# EDGAR Filing Document

**Accession Number:** 0001163653
**File Stem:** 0001193125-23-041469
**Filing Date:** 2023-2
**Character Count:** 461875
**Document Hash:** 4d43088883cad1e85123d3159c7e2bbd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-041469.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0001193125-23-041469

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20230217

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NOMURA HOLDINGS INC
- **CENTRAL INDEX KEY:** 0001163653
- **STANDARD INDUSTRIAL CLASSIFICATION:** SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15270
- **FILM NUMBER:** 23640208

**BUSINESS ADDRESS:**
- **STREET 1:** 1-13-1 NIHONBASHI
- **STREET 2:** CHUO-KU
- **CITY:** TOKYO
- **STATE:** M0
- **ZIP:** 103-8645
- **BUSINESS PHONE:** 81-3-5255-1000

**MAIL ADDRESS:**
- **STREET 1:** 1-13-1 NIHONBASHI
- **STREET 2:** CHUO-KU
- **CITY:** TOKYO
- **STATE:** M0
- **ZIP:** 103-8645

##### [**Table of Contents**](#toc)

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**FORM 6-K** 

**U.S. SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**Report of Foreign Private Issuer** 

**Pursuant to Rule 13a-16 or 15d-16 of** 

**the Securities Exchange Act of 1934** 

**Commission File Number: 1-15270** 

**For the month of February 2023** 

## NOMURA HOLDINGS, INC.
**(Translation of registrant's name into English)** 

**13-1, Nihonbashi 1-chome** 

**Chuo-ku, Tokyo 103-8645** 

**Japan** 

**(Address of principal executive offices)** 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F <u>X</u> Form 40-F <u> </u>

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):<u> </u>

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):<u> </u>

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##### [**Table of Contents**](#toc)
Information furnished on this form:

**EXHIBITS** 

---

| | |
|:---|:---|
| **<u>Exhibit Number</u>** | **<u>Exhibit Number</u>** |
| 1. | [(English Translation) Quarterly Securities Report Pursuant to the Financial Instruments and Exchange Act for the Nine Months Ended December 31, 2022.](#fs456208_1) |
| 2. | [(English Translation) Confirmation Letter.](#fs456208_2) |

---

The registrant hereby incorporates Exhibits 1 (except Part I, Item 4.2 — "Quarterly Review Certificate" and the English translation of Quarterly Review Report of Independent Auditor) and 2 to this report on Form 6-K by reference in the prospectus that is part of the Registration Statement on Form F-3 (Registration No. 333-261756) of the registrant, filed with the SEC on December 20, 2021.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **NOMURA HOLDINGS, INC.** | **NOMURA HOLDINGS, INC.** |
| Date: February 17, 2023 | By: | /s/ Yoshifumi Kishida |
|  |  | Yoshifumi Kishida |
|  |  | Senior Managing Director |

---

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##### [**Table of Contents**](#toc)
**Exhibit 1** 

Quarterly Securities Report Pursuant to the Financial Instruments and Exchange Act for the Nine Months Ended December 31, 2022

Items included in the Quarterly Securities Report

---

| | |
|:---|:---|
|  | **Page** |
|  [Part I Corporate Information](#txcov456208_1) | 1 |
|  [Item 1. Information on Company and Its Subsidiaries and Affiliates](#txcov456208_2) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1. Selected Financial Data](#txcov456208_3) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2. Business Overview](#txcov456208_4) | 1 |
|  [Item 2. Operating and Financial Review](#txcov456208_5) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1. Risk Factors](#txcov456208_6) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2. Operating, Financial and Cash Flow Analyses by Management](#txcov456208_7) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3. Significant Contracts](#txcov456208_8) | 16 |
|  [Item 3. Company Information](#txcov456208_9) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1. Share Capital Information](#txcov456208_10) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Directors and Executive Officers |  |
|  [Item 4. Financial Information](#txcov456208_12) | 20 |
|  [Preparation Method of Consolidated Financial Statements and Quarterly Review Certificate](#txcov456208_13) | 20 |
| [1. Consolidated Financial Statements](#txcov456208_14) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(1) Consolidated Balance Sheets (UNAUDITED)](#txcov456208_15) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(2) Consolidated Statements of Income (UNAUDITED)](#txcov456208_16) | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(3) Consolidated Statements of Comprehensive Income (UNAUDITED)](#txcov456208_17) | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(4) Consolidated Statements of Changes in Equity (UNAUDITED)](#txcov456208_18) | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(5) Consolidated Statements of Cash Flows (UNAUDITED)](#txcov456208_19) | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Consolidated Financial Statements (UNAUDITED)](#txcov456208_20) | 31 |
| [2. Other](#txcov456208_21) | 119 |
|  Part II Information on Guarantor of the Company |  |
|  [Quarterly Review Report of Independent Auditors](#txcov456208_23) | 120 |

---

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Note: Translations for the underlined items are attached to this form as below.

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##### [**Table of Contents**](#toc)
**Part I Corporate Information** 

**Item 1. Information on Company and Its Subsidiaries and Affiliates** 

1. Selected Financial Data

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Nine months**<br>**ended<br>December 31,**<br>**2021** | **Nine months**<br>**ended<br>December 31,**<br>**2022** | **Three months**<br>**ended**<br>**December 31,**<br>**2021** | **Three months**<br>**ended**<br>**December 31,**<br>**2022** | **Year ended**<br>**March 31,**<br>**2022** |
|  Total revenue | (Mil yen) | 1188133 | 1716061 | 403752 | 772241 | 1593999 |
|  Net revenue | (Mil yen) | 1023106 | 1010644 | 350965 | 393658 | 1363890 |
|  Income before income taxes | (Mil yen) | 177100 | 126783 | 80100 | 83566 | 226623 |
|  Net income attributable to Nomura Holdings, Inc. ("NHI") shareholders | (Mil yen) | 112033 | 85411 | 60333 | 66944 | 142996 |
|  Comprehensive income attributable to NHI shareholders | (Mil yen) | 167916 | 247509 | 106578 | (35475) | 309113 |
|  Total equity | (Mil yen) | 2879215 | 3199908 |  |  | 2972803 |
|  Total assets | (Mil yen) | 45215357 | 49242426 |  |  | 43412156 |
|  Net income attributable to NHI shareholders per share—basic | (Yen) | 36.40 | 28.40 | 19.66 | 22.30 | 46.68 |
|  Net income attributable to NHI shareholders per share—diluted | (Yen) | 35.33 | 27.44 | 19.07 | 21.51 | 45.23 |
|  Total NHI shareholders' equity as a percentage of total assets | (%) | 6.2 | 6.4 |  |  | 6.7 |
|  Cash flows from operating activities | (Mil yen) | (934129) | (949082) |  |  | (1368710) |
|  Cash flows from investing activities | (Mil yen) | (36456) | 49039 |  |  | (45301) |
|  Cash flows from financing activities | (Mil yen) | 676705 | 834382 |  |  | 1070715 |
|  Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | (Mil yen) | 3267578 | 3395959 |  |  | 3316408 |

---

------

---

| | |
|:---|:---|
| 1 | The selected financial data of Nomura Holdings, Inc. (the "Company") and other entities in which it has a controlling financial interest (collectively referred to as "Nomura", "we", "our", or "us") are stated in accordance with the accounting principles generally accepted in the United States of America ("U.S. GAAP").  |

---

2 As the consolidated financial statements have been prepared, selected financial data on the Company are not disclosed.

2. Business Overview

There were no significant changes to the businesses of the Company and its 1,417 consolidated subsidiaries for the nine months ended December 31, 2022.

There were 13 affiliated companies which were accounted for by the equity method as of December 31, 2022.

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##### [**Table of Contents**](#toc)
**Item 2. Operating and Financial Review** 

1. Risk Factors

There is no significant change in our Risk Factors for the nine months ended December 31, 2022 and until the submission date of this report.

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##### [**Table of Contents**](#toc)
2. Operating, Financial and Cash Flow Analyses by Management

(1) Operating Results

Nomura reported net revenue of ¥1,010.6 billion, non-interest expenses of ¥883.9 billion, income before income taxes of ¥126.8 billion, and net income attributable to NHI shareholders of ¥85.4 billion for the nine months ended December 31, 2022.

The breakdown of net revenue and non-interest expenses on the consolidated statements of income is as follows:

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Commissions | ¥257095 | ¥216085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brokerage commissions | 195692 | 163306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions for distribution of investment trust | 37191 | 22238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 24212 | 30541 |
|  Fees from investment banking | 115624 | 85257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Underwriting and distribution | 56567 | 30871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M&A / financial advisory fees | 44264 | 42599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 14793 | 11787 |
|  Asset management and portfolio service fees | 201128 | 204323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset management fees | 186716 | 186318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 14412 | 18005 |
|  Net gain on trading | 249942 | 444955 |
|  Gain (loss) on private equity and debt investments | 31082 | 9253 |
|  Net interest | 52070 | (26192) |
|  Gain (loss) on investments in equity securities | 2964 | (2621) |
|  Other | 113201 | 79584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net revenue | ¥1023106 | ¥1010644 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Compensation and benefits | ¥403883 | ¥450230 |
|  Commissions and floor brokerage | 78343 | 88946 |
|  Information processing and communications | 135831 | 155863 |
|  Occupancy and related depreciation | 52069 | 50182 |
|  Business development expenses | 11596 | 16363 |
|  Other | 164284 | 122277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-interest expenses | ¥&nbsp;&nbsp;&nbsp;&nbsp;846006 | ¥&nbsp;&nbsp;&nbsp;&nbsp;883861 |

---

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##### [**Table of Contents**](#toc)
Business Segment Information

Results by business segment are noted below.

Reconciliations of *Net revenue* and *Income before income taxes* on segment results of operations and the consolidated statements of income are set forth in Item 4. Financial Information, 1. Consolidated Financial Statements, Note 15. "*Segment and geographic information.*"

Net revenue

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Retail | ¥257528 | ¥224885 |
|  Investment Management | 137919 | 90715 |
|  Wholesale | 508155 | 593543 |
|  Other (Incl. elimination) | 115036 | 126858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥1018638 | ¥1036001 |
|  Non-interest expenses |  |  |
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Retail | ¥203487 | ¥201221 |
|  Investment Management | 57626 | 63574 |
|  Wholesale | 470709 | 549936 |
|  Other (Incl. elimination) | 114184 | 69130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥846006 | ¥883861 |
|  Income before income taxes |  |  |
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Retail | ¥54041 | ¥23664 |
|  Investment Management | 80293 | 27141 |
|  Wholesale | 37446 | 43607 |
|  Other (Incl. elimination) | 852 | 57728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;172632 | ¥&nbsp;&nbsp;&nbsp;&nbsp;152140 |

---

Retail

Net revenue was ¥224.9 billion primarily due to a decrease in *Brokerage commissions* and *Commissions for distribution of investment trust*. Non-interest expenses were ¥201.2 billion and income before income taxes was ¥23.7 billion. Retail client assets were ¥117.5 trillion as of December 31, 2022, a ¥4.6 trillion decrease from March 31, 2022.

Investment Management

Net revenue was ¥90.7 billion. Non-interest expenses were ¥63.6 billion and income before income taxes was ¥27.1 billion. Assets under management were ¥64.7 trillion as of December 31, 2022, a ¥3.2 trillion decrease from March 31, 2022, primarily due to decreases in the market value of assets under management.

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##### [**Table of Contents**](#toc)
The breakdown of net revenue for Investment Management is as follows:

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Business revenue<sup>(1)</sup> | ¥88786 | ¥91918 |
|  Investment gain/ loss<sup>(2)</sup> | 49133 | (1203) |
|  Net revenue | ¥&nbsp;&nbsp;&nbsp;&nbsp;137919 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90715 |

---

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(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 and
dividends), including gains and losses related to our investment in American Century Investments, our investments held in our private equity and other investment businesses and our investment in Mebuki Financial Group, Inc.

Wholesale

Net revenue was ¥593.5 billion. Non-interest expenses were ¥549.9 billion and income before income taxes was ¥43.6 billion.

The breakdown of net revenue for Wholesale is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2021** | **2022** | **2022** |
|  Global Markets | ¥ | 398267 | ¥ | 507025 |
|  Investment Banking |  | 109888 |  | 86518 |
|  Net revenue | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;508,155 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;593,543 |

---

Global Markets net revenue was ¥507.0 billion. Fixed Income net revenue increased from ¥246.8 billion in the previous year to ¥315.0 billion primarily due to strong results in macro products (Rates and FX/EM). Equities net revenue increased from ¥151.4 billion in the previous year to ¥192.1 billion primarily due to the absence of losses arising from the U.S. Prime Brokerage Event. Investment banking net revenue was ¥86.5 billion.

Other Operating Results

Other operating results include net gain (loss) related to economic hedging transactions, a part of realized gain (loss) on investments in equity securities held for operating purposes, equity in earnings of affiliates, corporate items, and other financial adjustments. Other operating results for the nine months ended December 31, 2022 include losses from changes in the fair value of derivative liabilities of ¥1.2 billion attributable to the change in its own creditworthiness and losses from changes in counterparty credit spread of ¥1.1 billion. Net revenue was ¥126.9 billion, including income of ¥28.0 billion recognized in December 2022 from the sale of a part of our shares held in Nomura Research Institute, Ltd. Non-interest expenses were ¥69.1 billion. Income before income taxes was ¥57.7 billion for the nine months ended December 31, 2022.

Geographic Information

Please refer to Item 4. Financial Information, 1. Consolidated Financial Statements, Note 15. "*Segment and geographic information*" for net revenue and income (loss) before income taxes by geographic allocation.

Cash Flow Information

Please refer to "(5) Liquidity and Capital Resources."

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##### [**Table of Contents**](#toc)
(2) Assets and Liabilities Associated with Investment and Financial Services Business

Exposure to Certain Financial Instruments and Counterparties

Market conditions continue to impact numerous products to which we have certain exposures. We also have exposures to Special Purpose Entities ("SPEs") and others in the normal course of business.

*Leveraged Finance* 

We provide loans to clients in connection with leveraged buy-outs and leveraged buy-ins. As this type of financing is usually initially provided through a commitment, we have both funded and unfunded exposures on these transactions.

The following table sets forth our exposure to leveraged finance with unfunded commitments, presenting funded and unfunded portions by geographic location of the target company as of December 31, 2022.

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| | | | |
|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Funded** | **Unfunded** | **Total** |
|  Europe | ¥14304 | ¥56075 | ¥70379 |
|  Americas | 20963 | 159840 | 180803 |
|  Asia and Oceania | 7879 | 27043 | 34922 |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43146 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;242958 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;286104 |

---

*Special Purpose Entities* 

Our involvement with these entities includes structuring, underwriting, as well as, subject to prevailing market conditions, distributing and selling debt instruments and beneficial interests issued by these entities. In the normal course of securitization and equity derivative activities business, we also act as a transferor of financial assets to, and underwriter, distributor and seller of repackaged financial instruments issued by these entities. We retain, purchase and sell variable interests in SPEs in connection with our market-making, investing and structuring activities. Our other types of involvement with SPEs include guarantee agreements and derivative contracts.

For further discussion on Nomura's involvement with variable interest entities ("VIEs"), see Item 4. Financial Information, 1. Consolidated Financial Statements, Note 6. "*Securitizations and Variable Interest Entities.*"

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##### [**Table of Contents**](#toc)
(3) Trading Activities

Assets and liabilities for trading purposes

Please refer to Item 4. Financial Information, 1. Consolidated Financial Statements, Note 2. "*Fair value measurements*" and Note 3. "*Derivative instruments and hedging activities*" regarding the balances of assets and liabilities for trading purposes.

