA’s policy implementing the TLAC framework in Japan as
updated in April 2018, the TLAC requirements in Japan apply not only to Japanese G-SIBs but also to Japanese
D-SIBs that are deemed (i) of particular need for a cross-border resolution arrangement and (ii) of particularsystemic significance to Japanese financial system if they fail. Based on the revised policy, in March 2019, the
FSA published the notices and guidelines of TLAC regulations in Japan. According to these notices andguidelines, Nomura is subject to the TLAC requirements in Japan from March 31, 2021 although Nomura is not
identified as a G-SIB as of the date of this annual report. These changes in regulations may increase our funding
costs or require us to liquidate financial instruments and other assets, raise additional capital or otherwise restrict
our business activities in a manner that could adversely affect our operating or financing activities or the interestsof our shareholders.
(4) Deferred tax assets may be impacted due to a change in business condition or in laws and regulations,
resulting in an adverse effect on our operating results and financial condition
We recognize deferred tax assets in our consolidated balance sheets as a possible benefit of tax relief in the
future. If we experience or forecast future operating losses, if tax laws or enacted tax rates in the relevant tax
jurisdictions in which we operate change, or if there is a change in accounting standards in the future, we may
reduce the deferred tax assets recognized in our consolidated balance sheets. As a result, it could adversely affectour financial condition and results of operations. See Note 14 “Income taxes” in our consolidated financial
statements included in this annual report for further information regarding the deferred tax assets that wecurrently recognize.
(5) Defects in our anti-money laundering and counter-terrorism financing measures could have serious
consequences such as, administrative penalties or punitive fines
In recent years, financial crimes have become more sophisticated, complex, and diverse. As the world faces
growing threats of war, terrorism, and cyberattacks, it is highly important to counter the financing of crimes andterrorism. Financial institutions around the world are expected to take strong measures to combat money
laundering and terrorist financing. Despite our efforts to improve our anti-money laundering and counterterrorism financing measures, which we have implemented consistently across Nomura Group in accordancewith the Recommendations provided by the Financial Action Task Force (FATF) and the FSA’s “Guidelines on
Anti-Money Laundering and Terrorist Financing”, there remains a risk that such measures will not be fully
effective in preventing or detecting all violations in a timely manner. As a consequence, we could be subject toadministrative penalties or punitive fines. See “17.Our business is subject to substantial legal, regulatory andreputational risks—(2) Extensive regulation of our businesses limits our activities and may subject us tosignificant penalties and losses” for further information regarding regulatory actions and other legal proceedings
as well as consequences thereof.
19. Unauthorized disclosure or misuse of personal information held by us may adversely affect ourbusiness
We keep and manage personal information obtained from clients in connection with our business. In recent
years, there have been many reported cases of personal information and records in the possession of corporations
and institutions being improperly accessed disclosed or misused.
Although we exercise care to protect the confidentiality of personal information and have in place policies
and procedures designed to safeguard such information and ensure that it is used in compliance with applicablelaws, rules and regulations, were any unauthorized disclosure or misuse of personal information to occur, our19business could be adversely affected. For example, we could be subject to government actions such asadministrative actions or penalties in case there is any violation of applicable personal data protection laws, rules
and regulations or be subject to complaints and lawsuits for damages from clients if they are adversely affected
due to the unauthorized disclosure or misuse of their personal information (including leakage of such information
by an external service provider). In addition, we could incur additional expenses associated with changing our
security systems, either voluntarily or in response to administrative guidance or other regulatory initiatives.
Moreover, restrictions on our ability to use personal information collected from clients may adversely affect ourexisting businesses or to develop new ones. Furthermore, any damage to our reputation caused by such
unauthorized disclosure or misuse could lead to a decline in new clients and/or a loss of existing clients, as wellas to increased costs and expenses incurred for public relations campaigns designed to prevent or mitigate
damage to our corporate or brand image or reputation.
20. System failure, the information leakage and the cost of maintaining sufficient cybersecurity could
adversely affect our business, financial condition and results of operations
Our businesses rely on secure processing, storage, transmission and reception of personal, confidential andproprietary information on our systems. We have been in the past and may again become the target of attempted
unauthorized access, computer viruses or malware, and other cyberattacks designed to access and obtain
information on our systems or to disrupt and cause other damage to our services. For example, in June 2018, oneof our foreign subsidiaries experienced a spear phishing incident that resulted in the unauthorized access to thefirm’s desktop network, requiring us to immediately launch an internal investigation to assess and remediate theincident, notify the appropriate authorities of its occurrence and communicate with clients and other individuals
whose data may have been impacted. In response to the COVID-19 pandemic, many of our employees now work
remotely using networking or other technologies, and these technologies have become even more critical to ourbusiness. The implementation of remote work arrangements may also increase the possibility that we will be
subject to cyberattacks and other information security breaches. Although these threats may originate fromhuman error or technological failure, they may also originate from the malice or fraud of internal parties, such as
employees, or third parties, including foreign non-state actors and extremist parties. Additionally, we could also
be adversely impacted if any of the third-party vendors, exchanges, clearing houses or other financial institutions
to whom we are interconnected are subject to cyberattacks or other informational security breaches. Such events
could cause interruptions to our systems, reputational damage, client dissatisfaction, legal liability, enforcement
actions or additional costs, any and all of which could adversely affect our financial condition and operations.
While we continue to devote significant resources to monitor and update our systems and implement
information security measures to protect our systems, there can be no assurance that any controls and procedures
we have in place will be sufficient to protect us from future security breaches. As cyber threats are continually
evolving, our controls and procedures may become inadequate and we may be required to devote additional
resources to modify or enhance our systems in the future.
21. Our business may be adversely affected if we are unable to hire, retain and develop qualified
personnel
Nomura believe that our people are our greatest asset and we implement various talent management
initiatives in a comprehensive manner. Any failure to hire, retain, and develop qualified personnel may materiallyand adversely affect our business, financial condition and results of operations. There is significant competition
for such personnel, based on factors such as compensation, the working environment, training and benefits
available to employees and our reputation as an employer. Spending on our human resource initiatives may harm
our profitability. Moreover, developing our human resources and instilling in them a uniform corporate culture isa continuous, intensive process, and we may not be successful in doing so.

20

Š

Risks Related to Holding or Trading of our Shares and ADSs

22. Because of daily price range limitations under Japanese stock exchange rules, you may not be able tosell your shares of the Company’s common stock at a particular price on any particular trading day,or at all
Stock prices on Japanese stock exchanges are determined on a real-time basis by the equilibrium between
bids and offers. These exchanges are order-driven markets without specialists or market makers to guide priceformation. For the purpose of protecting investors from excessive volatility, these exchanges set daily upwardand downward price fluctuation limits for each stock, based on the previous day’s closing price. Althoughtransactions may continue at the upward or downward limit price if the limit price is reached on a particular
trading day, no transactions may take place outside these limits. Consequently, an investor wishing to sell at a
price above or below the relevant daily limit may not be able to sell his or her shares at such price on a particular
trading day, or at all.
23. Under Japan’s unit share system, holders of the Company’s shares constituting less than one unit are
subject to transfer, voting and other restrictions
The Company’s Articles of Incorporation, as permitted under the Companies Act, provide that 100 shares of
the Company’s stock constitute one “unit.” The Companies Act imposes significant restrictions and limitations
on holdings of shares that constitute less than a whole unit. Holders of shares constituting less than one unit do
not have the right to vote or any other rights relating to voting. Under the unit share system, any holders of sharesconstituting less than a unit may at any time request the Company to purchase their shares. Also, holders ofshares constituting less than a unit may request the Company to sell them such number of shares that theCompany may have as may be necessary to raise such holder’s share ownership to a whole unit. Sharesconstituting less than a unit are transferable under the Companies Act, but may not be traded on any Japanesestock exchange.
24. As a holder of ADSs, you will have fewer rights than a shareholder has and you will have to act
through the depositary to exercise these rights
The rights of shareholders under Japanese law to take actions including voting their shares, receiving
dividends and distributions, bringing derivative actions, examining the company’s accounting books and records
and exercising appraisal rights are available only to holders of record. Because the depositary, through its
custodian agent, is the record holder of the shares underlying the ADSs, only the depositary can exercise thoserights in connection with the deposited shares. The depositary will make efforts to vote the shares underlying
your ADSs as instructed by you and will pay you the dividends and distributions collected from the Company.
However, in your capacity as an ADS holder, you will not be able to bring a derivative action, examine theCompany’s accounting books or records or exercise appraisal rights except through the depositary.
25. Rights of shareholders under Japanese law may be more limited than under the laws of otherjurisdictions
The Companies Act and the Company’s Articles of Incorporation and Regulations of the Board of Directors
govern the Company’s corporate affairs. Legal principles relating to such matters as the validity of corporate
procedures, directors’ and executive officers’ fiduciary duties and shareholders’ rights may be different fromthose that would apply to a non-Japanese company. Shareholders’ rights under Japanese law may not be as
extensive as shareholders’ rights under the laws of other jurisdictions, including jurisdictions within the U.S. You
may have more difficulty in asserting your rights as a shareholder than you would as a shareholder of acorporation organized in another jurisdiction.

21

26. The Company’s shareholders of record on a record date may not receive the dividend they anticipate
The customary dividend payout practice of publicly listed companies in Japan may significantly differ fromthat widely followed or otherwise deemed necessary or fair in foreign markets. The Company’s dividend payout
practice is no exception. The Company ultimately determines whether the Company will make any dividend
payment to shareholders of record as of a record date and such determination is made only after such record date.
For the foregoing reasons, the Company’s shareholders of record as of a record date may not receive thedividends they anticipate. Furthermore, the Company does not announce any dividend forecasts.
27. It may not be possible for investors to secure personal jurisdiction within the U.S. over the Company
or the Company’s directors or executive officers, or to enforce against the Company or those persons
judgments obtained in U.S. courts predicated upon the civil liability provisions of the federal
securities laws of the U.S.
The Company is a limited liability, joint-stock corporation incorporated under the laws of Japan. Most of theCompany’s directors and executive officers reside in Japan. Many of the Company’s assets and the assets ofthese persons are located in Japan and elsewhere outside the U.S. It may not be possible, therefore, for U.S.
investors to obtain personal jurisdiction over the Company or these persons within the U.S. or to enforce against
the Company or these persons judgments obtained in U.S. courts predicated upon the civil liability provisions of
the federal securities laws of the U.S. The Company believes that there is doubt as to the enforceability in Japan,
in original actions or in actions for enforcement of U.S. court judgments, of liabilities predicated solely upon thefederal securities laws of the U.S.
ŠSpecial Note Regarding Forward-looking Statements

This annual report contains forward-looking statements that are based on our current expectations,assumptions, estimates and projections about our business, our industry and capital markets around the world.
These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”,“anticipate”, “estimate”, “plan” or similar words. These statements discuss future expectations, identify
strategies, contain projections of our results of operations or financial condition, or state other forward-looking
information.
Known and unknown risks including the COVID-19 pandemic, uncertainties and other factors may cause
our actual results, performance, achievements or financial position to differ materially from any future results,
performance, achievements or financial position expressed or implied by any forward-looking statement
contained in this annual report. Such risks, uncertainties and other factors are set forth in this Item 3.D andelsewhere in this annual report.
Item 4. Information on the Company
A. History and Development of the Company.
The Company (previously known as The Nomura Securities Co., Ltd.) was incorporated in Japan on
December 25, 1925 under the Commercial Code of Japan when the securities division of The Osaka Nomura
Bank, Ltd. became a separate entity specializing in the trading and distribution of debt securities in Japan. The
Company was the first Japanese securities company to develop its business internationally with the opening in
1927 of a representative office in New York. In Japan, we broadened the scope of our business when we began
trading in equity securities in 1938 and when we organized the first investment trust in Japan in 1941.
We have played a leading role in most major developments in the Japanese securities market. Thesedevelopments include the resumption of the investment trust business in the 1950s, the introduction of publicstock offerings by Japanese companies in the 1960s, the development of the over-the-counter bond market in the22

1970s, the introduction of new types of investment trusts such as the medium-term Japanese government bondinvestment trust in the 1980s, and the growth of the corporate bond and initial public offering markets in the
1990s.
Our expansion overseas accelerated in 1967, when the Company acquired a controlling interest in Nomura
International (Hong Kong) Limited for the purpose of conducting broker-dealer activities in the Hong Kong
capital markets. Subsequently, we established a number of other overseas subsidiaries, including Nomura
Securities International, Inc. in the U.S. in 1969 as a broker-dealer and Nomura International Limited, now
Nomura International plc, in the U.K. in 1981, which acts as an underwriter and a broker, as well as otheroverseas affiliates, branches and representative offices.
On October 1, 2001, we adopted a holding company structure. In connection with this reorganization, theCompany changed its name from “The Nomura Securities Co., Ltd.” to “Nomura Holdings, Inc.” The Company
continues to be listed on the Tokyo Stock Exchange and other stock exchanges. A wholly-owned subsidiary of
the Company assumed the Company’s securities businesses and was named “Nomura Securities Co., Ltd.”The Company has proactively engaged in establishing a governance framework to ensure transparency in
the Company’s management. Among other endeavors, when the Company adopted a holding company structure
and was listed on the New York Stock Exchange (“NYSE”) in 2001, the Company installed Outside Directors. In
addition, in June 2003, the Company further strengthened and increased the transparency of the Company’s
oversight functions by adopting the Company with Three Board Committees (previously known as theCommittee System), a system in which management oversight and business execution functions are clearly
separated.
In 2008, to pave the way for future growth, the Company acquired and integrated the operations of Lehman
Brothers in Asia Pacific, Europe and the Middle East.
The address of the Company’s registered office is 13-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8645,
Japan, telephone number: +81-3-5255-1000.
The SEC maintains an internet site that contains reports, proxy and information statements, and otherinformation regarding issuers that file electronically with the SEC at https://www.sec.gov. Our corporate website
is https://www.nomuraholdings.com.
B. Business Overview.
Overview
We are one of the leading financial services groups in Japan and we operate offices in countries and regions
worldwide including Japan, the U.S., the U.K., Singapore and Hong Kong Special Administrative Region(“Hong Kong”) through our subsidiaries.
Our clients include individuals, corporations, financial institutions, governments and governmental
agencies.
Our business consists of Retail, Investment Management, and Wholesale, which are described in further
detail below. See also Note 20 “Segment and geographic information” in our consolidated financial statements
included in this annual report.

23

Corporate Goals and Principles➀ Fundamental Management Policy
In Fundamental Management Policy formulated by the Board of Directors, our company has set thefollowing Management Vision and Basic Vision of Group Management.
Fundamental Management Policy of Nomura Holdings, Inc.
(Management Vision)
Nomura Group’s management vision is to enhance its corporate value by deepening society’s trust in thefirm and increasing satisfaction of stakeholders, including that of shareholders and clients.
As a global investment bank, the Company will provide high value-added solutions to clients globally,
and recognizing its wider social responsibility, the Company will continue to contribute to the economic
growth and development of society.
To enhance its corporate value, the Company utilizes return on equity (“ROE”) as a management
indicator and will strive for sustainable business transformation.
(Basic Vision of Group Management)(1) Nomura Group will establish its modernized growth model by itself through realizing expansion of its
business in new domains. Nomura Group will also establish earning structure not subject to market condition
with proper cost control and risk management.
(2) Nomura Group will aim to serve its customers at the highest level in every investment, by paying
thorough attention to the needs of its customers and the market and by providing its customers with highly
value-added solutions in financial and capital markets.
(3) Nomura Group will emphasize compliance with applicable laws and regulations and proper corporate
behavior to carry out compliance and conduct risk management in daily business operations. Each company of
Nomura Group shall respect customers’ interests and comply with applicable laws and regulations relating to
the business.
(4) Nomura Group seeks to ensure effective management oversight and increase managementtransparency.
(5) Nomura Group will contribute to expanding securities markets through daily business andcontinuously engage in educational activities regarding investment in order to broaden participation in the
securities market.
We have established the following management vision based on the management goals.
➁ Management Vision
Our diverse businesses rely on the trust of our clients and all stakeholders. We recognize that raising ourcorporate value and ensuring sustainable growth of society as a whole are closely linked together. This is why
our management vision is to achieve sustainable growth by helping resolve social issues.
Our Business Divisions
RetailIn our Retail Division, we conduct business activities by delivering a wide range of financial products andhigh quality investment services mainly for individuals and corporations in Japan primarily through a network of24

nationwide branches of NSC. The total number of local branches, including our head office, was 116 as of theend of March 2023. We offer investment consultation services to meet the medium and long-term needs of ourclients. We discuss retail client assets in “Retail Client Assets” under Item 5.A of this annual report.
We will strengthen our operating model to provide solutions and services that enable us further flexible
approaches to the entire balance sheet of our clients.
Investment Management
Our Investment Management Division is committed to providing high-quality investment strategies,
products, and services to a wide range of investors. Along with delivering investment trusts for individual
investors through financial institutions in Japan, we provide various investment solutions, both in public andprivate market asset classes, to pension funds, institutional investors, and financial intermediaries globally.
We are expanding our product offerings and improving our services to meet the diversifying investment
needs of our clients in the broad asset management business. By combining our expertise in traditional assets
such as stocks and bonds with alternative assets such as private equity, private debt, and real assets, we provide
added value and offer advanced services and solutions to meet the diverse needs of our clients. Within theInvestment Management Division, Nomura Asset Management Co., Ltd. (NAM) and our other investment andasset management companies maintain their respective independence in their investing activity to fulfill
applicable fiduciary duties while supported by common knowledge, infrastructure, and functions of Nomura
Group.
Our revenues are mainly from the asset management fees we receive from our clients or funds we manage.
Typically, our asset management fees are based on fixed annual rates calculated based on the amount of assets
under our management. Also, we occasionally receive success or performance-linked fees depending on theinvestment performance we deliver to our clients. We also seek to generate investment gains through our own
investments. We often co-invest in private market funds we manage alongside external investors to demonstrate
our commitment to the underlying investment strategies of those funds.
Wholesale
Our Wholesale Division consists of two businesses, Global Markets, which is engaged in the trading, sales
and structuring of financial products, and Investment Banking which is engaged in financing and advisorybusinesses.
Global Markets
Global Markets provides sales, trading, agency execution, and market-making of fixed income and equityrelated products.
Our global fixed income offerings include, among other products, government securities, interest rate
derivatives, investment-grade and high-yield corporate debt securities, credit derivatives, G-10 and emerging
markets foreign exchange, asset-backed securities and mortgage-related products, in over-the-counter (“OTC”)
and listed markets. We are primary dealers in the Japanese government securities market as well as selected
Asian, European and U.S. markets.
Our global equity-related products include equity securities, Exchange Traded Funds (“ETFs”), convertible
securities, listed and OTC equity derivatives, and supported by prime services in selected markets. In addition,
we offer execution services based on cutting-edge electronic trading technology to help clients navigate throughthe complex market structure and achieve best execution. In order to provide extensive market access to ourclients, we are also a member of various exchanges around the world, with leading positions on the Tokyo Stock
Exchange.
25

These product offerings are supported by electronic/digital technology, and our global structuring andquants function which provide tailored ideas and trading strategies for our institutional and corporate clients aswell as our retail franchise.
Investment Banking
We offer a broad range of investment banking services to a diverse range of corporations, financial
institutions, sovereigns, financial sponsors and others. We aim to establish and cultivate strong, long-term
relationships with our clients by providing them with our extensive resources for each bespoke solution.
Underwriting. We underwrite offerings of a wide range of securities and other financial instruments,
including various classes of shares, convertible and exchangeable securities, investment grade and high yield
debt, sovereign and emerging market debt, structured securities and other securities in the Asian, European, U.S.
and other financial markets. We also arrange private placements and engage in other capital raising activities.
Financial Advisory & Solutions Services. We provide financial advisory services on business transactions
including mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities,
leveraged buyouts and risk solutions. Our involvement in reorganizations and other corporate restructurings
related to industry consolidation enhances our opportunities to offer clients other advisory and investmentbanking services.
On April 1, 2020, we completed the acquisition of Greentech Capital, LLC, an M&A boutique that is strongin sustainable technology and infrastructure. While we expand our global advisory business, we will focus on
broadening ESG related businesses with initiatives such as further utilization of Nomura Greentech’s expertiseand enhancement of our sustainable finance platform.
Our Research Activities
We have an extensive network of intellectual capital with key research offices in Tokyo, Hong Kong andother major markets in the Asia-Pacific region, as well as in London and New York. We are recognized as aleading content provider with an integrated global approach to providing capital markets research. Our analysts
collaborate closely across regions and disciplines to track changes and spot future trends in politics, economics,
foreign exchange, interest rates, equities, and credit, and also provide quantitative analysis.
Our Information Technology
We believe that information technology is one of the key success factors for our overall business and intend
to maintain and enhance our solid technology platform to ensure that we are able to fulfill and exceed the various
needs of our clients. Accordingly, we will continue to invest, enhance and adapt our technology platform toensure it remains suitable for each division and proactively seek and implement innovative financial technology
to improve the operations of our business.
In our Retail Division, we continually invest and enhance our core system and related systems to improve
efficiency in our business operations. We are also continuously working on improving our internet-based andsmartphone platforms.
In our Investment Management Division, we continue to invest and enhance our technology platforms
related to our core businesses leveraging third-party services to improve our capabilities and efficiency. We arealso continuously working on digital marketing to expand business opportunities, and utilizing advanced
technology to automate and sophisticate operations for investment management.
In our Wholesale Division, we continually invest and enhance our technology platforms to provide betterrisk management, improved data governance and also to increase trading capabilities through platforms allowing
26

direct market access and algorithmic trading. In order to ensure the support level of our Wholesale operations, wewill continue to maintain utilization of our offshore service entities in India and enhance our regional support
based capabilities.
Furthermore, our digital transformation efforts are directly linked to the competitiveness of financial
institutions in the future, and we will continue to promote a wide range of initiatives based on our strategy inorder to provide highly convenient services to our clients and respond to diversifying needs. We also believe thatour people are the source of added value created by the Nomura Group even in a world where digitization anddigitalization are advanced. We will continue to strengthen the development of our human resources with thequalities required for the upcoming era, such as consulting capabilities that make full use of both face-to-face andvirtual communications.
Competition
The financial services industry is intensely competitive and we expect it to continue remain so. We compete
globally with other brokers and dealers, investment banking firms, commercial banks, investment advisors andother financial services firms. We also face competition on regional, product and niche bases from local andspecialist firms. Increasingly, we face competition from online securities firms, FinTech companies andnon-financial companies entering the financial services sector. A number of factors determine our competitive
position against other firms, including:•the quality, range and prices of our products and services,•

our ability to originate and develop innovative client solutions,•

our ability to maintain and develop client relationships,•

our ability to access and commit capital resources,•

our ability to retain and attract qualified employees, and•our general reputation.

Our competitive position is also affected by the overall condition of the global financial markets, which are
influenced by factors such as:•

the monetary and fiscal policies of national governments and international economic organizations,•

economic, political and social developments both within and between Japan, the U.S., Europe and othermajor industrialized and developing countries and regions, such as the COVID-19 pandemic since 2020,
and•increasing digitalization beyond the traditional financial sector

In Japan, we compete with other Japanese and non-Japanese securities companies and other financial
institutions. Competition has become more intense due to deregulation in the Japanese financial industry since
the late 1990s and the increased presence of global securities companies and other financial institutions. In
particular, major global firms have increased their presence in securities underwriting, corporate advisory
services (particularly, mergers and acquisitions advisory) and secondary securities sales and trading.
There has also been substantial consolidation and convergence among financial institutions, both within
Japan and globally and this trend continued as the credit crisis caused mergers and acquisitions and asset
acquisitions in the industry. The growing presence and scale of financial groups which encompass commercial
banking, securities brokerage, investment banking and other financial services has led to increased competition.
Through their broadened offerings, these firms are able to create good client relationships and leverage their
existing client base in the brokerage and investment banking business as well.
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In addition to the breadth of their products and services, these firms have the ability to pursue greater market
share in investment banking and securities products by reducing margins and relying on their commercial
banking, asset management, insurance and other financial services activities. This has resulted in pricing pressurein our investment banking and trading businesses and could result in pricing pressure in other areas of ourbusinesses. We have also competed, and expect to compete, with other financial institutions which commit
capital to businesses or transactions for market share in investment banking activities. In particular, corporateclients may seek loans or commitments in connection with investment banking mandates and other assignments.
Moreover, the trend toward consolidation and convergence has significantly increased the capital base andgeographic reach of some of our competitors, hastening the globalization of the securities and financial services
markets. To accommodate this trend, we will have to compete successfully with financial institutions that arelarge and well-capitalized, and that may have a stronger local presence and longer operating history outside
Japan.
Regulation
Japan
Regulation of the Securities Industry and Securities Companies. Pursuant to the Financial Instruments andExchange Act (“FIEA”), the Prime Minister of Japan has the authority to supervise and regulate the securities
industry and securities companies, and delegates its authority to the Commissioner of the FSA. The Company, asa holding company of a securities company, as well as subsidiaries such as NSC and Nomura Financial
Products & Services, Inc. (“NFPS”), are subject to such supervision and regulation by the FSA. The
Commissioner of the FSA delegates certain authority to the Director General of Local Finance Bureaus to inspect
local securities companies and branches. Furthermore, the Securities and Exchange Surveillance Commission, an
external agency of the FSA which is independent from the Agency’s other bureaus, is vested with authority to
conduct day-to-day monitoring of the securities markets and to investigate irregular activities that hinder the fairtrading of securities, including inspection of securities companies. Securities companies are also subject to therules and regulations of the Japanese stock exchanges and the Japan Securities Dealers Association, a selfregulatory organization of the securities industry.
To enhance investor protection, each Japanese securities company is required to segregate client assets andto hold membership in an Investor Protection Fund approved by the government under the FIEA. The Investor
Protection Fund is funded through assessments on its securities company members. In the event of failure of asecurities company that is a member of the fund, the Investor Protection Fund provides protection of up to¥10 million per client. The Investor Protection Fund covers claims related to securities deposited by clients withthe failed securities company and certain other client claims.
Regulation of Other Financial Services. Securities companies are not permitted to conduct banking or otherfinancial services directly, except for those which are registered as money lenders and engaged in money lending
business under the Money Lending Business Act or which hold permission to act as bank agents and conduct
banking agency activities under the Banking Law. Among the subsidiaries of the Company in Japan, NSC is asecurities company that is also registered as a money lender and holds permission to act as a bank agent. Anothersubsidiary of the Company, The Nomura Trust & Banking holds a banking license and trust business license.
Financial Instruments and Exchange Act. The FIEA widely regulates financial products and services inJapan under the defined terms “financial instruments” and “financial instruments trading business”. It regulates
most aspects of securities transactions and the securities industry, including public offerings, private placements
and secondary trading of securities, on-going disclosure by securities issuers, tender offers for securities,
organization and operation of securities exchanges and self-regulatory associations, and registration of securities
companies. In addition, to enhance fairness and transparency in the financial markets and to protect investors, the
FIEA provides for, among other things, penalties for misrepresentations in disclosure documents and unfair
trading, strict reporting obligations for large shareholders and corporate information disclosure systems,
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including annual and quarterly report systems, submission of confirmation certificates concerning thedescriptions in securities reports, and internal controls over financial reporting.
The FIEA also provides for corporate group regulations on securities companies the size of which exceeds
specified parameters (Tokubetsu Kinyu Shouhin Torihiki Gyosha, “Special Financial Instruments Firm”) and on
certain parent companies designated by the Prime Minister (Shitei Oyagaisha, “Designated Parent Companies”)
and their subsidiaries (together, the “Designated Parent Company Group”). The FIEA aims to regulate andstrengthen business management systems, compliance systems and risk management systems to ensure theprotection of investors. The FIEA and its related guidelines also provide reporting requirements to the FSA on
the Designated Parent Company Group’s business and capital adequacy ratios, enhanced public disclosures aswell as restrictions on compensation all of which are designed to reduce excessive risk-taking by executives andemployees of a Designated Parent Company Group. We were designated as the Designated Parent Company of
NSC in April 2011 and were designated as the Designated Parent Company of NFPS in December 2013. As the
Designated Parent Company and the final parent company within a corporate group (Saishu Shitei Oyagaisha, “aFinal Designated Parent Company”), we are subject to these requirements. A violation of the FIEA may result invarious administrative sanctions, including the revocation of registration or license, the suspension of business or
an order to discharge any director or executive officer who has failed to comply with the FIEA.
Orderly Resolution Regime. On March 6, 2014, amendments to the FIEA and the Deposit Insurance Act,
which included the establishment of an “Orderly Resolution Regime for Financial Institutions” to prevent afinancial crisis that may spread across financial markets and may seriously impact the real economy, took effect.
Under the Orderly Resolution Regime, the Financial Crisis Response Council, chaired by the Prime Minister,
will take measures such as providing liquidity to ensure the performance of obligations for critical market
transactions where it is considered necessary to prevent severe market disruption. Such measures will be fundedby the financial industry, except in special cases where the government will provide financial support.
TLAC. In April 2016, the FSA published its policy describing its approach and framework for the
introduction of the TLAC requirements in Japan applicable to Japanese G-SIBs and, in April 2018, released
revisions to such policy that extended the coverage of the TLAC requirements in Japan not only to Japanese
G-SIBs but also to Japanese D-SIBs that are deemed (i) of particular need for a cross-border resolution
arrangement and (ii) of particular systemic significance to Japanese financial system if they fail. Based on therevised policy, in March 2019, the FSA finally published the notices and guidelines of TLAC regulations inJapan (including TLAC holding regulations). Although Nomura is not identified as a G-SIB as of the date of thisannual report, Nomura is subject to the TLAC regulations in Japan, and is required to meet a minimum External
TLAC requirement of holding TLAC in an amount at least 16% of our consolidated risk-weighted assets as fromMarch 31, 2021 and at least 18% as from March 31, 2024 as well as at least 6% of the applicable Basel III
leverage ratio denominator from March 31, 2021 and at least 6.75% from March 31, 2024 (which 6.75% will be
increased, pursuant to the recent amendment to the TLAC regulations in Japan, to 7.1% from April 1, 2024).
Regulatory Changes. On May 31, 2019, a bill to amend the FIEA and the Payment Services Act, etc. waspassed by the Diet of Japan. The amendment to the FIEA includes establishing the concept of “electronicallyrecorded transferable rights” (denshi kiroku iten kenri, “ERTRs”) and treating ERTRs as Securities defined in
Paragraph 1 of the FIEA. As a result, ERTRs are subject to requirements of the Disclosure of Corporate Affairs
and Other Related Matters, and regulations for Financial Instruments Business Operators Engaged in Type I
Financial Instruments Business apply to institutions dealing in ERTRs. Additionally, “crypto assets” (“angou
shisan”) are now included in the definition of “Financial Instruments”, and derivatives transactions related to
crypto assets are subject to the provisions of the FIEA. As a result of the amendment, certain special provisions
concerning the crypto asset-related business have been introduced, whereby Financial Instruments Business
Operators, etc. must explain the nature of crypto assets and must not make any representation that may mislead
their customers about the nature of crypto assets. Moreover, regulations governing unfair acts in respect of crypto
asset and crypto asset derivative transactions are introduced. The amendment became effective on May 1, 2020.

29

Overseas
Our overseas offices and subsidiaries are also subject to various laws, rules and regulations applicable in the
countries where they conduct their operations, including, but not limited to those promulgated and enforced by
the Securities and Exchange Commission (“SEC”), the Commodity Futures Trading Commission (“CFTC”), theU.S. Treasury, the NYSE, the Chicago Mercantile Exchange and other exchanges and/or clearinghouses, theFinancial Industry Regulatory Authority (“FINRA”) (a self-regulatory organization (“SRO”) for the U.S.
securities industry), the National Futures Association (“NFA”) (an SRO for the U.S. derivatives industry) in the
U.S.; by the Prudential Regulation Authority (“U.K. PRA”) and the Financial Conduct Authority (“U.K. FCA”)
in the U.K; and by a number of EU regulators including Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin),
Autorité de Contrôle Prudentiel et de Résolution (ACPR) and Autorité des Marches Financiers (AMF). We arealso subject to international money laundering and related regulations in various countries. For example, theUSA PATRIOT Act of 2001 contains measures to prevent, detect and prosecute terrorism and international
money laundering by imposing significant compliance and due diligence obligations and creating crimes andpenalties. Failure to comply with such laws, rules or regulations could result in fines, suspension or expulsion,
which could materially and adversely affect us.
Regulation in the United States
In the U.S., the SEC is the federal agency responsible for the administration of the federal securities laws,
and the CFTC is the federal agency responsible for the administration of laws relating to commodity futures,commodity options and swaps industry. In addition, FINRA and the NFA are SROs that are actively involved in
the regulation of financial services businesses (securities businesses in the case of FINRA and commodities/
futures businesses in the case of the NFA). In addition to federal regulation, we are subject to state securities
regulations in each state and U.S. territory in which we conduct securities or investment advisory activities. The
SEC, FINRA, CFTC, NFA and state securities regulators conduct periodic examinations of broker-dealers,
investment advisors, futures commission merchants (“FCMs”), swap dealers and security-based swap (“SBS”)
dealers (“SBS dealers”). Financial services businesses are also subject to regulation and examination by state
securities regulators and, in some cases, investigations and reviews by attorneys general in those states in which
they do business. In addition, broker-dealers, investment advisors, FCMs, swap dealers and SBS dealers mustalso comply with the rules and regulation of clearing houses, exchanges, swap execution facilities and trading
platforms of which they are a member.
Broker-dealers are subject to SEC, FINRA and state securities regulations that cover all aspects of the
securities business, including sales and trading methods, publication of research reports, trade practices, among
broker-dealers, risk management, use and safekeeping of customers’ funds and securities, capital structure andrequirements, anti-money laundering efforts, recordkeeping and the conduct of broker-dealer personnel including
officers and employees. Our U.S. subsidiaries Nomura Securities International, Inc. (“NSI”) and Instinet, LLC(“ILLC”) are registered as broker-dealers with the SEC. U.S. subsidiary Nomura Global Financial Products Inc.
(“NGFP”) is an “OTC derivatives dealer,” which is a class of broker-dealer exempt from certain broker-dealer
requirements, including membership in an SRO, regular broker-dealer margin rules and application of the
Securities Investor Protection Act of 1970, but are subject to special requirements, including limitations on thescope of their securities activities, specified internal risk management control systems, recordkeeping obligations
and reporting responsibilities. OTC derivatives dealers are also subject to alternative net capital treatment.
Registered investment advisors are subject to, among other requirements, SEC regulations concerningmarketing, transactions with affiliates, custody of client assets, disclosures to clients, conflict of interest, insider
trading and recordkeeping. Investment advisors that are also registered as commodity trading advisors orcommodity pool operators are also subject to regulation by the CFTC and the NFA. Certain of our subsidiaries,
including NSI as well as Nomura Asset Management Co., Ltd., Nomura Asset Management U.S.A. Inc. and otherasset management subsidiaries, are registered as investment advisors with the SEC.
FCMs, introducing brokers and swap dealers that engage in commodity options, futures or swap transactions
are subject to regulation by the CFTC and the NFA. CFTC rules require registration of swap dealers, mandatory30

clearing and execution of certain default swaps through regulated clearing houses and execution facilities, realtime public reporting and adherence to business conduct standards for all in-scope swaps. A number of theserequirements, particularly those regarding recordkeeping and reporting, also apply to transactions that do not
involve a registered swap dealer. CFTC rules establishing capital requirements for swap dealers that are notsubject to the capital rules of a prudential regulator, such as the FRB, became effective in October 2021. The
CFTC has also adopted financial reporting requirements for covered swap entities and amended existing capitalrules for CFTC-registered FCMs to provide explicit capital requirements for proprietary positions in swaps andsecurity-based swaps that are not cleared by a clearing organization. Swap dealers that are not subject to thejurisdiction of a Prudential Regulator are subject to the margin rules issued by the CFTC (which covers non-bankswap dealers, such as our subsidiaries). The rules for variation margin have become effective, and those for
initial margin were phased in through September 2022, based on certain activity levels of the swap dealer and therelevant counterparty. Inter-affiliate transactions under the CFTC margin rules are generally exempt from initial
margin requirements under certain conditions. NSI is registered as an FCM with the CFTC. NGFP and Nomura
International plc, a U.K. subsidiary, are registered as swap dealers with the CFTC. ILLC is registered as an
introducing broker with the CFTC.
SEC rules constituting its SBS regulatory regime, which set registration and other compliance dates for SBS
dealers and major SBS participants, generally came into effect by November 1, 2021. Under these rules, SBS
dealers are subject to regulation by the SEC, including (i) capital, margin and segregation requirements;(ii) recordkeeping, financial reporting and notification requirements; (iii) business conduct standards;(iv) regulatory and public trade reporting; and (v) the application of risk mitigation techniques to uncleared
portfolios of SBSs. In the fourth quarter of 2021, certain of our subsidiaries registered with the SEC as SBS
dealers and became subject to the SEC’s regulations regarding SBSs. NGFP is registered as an SBS dealer with
the SEC, and Nomura International plc is registered as an SBS dealer with the SEC.
The CFTC and the SEC have adopted rules relating to cross-border regulation of swaps and SBSs. The
CFTC and the SEC have entered into agreements with certain non-U.S. regulators regarding the cross-borderregulation of derivatives and the mutual recognition of certain cross-border execution facilities and certain
clearing houses, and have approved substituted compliance with certain non-U.S. regulations related to certain
capital, margin, recordkeeping, financial reporting and business conduct requirements.
Additional legislation or rules promulgated by the SEC, FINRA, CFTC, NFA, other SROs and state
securities regulators, or changes in such legislation or rules or in the interpretation or enforcement of existinglegislation or rules may directly affect our operations and profitability. The SEC, CFTC, FINRA, NFA, state
securities regulators and state attorneys general may conduct administrative proceedings or initiate civil litigationthat can result in adverse consequences for us, our subsidiaries and our and their respective officers andemployees (including, without limitation, injunctions, censures, fines, suspensions, directives that impact
business operations (including proposed expansions), membership expulsions, or revocations of licenses andregistrations).
Further, The Foreign Account Tax Compliance Act (“FATCA”), which was enacted in 2010, requires
foreign financial institutions (“FFIs”) to report to the U.S. Internal Revenue Service information about financial
accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownershipinterest. As a result, Nomura is subject to certain reporting requirements consistent with a mutual agreement
between Japanese governmental authorities and the U.S. Treasury Department.
In October 2022, the SEC adopted a final rule requiring securities exchanges to adopt listing standards
mandating, in the case of a restatement, the recovery or “clawback” of excess incentive-based compensation paid
to current or former executive officers and requiring listed issuers to disclose any recovery analysis where
recovery is triggered by a restatement. Nomura will be required to adopt a clawback policy compliant with the
NYSE listing standard implementing such rules within 60 days of the effectiveness of the listing standard, whichis scheduled to occur in October 2023.
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Proposed Changes to U.S. Regulation
In June 2016, the SEC approved amendments to FINRA Rule 4210, which require FINRA member brokerdealers to set risk limits on each counterparty transacting in specified forward-settling agency mortgage-backed
securities (“covered agency transactions”) as of December 2016, and to collect variation margin and/or
maintenance margin from certain counterparties transacting in covered agency transactions as of June 2018. A
failure to collect required margin in a timely manner (T+1) results in an obligation for the FINRA member
broker-dealer to take a capital charge, and ultimately (T+5) to liquidate the customer’s position in order to satisfy
the margin deficiency. The effectiveness of the Rule 4210 margin requirements has been delayed a number oftimes. Most recently, on February 24, 2023 FINRA filed a Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Extend the Implementation Date of Certain Amendments to FINRA Rule 4210 toextend the date of effectiveness to October 25, 2023. On March 7, 2023 the SEC waived the 30 days waiting
period and the October 25, 2023 date went into effect immediately.
In January 2021, CFTC adopted rules that limit the size of positions in physical commodity derivatives thatcan be held by any entity, or any group of affiliates or other parties trading under common ownership or control,
or trading in coordination with each other. Swap dealers may currently claim an exemption from the position
limits for the bona fide hedging of swap-related risks, but this exemption will be eliminated in 2023. The CFTC
position limits apply to futures on specified physical commodities and options on such futures, and these limits
apply to both physically and cash settled positions. In addition, in 2023, the position limit rules will become
applicable to swaps that are economically equivalent to such futures and options. The position limit rules initially
impose limits in the spot month only (i.e., during the delivery period for the physical commodities, which istypically a period of several days). CFTC spot and non- spot month limits will continue to apply to futures oncertain legacy agricultural commodities, and it is possible that non-spot month limits will at some point be
adopted for futures and swaps on other physical commodities.
In November 2021, the SEC published proposed Exchange Act Rule 10c-1, which would require lenders of
securities to provide the material terms of securities lending transactions to a registered national securities
association, such as the Financial Industry Regulatory Authority. The registered national securities association
would then make the material terms of the securities lending transaction available to the public.
In December 2021, the SEC proposed rules to prevent fraud, manipulation and deception in connection withsecurity-based swaps, to prevent undue influence over the chief compliance officer (CCO) of SBS dealers andmajor SBS swap participants, and to require any person with a large security-based swap position to publicly
report certain information related to the position.
On March 21, 2022 the SEC proposed a comprehensive climate disclosure regime for public companies.
The proposal would apply to both domestic company and foreign private registrants and would require them toprovide certain climate-related information in their registration statements and annual reports. Registrants would
need to, among other things, include information about climate-related risks that have had or would likely have amaterial impact on their business and consolidated financial statements, strategy, business models and outlook.
Registrants would need to include information addressing their plans to manage climate-related risk within theirrisk management processes. Registrants would also need to disclose information about their own greenhouse gas
emissions and, in some cases, upstream and downstream emissions along the registrant’s entire value chain. The
proposal would dramatically increase climate-risk-related information available to investors but would also, if
adopted in its current proposed form, likely increase the cost, complexity, and liability risks associated withpublic reporting.
In December 2022, the SEC issued four proposals to reform the U.S. equity market structure. The SEC
proposed establishing a broker-dealer best execution standard, which would require broker-dealers to use
reasonable diligence to ascertain the best market for a customer order so that the resultant price to the customer is
as favorable as possible under prevailing market conditions. The best execution standard applies to all securities
and supplements, but does not replace, the existing FINRA best execution rules. The SEC also proposed, among32

other things, to require that individual investor orders routed through broker-dealers be exposed to order-by-ordercompetition in qualified auctions; to update the minimum pricing increments, with variable price increments
based on the trading characteristics of stocks; and to revise and expand reporting and disclosure requirements
relating to execution quality.
In January 2023, the SEC proposed a rule that would prohibit participants involved in the creation of assetbacked securities, including any underwriter, placement agent, initial purchaser or sponsor of an asset-backed
security (or any affiliate or subsidiary), from engaging in any transaction that would involve or result in amaterial conflict of interest between the securitization participant and an investor in an asset-backed security,
including reducing its exposure to the asset-backed securities, subject to certain exceptions.
Regulation in the U.K. and Europe
As part of global efforts to establish a framework to improve authorities’ capacity to resolve failing SIFIs,
the U.K. implemented the EU Bank Recovery and Resolution Directive (“BRRD”), which was published onJune 12, 2014. The BRRD also aims to implement FSB recommendations on recovery and resolution regimes forfinancial institutions. The BRRD applies to banks and investment firms operating in EU member states,
including EU branches and subsidiaries of third country firms. It includes requirements for the preparation ofrecovery and resolution plans (“RRPs”) by institutions and regulators. It also creates various powers for EU
regulators to intervene to resolve institutions at risk of failure, including the ability to sell or transfer all or part ofan institution and the introduction of a debt write down or bail-in tool.
As part of the bail-in rules, firms will be required to maintain capital resources sufficient to meet the
stipulated minimum requirement for eligible liabilities (“MREL”). The MREL overlaps with the global capital
standards on total loss absorbing capacity (“TLAC”) for G-SIBs issued by the FSB on November 9, 2015. As
Nomura Group has adopted a single point of entry resolution strategy, European subsidiaries are subject tointernal MREL. The internal MREL became applicable in the U.K. for all U.K. incorporated institutions fromJanuary 1, 2019 for firms whose failure would have a significant impact on the U.K. financial system and forcertain overseas firms where the Bank of England (“BoE”) would support a home resolution authority in carryingout a cross-border resolution. From January 1, 2020, Nomura is required to hold internal MREL resources above
the regulatory capital requirements for the material subsidiaries in the U.K., identified as Nomura Europe
Holdings plc (“NEHS”) on a sub-consolidated basis and NIP.
In July 2019, the BoE and U.K. PRA published a policy statement on the Resolvability Assessment
Framework (“RAF”). The proposals for the RAF bring together existing policies such as MREL and Operational
Continuity in Resolution (“OCIR”) as well as other new resolution policies in order to follow the resolution
principles set out by the FSB. Under the policy, it is expected firms perform an assessment of their preparations
for resolution and the BoE provide a public statement concerning resolvability of each firm. The BoE and U.K.
PRA may consider, in consultation with Financial Services Agency (“FSA”), apply some or all of therequirements set out in the policy statement to NEHS.
In May 2022, U.K. PRA published a policy statement, with accompanying supervisory statements on
Trading Activity Wind-down (“TWD”). The statement sets out the requirements for firms to have capabilities
that can be utilized for a full or partial wind-down of their trading activities, either as part of their recovery or
post-resolution restructuring. NEHS, as an in-scope firm, is expected to meet the policy requirements by 3 March2025.
EU banks and investment firms including those located in the U.K. have been subject to the current
prudential regulatory capital regime since the introduction of the Capital Requirements Regulation and Capital
Requirements Directive (collectively, “CRD IV”) in January 2014. The aim of CRD IV was to strengthen theresilience of the EU banking sector so it would be better placed to absorb economic shocks while also ensuringthat banks continued to finance economic activity and growth. CRD IV sets out regulations for minimum capitalrequirements for banks and investment firms and also introduced new capital and liquidity buffers.
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In November 2016 the European Commission proposed amendments to this regulation in a “CRRII”
package of reforms. Together with the updates to the Bank Recovery and Resolution Directive (“BRRD II”) andSingle Resolution Mechanism Regulation (“SRMR”) this package is an important step towards the completion of
the European post-crisis regulatory reforms and implements some of the outstanding global reforms agreed by
the Basel Committee and the FSB. The EU views the amendments as essential to making its financial system
more stable and resilient, and the financial institutions more resolvable. These updates entered into force in June2019 with the majority of changes being introduced two years later in June 2021.
Among other things these proposed changes include the introduction of binding minimum leverage and net
stable funding ratios, changes to the calculations for counterparty credit risk of derivatives, a tightening of large
exposure limits, introduction of new reporting requirements for market risk and the introduction of a new EUintermediate parent undertaking requirement.
Subsequent to the finalization of work on the CRRII package in October 2021 the EU introduced a first draftof proposals to introduce a “CRRIII/CRDVI” package of reforms to implement all outstanding elements of theBasel 3.1 framework including changes to the calculations for Operational Risk, CVA, Credit Risk, FRTB capitalrequirements and the introduction of an output floor to modelled calculations. The draft rules also include
proposals to strengthen the resilience of the banking sector to environmental, social and governance (“ESG”)
risks and to enhance the strength of supervision within the EU to better protect financial stability. The proposals
are currently subject to the trilogue negotiation process before finalization and are currently planned for
implementation in Jan 2025.
Since Brexit, the EU CRR and subsequent amendments are no longer applicable in the U.K. HM Treasury
and as a result HM Treasury and U.K. PRA published updated rules for implementation of similar reforms to the
CRRII in the U.K. which were implemented from Jan 2022. HM Treasury and U.K. PRA have further publishedconsultations at the end of 2022 to implement the final elements of the Basel 3.1 framework, broadly equivalent
to those in the EU CRRIII package, with a proposed implementation date of Jan 2025.
The majority of the new rules under the revised MiFID II, which is split into the Markets in Financial
Instruments Directive (“MiFID”) and the Markets in Financial Instruments Regulation (“MiFIR”) took effectfrom January 3, 2018. The legislation introduced wide-reaching changes to markets, including the extension ofmarket transparency rules into non-equities and potentially reducing the scope of the OTC derivative market bymandating the clearing of standardized OTC transactions through central clearing counterparties and their trading
through regulated trading venues. The new framework introduced a market structure to ensure that trading,wherever appropriate, takes place on regulated platforms. It introduced rules on high frequency trading with aview to improving the transparency and oversight of financial markets. The revised MiFID also aimed tostrengthen the protection of investors by introducing more robust organizational and conduct requirements andby strengthening the role of management bodies. The new framework also increased the role and supervisory
powers of regulators and established powers to prohibit or restrict the marketing and distribution of certain
products in well-defined circumstances. A harmonized regime for granting firms from third countries access to
EU professional markets, based on an equivalence assessment of third-country jurisdictions by the Commission,
was also introduced.
Certain amendments to support economic recovery from the COVID-19 pandemic, including via relief fromadministrative requirements on firms, has been published in the EU Official Journal on February 26, 2021
(MiFID ‘Quick-Fix’). EU Member States were required to transpose the quick fix amendments into their nationalframeworks by November 28, 2021 and apply them by February 28, 2022. Alongside this on November 25, 2021,
the EU Commission published its legislative proposal for a review of MiFID II/MiFIR. Key proposals include
refinements to the scope of the Securities Trading and Derivatives Trading Obligations, adjustments to thetransparency regime and reporting requirements and considerations around establishment of a Consolidated
Tape. The final text is expected to be published during 2023. Since Brexit, these amendments are not applicablein the U.K. and U.K. FCA has consulted on proposed changes to the conduct and organizational rules under the34

U.K. MiFID, specifically relating to research and best execution reporting. On November 30, 2021 U.K. FCA
published the Policy Statement (“PS”) on changes to U.K. MiFID’s conduct and organizational requirements.
The PS sets out changes to best execution reporting requirements and research inducement rules. Effective from
December 1 2021, U.K. firms are no longer required to produce best execution reports. In addition, fromMarch 1, 2022, asset managers and research firms will be able to exercise the options on exempting inducement
rules on research. This means U.K. firms will be able to provide research on FICC instruments to clients without
it being subject to un-bundling.
On July 1, 2021 the U.K. HM Treasury launched a Wholesale Market Review (“WMR”) Consultation. The
consultation is part of the Government’s commitment to improving the competitiveness of the U.K. as a hub for
capital markets, and is a central part of the Government’s post-Brexit strategy for financial services. It has a wide
ranging focus, including the regulatory framework for trading venues, systematic internalizers, market data, andfixed income, equity, derivative and commodity markets. It proposes a number of amendments to the U.K.’s
onshored MiFID regime and asks for industry input on a range of other topics.
As part of the changes foreseen in the WMR, U.K. FCA launched public consultations in 2022 in relation toequity markets and trading venue perimeter with further consultations expected to be launched in the course of2023 specifically in relation to U.K. consolidated tape, commodities (including position limits and ancillary
activities) and on fixed income and derivatives.
On July 20, 2022 the U.K. Government introduced the Financial Services and Market Bill 2022-23 which
gives the U.K. the opportunity to create a more competitive financial services sector post-Brexit, while
preserving high regulatory standards tailored to its needs. Among other things, it includes changes to theframework within which financial services regulators operate and the reform of the regime for wholesale capital
markets. In addition, it gives broad powers to HM Treasury to make regulations saving and restating any revokedlegislation (with or without amendments) and makes some immediate changes to retained EU law. The Bill will
have to pass through the Parliamentary Houses before it is finalized with royal assent, which is anticipated tooccur in the second half of 2023.
On July 27, 2022, the U.K. FCA published a policy statement (PS22/9) and finalized guidance (FG22/5) ona new consumer duty for financial services firms. The new rules set higher standards of consumer protection withthe duty applying irrespective of whether there is a direct relationship with the retail clients therefore bringing
in-scope wholesale firms that can determine or ‘materially influence’ retail customer outcomes. Due to themainly wholesale activities of Nomura’s U.K. entities, where Nomura does not face Retail customers directly andis not a Retail market business, as well as the existing Product Governance frameworks in the firm, the effect of
the introduction of the new consumer duty is expected to be limited.
The European Market Infrastructure Regulation (“EMIR”) became effective on August 16, 2012, andapplies to any entity established in the EU that is a legal counterparty to a derivative contract, even when tradingwith non-EU firms. EMIR was created with the intention of stabilizing OTC markets found within EU member
states. Although the majority of EMIR regulations have already been implemented, on May 28, 2019, Regulation(EU) 2019/834 (EMIR REFIT) was published in the EU’s Official Journal, with the aim of amending EMIR tomake some of its requirements simpler and more proportionate, particularly for non-financial counterparties(“NFCs”), address compliance costs, transparency issues and insufficient access to clearing for certain
counterparties. With a few exceptions, the majority of the provisions in the Regulation entered into force onJune 17, 2019.
EMIR was transposed into U.K. domestic law by means of the European Union (Withdrawal) Act 2018 (asamended), subject to certain transitional arrangements. Phase 6 represents the final stage of the phase-in of therules and applied from September 1, 2022.
On October 7, 2022, various EMIR REFIT RTS (regulatory technical standards) and ITS (implementing
technical standards) were published in the EU Official Journal. Among other things, they include important35

information regarding data reporting (procedure, formats, frequency, methods, etc.). They entered into force on
October 27, 2022 at which point the 18 month implementation period will commence. This will give a reporting
start date of April 29, 2024 for the EMIR REFIT rules.
Similar rules were published by the U.K. FCA and BoE on February 24, 2023 through a joint policy
statement on changes to reporting requirements, procedures for data quality and registration of trade Repositories
under the U.K. EMIR. It sets out the final amendments to technical standards and new rules for trade repositories
in relation to the derivatives reporting framework under the U.K. EMIR. The requirements will come into effecton September 30, 2024, except for certain amendments which relate to the format and details of applications forregistration of trade repositories, which come into force immediately.
On December 20, 2022, ESMA published its final report on guidelines for reporting under EMIR. The
guidelines are intended to clarify the legal provisions on reporting and data management under the amended
EMIR rules and to provide practical guidance on their implementation and are applicable from April 29, 2024.
On December 12, 2022 the EU Commission published its proposal on EMIR review, together with a
Communication on a stronger EU clearing system. The core of the proposal includes ways to enhance andimprove the attractiveness of the EU’s clearing space in view of reducing reliance on U.K. firms. Among otherthings, the existing third country equivalence regime for third countries benefiting from an exemption of intragroup transactions for the purpose of the clearing exemption and margining is replaced by a new regime thatwould grant an automatic exemption for jurisdictions that are not deemed high-risk jurisdictions for AML
purposes.
On February 13, 2023 the EU Commission’s extension of clearing and margining exemptions for intragrouptransactions until June 30, 2025 was made official thorough the publication of respective amending RTS in the
EU Official Journal.
On December 15, 2022, in the U.K., U.K. FCA and U.K. PRA jointly published a policy statement on
margin requirements for non-centrally cleared derivatives. The policy statement makes amendments to thebinding technical standards which supplement U.K. EMIR, namely by updating the list of eligible collateral toinclude funds from all third-countries that meet a set of principles and that only invest in otherwise eligible
government securities and cash and by extending the transition provision for European Economic Area
undertakings for collective investment in transferable securities by three months, i.e., until March 31, 2023. The
types of collateral that are eligible are broadly consistent between U.K. and EU Uncleared Margin Rules (UMR),
but there are now some divergences in relation to shares or units in collective investment schemes. EU UMR
allow shares or units in UCITS as a form of eligible collateral. However, shares or units in a U.K. UCITS are nolonger “UCITS” for these purposes and so are not eligible. U.K. UMR allow shares or units in U.K. UCITS as aform of eligible collateral, which excludes EEA UCITS. The on-shoring process introduced a transitional regime
that temporarily allowed EEA UCITS, which has been extended until March 31, 2023.
NOTE: The FCA and the PRA amended U.K. UMR on December 12, 2022 to expand the range of eligible
collateral types to include units and shares in non-U.K. funds that satisfy certain conditions. These conditions
include:(i) “the fund must be subject to supervision and regulation at least equivalent to that applicable to a U.K.
UCITS (importantly, this “equivalence” assessment must be performed by each counterparty as part of its
periodic review of its collateral arrangements; it will not be assessed via equivalence decisions);(ii) the units or shares must have a daily public price quote; and(iii) the fund is limited to investing in cash, cash-equivalent instruments and government (and similar) debt
securities.
36

The fund can also invest in other funds which meet the above conditions. Once the transitional regime
expires, EEA UCITS will need to meet these conditions to continue to be eligible as collateral under U.K. UMR.
On January 12, 2016, the Securities Financing Transactions Regulation (“SFTR”), which forms part of the
EU’s package of legislation targeted at reforming shadow banking and aims to improve transparency in the
securities financing transactions (“SFTs”) market, came into force subject to a range of transitional provisions
over a number of years. On April 11, 2019, the final regulatory technical standards entered into force and MiFID
firms were due to commence their reporting one year later on April 11, 2020. However, due to the COVID-19
pandemic, the reporting under the SFTR was extended until July 13, 2020. Other reporting counterparties werephased in over the following months, ending with NFCs on January 11, 2021.
On November 25, 2020, U.K. FCA issued a statement explaining what trade repositories, and the U.K.
counterparties that use them, should do to ensure they are compliant with the U.K. SFTR reporting obligations
from the end of the Brexit transition period. All U.K. SFTR counterparties that enter into securities financing
transactions that are in scope of the U.K. SFTR are required to report details of those transactions to an
FCA-registered, or recognised, trade repositories.
On September 17, 2014, the Central Securities Depositories Regulation (“CSDR”) came into force, in the
EU. It aims to harmonise certain aspects of the settlement cycle and settlement discipline and to provide a set ofcommon requirements for Central Securities Depositories (“CSDs”) operating securities settlement systems
across the EU.
On March 16, 2022 the EU Commission published a draft Regulation amending the CSDR along with FAQs
and an impact assessment on its proposal. Among other things, the EU Commission is looking to improve thepassporting regime, banking type ancillary services, the oversight of third-country CSDs and settlement
discipline (by proposing to improve the mandatory buy-in regime and refine its scope).
On June 13, 2022, ESMA published a final report on amending the RTS on settlement discipline byproposing to postpone the application of CSDR mandatory buy-in regime for three years. On July 6, 2022, the
EU Commission decided to endorse ESMA’s draft RTS. As a result, the Commission Delegated Regulationsuspends the application of the provisions relating to the mandatory buy-in regime of the RTS on settlement
discipline for three years from the date of entry into force of the Commission Delegated Regulation. The
Delegated Regulation also contains provisions of former Article 15(1) of the Short Selling Regulation in the RTS
on settlement discipline, to be applied for the duration of the deferral.
On July 6, 2022 the EU Commission adopted the delegated act suspending the application of the provisions
relating to the mandatory buy-in regime of the RTS on settlement discipline for three years from the date of entry
into force. The declared intention of the EU is to relocate Euro derivatives clearing from London to the EU.
In the U.K., on June 23, 2020, the Government confirmed that it will not implement the CSDR Settlement
Discipline. U.K. firms will continue to apply the existing industry-led framework.
On February 8, 2022, the EU Commission announced a decision to extend equivalence for U.K. Central
Counterparties (“CCPs”) until June 30, 2025. The equivalence will apply from July 1, 2022. At the same time,the EU Commission launched a targeted public consultation and a call for evidence on ways to expand central
clearing activities in the EU and improve the attractiveness of EU CCPs in order to reduce the EU’s overrelianceon systemic third-country CCPs.
As mentioned above on December 12, 2022 the EU Commission published its proposal on EMIR review,
together with a Communication on a stronger EU clearing system. The core of the proposal includes ways toenhance and improve the attractiveness of the EU’s clearing space in view of reducing relying on U.K. CCPs.

37

On October 2018 the 6th Money Laundering Directive (“6MLD”) was approved by the European Parliamentand Council. EU member states had until December 3, 2020 to implement this upcoming Directive into nationallaw, whilst regulated entities had a deadline of June 3, 2021.The U.K. has decided to opt out of complying withthis further AML Directive as the Government assesses that the domestic legislation is already largely compliant
with the Directive’s measures. The 6MLD complements the criminal aspects of the 5MLD and has been
introduced to focus on the definition of these crimes and their sanctions. It also gives financial institutions more
responsibility in the fight against financial crime and aims to promote the collaboration of member states whentackling money laundering.
In the U.K., on June 15, 2022, HM Treasury published the outcome of its consultation on amendments to the
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 andpublished the draft Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022. Amongother things, it will expand the intelligence and information-sharing gateway; introduce a clear legal gateway for
AML (anti-money laundering)/CTF (counter-terrorist financing) supervisors to access; view and consider thequality of the content of suspicious activity reports (“SARs”) submitted to them, provided they are necessary to
fulfil supervisory functions, and allow U.K. FCA to publish notices where it has decided to not register anapplicant.
The Senior Managers and Certification Regime (“SM&CR”) came into force on March 7, 2016 with the aimof reducing the risk of harm to consumers and strengthening market integrity by making firms, and individuals
within those firms, more accountable for their conduct and competence. In July 2018, the U.K. FCA and U.K.
PRA published near-final rules extending SM&CR to cover all financial services firms in the U.K. to apply from
December 9, 2019. On March 8, 2019, the U.K. FCA announced its final rules on its proposed Directory – a new
public register that will enable consumers, firms and other stakeholders to find information on key individuals
working in financial services who are not otherwise appointed and publicly registered under the SM&CR. Firms
were to submit data on Directory individuals in December 2019, and the Directory was expected to go live inMarch 2020. However, due to the COVID-19 pandemic, the implementation date of the directory of certified andassessed persons had been delayed and the Directory is now live since March 31, 2021.
On March 30, 2023 the U.K. HM Treasury published a Call for Evidence (CfE) on SM&CR, as part of the
Edinburgh Reforms. Firms have raised some concerns over certain aspects of the regime, on topics including thecompliance requirements for authorizing the appointment of new Senior Managers, the differing levels of
scrutiny applied to different firms, and the interaction of the SM&CR with other regulatory regimes.
The CfE has been published to ensure that HM Treasury, U.K. FCA and U.K. PRA can build a joint
evidence base upon which to consider future reforms to the regime.
U.K. FCA and U.K. PRA have issued, in parallel, a Discussion Paper. Each organization will focus on their
particular area of responsibility, with HM Treasury considering legislative aspects, while U.K. FCA and PRA
consider operational aspects and rules. The Discussion Paper together with HM Treasury’s CfE, is the first full
review of the SMCR. While there have been other evaluations in the past, these were more limited in scope. The
consultations are open until June 1, 2023.
Since 2012, the European Commission sought to establish a modern and harmonized data protection
framework across the EU to replace the existing Directive. On May 4, 2016, the official texts of the new EU
General Data Protection Regulation (“GDPR”) were published in the EU Official Journal in all the official
languages and it came into force on May 25, 2016. GDPR took effect across the EU member states on May 25,
2018. GDPR included a number of important changes to existing data protection legislation including new
obligations on data processors, restrictions on the transfer of personal data outside the EEA and the introductionof new concepts such as “accountability” (and related record-keeping), the “right to be forgotten” and arequirement for data breach notifications to the relevant Regulators. Enforcement of GDPR is carried out by bothnational regulators (for the U.K., the Information Commissioner) and the European Commission, and the38

regulators also have the power to impose greater fines for any breaches of the data protection requirements of up
to 4% of a firm’s global turnover.
The EU Benchmark Regulation (“BMR”) entered into force on June 30, 2016 and has applied in the U.K.
since January 1, 2018. Global regulators have imposed fines on firms following attempted manipulation of the
London Inter-bank Offered Rate (“LIBOR”), gold and foreign exchange benchmarks, and have taken action
against individuals for misconduct related to benchmarks. The objectives of the EU BMR include, but are notlimited to: (i)improving governance and controls over the benchmarking process to ensure that administrators
avoid/manage conflicts of interest, (ii)improving the quality of input data and methodologies used by benchmark
administrators, (iii)ensuring that contributors to benchmarks and the data they provide are subject to adequate
controls, and (iv)protecting consumers and investors through greater transparency and adequate rights of redress.
Furthermore, in November 2019, the EU BMR was amended to include two new types of “climate
benchmarks”—‘Paris-Aligned’ Benchmarks (“PABs”) and Climate Transition Benchmarks (“CTBs”). The
Low-Carbon Benchmarks Regulation introduced the requirement (under Article 13 of the BMR) thatadministrators of benchmarks (save interest rate and foreign exchange benchmarks) must provide an explanationof how the key elements of their benchmark methodologies reflect ESG factors. The requirements are to becomplied with by April 30, 2020. However, since the draft regulatory technical standards were still subject to a
public consultation and a number of important details are subject to these delegated acts, ESMA issued a ‘No
Action Letter’ encouraging EU national regulators not to force these ‘Level 1’ requirements until these delegatedacts are finalized. The Delegated Acts were finalized and published on December 3, 2021.
In addition, interest rate benchmarks including, among others, the London Interbank Offered Rate(“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”), the Euro Overnight Index Average (“EONIA”) andcertain other Interbank Offered Rates (“IBORs”) are being reformed. The U.K. was due to make the transition
from LIBOR to Sterling Overnight Index Average (“SONIA”) by the end of 2021 although certain interim
milestones were extended due to the COVID-19 pandemic. To avoid disruption to legacy contracts that reference
the 1-, 3- and 6-month sterling and Japanese Yen LIBOR settings, on September 30, 2021 the U.K. FCA
announced that it will require the LIBOR benchmark administrator to publish these settings under a ‘synthetic’
methodology, based on term risk-free rates, for the duration of 2022. These six LIBOR settings were available
only for use in some legacy contracts, and are not for use in new business.
On November 28, 2022, ESMA published a Final Report on the review of the RTS on the form and content
of applications for recognition by non-EU benchmark administrators, and a consultation (closed on January 30,2023) on amendments to the RTS on the information that EU benchmark administrators need to provide inapplications for authorisation and registration. The proposals in the consultation aim to safeguard equal treatment
between EU and non-EU Benchmarks administrators by aligning the information requested in applications fromEU administrators with the information requested in recognition applications from non-EU administrators.
The EU BMR rules are currently suspended to allow EU supervised entities to continue to use non-EU
benchmarks until December 31, 2023. On November 8, 2022, the EU Commission published an initiative toextend this suspension until December 31, 2025. The adoption of this extension is expected in the second quarterof 2023.
Under the BMR, when non-EU benchmark administrators apply for recognition in the EU, ESMA must firstestablish an MoU with the relevant authority. This extension should, therefore, not impact U.K.-based
Benchmark Administrators considering that ESMA and the U.K. FCA signed a Memorandum of Understanding(MoU) in January 25, 2023 which allows ESMA to recognize benchmark administrators from the U.K.
On March 1, 2023 the EU Commission launched a call for evidence (open until March 29, 2023) to aid its
review of the scope and third country regime of the EU BMR. The EU BMR contains rules on the use of non-EU
benchmarks, which will apply from January 1, 2024. Under the rules, non-EU benchmarks can be used in the EU
39

only if they comply with rules comparable to the BMR. However, very few jurisdictions have regulated
benchmarks as extensively as the EU. Therefore, when the new rules on the use of non-EU benchmarks comeinto force, it would deprive firms in the EU of access to the majority of the world’s benchmarks.
On July 22, 2020, the U.K. Government published a policy statement extending the transitional period forthird-country benchmarks under the U.K. BMR from December 31, 2022 to December 31, 2025, thus allowing
U.K. firms to continue using benchmarks provided by administrators located outside the U.K. in new financial
contracts and instruments without these benchmarks being registered with U.K. FCA until the end of 2025.
On October 21, 2020, the U.K. Government published a policy statement making amendments to BMR toallow for the orderly winding down of LIBOR, including providing new powers for the U.K. Financial Conduct
Authority (“FCA”). The proposed framework in the policy document allows U.K. FCA to take an appropriate
course of action to direct a change in the methodology of a critical benchmark and extend its publication, for alimited time period, for those contracts that face insurmountable barriers to transition from LIBOR (Tough
Legacy Contracts). U.K. FCA consulted on its proposal to use two new powers relating to the use of criticalbenchmarks that are being wound down. The powers are part of a wider package of amendments to the BMR in
the Financial Services Act 2021, intended to ensure that U.K. FCA has the appropriate regulatory powers to help
reduce risk in the wind-down period before LIBOR ceases permanently. The final Statements of Policy were
published in September 29, 2021 (Statement of Policy on U.K. FCA’s power under Article 23C BMR andStatement of Policy on U.K. FCA’s power under Article 21A BMR).
On November 23, 2022 U.K. FCA announced that it will continue to use its powers under the U.K.
Benchmarks Regulation to compel LIBOR’s administrator, ICE Benchmark Administration (“IBA”) to publish
three-month sterling LIBOR on a synthetic basis until the end of March 2024. After March 2024, the rate will be
discontinued. U.K. FCA also launched a consultation on the wind-down of U.S. Dollar LIBOR, proposing that
one-month, three-month and six-month U.S. Dollar LIBOR continue to be published on a synthetic basis until theend of September 2024. In April 3, 2023, the FCA announced its final decision, in line with the proposals
consulted upon. The Feedback Statement was published in May 31, 2023, highlighting that the FCA will publish
formal legal notices which will complete the implementation of the decision. In the meantime, firms should takeall necessary steps to ensure they understand how their contract terms interact with LIBOR’s wind-down andcontinue to actively transition contracts that reference U.S. Dollar LIBOR, and not rely on the synthetic settings.
In the U.K. as a follow up to the Fair and Effective Markets Review (established by the Chancellor of the
Exchequer), the Fixed Income, Currencies and Commodities (“FICC”) Markets Standards Board (“FMSB”) wasestablished in 2015 as a private sector response to the conduct problems revealed in global wholesale FICC
markets after the financial crisis. The FMSB has since been renamed the “Financial Markets Standards Board”.
The function of the FMSB is to help raise standards of conduct in global wholesale markets by producing
voluntary Standards and other guidance in areas of uncertainty that are developed by the membership anddesigned to illustrate best practices to all market participants. These Standards are intended to reduce thecontinuing uncertainty about acceptable practices in opaque and unregulated areas, which is a hazard for FMSB
members, as well as other market participants. The Standards published cover topics including the new issue
process, binary options for the commodities markets, reference price transactions for the fixed income markets
and secondary market trading error compensation. The published Standards do not have legal or regulatory force
and do not replace existing legislation; rather, they are intended to supplement the rules already in place. The
Standards are implemented by way of FMSB member firms, including Nomura International plc, and Nomura
Financial Products Europe GmbH, making an adherence statement on an annual basis.
Following Brexit, on March 26, 2021, the U.K. Government announced that technical negotiations on the
text of the U.K.-EU memorandum of understanding (“MoU”) establishing a framework for regulatory
cooperation in financial services have concluded. Among other things, the MoU, when formally signed andbrought into force, will establish a Joint U.K.-EU Financial Regulatory Forum to serve as a platform to facilitate
dialogue on financial services issues. The MoU makes limited reference to access, saying that both sides will
“jointly endeavor to pursue a robust and ambitious bilateral regulatory cooperation”.
40

In response to heightened global focus on the issues of climate change, and a growing demand for standards
associated with ESG factors and reporting, a number of global regulatory initiatives are being developed. These
regulations cover both prudential frameworks including assessment and management of climate risks associatedwith Nomura businesses, such as the U.K. PRA SS3/19 regulations; and also labelling, disclosure and reporting
regulations.
Disclosure and reporting regulations includes but are not limited to mandatory Taskforce for Climate
Related Financial Disclosure (“TCFD”) reporting, that will apply to Nomura subsidiaries, such as under theCompanies Act 2006 in the U.K., as updated in 2022, which will apply to Nomura International plc.
Nomura will also across multiple entities be subject to the International Sustainability Standards Board’s(“ISSB”) Reporting Standards on Sustainability, which will be finalized in 2023, and are expected to be effectivefrom January 1, 2024. The ISSB rules will be implemented over time across jurisdictions that Nomura entities
operate in.
Climate-related disclosures by Nomura at a Group level (Nomura Holdings, Inc. on a consolidated basis) is
expected to be covered by the proposed U.S. SEC Rules to Enhance and Standardize Climate-Related
Disclosures for Investors, once finalized.
Labelling, disclosure and reporting regulations further include the EU Taxonomy Regulation, the EU
Sustainable Finance Disclosure Regulation and the EU Corporate Sustainability Reporting Directive. The latter
was published in the EU Official Journal on December 16, 2022.
On February 23, 2022 the EU Commission adopted a proposal for a Directive on corporate sustainability
due diligence. The aim of this Directive is to foster sustainable and responsible corporate behavior and to anchor
human rights and environmental considerations in companies’ operations and corporate governance. The newrules will ensure that businesses address adverse impacts of their actions, including in their value chains insideand outside Europe.
In the U.K., U.K. FCA published a consultation paper (now closed) on the sustainability disclosure
requirements (SDR) regime and accompanying investment labels and is a key part of delivering the U.K.
government’s roadmap to sustainable investing. Among other things, it introduces restrictions on how certain
sustainability-related terms, such as ESG, green or sustainable, can be used in product names and marketing for
products which do not qualify for the sustainable investment labels and introduces sustainable investment
product labels with three categories underpinned by objective criteria. The SDR rules will also include a generalanti-greenwashing provision. On March 29, 2023, U.K. FCA published a statement clarifying that the final policy
statement is expected to be published in the third quarter of 2023.
In addition, the U.K. Transition Plan Taskforce (launched by HM Treasury in April 2022 to develop thegold standard for private sector climate transition plans) consulted on its proposals for mandatory transition plan
reporting to accompany mandatory TCFD reporting.
Regulatory Capital Rules
Japan
In March 2023, the FSA announced one more year delay of the implementation date of the finalised Basel
III standards for final designated parent company, to March 31, 2025. Also, in March 2022, the FSA announced
the exclusion of deposits with the Bank of Japan from the total exposure used to calculate the leverage ratio until
March 31, 2024.
The FIEA requires that all Financial Instruments Firms (Category I) (“Financial Instruments Firms I”), a
category that includes NSC and NFPS, ensure that their capital adequacy ratios do not fall below 120% on a41

non-consolidated basis. The FIEA also requires Financial Instruments Firms I to file monthly reports regarding
their capital adequacy ratios with the Commissioner of the FSA or the Director-General of the appropriate Local
Finance Bureau, and also to disclose their capital adequacy ratios to the public on a quarterly basis. In addition, if
the capital adequacy ratio of a Financial Instruments Firm I falls below 140%, it must file a daily report with theauthorities. The FIEA provides for actions which the Prime Minister, through the Commissioner of the FSA or
the Director-General of the appropriate Local Finance Bureau, may take if any Financial Instruments Firm I fails
to meet the capital adequacy requirement. More specifically, if the capital adequacy ratio of any Financial
Instruments Firms I falls below 120%, the Commissioner of the FSA or the Director-General of the appropriate
Local Finance Bureau may order the Financial Instruments Firm I to change its business conduct, to deposit its
property in trust, or may issue any other supervisory order that such authorities deem necessary and appropriate
to protect the interests of the general public or investors. If the capital adequacy ratio of a Financial Instruments
Firm I falls below 100%, the authorities may take further action, including the issuance of orders to temporarilysuspend its business and the revocation of its registration as a Financial Instruments Firm I under the FIEA.
Under the FIEA and regulations thereunder, the “capital adequacy ratio” means the ratio of adjusted capital
to a quantified total of business risks. Adjusted capital is defined as net worth less illiquid assets. Net worth
mainly consists of stated capital, additional paid-in capital, retained earnings, reserves for securities transactions,certain allowances for doubtful current accounts, net unrealized gains/losses in the market value of investment
securities, and subordinated debt. Illiquid assets generally include non-current assets, certain deposits andadvances and prepaid expenses. Business risks are divided into three categories: (i) market risks (i.e., risks ofasset value changes due to decline in market values and other reasons), (ii) counterparty risks (i.e., risks ofdelinquency of counterparties and other reasons) and (iii) basic risks (i.e., risks in carrying out daily businessactivities, such as administrative problems with securities transactions and clerical mistakes), each quantified in
the manner specified in a rule promulgated under the FIEA.
The FSA reviewed the FIEA and regulations thereunder in line with Basel 2.5 framework and the revised
regulations for Basel 2.5 were implemented at the end of December 2011. Market risks increased significantly asa result of the Basel 2.5 rule implementation.
We closely monitor the capital adequacy ratio of NSC and NFPS on a continuous basis. Since theintroduction of the capital adequacy requirement in Japan in 1989, we have at all times been in compliance withall appropriate requirements. We believe that we will continue to be in compliance with all applicable capital
adequacy requirements for the foreseeable future.
As discussed above, the FSA amended the FIEA and introduced new rules on consolidated regulation andsupervision of securities companies on a consolidated basis on April 1, 2011 to improve the stability andtransparency of Japan’s financial system and ensure the protection of investors. Following introduction of theserules, NSC was designated as a Special Financial Instruments Firm, following which we have been designated asa Final Designated Parent Company. As such, we are required to calculate consolidated regulatory capital
adequacy ratio according to the FSA’s “Establishment of standards on sufficiency of capital stock of a final
designated parent company and its subsidiary entities, etc. compared to the assets held thereby”(2010 FSARegulatory Notice No. 130; “Capital Adequacy Notice on Final Designated Parent Company”). Accordingly,
since our designation as a Final Designated Parent Company in April 2011, we now calculate our Basel rulebased consolidated regulatory capital adequacy ratio according to the Capital Adequacy Notice on Final
Designated Parent Company.
The FSA also amended the FIEA to include reporting on consolidated regulatory capital for the Final
Designated Parent Companies, effective April 1, 2011. We are subject to this reporting requirements as well as
the capital adequacy requirements described above.
The Capital Adequacy Notice on Final Designated Parent Company has been revised to be in line with Basel
2.5 and Basel III, and we have calculated a Basel III-based consolidated capital adequacy ratio since the end of42March 2013. Basel 2.5 includes significant changes in the method of calculating market risk and Basel III
includes redefinition of capital items for the purpose of requiring higher levels of capital and expansion of thescope of credit risk-weighted assets calculation.
If our capital ratios fall to the minimum level required by the FSA, our business activities may be impacted.
However, these ratios are currently at well capitalized levels. We have met all capital adequacy requirements towhich we are subject and have consistently operated in excess of the FSA’s capital adequacy requirements.
Subject to future developments in regulatory capital regulations and standards, there has been no significant
change in our capital ratios which management believes would have material impact on our operations.
The Basel Committee has issued a series of announcements regarding a broader program to strengthen theregulatory capital framework in light of weaknesses revealed by the financial crises, as described in“Consolidated Regulatory Capital Requirements” under Item 5.B of this annual report. The Capital Adequacy
Notice on Final Designated Parent Company is expected to incorporate the series of rules and standards in linewith the schedule proposed by the Basel Committee.
At the G-20 summit in November 2011, the Financial Stability Board (“FSB”) and the Basel Committeeannounced the list of global systemically important banks (“G-SIBs”) and the additional requirements to the
G-SIBs including the recovery and resolution plan. The FSB also announced the group of G-SIBs will be updated
annually and published by the FSB each November. Since November 2011, we have not been designated as a
G-SIB. On the other hand, the FSB and the Basel Committee were asked to work on extending the framework for
G-SIBs to domestic systemically important banks (“D-SIBs”) and the Basel Committee developed and publisheda set of principles on the assessment methodology and the higher loss absorbency requirement for D-SIBs. In
December 2015, the FSA identified us as a D-SIB and required additional capital charge of 0.5% after March
2016, with 3-year transitional arrangement.
Overseas
In the U.S., Nomura Securities International, Inc. (“NSI”) is registered as a broker-dealer under the
Securities Exchange Act of 1934 and is a futures commission merchant with the Commodity Futures Trading
Commission (“CFTC”). NSI is also regulated by self-regulatory organizations, such as the Financial Industry
Regulatory Authority (“FINRA”) and the Chicago Mercantile Exchange Group. NSI is subject to the SEC’s
Uniform Net Capital Rule (“Rule 15c3-1”) and other related rules, which require net capital, as defined under thealternative method, of not less than the greater of $1,000,000 or 2% of aggregate debit items arising from clienttransactions. NSI is also subject to CFTC Regulation 1.17 which requires the maintenance of net capital of 8% of
the total risk margin requirement, as defined, for all positions carried in client accounts and nonclient accounts or$1,000,000, whichever is greater. NSI is required to maintain net capital in accordance with the SEC, CFTC, orother various exchange requirements, whichever is greater. Another U.S. subsidiary, Nomura Global Financial
Products Inc. (“NGFP”) is registered as an OTC Derivatives Dealer under the Securities Exchange Act of 1934.
NGFP registered with the Commodity Futures Trading Commission (“CFTC”) as a Swap Dealer on October 6,2021 and registered with the Securities and Exchange Commission (“SEC”) as a Security Based Swap Dealer on
November 1, 2021. NGFP calculates capital under SEC rule 18a-1 and CFTC rule 23.101 and requires the greaterof $20,000,000, 2% of the SEC risk margin amount or 2% of the CFTC risk margin amount. Another U.S.
subsidiary, Instinet, LLC (“ILLC”) is a broker-dealer registered with the SEC and is a member of FINRA.
Further, ILLC is an introducing broker registered with the CFTC and a member of the National Futures
Association and various other exchanges. ILLC is subject to Rule 15c3-1 which requires the maintenance ofminimum net capital, as defined under the alternative method, equal to the greater of $1,000,000, 2% of
aggregate debit items arising from client transactions, or the CFTC minimum requirement. Under CFTC rules,
ILLC is subject to the greater of the following when determining its minimum net capital requirement: $45,000
minimum net capital required as a CFTC introducing broker; the amount of adjusted net capital required by afutures association of which it is a member; and the amount of net capital required by Rule 15c3-1(a). As of
March 31, 2022 and 2023, NSI, NGFP and ILLC were in compliance with relevant regulatory capital related
requirements.
43

In Europe, Nomura Europe Holdings plc (“NEHS”) is subject to consolidated regulatory supervision by the
Prudential Regulation Authority (“U.K. PRA”) as a U.K. Parent Financial Holding Company. The regulatory
consolidation is produced in accordance with the requirements established under the Financial Services andMarkets Act 2000, U.K. Capital Requirements Regulations and the PRA Rulebook. Nomura International plc(“NIP”), the most significant of NEHS’ subsidiaries, acts as a securities brokerage and dealing business. NIP is
also regulated by the U.K. PRA and has minimum capital adequacy requirements imposed on it on a standalone
basis. As a non-U.S. swap dealer and securities based swap dealer NIP is also subject to the regulations of the
CFTC and SEC under the Dodd Frank Act. In addition, Nomura Bank International plc (“NBI”), anothersubsidiary of NEHS, is also regulated by the U.K. PRA on a standalone basis. NEHS also has a number ofEuropean domiciled subsidiaries including Nomura Financial Products Europe GmbH (“NFPE”), a Nomura
subsidiary domiciled in Germany which is regulated by the German regulator (“BaFin”) and is subject to the EU
Capital Requirements Regulation and local German regulations and Banque Nomura France (“BNF”), a Nomura
subsidiary domiciled in France which is regulated by the French regulator (“ACPR”) and is also subject to the
EU Capital Requirements Regulation and local French regulations. As of March 31, 2021 and 2022, NEHS, NIP,
NBI, NFPE and BNF were in compliance with relevant regulatory capital related requirements.
In Asia, Nomura International (Hong Kong) Limited (“NIHK”) and Nomura Singapore Ltd (“NSL”) areregulated by their local respective regulatory authorities. NIHK is licensed by the Securities and Futures
Commission in Hong Kong to carry out regulated activities including sales, trading and clearing in securities andfutures contracts, advising on securities, futures contracts and corporate finance and wealth management.
Activities of NIHK, including its branch in Taiwan, are subject to the Securities and Futures (Financial
Resources) Rules which require it, at all times, to maintain liquid capital at a level not less than its required liquid
capital. Liquid capital is the amount by which liquid assets exceed ranking liabilities. Required liquid capital iscalculated in accordance with provisions laid down in the Securities and Futures (Financial Resources) Rules.
NSL is a licensed merchant bank regulated by the Monetary Authority of Singapore (“MAS”). NSL carries out
its regulated activities including, among others, fixed income and securities sales and trading business, advisingon securities, corporate finance and wealth management. NSL is regulated and has minimum capital adequacy
requirements imposed on it, including its branch in the Dubai International Financial Centre, by the MAS in
Singapore. NIHK and NSL have been compliant with relevant regulatory capital related requirements.
In addition, certain of our other subsidiaries are subject to various securities and banking regulations, andthe capital adequacy requirements established by the regulatory and exchange authorities of the countries inwhich those subsidiaries operate. We believe that each such subsidiary is, and will in the foreseeable future be, incompliance with these requirements in all material respects.
Management Challenges and Strategies
Management vision
Our business environment is undergoing significant changes. We will continue to respond to it flexibly
while maintaining an appropriate financial standing and effectively utilizing management resources throughimproved capital efficiency. In addition, we are never satisfied with ourselves and will constantly implement new
initiatives with the aim of expanding existing businesses and providing value-added services to clients.
(1) Medium-to Long-term Priority Issues
Our vision is to take Nomura to the next stage. To realize this, we launched a strategy of expanding into
private markets to complement our businesses in the public markets. We are committed to strengthening theprovision of bespoke services and solutions made for each specific client, through a three-pronged approach,namely the expansion of our client base, expansion of products and services, and delivery utilizing digitaltechnology. Based on this strategy, for instance, we are starting to see results from the following efforts. For
more information on the strategies in each division, please refer to the challenges and strategies in each division.