Risk management of trading activity

We adopt Value at Risk ("VaR") for measurement of market risk arising from trading activity.

1) Assumptions on VaR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Confidence Level: 95%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holding period: One day

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consideration of price movement among the products

2) Records of VaR

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Equity | ¥1.4 | ¥3.5 |
|  Interest rate | 2.3 | 4.0 |
|  Foreign exchange | 0.9 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 4.6 | 9.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversification benefit | (1.9) | (3.7) |
|  VaR | ¥2.7 | ¥5.6 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** |
|  | **Maximum<sup>(1)</sup>** | **Minimum<sup>(1)</sup>** | **Average<sup>(1)</sup>** |
|  VaR | ¥6.8 | ¥2.7 | ¥4.6 |

---

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

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##### [**Table of Contents**](#toc)
(4) Deferred Tax Assets Information

*Details of deferred tax assets and liabilities* 

The following table presents details of deferred tax assets and liabilities reported within *Other assets*—*Other* and *Other liabilities*, respectively, in the consolidated balance sheets as of December 31, 2022.

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| | |
|:---|:---|
|  | **Millions of yen** |
|  | **December 31, 2022** |
|  **Deferred tax assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, amortization and valuation of fixed assets | ¥32074 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and affiliates | 5694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation of financial instruments | 142441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued pension and severance costs | 20997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued expenses and provisions | 75321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating losses | 419320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 48924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 16100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross deferred tax assets | 760871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less—Valuation allowance | (513155) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax assets | 247716 |
|  **Deferred tax liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and affiliates | 96738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation of financial instruments | 132484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Undistributed earnings of foreign subsidiaries | 3100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation of fixed assets | 22933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets | 48153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax liabilities | 308864 |
|  **Net deferred tax assets (liabilities)** | ¥(61148) |

---

*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.

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(5) Liquidity and Capital Resources

Funding and Liquidity Management

*Overview* 

We define liquidity risk as the risk of loss arising from difficulty in securing the necessary funding or from a significantly higher cost of funding than normal levels due to deterioration of the Nomura Group's creditworthiness or deterioration in market conditions. This risk could arise from Nomura-specific or market-wide events such as inability to access the secured or unsecured debt markets, a deterioration in our credit ratings, a failure to manage unplanned changes in funding requirements, a failure to liquidate assets quickly and with minimal loss in value, or changes in regulatory capital restrictions which may prevent the free flow of funds between different group entities. Our global liquidity risk management policy is based on liquidity risk appetite formulated by the Executive Management Board ("EMB"). Nomura's liquidity risk management, under market-wide stress and in addition, under Nomura-specific stress, seeks to ensure enough continuous liquidity to meet all funding requirements and unsecured debt obligations across one year and 30-day periods, respectively, without raising funds through unsecured funding or through the liquidation of assets. We are required to meet regulatory notice on the liquidity coverage ratio and the net stable funding ratio issued by the Financial Services Agency ("FSA").

We have in place a number of liquidity risk management frameworks that enable us to achieve our primary liquidity objective. These frameworks include (1) Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio; (2) Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio; (3) Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with the Composition of Assets; (4) Management of Credit Lines to Nomura Group Entities; (5) Implementation of Liquidity Stress Tests; and (6) Contingency Funding Plan.

Our EMB has the authority to make decisions concerning group liquidity management. CFO has the operational authority and responsibility over our liquidity management based on decisions made by the EMB.

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##### [**Table of Contents**](#toc)
*1) Centralized Control of Residual Cash and Maintenance of Liquidity Portfolio* 

We centrally control residual cash held at Nomura Group entities for effective liquidity utilization purposes. As for the usage of funds, the CFO decides the maximum amount of available funds, provided without posting any collateral, for allocation within Nomura and the EMB allocates the funds to each business division. Global Treasury monitors usage by businesses and reports to the EMB.

In order to enable us to transfer funds smoothly between group entities, we limit the issuance of securities by regulated broker-dealers or banking entities within the Nomura Group and seek to raise unsecured funding primarily through the Company or through unregulated subsidiaries. The primary benefits of this strategy include cost minimization, wider investor name recognition and greater flexibility in providing funding to various subsidiaries across the Nomura Group.

To meet any potential liquidity requirement, we maintain a liquidity portfolio, managed by Global Treasury apart from other assets, in the form of cash and highly liquid, unencumbered securities that may be sold or pledged to provide liquidity. As of December 31, 2022, our liquidity portfolio was ¥7,667.8 billion which sufficiently met liquidity requirements under the stress scenarios.

*2) Utilization of Unencumbered Assets as Part of Our Liquidity Portfolio* 

In addition to our liquidity portfolio, we had unencumbered assets comprising mainly of unpledged trading assets that can be used as an 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 and other unencumbered assets was sufficient against our total unsecured debt maturing within one year.

*3) Appropriate Funding and Diversification of Funding Sources and Maturities Commensurate with the Composition of Assets* 

We seek to maintain a surplus of long-term debt and equity above the cash capital requirements of our assets. We also seek to achieve diversification of our funding by market, instrument type, investors, currency, and staggered maturities in order to reduce unsecured refinancing risk.

We diversify funding by issuing various types of debt instruments—these include both structured loans and structured notes with returns linked 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 typically hedge the returns we are obliged to pay with derivatives and/or the underlying assets to obtain funding equivalent to our unsecured long-term debt.

*3.1) Short-Term Unsecured Debt* 

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

---

| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Short-term bank borrowings | ¥148.0 | ¥199.9 |
|  Other loans | 228.1 | 283.2 |
|  Commercial paper | 131.9 | 353.8 |
|  Deposits at banking entities | 1520.7 | 1619.9 |
|  Certificates of deposit | 127.8 | 237.0 |
|  Debt securities maturing within one year | 775.6 | 705.0 |
|  Total short-term unsecured debt | ¥2932.1 | ¥3398.8 |

---

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##### [**Table of Contents**](#toc)
*3.2) Long-Term Unsecured Debt* 

We meet our long-term capital requirements and also achieve both cost-effective funding and an appropriate maturity profile by routinely funding through long-term debt and diversifying across various maturities and currencies.

Our long-term unsecured debt includes senior and subordinated debt issued through U.S. registered shelf offerings and our U.S. registered medium-term note programs, our Euro medium-term note programs, registered shelf offerings in Japan and various other debt programs.

As a globally competitive financial services group in Japan, we have access to multiple global markets and major funding centers. The Company, Nomura Securities Co. Ltd., Nomura Europe Finance N.V., Nomura Bank International plc, Nomura International Funding Pte. Ltd., and Nomura Global Finance Co., Ltd. are the main group entities that borrow externally, issue debt instruments and engage in other funding activities. By raising funds to match the currencies and liquidities of our assets or by using foreign exchange swaps as necessary, we pursue optimization of our funding structures.

We use a wide range of products and currencies to ensure that our funding is efficient and well diversified across markets and investor types. Our unsecured senior debt is mostly issued without financial covenants, such as covenants related to adverse changes in our credit ratings, cash flows, results of operations or financial ratios, which could trigger an increase in our cost of financing or accelerate repayment of the debt.

The following table presents an analysis of our long-term unsecured debt by type of financial liability as of March 31, 2022 and December 31, 2022.

---

| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Long-term deposits at banking entities | ¥112.3 | ¥184.6 |
|  Long-term bank borrowings | 2820.5 | 2931.5 |
|  Other loans | 219.5 | 258.4 |
|  Debt securities<sup>(1)</sup> | 4745.8 | 4824.2 |
|  Total long-term unsecured debt | ¥7898.1 | ¥8198.7 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Excludes long-term debt securities issued by consolidated special purpose entities and similar entities that
meet 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 greater than or equal to three years. A significant amount of our structured loans and structured notes are linked to interest rates, currencies, equities, commodities, or related indices. These maturities are evaluated based on internal models and monitored by Global Treasury. Where there is a possibility that these may be called prior to their scheduled maturity date, maturities are based on our internal stress option adjusted model. The model values the embedded optionality under stress market conditions in order to determine when the debt securities or borrowings are likely to be called.

*3.4) Secured Funding* 

We typically fund our trading activities through secured borrowings, repurchase agreements and Japanese "Gensaki Repo" transactions. We believe such funding activities in the secured markets are more cost-efficient and less credit-rating sensitive than financing in the unsecured market. Our secured funding capabilities depend on the quality of the underlying collateral and market conditions. While we have shorter term secured financing 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 and repurchase agreements, see Note 5 "*Collateralized transactions*" in our consolidated financial statements.

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*4) Management of Credit Lines to Nomura Group Entities* 

We maintain and expand credit lines to Nomura Group entities from other financial institutions to secure stable funding. We ensure that the maturity dates of borrowing agreements are distributed evenly throughout the year in order to prevent excessive maturities in any given period.

*5) Implementation of Liquidity Stress Tests* 

We maintain our liquidity portfolio and monitor the sufficiency of our liquidity based on an internal model which simulates changes in cash outflow under specified stress scenarios to comply with our above mentioned liquidity management policy.

We assess the liquidity requirements of the Nomura Group under various stress scenarios with differing levels of severity over multiple time horizons. We evaluate these requirements under Nomura-specific and broad market-wide events, including potential credit rating downgrades at the Company and subsidiary levels. We call this risk analysis our Maximum Cumulative Outflow ("MCO") framework.

The MCO framework is designed to incorporate the primary liquidity risks for Nomura and models the relevant future cash flows in the following two primary scenarios:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Acute stress scenario* —To maintain adequate liquidity during a severe market-wide liquidity event
coupled with credit concerns regarding Nomura's liquidity position, without raising funds through unsecured 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 based on our liquidity risk appetite.

As of December 31, 2022, 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No liquidation of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No ability to issue additional unsecured funding;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Potential buybacks of our outstanding debt;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fluctuation of funding needs under normal business circumstances;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Widening of haircuts on outstanding repo funding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional collateralization requirements of clearing banks and depositories;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Drawdown on loan commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loss of liquidity from market losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal and regulatory requirements that can restrict the flow of funds between entities in the Nomura Group.

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##### [**Table of Contents**](#toc)
*6) Contingency Funding Plan* 

We have developed a detailed contingency funding plan to integrate liquidity risk control into our comprehensive risk management strategy and to enhance the quantitative aspects of our liquidity risk control procedures. As a part of our 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 Nomura-specific and market-wide events; and specifies the immediate action to be taken to mitigate any risk. The CFP lists details of key internal and external parties to be contacted and the processes by which information is to be disseminated. This has been developed at a legal entity level in order to capture specific cash requirements at the local level—it assumes that our parent company does not have access to cash that may be trapped at a subsidiary level due to regulatory, legal or tax constraints. We periodically test the effectiveness of our funding plans for different Nomura-specific and market-wide events. We also have access to central banks including, but not exclusively, the Bank of Japan, which provide financing against various types of securities. These operations are accessed in the normal course of business and are an important tool in mitigating contingent risk from market disruptions.

*Liquidity Regulatory Framework* 

In 2008, the Basel Committee published "Principles for Sound Liquidity Risk Management and Supervision." To complement these principles, 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 by ensuring that it has sufficient high-quality liquid assets to survive a significant stress scenario lasting for 30 days. The Committee developed the Liquidity Coverage Ratio ("LCR") to achieve 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 sustainable maturity structure of assets and liabilities.

These two standards are comprised mainly of specific parameters which are internationally "harmonized" with prescribed values. Certain parameters, however, contain elements of national discretion to reflect jurisdiction-specific conditions.

In Japan, the regulatory notice on the LCR, based on the international agreement issued by the Basel Committee with necessary national revisions, was published by Financial Services Agency. The notices have been implemented since the end of March 2015 with phased-in minimum standards. Average of Nomura's LCRs for the three months ended December 31, 2022 was 181.1%, and Nomura was compliant with requirements of the above notices. As for the NSFR, the revision of the liquidity regulatory notice was published by Financial Services Agency (on March 31, 2021) and it has been implemented from the end of September 2021. Nomura's NSFR as of December 31, 2022 was compliant with the regulatory requirements.

Cash Flows

*Cash, cash equivalents, restricted cash and restricted cash equivalents'* balance as of December 31, 2021 and as of December 31, 2022 were ¥3,267.6 billion and ¥3,396.0 billion, respectively. Cash flows from operating activities for the nine months ended December 31, 2021 were outflows of ¥934.1 billion primarily due to an increase in *Securities purchased under agreements to resell, net of securities sold under agreements to repurchase* and the comparable period in 2022 were outflows of ¥949.1 billion primarily due to an increase in *Trading assets and private equity and debt investments.* Cash flows from investing activities for the nine months ended December 31, 2021 were outflows of ¥36.5 billion primarily due to an increase in *Loans receivable at banks, net* and the comparable period in 2022 were inflows of ¥49.0 billion primarily due to a decrease in *Non-trading debt securities, net*. Cash flows from financing activities for the nine months ended December 31, 2021 were inflows of ¥676.7 billion primarily due to an increase in *Long-term borrowings* and the comparable period in 2022 were inflows of ¥834.4 billion primarily due to an increase in *Long-term borrowings.*

Balance Sheet and Financial Leverage

Total assets as of December 31, 2022, were ¥49,242.4 billion, an increase of ¥5,830.3 billion compared with ¥43,412.2 billion as of March 31, 2022, primarily due to increases in *Trading assets* and *Securities purchased under agreements to resell*. Total liabilities as of December 31, 2022, were ¥46,042.5 billion, an increase of ¥5,603.2 billion compared with ¥40,439.4 billion as of March 31, 2022, primarily due to increases in *Securities sold under agreements to repurchase* and *Trading liabilities*. NHI shareholders' equity as of December 31, 2022, was ¥3,138.8 billion, an increase of ¥224.2 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 our balance sheet size and required capital levels. We continuously review our equity capital base to ensure that it can support the economic risk inherent in our business. There are also regulatory requirements for minimum capital of entities that operate in regulated securities or banking businesses.

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As leverage ratios are commonly used by other financial institutions similar to us, we voluntarily provide a Leverage ratio and Adjusted leverage ratio primarily for benchmarking purposes so that users of our annual report can compare our leverage against other financial institutions. Adjusted leverage ratio is a non-GAAP financial measure that Nomura considers to be a useful supplemental measure of leverage.

The following table sets forth NHI shareholders' equity, total assets, adjusted assets and leverage ratios:

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| | | | |
|:---|:---|:---|:---|
|  | **Billions of yen, except ratios** | **Billions of yen, except ratios** |  |
|  | **March 31, 2022** | **December 31, 2022** |  |
|  NHI shareholders' equity | ¥2914.6 | ¥3138.8 |  |
|  Total assets | 43412.2 | 49242.4 |  |
|  Adjusted assets<sup>(1)</sup> | 26535.8 | 29117.7 |  |
|  Leverage ratio<sup>(2)</sup> | 14.9 x | 15.7 | x |
|  Adjusted leverage ratio<sup>(3)</sup> | 9.1 x | 9.3 | x |
| <br> (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: | <br> (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: | <br> (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.<br> (3) Equals adjusted assets divided by NHI shareholders' equity. |  |  |  |
|  | **Billions of yen** | **Billions of yen** |  |
|  | **March 31, 2022** | **December 31, 2022** |  |
|  Total assets | ¥43412.2 | ¥49242.4 |  |
|  Less: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | 11879.3 | 15851.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 4997.1 | 4273.7 |  |
|  Adjusted assets | ¥26535.8 | ¥29117.7 |  |

---

Total assets increased by 13.4% reflecting primarily an increase in *Securities purchased under agreements to resell*. NHI shareholders' equity increased by 7.7% primarily due to an increase in *Accumulated other comprehensive income.* As a result, our leverage ratio increased from 14.9 times as of March 31, 2022 to 15.7 times as of December 31, 2022.

Adjusted assets increased primarily due to an increase in *Trading assets.* Our adjusted leverage ratio rose from 9.1 times as of March 31, 2022 to 9.3 times as of December 31, 2022.

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Consolidated Regulatory Capital Requirements

The FSA established the "Guideline for Financial Conglomerates Supervision" ("Financial Conglomerates Guideline") in June 2005 and set out the rules on consolidated regulatory capital. We started monitoring our consolidated capital adequacy ratio in accordance with the Financial Conglomerates Guideline from April 2005.

The Company has been assigned by the FSA as a Final Designated Parent Company who must calculate a consolidated capital adequacy ratio according to the Capital Adequacy Notice on Final Designated Parent Company in April 2011. Since then, we have been calculating our consolidated capital adequacy ratio according to the Capital Adequacy Notice on Final Designated Parent Company. 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 have calculated 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, our consolidated 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 December 31, 2022, our common equity Tier 1 capital ratio is 16.00%, Tier 1 capital ratio is 18.10% and consolidated capital adequacy ratio is 18.11% and we were 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 December 31, 2022 is 7.51% for the common equity Tier 1 capital ratio, 9.01% for the Tier 1 capital ratio and 11.01% 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 Recapitalization 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 risk-weighted assets basis from March 2021. As of December 31, 2022, our external TLAC as a percentage of risk-weighted assets is 29.71% and we are in compliance with the requirement set out in the TLAC Notification.

The following table presents the Company's consolidated capital adequacy ratios, consolidated leverage ratio and External TLAC ratios as of December 31, 2022.

---

| | |
|:---|:---|
|  | **Billions of yen, except ratios** |
|  | **December 31, 2022** |
|  Common equity Tier 1 capital | ¥2871.1 |
|  Tier 1 capital | 3247.8 |
|  Total capital | 3248.2 |
|  **Risk-Weighted Assets** |  |
|  Credit risk-weighted assets | 8253.2 |
|  Market risk equivalent assets | 7114.8 |
|  Operational risk equivalent assets | 2566.1 |
|  Total risk-weighted assets | ¥17934.1 |
|  **Consolidated Capital Adequacy Ratios** |  |
|  Common equity Tier 1 capital ratio | 16.00% |
|  Tier 1 capital ratio | 18.10% |
|  Consolidated capital adequacy ratio | 18.11% |
|  **Consolidated Leverage Ratio** | 5.53% |
|  **External TLAC Ratios** |  |
|  Risk-weighted assets basis | 29.71% |
|  Leverage ratio exposure measure basis | 9.99% |

---

Since the end of March 2011, we have been calculating credit risk-weighted assets and operational risk equivalent assets by using the foundation Internal Ratings-Based Approach and the Standardized Approach, respectively, with the approval of the FSA. Furthermore, market risk equivalent assets are calculated using the Internal Models Approach.

We provide consolidated capital adequacy ratios not only to demonstrate that we are in compliance with the requirements set out in the Capital Adequacy Notice on Final Designated Parent Company but also for benchmarking purposes so that users of this quarterly report can compare our capital position against those of other financial groups to which Basel III is applied. Management receives and reviews these capital ratios on a regular basis.

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Consolidated Leverage Ratio Requirements

In March 2019, the FSA set out requirements for the calculation and disclosure and minimum requirement of 3% of a consolidated leverage ratio, and the publication of "Notice of the Establishment of Standards for Determining Whether the Adequacy of Leverage, the Supplementary Measure to the Adequacy of Equity Capital of a Final Designated Parent Company and its Subsidiary Corporations, etc. is Appropriate Compared to the Assets 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 designated parent company should disclose on documents to show the status of its sound management" (2010 FSA Regulatory Notice No. 132; "Notice on Pillar 3 Disclosure"). We started calculating and disclosing a consolidated leverage ratio from March 31, 2015 in accordance with the 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 June 2020, in coordination with the monetary policy of the Bank of Japan in response to the impact of coronavirus ("COVID-19") pandemic, the FSA published amendments to the Notice on Consolidated Leverage Ratio. Under these amendments, amounts of deposits with the Bank of Japan have been excluded from the total exposure measure used to calculate the leverage ratio during the period from December 31, 2020 to March 31, 2021. In March 2021, the FSA announced this measure will be extended for one year due to the continuous uncertainty regarding the impact of COVID-19. As of December 31, 2022, our consolidated leverage ratio is 5.53%.

In accordance with Article 2 of the TLAC Notification we have started calculating our external TLAC ratio on a total exposure basis from March 2021. As of December 31, 2022, our external TLAC as a percentage of leverage ratio exposure measure is 9.99% and we are in compliance with the requirement set out in the TLAC Notification.

Credit Ratings

There were no significant rating actions in the third quarter of the fiscal year ending March 2023.

(6) Current Challenges

There is no significant change to our current challenges nor new challenges for the nine months ended December 31, 2022.

3. Significant Contracts

Not applicable.

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**Item 3. Company Information** 

**1. Share Capital Information** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Total Number of Shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Number of Authorized Share Capital

---

| | |
|:---|:---|
| **Type** | **Authorized Share Capital**<br>**(shares)** |
|  Common stock | 6000000000 |
|  Class 1 preferred stock | 200000000 |
|  Class 2 preferred stock | 200000000 |
|  Class 3 preferred stock | 200000000 |
|  Class 4 preferred stock | 200000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 6000000000 |

---

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The "Authorized Share Capital" is stated by class and the total is the number of authorized share capital designated in the Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Issued Shares

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Number of**<br>**Issued Shares as of**<br>**December 31, 2022** | **Number of**<br>**Issued Shares as of**<br>**February 14, 2023** | **Trading Markets** | **Details** |
|  Common stock | 3233562601 | 3233562601 | Tokyo Stock Exchange<sup>(2)</sup> | 1 unit is 100 shares |
|  |  |  | Nagoya Stock Exchange<sup>(3)</sup> |  |
|  |  |  | Singapore Exchange |  |
|  |  |  | New York Stock Exchange |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 3233562601 | 3233562601 |  |  |

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------

(1) Shares that may have increased from exercise of stock options between February 1, 2023 and
February 14, 2023 are not included in the number of issued shares as of February 14, 2023.

(2) Listed on the Prime Market.

(3) Listed on the Premier Market.

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&nbsp;&nbsp;&nbsp;&nbsp;(2) Stock Acquisition Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Stock option

Not applicable in this quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Other stock acquisition rights

Not applicable in this quarter.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Exercises, etc., of moving strike convertible bonds, etc.

None

&nbsp;&nbsp;&nbsp;&nbsp;(4) Changes in Issued Shares, Common Stock, etc.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Date** |<br>**Increase/(Decrease)<br>of Issued Shares** |<br>**Total<br>Issued Shares** | **Increase/(Decrease)<br>of Common stock** | **Common Stock** | **Increase/(Decrease) of<br>Additional**<br>**paid-in capital** | **Additional**<br>**paid-in capital** |
|  December 31, 2022 |  | 3233562601 |  | 594493 |  | 559676 |

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&nbsp;&nbsp;&nbsp;&nbsp;(5) Major Shareholders

Not applicable as this is the third quarter.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;(6) Voting Rights

The "Voting Rights" as of the end of the current third quarter is presented as of September 30, 2022, the most recent cutoff date, because the number of beneficiary shareholders as of December 31, 2022, could not be ascertained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Outstanding Shares

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of September 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** |
|  | **Number of Shares** | **Number of Shares** | **Number of Votes** | **Description** |
|  Stock without voting right |  |  |  |  |
|  Stock with limited voting right (Treasury stocks, etc.) |  |  |  |  |
|  Stock with limited voting right (Others) |  |  |  |  |
|  Stock with full voting right (Treasury stocks, etc.) | (Treasury stocks<br> Common stock) <br>| 232023000 |  |  |
|  | (Crossholding stocks<br> Common stock) <br>| 1618100 |  |  |
|  Stock with full voting right (Others) | Common stock | 2998333800 | 29983338 |  |
|  Shares less than 1 unit | Common stock | 1587701 |  | Shares less than 1 unit<br> (100 shares) |
|  Total Shares Issued |  | 3233562601 |  |  |
|  Voting Rights of Total Shareholders |  |  | 29983338 |  |

---

------

(1) *Stock with full voting right (Others)* includes 2,000 shares held by Japan Securities Depository Center,
Inc. *Shares less than 1 unit* includes 46 treasury stocks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Treasury Stocks

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Address** | **As of September 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** | **As of September 30, 2022** |
| **Name** | **Address** | **Directly**<br>**held<br>shares** | **Indirectly**<br>**held**<br>**shares** | **Total** | **Percentage of**<br>**Issued Shares**<br>**(%)** |
|  (Treasury stocks)<br> Nomura Holdings, Inc. | 1-13-1, Nihonbashi, Chuo-ku,<br>Tokyo, Japan | 232023000 |  | 232023000 | 7.17 |
|  Total |  | 232023000 |  | 232023000 | 7.17 |

---

(1) In addition to the above, 1,618,100 shares are directly held by a subsidiary of the Company for the purpose of
securities related business.

------

##### [**Table of Contents**](#toc)
**Item 4. Financial Information** 

1 Preparation Method of Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The consolidated financial statements have been prepared in accordance with accounting principles, procedures,
and presentations which are required in order to issue American Depositary Shares, i.e., U.S. generally accepted accounting principles, pursuant to Article 95 of "Regulations Concerning the Terminology, Forms and Preparation Methods of
Quarterly Consolidated Financial Statements" (Cabinet Office Ordinance No. 64, 2007).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The consolidated financial statements have been prepared by making necessary adjustments to the financial
statements of each consolidated company which were prepared in accordance with the accounting principles generally accepted in each country. Such adjustments have been made to comply with the principles noted in (1) above.

2 Quarterly Review Certificate

Under Article 193-2 Section 1 of the Financial Instruments and Exchange Act, Ernst & Young ShinNihon LLC performed a quarterly review of the consolidated financial statements for the nine and three months ended December 31, 2022.

Although Ernst & Young ShinNihon LLC reported that they applied limited procedures in accordance with professional standards in Japan on the interim consolidated financial statements, prepared in Japanese for the nine and three months ended December 31, 2022, they have not performed any such limited procedures nor have they performed an audit on the English translated version of the consolidated financial statements for the above-mentioned periods which are included in this report on Form 6-K.

------

##### [**Table of Contents**](#toc)
**1. Consolidated Financial Statements** 

**(1) Consolidated Balance Sheets (UNAUDITED)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **Millions of yen** | **Millions of yen** |
|  |<br>**Notes** | **March 31,**<br>**2022** | **December 31,**<br>**2022** |
|  **ASSETS** |  |  |  |
|  Cash and cash deposits: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | ¥3316238 | ¥3395791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits |  | 320754 | 401027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with stock exchanges and other segregated cash |  | 426519 | 312834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash and cash deposits |  | 4063511 | 4109652 |
|  Loans and receivables: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable (includes ¥1,210,590 and ¥1,318,405 at fair value) | \*2, 7 | 3579727 | 3799803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables from customers (includes ¥86,839 and ¥88,694 at fair value) | \*2, 4 | 417661 | 337637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables from other than customers (includes ¥10,362 and ¥12,694 at fair value) |  | 1069660 | 1427719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | \*7 | (66346) | (64039) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans and receivables |  | 5000702 | 5501120 |
|  Collateralized agreements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell (includes ¥297,653 and ¥253,778 at fair value) | \*2 | 11879312 | 15851006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed |  | 4997129 | 4273703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total collateralized agreements |  | 16876441 | 20124709 |
|  Trading assets and private equity and debt investments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets (includes assets pledged of ¥4,643,412 and ¥5,312,090 includes ¥14,328 and ¥16,394 at fair value) | \*2, 3 | 15230817 | 17289782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments (includes ¥10,770 and ¥10,004 at fair value) | \*2 | 65193 | 58724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments |  | 15296010 | 17348506 |
|  Other assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥426,081 and ¥461,317) |  | 419047 | 445337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-trading debt securities (includes assets pledged of ¥17,823 and ¥ nil) | \*2 | 484681 | 359610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in equity securities (includes assets pledged of ¥606 and ¥1,009) | \*2 | 133897 | 105041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in and advances to affiliated companies (includes assets pledged of ¥5,038 and ¥5,456) | \*7 | 364281 | 378699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (includes ¥169,080 and ¥160,057 at fair value) | \*2, 9 | 773586 | 869752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other assets |  | 2175492 | 2158439 |
|  Total assets |  | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43412156 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49242426 |

---

------

##### [**Table of Contents**](#toc)
**(1) Consolidated Balance Sheets—(Continued) (UNAUDITED)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **Millions of yen** | **Millions of yen** |
|  |<br>**Notes** | **March 31,**<br>**2022** | **December 31,**<br>**2022** |
| **LIABILITIES AND EQUITY** |  |  |  |
|  Short-term borrowings (includes ¥710,629 and ¥498,942 at fair value) | \*2 | ¥1050141 | ¥1079047 |
|  Payables and deposits: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to customers | \*4 | 1522961 | 1439851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables to other than customers |  | 1636725 | 1893830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits received at banks (includes ¥71,156 and ¥145,958 at fair value) | \*2 | 1760679 | 2041602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total payables and deposits |  | 4920365 | 5375283 |
|  Collateralized financing: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase (includes ¥411,847 and ¥615,859 at fair value) | \*2 | 12574556 | 15929529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned (includes ¥104,606 and ¥78,654 at fair value) | \*2 | 1567351 | 1285684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other secured borrowings |  | 396291 | 333137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total collateralized financing |  | 14538198 | 17548350 |
|  Trading liabilities | \*2, 3 | 9652118 | 11229727 |
|  Other liabilities (includes ¥52,110 and ¥32,530 at fair value) | \*2, 9 | 1020225 | 1007406 |
|  Long-term borrowings (includes ¥4,557,326 and ¥4,670,099 at fair value) | \*2 | 9258306 | 9802705 |
|  Total liabilities |  | 40439353 | 46042518 |
|  Commitments and contingencies | \*14 |  |  |
|  Equity: |  |  |  |
|  Nomura Holdings, Inc. ("NHI") shareholders' equity: |  |  |  |
|  Common stock |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No par value share |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorized—6,000,000,000 shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued—3,233,562,601 shares |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outstanding—3,017,804,012 and 3,001,807,708 shares |  | 594493 | 594493 |
|  Additional paid-in capital |  | 697507 | 698248 |
|  Retained earnings |  | 1606987 | 1675557 |
|  Accumulated other comprehensive income | \*13 | 127973 | 290071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total NHI shareholders' equity before treasury stock |  | 3026960 | 3258369 |
|  Common stock held in treasury, at cost—215,758,589 and 231,754,893 shares |  | (112355) | (119543) |
|  Total NHI shareholders' equity |  | 2914605 | 3138826 |
|  Noncontrolling interests |  | 58198 | 61082 |
|  Total equity |  | 2972803 | 3199908 |
|  Total liabilities and equity |  | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43412156 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49242426 |

---

------

##### [**Table of Contents**](#toc)
**(1) Consolidated Balance Sheets—(Continued) (UNAUDITED)** 

The following table presents the classification of consolidated variable interest entities' ("VIEs") assets and liabilities 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 held in the VIEs. See Note 6 "*Securitizations and Variable Interest Entities*" for further information.