44

i Shifting to asset consulting businessWe are shifting to an asset consulting business for domestic individual customers. We provide asset
consulting services that we believe provide preferable medium-to long-term solutions for our clients. We supportclients in increasing their assets, and we aim to increase the fee income we receive as a result by increasing assets
under custody. The steady increase in income from stock assets such as investment trusts, for which fees such as
management and administration expenses are charged for assets under management, contributes to additional
revenue stability for us. In order to address the diversifying needs of our clients and provide personalized, private
services, we reallocated our partners (sales representatives) according to client segmentation based on attributesand needs of our clients, strengthening our segment approach. In addition, we aim to expand our customer baseby strengthening business for salaried employees, and expanding our business through alliances with regional
financial institutions.
ii Strengthening Investment Management Division
We established our Investment Management Division, in April 2021, aiming to meet our clients’ diverse
needs, as part of our management strategy: Expanding our scope of business from public to private. This divisionaims not only to expand and strengthen traditional investment products but also to provide private investment
opportunities such as alternative assets.
Since the establishment of the division, we have expanded our private investment opportunities, including
an investment corporation investing in unlisted stocks, an equity acquisition fund for business succession (SearchFund), a private real estate fund in Japan, and a private credit fund and forestry funds overseas. We have alsoestablished a publicly offered investment trust that invests in unlisted REITs (Real Estate Investment Trusts) in
the U.S., which is also invested by individual investors in Japan. We believe that Nomura’s mission is tochallenge a wide range of private asset areas and to create an environment in which investors can easily invest.
iii Stabilizing and growing Wholesale businessIn our Wholesale Division, we are diversifying our revenue sources while maintaining a high market sharein core products. In addition, we will continue to provide liquidity and solutions to customers. Capital-lightorigination business, including M&A advisory, grow global business centered on Americas. Especially, in the
U.S., we acquired Greentech Capital, LLC, a firm with a solid presence in sustainable technology andinfrastructure, and launched Nomura Greentech in April 2020. We will seamlessly provide financial and othersolutions to our global customer base. In addition, regarding solutions business that is less susceptible to changes
in market environment, we build up experience in structured finance including infrastructure finance.
iv Strengthen Digital Financial Services
Our digital transformation efforts are directly linked to our competitiveness with other financial institutionsin the future, and we will continue to promote a wide range of initiatives based on our strategy in order to provide
highly convenient services to our clients and respond to diversifying needs. We also believe that our people are
the source of the added value created by the Nomura Group even in a world of increasing where digitization anddigitalization are advanced. We will continue to strengthen the development of our human resources with thequalities required for the upcoming era, such as consulting capabilities that make full use of both face-to-face andvirtual communications. In addition, we established “Digital Company” in April 2022, aiming to strengthen
collaboration in the digital domain across group entities, including in our international operations, while alsobolstering initiatives in focus areas. Our efforts to promote digitalization are as follows.
- Streamline and enhance internal operations
We are working to focus on high value-added analysis and advisory services by promoting the automationand efficiency of internal operations. We also aim to provide services through highly satisfactory communication
methods by improving existing services. In addition, we have launched an internal Digital IQ learning program tosupport digital e-learning with the aim of lifting the base-level knowledge of digital initiatives across the Group.
45

Regarding the initiatives of employee development, please refer to Item 4.B. “Views on Sustainability andefforts” (5) Human Capital Initiatives.
- Digitalization of client touchpoints
Our Retail Division utilizes “Remote Consulting” which is an original system supporting sales
representatives. By expanding utilization of OneStock which is an asset management smartphone application,
FINTOS! which is an investment information application etc. we will develop a platform to deliver services foryoung people and the working generations, who we have not provided with many products and services.
- Participation in Digital Asset BusinessWe are also working to create businesses in new areas. In September 2022, we established Laser Digital
Holdings AG, a new entity in digital assets business, incorporated in Switzerland. The company will focus on
three core areas: Secondary Trading, Venture Capital and Investor Products and will announce new services andproduct lines as it moves ahead with the staged launch of the business.
v Initiatives for Sustainability
Please refer to Item 4.B.“Views on Sustainability and efforts”.
(2) Issues in Each Division
The challenges and strategies in each division are as follows:•

Retail Division
Based on the basic concept of “Enriching clients by responding to their concerns about assets”, ourRetail Division aims to become a financial institution fulfilling the needs of many people. We willcontinue working on improving the skills of our partners (sales representatives), and enhance our wide
range of products and services in order to accurately respond to diversifying clients’ asset issues suchas inheritance or anxiety about lack of funds after retirement. In addition, we will enhance online
services and remote consulting service through contact centers.

•

Investment Management Division
Our Investment Management Division is responsible for providing products and services that meet thediversifying investment needs of our clients in the broad asset management business. By combining our
expertise in traditional assets such as stocks and bonds with offerings in alternative assets such asprivate equity, we are able to add value and offer advanced services and solutions to meet the diverse
needs of our clients. In the public market business, we aim to improve investment performance, expand
investment strategies with robust investment capabilities, and enhance the provision of investment
solutions. In the private market business, we are scaling up our asset management business, expanding
into real asset management, including real estate and infrastructure, and fully realizing our private asset
management capabilities in the global market. Amid continued downward pressure on management
fees, we are pursuing higher value-added businesses and appropriate cost controls, while expanding
investments in growth areas, particularly in the private market area.

•

Wholesale Division
Our Wholesale Division faces challenges presented by increasingly sophisticated client needs andtechnological advancement, coupled with uncertainty in the market and macroeconomic environment.
To ensure continuity of service as well as added value to clients, we will continue to enhancecollaboration across business lines, regions and divisions while ensuring tight risk control. We willcontinue to further diversify our business portfolio through targeted growth in both existing and new
businesses as well as deploy financial resources to selective, high growth opportunities.
46

Global Markets aims to provide uninterrupted liquidity to our clients while reinforcing risk control andgovernance. Additionally, we aim to further diversify our business portfolio, reinforce global
connectivity and cross-sell to leverage our global platform and client franchise, pursue growth
opportunities such as structured financing and solution business, international wealth managementbusiness as well as Global Equities, and continue to build on the strength of our Flow Macrobusinesses.
Investment banking aims to provide advisory services and financing to domestic as well as crossborder
restructurings and industry-wide consolidations, as well as interest rate and FX solutions related tothese transactions as volatile business environments impact our clients’ businesses. While we expand
our global advisory business, we will focus on broadening ESG related businesses with initiatives suchas further utilization of Nomura Greentech’s expertise and enhancement of our sustainable financeplatform.
•

Risk Management and Compliance, etc.
We have defined our risk appetite in our Risk Appetite Statement which includes the types and level ofrisk that the Nomura Group is willing to assume in pursuit of our strategic objectives and businessplans. Further, we continue to develop our risk management framework in a way that is strategicallyaligned to our business plans and incorporates decision-making by senior management, thereby
securing capital soundness and enhancing our corporate value.
We have clearly defined in our Risk Appetite Statement that all executives and employees must
actively engage in risk management through our Three Lines of Defense framework. Besides, we
continuously provide trainings to all executives and employees including those in the group companies
to increase our knowledge about risks as financial professionals and develop a corporate culture ofcorrectly recognizing, assessing and managing risks. For more information, see Item 11 “Quantitativeand Qualitative Disclosures about Market, Credit and Other Risk.”With regard to compliance, we continue to focus on improving the management structure to comply
with local laws and regulations in the countries where we operate. We also continue to review ourinternal systems and rules so that all executive management and employees can work autonomouslywith high ethical standards.
In order to ensure not only compliance with laws and regulations, but also that all directors, officers
and employees are able to act in accordance with social norms, we have established the “Nomura
Group Code of Conduct” as guidelines for actions to be taken, and through associated trainings andother measures, we are working to promote appropriate actions (“Conduct”) based on the Code of
Conduct. At the ‘Nomura Founding Principles and Corporate Ethics Day’ held in every August, we
reaffirm the lessons learned from past incidents and renew our determination to prevent similar
incidents then to maintain and gain the trust society places in us; discussions are held regarding theproper way to conduct after looking back on past incidents, and a pledge is made to comply with theCode of Conduct. In order for us to be able to respond to the changing demands of society, the Code of
Conduct is regularly reviewed to constantly examine ourselves and to ensure that our thinking aligns
with society’s norms.
By addressing and resolving the above issues, we will strive for the stability and further developmentof financial markets as well as the sustainable growth of the Nomura Group.

Views on Sustainability and efforts(1) Nomura’s Basic Views on Sustainability
Our Mission is to enrich society through our expertise in capital markets. This is a set of values (Corporate
Philosophy) that we hold dear and have inherited since our founding as our company’s raison d’etre and our
47responsibility towards society. Based on these values, we consider sustainability to be a business activity, andhave integrated sustainability into our management strategy. Nomura’s sustainability promotion efforts havevalue in two ways. One is to support the sustainability efforts of our clients and various stakeholders. The second
is to promote sustainability efforts in our own operations such as reducing our environmental impact andenhancing our governance.
•

Supporting the sustainability efforts of our clients and stakeholders through business activities
Our core role as a financial services group is to support customers through the flow of funds andcapital. We believe it is important to strengthen our functions to promote the sustainable circulation ofcapital by underwriting green bonds and social bonds issued by companies and financial institutions,providing strategic advisory services such as M&A advisory, and by developing ESG-related funds as
investments and providing them to individual investors. In addition, we seek to take advantage of theGroup’s comprehensive strengths in providing solutions to social issues by leveraging the functions wehave cultivated over many years, including support for business succession, promoting innovation in
the fields of regional revitalization, agriculture and medical care, and our expertise and knowledge inthe field of research and analysis.
Nomura has been providing financial education programs for people of all ages, ranging from children
to adults for more than 20 years, dating back to the 1990s. In April 2022, Nomura established the
Financial Well-being Dept. in order to strengthen our financial education capabilities. We will continue
to strengthen initiatives to improve the financial literacy of society as a whole.

•

Our company’s own efforts to continue being a sustainable corporate group
Nomura has announced its goal of achieving net zero greenhouse gas (“GHG”) emissions for its own
operations by 2030, and to seek to achieve net zero GHG emissions attributable to its lending andinvestment portfolios by 2050. To realize these efforts, Nomura joined the Net-Zero Banking Alliance(“NZBA”) in 2021. Nomura Group participates in and endorses a variety of initiatives besides NZBA
to further promote the realization of a sustainable environment and society in cooperation withstakeholders regarding how we will address social issues. In addition, the evolution of human resource
management strategies is essential for achieving sustainable growth and increasing corporate value
through the resolution of social issues. For this reason, the Nomura Group is pursuing various
initiatives to differentiate its human resources management cycle, promote diversity, equity &inclusion (DEI), our employees’ ways of working, wellbeing and create a sense of belonging. (Fordetails, please refer to “(5) Human capital initiatives”.)(2) Nomura’s Sustainability-Related GovernanceNomura is a Company with Three Board Committees under Japanese law, separating management oversightand business execution to strengthen corporate governance. The oversight function and the executive side playrespective roles in recognizing climate change risks and opportunities, promoting various measures, andmanaging risks.
1 Board of Directors
The Board of Directors offers advice on sustainability related reports prepared by executive officers,
based on our basic sustainability policy which states: “Nomura will contribute to the creation of a truly
enriched society through our business activities based on the principles embodied in the Nomura Group
Corporate Philosophy, and actively pursue initiatives to resolve social issues and create a sustainable
world.”
Exchange of opinions regarding sustainability also occur out meetings of our outside directors, which
are held periodically in order for outside directors to discuss our business and our corporate
governance. Such exchange also occurs at our Internal Controls Committee, which is consisted ofmultiple directors and executive officers, and at our Audit Committee.
48

2 Sustainability Committee
Nomura has established the Sustainability Committee chaired by the Group CEO and which also
consists of other persons designated by the Group CEO including the members of the Executive
Management Board to deliberate and make decisions on strategies to promote sustainability. The Chief
Sustainability Officer leads discussions in the Sustainability Committee to consolidate the company’ssustainability knowledge and accelerate the formulation and promotion of strategies.
3 Sustainability ForumIn order to ensure opportunities for more flexible and substantive discussions on sustainability, theSustainability Council, which has been established and operated as a forum for discussion by
executives from across departments and regions, has been divided into the Sustainability Business
Forum, which deals with topics more closely related to business activities, and the Sustainability
Corporate Forum, which deals with information disclosure and policy formulation, with operations
beginning in fiscal 2023. Each forum will coordinate with the Sustainability Committee as appropriate
to promote flexible approaches to sustainability.
(3) Nomura’s Risk Management on Sustainability
Increasing attention to the management of Sustainability matters makes it imperative that we continue todevelop policies and capabilities in these areas, and that we position ourselves in a positive light to interested
stakeholders including our shareholders, clients and society at large. Amid rapidly changing circumstances
around Sustainability, lack of sufficient focus such as on environmental policies, human rights and diversity,
equity & inclusion considerations may also adversely affect our reputation, results of operations and financial
condition. In particular, we recognize that climate change risks are likely to have an impact over the medium tolong term, and we seek to manage these risks under appropriate management systems.
1 Recognition of the Risks Associated with Climate Change
Nomura recognizes risks arising from changes in the environment due to climate change and identifies
the potential impact on our business. There are two types of risks associated with climate change: therisk of loss or damage due to extreme weather events such as large typhoons, droughts, and intense heat
(physical risk), and the risks associated with decarbonization, such as the inability to respond tochanges in government policies, or rapid technological innovations (transition risk). Nomura
recognizes the following physical and transition risks associated with climate change.
•

Risk that clients will not adequately respond to climate change, resulting in financial damage,decline in creditworthiness and inability to fulfil their contractual obligations•

Risk that climate change causes market fluctuations and losses are incurred due to fluctuations in themarket price of Nomura’s financial assets•

Risk of reputational damage if Nomura and counterparties fail to respond appropriately to climatechange•Risk of financial losses or reputational damage due to inadequate or failed internal processes andemployee response to climate change•

Risk of inadequate strategies or failed execution of strategies as compared with competitors, andrisk of gap between strategies and resources

2 Our approach on Risks Associated with Climate Change
Climate risk is recognized as one of risks that are understood to potentially impact Nomura adversely ifthey materialize. Climate risk is not recognized as a standalone risk, but is understood to be a risk
factor affecting various risk areas. Nomura has built an integrated risk management framework that49

manages the risks caused by climate change by adding new responses to the ones into the existing risk
management frameworks.
(4) Metrics and Targets
Nomura has announced its goal of achieving net zero GHG emissions for its own operations by 2030, toseek to achieve net zero GHG emissions attributable to its lending and investment portfolios by 2050 and to be
involved in sustainable financings totaling $125 billion over the 5 years ending March 2026(*). We post ourprogress towards each target on our company website (Our website and the information posted thereon do notconstitute part of and are not incorporated by reference into this annual report on Form 20 F.).
*This target includes capital raised through Nomura’s debt and equity capital markets businesses, private
placements of mezzanine debt and equity securities, and debt financing through its Infrastructure and Power
Financing Group(5) Human Capital Initiatives
1 Evolution of Human Resources Management Strategy and Sustainable Growth
We seek to achieve sustainable growth and to maximize our corporate value. In order to achieve this, weseek to improve our return on equity (ROE) through investing strategically for growth. We believe it is essential
to enhance the competitive strength of our employees (human capital) in order to enhance productivity, build
value to our clients and shareholders, and enrich our risk management culture by realizing the potential of ourdedicated and professional workforce and through collaboration.
Through improving employee engagement with the long-term evolution of our human resourcesmanagement strategy, we aim to differentiate the intellectual capital (*) that our human capital delivers as a teamand further enhance the added value provided by the Nomura Group.
* Our intellectual capital refers to the intangibles that are the source of our competitiveness, includingorganizational capabilities, know-how, customer networks, and branding.
We believe our employees are key assets to drive excellence and we seek to enhance the competitive
strength of our human capital through differentiated initiatives and programs and to encourage collaboration
within our workforce.
2 Nomura Group’s Human Resources Management Strategy
Our human resources management strategy is based on the values of “Entrepreneurial Leadership”,“Teamwork,” and “Integrity” as defined in our corporate philosophy, and these core values set us apart from ourcompetitors in our recruitment, talent development, performance appraisal, and mobility and advancement
strategies, as well as our dedication to promoting “Diversity, Equity & Inclusion” (DEI), “Employees’ Ways ofWorking”, “Wellbeing” and a sense of belonging. This strategy forms the core of our recruitment, talentdevelopment and retention initiatives.
i Recruitment
We seek to recruit individuals who share our values of “Entrepreneurial Leadership”, “Teamwork”, and“Integrity” and are aligned with our strong risk management culture. In order to attract and develop suchindividuals who also can demonstrate strong expertise, we recruit individuals in all roles and at all careerlevels in all regions including Japan, through both new graduate programs and mid-career hiring.
To continue to attract individuals with diverse experience and strong capabilities, we have establishedalumni networks and recruitment strategies in Japan and India in order to stay connected and regularly
re-engage with our pool of alumni who remain active in the industry and communities.
50

ii Talent development
In order to develop required competencies to deliver value to our clients, we offer a broad variety of
training and development programs to our employees at all career levels across all departments and regions.
For example:
Digital IQ learning program - we launched our Digital IQ learning program in 2021 to educate
employees globally about digital transformation (DX), providing them with opportunities to learn avariety of digital skills, from basic through to advanced levels.
Nomura Business Academy (NBA) - In Japan, NBA is a platform to support our employees in
obtaining professional qualifications relevant to our business such as Securities Analyst Licenses,
Financial Planner Licenses and Real Estate Notary qualification, and to improve various key businessskills such as management and language skills and financial accounting knowledge.
MBA and LLM - For more than 60 years, we have offered tuition assistance programs to employees inJapan in order to support their self-improvement goals study abroad and obtain Master of Business
Administration (MBA) or Master of Law (LLM) degrees.
Venture company training program - We launched our venture company training program in the fiscal
year ended March 31, 2023 in order to provide our employees with work experience at venture companies
in Japan. Through this program, we encourage employees to gain experience outside of the Nomura
Group and promote a culture of accepting diverse values when they return to the Nomura Group.
M&A University - In our Wholesale Division, our Investment Banking business management hasestablished a knowledge management platform called “M&A University”, through which employees
can build and share knowledge and expertise applicable to practical work such as M&A advisory.
iii Performance appraisal
In all regions including Japan, and across all departments and roles, we are making further efforts toenhance our performance-based compensation system, through ensuring the fairness of performanceappraisal and benchmarking employee productivity against external market data. We also continue to placea strong importance on evaluating our employee performance through how they have demonstrated our corevalues of “Entrepreneurial Leadership”, “Teamwork,” and “Integrity”. Since the fiscal year ended March 31,
2021, we have introduced a standard global objective in the appraisal process for each employee todemonstrate ethics, risk management, compliance, and conduct (our “ERCC” performance objective). We
aim to raise the awareness of our code of conduct (the “Code”) for each employee and to permeate theconcept of the Code throughout our business, thereby creating an environment in which employees canspeak up when they see something wrong. Since the fiscal year ended March 31, 2023, we have also
incorporated fostering risk management culture into performance appraisal.
iv Mobility and Advancement
We actively encourage an entrepreneurial leadership mindset among our employees and their selfmotivated career development. We continue to actively raise awareness of internal opportunities throughpromoting our global internal job posting system which was significantly enhanced in Japan during the
fiscal year ended March 31, 2021. In the fiscal year ended March 31, 2023, more than 200 of our employees
proactively found new opportunities which involve transfers across divisions, business or regions.
We also manage a global pool of talents identified as potential successors to key positions. Along with
developing internal talent as our potential future management team, we also recruit external talent for thoseroles. We have various global programs to assess and develop talent, including Nomura Keiei-juku, which is
our in-house senior management development program in Japan, as well as various other leadershipdevelopment programs offered by external organizations both in Japan and overseas, such as the Nomura
School of Advanced Management.
51

v DEI (Diversity, Equity & Inclusion)
We believe that diversity helps improve our competitiveness, innovation, and advanced risk
management. In July 2016, we adopted our “Declaration on Diversity and Inclusion” initiative, in which wecommitted to create a work environment where all employees can demonstrate their capabilities and realize
their full potential. In October 2022, we further updated it with the addition of the concept of equity to
become our “Group Diversity, Equity and Inclusion Statement”. Equity from our perspective differs fromequality, in that it is less about allocating the exact same resources and opportunities to everyone (equality),
but more about providing the best resources and opportunities to each of our employees according to theirdifferent circumstances and needs, and therefore creating an equitable space where everyone can meet theirobjectives. We aim to create a workplace that provides fair and equitable opportunities for our diverse
employees and which instills a strong sense of belonging.
Our Diversity, Equity & Inclusion Working Group, which consists of representative employees acrossall regions and businesses globally, aims to create such a work environment across the group through both
top-down and bottom-up approaches.
vi Employees’ Ways of Working
We launched our global “Nomura Ways of Working” project, which aims to create a positive working
environment where our employees can maximize their performance without time or location constraints, inthe fiscal year ended in March 2023. We are promoting this project globally across regions based on four
key pillars; culture, people, workplace and technology.
vii Wellbeing
We recognize the importance of our employees’ physical, emotional, mental and financial wellbeing sothat they can realize their full potential, stay motivated and excel in the performance of their duties. We seek
to improve its employee welfare programs, such as childcare and nursing care support, as well as tomaintain and promote employee health, so that employees can continue to work with enthusiasm, including
the development of appropriate working conditions and a comfortable working environment.
We also recognize the need to reduce Absenteeism (1) and Presenteeism (2), and improve WorkEngagement (3) and have set the following measurements in order to monitor employee wellbeing:
Achieve sustainable growth by helping resolve social issues

Nomura Group will implement various measures
towards ensuring the physical, mental and social well-beingof all our people.

Reducing
absenteeism

Measuresagainstlifestyle-relateddiseases

Smoking
cessation
promotion

Reducing
presenteeism
Improving
employeeengagement
and mental
healthImproving work
engagement

Cancerprevention and Promotion ofpatient
women’s healthsupport(1) Absenteeism: The impact of absenteeism is measured by financial losses due to absence from work coursed
by injury or illness, calculated as the ratio of number of sick leave days taken to total working days during afinancial year, multiplied by the total compensation of employees for such financial year.

52

(2) Presenteeism: A condition in which individuals go to work despite being ill or experiencing symptoms of
illness, with negative impacts on business execution and productivity. The figure is calculated based on
responses to the SPQ (Single-Item Presenteeism Question, Tokyo University 1-Item Version).
(3) Work Engagement: A positive, fulfilling, work-related state of mind. This is measured based on deviationfrom the results of the national average of annual stress assessment, which is an annual mandatory
workplace program in Japan to screen for mental health issues in workers.
For Absenteeism, we have not set a specific target because it is important to create an environment
where our employees can be absent from work when they feel unwell. We will continuously evaluate andintroduce new wellbeing initiatives to improve this metrics. We set our targets for Presenteeism and WorkEngagement, 10 (i.e., no more than a 10% productivity loss rate) and 60 (with the national average being50), respectively by the fiscal year ended March 31, 2026. At the moment these measurements are only
applicable to employees of NSC but we will continue to evaluate our implementation plan and extend theinitiatives to other subsidiaries, ultimately expanding the coverage to the Nomura Group as a whole.
We also support the financial wellbeing of our global employees globally by offering various programs
and advices including the granting of compensation awards through employee share ownership plans,
defined contribution pension plan and posting financial wellbeing information on our intranet to encourage
employees to improve their knowledge.
viii Employee Survey
As part of our ongoing efforts to evaluate and improve our various human resource strategies, we haveconducted our Nomura Group Employee Survey annually since the fiscal year ended March 31, 2014. We
believe that the survey provides valuable insights regarding employee engagement and perceptions about
Nomura. The results are reviewed by our senior management and used for refinement or planning of ourhuman resource strategies, programs and practices. In the fiscal year ended March 31, 2023, 85% of ouremployees who participated in the Survey gave a positive response to the question “I am proud to work forthe firm”.
ix Retention
In 2022, the mobility of human resources increased globally in many industries, including in financial
services, and our global employee turnover rate also increased. To enhance engagement, we haveestablished a system to discuss and implement solutions for the issues identified in the Nomura Group
Employee Survey on a departmental and organizational basis.

53

C. Organizational Structure.
The following table lists the Company and its significant subsidiaries and their respective countries ofincorporation as of March 31, 2023. Indentation indicates the principal parent of each subsidiary. Proportions ofownership interest include indirect ownership.
Name

Country/Region

Nomura Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Securities Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Asset Management Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Nomura Trust & Banking Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Babcock & Brown Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Capital Investment Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Investor Relations Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Fiduciary Research & Consulting Co., Ltd. . . . . . . . . . . . . . . . . .
Nomura Research & Advisory Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Business Services Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Properties, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Institute of Capital Markets Research . . . . . . . . . . . . . . . . . . . . .
Nomura Healthcare Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Agri Planning & Advisory Co., Ltd. . . . . . . . . . . . . . . . . . . . . . .
Nomura Financial Products & Services, Inc. . . . . . . . . . . . . . . . . . . . . . . .
Nomura Institute of Estate Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Capital Partners Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Mezzanine Partners Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Design Partners Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Kagayaki Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Asia Pacific Holdings Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura International (Hong Kong) Limited . . . . . . . . . . . . . . . . . . .
Nomura Singapore Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Securities Singapore Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . .
Nomura Australia Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PT Nomura Sekuritas Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Asia Investment (Fixed Income) Pte. Ltd. . . . . . . . . . . . . . .
Nomura Asia Investment (Singapore) Pte. Ltd. . . . . . . . . . . . . . . . . .
Nomura Financial Advisory and Securities (India) Private
Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Holding America Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Securities International, Inc. . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Corporate Research and Asset Management Inc. . . . . . . . .
Nomura America Mortgage Finance, LLC . . . . . . . . . . . . . . . . . . . .
Nomura Global Financial Products, Inc. . . . . . . . . . . . . . . . . . . . . . .
Instinet Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Europe Holdings plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura International plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Bank International plc . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Financial Products Europe GmbH . . . . . . . . . . . . . . . . . . . .
Banque Nomura France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Bank (Luxembourg) S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Bank (Switzerland) Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Europe Finance N.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura European Investment Limited . . . . . . . . . . . . . . . . . . . . . . . . . . .
Laser Digital Group Holdings AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Asia Investment (India Powai) Pte. Ltd. . . . . . . . . . . . . . . . . . . .
Nomura Services India Private Limited . . . . . . . . . . . . . . . . . . . . . . .
Nomura International Funding Pte. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura Orient International Securities Co., Ltd. . . . . . . . . . . . . . . . . . . .
54

Ownership
Interest
(%)

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Hong Kong
Singapore
Singapore
Australia
Indonesia
Singapore
Singapore

—
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
96
100
100

India
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.K.
U.K.
U.K.
Germany
FranceLuxemburg
Switzerland
The Netherlands
U.K.
Switzerland
Singapore
India
Singapore
China

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
51

D. Property, Plants and Equipment.
Our Properties
As of March 31, 2023, our principal head office is located in Tokyo, Japan and occupies 815,531 square feetof office space. Our other major offices in Japan are our Osaka branch office, which occupies 130,416 square
feet, our Nagoya branch office, which occupies 89,567 square feet, and the head office of NAM in Tokyo, which
occupies 128,715 square feet.
As of March 31, 2023, our major offices outside Japan are the head offices of NIP located in London, which
occupies 291,591 square feet, the New York head office of Nomura Securities International, Inc., which occupies
191,324 square feet, and the offices of Nomura International (Hong Kong) Limited located in Hong Kong which
occupies 83,506 square feet. We lease most of our overseas office space.
As of March 31, 2023, the major office of Nomura Services India Private Limited, our specialized service
company in Mumbai, India, occupies 217,668 square feet.
As of March 31, 2023, the aggregate book value of the land and buildings we owned was ¥96 billion, andthe aggregate book value of equipment we owned, including communications and data processing facilities, was¥72 billion.
As of March 31, 2023, we plan to construct a new facility as follows:

Name Location Segment

NHI

Tokyo

Other

Nature of the plan

Nihonbashi 1-Chome
Naka Area Type 1
Urban Area
Redevelopment
Project

Estimate of the Amount ofamount of
expenditures
expenditures already paid
(Millions(Millionsof yen)of yen)120,000

8,531

Method offinancing

Date of start of theactivity

Estimated
date ofcompletion of
the activity

Own funds December 2021 March 2026

Item 4A. Unresolved Staff Comments
We are a large accelerated filer as defined in Rule 12b-2 under the Securities Exchange Act of 1934.
There are no written comments which have been provided by the staff of the Securities and Exchange
Commission regarding our periodic reports under that Act not less than 180 days before the end of the fiscal year
ended March 31, 2023 and which remain unresolved as of the date of the filing of this annual report with theCommission.
Item 5. Operating and Financial Review and Prospects
A. Operating Results.
This discussion and analysis contains forward-looking statements that involve risks, uncertainties andassumptions. Our actual results may differ materially from those anticipated in these forward-looking statements
as a result of factors, including, but not limited to, those under Item 3.D “Risk Factors” and elsewhere in thisannual report.
Business Environment
In the fiscal year ended March 31, 2023, inflation accelerated worldwide. Contributing factors included a
sharp increase in commodity prices sparked by the conflict in Ukraine, as well as supply constraints, including
semiconductor shortages, arising as Western economies reopened after emerging from pandemic conditions. The
55

major central banks of the world, including the U.S. Federal Reserve Board (U.S. Fed), swiftly tightenedmonetary policy to address this accelerated and increasingly protracted inflation. Government bond yields rose in
major developed economies on expectations for further inflation and monetary tightening measures. In addition,
stock markets in major developed economies underwent corrections as the steep rise in market interest rates
depressed valuations and as concerns grew that monetary policy tightening would blunt economic growth.
In the second half of the fiscal year, inflation showed signs of leveling off in the major developed
economies, and expectations for the U.S. Fed to end its rate hikes led to a rally in stock markets. In response to
the Chinese government’s decision at the end of 2022 to end its strict zero-COVID policy, expectations rose for
improvement in global economic growth supported by China’s reopening.
Inflation in Japan rose on the back of higher inflation overseas. As rising interest rates overseas also put
upward pressure on Japanese government bond yields, concerns mounted that the Bank of Japan would become
unable to maintain its yield curve control policy, under which it sets a target level and a tolerable fluctuation
range for 10-year Japanese government bond yields. In December 2022, the Bank of Japan widened the range at
which yields on 10-year JGBs are allowed to fluctuate, from +/-0.25ppt to +/-0.50ppt. Some market participantsinterpreted this move as signaling further policy changes. In the Japanese government bond market, yields
continued to be subject to upward pressure, fueled by expectations for Bank of Japan policy changes amid
persistent speculation that policy revisions would be enacted after the new Bank of Japan governor took charge in
April 2023. The disparities between inflation in Japan and abroad, and the divergence in monetary policy thatreflects these conditions, led to significant depreciation of the yen versus other currencies, with the dollar-yen
rate briefly exceeding 151 yen in October 2022.
Executive Summary«Overall results of business»
We recognized net revenue of ¥1,335.6 billion during the year ended March 31, 2023, a decrease of 2.1% fromthe previous fiscal year. Non-interest expenses increased by 4.3% to ¥1,186.1 billion, income before income taxes
was ¥149.5 billion, and net income attributable to the shareholders of NHI was ¥92.8 billion. Return on equity was
3.1%. Earnings per Share(1) for the year ended March 31, 2023 was ¥29.74, a decrease from ¥45.23 for the year
ended March 31, 2022. We have decided to pay a dividend of ¥12 per share to shareholders of record as ofMarch 31, 2023. As a result, the total annual dividend will be ¥17 per share for the year ended March 31, 2023.
«Management’s assessment of events that had a particular impact on the results of the year»
The fiscal year ended March 2023 was dominated by market uncertainties due to heightened geopoliticalrisks, inflation and central bank monetary policy tightening. Amid this environment, we focused on developing
new areas of business, bolstering our existing businesses and better positioning ourselves to meet the individual
needs of our clients.
In the Retail Division, the flow revenue etc. (consisting of revenue from transactions such as brokeragerevenue, consulting-related revenue and interest income, etc. other than from loans) decreased mainly in the firsthalf amid market uncertainty. On the other hand, Retail continued to provide clients with detailed consulting
services to adapt to the changing environment and our efforts to increase client assets gained traction. As a result,
recurring revenue (which we define as revenue from client assets and ongoing revenue such as investment trusts,
discretionary investments, insurance, loans, level fee assets, etc.) grew year on year by 2 % due to consecutive
net inflows of recurring revenue assets. Our recurring revenue cost coverage ratio (the ratio of recurring revenue
to non-interest expenses) increased from 49 percent to 51 percent.
(Note):
1.
Diluted net income attributable to NHI shareholders per share.
56

In the Investment Management Division, Business revenue remained roughly unchanged year on year as
improved performance in Nomura Babcock & Brown’s aircraft leasing business offset a decline in performancefees. The division also booked continued inflows into core investment trusts and alternative assets. On the other
hand, divisional performance slowed from the previous year due to lower gain/loss related to investment.
In the Wholesale Division, Macro Products underpinned stronger Fixed Income revenues for the full year.
Equities revenues increased as losses related to the U.S. Prime Brokerage Event were no longer present. In
Investment Banking, Advisory revenues remained solid on contributions from equity private placement deals, ina challenging environment with a significant decline in global fee pools, mainly in ECM and M&A. On the other
hand, Wholesale performance was impacted by higher fixed costs due to yen depreciation and inflation.
«Capital policy and shareholder returns»
We plan to maintain appropriate capital ratios and aim for sustainable growth through optimal capital
allocation. As preparatory steps to achieve our management vision, while controlling cost levels, we are investingfor growth to realize our management strategy of expanding the scope of our business from public into private
markets, in order to balance investment and shareholder returns, and maximize shareholder value by improving
productivity and expanding revenue sources.
We strive to pay dividends using a consolidated payout ratio of 30 % of each semi-annual consolidated
earnings as a key indicator. Additionally, we aim for a total payout ratio, which includes dividends and sharebuybacks, of at least 50 %. The total amount of shareholder returns for each fiscal year is determined bycomprehensively taking into account trends in the regulatory environment in Japan and overseas, including thestrengthening of Basel regulations, as well as the consolidated results of our business divisions. Also, we havechanged our dividend policy to strive to pay dividends using a consolidated payout ratio of at least 40 percent ofeach semi-annual consolidated earnings as a key indicator from the fiscal year ending March 31, 2024.
For further details of our dividend policy, refer to Item 5.B. “Liquidity and Capital Resources—CapitalManagement—Dividends”.
«Summary by Segment»
In our Retail Division, net revenue for the year ended March 31, 2023 decreased by 8.5% from the previous
fiscal year to ¥300.2 billion. Non-interest expenses decreased by 0.8% to ¥266.7 billion. As a result, income
before income taxes decreased by 43.5% to ¥33.5 billion. Based on the basic concept of “Enriching clients by
responding to their asset concerns”, our Retail Division has been working on shifting to asset consulting businessin close cooperation with each client with the aim of becoming “the most trusted partner”. Flow revenue etc. wasweak during the fiscal year, as the market environment remained uncertain and sales of stocks and investment
trusts remained at a low level. However, our initiatives to expand our recurring revenue assets are making
progress by seeking to offer consulting services on the entire asset bases of our clients. In addition, we are aiming
to build a sustainable client base and expand our business over the medium to long term by achieving contact
points through workplace financial services, and we have been able to successfully increase the number of clients
we provide services to, including the working generation. Going forward, we will strengthen our initiatives ineach channel, and in addition to asset management, we will strive to enhance our products and services toprovide solutions for a variety of client issues, such as real estate and inheritance.
In our Investment Management Division, net revenue for the year ended March 31, 2023 decreased by
13.1% from the previous fiscal year to ¥128.6 billion. Non-interest expenses increased by 11.2% to ¥85.1 billion.
As a result, income before income taxes decreased by 39.2% to ¥43.5 billion. The Investment Management
Division has been engaged in the broad asset management business while expanding its product lineup andimproving its services to meet the diversifying investment needs of clients. Although the balance of assets undermanagement decreased slightly overall, business revenues remained at the same level as the previous year, due inpart to an improvement in the revenues from aircraft leasing company Nomura Babcock & Brown. On the other57

hand, investment profit decreased from the previous fiscal year due to a decrease in gains related to American
Century Investments and gains on valuation and sales of investee companies of Nomura Capital Partners. During
the fiscal year under review, as part of our expansion into offering private investments, we established Nomura
Real Asset Investment Co., Ltd., which invests in real estate and infrastructure, in a joint venture with Nomura
Real Estate Holdings, Inc. We also acquired shares in New Forests Pty Limited, one of the world’s leading
forestry asset management companies. In addition, we established Nomura Private Capital LLC to launch aprivate asset management business in the United States.
In our Wholesale Division, net revenue for the year ended March 31, 2023 increased by 9.9% from theprevious fiscal year to ¥772.4 billion. Non-interest expenses increased by 18.2% to ¥743.0 billion. As a result,income before income taxes decreased by 60.6% to ¥29.4 billion. In Global Markets, we continued to reinforce
our core strengths across regions, enhanced risk control and governance and focused on providing uninterrupted
service and liquidity to our clients, as they rebalanced and hedged their portfolio in the highly volatile anduncertain markets which experienced a ‘paradigm shift’. We delivered resilient performance, deepened
engagement with clients across flow as well as structured financing and solutions business. In Investment
Banking, client activity was lower than the previous fiscal year due to increased caution among clients in light ofgeopolitical risks and uncertainty in the market environment surrounding monetary policy. As a result, earnings
declined for the full year due to a decline in M&A, and particularly in Equity Capital Markets and ALF.
However, the business continued to engage closely with clients and enhanced Equity Private Placements andPrivate Financing opportunities along with Solutions business to effectively help clients in hedging andmanaging risk.
Progress on Key Performance Indicators (KPIs)«Management Indicators»
Return on Equity
One component of Nomura’s management vision is “achieving sustainable growth by solving social issues”
and we have set Return on Equity (ROE) as one of our most important indicators towards the fiscal year ending
March 31, 2025. After the introduction of the Corporate Governance Code in Japan, the importance ofmanagement having an awareness of capital costs has increased among Japanese companies. In addition, under
the framework of global financial regulations, more effective use of capital is required. As a result, we believethat the optimal allocation of management resources will become even more important for our company in the
future. Accordingly, beginning in the year ended March 31, 2021, we adopted ROE as a key management
indicator, which management uses to track the progress of our sustainable business transformation, along withthe revision of “Fundamental Management Policy” based on the approval at the Board of Directors meeting heldin May 2020.
ROE is defined and calculated as net income attributable to NHI shareholders divided by total NHI
shareholders’ equity. We believe that disclosure of ROE is useful to investors in that it helps them to assessbusiness conditions and our effective use of capital to enhance corporate value.
We have set a target ROE of 8-10% for the fiscal year ending March 31, 2025, reflecting the cost of capitaldemanded by our company. However, ROE may be of limited use in that it does not necessarily reflect financial
soundness. In order to avoid the excessive pursuit of capital efficiency with the aim of improving ROE at theexpense of financial soundness, we attach importance to the creation of corporate value, giving due consideration
to financial soundness, and thereby improving ROE. ROE for the year ended March 31, 2023 decreased to 3.1%
from 5.1% for the prior fiscal year.
Common equity Tier1 capital ratio
There are multiple global financial regulations that we must comply with, including capital regulations
established by Basel Committee on Banking Supervision as interpreted and implemented by the FSA which have58

a direct impact on the way we conduct business. For this reason, we have set a target of maintaining a common
equity Tier 1 capital ratio of at least 11%, so that we will take into consideration the financial soundness
including certain buffer against severe market stress. Our common equity Tier 1 capital ratio decreased to
16.32% as of March 31, 2023 from 17.22% as of March 31, 2022. For further details, on the key capitalrequirements we must follow, see Item 5.B. “Liquidity and Capital Resources—Consolidated Regulatory Capital
Requirements”.
«Indicators by Business Segment»
In addition to the Group KPIs, our management also uses certain divisional specific KPIs to monitor and assess
performance of the divisions.
RetailWe have adopted the following key indicators in the Retail Division to quantify the outcomes of our efforts
and monitor our business: Recurring revenue assets; Net inflows of recurring revenue assets; Flow businessclients; and Services for salaried employees; so that our management will be able to monitor the progress of ourbusinesses and target sustainable and further business growth. We believe that disclosure of those indicators isuseful to investors in that it helps them to assess the progress of the division’s client-facing activities as well asdigest and understand our growth potential.

2021

Recurring revenue assets . . . . . . . . . . . . . . . . . . . . .

¥ 18.22021

Net inflows of recurring revenue assets . . . . . . . . . .

Flow business clients . . . . . . . . . . . . . . . . . . . . . . . .
Services for salaried employees . . . . . . . . . . . . . . . .

Year ended March 31 (Trillions of Japanese Yen)
% Change from
% Change from2022
previous year2023
previous year

¥ 19.6

7.7%¥ 18.7(4.6)%

Year ended March 31 (Billions of Japanese Yen)
% Change from
% Change from2022
previous year2023
previous year¥(191.3) ¥477.2— %¥333.7(30.1)%

2021

Year ended March 31 (Thousands)% Change from
% Change from2022
previous year2023
previous year

1,534
3,242

1,505
3,357

(1.9)%
3.5%

1,446
3,489

(3.9)%
3.9%

Recurring Revenue Assets
Recurring revenue assets are defined by adding related loans to the total amount of assets, such as
investment trusts and discretionary investments, for which management fees and other recurring fees are charged.
The amount of loans totaled approximately ¥721.9 billion within Loans receivable in the consolidated balance
sheets as of March 31, 2023. Total recurring revenue assets as of March 31, 2023 were ¥18.7 trillion, and has
dropped from March 31, 2022 due to market factors.
Net Inflows of Recurring Revenue Assets
Net inflows of recurring revenue assets are defined and calculated by subtracting the amount of sell-offs andoutflows from the amount of purchase and inflows of recurring revenue assets, and is an index used to measure
the expansion of recurring revenue assets excluding changes in market value. The total net inflows of recurring
revenue assets for the fiscal year ended March 31, 2023 was ¥333.7 billion, and we have achieved a net increase
in recurring revenue assets, mainly in services such as investment trusts, discretionary investment.
59

Flow Business Clients
The number of flow business clients is defined as the total number of clients to whom we provide flow business,businesses that generate flow revenues, and is a measure of the growth in the client base that is critical to realizing the
growth in flow revenue, etc. The number of flow business clients as of March 31, 2023 was approximately
1,446 thousand, which is lower than that of March 31, 2022, and the growth of client base is a continuous challenge.
Services for Salaried Employees
Services for salaried employees are defined as the sum of the number of workplace financial services
provided, such as the number of members of the employee stock ownership, accounts derived from the employee
stock ownership (excluding current members) and corporate DC pension plan subscribers, and is an index used tomeasure the expansion of the client base through workplace financial businesses. As of March 31, 2023, thenumber of workplace services provided stood at 3,489 thousand. We have achieved expansion at levels
exceeding our targets, mainly in terms of the increase in number of members of the employee stock ownership,and have expanded our client base which will lead to sustainable growth.
Investment Management Division
We have set the balance of assets under management as a key performance indicator for the Investment
Management Division. The businesses in the Investment Management Division generally earn management orsimilar fees based on the amount of assets under management, meaning that revenue trends for these businesses
tend to follow trends in the amount of assets under management, and our management considers this measure tobe effective in monitoring the progress of these businesses. We also believe that it is an important indicator of
how well investment products are received by investors. Beginning in the fiscal year ending March 31, 2022, wehave also set net inflows as a key performance indicator in the Investment Management Division. We believethat net inflows is an effective measure in monitoring the progress of the division’s asset managementbusinesses, excluding market factors from fluctuations in the balance of assets under management. It is an
important indicator for ascertaining the effectiveness of the division’s measures to expand assets undermanagement and thereby achieve its profit expansion target.
Year ended March 31 (Trillions of Japanese Yen)
% Change from
% Change from
2021
2022
previous year2023
previous year

The balance of assets under management . . . . . . . . . . . .

¥64.7

¥67.9

4.9%

¥67.3

(0.9)%

Year ended March 31 (Billions of Japanese Yen)
% Change from
2022
2023
previous year

Net inflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

2,066

¥

(760)

— %

The balance of assets under management includes the net balance (after deducting duplications) of assets
under management (gross) of Nomura Asset Management Co., Ltd., Nomura Corporate Research and AssetManagement Inc. and Wealth Square., Ltd., as well as third-party investments in funds managed by Nomura
SPARX Investment, Inc., Nomura Mezzanine Partners., Ltd., Nomura Capital Partners Co., Ltd. and Nomura
Research & Advisory Co., Ltd. Net inflows are calculated by subtracting cash outflows from cash inflows. For
these purposes, cash outflows do not include outflows from distributions.
During the fiscal year ended March 31, 2023, the balance of assets under management slightly decreased
due to net outflows and market factors, etc. In the investment trust business, although ETFs experienced outflows
of funds, the balance of publicly offered investment trusts increased, driven by inflows into Japanese equity
funds, balanced funds, and defined contribution pension products. On the other hand, the investment advisorybusiness had marked net outflows, due to a significant outflow of funds from Japanese pension institutions aswell as from investors taking a risk averse stance in response to global monetary tightening.
60Wholesale
We have adopted a cost-to-income ratio and a revenue to modified RWA ratio as additional key
performance indicators in our Wholesale Division. We believe that disclosure of these indicators would be usefulfor investors to assess progress in terms of cost and resource efficiency. Additionally, we use these indicators toevaluate our business based on progress on cost savings initiatives and return on resources.

2021

Cost-to-income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue/modified RWA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2022

91% 89%6.4% 7.0%

Year ended March 31% Change from
% Change fromprevious year2023
previous year

(2)%
0.6%

96%
6.5%

7%
(0.5)%

Cost-to-income ratio
The cost-to-income ratio for the Wholesale Division is calculated by dividing non-interest expenses for thedivision for a given reporting period by net revenue generated by the division for the same period, calculated
consistently, in each case, with our segment presentation for the division. It is monitored at a divisional level to
track operating margins for the business. The ratio increased during the year ended March 31, 2023 compared tothe previous fiscal year as Wholesale costs rose faster than overall revenues. Cost growth was underpinned byyen depreciation and inflation while the revenue increase was driven by strength in Fixed Income and absence oflosses related to the U.S. Prime Brokerage event in Equities. This revenue increase was partially offset by adecline in Investment Banking revenue in line with overall market slowdown. The ratio decreased during the year
ended March 31, 2022 compared to the previous fiscal year primarily due to less impact from the U.S. Prime
Brokerage Event on revenue and cost during the year. However, there was some effect on costs due to hiring inline with strategic initiatives and market-driven base salary adjustments.
Revenue to modified Risk Weighted Asset (RWA) ratio
The revenue to modified RWA ratio for the Wholesale division is calculated by dividing net revenue
generated by our Wholesale Division for a given reporting period (in the case of net revenue for the Wholesale
Division for periods shorter than a full fiscal year, on an annualized basis) by the average balance of modified
RWA used by the Wholesale Division for the same period. The Revenue to modified RWA ratio is monitored to
track our revenue earning capacity against risk resources deployed. Modified RWA is the total of (i) average
daily risk-weighted assets as calculated and presented under Basel regulations as interpreted and implemented by
the FSA and (ii) an adjustment equal to the regulatory adjustment to common equity tier1 (CET1) capital
calculated and presented under Basel regulations as interpreted and implemented by the FSA divided by ourinternal minimum capital ratio target of 12.5%. (daily average for the accounting period), which we use to
estimate the amount of deductions to RWA generated by the division. The revenue to modified RWA as we
calculate and present it may differ from similarly titled measures presented by our competitors due to theapproach and methodologies used for calculation. Our credit risk-weighted assets and operational risk equivalent
assets are calculated by using the foundation Internal Ratings-Based Approach and the Standardized Approach,respectively, with the approval of the FSA. Furthermore, Market risk equivalent assets are calculated by using
the Internal Models Approach for market risk. The conversion of Wholesale RWA to modified RWA is based on
adjustments reflecting our internal minimum capital ratio target. Moreover, the usefulness of this ratio may belimited in that the adjustment applied to RWA, which is intended to capture the appropriate amount of RWA toattribute to our businesses (as opposed to RWA as calculated for regulatory capital purposes), is an estimate
incorporating our internal risk tolerance; however, this adjustment may not appropriately reflect the actual
regulatory capital impact of the charged assets that are used by our business. Revenue to modified RWA
decreased for the year ended March 31, 2023 compared to the previous fiscal year, with increase in RWA mainly
from yen depreciation more than offsetting the impact of increase in overall revenues. The ratio increased for theyear ended March 31, 2022 compared to the previous fiscal year primarily because of less impact from the U.S.
Prime Brokerage Event on revenue as well as increased Investment Banking revenue.
61

Results of Operations
Overview
The following table provides selected consolidated statements of income information for the years ended
March 31, 2021, 2022 and 2023.
Millions of yen, except percentages
Year ended March 31% Change from2022
previous year
2023

2021

Non-interest revenues:
Commissions . . . . . . . . . . . . . . . . . ¥ 376,897
Fees from investment banking . . .
108,681
Asset management and portfolio
service fees . . . . . . . . . . . . . . . .
230,047
Net gain on trading . . . . . . . . . . . .
310,040
Gain on private equity and debt
investments . . . . . . . . . . . . . . . .
12,734Gain (loss) on investments inequity securities . . . . . . . . . . . .
14,053
Other . . . . . . . . . . . . . . . . . . . . . . .
208,317% Change fromprevious year

¥ 332,344
149,603(11.8)%
37.7¥ 279,857
113,208(15.8)%(24.3)

269,985368,79917.4
19.0

271,684
563,269

0.6
52.7

30,768141.6

14,504(52.9)

5,446
152,832(61.2)(26.6)(1,426)130,940—(14.3)

Total Non-interest revenues . . . . . . . . .
Net interest revenue . . . . . . . . . . . . . . .

1,260,769
141,1031,309,777
54,1133.9(61.7)

1,372,036(36,459)

4.8—

Net revenue . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . .

1,401,872
1,171,201

1,363,890
1,137,267

(2.7)
(2.9)

1,335,577
1,186,103

(2.1)
4.3

Income before income taxes . . . . . . . . .
Income tax expense . . . . . . . . . . . . . . . .

230,671
70,274

226,623
80,090(1.8)
14.0

149,474
57,798(34.0)(27.8)Net income . . . . . . . . . . . . . . . . . . . . . .
Less: Net income (loss) attributable tononcontrolling interests . . . . . . . . . .

¥ 160,397¥ 146,533(8.6)%

91,676(37.4)%

7,281

3,537

(1,110)—¥ 153,116¥ 142,996

92,786(35.1)%Net income attributable to NHI
shareholders . . . . . . . . . . . . . . . . . . .
Return on equity . . . . . . . . . . . . . . . . . .

5.7%

5.1%

¥

(51.4)(6.6)%¥

3.1%

Net revenue decreased from the year ended March 31, 2022 to the year ended March 31, 2023. Thisdecrease was primarily driven by Commissions from our Retail Division and Net interest revenue. The decreasein Commissions was primarily due to a decrease in commissions received from brokerage for equity and equityrelated products and distribution of investment trusts. Fees from investment banking decreased during the year
ended March 31, 2023 primarily due to a decrease in revenue from underwriting and sales commission. Assetmanagement and portfolio service fees increased slightly but remained generally flat during the year ended
March 31, 2023. Net gain on trading increased during the year ended March 31, 2023, primarily due to losses
related to the U.S. Prime Brokerage Event disappeared. Net gain on trading also included total losses of¥3.4 billion attributable to changes in Nomura’s own creditworthiness with respect to derivative liabilities
primarily due to a tightening of Nomura’s credit spread. Gain (loss) on investments in equity securities decreased
during the year ended March 31, 2023, primarily due to a result of market correction during the year ended
March 31, 2023. Gain (loss) on investments in equity securities includes both realized and unrealized gains andlosses on investments in equity securities held for operating purposes which are our investments in unaffiliatedcompanies, which we hold on a long-term basis in order to promote existing and potential business relationships.
Other decreased during the year ended March 31, 2023, primarily due to less gain from sale of affiliatedcompanies.
62

Net revenue decreased from the year ended March 31, 2021 to the year ended March 31, 2022. This decrease is
primarily driven by Commissions earned by Retail Division. Commissions decreased from the year ended March 31,
2021 to the year ended March 31, 2022 primarily due to a decrease in commissions received from the brokeragecommissions from equity and equity-related products and the distribution of investment trusts. Fees from investmentbanking increased from the year ended March 31, 2021 to the year ended March 31, 2022 primarily due to anincrease in revenue from advisory services. Asset management and portfolio service fees increased from the year
ended March 31, 2021 to the year ended March 31, 2022 mainly due to increases in recurring revenue in Retail
Division and in revenue from high level of asset under management in Investment Management Division. Net gain
on trading increased from the year ended March 31, 2021 to the year ended March 31, 2022, primarily due to the
U.S. Prime Brokerage Event subsided. Net gain on trading also included total gains of ¥8.2 billion attributable tochanges in Nomura’s own creditworthiness with respect to derivative liabilities primarily due to a widening of
Nomura’s credit spread. Gain (loss) on investments in equity securities decreased from the year ended March 31,
2021 to the year ended March 31, 2022, primarily due to a result of market appreciation during the year ended
March 31, 2021, not repeated in March 31, 2022. Gain (loss) on investments in equity securities includes both
realized and unrealized gains and losses on investments in equity securities held for operating purposes which are
our investments in unaffiliated companies, which we hold on a long-term basis in order to promote existing andpotential business relationships. Other decreased from the year ended March 31, 2021 to the year ended March 31,
2022, primarily due to American Century Investments related gain/loss.
Net interest revenue fluctuates by the balance and structure of total assets and liabilities, which includes
trading assets and financing and lending transactions, and term structure and volatility of interest rates. Net
interest revenue is an integral component of trading activity. In assessing the profitability of our overall businessand of our Global Markets business in particular, we view Net interest revenue and Non-interest revenues inaggregate. For the year ended March 31, 2023, interest revenue, including a dividend from our investment in
American Century Investments increased by 292%, and interest expense increased by 400% from the year ended
March 31, 2022. As a result, Net interest revenue for the year ended March 31, 2023 decreased from the year
ended March 31, 2022. For the year ended March 31, 2022, interest revenue, including a dividend from ourinvestment in American Century Investments decreased by 20%, and interest expense increased by 7% from theyear ended March 31, 2021. As a result, Net interest revenue for the year ended March 31, 2022 decreased fromthe year ended March 31, 2021.
Non-interest expenses for the year ended March 31, 2023 increased from the year ended March 31, 2022,
primarily due to increase in Compensation and benefits even though the credit losses related to the U.S. Prime
Brokerage Event disappeared compared to previous fiscal year.
Non-interest expenses for the year ended March 31, 2022 decreased from the year ended March 31, 2021,
primarily due to the credit losses related to the U.S. Prime Brokerage Event subsiding compared to previous
fiscal year and the absence of an impairment loss of ¥47.7 billion on our equity method investments in Nomura
Real Estate Holdings.
We are subject to various taxes in Japan and with effect from April 1, 2022 we have applied the Group Tax
Sharing system. The Group Tax Sharing system is only available for a national tax. Our domestic effective
statutory tax rate was approximately 31% for the fiscal year ended March 31, 2021, 2022 and 2023, respectively.
Our foreign subsidiaries are subject to the income taxes of the jurisdictions in which they operate, which are
generally lower than those in Japan. The Company’s effective statutory tax rate in any one year is therefore
dependent on our geographic mix of profits and losses and also on the specific tax treatment applicable in eachjurisdiction.
Income tax expense for the year ended March 31, 2023, represented an effective tax rate of 38.7%. The
significant factors causing the difference between the effective tax rate of 38.7% and the effective statutory tax
rate of 31% was the changes in deferred tax valuation allowances which increased the effective tax rate by
11.3%, partially offset by the non-taxable income which decreased the effective tax rate by 4.7%.
63

Income tax expense for the year ended March 31, 2022, represented an effective tax rate of 35.3%. The
significant factors causing the difference between the effective tax rate of 35.3% and the effective statutory tax rateof 31% was the changes in deferred tax valuation allowances which increased the effective tax rate by 18.0%,
partially offset by the effect of changes in foreign tax laws which decreased the effective tax rate by 14.4%.
Income tax expense for the year ended March 31, 2021, represented an effective tax rate of 30.5%. The
significant factors causing the difference between the effective tax rate of 30.5% and the effective statutory tax
rate of 31% was the effect of the tax benefit recognized on the outside basis differences for investment in
subsidiaries and affiliates which decreased the effective tax rate by 8.7%, partially offset by changes in deferred
tax valuation allowances which increased the effective tax rate by 8.7%.
Results by Business Segment
We established our Investment Management Division to replace our former Asset Management Divisionand the Merchant Banking Division on April 1, 2021. Accordingly, our operating management and management
reporting are prepared based on our Retail, Investment Management and Wholesale Divisions. We havedisclosed business segment information in accordance with this structure.
Net gain (loss) related to economic hedging transactions, a part of realized gain (loss) on investments inequity securities held for operating purposes, our share of equity in the earnings of affiliates, corporate items andother financial adjustments are included as “Other” operating results outside of business segments in our segment
information. A part of unrealized gain (loss) on certain investments in equity securities held for operating
purposes is classified as a reconciling item outside of our segment information. The following segment
information should be read in conjunction with Item 4.B “Business Overview” of this annual report and Note 20“Segment and geographic information” in our consolidated financial statements included in this annual report.
The reconciliation of our segment results of operations and consolidated financial statements is provided in Note
20 “Segment and geographic information” in our consolidated financial statements included in this annual report.
RetailOperating Results of Retail

2021

2022

Millions of yen
Year ended March 31% Change fromprevious year2023

% Change fromprevious year

Non-interest revenue . . . . . . . . . . . . . . . . . . . ¥366,271
Net interest revenue . . . . . . . . . . . . . . . . . . . .
2,538¥324,642
3,343(11.4)%
31.7¥297,496
2,695(8.4)%(19.4)Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . .

368,809
276,480

327,985
268,745(11.1)(2.8)

300,191
266,695

(8.5)
(0.8)

Income before income taxes . . . . . . . . . . . . . .

¥ 92,329¥ 59,240(35.8)%¥ 33,496(43.5)%Net revenue decreased from the year ended March 31, 2022 to the year ended March 31, 2023 primarily due
to a decrease in commissions earned from brokerage commissions and the distribution of investment trusts.
Net revenue decreased from the year ended March 31, 2021 to the year ended March 31, 2022 primarily due
to a decrease in commissions earned from brokerage commissions and the distribution of investment trusts.
Non-interest expenses decreased from the year ended March 31, 2022 to the year ended March 31, 2023
primarily due to a decrease in bonus expense driven by a decrease in revenue.

64

Non-interest expenses decreased from the year ended March 31, 2021 to the year ended March 31, 2022
primarily due to a decrease in bonus expense driven by a decrease in revenue.
The following table shows the breakdown of Retail non-interest revenues for the year ended March 31,
2021, 2022 and 2023.

2021

2022

Millions of yen
Year ended March 31% Change fromprevious year2023

% Change fromprevious year

Commissions . . . . . . . . . . . . . . . . . . . . . . . . . ¥187,678
Brokerage commissions . . . . . . . . . . . . .
92,589Commissions for distribution of
investment trusts . . . . . . . . . . . . . . . . .
68,352Other commissions . . . . . . . . . . . . . . . . .
26,737
Net gain on trading . . . . . . . . . . . . . . . . . . . . .
58,357
Fees from investment banking . . . . . . . . . . . .
20,354
Asset management fees . . . . . . . . . . . . . . . . .
88,996
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,886¥138,525
67,419(26.2)%(27.2)¥112,455
50,901(18.8)%(24.5)

43,53727,56943,981
19,003
109,300
13,833(36.3)
3.1(24.6)
(6.6)
22.8
27.1

30,18331,371
44,171
16,184
108,085
16,601(30.7)
13.8
0.4(14.8)(1.1)
20.0

Non-interest revenues . . . . . . . . . . . . . . . . . . . ¥366,271¥324,642(11.4)%¥297,496(8.4)%

Commissions decreased from the year ended March 31, 2022 to the year ended March 31, 2023, primarily
due to decrease in brokerage commissions received from equity and equity-related products and in commissions
for distribution of investment trusts. Net gain on trading slightly increased from the year ended March 31, 2022
to the year ended March 31, 2023, but remained mainly unchanged.
Commissions decreased from the year ended March 31, 2021 to the year ended March 31, 2022, primarily
due to decrease in brokerage commissions received from equity and equity-related products and in commissions
for distribution of investment trusts. Net gain on trading decreased from the year ended March 31, 2021 to theyear ended March 31, 2022, primarily due to a decrease in income related to debt securities.
Retail Client Assets
The following table presents amounts and details regarding the composition of Retail client assets as ofMarch 31, 2022 and 2023. Retail client assets consist of clients’ assets under management and assets relating tovariable annuity insurance products.
Trillions of yen
Year ended March 31, 2022

Gross outflows

Marketappreciation /(depreciation)

Balance at
end of year

¥19.5
15.5
2.4
0.3
0.2
1.1

¥(19.8)(13.3)
(2.1)
(0.6)
0.0
(0.5)

¥(4.5)
(2.6)
0.3
(0.2)
0.0
(0.2)

¥ 77.5
17.7
10.8
7.5
1.3
7.3

¥39.0

¥(36.3)¥(7.2)¥122.1

Balance at
beginning of year

Gross inflows

Equities . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . .
Equity investment trusts . . . . . . . . . . . . .
Debt investment trusts . . . . . . . . . . . . . .
Overseas mutual funds . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 82.3
18.1
10.2
8.0
1.1
6.9

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥126.665

Trillions of yen
Year ended March 31, 2023

Gross outflows

Marketappreciation /(depreciation)

Balance at
end of year

¥21.4
15.5
2.8
0.1
0.1
1.0

¥(18.6)(22.9)
(2.6)
(0.7)
(0.1)
(0.5)

¥(2.3)
8.2
(0.8)
(0.1)
(0.1)
(0.3)

¥ 78.0
18.5
10.2
6.8
1.2
7.5

¥40.9

¥(45.4)¥ 4.6¥122.2

Balance at
beginning of year

Gross inflows

Equities . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . .
Equity investment trusts . . . . . . . . . . . . .
Debt investment trusts . . . . . . . . . . . . . .
Overseas mutual funds . . . . . . . . . . . . . .
Others . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 77.5
17.7
10.8
7.5
1.3
7.3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥122.1Retail client assets increased from March 31, 2022 to March 31, 2023. The balances of our clients’ equity
and equity-related products increased ¥0.5 trillion from March 31, 2022 to ¥78.0 trillion as of March 31, 2023,
mainly due to increase of inflows during the year. The balances of our clients’ investment trusts decreased by¥1.4 trillion from ¥19.6 trillion as of March 31, 2022 to ¥18.2 trillion as of March 31, 2023.
Retail client assets decreased from March 31, 2021 to March 31, 2022. The balances of our clients’ equity
and equity-related products decreased from March 31, 2021 to ¥77.5 trillion as of March 31, 2022, mainly due tomarket depreciation during the year. The balances of our clients’ investment trusts increased by ¥0.3 trillion from
¥19.3 trillion as of March 31, 2021 to ¥19.6 trillion as of March 31, 2022.
Investment Management
Operating Results of Investment Management

2021

2022

Millions of yen
Year ended March 31% Change fromprevious year2023

% Change fromprevious year

Non-interest revenue . . . . . . . . . . . . . . . . . . . ¥153,523
Net interest revenue . . . . . . . . . . . . . . . . . . . .
9,627¥129,848
18,145(15.4)%
88.5¥120,096
8,463(7.5)%(53.4)Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . .

163,150
72,142

147,993
76,478(9.3)
6.0

128,559
85,064(13.1)
11.2

Income before income taxes . . . . . . . . . . . . . .

¥ 91,008¥ 71,515(21.4)%¥ 43,495(39.2)%Net revenue decreased from the year ended March 31, 2022 to the year ended March 31, 2023, primarily due
to decrease in unrealized gains recognized in respect of our investment in American Century Investments.
Net revenue decreased from the year ended March 31, 2021 to the year ended March 31, 2022, primarily due
to decrease in unrealized gains recognized in respect of our investment in American Century Investments.
Non-interest expenses increased from the year ended March 31, 2022 to the year ended March 31, 2023,
primarily due to increases in non-personnel expenses driven by change in foreign exchange rates and inflation.
Non-interest expenses increased from the year ended March 31, 2021 to the year ended March 31, 2022,
primarily due to an increases in personnel expenses driven by an increase in business revenue.

66

The breakdown of net revenue for Investment Management is as follows.
Millions of yen
Year ended March 31% Change fromprevious year2023

% Change fromprevious year

2021

2022

¥111,946
51,204¥119,920
28,0737.1%(45.2)¥120,664
7,895

0.6%
(71.9)Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . ¥163,150¥147,993(9.3)%¥128,559(13.1)%

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

Note: Prior period amounts have been reclassified to conform to the current year presentation.
(1) Consists of division revenue, other than investment gain/loss, including revenue generated by our asset
management business (excluding gains and losses related to our investment in American Century
Investments), revenues generated by Nomura Babcock & Brown Co., Ltd.’s aircraft leasing-related
businesses and management fee revenues generated from our private equity and other investment businesses(2) Consists of division revenue attributable to investments (including fair value fluctuations, funding cost anddividends), including gains and losses related to our investment in American Century Investments, ourinvestments held in our private equity and other investment businesses.
The following table presents assets under management of each principal Nomura entity within our
Investment Management Division as of March 31, 2022 and 2023.
Billions of yen
Year ended March 31, 2022
MarketBalance atappreciation / Balance at
beginning of year Gross inflows Gross outflows (depreciation) end of year

Nomura Asset Management Co., Ltd . . . . . . . .
Nomura Corporate Research and AssetManagement Inc. etc . . . . . . . . . . . . . . . . . .

¥66,158¥26,883¥(25,549)¥2,100¥69,592

3,300

944

(690)

313

3,867

Combined total . . . . . . . . . . . . . . . . . . . . . . . . .
Shared across group companies . . . . . . . . . . . .

69,458(4,792)

27,827(1,462)(26,239)
1,163

2,413
(455)

73,459(5,546)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥64,666¥26,365¥(25,076)¥1,958¥67,913

Billions of yen
Year ended March 31, 2023
MarketBalance atappreciation / Balance at
beginning of year Gross inflows Gross outflows (depreciation) end of year

Nomura Asset Management Co., Ltd . . . . . . . .
Nomura Corporate Research and AssetManagement Inc. etc . . . . . . . . . . . . . . . . . .

¥69,592¥23,168¥(24,762)¥1,094¥69,092

3,867

1,040

(1,074)35

3,868

Combined total . . . . . . . . . . . . . . . . . . . . . . . . .
Shared across group companies . . . . . . . . . . . .

73,459(5,546)24,208(1,409)(25,836)
1,382

1,129
(115)

72,960(5,688)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥67,913¥22,799¥(24,454)¥1,014¥67,272

Asset under management was largely unchanged the year ended March 31, 2022 to the year ended
March 31, 2023.

67

The following table presents NAM’s market share, in terms of net asset value, of the Japanese publicly
offered investment trusts market as of March 31, 2021, 2022 and 2023.
2021

March 31
2022

2023

Total of publicly offered investment trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28%
27%
27%
Equity investment trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26%
25%
25%
Debt investment trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44%
44%
44%
(Source) Nomura’s own calculation based on data published by the Investment Trusts Association, Japan.
Investment trust assets included in assets under management by NAM were ¥48.0 trillion as of March 31,
2023 and were largely unchanged the year ended March 31, 2022 to the year ended March 31, 2023.
Investment trust assets included in assets under management by NAM were ¥47.9 trillion as of March 31,
2022, a ¥1.3 trillion, 3% increased from March 31, 2021. This increase was due to net inflows of ¥1.0 trillion andmarket appreciation of ¥0.3 trillion. The balances of certain investment trusts, including TOPIX Exchange
Traded Fund increased.
Wholesale
Operating Results of Wholesale
The operating results of our Wholesale Division comprise the combined results of our Global Markets andInvestment Banking businesses. Our Global Markets business comprises our Fixed Income and Equities
businesses.

2021

2022

Millions of yen
Year ended March 31% Change fromprevious year2023

% Change fromprevious year

Non-interest revenue . . . . . . . . . . . . . . . . . . . ¥524,019
Net interest revenue . . . . . . . . . . . . . . . . . . . .
167,337¥617,227
85,82817.8%(48.7)¥809,681(37,301)

31.2%—

Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . .

691,356
627,051

703,055
628,5631.7
0.2

772,380743,011

9.9
18.2

Income before income taxes . . . . . . . . . . . . . .

¥ 64,305¥ 74,492

15.8%¥ 29,369(60.6)%Net revenue increased from the year ended March 31, 2022 to the year ended March 31, 2023. Fixed Income
revenues in Global Markets increased due to a strong performance in macro products. Equities revenues in
Global Markets increased primarily due to disappearance of the losses related to the U.S. Prime Brokerage Event
recognized during the previous year. Investment Banking revenues decreased primarily due to decreases incommissions from underwriting and sales during the year ended March 31, 2023.
Net revenue increased from the year ended March 31, 2021 to the year ended March 31, 2022. Fixed Income
revenues in Global Markets decreased due to a slowdown of strong performance in macro products in the year
ended March 31, 2021. Equities revenues in Global Markets decreased primarily due to losses related to the U.S.
Prime Brokerage Event. Investment Banking revenues increased primarily due to increases in advisory businessdeals during the year ended March 31, 2022.
Non-interest expenses increased from the year ended March 31, 2022 to the year ended March 31, 2023,
primarily due to the impact of a weaker yen on the translation of non-yen denominated oversea expenses and anincrease in compensation expenses compared to previous year.
68Non-interest expenses slightly increased from the year ended March 31, 2021 to the year ended March 31,
2022, primarily due to increases in yen-denominated expenses at overseas driven by the weaker yen, partially
offset with credit losses related to the U.S. Prime Brokerage Event subsiding compared to the year ended
March 31, 2021.
The following table presents a breakdown of net revenue for Wholesale for the year ended March 31, 2021,
2022 and 2023.

2021

2022

Millions of yen
Year ended March 31% Change fromprevious year2023

% Change fromprevious year

Wholesale net revenue:
Global Markets net revenue . . . . . . . . . . . . . . ¥575,533
Investment Banking net revenue . . . . . . . . . .
115,823¥556,417
146,638(3.3)%
26.6¥656,298
116,082

18.0%(20.8)Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . ¥691,356¥703,055

1.7%¥772,380

9.9%

Global Markets
We have a proven track record in sales and trading of debt securities, equity securities, and foreignexchange, as well as derivative products referencing these financial instruments to domestic and overseas
institutional investors. In response to the increasingly diverse and complex needs of our clients, we continue toenhance our trading and product origination capabilities to offer superior products not only to domestic andoverseas institutional investors, but also to our Retail and Investment Management Divisions. This crossdivisional approach also extends to Investment Banking, where close collaboration leads to high value-adding
solutions for our clients. These ties enable us to identify the types of product of interest for investors and develop
and deliver products that meet their needs. We continue to develop extensive ties with institutional investors inJapan and international markets, as well as wealthy investors, public-sector agencies, and regional financial
institutions in Japan, and government agencies, financial institutions, and corporations around the world.
Net revenue increased from the year ended March 31, 2022 to the year ended March 31, 2023. In our Fixed
Income businesses, Net revenue increased from ¥326,918 million for the year ended March 31, 2022 to¥402,435 million for the year ended March 31, 2023 primarily due to a strong performance in macro products
compared to the previous fiscal year. In our Equities business, Net revenue increased from ¥229,499 million forthe year ended March 31, 2022 to ¥253,863 million for the year ended March 31, 2023, primarily due todisappearance of the losses related to the U.S. Prime Brokerage Event compared to the previous fiscal year.
Net revenue decreased from the year ended March 31, 2021 to the year ended March 31, 2022. In our Fixed
Income businesses, Net revenue decreased from ¥441,893 million for the year ended March 31, 2021 to¥326,918 million for the year ended March 31, 2022 primarily due to a slowdown from last year’s strong
performance in macro products. In our Equities business, Net revenue increased from ¥133,640 million for theyear ended March 31, 2021 to ¥229,499 million for the year ended March 31, 2022, primarily due to losses
related to the U.S. Prime Brokerage Event subsiding compared to the year ended March 31, 2021.
Investment Banking
We provide a broad range of investment banking services, such as underwriting and advisory activities. We
underwrite offerings of debt, equity and other financial instruments in major financial markets, such as Asia,
Europe and the U.S. We have been enhancing our M&A and financial advisory expertise to secure more highprofile deals both across and within regions. We develop and forge solid relationships with clients on a long-termbasis by providing extensive resources in a seamless fashion to facilitate bespoke solutions.
69

Net revenue decreased from the year ended March 31, 2022 to the year ended March 31, 2023, primarily due
to decreases in underwriting and sales commission during the year.
Net revenue increased from the year ended March 31, 2021 to the year ended March 31, 2022, primarily due
to increases in advisory business during the year.
Other Operating Results
Other operating results include net gain (loss) related to economic hedging transactions, a part of realized
gain (loss) on investments in equity securities held for operating purposes, equity in earnings of affiliates,
corporate items, and other financial adjustments. See Note 20 “Segment and geographic information” in ourconsolidated financial statements included within this annual report.
Income (loss) before income taxes in Other operating results were ¥(28,516) million for the year ended
March 31, 2021, ¥15,753 million for the year ended March 31, 2022 and ¥73,385 million for the year ended
March 31, 2023, primarily due to recognizing income of approximately ¥28.0 billion from the sale of a part of its
shares held in Nomura Research Institute, Ltd. and disappearance of loss of approximately ¥62.0 billion related
to legacy transactions in the U.S. from before the global financial crisis (2007 – 2008) that was recognizedincluding legal expenses as well as certain transactions intended to mitigate future losses in previous year.
Other operating results for the year ended March 31, 2023 include the negative impact of our own
creditworthiness on derivative liabilities which resulted in losses of ¥5,385 million and gains from changes incounterparty credit spreads of ¥4,671 million.
Other operating results for the year ended March 31, 2022 include the positive impact of our own
creditworthiness on derivative liabilities which resulted in gains of ¥6,731 million and losses from changes incounterparty credit spreads of ¥1,249 million.
Other operating results for the year ended March 31, 2021 include the negative impact of our own
creditworthiness on derivative liabilities which resulted in losses of ¥12,052 million and gains from changes incounterparty credit spreads of ¥11,988 million.
Summary of Regional Contribution
For a summary of our net revenue, income (loss) before income taxes and long-lived assets by geographic
region, see Note 20 “Segment and geographic information” in our consolidated financial statements included inthis annual report.