---

| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31,**<br>**2022** | **December 31,**<br>**2022** |
|  Cash and cash deposits | ¥62 | ¥37 |
|  Trading assets and private equity and debt investments | 1024 | 995 |
|  Other assets | 125 | 111 |
|  Total assets | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1211 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1143 |
|  Trading liabilities | ¥0 | ¥— |
|  Other liabilities | 6 | 4 |
|  Borrowings | 892 | 901 |
|  Total liabilities | ¥898 | ¥905 |

---

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

------

##### [**Table of Contents**](#toc)
**(2) Consolidated Statements of Income (UNAUDITED)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **Millions of yen** | **Millions of yen** |
|  | | **Nine months ended December 31** | **Nine months ended December 31** |
|  |<br>**Notes** | **2021** | **2022** |
|  Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions | \*4 | ¥257095 | ¥216085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees from investment banking | \*4 | 115624 | 85257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset management and portfolio service fees | \*4 | 201128 | 204323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on trading | \*2, 3 | 249942 | 444955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on private equity and debt investments |  | 31082 | 9253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividends |  | 217097 | 679225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on investments in equity securities |  | 2964 | (2621) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | \*4 | 113201 | 79584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue |  | 1188133 | 1716061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  | 165027 | 705417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net revenue |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1023106 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1010644 |
|  Non-interest expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits |  | 403883 | 450230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions and floor brokerage |  | 78343 | 88946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information processing and communications |  | 135831 | 155863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and related depreciation |  | 52069 | 50182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business development expenses |  | 11596 | 16363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 164284 | 122277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest expenses |  | 846006 | 883861 |
|  Income before income taxes |  | 177100 | 126783 |
|  Income tax expense | \*12 | 60006 | 43710 |
|  Net income |  | ¥117094 | ¥83073 |
|  Less: Net income (loss) attributable to noncontrolling interests |  | 5061 | (2338) |
|  Net income attributable to NHI shareholders |  | ¥112033 | ¥85411 |
|  |  | **Yen** | **Yen** |
|  |  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **Notes** | **2021** | **2022** |
|  Per share of common stock: | \*10 |  |  |
|  Basic— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share |  | ¥36.40 | ¥28.40 |
|  Diluted— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share |  | ¥35.33 | ¥27.44 |

---

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

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
|  | | **Millions of yen** | **Millions of yen** |
|  | | **Three months ended December 31** | **Three months ended December 31** |
|  |<br>**Notes** | **2021** | **2022** |
|  Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions | \*4 | ¥82573 | ¥77502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees from investment banking | \*4 | 46020 | 33783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset management and portfolio service fees | \*4 | 69891 | 67035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on trading | \*2, 3 | 106806 | 142132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on private equity and debt investments |  | 4619 | 8050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividends |  | 82636 | 373283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on investments in equity securities |  | (2586) | 644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | \*4 | 13793 | 69812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;403752 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;772241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  | 52787 | 378583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net revenue |  | 350965 | 393658 |
|  Non-interest expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits |  | 139035 | 156275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions and floor brokerage |  | 24130 | 32275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information processing and communications |  | 46596 | 54004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and related depreciation |  | 17507 | 17180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business development expenses |  | 4400 | 6311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 39197 | 44047 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-interest expenses |  | 270865 | 310092 |
|  Income before income taxes |  | 80100 | 83566 |
|  Income tax expense | \*12 | 18482 | 17629 |
|  Net income |  | ¥61618 | ¥65937 |
|  Less: Net income (loss) attributable to noncontrolling interests |  | 1285 | (1007) |
|  Net income attributable to NHI shareholders |  | ¥60333 | ¥66944 |
|  |  | **Yen** | **Yen** |
|  |  | **Three months ended December 31** | **Three months ended December 31** |
|  | **Notes** | **2021** | **2022** |
|  Per share of common stock: | \*10 |  |  |
|  Basic— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share |  | ¥19.66 | ¥22.30 |
|  Diluted— |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share |  | ¥19.07 | ¥21.51 |

---

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

------

##### [**Table of Contents**](#toc)
**(3) Consolidated Statements of Comprehensive Income (UNAUDITED)** 

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Net income | ¥117094 | ¥83073 |
|  Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | 45935 | 104090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (477) | (278) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 45458 | 103812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustment | 1493 | 1881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (421) | (492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 1072 | 1389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments | 15608 | 73947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (4711) | (16169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 10897 | 57778 |
|  Total other comprehensive income | 57427 | 162979 |
|  Comprehensive income | ¥174521 | ¥246052 |
|  Less: Comprehensive income (loss) attributable to noncontrolling interests | 6605 | (1457) |
|  Comprehensive income attributable to NHI shareholders | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;167916 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;247509 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Net income | ¥61618 | ¥65937 |
|  Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments | 39565 | (108954) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (275) | 296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 39290 | (108658) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustment | 813 | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (225) | (151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 588 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments | 9652 | 7464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (2580) | (2512) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 7072 | 4952 |
|  Total other comprehensive income (loss) | 46950 | (103689) |
|  Comprehensive income (loss) | ¥108568 | ¥(37752) |
|  Less: Comprehensive income (loss) attributable to noncontrolling interests | 1990 | (2277) |
|  Comprehensive income (loss) attributable to NHI shareholders | ¥106578 | ¥(35475) |

---

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

------

##### [**Table of Contents**](#toc)
**(4) Consolidated Statements of Changes in Equity (UNAUDITED)** 

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Common stock |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | ¥594493 | ¥594493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 594493 | 594493 |
|  Additional paid-in capital |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 696122 | 697507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation awards | (5345) | 758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in an affiliated company's interests | (18) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 690759 | 698248 |
|  Retained earnings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 1533713 | 1606987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders | 112033 | 85411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends<sup>(1)</sup> | (24758) | (15006) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on sales of treasury stock | (2671) | (1835) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 1618317 | 1675557 |
|  Accumulated other comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 18316 | 136912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change during the period | 43914 | 102931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 62230 | 239843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (43477) | (43803) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustment | 1072 | 1389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | (42405) | (42414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (12983) | 34864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments | 10897 | 57778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | (2086) | 92642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 17739 | 290071 |
|  Common stock held in treasury |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (91246) | (112355) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases of common stock | (39648) | (24725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of common stock | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock issued to employees | 17466 | 17537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | (113428) | (119543) |
|  Total NHI shareholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 2807880 | 3138826 |
|  Noncontrolling interests |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 61513 | 58198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends | (2018) | (3299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to noncontrolling interests | 5061 | (2338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income attributable to noncontrolling interests | 1544 | 881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase / sale of subsidiary shares, net | 2734 | (256) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net change in noncontrolling interests | 2501 | 7896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 71335 | 61082 |
|  Total equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2879215 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3199908 |

---

------

(1) Dividends per
share Nine months ended December 31, 2021
¥8.00 Nine months ended December 31, 2022 ¥5.00

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

------

##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Common stock |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | ¥594493 | ¥594493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 594493 | 594493 |
|  Additional paid-in capital |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 684723 | 687297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation awards | 6036 | 10968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in an affiliated company's interests |  | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 690759 | 698248 |
|  Retained earnings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 1557697 | 1608564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders | 60333 | 66944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sales of treasury stock | 287 | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 1618317 | 1675557 |
|  Accumulated other comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative translation adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 23645 | 347231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change during the period | 38585 | (107388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 62230 | 239843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plans |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (42993) | (42431) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension liability adjustment | 588 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | (42405) | (42414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (9158) | 87690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Own credit adjustments | 7072 | 4952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | (2086) | 92642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 17739 | 290071 |
|  Common stock held in treasury |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (74321) | (119870) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases of common stock | (39642) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of common stock | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock issued to employees | 535 | 329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | (113428) | (119543) |
|  Total NHI shareholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 2807880 | 3138826 |
|  Noncontrolling interests |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | 67546 | 64327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends | (104) | (859) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) attributable to noncontrolling interests | 1285 | (1007) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income (loss) attributable to noncontrolling interests | 705 | (1270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase / sale of subsidiary shares, net | 2457 | (340) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other net change in noncontrolling interests | (554) | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | 71335 | 61082 |
|  Total equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of period | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2879215 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3199908 |

---

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

------

##### [**Table of Contents**](#toc)
**(5) Consolidated Statements of Cash Flows (UNAUDITED)** 

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | ¥117094 | ¥83073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 44891 | 46431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on investments in equity securities | (2964) | 2621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on investments in subsidiaries and affiliates | (36249) | (27432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of office buildings, land, equipment and facilities | (3854) | 265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | 13236 | 7255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits | (56695) | (71487) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with stock exchanges and other segregated cash | 76844 | 149080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments | (644204) | (1399840) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities | 418534 | 1167248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell, net of securities sold under agreements to repurchase | (929897) | (832491) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed, net of securities loaned | 334763 | 565506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other secured borrowings | 26528 | (63035) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables, net of allowance for credit losses | (262139) | (114658) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables | 33799 | 59715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonus accrual | (24829) | (38582) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income taxes, net | (66417) | (59310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 27430 | (423441) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in operating activities | (934129) | (949082) |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of office buildings, land, equipment and facilities | (72329) | (144586) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of office buildings, land, equipment and facilities | 51000 | 64585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for purchases of investments in equity securities | (300) | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of investments in equity securities | 551 | 24691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in loans receivable at banks, net | (51124) | (63196) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in non-trading debt securities, net | (44348) | 131007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in investments in affiliated companies, net | 49839 | 37769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 30255 | (1131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (36456) | 49039 |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in long-term borrowings | 2979334 | 1519686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in long-term borrowings | (2144710) | (837791) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in short-term borrowings, net | (389352) | (22322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in deposits received at banks, net | 341786 | 246829 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of common stock held in treasury | 9 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for repurchases of common stock held in treasury | (39648) | (24725) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for cash dividends | (70714) | (57262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions from noncontrolling interests |  | 37115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to noncontrolling interests |  | (27150) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 676705 | 834382 |
|  Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 51447 | 145212 |
|  Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (242433) | 79551 |
|  Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3510011 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3316408 |
|  Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | ¥3267578 | ¥3395959 |
|  Supplemental information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid during the period for— |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | ¥148129 | ¥634486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax payments, net | ¥113187 | ¥95764 |

---

------

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

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Cash and cash equivalents reported in *Cash and cash equivalents* | ¥3267421 | ¥3395791 |
|  Restricted cash and restricted cash equivalents reported in *Deposits with stock exchanges and other segregated cash* | ¥157 | ¥168 |
|  Total cash, cash equivalent, restricted cash and restricted cash equivalents | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3267578 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3395959 |

---

Non-cash—

Total amount of right-of-use assets recognized during the nine months ended December 31, 2021 and December 31, 2022 were ¥21,343 million and ¥20,325 million, respectively.

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

------

##### [**Table of Contents**](#toc)
**Notes to the Consolidated Financial Statements (UNAUDITED)** 

**1. Basis of accounting:** 

In December 2001, Nomura Holdings, Inc. ("the Company") filed a registration statement, in accordance with the Securities Exchange Act of 1934, with the United States Securities and Exchange Commission ("SEC") in order to list its American Depositary Shares ("ADS") on the New York Stock Exchange. Since then, the Company has had an obligation to file an annual report on Form 20-F with the SEC in accordance with the Securities Exchange Act of 1934.

Therefore, the Company and other entities in which it has a controlling financial interest (collectively "Nomura") prepares consolidated financial statements in accordance with the accounting principles, procedures and presentations which are required in order to issue ADS, i.e., U.S. generally accepted accounting principles ("U.S. GAAP"), pursuant to Article 95 of "Regulations Concerning the Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements" (Cabinet Office Ordinance No. 64, 2007).

The following paragraphs describe the major differences between U.S. GAAP applied by Nomura and accounting principles generally accepted in Japan ("Japanese GAAP").

**Scope of consolidation—** 

Under U.S. GAAP, the scope of consolidation is mainly determined by the ownership of a majority of the voting interests in an entity or by identifying the primary beneficiary of variable interest entities. Under Japanese GAAP, the scope of consolidation is determined by a "financial controlling model", which takes into account the ownership level of voting interests in an entity and other factors.

**Unrealized gains and losses on investments in debt and equity securities held for non-trading purposes—** 

Under U.S. GAAP applicable to broker-dealers, non-trading securities, including investments in equity securities held for operating purposes, are measured at fair value with changes in fair value recognized in earnings. Under Japanese GAAP, these securities are also measured at fair value, but unrealized gains and losses, net of applicable income taxes, are reported in other comprehensive income.

**Retirement and severance benefits—** 

Under U.S. GAAP, gains or losses resulting from either experience that is different from an actuarial assumption or a change in assumption is amortized over the average remaining service period of employees when a net gain or loss at the beginning of the year exceeds the "Corridor" which is defined as 10% of the larger of projected benefit obligation or the fair value of plan assets. Under Japanese GAAP, these gains or losses are amortized over a certain period, regardless of the Corridor.

**Amortization of goodwill and equity method goodwill—** 

Under U.S. GAAP, goodwill is not amortized and is tested for impairment periodically. Under Japanese GAAP, goodwill is amortized over a certain periods of less than 20 years using the straight-line method.

**Changes in the fair value of derivative contracts—** 

Under U.S. GAAP, all derivative contracts, including derivative contracts that have been designated as hedges of specific financial assets or financial liabilities, are carried at fair value, with changes in fair value recognized either in earnings or other comprehensive income. Under Japanese GAAP, derivative contracts that have been entered into for hedging purposes are carried at fair value with changes in fair value, net of applicable income taxes, recognized generally in other comprehensive income.

------

##### [**Table of Contents**](#toc)
**Financial assets and financial liabilities—** 

Under U.S. GAAP, the fair value option may be elected for eligible financial assets and financial liabilities which would otherwise be carried on a basis other than fair value ("the fair value option"). Where the fair value option is elected, the financial asset or liability is carried at fair value with changes in fair value are recognized in earnings, except for movements attributable to own credit which are reported in other comprehensive income for financial liabilities. In addition, non-marketable equity securities which are carried at fair value under U.S. GAAP applicable to broker-dealers are carried at cost less impairment loss under Japanese GAAP.

**Offsetting of amounts related to derivative cash collateral—** 

Under U.S. GAAP, an entity that is party to a master netting arrangement is permitted to offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against fair value amounts recognized for derivative instruments that have been offset under the same master netting arrangement. Under Japanese GAAP, offsetting of such amounts is not permitted.

**Stock issuance costs—** 

Under U.S. GAAP, stock issuance costs are deducted from capital. Under Japanese GAAP, stock issuance costs are either immediately expensed or capitalized as a deferred asset and amortized over periods of up to three years using the straight-line method.

**Accounting for change in controlling interest in a consolidated subsidiary's shares—** 

Under U.S. GAAP, when a parent's ownership interest decreases as a result of sales of a subsidiary's common shares by the parent and the subsidiary becomes an equity method investee, the parent's remaining investment in the former subsidiary is measured at fair value as of the date of loss of the controlling interest and a related valuation gain or loss is recognized in earnings. Under Japanese GAAP, the remaining investment on the parent's consolidated balance sheet is computed as the sum of the carrying amount of investment in the equity method investee recorded in the parent's stand-alone balance sheet as adjusted for the share of net income or losses and other adjustments from initial acquisition through to the date of loss of a controlling interest multiplied by the ratio of the remaining shareholding percentage against the holding percentage prior to loss of control.

**Share-based and other compensation awards—** 

Under U.S. GAAP, share-based payment awards such as restricted stock units ("RSUs") issued to employees are classified as equity awards, with total compensation costs measured based on the fair value of the Company's common stock on the grant date. Under Japanese GAAP, total compensation costs of RSUs are measured at fair values at reporting date.

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##### [**Table of Contents**](#toc)
Where the effect of application of an accounting policy under Japanese GAAP has a significant impact on amounts reported by Nomura under U.S. GAAP in *Income before income taxes*, such higher or (lower) impact is disclosed in the following table for the nine and three months ended December 31, 2021 and 2022.

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended** | **Nine months ended** |
|  | **December 31,**<br>**2021** | **December 31,**<br>**2022** |
|  Higher (lower) effect to Income before income taxes based on Japanese GAAP |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains and losses on investments in equity securities held for operating purposes | ¥4627 | ¥(24742) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains and losses on investments in equity securities for other than operating purposes | 796 | 1484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains and losses on investments in debt securities held for non-trading purposes | (2100) | (6006) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of goodwill and equity method goodwill | 2635 | 2271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets and financial liabilities elected for the fair value option | 10966 | (26302) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based and other compensation awards | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4483 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥21407 | ¥(50753) |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended** | **Three months ended** |
|  | **December 31,**<br>**2021** | **December 31,**<br>**2022** |
|  Higher (lower) effect to Income before income taxes based on Japanese GAAP |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains and losses on investments in equity securities held for operating purposes | ¥(1081) | ¥(21239) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains and losses on investments in equity securities for other than operating purposes | 588 | 456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains and losses on investments in debt securities held for non-trading purposes | (1637) | 660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of goodwill and equity method goodwill | 806 | 612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets and financial liabilities elected for the fair value option | (5310) | 11848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based and other compensation awards | 898 | 857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥(5735) | ¥(6806) |

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**Use of estimates—** 

There have been no significant adverse changes in accounting estimates used by management which have had a significant adverse effect on the Company's financial position or financial performance during the nine months ended December 31, 2022.

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**New accounting pronouncements recently adopted—** 

No new accounting pronouncements relevant to Nomura were adopted during the three months ended December 31, 2022.

**Future accounting developments—** 

The following table presents a summary of new authoritative accounting pronouncements relevant to Nomura which will be adopted on or after January 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:

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| | | | |
|:---|:---|:---|:---|
| **Pronouncement** | **Summary of new guidance** | **Expected adoption date and method of adoption** | **Effect on these<br>consolidated**<br> **statements** |
| &nbsp;&nbsp;&nbsp;ASU 2022-02 *"Financial instruments—Credit losses (Topic 326): Troubled debt restructurings and vintage disclosures"* | • Eliminates specific recognition and measurement guidance for troubled debt restructurings ("TDRs"). Single guidance to be applied to all modifications when determining whether a modification results in a new receivable or a continuation of an existing receivable.<br>• Requires to use a discounted cash flow ("DCF") or reconcilable method for measurement of current expected credit losses for modified receivables is removed; where a DCF method is used for the measurement, an effective interest rate (EIR) derived from the modified contractual terms should be applied.<br>• Enhances disclosures by creditors for modifications of receivables from debtors experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, other-than-insignificant payment delay or term extension.<br>• Augments the current requirements for public business entity creditors to disclose current-period gross write-offs by year of origination (i.e., the vintage year) for financing receivables and net investments in leases.<br>| Nomura plans to adopt the amendments from April 1, 2023. | No material financial impact expected unless a significant number of TDRs occur in the future.<br>Certain disclosures about modification of receivables and write-offs will be updated or removed. |
| &nbsp;&nbsp;&nbsp;ASU 2022-03 *"Fair value measurement (Topic 820)"* | • Clarifies that a contractual sale restriction is an entity-specific characteristic and therefore should not be considered in the fair value measurement of an equity security.<br>• Enhances disclosures for fair value of investments in equity securities subject to contractual sale restrictions, nature and remaining duration of the restrictions and circumstances that could cause a lapse in the restrictions.<br>| Nomura plans to adopt the amendments from April 1, 2024. | No material financial impact expected. |

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**2. Fair value measurements:** 

**The fair value of financial instruments** 

A significant amount of Nomura's financial instruments is measured at fair value. Financial assets measured at fair 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 measured 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 measured at fair value on a nonrecurring basis, where the primary measurement basis is not fair value but where fair value is used in specific circumstances after initial recognition, such as to measure impairment.

In all cases, fair value is determined in accordance with ASC 820 "*Fair Value Measurements and Disclosures*" ("ASC 820") which defines 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 of account of the financial instrument. However, certain financial instruments managed on a portfolio basis are valued as a portfolio, namely based on the price that would be received to sell a net long position (i.e., a net financial asset) or transfer a net short position (i.e., a net financial liability) consistent with how market participants would price the net risk exposure at the measurement date.

Financial assets measured 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 per share is calculated in accordance with certain industry standard principles.

Increases and decreases in the fair value of assets and liabilities will significantly impact Nomura's position, performance, liquidity and capital resources. As explained below, valuation techniques applied contain inherent uncertainties and Nomura is unable to predict the accurate impact of future developments in the market. The valuation of financial instruments is more difficult during periods of market stress as a result of greater volatility and reduced price transparency, such as during the COVID-19 pandemic in 2020 and 2021 and during the invasion of Ukraine by the Russian Federation in 2022, and may therefore require the greater use of judgement in the determination of fair value. Where appropriate, Nomura uses economic hedging strategies to mitigate its risk, although these hedges are also subject to unpredictable movements in the market.

**Valuation methodology for financial instruments carried at fair value on a recurring basis** 

The fair value of financial instruments is based on quoted market prices including market indices, broker or dealer quotations or an estimation by management of the expected exit price under current market conditions. Various financial instruments, including cash instruments and over-the-counter ("OTC") contracts, have bid and offer prices that are observable in the market. These are measured at the point within the bid-offer range which best represents Nomura's estimate of fair value. Where quoted market prices or broker or dealer quotations are not available, prices for similar instruments 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 fair value of assets or liabilities marked using such prices. Other instruments may be measured using valuation techniques, such as valuation pricing models incorporating observable valuation inputs, unobservable parameters or a combination of both. Valuation pricing models use valuation inputs which would be considered by market participants in valuing similar financial instruments.

Valuation pricing models and their underlying assumptions impact the amount and timing of unrealized and realized gains and losses recognized, and the use of different valuation pricing models or underlying assumptions could produce different financial results. Valuation uncertainty results from a variety of factors, including the valuation technique or model selected, the quantitative assumptions used within the valuation model, the inputs into the model, as well as other factors. Valuation adjustments are used to reflect the assessment of this uncertainty. Common valuation adjustments include model reserves, credit adjustments, close-out adjustments, and other appropriate instrument-specific adjustments, such as those to reflect transfer or sale restrictions.

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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 for these calculations are reassessed periodically to reflect current market practice and the availability of new information.

For example, the fair value of certain financial instruments includes adjustments for credit risk; both with regards to counterparty credit risk on positions held and Nomura's own creditworthiness on positions issued. Credit risk on financial assets is significantly mitigated by credit enhancements such as collateral and netting arrangements. Any net credit exposure is measured using available and applicable valuation inputs for the relevant counterparty. The same approach is used to measure the credit exposure on Nomura's financial liabilities as is used to measure counterparty credit risk on Nomura's financial assets.

Such valuation pricing models are calibrated to the market on a regular basis and inputs used are adjusted for current market conditions and risks. The Valuation Model Validation Group within Nomura's Risk Management Department reviews pricing models and assesses model appropriateness and consistency independently of the front office. The model reviews consider a number of factors about a model's suitability for valuation 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 can impact Nomura's estimates of fair value in the future, potentially affecting trading gains and losses. Where financial contracts have longer maturity dates, Nomura's estimates of fair value may involve greater subjectivity due to the lack of transparent market data.

**Fair value hierarchy** 

All financial instruments measured at fair value, including those measured at fair value using the fair value option, have been categorized into a three-level hierarchy ("fair value hierarchy") based on the transparency of valuation 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 most transparent inputs and Level 3 representing the least transparent inputs:

Level 1:

Observable valuation inputs that reflect quoted prices (unadjusted) for identical financial instruments traded in active markets at the measurement date.

Level 2:

Valuation inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the financial instrument.

Level 3:

Unobservable valuation inputs which reflect Nomura assumptions and specific data.

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The availability of valuation inputs observable in the market varies by product and can be affected by a variety of factors. Significant factors include, but are not restricted to the prevalence of similar products in the market, especially for customized products, how established the product is in the market, for example, whether it is a new product or is relatively mature, and the reliability of information provided in the market which would depend, for example, on the frequency and volume of current data. A period of significant change in the market may reduce the availability of observable data. Under such circumstances, financial instruments may be reclassified into a lower level in the fair value hierarchy.

Significant judgments used in determining the classification of financial instruments include the nature of the market in which the product would be traded, the underlying risks, the type and liquidity of market data inputs and the nature of observed transactions for similar instruments.

Where valuation models include the use of valuation inputs which are less observable or unobservable in the market, significant management judgment is used in establishing fair value. The valuations for Level 3 financial instruments, therefore, involve a greater degree of judgment than those valuations for Level 1 or Level 2 financial instruments and has become more prevalent during the COVID-19 pandemic.

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.

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The following tables present the amounts of Nomura's financial instruments measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2022 within the fair value hierarchy.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Level 1** | **Level 2** | **Level 3** | **Counterparty**<br>**and Cash**<br>**Collateral**<br>**Netting<sup>(1)</sup>** | **Balance as of**<br>**March 31,<br>2022** |
|  Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments<sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities<sup>(3)</sup> | ¥2100 | ¥1041 | ¥14 | ¥— | ¥3155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments<sup>(5)</sup> | 22 |  | 32 |  | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government securities | 1730 |  |  |  | 1730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities |  | 184 | 2 |  | 186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 3220 | 2010 | 10 |  | 5240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes |  | 1134 | 220 |  | 1354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") |  | 0 | 7 |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") |  | 1450 | 8 |  | 1458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued/Guaranteed by government sponsored entity |  | 1376 |  |  | 1376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 74 | 8 |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities |  | 58 | 79 |  | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other<sup>(6)</sup> |  | 34 | 26 |  | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 293 | 23 | 0 |  | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | 7365 | 5934 | 398 |  | 13697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets<sup>(7)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 3 | 874 | 97 |  | 974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 120 | 11755 | 63 |  | 11938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 12 | 398 | 33 |  | 443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts |  | 4777 | 29 |  | 4806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 1 | 0 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netting |  |  |  | (16608) | (16608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivative assets | 136 | 17804 | 222 | (16608) | 1554 |
|  Subtotal | ¥7501 | ¥23738 | ¥620 | ¥(16608) | ¥15251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables<sup>(8)</sup> |  | 1103 | 205 |  | 1308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements<sup>(9)</sup> |  | 282 | 16 |  | 298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets<sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-trading debt securities | 117 | 367 |  |  | 484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(3)(4)</sup> | 146 | 136 | 197 |  | 479 |
|  Total | ¥7764 | ¥25626 | ¥1038 | ¥(16608) | ¥17820 |
|  Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥1796 | ¥8 | ¥0 | ¥— | ¥1804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government securities | 1098 |  |  |  | 1098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities |  | 0 |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 3451 | 1328 | 0 |  | 4779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities |  | 222 | 3 |  | 225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") |  | 0 |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other<sup>(6)</sup> |  | 3 | 0 |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 76 | 0 | 0 |  | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading liabilities | 6421 | 1561 | 3 |  | 7985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities<sup>(7)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 2 | 1368 | 87 |  | 1457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 60 | 10826 | 74 |  | 10960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 14 | 434 | 66 |  | 514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 0 | 4795 | 19 |  | 4814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 0 | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netting |  |  |  | (16079) | (16079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivative liabilities | 76 | 17424 | 246 | (16079) | 1667 |
|  Subtotal | ¥6497 | ¥18985 | ¥249 | ¥(16079) | ¥9652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings<sup>(11)</sup> |  | 653 | 58 |  | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits<sup>(10)(12)</sup> |  | 63 | 8 |  | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing<sup>(9)</sup> |  | 516 |  |  | 516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings<sup>(11)(13)(14)</sup> | 23 | 4055 | 479 |  | 4557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities<sup>(15)</sup> | 32 | 155 | 32 |  | 219 |
|  Total | ¥6552 | ¥24427 | ¥826 | ¥(16079) | ¥15726 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **Level 1** | **Level 2** | **Level 3** | **Counterparty**<br>**and Cash**<br>**Collateral**<br>**Netting<sup>(1)</sup>** | **Balance as of**<br>**December 31,<br>2022** |
|  Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments<sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities<sup>(3)</sup> | ¥1846 | ¥1010 | ¥7 | ¥— | ¥2863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments<sup>(5)</sup> | 13 |  | 35 |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government securities | 2588 |  |  |  | 2588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities |  | 103 | 2 |  | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 3730 | 1840 | 7 |  | 5577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes |  | 1028 | 312 |  | 1340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") |  | 7 | 0 |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") |  | 2928 | 8 |  | 2936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issued/Guaranteed by government sponsored entity |  | 2804 |  |  | 2804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | 124 | 8 |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities |  | 0 | 114 |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other<sup>(6)</sup> |  | 30 | 22 |  | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 198 | 26 | 3 |  | 227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | 8375 | 6972 | 510 |  | 15857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets<sup>(7)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 0 | 1018 | 11 |  | 1029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 87 | 19143 | 162 |  | 19392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 9 | 236 | 62 |  | 307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 0 | 6169 | 52 |  | 6221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 0 | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netting |  |  |  | (25507) | (25507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivative assets | 96 | 26567 | 287 | (25507) | 1443 |
|  Subtotal | ¥8471 | ¥33539 | ¥797 | ¥(25507) | ¥17300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables<sup>(8)</sup> |  | 1183 | 237 |  | 1420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements<sup>(9)</sup> |  | 237 | 17 |  | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets<sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-trading debt securities | 94 | 262 | 3 |  | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(3)(4)</sup> | 174 | 81 | 181 |  | 436 |
|  Total | ¥8739 | ¥35302 | ¥1235 | ¥(25507) | ¥19769 |
|  Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥2010 | ¥26 | ¥1 | ¥— | ¥2037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government securities | 1006 |  |  |  | 1006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities |  | 9 |  |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 4648 | 1051 | 1 |  | 5700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities |  | 270 | 4 |  | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") |  | 0 |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other<sup>(6)</sup> |  | 0 | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 181 |  | 0 |  | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading liabilities | 7845 | 1356 | 6 |  | 9207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities<sup>(7)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 0 | 1497 | 2 |  | 1499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 38 | 18639 | 167 |  | 18844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 7 | 283 | 80 |  | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 0 | 5787 | 30 |  | 5817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 0 | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netting |  |  |  | (24508) | (24508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivative liabilities | 45 | 26207 | 279 | (24508) | 2023 |
|  Subtotal | ¥7890 | ¥27563 | ¥285 | ¥(24508) | ¥11230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings<sup>(11)</sup> |  | 474 | 25 |  | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits<sup>(10)(12)</sup> |  | 132 | 14 |  | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing<sup>(9)</sup> |  | 695 |  |  | 695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings<sup>(11)(13)(14)</sup> | 25 | 4190 | 453 |  | 4668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities<sup>(15)</sup> | 83 | 94 | 19 |  | 196 |
|  Total | ¥7998 | ¥33148 | ¥796 | ¥(24508) | ¥17434 |

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(1) Represents the amount offset under counterparty netting of derivative assets and liabilities as well as cash
collateral netting against net derivatives.