70

Selected Financial Data
The following table presents selected financial information as of and for the years ended March 31, 2019,2020, 2021, 2022 and 2023 which is derived from our consolidated financial statements.
Millions of yen, except per share data and percentages
Year ended March 31
2019
2020
2021
2022
2023

Statement of income data:
Revenue . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,835,118 ¥ 1,952,482 ¥ 1,617,235 ¥ 1,593,999 ¥ 2,486,726
Interest expense . . . . . . . . . . . . . . . . . .
718,348664,653
215,363
230,109
1,151,149
Net revenue . . . . . . . . . . . . . . . . . . . . .
1,116,770
1,287,829
1,401,872
1,363,890
1,335,577
Non-interest expenses . . . . . . . . . . . . .
1,154,471
1,039,568
1,171,201
1,137,267
1,186,103
Income (loss) before income taxes . . .
(37,701)
248,261
230,671
226,623
149,474
Income tax expense . . . . . . . . . . . . . . .
57,01028,89470,27480,09057,798Net income (loss) . . . . . . . . . . . . . . . . ¥ (94,711) ¥ 219,367 ¥ 160,397 ¥ 146,533 ¥
91,676
Less: Net income (loss) attributable tononcontrolling interests . . . . . . . . . .
5,731
2,369
7,281
3,537
(1,110)Net income (loss) attributable to NHI
shareholders . . . . . . . . . . . . . . . . . . . ¥ (100,442) ¥ 216,998 ¥ 153,116 ¥ 142,996 ¥
92,786
Balance sheet data (period end):
Total assets . . . . . . . . . . . . . . . . . . . . .
Total NHI shareholders’ equity . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . . .

¥40,969,439
2,631,061
2,680,793
594,493¥43,999,815
2,653,467
2,731,264
594,493¥42,516,480
2,694,938
2,756,451
594,493¥43,412,156
2,914,605
2,972,803
594,493¥47,771,802
3,148,567
3,224,142
594,493

Per share data:
Net income (loss) attributable to NHI
shareholders—basic . . . . . . . . . . . . ¥(29.90) ¥67.76 ¥
50.11 ¥
46.68 ¥
30.86
Net income (loss) attributable to NHI
shareholders—diluted . . . . . . . . . . .
(29.92)
66.20
48.63
45.23
29.74
Total NHI shareholders’ equity(1) . . . .
794.69873.26879.79965.801,048.24
Cash dividends(1) . . . . . . . . . . . . . . . . .
6.00
20.00
35.00
22.00
17.00
Cash dividends in USD(2) . . . . . . . . . . $0.05 $
0.19 $
0.32 $
0.18 $
0.13
Weighted average number of shares
outstanding (in thousands)(3) . . . . . .
3,359,565
3,202,370
3,055,526
3,063,524
3,006,744(3.7%)
8.2%
5.7%
5.1%
3.1%
Return on equity(4): . . . . . . . . . . . . . . .
(1) Calculated using the number of shares outstanding at year end.
(2) Calculated using the Japanese Yen—U.S. Dollar exchange rate as of the respective fiscal year end date, thenoon buying rate in New York City for cable transfers in foreign currencies as certified for customs
purposes by the Federal Reserve Bank of New York.
(3) The number shown is used to calculate basic earnings per share.
(4) Calculated as net income (loss) attributable to NHI shareholders divided by total NHI shareholders’ equity.
Regulatory Capital Requirements
Many of our business activities are subject to statutory capital requirements, including those of Japan, theU.S., the U.K. and certain other countries in which we operate. For further discussion on statutory capitalrequirements, see Note 17 “Regulatory requirements” in our consolidated financial statements included in thisannual report.

71

Translation Exposure
A significant portion of our business is conducted in currencies other than Japanese Yen—mostsignificantly, U.S. Dollars, British pounds and Euros. We prepare financial statements of each of ourconsolidated subsidiaries in its functional currency, which is the currency of the primary economic environment
in which the entity operates. Translation exposure is the risk arising from the effect of fluctuations in exchange
rates on the net assets of our foreign subsidiaries. Translation exposure is not recognized in our consolidated
statements of income unless and until we dispose of, or liquidate, the relevant foreign subsidiary.
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 offinancing is usually initially provided through a commitment, we have both funded and unfunded exposures onthese 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 March 31, 2023.
Millions of yen
March 31, 2023
FundedUnfunded

Total

Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥14,654 ¥ 58,606 ¥ 73,260
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,684
187,334
212,018
Asia and Oceania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,230
3,718
9,948
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥45,568¥249,658¥295,226

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

72

Deferred Tax Assets
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, in the consolidated balance sheets as of March 31, 2023.
Millions of yen
March 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 38,596
7,458
123,841
17,30874,043414,084
48,32919,645Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less—Valuation allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

743,304(515,068)

Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

228,236

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

100,335
118,314
2,936
22,54047,775
7,524

Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

299,424

Net deferred tax assets (liabilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (71,188)

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.
B. 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 asignificantly 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 marketwide 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 andwith 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 marketwide stress and in addition, under Nomura-specific stress, seeks to ensure enough continuous liquidity to meet all73

funding requirements and unsecured debt obligations across one year and 30-day periods, respectively, without
raising funds through unsecured funding or through the liquidation of assets. We are required to meet regulatory
notice on the liquidity coverage ratio and the net stable funding ratio issued by the FSA.
We have in place a number of liquidity risk management frameworks that enable us to achieve our primaryliquidity 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 our liquidity management based on
decisions made by the EMB.
1.

Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio.

We centrally control residual cash held at Nomura Group entities for effective liquidity utilization purposes.
As for the usage of funds, the CFO decides the maximum amount of available funds, provided without posting
any collateral, for allocation within Nomura and the EMB allocates the funds to each business division. Global
Treasury monitors usage by businesses and reports to the EMB.
In order to enable us to transfer funds smoothly between group entities, we limit the issuance of securities
by regulated broker-dealers or banking entities within the Nomura Group and seek to raise unsecured funding
primarily through the Company or through unregulated subsidiaries. The primary benefits of this strategy include
cost minimization, wider investor name recognition and greater flexibility in providing funding to various
subsidiaries across the Nomura Group.
To meet any potential liquidity requirement, we maintain a liquidity portfolio, managed by Global Treasury
apart from other assets, in the form of cash and highly liquid, unencumbered securities that may be sold or
pledged to provide liquidity. As of March 31, 2023, our liquidity portfolio was ¥7,654.3 billion which
sufficiently met liquidity requirements under the stress scenarios.
The following table presents a breakdown of our liquidity portfolio by type of financial assets as ofMarch 31, 2022 and 2023 and averages maintained for the years ended March 31, 2022 and 2023. Yearly
averages are calculated using month-end amounts.
Average foryear ended
March 31, 2022

Billions of yen
Average forMarch 31,year ended
2022
March 31, 2023

March 31,2023

Cash, cash equivalents and time deposits(1) . . . . . . . . . . . . .
Government debt securities . . . . . . . . . . . . . . . . . . . . . . . . .
Others(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,151.6
3,629.8
298.3¥2,997.5
3,674.2
402.5¥3,155.5
4,073.8416.9¥3,229.3
3,984.0
441.0

Total liquidity portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥7,079.7¥7,074.2¥7,646.2¥7,654.3(1) Cash, cash equivalents, and time deposits include nostro balances and deposits with both central banks andmarket counterparties that are readily available to support the liquidity position of Nomura.
(2) Others include other liquid financial assets such as money market funds and U.S. agency securities.

74

The following table presents a breakdown of our liquidity portfolio by currency as of March 31, 2022 and2023 and averages maintained for the years ended March 31, 2022 and 2023. Yearly averages are calculatedusing month-end amounts.
Average foryear ended
March 31, 2022

Billions of yen
Average forMarch 31,year ended
2022
March 31, 2023

March 31,2023

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

¥1,913.7
3,567.3
792.3
578.3
228.1

¥1,409.8
3,924.1
868.5
597.5
274.3

¥1,613.6
4,326.0
869.3
505.7
331.6

¥1,852.0
3,953.3
964.5
522.4
362.1

Total liquidity portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥7,079.7¥7,074.2¥7,646.2¥7,654.3(1) Includes other currencies such as the Australian Dollar, the Canadian Dollar and the Swiss Franc.
We assess our liquidity portfolio requirements globally as well as by each major operating entity in the
Nomura Group. We primarily maintain our liquidity portfolio at Nomura Holdings, Inc. (“NHI”) and Nomura
Securities Co. Ltd. (“NSC”), our other major broker-dealer subsidiaries, our bank subsidiaries, and other group
entities. In determining the amounts and entities which hold this liquidity portfolio, we consider legal, regulatory
and tax restrictions which may impact our ability to freely transfer liquidity across different entities in the
Nomura Group. For more information regarding regulatory restrictions, see Note 17 “Regulatory requirements”
in our consolidated financial statements included within this annual report.
The following table presents a breakdown of our liquidity portfolio by entity as of March 31, 2022 and2023.
Billions of yen
March 31, 2022 March 31, 2023

NHI and NSC(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Major broker-dealer subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank subsidiaries(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,395.4
3,118.5
1,008.5
1,551.8¥1,806.4
3,012.6
1,178.6
1,656.7

Total liquidity portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥7,074.2¥7,654.3(1) NSC, a broker-dealer located in Japan, holds an account with the Bank of Japan (“BOJ”) and has directaccess to the BOJ Lombard facility through which same day funding is available for our securities pool.
Any liquidity surplus at NHI is lent to NSC via short-term intercompany loans, which can be unwound
immediately when needed.
(2) Includes Nomura Bank International plc (“NBI”), Nomura Singapore Limited and Nomura Bank
Luxembourg S.A.
2.

Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio.

In addition to our liquidity portfolio, we had ¥2,842.5 billion of other unencumbered assets comprising
mainly of unpledged trading assets that can be used as an additional source 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 andother unencumbered assets as of March 31, 2023 was ¥10,496.8 billion, which represented 307.7% of our total
unsecured debt maturing within one year.
75Billions of yen
March 31, 2022 March 31, 2023

Net liquidity value of other unencumbered assets . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquidity portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,665.7
7,074.2¥ 2,842.5
7,654.3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥9,739.9¥10,496.8

3. Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with theComposition of Assets
We seek to maintain a surplus of long-term debt and equity above the cash capital requirements of ourassets. 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 andstructured notes with returns linked to interest rates, currencies, equities, commodities, or related indices. We
issue structured loans and structured notes in order to increase the diversity of our debt instruments. We typicallyhedge the returns we are obliged to pay with derivatives and/or the underlying assets to obtain funding equivalent
to our unsecured long-term debt. The proportion of our non-Japanese Yen denominated long-term debt increased
to 55.9% of total long-term debt outstanding as of March 31, 2023 from 51.4% as of March 31, 2022.
3.1

Short-Term Unsecured Debt

Our short-term unsecured debt consists of short-term bank borrowings (including long-term bankborrowings maturing within one year), other loans, commercial paper, deposit at banking entities, certificates ofdeposit and debt securities maturing within one year. Deposits at banking 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 ofMarch 31, 2022 and 2023.
Billions of yen
March 31, 2022 March 31, 2023

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

¥ 148.0
228.1
131.9
1,520.7
127.8
775.6

¥ 203.3
256.8
300.0
1,705.0
224.2
721.9

Total short-term unsecured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,932.1¥3,411.2

3.2

Long-Term Unsecured Debt

We meet our long-term capital requirements and also achieve both cost-effective funding and an appropriate
maturity profile by routinely funding through long-term debt and diversifying across various maturities andcurrencies.
Our long-term unsecured debt includes senior and subordinated debt issued through U.S. registered shelfofferings and our U.S. registered medium-term note programs, our Euro medium-term note programs, registeredshelf offerings in Japan and various other debt programs.
76

As a globally competitive financial services group in Japan, we have access to multiple global markets andmajor funding centers. The Company, NSC, Nomura Europe Finance N.V., NBI, Nomura International Funding
Pte. Ltd. and Nomura Global Finance Co., LTD. are the main group entities that borrow externally, issue debt
instruments and engage in other funding activities. By raising funds to match the currencies and liquidities of ourassets or by using foreign exchange swaps as necessary, we pursue optimization of our funding structures.
We use a wide range of products and currencies to ensure that our funding is efficient and well diversified
across markets and investor types. Our unsecured senior debt is mostly issued without financial covenants, suchas 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 ofMarch 31, 2022 and 2023.
Billions of yen
March 31, 2022 March 31, 2023

Long-term deposits at banking entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term bank borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 112.3
2,820.5
219.5
4,745.8¥ 208.8
3,004.9
265.5
5,291.5

Total long-term unsecured debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥7,898.1¥8,770.7(1) Excludes long-term debt securities issued by consolidated special purpose entities and similar entities thatmeet the definition of variable 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 greaterthan or equal to three years. The average maturity for our plain vanilla debt securities and borrowings withmaturities longer than one year was 3.9 years as of March 31, 2023. A significant amount of our structured loans
and structured notes are linked to interest rates, currencies, equities, commodities, or related indices. Thesematurities 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 the embedded optionality under stress market conditions in order to determine
when the debt securities or borrowing is likely to be called. The graph below shows the distribution of maturitiesof our outstanding long-term debt securities and borrowings by the model.
On this basis, the average maturity of our structured loans and structured notes with maturities longer than
one year was 8.3 years as of March 31, 2023. The average maturity of our entire long-term debt with maturities
longer than one year including plain vanilla debt securities and borrowings, was 6.2 years as of March 31, 2023.

77

Long-Term Debt Maturity Profile (March 31, 2023)

Billions of yen
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500

3.4

Later than Apr 2028

Jan-Mar 2028

Oct-Dec 2027

Jul-Sep 2027

Apr-Jun 2027

Jan-Mar 2027

Oct-Dec 2026

Jul-Sep 2026

Apr-Jun 2026

Jan-Mar 2026

Oct-Dec 2025

Jul-Sep 2025

Apr-Jun 2025

Jan-Mar 2025

Oct-Dec 2024

Jul-Sep 2024

Apr-Jun 2024

Jan-Mar 2024

Oct-Dec 2023

Jul-Sep 2023

Apr-Jun 2023

0

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-efficientand less credit-rating sensitive than financing in the unsecured market. Our secured funding capabilities dependon the quality of the underlying collateral and market conditions. While we have shorter term secured financing
for highly liquid assets, we seek longer terms for less liquid assets. We also seek to lower the refinancing risks of
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 less liquid assets. For more detail of secured borrowings andrepurchase agreements, see Note 5 “Collateralized transactions” in our consolidated financial statements.
4.

Management of Credit Lines to Nomura Group Entities

We maintain and expand credit lines to Nomura Group entities from other financial institutions to securestable funding. We ensure that the maturity dates of borrowing agreements are distributed evenly throughout theyear 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 differinglevels of severity over multiple time horizons. We evaluate these requirements under Nomura-specific and broad
market-wide events, including potential credit rating downgrades at the Company and subsidiary levels. We callthis risk analysis our Maximum Cumulative Outflow (“MCO”) framework.

78

The MCO framework is designed to incorporate the primary liquidity risks for Nomura and models therelevant 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 throughunsecured funding 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 a level we believe appropriate basedon our liquidity risk appetite.
As of March 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:6.

•

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.
Contingency Funding Plan

We have developed a detailed contingency funding plan to integrate liquidity risk control into ourcomprehensive risk management strategy and to enhance the quantitative aspects of our liquidity risk control
procedures. As a part of our Contingency Funding Plan (“CFP”), we have developed an approach for analyzing
and quantifying the impact of any liquidity crisis. This allows us to estimate the likely impact of both Nomuraspecific 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 and the processes by which information is to bedisseminated. 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 subsidiary79

level due to regulatory, legal or tax constraints. We periodically test the effectiveness of our funding plans fordifferent Nomura-specific and market-wide events. We also have access to central banks including, but not
exclusively, the BOJ, which provide financing against various types of securities. These operations are accessedin the normal course of business and are an important tool in mitigating contingent risk from market disruptions.
Liquidity Regulatory Framework
In 2008, the Basel Committee published “Principles for Sound Liquidity Risk Management andSupervision”. To complement these principles, the Committee has further strengthened its liquidity framework
by developing two minimum standards for funding liquidity. These standards 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 byensuring 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 this objective.
The second objective is to promote resilience over a longer time horizon by creating additional incentives
for financial institutions to fund their activities 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 been developed to provide a sustainablematurity 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 reflectjurisdiction-specific conditions.
In Japan, the regulatory notice on the LCR, based on the international agreement issued by the BaselCommittee with necessary national revisions, was published by Financial Services Agency (on October 31,2014). The notices have been implemented since the end of March 2015 with phased-in minimum standards.
Average of Nomura’s LCRs for the three months ended March 31, 2023 was 203.8%, and Nomura was compliant
with requirements of the above notices. As for the NSFR, the revision of the liquidity regulatory notice waspublished by Financial Services Agency (on March 31, 2021) and it has been implemented from the end of
September 2021. Nomura’s NSFR as of March 31, 2023 was compliant with the regulatory requirements.
Cash Flows
Nomura’s cash flows are primarily generated from operating activities undertaken in connection with ourclient flows and trading and from financing activities which are closely related to such activities. As a financial
institution, growth in operations tends to result in cash outflows from operating activities as well as investing
activities. For the year ended March 31, 2022, we recorded net cash outflows from operating activities andinvesting activities and net cash inflow from financing activities. For the year ended March 31, 2023, werecorded net cash outflows from operating activities and investing activities and net cash inflow from financing
activities as discussed in the comparative analysis below.

80

The following table presents the key information on our consolidated cash flows for the years ended
March 31, 2022 and 2023. As discussed in Note 1 “Summary of accounting policies”, amounts for the year ended
March 31, 2022 and 2023 have been restated to correct certain errors identified during the fourth quarter ended
March 31, 2024.
Billions of yen
Year Ended March 31
2022
2023
(Restated)(Restated)

Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt investments . . . . . . . . . . . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities purchased under agreements to resell, net of securities sold underagreements to repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed, net of securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other net operating cash flow reconciling items . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash inflows / (outflows) from non-trading debt securities . . . . . . . . . . . . . . . . . .
Other net investing cash inflows / (outflows) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash inflows from long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash inflows from deposits received at banks . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other net financing cash outflows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restrictedcash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (862.8) ¥ (694.8)
146.5
91.7
1,229.6(1,623.0)(284.7)467.3(2,220.5)
595.1(328.8)(593.2)(28.2)(634.5)(51.1)
120.6
1,112.7
1,238.4(420.3)372.6(78.0)(590.4)834.4
125.2(233.2)(59.4)(299.8)159.6(33.6)
1,283.9
1,093.3(64.5)
328.9(73.8)

149.7

148.6

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of theyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(193.6)504.4

3,510.0

3,316.4

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of theyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 3,316.4¥ 3,820.9

See the consolidated statements of cash flows in our consolidated financial statements included within thisannual report for more detailed information.
For the year ended March 31, 2023, our cash, cash equivalents, restricted cash and restricted cash
equivalents increased by ¥504.4 billion to ¥3,820.9 billion. Net cash of ¥1,283.9 billion was provided byfinancing activities due to net cash inflows of ¥1,093.3 billion from Net cash inflows from long-term borrowings.
Net cash of ¥233.2 billion was used in investing activities due to net cash outflow of ¥299.8 billion from Net
cash outflows from loans. As part of trading activities, while there were net cash outflows of ¥1,155.7 billion
mainly due to an increase in Trading assets and private equity and debt investments, they were offset by net cash
inflows of ¥244.0 billion from repo transactions and securities borrowed and loaned transactions such as
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase andSecurities borrowed, net of securities loaned. As a result, net cash of ¥694.8 billion was used in operating
activities.
For the year ended March 31, 2022, our cash, cash equivalents, restricted cash and restricted cash
equivalents decreased by ¥193.6 billion to ¥3,316.4 billion. Net cash of ¥1,112.7 billion was provided by81

financing activities due to net cash inflows of ¥1,238.4 billion from Net cash inflows from long-term borrowings.
Net cash of ¥593.2 billion was used in investing activities due to net cash outflow of ¥634.5 billion from Net
cash outflows from loans. As part of trading activities, while there were net cash inflows of ¥944.9 billion mainly
due to a decrease in Trading assets and private equity and debt investments, they were offset by net cash
outflows of ¥1,625.4 billion from repo transactions and securities borrowed and loaned transactions such as
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase andSecurities borrowed, net of securities loaned. As a result, net cash of ¥862.8 billion was used in operating
activities.
Balance Sheet and Financial Leverage
Total assets as of March 31, 2023, were ¥47,771.8 billion, an increase of ¥4,359.6 billion compared with
¥43,412.2 billion as of March 31, 2022, reflecting primarily an increase in Trading assets. Total liabilities as ofMarch 31, 2023, were ¥44,547.7 billion, an increase of ¥4,108.3 billion compared with ¥40,439.4 billion as ofMarch 31, 2022, reflecting primarily an increase in Securities sold under agreements to repurchase. NHI
shareholders’ equity as of March 31, 2023 was ¥3,148.6 billion, an increase of ¥234.0 billion compared with
¥2,914.6 billion as of March 31, 2022, primarily due to an increase in Accumulated other comprehensive income.
We seek to maintain sufficient capital at all times to withstand losses due to extreme market movements.
The EMB is responsible for implementing and enforcing capital policies. This includes the determination of ourbalance 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 for minimum
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 aleverage ratio and adjusted leverage ratio primarily for benchmarking purposes so that users of our annual report
can compare our leverage against other financial institutions. Adjusted leverage ratio is a non-GAAP financial
measure that Nomura considers to be a useful supplemental measure of leverage.
The following table presents NHI shareholders’ equity, total assets, adjusted assets and leverage ratios as ofMarch 31, 2022 and 2023.
Billions of yen, except ratios
March 312022
2023

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

¥ 2,914.6
43,412.2
26,535.8
14.9 x
9.1 x¥ 3,148.6
47,771.8
29,654.3
15.2 x
9.4 x(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 312022
2023

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

¥43,412.2¥47,771.8

11,879.3
4,997.1

13,834.5
4,283.0

Adjusted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥26,535.8¥29,654.3

82

Total assets increased by 10.0% reflecting primarily an increase in Securities purchased under agreements
to resell. Total NHI shareholders’ equity increased by 8.0% reflecting primarily an increase in Accumulated
other comprehensive income. As a result, our leverage ratios were 14.9 times as of March 31, 2022 and 15.2
times as of March 31, 2023.
Adjusted assets increased primarily due to an increase in Cash and cash equivalents. As a result, ouradjusted leverage ratios were 9.1 times as of March 31, 2022 and 9.4 times as of March 31, 2023.
Capital Management
Capital Management Policy
We seek to enhance shareholder value and to capture growing business opportunities by maintaining
sufficient levels of capital. We will continue to review our levels of capital as appropriate, taking into
consideration the economic risks inherent to operating our businesses, the regulatory requirements, andmaintaining our ratings necessary to operate businesses globally.
Dividends
We believe that raising corporate value over the long term and paying dividends is essential to rewarding
shareholders. We will strive to pay dividends using a consolidated pay-out ratio of 30 percent of each semiannual consolidated earnings as a key indicator.
Dividend payments are determined taking into account a comprehensive range of factors such as thetightening of Basel regulations and other changes to the regulatory environment as well as the Company’s
consolidated financial performance.
Starting from FY2023/24, we will strive to pay dividends using a consolidated payout ratio of at least
40 percent of each semi-annual consolidated earnings as a key indicator.
Dividends will in principle be paid on a semi-annual basis with record dates of September 30 and March 31.
Additionally we will aim for a total payout ratio, which includes dividends and share buybacks, of at least
50 percent.
With respect to retained earnings, in order to implement measures to adapt to regulatory changes and toincrease shareholder value, we seek to efficiently invest in business areas where high profitability and growth
may reasonably be expected, including the development and expansion of infrastructure.
Dividends for the Fiscal Year
Based on our Capital Management Policy described above, we paid a dividend of ¥5 per share toshareholders of record as of September 30, 2022 and have decided to pay a dividend of ¥12 per share toshareholders of record as of March 31, 2023. As a result, the total annual dividend will be ¥17 per share.
The following table presented the amounts of dividends per share paid by us in respect of the periods
indicated:
Fiscal year ended or ending March 31,2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

¥—
—
—
—
—
—

¥ 9.00
3.00
15.00
20.00
8.00
5.00

¥—
—
—
—
—
—

¥11.00
3.00
5.00
15.00
14.00
12.00

¥20.00
6.00
20.00
35.00
22.00
17.00

83

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 ourconsolidated 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 aconsolidated 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. The Capital Adequacy Notice on Final
Designated Parent Company has been revised to be in line with Basel 2.5 and Basel III since then. We havecalculated a Basel III-based consolidated capital adequacy ratio from the end of March 2013. Basel 2.5 includes
significant change in calculation method of market risk and Basel III includes redefinition of capital items for the
purpose of requiring higher quality of capital and expansion of the scope of credit risk-weighted assets
calculation.
In accordance with Article 2 of the Capital Adequacy Notice on Final Designated Parent Company, ourconsolidated capital adequacy ratio is currently 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 March 31, 2023,
our common equity Tier 1 capital ratio is 16.32%, Tier 1 capital ratio is 18.49% and consolidated capital
adequacy ratio is 18.49% and we are in compliance 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 March 31, 2023 is 7.62% for the common equity Tier 1 capital ratio, 9.12% for
the Tier 1 capital ratio and 11.12% 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 and Recapitalisation 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
and Exchange Act” (the ”TLAC Notification”), we have started calculating our external TLAC ratio on a riskweighted assets basis from March 2021. As of March 31, 2023, our external TLAC as a percentage of riskweighted assets is 31.78% and we are in compliance with the requirement set out in the TLAC Notification.

84

The following table presents the Company’s consolidated capital adequacy ratios and External TLAC as apercentage of risk-weighted assets as of March 31, 2022 and March 31, 2023.
Billions of yen, except ratios
March 312022
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 2,726.4
3,103.0
3,103.4¥ 2,828.8
3,203.7
3,204.1

8,301.2
4,899.0
2,629.7

8,385.8
6,270.6
2,667.5

Total risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥15,829.9¥17,323.9

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.22%
19.60%
19.60%
5.98%

16.32%
18.49%
18.49%
5.63%

30.72%
10.30%

31.78%
10.63%

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 theInternal Models Approach.
We provide consolidated capital adequacy ratios not only to demonstrate that we are in compliance with therequirements set out in the Capital Adequacy Notice on Final Designated Parent Company but also forbenchmarking purposes so that users of this annual report can compare our capital position against those of otherfinancial groups to which Basel III is applied. Our management receives and reviews these capital ratios on aregular basis.
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 ofa Final Designated Parent Company and its Subsidiary Corporations, etc. is Appropriate Compared to the Assets
Held by the Final Designated Parent Company and its Subsidiary Corporations, etc., under Paragraph 1, Article
57-17 of the Financial Instruments and Exchange Act” (2019 FSA Regulatory Notice No. 13; “Notice on
Consolidated Leverage Ratio”), through amendments to revising “Specification of items which a final designatedparent company should disclose on documents to show the status of its sound management” (2010 FSA Regulatory
Notice No. 132; “Notice on Pillar 3 Disclosure”). We started calculating and disclosing a consolidated leverage ratio
from March 31, 2015 in accordance with these Notices. We have also started calculating a consolidated leverage
ratio from March 31, 2019 in accordance with the Notice on Pillar 3 Disclosure, Notice on Consolidated Leverage
Ratio and other related Notices. In coordination with the monetary policy of the Bank of Japan in response to theimpact of the COVID-19 pandemic, the FSA published amendments to the Notice on Consolidated Leverage Ratioon June 2020 and March 2021. Under these amendments, deposits with the Bank of Japan have been excluded fromthe total exposure measure used to calculate the leverage ratio during the period from June 30, 2020 to March 31,
2022. In March 2022, the FSA announced this measure will be extended to March 31, 2024. As of March 31, 2023,
our consolidated leverage ratio is 5.63%.
85

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 March 31, 2023, our external TLAC as a percentage ofleverage ratio exposure measure is 10.63% and we are in compliance with the requirement set out in the TLAC
Notification.
Regulatory changes which affect us
The Basel Committee has issued a series of announcements regarding a Basel III program designed tostrengthen the regulatory capital framework in light of weaknesses revealed by the financial crises. The following
is a summary of the proposals which are most relevant to us.
On December 16, 2010, in an effort to promote a more resilient banking sector, the Basel Committee issued
Basel III, that is, “International framework for liquidity risk measurement, standards and monitoring” and “A
global regulatory framework for more resilient banks and banking systems”. They include raising the quality,
consistency and transparency of the capital base; strengthening the risk coverage of the capital framework suchas the implementation of a credit value adjustment (“CVA”) charge for OTC derivative trades; introducing aleverage ratio requirement as a supplemental measure to the risk-based framework; introducing a series ofmeasures to address concerns over the “procyclicality” of the current framework; and introducing a liquidity
standard including a 30-day liquidity coverage ratio as well as the net stable funding ratio to measure stability offinancing structure. These standards were implemented from 2013, which includes transitional treatment, (i.e.,they are phased in gradually from 2013). In addition, the Basel Committee has issued interim rules for thecapitalization of bank exposures to central counterparties (“CCPs”) on July 25, 2012, which came into effect in2013 as part of Basel III. Moreover, in addition to Basel III leverage ratio framework under which we started thecalculation and disclosure of consolidated leverage ratio as above, a series of final standards on the regulatory
frameworks such as capital requirements for banks’ equity investments in funds, the standardized approach formeasuring counterparty credit risk exposures, capital requirements for bank exposures to CCPs, supervisory
framework for measuring and controlling large exposures, and revisions to the securitization framework, andrevised framework for market risk capital requirements have been published by the Basel Committee.
At the G-20 summit in November 2011, the Financial Stability Board (“FSB”) and the Basel Committeeannounced the list of global systemically important banks (“G-SIBs”) and the additional requirements to the
G-SIBs including the recovery and resolution plan. The group of G-SIBs have been updated annually andpublished by the FSB each November. Since November 2011, we have not been designated as a G-SIBs. On theother hand, the FSB and the Basel Committee were asked to work on extending the framework for G-SIBs todomestic systemically important financial institutions (“D-SIBs”) and the Basel Committee developed andpublished a set of principles on the assessment methodology and the higher loss absorbency requirement for
D-SIBs. In December 2015, the FSA identified us as a D-SIB and required additional capital charge of 0.5% after
March 2016, with 3-year transitional arrangement.
In November 2015, the FSB issued the final TLAC standard for G-SIBs. The TLAC standard has been
designed so that failing G-SIBs will have sufficient loss-absorbing and recapitalization capacity available inresolution for authorities to implement an orderly resolution. In response to the FSB’s publication of the TLAC
standard, in April 2016, the FSA published its policy to develop the TLAC framework in Japan applicable to
Japanese G-SIBs and, in April 2018, revised such policy to apply the TLAC requirements in Japan not only to
Japanese G-SIBs but also to Japanese D-SIBs that are deemed (i) of particular need for a cross-border resolution
arrangement and (ii) of particular systemic significance to Japanese financial system if they fail. In the revised
policy, the Japanese G-SIBs and Nomura (“TLAC Covered SIBs”) would be subject to the TLAC requirements
in Japan. On March 2019, the FSA published the notices and revised the guidelines of TLAC regulations.
Although Nomura is not identified as a G-SIB as of the date of this annual report, the TLAC Covered SIBs,
including Nomura, will be required to meet the TLAC requirement alongside the minimum regulatory
requirements set out in the Basel III framework. Specifically, Nomura will be required to meet a minimum
TLAC requirement of holding TLAC in an amount at least 16% of our consolidated risk-weighted assets as from86

March 31, 2021 and at least 18% as from March 31, 2024 as well as at least 6% of the applicable Basel III
leverage ratio denominator from March 31, 2021 and at least 6.75% from March 31, 2024 (which 6.75% will be
increased, pursuant to recent amendment to the TLAC regulations in Japan, to 7.1% from April 1,2024).
Furthermore, according to the FSA’s revised policy published in April 2018, which is subject to change
based on future international discussions, the preferred resolution strategy for the TLAC Covered SIBs is Single
Point of Entry (“SPE”) resolution, in which resolution powers are applied to the top of a group by a single
national resolution authority (i.e., the FSA), although the actual measures to be taken will be determined on acase-by-case basis considering the actual condition of the relevant the TLAC Covered SIBs in crisis.
To implement this SPE resolution strategy effectively, the FSA requires holding companies of the TLAC
Covered SIBs (“Domestic Resolution Entities”) to (i) meet the minimum external TLAC requirements and(ii) cause their material subsidiaries that are designated as systemically important by the FSA, including but notlimited to certain material sub-groups as provided in the FSB’s TLAC standard, to maintain a certain level ofcapital and debt recognized by the FSA as having loss-absorbing and recapitalization capacity, or Internal TLAC.
In addition, the TLAC Covered SIBs’ Domestic Resolution Entities will be allowed to count the amountequivalent to 2.5% of their consolidated risk-weighted assets from the implementation date of the TLAC
requirements in Japan (March 31, 2021 for Nomura) and 3.5% of their consolidated risk-weighted assets from
3 years after the implementation date (March 31, 2024 for Nomura) as our external TLAC, considering theJapanese Deposit Insurance Fund Reserves.
It is likely that the FSA’s regulation and notice will be revised further to be in line with a series of rules andstandards proposed by the Basel Committee, FSB or International Organization of Securities Commissions.
Credit Ratings
The cost and availability of unsecured funding are generally dependent on credit ratings. Our long-term andshort-term debt is rated by several recognized credit rating agencies. We believe that our credit ratings include
the credit ratings agencies’ assessment of the general operating environment, our positions in the markets inwhich we operate, reputation, earnings structure, trend and volatility of our earnings, risk management
framework, liquidity and capital management. An adverse change in any of these factors could result in adowngrade of our credit ratings, and that could, in turn, increase our borrowing costs and limit our access to thecapital markets or require us to post additional collateral and permit counterparties to terminate transactions
pursuant to certain contractual obligations. In addition, our credit ratings can have a significant impact on certainof our trading revenues, particularly in those businesses where longer term counterparty performance is critical,
such as OTC derivative transactions.
There were no significant rating actions during the fiscal year ending March 2023.
As of May 22, 2023, the credit ratings of the Company and NSC were as follows.
Nomura Holdings, Inc.

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

S&P Global Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Moody’s Investors Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fitch Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rating and Investment Information, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan Credit Rating Agency, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87

Short-term Debt

Long-term Debt

A-2
—
F1
a-1
—

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

Short-term Debt

Long-term Debt

A-2
P-2
F1
a-1
—

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

Both Rating and Investment Information, Inc. and Japan Credit Rating Agency, Ltd. are credit rating
agencies nationally recognized in Japan. We rely on, or utilize, credit ratings on our long-term and short-term
debt provided by these Japanese credit rating agencies, as well as S&P Global Ratings, Moody’s InvestorsService, and Fitch Ratings for unsecured funding and other financing purposes and also for our trading and otherbusiness activities. Within the rating classification system of Rating and Investment Information, Inc., “a-1” isthe highest of five categories for short-term debt and indicates “a strong degree of certainty regarding debt
repayment”; and “A” is the third highest of nine categories for long-term debt and indicates “a high degree ofcertainty regarding debt repayment with excellence in specific component factors”, with a plus (+) or minus (-)
sign added to a rating in that category to indicate its relative standing within that category. Within the ratingclassification system of Japan Credit Rating Agency, Ltd., “AA” is the second highest of eleven categories forlong-term debt and indicates “a very high level of capacity to honor the financial commitment on the obligation”,
with a plus (+) or minus (-) sign added to a rating in that category to indicate its relative standing within thatcategory.
There has been no change to the ratings in the above table since the date indicated.
Off-Balance Sheet Arrangements.
Off-balance sheet entities
In the normal course of business, we engage in a variety of off-balance sheet arrangements with off-balance
sheet entities which may have an impact on Nomura’s future financial position and performance.
Off-balance sheet arrangements with off-balance sheet entities include where Nomura has:•

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

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

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

Off-balance sheet entities may take the form of a corporation, partnership, fund, trust or other legal vehicle
which is designed to fulfill a limited, specific purpose by its sponsor. We both create or sponsor these entities andalso enter into arrangements with entities created or sponsored by others.
Our involvement with these entities includes structuring, underwriting, distributing and selling debt
instruments and beneficial interests issued by these entities, subject to prevailing market conditions. In
connection with our securitization and equity derivative activities, we also act as a transferor of financial assets tothese entities, as well as, underwriter, distributor and seller of asset-repackaged financial instruments issued bythese entities. We retain, purchase and sell variable interests in SPEs in connection with our market-making,investing and structuring activities. Our other types of off-balance sheet arrangements include guarantee
agreements and derivative contracts. Significant involvement is assessed based on all of our arrangements withthese entities, even if the probability of loss, as assessed at the balance sheet date, is remote.
For further information about transactions with VIEs, see Note 6 “Securitizations and Variable Interest
Entities” in our consolidated financial statements included in this annual report.

88

Tabular Disclosure of Contractual Obligations.
In the ordinary course of our business, we enter into a variety of contractual obligations and contingent
commitments, which may require future payments. These arrangements include:
Standby letters of credit and other guarantees:•

In connection with our banking and financing activities, we enter into various guarantee arrangementswith counterparties in the form of standby letters of credit and other guarantees, which generally have
fixed expiration dates.

Long-term borrowings and contractual interest payments:•

In connection with our operating activities, we issue Japanese Yen and non-Japanese Yen denominatedlong-term borrowings which incur variable and fixed interest payments in accordance with our funding
policy.

Operating lease commitments:•

We lease office space, residential facilities for employees, motor vehicles, equipment and technology
assets in the ordinary course of business both in Japan and overseas as lessee. These arrangements
predominantly consist of operating leases.

•

Separately we sublease certain real estate and equipment through operating lease arrangements.

Finance lease commitments:•

We lease certain equipment and facilities in Japan and overseas which are classified as finance leaseagreements.

Purchase obligations:•

We have purchase obligations for goods and services which include payments for construction,
advertising, and computer and telecommunications maintenance agreements.

Commitments to extend credit:•

In connection with our banking and financing activities, we enter into contractual commitments toextend credit, which generally have fixed expiration dates.

•

In connection with our investment banking activities, we enter into agreements with clients under which
we commit to underwrite securities that may be issued by 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.

Commitments to invest in partnerships:•

We have commitments to invest in interests in various partnerships and other entities and commitments
to provide financing for investments related to those partnerships.

Note 8 “Leases” in our consolidated financial statements contains further detail on our operating leases andfinance leases. Note 10 “Borrowings” in our consolidated financial statements contains further detail on our
short-term and long-term borrowing obligations and Note 19 “Commitments, contingencies and guarantees” inour consolidated financial statements included in this annual report contains further detail on our othercommitments, contingencies and guarantees.
89

The contractual amounts of commitments to extend credit represent the maximum amounts at risk should
the contracts be 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 thesecommitments varies depending on our clients’ creditworthiness and the value of collateral held. We evaluateeach client’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by
us upon extension of credit, is based on management’s credit evaluation of the counterparty.
The following table presents information regarding amounts and timing of our future contractual obligations
and contingent commitments as of March 31, 2023.
Millions of yen
Years to maturity
1 to 33 to 5
years
years

Total
contractual
amountLess than
1 yearStandby letters of credit and otherguarantees . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings(1) . . . . . . . . . . . . . . .
Contractual interest payments(2) . . . . . . . . .
Operating lease commitments(3) . . . . . . . . .
Purchase obligations(4) . . . . . . . . . . . . . . . . .
Commitments to extend credit(5) . . . . . . . . .
Commitments to invest . . . . . . . . . . . . . . . .

¥ 1,544,159
9,985,597
1,623,599
203,898
99,134
2,634,229
21,994¥1,517,287
619,672
238,543
44,45521,501
1,823,017
195¥ 15,903
3,605,633
379,91264,222
10,886289,991
1,292¥

10,2581,614,747
245,268
42,47464,806
338,978
5,003¥

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥16,112,610¥4,264,670¥4,367,839¥2,321,534¥5,158,567

More than
5 years

711
4,145,545
759,876
52,747
1,941
182,243
15,504(1) The amounts disclosed within long-term borrowings exclude financial liabilities recognized within longterm borrowings as a result of transfers of financial assets that are accounted for as financings rather thansales in accordance with ASC 860. These are not borrowings issued for our own funding purposes andtherefore do not represent actual contractual obligations by us to deliver cash.
(2) The amounts represent estimated future interest payments related to long-time borrowings based on the
period through to their maturity and applicable interest rates as of March 31, 2023.
(3) The amounts of operating lease commitments are undiscounted future minimum lease payments. The
amounts of finance lease contracts were immaterial.
(4) The minimum contractual obligations under enforceable and legally binding contracts that specify all
significant terms. Amounts exclude obligations that are already reflected on our consolidated balance sheets
as liabilities or payables. Includes the commitment to purchase parts of the redeveloped real estate in Tokyo
Nihonbashi district from the redevelopment association.
(5) Contingent liquidity facilities to central clearing counterparties are included.
Excluded from the above table are obligations that are generally short-term in nature, including short-termborrowings, deposits received at banks and other payables, collateralized agreements and financing transactions(such as reverse repurchase and repurchase agreements), and trading liabilities.
In addition to amounts presented above, we have commitments under reverse repurchase and repurchaseagreements including amounts in connection with collateralized agreements and collateralized financing. These
commitments amount to ¥1,143 billion for reverse repurchase agreements and ¥2,146 billion for repurchaseagreements as of March 31, 2023.
C. Research and Development, Patents and Licenses, etc.
Not applicable.
90

D. Trend Information.
The information required by this item is set forth in Item 5.A of this annual report.
E. Critical Accounting Policies and Estimates
Critical accounting policies are the accounting policies which have the most significant impact on the
preparation of our consolidated financial statements included within this annual report and which require themost difficult, subjective and complex judgments by our management to develop estimates used in theapplication of these policies. Estimates, by their nature, are based on underlying assumptions which require
management judgment and depend on the extent of information available at the time. Actual results in futurereporting periods may differ from these estimates, which could have a material impact on our consolidated
financial statements.
The following table summarizes the critical accounting policies which have the most significant impact on
our consolidated financial statements for the year ended March 31, 2023. For each such critical accounting
policy, the table also identifies the critical accounting estimates inherent within application of those policies, thenature of the estimates, the underlying assumptions and judgments made by our management during the year toderive those estimates and the financial impact had we applied different estimates or assumptions during theyear. See Note 1 “Summary of Accounting Policies” in our consolidated financial statements included in thisannual report for more information on the critical accounting policies we apply in these areas and the relevant
footnote disclosures referred to in the table for more information around how these critical accounting policies
and critical accounting estimates have been applied.
Criticalaccounting
policyFair value offinancial
instruments
Note 2 “Fair value
measurements”

Critical accounting
estimates

Key subjective assumptions or
judgments by management

Estimating fairvalue forfinancial
instruments

A significant portion of our financial
instruments are carried at fair value.
The fair values of these financial
instruments may not only bemeasured at quoted prices but also
impacted by other factors, including
selection of valuation techniques/models and other assumptions that
require judgment.
This may affect the amount andtiming of unrealized gains or losses
recognized in the consolidated
statements of income for a particularfinancial instrument.
Selection of appropriate valuation
techniques•

For financial instruments
measured at fair values where
quoted prices are available inactive markets, we typically use
quoted prices as level 1 inputs
for determining the fair valuesof these financial instruments.

•

For financial instruments wheresuch quoted prices are notavailable, fair values of these91

Effect of changes in estimates andassumptions during year ended March 31,
2023

See Note 2 “Fair value
measurements” for further
information around our valuation
methodologies and our policy forclassification of financial
instruments within the fair value
hierarchy.
Level 3 financial assets (net ofderivative liabilities) during the year
increased from ¥792 billion as ofMarch 2022 to ¥868 billion as ofMarch 2023. Total level 3 financial
assets to total financial assets carriedat fair value on a recurring basis
ratio was 5 % as of March 31, 2023
(6% as of March 31, 2022.)
See Note 2 “Fair Valuemeasurement” for further
quantitative and qualitative
information regarding level 3 inputs,
including the sensitivity of fairvalues of the underlying financial
instruments to changes in level 3
inputs.

Critical
accounting
policyCritical accounting
estimates

Key subjective assumptions or
judgments by management

Effect of changes in estimates andassumptions during year ended March 31,
2023

financial instruments aremeasured using level 2 or level
3 inputs. Significant judgment
is involved in selection of
appropriate valuation
techniques and validation ofassumptions applied in models
because the estimated fairvalues measured could varydepending on which models
and assumptions are used.
When selecting valuation
techniques, various factors suchas the particular circumstancesand markets where thesefinancial instruments are traded,
the availability of reliable
inputs, maximizing the use of
relevant observable inputs andminimizing the use ofunobservable inputs are
considered.
Significance of level 3 inputs

Litigation
provisions
Note 19“Commitments,
contingencies andguarantees”

Determinationof whether aloss is probableandmeasurement ofprovisions andreasonably
possible loss•

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

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

In the normal course of business, wemay be involved in investigations,lawsuits and other legal proceedings(“legal matters”) and, as a result,
may suffer losses from any fines,
penalties or settlements we choose to
make to resolve the matters. The
losses could be significant to ourconsolidated results of operations.
Various judgments and assumptions
are required by management aroundthe likelihood of loss in respect of a
92

See Note 19 “Commitments,
contingencies and guarantees” fordetails of the various legal matters
we are currently involved with,including those where legal
provisions have been recognized orwhere a loss is consideredreasonably possible.
If we concluded as of June 28, 2023
that for those legal matters where an
estimate of reasonably possible loss
can be made, where the risk of loss

Critical
accounting
policyCritical accounting
estimates

Key subjective assumptions or
judgments by management

legal matter and the eventual amountof such loss.
Determination if a loss is probable•

Recognition of legal provisions
are only required if a loss isprobable and can be reasonably
estimated.

•Significant judgment requiredin deciding the likelihood of
whether a loss from a legal
matter is probable, reasonably
possible or remote.

•Such judgment usually involves
consideration of external legal
counsel opinion, our own
historical experiences in court
and similar matters, progress ofregulatory investigation or
litigation proceedings, and theappetite of management or thecounterparty to settle thematter.

•If a loss is only considered tobe reasonably possible orremote, no legal provision isrequired.

Measurement of a probable orreasonably possible loss•

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

•

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

•

All of the above determination
is often inherently difficult,especially for legal claims or93

Effect of changes in estimates andassumptions during year ended March 31,2023

was considered probable rather thanjust reasonably possible, we would
recognize additional legal provisions
through earnings of approximately¥51 billion.
However, this estimate does notinclude the impact of probable losses
where we cannot reasonably
estimate such losses.

Critical
accounting
policyCritical accounting
estimates

Key subjective assumptions or
judgments by management

regulatory investigations thatare indeterminate or still at an
early stage.
•

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

94

Effect of changes in estimates andassumptions during year ended March 31,
2023

Item 6. Directors, Senior Management and Employees
A. Directors and Senior Management.
Directors
The following table presents information about our Directors as of June 28, 2023.
Name(Date of Birth)

Koji Nagai(Jan. 25, 1959)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Director
Chairman of the Board Directors
Member of the Nomination Committee
Member of the Compensation Committee
Director and Chairman of Nomura
Securities Co., Ltd.

95

Business Experience

Apr. 1981 Joined the Company
Apr. 2003 Director of Nomura Securities
Co., Ltd.
Jun. 2003 Executive Officer of Nomura
Securities Co., Ltd.
Apr. 2007 Executive Officer (Executive
Managing Director) of Nomura
Securities Co., Ltd.
Oct. 2008 Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Apr. 2009 Executive Officer andExecutive Vice President of
Nomura Securities Co., Ltd.
Apr. 2011 Co-COO and Deputy Presidentof Nomura Securities Co., Ltd.
Apr. 2012 Senior Managing Director of
the Company
Director, Representative
Executive Officer and Presidentof Nomura Securities Co., Ltd.
Aug. 2012 Representative Executive
Officer & Group CEO of theCompany
Director, Representative
Executive Officer and Presidentof Nomura Securities Co., Ltd.
Jun. 2013 Director, Representative
Executive Officer & GroupCEO of the Company
Director, Representative
Executive Officer and Presidentof Nomura Securities Co., Ltd.
Apr. 2017 Director, Representative
Executive Officer, President &Group CEO of the Company
Director and Chairman of
Nomura Securities Co., Ltd.
Apr. 2020 Director and Chairman of theCompany (Current)
Director and Chairman of
Nomura Securities Co., Ltd.
(Current)

Name(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Kentaro Okuda(Nov. 7, 1963)

Director, Representative Executive
Officer, President and Group CEO
Representative Director and President of
Nomura Securities Co., Ltd.

96

Business Experience

Apr. 1987 Joined the Company
Apr. 2010 Senior Managing Director of
Nomura Securities Co., Ltd.
Apr. 2012 Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Aug. 2012 Senior Corporate Managing
Director of the Company
Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Apr. 2013 Senior Managing Director of
the Company
Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Apr. 2015 Senior Managing Director of
the Company
Executive Vice President of
Nomura Securities Co., Ltd.
Apr. 2016 Senior Managing Director of
the Company
Executive Officer andExecutive Vice President of
Nomura Securities Co., Ltd.
Apr. 2017 Senior Managing Director of
the Company
Executive Vice President of
Nomura Securities Co., Ltd.
Apr. 2018 Executive Officer and Group
Co-COO of the Company
Director, Executive Officer and
Deputy President of Nomura
Securities Co., Ltd.
Apr. 2019 Executive Officer, Deputy
President and Group Co-COO
of the Company
Apr. 2020 Representative Executive
Officer, President & GroupCEO of the Company
Representative Director of
Nomura Securities Co., Ltd.
Jun. 2020 Director, Representative
Executive Officer, President &Group CEO of the Company
Representative Director of
Nomura Securities Co., Ltd.
Jun. 2021 Director, Representative
Executive Officer, President &Group CEO of the Company(Current)
Representative Director andPresident of Nomura Securities
Co., Ltd. (Current)Name(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Yutaka Nakajima(Aug. 2, 1965)

Director, Representative Executive Officer
and Deputy President
Representative Director and Deputy
President of Nomura Securities Co., Ltd.

97

Business Experience

Apr. 1988 Joined the Company
Apr. 2011 Senior Managing Director of
Nomura Securities Co., Ltd.
May. 2015 Senior Managing Director of
the Company
Apr. 2016 Senior Managing Director of
the Company
Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Apr. 2017 Senior Managing Director of
the Company
Executive Managing Director
and Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Apr. 2018 Senior Managing Director of
the Company
Executive Managing Directorand Executive Vice President of
Nomura Securities Co., Ltd.
Apr. 2019 Senior Managing Director of
the Company
Director and Executive Vice
President of Nomura Securities
Co., Ltd.
Apr. 2021 Senior Managing Director of
the Company
Representative Director and
Deputy President of Nomura
Securities Co., Ltd.
Apr. 2023 Representative Executive
Officer and Deputy President of
the Company
Representative Director and
Deputy President of Nomura
Securities Co., Ltd.
Jun. 2023 Director, Representative
Executive Officer and Deputy
President of the Company(Current)
Representative Director and
Deputy President of Nomura
Securities Co., Ltd. (Current)Name(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business Experience

Shoji Ogawa(Aug. 9, 1964)

Director
Member of the Audit Committee (fulltime)Member of the Board Risk Committee
Corporate Auditor of Nomura Asia Pacific
Holdings Co., Ltd
Non-Executive Director of Nomura
Holding America Inc.
Non-Executive Director of Instinet
Incorporated

Apr. 1987 Joined the Company
Apr. 2007 Head of Investment Banking
Strategic Planning Dept ofNomura Securities Co., Ltd.
Oct. 2008 Head of Capital Markets Dept.
and Capital Solutions Dept. of
Nomura Securities Co., Ltd.
Jul. 2009 Head of Capital Markets Dept.
of Nomura Securities Co., Ltd.
Apr. 2012 Head of Investment Banking
Strategic Planning Dept. of
Nomura Securities Co., Ltd.
Jul. 2013 Head of Office of Audit
Committee of the Company
Head of Office of Audit
Committee of Nomura
Securities Co., Ltd.
Aug. 2016 Head of Office of
Non-Executive Directors andAudit Committee of theCompany
Head of Office of
Non-Executive Directors andAudit Committee of Nomura
Securities Co., Ltd.
Apr. 2017 Senior Managing Director andGroup Internal Audit of theCompany
Senior Managing Director andInternal Audit of Nomura
Securities Co., Ltd.
Apr. 2021 Advisor of the Company
Jun. 2021 Director of the Company(Current)

Noriaki Shimazaki(Aug. 19, 1946)

Outside Director
Chairman of the Audit Committee
Member of the Board Risk Committee
Director of Nomura Securities Co., Ltd.
Outside Director of Loginet Japan Co.,Ltd.

Apr. 1969 Joined Sumitomo Corporation
Jun. 1998 Director of Sumitomo
Corporation
Apr. 2002 Representative Director andManaging Director of
Sumitomo Corporation
Jan. 2003 Member of the BusinessAccounting Council of the
Financial Services Agency
Apr. 2004 Representative Director andSenior Managing Executive
Officer of Sumitomo
Corporation
Apr. 2005 Representative Director andExecutive Vice President of
Sumitomo Corporation

98

Name
(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business ExperienceJan. 2009

Trustee of the IASC Foundation(currently, IFRS Foundation)
Jul. 2009 Special Advisor of Sumitomo
Corporation
Jun. 2011 Director of the Financial
Accounting Standards
Foundation
Chairman of Self-regulation
Board and Public Governor of
the Japan Securities Dealers
Association
Sep. 2013 Advisor of the IFRS Foundation
Asia-Oceania Office
Advisor of the JapaneseInstitute of Certified Public
Accountants (Current)
Jun. 2016 Outside Director of theCompany (Current)
Director of Nomura Securities
Co., Ltd. (Current)
Aug. 2019 Senior Advisor of the IFRSFoundation Asia-Oceania
Office (Current)
Kazuhiko Ishimura(Sep. 18, 1954)

Outside Director
Chairman of the Nomination Committee
Chairman of the Compensation
Committee
President and CEO of the National
Institute of Advanced Industrial Scienceand Technology
Outside Director of Ricoh Company, Ltd.

99

Apr. 1979 Joined Asahi Glass Co., Ltd.
(currently, AGC Inc.) (“AGC”)
Jan. 2006 Executive Officer and GM of
Kansai Plant of AGC
Jan. 2007 Senior Executive Officer and
GM of Electronics & Energy
General Division of AGC
Mar. 2008 Representative Director andPresident & COO of AGC
Jan. 2010 Representative Director andPresident & CEO of AGC
Jan. 2015 Representative Director &Chairman of AGC
Jan. 2018 Director & Chairman of AGC
Jun. 2018 Outside Director of theCompany (Current)
Mar. 2020 Director of AGC
Apr. 2020 President of the National
Institute of Advanced Industrial
Science and Technology
Apr. 2021 President and CEO of the
National Institute of Advanced
Industrial Science andTechnology (Current)Name(Date of Birth)

Laura Simone
Unger(Jan. 8, 1961)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Outside Director
Chairperson of the Board Risk Committee
Independent Director of Navient
Corporation
Independent Director of Nomura Holding
America Inc.
Independent Director of Nomura
Securities International, Inc.
Independent Director of Nomura Global
Financial Products Inc.
Independent Director of Instinet Holdings
Incorporated

Business ExperienceJan. 1988

Oct. 1990

Nov. 1997
Feb. 2001
Jul. 2002
May 2003
Aug. 2004
Jan. 2010
Dec. 2010
Nov. 2014
Jun. 2018

Enforcement Attorney of the
U.S. Securities and Exchange
Commission (SEC)
Counsel of the U.S. Senate
Committee on Banking,Housing, and Urban Affairs
Commissioner of the SEC
Acting Chairperson of the SEC
Regulatory Expert of CNBC
Independent Consultant of
JPMorgan Chase & Co.
Independent Director of CA
Inc.
Special Advisor of Promontory
Financial Group
Independent Director of CITGroup Inc.
Independent Director ofNavient Corporation (Current)
Outside Director of theCompany (Current)

Victor Chu(Jun. 20, 1957)

Outside Director
Member of the Audit Committee
Member of the Board Risk Committee
Chairman and Chief Executive Officer ofFirst Eastern Investment Group
Non-Executive Director of Grand Harbour
Marina PLC
Chair of Council, University College
LondonCo-Chair, International Business Councilof the World Economic Forum
Independent Director of Airbus SE

Dec. 1982 Solicitor of the Supreme Court,
Hong Kong
Jan. 1988 Chairman and Chief Executive
Officer of First Eastern
Investment Group (Current)
Oct. 1988 Director and Council Memberof the Hong Kong Stock
Exchange
Jun. 1992 Advisory Committee Memberof the Securities and Futures
Commission, Hong Kong
Aug. 2003 Foundation Board Member ofthe World Economic Forum
Apr. 2018 Independent Director of Airbus
SE (Current)
Jun. 2021 Outside Director of theCompany (Current)

J.Christopher
Giancarlo(May 12, 1959)

Outside Director
Member of the Board Risk Committee
Senior Counsel of Willkie Farr &Gallagher LLP
Independent Director of the American
Financial Exchange
Principal of Digital Dollar Project
Independent Director of Nomura
Securities International, Inc.
Independent Director of Nomura Global
Financial Products Inc.

Sep. 1984

100

Associate Attorney of Mudge
Rose Guthrie Alexander &FerdonOct. 1985 Associate Attorney of Curtis,
Mallet-Prevost, Colt & Mosle
Jan. 1992 Attorney, Founding Partner ofGiancarlo & Gleiberman
Sep. 1997 Attorney, (Equity) Partner ofThelen Reid Brown Raysman &SteinerName(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business Experience

Apr. 2000 Vice President and LegalCounsel of Fenics Software
Apr. 2001 Executive Vice President of
GFI Group Inc.
Jun. 2014 Commissioner of the U.S.
Commodity Futures Trading
Commission
Jan. 2017 Chairman of the U.S.
Commodity Futures Trading
Commission
Oct. 2019 Independent Director of theAmerican Financial Exchange(Current)
Jan. 2020 Senior Counsel of Willkie
Farr & Gallagher LLP (Current)
Jun. 2021 Outside Director of theCompany (Current)
Patricia Mosser(Feb. 14, 1956)

Outside Director
Member of the Board Risk Committee
Senior Research Scholar*
Director of the MPA Program in
Economic Policy Management*
Director of Central Banking and Financial
Policy**Positions at Columbia University, Schoolof International and Public Affairs
Independent Director of Nomura Holding
America Inc.

101

Jul. 1986

Assistant Professor, Economics
Department, Columbia
University
Jan. 1991 Economist and Vice Presidentof the Federal Reserve Bank of
New York (FRBNY)
Nov. 2006 Senior Vice President, FRBNY,
Member of the FX Forum,
Executive Meeting of East Asia
and Pacific (EMEAP) Central
Banks, Bank for International
Settlements
Jan. 2007 Board Member of the American
Economic Association’s
Committee on the Status of
Women in the Economics
Profession
Jun. 2007 Member of the Markets
Committee, Bank forInternational Settlements
Jan 2009 Acting Systemic Open Market
Account Manager for theFederal Open Market
Committee (FOMC)
Oct. 2013 Deputy Director of the Office ofFinancial Research (OFR), U.S.
Treasury Department
Oct. 2013 Member of the Deputies
Committee of the Financial
Stability Oversight Council(FSOC)

Name(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business Experience

Jun. 2015

Jun. 2021

Senior Research Scholar andDirector of Central Banking and
Financial Policy at Columbia
University’s School ofInternational and Public Affairs(Current)
Outside Director of theCompany (Current)

Takahisa Takahara(Jul. 12, 1961)

Outside Director
Member of the Nomination Committee
Member of the Compensation Committee
Representative Director, President & CEOof Unicharm Corporation
Outside Director of Sumitomo
Corporation

Apr. 1991 Joined Unicharm Corporation
Jun. 1995 Director of Unicharm
Corporation
Apr. 1996 Director, General Manager ofProcurement Division and
Deputy General Manager ofInternational Division ofUnicharm Corporation
Jun. 1997 Senior Director of Unicharm
Corporation
Apr. 1998 Senior Director, General
Manager of Feminine Hygiene
Business Division of Unicharm
Corporation
Oct. 2000 Senior Director, Responsible
for Management Strategy ofUnicharm Corporation
Jun. 2001 Representative Director,
President of Unicharm
Corporation
Jun. 2004 Representative Director,
President & CEO of Unicharm
Corporation (Current)
Jun. 2021 Outside Director of theCompany (Current)

Miyuki Ishiguro(Oct. 26, 1964)

Outside Director
Member of the Board Risk Committee
Partner of Nagashima Ohno &Tsunematsu
President-Elect of the Inter-Pacific Bar
Association (IPBA)
Outside Audit & Supervisory Board
Member, Lasertec Corporation
Outside Audit & Supervisory Board
Member, Benesse Holdings, Inc.

Apr. 1991 Registered as an
Attorney-at-Law and Joined
Tsunematsu Yanase & Sekine(currently Nagashima Ohno &Tsunematsu)
Jan. 1999 Partner of Tsunematsu
Yanase & Sekine
Jan. 2000 Partner of Nagashima Ohno &Tsunematsu(Current)
Oct. 2004 Visiting Professor, Columbia
Law School
May. 2015 Secretary General of the InterPacific Bar Association (IPBA)
Feb. 2016 Council Member of the Radio
Regulatory Council (Ministry ofInternal Affairs andCommunications)

102

Name
(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business Experience

Apr. 2016 Council Member of theManagement Council ofHitotsubashi University
Apr. 2018 Vice President of the Tokyo Bar
Association
Apr. 2019 Vice President of the InterPacific Bar Association (IPBA)
Mar. 2020 President-Elect of the InterPacific Bar Association (IPBA)(Current)
Jun. 2023 Outside Director of theCompany (Current)
Masahiro Ishizuka(Apr. 21, 1960)

Outside Director
Member of the Audit Committee

Oct. 1984

Joined Deloitte Haskins andSells International (*)
Apr. 1988 Registered as a Certified Public
Accountant
Jun. 1997 Partner of Tohmatsu & Co. (*)
Jan. 1998 Deloitte & Touche LLP basedin New York
Oct. 2007 Head of Audit and Technology
Dept. of Business
Administrative Division, of
Tohmatsu & Co. (*)
Oct. 2010 Head of Office of Manual, ofQuality Administrative
Division, of Deloitte Touche
Tohmatsu LLC
Oct. 2010 Vice Chairman of the Audit
Standards Committee of theJapanese Institute of Certified
Public Accountants
Nov. 2015 The Board Member of Deloitte
Tohmatsu LLC
Jun. 2017 Executive Officer, General
Manager of the Reputation
Quality Risk Management
Division of Deloitte Tohmatsu
LLC and Deloitte Touche
Tohmatsu LLC
Jun. 2022 Ethics Officer of Deloitte
Tohmatsu Group
Jun. 2023 Outside Director of theCompany (Current)*Each of the corporations iscurrently Deloitte Touche
Tohmatsu LLC

Among the Directors listed above Noriaki Shimazaki, Kazuhiko Ishimura, Laura Simone Unger, Victor
Chu, J.Christopher Giancarlo, Patricia Mosser, Takahisa Takahara, Miyuki Ishiguro and Masahiro Ishizuka
satisfy the requirements for an “Outside Director” under the Companies Act.
103

Executive Officers
The following table presents information about our Executive Officers as of June 28, 2023.
Name(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business Experience

Kentaro Okuda(Nov. 7, 1963)

See “Directors” under this Item 6.A.

See “Directors” under this Item 6.A.

Yutaka Nakajima(Aug. 2, 1965)

See “Directors” under this Item 6.A.

See “Directors” under this Item 6.A.

Toshiyasu Iiyama(Feb. 24, 1965)

Executive Officer and Deputy President
Chief of Staff
Representative Director and Deputy
President of Nomura Securities Co., Ltd.

Apr. 1987 Joined the Company
Apr. 2012 Senior Managing Director of
Nomura Securities Co., Ltd.
Apr. 2015 Senior Managing Director of
the Company
Senior Managing Director of
Nomura Securities Co., Ltd.
Apr. 2016 Senior Managing Director of
the Company
Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.
Apr. 2018 Senior Managing Director of
the Company
Executive Officer andExecutive Vice
President of Nomura Securities
Co., Ltd.
Apr. 2019 Senior Managing Director of
the Company
Executive Vice President of
Nomura Securities Co., Ltd.
Apr. 2020 Senior Managing Director of
the Company
Representative Director and
Deputy President of Nomura
Securities Co., Ltd.
Apr. 2021 Executive Officer and Chief
Health Officer of the Company
Representative Director and
Deputy President of Nomura
Securities Co., Ltd.
Apr. 2023 Executive Officer, Deputy
President and Chief of Staff ofthe Company (Current)
Representative Director and
Deputy President of Nomura
Securities Co., Ltd. (Current)

104

Name
(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Takumi Kitamura(Nov. 26, 1966)

Executive Officer
Chief Financial Officer
Director, Executive Vice President of
Nomura Securities Co., Ltd.
Director of Nomura Asia Pacific Holdings
Co., Ltd

Apr. 1990 Joined the Company
Apr. 2016 Executive Officer and Chief
Financial Officer of theCompany
Executive Officer and Financial
Officer of Nomura Securities
Co., Ltd.
Apr. 2019 Executive Officer and Chief
Financial Officer of theCompany
Director and Senior Corporate
Managing Director of Nomura
Securities Co., Ltd.
Apr. 2021 Executive Officer and Chief
Financial Officer of theCompany
Director, Executive Vice
President of Nomura Securities
Co., Ltd.
Oct. 2021 Executive Officer, Chief
Financial Officer and Chief
Administrative Officer of theCompany
Director, Executive Vice
President of Nomura Securities
Co., Ltd.
Apr. 2022 Executive Officer and Chief
Financial Officer of theCompany (Current)
Director, Executive Vice
President of Nomura Securities
Co., Ltd. (Current)

Sotaro Kato
(Oct. 9, 1969)

Executive Officer
Chief Risk Officer
Director and Senior Corporate Managing
Director of Nomura Securities Co., Ltd.
Director of Nomura Holding America Inc.

Sep. 2002 Joined the Company
Apr. 2020 Executive Officer and Chief
Risk Officer of the Company(based in New York) (Current)
Director and Senior Corporate
Managing Director of Nomura
Securities Co., Ltd. (Current)

Yosuke Inaida(Oct. 6, 1967)

Executive Officer
Chief Compliance Officer
Senior Corporate Managing Director of
Nomura Securities Co., Ltd.
Director of Nomura Asia Pacific Holdings
Co., Ltd

Apr. 1991 Joined the Company
Apr. 2015 Senior Managing Director of
Nomura Securities Co., Ltd.
Apr. 2020 Senior Corporate Managing
Director of Nomura Securities
Co., Ltd.

105

Business ExperienceName(Date of Birth)

Responsibilities and Status within Nomura/
Other Principal Business Activities

Business Experience

Apr. 2022 Executive Officer and Chief
Compliance Officer of theCompany (Current)
Senior Corporate Managing
Director of Nomura Securities
Co., Ltd. (Current)
Toru Otsuka(Jun. 5, 1967)

Executive Officer
Strategy and Regulatory Affairs
Director and Senior Corporate Managing
Director of Nomura Securities Co., Ltd.

Apr. 1991 Joined the Company
Apr. 2018 Senior Managing Director of
the Company
Senior Managing Director of
Nomura Securities Co., Ltd.
May. 2019 Senior Managing Director andChief Strategy Officer of theCompany
Senior Managing Director of
Nomura Securities Co., Ltd.
Apr. 2021 Executive Officer and Chief
Strategy Officer of theCompany
Director and Senior Corporate
Managing Director of Nomura
Securities Co., Ltd.
Apr. 2023 Executive Officer and Strategy
and Regulatory Affairs(Current)
Director and Senior Corporate
Managing Director of Nomura
Securities Co., Ltd. (Current)

Christopher Willcox Executive Officer(Feb. 25, 1968)
Head of Wholesale
Director of Nomura Holding America Inc.

May. 2014 CEO of J.P. Morgan AssetManagement Inc.
May. 2021 Director and Co-CEO of
Nomura Holding America Inc.
Director, President and CEO of
Nomura Securities
International, Inc.
Director, President and CEO of
Nomura Global Financial
Products Inc.
Apr. 2022 Director, President and CEO of
Nomura Holding America Inc.
Director, President and CEO of
Nomura Securities
International, Inc.
Director, President and CEO of
Nomura Global Financial
Products Inc.
Oct. 2022 Executive Officer and Head ofWholesale of the Company(based in New York) (Current)
Director of Nomura Holding
America Inc. (Current)106

B. Compensation of Statutory Officers
Our compensation program for our Statutory Officers is outlined as following. ”Statutory Officers” refers to
directors and any statutorily designated officers of an entity; Statutory designated officers refer to “Directors”
and “Executive Officers.”
1.

Compensation Program of Statutory Officers

The following table presents a summary of the key elements of the compensation program provided to our
Statutory Officers.
Items

Overview of our Compensation Program of Statutory Officers

Key performance indicator (KPI) used for
Performance-Linked Compensation

Return on Equity (ROE).
Please see “Item 5. Operating and Financial Review
and Prospects -A. Operating Results-progress on Key
Performance Indicators” for calculation
methodology.

Basis of Performance-Linked Compensation

Determined through consideration of factors such as
quantitative evaluation based on the actual results for
the KPI against the target values, and qualitative
benchmarking against competitor compensation
programs by the Compensation Committee.

Basis of compensation of each Statutory Officers

Determined by factors such as individual roles andresponsibilities, respective jurisdiction’s regulations
and compensation level in addition to otherqualitative elements.

Nominating Committee and Compensation Committee

Chairman: Kazuhiko Ishimura (Outside Director)
Member: Takahisa Takahara (Outside Director)
Member: Koji Nagai (Chairman of Board of
Directors, non-executive director)

2.

Compensation Policy and Compensation Scheme(1) Compensation policy
Compensation for Statutory Officers of Nomura Holdings Inc.’s (“NHI”) is subject to two policies: theNomura Group compensation policy that applies to our employees and Statutory Officers (the “Basic Policy”)
and the Compensation Policy for Directors and Executive Officers of NHI (the “Policy for Statutory Officers”)
that applies to Statutory Officers. We have developed these policies to enable us to achieve sustainable growth,deliver long-term growth in shareholder value, deliver excellence to our clients, enhance our competitive strength
in the global markets and enhance our reputation. The Compensation Committee reviews and updates thesepolicies at least annually.
We have established a compensation policy for our officers and employees, including Senior Managing
Directors of NHI and directors of our subsidiaries but exclude Directors and Executive Officers of NHI. This
policy is referred as our “Employee Policy”.

107The following picture presents relationship for three policies above.

Basic Policy(For all employees and statutory officers)

Policy for
Statutory
Officers(For Statutory
Officers of NHI)

Employee
Policy(For all officers andemployees excl. NHIStatutory Officers)

Basic Policy
Compensation Governance
As a company with three Board Committees, as defined under Japanese corporate law, NHI has established
an independent statutory Compensation Committee. A majority of the Committee which comprises primarily
Outside Directors as members. The Committee has established both our Basic Policy and our Compensation
Policy for Statutory Officers, based on which compensation for Directors and Executive Officers of NHI isdetermined.
With respect to the relevant policies and total compensation for our officers and employees other than NHI’s
Statutory Officers, decisions regarding employment and remuneration matters are delegated to our “Human
Resources Committee” (“HRC”) by the Executive Management Board of NHI. The HRC is chaired by the GroupCEO and at a minimum, composed of the Chief Finance Officer and Chief Risk Management Officer. The HRC
determines above matters with support from respective remuneration committees in each region.
Compensation Policies and Practices for Nomura Group’s Talent
We believe our employees are our key assets in contributing to society, as in line with our mission of “Wehelp to enrich society through our expertise in capital markets”.
Compensation for Nomura Group’s Talent is designed to support achieving sustainable corporate growth,
increasing corporate value over the medium and long-term and maintaining sound and effective risk
management, while contributing to the interest of our shareholders. In addition, to ensure that we attract, retain,
motivate and develop talent, the level and structure of remuneration takes into account the roles andresponsibilities of individuals as well as the market pay levels in Japan and overseas, and in line with any
relevant laws and regulatory expectations.
1) Sustainable corporate growth and increasing corporate value over the medium and long-term
Our employee compensation policies aims to reinforce our corporate philosophy, to promote healthy
corporate culture and behavior in line with our “Code of Conduct” and to align to our commitment toEnvironmental, Social and Governance (“ESG”) considerations.
Based on a pay-for-performance principle, our employee compensation programs are designed to becompetitive in the market and aligned to our strategic objectives and the goal of sustainable growth andincreasing corporate value over the medium and long-term.

1082) Sound and effective risk management
We seek to maintain sound and effective risk management with an appropriate risk appetite. We update
performance measurement metrics and indicators which referred to determining compensation by consideringboth financial and non-financial risks underlying with each business. Qualitative factors such as conduct,
compliance, professional ethics and corporate philosophy are also considered in determining the final amount of
remuneration provided to each officer and employee, which may include a reduction in compensation as a resultof disciplinary actions.
3) Alignment of interests with shareholders
Certain of our officers and employees’ remuneration package includes stock-based compensation awards
linked to share price of NHI with an appropriate deferral period applied, in order to align with shareholders’interests.
In addition, when granting deferred stock-based compensation, in the event of a material revision of ourconsolidated financial statements or a material violation of applicable rules and policies, employees’
compensation may be subject to suspension, reduction or forfeiture or clawback.
Approval and Revision of the Basic Policy
The approval, amendment or repeal of the Basic Policy are governed by our Compensation Committee of
NHI.
Policy for Statutory Officers
The compensation of our Statutory Officers consists of base salaries, annual cash bonuses and long-term
incentive plans.
1) Base salary•

Base salary is determined based on factors such as professional background, career history,
responsibilities and market compensation levels for similar roles at our competitors.

•

With respect to our Executive Officers, a portion of base salary may be paid in deterred stock-based
compensation awards with appropriate vesting periods to align with the medium to long-term interestsof our shareholders.

2) Annual bonuses•

Annual bonuses of Directors and Executive Officers are determined considering both quantitative andqualitative factors. Quantitative factors include financial group and divisional performance. Qualitative
factors include the achievement of individual goals and individual contribution.

•

In principle, a certain portion of annual bonus payment are deferred.

•With respect to the Group CEO, given the overall group responsibilities for business execution, thebasic amount of the annual bonus is calculated based on the level of achievement against KPI(s). In
addition, competitor benchmarking is considered when determining final annual bonus amount.

•With respect to Statutory Officers other than the Group CEO, the annual bonus amount is determined in
the same way as the CEO annual bonus, namely using a standard baseline and considering factors suchas specific roles and responsibilities of individual, relevant local remuneration regulations andcompensation levels in each jurisdiction, and individual performance.
109•

Audit Committee members and Outside Directors are not eligible to receive a bonus in order to maintaintheir independence from business execution.

•

Mid-term Incentive Plan
In principle, a certain portion of annual bonus may be granted through deferred stock-based
compensation awards with appropriate vesting periods to align with the medium-term interests ofshareholders.

•

Clawback
In specific circumstances, unvested bonuses may be subject to forfeitures. Any voluntary resignation,material modification of our consolidated financial statements or, material breaches of our internal
policies and regulations, among others, may require such forfeiture. Additionally, clawback provisions
may apply to paid and/or vested bonuses.

3) Long-term Incentive Plan•

Long-term incentive plans may be awarded to Directors and Executive Officers, depending on factors
such as their individual responsibilities, and performance.

•

Payments under long-term incentive plans are made when a certain level of achievements areaccomplished. Payments are made in stock-based awards with appropriate vesting periods to align withthe long-term interests of our shareholders.

Employee Policy
Based on our “Basic Policy”, we have established our Employee Policy which applies to our officers andemployees, including Senior Managing Directors of NHI and directors of subsidiaries of NHI but excluding our
Statutory Officers of NHI.
Matters not provided for in our Employee Policy are governed by the provisions of our Basic Policy.
Compensation GovernanceSupervised by the HRC, regional committees governing employee compensation are composed from
representatives of Finance, Risk Management, Compliance, Human Resources, and other departments asappropriate. These regional committees implement our global compensation governance rules.
The proposed compensation of control function departments (such as Risk Management, Compliance, andInternal Audit) is not permitted to be determined by our front office business and performance evaluation of
employees in these departments is not permitted to be determined solely by performance of the businesssupported by the individuals.
Compensation Policies and Practices
We believe our employees are our key assets in contributing to society, as in line with our mission of “Wehelp to enrich society through our expertise in capital markets”.
Compensation for our employees is designed to support achieving sustainable corporate growth, increasing
corporate value over the medium and long-term and maintaining sound and effective risk management, while atthe same time positively contributing to the interest of our shareholders. In addition, to ensure that we attract,
retain, motivate and develop talent, the level and structure of remuneration takes into account the roles andresponsibilities of individuals as well as market pay levels in Japan and overseas, in line with any relevant laws
and regulatory expectations.
1101) Sustainable corporate growth and increasing corporate value over the medium and long-term
The compensation policies for our employees aims to realize the Nomura Group corporate philosophy
which underpins its “Mission of Contributing to Society” and its “Vision of being a Trusted Partner”, being
based on the “Values of Entrepreneurial Leadership, Teamwork and Integrity”, to promote a healthy, diverse
corporate culture and the right behavior in line with our “Code of Conduct” and to facilitate a greater alignment
with ESG considerations. Based on a pay-for-performance principle, our compensation programs are designed tobe competitive in the market and aligned to our strategic objectives and the goal of sustainable growth andincreasing corporate value over the medium and long-term. Compensation at Nomura reflects and aligns with theperformance of Nomura Group as a whole, its divisions, as well as individual employees, taking into accountboth the business strategy and market considerations.
2) Sound and effective risk management
We seek to maintain sound and effective risk management with an appropriate risk appetite. It applies its
performance measurement standards and indicators when determining compensation in consideration bothfinancial and non-financial risks in each business, taking a holistic approach. Qualitative factors such as conduct,
compliance, professional ethics and corporate philosophy are considered in determining the final amount of
remuneration provided to each officer and employee, which may include a reduction in compensation. Risk
Management, Compliance and Finance divisions provide key inputs into the overall risk and performanceassessment to ensure appropriate consideration of these factors.
The compensation package offered to our employees comprises two key elements:•

Fixed compensation—reflects the role, responsibilities and experience of the employee; and•Variable compensation—designed to incentivize performance, encourage the right behaviors and drive
employee growth and development. For higher paid employees, a portion of variable compensation may
be deferred, balancing short-term with our medium and long-term interests.

We seek to balance the components of compensation between fixed and variable according to theemployee’s role and seniority. In principle, the proportion of compensation that is deferred increases with
employee’s compensation. Guaranteed compensation is allowed only in limited circumstances such as for newhires or, where allowed, strategic business needs. Multi-year guarantees are typically prohibited.
3) Alignment of interests with shareholders
Deferred variable compensation intends to align the interests of employees and NHI shareholders, and toencourage a long-term, sustainable approach senior management and highly paid employees. For Nomura Group
employees who receive a certain amount of remuneration, a portion of the remuneration is stock-related
remuneration linked to shares of NHI with an appropriate deferral period applicable, in order to align withshareholders’ interests.
In addition, when granting stock-related compensation, in the event of a material revision of Nomura Groupfinancial statements or a material violation of Nomura Group rules and policies, employees’ compensation may
be subject to suspension, reduction, forfeiture of rights, or, for some employees located in specific jurisdictions/regions even re-payment (so-called “clawbacks”).
Approval and Revision of the Employee Policy
The approval, amendment or repeal of the Employee Policy can be made by our HRC of NHI.

111

(2) Compensation for Statutory Officers
1) Scheme of Compensation for Statutory Officers.
The following picture presents scheme of compensation for Statutory Officers.

Scheme of compensation for Directors and Executive Officers
Deferred Compensation

Total Compensation
(TC)

NSU

exception

Variable
Compensation

RSU(Annual Bonus)
Cash
bonus

Fixed
Compensation(Base Salary)

Basically half amount ofannual bonus is paid asdeferred compensation,
which is RSU in principle.
Phantom stock (NSU)
may be applied as an
exception.

Basically half amount will be paid by cash
after the end of the relevant fiscal year.

Equitylinked
compens Granted based on responsibility of
Executive Officers.
ation
Base
cash
SalaryPaid by cash based on the position and responsibility.