(2) Certain investments that are measured at fair value using net asset value per share as a practical expedient
have not been classified in the fair value hierarchy. As of March 31, 2022 and December 31, 2022, the fair values of these investments which are included in *Trading assets and private equity and debt investments* were
¥45 billion and ¥48 billion, respectively. As of March 31, 2022 and December 31, 2022, the fair values of these investments which are included in *Other assets* 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 ¥76,675 million and ¥28,366 million, respectively, as of December 31, 2022.

(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. 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 to these investments as permitted under
ASC 825.

(6) Includes collateralized loan obligations ("CLOs") and asset-backed securities ("ABS") such
as those secured on credit card loans, auto loans 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. If unrealized gains are greater than
unrealized losses, deposits are reduced by the excess amount.

(13) Includes embedded derivatives bifurcated from issued structured notes. If unrealized gains are greater than
unrealized losses, borrowings are reduced by the excess amount.

(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 fair value 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 and frequency of trading activity. Where these securities are classified in Level 1 of the fair value hierarchy, no valuation adjustments are made to fair value. Listed equity securities traded in inactive markets are also generally valued using the exchange price and are classified in Level 2. Whilst rare in practice, Nomura may apply a discount or liquidity adjustment to the exchange price of a listed equity security traded in an inactive market if the exchange price is not considered to be an appropriate representation of fair value. These adjustments are determined by individual security and are not determined or influenced by the size of holding. The amount of such adjustments made to listed equity securities traded in inactive markets was ¥nil as of March 31, 2022 and December 31, 2022, respectively. The fair value of unlisted equity securities is determined using the same valuation technique as private equity and debt investments described below and are usually classified in Level 3 because significant valuation inputs such as liquidity discounts and credit spreads are unobservable.

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*Private equity and debt investments*—The determination of fair value of unlisted private equity and debt investments requires significant management judgment because the investments, by their nature, have little or no price transparency. Private equity and debt investments are initially carried at cost as an approximation of fair value. Adjustments to carrying value are made if there is third-party evidence of a change in value. Adjustments are also made, in the absence of third-party transactions, if it is determined that the expected exit price of the investment is different from carrying value. In reaching that determination, Nomura primarily uses either a discounted cash flow ("DCF") or market multiple valuation technique. A DCF valuation technique incorporates estimated future cash flows to be generated from the underlying investee, as adjusted for an appropriate growth rate discounted at a weighted average cost of capital ("WACC"). Market multiple valuation techniques include comparables such as Enterprise Value/earnings before interest, taxes, depreciation and amortization ("EV/EBITDA") ratios, Price/Earnings ("PE") ratios, Price/Book ratios, Price/Embedded Value ratios and other multiples based on relationships between numbers reported in the financial statements of the investee and the price of comparable companies. A liquidity discount may also be applied to either a DCF or market multiple valuation to reflect the specific characteristics of the investee. The liquidity discount includes considerations for various uncertainties in the model and inputs to valuation. Where possible these valuations are compared with the operating cash flows and financial performance of the investee or properties relative to budgets or projections, price/earnings data for similar quoted companies, trends within sectors and/or regions and any specific rights or terms associated with the investment, such as conversion features and liquidation preferences. Private equity and debt investments are generally classified in Level 3 since the valuation inputs such as those mentioned above are usually unobservable.

*Government, agency and municipal securities*—The fair value of Japanese and other G7 government securities is primarily determined using quoted market prices, executable broker or dealer quotations, or alternative pricing sources. These securities are traded in active markets and therefore are classified within Level 1 of the fair value hierarchy. Non-G7 government securities, agency securities and municipal securities are valued using similar pricing sources but are generally classified in Level 2 as they are traded in inactive markets. Certain non-G7 securities may be classified in Level 1 because they are traded in active markets. Certain securities may be classified in Level 3 because they are traded infrequently and there is not sufficient information from comparable securities to classify them in Level 2. These are valued using DCF valuation techniques which include significant unobservable valuation inputs such as credit spreads of the issuer.

*Bank and corporate debt securities*—The fair value of bank and corporate debt securities is primarily determined using DCF valuation techniques but also using broker or dealer quotations and recent market transactions of identical or similar debt 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 for DCF valuations are yield curves, asset swap spreads, recovery rates and credit spreads of the issuer. Bank and corporate debt securities are generally classified in Level 2 of the fair value hierarchy because these valuation inputs are usually observable or market-corroborated. Certain bank and corporate debt securities will be classified in Level 3 because they are traded infrequently and there is insufficient information from comparable securities to classify them in Level 2, or credit spreads or recovery rates of the issuer used in DCF valuations are unobservable.

*Commercial mortgage-backed securities ("CMBS")* and *Residential mortgage-backed securities ("RMBS")*—The fair value of CMBS and RMBS are primarily determined using DCF valuation techniques but also using broker or dealer quotations and recent market transactions of identical 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 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 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 or dealer quotations, recent market transactions or by reference to a comparable market index. Consideration is given to the nature of the broker and dealer quotations, namely whether these are indicative or executable, the number of available quotations and how these quotations compare to any available recent market activity or alternative 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.

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*Collateralized debt obligations ("CDOs") and other*—The fair value of CDOs is 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 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 of the fair value hierarchy because these valuation inputs are observable 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*—The fair value of investment trust funds is primarily determined using NAV per share. Publicly traded funds which are valued using a daily NAV per share are classified in Level 1 of the fair value hierarchy. For funds that are not publicly traded but Nomura has the ability to redeem its investment with the investee at NAV per share on the balance sheet date or within the near term, the investments are classified in Level 2. Investments where Nomura does not have the ability to redeem in the near term or does not know when it can redeem are classified in Level 3. The fair value of certain other investments reported within *Investment trust funds and other* is determined using DCF valuation techniques. These investments are classified in Level 3 as the valuation includes significant unobservable valuation inputs such as credit spreads of issuer and correlation.

*Derivatives—Equity contracts*—Nomura enters into both exchange-traded and OTC equity derivative transactions such as index and equity options, equity basket options and index and equity swaps. Where these derivatives are traded in active markets and the exchange price is 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 are classified 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 are observable or market-corroborated. Certain less liquid vanilla or more complex equity derivatives are classified in Level 3 where dividend yield, volatility or correlation valuation inputs are significant and unobservable.

*Derivatives—Interest rate contracts*—Nomura enters into both exchange-traded and OTC interest rate derivative transactions such as interest rate swaps, currency swaps, interest rate options, forward rate agreements, swaptions, caps and floors. Where these derivatives are traded in active markets and the exchange price is representative of fair value, the fair value of exchange-traded interest rate derivatives is determined using an unadjusted exchange price and classified in Level 1 of the fair value hierarchy. The fair value of exchange-traded interest rate derivatives which are traded in inactive markets or where the exchange price is not representative of fair value is determined using a model price and are classified in Level 2. The fair value of OTC interest rate derivatives is determined through DCF valuation techniques as well as option models such as Black-Scholes and Monte 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 to reflect 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 and adjustments 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 and Monte Carlo simulation. The significant valuation inputs used include interest rates, credit spreads, recovery rates, default probabilities, volatilities and correlations. Valuation adjustments are also made to model valuations in order to reflect counterparty credit risk 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 or more complex OTC credit derivatives are classified in Level 3 where credit spread, recovery rate, volatility or correlation valuation inputs are significant and unobservable.

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*Derivatives—Foreign exchange contracts*—Nomura enters into both exchange-traded and OTC foreign exchange derivative transactions such as foreign exchange forwards and currency options. The fair value of exchange-traded foreign exchange derivatives which are traded in inactive markets or where the exchange price is not representative of fair value is determined using a model price and are classified in Level 2. The fair value of OTC foreign exchange derivatives is determined through DCF valuation techniques as well as option models such as Black-Scholes and 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 in order to reflect counterparty credit risk on derivative assets and Nomura's own creditworthiness on derivative liabilities. OTC foreign exchange derivatives are generally classified in Level 2 because all significant valuation inputs and adjustments are observable or market-corroborated. Certain foreign exchange derivatives are classified in Level 3 where interest rates, volatility or correlation valuation inputs are significant and unobservable.

Nomura includes valuation adjustments in its estimation of fair value of certain OTC derivatives relating to funding costs associated with 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 valuation of corporate debt securities described above. Loans and receivables are generally classified in Level 2 of the fair value 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 from comparable securities to classify them in Level 2 or credit spreads of the issuer or recovery rates used in DCF valuations are significant and unobservable.

*Collateralized agreements* and *Collateralized financing*—The primary types of collateralized agreement and financing transactions carried at fair value are reverse repurchase and repurchase agreements elected for the fair value option. The fair value of these financial instruments is primarily determined using DCF valuation techniques. The significant valuation inputs used include interest rates and collateral funding spreads such as 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 some other variables, such as an equity or equity index, commodity price, foreign exchange rate, credit rating of a third party or a more complex interest rate (i.e., an embedded derivative).

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The fair value of structured notes is determined using a quoted price in an active market for the identical liability if available, and where not available, using a mixture of valuation techniques that use the quoted price of the identical liability when traded as an asset, quoted prices for similar liabilities, similar liabilities when traded as assets, or an internal model which combines DCF valuation techniques and option pricing models, depending on the nature of the embedded features within the structured note. Where an internal model is used, Nomura estimates the fair value of 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 and is therefore typically treated as a Level 2 valuation input. Structured notes are generally classified in Level 2 of the 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 and therefore, no adjustment is made to reflect Nomura's own creditworthiness.

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**Level 3 financial instruments** 

The valuation of Level 3 financial assets and liabilities is dependent on certain significant valuation inputs which are unobservable. Common characteristics of an inactive market include a low number of transactions of the financial instrument, stale or non-current price quotes, price quotes that vary substantially either over time or among market makers, non-executable broker quotes or little publicly released information.

If corroborative evidence is not available to value Level 3 financial instruments, fair value may be measured using other equivalent products in 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 such as 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 specific valuation for each instrument is based on management's judgment of prevailing market conditions, in accordance with Nomura's established valuation policies and procedures.

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**Quantitative and qualitative information regarding significant unobservable valuation inputs** 

The following tables present quantitative and qualitative information about the significant unobservable valuation inputs used by Nomura to measure the fair value of financial instruments classified in Level 3 as of March 31, 2022 and December 31, 2022. 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 of these 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 and the interrelationship between significant unobservable valuation inputs where more than one is used to determine fair value measurement of the financial instruments.

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|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
| **Financial Instrument** | **Fair<br>value in<br>billions<br>of yen** | **Valuation**<br> **technique** | **Significant**<br> **unobservable<br>valuation input** | **Range of**<br> **valuation inputs<sup>(1)</sup>** | **Weighted**<br> **Average<sup>(2)(3)</sup>** | **Impact of**<br> **increases in<br>significant<br>unobservable<br>valuation**<br> **inputs<sup>(4)(5)</sup>** | **Interrelationships**<br> **between valuation**<br> **inputs<sup>(6)</sup>** |
|  Assets: |  |  |  |  |  |  |  |
|  Trading assets and private equity and debt investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14 | DCF | Liquidity discounts | 75.0% | 75.0% | Lower fair value | Not applicable |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 32 | DCF | WACC<br> Growth rates<br> Liquidity discounts | 7.1 – 13.0%<br> 0.0 – 2.0%<br> 5.0 – 30.0% | 10.2%<br> 0.7%<br> 18.5% | Lower fair value<br> Higher fair value<br> Lower fair value | No predictable<br> interrelationship |
|  |  | Market multiples | EV/EBITDA ratios<br> PE Ratios<br> Liquidity discounts | 2.0 – 11.2 x<br> 10.7 – 12.6 x<br> 5.0 – 20.0% | 6.9 x<br> 11.6 x<br> 11.9% | Higher fair value<br> Higher fair value<br> Lower fair value | No predictable<br> interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 10 | DCF | Credit spreads<br> Recovery rates | 0.0 – 1.3%<br> 6.0% | 0.7%<br> 6.0% | Lower fair value<br> Higher fair value | No predictable<br> interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | 220 | DCF | Credit spreads<br> Recovery rates | 0.1 – 114.7%<br> 0.0 – 100.0% | 7.2%<br> 84.4% | Lower fair value<br> Higher fair value | No predictable<br> interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage backed securities ("CMBS") | 7 | DCF | Yields<br> Loss severities | 4.3 – 11.1%<br> 28.3 – 73.0% | 4.6%<br> 40.8% | Lower fair value<br> Lower fair value | No predictable<br> interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage backed securities ("RMBS") | 8 | DCF | Yields<br> Prepayment rates<br> Loss severities | 0.0 – 22.2%<br> 6.9 – 15.0%<br> 0.0 – 99.9% | 8.4%<br> 9.5%<br> 6.9% | Lower fair value<br> Lower fair value<br> Lower fair value | No predictable<br> interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 79 | DCF | Loss severities | 0.0 – 21.2% | 2.9% | Lower fair value | Not applicable |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 26 | DCF | Yields<br> Prepayment rates<br> Default probabilities<br> Loss severities | 5.5 – 27.5%<br> 18.0 – 20.0%<br> 2.0%<br> 0.0 – 100.0% | 13.1%<br> 19.5%<br> 2.0%<br> 44.0% | Lower fair value<br> Lower fair value<br> Lower fair value<br> Lower fair value | Change in default probabilities typically accompanied by directionally similar change in loss severities and opposite change in prepayment rates |