The following table presents total compensation (“TC”) awarded to our President and Group CEO for theyear ended March 31, 2023 was as follows.
Base salary (Fixed compensation)
Deferred stockbased
Total fixedCashpayment awards
compensation(Millions of yen, except percentages)
Annual bonus (Variable compensation)
Deferred stockTotal
based compensation Total variable
compensation
Cashawardscompensation
(TC)

102.0
26.5%

132.9
34.5%

17.4
4.5%

119.4
31.0%

132.9
34.5%

265.8
69.0%

385.2
100.0%•The percentage of base salary (fixed compensation) and annual bonus (variable compensation) as apercentage of TC is approximately 30% and 70%.

•

Deferred stock-based payment awards granted during the year have future vesting requirements before
they are settled in NHI common stock. As our President and Group CEO has overall responsibility for
Nomura Group performance, approximately 40% of TC is awards through deferred stock-based
compensation awards to align with the interests of our shareholders and medium-term incentives.

1122) Calculation method of annual bonuses•

The calculation method for Annual Bonuses for the Statutory Officers, differs depending on theposition.

•

Based on ROE, which is our KPI, for the purpose of calculating the Annual Bonus in order to align with
our management vision and business strategy.

•Specific calculation method for annual bonus by position, see the “Policy for Statutory Officers” 2)
Annual bonus.

<Result of performance indicator used for the calculation of the Annual Bonus>
Performance Indicator

Target value

Actual value for the Fiscal Year

8.0%

3.1%

ROE . . . . . . . . . . . . . . . . . . . . . . . . . .
3)

Matters relating to Deferred Compensation(1) Non-monetary Deferred Compensation (stock-based compensation)
Under our Basic Policy and the Policy for Statutory Officers, basically half of the aggregate amount of theAnnual Bonus of the Statutory Officers is paid in deferred compensation, other than for Audit Committee
members and Outside Directors, who are not bonus eligible. In principle, stock-based compensation (Restricted
Stock Units (“RSUs”)) is granted.
(2) Outline of current Deferred Compensation Awards.
The outline of current Deferred Compensation Awards is as follows.
Type of award

RSU awards

Key features•••

NSU awards••

Introduced as the main form of deferred stock-based compensation award
since the year ended March 31, 2018.
Settled in the Company’s common stock.
Graded vesting period requiring service to Nomura typically over three
years.
Linked to the price of the Company’s common stock Cash-settled in local
currency.
Graded vesting period requiring service to Nomura typically over three
years.

(3) Effect of payment of deferred compensation in the form of equity-related compensation
We expect following effects by delivering compensation in the form of deferred stock-based compensation
which has vesting term and its economic value of the compensation is linked to the price of the Company’scommon stock.
•

Alignment of interests with shareholders.

•

Clawbacks for voluntary resignation and material breach of our internal policies.

•

Medium-term incentives (*) and retention by providing an opportunity for the economic value ofDeferred Compensation at the time of grant to grow as a result of an increase in share prices during theperiod of time from grant to vesting.
113

*With the introduction of RSUs, as the main form of Deferred Compensation, in principle, payments in
respect of Deferred Compensation will consist of share of NHI’s common stock instead of cash over thethree year vesting period beginning from the fiscal year following the fiscal year in which the deferredcompensation was granted. Since the number of shares to be paid is determined based on the price of
NHI’s share at the time of grant, increases in NHI’s share price will increase the economic value ofDeferred Compensation at the time of vesting. Since the increase in share prices reflects the increase incorporate value, this form of Deferred Compensation allows for the alignment of interests with those ofshareholders, in addition to the medium-term incentive effects achieved for the Statutory Officers.

•

Promotion of cross-divisional collaboration and cooperation by providing a common goal of increasing
corporate value over the medium to long term.

As a result of these benefits, deferred compensation awards are also recommended by regulators in key
jurisdictions in which we operate.
The vesting period over which our Deferred Compensation awards vest is generally three years or above.
This is in line with the “Principles for Sound Compensation Practices” issued by the Financial Stability Board
which recommends, among other things, a deferral period of three years or above.
(4) Clawbacks Provisions in Deferred Compensation Arrangements
Certain triggers such as voluntary resignation, material modification of the financial statements or, material
breach of Nomura Group’s internal policies and regulations subject to forfeiture, reduction or clawback (where
the individual contracts include a “clawback clause”).
3.

Compensation for Statutory Officers

Pursuant to the fundamental approach and framework of compensation as described above, and as acompany which adopts a committee-based corporate governance system, the Compensation Committee of NHI
determines the compensation of NHI’s Statutory Officers in accordance with our compensation policies.
3-1. Aggregate compensation
1) Aggregate Compensation for Statutory Officers
The following table presents a summary of aggregate compensation awarded to our Statutory Officers forthe year ended March 31, 2023.
Millions of yen
Year ended March 31, 2023
Non-monetary
Performancecompensation
linked(Deferredcompensation(4) Compensation)(5)

Number ofPeople(1)Base salary(2,3)

Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Outside Directors included in above) . . . . . .
Executive Officers . . . . . . . . . . . . . . . . . . . . .

10
(8)
8

¥ 354
(197)
516

¥ 80
( — )
688

¥ 65
( — )
577

¥ 499
(197)
1,781

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

¥ 871

¥ 768

¥ 641

¥2,280Total(1) Includes 1 Executive Officer appointed in October 2022. There were 10 Directors and 8 Executive Officers
as of March 31, 2023. Compensation to Directors who were concurrently serving as Executive Officers is
included “Executive Officers.”

114

(2) Base salary of ¥871 million includes other compensation (commuter pass allowance) of ¥0.25 million.
(3) In addition to base salary, ¥16 million of corporate housing benefits, including housing allowance andrelated tax adjustments, were provided to Executive Officers.
(4) Represents the annual cash bonus paid for the year ended March 31, 2023.
(5) Represents deferred sock-based compensation awards such as RSU and share options granted in current andprior years recognized as expense in the consolidated financial statement of income for the year ended
March 31, 2023.
(6) Total compensation paid to Outside Directors for their services to subsidiaries of the Company was¥68 million for the year ended March 31, 2023.
2) Compensation of Directors and Executive Officers receiving ¥100 million or above
The following table presents details of the compensation paid to our Directors and Executive Officers forthe year ended March 31, 2023 where such total amount given to the individual is ¥100 million or above.

Name

Company

Role

Koji Nagai . . . . . . . . . . . .

NomuraKentaro Okuda(1) . . . . . . .

NomuraTomoyuki Teraguchi . . . .

NomuraToshiyasu Iiyama . . . . . . .

NomuraTakumi Kitamura . . . . . . .

NomuraSotaro Kato . . . . . . . . . . . .

NomuraYosuke Inaida . . . . . . . . . .

NomuraToru Otsuka . . . . . . . . . . .

NomuraWillcox, Christopher(2) . . .

NomuraChairman of
the Board of
Directors
Director,
Representative
Executive
Officer(Group CEO)
Director,
Representative
Executive
Officer
Executive
Officer
Executive
Officer
Executive
Officer
Executive
Officer
Executive
Officer
Executive
Officer

Millions of yen
Fixed Remuneration(Basic Compensation)
Variable Compensation
Total
Total
Deferred
fixed
Deferredvariable
Total
stock-based compen- Cash stock-based compen- compenBase salary payment
sation bonus compensation sation sation(TC)¥ 91.2¥ 0.0¥ 91.2¥ 79.8¥ 79.8¥159.5¥250.7¥102.0¥17.4¥119.4¥132.9¥132.9¥265.8¥385.2¥ 75.6¥14.4¥ 90.0¥ 73.1¥ 73.1¥146.2¥236.2¥ 66.0¥13.2¥ 79.2¥ 53.2¥ 53.2¥106.3¥185.5¥ 60.0¥13.2¥ 73.2¥ 39.9¥ 39.9¥ 79.7¥152.9¥ 54.0¥ 9.6¥ 63.6¥ 33.3¥ 33.3¥ 66.5¥130.1¥ 54.0¥ 9.6¥ 63.6¥ 33.3¥ 33.3¥ 66.5¥130.1¥ 54.0¥ 9.6¥ 63.6¥ 33.3¥ 33.3¥ 66.5¥130.1¥ 50.8¥ 4.8¥ 55.6¥289.5¥399.8¥689.3¥744.9(1) In addition to fixed compensation, ¥16 million of corporate housing costs, including housing allowance and related tax adjustments, were
provided.
(2) Appointed as an Executive Officer since October 2022.

115

3) Meetings of our Compensation Committee during the year
The following table presents a summary of the meetings held by our Compensation Committee during theyear ended March 31, 2023, attendance at such meeting and summary of key matters discussed.
Date

Summary of the discussion and the resolution

April 26, 2022

Resolution:•

June 20, 2022

Resolution:

•
•

•

•
•

September 26, 2022

Resolution:
Discussion:•

December 6, 2022
February 15, 2023

Discussion:
Discussion:•••

March 1, 2023

Reporting:•March 31, 2023

Resolution:•

Discussion:•

Annual bonus in respect of the year ended
March 31, 2022.
Appointment of the Director with the right toconvoke the board of directors meetings.
The Director who reports the executions of thecommittee’s duties to the board of thedirectors meetings.
The Compensation Policy of Nomura Groupand base salary of the Directors and Executive
Officers.
Base salary of Statutory Officers.
Granting of deferred stock-based
compensation awards (RSUs) to Directors andExecutive Officers.
Individual base salary of the Directors andExecutive Officers.
Group CEO compensation.
Director Pay compensation.
Review of policies governing compensation
for Directors and Executive Officers.
Appointment of an Outside Director as anadvisor to a subsidiary of the Company.
Annual base salary of Statutory Officers theyear ended March 31, 2024.
Review of policies governing compensation
for Directors and Executive Officers.

Attendance recordsof the member

All members attended
All members attended

All members attended

All members attended
All members attended
All members attended
All members attended

Through discussions and resolutions of the above topics, our Compensation Committee confirmed thatcompensation for our Directors and Executive Officers in respect of the year ended March 31, 2023 isappropriate and consistent with our relevant compensation policies. A summary of these meetings have beenreported to the Board of Directors.

116

Stock Acquisition Rights (“SARs”)
The following table presents information regarding unexercised Stock Acquisition Rights as of March 31,
2023.
March 31, 2023

Series of SARs

Allotment Date

Number of
Shares under
SARs

Stock Acquisition Rights
No.65
Stock Acquisition Rights
No.70
Stock Acquisition Rights
No.71
Stock Acquisition Rights
No.74
Stock Acquisition Rights
No.75
Stock Acquisition Rights
No.76
Stock Acquisition Rights
No.77
Stock Acquisition Rights
No.78
Stock Acquisition Rights
No.79
Stock Acquisition Rights
No.80
Stock Acquisition Rights
No.81
Stock Acquisition Rights
No.84
Stock Acquisition Rights
No.85

June 5, 2015

111,600

June 7, 2016

173,900

June 7, 2016

936,200

November 11, 2016 2,364,400
June 9, 2017

189,200

June 9, 2017

697,000

June 9, 2017

1,005,900

June 9, 2017262,500

June 9, 2017374,300

June 9, 2017

136,200

June 9, 2017

136,200

November 17, 2017 2,474,300
November 20, 2018 2,308,300

Exercise Periodof SARs

From April 20, 2018
to April 19, 2023
From April 20, 2018
to April 19, 2023
From April 20, 2019
to April 19, 2024
From November 11, 2018
to November 10, 2023
From April 20, 2018
to April 19, 2023
From April 20, 2019
to April 19, 2024
From April 20, 2020
to April 19, 2025
From April 20, 2021
to April 19, 2026
From April 20, 2022
to April 19, 2027
From April 20, 2023
to April 19, 2028
From April 20, 2024
to April 19, 2029
From November 17, 2019
to November 16, 2024
From November 20, 2020
to November 19, 2025

Exercise
Price perPaid-in
Share under Amount for
SARs
SARs

¥

1

¥352

¥

1

¥208

¥

1

¥198

¥593

¥360

¥

1

¥342

¥

1

¥334

¥

1

¥325

¥

1

¥312

¥

1

¥303

¥

1

¥282

¥

1

¥273

¥684

¥398

¥573

¥329

(1) SARs (including those granted to Directors and Executive Officers of Nomura which are stated in the tablebelow) are issued in conjunction with deferred compensation plan.
(2) The number of shares issuable under SARs is subject to adjustments under certain circumstances including
stock splits.

117

SARs Held by Directors and Executive Officers of Nomura
The following table presents details of Stock Acquisition Rights held by Directors and Executive Officers asof March 31, 2023.
March 31, 2023
Numbers of Holders
Directors andNumber of
Executive Officers
Shares under(excluding
SARs
Outside Directors)

Series of SARs

Stock Acquisition Rights No.71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock Acquisition Rights No.75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock Acquisition Rights No.76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock Acquisition Rights No.77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

764
300
812
808

4
1
4
4

Pension, Retirement or Similar Benefits
See Note 12 “Employee benefit plans” in our consolidated financial statements included in this annual
report.
C. Board Practices.
Information Concerning Directors
The Companies Act of Japan states that a Company with Three Board Committees (as defined below) must
establish three committees; a nomination committee, an audit committee and a compensation committee. The
members of each committee are chosen from the company’s directors, and the majority of the members of eachcommittee must be outside directors. At a Company with Three Board Committees, the board of directors isentitled to establish the basic management policy for the company, has decision-making authority over certain
prescribed matters, and supervises the execution by the executive officers of their duties. Executive officers andrepresentative executive officers appointed by a resolution adopted by the board of directors manage the businessaffairs of the company, based on a delegation of authority by the board of directors.
The Company has a corporate governance structure that separates management oversight functions frombusiness execution functions (“Company with Three Board Committees”). Through this governance structure,
the Company aims to strengthen management oversight, increase the transparency of the Company’s
management and expedite the decision-making process within the Nomura Group. The Company has, in addition
to the Board of Directors and the Nomination/Audit/Compensation committees, established the “Board Risk
Committee”, which is a non-statutory committee that has the purpose of deepening the oversight of risk
management by the Board of Directors.
An outline of the Company’s Board of Directors, Nomination Committee, Audit Committee, Compensation
Committee and Board Risk Committee is provided below.
Board of Directors
The Company’s Board of Directors consists of Directors who are elected at a general meeting ofshareholders and the Company’s Articles of Incorporation provide that the number of Directors shall not exceed
twenty. The term of office of each Director expires upon the conclusion of the ordinary general meeting ofshareholders with respect to the last fiscal year ending within one year after their appointment. Directors may
serve any number of consecutive terms. From among its members, the Company’s Board of Directors elects the
Chairman. The Company’s Board of Directors met eleven times during the fiscal year ended March 31, 2023. Asa group, the Directors attended 98% of the total number of meetings of the Board of Directors during the year.
118

The Board of Directors has the authority to determine the Company’s basic management policy and supervise theexecution by the Executive Officers of their duties. Although the Board of Directors also has the authority tomake decisions with regard to the Company’s business, most of this authority has been delegated to the
Executive Officers by a resolution adopted by the Board of Directors. There are no Directors’ service contracts
with the Company or any of its subsidiaries providing for benefits upon termination of employment. As ofJune 27, 2023, the members of the Board of Directors are Koji Nagai, Kentaro Okuda, Yutaka Nakajima, Shoji
Ogawa, Noriaki Shimazaki, Kazuhiko Ishimura, Laura Simone Unger, Victor Chu, J. Christopher Giancarlo,
Patricia Mosser, Takahisa Takahara, Miyuki Ishiguro, and Masahiro Ishizuka. Koji Nagai is the Chairman of theBoard.
Nomination Committee
The Nomination Committee, in accordance with law and the Company’s Regulations of the Nomination
Committee, determines the details of any proposals concerning the election and dismissal of Directors to besubmitted to general meetings of shareholders by the Board of Directors. The Nomination Committee met eighttimes during the fiscal year ended March 31, 2023. As a group, the member Directors attended all of themeetings of the Nomination Committee during the year. As of June 27, 2023, the members of the Nomination
Committee are Outside Directors Kazuhiko Ishimura and Takahisa Takahara, and Koji Nagai, a Director notconcurrently serving as an Executive Officer. Kazuhiko Ishimura is the Chairman of this Committee.
Audit Committee
The Audit Committee, in accordance with law and the Company’s Regulations of the Audit Committee,(i) audits the execution by the Directors and the Executive Officers of their duties and the preparation of audit
reports and (ii) determines the details of proposals concerning the election, dismissal or non-reappointment of theaccounting auditor to be submitted to general meetings of shareholders by the Board of Directors. With respect tofinancial reporting, the Audit Committee has the statutory duty to examine financial statements and business
reports to be prepared by Executive Officers designated by the Board of Directors and is authorized to report its
opinion to the ordinary general meeting of shareholders.
The Audit Committee met fifteen times during the fiscal year ended March 31, 2023. As a group, themember Directors attended all of the meetings of the Audit Committee during the year. As of June 27, 2023, themembers of the Audit Committee are Outside Directors Noriaki Shimazaki, Victor Chu and Masahiro Ishizuka,
and Shoji Ogawa (a full-time member of the Audit Committee), a Director not concurrently serving as an
Executive Officer. Noriaki Shimazaki is the Chairman of this Committee.
Compensation Committee
The Compensation Committee, in accordance with law and the Company’s Regulations of theCompensation Committee, determines the Company’s policy with respect to the determination of the details ofeach Director and Executive Officer’s compensation. The Compensation Committee also determines the detailsof each Director and Executive Officer’s actual compensation. The Compensation Committee met seven times
during the fiscal year ended March 31, 2023. As a group, the member Directors attended all of the meetings of
the Compensation Committee during the year. As of June 27, 2023, the members of the Compensation
Committee are Outside Directors Kazuhiko Ishimura and Takahisa Takahara, and Koji Nagai, a Director notconcurrently serving as an Executive Officer. Kazuhiko Ishimura is the Chairman of this Committee.
Board Risk Committee
The Board Risk Committee is a non-statutory organ, in accordance with the Company’s Regulations of theBoard Risk Committee, of which purpose is to assist the Board of Directors in supervising Nomura Group’s risk
management and to contribute to sophistication of the risk management. At meetings of the Board Risk
119

Committee, to further strengthen the risk management of Nomura Group, consent to the Risk Appetite Statement
and the main design of the risk management framework, analysis of risk environment/verification results andfuture projections, supervision of overall execution of risk management and medium-to long-term risk strategies
are mainly deliberated. The status of execution of the function in the Board Risk Committee is reported to theBoard of Directors. The Board Risk Committee met five times during the fiscal year ended March 31, 2023. As agroup, the member Directors attended 93% of the total number of the meetings of the Board Risk Committee
during the year. As of June 27, 2023, the members of the Board Risk Committee are Outside Directors Laura
Simone Unger, Noriaki Shimazaki, Victor Chu, J. Christopher Giancarlo, Patricia Mosser and Miyuki Ishiguro,
and Shoji Ogawa, a Director not concurrently serving as an Executive Officer. Laura Simone Unger is the
Chairperson of this Committee.
Limitation of Director Liability
In accordance with Article 33, Paragraph 2 of the Company’s Articles of Incorporation and Article 426,
Paragraph 1 of the Companies Act of Japan, the Company may execute agreements with Directors (excluding aperson who serves as an executive director, etc.) that limit their liability to the Company for damages suffered by
the Company if they acted in good faith and without gross negligence. Accordingly, the Company has enteredinto agreements to limit Companies Act of Japan Article 423 Paragraph 1 liability for damages (“Limitation of
Liability Agreements”) with each of the following Directors: Shoji Ogawa, Noriaki Shimazaki, Kazuhiko
Ishimura, Laura Simone Unger, Victor Chu, J. Christopher Giancarlo, Patricia Mosser, Takahisa Takahara,
Miyuki Ishiguro, and Masahiro Ishizuka. Liability under each such agreement is limited to either ¥20 million or
the amount prescribed by laws and regulations, whichever is greater.
Directors and Officers Liability Insurance Contracts
The Company has entered into directors and officers liability insurance contracts set forth in Article 430-3,
Paragraph 1 of the Companies Act of Japan with insurance companies, which have persons such as directors,
executive officers, senior managing directors, auditors, and senior employees of the Company and its
subsidiaries, etc. as insured persons. Under such insurance contracts, there will be an indemnification of losses,
such as compensation for damages and litigation costs, incurred by an insured person due to a claim for loss ordamage caused by an act (including an omission) carried out on the basis of the position, such as director or
officer, held by the insured at the Company, and all insurance premiums of insureds have been entirely borne by
the Company. However, there are certain exclusions applicable to such insurance contracts such as losses caused
by a deliberately fraudulent or dishonest act of individuals such as directors/officers.
Information Concerning Executive Officers
Executive Officers of the Company are appointed by the Board of Directors, and the Company’s Articles ofIncorporation provide that the number of Executive Officers shall not exceed forty-five. The term of office ofeach Executive Officer expires upon the conclusion of the first meeting of the Board of Directors convened after
the ordinary general meeting of shareholders for the last fiscal year ending within one year after each Executive
Officer’s assumption of office. Executive Officers may serve any number of consecutive terms. Executive
Officers have the authority to determine matters delegated to them by resolutions adopted by the Board of
Directors and to execute business activities.

120

D. Employees.
The following table shows the number of our employees as of the dates indicated:
2021

March 31,
2022

2023

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,330 15,213 15,131
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,769
2,820
2,937
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,152
2,257
2,387
Asia and Oceania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,151
6,295
6,320
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26,402

26,585

26,775

As of March 31, 2023, we had 15,131 employees in Japan, including 7,799 in our Retail Division, 1,093 in
our Investment Management Division and 1,646 in our Wholesale Division. In overseas, we had 11,644
employees, of which 2,937 were located in Europe, 2,387 in the Americas, and 6,320 in Asia and Oceania.
As of March 31, 2023, 8,095 of Nomura Securities’ employees in Japan were members of the Nomura
employees’ union, with which we have a labor contract. The Company and labor union communicate frequently
in order to resolve labor-related matters.
We have not experienced any strikes or other labor disputes in Japan or overseas and consider our employee
relations to be excellent.
E. Share Ownership.
The following table shows the number of shares owned by our Directors and Executive Officers as of
May 31, 2023. As of that date, none of them owned 1% or more of our issued and outstanding shares. None of
the shares referred to below have different voting rights.
Directors
Name

Number of
Shareholdings

Koji Nagai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kentaro Okuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yutaka Nakajima . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shoji Ogawa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noriaki Shimazaki . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kazuhiko Ishimura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Laura Simone Unger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Victor Chu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
J.Christopher Giancarlo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patricia Mosser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Takahisa Takahara . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miyuki Ishiguro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Masahiro Ishizuka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

492,942359,747
652,919
45,49830,339—(1,000ADR)(1)——(100ADR)(1)881——

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,582,326(1) ADRs are not included in the total.

121

Executive Officers
Number of
Shareholdings

Name

Kentaro Okuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yutaka Nakajima . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toshiyasu Iiyama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Takumi Kitamura . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sotaro Kato . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yosuke Inaida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toru Otsuka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Christopher Willcox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

See above
See above
131,133
89,886
13,911
147,80942,265—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

425,004

For information regarding stock options granted to our Directors and Executive Officers, see Item 6.B“Compensation of Statutory Officers” of this annual report.
F. Disclosure of a registrant’s action to recover erroneously awarded compensation.
As described elsewhere in this Amendment No. 1, the Company’s consolidated financial statements as ofMarch 31, 2022 and 2023 and for the three years ended March 31, 2023 have been restated. However, theCompany has concluded that no recovery of erroneously awarded compensation is required under its
compensation recovery policy required by the NYSE listing standards adopted pursuant to Rule 10D-1. The
Company reached this conclusion because the Company’s policy applies to compensation received on or after
October 2, 2023. No incentive compensation received on or after October 2, 2023 was based upon the attainmentof a financial reporting measure affected by this restatement of the Company’s consolidated financial statements.
(In each case, terms in the Company’s compensation recovery policy, as well as the foregoing disclosure, aredefined consistently with Rule 10D-1.)
Item 7. Major Shareholders and Related Party Transactions
A. Major Shareholders.
According to a statement on Schedule 13G (Amendment No.8) filed by BlackRock, Inc. with the SEC on
February 1, 2023, BlackRock, Inc. owned 219,073,596 shares, representing 6.8% of the issued shares of theCompany’s common stock. However, the Company has not confirmed the status of these shareholdings as ofMarch 31, 2023.
According to a statement on Schedule 13G (Amendment No.3) filed by Sumitomo Mitsui Trust Holdings,
Inc. with the SEC on February 3, 2023, Sumitomo Mitsui Trust Holdings, Inc. owned 200,521,900 shares,
representing 6.2% of the issued shares of the Company’s common stock. However, the Company has notconfirmed the status of these shareholdings as of March 31, 2023.
To our knowledge, we are not directly or indirectly owned or controlled by another corporation, by any
government or by any other natural or legal person severally or jointly. We know of no arrangements theoperation of which may at a later time result in a change of control of Nomura. Also as of March 31, 2023, there
were 273 Nomura shareholders of record with addresses in the U.S., and those U.S. holders held 380,576,618
shares of the Company’s common stock, representing 11.8% of Nomura’s then issued common stock. As of
March 31, 2023, there were 38,182,446 ADSs outstanding, representing 38,182,446 shares of the Company’scommon stock or 1.2% of Nomura’s then issued common stock. Our major shareholders above do not havedifferent voting rights.

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B. Related Party Transactions.
Nomura Research Institute, Ltd.
NRI develops and manages computer systems and provides research services and management consulting
services. We are one of the major clients of NRI.
We held 22.3% of NRI’s outstanding share capital as of March 31, 2023.
For the year ended March 31, 2023, we purchased ¥19,602 million worth of software and computerequipment and paid ¥45,046 million for other services to NRI, while received ¥770 million from NRI.
Nomura has participated in a secondary offering at Nomura Research Institute as a seller on December 5,
2022, and sold 13,000,000 ordinary shares it held at ¥37,528 million to third parties. As a result of thetransaction, a gain of ¥28.0 billion was recognized in earnings within Revenue—Other during the year ended
March 31, 2023. NRI remains an equity method affiliate of NHI.
See also Note 18 “Affiliated companies and other equity-method investees” in the consolidated financial
statements included in this annual report.
Directors
During the fiscal year ended March 31, 2023, no loans that were outstanding were made to our directors
other than in the normal course of business, on substantially the same terms, including interest rates andcollateral, as those prevailing at the time for comparable transactions with other customers, involving no morethan the normal risk of collectability and presenting no other unfavorable features.
C. Interests of Experts and Counsel.
Not applicable.
Item 8. Financial Information
A. Consolidated Statements and Other Financial Information.
Financial Statements
The information required by this item is set forth in our consolidated financial statements included
elsewhere in this annual report.
Legal Proceedings
For a discussion of our litigation and related matters, see Note 19 “Commitments, contingencies andguarantees” in the consolidated financial statements included in this annual report.
Dividend Policy
For our dividend policy, see Item 5.B “Liquidity and Capital Resources—Capital Management—
Dividends” in this annual report.
B. Significant Changes.
Except as disclosed in this annual report, there have been no significant changes since March 31, 2023.

123

Item 9. The Offer and Listing
A. Offer and Listing Details.
See Item 9.C. “The Offer and Listing—Markets”.
B. Plan of Distribution.
Not applicable.
C. Markets.
The principal trading market for the Company’s common stock is the Tokyo Stock Exchange. The
Company’s common stock has been listed on the Tokyo Stock Exchange and the Nagoya Stock Exchange since1961. The trading symbol on those trading markets is “8604.”
Since December 2001, the Company’s common stock has been listed on the NYSE in the form of ADSs
evidenced by ADRs. Each ADS represents one share of common stock. The trading symbol is “NMR.” The
Company’s common stock has been listed on the Singapore Stock Exchange since 1994. The trading symbol is“N33.”
D. Selling Shareholders.
Not applicable.
E. Dilution.
Not applicable.
F. Expenses of the Issue.
Not applicable.
Item 10. Additional Information
A. Share Capital.
Not applicable.
B. Memorandum and Articles of Association.
Register, Objects and Purposes in the Company’s Articles of Incorporation
Nomura Holdings, Inc. is incorporated in Japan and is registered in the Commercial Register (Shogyo
Tokibo in Japanese) maintained by the Tokyo Legal Affairs Bureau.
Article 2 of the Company’s Articles of Incorporation, which is an exhibit to this annual report, states that theCompany’s purpose is, by means of holding shares, to control and manage the business activities of domestic
companies which engage in the following businesses and the business activities of foreign companies which
engage in the businesses equivalent to the following businesses:(1) Financial instruments business prescribed in the Financial Instruments and Exchange Law;
(2) Banking business prescribed in the Banking Law and trust business prescribed in the Trust Business
Law; and(3) Any other financial services and any business incidental or related to such financial services.
124

(4) Other than as prescribed in the items above, any other business ancillary or related to survey andresearch in connection with the economy, financial or capital markets, or infrastructure or undertaking
the outsourcing thereof.
Provisions Regarding the Company’s Directors
Although there is no provision in the Company’s Articles of Incorporation as to a Director’s power to voteon a proposal or arrangement in which the Director is materially interested, under the Companies Act and theCompany’s Regulations of the Board of Directors, a Director must abstain from voting on such matters at
meetings of the Board of Directors.
As a Company with Three Board Committees, the compensation of the Company’s Directors and Executive
Officers is determined by the Compensation Committee (see Item 6.C. “Board Practices-Information
Concerning Directors-Compensation Committee” in this annual report). The Compensation Committee
establishes the policy with respect to the determination of the individual compensation (including variable
compensation) of each of the Company’s Directors and Executive Officers and makes determinations inaccordance with that compensation policy.
With respect to borrowing powers, these as well as other powers relating to the management of the business(with the exception of certain exclusions specified under the Companies Act) have been delegated to the
Executive Officers by the Board of Directors as a Company with Three Board Committees.
There is no mandatory retirement age for the Company’s Directors under the Companies Act or theCompany’s Articles of Incorporation.
There is no requirement concerning the number of shares an individual must hold in order to qualify him or
her to serve as a Director of the Company under the Companies Act or the Company’s Articles of Incorporation.
Pursuant to the Companies Act and the Company’s Articles of Incorporation, the Company may, by aresolution adopted by the Company’s Board of Directors, release the liabilities of any Directors or Executive
Officers to the Company for damages suffered by the Company due to their acts taken in good faith and withoutgross negligence, to the extent permitted by the Companies Act and the Company’s Articles of Incorporation. In
addition, the Company may execute with Directors (excluding a person who serves as an executive director, etc.)
agreements that limit their liabilities to the Company for damages suffered by the Company if they acted in goodfaith and without gross negligence, to the extent permitted by the Companies Act and the Company’s Articles ofIncorporation. See Item 6.C. “Board Practices-Limitation of Director Liability” in this annual report.
Other Matters
For disclosures under the following items, see “Description of rights of each class of securities registeredunder Section 12 of the Securities Exchange Act of 1934” which is an exhibit to this annual report: Item 10.B.3,
B.4, B.5, B.6, B.7, B.8, B.9 and B.10.
C. Material Contracts.
Not applicable.
D. Exchange Controls.
Acquisition of Shares
The following summary is not intended to be a complete analysis of the prior notification or reporting
requirements under Japanese foreign exchange regulations as a result of the acquisition by investors of shares of125the Company. Potential investors should consult their own legal advisors on the consequences of the acquisitionof shares of the Company, including specifically the applicable notification, reporting and other procedures andany available exemption therefrom under Japanese foreign exchange regulations.
The Foreign Exchange and Foreign Trade Law of Japan and its related cabinet orders and ministerial
ordinances (“Foreign Exchange Regulations”) governs certain aspects relating to the acquisition and holding ofshares of the Company by “foreign investors,” as defined below.
If a foreign investor acquires shares of the Company and as a result of this acquisition directly or indirectly
holds 1% or more of the issued shares of the Company, together with its existing holdings and those of otherparties who have a close relationship with that foreign investor (the “closely-related person”), the foreign
investor is, in general, required to report the acquisition to the Minister of Finance and any other competent
ministers via the Bank of Japan within 45 days from the date of acquisition. If (i) the foreign investor or its
closely-related person will not become a board member of the Company, (ii) the foreign investor will not
propose, at a general shareholders meeting of the Company, a transfer or disposition of its business, and (iii) the
foreign investor will not have access to any non-public information regarding the Company’s technologies inrelation to its business, in general, a prior notification is exempted.
“Foreign investors” are generally defined as (i) individuals who are not residents in Japan, (ii) corporations
which are organized under the laws of foreign countries or whose principal offices are located outside Japan,(iii) corporations of which (a) 50% or more of the voting rights are held directly or indirectly by (i) and/or(ii) above, (b) a majority of officers consists of non-residents of Japan or (c) a majority of officers having thepower of representation consists of non-residents of Japan, and (iv) partnerships or limited partnerships engaging
in investment business, in which (a) 50% or more of the total amount of contributions are made directly or
indirectly by (i) and/or (ii) above or (b) a majority of the managing partners are (i) and/or (ii) above.
Dividends and Proceeds of Sale
Under the Foreign Exchange Regulations, dividends paid on, and the proceeds of sales in Japan of, shares
held by non-residents of Japan may in general be converted into any foreign currency and repatriated abroad.
Under the terms of the deposit agreement pursuant to which ADSs of the Company will be issued, the depositary
is required, to the extent that in its judgment it can convert yen on a reasonable basis into U.S. dollars andtransfer the resulting U.S. dollars to the U.S., to convert all cash dividends that it receives in respect of deposited
shares into U.S. dollars and to distribute the amount received (after deduction of applicable withholding taxes) tothe holders of ADSs.
“Non-residents of Japan” are generally defined as individuals who are not resident in Japan and corporations
whose principal offices are located outside Japan. Branches and other offices of Japanese corporations locatedoutside Japan are considered non-residents of Japan, and branches and other offices located within Japan of
non-resident corporations are considered residents of Japan.
E. Taxation.
U.S. Federal Income Taxation
This section describes the material U.S. federal income tax consequences of owning shares or ADSs. It
applies to you only if you are a U.S. holder (as defined below), you acquire your shares or ADSs in an offeringand you hold your shares or ADSs as capital assets for tax purposes. This discussion addresses only U.S. federal
income taxation and does not discuss all of the tax consequences that may be relevant to you in light of yourindividual circumstances, including foreign, state or local tax consequences, estate and gift tax consequences, andtax consequences arising under the Medicare contribution tax on net investment income or the alternative
126

minimum tax. This section does not apply to you if you are a member of a special class of holders subject tospecial rules, including:•a dealer in securities,•a trader in securities that elects to use a mark-to-market method of accounting for your securities
holdings,•

a tax-exempt organization,•a life insurance company,•a person that actually or constructively owns 10% or more of the combined voting power of our voting
stock or of the total value of our stock,•a person that holds shares or ADSs as part of a straddle or a hedging, conversion, integrated orconstructive sale transaction,•a person that purchases or sells shares or ADSs as part of a wash sale for tax purposes, or•a person whose functional currency is not the U.S. Dollar.

This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing andproposed regulations, published rulings and court decisions, all as currently in effect, as well as on the Income
Tax Convention Between the U.S. and Japan (“Japan-U.S. Tax Treaty”). These laws are subject to change,
possibly on a retroactive basis. In addition, this section is based in part upon the assumption that each obligationin the deposit agreement and any related agreement will be performed in accordance with its terms.
If a partnership holds the shares or ADSs, the U.S. federal income tax treatment of a partner will generally
depend on the status of the partner and the tax treatment of the partnership. A partner in a partnership holding theshares or ADSs should consult its tax advisor with regard to the U.S. federal income tax treatment of aninvestment in the shares or ADSs.
You are a U.S. holder if you are a beneficial owner of shares or ADSs and you are:•a citizen or resident of the U.S.,•a corporation created or organized in or under the laws of the U.S. or any political subdivision thereof,•an estate whose income is subject to U.S. federal income tax regardless of its source, or•a trust if a U.S. court can exercise primary supervision over the trust’s administration and one or more
U.S. persons are authorized to control all substantial decisions of the trust.

You should consult your own tax advisor regarding the U.S. federal, state, local and other tax consequences ofowning and disposing of shares and ADSs in your particular circumstances.
This discussion addresses only U.S. federal income taxation.
In general, and taking into account the earlier assumptions, for U.S. federal income tax purposes, if you hold
ADRs evidencing ADSs, you will be treated as the owner of the shares represented by those ADSs. Exchanges ofshares for ADRs, and ADRs for shares, generally will not be subject to U.S. federal income tax.
Taxation of Dividends
Subject to the passive foreign investment company (“PFIC”) rules discussed below, the gross amount of any
distribution that we pay out of our current or accumulated earnings and profits (as determined for U.S. federal
income tax purposes) is treated as a dividend that is subject to U.S. federal income taxation. If you are a127

non-corporate U.S. holder, dividends that constitute qualified dividend income will be taxable to you at thepreferential rates applicable to long-term capital gains provided that you hold the shares or ADSs for more than
60 days during the 121-day period beginning 60 days before the ex-dividend date and meet other holding periodrequirements. Dividends we pay with respect to the shares or ADSs generally will be qualified dividend income
provided that, in the year that you receive the dividend, the shares or ADSs are either readily tradable on an
established securities market in the United States or we are eligible for the benefits under the Japan-U.S. Tax
Treaty. Our ADSs are listed on the NYSE which is considered an established securities market in the U.S. We
therefore expect that dividends that we distribute on our ADSs will be qualified dividend income (provided thatyou satisfy the aforementioned holding period requirements). In addition, we believe that we are currently
eligible for the benefits of the Japan-U.S. Tax Treaty and we therefore expect that dividends on the shares will be
qualified dividend income (provided that you satisfy the aforementioned holding period requirements), but there
can be no assurance that we will continue to be eligible for the benefits of the Treaty.
You must include any Japanese tax withheld from the dividend payment in this gross amount even though
you do not in fact receive it.
The dividend is taxable when you, in the case of shares, or the depositary, in the case of ADSs, receive thedividend, actually or constructively. The dividend will not be eligible for the “dividends-received deduction”
generally allowed to U.S. corporations in respect of dividends received from other U.S. corporations. The amountof the dividend distribution that you must include in your income as a U.S. holder will be the U.S. Dollar value of
the Japanese Yen payments made, determined at the spot Japanese Yen/U.S. Dollar rate on the date the dividend
is distributed, regardless of whether the payment is in fact converted into U.S. Dollars. Generally, any gain orloss resulting from currency exchange fluctuations during the period from the date the dividend is distributed tothe date you, or the depositary on your behalf, convert the payment into U.S. Dollars will be treated as ordinary
income or loss and will not be eligible for the special tax rate applicable to qualified dividend income. The gainor loss generally will be income or loss from sources within the U.S. for foreign tax credit limitation purposes.
Distributions in excess of current and accumulated earnings and profits, as determined for U.S. federal income
tax purposes, will be treated as a non-taxable return of capital to the extent of your basis in the shares or ADSs
and thereafter as capital gain. However, we do not expect to calculate earnings and profits in accordance with
United States federal income tax principles. Accordingly, you should expect generally to treat distributions wemake as dividends.
Subject to certain limitations, the Japanese tax withheld in accordance with the Japan-U.S. Tax Treaty andpaid over to Japan will be creditable against your U.S. federal income tax liability. However, under United States
Treasury regulations, it is possible that such withholding tax will not be creditable unless you are eligible toclaim the benefits of the Japan-U.S. Tax Treaty and elect to apply the Japan-U.S. Tax Treaty. Special rules apply
in determining the foreign tax credit limitation with respect to dividends that are subject to the preferential tax
rates. To the extent a refund of the tax withheld is available under Japanese law or the Japan-U.S. Tax Treaty, theamount of tax withheld that is refundable will not be eligible for credit against your U.S. federal income tax
liability.
For foreign tax credit purposes, dividends will generally be income from sources outside the U.S. and will
generally be “passive income” for purposes of computing the foreign tax credit allowable to you.
Sale or Disposition of Shares or ADSs
Subject to the PFIC rules discussed below, if you sell or otherwise dispose of your shares or ADSs, you willrecognize capital gain or loss for U.S. federal income tax purposes equal to the difference between the U.S.
Dollar value of the amount that you realize and your tax basis, determined in U.S. Dollars, in your shares or
ADSs. Capital gain of a non-corporate U.S. holder is generally taxed at preferential rates where the property isheld for more than one year. The gain or loss will generally be income or loss from sources within the U.S. forforeign tax credit limitation purposes.
128

PFIC Rules
We do not expect our shares and ADSs to be treated as stock of a PFIC for U.S. federal income tax
purposes, but this conclusion is a factual determination that is made annually and thus may be subject to change.
Moreover, the application of the PFIC rules to a corporation, such as Nomura, that is primarily engaged in an
active business as a securities dealer is not entirely clear.
In general, if you are a U.S. holder, we will be a PFIC with respect to you if for any taxable year in which
you held our ADSs or shares:•

at least 75% of our gross income for the taxable year is passive income, or•at least 50% of the value, determined on the basis of a quarterly average, of our assets is attributable toassets that produce or are held for the production of passive income.

Passive income generally includes dividends, interest, royalties, rents (other than certain rents and royalties
derived in the active conduct of a trade or business), annuities and gains from assets that produce passive income.
If a foreign corporation owns at least 25% by value of the stock of another corporation, the foreign corporation istreated for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation, andas receiving directly its proportionate share of the other corporation’s income.
If we are treated as a PFIC, and you did not make a mark-to-market election, as described below, you will
be subject to special rules with respect to:•

any gain you realize on the sale or other disposition of your shares or ADSs, and•any excess distribution that we make to you (generally, any distributions to you during a single taxable,
other than distributions in the first taxable year that you hold the shares or ADSs, year that are greaterthan 125% of the average annual distributions received by you in respect of the shares or ADSs during
the three preceding taxable years or, if shorter, your holding period for the shares or ADSs that preceded
the taxable year in which you receive the distribution).

Under these rules:•

the gain or excess distribution will be allocated ratably over your holding period for the shares or ADSs,•

the amount allocated to the taxable year in which you realized the gain or excess distribution, or to prioryears before the first year in which we were a PFIC with respect to you, will be taxed as ordinary
income,•the amount allocated to each other previous year will be taxed at the highest tax rate in effect for thatyear, and•the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax
attributable to each such year.

Special rules apply for calculating the amount of the foreign tax credit with respect to excess distributions
by a PFIC.
If you own shares or ADSs in a PFIC that are regularly traded on a qualified exchange, they will be treatedas marketable stock, and you may elect to mark your shares or ADSs to market. If you make this election, youwill not be subject to the PFIC rules described above. Instead, in general, you will include as ordinary income
each year the excess, if any, of the fair market value of your shares or ADSs at the end of the taxable year overyour adjusted basis in your shares or ADSs. These amounts of ordinary income will not be eligible for thefavorable tax rates applicable to qualified dividend income or long-term capital gains. You will also be allowed
to take an ordinary loss in respect of the excess, if any, of the adjusted basis of your shares or ADSs over their129

fair market value at the end of the taxable year (but only to the extent of the net amount of previously included
income as a result of the mark-to-market election). Your basis in the shares or ADSs will be adjusted to reflect
any such income or loss amounts.
Your shares or ADSs will be treated as stock in a PFIC if we were a PFIC at any time during your holding
period in your shares or ADSs, even if we are not currently a PFIC. For purposes of this rule, if you make amark-to-market election with respect to your shares or ADSs, you will be treated as having a new holding period
in your shares or ADSs beginning on the first day of the first taxable year beginning after the last taxable year forwhich the mark-to-market election applies.
In addition, notwithstanding any election you make with regard to the shares or ADSs, dividends that you
receive from us will not constitute qualified dividend income to you if we are a PFIC (or treated as a PFIC withrespect to you) either in the taxable year of the distribution or the preceding taxable year. Dividends that you
receive that do not constitute qualified dividend income are not eligible for taxation at the preferential rates
applicable to qualified dividend income. Instead, you must include the gross amount of any such dividend paidby us out of our accumulated earnings and profits (as determined for U.S. federal income tax purposes) in yourgross income, and it will be subject to tax at rates applicable to ordinary income.
If you own shares or ADSs during any year that we are a PFIC with respect to you, you may be required tofile Internal Revenue Service Form 8621.
Japanese Taxation
The following is a summary of the principal Japanese tax consequences to owners of shares of the Company
who are non-resident individuals or non-Japanese corporations (“non-resident shareholders”) without apermanent establishment in Japan to which the relevant income is attributable. As tax laws are frequently revised,
the tax treatments described in this summary are also subject to changes in the applicable Japanese laws and/or
double taxation conventions occurring in the future, if any. This summary is not exhaustive of all possible tax
considerations which may apply to specific investors under particular circumstances. Potential investors should,
by consulting with their own tax advisers, satisfy themselves as to•the overall tax consequences of the acquisition, ownership and disposition of shares or ADSs, including
specifically the tax consequences under Japanese law,•

the laws of the jurisdiction of which they are resident, and•any tax treaty between Japan and their country of residence.

Generally, a non-resident shareholder is subject to Japanese withholding tax on dividends on the shares paidby the Company. A stock split is not subject to Japanese income or corporation tax, as it is characterized merely
as an increase of number of shares (as opposed to an increase of value of shares) from Japanese tax perspectives.
Conversion of retained earnings or legal reserve (but other than additional paid-in capital, in general) into statedcapital on a non-consolidated basis is not characterized as a deemed dividend for Japanese tax purposes, andtherefore such a conversion does not trigger Japanese withholding taxation (Article 2(16) of the JapaneseCorporation Tax Law and Article 8(1)(xiii) of the Japanese Corporation Tax Law Enforcement Order).
Unless an applicable tax treaty, convention or agreement reducing the maximum rate of withholding tax
applies, the rate of Japanese withholding tax applicable to dividends on listed shares such as those paid by theCompany to non-resident shareholders is currently 15%, except for dividends paid to any individual shareholder
who holds 3% or more of the issued shares for which the applicable rate is 20% (please refer to Article 170 and
Article 213(1)(i) of the Japanese Income Tax Law and Article 9-3(1)(i) of the Japanese Special Tax Measures
Law).

130

On December 2, 2011, the “Special measures act to secure the financial resources required to implement
policy on restoration after the East Japan Earthquake” (Act No. 117 of 2011) was promulgated and special surtax
measures on income tax were introduced to fund the restoration effort from the earthquake. Income tax andwithholding tax payers will need to pay a surtax, calculated by multiplying the base income tax with 2.1% for
25 years starting from January 1, 2013. As a result of the fractional tax rate increase, 15.315% is applicable until
December 31, 2037. If a non-resident taxpayer is a resident of a country that Japan has tax treaty with, as
described below, such non-residents will not be subject to the surtax to the extent that the applicable rate agreed
in the tax treaty is lower than the aggregate domestic rate.
Japan has income tax treaties, conventions or agreements whereby the above-mentioned withholding tax
rate is reduced, generally to 15% for portfolio investors, with, among others, Canada, Denmark, Finland,
Germany, Ireland, Italy, Luxembourg, New Zealand, Norway, and Singapore. Under the Japan-U.S. Tax Treaty,
the withholding tax rate on dividends is 10% for portfolio investors, provided that they do not have a permanentestablishment in Japan, or if there is a permanent establishment, the shares with respect to which such dividends
are paid are not effectively connected with such permanent establishment, and that they are qualified U.S.
residents eligible to enjoy treaty benefits. It shall be noted that, under the Japan-U.S. Tax Treaty, withholding tax
on dividends to be paid is exempt from Japanese taxation by way of withholding or otherwise for pension funds
which are qualified U.S. residents eligible to enjoy treaty benefits unless such dividends are derived from thecarrying on of a business, directly or indirectly, by such pension funds (please refer to Article 10(3)(b) of theJapan-U.S. Tax Treaty). In addition to the Japan-U.S. Tax Treaty, Japan currently has income tax treaties with,among others, the U.K., France, Australia, the Netherlands, Switzerland, Sweden and Belgium whereby thewithholding tax rate on dividends is also reduced from 15% to 10% for portfolio investors.
Non-resident shareholders who are entitled to a reduced treaty rate of Japanese withholding tax on payment
of dividends on the shares by the Company are required to submit the “Application Form for Income Tax
Convention regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on
Dividends” or the “Application Form for Income Tax Convention regarding Relief from Japanese Income Taxand Special Income Tax for Reconstruction on Dividends with respect to Foreign Depositary Receipt”, as thecase may be, in advance through the Company, which is the case for ADS holders, or (in cases where the relevant
withholding taxpayer for the dividend payment is not the Company but a financial institution in Japan) throughthe financial institution, to the relevant tax authority before payment of dividends. Non-resident shareholders
who receive dividends through a financial institution may select a simplified procedure with respect to dividends
payable on or after January 1, 2014. Under such procedure, non-resident shareholders who submit the “Special
Application Form for Income Tax Convention regarding Relief from Japanese Income Tax and Special Income
Tax for Reconstruction on Dividends of Listed Stocks” to the relevant tax authority through a financial institution
are deemed to have submitted the “Application Form for Income Tax Convention regarding Relief from Japanese
Income Tax and Special Income Tax for Reconstruction on Dividends” mentioned above with respect to any
dividend which will be paid by the Company to non-resident shareholders through the financial institution
thereafter, provided that such non-resident shareholders shall notify the financial institution of certain
information regarding the dividends before the payment of such dividends. Non-resident shareholders who do not
submit an application in advance will be entitled to claim the refund of withholding taxes withheld in excess of
the rate of an applicable tax treaty from the relevant Japanese tax authority. For Japanese tax purpose, the treaty
rate normally applies superseding the tax rate under the domestic law. However, due to the so-called“preservation doctrine” under Article 3-2 of the Special Measures Law for the Income Tax Law, Corporation Tax
Law and Local Taxes Law with respect to the Implementation of Tax Treaties, if the tax rate under the domestic
tax law is lower than that promulgated under the applicable income tax treaty, then the domestic tax rate is still
applicable. Consequently, if the domestic tax rate still applies, no treaty application is required to be filed.
Gains derived from the sale of shares outside Japan by a non-resident shareholder without a permanentestablishment in Japan as a portfolio investor, are, in general, not subject to Japanese income or corporation
taxes.

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Japanese inheritance and gift taxes at progressive rates may be payable by an individual who has acquired
shares as a legatee, heir or donee, even if the individual is not a Japanese resident.
You should consult your own tax advisers regarding the Japanese tax consequences of the acquisition,
ownership and disposition of the shares and ADSs in your particular circumstances.
F. Dividends and Paying Agents.
Not applicable.
G. Statement by Experts.
Not applicable.
H. Documents on Display.
The Company is subject to the informational requirements of the Securities Exchange Act of 1934 and, in
accordance therewith, the Company will file with the Securities and Exchange Commission annual reports on
Form 20-F within four months of the Company’s fiscal year-end and other reports and information on Form 6-K.
You can access the documents filed via the Electronic Data Gathering, Analysis, and Retrieval system on
the SEC’s website (http://www.sec.gov).
I. Subsidiary Information.
Not applicable.
J. Annual Report to Security Holders
If we are required to provide an annual report to security holders in response to the requirements ofForm 6-K, we will submit the annual report to security holders in electronic format in accordance with the
EDGAR Filer Manual.
Item 11. Quantitative and Qualitative Disclosures about Market, Credit and Other Risk
Overview of Risk Management
Business activities of Nomura Group are exposed to various risks such as market risk, credit risk,
operational risk and other risks caused by external factors. Nomura Group has established a risk management
framework to control, monitor and report those risks in a comprehensive manner in order to maintain financial
soundness and to sustain and enhance its enterprise value.
Risk Management
Nomura defines risks as (i) the potential erosion of Nomura’s capital base due to unexpected losses arisingfrom risks to which its business operations are exposed, such as market risk, credit risk, operational risk andmodel risk, (ii) liquidity risk, the potential lack of access to funds or higher cost of funding than normal levels
due to a deterioration in Nomura’s creditworthiness or deterioration in market conditions, and (iii) strategic risk,
the potential failure of revenues to cover costs due to a deterioration in the earnings environment or adeterioration in the efficiency or effectiveness of its business operations.
A fundamental principle established by Nomura is that all employees shall regard themselves as principalsof risk management and appropriately manage these risks. Nomura seeks to promote a culture of proactive risk132

management throughout all levels of the organization and to limit risks to the confines of its risk appetite. The
risk management framework that Nomura uses to manage these risks consists of its risk appetite, risk
management governance and oversight, the management of financial resources, the management of all risk
classes, and processes to measure and control risks. Furthermore, in response to the U.S. Prime Brokerage Event,
we are in the process of reviewing our risk management framework for considering improvements thereto. Eachof these key components is explained in further detail in this Item 11.
As a part of the efforts to enhance the risk management governance, the Board Risk Committee (the “BRC”)
was formally established on October 29, 2021 to discuss important risks independently of the execution side
within the high-level governance structure. The BRC assists the Board of Directors (the “BoD”) in supervisingsuch matters as (i) providing consent to Risk Appetite Statement, (ii) providing consent to the main design of therisk management framework, (iii) results of analysis and verification or future forecasts of risk environment, and(iv) supervision over execution state of the overall risk management and medium- to long-term risk strategies forcontributing to the sophistication of the Group’s risk management.
Nomura engages in the risk management through the Three Lines of Defense framework.
•

First Line of Defense: All executives and employees of the front office for Financial Risk and all
executives and employees for Non-Financial Risk are primarily responsible for risk management andassume the consequences associated with business execution and to provide evidence and justify that therisk arising from their business activities is in line with risk appetite.

•

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

•

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

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

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

Board Risk Committee
Board of Directors

Executive Management Board

Group Risk
Management Committee

Chief Financial
Officer

Chief Risk Officer
Group Risk Review
Committee

Global Transaction
Committee

Transaction Profile
Review Committee

Risk
Management

Electronic andAlgorithmic
Trading Risk
Oversight
Committee

Asset
Liability
Committee

Finance

Arrow: Delegation for deliberation and/or certain descision making
Dotted Arrow: Appointment, Supervision

Board of Directors
The BoD determines the policy for the execution of the business of Nomura and other matters prescribed inlaws and regulations, supervises the execution of Directors’ and Executive Officers’ duties and has the authority
to adopt, alter or abolish the regulations of the EMB.
Board Risk Committee
The BRC provides specialized oversight to deepen the oversight functions of the BoD. To ensure a highdegree of independence, the BRC is chaired by an outside director. The BRC contributes to more sophisticatedGroup risk management mainly in the areas outlined below:•

Amendment and abolition of the Risk Appetite Statement•

Change in risk management framework•

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

Execution state of the overall risk management and medium- to long-term risk strategies
134Executive Management Board
The EMB deliberates on and determines management strategy, the allocation of management resources andimportant management matters of Nomura, and seeks to increase shareholder value by promoting effective use ofmanagement resources and unified decision-making with regard to the execution of business. The EMB delegates
responsibility for deliberation of matters concerning risk management to the GRMC. Key responsibilities of the
EMB include the following:•

Resource Allocation—At the beginning of each financial year, the EMB determines the allocation ofmanagement resources and financial resources such as risk-weighted asset and unsecured funding tobusiness units and establishes usage limits for these resources;•

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

Group Risk Management Committee
Upon delegation from the EMB, the GRMC deliberates on or determines important matters concerning
integrated risk management of Nomura to assure the sound and effective management of its businesses. The
GRMC establishes a framework of integrated risk management consistent with Nomura’s risk appetite. The
GRMC supervises Nomura’s risk management by establishing and operating its risk management framework.
The GRMC reports the status of key risk management issues and any other matters deemed necessary by thecommittee chairman to the BoD and the EMB. In addition, the GRMC, upon delegation from the EMB, hasestablished the Risk Management Policy, describing Nomura’s overall risk management framework including thefundamental risk management principles followed by Nomura.
Group Risk Review Committee (the “GRRC”)
Upon delegation from the GRMC, the GRRC deliberates on or determines matters concerning the enterpriserisk management of Nomura Group from a practical point of view and thereby assuring the sound and effective
management of the businesses.
Transaction Profile Review Committee (the “TPC”)
The TPC deliberates on and makes decisions on matters relating to transactions and/or clients/counterparties
that require consideration of the Nomura Group’s reputational risk in view of the Nomura Group’s Code of
Conduct and Risk Appetite Statement, thereby ensuring the sound and effective management of the businesses.
Asset Liability Committee (the “ALCO”)
Upon delegation from the EMB and the GRMC, the ALCO deliberates on, based on Nomura’s risk appetite
determined by the EMB, balance sheet management, financial resource allocation, liquidity management andrelated matters. The ALCO reports to the GRMC the status of discussions at its meetings and any other matters
as deemed necessary by the committee chairman.
Global Transaction Committee (the “GTC”)
Upon delegation from the GRRC, the GTC deliberates on or determines individual transactions in line with
Nomura’s risk appetite determined by the EMB and thereby seeks to assure the sound and effective managementof Nomura’s businesses.
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Electronic and Algorithmic Trading Risk Oversight Committee (the “EATROC”)
The EATROC, upon delegation from the GRRC, shall be responsible for all matters relating to thedevelopment and implementation of a governance, risk and control management framework for Electronic andAlgorithmic Trading Activity within the Nomura’s Wholesale Division.
Other Committees
Global Risk Analytics Committee and the Model Risk Analytics Committee deliberate on or determine
matters concerning the development, management and strategy of models upon delegation from the CRO,
respectively. The primary responsibility of these committees is to govern and provide oversight of model
management, including the approval of new models and significant model changes. Both committees reportsignificant matters and material decisions taken to the CRO on a regular basis. The Global Collateral Steering
Committee deliberates on or determines Nomura’s collateral risk management, including concentrations,liquidity, collateral re-use, limits and stress tests, provides direction on Nomura’s collateral strategy and ensurescompliance with regulatory collateral requirements upon delegation from the CRO.
Chief Risk Officer
The CRO is responsible for setting the overall strategy and direction of the Risk Management Division. The
CRO is responsible for supervising the Risk Management Division and maintaining the effectiveness of the risk
management framework independently from the business units within Nomura. The CRO regularly reports on thestatus of Nomura’s risk management to the GRMC, and reports to and seeks the approval of the GRMC on
measures required for risk management.
Chief Financial Officer
The CFO is responsible for overall financial strategy of Nomura, and has operational authority andresponsibility over Nomura’s liquidity management based on decisions made by the EMB.
Other Responsible Officers
Officers, who oversee the functions in charge of Operational Risks in accordance with the Risk
Management Policy of Three Lines of Defense, are responsible for formulating the appropriate management
framework and taking the lead in designing Risk Appetites for Operational Risks they cover. They also cooperatewith CRO who is responsible for monitoring and maintaining of the effectiveness of the Risk Appetites.
The Chief Compliance Officer (“CCO”) is responsible for taking the lead in the coordination forformulating the appropriate management framework and designing Risk Appetite for Reputational Risk, with thecooperation of CRO. The CCO also cooperates with CRO who is responsible for monitoring and maintaining of
the effectiveness of the Risk Appetite.
Risk Policy Framework
Policies and procedures are essential tools of governance and define principles, rules and standards, and thespecific processes that must be adhered to in order to effectively manage risk at Nomura. Risk management
operations are designed to function in accordance with these policies and procedures.
Monitoring, Reporting and Data Integrity
Development, consolidation, monitoring and reporting of risk management information (“MI”) are
fundamental to the appropriate management of risk. The aim of all risk MI is to provide a basis for sound136

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

137

RMEP Overview
Following this incident, we conducted a comprehensive review of our risk management framework andconsidered a broad range of measures to further strengthen our risk management.
As an important measure of risk management enhancement, we established the Board Risk Committee (“BRC”) to provide specialized oversight to deepen the oversight functions of the Board of Directors. At the sametime, the existing committee to deliberate risk management matters on the executive side was partiallyreorganized, from the GIRMC to the GRMC, in order to effectively coordinate with the BRC on the supervisoryside. For details on the BRC and the GRMC, see ‘Risk Management Governance and Oversight’.
In addition, the Steering Committee for Enhancement of Risk Management (Steering Committee), which ischaired by Group CEO, was established in 2021 to promote the implementation of measures to enhance risk
management across the group. The Steering Committee deliberates on matters such as formulating andoverseeing the execution of enhancement measures, securing necessary resources, and developing a global
cooperation structure. Further, a Chief Transformation Officer (the “CTO”) leads efforts to advance group-wide
initiatives, and foster collaboration and consistency across regions. To ensure supervision of the enhancement
plan at the highest level, the Steering Committee updates the EMB on a regular basis as well as reports progressof the plan directly to the BoD.
Under the leadership of the Steering Committee, detailed measures to enhance risk management havealready been discussed and the RMEP initiatives are being implemented. These measures have been categorized
into four areas: business strategy, oversight, risk management, and risk culture. We have assigned an executive
officer or executive-level person to each area and have prioritized the resources necessary for implementation.
The RMEP key achievements are as follows.
Business Strategy
We clarified our Global Markets business strategy and conducted regular reviews of the business portfolio.
We also take the measures to maintain consistency between the risk profile, and other areas such as the firm’s
strategic direction, risk appetite and allocation of resources.
Oversight
In order to build a more robust, global cross-border governance framework, we are taking measures related
to the cross-border booking model and controls at local entities. We also set up functions which controls
Financial and Non-Financial risk management in Wholesale Front Office. Through this initiative, we have built
the framework to strengthen critical first-line risk management functions and enhance oversight of complex
business activities carried out globally. In addition, we have introduced globally unified performance
management for senior management in the Wholesale Division to better align individual compensation with our
medium- and long-term strategic initiatives and Risk and Conduct related performance.
Risk Management
We have redesigned financial risk appetite to more explicitly describe the types and levels of risk that we
accept in order to achieve the objectives of our management strategy and business plan and appetites are now
expressed in more specific quantitative metrics. In addition, we reviewed our committees to strengthen thegovernance of portfolio risk management and transaction approvals. Further, in order to enhance theunderstanding and embeddedness of the roles and responsibilities related to risk management in the three lines ofdefense model, we clearly documented these roles and responsibilities at the group level and provided related
training.
138

We are also enhancing various methods for measuring risks and exposures and are comprehensively
reviewing risks based on multiple risk metrics, including newly developed metrics. Moreover, in order to manage
risks appropriately, according to the size and complexity of the business, we have increased staff within the risk
control function of the first line, the risk management function of the second line, and Internal Audit, which is thethird line.
Risk Culture
As a firm that emphasizes the cultivation of a corporate culture, including a risk culture, we regularly
incorporate our attitude into our various plans and publications and continue to communicate it both internallyand externally. For example, we revised Nomura Group Code of Conduct in March 2022 to include a new section
on “Managing risks appropriately.” In addition to further enhancing the understanding and embeddedness of risk
culture through discussion-based workshops and other activities, we have developed a framework for measuring
embeddedness over time by adding questions related to risk culture to the Nomura Group Employee Survey.
Furthermore, we work to continuously foster our risk culture by incorporating risk culture elements into existing
frameworks such as those related to hiring and performance reviews.
Management of Financial Resources
Nomura has established a framework for management of financial resources in order to adequately manage
utilization of these resources. The EMB allocates financial resources to business units at the beginning of eachfinancial year. These allocations are used to set revenue forecasts for each business unit. Key components are set
out below:
Risk-weighted assets
A key component used in the calculation of our consolidated capital adequacy ratios is risk-weighted assets.
The EMB determines the risk appetite for our consolidated Tier 1 capital ratio on an annual basis and sets thelimits for the usage of risk-weighted assets by each division and by additional lower levels of the division. In
addition the EMB determines the risk appetite for the level of exposures under the leverage ratio framework
which is a non-risk based measure to supplement risk-weighted assets. See Item 4.B. “Business Overview—
Regulatory Capital Rules” of our annual report on Form 20-F for the fiscal year ended March 31, 2023, and“Consolidated Regulatory Capital Requirements” and “Consolidated Leverage Ratio Requirements” in thisannual report for further information on our consolidated capital adequacy ratios and risk-weighted assets.
Available Funds
The CFO decides the maximum amount of available funds, provided without posting of any collateral, forallocation within Nomura and the EMB approves the allocation of the funds to each business division. Global
Treasury monitors the usage by businesses and reports to the EMB.

139

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

Definition

Financial Risk
Market risk

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

Credit risk

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

Model risk

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

Non-financial Risk
Operational risk

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

Reputational risk

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

Liquidity risk
Liquidity risk

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

Other Risks
ESG: Environmental,
Social andGovernance(*)

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

Strategic risk

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

Market Risk Management
Market risk is the risk of loss arising from fluctuations in values of financial assets and liabilities (including
off-balance sheet items) due to fluctuations in market risk factors (interest rates, foreign exchange rates, prices of
securities and others).
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Market Risk Management Process
Effective management of market risk requires the ability to analyze a complex and evolving portfolio in aconstantly changing global market environment, identify problematic trends and ensure that appropriate action istaken in a timely manner.
Nomura uses a variety of statistical risk measurement tools to assess and monitor market risk on an ongoingbasis, including, but not limited to, Value at Risk (“VaR”), Stressed VaR (“SVaR”) and Incremental Risk
Charge. In addition, Nomura uses sensitivity analysis and stress testing to measure and analyze its market risk.
Sensitivities are measures used to show the potential changes to a portfolio due to standard moves in market risk
factors. They are specific to each asset class and cannot usually be aggregated across risk factors. Stress testingenables the analysis of portfolio risks or tail risks, including non-linear behaviors and can be aggregated acrossrisk factors at any level of the group hierarchy, from group level to business division, units or desk levels. Market
risk is monitored against a set of approved limits, with daily reports and other management information provided
to the business units and senior management.
Value at Risk
VaR is a measure of the potential loss due to adverse movements of market factors, such as equity prices,interest rates, credit, foreign exchange rates, and commodities with associated volatilities and correlations.
VaR Methodology Assumptions
Nomura uses a single VaR model which has been implemented globally in order to determine the total
trading VaR. A historical simulation is implemented, where historical market moves over a two-year window areapplied to current exposure in order to construct a profit and loss distribution. Potential losses can be estimated atrequired confidence levels or probabilities. For internal risk management purposes, VaR is calculated acrossNomura using a One-day time horizon; this data is presented below. A scenario weighting scheme is employed toensure that the VaR model responds to changing market volatility. For regulatory reporting purposes, Nomura
uses a Ten-day time horizon, calculated using actual Ten-day historical market moves and employ an equal
weight scheme to ensure VaR is not overly sensitive to changing market volatility. To complement VaR under
Basel 2.5 regulations, Nomura also computes SVaR, which samples from a one-year window during a period offinancial stress. The SVaR window is regularly calibrated and observations are equally weighted.
Nomura’s VaR model uses exact time series for each individual risk factor. However, if good quality data is
not available, a ‘proxy logic’ maps the exposure to an appropriate time series. The level of proxying taking place
is carefully monitored through internal risk management processes and there is a continual effort to source newtime series to use in the VaR calculation.
VaR Backtesting
The performance of Nomura’s VaR model is closely monitored to help ensure that it remains fit for purpose.
The main approach for validating VaR is to compare actual One-day trading losses with the corresponding VaRestimate. Nomura’s VaR model is backtested at different hierarchy levels. Backtesting results are reviewed on amonthly basis by Nomura’s Risk Management Division. One-day trading losses exceeded the 99% VaR estimate(the currently required regulatory backtesting level) at the Nomura Group level once for the 12 months ended
March 31, 2023.
Limitations and Advantages of VaRVaR aggregates risks from different asset classes in a transparent and intuitive way. However, there arelimitations. VaR is a backward-looking measure: it implicitly assumes that distributions and correlations of141

recent factor moves are adequate to represent moves in the near future. VaR is appropriate for liquid markets andis not appropriate for risk factors that exhibit sudden jumps. Therefore it may understate the impact of severe
events. Given these limitations, Nomura uses VaR only as one component of a diverse market risk management
process.
VaR metrics: 95% Confidence Interval
One-day VaR data using the confidence level of 95% for the fiscal year ended March 31, 2023 is presented
below.
The following graph shows the daily VaR over the last six quarters for substantially all of Nomura’s trading
positions:

The following tables show the VaR as of each of the dates indicated for substantially all of Nomura’s
trading positions:
Billions of yen
As ofMarch 31,
March 31,
2022
2023

Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1.4
2.3
0.9

¥ 3.3
4.7
1.4

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Diversification Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.6

9.4

(1.9)

(3.2)

VaR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 2.7

¥ 6.2

Billions of yen
For the twelve months ended
March 31,
March 31,
2022
2023

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

¥23.2
4.5
2.7

¥6.8
4.8
2.7

(1) Represents the maximum, average and minimum VaR based on all daily calculations for the fiscal year
ended March 31, 2023.
142

Stress Testing
Nomura conducts market risk stress testing since VaR and sensitivity analysis have limited ability to capture
all portfolio risks or tail risks. Stress testing for market risk is conducted regularly, using various scenarios based
upon features of trading strategies. Nomura conducts stress testing not only at the desk level, but also at the
Nomura Group level with a set of common global scenarios in order to reflect the impact of market fluctuations
on the entire Nomura Group.
Non-Trading Risk
A major market risk in Nomura’s non-trading portfolio relates to equity investments held for operating
purposes and on a long-term basis. Equity investments held for operating purposes are minority stakes in theequity securities of unaffiliated Japanese financial institutions and corporations held in order to promote existingand potential business relationships. This non-trading portfolio is exposed mainly to volatility in the Japanesestock market. One method that can estimate the market risk in this portfolio is to analyze market sensitivity basedon changes in the TOPIX, which is a leading index of prices of stocks on the Tokyo Stock Exchange.
Nomura uses regression analysis covering the previous 90 days which tracks and compares fluctuations in
the TOPIX and the fair value of Nomura’s equity investments held for operating purposes, which allows todetermine a correlation factor. Based on this analysis for each 10% change in the TOPIX, the fair value of
Nomura’s operating equity investments held for operating purposes can be expected to change by¥10,912 million at the end of March 2022 and ¥6,871 million at the end of March 2023. The TOPIX closed at
1,946.40 points at the end of March 2022 and at 2,003.50 points at the end of March 2023. This simulation
analyzes data for the entire portfolio of equity investments held for operating purposes at Nomura and therefore
actual results may differ from Nomura’s expectations because of price fluctuations of individual equities.
Credit Risk Management
Credit risk is the risk of loss arising from an obligor’s default, insolvency or administrative proceedingwhich results in the obligor’s failure to meet its contractual obligations in accordance with agreed terms. This
includes both on and off-balance sheet exposures. It is also the risk of loss arising through CVA associated withdeterioration in the creditworthiness of a counterparty. Nomura manages credit risk on a global basis and on an
individual Nomura legal entity basis.
Credit Risk Management Framework
The measurement, monitoring and management of credit risk at Nomura are governed by a set of global
policies and procedures. Credit Risk Management (“CRM”), a global function within the Risk Management
Division, is responsible for the implementation and maintenance of these policies and procedures. These policies
are authorized by the GRMC and/or Global Risk Strategic Committee, prescribe the basic principles of credit risk
management and set delegated authority limits, which enables CRM personnel to set credit limits.
Credit risk is managed by CRM together with various global and regional risk committees. This helps toensure transparency of material credit risks and compliance with established credit limits, the approval ofmaterial extensions of credit and the escalation of risk concentrations to appropriate senior management.
Credit Risk Management Process
CRM operates as a credit risk control function within the Risk Management Division, reporting to the CRO.
The process for managing credit risk at Nomura includes:•

Evaluation of likelihood that a counterparty defaults on its payments and obligations;143

•Assignment of internal ratings to all active counterparties;•

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

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

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

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

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

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

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

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

144

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

145

Credit Risk to Counterparties in Derivatives Transaction
The credit exposures arising from Nomura’s trading-related derivatives as of March 31, 2023 aresummarized in the table below, showing the positive fair value of derivative assets by counterparty credit rating
and by remaining contractual maturity. The credit ratings are internally determined by Nomura’s CRM.
Billions of yen
Years to Maturity

Credit Rating

Less than
1 year1 to 3years

3 to 5years

5 to 7
years

More
than
7 years

AAA . . . . . . . . . . . . . . . . . . ¥ 41 ¥ 38 ¥ 3 ¥ 4 ¥AA . . . . . . . . . . . . . . . . . . . .
260
362 224
55
A .....................
425
437 233 149
BBB . . . . . . . . . . . . . . . . . . .
193
123
79
51
BB and lower . . . . . . . . . . .
68
135
26
24
Other(2) . . . . . . . . . . . . . . . . .
37
103
82 101

CrossMaturity
Netting(1)TotalCollateral Replacement
Fair Value obtainedcost(3)(a)(b)(a)-(b)

50
626
808
342
41
723

¥ (107)(1,212)(1,678)(395)(217)(1,121)¥

Sub-total . . . . . . . . . . . . . . . ¥1,024 ¥1,198 ¥647 ¥384 ¥2,590
Listed . . . . . . . . . . . . . . . . . .
435
63
1 —
—

¥(4,730)(192)

Total . . . . . . . . . . . . . . . . . . ¥1,459 ¥1,261 ¥648 ¥384 ¥2,590¥(4,922)

29
315
374
393
77
(75)

¥

2
47
101
134
384
103

¥ 27
268
273
259
—
—

¥1,113
307

¥ 771
230

¥827
77

¥1,420¥1,001¥904(1) Represents netting of derivative liabilities against derivatives assets entered into with the same counterparty
across different maturity bands. Derivative assets and derivative liabilities with the same counterparty in thesame maturity band are net within the relevant maturity band. Cash collateral netting against net derivative
assets in accordance with ASC 210-20 “Balance Sheet—Offsetting” and ASC 815 “Derivatives andHedging” is also included.
(2) “Other” comprises unrated counterparties and certain portfolio level valuation adjustments not allocated to
specific counterparties.
(3) Zero balances represent instances where total collateral received is in excess of the total fair value;
therefore, Nomura’s credit exposure is zero.
Country Risk
At Nomura, country risk is defined as the risk of loss arising from country-specific events (such as political,
economic, legal and other events) that affect counterparties and/or issuers within that country, causing thosecounterparties and/or issuers to be unable to meet financial obligations. Nomura’s country risk framework acts as
a complement to other risk management areas and encompasses a number of tools including, but not limited to,country limits, which restrict credit exposure concentration to any given country. Other tools to manage country
risk include country ratings as well as country risk policies and procedures that describe responsibilities anddelegation for decision-making.

146

Nomura’s credit portfolio remains well-diversified by country and concentrated towards highly-rated
countries. The breakdown of top 10 country exposures is as follows:
Top 10 Country Exposures(1)Billions of yen(As of March 31, 2023)

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,876

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,610

United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,158

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

277

Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

235

Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

220

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

204

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

200Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

139

France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

137(1) The table represents the Top 10 country exposures as of March 31, 2023 based on country of risk,
combining counterparty and inventory exposures-

Counterparty exposures include cash and cash equivalents held at banks; the outstanding default fundand initial margin balances posted by Nomura to central clearing counterparties as legally required
under its direct and affiliate clearing memberships; the aggregate marked-to-market exposure bycounterparty of derivative transactions and securities financing transactions (net of collateral where thecollateral is held under a legally enforceable margin agreement); and the fair value of total commitment
amount less any applicable reserves-

Inventory exposures are the market value of debt and equity securities, and equity and credit derivatives,using the net of long versus short positions.

Russia and Ukraine war
Since the war in Ukraine began in February 2022, Nomura has been actively monitoring the impact of theconflict on the Ukraine and Russian economies, as well as on other financial markets. As of March 31, 2023, thetotal direct exposure of Nomura to Ukraine and Russia was not significant.
Operational Risk Management
Operational risk is the risk of financial loss resulting from inadequate or failed internal processes, people,
and systems or from external events, or non-financial impacts such as violations of laws and regulations or
deterioration of the reputation of Nomura. Operational risk includes in its definition Compliance, Legal, IT, andCyber Security, Fraud, Third Party and other non-financial risks. It excludes strategic risk (the risk of loss as aresult of poor strategic business decisions), and reputational risk, however, some operational risks can lead to
reputational issues and as such operational and reputational risks may be closely linked.
Operational Risk Management Framework
An Operational Risk Management Framework has been established in order to allow Nomura to identify,
assess, manage, monitor and report on operational risk. The GRMC, with delegated authority from the EMB has
formal oversight over the management of operational risk.
147

This framework is set out below:
Foundation of the risk management framework•

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

•

Training and awareness: Action taken by ORM to improve business understanding of operational risk.

Key risk management activities•

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

•

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

•

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

•

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

Outputs from the risk management activities•

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

•

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

Regulatory Capital Calculation for Operational Risk
Nomura uses the Standardized Approach for calculating regulatory capital for operational risk. This
involves using a three-year average of gross income allocated to business lines, which is multiplied by a fixed
percentage (the “Beta Factor”) determined by the FSA, to establish the amount of required operational risk
capital.

148

Nomura uses consolidated net revenue as gross income, however for certain consolidated subsidiaries, grossoperating profit is used as gross income. Gross income allocation is performed by mapping the net revenue ofeach business segment as defined in Nomura’s management accounting data to each business line defined in theStandardized Approach as follows:Business Line

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

Description

Beta Factor

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

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

•

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

•

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

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

Model Risk Management
Model Risk is the risk of financial loss, incorrect decision making, or damage to the firm’s credibility
arising from Model errors or incorrect or inappropriate Model application.
To effectively manage the Firm’s Model Risk, Nomura has established a Model Risk Management
Framework to govern the development, ownership, validation, approval, usage, ongoing monitoring, and periodic
review of the Firm’s Models. The framework is supported by a set of policies and procedures that articulate
process requirements for the various elements of the model lifecycle, including monitoring of model risk withrespect to the Firm’s appetite.
New models and material changes to approved models must be independently validated prior to official use.
Thresholds to assess the materiality of model changes are defined in Model Risk Management’s procedures.
During independent validation, validation teams analyze a number of factors to assess a model’s suitability,
identify model limitations, and quantify the associated model risk, which is ultimately mitigated through theimposition of approval conditions, such as usage conditions, model reserves and capital adjustments. Approved
models are subject to Model Risk Management’s periodic review process and ongoing performance monitoring
to assess their continued suitability. Appropriately delegated Model Risk Management Committees provide
oversight, challenge, governance, and ultimate approval of validated Models.
Funding and Liquidity Risk Management
For further information on funding and liquidity risk management, see Item 5.B. “Liquidity and Capital
Resources—Funding and Liquidity Management” in this annual report.
149

Risk Measures and Controls
Limit Frameworks
The establishment of robust limit monitoring and management is central to appropriate monitoring andmanagement of risk. The limit management frameworks incorporate escalation policies to facilitate approval of
limits at appropriate levels of seniority. The Risk Management Division and the Finance Division are responsiblefor day-to-day operation of these limit frameworks including approval, monitoring, and reporting as required.
Business units are responsible for complying with the agreed limits. Limits apply across a range of quantitative
measures of risk and across market and credit risks.
New Business Risk Management
The new business approval process represents the starting point for new business in Nomura and exists to
support management decision-making and ensure that risks associated with new products and transactions are
identified and managed appropriately. The new business approval process consists of two components:(1) Transaction committees are in place to provide formal governance over the review and decisionmaking process for individual transactions. The liability for non-compliance is also clarified.
(2) The new product approval process allows business unit sponsors to submit applications for new
products and obtain approval from relevant departments prior to execution of the new products. The
process is designed to capture and assess risks across various risk classes as a result of the new productor business.
The new business approval process continues to seek assuring the sound and effective management to better
meet the various changes observed in the market environment.
Stress Testing
Stress testing performed at the Nomura Group seeks to provide comprehensive coverage of risks acrossdifferent hierarchical levels, and covers different time horizons, severities, plausibilities and stress testing
methodologies. The results of stress tests are used in capital planning processes, capital adequacy assessments,
liquidity adequacy assessments, recovery and resolution planning, assessments of whether risk appetite isappropriate, and in routine risk management.
Stress tests are run on a regular basis or on an ad hoc basis as needed, for example, in response to materialchanges in the external environment and/or in the Nomura Group risk profile. The results of stress tests withsupporting detailed analysis are reported to senior management and other stakeholders as appropriate for the
stress test being performed.
Stress testing is categorized either as sensitivity analysis or scenario analysis and may be performed on a
Nomura Group-wide basis or at more granular levels.
•

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

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

Scenario analysis includes following examples.
•

Nomura Group establishes several stress scenarios to validate risk appetite for capital and liquidity
soundness, taking into account the business environment, business’s risk profile, economic environment
and forecasts.
150•Group-wide stress to assess the capital adequacy of the Nomura Group under severe but plausible
market scenarios is conducted on a quarterly basis at a minimum; and•Reverse stress testing, a process of considering the vulnerabilities of the firm and hence how it may
react to situations where it becomes difficult to continue its business, and reviewing the results of thatanalysis, is conducted on an annual basis at a minimum.