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|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
| **Financial Instrument** | **Fair<br>value in<br>billions<br>of yen** | **Valuation**<br> **technique** | **Significant**<br> **unobservable**<br> **valuation input** | **Range of**<br> **valuation inputs<sup>(1)</sup>** | **Weighted**<br> **Average<sup>(2)(3)</sup>** | **Impact of**<br> **increases in<br>significant<br>unobservable<br>valuation**<br> **inputs<sup>(4)(5)</sup>** | **Interrelationships**<br> **between valuation**<br> **inputs<sup>(6)</sup>** |
|  Derivatives, net: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | ¥10 | Option models | Dividend yield<br> Volatilities<br> Correlations | 0.0 – 12.6%<br> 0.0 – 109.7%<br> (0.80) – 0.97 | — <br> — <br> —  | Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (11) | DCF/<br> Option models | Interest rates<br> Volatilities<br> Volatilities<br> Correlations | 0.3 – 3.3%<br> 9.2 – 13.9%<br> 34.8 – 128.3 bp<br> (1.00) – 0.98 | — <br> — <br> — <br> —  | Higher fair value Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | (33) | DCF/<br> Option models | Credit spreads<br> Recovery rates<br> Volatilities<br> Correlations | 0.0 – 428.7%<br> 0.0 – 90.0%<br> 50.0 – 67.6%<br> 0.00 – 0.90 | — <br> — <br> — <br> —  | Higher fair value Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 10 | Option models | Interest rates<br> Volatilities<br> Volatilities<br> Correlations | 0.3 – 2.9%<br> 2.4 – 39.3%<br> 13.9 – 24.0 bp<br> (0.25) – 0.84 | — <br> — <br> — <br> —  | Higher fair value Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
|  Loans and receivables | 205 | DCF | Credit spreads<br> Recovery rates | 0.0 – 21.5%<br> 44.0 – 100.0% | 6.0%<br> 98.2% | Lower fair value Higher fair value | No predictable interrelationship |
|  Collateralized agreements | 16 | DCF | Repo rate | 2.8 – 6.0% | 3.6% | Lower fair value | Not applicable |
|  Other assets |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(7)</sup> | 197 | DCF | WACC<br> Growth rates<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity discounts  | 10.1%<br> 2.0%<br> 10.0% | 10.1%<br> 2.0%<br> 10.0% | Lower fair value Higher fair value Lower fair value | No predictable interrelationship |
|  |  | Market multiples | EV/EBITDA ratios<br> PE Ratios<br> Price/Book ratios<br> Liquidity discounts | 3.6 – 5.9 x<br> 6.7 – 30.8 x<br> 0.3 – 1.7 x<br> 25.0 – 40.0% | 4.4 x<br> 13.1 x<br> 0.9 x<br> 30.6% | Higher fair value Higher fair value Higher fair value Lower fair value | Generally changes in<br> multiples result in a<br> corresponding similar<br> directional change in a fair<br> value measurement, assuming earnings levels<br> remain constant. |
|  Liabilities: |  |  |  |  |  |  |  |
|  Trading Liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 3 | DCF | Recovery rates | 3.9 – 97.0% | 84.1% | Higher fair value | Not applicable |
|  Short-term borrowings | 58 | DCF/<br> Option<br> models | Volatilities<br> Correlations | 5.0 – 97.0%<br> (0.80) – 0.93 | — <br> —  | Higher fair value Higher fair value | No predictable interrelationship |
|  Payable and deposits | 8 | DCF/<br> Option<br> models | Volatilities<br> Volatilities<br> Correlations | 9.2 – 11.3%<br> 41.2 – 69.6 bp<br> 0.34 – 0.98 | — <br> — <br> —  | Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
|  Long-term borrowings | 479 | DCF | Loss severities | 0.0% | 0.0% | Lower fair value | Not applicable |
|  |  | DCF/<br> Option<br> models | Volatilities<br> Volatilities<br> Correlations | 5.0 – 97.0%<br> 41.2 – 69.6 bp<br> (1.00) – 0.98 | — <br> — <br> —  | Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
|  Other liabilities | 32 | DCF | Recovery rates | 90.0% | 90.0% | Higher fair value | Not applicable |

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|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| **Financial Instrument** | **Fair<br>value in<br>billions<br>of yen** | **Valuation**<br> **technique** | **Significant**<br> **unobservable input** | **Range of**<br> **valuation inputs<sup>(1)</sup>** | **Weighted**<br> **Average<sup>(2)(3)</sup>** | **Impact of**<br> **increases in<br>significant<br>unobservable<br>valuation**<br> **inputs<sup>(4)(5)</sup>** | **Interrelationships**<br> **between valuation**<br> **inputs<sup>(6)</sup>** |
|  Assets: |  |  |  |  |  |  |  |
|  Trading assets and private equity and debt investments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 | DCF | Liquidity discounts | 75.0% | 75.0% | Lower fair value | Not applicable |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 35 | DCF | WACC<br> Growth rates<br> Credit spreads<br> Liquidity discounts | 5.4 – 17.4%<br> 0.0 – 2.0%<br> 7.5 – 10.9%<br> 5.0 – 30.0% | 10.3%<br> 0.7%<br> 9.4%<br> 18.0% | Lower fair value Higher fair value Lower fair value Lower fair value | No predictable interrelationship |
|  |  | Market multiples | EV/EBITDA ratios<br> PE Ratios<br> Liquidity discounts | 0.7 – 11.7 x<br> 11.2 – 25.7 x<br> 5.0 – 30.0% | 7.8 x<br> 14.2 x<br> 12.8% | Higher fair value Higher fair value Lower fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 7 | DCF | Credit spreads<br> Recovery rates | 0.0 – 1.5%<br> 6.5 – 18.0% | 0.8%<br> 7.3% | Lower fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | 312 | DCF | Credit spreads<br> Recovery rates | 0.0 – 61.8%<br> 0.0 – 100.0% | 7.6%<br> 85.6% | Lower fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 8 | DCF | Yields<br> Prepayment rates<br> Loss severities | 16.0 – 25.7%<br> 12.0 – 15.0%<br> 0.4 – 99.9% | 21.9%<br> 13.2%<br> 20.4% | Lower fair value Lower fair value Lower fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 114 | DCF | Loss severities | 1.6 – 20.6% | 6.3% | Lower fair value | Not applicable |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 22 | DCF | Yields<br> Prepayment rates<br> Default probabilities<br> Loss severities | 6.4 – 34.1%<br> 20.0%<br> 2.0%<br> 100.0% | 18.7%<br> 20.0%<br> 2.0%<br> 100.0% | Lower fair value Lower fair value Lower fair value Lower fair value | Change in default probabilities<br> typically accompanied by<br> directionally similar change in loss severities and opposite<br> change in prepayment rates |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 3 | DCF | Liquidity discounts | 0.0 – 2.0% | 0.8% | Lower fair value | Not applicable |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| **Financial Instrument** | **Fair<br>value in<br>billions<br>of yen** | **Valuation**<br> **technique** | **Significant**<br> **unobservable input** | **Range of**<br> **valuation inputs<sup>(1)</sup>** | **Weighted**<br> **Average<sup>(2)(3)</sup>** | **Impact of<br>increases in<br>significant<br>unobservable**<br> **valuation**<br> **inputs<sup>(4)(5)</sup>** | **Interrelationships**<br> **between valuation**<br> **inputs<sup>(6)</sup>** |
|  Derivatives, net: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 | Option<br> models | Dividend yield<br> Volatilities<br> Correlations | 0.0 – 27.1%<br> 9.5 – 120.2%<br> (0.84) – 0.97 | — <br> — <br> —  | Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (5) | DCF/<br> Option<br> models | Interest rates<br> Volatilities<br> Volatilities<br> Correlations | 1.3 – 4.9%<br> 10.7 – 14.5%<br> 40.9 – 132.5 bp<br> (1.00) – 0.99 | — <br> — <br> — <br> —  | Higher fair value Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | (18) | DCF/<br> Option<br> models | Credit spreads<br> Recovery rates<br> Volatilities<br> Correlations | 0.0 – 668.1%<br> 0.0 – 90.0%<br> 48.2 – 53.6%<br> 0.21 – 0.90 | — <br> — <br> — <br> —  | Higher fair value Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 22 | Option models | Interest rates<br> Volatilities<br> Volatilities<br> Correlations | 3.6%<br> 1.0 – 25.4%<br> 0.0 bp<br> 0.11 – 0.84 | — <br> — <br> — <br> —  | Higher fair value Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
|  Loans and receivables | 237 | DCF | Credit spread<br> Recovery rates | 0.0 – 122.1%<br> 39.1 – 100.0% | 8.4%<br> 96.1% | Lower fair value Higher fair value | No predictable interrelationship |
|  Collateralized agreements | 17 | DCF | Repo rate | 2.8 – 6.0% | 3.4% | Lower fair value | Not applicable |
|  Other assets |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-trading debt securities | 3 | DCF | Credit spreads | 0.0% | 0.0% | Lower fair value | No predictable interrelationship |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(7)</sup> | 181 | DCF | WACC<br> Growth rates<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity discounts  | 11.4%<br> 3.0%<br> 10.0% | 11.4%<br> 3.0%<br> 10.0% | Lower fair value Higher fair value Lower fair value | No predictable interrelationship |
|  |  | Market multiples | EV/EBITDA ratios<br> PE Ratios<br> Price/Book ratios<br> Liquidity discounts | 3.5 – 5.6 x<br> 7.8 – 30.8 x<br> 0.3 – 1.5 x<br> 25.0 – 30.0% | 4.2 x<br> 11.1 x<br> 0.7 x<br> 29.8% | Higher fair value Higher fair value Higher fair value Lower fair value | Generally changes in<br> multiples result in a<br> corresponding similar<br> directional change in a fair<br> value measurement, assuming<br> earnings levels<br> remain constant. |
|  Liabilities: |  |  |  |  |  |  |  |
|  Trading liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt sec. | 4 | DCF | Recovery rates | 2.0 – 98.5% | 93.2% | Higher fair value | Not applicable |
|  Short-term borrowings | 25 | DCF/<br> option<br> models | Volatilities<br> Correlations | 17.2 – 68.7%<br> (0.71) – 0.94 | — <br> —  | Higher fair value Higher fair value | No predictable interrelationship |
|  Payables and deposits | 14 | DCF/<br> option<br> models | Volatilities<br> Correlations | 10.7 – 11.3%<br> 0.40 – 0.98 | — <br> —  | Higher fair value Higher fair value | No predictable interrelationship |
|  Long-term borrowings | 453 | DCF | Loss severities | 0.0% | 0.0% | Lower fair value | Not applicable |
|  |  | DCF/<br> option<br> models | Volatilities<br> Volatilities<br> Correlations | 10.7 – 68.7%<br> 53.7 – 68.6 bp<br> (1.00) – 0.98 | — <br> — <br> —  | Higher fair value Higher fair value Higher fair value | No predictable interrelationship |
|  Other liabilities | 19 | DCF | Recovery rates | 69.2 – 100.0% | 90.8% | Higher fair value | Not applicable |

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(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 reflect increased uncertainty or subjectivity in the valuation input and is typically just a
consequence of the different characteristics of the financial 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 from the 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 measurement of the financial instrument. However, a decrease in the significant unobservable valuation input would have the opposite effect on the fair value measurement of the financial instrument. For example, if an increase in a
significant unobservable valuation input would result in a lower 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 consolidated balance sheets.

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**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 example due to a lack of profits or as a policy during a growth period, and hence have a zero dividend yield while others may pay high dividends, for example to return money to investors. The range of volatilities is wide as the volatilities of shorter-dated equity derivatives or those based on single equity securities can be higher than those of longer-dated instruments or those based on indices. Correlations represent the relationships between one input and another ("pairs") and can either be positive or negative amounts. The range of correlations moves from positive to negative because the movement of some pairs is very closely related and in the same direction causing highly positive correlations while others generally move in opposite directions causing highly negative correlations with pairs that have differing relationships throughout the range.

*Derivatives—Interest rate contracts*—The significant unobservable valuation inputs are interest rates, volatilities and correlations. The range 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 to negative because the movement of some pairs is very closely related and in the same direction causing highly positive correlations while others generally move in opposite directions causing highly negative correlations with pairs that have differing relationships through the range. All significant 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 of recovery rates varies primarily due to the seniority of the underlying exposure with senior exposures having a higher recovery than subordinated exposures. The range of volatilities is wide as the volatilities of shorter-dated credit contracts are typically higher than those of longer-dated instruments. The correlation range is positive since credit spread moves are generally in the same direction. Highly positive correlations are those for which the movement is very closely related and in the same direction, with correlation falling as the relationship becomes less strong.

*Derivatives—Foreign exchange contracts*—The significant unobservable valuation inputs are interest rates, volatilities and correlations. The range of interest rates is due to interest rates in different countries/currencies being at different levels with some countries having extremely low levels and others being at levels that while still relatively low are less so. The range of volatilities is mainly due to the lower end of the range arising from currencies 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 from positive to negative because the movement of some pairs is very closely related and in the same direction causing highly positive correlations while others generally move in opposite directions causing highly negative correlations with pairs that have differing relationships through the range.

*Short-term borrowings and Long-term borrowings*—The significant unobservable valuation inputs are yields, prepayment rates, default probabilities, loss severities, volatilities and correlations. The range of volatilities is wide as the volatilities of shorter-dated instruments are typically higher than those in longer-dated instruments. The range of correlations moves from positive to negative because the movement of some pairs is very closely related and in the same direction causing highly positive correlations while others generally move in opposite directions causing highly negative correlations with pairs that have differing relationships through the range.

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**Movements in Level 3 financial instruments** 

The following tables present gains and losses as well as increases and decreases of financial instruments measured at fair value on a recurring basis which Nomura classified in Level 3 for the nine and three months ended December 31, 2021 and 2022. 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 not reflect the offsetting gains or losses for these hedging instruments. Level 3 financial instruments are also measured 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 and unobservable valuation inputs.

For the nine months ended December 31, 2021 and 2022, gains and losses related to Level 3 assets and liabilities did not have a material impact on Nomura's liquidity and capital resources management.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** |
|  | **Beginning<br>balance as of<br>nine months<br>ended<br>December 31,**<br>**2021** | **Total gains**<br>**(losses)**<br>**recognized**<br>**in net<br>revenue<sup>(1)</sup>** | **Total gains**<br>**(losses)**<br>**recognized in**<br>**other**<br>**comprehensive**<br>**income** | **Purchases /**<br>**issues<sup>(2)</sup>** | **Sales /**<br>**redemptions<sup>(2)</sup>** | **Settlements** | **Foreign**<br>**exchange**<br>**movements** | **Transfers**<br>**into**<br>**Level 3<sup>(4)(5)</sup>** | **Transfers**<br>**out of**<br>**Level 3<sup>(5)</sup>** | **Balance as of**<br>**nine months**<br>**ended**<br>**December 31,**<br>**2021** |
|  Assets: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥16 | ¥3 | ¥— | ¥1 | ¥(8) | ¥— | ¥0 | ¥2 | ¥(1) | ¥13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 58 | 2 |  | 10 | (4) |  | 0 |  | (13) | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities | 2 | 0 |  | 0 | 0 |  |  |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 12 | 1 |  | 10 | (13) |  | 0 | 2 | (2) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | 135 | 0 |  | 124 | (146) |  | 6 | 78 | (25) | 172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") | 8 | 0 |  | 0 | (1) |  | 0 |  | 0 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 6 | 0 |  | 4 | (3) |  | 0 |  |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 106 | 4 |  | 310 | (280) |  | 4 |  |  | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 23 | (4) |  | 65 | (56) |  | 1 |  |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  | 16 | (16) |  | 0 | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | ¥366 | ¥6 | ¥— | ¥540 | ¥(527) | ¥— | ¥11 | ¥82 | ¥(41) | ¥437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives, net<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | (41) | 40 |  |  |  | 0 | (1) | (9) | 32 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (43) | (11) |  |  |  | 12 | 1 | 8 | 4 | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | (38) | 3 |  |  |  | 8 | (1) | (2) | 1 | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 15 | (6) |  |  |  | 0 | 0 | 0 | (1) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivatives, net | (107) | 26 |  |  |  | 20 | (1) | (3) | 36 | (29) |
|  Subtotal | ¥259 | ¥32 | ¥— | ¥540 | ¥(527) | ¥20 | ¥10 | ¥79 | ¥(5) | ¥408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 104 | 7 |  | 74 | (53) |  | 5 | 44 | (12) | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements | 18 | 0 |  | 2 | (5) |  | 1 |  |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 185 | 17 |  | 1 | 0 |  | 6 | 0 | (1) | 208 |
|  Total | ¥566 | ¥56 | ¥— | ¥617 | ¥(585) | ¥20 | ¥22 | ¥123 | ¥(18) | ¥801 |
|  Liabilities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥0 | ¥0 | ¥— | ¥0 | ¥0 | ¥— | ¥0 | ¥— | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 1 | 1 |  |  | 0 |  | 0 |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 5 | 0 |  | 4 | (5) |  | 0 | 6 | (5) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 1 | 0 |  | 2 | (2) |  | 0 | 0 |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  | 0 | 0 |  | 0 |  |  | 0 |
|  Total trading liabilities | ¥7 | ¥1 | ¥— | ¥6 | ¥(7) | ¥— | ¥0 | ¥6 | ¥(5) | ¥6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 103 | (6) | 0 | 128 | (122) |  | 0 | 8 | (62) | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits | 1 | 0 | 0 |  | 0 |  |  | 2 | (2) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing | 1 |  |  |  |  |  |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 547 | (9) | 2 | 407 | (350) |  | 0 | 25 | (137) | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 35 | (12) |  | 0 | (25) |  | 2 | 0 | 0 | 24 |
|  Total | ¥694 | ¥(26) | ¥2 | ¥541 | ¥(504) | ¥— | ¥2 | ¥41 | ¥(207) | ¥591 |