Stress testing is an integral part of the Nomura Group’s overall governance and is used as a tool forforward-looking risk management, decision-making and enhancing communication amongst Corporate
Functions, Business Divisions, and senior management.
Item 12. Description of Securities Other Than Equity Securities
A. Debt Securities
Not applicable.
B. Warrants and Rights
Not applicable.
C. Other Securities
Not applicable.

151

D. American Depositary Shares
Fees payable by ADR Holders
The following table shows the fees and charges that a holder of the Company’s ADR may have to pay,either directly or indirectly:
Type of Services:

Amount of Fee (U.S. Dollars)

Taxes and other governmental charges

As applicable. The depositary may offset any taxes orgovernmental charges it is obligated to withhold, if
applicable, against the proceeds from sale of theproperty received.

Transfers of the Company’s shares to or from the nameof the depositary (or its nominee) or the Custodian (orits nominee) in connection with deposits orwithdrawals

Such registration fees as may be in effect for theregistration of transfers of the Company’s shares on
the Company’s share register (or any entity that
presently carries out the duties of registrar).

Cable, telex and facsimile transmission expenses

As applicable.

Expenses incurred by the depositary in the conversion offoreign currency

As applicable.

Execution and delivery of Receipts in connection withdeposits, stock splits or exercise of subscription rights$5.00 or less per 100 ADSs (or portion thereof).

Surrender of Receipts in connection with a withdrawal
or termination of the Deposit Agreement$5.00 or less per 100 ADSs (or portion thereof).

Any cash distribution pursuant to the Deposit
Agreement, including, but not limited to, cash
distribution(s) made in connection with cash
dividends; distributions in securities, property or
subscription rights; and stock splits.

$.02 or less per ADS (or portion thereof). Only the
cash amounts net of this fee, if applicable, aredistributed.

Distribution by the depositary of securities (other thancommon shares of the Company) that accrued on theunderlying shares to owners of the Receipts

Treating for the purpose of this fee all such securities
as if they were common shares of the Company,$5.00 or less per 100 ADSs (or portion thereof).

General depositary services$.02 or less per ADS (or portion thereof), accruing on
the last day of each calendar year, except where thefee for cash distribution described above was assessed
during that calendar year.

Any other charge payable by the depositary, any of thedepositary’s agents, including the Custodian, or theagents of the depositary’s agents in connection withthe servicing of the Company’s shares or otherdeposited securities

As applicable.

Fees paid to Nomura by the depositary
The Bank of New York Mellon, as depositary, has agreed to pay all its standard out-of-pocket
administration and maintenance expenses for providing services to the registered shareholders and up to 100,000
non-registered shareholders of ADRs. From April 1, 2022 to March 31, 2023, the Bank of New York Mellon has
waived a total of $185,325.96 in fees (including $54,751.07 in connection with the expenses related to theAnnual General Meeting of Shareholders) associated with the administration of the ADR program andadministrative fees for routine corporate actions and for providing investor relations information services.
152

PART II
Item 13. Defaults, Dividend Arrearages and Delinquencies
None.
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
None.
Item 15. Controls and Procedures
Disclosure Controls and Procedures.
Our Disclosure Committee is responsible for the establishment and maintenance of our disclosure controls
and procedures. As of March 31, 2023, an evaluation was carried out under the supervision and with theparticipation of our management, including our Group Chief Executive Officer and Chief Financial Officer, andthe Disclosure Committee, of the effectiveness of the disclosure controls and procedures (as defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934).
On June 28, 2023, we filed the Original Filing. At that time, our management, with the participation of ourGroup Chief Executive Officer and Chief Financial Officer, and the Disclosure Committee, had evaluated theeffectiveness of our disclosure controls and procedures and concluded that our disclosure controls and procedures
were effective as of March 31, 2023. Subsequent to that evaluation, certain classification and presentation errors
were identified within the Company’s consolidated statement of cash flows. The classification errors related tothe incorrect classification of cash flows arising from certain non-trading loans, other financial and non-financialtransactions within operating rather than investing or financing activities. The presentation errors related to thepresentation of certain cash flows from non-trading debt securities, short-term borrowings and other financial andnon-financial transactions on a net rather than gross basis. As a result, our management concluded that ourdisclosure controls and procedures were not effective, that a material weakness existed in our internal control
over financial reporting and that our internal control over financial reporting was not effective as of March 31,
2023. Specifically, this conclusion was based on the fact that these errors were not detected through our existing
controls and there was a lack of effectively designed controls to evaluate the appropriate classification andpresentation of certain cash flows in accordance with authoritative requirements of Accounting Standards
Codification (“ASC”) No. 230 “Statement of Cash Flows.”
The errors described above primarily reflect certain classification and presentation approaches andinterpretations which the Company has concluded were not in accordance with U.S. GAAP and should have been
amended. While there was no impact to net revenue, income before taxes, net income, basic or diluted net
income per share or any amounts included in the consolidated balance sheets, the Company has concluded that asa result of these errors, a material weakness existed in our internal control over financial reporting as ofMarch 31, 2023, as our existing internal controls failed to detect a material misstatement in the consolidated
statements of cash flows in such classification and presentation matters.
Remediation plan
The Company is in the process of implementing remediation actions to address this material weakness andspecifically to mitigate the risk of similar errors occurring in the future within the consolidated statement of cash
flows. In particular:•

The Company has performed a detailed review of the consolidated statements of cash flow in the Original
Filing and other Restated Financial Statements, including this Amendment No. 1, in order to identify otherrelated issues or improvements in both presentation and classification of cash flows matters;•

The Company has released a comprehensive internal policy documentation and has provided training torelevant personnel specifically focusing on classification and presentation within the consolidated
statement of cash flows; and153

•

The Company is in the process of implementing a new annual control whereby senior finance andaccounting policy personnel perform an in-depth comprehensive review of the consolidated statement ofcash flows, including a review of underlying calculations and methodologies used as the basis ofreported amounts, to evaluate compliance with applicable accounting requirements under ASC 230 andother authoritative guidance.

Management’s Annual Report on Internal Control Over Financial Reporting.
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934). On June 28,2023, we filed the Original Filing. At that time, our management, with the participation of our Group Chief
Executive Officer and Chief Financial Officer, had evaluated the effectiveness of our internal control overfinancial reporting using the criteria set forth in the Internal Control—Integrated Framework (2013) issued by theCommittee of Sponsoring Organizations of the Treadway Commission (COSO) and concluded that our internal
control over financial reporting was effective as of March 31, 2023. Subsequent to that evaluation, ourmanagement concluded that our internal control over financial reporting was not effective as of March 31, 2023
due to a material weakness related to a lack of effectively designed controls to evaluate the appropriateclassification and presentation of certain cash flows in accordance with ASC 230, as described under“—Disclosure Controls and Procedures”.
Our independent registered public accounting firm, Ernst & Young ShinNihon LLC, has issued anattestation report on the effectiveness of our internal control over financial reporting, which appears on page F-5of this Amendment No. 1.
Changes in Internal Control Over Financial Reporting.
Our management also carried out a revised evaluation, with the participation of our Group Chief Executive
Officer and Chief Financial Officer, of changes in our internal control over financial reporting during the year
ended March 31, 2023. Based upon that evaluation, there was no change in our internal control over financial
reporting during the year ended March 31, 2023, that has materially affected, or is reasonably likely to affect, ourinternal control over financial reporting. As described above, the Company has begun implementation ofremediation actions in response to the material weakness in internal control over financial reporting identified in
March 2024.
Item 16A. Audit Committee Financial Expert
The Company’s Board of Directors has determined that each of that Mr. Noriaki Shimazaki and
Mr. Masahiro Ishizuka, a member of the Audit Committee, qualifies as an “audit committee financial expert” assuch term is defined by the General Instructions for Item 16A of Form 20-F. Additionally, Mr. Noriaki
Shimazaki and Mr. Masahiro Ishizuka meet the independence requirements applicable to him under
Section 303A.06 of the NYSE Listed Company Manual. For a description of their business experience, see
Item 6.A “Directors and Senior Management—Directors” in this annual report.
Item 16B. Code of Ethics
In December 2019, we adopted a new code of ethics (as defined in Item 16B of Form 20-F) consisting of the“Nomura Group Code of Conduct” and the “Nomura Group Code of Ethics for Financial Professionals”, which
replaced our prior code of ethics. The Code of Conduct is periodically reviewed to better respond to the changes
in the social and economic conditions and to the expectations of our stakeholders. In March 2023, we revised theprevious version of “Nomura Group Code of Conduct” to promote support for mutual growth and teamwork,
while maintaining the overall structure of the previous version. A copy of the “Nomura Group Code of Conduct
2023” is attached to this annual report as Exhibit 11.1 and a copy of the “Nomura Group Code of Ethics for
Financial Professionals” is attached to this annual report as Exhibit 11.2.
154

Item 16C. Principal Accountant Fees and Services
Ernst & Young ShinNihon LLC has been our principal accountant for the last twenty fiscal years. The table
set forth below contains the aggregate fees billed for each of the last two fiscal years by our principal accountant
in each of the following categories: (i) Audit Fees, which are fees for professional services for the audit or review
of our financial statements or services that are normally provided in connection with statutory and regulatory
filings or engagements for those fiscal years, (ii) Audit-Related Fees, which are fees for assurance and related
services that are related to the performance of the audit or review of our financial statements and are not reported
as Audit Fees, (iii) Tax Fees, which are fees for professional services provided for tax compliance, tax advice andtax planning, and (iv) All Other Fees, which are fees for products and services other than Audit Fees, AuditRelated Fees and Tax Fees, such as advisory services concerning risk management and regulatory matters.
Millions of yen
Year ended March 31
2022
2023

Audit Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit-Related Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All Other Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,915103
143
106¥4,138224
330
264

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥4,267¥4,956

Audit-Related Fees included fees for consultations on accounting issues relating to our business. Tax Fees
included fees for services relating to tax planning and compliance. All Other Fees included fees for services
relating to advice with respect to regulations and disclosures under the Financial Instruments and Exchange Act
in connection with our underwriting business.
In accordance with the regulations of the Securities and Exchange Commission issued pursuant to Sections
202 and 208 of the Sarbanes-Oxley Act of 2002, our Audit Committee has adopted a pre-approval policy
regarding the engagements of our principal accountant. Under the pre-approval policy, there are two types ofpre-approval procedures, “General Pre-Approval” and “Specific Pre-Approval.”
Under “General Pre-Approval,” our CFO in conjunction with our principal accountant must make a proposal
to our Audit Committee for the types of services and estimated fee levels of each category of services to begenerally pre-approved. Such a proposal must be made at least annually. The Audit Committee will discuss the
proposal and if necessary, consult with outside professionals as to whether the proposed services would impair
the independence of our principal accountant. If such proposal is accepted, the Audit Committee will inform our
CFO and principal accountant of the services that have been pre-approved and are included in a “General
Pre-Approved List.” Our Audit Committee is informed of each such service that is provided.
Under “Specific Pre-Approval,” if any proposed services are not on the General Pre-Approved List, our
CFO is required to submit an application to the Audit Committee for such services. After reviewing the details
and estimated fee levels for each engagement and if necessary, consulting with outside professionals as towhether the proposed services would impair the independence of the principal accountant, the Audit Committee
may make a specific pre-approval decision on these services. Also, if any approved services in the General
Pre-Approved List exceed the fee levels prescribed on the List, our CFO is required to submit an application to
the Audit Committee for new fee levels for such services. The Audit Committee may make a pre-approval
decision after reviewing the details of the services and the estimated fee levels for each engagement.
None of the services described in the first paragraph under this Item 16C were waived from the pre-approvalrequirement pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.

155

Item 16D. Exemptions from the Listing Standards for Audit Committees
Not applicable.
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
During the year ended March 31, 2023, we acquired 16,744 shares of the Company’s common stock bymeans of repurchase of shares constituting less than one unit upon the request of the holders of those shares and
50,000,000 shares under a share buyback program in accordance with Article 459-1 of the Companies Act. For
an explanation of the right of our shareholders to demand such repurchases by us, see “Description of rights ofeach class of securities registered under Section 12 of the Securities Exchange Act of 1934” which is an exhibit
to this annual report. As of March 31, 2023, we had 3,004,051,773 outstanding shares of our common stock
excluding 229,510,828 shares held as treasury stock.
The following table sets forth certain information with respect to our purchases of shares of our common
stock during the year ended March 31, 2023.

Total
Number of
SharesPurchasedMonth

April 1 to 30, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,364
May 1 to 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,552,388
June 1 to 30, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,407,571
July 1 to 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,043,753
August 1 to 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,594
September 1 to 30, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . .
963
October 1 to 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,245
November 1 to 30, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . .
980
December 1 to 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,573
January 1 to 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,134February 1 to 28, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,645
March 1 to 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,534
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50,016,744

Average Price
Paid perShare(in yen)

Total
Number of
SharesPurchased
as Part of
Publicly
Announced
ProgramMaximum
Number of
Shares thatMay Yet Be
Purchased
Under theProgram

¥513
489
498
497
506
499
480
485
486
501
541
534

—
19,551,600
27,406,600
3,041,800
—
—
—
—
—
—
—
—

—
30,448,400
3,041,800
—
—
—
—
—
—
—
—
—

¥494

50,000,000—

On April 26, 2022, a resolution of the Board of Directors authorized the Company to purchase up to
50,000,000 shares of our common stock or to a maximum of ¥30 billion during the period from May 17, 2022
through March 31, 2023.
Nomura recognizes the need to set out flexible financial strategies that allow the Board of Directors to
respond quickly to any changes in the business environment and is looking into implementing further sharebuybacks. Details will be announced when finalized.
On April 26, 2023, we announced a resolution of the Board of Directors to establish a share buyback
program in accordance with Article 459-1 of the Companies Act. The period of repurchase under the program isfrom May 16, 2023 to March 29, 2024, and we are authorized to purchase up to 35,000,000 shares of ourcommon stock or to a maximum of ¥20 billion.
As of May 31, 2023, 3,048,229,697 shares of common stock were outstanding, excluding 185,332,904
shares held as treasury stock.
156

Item 16F. Change in Registrant’s Certifying Accountant
Not applicable.
Item 16G. Corporate Governance
Companies listed on the NYSE must comply with certain standards regarding corporate governance under
Section 303A of the NYSE Listed Company Manual. However, listed companies that are foreign private issuers,
such as the Company, are permitted to follow home country practice in lieu of certain provisions ofSection 303A.
The following table shows the significant differences between the corporate governance practices followedby U.S. listed companies under Section 303A of the NYSE Listed Company Manual and those followed by theCompany. The information set forth below is current as of the date of this annual report.
Corporate Governance Practices Followed
by NYSE-listed U.S. Companies

Corporate Governance Practices Followed by the Company

A NYSE-listed U.S. company must have a majority of
Directors meeting the independence requirements under
Section 303A of the NYSE Listed Company Manual.

Under the Companies Act, a company which adopts
the Company with Three Board Committees structure
is not required to have a majority of outside directors,
but is required to have a majority of outside directors
on each of the audit, nomination and compensationcommittees.
The Company currently has nine outside directors
among its thirteen Directors.

A NYSE-listed U.S. company must have an audit
committee that satisfies the requirements under
Section 303A of the NYSE Listed Company Manual,including those imposed by Rule 10A-3 under the U.S.
Securities Exchange Act of 1934. The audit committee
must be composed entirely of independent directors andhave at least three members.

The Company has an Audit Committee consisting offour Directors, three of whom are outside directors incompliance with the requirements under theCompanies Act. All four Audit Committee members
are independent directors under Rule 10A-3 under the
U.S. Securities Exchange Act of 1934 with two
members qualified as audit committee financial
expert.

A NYSE-listed U.S. company must have a nominating/corporate governance committee with responsibilities
described under Section 303A of the NYSE Listed
Company
Manual.
Thenominating/corporate
governance committee must be composed entirely of
independent directors.

The Company has a Nomination Committee
consisting of three Directors, two of whom areoutside directors and the chairman is an outside
director in compliance with the requirements under
the Companies Act.

A NYSE-listed U.S. company must have acompensation committee composed entirely of
independent directors. Compensation committee
members must satisfy the additional independence
requirements under Section 303A.02(a)(ii) of the NYSE
Listed Company Manual. A compensation committee
must also have authority to retain or obtain the advice ofcompensation and other advisers, subject to prescribedindependence criteria that the committee must consider
prior to engaging any such adviser.

The Company has a Compensation Committee
consisting of three Directors, two of whom areoutside directors and the chairman is an outside
director in compliance with the requirements under
the Companies Act.

157

Corporate Governance Practices Followed
by NYSE-listed U.S. Companies

Corporate Governance Practices Followed by the Company

A NYSE-listed U.S. company must generally obtainshareholder approval with respect to any equity
compensation plan.

Under the Companies Act, Restricted Stock Unit(“RSU”) and Stock Acquisition Right (“SAR”)
awards are deemed to be compensation for theservices performed by the Company’s Directors andExecutive Officers and do not require shareholders’approval. The Compensation Committee establishes
the policy with respect to the determination of theindividual compensation of each of the Company’s
Directors and Executive Officers (including RSU andSAR awards as equity compensation) and makes
determinations in accordance with that compensation
policy.

A NYSE-listed U.S. company must adopt and disclose
corporate governance guidelines.

Under the Companies Act, the Company is not
required to adopt and disclose corporate governanceguidelines. However, in response to Japan’s
Corporate Governance Code, which was incorporated
into the Tokyo Stock Exchange’s Securities Listing
Regulations, the Company has established andpublicly disclosed the “Nomura Holdings Corporate
Governance Guidelines.”

The non-management directors of a NYSE-listed U.S. Under the Companies Act, outside directors of thecompany must meet at regularly scheduled executive Company are not required to meet at regularly
sessions without management.
scheduled executive sessions without management.
However, in accordance with the “Nomura Holdings
Corporate Governance Guidelines,” outside directors
hold meetings consisting solely of outside directors inorder to discuss matters such as the business andcorporate governance of the Company.
A NYSE-listed U.S. company must adopt and disclose acode of business conduct and ethics for directors,
officers and employees, and promptly disclose any
waivers of the code for directors or executive officers.

Under the Companies Act, the Company is not
required to adopt and disclose a code of businessconduct and ethics for directors, officers or
employees. However, the Company has adopted the“Nomura Group Code of Conduct”. Please see
Item 16B of this annual report for further information
regarding the “Nomura Group Code of Conduct.”

Item 16H. Mine Safety Disclosure
Not applicable.
Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.

158

PART III
Item 17. Financial Statements
In lieu of responding to this item, we have responded to Item 18 of this annual report.
Item 18. Financial Statements
The information required by this item is set forth in our consolidated financial statements included in thisannual report.
Item 19. Exhibits
Exhibit
NumberDescription

1.1

Articles of Incorporation of Nomura Holdings, Inc. (English translation) (filed on June 24, 2022 as an
exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein by reference)

1.2

Share Handling Regulations of Nomura Holdings, Inc. (English translation) (filed on June 28, 2023 as an
exhibit to the Original Filing and incorporated herein by reference)

1.3

Regulations of the Board of Directors of Nomura Holdings, Inc. (English translation) (filed on June 24, 2022
as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein byreference)

1.4

Regulations of the Nomination Committee of Nomura Holdings, Inc. (English translation) (filed on June 23,
2016 as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein byreference)

1.5

Regulations of the Audit Committee of Nomura Holdings, Inc. (English translation) (filed on June 24, 2022
as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein byreference)

1.6

Regulations of the Compensation Committee of Nomura Holdings, Inc. (English translation) (filed onJune 27, 2012 as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated
herein by reference)

2.1

Form of Deposit Agreement among Nomura Holdings, Inc., The Bank of New York Mellon as depositary
and all owners and holders from time to time of American Depositary Receipts, including the form ofAmerican Depositary Receipt (filed on April 28, 2010 as an exhibit to the Registration Statement on
Form F-6 (File No. 333-166346) and incorporated herein by reference)

2.2

Description of rights of each class of securities registered under Section 12 of the Securities Exchange Act of1934 (filed on June 24, 2022 as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) andincorporated herein by reference)

4.1

Form of Limitation of Liability Agreement (1) (filed on June 28, 2023 as an exhibit to the Original Filing andincorporated herein by reference)

8.1

Subsidiaries of Nomura Holdings, Inc.—See Item 4.C. “Organizational Structure” in this annual report.
(filed on June 28, 2023 as an exhibit to the Original Filing and incorporated herein by reference)

11.1

Nomura Group Code of Conduct 2023 (English translation) (filed on June 28, 2023 as an exhibit to theOriginal Filing and incorporated herein by reference)

11.2

Nomura Group Code of Ethics for Financial Professionals (English translation) (filed on June 30, 2020 as an
exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein by reference)

12.1

Certification of the principal executive officer required by 17 C.F.R. 240. 13a-14(a)12.2

Certification of the principal financial officer required by 17 C.F.R. 240. 13a-14(a)13.1

Certification of the chief executive officer required by 18 U.S.C. Section 1350

13.2

Certification of the chief financial officer required by 18 U.S.C. Section 1350

159

Exhibit
NumberDescription

15.1

Consent of Ernst & Young ShinNihon LLC, an independent registered public accounting firm

17.1

Subsidiary Issuer of Registered Guaranteed Securities (filed on June 28, 2023 as an exhibit to the Original
Filing and incorporated herein by reference)

97.1

Nomura Holdings, Inc. Compensation Recovery Policy

101.INS

Inline XBRL Instance Document—the instance document does not appear in the Interactive Data Filebecause its XBRL tags are embedded within the Inline XBRL document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

The cover page for the Company’s Annual Report on Form 20-F for the year ended March 31, 2023, hasbeen formatted in Inline XBRL

(1) The Company has entered into Limitation of Liability Agreements substantially in the form of this exhibitwith all of its outside directors and director Shoji Ogawa.
The Company has not included as exhibits certain instruments with respect to our long-term debt. The
amount of debt authorized under each such debt instrument does not exceed 10% or our total assets. We will
furnish a copy of any such instrument to the SEC upon request.

160

NOMURA HOLDINGS, INC.
INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS
Page

Consolidated Financial Statements of Nomura Holdings, Inc.:
Reports of Independent Registered Public Accounting Firm (PCAOB ID: 789) . . . . . . . . . . . . . . . . . .

F-2

Consolidated Balance Sheets as of March 31, 2022 and 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-7

Consolidated Statements of Income for the Years Ended March 31, 2021, 2022 and 2023 . . . . . . . . . .

F-10

Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2021, 2022 and2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-11

Consolidated Statements of Changes in Equity for the Years Ended March 31, 2021, 2022 and2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-12

Consolidated Statements of Cash Flows for the Years Ended March 31, 2021, 2022 and 2023 . . . . . .

F-14Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-16

F-1

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of
Nomura Holdings, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Nomura Holdings, Inc. (the Company) as ofMarch 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, changes inequity, and cash flows for each of the three years in the period ended March 31, 2023, and the related notes(collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial
statements present fairly, in all material respects, the consolidated financial position of the Company atMarch 31, 2023 and 2022, and the consolidated results of its operations, and its cash flows for each of the three
years in the period ended March 31, 2023, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board(United States) (PCAOB), the Company’s internal control over financial reporting as of March 31, 2023, basedon criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (2013 framework) and our report dated June 28, 2023, except for theeffect of the material weakness described in the third paragraph as to which the date is April 12, 2024 expressedan adverse opinion thereon.
Restatement of the Consolidated Financial Statements
As described in “Restatement of historical annual consolidated financial statements” within Note 1 to theconsolidated financial statements, the consolidated financial statements have been restated to correct
misstatements.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on the Company’s financial statements based on our audits. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to the Company in accordance with
the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we planand perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks ofmaterial misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts anddisclosures in the financial statements. Our audits also included evaluating the accounting principles used andsignificant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial
statements that were communicated or required to be communicated to the audit committee and that: (1) relate toaccounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical
audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures towhich they relate.
F-2

Descriptionof theMatterFair value of less liquid financial instruments
The Company holds financial instruments for trading, customer facilitation and investment
purposes. As disclosed in Note 2 to the consolidated financial statements as of March 31, 2023,
the Company had ¥1,093 billion and ¥790 billion of financial instruments assets and liabilities,
respectively, categorized within Level 3 of the fair value hierarchy. In determining the fairvalue of these financial instruments, the Company used valuation models and unobservable
inputs which reflect its assumptions and specific data. These inputs are significant to the fairvalue of the financial instruments and are supported by little or no market activity as ofMarch 31, 2023. The valuation techniques applied by management to determine the fair value ofsuch instruments are described in Note 2 to the consolidated financial statements.
Auditing the fair value of the Company’s Level 3 financial instruments was complex and highly
judgmental due to the subjectivity of the judgments used and estimations made by management
in determining the fair value for these financial instruments. In particular, to value certain
financial instruments, management used a variety of valuation techniques which involved
certain underlying valuation assumptions and significant unobservable inputs, including
WACC, growth rates, volatilities, correlations, credit spreads, recovery rates, loss severities,
prepayment rates, default probabilities and yields.

How WeAddressed
the Matterin OurAudit

We obtained an understanding, evaluated the design and tested the operating effectiveness ofcontrols relating to the valuation models and significant unobservable inputs used in fair value
measurement. This included the testing of model validation controls by various departments
within the Company.
Our audit procedures to evaluate the valuation techniques used by the Company included,
among others, testing valuation models and significant unobservable inputs. We independently
developed fair value estimates for which we involved our valuation specialists to assist with theapplication of these procedures and compared them to the Company’s results, on a sample
basis. We also agreed significant unobservable inputs and underlying data used in the
Company’s valuation models to information available from third party sources and market data,
where available. We evaluated subsequent transactions and considered whether they corroborate
or contradict the Company’s year-end valuations.
Contingencies for investigations, lawsuits and other legal proceedings

Descriptionof theMatter

The Company is involved in investigations, lawsuits and other legal proceedings. As disclosed
in Note 19 to the consolidated financial statements as of March 31, 2023, the Company hasrecorded litigation provision of ¥42,459 million in respect of outstanding and unsettledinvestigations, lawsuits and other legal proceedings and for those cases where the loss is
considered probable and an estimate of the range of reasonably possible losses can be made, theCompany estimates that the total aggregate reasonably possible maximum loss in excess ofamounts recognized as a liability (if any) against these cases is approximately ¥51 billion.
The Company recognizes a liability for those contingencies for which it is probable that aliability had been incurred at the date of the consolidated financial statements and the amount isreasonably estimable. As part of this, management performs an assessment of the materiality ofcontingencies where a loss is either reasonably possible or it is reasonably possible that an
exposure to loss exists in excess of the amount accrued. This includes the amounts at which theCompany is willing to settle for any loss contingency. If it is reasonably possible that such aloss or an additional loss may have been incurred and the effect on the consolidated financial
statements is material, the Company discloses the nature of the loss contingency and an estimateof the possible loss or range of loss or a statement that such an estimate cannot be made within
the notes to the consolidated financial statements.

F-3

Auditing management’s determination of whether a loss contingency is probable and reasonably
estimable, reasonably possible or remote, and the related disclosures, is highly subjective,complex and requires significant judgment. Management judgment is needed to determine
whether an obligation exists and a loss contingency should be recorded at March 31, 2023. This
includes judgment in the determination of whether an outflow in respect of identified loss
contingency is probable and can be estimated reliably. In addition, management judgment isneeded to determine if an estimated loss is only reasonably possible rather than probable.
How WeAddressed
the Matterin OurAudit

We obtained an understanding, evaluated the design and tested the operating effectiveness ofcontrols that address the risks of material misstatement relating to management’s assessment for
timely identification of contingencies that may arise out of lawsuits and regulatory investigations
including the Company’s assessment of whether they are probable or reasonably possible and theassociated measurement of the best estimate.
Our audit procedures to test the assessment of the probability of incurrence of a loss and whether
the loss was reasonably estimable included, among others, reading the minutes of the meetings ofthe Board of Directors and Executive Management Board, and reading relevant legal
correspondence to assess developments in significant matters, requesting and receiving internaland external legal counsel confirmation letters, meeting with internal legal counsel to discuss theallegations and evaluating management’s assessment regarding whether an unfavorable outcome
is probable or reasonably possible and the associated measurement of the best estimate. In
addition, our audit procedures to test the measurement of the loss contingency and the disclosureof the reasonably possible maximum loss in excess of amounts recognized as a liability included,
among others, evaluating the method of measuring the contingency, reading correspondence
received from internal and external counsel and inspecting evidence of approval from theindividuals with the authority to determine the amount the Company is willing to settle that areused to determine a provision or a range of reasonably possible loss. We evaluated subsequent
events and considered whether they corroborate or contradict the Company’s year-end
assessments.

/s/ Ernst & Young ShinNihon LLC
We have served as the Company’s auditor for SEC reporting purposes since 2002, and as its Japanese statutory
auditor since 1973, which includes the years we served as joint auditors between 1978 and 2002.
Tokyo, Japan
June 28, 2023, except for the effects of the restatement described in “Restatement of historical annual
consolidated financial statements” within Note 1, as to which the date is April 12, 2024

F-4

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of
Nomura Holdings, Inc.
Opinion on Internal Control Over Financial Reporting
We have audited Nomura Holdings, Inc.’s (the Company’s) internal control over financial reporting as ofMarch 31, 2023, based on criteria established in Internal Control—Integrated Framework issued by theCommittee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In
our opinion, because of the effect of the material weakness described below on the achievement of the objectivesof the control criteria, the Company has not maintained effective internal control over financial reporting at
March 31, 2023, based on the COSO criteria.
In our report dated June 28, 2023, we expressed an unqualified opinion that the Company maintained, in allmaterial respects, effective internal control over financial reporting as of March 31, 2023, based on the COSO
criteria. Management has subsequently identified a deficiency in controls related to a lack of effectively designed
controls to evaluate the appropriate classification and presentation of certain cash flows in accordance withauthoritative requirements of Accounting Standards Codification (“ASC”) No. 230 “Statement of Cash Flows”
and has further concluded that such deficiency represented a material weakness as of March 31, 2023. As aresult, management has revised its assessment, as presented in the accompanying Management’s Annual Reporton Internal Control Over Financial Reporting; to conclude that the Company’s internal control over financial
reporting was not effective as of March 31, 2023. Accordingly, our present opinion on the effectiveness ofinternal control over financial reporting as of March 31, 2023, as expressed herein, is different from that
expressed in our previous report.
A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting,such that there is a reasonable possibility that a material misstatement of the company’s annual or interim
financial statements will not be prevented or detected on a timely basis. The following material weakness has
been identified and included in management’s assessment. Management has identified a material weakness incontrols related to the Company’s lack of effectively designed controls to evaluate the appropriate classificationand presentation of certain cash flows in accordance with authoritative requirements of Accounting Standards
Codification (“ASC”) No. 230 “Statement of Cash Flows”.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board(United States) (PCAOB), the consolidated financial statements of the Company, which comprise theconsolidated balance sheets as of March 31, 2023 and 2022, and the related consolidated statements of income,comprehensive income, changes in equity and cash flows for each of the three years in the period ended
March 31, 2023, and the related notes. This material weakness was considered in determining the nature, timing
and extent of audit tests applied in our audit of the consolidated financial statements for the year ended March 31,
2023, and this report does not affect our report dated June 28, 2023, except for the effects of the restatement
described in “Restatement of historical annual consolidated financial statements” within Note 1 to theconsolidated financial statements, as to which the date is April 12, 2024, expressed an unqualified opinion
thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting andfor its assessment of the effectiveness of internal control over financial reporting included in the accompanying
Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an
opinion on the Company’s internal control over financial reporting based on our audit. We are a public
F-5accounting firm registered with the PCAOB and are required to be independent with respect to the Company inaccordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities andExchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we planand perform the audit to obtain reasonable assurance about whether effective internal control over financial
reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk thata material weakness exists, testing and evaluating the design and operating effectiveness of internal control basedon the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles, and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of thecompany’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
June 28, 2023, except for the effect of the material weakness described in the third paragraph above, as to which
the date is April 12, 2024

F-6

NOMURA HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETSMillions of yen
March 31
2022
2023

ASSETSCash and cash deposits:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits with stock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 3,316,238
320,754426,519¥ 3,820,685
409,082
291,480

Total cash and cash deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,063,511

4,521,247

Loans and receivables:
Loans receivable (includes ¥1,210,590 and ¥1,650,115 at fair value) . . . . . . . . . . . . . . . . . .
Receivables from customers (includes ¥86,839 and ¥39,107 at fair value) . . . . . . . . . . . . . .
Receivables from other than customers (includes ¥10,362 and ¥nil at fair value) . . . . . . . . .
Allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,579,727
417,661
1,069,660(66,346)

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

Total loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,000,702

5,207,194

Collateralized agreements:
Securities purchased under agreements to resell (includes ¥297,653 and ¥303,499 at fairvalue) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,879,312
4,997,129

13,834,460
4,283,039

Total collateralized agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16,876,441

18,117,499

Trading assets and private equity and debt investments:
Trading assets (includes assets pledged of ¥4,643,412 and ¥5,656,626; includes ¥14,328
and ¥7,043 at fair value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Private equity and debt investments (includes ¥10,770 and ¥18,033 at fair value) . . . . . . . .

15,230,817
65,193

17,509,934
99,399Total trading assets and private equity and debt investments . . . . . . . . . . . . . . . . . . . . .

15,296,010

17,609,333

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation andamortization of ¥426,081 and ¥459,954) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-trading debt securities (includes assets pledged of ¥17,823 and ¥0) . . . . . . . . . . . . . . .
Investments in equity securities (includes assets pledged of ¥606 and ¥953) . . . . . . . . . . . .
Investments in and advances to affiliated companies (includes assets pledged of ¥5,038
and ¥5,658) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (includes ¥169,080 and ¥168,780 at fair value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

419,047484,681
133,897464,316
337,361
97,660364,281773,586

402,485
1,014,707

Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,175,492

2,316,529

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥43,412,156¥47,771,802

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

F-7

NOMURA HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS—(Continued)
Millions of yen
March 31
2022
2023

LIABILITIES AND EQUITY
Short-term borrowings (includes ¥710,629 and ¥476,212 at fair value) . . . . . . . . . . . . . . . . . . . .
Payables and deposits:
Payables to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables to other than customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits received at banks (includes ¥71,156 and ¥159,505 at fair value) . . . . . . . . . . . . . .

¥ 1,050,141¥ 1,008,541

1,522,961
1,636,725
1,760,679

1,359,948
1,799,585
2,137,936

Total payables and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,920,365

5,297,469

Collateralized financing:
Securities sold under agreements to repurchase (includes ¥411,847 and ¥666,985 at fairvalue) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities loaned (includes ¥104,606 and ¥82,136 at fair value) . . . . . . . . . . . . . . . . . . . . . .
Other secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,574,556
1,567,351
396,291

14,217,966
1,556,663
334,319

Total collateralized financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14,538,198

16,108,948

Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities (includes ¥52,110 and ¥34,984 at fair value) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings (includes ¥4,557,326 and ¥4,957,581 at fair value) . . . . . . . . . . . . . . . . .

9,652,118
1,020,225
9,258,306

10,557,971
1,175,521
10,399,210

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40,439,353

44,547,660

Commitments and contingencies (Note 19)
Equity:Nomura Holdings, Inc. (“NHI”) shareholders’ equity:
Common stock
No par value shares;
Authorized—6,000,000,000 shares
Issued—3,233,562,601 shares
Outstanding—3,017,804,012 and 3,003,679,324 shares . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

594,493
697,507
1,606,987
127,973594,493
707,189
1,647,005
318,454

Total NHI shareholders’ equity before treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stock held in treasury, at cost—215,758,589 and 229,883,277 shares . . . . . . . . . . . . . .

3,026,960(112,355)

3,267,141(118,574)

Total NHI shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,914,605

3,148,567

Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

58,1982,972,803

75,5753,224,142

Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥43,412,156¥47,771,802

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

F-8

The following table presents the classification of consolidated variable interest entities’ (“VIEs”) assets andliabilities included in the consolidated balance 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 heldin the VIEs. See Note 6 “Securitizations and Variable Interest Entities” for further information.
Billions of yen
March 312022
2023

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

62 ¥
1,024
125

23
1,044
127

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

1,211

¥

1,194

Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

0
6
892

¥

0
5
887

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

898

¥

892

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

NOMURA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME

2021

Millions of yen
Year ended March 31
2022

2023

Revenue:Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees from investment banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset management and portfolio service fees . . . . . . . . . . . . . . . . . .
Net gain on trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on private equity and debt investments . . . . . . . . . . . . . . . . . .
Interest and dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain (loss) on investments in equity securities . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 376,897
108,681230,047
310,040
12,734356,466
14,053208,317¥ 332,344
149,603269,985368,799
30,768284,2225,446
152,832¥ 279,857
113,208
271,684
563,269
14,504
1,114,690(1,426)130,940

Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,617,235
215,363

1,593,999
230,1092,486,726
1,151,149

Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,401,872

1,363,890

1,335,577

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

507,906
111,550
178,835
72,367
13,520287,023

529,506
105,204
184,319
69,742
15,641
232,855

605,787
119,237
209,537
66,857
22,636
162,049

Total non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,171,201

1,137,267

1,186,103

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

230,671

226,623

149,474

Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70,27480,09057,798Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 160,397¥ 146,533

Less: Net income (loss) attributable to noncontrolling interests . . . . . . . .

7,281

3,537

Net income attributable to NHI shareholders . . . . . . . . . . . . . . . . . . . . . .

¥ 153,116¥ 142,996¥

91,676(1,110)¥92,786Yen

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

¥

50.11

¥

46.68

¥

30.86

Diluted—
Net income attributable to NHI shareholders per share . . . . . . . . . .

¥

48.63

¥

45.23

¥

29.74

The accompanying notes are an integral part of these consolidated financial statements.
F-10

NOMURA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

2021

Millions of yen
Year ended March 31
2022

2023

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss):
Change in cumulative translation adjustments:
Change in cumulative translation adjustments . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥160,397¥146,533¥ 91,676

46,821(1,287)

122,468(946)

107,058(145)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45,534

121,522106,913

Defined benefit pension plans:
Pension liability adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20,720(1,626)(404)
78

16,422(4,793)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19,094(326)

11,629Own credit adjustments:
Own credit adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(91,666)
15,94360,777(12,930)

95,047(22,050)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(75,723)

47,84772,997

Total other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . .

(11,095)

169,043

191,539

Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Comprehensive income (loss) attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

149,302

315,576

283,215

8,225

6,463

(52)

Comprehensive income attributable to NHI shareholders . . . . . . . . . . . .

¥141,077¥309,113¥283,267

The accompanying notes are an integral part of these consolidated financial statements.
F-11

NOMURA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

2021

Millions of yen
Year ended March 31
2022

2023

Common stock
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 594,493¥ 594,493¥ 594,493

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

594,493594,493594,493

Additional paid-in capital
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation awards . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in ownership interests in subsidiaries . . . . . . . . . . . . . . . . .
Changes in an affiliated company’s interests in its subsidiary . . . . .
Changes in an affiliated company’s interests . . . . . . . . . . . . . . . . . .

683,232
11,775—
1,115—

696,122
1,421
—
—
(36)

697,507
9,411
287
—
(16)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

696,122

697,507707,189

Retained earnings
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative effect of change in accounting principle (1) . . . . . . . . .
Net income attributable to NHI shareholders . . . . . . . . . . . . . . . . . .
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain (loss) on sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . .
Cancellation of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,645,451(18,200)
153,116(107,104)(346)(139,204)

1,533,713—
142,996(67,007)(2,715)—

1,606,987—
92,786(51,050)(1,718)—

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,533,713

1,606,987

1,647,005

Accumulated other comprehensive income (loss)
Cumulative translation adjustments
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(26,274)
44,59018,316
118,596

136,912
105,855

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18,316

136,912242,767

Defined benefit pension plans
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension liability adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(62,571)
19,094(43,477)(326)(43,803)
11,629Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(43,477)(43,803)(32,174)

Own credit adjustments
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Own credit adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

62,740(75,723)(12,983)
47,84734,86472,997

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12,983)

34,864

107,861

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(38,144)

127,973

318,454(1) Represents the adjustments to initially apply Accounting Standards Update ASU 2016-13, “Measurement ofCredit Losses on Financial Instruments” for the year ended March 31, 2021.

F-12

NOMURA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY—(Continued)

2021

Millions of yen
Year ended March 31
2022

2023

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(243,604)(11)
0
13,165
139,204(91,246)(39,650)
018,541—(112,355)(24,728)0
18,509—Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(91,246)(112,355)(118,574)

Total NHI shareholders’ equity
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,694,938

2,914,605

3,148,567

Noncontrolling interests
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to noncontrolling interests . . . . . . . .
Accumulated other comprehensive income attributable tononcontrolling interests
Cumulative translation adjustments . . . . . . . . . . . . . . . . . . . . .
Purchase/sale (disposition) of subsidiary shares, etc., net . . . . . . . .
Other net change in noncontrolling interests . . . . . . . . . . . . . . . . . .

77,797(1,416)
7,281

61,513(1,421)
3,537

58,198(3,277)(1,110)944
673(23,766)

2,926
1,307
(9,664)

1,058
(301)
21,007

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61,51358,19875,575

Total equity
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,756,451¥2,972,803¥3,224,142

The accompanying notes are an integral part of these consolidated financial statements.
F-13

NOMURA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWSMillions of yen
Year ended March 31

Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on investments in equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on investments in subsidiaries and affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings of affiliates, net of dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss on disposal of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in operating assets and liabilities:
Deposits with stock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities purchased under agreements to resell, net of securities sold under agreements torepurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed, net of securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Margin loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonus accrual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2021(Restated)

2022(Restated)

2023(Restated)

¥

¥

¥

160,397

146,533

91,676

63,84638,30328,251(14,053)
45,086(15,716)(64,730)(21,113)59,524
8,749
27,941(5,446)(79,396)(20,235)(3,490)3,106

61,424(4,047)35,216
1,426(23,889)(34,127)344
6,137

13,878
1,441,539
777,741(18,408)
1,229,557(284,747)

170,632(1,623,037)
467,257(1,453,871)(1,242,489)
936,346(33,994)
15,84055,712(63,363)(2,220,493)
595,116
111,468(247,980)(1,865)(37,639)(125,127)(590,424)
834,438
472,811(139,417)(3,319)(42,603)(375,318)

Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

667,610(862,832)(694,820)

Cash flows from investing activities:
Payments for placements of time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from redemption or maturity of time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of equity investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from loans receivable at banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases or origination of other non-trading loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales or repayments of other non-trading loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from interbank money market loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales or maturity of non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Divestures, net of cash disposed of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of investments in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of investments in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(239,980)
283,650(119,875)
49,642(20,115)
20,258(83,122)(3,362,619)
3,713,333(355)(124,614)
163,023(11,152)—(12,098)
1,221
735(227,644)
199,475(111,331)
94,985(3,142)
41,089(110,811)(5,695,122)
5,172,221(808)(106,390)
55,325——(5,674)
109,111(4,466)(344,117)284,705(171,165)
63,648(4,471)
52,299(84,362)(4,702,061)
4,486,651(62)(45,910)
205,468—
16,950(25,119)
43,299(8,978)Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

257,932(593,182)(233,225)

Cash flows from financing activities:
Proceeds from issuances of long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases or maturity of long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuances of short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases or maturity of short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash inflows (outflows) from interbank money market borrowings . . . . . . . . . . . . . . . . . . . . . . . .
Net cash inflows (outflows) from other secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash inflows from deposits received at banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for withholding taxes on stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions from noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,063,263(2,095,069)
2,929,762(2,865,700)(311,471)(335,372)
36,223(3,856)215(11)(76,358)
24,794(35,145)3,894,613(2,656,233)
1,743,817(2,164,098)
12,92530,753
372,575(10,816)
11(39,650)(70,714)42,881(43,346)

2,208,422(1,115,171)
2,630,083(2,694,588)
48,197(52,915)
328,867(9,060)
4(24,728)(57,262)
59,718(37,630)

Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(668,725)

1,112,718

1,283,937

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60,884

149,693

148,552

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents . . . . . .
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year . . . . . . . . . . .

317,701
3,192,310(193,603)
3,510,011

504,4443,316,408

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year . . . . . . . . . . . . . . . .

¥ 3,510,011¥ 3,316,408¥ 3,820,852

Supplemental information:
Cash paid during the year for—
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥222,024¥

225,679¥ 1,098,815

Income tax payments, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥35,675¥

114,623¥

F-14

94,263

The following table presents a reconciliation of cash and cash equivalents, and restricted cash and restrictedcash equivalents reported in Deposits with stock exchanges and other segregated cash within the consolidatedbalance 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.

2021

Cash and cash equivalents reported in Cash and cash equivalents . . . . .
Restricted cash and restricted cash equivalents reported in Deposits withstock exchanges and other segregated cash . . . . . . . . . . . . . . . . . . . . .
Total cash, cash equivalent, restricted cash and restricted cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Millions of yen
Year ended March 31
2022

2023

¥3,509,754¥3,316,238¥3,820,685

257

170

167

¥3,510,011¥3,316,408¥3,820,852

Non-cash—
Total amount of right-of-use assets recognized for the years ended March 31, 2021, 2022 and 2023 were¥41,279 million, ¥32,208 million and ¥36,032 million, respectively.
Restatement of above comparatives
See Note 1 “Summary of Accounting Policies” to these consolidated financial statements included in thisannual report for further information on the nature of this restatement.

The accompanying notes are an integral part of these consolidated financial statements.
F-15

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of accounting policies:
Restatement of historical annual consolidated financial statements
Nature of errors
During the quarter ended March 31, 2024, the Company identified classification and presentation errors
within the consolidated statements of cash flows as reported in historical annual financial statements. These
classification errors related to the incorrect classification of cash flows arising from certain non-trading loans,other financial and non-financial transactions within operating rather than investing or financing activities. These
presentation errors related to the presentation of certain cash flows from non-trading debt securities, short-termborrowings and other financial and non-financial transactions on a net rather than gross basis. None of theseerrors impact the consolidated balance sheets, consolidated statements of income or consolidated statements ofcomprehensive income and therefore do not impact previously reported earnings per share amounts.
The Company has concluded that certain of these errors are material and therefore the Company has restatedcomparative amounts included in the consolidated statements of cash flows during the years ended March 31,
2021, March 31, 2022, and March 31, 2023 to correct the identified classification and presentation errors.
The following tables present the impact of correction of each of these errors on prior amounts as previously
reported in specific line items in the consolidated statement of cash flows and the restated amounts for the years
ended March 31, 2021, March 31, 2022, and March 31, 2023.
Year ended March 31, 2023
Millions of yen
As Previously Reported
Line item[Line item not previously reported] . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt
investments . . . . . . . . . . . . . . . . . . . . . . . .
Other secured borrowings . . . . . . . . . . . . . . .
Loans and receivables, net of allowance for
credit losses . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount—(70,532)

Adjustment

As RestatedLine item

Amount(1,576,531)(62,416)(4,047) Provision for credit losses . . . . . . . . . . . .
70,532 [Line item removed] . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt
(46,506)
investments . . . . . . . . . . . . . . . . . . . . . .
62,416 [Line item removed] . . . . . . . . . . . . . . . . .

(1,623,037)—

178,254(278,296)

294,557 Margin loans and receivables . . . . . . . . . .
(97,022) Other, net . . . . . . . . . . . . . . . . . . . . . . . . .

472,811(375,318)

Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . . . .

(974,750)

279,930

Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . .

(694,820)[Line item not previously reported] . . . . . . .

—[Line item not previously reported] . . . . . . .

—Payments for purchases of investments inequity securities . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of investments in equity
securities . . . . . . . . . . . . . . . . . . . . . . . . . .
[Line item not previously reported] . . . . . . .

35,499—[Line item not previously reported] . . . . . . .

—Increase in loans receivable at banks, net . . .

(84,570)[Line item not previously reported] . . . . . . .

—[Line item not previously reported] . . . . . . .

—(344,117) Payments for placements of time
deposits . . . . . . . . . . . . . . . . . . . . . . . . .
284,705 Proceeds from redemption or maturity oftime deposits . . . . . . . . . . . . . . . . . . . . .

(100)

100

(4,047)—(344,117)284,705[Line item removed] . . . . . . . . . . . . . . . . .

—(35,499) [Line item removed] . . . . . . . . . . . . . . . . .
(4,471) Payments for purchases of equity
investments . . . . . . . . . . . . . . . . . . . . . .
52,299 Proceeds from sales of equity
investments . . . . . . . . . . . . . . . . . . . . . .
208 Net cash outflows from loans receivableat banks . . . . . . . . . . . . . . . . . . . . . . . . .
(4,702,061) Payments for purchases or origination ofother non-trading loans . . . . . . . . . . . . .
4,486,651 Proceeds from sales or repayments ofother non-trading loans . . . . . . . . . . . . .

—

F-16

(4,471)
52,299(84,362)(4,702,061)
4,486,651

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year ended March 31, 2023
Millions of yen
As Previously Reported
Line item[Line item not previously reported] . . . . . . .

Amount—Decrease (increase) in non-trading debt
securities, net . . . . . . . . . . . . . . . . . . . . . . .

159,558

Business combinations or disposals, net . . . .

16,950Decrease (increase) in investments inaffiliated companies, net . . . . . . . . . . . . . .

18,180

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .

945

Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . . . . . . . . . . . .

38,945

Increase in long-term borrowings . . . . . . . . .

2,337,586

Decrease in long-term borrowings . . . . . . . .

(1,230,365)

Decrease in short-term borrowings, net . . . .
[Line item not previously reported] . . . . . . .

(81,925)—[Line item not previously reported] . . . . . . .

—[Line item not previously reported] . . . . . . .

—[Line item not previously reported] . . . . . . .

—Increase in deposits received at banks, net . .

326,299[Line item not previously reported]
Net cash provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . .

—1,291,697

Adjustment

As RestatedLine item(62) Net cash outflows from interbank money
market loans . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of non-trading—
debt securities . . . . . . . . . . . . . . . . . . . .
Proceeds from sales or maturity of nontrading debt securities . . . . . . . . . . . . . .
—Acquisitions, net of cash acquired . . . . . .
Divestures, net of cash disposed of . . . . .
Payments for purchases of investments in—affiliated companies . . . . . . . . . . . . . . .
Proceeds from sales of investments inaffiliated companies . . . . . . . . . . . . . . .
(9,923) Other, net . . . . . . . . . . . . . . . . . . . . . . . . .
(272,170)

Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . . . . . . . . . .

(129,164) Proceeds from issuances of long-termborrowings . . . . . . . . . . . . . . . . . . . . . .
115,194 Payments for repurchases or maturity oflong-term borrowings . . . . . . . . . . . . . .
81,925 [Line item removed] . . . . . . . . . . . . . . . . .
2,630,083 Proceeds from issuances of short-termborrowings . . . . . . . . . . . . . . . . . . . . . .
(2,694,588) Payments for repurchases or maturity ofshort-term borrowings . . . . . . . . . . . . .
48,197 Net cash inflows (outflows) frominterbank money market borrowings . .
(52,915) Net cash inflows (outflows) from othersecured borrowings . . . . . . . . . . . . . . . .
2,568 Net cash inflows from deposits received
at banks . . . . . . . . . . . . . . . . . . . . . . . . .
(9,060) Payments for withholding taxes on stockbased compensation . . . . . . . . . . . . . . .
Net cash provided by (used in) financing(7,760)activities . . . . . . . . . . . . . . . . . . . . . . . .

F-17

Amount(62)(45,910)
205,468—
16,950(25,119)
43,299(8,978)(233,225)
2,208,422(1,115,171)—
2,630,083(2,694,588)
48,197(52,915)
328,867(9,060)1,283,937

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year ended March 31, 2022
Millions of yen
As Previously Reported
Line item[Line item not previously reported] . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt
investments . . . . . . . . . . . . . . . . . . . . . . . . .
Other secured borrowings . . . . . . . . . . . . . . . .
Loans and receivables, net of allowance for
credit losses . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AmountAdjustment—(23,064)

8,749
23,064

1,254,261
2,120

As RestatedLine item

Amount(24,704)(2,120)

Provision for credit losses . . . . . . . . . . . .
[Line item removed] . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt
investments . . . . . . . . . . . . . . . . . . . . . .
[Line item removed] . . . . . . . . . . . . . . . . .

1,229,557—(412,429)(102,119)

523,897(23,008)

Margin loans and receivables . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . .

111,468(125,127)(1,368,710)

505,878

Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . .

(862,832)[Line item not previously reported] . . . . . . . .

—(227,644)[Line item not previously reported] . . . . . . . .

—199,475

Payments for placements of time
deposits . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from redemption or maturity oftime deposits . . . . . . . . . . . . . . . . . . . . .

8,749
—

(227,644)
199,475

Payments for purchases of investments inequity securities . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of investments in equity
securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
[Line item not previously reported] . . . . . . . .

(300)

300

[Line item removed] . . . . . . . . . . . . . . . . .

—

2,502
—

(2,502)(3,142)—[Line item not previously reported] . . . . . . . .

—41,089

Increase in loans receivable at banks, net . . . .

(112,782)

1,971[Line item not previously reported] . . . . . . . .

—(5,695,122)[Line item not previously reported] . . . . . . . .

—5,172,221[Line item not previously reported] . . . . . . . .

—

(808)

Decrease (increase) in investments inaffiliated companies, net . . . . . . . . . . . . . . .

103,437—

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29,253(33,719)[Line item removed] . . . . . . . . . . . . . . . . .
Payments for purchases of equity
investments . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of equity
investments . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from loans receivableat banks . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases or origination ofother non-trading loans . . . . . . . . . . . . .
Proceeds from sales or repayments ofother non-trading loans . . . . . . . . . . . . .
Net cash outflows from interbank money
market loans . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of non-trading
debt securities . . . . . . . . . . . . . . . . . . . .
Proceeds from sales or maturity of nontrading debt securities . . . . . . . . . . . . . .
Payments for purchases of investments inaffiliated companies . . . . . . . . . . . . . . .
Proceeds from sales of investments inaffiliated companies . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . .

Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(45,301)(547,881)

Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . . . . . . . . . .

Increase in long-term borrowings . . . . . . . . . .

3,895,059(446)

Decrease in long-term borrowings . . . . . . . . .

(2,670,106)

13,873

Decrease in short-term borrowings, net . . . . . .
[Line item not previously reported] . . . . . . . .

(475,509)—

475,509
1,743,817[Line item not previously reported] . . . . . . . .

—(2,164,098)[Line item not previously reported] . . . . . . . .

—12,925Decrease (increase) in non-trading debt
securities, net . . . . . . . . . . . . . . . . . . . . . . . .

(51,065)—

F-18

Proceeds from issuances of long-termborrowings . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases or maturity oflong-term borrowings . . . . . . . . . . . . . .
[Line item removed] . . . . . . . . . . . . . . . . .
Proceeds from issuances of short-termborrowings . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases or maturity ofshort-term borrowings . . . . . . . . . . . . .
Net cash inflows (outflows) frominterbank money market borrowings . .

(3,142)
41,089(110,811)(5,695,122)
5,172,221(808)(106,390)
55,325(5,674)
109,111(4,466)(593,182)
3,894,613(2,656,233)—
1,743,817(2,164,098)
12,925

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year ended March 31, 2022
Millions of yen
As Previously Reported
Line item

AmountAdjustment[Line item not previously reported] . . . . . . . .

—30,753

Increase in deposits received at banks, net . . .

448,099(75,524)[Line item not previously reported] . . . . . . . .

—(10,816)

As RestatedLine item

Contributions from noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to noncontrolling interests . . . . .

—(16,475)

42,881(26,871)

Net cash inflows (outflows) from othersecured borrowings . . . . . . . . . . . . . . . .
Net cash inflows from deposits received
at banks . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for withholding taxes on stockbased compensation . . . . . . . . . . . . . . .
Contributions from noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to noncontrolling interests . .

Net cash provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,070,715

42,003

Net cash provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . .

Amount30,753
372,575(10,816)42,881(43,346)
1,112,718

Year ended March 31, 2021
Millions of yen
As Previously Reported
Line item[Line item not previously reported] . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt
investments . . . . . . . . . . . . . . . . . . . . . . . . .
Other secured borrowings . . . . . . . . . . . . . . . .
Loans and receivables, net of allowance for
credit losses . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AmountAdjustment—
43,56038,303(43,560)

1,468,357(326,450)

As RestatedLine item

Amount(26,818)
326,450

Provision for credit losses . . . . . . . . . . . .
[Line item removed] . . . . . . . . . . . . . . . . .
Trading assets and private equity and debt
investments . . . . . . . . . . . . . . . . . . . . . .
[Line item removed] . . . . . . . . . . . . . . . . .

1,441,539—

1,145,429
20,089(209,083)(83,452)

Margin loans and receivables . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . .

936,346(63,363)

Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

665,770

1,840

Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . . . . . . . . . .

667,610[Line item not previously reported] . . . . . . . .

—(239,980)[Line item not previously reported] . . . . . . . .

—283,650

Proceeds from sales of investments in equity
securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
[Line item not previously reported] . . . . . . . .

6,502
—

(6,502)(20,115)[Line item not previously reported] . . . . . . . .

—20,258

Increase in loans receivable at banks, net . . . .

(83,412)290[Line item not previously reported] . . . . . . . .

—(3,362,619)[Line item not previously reported] . . . . . . . .

—3,713,333[Line item not previously reported] . . . . . . . .

—

(355)

Decrease (increase) in non-trading debt
securities, net . . . . . . . . . . . . . . . . . . . . . . . .

38,409—Business combinations or disposals, net . . . . .

(11,152)—

F-19

Payments for placements of time
deposits . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from redemption or maturity oftime deposits . . . . . . . . . . . . . . . . . . . . .
[Line item removed] . . . . . . . . . . . . . . . . .
Payments for purchases of equity
investments . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of equity
investments . . . . . . . . . . . . . . . . . . . . . .
Net cash outflows from loans receivableat banks . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for purchases or origination ofother non-trading loans . . . . . . . . . . . . .
Proceeds from sales or repayments ofother non-trading loans . . . . . . . . . . . . .
Net cash outflows from interbank money
market loans . . . . . . . . . . . . . . . . . . . . .
Payments for purchases of non-trading
debt securities . . . . . . . . . . . . . . . . . . . .
Proceeds from sales or maturity of nontrading debt securities . . . . . . . . . . . . . .
Acquisitions, net of cash acquired . . . . . .
Divestures, net of cash disposed of . . . . .

38,303—(239,980)
283,650—(20,115)
20,258(83,122)(3,362,619)
3,713,333(355)(124,614)
163,023(11,152)—

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year ended March 31, 2021
Millions of yen
As Previously Reported
Line item

AmountAdjustment

As RestatedLine item

Decrease (increase) in investments inaffiliated companies, net . . . . . . . . . . . . . . .
[Line item not previously reported] . . . . . . . .

(9,182)—

9,182(12,098)[Line item not previously reported] . . . . . . . .

—

1,221

Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9,958)

10,693[Line item removed] . . . . . . . . . . . . . . . . .
Payments for purchases of investments inaffiliated companies . . . . . . . . . . . . . . .
Proceeds from sales of investments inaffiliated companies . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . .

Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(139,026)

396,958

Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . . . . . . . . . .

Increase in long-term borrowings . . . . . . . . . .

2,067,725(4,462)

Decrease in long-term borrowings . . . . . . . . .

(2,068,695)(26,374)

Increase (decrease) in short-term borrowings,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[Line item not previously reported] . . . . . . . .

(325,237)—

325,237
2,929,762[Line item not previously reported] . . . . . . . .

—(2,865,700)[Line item not previously reported] . . . . . . . .

—(311,471)[Line item not previously reported] . . . . . . . .

—(335,372)

Increase in deposits received at banks, net . . .

126,177(89,954)[Line item not previously reported] . . . . . . . .

—(3,856)

Proceeds from issuances of long-termborrowings . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases or maturity oflong-term borrowings . . . . . . . . . . . . . .

Contributions from noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to noncontrolling interests . . . . .

6,257
—

18,537(35,145)[Line item removed] . . . . . . . . . . . . . . . . .
Proceeds from issuances of short-termborrowings . . . . . . . . . . . . . . . . . . . . . .
Payments for repurchases or maturity ofshort-term borrowings . . . . . . . . . . . . .
Net cash inflows (outflows) frominterbank money market borrowings . .
Net cash inflows (outflows) from othersecured borrowings . . . . . . . . . . . . . . . .
Net cash inflows from deposits received
at banks . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for withholding taxes on stockbased compensation . . . . . . . . . . . . . . .
Contributions from noncontrollinginterests
Distributions to noncontrolling interests

Net cash provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(269,927)(398,798)

Net cash provided by (used in) financing
activities

F-20

Amount—(12,098)
1,221
735
257,932
2,063,263(2,095,069)—
2,929,762(2,865,700)(311,471)(335,372)
36,223(3,856)
24,794(35,145)(668,725)

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Description of business—
Nomura Holdings, Inc. (“Company”) and its broker-dealer, banking and other financial services subsidiaries
provide investment, financing and related services to individual, institutional and government clients on a global
basis. The Company and other entities in which it has a controlling financial interest are collectively referred toas “Nomura” within these consolidated financial statements.
Nomura operates its business through various divisions based upon the nature of specific products andservices, its main client base and its management structure. On April 1, 2021, the Asset Management Divisionand the Merchant Banking Division were combined and the Investment Management Division was established.
Nomura reports operating results through three business segments: Retail, Investment Management, andWholesale.
In its Retail segment, Nomura provides investment consultation services mainly to individual clients inJapan. In its Investment Management segment, Nomura mainly provides various investment management
services and investment solutions such as establishing and managing investment trusts, discretionary investment
services for domestic and overseas investors, investment and management for investment corporation and forfunds for institutional investors, and management of Tokumei kumiai (silent partnerships). In its Wholesalesegment, Nomura engages in the sales and trading of debt and equity securities, foreign exchange contracts andderivatives globally, and provides investment banking services such as the underwriting and distribution of debt
and equity securities as well as mergers and acquisitions and financial advisory.
Basis of presentation—
The accounting and financial reporting policies of Nomura conform to accounting principles generally
accepted in the United States (“U.S. GAAP”) as applicable to broker-dealers.
These consolidated financial statements include the financial statements of the Company and other entities
in which it has a controlling financial interest. Nomura initially determines whether it has a controlling financial
interest in an entity by evaluating whether the entity is a variable interest entity (“VIE”) under Financial
Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810 “Consolidation”. VIEs
are entities in which equity investors do not have the characteristics of a controlling financial interest or which do
not have sufficient equity at risk for the entities to finance their activities without additional subordinatedfinancial support. Nomura consolidates VIEs where Nomura is the primary beneficiary, which is where(1) Nomura has power to direct the activities of the VIE that is most significantly impact the VIE’s economic
performance; and (2) through Nomura’s interest in the VIE, the right to receive benefits or the obligation toabsorb losses that could potentially be significant to the VIE, provided that Nomura is not acting as a fiduciaryfor other interest holders.
For entities other than VIEs, Nomura is generally determined to have a controlling financial interest in an
entity when it owns a majority of the voting interests.
Equity investments in entities in which Nomura has significant influence over operating and financial
decisions (generally defined as a holding of 20 to 50 percent of the voting stock of a corporate entity, or at least
3 percent of a limited partnership) are accounted for under the equity method of accounting (“equity method
investments”) and reported within Other assets—Investments in and advances to affiliated companies or at fairvalue by electing the fair value option permitted by ASC 825“Financial Instruments”(“ASC 825”) and reported
within Trading assets, Private equity and debt investments or Other assets—Other in consolidated balance
sheets, depending on the nature and purpose of the investments.
F-21

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Equity investments in which Nomura has neither control nor significant influence are carried at fair value,with changes in fair value recognized through the consolidated statements of income and reported within Trading
assets, Private equity and debt investments or Other assets—Other in consolidated balance sheets depending on
the nature or purpose of the investments.
Certain consolidated entities are investment companies under ASC 946 “Financial Services—Investment
Companies” (“ASC 946”). Nomura carries all of their investments at fair value, with changes in fair value
recognized through the consolidated statements of income.
The Company’s principal subsidiaries include Nomura Securities Co., Ltd. (“NSC”), Nomura Securities
International, Inc. (“NSI”), Nomura International plc (“NIP”) and Nomura Financial Products & Services, Inc.
(“NFPS”).
All material intercompany transactions and balances have been eliminated on consolidation.
Use of estimates—
Nomura uses accounting estimates to prepare these consolidated financial statements and they requiredifficult, subjective and complex judgments by management. Such estimates determined by management to bematerial include estimates regarding the fair value of financial instruments and litigation provisions. Estimates,by their nature, are based on underlying assumptions which require management judgment and depend on theextent of available information. Actual results in future periods may differ from current estimates, which could
have a material impact on these consolidated financial statements.
Various references are made throughout the notes to these consolidated financial statements where criticalaccounting estimates based on management judgment have been made, the nature of the estimates, theunderlying assumptions made by management used to derive those estimates and how these estimates affect theamounts reported in these consolidated financial statements.
Fair value of financial instruments—
A significant amount of Nomura’s financial assets and financial liabilities are carried at fair value, withchanges in fair value recognized through the consolidated statements of income and/ or the consolidated
statements of comprehensive income. Use of a fair value measurement is either specifically required under U.S.
GAAP or Nomura makes an election to use a fair value measurement for certain eligible items under the fairvalue option.
Other financial assets and financial liabilities are carried at fair value on a nonrecurring basis, where theprimary measurement basis is not fair value. Fair value is only used in specific circumstances after initialrecognition, such as to measure impairment.
In both cases, fair value is generally determined in accordance with ASC 820 “Fair Value Measurements
and Disclosures” (“ASC 820”) which defines fair value as the amount that would be exchanged to sell a financial
asset or transfer a financial liability in an orderly transaction between market participants at the measurement
date. It assumes that the transaction occurs in Nomura’s principal market, or in the absence of a principal market,
the most advantageous market for the relevant financial asset or financial liability. See Note 2 “Fair value
measurements” for further information regarding how Nomura estimates fair value for specific types of financial
instruments used in the ordinary course of business.
F-22

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The fair values of financial assets and financial liabilities of consolidated VIEs which meet the definition ofcollateralized financing entities are both measured using the more observable fair value of the financial assets
and financial liabilities.
Allowance for current expected credit losses—
Management recognizes allowance for current expected credit losses on financial assets not carried at fairvalue and certain off-balance sheet financial instruments including unfunded loan commitments not carried at fairvalue in accordance with ASC 326, “Financial Instruments – Credit Losses” (“ASC 326”).
Current expected credit losses are calculated over the expected life of the financial instruments in scope ofthe requirements on an individual or a portfolio basis, considering all relevant, reasonable and supportable
information available about the collectability of cash flows, including information about past events, current
conditions and future forecasts. Accrued interest receivables are excluded from the amortized cost basis offinancing receivables when calculating current expected credit losses.
The methodology used by Nomura to determine allowances for current expected credit losses in accordancewith the current expected credit losses impairment model (“CECL impairment model”) primarily depends on thenature of the financial instrument and whether certain practical expedients permitted by ASC 326 are applied by
Nomura.
Allowances for current expected credit losses against recognized financial instruments are reported in the
consolidated balance sheets within Allowance for credit losses while allowances for current expected credit
losses against off-balance sheet financial instruments are reported in the consolidated balance sheets within Otherliabilities. All movements in the allowances are reported in the consolidated statements of income within Other
expenses.
See Note 7 “Financing receivables” for further information including how allowances for current expectedcredit losses are calculated.
Transfers of financial assets—
Nomura accounts for the transfer of a financial asset as a sale when Nomura relinquishes control over theasset by meeting the following conditions: (a) the asset has been isolated from the transferor (even in bankruptcy
or other receivership), (b) the transferee has the right to pledge or exchange the asset received, or if the transferee
is an entity whose sole purpose is to engage in securitization or asset-backed financing activities, if, the holdersof its beneficial interests have the right to pledge or exchange the beneficial interests held and (c) the transferor
has not maintained effective control over the transferred asset.
In connection with its securitization activities, Nomura utilizes special purpose entities (“SPEs”) tosecuritize commercial and residential mortgage loans, government and corporate securities or other types offinancial assets. Nomura’s involvement with SPEs includes structuring and underwriting, distributing and sellingdebt instruments and beneficial interests issued by SPEs to investors. Nomura derecognizes financial assets
transferred in securitizations provided that Nomura has relinquished control over such assets and does notconsolidate the SPE. Nomura may obtain or retain an interest in the financial assets, including residual interestsin the SPEs dependent upon prevailing market conditions. Any such interests are carried at fair value andreported within Trading assets in the consolidated balance sheets with the change in fair value reported within
Revenue—Net gain on trading in the consolidated statements of income.
F-23

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Foreign currency translation—
The financial statements of the Company’s subsidiaries and operations are measured using their functional
currency which is the currency of the primary economic environment in which the entity operates. All assets andliabilities of subsidiaries and operations which have a functional currency other than Japanese Yen are translated
into Japanese Yen at exchange rates at the balance sheet date, and all revenue and expenses are translated at the
average exchange rates for the respective years and the resulting translation adjustments are reported within
Accumulated other comprehensive income (loss) in NHI shareholders’ equity.
Foreign currency assets and liabilities are translated at exchange rates at the balance sheet date and theresulting translation gains or losses are credited or charged to the consolidated statements of income.
Revenue from services provided to customers—
Nomura earns revenue through fees and commissions from providing financial services to customers acrossall three business divisions. These services primarily include trade execution and clearing services, distribution offund unit services, financial advisory services, underwriting and distribution services and asset management
services.
Revenue is recognized when or as the client obtains control of the service provided by Nomura which
depends on when each of the key distinct substantive promises made by Nomura within the contract with theclient (“performance obligations”) are satisfied. Such performance obligations are generally satisfied at aparticularly point in time or, if certain criteria are met, over a period of time.
Revenue from providing distribution of fund units and clearing services is reported in the consolidated
statements of income within Revenue—Commissions, revenue from asset management services is reported in
Revenue—Asset management and portfolio service fees and revenue from financial advisory services,
underwriting and distribution services is reported in Revenue—Fees from investment banking.
Costs to obtain or fulfill the underlying contract to provide services to a client are deferred as assets if
certain criteria are met. These deferred costs, which are reported in the consolidated balance sheets within Other
assets are released to the consolidated statements of income when the related revenue from providing the service
is also recognized or earlier if there is evidence that the costs are not recoverable and therefore impaired.
Trading assets and trading liabilities—
Trading assets primarily comprise debt securities, equity securities and derivative assets which arerecognized on the consolidated balance sheets on a trade date basis and loans which are recognized on the
consolidated balance sheets on a settlement date basis.
Financial assets are classified as being held for trading when any of the following criteria are met:•

The financial assets are originated or acquired with the intention to generate profit through sale in the
short-term;•

The financial assets are part of a portfolio of identified financial instruments that are managed together
for the purposes of short-term profit or arbitrage profit-taking; or•

The financial assets are derivative assets.
F-24

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Trading liabilities primarily comprise short sales of securities and derivative liabilities, which arerecognized on the consolidated balance sheets on a trade date basis. Trading assets and liabilities are carried atfair value and changes in fair value are generally reported within Revenue—Net gain on trading in the
consolidated statements of income.
Certain nonderivative trading liabilities are held to economically hedge the price risk of specific investmentsin equity securities held for operating purposes. Changes in fair value of these trading liabilities are reported
within Revenue—Gain (loss) on investments in equity securities in the consolidated statements of income.
Collateralized agreements and collateralized financing—
Collateralized agreements consist of reverse repurchase agreements disclosed as Securities purchased underagreements to resell and securities borrowing transactions disclosed as Securities borrowed. Collateralized
financing consists of repurchase agreements disclosed as Securities sold under agreements to repurchase,
securities lending transactions disclosed as Securities loaned and certain other secured borrowings.
Reverse repurchase and repurchase agreements principally involve the buying or selling of securities underagreements with clients to resell or repurchase these securities to or from those clients, respectively. Thesetransactions are generally accounted for as collateralized agreements or collateralized financing transactions andare recognized in the consolidated balance sheets at the amount for which the securities were originally acquiredor sold. Certain reverse repurchase and repurchase agreements are carried at fair value through election of the fairvalue option.
Nomura also enters into Gensaki Repo transactions which are the standard type of repurchase agreement
used in Japanese financial markets. Gensaki Repo transactions contain margin requirements, rights of security
substitution, and certain restrictions on the client’s right to sell or repledge the transferred securities. Gensaki
Repo transactions are accounted for as collateralized agreements or collateralized financing transactions and arerecognized on the consolidated balance sheets at the amount that the securities were originally acquired or sold.
Securities borrowing and lending transactions are generally accounted for as collateralized agreements andcollateralized financing transactions, respectively. These transactions are generally cash collateralized and arerecognized on the consolidated balance sheets at the amount of cash collateral advanced or received. Allowances
for current expected credit losses recognized against securities borrowing transactions are not significant due toan ongoing monitoring of collateral and the short expected life of these transactions. Where Nomura acts as
lenders in securities borrowing and lending transactions and receives securities that can be sold or pledged ascollateral, Nomura recognizes the securities received at fair value within Other assets—Other and the obligation
to return those securities as a liability within Other liabilities.
See Note 7 “Financing receivables” for further information including how allowances for current expectedcredit losses under ASC 326 are determined.
Offsetting of collateralized agreements and collateralized financings
Reverse repurchase agreements and repurchase agreements (including Gensaki Repo transactions)accounted for as collateralized agreements and collateralized financing transactions, respectively, entered intowith the same counterparty and documented under a master netting agreement are offset in the consolidatedbalance sheets where the specific criteria defined by ASC 210-20 “Balance Sheet—Offsetting” (“ASC 210-20”)
are met. These criteria include requirements around the maturity of the transactions, the underlying systems on
which the collateral is settled, associated banking arrangements and the legal enforceability of close-out andF-25

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
offsetting rights under the master netting agreement. Similarly, securities borrowing and lending transactions
accounted for as collateralized agreements and collateralized financing transactions, respectively, entered intowith the same counterparty and documented under a master netting agreement are also offset in the consolidatedbalance sheets where the specific criteria defined by ASC 210-20 are met.
Other secured borrowings consist primarily of secured borrowings from financial institutions and central
banks in the inter-bank money market, and are carried at contractual amounts due.
Trading balances of secured borrowings consist of liabilities related to transfers of financial assets that are
accounted for as secured financing transactions rather than sales under ASC 860 “Transfers and Servicing”(“ASC 860”) and are reported in the consolidated balance sheets within Long-term borrowings. The fair value
option is generally elected for these transactions, which are carried at fair value on a recurring basis. See Note 6“Securitizations and Variable Interest Entities” and Note 10 “Borrowings” for further information regardingthese transactions.
All Nomura-owned assets pledged to counterparties where the counterparty has the right to sell or repledge
the securities, including collateral transferred under Gensaki Repo transactions, are reported parentheticallywithin Trading assets as Assets pledged in the consolidated balance sheets.
See Note 5 “Collateralized transactions” for further information.
Derivatives—
Nomura uses a variety of derivatives, including futures, forwards, swaps and options, for both trading andnon-trading purposes. Freestanding financial instruments which meet the accounting definition of derivatives arecarried at fair value in the consolidated balance sheets and reported within Trading assets or Trading liabilities
depending on whether fair value at the balance sheet date is positive or negative, respectively. Certain derivatives
embedded in hybrid financial instruments such as structured notes and certificates of deposit are bifurcated fromthe host contract and are also carried at fair value in the consolidated balance sheets and reported within Shortterm borrowings or Long-term borrowings depending on the maturity of the underlying host contract. Changes infair value are recognized either through the consolidated statements of income or the consolidated statements ofcomprehensive income depending on the purpose for which the derivatives are used.
Derivatives used for trading purposes
Derivatives used for trading purposes, including bifurcated embedded derivatives, are carried at fair value
with changes in fair value reported in the consolidated statements of income within Revenue—Net gain on
trading.
Derivatives held for non-trading purposes
In addition to its trading activities, Nomura uses derivatives for other than trading purposes such as tomanage risk exposures arising from recognized assets and liabilities, forecasted transactions and firm
commitments. Derivatives held for non-trading purposes comprise derivatives formally designated as fair value
or net investment hedges under ASC 815 “Derivatives and Hedging” (“ASC 815”) or economic expense hedges
as follows:
Fair value hedges
Nomura designates certain derivative as fair value hedges of interest rate risk and foreign exchange risk
arising from specific financial liabilities and foreign currency denominated non-trading debt securities,
F-26

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
respectively. These derivatives are effective in reducing the risk associated with the exposure being hedged andthey are highly correlated with changes in the fair value 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 financial assets and liabilities through the consolidated statements of income
within Interest expense and Revenue—Other, respectively.
Net investment hedges
Nomura designates certain derivatives as hedges of the net investment in foreign operations related to
specific subsidiaries with non-Japanese Yen functional currencies. When determining the effectiveness of net
investment hedges, the effective portion of the change in fair value of the hedging derivative is determined bychanges 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 is excluded from the measurement of hedge effectiveness andare reported in the consolidated statements of income within Revenue—Other. All other movements in fair valueof highly effective net investment hedging derivatives are reported through NHI shareholders’ equity within
Accumulated other comprehensive income (loss).
Economic expense hedges
Nomura designates certain derivatives as economic expense hedges to manage equity price risk or foreign
currency risk of certain expenses arising from forecasted transactions or firm commitments. Changes in fair valueof these derivatives are reported in the same line item in the consolidated statements of income where expenses
arising from the hedged transactions are reported.
Offsetting of derivatives
Derivative assets and liabilities with the same counterparty documented under a legally enforceable masternetting agreement and the related cash collateral receivables and payables are presented on a net basis in the
consolidated balance sheets where the specific criteria defined by ASC 210-20 and ASC 815 are met.
Settlement-to-market derivatives
Exchange traded and centrally cleared OTC derivatives typically involve daily variation margin payments
and receipts which reflect changes in the fair value of the related derivatives. Such variation margin amounts areaccounted for as either a partial settlement of the derivative or as a separate cash collateral receivable or payabledepending on the legal form of the arrangement with the relevant central clearing counterparty.
See Note 3 “Derivatives and hedging activities” for further information.
Loans receivable—
Loans receivable are loans which management intends to hold for the foreseeable future. Loans receivable
are either carried at fair value or at amortized cost. Interest earned on loans receivable is reported in the
consolidated statements of income within Revenue—Interest and dividends.
Loans receivable carried at fair value
Certain loans which are risk managed on a fair value basis are carried at fair value through election of thefair value option. Nomura makes this election to mitigate volatility in the consolidated statements of income
caused by the difference in measurement basis that would otherwise exist between the loans and the derivatives
used to risk manage those loans. Changes in the fair value of loans receivable carried at fair value are reported in
the consolidated statements of income within Revenue—Net gain on trading.
F-27

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Loans receivable carried at amortized cost
Loans receivable which are not carried at fair value are carried at amortized cost. Amortized cost represents
cost adjusted for deferred fees and direct costs, unamortized premiums or discounts on purchased loans and after
deducting applicable allowances for current expected credit losses under ASC 326 which Nomura initiallyadopted from April 1, 2020.
Loan origination fees, net of direct origination costs, are amortized to Revenue—Interest and dividends as an
adjustment to yield over the life of the loan.
Modifications of loans receivable where the borrower is in financial difficulty and Nomura has granted afinancial concession are typically accounted for as troubled debt restructurings (“TDRs”).
See Note 7 “Financing receivables” for further information including how allowances for current expectedcredit losses under ASC 326 are determined.
Other receivables—
Receivables from customers include amounts receivable on client securities transactions, amounts receivablefrom clients for failed to deliver securities and receivables for commissions receivable. Receivables from otherthan customers include amounts receivable from brokers and dealers for failed to deliver securities, margindeposits, cash collateral receivables for derivative transactions, and net receivables arising from unsettled
securities transactions.
These amounts are carried at contractual amounts due less any applicable allowance for current expectedcredit losses recognized under ASC 326.
See Note 7 “Financing receivables” for further information including how allowances for current expectedcredit losses under ASC 326 are determined.
Loan commitments—
Unfunded loan commitments written by Nomura are accounted for as either off-balance sheet instruments,
or are carried at fair value on a recurring basis either as trading instruments or through election of the fair value
option.
These loan commitments are generally accounted for in a manner consistent with the accounting for the loan
receivable upon funding. Where the loan receivable will be classified as a trading asset or will be elected for thefair value option, the loan commitment is also generally carried at fair value, with changes in fair value reported
in the consolidated statements of income within Revenue—Net gain on trading. Loan commitment fees integral
to the loan commitment are recognized as part of the fair value of the commitment.
For loan commitments where the loan will be held for the foreseeable future and will not be elected for thefair value option, Nomura recognizes allowances for current expected credit losses in accordance with ASC 326.
Loan commitment fees are generally deferred and recognized over the term of the loan when funded as an
adjustment to yield. If drawdown of the loan commitment is considered remote, loan commitment fees arerecognized over the commitment period as service revenue.
See Note 7 “Financing receivables” for further information including how allowances for current expectedcredit losses under ASC 326 are determined.
F-28

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Payables and deposits—
Payables to customers include amounts payable on client securities transactions and are generally measured
at contractual amounts due.
Payables to other than customers include payables to brokers and dealers for failed-to-receive securities,
cash collateral payable for derivative transactions, certain collateralized agreements and financing transactions
and net payables arising from unsettled securities transactions. Amounts are measured at contractual amounts
due.
Deposits received at banks represent amounts held on deposit within Nomura’s banking subsidiaries and aremeasured at contractual amounts due.
Office buildings, land, equipment and facilities—
Office buildings, land, equipment and facilities, owned and held for use by Nomura are stated at cost, net ofaccumulated depreciation and amortization, except for land, which is stated at cost. Significant renewals andadditions are capitalized at cost. Maintenance, repairs and minor renewals are expensed as incurred in the
consolidated statements of income.
Leases and subleases entered into by Nomura as either lessor or lessee are classified as either operating or
finance leases on inception date in accordance with ASC 842 “Leases”. On lease commencement date, Nomura
as lessee recognizes right-of-use (“ROU”) assets and lease liabilities which are reported within Other assets—
Office buildings, land, equipment and facilities and Other liabilities, respectively in the consolidated balance
sheets.
Lease liabilities are initially measured at present value of the future minimum lease payments over the
expected lease term. The future minimum lease payments are discounted using a relevant Nomura incremental
borrowing rate as derived from information available at lease commencement date. The expected lease term isgenerally determined based on the contractual maturity of the lease, and adjusted for periods covered by options
to extend or terminate the lease when Nomura is reasonably certain to exercise those options. ROU assets are
initially measured at the amount of lease liabilities, and adjusted for any prepaid lease payments, initial direct
costs incurred and any lease incentives received.
After lease commencement date, for operating leases Nomura as lessee recognizes lease expense over thelease term generally on a straight-line basis within Occupancy and related depreciation or Information
processing and communications in the consolidated statements of income. While for finance leases, Nomura
recognizes amortization charges of ROU assets over the lease term and interest expense on finance leaseliabilities.
Depreciation and amortization charges of owned assets are generally computed using the straight-line
method and recognized over the estimated useful lives of each asset. The estimated useful life of an asset takes
into consideration technological change, normal deterioration and actual physical usage by Nomura. Leasehold
improvements are depreciated over the shorter of their useful life or the term of corresponding lease.
The estimated useful lives for significant asset classes are as follows:
Office buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment and facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-29

3 to 50 years
3 to 20 years
3 to 10 years

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Long-lived assets, including ROU assets and software assets but excluding goodwill and indefinite-lived
intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that thecarrying amount may not be recoverable. If the estimated future undiscounted cash flows generated by the asset
is less than the carrying amount of the asset, a loss is recognized to the extent that the carrying value exceeds its
fair value.
See Note 8 “Leases” for further information.
Investments in equity securities—
Nomura holds minority stakes in the equity securities of unaffiliated Japanese financial institutions andcorporations in order to promote existing and potential business relationships. These companies often have
similar investments in Nomura. Such cross-holdings are a customary business practice in Japan and provide away for companies to manage shareholder relationships.
These investments, which Nomura refers to as being held for operating purposes, are carried at fair value
and reported within Other assets—Investments in equity securities in the consolidated balance sheets, withchanges in fair value reported within Revenue—Gain (loss) on investments in equity securities in the consolidated
statements of income.
Other non-trading debt and equity securities—
Certain subsidiaries within Nomura hold debt securities and minority stakes in equity securities for
non-trading purposes. Non-trading securities held by these subsidiaries are carried at fair value and reported
within Other assets—Non-trading debt securities and Other assets—Other in the consolidated balance sheetswith changes in fair value reported within Revenue—Other in the consolidated statements of income. Realized
gains and losses on non-trading securities are reported within Revenue—Other in the consolidated statements ofincome.
Short-term and long-term borrowings—
Short-term borrowings are defined as borrowings which are due on demand, which have a contractual
maturity of one year or less at issuance date, or which have a longer contractual maturity but which contain
substantive features outside of Nomura’s control that allows the investor to demand redemption within one year
from original issuance date, provided exercise of such features are not considered to be remote. Short-term andlong-term borrowings primarily consist of commercial paper, bank borrowings, and certain structured notes
issued by Nomura and SPEs consolidated by Nomura, and financial liabilities recognized in transfers of financial
assets which are accounted for as financings rather than sales under ASC 860 (“secured financing transactions”).
Of these financial liabilities, certain structured notes and secured financing transactions are accounted for at fairvalue on a recurring basis through election of the fair value option. Other short and long-term borrowings arecarried at amortized cost.
Structured notes are debt securities which contain embedded features (often meeting the accounting
definition of a derivative) that alter the return to the investor from simply receiving a fixed or floating rate ofinterest to a return that depends upon some other variable(s) such as an equity or equity index, commodity price,foreign exchange rate, credit rating of a third party or more complex interest rate calculation. Structured
borrowings are borrowings that have similar characteristics as structured notes.
All structured notes and certain structured borrowings issued by Nomura are carried at fair value on arecurring basis through election of the fair value option. This blanket election for structured notes and certain
F-30

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
structured borrowings are made primarily to mitigate the volatility in the consolidated statements of income
caused by differences in the measurement basis for structured notes and the derivatives used to risk manage thosepositions and to generally simplify the accounting Nomura applies to these financial instruments.
Changes in the fair value of structured notes elected for the fair value option are reported within Revenue—
Net gain on trading in the consolidated statements of income, except for those attributable to Nomura’s own
creditworthiness which are reported within Other comprehensive income in the consolidated balance sheets.
See Note 10 “Borrowings” for further information.
Income taxes—
Deferred tax assets and liabilities are recognized to reflect the expected future tax consequences of operating
loss carryforwards, tax credit carryforwards and temporary differences between the carrying amounts forfinancial reporting purposes and the tax bases of assets and liabilities based upon enacted tax laws and tax rates.
Nomura recognizes deferred tax assets to the extent it believes that it is more likely than not that a benefit will be
realized. A valuation allowance is established against deferred tax assets for tax benefits available to Nomura thatare not deemed more likely than not to be realized.
Deferred tax assets and deferred tax liabilities that relate to the same tax-paying component within aparticular tax jurisdiction are offset in the consolidated balance sheets. Net deferred tax assets and net deferred
tax liabilities are reported within Other assets—Other and Other liabilities in the consolidated balance sheets.
Nomura recognizes and measures unrecognized tax benefits based on Nomura’s estimate of the likelihood,based on technical merits, that tax positions will be sustained upon examination based on the facts andcircumstances and information available at the end of each reporting period. Nomura adjusts the level ofunrecognized tax benefits when there is more information available, or when an event occurs requiring a change.
The reassessment of unrecognized tax benefits could have a material impact on Nomura’s effective tax rate in the
period in which it occurs.
Nomura reports income tax-related interest and penalties within Income tax expense in the consolidated
statements of income.
See Note 14 “Income taxes” for further information.
Stock-based and other compensation awards—
Stock-based awards issued by Nomura to senior management and other employees are classified as either
equity or liability awards depending on the terms of the award.
Stock-based awards such as Stock Acquisition Rights (“SARs”) and Restricted Stock Units (“RSUs”) which
are expected to be settled by the delivery of the Company’s common stock are classified as equity awards. For
these awards, total compensation cost is generally fixed at the grant date and measured using the grant-date fairvalue of the award, net of any amount the employee is obligated to pay and estimated forfeitures.
Stock-based awards such as Notional Stock Units (“NSUs”) and Collared Notional Stock Units (“CSUs”)
which are expected to be settled in cash are classified as liability awards. Liability awards are remeasured to fairvalue at each balance sheet date, net of estimated forfeitures with the final measurement of cumulativecompensation cost equal to the settlement amount.
F-31

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
For both equity and liability awards, fair value is determined either by using option pricing models, themarket price of the Company’s common stock or the price of the third party index, as appropriate. Compensation
cost is recognized in the consolidated statements of income over the requisite service period, which generally isequal to the contractual vesting period. Where an award has graded vesting, compensation expense is recognizedusing the accelerated recognition method.
Certain deferred compensation awards include “Full Career Retirement” (“FCR”) provisions which permit
recipients of the awards to continue to vest in the awards upon voluntary termination or by claiming FCR duringa pre-defined election window if certain criteria based on corporate title and length of service within Nomura aremet. The requisite service period for these awards ends on the earlier of the contractual vesting date and the datethat the recipients become eligible for or claim FCR.
See Note 13 “Deferred compensation awards” for further information.
Earnings per share—
The computation of basic earnings per share is based on the weighted average number of shares outstanding
during the year. Diluted earnings per share reflects the assumed conversion of all dilutive securities based on themost advantageous conversion rate or exercise price available to the investors, and assuming conversion of
convertible debt under the if-converted method.
See Note 11 “Earnings per share” for further information.
Cash and cash equivalents—
Nomura defines cash and cash equivalents as cash on hand and demand deposits with banks.
Goodwill and intangible assets—
Goodwill is recognized upon completion of a business combination as the difference between the purchaseprice and the fair value of the net assets acquired. Subsequent to initial recognition, goodwill is not amortized but
is tested for impairment at a reporting unit level during the fourth quarter of each fiscal year, or more frequently
during earlier interim periods if events or circumstances indicate there may be impairment. Nomura’s reporting
units are at the same level as or one level below its business segments.
Nomura tests goodwill of each separate reporting unit by initially qualitatively assessing whether events andcircumstances indicate that it is more likely than not (i.e., greater than 50% likelihood) that a reporting unit’s fairvalue is less than its carrying amount. If such assessment indicates fair value is not less than the carrying value,
the reporting unit is deemed not to be impaired and no further analysis is required. If it is more likely than notthat fair value of the reporting unit is below its carrying value, a quantitative test is then performed. A goodwill
impairment loss is recognized through the consolidated statements of income as the excess of the carrying
amount of a reporting unit, including goodwill, over its fair value but limited to the total amount of goodwill
allocated to the reporting unit. Intangible assets not subject to amortization (“indefinite-lived intangible assets”)
are tested for impairment on an individual asset basis during the fourth quarter of each fiscal year, or more
frequently during earlier interim periods if events or circumstances indicate there may be impairment. Similar to
goodwill, Nomura tests an indefinite-lived intangible asset by initially qualitatively assessing whether events orcircumstances indicate that it is more likely than not that the fair value of the intangible asset is less than its
carrying amount. If such assessment indicates fair value is not less than the carrying value, the intangible asset isdeemed not to be impaired and no further analysis is required. If it is more likely than not that the fair value of
F-32

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
the intangible asset is below its carrying value, the current estimated fair value of the intangible asset iscompared with its carrying value. An impairment loss is recognized if the carrying value of the intangible asset
exceeds its estimated fair value.
Intangible assets with finite lives (“finite-lived intangible assets”) are amortized over their estimated useful
lives and tested for impairment either individually or with other assets (“asset group”) when events andcircumstances indicate that the carrying value of the intangible asset (or asset group) may not be recoverable.
A finite-lived intangible asset is impaired when its carrying amount or the carrying amount of the asset
group exceeds its fair value. An impairment loss is recognized only if the carrying amount of the intangible asset(or asset group) is not recoverable and exceeds its fair value.
For both goodwill and intangible assets, to the extent an impairment loss is recognized, the loss establishes a
new cost basis for the asset which cannot be subsequently reversed.
See Note 9 “Other assets—Office buildings, land, equipment and facilities and Other / Other liabilities” forfurther information.
Equity method investments—
Nomura’s equity method investments are tested in their entirety for other-than-temporary impairment when
there is an indication of impairment. The underlying assets associated with the equity method investments,
including goodwill, are not tested separately for impairment. If we conclude that an other-than-temporary
impairment exists, the investment is written down to its fair value, which establishes a new cost basis to be usedprospectively for application of the equity method investments.
Employee benefit plans—
Nomura provides certain eligible employees with various benefit plans, including pensions and other postretirement benefits. These benefit plans are classified as either defined benefit plans or defined contributionplans.
Plan assets and benefit obligations, as well as the net periodic benefit cost of a defined benefit pension or
post-retirement benefit plan, are recognized based on various actuarial assumptions such as discount rates,
expected return on plan assets and future compensation levels at the balance sheet date. Actuarial gains andlosses in excess of 10% of the greater of the projected benefit obligation or the fair value of plan assets andunrecognized prior service costs or credits are amortized to net periodic benefit cost on a straight-line basis over
the average remaining service life of active employees expected to receive benefits. The overfunded orunderfunded status of a plan is reported within Other assets—Other or Other liabilities in the consolidatedbalance sheets, and changes in funded status are reflected in net periodic benefit cost and Other comprehensive
income (loss) on a net-of-tax basis in the consolidated statements of comprehensive income.
The net periodic pension and other benefit cost of defined contribution plans is recognized within
Compensation and benefits in the consolidated statements of income when the employee renders service to
Nomura, which generally coincides with when contributions to the plan are made.
See Note 12 “Employee benefit plans” for further information.
New accounting pronouncements adopted during the current year—
No new accounting pronouncements relevant to Nomura were adopted during the year ended March 31,
2023.
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Future accounting developments—
The following table presents a summary of new authoritative accounting pronouncements relevant to
Nomura which will be adopted on or after April 1, 2023, the expected date of adoption by Nomura and whether
the new accounting pronouncement may have a material impact on these consolidated financial statements:

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

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

Summary of new guidance•

Eliminates specific recognition andmeasurement 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”) or reconcilable method formeasurement of current expected credit
losses for modified receivables isremoved; where a DCF method is used
for the measurement, an effective
interest rate (EIR) derived from themodified contractual terms should beapplied;•Enhances disclosures by creditors formodifications of receivables fromdebtors experiencing financial
difficulty in the form of principal
forgiveness, an interest rate reduction,other-than-insignificant payment delay
or term extension;•

Augments the current requirements for
public business entity creditors todisclose current-period gross write-offs
by year of origination (i.e., the vintageyear) for financing receivables and net
investments in leases.

•

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

•

Enhances disclosures for fair value ofinvestments in equity securities subject
to contractual sale restrictions, natureand remaining duration of therestrictions and circumstances that
could cause a lapse in the restrictions.

F-34

Expected adoption
date and method of
adoption

Effect on these
consolidated
statements

Nomura will adopt
the amendments from
April 1, 2023.

No material financial impact
expected unless a significant
number of TDRs occur inthe future.
Certain disclosures aboutmodification of receivables
and write-offs will be
updated or removed.

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

No material financial impact
expected.

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 atfair value on a recurring basis are reported 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 theprimary measurement basis is not fair value but where fair value is used in specific circumstances after initialrecognition, such as to measure impairment.
In all cases, fair value is determined in accordance with ASC 820 “Fair Value Measurements andDisclosures” (“ASC 820”) which defines fair value as the amount that would be exchanged to sell a financial
asset or transfer a financial liability in an orderly transaction between market participants at the measurement
date. It assumes that the transaction occurs in the principal market for the relevant financial assets or financial
liabilities, or in the absence of a principal market, the most advantageous market.
Fair value is usually determined on an individual financial instrument basis consistent with the unit ofaccount of the financial instrument. However, certain financial instruments managed on a portfolio basis arevalued 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 basis of net asset value per share (“NAV per share”) if the NAV pershare 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 containinherent 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 and reduced price transparency, such as during the COVID-19 pandemic in 2021 and may therefore
require the greater use of judgement in the determination of fair value. Where appropriate, Nomura uses
economic hedging strategies to mitigate risk, although these hedges are also subject to unpredictable movementsin 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 pricesthat 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 or valuation 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 fairvalue of assets or liabilities marked using such prices. Other instruments may be measured using valuation
F-35

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 andrealized gains and losses recognized, and the use of different valuation pricing models or underlying assumptions
could produce different financial results. Valuation uncertainty results from a variety of factors, including thevaluation 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 thisuncertainty. 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.
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 these adjustments, and the valuation inputs forthese 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 withregards 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 and consistency
independently of the front office. The model reviews consider a number of factors about a model’s suitability forvaluation and sensitivity of a particular product. Valuation models are calibrated to the market on a periodic basis
by comparison to observable market pricing, comparison with alternative models and analysis of risk profiles.
As explained above, any changes in fixed income, equity, foreign exchange and commodity markets canimpact 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.

F-36

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 three-level hierarchy (“fair value hierarchy”) based on the transparency ofvaluation inputs used by Nomura to estimate fair value. A financial instrument is classified 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 mosttransparent inputs and Level 3 representing the least transparent inputs:
Level 1:
Observable valuation inputs that reflect quoted prices (unadjusted) for identical financial instruments tradedin 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.
The availability of valuation inputs observable in the market varies by product and can be affected by avariety of factors. Significant factors include, but are not restricted to the prevalence of similar products in themarket, 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 of observable data. Under such circumstances, financial instruments may bereclassified 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 themarket, significant management judgment is used in establishing fair value. The valuations for Level 3 financial
instruments, therefore, involve a greater degree of judgment than those valuations for Level 1 or Level 2
financial instruments.
Certain criteria used to determine whether a market is active or inactive include the number of transactions,the frequency that pricing is updated by other market participants, the variability of price quotes among market
participants, and the amount of publicly available information.

F-37

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present the amounts of Nomura’s financial instruments carried at fair value on arecurring basis as of March 31, 2022 and 2023 within the fair value hierarchy.
Billions of yen
March 31, 2022
Counterparty
andCash Collateral Balance as ofLevel 1 Level 2 Level 3
Netting(1)March 31, 2022
Assets:Trading assets and private equity and debt investments(2)Equities(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥2,100 ¥ 1,041 ¥ 14
Private equity and debt investments(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22—
32Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,730——
Japanese agency and municipal securities . . . . . . . . . . . . . . . . . . . . . . . . .
—184
2Foreign government, agency and municipal securities . . . . . . . . . . . . . . . 3,220
2,010
10Bank and corporate debt securities and loans for trading purposes . . . . . .
—
1,134
220
Commercial mortgage-backed securities (“CMBS”) . . . . . . . . . . . . . . . . .
—0
7Residential mortgage-backed securities (“RMBS”) . . . . . . . . . . . . . . . . . .
—
1,450
8
Issued/Guaranteed by government sponsored entity . . . . . . . . . . . . .
—
1,376
—
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—74
8Real estate-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
58
79
(6)
Collateralized debt obligations (“CDOs”) and other...............
—
34
26
Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
293
23
0

¥

—
—
—
—
—
—
—
—
—
—
—
—
—

¥ 3,155
54
1,730
186
5,240
1,354
7
1,458
1,376
82
137
60
316

Total trading assets and private equity and debt investments . . . . . . . . . . . . . .

7,365

5,934

398

—

13,697

Derivative assets(7)Equity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Netting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3
120
12
—
1
—

874
11,755
398
4,777
0
—

97
63
33
29
—
—

—
—
—
—
—
(16,608)974
11,938443
4,806
1(16,608)

Total derivative assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

136

17,804

222(16,608)

1,554

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,501 ¥23,738 ¥ 620¥(16,608)¥ 15,251

Loans and receivables(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateralized agreements(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets(2)Non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(3)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—
—

1,103
282

205
16

—
—

1,308
298

117
146

367
136

—
197

—
—

484
479

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,764 ¥25,626 ¥1,038
Liabilities:
Trading liabilities
Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,796 ¥8 ¥0Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,098——
Japanese agency and municipal securities . . . . . . . . . . . . . . . . . . . . . . . . .
—0—Foreign government, agency and municipal securities . . . . . . . . . . . . . . . 3,451
1,3280Bank and corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—222
3Residential mortgage-backed securities (“RMBS”) . . . . . . . . . . . . . . . . . .
—0—Collateralized debt obligations (“CDOs”) and other(6) . . . . . . . . . . . . . . .
—30Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
00¥(16,608)¥ 17,820

¥

—
—
—
—
—
—
—
—

¥ 1,804
1,098
0
4,779
225
0
3
76

Total trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,421

1,561

3

—

7,985

Derivative liabilities(7)Equity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Netting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2
60
14
0
0
—

1,368
10,826
434
4,795
1
—

87
74
66
19
—
—

—
—
—
—
—
(16,079)

1,457
10,960514
4,814
1(16,079)

Total derivative liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

76

17,424

246(16,079)

1,667

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥6,497 ¥18,985 ¥ 249¥(16,079)¥ 9,652¥¥

Short-term borrowings(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ — ¥ 653 ¥ 58
Payables and deposits(10)(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—63
8
Collateralized financing(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—516—
Long-term borrowings(11)(13)(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
4,055
479
Other liabilities(15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
155
32
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥6,552 ¥24,427 ¥ 826

F-38

—
—
—
—
—

¥(16,079)

711
71
516
4,557
219

¥ 15,726

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Billions of yen
March 31, 2023
Counterparty
andCash Collateral Balance as ofLevel 1 Level 2 Level 3
Netting(1)March 31, 2023
Assets:Trading assets and private equity and debt investments(2)Equities(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,906 ¥ 1,111 ¥4
Private equity and debt investments(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25—
52Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,627——
Japanese agency and municipal securities . . . . . . . . . . . . . . . . . . . . . . . . .
—157
2
Foreign government, agency and municipal securities . . . . . . . . . . . . . . . 3,566
2,221
8Bank and corporate debt securities and loans for trading purposes . . . . . .
—
1,268
258
Commercial mortgage-backed securities (“CMBS”) . . . . . . . . . . . . . . . . .
——0Residential mortgage-backed securities (“RMBS”) . . . . . . . . . . . . . . . . . .
—
3,402
8
Issued/Guaranteed by government sponsored entity . . . . . . . . . . . . .
—
3,265
—
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—137
8Real estate-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—58
95
Collateralized debt obligations (“CDOs”) and other(6) . . . . . . . . . . . . . . .
—35
28
Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
307
3
2

¥

—
—
—
—
—
—
—
—
—
—
—
—
—

¥ 3,021
77
1,627
159
5,795
1,526
0
3,410
3,265
145
153
63
312

Total trading assets and private equity and debt investments . . . . . . . . . . . . . .

7,431

8,255

457

—

16,143

Derivative assets(7)Equity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Netting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2
73
8
0
1
—

1,052
12,593
232
4,171
2
—

11
133
36
49
—
—

—
—
—
—
—
(16,943)

1,065
12,799276
4,220
3(16,943)

Total derivative assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

84

18,050229(16,943)

1,420

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,515 ¥26,305 ¥ 686¥(16,943)¥ 17,563

Loans and receivables(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateralized agreements(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets(2)Non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(3)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—
—

1,498
286

191
17

—
—

1,689
303

87
188

247
164

3
196

—
—

337
548

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,790 ¥28,500 ¥1,093
Liabilities:
Trading liabilities
Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥2,068 ¥13 ¥1
Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,469——
Japanese agency and municipal securities . . . . . . . . . . . . . . . . . . . . . . . . .
—5—Foreign government, agency and municipal securities . . . . . . . . . . . . . . . 3,579
1,021
0Bank and corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—232
3Residential mortgage-backed securities (“RMBS”) . . . . . . . . . . . . . . . . . .
—0—Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
158—
0¥(16,943)¥ 20,440

¥

—
—
—
—
—
—
—

¥ 2,082
1,469
5
4,600
235
0
158

Total trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,274

1,271

4

—

8,549

Derivative liabilities(7)Equity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Netting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3
45
14
0
—
—

1,602
12,080
276
4,090
3
—

5
122
68
30
—
—

—
—
—
—
—
(16,329)

1,610
12,247358
4,120
3(16,329)

Total derivative liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

62

18,051

225(16,329)

2,009

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,336 ¥19,322 ¥ 229¥(16,329)¥ 10,558¥¥

Short-term borrowings(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ — ¥ 446 ¥ 30
Payables and deposits(10)(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—142
17
Collateralized financing(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—749—(11)(13)(14)Long-term borrowings......................................
27
4,437
493
Other liabilities(15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108
175
21
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,471 ¥25,271 ¥ 790

F-39

—
—
—
—
—

¥(16,329)

476
159
749
4,957
304

¥ 17,203

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(1) Represents the amount offset under counterparty netting of derivative assets and liabilities as well as cash collateral netting against net
derivatives.
(2) 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, 2022 and March 31, 2023, the fair values of these investments which are included in Trading assets and private equity
and debt investments were ¥45 billion and ¥47 billion, respectively. As of March 31, 2022 and March 31, 2023, the fair values of theseinvestments which are included in Other assets—Others were ¥3 billion and ¥3 billion, respectively.
(3) Includes equity investments that would have been accounted for under the equity method had Nomura not chosen to elect the fair value
option.
(4) Includes equity investments which comprise listed and unlisted equity securities held for operating purposes in the amounts of¥101,503 million and ¥32,394 million, respectively, as of March 31, 2022 and ¥69,475 million and ¥28,185 million, respectively, as ofMarch 31, 2023.
(5) 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 elect the fair value option.
(6) Includes collateralized loan obligations (“CLOs”) and asset-backed securities (“ABS”) such as those secured on credit card loans, autoloans and student loans.
(7) Derivatives which contain multiple types of risk are classified based on the primary risk type of the instrument.
(8) Includes loans and receivables for which the fair value option has been elected.
(9) Includes collateralized agreements or collateralized financing for which the fair value option has been elected.
(10) Includes deposits received at banks for which the fair value option has been elected.
(11) Includes structured notes for which the fair value option has been elected.
(12) 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.
(13) Includes embedded derivatives bifurcated from issued structured notes. Structured notes are adjusted for fair value changes incorresponding embedded derivatives for presentation in the consolidated balance sheets(14) Includes liabilities recognized from secured financing transactions that are accounted for as financings rather than sales. Nomura elected
the fair value option for these liabilities.
(15) 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 of both listed and unlisted equity securities, and fund investments. The fairvalue of listed equity securities is determined using quoted prices for identical securities from active markets
where available. These valuations should be in line with market practice and therefore can be based on bid prices
or mid-market prices. Nomura determines whether the market is active depending on the sufficiency andfrequency of trading activity. Where these securities are classified in Level 1 of the fair value hierarchy, novaluation 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 ofsuch adjustments made to listed equity securities traded in inactive markets was ¥nil as of March 31, 2022 and2023, respectively. The fair value of unlisted equity securities is determined using the same valuation techniqueas 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 are unobservable.
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 fairvalue. Adjustments to carrying value are made if there is third-party evidence of a change in value. Adjustments
F-40

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
are also made, in the absence of third-party transactions, if it is determined that the expected exit price of theinvestment is different from carrying value. In reaching that determination, Nomura primarily uses either adiscounted cash flow (“DCF”) or market multiple valuation technique. A DCF valuation technique incorporates
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 othermultiples based on relationships between numbers reported in the financial statements of the investee and theprice 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 forvarious uncertainties in the model and inputs to valuation. Where possible these valuations are compared with theoperating 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 areusually 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, oralternative 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 arevalued 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 informationfrom 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 the nature of the broker anddealer 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 are yield curves, asset swap spreads, recovery rates and credit spreadsof 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 toclassify them in Level 2, or credit spreads or recovery rates of the issuer used in DCF valuations areunobservable.
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 or similar securities, if
available. Consideration is given to the nature of the broker and dealer quotations, namely whether these areindicative 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 generally classified 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
F-41

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
comparable securities to classify them in Level 2, or one or more of 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 ordealer 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, thenumber 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.
Collateralized debt obligations (“CDOs”) and other—The fair value of CDOs is primarily determinedusing DCF valuation techniques but also using broker or dealer quotations and recent market transactions ofidentical or similar 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 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 the fair value hierarchy. Investments in funds that are not publicly traded but
Nomura has the ability to redeem its investment at NAV per share on the balance 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 atfair value using NAV per share as a practical expedient are not classified in the fair value hierarchy.
Derivatives—Equity contracts—Nomura enters into both exchange-traded and OTC equity derivativetransactions such as index and equity options, equity basket options and index and equity swaps. Where thesederivatives are traded in active markets and the exchange price is representative of fair value, the fair value of
exchange-traded equity derivatives is determined using an unadjusted exchange price and classified in Level 1 of
the fair value 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 areclassified in Level 2. The fair value of OTC equity derivatives is determined through 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 and Nomura’s own creditworthiness on derivative liabilities. OTC
equity 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 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 isrepresentative 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
F-42

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
interest rate derivatives which are traded in inactive markets or where the exchange price is not representative offair value is determined using a model price and are classified in Level 2. The fair value of OTC interest rate
derivatives is determined through DCF valuation techniques as well as option models such as Black-Scholes orMonte Carlo simulation. 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 toreflect counterparty credit risk on derivative assets and Nomura’s own creditworthiness on derivative liabilities.
OTC interest rate derivatives are generally classified in Level 2 because all significant valuation inputs andadjustments are observable 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 orMonte 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 on derivative 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 ormore complex OTC credit derivatives are classified in Level 3 where credit spread, recovery rate, volatility or
correlation valuation inputs are significant and unobservable.
Derivatives—Foreign exchange contracts—Nomura enters into both exchange-traded and OTC foreignexchange 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 priceis not representative of fair value is determined using a model price and are classified in Level 2. The fair valueof OTC foreign exchange 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,
forward FX rates, spot FX rates and volatilities. Valuation adjustments are also made to model valuations inorder 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 market-corroborated. Certain foreign exchange derivatives areclassified in Level 3 where interest rates, volatility or correlation valuation inputs are significant andunobservable.
Nomura includes valuation adjustments in its estimation of fair value of certain OTC derivatives relating tofunding costs associated with these transactions 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 are similar to those used in the valuationof 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 are traded infrequently and there is not sufficient information fromcomparable securities to classify them in Level 2 or credit spreads of the issuer or recovery rates used in DCF
valuations are significant and unobservable.

F-43

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Collateralized agreements and Collateralized financing—The primary types of collateralized agreement andfinancing transactions carried at fair value are reverse repurchase and repurchase agreements elected for the fairvalue 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
general collateral or special rates. Reverse repurchase and repurchase agreements are generally classified in
Level 2 of the fair value hierarchy because these valuation 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 the fair value hierarchy using the same valuation techniques used for other debt
securities classified as Government, agency and municipal securities and Bank 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 variable interest entities (“VIEs”) which contain embedded features that alter the
return to the investor from simply receiving a fixed or floating rate of interest to a return that depends upon someother 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).
The fair value of structured notes is determined using quoted prices in active markets for the identical
instrument if available, and where not available, using a mixture of valuation techniques that use the quoted priceof 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 both the 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 based on recent
observable secondary market transactions and executable broker quotes involving Nomura debt instruments andis therefore typically treated as a Level 2 valuation input. Structured notes are generally classified in Level 2 ofthe fair value hierarchy as all significant valuation inputs and adjustments 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 a financial 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 andtherefore, no adjustment is made to reflect Nomura’s own creditworthiness.
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
F-44

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
the financial instrument, stale or non-current price quotes, price quotes that vary substantially either over time oramong 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 the market. The level of correlation between the specific Level 3 financial
instrument and the available benchmark instrument is considered as an unobservable valuation input. Other
techniques for determining an appropriate value for unobservable valuation input may consider information suchas consensus 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 specificvaluation for each instrument is based on management’s judgment of prevailing market conditions, in accordancewith Nomura’s established valuation policies and procedures.
Quantitative and qualitative information regarding significant unobservable valuation inputs
The following tables present quantitative and qualitative information about the significant unobservablevaluation inputs used by Nomura to measure the fair value of financial instruments classified in Level 3 as ofMarch 31, 2022 and 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 hedged using
financial instruments which are classified in Level 1 or Level 2 of the fair value hierarchy. Changes in each ofthese significant unobservable valuation inputs used by Nomura will impact upon the fair value measurement of
the financial instrument. The following tables also illustrate qualitatively how an increase in those significant
unobservable valuation inputs might result in a higher or lower fair value measurement at the reporting date andthe interrelationship between significant unobservable valuation inputs where more than one is used to determine
fair value measurement of the financial instruments.
March 31, 2022

Financial Instrument

Fair
value inbillions ofyen

ValuationtechniqueSignificant
unobservablevaluation input

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

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)Interrelationships
between valuation
inputs(6)Assets:Trading assets andprivate equity anddebt investments
Equities . . . . . . . . . ¥

14

DCF

Liquidity discounts

75.0%

75.0%

Lower fair value

Not applicable

Private equity anddebt
investments . . . .

32

DCF

WACC
Growth rates
Liquidity discounts

7.1 – 13.0%
0.0 – 2.0%
5.0 – 30.0%

10.2%
0.7%
18.5%

Lower fair value
Higher fair value
Lower fair value

No predictableinterrelationshipMarketmultiples

EV/EBITDA ratios
PE Ratios
Liquidity discounts

2.0 – 11.2 x
10.7 – 12.6 x
5.0 – 20.0%

6.9 x
11.6 x11.9%

Higher fair value
Higher fair value
Lower fair value

No predictableinterrelationship

DCF

Credit spreads
Recovery rates

0.0 – 1.3%
6.0%

0.7%
6.0%

Lower fair value
Higher fair value

No predictableinterrelationshipForeigngovernment,
agency andmunicipal
securities . . . . . .

10

F-45

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
March 31, 2022

Financial Instrument

Fair
value inbillions ofyen

ValuationtechniqueSignificant
unobservablevaluation input

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

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)Interrelationships
between valuation
inputs(6)Bank andcorporate debt
securities andloans for trading
purposes . . . . . .

220

DCF

Credit spreads
Recovery rates

0.1 – 114.7%
0.0 – 100.0%

7.2%
84.4%

Lower fair value
Higher fair value

No predictableinterrelationshipCommercial
mortgagebackedsecurities(“CMBS”) . . . .

7

DCF

YieldsLoss severities

4.3 – 11.1%
28.3 – 73.0%

4.6%
40.8%

Lower fair value
Lower fair value

No predictableinterrelationshipResidential
mortgagebackedsecurities(“RMBS”) . . . .

8

DCF

Yields
Prepayment rates
Loss severities

0.0 – 22.2%
6.9 – 15.0%
0.0 – 99.9%

8.4%
9.5%
6.9%

Lower fair value
Lower fair value
Lower fair value

No predictableinterrelationshipReal estate-backed
securities . . . . . .

79

DCF

Loss severities

0.0 – 21.2%

2.9%

Lower fair value

Not applicable

Collateralized debt
obligations(“CDOs”) andother . . . . . . . . .

26

DCF

Yields
Prepayment rates
Default probabilities
Loss severities

5.5 – 27.5%
18.0 – 20.0%
2.0%
0.0 – 100.0%

13.1%
19.5%
2.0%
44.0%

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

Change in default
probabilities typicallyaccompanied bydirectionally similarchange in loss
severities and oppositechange in prepayment
rates

Derivatives, net:
Equity contracts . . ¥10

Option models

Dividend yield
Volatilities
Correlations

0.0 – 12.6%
0.0 – 109.7%(0.80) – 0.97———

Higher fair value
Higher fair value
Higher fair value

No predictableinterrelationship

Interest rate
contracts . . . . . .

(11)

DCF/
Option models

Interest rates
Volatilities
Volatilities
Correlations

0.3 – 3.3%
9.2 – 13.9%
34.8 – 128.3 bp(1.00) – 0.98

—
—
—
—

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

No predictableinterrelationship

Credit contracts . .

(33)

DCF/
Option models

Credit spreads
Recovery rates
Volatilities
Correlations

0.0 – 428.7%
0.0 – 90.0%
50.0 – 67.6%
0.00 – 0.90

—
—
—
—

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

No predictableinterrelationshipForeign exchange
contracts . . . . . .

10

Option models

Interest rates
Volatilities
Volatilities
Correlations

0.3 – 2.9%
2.4 – 39.3%
13.9 – 24.0 bp(0.25) – 0.84

—
—
—
—

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

No predictableinterrelationship

Loans andreceivables . . . . . . . .

205

DCF

Credit spreads
Recovery rates

0.0 – 21.5%
44.0 – 100.0%

6.0%
98.2%

Lower fair value
Higher fair value

No predictableinterrelationship

Collateralized
agreements . . . . . . . .

16

DCF

Repo rate

2.8 – 6.0%

3.6%

Lower fair value

Not applicable

F-46

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
March 31, 2022

Financial Instrument

Fair
value inbillions ofyen

Other assets
Other(7) . . . . . . . . .

197

Significant
unobservablevaluation input

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

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)

DCF

WACC
Growth rates
Liquidity discounts

10.1%
2.0%
10.0%

10.1%
2.0%
10.0%

Lower fair value
Higher fair value
Lower fair value

No predictableinterrelationshipMarketmultiples

EV/EBITDA ratios
PE Ratios
Price/Book ratios
Liquidity discounts

3.6 – 5.9 x
6.7 – 30.8 x
0.3 – 1.7 x
25.0 – 40.0%

4.4 x
13.1 x
0.9 x
30.6%Higher fair value
Higher fair value
Higher fair value
Lower fair value

Generally changes in
multiples result in acorresponding similar
directional change in afair value
measurement,
assuming earnings
levels remain constant.

ValuationtechniqueInterrelationships
between valuation
inputs(6)Liabilities:
Trading Liabilities
Bank andcorporate debt
securities . . . . . .

3

DCF

Recovery rates

3.9 – 97.0%

84.1%

Higher fair value

Not applicable

Short-termborrowings . . . . . . . .

58

DCF/
Option models

Volatilities
Correlations

5.0 – 97.0%(0.80) – 0.93——

Higher fair value
Higher fair value

No predictableinterrelationshipPayable and deposits . .

8

DCF/
Option models

Volatilities
Volatilities
Correlations

9.2 – 11.3%
41.2 – 69.6 bp
0.34 – 0.98———

Higher fair value
Higher fair value
Higher fair value

No predictableinterrelationship

Long-term
borrowings . . . . . . . .

479

Other liabilities . . . . . . .

32

DCF

Loss severities

0.0%

0.0%

Lower fair value

Not applicable

DCF/
Option models

Volatilities
Volatilities
Correlations

5.0 – 97.0%
41.2 – 69.6 bp(1.00) – 0.98———

Higher fair value
Higher fair value
Higher fair value

No predictableinterrelationship

DCF

Recovery rates

90.0%

90.0%

Higher fair value

Not applicable

Interrelationships
between valuation
inputs(6)March 31, 2023

ValuationtechniqueSignificant
unobservablevaluation input

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

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

DCF

Liquidity discounts

75.0%

75.0%

Lower fair value

Not applicable

52

DCF

WACC
Growth rates
Credit spreads
Liquidity discounts

5.5 – 17.5%
0.0 – 2.0%
7.5 – 10.9%
5.0 – 30.0%

10.1%
0.7%
9.8%
17.1%

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

No predictableinterrelationshipMarketmultiples

EV/EBITDA ratios
PE Ratios
Liquidity discounts

2.0 – 11.7 x
11.3 – 24.3 x
5.0 – 20.0%

8.4 x
14.4 x11.0%

Higher fair value
Higher fair value
Lower fair value

No predictableinterrelationship

DCF

Credit spreads
Recovery rates

0.0 – 1.7%
6.3 – 18.0%

0.7%
8.1%

Lower fair value
Higher fair value

No predictableinterrelationship

Financial Instrument

Fair
value inbillions ofyen

Assets:Trading assets andprivate equity anddebt investments
Equities . . . . . . . . .

¥Private equity anddebt
investments . . . .

Foreigngovernment,
agency andmunicipal
securities . . . . . .

8

F-47

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
March 31, 2023

Significant
unobservablevaluation input

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

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)

DCF

Credit spreads
Recovery rates

0.0 – 21.8%
0.0 – 100.0%

5.7%
83.1%

Lower fair value
Higher fair value

No predictableinterrelationship8

DCF

Yields
Prepayment rates
Loss severities

17.7 – 28.6%
12.0 – 15.0%
0.4 – 99.6%

24.3%
13.2%
20.3%

Lower fair value
Lower fair value
Lower fair value

No predictableinterrelationshipReal estate-backed
securities . . . . . .

95

DCF

Loss severities

1.3 – 70.0%

9.2%

Lower fair value

Not applicable

Collateralized debt
obligations(“CDOs”) andother . . . . . . . . .

28

DCF

Yields
Prepayment rates
Default probabilities
Loss severities

6.0 – 38.9%
18.0 – 20.0%
2.0%
50.0 – 100.0%

13.9%
19.0%
2.0%
52.6%

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

Change in default
probabilities typicallyaccompanied bydirectionally similarchange in loss
severities and oppositechange in prepayment
rates

Investment trust
funds andother . . . . . . . . .

2

DCF

Liquidity discounts

0.0 – 2.0%

1.0%

Lower fair value

Not applicable

6

Option models

Dividend yield
Volatilities
Correlations

0.0 - 25.1%
15.4 – 108.6%(0.85) - 0.98———

Higher fair value
Higher fair value
Higher fair value

No predictableinterrelationship

Interest rate
contracts . . . . . .

11

DCF/
Option models

Interest rates
Volatilities
Volatilities
Correlations

1.0 - 4.4%
10.7 - 14.1%
38.5 - 147.4 bp(1.00) - 1.00

—
—
—
—

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

No predictableinterrelationship

Credit contracts . .

(32)

DCF/
Option models

Credit spreads
Recovery rates
Volatilities
Correlations

0.1 - 348.3%
0.0 - 90.0%
55.5 - 61.1%
0.23 - 0.90

—
—
—
—

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

No predictableinterrelationshipForeign exchange
contracts . . . . . .

19

Option models

Volatilities
Correlations

1.0 - 23.6%
0.18 - 0.74——

Higher fair value
Higher fair value

No predictableinterrelationship

Loans andreceivables . . . . . . . .

191

DCF

Credit spreads
Recovery rates

0.0 - 25.8%
22.1 - 100.0%

7.1%
74.5%

Lower fair value
Higher fair value

No predictableinterrelationship

Collateralized
agreements . . . . . . . .

17

DCF

Repo rate

2.8 - 6.0%

3.4%

Lower fair value

Not applicable

Fair
value inbillions ofyen

ValuationtechniqueBank andcorporate debt
securities andloans for trading
purposes . . . . . .

258

Residential
mortgagebackedsecurities(“RMBS”) . . . .

Financial Instrument

Derivatives, net:
Equity contracts . .

¥Interrelationships
between valuation
inputs(6)Other assets
Non-trading debt
securities . . . . . .

3

DCF

Credit spreads

0.0%

0.0%

Lower fair value

Not applicable

Other(7) . . . . . . . . .

196

DCF

WACC
Growth rates

11.2%
3.0%

11.2%
3.0%

Lower fair value
Higher fair value

No predictableinterrelationship

F-48

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
March 31, 2023

Financial Instrument

Fair
value inbillions ofyen

Significant
unobservablevaluation input

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

Impact ofincreases insignificant
unobservablevaluation
inputs(4)(5)Marketmultiples

EV/EBITDA ratios
PE Ratios
Price/Book ratios
Liquidity discounts

4.0 - 5.4 x
7.4 - 30.8 x
0.3 - 1.6 x
25.0 - 30.0%

4.4 x
10.3 x0.8 x
29.8%Higher fair value
Higher fair value
Higher fair value
Lower fair value

Generally changes in
multiples result in acorresponding similar
directional change in afair value
measurement,
assuming earnings
levels remain constant.

ValuationtechniqueInterrelationships
between valuation
inputs(6)Liabilities:
Trading Liabilities
Bank andcorporate debt
securities . . . . . .

3

DCF

Recovery rates

4.5 - 95.0%

65.5%

Higher fair value

Not applicable

Short-termborrowings . . . . . . . .

30

DCF/
Option models

Volatilities
Correlations

15.4 - 100.6%(0.80) - 0.95——

Higher fair value
Higher fair value

No predictableinterrelationshipPayable and deposits . .

17

DCF/
Option models

Volatilities
Correlations

10.7 - 11.3%
0.40 - 0.98——

Higher fair value
Higher fair value

No predictableinterrelationship

Long-term
borrowings . . . . . . . .

493

Other liabilities . . . . . . .

21

DCF

Loss severities

0.0 - 30.0%

9.0%

Lower fair value

Not applicable

DCF/
Option models

Volatilities
Volatilities
Correlations

10.5 - 100.6%
51.9 - 63.6 bp(1.00) - 0.98———

Higher fair value
Higher fair value
Higher fair value

No predictableinterrelationship

DCF

Recovery rates

40.0 - 98.5%

89.9%

Higher fair value

Not applicable(1) Range information is provided in percentages, coefficients and multiples and represents the highest and lowest level significant
unobservable valuation input used to value that type of financial instrument. A wide dispersion in the range does not necessarily reflectincreased uncertainty or subjectivity in the valuation input and is typically just a consequence of the different characteristics of thefinancial instruments themselves.
(2) Weighted average information for non-derivatives is calculated by weighting each valuation input by the fair value of the financial
instrument.
(3) Nomura has not provided weighted average information for derivatives as unlike cash products the risk on such products is distinct fromthe balance sheet value and is subject to netting.
(4) The above table only considers the impact of an increase in each significant unobservable valuation input on the fair value measurementof the financial instrument. However, a decrease in the significant unobservable valuation input would have the opposite effect on the fairvalue measurement of the financial instrument. For example, if an increase in a significant unobservable valuation input would result in alower fair value measurement, a decrease in the significant unobservable valuation input would result in a higher fair value measurement.
(5) The impact of an increase in the significant unobservable valuation input on the fair value measurement for a derivative assumes Nomura
is long risk 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.
(6) Consideration of the interrelationships between significant unobservable valuation inputs is only relevant where more than one
unobservable valuation input is used to determine the fair value measurement of the financial instrument.
(7) Valuation techniques and unobservable valuation inputs in respect of equity securities reported within Other assets in the consolidatedbalance sheets.

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 of dividend yields varies as some companies do not pay any dividends, for
F-49

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
example due to a lack of profits or as a policy during a growth period, and hence have a zero dividend yield whileothers 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 thoseof 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 frompositive 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 of interest rates is due to interest rates in different countries/currencies
being at different levels. The range of volatilities is wide as volatilities of shorter-dated interest rate derivatives
are typically higher than those of longer-dated instruments. The range of correlations moves from positive tonegative 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 withpairs that have differing relationships through the range. All significant unobservable valuation 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 a very limited risk of default whereas
at the high end of the range, underlying reference names have a much greater risk of default. The range ofrecovery rates varies primarily due to the seniority of the underlying exposure with senior exposures having ahigher 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 positivesince 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 becomesless 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 and others being at levels that whilestill 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 such as emerging market currencies. The range of correlations moves frompositive 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 areyields, prepayment rates, default probabilities, loss severities, volatilities and correlations. The range ofvolatilities is wide as the volatilities of shorter-dated instruments are typically higher than those in longer-dated
instruments. The range of correlations moves from positive to negative because the movement of some pairs isvery 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 therange.

F-50

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 theyears ended March 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 alsomeasured using both observable and unobservable valuation inputs. Fair value changes presented below,
therefore, reflect realized and unrealized gains and losses resulting from movements in both observable andunobservable valuation inputs.
For the years ended March 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.

F-51

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Billions of yen
Year ended March 31, 2022

Balance
as ofApril 1,
2021

Assets:Trading assets and private equity and debt
investments
Equities . . . . . . . . . . . . . . . . . . . . . . . ¥ 16
Private equity and debt
investments . . . . . . . . . . . . . . . . . .
58
Japanese agency and municipal
securities . . . . . . . . . . . . . . . . . . . .
2Foreign government, agency andmunicipal securities . . . . . . . . . . .
12Bank and corporate debt securities
and loans for trading purposes . . . 135
Commercial mortgage-backed
securities (“CMBS”) . . . . . . . . . . .
8Residential mortgage-backed
securities (“RMBS”) . . . . . . . . . . .
6
Real estate-backed securities . . . . . . 106
Collateralized debt obligations(“CDOs”) and other . . . . . . . . . . .
23
Investment trust funds and other . . .
0Total gains(losses)
recognizedin netrevenue(1)¥Total gains(losses)
recognized in
BalanceotherForeign Transfers Transfers
as ofcomprehensive Purchases /Sales /
exchange
into
out of March 31,
incomeissues(2) redemptions(2) Settlements movements Level 3(4)(5) Level 3(5)
2022

3

¥—

2

—

0

¥

2

¥

(9)

¥—

14

(30)

—

0

1

—

(3)

¥

1

¥

—

1

0

—

13

(16)

—

207

0

—

0
4

3

¥

(2)

¥ 14

—

(13)

32

—

—

—

2

—

0

2

(2)

10

(194)

—

16

89

(30)

220

0

(1)

—

0

—

0

7

—
—

5
370

(4)
(395)

—
—

1
10

0
—

—
(16)

8
79

(4)
0

—
—

96
16

(89)
(16)

—
—

1
0

—
0

(1)
—

26
0

Total trading assets and private equity
and debt investments . . . . . . . . . . . . . .

366

3

—

723

(754)

—

30

94

(64)

398

Derivatives, net(3)Equity contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . .

(41)
(43)
(38)
15

43
(7)
6
(1)

—
—
—
—

—
—
—
—

—
—
—
—

3
13
2
(4)

(1)
0
(2)
1

(31)
14
(2)
0

37
12
1
(1)

10
(11)
(33)
10

Total derivatives, net . . . . . . . . . . . . . . . .

(107)

41

—

—

—

14

(2)

(19)

49

(24)

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 259

¥ 44

¥—

¥723

¥(754)

¥ 14

¥ 28

¥ 75

¥ (15)¥374

Loans and receivables . . . . . . . . . . . . . . . . ¥ 104
Collateralized agreements . . . . . . . . . . . .
18
Other assets . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . 185

¥ 18
(1)

¥—
—

¥ 95
2

¥ (89)
(5)

¥—
—

¥ 16
2

¥ 73
—

¥ (12)—¥205
16

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 566

¥ 59

¥

¥

0

¥—

1

0

—

(2)

0

2

(1)

—

14

0

(1)

197

0

¥822

¥(849)

¥ 14

¥ 60

¥148

¥ (28)

¥792

¥

¥

0

¥—

¥

0

¥—

¥

¥

0

(1)

—

0

—

Liabilities:
Trading liabilities
Equities . . . . . . . . . . . . . . . . . . . . . . . ¥Foreign government, agency andmunicipal securities . . . . . . . . . . .
Bank and corporate debt
securities . . . . . . . . . . . . . . . . . . . .
Collateralized debt obligations(“CDOs”) and other . . . . . . . . . . .
Investment trust funds and other . . .

5

0

—

5

(6)

—

(1)

1
0

0
0

—
—

2
0

(3)
0

—
—

0
0

Total trading liabilities . . . . . . . . . . . . . . . ¥

7

0

¥—

¥

7

¥ (10)¥—¥ (1)Short-term borrowings . . . . . . . . . . . . . . .
Payables and deposits . . . . . . . . . . . . . . . .
Collateralized financing . . . . . . . . . . . . . .
Long-term borrowings . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . .

103
1
1
547
35

(8)
0
—
(6)
(26)

0
0
—
2
—

152
2
—
487
1

(136)
—
—
(409)
(36)

—
—
—
—
—

1
—
—
1
6

15
7
—
41
0

(85)
(2)
(1)
(192)
0

58
8
—
479
32

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 694¥ (40)¥¥649¥(591)

¥—

7

¥ 71

¥(288)

¥580

0

¥

2

F-52

0

¥

0

—

0

8

(8)

3

0

—
—

0
0

—
¥

0

8

¥

(8)

¥

3

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Billions of yen
Year ended March 31, 2023

Balance
as ofApril 1,
2022

Assets:Trading assets and private equity and debt
investments
Equities . . . . . . . . . . . . . . . . . . . . . . . ¥ 14
Private equity and debt
investments . . . . . . . . . . . . . . . . . .
32
Japanese agency and municipal
securities . . . . . . . . . . . . . . . . . . . .
2Foreign government, agency andmunicipal securities . . . . . . . . . . .
10Bank and corporate debt securities
and loans for trading purposes . . . 220
Commercial mortgage-backed
securities (“CMBS”) . . . . . . . . . . .
7
Residential mortgage-backed
securities (“RMBS”) . . . . . . . . . . .
8Real estate-backed securities . . . . . .
79
Collateralized debt obligations(“CDOs”) and other . . . . . . . . . . .
26
Investment trust funds and other . . .
0Total gains(losses)
recognizedin netrevenue(1)Total gains(losses)
recognized in
BalanceotherForeign Transfers Transfers
as ofcomprehensive Purchases /Sales /
exchange
into
out of March 31,
incomeissues(2) redemptions(2) Settlements movements Level 3(4)(5) Level 3(5)
2023

¥ (2)

¥—

¥ 11

¥ (13)

¥—

11

—

27

(18)

—

0

—

0

0

—

0

—

15

(17)

(3)

—

273

0

—

(1)
(10)

¥

1

¥

1

¥

(8)

¥

4

0

—

—

52

—

—

—

2

—

0

1

(1)

8

(266)

—

13

100

(79)

258

0

0

—

—

0

(7)

0

—
—

3
160

(12)
(141)

—
—

0
7

10
—

0
—

8
95

(6)
0

—
—

69
64

(69)
(62)

—
—

2
0

10
0

(4)
—

28
2

Total trading assets and private equity
and debt investments . . . . . . . . . . . . . .

398

(11)

—

622

(598)

—

23

122

(99)

457

Derivatives, net(3)Equity contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . .

10
(11)
(33)
10

(4)
(6)
24
2

—
—
—
—

—
—
—
—

—
—
—
—

(23)
14
(5)
5

(4)
1
(3)
2

11
9
0
0

16
4
(15)
0

6
11
(32)
19

Total derivatives, net . . . . . . . . . . . . . . . .

(24)

16

—

—

—

(9)

(4)

20

5

4

5

¥—

¥622

¥(598)

¥ (9)

¥ 19

¥142

¥ (94)¥461

Loans and receivables . . . . . . . . . . . . . . . . ¥205
Collateralized agreements . . . . . . . . . . . .
16
Other assets . . . . . . . . . . . . . . . . . . . . . . . .
Non-trading debt securities . . . . . . . . —Other . . . . . . . . . . . . . . . . . . . . . . . . . 197

¥ 21
0

¥—
—

¥ 85
—

¥(123)
—

¥—
—

¥ 12
1

¥ 65
—

¥ (74)
—

¥191
17

0
(12)

—
0

0
10

—
(14)

—
—

1
14

2
1

—
—

3
196

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥792

¥ 14

¥

0

¥717

¥(735)

¥ (9)

¥ 47

¥210

¥ (168)

¥868

¥ (1)

¥—

¥

¥

(2)

¥—

¥

0

¥

¥ —

¥

0

—

—

—

—

0

—

0

—

2

(6)

—

0

7

—
0

—
—

1
0

(1)
0

—
—

0
0

—
—

3

¥ (1)

¥—

(9)

¥—

¥

0

¥

58
8
479
32

(4)
1
4
16

0
0
7

43
17
238
5

(32)
0
(152)
(2)

—
—
—
—

0
—
2
3

10
8
114
0

(53)
(15)
(177)
(1)

30
17
493
21

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥580

¥ 16

7

¥306

¥(195)

¥—

5

¥141

¥(249)¥565

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥374

Liabilities:
Trading liabilities
Equities . . . . . . . . . . . . . . . . . . . . . . . ¥ 0
Foreign government, agency andmunicipal securities . . . . . . . . . . .
0Bank and corporate debt
securities . . . . . . . . . . . . . . . . . . . .
3
Collateralized debt obligations(“CDOs”) and other . . . . . . . . . . .
0Investment trust funds and other . . .
0Total trading liabilities . . . . . . . . . . . . . . . . . . . ¥Short-term borrowings . . . . . . . . . . . . . . .
Payables and deposits . . . . . . . . . . . . . . . .
Long-term borrowings . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . .

¥

—
¥

¥

0

3

¥

¥

2

9

¥

1

—

0

(3)

3

—
—

—
0

(3)

¥

4

(1) 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.
(2) Amounts reported in Purchases / issues include increases in trading liabilities while Sales / redemptions include decreases in trading
liabilities.

F-53

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(3) Derivatives which contain multiple types of risk are classified based on the primary risk type of the instrument.
(4) Amounts of gains and losses on these transfers which were recognized in the period when the Transfers into Level 3 occurred were notsignificant for the years ended March 31, 2022 and March 31, 2023.
(5) 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.

Unrealized gains and losses recognized for Level 3 financial instruments
The following table presents the amounts of unrealized gains (losses) for the years ended March 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
March 312022
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 other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

2
1
0
0
(2)
0
0
1
(7)
0

¥

(2)
9
0
(1)
13
0
0
2
(6)
0

Total trading assets and private equity and debt investments . . . . . . . . . . . . . . . . .

(5)

15

Derivatives, net(2)Equity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

46
0
5
(13)

7
(8)
1
0

Total derivatives, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38

0Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 33

¥ 15

Loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateralized agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets
Non-Trading debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16
0

14
0

—
(2)

0
(7)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 47

¥ 22

F-54

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Billions of yen
March 312022
2023
Unrealized gains / (losses)(1)Liabilities:
Trading liabilities
Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign government, agency and municipal securities . . . . . . . . . . . . . . . . . .
Bank and corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collateralized debt obligations (“CDOs”) and other . . . . . . . . . . . . . . . . . . .

¥ 0
0
0
0

¥

Total trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 0¥

Short-term borrowings(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables and deposits(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2
0
18
(7)

(3)
1
22
0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥13

¥ 20

0
0
0
—
0

(1) 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.
(2) Derivatives which contain multiple types of risk are classified based on the primary risk type of the
instrument.
(3) Includes unrealized gains and losses of ¥5 billion and ¥7 billion for the years ended March 31, 2022 and2023 recognized in Other comprehensive income (loss) for recurring Level 3 fair value measurements heldat the end of the reporting period.
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 in nature and which do not have readily determinable fair values. For certainof these investments, Nomura uses NAV per share as the basis for valuation as a practical expedient. Some ofthese investments are redeemable at different amounts from NAV per share.

F-55

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present information on these investments where NAV per share is calculated ordisclosed as of March 31, 2022 and 2023. Investments are presented by major category relevant to the nature of
Nomura’s business and risks.

Fair
value

Unfundedcommitments(1)Hedge funds . . . . . . . . . . . . . . . . . . . . . . . . .
Venture capital funds . . . . . . . . . . . . . . . . . .
Private equity funds . . . . . . . . . . . . . . . . . . .
Real estate funds . . . . . . . . . . . . . . . . . . . . .

¥

12
10
22
4

¥

1
10
19
1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

48

¥

31

Fair
value

Unfundedcommitments(1)Hedge funds . . . . . . . . . . . . . . . . . . . . . . . . .
Venture capital funds . . . . . . . . . . . . . . . . . .
Private equity funds . . . . . . . . . . . . . . . . . . .
Real estate funds . . . . . . . . . . . . . . . . . . . . .

¥

12
11
24
3

¥

1
9
10
1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

50

¥

21

Billions of yen
March 31, 2022
Redemption frequency(if currently eligible)(2)Redemption notice(3)Monthly———

Same day-30 days———

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

Same day-30 days———

(1) The contractual amount of any unfunded commitments Nomura is required to make to the entities in which
the investment is held.
(2) The range in frequency with which Nomura is permitted to redeem investments.
(3) 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 theseinvestments are determined using NAV per share. 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 determinedusing 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 theseinvestments are determined using NAV per share. Redemption is restricted for most of these investments. The
F-56

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
redemption period is unknown for certain suspended or liquidating funds. Some of 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 these investments contain restrictions against
transfers of the investments to third parties.
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 fairvalue 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’s fair value are recognized throughearnings. Election of the fair value option is generally irrevocable unless an event occurs that gives rise to a newbasis of accounting for that instrument.
The financial assets and financial liabilities primarily elected for the fair value option by Nomura, and thereasons for the election, are as follows:•

Equity method investments reported within Trading assets and private equity and debt investments andOther assets held for capital appreciation or current income purposes which Nomura generally has anintention to exit rather than hold indefinitely. Nomura elects the fair 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 and loan 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 throughearnings 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 andCollateralized 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 in measurement 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 Longterm borrowings. Nomura elects the fair value option for those structured notes primarily to mitigate thevolatility through earnings caused by differences in the measurement basis for structured notes and thederivatives 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 fairvalue option for those structured deposits primarily to mitigate the volatility through earnings caused bydifferences in the measurement basis for structured deposits and the derivatives Nomura uses to risk
manage those positions.

•

Financial liabilities reported within Long-term borrowings recognized in transactions which areaccounted for as secured financing transactions under ASC 860. Nomura elects the fair value option for
F-57

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
these financial liabilities to mitigate volatility through earnings that otherwise would arise had thiselection not been made. Even though Nomura usually has little or no continuing economic exposure to
the transferred financial assets, they remain on the consolidated balance sheets and continue to be
carried at fair value, with changes in fair value 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 arerecognized within Interest and dividends, Interest expense or Revenue—Net gain on trading.
The following table presents gains (losses) due to changes in fair value for financial instruments carried atfair value using the fair value option for the years ended March 31, 2021, 2022 and 2023.
Billions of yen
Year ended March 31
2021
2022
2023
Gains/(Losses)(1)

Assets:Trading assets and private equity and debt investments(2)Trading assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 2
Private equity and debt investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0Loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Collateralized agreements(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Other assets(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 65¥

1 ¥ (1)
6
2
39
35
(1)
0
(3) (12)

¥ 42

¥ 24

Liabilities:
Short-term borrowings(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ (83) ¥ 60
Payables and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
4
Collateralized financing(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
93Long-term borrowings(4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (194) 275
Other liabilities(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
4

¥208
7
(5)
298
7

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(262) ¥346

¥515(1) Includes gains and losses reported primarily within Revenue—Net gain on trading and Revenue—Other inthe consolidated statements of income.
(2) Includes equity investments that would have been accounted for under the equity method had Nomura notchosen to elect the fair value option.
(3) Includes reverse repurchase and repurchase agreements.
(4) Includes structured notes and other financial liabilities.
(5) Includes secured financing transactions arising from transfers of financial assets which did not meet thecriteria for sales accounting.
(6) Includes unfunded written loan commitments.

F-58

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of March 31, 2022 and 2023, Nomura held an economic interest of 39.21% and 39.32% in American
Century Companies, Inc., respectively. The investment is carried at fair value on a recurring basis throughelection of the fair value option and is reported within Other assets – Other in the consolidated balance sheets.
For the years ended March 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 an increase in the estimatedfair value of receivables recognized for claims in connection with the U.S. Prime Brokerage Event elected to bemeasured at fair value. Changes in gains and losses attributable to instrument-specific credit risk from other loans
and receivables were not significant.
For the years ended March 31, 2023, 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 the claims with
the U.S. Prime Brokerage Event elected to be measured at fair value. Changes in gains and losses attributable to
instrument-specific credit risk for other loans and receivables were not significant. See Note 20 “Segment andgeographic information” for further information on this recovery of the claims.
Nomura calculates the impact of changes in its own creditworthiness on certain financial liabilities forwhich the fair value option is elected by revaluation techniques using a rate which incorporates observablechanges in its credit spread.
The following table presents changes in the valuation adjustment for Nomura’s own creditworthinessrecognized in the consolidated statements of comprehensive income during the years ended March 31, 2022 and2023 in respect of financial liabilities elected for the fair value option recognized in other comprehensive income
during the years. 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 years
ended March 31, 2022 and 2023 and the cumulative amounts recognized in accumulated other comprehensive
income as of March 31, 2022 and 2023.
Billions of yen
Year ended March 31
2022
2023

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

¥60
1
49

¥ 95
0
145

As of March 31, 2022, the fair value of the aggregate unpaid principal balance (which is contractuallyprincipally protected) of Loans and receivables for which the fair value option was elected was ¥267 billion lessthan the principal balance of such Loans and receivables. A significant portion of the principal balance relates toreceivables recognized for claims in connection with the U.S. prime brokerage event in March 2021. The unpaid
principal balance of Loans and receivables for which the fair value option was elected that were 90 days or morepast due was ¥278 billion. The fair value of the aggregate unpaid principal balance (which is contractuallyprincipally protected) of Long-term borrowings for which the fair value option was elected was ¥212 billion lessthan the principal balance of such Long-term borrowings.
As of March 31, 2023, the fair value of the aggregate unpaid principal balance (which is contractuallyprincipally protected) of Loans and receivables for which the fair value option was elected was ¥45 billion lessthan the principal balance of such Loans and receivables. There were no Loans and receivables for which the fairvalue 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 the principal balance of such Long-term borrowings.
F-59

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Investment by Investment companies
Nomura carries all of investments by investment companies under ASC 946 “Financial Services—
Investment Companies” (“ASC 946”) at fair value, with changes in fair value recognized through theconsolidated 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 by changes 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 ascollateral, represented 16% of total assets as of March 31, 2022 and 16% as of March 31, 2023.
The following tables present geographic allocations of Nomura’s trading assets related to government,
agency and municipal securities as of March 31, 2022 and 2023. See Note 3 “Derivative instruments and hedging
activities” for further information regarding the concentration of credit risk for derivatives.

Japan

Government, agency and municipal securities . . . . . . . . . . . . . . . .

¥1,916Japan

Government, agency and municipal securities . . . . . . . . . . . . . . . .

¥1,786

Billions of yen
March 31, 2022
U.S.
EU & U.K. Other¥2,368¥721¥7,156

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

Total(1)¥2,561¥2,151

Total(1)¥2,309¥925¥7,581(1) Other than above, there were ¥331 billion and ¥324 billion of government, agency and municipal securities
reported within Other assets—Non-trading debt securities in the consolidated balance sheets as ofMarch 31, 2022 and 2023, respectively. These securities are primarily Japanese government, agency andmunicipal 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 typicallycarried 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 and contain minimal credit risk. These financial instruments include financial
assets reported within Cash and cash equivalents, Time deposits, Deposits with stock exchanges and other
segregated cash, Receivables from customers, Receivables from other than customers, Securities purchased
under agreements to resell and Securities borrowed and financial liabilities reported within Short-termborrowings, Payables to customers, Payables to other than customers, Deposits received at banks, Securities
sold under agreements to repurchase, Securities loaned and Other secured borrowings in the consolidatedbalance sheets.
F-60

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The fair values of other financial instruments which are longer-term in nature or may contain more thanminimal credit risk may be different to their carrying value. Financial assets of this type primarily include certain
loans which are reported within Loans receivable while financial liabilities primarily include long-termborrowings which are reported within Long-term borrowings.
The following tables present carrying values, fair values and classification within the fair value hierarchy forcertain classes of financial instrument not carried at fair value on a recurring basis in the consolidated balance
sheets as of March 31, 2022 and 2023.

Carrying
value

Billions of yen
March 31, 2022(1)Fair value by level
Fair
value
Level 1
Level 2
Level 3

Assets:Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 3,316 ¥ 3,316 ¥3,316 ¥ — ¥ —Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
321
321
—
321
—
Deposits with stock exchanges and other segregated cash . . .
427
427
—
427
—
Loans receivable(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,515
3,515
—
2,461 1,054
Securities purchased under agreements to resell . . . . . . . . . . 11,879 11,879—
11,86316
Securities borrowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,997
4,994
—
4,994
—
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥24,455 ¥24,452 ¥3,316 ¥20,066 ¥1,070
Liabilities:
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,050 ¥ 1,050 ¥ — ¥ 993 ¥ 57
Deposits received at banks . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,761
1,761
—
1,752
9
Securities sold under agreements to repurchase . . . . . . . . . . . 12,575 12,575—
12,5750
Securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,567
1,568
—
1,568
—
Other secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . .
396
396
—
396
—
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,258
9,236
23
8,688
525
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥26,607 ¥26,586 ¥F-61

23 ¥25,972 ¥ 591

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Carrying
value

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

Assets:Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 3,821 ¥ 3,821 ¥3,821 ¥ — ¥ —Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
409
409
—
409
—
Deposits with stock exchanges and other segregated cash . . .
291
291
—
291
—
Loans receivable(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,010
4,009
—
2,855 1,154
Securities purchased under agreements to resell . . . . . . . . . . 13,834 13,834—
13,817
17
Securities borrowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,283
4,283
—
4,283
—
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥26,648 ¥26,647 ¥3,821 ¥21,655 ¥1,171
Liabilities:
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,009 ¥ 1,009 ¥ — ¥ 978 ¥ 31
Deposits received at banks . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,138
2,138
—
2,121
17
Securities sold under agreements to repurchase . . . . . . . . . . . 14,218 14,218—
14,218—
Securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,557
1,557
—
1,557
—
Other secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . .
334
334
—
334
—
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,399 10,350
27
9,795
528
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥29,655 ¥29,606 ¥27 ¥29,003 ¥ 576(1) Includes financial instruments which are carried at fair value on a recurring basis.
(2) Carrying values are shown after deducting relevant allowances for credit losses.
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 otherfinancial and non-financial assets and liabilities at fair value on a nonrecurring basis, where the primarymeasurement basis is not fair value. Fair value is only used in specific circumstances after initial recognition suchas to measure impairment.
As of March 31, 2022, there were no significant amount of assets or liabilities which were measured at fairvalue on a nonrecurring basis.
As of March 31, 2023, there were no significant amount of assets or liabilities which were measured at fairvalue on a nonrecurring basis.
3. Derivative instruments and hedging activities:
Nomura uses a variety of derivatives, including futures, forwards, options and swaps, for both trading andnon-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 suchas commitments to swap interest payment streams, exchange currencies or purchase or sell securities and otherfinancial instruments on specific terms at specific future dates.
F-62

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Nomura maintains active trading positions in a variety of derivatives. Most of Nomura’s trading activities
are client oriented. Nomura utilizes a variety 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 an inventory 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 withsecurities 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 theexchange of two currencies at a rate agreed by the contracting parties. Risks arise from the possible inability ofcounterparties 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 negotiatedbetween 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 afinancial instrument at a specified price within a specified period of time or on a specified date from or to thewriter of the option. The writer of options receives premiums and bears the risk of unfavorable changes in themarket 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 andforeign exchange exposures. Entering into swap agreements may involve the risk of credit losses in the event ofcounterparty default.
To the extent these derivatives are economically hedging financial instruments or securities positions of
Nomura, the overall risk of loss may be fully or partly mitigated by the hedged position.
Nomura seeks to minimize its exposure to market risk arising from its use of these derivatives throughvarious 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.
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 of certain financial liabilities, to manage foreign exchange risk of certain
foreign currency denominated debt securities, to manage net investment exposure to fluctuations in foreignexchange rates arising from certain foreign operations and to mitigate equity price risk arising from certain stockbased compensation awards given to employees. Credit risk associated with derivatives utilized for non-trading
purposes is controlled and managed in the same 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 specificfinancial liabilities and foreign currency risk arising from specific foreign currency denominated debt securities.
F-63

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 atinception and throughout the life of the hedging relationship. Changes in fair value of the hedging derivatives arereported 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 theeffectiveness of net investment hedges, the effective portion of the change in fair value of the hedging derivativeis determined by changes in spot exchange rates. Changes in fair value of the hedging derivatives attributable tochanges 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 othermovements 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 ofMarch 31, 2022 and 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 with theterms of the instruments and any collateral or other security Nomura held in relation to those instruments proved
to be of no value.

Gross fair value ofderivative assets

Financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . .

¥15,667

Gross fair value ofderivative assets

Financial institutions . . . . . . . . . . . . . . . . . . . . . . . . . .

¥15,296

F-64

Billions of yen
March 31, 2022
Impact ofmaster netting Impact ofagreements
collateral¥(13,193)¥(1,669)

Billions of yen
March 31, 2023
Impact ofmaster netting Impact ofagreements
collateral¥(12,885)¥(1,855)

Net exposure tocredit risk

¥805

Net exposure tocredit risk

¥556

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Derivative activities
The following tables quantify of Nomura’s derivative positions as of March 31, 2022 and 2023 through a
disclosure of notional amounts, 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 table based on the
primary risk type of the instrument. Changes in the fair value of derivatives are recognized either through theconsolidated statements of income or the consolidated statements of comprehensive income depending on the
purpose for which the derivatives are used.

Total notional(1)Billions of yen
March 31, 2022
Derivative
Derivative
assetsliabilities
Fair value Fair value(1)¥34,5262,769,546
37,572
314,763300¥

974
11,938443
4,804
1¥ 1,457
10,865514
4,814
1¥3,156,707¥18,160¥17,651

¥

2,166
145

¥

—
2

¥

88
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

2,311

¥

2

¥

88

Total derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,159,018¥18,162

Total notional(1)Billions of yen
March 31, 2023
Derivative
Derivative
assetsliabilities
Fair value Fair value(1)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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Derivatives used for trading and non-trading purposes(2):Equity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥17,739¥

39,203
3,423,357
35,007
337,616257¥ 1,065
12,799276
4,219
3¥ 1,610
12,065358
4,120
3¥3,835,440¥18,362¥18,156

¥

2,828
164

¥

0
1

¥

180
0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

2,992

¥

1

¥

180

Total derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,838,432

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivatives designated as formal fair value or net investment accounting
hedges:Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-65¥18,363¥18,336

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(1) Includes the amount of embedded derivatives bifurcated in accordance with ASC 815.
(2) The amounts reported include derivatives used for non-trading purposes other than those designated as fairvalue or net investment accounting hedges. These amounts have not been separately presented since suchamounts were not significant as of March 31, 2022 and March 31, 2023.
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 andgovernment 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 of suchcollateral 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 underindustry 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 governedby that agreement to be terminated or accelerated and settled through a single payment in a single currency in theevent of a default of the counterparty (“close-out 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 theenforceability 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 master netting agreement. Even when derivatives are documented under suchagreements, Nomura may not have obtained, or may not be able to obtain evidence to determine with sufficientcertainty 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, orwhere 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 arisingfrom transactions with a specific counterparty is hedged, how counterparty credit exposures are calculated andapplied to credit limits and the extent and nature of collateral requirements from the counterparty.
Derivative assets and liabilities with the same counterparty and the related cash collateral receivables andpayables documented under an enforceable master netting agreement are presented on a net basis on the
consolidated balance sheets where the specific criteria defined by 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 as of March 31, 2022 and 2023 by type of derivative contract, and additionalamounts permitted to be offset legally by Nomura under enforceable 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. Derivativetransactions which are not documented under a master netting agreement or are documented under a master

F-66

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
netting agreement for which Nomura does not have sufficient evidence of enforceability of close-out andoffsetting rights are not offset in the following table.

Equity contracts
OTC settled bilaterally . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange-traded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts
OTC settled bilaterally . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTC centrally-cleared . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange-traded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit contracts
OTC settled bilaterally . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTC centrally-cleared . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange-traded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange contracts
OTC settled bilaterally . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity contracts
OTC settled bilaterally . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange-traded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Billions of yen
March 31, 2022
Derivative Derivative
assetsliabilities(1)Billions of yen
March 31, 2023
Derivative Derivative
assetsliabilities(1)

¥

¥

709
265

¥ 1,054
403

649
416

¥

880
730

9,486
2,332
120

8,584
2,309
60

11,535
1,191
73

10,976
1,226
45

208
223
12

276
224
14

182
86
8

252
92
14

4,806

4,814

4,220

4,120

1
0

1
0

2
1

—

3

Total gross derivative balances(2) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Amounts offset in the consolidated balance sheets(3) . . . . . . .

¥ 18,162 ¥ 17,739 ¥ 18,363 ¥ 18,338(16,608) (16,079) (16,943) (16,329)

Total net amounts reported on the face of the consolidated balance
sheets(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,554

Less: Additional amounts not offset in the consolidated balance
sheets(5)Financial instruments and non-cash collateral . . . . . . . . . . . . .

¥Net amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,122¥ 1,660(432) ¥

¥ 1,420(134) ¥

¥ 1,526¥ 2,009(394) ¥

¥ 1,026(315)¥ 1,694(1) Includes the amount of embedded derivatives bifurcated in accordance with ASC 815.
(2) Includes all gross derivative asset and liability balances irrespective of whether they are transacted under amaster netting agreement or whether Nomura has obtained sufficient evidence of enforceability of themaster netting agreement. As of March 31, 2022, the gross balance of derivative assets and derivative
liabilities which are not documented under master netting agreements or are documented under masternetting agreements for which Nomura has not yet obtained sufficient evidence of enforceability was¥458 billion and ¥671 billion, respectively. As of March 31, 2023, the gross balance of such derivative
assets and derivative liabilities was ¥479 billion and ¥753 billion, respectively.
(3) 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, 2022,
Nomura offset a total of ¥1,431 billion of cash collateral receivables against net derivative liabilities and¥1,960 billion of cash collateral payables against net derivative assets. 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.
F-67

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(4) 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-term borrowings or Long-term borrowings
depending on the maturity of the underlying host contract.
(5) Represents amounts which are not permitted to be offset on the consolidated balance sheets in accordancewith ASC 210-20 and ASC 815 but which provide Nomura with a legally enforceable right of offset in theevent of counterparty default. Amounts relating to derivative and collateral agreements where Nomura has
not yet obtained sufficient evidence of enforceability of such offsetting rights are excluded. As of March 31,
2022, a total of ¥359 billion of cash collateral receivables and ¥652 billion of cash collateral payables,
including amounts reported in the table, have not been offset against net derivatives. 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 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, arecarried at fair value with changes in fair value recognized through the consolidated statements of income within
Revenue—Net gain on trading.
The following table presents amounts included in the consolidated statements of income for the years ended
March 31, 2021, 2022 and 2023 related to derivatives used for trading and non-trading purposes by types ofunderlying derivative contract. Derivatives which contain multiple types of risk are classified in the table basedon the primary risk type of instrument.
Billions of yen
Year ended March 31
2021
2022
2023

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

¥

¥

26 ¥
254
(90)
(11)
50
229 ¥

(36) ¥
198
(118)
27
87
158 ¥

88
76
45
434
(4)
639

(1) Includes net gains (losses) on derivatives used for non-trading purposes which are not designated as fairvalue or net investment hedges. For the year ended March 31, 2021, net losses for these non-trading
derivatives were ¥3 billion. For the year ended March 31, 2022 and 2023, net gains (losses) for these
non-trading derivatives were not significant.
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, thecumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items and the
F-68

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
cumulative amount of fair value hedging adjustment remaining for the liabilities which hedge accounting has
been discontinued as of March 31, 2022 and 2023.
Balance sheet line
item in which thehedged item isincluded:

Carrying amount of the hedged
liabilities
March 31, 2022 March 31, 2023

Billions of yen
Cumulative gains of fair value
hedging adjustment included in
the carrying amount of thehedged liabilities
March 31, 2022 March 31, 2023

Cumulative amount of fair value
hedging adjustment remaining
for the liabilities which hedge
accounting has been discontinued
March 31, 2022 March 31, 2023

Long-term
borrowings . . . .

¥2,075¥2,659

¥90

¥168

¥0

¥2

Total . . . . . . . . . . .

¥2,075¥2,659

¥90

¥168

¥0

¥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 years ended
March 31, 2021, 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
Year ended March 31
2021
2022
2023

Derivatives designated as hedging instruments:
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

29

¥

85

¥

92

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

29

¥

85

¥

92

Billions of yen
Year ended March 31
2021
2022
2023

Hedged items :Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(29) ¥(85) ¥(92)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(29) ¥(85) ¥(92)

Net investment hedges
Nomura designates certain foreign currency derivatives, as hedges of net investments in certain foreign
operations with significant foreign exchange risks and applies hedge accounting to these instruments.
Accordingly, foreign exchange gains and losses arising from the derivatives and non-derivative financial
instruments designated as hedges, except for the portion excluded from effectiveness assessment, are recognizedthrough the consolidated statements of comprehensive income within Other comprehensive income (loss)—
Change in cumulative translation adjustments. This is offset by the foreign exchange adjustments arising fromconsolidation of the relevant foreign subsidiaries.

F-69

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents gains (losses) from derivatives designated as net investment hedges included in
the consolidated statements of comprehensive income for the years ended March 31, 2021, 2022 and 2023.
Billions of yen
Year ended March 31
2021
2022
2023

Hedging instruments:
Foreign exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

(7) ¥

7

¥

3

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

(7) ¥

7

¥

3

The portion of gains (losses) representing the amount excluded from the assessment of hedge effectivenessare recognized within Revenue—Net gain on trading and Revenue—Other in the consolidated statements ofincome. The amount of gains (losses) was not significant during the years ended March 31, 2021, 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 uponoccurrence 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, 2022 was ¥638 billion with related collateral pledged of ¥421 billion. In the event of aone-notch downgrade to Nomura’s long-term credit rating in effect as of March 31, 2022, the aggregate fair valueof assets that would have been required to be posted as additional collateral or that would have been needed tosettle the instruments immediately was approximately ¥1 billion.
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 aone-notch downgrade to Nomura’s long-term credit rating in effect as of March 31, 2023, the aggregate fair valueof assets that would have been required to be posted as additional collateral or that would have been needed tosettle the instruments immediately was approximately ¥11 billion.
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 agroup of entities that expose the seller of credit protection to potential loss from credit events specified in thecontract.
Written credit derivatives are instruments or embedded features where Nomura assumes third party credit
risk, either as guarantor in a guarantee-type contract, or as the party that provides credit protection in an optiontype 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 sellerof 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 wheresettlement of the derivative is based on the credit risk of a single reference entity or obligation. Nomura also
F-70

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
writes credit derivatives linked to the performance of credit default indices and issues other credit risk related
portfolio products.
Nomura would have to perform under a credit derivative contract if a credit event as defined in therespective 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 of default, 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 the contract.
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 oron 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 thecolumn titled “Purchased Credit Protection.” These amounts represent purchased credit protection with identicalunderlying 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 representationof the amount Nomura will actually pay under these contracts as there are other 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 theunderlying 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 is limited 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 beminimal in certain cases, this does reduce amounts paid on these contracts.

F-71

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present information about Nomura’s written credit derivatives and purchased credit
protection with identical underlying reference assets as of March 31, 2022 and 2023.

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

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

Billions of yen
March 31, 2022
Maximum potential payout/NotionalYears to maturity
Less than
1 to 33 to 5More than
1 yearyears
years
5 years

Carrying value(Asset) / Liability(1)

Total

¥ 19
(140)

¥ 7,708
10,015¥1,339
2,045

19

419

56

286

0

115

—

¥(102)¥18,257¥3,440¥2,915 ¥2,448
4,189
3,257

Notional
Purchased
creditprotection¥1,006524¥ 5,688
7,494

63

14

293

—

88

27

68

¥7,390¥5,856¥1,571¥13,543

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

Carrying value(Asset) / Liability(1)Total¥ (29)(47)¥ 8,121
6,839¥1,263
1,339

38

624

166

216

0

51

—

¥ (38)¥15,635¥2,768¥3,095 ¥2,579
2,601
2,284

Purchased
creditprotection¥1,184615¥ 5,708
3,886

210

32

341

—

37

14

51

¥5,912¥5,110¥1,845¥ 9,986(1) Carrying value amounts are shown on a gross basis prior to cash collateral or counterparty offsetting. Assetbalances represent positive fair value amounts caused by tightening of credit spreads of underlyings since
inception of the credit derivatives.

F-72

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present information about Nomura’s written credit derivatives by external credit ratingof the underlying asset. Credit ratings are based on S&P Global Ratings (“S&P”), or if not rated by S&P, basedon 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.
Billions of yen
March 31, 2022
Maximum potential payout/Notional
A
BBB
BB
Other(1)AAA

AA

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

¥192
105
—
—

¥1,485215——¥2,1643,369
28
61¥2,057
5,012
226
27

¥ 869
988
47
27

¥ 941
326
118
—

¥ 7,708
10,015419
115

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥297¥1,700¥5,622¥7,322¥1,931¥1,385¥18,257

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

Total

AAA

AA

Total

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

¥227
185
—
—

¥1,405180——¥2,3782,924
21—¥2,530
2,844
325
29

¥ 781
299
53
22

¥ 800
407
225
—

¥ 8,121
6,839
624
51

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥412¥1,585¥5,323¥5,728¥1,155¥1,432¥15,635(1) Other includes credit derivatives where the credit rating of the underlying reference asset is below
investment grade or where a credit rating is unavailable.
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 aseparate agreement entered contemporaneously with the same counterparty through which Nomura retains
substantially all of the exposure to the economic return on the transferred financial 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 notmet, the transfer and separate derivative are accounted for as a single collateralized financing transaction whichis reported within Long-term borrowing in the consolidated balance sheets.
Nomura entered into certain contemporaneous transactions involving the transfer of securities that are
accounted for as sales, where substantially all of the economic exposures to the transferred securities are retained

F-73

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
through total return swaps but does not retain control over the assets transferred. There were no new contracts
signed during the years ended March 31, 2023. The following table provides information about relevanttransactions outstanding as of March 31, 2022 and March 31, 2023.
Millions of yen
March 312022
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) . . . . . . . . .

¥
¥
¥
¥

69,53569,40563,994
5,319

¥
¥
¥
¥

69,53569,40559,199
10,119(1) 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, 2022 and March 31, 2023. Of which¥5,319 million and ¥10,119 million are included in interest rate contracts used for trading purpose as ofMarch 31, 2022 and March 31, 2023 respectively as disclosed in present Note 3 “Derivative instruments andhedging activities”.
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 years ended March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2021
2022
2023

Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥376,897 ¥332,344 ¥279,857
Fees from investment banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108,681
149,603113,208
Asset management and portfolio service fees . . . . . . . . . . . . . . . . . . . . . . . . . .
230,047
269,985
271,684
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44,23538,86343,190Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥759,860¥790,795¥707,939

Commissions represent revenue principally from trade execution, clearing services and distribution of fundunits provided by the Wholesale and Retail Divisions generated approximately equally across the divisions. The
following table shows a breakdown of Commissions for the years ended March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2021
2022
2023

Brokerage commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥262,286 ¥236,353 ¥190,778
Commissions for distribution of investment trust . . . . . . . . . . . . . . . . . . . . . . .
68,794
43,69530,268Other commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45,81752,29658,811
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥376,897¥332,344¥279,857

Fees from investment banking represent revenue from financial advisory, underwriting and distribution
primarily from the Wholesale Division, and to a lesser extent, the Retail Division. The following table shows thebreakdown of Fees from investment banking for the years ended March 31, 2021, 2022 and 2023.
F-74

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Millions of yen
Year ended March 31
2021
2022
2023

Equity underwriting and distribution fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 30,647 ¥ 33,113 ¥ 18,862
Debt underwriting and distribution fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,12029,812
21,145
Financial advisory fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37,76064,24053,946
Other fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,154
22,43819,255
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥108,681¥149,603¥113,208

Asset management and portfolio service fees represent revenue from asset management services primarily
from the Investment Management Division, and to a lesser extent, the Retail Division.
The following table shows the breakdown of Asset management and portfolio service fees for the years
ended March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2021
2022
2023

Asset management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥150,218 ¥171,056 ¥171,327
Administration fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63,21579,572
76,157
Custodial fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,614
19,357
24,200Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥230,047¥269,985¥271,684

The following table presents summary information regarding the key methodologies, assumptions andjudgments used in recognizing revenue for each of the primary types of service provided to customers, including
the nature of underlying performance obligations within each type of service and whether those performanceobligations are satisfied at a point in time or over a period of time. For performance obligations recognized overtime, 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 fund units

Key revenue recognition policies,
assumptions andjudgments

Overview of key services provided•

Buying and selling of securities
on behalf of customers•

Distribution of fund units•

Clearing of securities andderivatives on behalf ofcustomers

F-75•

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

•

Distribution fees arerecognized at a point in time
when the fund units have beensold to third party investors.

•

Commissions recognized net ofsoft dollar credits provided tocustomers where Nomura isacting as agent in providing
investment research andsimilar services to thecustomer.

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Type of service provided tocustomers

Financial advisory services

Key revenue recognition policies,
assumptions andjudgments

Overview of key services provided•

Provision of financial advice tocustomers in connection with a
specific forecasted transaction
or transactions such as mergers
and acquisitions•

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

F-76

•

Fees contingent on the successof an underlying transaction
are variable consideration
recognized when theunderlying transaction has
been completed since only atsuch point is it probable that asignificant reversal of revenue
will not occur.

•

Retainer and milestone fees arerecognized either over theperiod to which they relate orare deferred until
consummation of theunderlying transaction
depending on whether theunderlying performanceobligation is satisfied at a point
in time or over time.

•

Judgment is required to makethis determination with factors
influencing this determination
including, but not limited to,whether the fee is inconnection with an
engagement designed toachieve a specific transaction
or outcome for the customer(such as the purchase or sale ofa business), the nature andextent of benefit to be provided
to the customer prior to, and in
addition to such specifictransaction or outcome and thefee structure for theengagement.

•

Retainer and milestone fees
recognized over time arenormally recognized on astraight-line basis over the termof the contract based on time
elapsed.

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Type of service provided tocustomers

Underwriting and syndication
services

Asset management services

Key revenue recognition policies,
assumptions andjudgments

Overview of key services provided•

Underwriting of debt, equity
and other financial instrumentson behalf of customers•

Distributing
securities
behalf of issuers
Arranging loan financing forcustomers•

Syndicating loan financing on
behalf of customer

Management of funds,
investment trusts and otherinvestment vehicles•

Provision of investment
advisory services•

Provision of custodial andadministrative services tocustomers

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 astraight-line basis over the lifeof the facility based on time
elapsed.

•Underwriting and syndication
costs recognized either as a
reduction of revenue or on agross basis depending onwhether Nomura is acting as
principal or agent for suchamounts.

•

Management fees earned by
Nomura in connection withmanaging a fund, investment
trust or other vehicle generally
are recognized on a straightline basis based on time
elapsed.

•

Performance-based fees arevariable consideration
recognized when theperformance metric has been
determined since only at such
point is it probable that asignificant reversal of revenue
will not occur.

•

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

on

•

•

•

Where revenue is recognized at a point in time, payments of fees are typically received at the same time as
when the performance obligation is satisfied, or within several days or months after satisfying a performanceobligation. In relation to revenue recognized over time, payments of fees are typically settled monthly, quarterlyor semi-annually.

F-77

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The underlying contracts entered into by Nomura in connection with the services described above typicallydo 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
Customer contract balances
When Nomura or the customer performs in accordance with the terms of a customer contract, a contract
asset, customer contract receivable or contract liability is recognized in Nomura’s consolidated balance sheet.
A contract asset represents accrued revenue recognized by Nomura for completion or partially completionof a performance obligation, namely a right of Nomura to receive consideration for providing the service to thecustomer, which is conditional on factors or events other than the passage of time. A customer contract
receivable is an unconditional right of Nomura to receive consideration in exchange for services provided. Bothcontract 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 scopeof ASC 606. The amount of contract assets as of March 31, 2022 and 2023 was not significant.
Millions of yen
March 31, 2022 March 31, 2023

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

¥88,621
3,834¥

85,1005,226(1) Contract liabilities primarily rise from investment advisory services and are recognized over the term of thecontract based on time elapsed.
The balance of contract liabilities as of March 31, 2021 and 2022 were recognized as revenue for the year
ended March 31, 2022 and 2023, respectively. Nomura recognized ¥8,108 million of revenue from performanceobligations satisfied in previous periods for the year ended March 31, 2022. The balance of contract liabilities asof March 31, 2022 were recognized as revenue for the year ended March 31, 2023. Nomura recognized¥4,876 million of revenue from performance obligations satisfied in previous periods for the year ended
March 31, 2023.
Transaction price allocated to the remaining performance obligations
In the ordinary course of business, Nomura may enter into customer contracts where the performanceobligations are wholly or partially unsatisfied as of fiscal year ends. The total transaction prices allocated to theremaining unsatisfied performance obligations within these customer contracts were ¥1,350 million as ofMarch 31, 2022 and ¥1,189 million as of March 31, 2023. As permitted by ASC 606, Nomura has elected not todisclose information about remaining performance obligations that have an individual estimated contract periodof 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.
F-78

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Customer contract costs
As permitted by ASC 340 “Other Assets and Deferred Costs,” Nomura has elected to expense all costs toobtain customer contracts where such amounts would be otherwise expensed within one year or less. As a result,the amount of deferred costs to obtain or fulfill customer contracts as of March 31, 2022 and 2023 was not
significant.
5. Collateralized transactions:
Nomura enters into collateralized transactions, including reverse repurchase agreements, repurchaseagreements, securities borrowing transactions, securities lending transactions, other secured borrowings andsimilar transactions mainly to meet clients’ financing needs, finance trading inventory positions and obtainsecurities 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 repurchaseagreements, the clearing or membership agreements entered into by Nomura provide similar rights to Nomura in
the event of default of the relevant central clearing counterparty. 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.
Nomura may enter into reverse repurchase agreements, repurchase agreements, securities borrowing andsecurities lending transactions with certain types of counterparty and in certain jurisdictions which are notdocumented under a master netting agreement. Even when these transactions are documented under such masternetting agreements, Nomura may not have obtained, or may not be able to obtain, evidence to determine with
sufficient certainty 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 arecomplex, ambiguous or silent on the enforceability of such rights. This may include reverse repurchaseagreements, repurchase agreements, securities borrowing and securities lending transactions executed withcertain 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 arisingfrom transactions with a specific counterparty is hedged, how counterparty credit exposures are calculated andapplied to credit limits and the extent and nature of collateral requirements from the counterparty.
In all of these transactions, Nomura either receives or provides collateral, including Japanese andnon-Japanese government, agency, mortgage-backed, bank and corporate debt securities and equities. In mostcases, the party receiving the collateral is free to sell or repledge the securities received through repurchaseagreements, securities lending transactions or to cover short positions. In repurchase and reverse repurchaseagreements, the value of collateral 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, toensure that such transactions are adequately collateralized throughout the life of the transactions.

F-79

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 aroundmaturity of transactions, underlying systems on which collateral is settled, associated banking arrangements andlegal 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, 2022 and 2023, together with the extent to which master netting agreements entered intowith 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 masternetting agreement for which Nomura does not have sufficient evidence of enforceability are not offset in thefollowing tables.
Billions of yen
March 31, 2022
Assets
ReverseSecurities
repurchaseborrowing
agreements transactions

Liabilities
Securities
Repurchaselendingagreements transactions

Total gross balance(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Amounts offset in the consolidated balance sheets(2) . . . .

¥ 31,365(19,486)¥ 4,994—¥ 32,061(19,486)¥ 1,734—

Total net amounts of reported on the face of the consolidatedbalance sheets(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 11,879¥ 4,994¥ 12,575¥ 1,734

Less: Additional amounts not offset in the consolidatedbalance sheets(4)Financial instruments and non-cash collateral . . . . . . . . . .
Cash collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9,370)(8)(3,372)—(9,114)(12)(1,524)—

Net amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 2,501¥ 1,622¥ 3,449¥

210

Billions of yen
March 31, 2023
Assets
ReverseSecurities
repurchaseborrowing
agreements transactions

Liabilities
Securities
Repurchaselendingagreements transactions

Total gross balance(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Amounts offset in the consolidated balance sheets(2) . . . .

¥ 35,030(21,196)¥ 4,280—¥ 35,414(21,196)¥ 1,825—

Total net amounts of reported on the face of the consolidatedbalance sheets(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 13,834¥ 4,280¥ 14,218¥ 1,825

Less: Additional amounts not offset in the consolidatedbalance sheets(4)Financial instruments and non-cash collateral . . . . . . . . . .
Cash collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11,938)(14)(2,690)—(11,550)(1)(1,617)—

Net amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,882¥ 1,590¥ 2,667

¥

F-80

208

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(1) 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 fair value option. As of March 31,
2022, the gross balance of reverse repurchase agreements and repurchase agreements which were nottransacted under master netting agreements or are documented under master netting agreements for which
Nomura has not yet obtained sufficient evidence of enforceability amounted to ¥793 billion and¥2,453 billion, respectively. As of March 31, 2022, the gross balance of securities borrowing transactions
and securities lending transactions which were not transacted under master netting agreements or are
documented under master netting agreements for which Nomura has not yet obtained sufficient evidence ofenforceability amounted to ¥1,511 billion and ¥158 billion, respectively. As of March 31, 2023, the grossbalance of reverse repurchase agreements and repurchase agreements which were not transacted undermaster 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 lendingtransactions 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.
(2) Represent amounts offset through counterparty netting under master netting or similar agreements for which
Nomura has obtained sufficient evidence of enforceability in accordance with ASC 210-20. Amounts offset
include transactions carried at fair value through election of the fair value option.
(3) Reverse repurchase agreements and securities borrowing transactions are reported within Collateralized
agreements—Securities purchased under agreements to resell and Collateralized agreements—Securities
borrowed in the consolidated balance sheets, respectively. Repurchase agreements and securities lendingtransactions are reported within Collateralized financing—Securities sold under agreements to repurchase
and Collateralized financing—Securities loaned in the consolidated balance sheets, respectively. Amounts
reported under securities lending transactions also include transactions where Nomura lends securities andreceives securities that can be sold or pledged as collateral. Nomura recognizes the securities received at fairvalue 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.
(4) Represent amounts which are not permitted to be offset on the face of the balance sheet in accordance withASC 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 ofsuch offsetting rights are excluded.
For information on offsetting of derivatives, see Note 3 “ Derivative instruments and hedging activities”.

F-81

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Maturity analysis of repurchase agreements and securities lending transactions
The following table presents an analysis of the total carrying value of liabilities recognized in the
consolidated balance sheets for repurchase agreements and securities lending transactions by remaining
contractual maturity of the agreement as of March 31, 2022 and 2023. Amounts reported are shown prior tocounterparty netting in accordance with ASC 210-20.
Billions of yen
March 31, 2022
30 - 90
90 days days
1 yearOvernight
and open(1)Up to
30 days

Greaterthan 1 year

Total

Repurchase agreements . . . . . . . . . . . . . . . . . . . .
Securities lending transactions . . . . . . . . . . . . . .

¥12,266
992¥15,454 ¥2,220242
200¥1,611
277

¥510
23

¥32,061
1,734

Total gross recognized liabilities(2) . . . . . . . . . . .

¥13,258¥15,696¥2,420¥1,888¥533¥33,795

Overnight
and open(1)Up to
30 days

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

Total

Repurchase agreements . . . . . . . . . . . . . . . . . . . .
Securities lending transactions . . . . . . . . . . . . . .

¥14,017
1,002¥16,597243¥2,66355¥1,357
498

¥780
27

¥35,414
1,825

Total gross recognized liabilities(2) . . . . . . . . . . .

¥15,019¥16,840¥2,718¥1,855¥807¥37,239(1) Open transactions do not have an explicit contractual maturity date and are terminable on demand by
Nomura or the counterparty.
(2) Repurchase agreements and securities lending transactions are reported within Collateralized financing—
Securities sold under agreements to repurchase 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 theobligation to return those securities. The liability is reported within Other liabilities in the consolidatedbalance sheets. The total gross recognized liabilities reported for repurchase agreements and securities
lending transactions are consistent with the total gross balances reported in the offsetting disclosures above.

F-82

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Securities transferred in repurchase agreements and securities lending transactions
The following table presents an analysis of the total carrying value of liabilities recognized in the
consolidated balance sheets for repurchase agreements and securities lending transactions by class of securities
transferred by Nomura to counterparties as of March 31, 2022 and 2023. Amounts reported are shown prior tocounterparty netting in accordance with ASC 210-20.
Billions of yen
March 31, 2022
Securities
Repurchaselendingagreements transactions

Total

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 other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

384
879
26,436
2,322
1
1,846
157
36

¥1,508
1
17
175
—
—
—
33

¥ 1,892880
26,453
2,497
1
1,846
157
69

Total gross recognized liabilities(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥32,061¥1,734¥33,795

Billions of yen
March 31, 2023
Securities
Repurchaselendingagreements transactions

Total

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 other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

251
1,651
28,039
2,639
—
2,657
168
9

¥1,598
0
74
128
—
—
—
25

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

Total gross recognized liabilities(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥35,414¥1,825¥37,239(1) Includes ¥1,404 billion of U.S. government sponsored agency mortgage pass through securities andcollateralized mortgage obligations as of March 31, 2022. Includes ¥2,080 billion of U.S. government
sponsored agency mortgage pass through securities and collateralized mortgage obligations as of March 31,
2023.
(2) Repurchase agreements and securities lending transactions are reported within Collateralized financing—
Securities sold under agreements to repurchase 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 theobligation to return those securities. The liability is reported within Other liabilities in the consolidatedbalance sheets. The total gross recognized liabilities reported for repurchase agreements and securities
lending transactions are consistent with the total gross balances reported in the offsetting disclosures above.
F-83

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Collateral received by Nomura
The following table presents the fair value of securities received as collateral, securities borrowed withcollateral 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, 2022 and 2023.
Billions of yen
March 31
2022
2023

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

¥48,234¥53,85736,146

38,417

Collateral is generally used for repurchased agreements and other securities financing agreements, to covershort sales and to collateralize derivatives.
Assets pledged by Nomura
Nomura pledges owned securities and other financial assets to collateralize repurchase transactions, othersecured financings and derivative transactions. 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 as collateral, primarily to stock exchanges and clearing organizations, thesecured party does not have the right to sell or repledge them by type of asset as of March 31, 2022 and 2023.
Millions of yen
March 312022
2023

Trading assets:
Equities and convertible securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 368,235 ¥ 194,486
Government and government agency securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,178,011
1,017,843
Bank and corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27,89955,532
Residential mortgage-backed securities (“RMBS”) . . . . . . . . . . . . . . . . . . . . . . . .
868,183
2,527,124Collateralized debt obligations (“CDOs”) and other(1) . . . . . . . . . . . . . . . . . . . . . .
9,548
12,383
Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36,661
10,411¥2,488,537
Non-trading debt securities(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in and advances to affiliated companies(3) . . . . . . . . . . . . . . . . . . . . . . . . .

¥163,445
12,832¥3,817,779¥

106,319
14,023(1) Includes CLOs and ABS such as those secured on credit card loans, auto loans and student loans.
(2) Non-trading debt securities are primarily Japanese municipal securities issued by prefectures or ordinancedesignated city.
(3) Investments in and advances to affiliated companies comprise shares in Nomura Research Institute, Ltd.

F-84

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the carrying amount of financial and non-financial assets recognized in the
consolidated balance sheets, other than those disclosed above, which are subject to lien as of March 31, 2022 and2023.
Millions of yen
March 312022
2023

Loans and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 235,875 ¥ 354,508
Trading assets and private equity and debt investments . . . . . . . . . . . . . . . . . . . . . . . . .
1,416,279
1,397,669
Office buildings, land, equipment and facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,841
3,323
Non-trading debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,827
107,852
Investments in and advances to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
497
773¥1,660,322¥1,864,128

Assets in the above table were primarily pledged for secured borrowings, including other secured
borrowings, collateralized borrowings of consolidated VIEs, trading balances of secured borrowings, andderivative transactions. See Note 10 “Borrowings” for further information regarding trading balances of secured
borrowings.
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 involvements with these SPEs includes structuring SPEs, underwriting, distributing andselling debt instruments and beneficial interests issued by SPEs to investors. Nomura accounts for the transfer offinancial assets in accordance with ASC 860. This statement requires that Nomura accounts for the transfer offinancial assets as a sale when Nomura relinquishes control over the assets. ASC 860 deems control to berelinquished when the following conditions are met: (a) the assets have been isolated from the transferor (even inbankruptcy or other receivership), (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 in securitization or asset-backed financing activities,
the holders of its beneficial interests have the right to pledge or exchange the beneficial interests, and (c) thetransferor has not maintained effective control over the transferred assets. Where Nomura retains an interest in
the financial assets, including residual interests in the SPEs, any such interests are measured at fair value andreported within Trading assets in Nomura’s consolidated balance sheets, with the change in fair value reported
within Revenue-Net gain on trading. Fair value for retained interests in securitized financial assets is determinedby using observable prices; or in cases where observable prices are not available for certain retained interests,
Nomura estimates fair value generally based on the present value of expected future cash flows using its best
estimates of the key assumptions, including forecasted credit losses, prepayment rates, forward yield curves anddiscount rates commensurate with the risks involved. Nomura may also enter into derivative transactions inrelation to the assets transferred to an SPE.
As noted above, Nomura may have continuing involvement with SPEs to which Nomura transferred assets.
For the years ended March 31, 2022 and 2023, Nomura received cash proceeds from SPEs in new securitizationsof ¥464 billion and ¥285 billion, respectively, and the associated gain on sale was ¥9 billion and ¥1 billion,
F-85

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
respectively. For the years ended March 31, 2022 and 2023, Nomura received debt securities issued by these
SPEs with an initial fair value of ¥1,890 billion and ¥458 billion, respectively, and cash inflows from third
parties primarily on the sale of those debt securities of ¥1,759 billion and ¥436 billion, respectively. The
cumulative balance of financial assets transferred to SPEs with which Nomura has continuing involvement was¥5,829 billion and ¥5,745 billion as of March 31, 2022 and 2023, respectively. Those transferred financial assets
are substantially government, agency and municipal securities. Nomura’s retained interests were ¥131 billion and¥168 billion as of March 31, 2022 and 2023, respectively. For the years ended March 31, 2022 and 2023,
Nomura received cash flows of ¥39 billion and ¥26 billion, respectively, from the SPEs on such retained interests
held in the SPEs.
Nomura does not provide any financial support to SPEs beyond its contractual obligations as of March 31,
2022 and 2023.
The following tables present the fair value of retained interests which Nomura has continuing involvementin SPEs and their classification in the fair value hierarchy, categorized by the type of transferred assets as ofMarch 31, 2022 and 2023.
Billions of yen
March 31, 2022
Level 1

Level 2

Level 3

Total

Investment
grade

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

¥—
—
—

¥124
—
—

¥—
—
7

¥124
—
7

¥124
—
2

¥—
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—

¥124

¥

¥131

¥126

¥

7

Other

5
5

Billions of yen
March 31, 2023
Level 1

Level 2

Level 3

Total

Investment
grade

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

¥—
—
—

¥161
—
—

¥—
—
7

¥161
—
7

¥161
—
2

¥—
—

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—

¥161

¥

¥168

¥163

¥

7

Other

5
5

As of March 31, 2022 and 2023, predominantly all of the retained interests held by Nomura were valued
using significant observable inputs. The initial fair value of these retained interests are mostly level 2 in the fairvalue hierarchy.

F-86

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the type and carrying value of financial assets included within Trading assets andLoans receivable which have been transferred to SPEs but which do not meet the criteria for derecognition under
ASC 860 as of March 31, 2022 and 2023. These transfers are accounted for as secured financing transactions andgenerally reported within Long-term borrowings. The assets are pledged as collateral of the associated liabilities andcannot be removed unilaterally by Nomura and the liabilities are non-recourse to Nomura.
Billions of yen
March 312022
2023

AssetsTrading assets
Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans for trading purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ —
19
203

¥

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 222

¥ 354

Liabilities
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 222

¥ 354

1
25
328

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 securitizationand equity derivative activities. Nomura retains, purchases and sells variable interests in VIEs in connection withits 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’s interest 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 inconnection 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 most significant decisions, unless suchroles 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 thecollateral manager or servicer or to require liquidation 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 theunilateral 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 heldby 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 of any subordination of beneficial interests issued by the VIE which will beheld by Nomura and any third party investors. Nomura has sponsored numerous re-securitization transactions and
F-87

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 that third party investors were not involved in the design of the VIEs,
including where the size of third party investment was insignificant at inception of the transaction.
The following table presents the classification of consolidated VIEs’ assets and liabilities in these
consolidated financial statements as of March 31, 2022 and 2023. Most of these assets and liabilities are related
to consolidated VIEs which securitize corporate convertible securities, mortgages and mortgage-backed
securities. The assets of a consolidated VIE may only be used to settle obligations of that VIE. Creditors do not
typically have any recourse to Nomura.
Billions of yen
March 312022
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

62

¥

23

555
443
21
1
4
10
115

491
491
27
0
35
49
78

¥1,211¥1,194

Consolidated VIE liabilities
Trading liabilities
Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowings
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0

0

95
797
6

94
793
5

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 898

¥ 892

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 andstructured 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.
The following tables present the carrying amount of variable interests of unconsolidated VIEs andmaximum exposure to loss associated with these variable interests as of March 31, 2022 and 2023. Maximum
exposure to loss does not reflect Nomura’s estimate of the actual losses that could result from adverse changes,
F-88

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
nor does 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 theamount of any undrawn commitments and financial guarantees issued.
Billions of yen
March 31, 2022
Carrying amount of variable interests
AssetsLiabilities

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Maximum exposure
to loss tounconsolidated VIEs

¥

26
61
1,432
191
22
940
10
—

¥

—
—
—
—
—
—
—
—

¥

26
61
1,432
191
22
940
10
256

¥2,682¥—¥2,938Billions of yen
March 31, 2023
Carrying amount of variable interests
AssetsLiabilities

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Maximum exposure
to loss tounconsolidated VIEs

¥

18
64
3,376
164
21
936
3
—

¥

—
—
—
—
—
—
—
—

¥

18
64
3,376
164
21
936
3
196

¥4,582¥—¥4,778The above does not include certain repurchase agreement financings provided to third parties or Nomura
sponsored VIEs.
7. Financing receivables:
In the normal course of business, Nomura extends financing to clients primarily in the form of loan
receivables, loan commitments and collateralized agreements such as reverse repurchase agreements andsecurities borrowing transactions. These financing receivables are recognized as assets on Nomura’s consolidatedbalance 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.

F-89

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The carrying value of financing receivables measured on an amortized cost basis is adjusted for allowances
for current expected credit losses defined by ASC326 “Financial Instruments—Credit Losses” (“ASC 326”)
where appropriate. Allowances for current expected credit losses against recognized financial instruments arereported in the consolidated balance sheets within Allowance for credit losses.
Collateralized agreements
Collateralized agreements consist of reverse repurchase agreements reported as Securities purchased underagreements to resell and securities borrowing transactions reported as Securities borrowed in the consolidatedbalance sheets, including those executed under Gensaki Repo agreements. Reverse repurchase agreements andsecurities 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, orborrowing these securities with cash and non-cash collateral. Nomura monitors the value of the underlying
securities on a daily basis to the related receivables, including accrued interest, and requests or returns additional
collateral when appropriate. Except for those where we apply the fair value option, reverse repurchaseagreements 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 consolidatedbalance sheets at the amount of cash collateral advanced. Allowances for current expected credit 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 marginloans, inter-bank money market loans and corporate 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 the underlying 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 thesecounterparties 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 wealth management services. These loans provide funding for clients in order topurchase securities. Nomura requests initial margin in the form of acceptable securities or deposits against theseloans 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 maintaina specified loan-to-value (“LTV”) ratio. These clients are required and reasonably expected to continue toreplenish 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 are traded through money market dealers. The risk to Nomura of making these
F-90

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
loans is limited as only qualified financial institutions can participate in these markets and these loans are usuallyovernight or short-term in nature. Allowances for current expected credit losses against inter-bank money market
loans are therefore usually not significant.
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 issimilar 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 affiliated companies in the consolidated balance sheets as of March 31, 2022, and2023 by portfolio segment.
Millions of yen
March 31, 2022
Carried at
Carried atamortized costfair value(1)TotalLoans receivables
Loans at banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term secured margin loans . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inter-bank money market loans . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 717,992
442,600
2,196
1,206,349¥

Total loans receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,369,137¥1,210,590¥3,579,727

Advances to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,000

—

1,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,370,137¥1,210,590¥3,580,727—¥ 717,992—
442,600—
2,196
1,210,590
2,416,939

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

¥ 802,595
457,273—
1,103,869¥

Total loans receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,363,737¥1,650,115¥4,013,852

Advances to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,000

—

4,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,367,737¥1,650,115¥4,017,852—¥ 802,595—
457,273——
1,650,115
2,753,984(1) Includes loans receivable and loan commitments carried at fair value through election of the fair value option.
There were no significant purchases or sales of loans receivable during the years ended March 31, 2022 and2023, respectively. There were also no significant reclassifications of loans receivable to or from trading assets
during the years ended March 31, 2022 and 2023, respectively.
Net unamortized deferred fees and costs related to loans receivable carried at amortized cost were notsignificant as of March 31, 2022 and March 31, 2023.
F-91

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 a recurring 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 expected credit losses over the remaining expected life of the financial
instruments that consider forecast of future economic conditions in addition to information about past events andcurrent conditions. Key macroeconomic inputs to our weighted average forecasts of three years include GDP andcredit 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 expected credit 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,
2022 and March 31, 2023 was not significant.
The methodology used by Nomura to determine allowances for current expected credit losses in accordancewith the CECL impairment model primarily 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 charged off when Nomura has deemed theloan or receivable as uncollectible, namely management believes there is no reasonable expectation of collecting
future contractual cash flows and all commercially reasonable means of recovering outstanding principal andinterest balances have been exhausted.
The following table summarizes the methodology used for each significant type of financial instrument
subject to the CECL impairment model and the key assumptions used which have impacted the measurement of
current expected credit losses during the year ended March 31, 2023.
Financial instrument

Loans, written loan commitments andcertain deposits

Methodology to determine current expected credit losses•

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

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

•PD inputs incorporate forward-looking scenarios used by Nomura
for internal risk management and capital purposes.
F-92

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Financial instrument

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

Customer contract assets andreceivables

Methodology to determine current expected credit losses•

Immediate reversion method used for periods beyond which
reasonable and supportable forecast is not available.

•

For financial instruments which have defaulted or are probable ofdefaulting, 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 frequent margining is required and thecounterparty has ability to replenish margin, as permitted by apractical expedient provided by ASC 326 expected credit losses arelimited to difference between carrying value of the reverse repo or
margin loan and fair value of underlying collateral.

•

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

•

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

The following table presents changes in the allowances for current expected credit losses for the year
ended March 31, 2021 as determined using the CECL impairment model defined by ASC 326. See Note 20.
“Segment and geographic information” for further information on this event.

Opening balance prior to CECL
adoption(1) . . . . . . . . . . . . . . . . . . . . . . . . .
Impact of CECL adoption(2) . . . . . . . . .
Opening balance after CECL adoption . . . . .
Provision for credit losses(4) . . . . . . . . .
Charge-offs . . . . . . . . . . . . . . . . . . . . . .
Other(5) . . . . . . . . . . . . . . . . . . . . . . . . . .
Ending balance . . . . . . . . . . . . . . . . . . . . . . .

Millions of yen
Year ended March 31, 2021
Allowances for current expected credit losses
against loans
Allowances
Short-term
againstsecuredreceivablesLoansmarginCorporateother thanat banks
loans
loans
Subtotalloans(3)Totalallowances
for current
expected
credit losses

1,564
232
1,796
(196)
(318)
—
¥1,28213,012
1,972
14,98439,075(2,281)
2,006¥53,784

352
—
352
—
(363)
11
¥—

7,944
9,860
1,738
1,970
9,682
11,83038,21138,015
(0)
(681)
92
103
¥47,985 ¥49,267

3,152
2
3,154
1,060
(1,600)1,903¥ 4,517(1) Closing balance recognized on March 31, 2020 as determined using legacy U.S. GAAP guidance in effectprior to the adoption of ASC 326.
(2) The adjusted opening balance recognized on April 1, 2020 on adoption of the CECL impairment model
under ASC 326.
(3) Includes amounts recognized against collateralized agreements, customer contract assets and receivables
and other receivables.
F-93

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(4) Following default by a U.S. client in connection with the U.S. Prime Brokerage Event in March 2021, aprovision for credit losses of ¥41,561 million was recognized.
(5) Primarily includes the effect of recoveries collected and foreign exchange movements.
The following table presents changes in the allowances for current expected credit losses for the years ended
March 31, 2022 and 2023 as determined using the CECL impairment model defined by ASC 326. The
allowances increased as of March 2022 when compared to March 2021 primarily as a result of additional
provisions for credit losses arising in connection with the U.S. Prime Brokerage Event in March 2021. The
allowances decreased as of March 2023 when compared to March 2022 primarily as a result of a charge-off ofreceivables in connection with the U.S. Prime Brokerage Event. See Note 20. “Segment and geographic
information” for further information.

Opening balance . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses(2) . . . . . . . .
Charge-offs . . . . . . . . . . . . . . . . . . . . .
Other(4)(5) . . . . . . . . . . . . . . . . . . . . . . .
Ending balance . . . . . . . . . . . . . . . . . . . . . .

Opening balance . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . .
Charge-offs(3) . . . . . . . . . . . . . . . . . . . .
Other(4)(5) . . . . . . . . . . . . . . . . . . . . . . .
Ending balance . . . . . . . . . . . . . . . . . . . . . .

Millions of yen
Year ended March 31, 2022
Allowances for current expected credit losses
against loans
Allowances
Short-term
againstsecuredreceivablesLoansmarginCorporateother thanat banks
loans
loans
Subtotalloans(1)Totalallowances
for current
expected
credit losses

1,282
1,161
—
(9)
¥ 2,434

4,517
113(1,231)(1,840)¥ 1,559

53,784
12,353(1,231)
1,440¥ 66,346

Millions of yen
Year ended March 31, 2023
Allowances for current expected credit losses
against loans
Allowances
Short-term
againstsecuredreceivablesLoansmarginCorporateother thanat banks
loans
loans
Subtotalloans(1)Totalallowances
for current
expected
credit losses

2,434
672
(1,523)(457)¥ 1,126

66,346
1,574(63,127)
1,039¥ 5,832

—
—
—
—
¥—

—
—
—
—
¥—

47,985
11,079—3,289¥ 62,353

49,267
12,240—3,280¥ 64,787

62,35364,787898
1,570(61,604) (63,127)
1,283
826
¥ 2,930 ¥ 4,056

1,559
4
—
213
¥ 1,776(1) Includes amounts recognized against collateralized agreements, customer contract assets and receivables
and other receivables.
(2) Following default by a U.S. client in connection with the U.S. Prime Brokerage Event in March 2021, an
additional provision for credit losses of ¥9,289 million was recognized during the year ended March 31,
2022.
(3) Includes ¥59,025 million of charge-offs in connection with the U.S. Prime Brokerage Event during the year
ended March 31, 2023.
(4) Includes a reduction in the allowances for current expected credit losses of ¥2,535 million and¥2,071 million in connection with the U.S. Prime Brokerage Event during the years ended March 31, 2022
and 2023.
(5) Primarily includes the effect of recoveries collected and foreign exchange movements.
F-94

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Troubled debt restructurings
In the ordinary course of business, Nomura may choose to restructure a loan classified as held forinvestment either because of financial difficulties of the borrower, or simply as a result of market conditions or
relationship reasons. A troubled debt restructuring (“TDR”) occurs when Nomura (as lender) for economic orlegal reasons related to the borrower’s financial difficulties grants a concession to the borrower that Nomura
would not otherwise consider.
Expected credit losses for a loan being restructured under a TDR which only involve modification of theloan’s terms (rather than receipt of assets in full or partial settlement) is typically determined using a discounted
cash flow analysis. Assets received in full or partial satisfaction of a loan in a TDR are recognized at fair value.
Discussions continue with various borrowers to modify the existing contractual terms of certain loans.
These modifications where the borrower is deemed to be in financial difficulty and Nomura has, or expects to,
grant a financial concession would typically be accounted for and reported as a TDR.
The amounts of TDRs which occurred during the years ended March 31, 2022 and 2023 were notsignificant.
Nonaccrual and past due loans
Loans are placed on a nonaccrual status if interest is deemed uncollectible. Nomura policy is to defineinterest as being uncollectible if the borrower 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 nofurther 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 and interest amounts contractually
due are reasonably assured of repayment within a reasonable period of time or there has been a sustained periodof repayment performance by the borrower.
As of March 31, 2022, there were ¥62,289 million of loans which were placed on a nonaccrual status,
primarily secured corporate loans. Corporate loans on a non-accrual status as of March 31, 2022 include loans
relating to the U.S. Prime Brokerage Event in March 2021. The amount of loans which were 90 days past due butwere not on a nonaccrual status was not significant.
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 non-accrual status as of March 31, 2023 include ¥14,233
million of loans which didn’t recognize allowances for current expected credit losses due to fair value of thecollateral excess value of the loan. 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 deteriorationof creditworthiness or bankruptcy of the borrower. Nomura’s risk management framework for such credit risks isbased on a risk assessment through an internal rating process, in depth pre-financing credit analysis of eachindividual loan and continuous post-financing monitoring of the borrower’s creditworthiness.
F-95

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present an analysis of each class of loans not carried at fair value using Nomura’sinternal ratings or equivalent credit quality indicators applied by subsidiaries by years of origination as ofMarch 31, 2022 and 2023.
Millions of yen
March 31, 2022
2022

2021

2020

2019

Secured loans at banks:
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥106,554 ¥126,834 ¥ 8,325 ¥ 17,308 ¥BB-CCC . . . . . . . . . . . . . . . . . . . . . . 80,167 169,655
1,693
638
CC-D . . . . . . . . . . . . . . . . . . . . . . . .
————Others(1) . . . . . . . . . . . . . . . . . . . . . .
—82,304——
Total secured loans at banks . . . . . . . . . . ¥186,721 ¥378,793 ¥ 10,018 ¥ 17,946 ¥Unsecured loans at banks:
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥ 6,000 ¥ 18,175 ¥ 12,703 ¥ 20,565 ¥BB-CCC . . . . . . . . . . . . . . . . . . . . . .
————CC-D . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
1,940
Others . . . . . . . . . . . . . . . . . . . . . . . .
————Total unsecured loans at banks . . . . . . . . ¥ 6,000 ¥ 18,175 ¥ 12,703 ¥ 22,505 ¥Short-term secured margin loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥
— ¥
— ¥
— ¥
— ¥
BB-CCC . . . . . . . . . . . . . . . . . . . . . .
————CC-D . . . . . . . . . . . . . . . . . . . . . . . .
————Others(1) . . . . . . . . . . . . . . . . . . . . . . 169,195 23,238——
Total short-term secured margin loans . . . ¥169,195 ¥ 23,238 ¥— ¥— ¥Unsecured inter-bank money market
loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥ 2,196 ¥
— ¥
— ¥
— ¥
BB-CCC . . . . . . . . . . . . . . . . . . . . . .
————CC-D . . . . . . . . . . . . . . . . . . . . . . . .
————Others . . . . . . . . . . . . . . . . . . . . . . . .
————Total unsecured inter-bank money market
loans . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 2,196 ¥
— ¥
— ¥
— ¥

2018

2017 orearlier

RevolvingTotal

9,213 ¥ 12,729 ¥
587
6,779
—
—
—
—
9,800 ¥ 19,508 ¥— ¥ 280,963—
259,519———
82,304— ¥ 622,786

9,982 ¥ 25,841 ¥
—
—
—
—
—
—
9,982 ¥ 25,841 ¥

— ¥
—
—
—
— ¥

93,266—
1,940—
95,206

— ¥
—
—
—
— ¥

— ¥
— ¥
—
—
—
—
—
—
—
— 250,167
442,600— ¥250,167 ¥ 442,600

— ¥
—
—
—

— ¥
—
—
—

— ¥
—
—
—

2,196
—
—
—

— ¥

— ¥

— ¥

2,196

Secured corporate loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥— ¥ 52,545 ¥ 86,910 ¥ 20,710 ¥ 3,258 ¥ 52,496 ¥ 9,916 ¥ 225,835
BB-CCC . . . . . . . . . . . . . . . . . . . . . . 86,300 307,636 14,718 131,266 115,494 30,085 92,039
777,538
CC-D(2) . . . . . . . . . . . . . . . . . . . . . . .
—57,524—————57,524
Others(1) . . . . . . . . . . . . . . . . . . . . . .
455
20
25
26
10
101
96
733
Total secured corporate loans . . . . . . . . . . ¥ 86,755 ¥417,725 ¥101,653 ¥152,002 ¥118,762 ¥ 82,682 ¥102,051 ¥1,061,630
Unsecured corporate loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥
— ¥
— ¥
— ¥
— ¥
— ¥
— ¥
— ¥
—
BB-CCC . . . . . . . . . . . . . . . . . . . . . . 11,621 20,516
—
1,989
—
—
—
34,126
CC-D . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others . . . . . . . . . . . . . . . . . . . . . . . .
—
438
191
— 109,959
5—
110,593
Total unsecured corporate loans . . . . . . . . ¥ 11,621 ¥ 20,954 ¥191 ¥ 1,989 ¥109,959 ¥5¥— ¥ 144,719

Advances to affiliated companies
AAA-BBB . . . . . . . . . . . . . . . . . . . . ¥— ¥ 1,000 ¥
— ¥
— ¥
— ¥
— ¥
— ¥
1,000
BB-CCC . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
CC-D . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Total advances to affiliated companies . . ¥— ¥ 1,000 ¥
— ¥
— ¥
— ¥
— ¥
— ¥
1,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥462,488 ¥859,885 ¥124,565 ¥194,442 ¥248,503 ¥128,036 ¥352,218 ¥2,370,137(1) Relate to collateralized exposures where a specified ratio of LTV is maintained.
(2) Includes loans of ¥57,524 million in connection with the U.S. Prime Brokerage Event. See Note 20“Segment and geographic information” for further information on this event.
F-96

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Millions of yen
March 31, 2023
2023

2022

2021

2020

2019

2018 orearlier

Revolving

Total

Secured loans at banks:
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥104,543 ¥152,888 ¥ 5,960 ¥ 8,050 ¥14,817 ¥ 16,047 ¥— ¥ 302,305
BB-CCC . . . . . . . . . . . . . . . . . . . . . . . 117,680 199,696
—
1,642
415
2,395
—
321,828
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others(1) . . . . . . . . . . . . . . . . . . . . . . . 55,842 45,404
—
—
—
—
—
101,246
Total secured loans at banks . . . . . . . . . . . ¥278,065 ¥397,988 ¥ 5,960 ¥ 9,692 ¥15,232 ¥ 18,442 ¥— ¥ 725,379
Unsecured loans at banks:
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥ 4,673 ¥ 9,297 ¥ 9,169 ¥ 9,513 ¥11,036 ¥ 25,806 ¥— ¥ 69,494
BB-CCC . . . . . . . . . . . . . . . . . . . . . . .
—
—
1,000
3,370 1,692
1,660
—
7,722
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Total unsecured loans at banks . . . . . . . . . ¥ 4,673 ¥ 9,297 ¥ 10,169 ¥ 12,883 ¥12,728 ¥ 27,466 ¥— ¥ 77,216
Short-term secured margin loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥
— ¥
— ¥
— ¥
— ¥ — ¥— ¥— ¥—BB-CCC . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others(1) . . . . . . . . . . . . . . . . . . . . . . . 217,767
2,081
—
—
—
— 237,425
457,273
Total short-term secured margin loans . . . . ¥217,767 ¥ 2,081 ¥— ¥— ¥ — ¥
— ¥237,425 ¥ 457,273
Unsecured inter-bank money market loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥
— ¥
— ¥
— ¥
— ¥ — ¥— ¥— ¥—BB-CCC . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Total unsecured inter-bank money market
loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥
— ¥
— ¥
— ¥
— ¥ — ¥— ¥— ¥—Secured corporate loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥ 9,132 ¥433,330 ¥184,579 ¥169,393 ¥20,423 ¥— ¥ 10,392 ¥ 827,249
BB-CCC . . . . . . . . . . . . . . . . . . . . . . .
598
8,242
7,322 14,954 23,811 20,791 69,260
144,978
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others(1) . . . . . . . . . . . . . . . . . . . . . . .
1,550
458
—
—
2
—
119
2,129
Total secured corporate loans . . . . . . . . . . . ¥ 11,280 ¥442,030 ¥191,901 ¥184,347 ¥44,236 ¥ 20,791 ¥ 79,771 ¥ 974,356
Unsecured corporate loans:
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥
— ¥
— ¥
— ¥
— ¥ — ¥— ¥— ¥—BB-CCC . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
2,184
—
—
2,184
Others . . . . . . . . . . . . . . . . . . . . . . . . .
200
3
472
166
— 126,488—
127,329
Total unsecured corporate loans . . . . . . . . . ¥
200 ¥
3¥
472 ¥
166 ¥ 2,184 ¥126,488 ¥— ¥ 129,513
Advances to affiliated companies
AAA-BBB . . . . . . . . . . . . . . . . . . . . . ¥— ¥ 3,000 ¥ 1,000 ¥— ¥ — ¥
— ¥
— ¥
4,000
BB-CCC . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
CC-D . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Others . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
—
—
—
Total advances to affiliated companies . . . ¥— ¥ 3,000 ¥ 1,000 ¥— ¥ — ¥
— ¥
— ¥
4,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥511,985 ¥854,399 ¥209,502 ¥207,088 ¥74,380 ¥193,187 ¥317,196 ¥2,367,737(1) Relate to collateralized exposures where a specified ratio of LTV is maintained.

F-97

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents a definition of each of the internal ratings used in the Nomura Group.
Rating Range

Definition

AAA

Highest credit quality. An obligor or facility has extremely strong capacity to meet its financial
commitments. ‘AAA range’ is the highest credit rating assigned by Nomura. Extremely low
probability of default.

AA

Very high credit quality category. An obligor or facility has very strong capacity to meet its
financial commitments. Very low probability of 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 circumstancesand 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 tolead 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 otherlower-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 or obligor’s capacity or
willingness to meet its financial commitments. High probability of default—more than that of ‘BBrange.’

CCC

Substantial credit risk. An obligor or facility is currently vulnerable, and is dependent uponfavorable 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 a contractual term compared with the existing obligation,
bankruptcy filings, administration, receivership, liquidation or other winding-up or cessation ofbusiness 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 other information. Internal ratings are also reviewed more frequently for highrisk obligors or problematic exposures and any significant credit event of obligors will trigger an immediate
credit review process.

F-98

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
8. Leases:
Nomura as lessor
Nomura leases office buildings and aircrafts in Japan and overseas either as head lessor or throughsubleases. These leases and subleases are primarily classified as operating leases. The related assets are stated atcost, net of accumulated depreciation, except for land, which is stated at cost in the consolidated balance sheetsand reported within Other assets-Office buildings, land, equipment and facilities.
The following table presents the types of assets which Nomura leases under operating leases:
Millions of yen
March 31

Cost

2022
Accumulated
depreciation

Net carrying
amountCost

2023
Accumulated
depreciation

Net carrying
amountReal estate(1) . . . . . . . . . . . . . . . . . . . . ¥ 354
Aircraft . . . . . . . . . . . . . . . . . . . . . . . . 10,373¥(292)
(688)

¥

62
9,685

¥

21
49,472

¥ —
(741)

¥

Total . . . . . . . . . . . . . . . . . . . . . . . . . . ¥10,727¥(980)¥9,747¥49,493¥(741)¥48,752

21
48,731(1) Cost, accumulated depreciation and net carrying amounts include amounts relating to real estate utilized by
Nomura.
Nomura recognized lease income of ¥1,878 million, ¥3,653 million and ¥1,795 million for the years ended
March 31, 2021, 2022 and 2023, respectively. These are included in the consolidated statements of income
within Revenue—Other.
The following table presents an analysis of future undiscounted lease payments receivable in connection
with noncancellable operating leases entered into by Nomura as lessor over the remaining lease term as ofMarch 31, 2023. Amounts in connection with finance leases were not significant.
Millions of yen
March 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,830
3,830
3,830
3,830
3,830
26,193

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45,343¥

Nomura as lessee
Nomura enters into leases of office space, residential facilities for employees, motor vehicles, equipment
and technology assets in the ordinary course of business in both Japan and overseas as lessee. These
F-99

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
arrangements predominantly consist of operating leases. Separately Nomura subleases certain real estate andequipment through operating lease arrangements. The total carrying values of right-of-use (“ROU”) assets
recognized in connection with operating leases as of March 31, 2022 and 2023 were ¥175,422 million and¥170,993 million, respectively. The total carrying values of ROU assets recognized in connection with financeleases as of March 31, 2022 and 2023 were not significant. These lease assets are reported within Other assetsOffice buildings, land, equipment and facilities in the consolidated balance sheets.
The following table presents income and expense amounts recognized through the consolidated statements
of income for leases where Nomura is acting as lessee for the year ended March 31, 2021, 2022 and 2023.
Amounts recognized in the consolidated statements of income in respect of finance lease cost, short-term leasecost, variable lease cost and net gains (losses) on qualifying sale and leaseback transactions were not significant
during the years ended March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2021
2022
2023

Lease expense:
Operating lease costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥49,168¥47,643¥47,268

Other income and expenses:
Gross sublease income(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 4,638¥ 3,464¥ 1,658(1) Gross sublease income represents income from subleases separate from lease payments made by Nomura on
the head lease as lessee.
Lease cash flow information
Lease payments made in cash in connection with operating leases are classified as operating activity in the
consolidated statements of cash flows. The initial recognition of ROU assets and lease liabilities on leasecommencement date represents noncash transactions.
The following table presents cash payments made by Nomura as lessee which meet the definition of lease
payments and therefore have been included in the measurement of operating lease liabilities recorded underoperating cash flows and the total amount of ROU assets and lease liabilities recognized during the years ended
March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2021
2022
2023

Operating cash flows for operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥47,584 ¥46,565 ¥44,689
ROU assets recognized in connection with new operating leases . . . . . . . . . . . . . . ¥41,279 ¥32,208 ¥36,032
Maturity analysis of lease liabilities
The following table presents an analysis of future undiscounted lease payments under operating leases
entered into by Nomura as lessee over the remaining lease term as of March 31, 2023 and also represents areconciliation between total of such lease payments and the discounted carrying value of operating leaseliabilities recognized in the consolidated balance sheets as of March 31, 2023. Finance lease liabilities were not
F-100

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
significant as of March 31, 2023. These lease liabilities are reported within Other liabilities in the consolidatedbalance sheets.
Millions of yen
March 31, 2023
Operating leases

Years of payment
Less than 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 to 2 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 to 3 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 to 4 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 to 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
More than 5 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 44,455
35,801
28,421
22,986
19,48852,747

Total undiscounted lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Impact of discounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥203,898(10,015)

Lease liabilities as reported in the consolidated balance sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥193,883

The following table presents the weighted-average discount rate used to measure lease liabilities and theweighted-average remaining lease term of operating leases as of March 31, 2022 and 2023.
Year ended March 31
2022
2023
Operating leases Operating leases

Weighted-average discount rate used to measure lease liabilities . . . . . . . . . . . . .
Weighted-average remaining lease term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.4%
7.2 years

1.5%
6.5 years

9. Other assets—Office buildings, land, equipment and facilities and Other / Other liabilities:
Office buildings, land, equipment and facilities
The following table presents a breakdown of owned and leased office buildings, land, equipment andfacilities as of March 31, 2022 and 2023.
Millions of yen
March 312022
2023

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Office buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment and facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating lease ROU assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥39,11860,02531,895
104,6097,978
175,422¥ 419,047¥

38,75256,802
71,981
117,780
8,008
170,993¥ 464,316

Depreciation and amortization charges of depreciable assets are reported within Non-interest expenses—
Information processing and communications in the amount of ¥49,343 million, ¥46,111 million, andF-101

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)¥48,893 million, and in Non-interest expenses—Occupancy and related depreciation in the amount of¥14,503 million, ¥13,412 million, and ¥12,531 million for the years ended March 31, 2021, 2022 and 2023,
respectively.
Other assets—Other / Other liabilities
The following table presents components of Other assets—Other and Other liabilities in the consolidatedbalance sheets as of March 31, 2022 and 2023.
Millions of yen
March 31
2022
2023

Other assets—Other:
Securities received as collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 166,352 ¥ 268,591
Goodwill and other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30,00736,194
Deferred tax assets net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15,562
22,645Investments in equity securities for other than operating purposes(1) . . . . . . . . . . . . . . .
249,448249,865
Deposit receivables(2)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
227,777
298,705
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,165
19,727
Other(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67,275
118,980
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 773,586¥1,014,707

Other liabilities:
Obligation to return securities received as collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 166,352 ¥ 268,591
Accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34,15842,254
Other accrued expenses and provisions (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
457,511479,491
Operating lease liabilities(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
198,131
193,883
Other(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164,073
191,302
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,020,225¥1,175,521(1) Includes equity securities held for other than trading or operating purposes. These investments compriselisted equity securities and unlisted equity securities of ¥13,572 million and ¥235,877 million respectively,
as of March 31, 2022, and ¥13,174 million and ¥236,691 million respectively, as of March 31, 2023. These
securities are generally carried at fair value, with changes in fair value recognized and reported within
Revenue—Other in the consolidated statements of income. Also includes equity securities without a readily
determinable fair value of ¥65,365 million as of March 31, 2022 and 2023 respectively.
(2) Certain reclassifications of previously reported amounts have been made to conform to the current period
presentation.
(3) Includes a liability of ¥76,866 million and ¥42,459 million as of March 31, 2022 and 2023 respectively, in
respect of outstanding and unsettled investigations, lawsuits and other legal proceedings where loss is
considered probable and the amount of such loss can be reasonably estimated. See Note 19 “Commitments,
contingencies and guarantees” for further information.
(4) Includes Japan Securities Clearing Corporation’s clearing fund.
Goodwill is recognized upon completion of a business combination as the difference between the purchaseprice and the fair value of the net assets acquired. Subsequent to initial recognition, goodwill is not amortized but
is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances,such as adverse changes in the business climate, indicate there may be impairment.
F-102

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Impairment testing of goodwill is inherently subjective and often requires management judgment todetermine when to perform an impairment test, whether qualitatively the fair value of a reporting unit exceeds its
carrying value and also to estimate the fair value of a reporting unit when a quantitative impairment test isrequired.
An annual goodwill impairment test was performed in the quarter ended March 31, 2022 and 2023. The
estimated fair value of the reporting unit is expected to exceed carrying value and therefore no impairment loss
was recognized.
The following table presents changes in goodwill, which are reported in the consolidated balance sheets within
Other assets—Other for the years ended March 31, 2022 and 2023.
Millions of yen
Year ended March 31, 2022
Changes during year

Beginning of year
Grosscarrying
amountAccumulated
Impairment

Net
carrying
amountAcquisition

Wholesale .
Other . . . .

¥105,294
665¥(92,814)—¥12,480
665

Total . . . . .

¥105,959¥(92,814)¥13,145

Wholesale .
Other . . . .
Total . . . . .

Impairment

Other(1)

Accumulated
Impairment

Net
carrying
amount¥——¥——¥1,2602¥106,554
667¥(92,814)—¥13,740
667

¥—

¥—

¥1,262¥107,221¥(92,814)¥14,407

Millions of yen
Year ended March 31, 2023
Changes during year

Beginning of year
Grosscarrying
amountEnd of year
Grosscarrying
amountAccumulated
Impairment

Net
carrying
amountAcquisition

Impairment¥106,554
667¥(92,814)—¥13,740667¥2,289—¥107,221¥(92,814)¥14,407¥2,289End of year
Grosscarrying
amountAccumulated
Impairment

Net
carrying
amount¥——¥1,191 ¥110,034
(249)
418

¥(92,814)—¥17,220
418

¥—

¥ 942

¥(92,814)¥17,638

Other(1)¥110,452(1) Includes currency translation adjustments.
The following table presents finite-lived intangible assets by type as of March 31, 2022 and 2023.
Millions of yen
March 31, 2022
Gross
carrying
amountClient relationships . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31, 2023

Accumulated
amortization

Net
carrying
amountGrosscarrying
amountAccumulated
amortization

Net
carrying
amount¥67,492
2,000¥(61,715)(1,522)¥5,777
478¥74,550
2,239¥(66,465)(1,836)¥8,085403¥69,492¥(63,237)¥6,255¥76,789¥(68,301)¥8,488

F-103

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Amortization expenses for the years ended March 31, 2021, 2022 and 2023 were ¥2,296 million,¥1,717 million and ¥1,589 million, respectively. Estimated amortization expenses for the next five years areshown below.
Millions of yen
Estimated
amortization expense

Year ending March 312024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

302
215
126
80
80

The amounts of indefinite-lived intangibles, which primarily includes trademarks, were ¥9,345 million and¥10,068 million as of March 31, 2022 and 2023, respectively.
An annual impairment test was performed during the year ended March 31,2022 and 2023 against these
intangibles. The estimated fair value of each intangible exceeded carrying value and therefore no impairment loss
was recognized.
Nomura recognizes a liability in the consolidated balances within Other liabilities—Other in respect of legal
obligations incurred in connection with the restoration of leased property to their original condition at the end of
the lease term. These asset retirement obligations (“AROs”) are recognized in the period when the legal
obligation is incurred and are measured at the present value of the expected cost of the obligation.
The following table presents changes in ARO during the years ended March 31, 2022 and 2023.
Millions of yen
March 312022
2023

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settled during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥14,485 ¥14,240
319
453
(564)
(497)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥14,240F-104¥14,196

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
10. Borrowings:
The following table presents short-term and long-term borrowings of Nomura as of March 31, 2022 and2023.
Millions of yen
March 312022
2023

Short-term borrowings(1):Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 131,915 ¥Bank borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
205,857
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
712,369
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,050,141

Long-term borrowings:
Long-term borrowings from banks and other financial institutions(2) . . . . . . . . . ¥3,196,144
Bonds and notes issued(3):Fixed-rate obligations:Japanese Yen denominated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
765,412
Non-Japanese Yen denominated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,486,305
Floating-rate obligations:Japanese Yen denominated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
917,362
Non-Japanese Yen denominated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
329,876
Index / Equity-linked obligations:Japanese Yen denominated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
942,585
Non-Japanese Yen denominated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
350,672

299,993
176,708
531,840¥ 1,008,541¥ 3,502,383

872,588
3,042,649
893,832
409,160
918,693346,292

5,792,212

6,483,214

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,988,356

9,985,597

Trading balances of secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

269,950

413,613

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥9,258,306¥10,399,210(1) Includes secured borrowings of ¥92,580 million and ¥97,481 million as of March 31, 2022 and March 31,
2023 respectively.
(2) Includes secured borrowings of ¥79,843 million and ¥84,999 million as of March 31, 2022 and March 31,
2023 respectively.
(3) Includes secured borrowings of ¥761,620 million and ¥742,267 million as of March 31, 2022 and March 31,
2023 respectively.

F-105

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Trading balances of secured borrowings
These are liabilities recognized when a transfer of a financial asset does not meet the criteria for sales
accounting under ASC 860 and therefore the transaction is accounted for as a secured borrowing. Theseborrowings are part of Nomura’s trading activities intended to generate profits from the distribution of financial
products secured by those financial assets.
Long-term borrowings consisted of the following:
Millions of yen
March 312022
2023

Debt issued by the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt issued by subsidiaries—guaranteed by the Company . . . . . . . . . . . . . . . . . . . . . .
Debt issued by subsidiaries—not guaranteed by the Company(1) . . . . . . . . . . . . . . . . .

¥3,679,955
2,124,904
3,453,447¥ 4,154,579
2,026,071
4,218,560

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥9,258,306¥10,399,210(1) Includes trading balances of secured borrowings.
As of March 31, 2022, fixed-rate long-term borrowings mature between 2022 and 2067 with interest rates
ranging from 0.00% to 30.09%. Floating-rate obligations, excluding perpetual subordinated debt, which are
generally based on TIBOR and LIBOR, mature between 2022 and 2051 with interest rates ranging from 0.00% to
7.74%. Index / Equity-linked obligations mature between 2022 and 2052 with interest rates ranging from 0.00%
to 42.30%.
As of March 31, 2023, fixed-rate long-term borrowings mature between 2023 and 2067 with interest rates
ranging from 0.00% to 42.44%. Floating-rate obligations, excluding perpetual subordinated debts, which are
generally based on TIBOR, Tokyo Overnight Average rate and Secured Overnight Financing Rate, mature
between 2023 and 2061 with interest rates ranging from 0.00% to 12.90%. Index / Equity-linked obligations
mature between 2023 and 2053 with interest rates ranging from 0.00% to 28.20%.
Certain borrowing agreements contain provisions whereby the borrowings are redeemable at the option of
the borrower at specified dates prior to maturity and include various equity-linked or other index-linked
instruments.
Nomura enters into swap agreements to manage its exposure to interest rates and foreign exchange rates.
Debt securities and notes issued are typically converted to Tokyo Overnight Average rate and Secured Overnight
Financing Rate-based floating rate obligations through such swap agreements. The carrying value of the longterm borrowings includes adjustments to reflect fair value hedges.

F-106

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the effective weighted-average interest rates of borrowings, including the effectof fair value hedges, as of March 31, 2022 and 2023.
March 312022
2023

Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed-rate obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Floating-rate obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Index / Equity-linked obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.26%
1.09%
1.25%
1.04%
0.79%

1.23%
2.09%
2.40%
2.08%
1.09%

Maturities of long-term borrowings
The following table presents the aggregate annual maturities of long-term borrowings, including
adjustments related to fair value hedges and liabilities measured at fair value, as of March 31, 2023:
Year ending March 31

Millions of yen

2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2029 and thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥619,672
1,875,517
1,730,116
884,123730,624
4,145,545

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,985,597

Trading balances of secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

413,613

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥10,399,210

Borrowing facilities
As of March 31, 2022 and 2023, Nomura had unutilized borrowing facilities of ¥nil and ¥nil, respectively.
Subordinated borrowings
As of March 31, 2022 and 2023, subordinated borrowings were ¥414,500 million and ¥414,500 million,
respectively.

11. Earnings per share:
Basic and diluted earnings per share (“EPS”) are presented on the face of the consolidated statements ofincome. Basic EPS is calculated by dividing net income attributable to NHI shareholders by the weighted average
number of the Company’s common shares outstanding during the year. The calculation of diluted EPS is similar
to basic EPS, except that the weighted average number of the Company’s common shares is adjusted to reflect all
dilutive instruments where the Company’s common shares are potentially deliverable during the year. In
addition, net income attributable to NHI shareholders is adjusted for any change in income or loss that would
result from the assumed conversion of dilutive instruments issued by subsidiaries and affiliates.

F-107

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents a reconciliation of the amounts and the numbers used in the calculation of net
income attributable to NHI shareholders per share (basic and diluted) for the years ended March 31, 2021, 2022
and 2023.
Millions of yen
except per share data presented in yen
Year ended March 31
2021
2022
2023

Basic—Net income attributable to NHI shareholders . . . . . . . .

¥153,116¥

142,996¥Weighted average number of shares outstanding . . . . .

3,055,525,640

Net income attributable to NHI shareholders per
share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

50.11

¥

46.68

¥

30.86

Diluted—
Net income attributable to NHI shareholders . . . . . . . .

¥153,064¥

142,861¥

92,606Weighted average number of shares outstanding . . . . .

3,147,338,609

Net income attributable to NHI shareholders per
share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

48.63

3,063,524,091

92,786
3,006,744,201

3,158,708,013
¥

45.23

3,114,313,612
¥

29.74

Net income attributable to NHI shareholders was adjusted to reflect the decline in Nomura’s equity share of
earnings of subsidiaries and affiliates for the years ended March 31, 2021, 2022 and 2023 arising from options topurchase common shares issued by subsidiaries and affiliates.
The weighted average number of shares used in the calculation of diluted EPS reflects the increase inpotential issuance of the Company’s common shares arising from stock-based compensation plans by theCompany and affiliates, which would have minimal impact on EPS for the years ended March 31, 2021, 2022
and 2023.
Antidilutive stock options and other stock-based compensation plans to purchase 12,398,500, 9,716,800 and
7,147,000 of the Company’s common shares were not included in the computation of diluted EPS for the years
ended March 31, 2021, 2022 and 2023, respectively.
Subsequent Events
On April 26, 2023, the Company adopted a resolution to set up a share buyback program. See Note 16“Shareholders’ equity” for further information.
On May 15, 2023, the Company adopted a resolution to grant Restricted Stock Units (“RSUs”). See Note 13“Deferred compensation awards” for further information.

12. Employee benefit plans:
Nomura provides various pension plans and other post-retirement benefits which cover certain eligible
employees worldwide. In addition, Nomura provides health care benefits to certain active and retired employees
through its Nomura Securities Health Insurance Society (“NSHIS”).
F-108

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Defined benefit pension plans—
The Company and certain subsidiaries in Japan (“Japanese entities”) have contributory funded benefit
pension plans for eligible employees. The benefits are paid as annuity payments subsequent to retirement or as
lump-sum payments at the time of retirement based on a combination of years of service, age at retirement andemployee’s choice. The benefits under the plans are calculated based upon position, years of service and reason
for retirement. In addition to the plans described above, certain Japanese entities also have unfunded lump-sum
payment plans. Under these plans, employees with at least two years of service are generally entitled to lumpsum payments upon termination of employment. The benefits under the plans are calculated based upon position,
years of service and the reason for retirement. Nomura’s funding policy is to contribute annually the amountnecessary to satisfy local funding standards. In December 2008, certain contributory funded benefit pension plans
and unfunded lump-sum payment plans were amended and “Cash balance pension plans” were introduced.
Participants receive an annual benefit in their cash balance pension plan accounts, which is computed based oncompensation of the participants, adjusted for the changes in market interest rate.
In April 2020, certain Japanese entities amended their pension plans. Certain defined benefit pension plans
and unfunded lump-sum payment plans were either closed for additional funding or abolished. Defined
contribution pension plans and cash balance pension plans have replaced them for future contributions.
Certain overseas subsidiaries have various local defined benefit plans covering certain employees. Nomura
recognized an asset for surplus pension benefits for these plans amounting to ¥7,911 million and ¥5,795 million
as of March 31, 2022 and 2023, respectively.
Net periodic benefit cost
The following table presents the components of net periodic benefit cost for defined benefit plans ofJapanese entities for the years ended March 31, 2021, 2022 and 2023. Nomura’s measurement date is March 31
for defined benefit plans of Japanese entities.
Millions of yen
Year ended March 31
2021
2022
2023

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 6,721 ¥ 6,452 ¥ 6,398
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,786
2,042
2,432
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5,826) (6,055) (5,968)
Amortization of net actuarial losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,519
3,955
3,818
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,521) (1,599) (1,607)
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 6,679¥ 4,795¥ 5,073

Prior service cost is amortized on a straight-line basis over the average remaining service period of active
participants. Gains and losses in excess of 10% of the greater of the projected benefit obligation or the fair valueof plan assets are amortized over the average remaining service period of active participants, which is 14 years.

Benefit obligations and funded status
The following table presents a reconciliation of changes in projected benefit obligation (“PBO”) and the fairvalue of plan assets, as well as a summary of the funded status of Japanese entities’ plans as of, and for the years
ended March 31, 2022 and 2023.
F-109

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Millions of yen
As of or for theyear ended March 31
2022
2023

Change in projected benefit obligation:
Projected benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition, divestitures and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projected benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥295,810 ¥293,039
6,452
6,398
2,042
2,432
1,433
(22,749)(12,683) (13,893)
(15)
(84)

Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥293,039¥265,143¥234,747 ¥231,461
5,464(2,416)815
820(9,565) (10,403)

Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥231,461¥219,462

Funded status at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(61,578)(45,681)

Amounts recognized in the consolidated balance sheets . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (61,578) ¥ (45,681)

The accumulated benefit obligation (“ABO”) was ¥293,039 million and ¥265,143 million as of March 31,
2022 and 2023, respectively.
In April 2020, defined contribution pension plans and cash balance pension plans were adopted for futurecontributions following the amendments of pension benefit plans. Certain contributory defined benefit pension
plans were closed for additional funding and will be managed within the accumulated funds. Unfunded lumpsum payment plans were abolished and transferred to cash balance plans with the calculated amount of lump-sum
retirement payment as of the amendment date.
The following table presents the PBO, ABO and fair value of plan assets for Japanese entities’ plans with
ABO and PBO in excess of plan assets as of March 31, 2022 and 2023.
Millions of yen
March 31
2022
2023

Plans with ABO in excess of plan assets:
PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ABO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plans with PBO in excess of plan assets:
PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ABO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-110¥62,457
62,457—¥47,672
47,672—¥62,457
62,457—¥47,672
47,672—

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents pre-tax amounts of Japanese entities’ plans deferred in Accumulated othercomprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost during
the year ended March 31, 2023.
Millions of yen
For the year ended
March 31, 2023

Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥Net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

64,551(6,507)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

58,044¥Pre-tax amounts of Japanese entities’ plans in accumulated other comprehensive income which are expected
to be recognized as components of net periodic benefit cost over the next fiscal year are as follows.
Millions of yen
For the year ending
March 31, 2024

Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥Net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,805(1,665)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,140

¥

Assumptions
The following table presents the weighted-average assumptions used to determine projected benefit
obligations of Japanese entities’ plans as of March 31, 2022 and 2023.
March 312022
2023

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of increase in compensation levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest crediting rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.8%
0.3%
2.9%

1.3%
0.4%
2.8%

The following table presents the weighted-average assumptions used to determine the net periodic benefit
cost of Japanese entities’ plans as of March 31, 2021, 2022 and 2023.
Year ended March 31
2021
2022
2023

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of increase in compensation levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected long-term rate of return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest crediting rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.6%
0.3%
2.6%
3.0%

0.7%
0.3%
2.6%
2.9%

0.8%
0.3%
2.6%
2.9%

Nomura generally determines the discount rates for its defined benefit plans by referencing indices for longterm, high-quality debt securities and ensuring that the discount rate does not exceed the yield reported for thoseindices after adjustment for the duration of the plans’ liabilities.
Nomura uses the expected long-term rate of return on plan assets to compute the expected return on assets.
Nomura’s approach in determining the long-term rate of return on plan assets is primarily based on historical
F-111

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
financial market relationships that have existed over time with the presumption that this trend will generally
remain constant in the future.

Plan assets
Plan assets are managed with an objective to generate sufficient long-term value in order to enable future
pension payouts. While targeting a long-term rate of return on plan assets, Nomura aims to minimize short-term
volatility by managing the portfolio through diversifying risk. Based on this portfolio policy, the plan assets areinvested diversely.
The plan assets of domestic plans target to invest 15% in equities (including private equity investments),
44% in debt securities, 25% in life insurance company general accounts, and 16% in other investments.
Investment allocations are generally reviewed and revised at the time of the actual revaluation that takes place
every five years or when there is a significant change in the portfolio assumptions.
For details of the levels of inputs used to measure the fair value of plan assets, see Note 2 “Fair value
measurements.”
The following tables present information about the fair value of plan assets of Japanese entities’ plans as ofMarch 31, 2022 and 2023 within the fair value hierarchy.
Millions of yen
March 31, 2022

Level 1

Pension plan assets:
Private equity and pooled investments(1) . . . . . . . . . . . . . . . . .
Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . .
Investment trust funds and other(2)(3) . . . . . . . . . . . . . . . . . . . .
Life insurance company general accounts . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 2

Level 3

Balance as ofMarch 31,
2022

¥

—
20,469
—
—
—

¥

740
—
19,84273,31433,575¥29,081—
27,575——¥ 29,821
20,46947,41773,31433,575¥20,469¥127,471¥56,656¥204,596

Millions of yen
March 31, 2023

Level 1

Pension plan assets:
Private equity and pooled investments(1) . . . . . . . . . . . . . . . . .
Japanese government securities . . . . . . . . . . . . . . . . . . . . . . . .
Investment trust funds and other(2)(3) . . . . . . . . . . . . . . . . . . . .
Life insurance company general accounts . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 2

Level 3

Balance as ofMarch 31,
2023

¥

—
21,704
—
—
—

¥

1,718
—
19,91874,03324,334¥23,078—
26,328——¥ 24,796
21,704
46,24674,03324,334¥21,704¥120,003¥49,406¥191,113(1) Includes corporate type equity investments.
(2) Includes primarily debt investment funds. Hedge funds and real estate funds are also included.
F-112

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(3) Certain assets that are measured at fair value using net asset value per share as a practical expedient havenot been classified in the fair value hierarchy. As of March 31, 2022 and 2023, the fair values of these assets
were ¥26,865 million and ¥28,349 million, respectively.
Within the fair value measurement of plan assets of non-Japanese entities’ plans as of March 31, 2022,¥1,543 million, ¥2,181 million and ¥36,129 million were classified in Level 1, Level 2 and Level 3 of the fairvalue hierarchy, respectively. Within the fair value measurement of plan assets of non-Japanese entities’ plans asof March 31, 2023, ¥44 million, ¥3,149 million and ¥26,497 million were classified in Level 1, Level 2 andLevel 3 of the fair value hierarchy, respectively.
See Note 2 “Fair value measurements” for further information regarding how Nomura estimates fair value
for specific types of financial instruments.
The following tables present information about plan assets of Japanese entities’ plans for which Nomura has
utilized significant Level 3 valuation inputs to estimate fair value.
Millions of yen
Year ended March 31, 2022
Balance
Purchases /as ofUnrealized
sales andApril 1,and realized
other
2021
gains / (loss) settlement

Balance
as ofMarch 31,2022

Private equity and pooled investments . . . . . . . . . . . . . . . . . . .
Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . .

¥33,384
36,335¥1,374(532)¥ (5,677) ¥29,081(8,228) 27,575

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥69,719¥ 842¥(13,905) ¥56,656

Millions of yen
Year ended March 31, 2023
Balance
Purchases /as ofUnrealized
sales andApril 1,and realized
other
2022
gains / (loss) settlement

Balance
as ofMarch 31,2023

Private equity and pooled investments . . . . . . . . . . . . . . . . . . .
Investment trust funds and other . . . . . . . . . . . . . . . . . . . . . . . .

¥29,081
27,575¥(1,990)
2,211¥(4,013)(3,458)¥23,078
26,328

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥56,656¥¥(7,471)¥49,406

221

The fair value measurement of plan assets of non-Japanese entities’ plans classified as Level 3 mainly
consists of annuities, amounted to ¥36,129 million and ¥26,497 million as of March 31, 2022 and 2023,
respectively. The amount of unrealized profit (loss) of Level 3 assets amounted to ¥(4,060) million and¥(9,705) million for the years ended March 31, 2022 and 2023, respectively. The amounts of gains and losses
other than above, purchases and sales, and transfers between Level 1 or Level 2 and Level 3 relating to theseassets during the years ended March 31, 2022 and 2023 were not significant.
Cash Flows
Following the amendments of pension benefit plans in Japanese entities, certain contributory funded benefit
pension plans were closed for additional funding and will be managed within the accumulated funds.

F-113

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the expected benefit payments of Japanese entities’ plans during the next fivefiscal years and in aggregate for the five fiscal years thereafter.
Year ending March 31

Millions of yen

2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2029-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 16,237
15,753
15,135
14,373
15,04859,580Defined contribution pension plans—
In addition to defined benefit pension plans, the Company, NSC and other Japanese and non-Japanesesubsidiaries have defined contribution pension plans.
Nomura contributed ¥6,478 million, ¥6,709 million and ¥6,675 million to defined contribution pension
plans for Japanese entities’ plans for the years ended March 31, 2021, 2022 and 2023, respectively.
The contributions to overseas defined contribution pension plans were ¥8,035 million, ¥9,215 million and¥11,964 million for the years ended March 31, 2021, 2022 and 2023, respectively.
Health care benefits—
The Company and certain subsidiaries provide certain health care benefits to both active and retired
employees through NSHIS. The Company and certain subsidiaries also sponsor certain health care benefits toretired employees (“Special Plan”) and who participate in the Special Plan on a pay-all basis, i.e., by requiring aretiree contribution based on the estimated per capita cost of coverage. The Special Plan is a multi-employer
post-retirement plan because it is jointly administered by NSHIS and the Japanese government, and the funded
status of it is not computed separately. Therefore, although the Company and certain subsidiaries contribute some
portion of the cost of retiree health care benefits not covered through retiree contributions, the Company andcertain subsidiaries do not reserve for future costs. The health care benefit costs, which are equivalent to therequired contribution, were ¥9,463 million, ¥10,035 million and ¥9,586 million for the years ended March 31,
2021, 2022 and 2023, respectively.
13. Deferred compensation awards:
Nomura issues deferred compensation awards to senior management and employees, which are linked to theprice of the Company’s common stock, in order to retain and motivate key staff.
These stock-based compensation awards comprise Restricted Stock Unit (“RSU”) awards, Plan A and
Plan B Stock Acquisition Right (“SAR”) awards, Notional Stock Unit (“NSU”) awards, and Collared Notional
Stock Unit (“CSU”) awards. SAR Plan A awards are awards of stock options while RSU awards, SAR Plan B
awards, NSU awards and CSU awards are all analogous to awards of restricted common stock.
Certain deferred compensation awards include “Full Career Retirement” (“FCR”) provisions which permit
recipients of the awards to continue to vest in the awards upon voluntary termination of employment if certain
criteria based on corporate title and length of service within Nomura are met. The requisite service period forthese awards ends on the earlier of the contractual vesting date and the date that the recipients become eligible
for or claim FCR.
F-114

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Unless indicated below, deferred compensation awards are generally reduced, forfeited or clawed back inthe event of termination of employment, material restatements of financial statements, material conduct issues,
material damage to Nomura’s business or reputation, material downturns in the performance of the Nomura
group and/or a material failure of risk management.
RSU awards
For each RSU award, one common stock of the Company is delivered. The awards generally have a gradedvesting period from one to three years with an extending vesting period of up to seven years for certain senior
management and employees in order to meet local regulatory requirements based on the role they perform within
Nomura.
The grant date fair value per award is determined using the price of the Company’s common stock.
The following table presents activity relating to RSU awards for the year ended March 31, 2023.
Outstanding(number of Nomura
shares)

Weighted-average
grant date fairvalue per share

Weighted-averageremaining life
until expiry(years)Outstanding as of March 31, 2022 . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Delivered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

122,119,390
100,057,000(13,325,712)(50,090,803)

¥

466
442
456
466

1.0

Outstanding as of March 31, 2023 . . . . . . . . . . . . . . . . . . .

158,759,875

¥

451

1.0

The weighted-average grant date fair value per award for the year ended March 31, 2021, 2022 and 2023
was ¥418, ¥507 and ¥442, respectively.
The total fair value of RSU awards vested during the years ended March 31, 2021, 2022 and 2023 was¥10,327 million, ¥28,076 million and ¥26,642 million, respectively. The total intrinsic value of units delivered
during the years ended March 31, 2021 and 2022 was ¥10,360 million and ¥28,704 million, respectively. A totalof 32,050,787 shares were delivered during the year ended March 31, 2023 with a total intrinsic value of¥ 23,978 million. The aggregate intrinsic value of RSU awards outstanding as of March 31, 2023 was ¥80,920
million.
As of March 31, 2023, total unrecognized compensation cost relating to RSU awards was ¥11,786 million
which is expected to be recognized over a weighted average period of 1.8 years.

SAR Plan B awards
In prior years, the Company issued SAR Plan B awards linked to the price of the Company’s common stock
pursuant to several stock unit plans. These awards vest and are exercisable into the Company’s common stock,
have an exercise price of ¥1 per share and graded vesting generally over three years with certain longer vesting or
holding periods where required under local regulations.
The grant date fair value of SAR Plan B awards is determined using the price of the Company’s common
stock.
F-115

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents activity relating to SAR Plan B awards for the year ended March 31, 2023. No
new SAR Plan B awards have been granted since April 1, 2018.
Outstanding(number of Nomura
shares)

Weighted-average
grant date fairvalue per share

Weighted-averageremaining life
until expiry(years)Outstanding as of March 31, 2022 . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,913,800—(3,339,000)(3,800)(548,000)

¥

516
—
541
469
564

2.3

Outstanding as of March 31, 2023 . . . . . . . . . . . . . . . . . . .

4,023,000

¥

490

1.9

Exercisable as of March 31, 2023 . . . . . . . . . . . . . . . . . . .

3,750,600

¥

494

1.6

The total intrinsic value of SAR Plan B awards exercised during the years ended March 31, 2021, 2022 and2023 were ¥4,878 million, ¥2,547 million and ¥1,965 million, respectively.
The aggregate intrinsic value of SAR Plan B awards outstanding and exercisable as of March 31, 2023 were
¥2,047 million and ¥1,908 million, respectively.
As of March 31, 2023, total unrecognized compensation cost relating to SAR Plan B awards was ¥0 million
which is expected to be recognized over a weighted average period of 1.1 years. The total fair value of SAR Plan
B awards which vested during the years ended March 31, 2021, 2022 and 2023 were ¥1,784 million,¥467 million and ¥415 million, respectively.
Total compensation expense recognized within Non-interest expenses—Compensation and benefits in the
consolidated statements of income relating to RSU and SAR awards for the years ended March 31, 2021, 2022
and 2023 were ¥28,251 million, ¥27,941 million and ¥35,216 million, respectively.
Cash received from the exercise of SAR awards during the year ended March 31, 2023 was ¥4 million andthe tax benefit realized from exercise of these awards was ¥87 million.
Total related tax benefits recognized in the consolidated statements of income relating to RSU and SAR
awards for the years ended March 31, 2021, 2022 and 2023 were ¥nil million and ¥nil million and ¥0 million,
respectively. The dilutive effect of outstanding deferred compensation plans is included in the weighted average
number of shares outstanding used in diluted EPS computations. See Note 11 “Earnings per share” for further
information.
NSU and CSU awards
NSU and CSU awards are cash-settled awards linked to the price of the Company’s common stock. NSU
awards replicate the key features of SAR Plan B awards described above but are settled in cash rather than
exercisable into the Company’s common stock. CSU awards are similar to NSU awards but exposure to
movements in the price of the Company’s common stock is subject to a cap and floor. Both types of award have
graded vesting periods generally over three years with certain longer vesting periods where required by local
regulations.
The fair value of NSU and CSU awards are determined using the price of the Company’s common stock.
F-116

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents activity related to NSU and CSU awards for the year ended March 31, 2023.
NSUs
Outstanding(number of units)

CSUs
Outstanding(number of units)

Stock
price

Stock
price

Outstanding as of March 31, 2022 . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,998,325
15,228,667(12,281,557)(348,893)¥

445
494(1)
503(2)

937,156
15,061,452(2,775,837)(627,484)

¥

606
494
497(2)

Outstanding as of March 31, 2023 . . . . . . . . .

20,596,542¥

484(3)

12,595,287¥

509(3)(1) Weighted-average price of the Company’s common stock used to determine number of awards granted.
(2) Weighted-average price of the Company’s common stock used to determine the final cash settlement
amount of the awards.
(3) The price of the Company’s common stock used to remeasure the fair value of the remaining outstanding
unvested awards as of March 31, 2023.
Total compensation expense recognized within Non-interest expenses—Compensation and benefits in the
consolidated statements of income relating to NSU and CSU awards for the years ended March 31, 2021, 2022
and 2023 were ¥8,043 million, ¥4,566 million and ¥11,544 million, respectively.
Total unrecognized compensation cost relating to NSU awards, based on the fair value of these awards as ofMarch 31, 2023, was ¥1,006 million, which is expected to be recognized through the consolidated statements ofincome over a remaining weighted-average period of 1.0 years. The total fair value of NSU awards which vested
during the years ended March 31, 2021, 2022 and 2023 were ¥8,426 million, ¥7,247 million and ¥6,174 million,
respectively.
Total unrecognized compensation cost relating to CSU awards, based on the fair value of these awards as ofMarch 31, 2023, was ¥1,126 million. The total fair value of CSU awards which vested during the years ended
March 31, 2021, 2022 and 2023 was ¥576 million, ¥559 million and ¥1,380 million, respectively.
Total tax benefits recognized in the consolidated statements of income for compensation expense relating to
NSU, and CSU awards for the years ended March 31, 2021, 2022 and 2023 were ¥205 million, ¥125 million and¥164 million, respectively.
Subsequent events
On May 15, 2023, the Company passed a resolution to grant RSU awards to certain senior management andemployees. A total of 84,295,700 RSU awards have been granted which generally have a graded vesting period
from one to three years or with an extending vesting period of up to seven years for certain senior management
and employees in order to meet local regulatory requirements based on the role they perform within Nomura.
On May 25, 2023, Nomura also granted NSU awards to senior management and employees in countries
where RSU awards are less favorably treated from tax or other perspectives. These NSU awards have a total
grant date fair value of ¥6 billion and vesting periods of up to seven years.

F-117

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
14. Income taxes:
The following table presents components of Income tax expense reported in the consolidated statements ofincome for the years ended March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2021
2022
2023

Current:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 73,534
17,853¥69,661
7,323¥35,107
16,554

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

91,38776,984

51,661

Deferred:
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(19,567)(1,546)

1,561
1,545

14,356(8,219)Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(21,113)

3,106

6,137

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 70,274¥80,090¥57,798

The income tax benefit recognized from operating losses for the years ended March 31, 2021, 2022 and2023 was ¥97 million, ¥6,007 million and ¥1,787 million, respectively, which is included within deferred income
tax expense above.
With effect from April 1, 2022, the Company and its wholly-owned domestic subsidiaries have applied theGroup Tax Sharing system. The Group Tax Sharing system is only available for a national tax. The Company
does not have any significant impact on its net deferred tax liabilities on adoption of the Group Tax Sharing
system.
The effective statutory tax rate applicable to Nomura in Japan was approximately 31% as of March 31,
2021, 2022 and 2023, respectively.
Foreign subsidiaries are subject to income taxes of the countries in which they operate. The relationshipbetween income tax expense and pretax accounting income (loss) is affected by a number of items, including
various tax credits, certain revenues not subject to income taxes, certain expenses not deductible for income tax
purposes, changes in deferred tax valuation allowance and different enacted tax rates applicable to foreignsubsidiaries.

F-118

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents a reconciliation of the effective income tax rate reflected in the consolidated
statements of income to Nomura’s effective statutory tax rate for the years ended March 31, 2021, 2022 and2023. The effective tax rate presented in the following table represents total income tax expense for the year as apercentage of Income (loss) before income taxes.
Year ended March 31
2021
2022
2023

Nomura’s effective statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.0%
Impact of:
Changes in deferred tax valuation allowances(2) . . . . . . . . . . . . . . . . . . . . . . . . . .
8.7
Additional taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.7
Non-deductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.1
Non-taxable income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.5)
Dividends from foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0
Tax effect of undistributed earnings of foreign subsidiaries . . . . . . . . . . . . . . . .
0.0
Different tax rate applicable to income (loss) of foreign subsidiaries . . . . . . . . . (4.0)
Effect of changes in foreign tax laws(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Tax benefit recognized on the outside basis differences for investment in
subsidiaries and affiliates(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.7)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.9)
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30.5%

31.0%

31.0%

18.0
1.0
5.1
(2.9)
0.0
0.1
0.0
(14.4)

11.3
0.7
7.8
(4.7)
0.1
0.3
(0.9)
(1.9)

0.0
(2.6)

(2.3)
(2.7)

35.3%

38.7%

(1) Tax benefit recognized on the outside basis differences for investment in subsidiaries and affiliates during
the year ended March 31, 2021 of approximately ¥21 billion (which decreased Nomura’s effective tax rateby 9.1%) arises from the recognition of deferred tax assets from the decision and commitment of Nomura
management to liquidate a certain wholly-owned subsidiary within Nomura in the foreseeable future. The
valuation allowances of ¥3 billion have been recognized against these deferred tax assets, the impact ofwhich are reported in Changes in deferred tax valuation allowances for the same period.
(2) The U.K. Finance Act 2021, enacted on June 10, 2021, increases the headline U.K. corporation tax rate from
19% to 25% on April 1, 2023. Deferred tax assets and liabilities as of the balance sheet date are calculated
by reference to the most appropriate enacted rates as of March 31, 2022. As a result of the change in closing
deferred tax rate, Nomura recognized a movement in Effect of changes in foreign tax laws of ¥36 billion(which decreased Nomura’s effective tax rate by 16.0%), which was offset by a movement in Changes indeferred tax valuation allowances of ¥36 billion (which increased Nomura’s effective tax rate by 16.0% )during the year ended March 31, 2022.

F-119

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents the significant components of deferred tax assets and liabilities as of March 31,
2022 and 2023, before offsetting of amounts which relate to the same tax-paying component within a particular
tax jurisdiction.
Millions of yen
March 31
2022
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 30,441
21,390102,021
20,492
79,061
370,481
49,06015,425¥ 38,596
7,458
123,841
17,30874,043414,084
48,32919,645Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less—Valuation allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

688,371(466,145)

743,304(515,068)

Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

222,226

228,236

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

91,04085,301
2,745
23,96248,5197,044

100,335
118,314
2,936
22,54047,775
7,524

Total deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

258,611

299,424

Net deferred tax assets (liabilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (36,385) ¥ (71,188)

After offsetting deferred tax assets and liabilities which relate to the same tax-paying component within aparticular tax jurisdiction, net deferred tax assets reported within Other assets—Other in the consolidated balance
sheets were ¥15,562 million and ¥22,645 million as of March 31, 2022 and 2023, respectively and net deferred
tax liabilities reported within Other liabilities in the consolidated balance sheets were ¥51,947 million and¥93,833 million as of March 31, 2022 and 2023, respectively.
As of March 31, 2023, no deferred tax liabilities have been recognized for undistributed earnings of foreignsubsidiaries totaling ¥22,417 million which are not expected to be remitted in the foreseeable future. It is notpracticable to determine the amount of income taxes payable in the event all such foreign earnings are
repatriated.

F-120

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table presents changes in total valuation allowances recognized against deferred tax assets forthe years ended March 31, 2021, 2022 and 2023.

2021

Millions of yen
Year ended March 31
2022

2023

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥388,411
39,603(1)¥428,014
38,131(2)¥466,145
48,923(3)Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥428,014¥466,145¥515,068(1) Primarily includes an increase of ¥48,883 million of valuation allowances of certain foreign subsidiaries
primarily due to an increase in valuation allowances related to operating loss carryforwards, a reduction of¥5,871 million of valuation allowances primarily due to an increase in valuation of financial instruments,
and a reduction of ¥3,409 million of valuation allowances related to Japanese subsidiaries and the Company
primarily due to an increase of valuation of financial instruments and a decrease of accrued pension andseverance costs. In total, ¥39,603 million of allowances increased.
(2) Primarily includes an increase of ¥51,706 million of valuation allowances of certain foreign subsidiaries
primarily due to an increase in operating loss carryforwards, and a reduction of ¥13,575 million of valuation
allowances related to Japanese subsidiaries and the Company primarily due to a decrease of operating loss
carryforwards. In total, ¥38,131 million of allowances increased.
(3) Primarily includes an increase of ¥53,851 million of valuation allowances of certain foreign subsidiaries
primarily due to an increase in operating loss carryforwards, and a reduction of ¥4,928 million of valuation
allowances related to Japanese subsidiaries and the Company primarily due to a decrease of valuation
allowances of Investments in subsidiaries and affiliates. In total, ¥48,923 million of allowances increased.
As of March 31, 2023, total operating loss carryforwards were ¥2,134,580 million, which included¥440,983 million relating to the Company and domestic subsidiaries, ¥663,578 million relating to foreignsubsidiaries in U.K., ¥663,629 million relating to foreign subsidiaries in U.S., ¥332,488 million relating toforeign subsidiaries in Hong Kong, and ¥33,902 million relating to foreign subsidiaries in other tax jurisdictions.
Of this total amount, ¥1,265,887 million can be carried forward indefinitely, ¥759,573 million expires byMarch 31, 2033 and ¥109,120 million expires in later fiscal years. These numbers are presented before offset
with any uncertain tax position discussed later.
In determining the amount of valuation allowances to be recognized as of March 31, 2023, Nomura
considered all available positive and negative evidence around the likelihood that sufficient future taxable
income will be generated to realize the deferred tax assets in the relevant tax jurisdiction of the Company, its
domestic subsidiaries and foreign subsidiaries. In Japan and other tax jurisdictions where domestic and foreignsubsidiaries have experienced cumulative operating losses in recent years, these losses provide the mostverifiable negative evidence available and outweigh positive evidence.
While Nomura has considered certain future tax planning strategies as a potential source of future taxable
income, no such strategies have been relied upon as positive evidence resulting in a reduction of valuation
allowances in any major tax jurisdiction in which Nomura operates as of March 31, 2021, 2022 and 2023. In
addition, valuation allowances have not been reduced in any of these periods as a result of changing theweighting applied to positive or negative evidence in any of the major tax jurisdictions in which Nomura
operates.
The determination of whether deferred tax assets will be realized, and therefore whether a valuation
allowance is required, is inherently subjective and often requires management judgment around the future
F-121

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
profitability of Nomura entities, an interpretation of tax rules by courts and regulatory authorities and tax
examinations by taxing authorities, and the appropriate weighting of positive and negative evidence around thelikelihood that sufficient future taxable income will be generated to realize deferred tax assets in the relevant tax
jurisdiction.
Nomura’s unrecognized tax benefits were ¥4,367 million, ¥35,774 million and ¥34,763 million as ofMarch 31, 2021, 2022 and 2023 respectively. Out of the balance as of March 31, 2023, ¥5,766 million, if
recognized, would favorably impact the effective tax rate in the future periods. The remaining balance would notfavorably impact the effective tax rate as it is expected to increase operating loss carryforwards andcorresponding valuation allowance. The movement of the gross amounts in unrecognized tax benefits during theyear ended March 31, 2023 was a decrease of ¥1,011 million of which ¥504 million is presented as a reversal of areduction in deferred tax assets for utilization of net operating loss carryforward. Out of the balance as ofMarch 31, 2022, ¥6,273 million, if recognized, would favorably impact the effective tax rate in the future
periods. The remaining balance would not favorably impact the effective tax rate as it is expected to increase
operating loss carryforwards and corresponding valuation allowance. The movement of the gross amounts inunrecognized tax benefits during the year ended March 31, 2022 was an increase of ¥31,406 million of which¥29,501 million is presented as a reduction to deferred tax assets for utilization of net operating loss
carryforward. There were no significant movements in the gross amounts of unrecognized tax benefits for theyears ended March 31, 2021. There were also no significant movements of the amount of interest and penalties
recognized due to unrecognized tax benefits during the years ended March 31, 2021, 2022 and 2023. Nomura isunder regular examination by the Japanese National Tax Agency and other taxing authorities in the major tax
jurisdictions in which Nomura operates. Nomura regularly assesses the likelihood of additional assessments ineach tax jurisdiction and the impact on the consolidated financial statements. It is reasonably possible that there
may be an increase or decrease in unrecognized tax benefits within 12 months of March 31, 2023 depending on
the outcome of the examinations. Quantification of an estimated range cannot be made at this time due to theuncertainty of the potential outcomes. However, Nomura does not expect that any change in the gross balance of
unrecognized tax benefits would have a material effect on its financial condition.
Nomura operates in multiple tax jurisdictions, and faces audits from various taxing authorities regarding
many issues including, but not limited to, transfer pricing, the deductibility of certain expenses, foreign tax
credits and other matters.
The table below presents information regarding the earliest year in which Nomura remains subject toexamination in the major tax jurisdictions in which Nomura operates as of March 31, 2023.
Jurisdiction

Fiscal year ended March 31,

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2018(1)
2016(2)
2019(1) The earliest year in which Nomura remains subject to examination for transfer pricing issues is the fiscal
year ended March 31, 2017.
(2) The earliest year in which Nomura remains subject to examination for transfer pricing issues is the fiscal
year ended March 31, 2016.

F-122

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
15. Other comprehensive income (loss):
The following tables present changes in Accumulated other comprehensive income (loss) for the years ended
March 31, 2022 and 2023.

Balance at
beginningof yearMillions of yen
For the year ended March 31, 2022
Other
comprehensive Reclassifications out of
income (loss)
accumulated otherNet change
beforecomprehensive
during thereclassifications
income (loss)
year

Cumulative translation adjustments . . .
Pension liability adjustment(1) . . . . . . . .
Own credit adjustments(2) . . . . . . . . . . .

¥ 18,316(43,477)(12,983)¥118,574(2,156)
46,816¥

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (38,144)¥163,234¥ 2,883

Balance at
beginningof year

22
1,830
1,031

Balance at
end of year

¥118,596 ¥136,912(326) (43,803)
47,84734,864¥166,117¥127,973

Millions of yen
For the year ended March 31, 2023
Other
comprehensive Reclassifications out of
income (loss)
accumulated otherNet change
beforecomprehensive
during thereclassifications
income (loss)
year

Balance at
end of year

Cumulative translation adjustments . . .
Pension liability adjustment(1) . . . . . . . .
Own credit adjustments(2) . . . . . . . . . . .

¥136,912(43,803)
34,864¥109,801
8,615
73,193¥(3,946)
3,014
(196)

¥105,855
11,62972,997¥242,767(32,174)
107,861

Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥127,973¥191,609¥(1,128)¥190,481¥318,454(1) See Note 12 “Employee benefit plans” for further information.
(2) See Note 2 “Fair value measurements” for further information.

F-123

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present significant reclassifications out of Accumulated other comprehensive income(loss) for the years ended March 31, 2022 and 2023.

2022
Reclassifications out ofaccumulated othercomprehensive income (loss)

Millions of yen
For the year ended March 31
2023
Reclassifications out ofaccumulated otherAffected line items in consolidated
comprehensive income (loss)
statements of income

Cumulative translation
adjustments:

¥

¥

(21)
(1)

¥ 4,033
(87)

(22)

3,946

—

—

(22)

¥ 3,946

2022
Reclassifications out ofaccumulated othercomprehensive income (loss)

Revenue—Other /Non-interest expenses—
Other
Income tax expense
Net income (loss)
Net income attributable tononcontrolling interests
Net income (loss) attributable
to NHI shareholders

Millions of yen
For the year ended March 31
2023
Reclassifications out ofaccumulated otherAffected line items in consolidated
comprehensive income (loss)
statements of income

Pension liability
adjustment:¥(2,585)755¥(3,372)
358

Non-interest expenses—
Compensation and benefits /Revenue—Other
Income tax expense(1,830)(3,014)

Net income (loss)——¥(1,830)¥(3,014)F-124

Net income attributable tononcontrolling interests
Net income (loss) attributable
to NHI shareholders

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

2022
Reclassifications out ofaccumulated othercomprehensive income (loss)

Millions of yen
For the year ended March 31
2023
Reclassifications out ofaccumulated otherAffected line items in consolidated
comprehensive income (loss)
statements of income

Own credit adjustments:
Revenue—Net gain on
trading
Income tax expense¥(1,161)
130

¥ 334
(138)

(1,031)

196

Net income (loss)——

Net income attributable tononcontrolling interests¥(1,031)¥ 196

Net income (loss) attributable
to NHI shareholders

16. Shareholders’ equity:
The following table presents changes in shares of the Company’s common stock outstanding for the years
ended March 31, 2021, 2022 and 2023.

2021

Number of SharesYear ended March 31
2022

2023

Common stock outstanding at beginning of year . . . . . . . . . . . . . . . 3,038,587,493 3,063,155,434 3,017,804,012
Decrease of common stock by cancellation of treasury stock . . . . . (260,000,000)——
Common stock held in treasury:
Repurchases of common stock . . . . . . . . . . . . . . . . . . . . . . . . .
(20,129) (80,020,237) (50,016,744)
Sales of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
353
345
296
Common stock issued to employees . . . . . . . . . . . . . . . . . . . .
24,587,717
34,682,592
35,900,087
Cancellation of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . 260,000,000——
Other net change in treasury stock . . . . . . . . . . . . . . . . . . . . . .
—(14,122)(8,327)
Common stock outstanding at end of year . . . . . . . . . . . . . . . . . . . . 3,063,155,434 3,017,804,012 3,003,679,324
The amount available for dividends and acquisition of treasury stock is subject to restrictions imposed by
the Companies Act. Additional paid-in capital and retained earnings include amounts which the Companies Act
prohibits for the use of dividends and acquisition of treasury stock. As of March 31, 2021, 2022 and 2023, theamounts available for distributions were ¥1,232,753 million, ¥1,315,738 million and ¥1,425,642 million,
respectively. These amounts are based on the amounts recorded in the Company’s unconsolidated financial
statements maintained in accordance with accounting principles and practices prevailing in Japan. U.S. GAAP
adjustments incorporated in these consolidated financial statements but not recorded in the Company’s
unconsolidated financial statements have no effect on the determination of the amounts available for distributions
under the Companies Act.
Dividends on the Company’s common stock per share for the years ended March 31, 2021, 2022 and 2023
were ¥35.0, ¥22.0 and ¥17.0, respectively.
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
During the year ended March 31, 2021, due to the cancellation of treasury stock on December 1, 2020, total
number of issued shares and treasury stock decreased by 260,000,000 shares, respectively.
On October 29, 2021, the board of directors approved a repurchase program of Nomura Holdings common
stock in accordance with Article 459-1 of the Companies Act of Japan as follows: (a) total number of sharesauthorized for repurchase is up to 80,000,000 shares, (b) total value of shares authorized for repurchase is up to¥50,000 million and (c) the share buyback will run from November 16, 2021 to March 31, 2022. Under thisrepurchase program, the Company repurchased 80,000,000 shares of common stock at a cost of ¥39,639 million.
On April 26, 2022, the board of directors approved a repurchase program of Nomura Holdings common
stock in accordance with Article 459-1 of the Companies Act of Japan as follows: (a) total number of sharesauthorized for repurchase is up to 50,000,000 shares, (b) total value of shares authorized for repurchase is up to¥30,000 million and (c) the share buyback will run from May 17, 2022 to March 31, 2023. Under this repurchaseprogram, the Company repurchased 50,000,000 shares of common stock at a cost of ¥24,719 million.
In addition to the above, the change in common stock held in treasury includes the change in common stock
issued to employees under stock-based compensation plans, common stock held by affiliated companies,
common stock sold to enable shareholders to hold round lots of the 100 share minimum tradable quantity(adding-to-holdings requests) or common stock acquired to create round lots or eliminate odd lots.
Subsequent Events
On April 26, 2023, the board of directors approved a resolution to set up a share buyback program, pursuant
to the Company’s articles of incorporation set out in accordance with Article 459-1 of the Companies Act asfollows: (a) total number of shares authorized for repurchase is up to 35,000,000 shares, (b) total value of sharesauthorized for repurchase is up to ¥20,000 million and (c) the share buyback program will run from May 16,
2023 to March 29, 2024 (excluding the ten business days following the announcement of quarterly operating
results).
On April 26, 2023, the board of directors approved a resolution to cancel a part of its own shares inaccordance with Article 178 of the Companies Act of Japan. On June 1, 2023, the shares have been cancelled asfollows.
Outline of cancellation
1. Type of shares cancelled : Nomura Holdings, Inc. common shares
2. Number of shares cancelled : 70,000,000 shares
3. Cancellation date : June 1, 2023
17. Regulatory requirements:
In April 2011, the Company has been assigned as Final Designated Parent Company who must calculate aconsolidated capital adequacy ratio and since then, our consolidated capital adequacy ratio has been calculated
based on Capital Adequacy Notice on Final Designated Parent Company. The Capital Adequacy Notice on Final
Designated Parent Company has been revised in line with Basel 2.5 and Basel III and Nomura has calculated a
Basel III-based consolidated capital adequacy ratio since March 2013.
In accordance with Article 2 of the Capital Adequacy Notice on Final Designated Parent Company,
Nomura’s consolidated capital adequacy ratio is calculated based on the amounts of common equity Tier 1
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
capital, Tier 1 capital, total capital, credit risk-weighted assets, market risk and operational risk. As of March 31,
2022 and 2023, the Company was in compliance with common equity Tier 1 capital ratio, Tier 1 capital ratio andconsolidated capital adequacy ratio requirements set out in the Capital Adequacy Notice on Final DesignatedParent Company, etc. The required level (including applicable minimum consolidated capital buffer) as ofMarch 31, 2023 was 7.62% for the common equity Tier 1 capital ratio, 9.12% for the Tier 1 capital ratio and11.12% for the consolidated capital adequacy ratio.
Under the Financial Instruments and Exchange Act (“FIEA”), NSC and NFPS are subject to the capital
adequacy rules of the FSA. These rules require the maintenance of a capital adequacy ratio, which is defined as
the ratio of adjusted capital to a quantified total of business risk, of not less than 120%. Adjusted capital isdefined as net worth (which includes shareholders’ equity, net unrealized gains and losses on securities held,
reserves and subordinated debt) less illiquid assets. Business risks are divided into three categories: (1) market
risks, (2) counterparty risks, and (3) basic risks. Under these rules, there are no restrictions on the operations of
the companies provided that the resulting net capital adequacy ratio exceeds 120%. As of March 31, 2022 and2023, the capital adequacy ratio of NSC exceeded 120%. Also, as of March 31, 2022 and 2023, the capital
adequacy ratio of NFPS also exceeded 120%.
In connection with providing brokerage, clearing, asset management and wealth management services toclients, Nomura maintains segregated accounts to hold financial assets such as cash and securities on behalf of its
clients. These accounts are typically governed by stringent statutory or regulatory rules in the relevant
jurisdiction where the accounts are maintained in order to protect the clients from loss.
As of March 31, 2022 and 2023, the total amount of segregated client cash recognized as an asset in
Deposits with stock exchanges and other segregated cash in the consolidated balance sheets was¥113,052 million and ¥53,970 million, respectively. As of March 31, 2022 and 2023, the total amount ofsegregated securities recognized as assets in Trading assets and Collateralized agreements in the consolidatedbalance sheets was ¥1,103,395 million and ¥1,082,049 million, respectively.
In the U.S., Nomura Securities International, Inc. (“NSI”) is registered as a broker-dealer under the
Securities Exchange Act of 1934 and is a futures commission merchant with the Commodity Futures Trading
Commission (“CFTC”). NSI is also regulated by self-regulatory organizations, such as the Financial Industry
Regulatory Authority (“FINRA”) and the Chicago Mercantile Exchange Group. NSI is subject to the SEC’s
Uniform Net Capital Rule (“Rule 15c3-1”) and other related rules, which require net capital, as defined under thealternative method, of not less than the greater of $1,000,000 or 2% of aggregate debit items arising from clienttransactions. NSI is also subject to CFTC Regulation 1.17 which requires the maintenance of net capital of 8% of
the total risk margin requirement, as defined, for all positions carried in client accounts and nonclient accounts or$1,000,000, whichever is greater. NSI is required to maintain net capital in accordance with the SEC, CFTC, orother various exchange requirements, whichever is greater. Another U.S. subsidiary, Nomura Global Financial
Products Inc. (“NGFP”) is registered as an OTC Derivatives Dealer under the Securities Exchange Act of 1934.
NGFP registered with CFTC as a Swap Dealer on October 6, 2021 and registered with the Securities andExchange Commission (“SEC”) as a Security Based Swap Dealer on November 1, 2021. NGFP calculates capital
under SEC rule 18a-1 and CFTC rule 23.101 and requires the greater of $20,000,000, 2% of the SEC risk margin
amount or 2% of the CFTC risk margin amount. Another U.S. subsidiary, Instinet, LLC (“ILLC”) is a brokerdealer registered with the SEC and is a member of FINRA. Further, ILLC is an introducing broker registeredwith the CFTC and a member of the National Futures Association and various other exchanges. ILLC is subject
to Rule 15c3-1 which requires the maintenance of minimum net capital, as defined under the alternative method,
equal to the greater of $1,000,000, 2% of aggregate debit items arising from client transactions, or the CFTC
minimum requirement. Under CFTC rules, ILLC is subject to the greater of the following when determining its
minimum net capital requirement: $45,000 minimum net capital required as a CFTC introducing broker; theF-127

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
amount of adjusted net capital required by a futures association of which it is a member; and the amount of net
capital required by Rule 15c3-1(a). As of March 31, 2022 and 2023, NSI, NGFP and ILLC were in compliancewith relevant regulatory capital related requirements.
In Europe, Nomura Europe Holdings plc (“NEHS”) is subject to consolidated regulatory supervision by the
Prudential Regulation Authority (“U.K. PRA”) as a U.K. Parent Financial Holding Company. The regulatory
consolidation is produced in accordance with the requirements established under the Financial Services andMarkets Act 2000, U.K. Capital Requirements Regulations and the PRA Rulebook. Nomura International plc(“NIP”), the most significant of NEHS’ subsidiaries, acts as a securities brokerage and dealing business. NIP is
also regulated by the U.K. PRA and has minimum capital adequacy requirements imposed on it on a standalone
basis. As a non-U.S. swap dealer and securities based swap dealer NIP is also subject to the regulations of the
CFTC and SEC under the Dodd Frank Act. In addition, Nomura Bank International plc (“NBI”), anothersubsidiary of NEHS, is also regulated by the U.K. PRA on a standalone basis. NEHS also has a number ofEuropean domiciled subsidiaries including Nomura Financial Products Europe GmbH (“NFPE”), a Nomura
subsidiary domiciled in Germany which is regulated by the German regulator (“BaFin”) and is subject to the EU
Capital Requirements Regulation and local German regulations and Banque Nomura France (“BNF”), a Nomura
subsidiary domiciled in France which is regulated by the French regulator (“ACPR”) and is also subject to the
EU Capital Requirements Regulation and local French regulations. As of March 31, 2022 and 2023, NEHS, NIP,
NBI, NFPE and BNF were in compliance with relevant regulatory capital related requirements.
In Asia, Nomura International (Hong Kong) Limited (“NIHK”) and Nomura Singapore Ltd (“NSL”) areregulated by their local respective regulatory authorities. NIHK is licensed by the Securities and Futures
Commission in Hong Kong to carry out regulated activities including sales, trading and clearing in securities andfutures contracts, advising on securities, futures contracts and corporate finance and wealth management.
Activities of NIHK, including its branch in Taiwan, are subject to the Securities and Futures (Financial
Resources) Rules which require it, at all times, to maintain liquid capital at a level not less than its required liquid
capital. Liquid capital is the amount by which liquid assets exceed ranking liabilities. Required liquid capital iscalculated in accordance with provisions laid down in the Securities and Futures (Financial Resources) Rules.
NSL is a licensed merchant bank regulated by the Monetary Authority of Singapore (“MAS”). NSL carries out
its regulated activities including, among others, fixed income and securities sales and trading business, advisingon securities, corporate finance and wealth management. NSL is regulated and has minimum capital adequacy
requirements imposed on it, including its branch in the Dubai International Financial Centre, by the MAS in
Singapore. NIHK and NSL have been compliant with relevant regulatory capital related requirements.
18. Affiliated companies and other equity-method investees:
Nomura’s significant affiliated companies and other equity-method investees include Nomura ResearchInstitute, Ltd. (“NRI”) and Nomura Real Estate Holdings, Inc. (“NREH”). Also, Nomura invests in American
Century Companies, Inc., that is measured at fair value on a recurring basis through election of the fair value
option. See Note 2 “Fair value measurements” for further information.
NRI
NRI develops and manages computer systems and provides research services and management consulting
services. One of the major clients of NRI is Nomura.
Nomura has sold 14,105,000 ordinary shares it held at ¥50,002 million to NRI in response to its own share
repurchase through off-floor trading (ToSTNeT-3) on June 22, 2021. As a result of the transaction, a gain of¥36,249 million was recognized in earnings within Revenue—Other during the year ended March 31, 2022.
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Further, Nomura has sold 15,000,000 ordinary shares it held at ¥57,870 million to third parties, throughblock trades on March 23, 2022. As a result of the transaction, a gain of ¥42,798 million was recognized inearnings within Revenue—Other during the year ended March 31, 2022.
Nomura has participated in a secondary offering at Nomura Research Institute as a seller on December 5,
2022, and sold 13,000,000 ordinary shares it held at ¥37,528 million to third parties. As a result of thetransaction, a gain of approximately ¥28.0 billion was recognized in earnings within Revenue—Other during theyear ended March 31, 2023. NRI remains an equity method affiliate of NHI.
As of March 31, 2022 and 2023, Nomura’s ownership of NRI was 24.5% and 22.3% respectively.
NREH
NREH is the holding company of the Nomura Real Estate Group which is primarily involved in theresidential property development, leasing, investment management as well as other real estate-related activities.
As of March 31, 2022 and 2023, Nomura’s ownership of NREH was 36.6% and 37.5% respectively.
As of March 31, 2022 and 2023, the carrying value of the investments in equity method investees in theaggregate exceeded Nomura’s equity in the underlying net assets of these equity method investees by¥20,393 million and ¥23,640 million, respectively, and such excess primarily represented equity method
goodwill for each significant equity method investee, except for certain equity method investees including NREH
for which Nomura’s carrying value was below Nomura’s equity in the underlying net assets of the investees.
Summary financial information—
The following tables present summarized financial information for significant affiliated companies of
Nomura (including those elected for the fair value option) as of March 31, 2022 and 2023, and for the years
ended March 31, 2021, 2022 and 2023.
Millions of yen
March 312022
2023

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2021

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to affiliated companies . . . . . . . . . . . . . . . . . .

¥3,009,394
1,984,043¥3,135,710
2,006,590

Millions of yen
Year ended March 312022¥ 909,616
737,200
124,163¥1,041,000
786,391
179,706

2023¥1,079,609
838,005
179,073

The following tables present a summary of balances and transactions with affiliated companies and other
equity-method investees as of March 31, 2022 and 2023, and during the years ended March 31, 2021, 2022 and2023. Investments in American Century Companies, Inc., for which fair value option was elected, are notincluded in Investments in affiliated companies in the following table and are reported within Other assets—
Other in the consolidated balance sheets. In addition, dividends received for investments in affiliates for which
F-129

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
fair value option was elected are not included in Revenues in the following table and are reported within Interestand dividends in the consolidated statements of income.
Millions of yen
March 312022
2023

Investments in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 363,281 ¥ 398,485
Advances to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,000
4,000
Other receivables from affiliated companies(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,75425,415
Other payables to affiliated companies(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30,61731,074(1) Includes ROU assets of ¥23,899 million and ¥23,311 million as of March 31, 2022 and 2023, respectively.
(2) Includes operating lease liabilities of ¥23,899 million and ¥23,311 million as of March 31, 2022 and 2023,
respectively.

2021

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of software, securities and tangible assets . . . . . . . . . . . . . . .

¥Millions of yen
Year ended March 31
2022

2,240
50,753
14,407¥2,660
50,004
12,760

¥

2023

2,795
50,966
19,602

The following table presents the aggregate carrying amount and fair value of investments in affiliatedcompanies and other equity-method investees for which a quoted market price is available as of March 31, 2022
and 2023.
Millions of yen
March 31
2022
2023

Carrying amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 341,935 ¥ 363,792
Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
772,243593,883
The following table presents equity in earnings of and dividends from equity-method investees, for the years
ended March 31, 2021, 2022 and 2023.

2021

Equity in earnings of equity-method investees(1).................
Dividends from equity-method investees . . . . . . . . . . . . . . . . . . . . . . .

¥Millions of yen
Year ended March 31
2022

26,812
11,096¥32,083
11,848¥2023

47,48013,354(1) Equity in earnings of equity-method investees is reported within Revenue-Other in the consolidated
statements of income.

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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
19. 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 theclients. 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 as commitments to extend credit.
Nomura has commitments to invest in various partnerships and other entities and also has commitments toprovide financing for investments related to these partnerships. The outstanding commitments under these
agreements are included below as commitments to invest.
The following table presents a summary of the key types of outstanding commitments provided by Nomura
as of March 31, 2022 and 2023.
Millions of yen
March 31, 2022 March 31, 2023

Commitments to extend credit
Liquidity facilities to central clearing counterparties . . . . . . . . . . . . . . . . . . . .
Other commitments to extend credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,135,695
877,156¥1,623,897
1,010,332

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,012,851¥2,634,229

Commitments to invest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥¥32,28621,994

Maturity profile of these commitments as of March 31, 2023:
Millions of yen
Years to maturity
Less than
1 to 33 to 5
1 year
years
years

Total
contractual
amountMore than
5 years

Commitments to extend credit
Liquidity facilities to central clearing
counterparties . . . . . . . . . . . . . . . . . . . . . . .
Other commitments to extend credit . . . . . . .

¥1,623,897
1,010,332¥1,623,897
199,120¥—
289,991¥—
338,978¥

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,634,229¥1,823,017¥289,991¥338,978¥182,243

Commitments to invest . . . . . . . . . . . . . . . . . . . . .

¥

¥

¥

¥

¥ 15,504

21,994

195

1,292

5,003

—
182,243

The contractual amounts of these commitments to extend credit represent the maximum amounts at risk
assuming the contracts are fully drawn upon, should all the counterparties default, and the value of all collateralor credit mitigations becomes worthless. The total contractual amount of these commitments may not represent
actual future cash outflows 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 and quality ofcollateral held. Nomura evaluates each client’s creditworthiness on a case-by-case basis. The amount of collateralobtained, if deemed necessary by Nomura upon extension of credit, is based on credit evaluation of thecounterparty.
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other commitments
Purchase obligations for goods or services that include payments for construction-related, advertising, andcomputer and telecommunications maintenance agreements amounted to ¥98,214 million as of March 31, 2022
and ¥99,134 million as of March 31, 2023.
As of March 31, 2023, these purchase obligations had the following maturities:

Purchase obligations . . . . . . . . . . . . . . . . . .

Total

Less than
1 yearMillions of yen
Years of payment
1 to 2
2 to 33 to 4
years
years
years

¥99,134¥21,501¥7,767¥3,119¥63,879

4 to 5years

More than
5 years¥927¥1,941

Above table includes the commitment to purchase parts of the redeveloped real estate in Tokyo Nihonbashi
district from the redevelopment association.
Nomura has commitments under resale and repurchase agreements including amounts in connection withcollateralized agreements and collateralized financing. These commitments amounted to ¥1,565 billion for resaleagreements and ¥2,673 billion for repurchase agreements as of March 31, 2022 and ¥1,143 billion for resaleagreements and ¥2,146 billion for repurchase agreements as of March 31, 2023.
Nomura has commitments to purchase notes held by our clients. These commitments amounted to¥15 billion as of March 31, 2022 and ¥14 billion as of March 31, 2023.
In Japan, there is a market in which participants lend and borrow debt and equity securities without
collateral to and from financial institutions. Under these arrangements, Nomura had obligations to return debt
and equity securities borrowed without collateral of ¥1,219 billion and ¥952 billion as of March 31, 2022 and2023, respectively.
As a member of various securities clearing houses and exchanges, Nomura may be required to assume acertain share of the financial obligations of another member who may default on its obligations to the clearing
house or the exchange. These guarantees are generally required under the membership agreements. To mitigate
these risks, exchanges and clearing houses often require members to post collateral. The potential for Nomura to
make payments under such guarantees is deemed remote.
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 otheradvisory costs incurred to support and formulate a defense.
The ability to predict the outcome of these actions and proceedings is inherently difficult, particularly whereclaimants are seeking substantial or indeterminate damages, where investigations and legal proceedings are at an
early stage, where the matters present novel legal theories or involve a large number of parties, or which takeplace in foreign jurisdictions with complex or unclear laws.
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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”), theCompany recognizes a liability for this risk of loss arising on each individual matter when a loss is probable andthe amount of such loss or range of loss can be reasonably estimated. The amount recognized as a liability isreviewed at least quarterly and is revised when further 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, noliability is recognized. However, where a material loss is reasonably possible, the Company will disclose detailsof the legal proceeding or claim below. Under ASC 450 an event is defined as reasonably possible if the chanceof the loss to the Company is more than remote but less than probable. As of March 31, 2021, 2022 and 2023, a
total liability of ¥62,889 million, ¥76,866 million and ¥42,459 million has been recognized, respectively, andreported within the consolidated balance sheets within Other liabilities in respect of outstanding and unsettledinvestigations, lawsuits and other legal proceedings where loss is considered probable and the amount of suchloss can be reasonably estimated. Total expenses recognized through earnings during the year ended March 31,
2021 and 2022 were ¥41,131 million and ¥63,338 million, respectively, which has been reported within the
consolidated statements of income within Non-interest expenses—Other. Total expenses recognized throughearnings during the year ended March 31, 2023 was immaterial.
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, theultimate resolution of these actions and proceedings will not be material to the Company’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 amountof reasonably possible loss, or range of 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 June 28, 2023, for those cases where an estimate of the range of reasonably
possible losses can be made, the Company estimates that the total aggregate reasonably possible maximum loss
in excess of amounts recognized as a liability (if any) against these cases is approximately ¥51 billion.
For certain other significant actions and proceedings, the Company is unable to provide an estimate of thereasonably possible loss or range of reasonably possible losses because, among other reasons, (i) the proceedings
are at such an early stage there is not enough information available to assess whether the stated grounds for theclaim 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 be dispositive, 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
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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
liquidation since 2000. An Italian Supreme Court judgment in June 2019 confirmed that an amount ofapproximately EUR 38 million (comprised of tax credit refunds plus accrued interest), plus further interest, waspayable by IBJN to the Italian tax authorities.
In October 2010 and June 2012, two actions were brought against 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 to Bernard 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 theState 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.
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 to each loan and addressed characteristics of the borrowers and properties.
The representations included, but were not limited to, information concerning the borrower’s credit status, theloan-to-value ratio, the owner occupancy status of the property, the lien position, the fact that the loan was
originated in accordance with the originator’s guidelines, and the fact that the loan was originated in compliancewith 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 bewithout merit or agreed to repurchase certain loans for those claims that the relevant subsidiaries determined tohave 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 werebrought within the six-year statute of limitations for breach of contract actions have survived motions to dismissand discovery was completed and Notes of Issue were filed. The Company has been engaged in efforts to resolve
the actions outside of Court; certificateholder approval has been obtained for five settlement agreements and the
Court is currently reviewing the agreements for approval.
A monoline insurer, Ambac Assurance Corp (“Ambac”), brought an action in April 2013 against Nomura
Credit & Capital, Inc. (“NCCI”) and Nomura Holding America Inc. (“NHA”) alleging breach of contract withrespect to representations concerning specific loan characteristics and fraud in the inducement of the insurance
F-134

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
contract based on misrepresentations concerning the loans for two trusts insured by Ambac. The court dismissed
all claims against NHA. Ambac and NCCI resolved all claims and the action was dismissed pursuant to a
stipulation filed January 3, 2023.
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 date proceedings 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 recoverfrom NIP is approximately $24.4 million plus interest.
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 toenter 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 were conducted 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 asettlement in relation to this matter. As part of the agreement, the Transactions were unwound at a discount of
EUR 440 million in favour of MPS and the civil proceedings between MPS and NIP in Italy and England,
respectively, will no longer be pursued. Pursuant to the settlement agreement MPS and NIP applied to the Italian
Courts to discontinue the proceedings brought by MPS against NIP. These proceedings have since been
discontinued.
In April 2013, an investigation was commenced by the Public Prosecutor’s office in Siena, Italy, into
various allegations against MPS and certain of 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 wasseeking to indict 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 theindictment concluded on October 1, 2016, the Judge ordering the trial of all individuals and banks involved
except for MPS (which entered into a plea bargaining agreement with the Public Prosecutor). The trial
commenced in December 2016. As part of these proceedings, a number of civil claimants have been permitted tobring 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 offalse accounting, market manipulation and obstructing the supervisory activities of CONSOB and that NIP had
F-135

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
breached Italian corporate liability legislation. In so doing it imposed a fine of EUR 3.45 million on NIP as wellas ordering confiscation of EUR 88 million. On May 12, 2020, the court issued the detailed reasoning for theverdict (including the rationale for the penalties imposed). NIP appealed the decision to the Milan Court ofAppeal. On May 6, 2022, the Milan Court of Appeal delivered its oral verdict, overturning the first instancejudgment 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 the Supreme Court.
In addition, NIP is involved in a number of separate civil or administrative matters relating to theTransactions 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
and a member of MPS’s internal audit board, and sought monetary damages of approximately EUR 434 million
plus interest, as well as non-monetary damages in an amount left to be quantified by the Judge. In July 2021, thecourt rejected all of Alken’s claims. In February 2022, Alken appealed the decision to the Milan Court of Appeal.
In May 2019, a claim before the Italian Courts brought by York Global Finance Offshore BDH(Luxembourg) Sàrl and a number of seemingly related funds was served on NIP. The claim is made against NIP,
MPS, two MPS former directors and a member of MPS’s internal audit board, and seeks monetary damages ofapproximately EUR 186.7 million plus interest, as well as non-monetary damages in an amount left to bequantified by the Judge.
Additionally, NIP was served by the Commissione Nazionale per le Società e la Borsa (“CONSOB”, theItalian financial regulatory authority) with a notice commencing administrative sanction proceedings for market
manipulation in connection with the Transactions. In relation to the Transactions, 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 decision in which it levied EUR 100,000 fines in relation to each of the twoformer 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 thefines 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 ItalianSupreme Court.
In June 2016 and August 2016, 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 and certain individuals by Cathay United Bank, Co., Ltd., Taiwan
Cooperative Bank Ltd., Chang Hwa Commercial Bank Ltd., Taiwan Business Bank Ltd., KGI Bank and Hwatai
Bank Ltd. (collectively, “Syndicate Banks”). The Syndicate Banks’ complaint relates to a $60 million syndicatedterm loan to a subsidiary of Ultrasonic AG that was arranged by NIHK, and made by the Syndicate Banks
together with NSIS. The Syndicate Banks’ allegations in the complaint included allegations that NIHK failed tocomply with its fiduciary duties to the lenders as the arranger of the loan and the Syndicate Banks sought torecover approximately $48 million in damages, plus interest. By judgment dated June 2, 2022, the Taipei District
F-136

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Court dismissed the Syndicate Banks’ claims in entirety. On July 4, 2022, a Statement of Appeal was filed by 5of the 6 Syndicate Banks (Cathay United Bank Co., Ltd., Taiwan Cooperative Bank Ltd., Chang Hwa
Commercial Bank Ltd., Taiwan Business Bank Ltd. and Hwatai Bank Ltd., 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 was approximately $42.6 million in damages, plus interest. The Appellants’ appeal was
dismissed on August 30, 2022. The Taipei District Court judgment dated June 2, 2022, dismissing the Syndicate
Banks’ claims, became final and binding on September 19, 2022.
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 andfined 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 the Southern District of New York alleging violations of U.S. antitrust law inrelation to the alleged manipulation of the primary and secondary markets for EGB. NSI has been dismissed fromthe action.
Additionally, NIP and NSI were named as defendants in a separate class action filed in the Toronto Registry
Office of the Federal Court of Canada alleging violations of Canadian competition law relating to the alleged
manipulation of the market for supranational, sub-sovereign and agency bonds. In October 2022, subject toapproval by the Federal Court of Canada, NIP and NSI have agreed to settle the class 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, pricemanipulation and false statements provisions of the Commodity Exchange Act in relation to a 2015 interest rate
swap transaction.
Nomura also responded to requests for information from the CFTC in relation to compliance with records
preservation requirements relating to the use of non-Nomura approved messaging platforms for business
communications. In September 2022, Nomura agreed to pay a $50 million civil monetary penalty and to comply
with certain non-monetary undertakings ordered by the CFTC.
NSI also responded to requests for information from the Securities and Exchange Commission (“SEC”) in
connection with an investigation of compliance with records preservation requirements relating to the use of
non-Nomura approved messaging platforms for business communications. In September 2022, NSI agreed to pay
a $50 million civil monetary penalty and to comply with certain non-monetary undertakings ordered by the SEC.
The SEC and the United States Department of Justice (“DOJ”) investigated past activities of several former
employees of NSI in respect of commercial and residential mortgage-backed securities transactions in thesecondary market. In July 2019, NSI entered into settlements with the SEC concerning its supervision of certain
former employees, and the investigation has concluded. The investigation by the DOJ has been ongoing and NSI
has been cooperating fully.
F-137

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In September 2017 and November 2017, NIHK and 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 Bankof 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 the defendants. The FT Syndicate Banks seek to recover approximately $68 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 Group premises in Frankfurt were raided
by the public prosecutor in April 2023 for the purpose of obtaining additional data and documents. It appears thatthe investigation 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, theindividuals could face criminal sanctions and Nomura Group entities could face administrative sanctions such asadministrative fines or profit confiscation orders.
Stichting Vestia, a Dutch housing association and former counterparty, asserted a claim against NIP relating
to derivative transactions entered into between Vestia and NIP between 2009 and 2011. On February 1, 2022,
Vestia commenced proceedings against NIP in the English Courts. The proceedings alleged that the transactions
were void because Vestia lacked the capacity and/or the authority to enter into them. Vestia sought restitution ofa net amount of approximately EUR 153.5 million plus interest in respect of those transactions. In December
2022, NIP, with no admission of liability or wrongdoing, entered into a confidential settlement agreement with
Vestia pursuant to which the parties settled all claims relating to the Transactions.
In the context of a secured financing and the enforcement of the related pledge agreements following eventsof default attributable to the counterparty, on February 8, 2022, two former pledgors served a formal noticestating their intention to commence legal proceedings against Nomura European Investment Limited (“NEI”) as
lender and NIP as security agent. The pledgors alleged that there had been certain valuation errors in relation to
enforcement of the related pledge agreements and sought compensation from NEI or, alternatively, from NIP. On
November 9, 2022, NEI and NIP entered into a settlement agreement with the pledgors to resolve the potential
claim with no admission of liability or wrongdoing.
In August and October 2022, Nomura Financial Advisory and Securities (India) Private Limited (“NFASI”)
was served with two 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 two of the sellers 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 2.6 billion in damages, plus interest.
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.
F-138

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In addition, Nomura enters into certain derivative contracts that meet the accounting definition of aguarantee, 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 theaccounting definition of guarantees in the disclosure below.
For information about the maximum potential amount of future payments that Nomura could be required tomake 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 betheoretically unlimited.
The notional amounts do not represent anticipated losses from these derivatives contracts. As Nomura
measures all derivative contracts at fair value, 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 certainof 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 312022

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

2023

Carryingvalue

Maximum
potential
payout /Notional total

Carryingvalue

Maximum
potential
payout /Notional total¥6,151,646—¥393,709,887
1,698,193¥8,983,145—¥514,420,432
1,544,159(1) Credit derivatives are disclosed in Note 3 “Derivative instruments and hedging activities” and are excluded
from above.
(2) Derivative contracts primarily consist of equity, interest rate and foreign exchange contracts.
(3) 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 theguarantee.
The following table presents maturity information on Nomura’s derivative contracts that could meet theaccounting definition of a guarantee and standby letters of credit and other guarantees as of March 31, 2023.

Carrying
value

Total

Millions of yen
Maximum potential payout/NotionalYears to Maturity
Less than
1 year1 to 3 years
3 to 5 years

More than
5 years

Derivative contracts . . . . . . ¥8,983,145 ¥514,420,432 ¥100,153,216 ¥197,535,388 ¥66,032,944 ¥150,698,884
Standby letters of credit
and other guarantees . . .
—1,544,159
1,517,287
15,903
10,258711
F-139

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
20. Segment and geographic information:
Operating segments—
We established our Investment Management Division to replace our former Asset Management Divisionand the Merchant Banking Division on April 1, 2021. Accordingly, our operating management and management
reporting are prepared based on our Retail, Investment Management and Wholesale Divisions. We havedisclosed business segment information in accordance with this structure.
The accounting policies for segment information generally 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 resultsof each respective segment. Revenues and expenses that are not directly attributable to a particular segment areallocated 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 monitors interest revenue net of interest expense for its operating decisions. Business segments’
information on total assets is not disclosed because management does not consider such information for its
operating decisions and therefore, it is not reported to management.
Certain comparative amounts have been reclassified to conform to the current year’s presentation, in
accordance with the realignment in April 2021.
Millions of yen
RetailInvestment
Management

Wholesale(1)(2)(3)(4)

Other(Incl. elimination)

Total

Year ended March 31, 2021
Non-interest revenue . . . . . . . . . . . . . .
Net interest revenue . . . . . . . . . . . . . . .

¥366,271
2,538¥153,523
9,627¥524,019
167,337¥205,411(38,399)¥1,249,224
141,103

Net revenue . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . .

368,809
276,480

163,150
72,142

691,356
627,051

167,012
195,528

1,390,327
1,171,201

Income (loss) before income taxes . . . .

¥ 92,329¥ 91,008¥ 64,305¥ (28,516)¥ 219,126

Year ended March 31, 2022
Non-interest revenue . . . . . . . . . . . . . .
Net interest revenue . . . . . . . . . . . . . . .

¥324,642
3,343¥129,848
18,145¥617,227
85,828¥232,437(53,203)¥1,304,154
54,113

Net revenue . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . .

327,985
268,745

147,993
76,478703,055
628,563

179,234
163,481

1,358,267
1,137,267

Income (loss) before income taxes . . . .

¥ 59,240¥ 71,515¥ 74,492¥ 15,753¥ 221,000

Year ended March 31, 2023
Non-interest revenue . . . . . . . . . . . . . .
Net interest revenue . . . . . . . . . . . . . . .

¥297,496
2,695¥120,096
8,463¥809,681(37,301)¥175,034(10,316)¥1,402,307(36,459)

Net revenue . . . . . . . . . . . . . . . . . . . . .
Non-interest expenses . . . . . . . . . . . . .

300,191
266,695

128,559
85,064

772,380743,011

164,718
91,333

1,365,848
1,186,103

Income (loss) before income taxes . . . .

¥ 33,496¥ 43,495¥ 29,369¥ 73,385¥ 179,745

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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(1) Non-interest revenue and Non-interest expense for the year ended March 31, 2021 include losses of¥245,749 million arising from the U.S. Prime Brokerage Event. The losses are reported within Net gain on
trading in the amount of ¥(204,188) million and in Non-interest expenses—Other in the amount of¥41,561 million in the consolidated statements of income(2) Non-interest revenue and Non-interest expense for the year ended March 31, 2022 include losses of¥65,362 million arising from the U.S. Prime Brokerage Event. The losses are reported within Net gain on
trading in the amount of ¥(56,073) million and in Non-interest expenses—Other in the amount of¥9,289 million in the consolidated statements of income.
(3) Non-interest revenue and Non-interest expense for the year ended March 31, 2022 include gains of¥14,696 million, as the recoverable amount for a part of the claim related to the loss arising from the U.S.
Prime Brokerage Event was reasonably estimated. The gains are reported within Net gain on trading in theamount of ¥12,161 million and in Non-interest expenses—Other in the amount of ¥(2,535) million in the
consolidated statements of income.
(4) Non-interest revenue and Non-interest expense for the year ended March 31, 2023 include gains of¥12,025 million, as the recoverable amount for a part of the claim related to the loss arising from the
U.S. Prime Brokerage Event was reasonably estimated and collected. The gains are reported within Net gain
on trading in the amount of ¥9,954 million and in Non-interest expenses—Other in the amount of ¥(2,071)
million in the consolidated statements of income.
Transactions between operating segments are recorded within segment results based on commercial terms
and conditions and are eliminated in “Other.”
The following table presents the major components of Income (loss) before income taxes in “Other” for theyears ended March 31, 2021, 2022 and 2023.

2021

Millions of yen
Year ended March 31
2022

Net gain (loss) related to economic hedging transactions . . . . . . . . . . . . .
Realized gain on investments in equity securities held for operating
purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings of affiliates(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate items(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other(3)(4)(5)(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (11,450) ¥Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2023(9,937) ¥(4,846)

1,731(16,410)
4,956(7,343)

1,355
36,790(91,073)
78,61828,38547,744(12,590)
14,692¥ (28,516) ¥15,753¥73,385(1) Includes an impairment loss of ¥47,661 million recognized in respect of Nomura’s investment in Nomura
Real Estate holdings, Inc. during the year ended March 31, 2021. Based on the period and extent to which
the share price of the investee (and therefore its estimated fair value) was below the carrying value of theinvestment, Nomura determined the impairment was other-than-temporary and an impairment loss wasrecognized through earnings. The loss was reported within Non-interest expenses—Other in the consolidated
statements of income.
(2) Income before income taxes for the year ended March 31, 2022 includes a loss of approximately¥62.0 billion related to legacy transactions in the U.S. from before the global financial crisis (2007 – 2008)
that was recognized including legal expenses as well as certain transactions intended to mitigate future
losses.

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NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(3) Loss before income taxes for the year ended March 31, 2021 includes a gain of ¥ 71,075 million which
represents the difference between the fair value of the assets acquired and the carrying value of the assets
transferred by Nomura as a result of the rights conversion of the Tokyo Nihonbashi district redevelopment
project.
(4) Income before income taxes for the year ended March 31, 2022 includes a gain of approximately¥79.0 billion from the partial sale of Nomura’s investment in the ordinary shares of Nomura ResearchInstitute, Ltd.
(5) Income before income taxes for the year ended March 31, 2023 includes a gain of approximately¥28.0 billion from the sale of Nomura Research Institute, Ltd. ordinary shares.
(6) Includes the impact of Nomura’s own creditworthiness.
The table below presents reconciliations of the combined business segments’ results included in thepreceding table to Nomura’s reported Net revenue, Non-interest expenses and Income (loss) before income taxes
in the consolidated statements of income for the years ended March 31, 2021, 2022 and 2023.
Millions of yen
Year ended March 31
2022

2021

2023

Net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain (loss) on investments in equity securities held for
operating purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,390,327¥1,358,267¥1,365,848

11,545

5,623(30,271)

Consolidated net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,401,872¥1,363,890¥1,335,577

Non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain (loss) on investments in equity securities held for
operating purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,171,201¥1,137,267¥1,186,103

—

—

—

Consolidated non-interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,171,201¥1,137,267¥1,186,103

Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain (loss) on investments in equity securities held for
operating purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 219,126¥ 221,000¥ 179,745

11,545

5,623(30,271)

Consolidated income (loss) before income taxes . . . . . . . . . . . . . . . . . . .

¥ 230,671¥ 226,623¥ 149,474(1) Includes a reversal of unrealized gain (loss) on investments in equity securities held for operating purposesthat were sold in the years ended March 31, 2021, 2022 and 2023.
Geographic information—
Nomura’s identifiable assets, revenues and expenses are generally allocated based on the country of
domicile of the legal entity providing the service. 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, havebeen made in presenting the following geographic data.
The tables below present a geographic allocation of Net revenue and Income (loss) before income taxes fromoperations by geographic areas for the years ended March 31, 2021, 2022 and 2023 and Long-lived assets
associated with Nomura’s operations as of March 31, 2021, 2022 and 2023. Net revenue in Americas and Europe
in the table substantially represents Nomura’s operations in the U.S. and the U.K., respectively. Net revenue andF-142

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Long-lived assets have been allocated based on transactions with external customers while Income (loss) before
income taxes has been allocated based on the inclusion of intersegment transactions.

2021(2)Millions of yen
Year ended March 312022(2)2023(3)

Net revenue(1)(3):
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia and Oceania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 226,741
142,941
66,985¥ 289,571
131,39385,081¥ 290,036
163,977
68,817

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

436,667
965,205

506,045857,845522,830
812,747

Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,401,872¥1,363,890¥1,335,577

Income (loss) before income taxes(3):Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia and Oceania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (76,963) ¥ (40,950) ¥ (51,743)
14,283(21,774)
9,206
49,20528,58631,003

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13,475)
244,146(34,138)
260,761(11,534)
161,008

Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 230,671¥ 226,623¥ 149,474(1) There is no revenue derived from transactions with a single major external customer.
(2) Includes losses arising from the U.S. Prime Brokerage Event.
(3) Includes gains from the estimated recoverable amounts and collected amounts for a part of the claim related
to the loss arising from the U.S. Prime Brokerage Event.
Millions of yen
Year ended March 31
2021
2022
2023

Long-lived assets:
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 98,611 ¥103,045 ¥114,946
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65,16553,64353,161
Asia and Oceania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,69023,60023,839Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

190,466
303,355

180,288269,135

191,946
308,941

Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥493,821¥449,423¥500,887

21. Related party transactions
Nomura makes loans to certain of its directors and other related parties. Outstanding loans to its directors
and other related parties were not considered significant.

F-143

NOMURA HOLDINGS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
22. Supplementary subsidiary guarantee information required under SEC rules:
The Company provides several guarantees of debts of its subsidiaries.
The Company has fully and unconditionally guaranteed the securities issued by Nomura America Finance
LLC (“NAFL”), which is an indirect, wholly owned finance subsidiary of the Company. NAFL operates as a
special purpose entity. It was formed for the purpose of issuing debt securities to repay existing credit facilities,
refinance indebtedness, and for acquisition purposes. The guarantee will remain in effect until the entire
principal, if any, of, and interest and premium, if any, on, the securities has been paid in full or discharged inaccordance with the provisions of the indenture, or otherwise fully defeased by the Company.

F-144

INDEX OF EXHIBITS
Exhibit
NumberDescription

1.1

Articles of Incorporation of Nomura Holdings, Inc. (English translation) (filed on June 24, 2022 as an
exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein by reference)

1.2

Share Handling Regulations of Nomura Holdings, Inc. (English translation) (filed on June 28, 2023 as an
exhibit to the Original Filing and incorporated herein by reference)

1.3

Regulations of the Board of Directors of Nomura Holdings, Inc. (English translation) (filed on June 24, 2022
as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein byreference)

1.4

Regulations of the Nomination Committee of Nomura Holdings, Inc. (English translation) (filed on June 23,
2016 as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein byreference)

1.5

Regulations of the Audit Committee of Nomura Holdings, Inc. (English translation) (filed on June 24, 2022
as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein byreference)

1.6

Regulations of the Compensation Committee of Nomura Holdings, Inc. (English translation) (filed onJune 27, 2012 as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated
herein by reference)

2.1

Form of Deposit Agreement among Nomura Holdings, Inc., The Bank of New York Mellon as depositary
and all owners and holders from time to time of American Depositary Receipts, including the form ofAmerican Depositary Receipt (filed on April 28, 2010 as an exhibit to the Registration Statement on
Form F-6 (File No. 333-166346) and incorporated herein by reference)

2.2

Description of rights of each class of securities registered under Section 12 of the Securities Exchange Act of1934 (filed on June 24, 2022 as an exhibit to the Annual Report on Form 20-F (File No. 001-15270) andincorporated herein by reference)

4.1

Form of Limitation of Liability Agreement (1) (filed on June 28, 2023 as an exhibit to the Original Filing andincorporated herein by reference)

8.1

Subsidiaries of Nomura Holdings, Inc.—See Item 4.C. “Organizational Structure” in this annual report.
(filed on June 28, 2023 as an exhibit to the Original Filing and incorporated herein by reference)

11.1

Nomura Group Code of Conduct 2023 (English translation) (filed on June 28, 2023 as an exhibit to theOriginal Filing and incorporated herein by reference)

11.2

Nomura Group Code of Ethics for Financial Professionals (English translation) (filed on June 30,2020 as an
exhibit to the Annual Report on Form 20-F (File No. 001-15270) and incorporated herein by reference)

12.1

Certification of the principal executive officer required by 17 C.F.R. 240. 13a-14(a)12.2

Certification of the principal financial officer required by 17 C.F.R. 240. 13a-14(a)13.1

Certification of the chief executive officer required by 18 U.S.C. Section 1350

13.2

Certification of the chief financial officer required by 18 U.S.C. Section 1350

15.1

Consent of Ernst & Young ShinNihon LLC, an independent registered public accounting firm

17.1

Subsidiary Issuer of Registered Guaranteed Securities (filed on June 28, 2023 as an exhibit to the Original
Filing and incorporated herein by reference)

97.1

Nomura Holdings, Inc. Compensation Recovery Policy

101.INS

Inline XBRL Instance Document—the instance document does not appear in the Interactive Data Filebecause its XBRL tags are embedded within the Inline XBRL document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit
NumberDescription

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

The cover page for the Company’s Annual Report on Form 20-F for the year ended March 31, 2023, hasbeen formatted in Inline XBRL

(1) The Company has entered into Limitation of Liability Agreements substantially in the form of this exhibitwith all of its outside directors and director Shoji Ogawa.
The Company has not included as exhibits certain instruments with respect to our long-term debt. The
amount of debt authorized under each such debt instrument does not exceed 10% or our total assets. We will
furnish a copy of any such instrument to the SEC upon request.

SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F/A and that it has
duly caused and authorized the undersigned to sign this annual report on its behalf.
NOMURA HOLDINGS, INC.
By: /s/ KENTARO OKUDA
Name: Kentaro Okuda
Title: Representative Executive Officer,
President and Group Chief Executive
OfficerDate: April 12, 2024

Exhibit 12.1
Certification
I, Kentaro Okuda, certify that:
1. I have reviewed this annual report on Form 20-F/A of Nomura Holdings, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under whichsuch statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in thisreport, fairly present in all material respects the financial condition, results of operations and cash flows of
the company as of, and for, the periods presented in this report;
4. The company’s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for thecompany and have:a) Designed such disclosure controls and procedures, or caused such disclosure controls andprocedures to be designed under our supervision, to ensure that material information relating to thecompany, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;b) Designed such internal control over financial reporting, or caused such internal control overfinancial reporting to be designed under our supervision, to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as ofthe end of the period covered by this report based on such evaluation; andd) Disclosed in this report any change in the company’s internal control over financial reportingthat occurred during the period covered by the annual report that has materially affected, or isreasonably likely to materially affect, the company’s internal control over financial reporting; and5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation ofinternal control over financial reporting, to the company’s auditors and the audit committee of thecompany’s board of directors (or persons performing the equivalent functions):a) All significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the company’s ability torecord, process, summarize and report financial information; andb) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the company’s internal control over financial reporting.
Date: April 12, 2024
/s/ Kentaro Okuda
Kentaro Okuda
Representative Executive Officer,
President and Group Chief Executive Officer

Exhibit 12.2
Certification
I, Takumi Kitamura, certify that:
1. I have reviewed this annual report on Form 20-F/A of Nomura Holdings, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under whichsuch statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in thisreport, fairly present in all material respects the financial condition, results of operations and cash flows of
the company as of, and for, the periods presented in this report;
4. The company’s other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for thecompany and have:a) Designed such disclosure controls and procedures, or caused such disclosure controls andprocedures to be designed under our supervision, to ensure that material information relating to thecompany, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;b) Designed such internal control over financial reporting, or caused such internal control overfinancial reporting to be designed under our supervision, to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as ofthe end of the period covered by this report based on such evaluation; andd) Disclosed in this report any change in the company’s internal control over financial reportingthat occurred during the period covered by the annual report that has materially affected, or isreasonably likely to materially affect, the company’s internal control over financial reporting; and5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation ofinternal control over financial reporting, to the company’s auditors and the audit committee of thecompany’s board of directors (or persons performing the equivalent functions):a) All significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the company’s ability torecord, process, summarize and report financial information; andb) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the company’s internal control over financial reporting.
Date: April 12, 2024
/s/ Takumi Kitamura
Takumi Kitamura
Chief Financial Officer

Exhibit 13.1
Certification
Pursuant to 18 U.S.C. §1350, the undersigned officer of Nomura Holdings, Inc. (the “Company”) hereby
certifies, to such officer’s knowledge, that the Company’s annual report on Form 20-F/A for the year ended
March 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of
the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in allmaterial respects, the financial condition and results of operations of the Company.
Date: April 12, 2024

/s/ Kentaro Okuda
Kentaro Okuda
Representative Executive Officer,
President and Group Chief Executive Officer

Exhibit 13.2
Certification
Pursuant to 18 U.S.C. §1350, the undersigned officer of Nomura Holdings, Inc. (the “Company”) hereby
certifies, to such officer’s knowledge, that the Company’s annual report on Form 20-F/A for the year ended
March 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of
the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in allmaterial respects, the financial condition and results of operations of the Company.
Date: April 12, 2024

/s/ Takumi Kitamura
Takumi Kitamura
Chief Financial Officer

Exhibit 15.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the Registration Statements (Form F-3 No. 333-261756 andNo. 333-273353 and Form S-8 No. 333-214267, No. 333-221128, No. 333-228585, No. 333-228586,
No. 333-231683, No. 333-239996, No. 333-256408, No. 333-265160 and No. 333-272157) and related
Prospectuses of Nomura Holdings, Inc. of our report dated June 28, 2023, except for the effects of therestatement disclosed in “Restatement of historical annual consolidated financial statements” within Note 1, as
to which the date is April 12, 2024, with respect to the consolidated financial statements of Nomura Holdings,
Inc. and our report dated June 28, 2023, except for the effect of the material weakness described in the thirdparagraph, as to which the date is April 12, 2024, with respect to the effectiveness of internal control overfinancial reporting of Nomura Holdings, Inc., included in this Annual Report (Form 20-F/A) for the year ended
March 31, 2023.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
April 12, 2024

Exhibit 97.1
Nomura Holdings, Inc.
Compensation Recovery Policy
Article 1. (Purpose)
This Nomura Holdings, Inc. (“NHI”) Compensation Recovery Policy (this “Recovery Policy”), in addition to the
Nomura Group compensation policy for all the employees and statutory officers (“Basic Policy”), Compensation
Policy for Directors and Executive Officers of Nomura Holdings, Inc. (“Policy for Statutory Officers”) and thecompensation policy for Nomura Group officers and employees, including senior managing directors of NHI and
directors of subsidiaries of NHI but excluding Directors and Executive Officers of NHI (“Employee Policy”),
establishes the policy to recover erroneously awarded Compensation received by current or former Officers. This
Recovery Policy is designed to comply with Section 10D of the U.S. Securities Exchange Act of 1934, as
amended (the “Exchange Act”), Rule 10D-1 thereunder, and Section 303A.14 of the New York Stock Exchange
Listed Company Manual (“Section 303A.14”), and will be interpreted and applied accordingly. Capitalized terms
used in this Recovery Policy are defined as provided herein.
Article 2. (Definitions)
1.

“Compensation” means any compensation that is granted, earned, or vested based wholly or in part upon
the attainment of a Financial Reporting Measure.

2.

“Covered Event” means where NHI is required to prepare an accounting restatement due to the material
noncompliance of NHI with any financial reporting requirement under the securities laws, including any
accounting restatement to correct an error in previously issued financial statements that is material to thepreviously issued financial statements, or that would result in a material misstatement if the error werecorrected in the current period or left uncorrected in the current period.

3.

“Financial Reporting Measure” means (a) any measure that is determined and presented in accordancewith the accounting principles used in preparing NHI’s financial statements, and any measures that arederived wholly or in part from such measures and (b) NHI’s stock price or the total shareholder return of
NHI. A measure, however, need not be presented with the financial statements or included in a filing with
the U.S. Securities and Exchange Commission (“SEC”) to constitute a Financial Reporting Measure.

4.

“Officers” means any person who is or was an “executive officer” of NHI, as determined pursuant to
Section 303A.14.

5.

“Restatement Date” means the earlier to occur of: (i) the date NHI’s Board of Directors concludes, orreasonably should have concluded, that the Covered Event has occurred; or (ii) the date a court, regulator, orother legally authorized body directs NHI to prepare any accounting restatement as described in thedefinition of the Covered Event.

Article 3. (Scope)1.

This Recovery Policy shall apply to Compensation received by a current or former Officer (a “Covered
Person”) on or after October 2, 2023:(1) after beginning service as an Officer;(2) who served as an Officer at any time during the performance period for the Compensation;(3) while NHI has a class of securities listed on a national securities exchange or a national securities
association registered with the SEC; and(4) during the three completed fiscal years immediately preceding the Restatement Date (or such longer
period as required under Section 303A.14 in the event NHI changes its fiscal year).

2.

Compensation is deemed received in NHI’s fiscal period during which the Financial Reporting Measurespecified in the Compensation award is attained, even if the payment or grant of the Compensation occurs
after the end of that period.

Article 4. (Recovery)
1.

Upon the occurrence of a Covered Event, NHI shall recover the following amount from a Covered Person:
the amount of Compensation received that exceeds the amount of Compensation that otherwise would havebeen received had it been determined based on the restated Financial Reporting Measures, computed
without regard to any taxes paid on such Compensation.

2.

If the amount of the Compensation received by a Covered Person was based on NHI’s stock price or total
stockholder return and is not subject to mathematical recalculation directly from the information in theaccounting restatement described in the Covered Event, the amount to be recovered shall be based on areasonable estimate of the effect of the accounting restatement on the stock price or total stockholder return
upon which the Compensation was received. NHI shall obtain and maintain all documentation of thedetermination of such reasonable estimate and provide such documentation to the NYSE when required.

3.

Recoupment of Compensation pursuant to this Recovery Policy shall be made on a “no fault” without regard
to whether any misconduct occurred or whether any Covered Person has responsibility for thenoncompliance that resulted in the Covered Event.

4.

NHI must recover the amount in accordance with Paragraph 1 above except to the extent the majority of the
independent directors of NHI has made a determination that recovery would be impracticable for any of thefollowing reasons:(1) The direct expense paid to a third party to assist in enforcing this Recovery Policy would exceed theamount to be recovered, provided that before concluding that it would be impracticable to recover any
Compensation based on the exception contemplated under this Article 4 Paragraph 4(1), NHI shallmake a reasonable attempt to recover such Compensation, and shall document such reasonableattempt(s) to recover and provide that documentation to the NYSE when required.
(2) Recovery would violate an applicable home country law adopted prior to November 28, 2022, provided
that before concluding that it would be impracticable to recover any amount of Compensation based on
the exception contemplated under this Article 4 Paragraph 4(2), NHI shall engage legal counsel
experienced and qualified to practice law in the applicable jurisdiction (if such counsel is acceptable to
the NYSE) to render an opinion that recovery would result in a violation of law and shall provide such
opinion to the NYSE; or(3) Recovery would likely cause an otherwise tax-qualified, broad-based retirement plan of NHI to fail tomeet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and regulations thereunder.

5.

Any right of recovery under this Recovery Policy is in addition to, and not in lieu of, any other remedies orrights of recovery that may be available to NHI pursuant to the terms of any award agreement and any otherlegal remedies available to NHI.

Article 5. (Method of Recovery)1.

To recover the erroneously awarded compensation in accordance with Article 4, NHI may or may cause its
subsidiaries to (a) cancel any unvested portion of the Compensation previously awarded; (b) forfeit any
vested but unpaid portion of the Compensation previously awarded; (c) require the Covered Person to repay
any amount equivalent to the Compensation subject to recoupment; (d) seek recovery of any gain realized
on or since the vesting, exercise, settlement, sale, transfer, or other disposition of any share-based awards;(e) offset the recouped amount from any compensation otherwise owed by NHI to the Covered Person(including, without limitation, any severance otherwise payable by NHI to the Covered Person); use anyother remedial and recovery method authorized by applicable law or contract.

2.

NHI will determine, in its sole discretion, the terms on which and the process by which erroneously awarded
compensation must be recovered. Any sums owed to NHI under this Recovery Policy may be deducted fromrelevant individual’s salary or any outstanding payments due from NHI or its subsidiaries in accordancewith applicable laws and as authorized by contract.

Article 6. (No Indemnification)
Neither NHI nor any of its subsidiaries or affiliates shall indemnify any Covered Person against the loss of any
Compensation recovered under this Recovery Policy. Further, neither NHI nor any of its subsidiaries or affiliates
shall pay or reimburse any Covered Person for any insurance policy entered into by a Covered Person thatprovides for full or partial coverage of any recoupment obligation under this Recovery Policy.
Article 7. (Disclosure)
1.

NHI shall disclose this Recovery Policy and its amendments in accordance with applicable laws.

2.

If the Covered Event has occurred that require recovery of Compensation pursuant to this Recovery Policy,
NHI shall disclose the matters as required in accordance with applicable laws.

Article 8. (Committee)
The Human Resources Committee of NHI shall be responsible for the management, operation, interpretation andadministration of this Recovery Policy to the extent permitted by applicable laws. Furthermore, theCompensation Committee of NHI shall determine matters with respect to Compensation of Officers who arestatutory officers of NHI under Japanese law. The Compensation Committee and the Human Resources
Committee of NHI shall have the discretion to interpret the terms of this Recovery Policy and makedeterminations under it, and any action taken by each committee pursuant to this Recovery Policy shall be within
the absolute discretion of such committee. Any interpretations or determinations made by each committee or its
delegate shall be final and binding on all affected individuals.
Article 9. (Amendments)
Any amendments or termination of this Recovery Policy, which may only be made to the extent permitted under
the rules of the NYSE, shall be made by resolution of the Compensation Committee of NHI.
Established: December 1, 2023