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##### [**Table of Contents**](#toc)

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** |
|  | **Beginning**<br>**balance as of**<br>**nine months**<br>**ended**<br>**December 31,<br>2022** | **Total gains**<br>**(losses)**<br>**recognized**<br>**in revenue<sup>(1)</sup>** | **Total gains**<br>**(losses)**<br>**recognized in**<br>**other**<br>**comprehensive**<br>**income** | **Purchases /**<br>**issues<sup>(2)</sup>** | **Sales /**<br>**redemptions<sup>(2)</sup>** | **Settlements** | **Foreign**<br>**exchange**<br>**movements** | **Transfers**<br>**into**<br>**Level 3<sup>(4)(5)</sup>** | **Transfers**<br>**out of**<br>**Level 3<sup>(5)</sup>** | **Balance as of**<br>**nine months**<br>**ended**<br>**December 31,**<br>**2022** |
|  Assets: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥14 | ¥(2) | ¥— | ¥10 | ¥(11) | ¥— | ¥1 | ¥1 | ¥(6) | ¥7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 32 | 8 |  | 13 | (18) |  | 0 |  |  | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities | 2 | 0 |  | 0 | 0 |  |  |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 10 | 1 |  | 14 | (18) |  | 0 | 0 | 0 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | 220 | (4) |  | 237 | (212) |  | 12 | 79 | (20) | 312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") | 7 | 0 |  | 0 | 0 |  |  | 0 | (7) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 8 | (1) |  | 2 | (11) |  | 0 | 10 |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 79 | (13) |  | 128 | (87) |  | 7 |  |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 26 | (5) |  | 43 | (47) |  | 2 | 4 | (1) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  | 25 | (23) |  | 1 | 0 |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | ¥398 | ¥(16) | ¥— | ¥472 | ¥(427) | ¥— | ¥23 | ¥94 | ¥(34) | ¥510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives, net<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 10 | 3 |  |  |  | (22) | (4) | 3 | 19 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (11) | 2 |  |  | 0 | (1) | 3 | 10 | (8) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | (33) | 22 |  |  |  | (2) | (3) | (2) | 0 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 10 | 2 |  |  |  | 10 | 1 | 0 | (1) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivatives, net | (24) | 29 |  |  | 0 | (15) | (3) | 11 | 10 | 8 |
|  Subtotal | ¥374 | ¥13 | ¥— | ¥472 | ¥(427) | ¥(15) | ¥20 | ¥105 | ¥(24) | ¥518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 205 | 19 |  | 52 | (74) |  | 11 | 58 | (34) | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements | 16 | 0 |  |  |  |  | 1 |  |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Trading Debt Securities |  | 0 |  | 0 |  |  | 0 | 3 |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 197 | (23) |  | 1 | (9) |  | 14 | 1 |  | 181 |
|  Total | ¥792 | ¥9 | ¥— | ¥525 | ¥(510) | ¥(15) | ¥46 | ¥167 | ¥(58) | ¥956 |
|  Liabilities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥0 | ¥0 | ¥— | ¥0 | ¥(1) | ¥— | ¥0 | ¥2 | ¥— | ¥1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 0 | 0 |  | 1 | 0 |  | 0 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 3 | 0 |  | 1 | (5) |  | 0 | 6 | (1) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 0 |  |  | 1 | (1) |  | 0 |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  | 0 | 0 |  | 0 |  |  | 0 |
|  Total trading liabilities | ¥3 | ¥0 | ¥— | ¥3 | ¥(7) | ¥— | ¥0 | ¥8 | ¥(1) | ¥6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 58 | 0 | 0 | 35 | (25) |  | 0 | 8 | (51) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits | 8 | 2 | 0 | 16 | 0 |  |  | 7 | (15) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 479 | 29 | 4 | 192 | (112) |  | 2 | 85 | (160) | 453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 32 | 17 |  | 3 | (1) |  | 3 | 0 | (1) | 19 |
|  Total | ¥580 | ¥48 | ¥4 | ¥249 | ¥(145) | ¥— | ¥5 | ¥108 | ¥(228) | ¥517 |

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##### [**Table of Contents**](#toc)

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** |
|  | **Beginning**<br>**balance as of**<br>**three months**<br>**ended**<br>**December 31,**<br>**2021** | **Total gains**<br>**(losses)**<br>**recognized**<br>**in net<br>revenue<sup>(1)</sup>** | **Total gains**<br>**(losses)**<br>**recognized in**<br>**other**<br>**comprehensive**<br>**income** | **Purchases /**<br>**issues<sup>(2)</sup>** | **Sales /**<br>**redemptions<sup>(2)</sup>** | **Settlements** | **Foreign**<br>**exchange**<br>**movements** | **Transfers**<br>**into**<br>**Level 3<sup>(4)(5)</sup>** | **Transfers**<br>**out of**<br>**Level 3<sup>(5)</sup>** | **Balance as of**<br>**three months**<br>**ended**<br>**December 31,**<br>**2021** |
|  Assets: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥12 | ¥2 | ¥— | ¥0 | ¥(2) | ¥— | ¥0 | ¥1 | ¥0 | ¥13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 47 | 0 |  | 7 | (1) |  | 0 |  |  | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities | 2 | 0 |  |  | 0 |  |  |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 10 | 0 |  | 4 | (3) |  | 0 | 0 | (1) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | 132 | (2) |  | 90 | (98) |  | 4 | 56 | (10) | 172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") | 8 | 0 |  | 0 | (1) |  | 0 |  |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 7 | 0 |  | 2 | (2) |  | 0 |  |  | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 123 | 2 |  | 108 | (93) |  | 4 |  |  | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 23 | (2) |  | 29 | (21) |  | 0 |  |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  |  | 0 |  | 0 | 0 |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | ¥364 | ¥0 | ¥— | ¥240 | ¥(221) | ¥— | ¥8 | ¥57 | ¥(11) | ¥437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives, net<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 9 | 21 |  |  |  | (1) | 0 | (7) | (1) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (28) | (8) |  |  |  | 0 | 1 | 3 | 3 | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | (37) | 4 |  |  |  | 5 | 0 | (1) | 0 | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 10 | (3) |  |  |  | 1 | 0 | 0 | 0 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivatives, net | (46) | 14 |  |  |  | 5 | 1 | (5) | 2 | (29) |
|  Subtotal | ¥318 | ¥14 | ¥— | ¥240 | ¥(221) | ¥5 | ¥9 | ¥52 | ¥(9) | ¥408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 123 | 5 |  | 59 | (35) |  | 4 | 17 | (4) | 169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements | 13 | 0 |  | 3 |  |  | 0 |  |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 209 | (7) |  | 1 | 0 |  | 5 |  |  | 208 |
|  Total | ¥663 | ¥12 | ¥— | ¥303 | ¥(256) | ¥5 | ¥18 | ¥69 | ¥(13) | ¥801 |
|  Liabilities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥0 | ¥0 | ¥— | ¥— | ¥— | ¥— | ¥0 | ¥— | ¥— | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 0 | 0 |  |  | 0 |  | 0 |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 6 | 0 |  | 1 | (3) |  | 0 | 3 | (2) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 0 | 0 |  | 2 | (1) |  | 0 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  |  | 0 |  | 0 |  |  | 0 |
|  Total trading liabilities | ¥6 | ¥0 | ¥— | ¥3 | ¥(4) | ¥— | ¥0 | ¥3 | ¥(2) | ¥6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 86 | 1 | 0 | 36 | (35) |  | 1 | 0 | (26) | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits | 2 | 0 | 0 |  | 0 |  |  |  | (1) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 511 | 0 | 1 | 118 | (93) |  | 0 | 3 | (39) | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 24 | (8) |  | 0 | (9) |  | 1 |  |  | 24 |
|  Total | ¥629 | ¥(7) | ¥1 | ¥157 | ¥(141) | ¥— | ¥2 | ¥6 | ¥(68) | ¥591 |

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##### [**Table of Contents**](#toc)

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** |
|  | **Beginning**<br>**balance as of**<br>**three months**<br>**ended**<br>**December 31,**<br>**2022** | **Total gains**<br>**(losses)**<br>**recognized**<br>**in net<br>revenue<sup>(1)</sup>** | **Total gains**<br>**(losses)**<br>**recognized in**<br>**other**<br>**comprehensive**<br>**income** | **Purchases /**<br>**issues<sup>(2)</sup>** | **Sales /**<br>**redemptions<sup>(2)</sup>** | **Settlements** | **Foreign**<br>**exchange**<br>**movements** | **Transfers**<br>**into**<br>**Level 3<sup>(4)(5)</sup>** | **Transfers**<br>**out of**<br>**Level 3<sup>(5)</sup>** | **Balance as of**<br>**three months**<br>**ended**<br>**December 31,**<br>**2022** |
|  Assets: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥16 | ¥(1) | ¥— | ¥3 | ¥(9) | ¥— | ¥(1) | ¥0 | ¥(1) | ¥7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 39 | 6 |  | 5 | (15) |  | 0 |  |  | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities | 2 | 0 |  | 0 | 0 |  |  |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 10 | (1) |  | 7 | (9) |  | 0 | 0 | 0 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | 272 | (2) |  | 89 | (55) |  | (16) | 25 | (1) | 312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") | 7 | 0 |  | 0 | 0 |  |  |  | (7) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 9 | 0 |  | 3 | (11) |  | (1) | 9 | (1) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 103 | (1) |  | 37 | (17) |  | (8) |  |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 20 | (3) |  | 16 | (13) |  | (1) | 4 | (1) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 1 |  | 25 | (23) |  | 0 |  |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | ¥478 | ¥(1) | ¥— | ¥185 | ¥(152) | ¥— | ¥(27) | ¥38 | ¥(11) | ¥510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives, net<sup>(3)</sup> |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | (5) | (10) |  | 1 |  | 2 | 0 | 4 | 17 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 35 | (20) |  |  |  | (18) | 3 | (1) | (4) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | (33) | 11 |  |  |  | 4 | 0 | 0 | 0 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 21 | 2 |  |  |  | 1 | (1) | 0 | (1) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivatives, net | 18 | (17) |  | 1 |  | (11) | 2 | 3 | 12 | 8 |
|  Subtotal | ¥496 | ¥(18) | ¥— | ¥186 | ¥(152) | ¥(11) | ¥(25) | ¥41 | ¥1 | ¥518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 221 | 13 |  | 29 | (26) |  | (17) | 23 | (6) | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements | 19 | 0 |  |  |  |  | (2) |  |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Trading Debt Securities | 3 | 0 |  |  |  |  | 0 |  |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 189 | 11 |  | 1 | (8) |  | (12) | 0 |  | 181 |
|  Total | ¥928 | ¥6 | ¥— | ¥216 | ¥(186) | ¥(11) | ¥(56) | ¥64 | ¥(5) | ¥956 |
|  Liabilities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥1 | ¥0 | ¥— | ¥0 | ¥0 | ¥— | ¥0 | ¥— | ¥— | ¥1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 0 | 0 |  |  | 0 |  | 0 |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 4 | 0 |  | 0 | (2) |  | 0 | 3 | (1) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other |  |  |  | 0 |  |  |  |  |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |  | 0 |  |  | 0 |  |  | 0 |
|  Total trading liabilities | ¥5 | ¥0 | ¥— | ¥0 | ¥(2) | ¥— | ¥0 | ¥3 | ¥— | ¥6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 29 | 0 | 0 | 9 | (8) |  | 0 | 4 | (9) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits | 21 | 1 | 0 | 1 | 0 |  |  |  | (7) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 415 | 16 | 2 | 72 | (35) |  | (2) | 47 | (26) | 453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 23 | 8 |  | 1 | 4 |  | (1) |  |  | 19 |
|  Total | ¥493 | ¥25 | ¥2 | ¥83 | ¥(41) | ¥— | ¥(3) | ¥54 | ¥(42) | ¥517 |

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(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.

(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 not significant for the nine and three months ended December 31, 2021 and 2022.

(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.

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##### [**Table of Contents**](#toc)
**Unrealized gains and losses recognized for Level 3 financial instruments** 

The following table presents the amounts of unrealized gains (losses) for the nine and three months ended December 31, 2021 and 2022, 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.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  | **Unrealized gains / (losses)<sup>(1)</sup>** | **Unrealized gains / (losses)<sup>(1)</sup>** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥3 | ¥(2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 3 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 0 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | (1) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 2 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | (5) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | 2 | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives, net<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 42 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (13) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 3 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | (3) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivatives, net | 29 | 1 |
|  Subtotal | ¥31 | ¥(6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 6 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 17 | (26) |
|  Total | ¥54 | ¥(16) |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥— | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading liabilities | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings<sup>(3)</sup> | 5 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits<sup>(3)</sup> | 0 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings<sup>(3)</sup> | 14 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (8) | 0 |
|  Total | ¥11 | ¥45 |

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##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  | **Unrealized gains / (losses)<sup>(1)</sup>** | **Unrealized gains / (losses)<sup>(1)</sup>** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥3 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 0 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese agency and municipal securities | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign government, agency and municipal securities | 0 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities and loans for trading purposes | (3) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial mortgage-backed securities ("CMBS") | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real estate-backed securities | 0 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | (1) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading assets and private equity and debt investments | (1) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives, net<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | 20 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | (3) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 2 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | (3) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total derivatives, net | 16 | (15) |
|  Subtotal | ¥15 | ¥(19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 5 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements |  | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | (7) | 12 |
|  Total | ¥13 | ¥6 |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥0 | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other | 0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total trading liabilities | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings<sup>(3)</sup> | 4 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits<sup>(3)</sup> | 0 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings<sup>(3)</sup> | 12 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (9) | 5 |
|  Total | ¥7 | ¥28 |

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------

(1) Includes gains and losses reported within *Net gain on trading, Gain on private equity and debt investments,* and also within *Gain 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 changes in unrealized gains and losses in *Other comprehensive income (loss)* for
recurring Level 3 fair value measurements held at the end of the reporting period. They were ¥4 billion and ¥5 billion for the nine months ended December 31, 2021 and 2022 respectively and ¥2 billion and
¥2 billion for the three months ended December 31, 2021 and 2022, respectively.

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##### [**Table of Contents**](#toc)
**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 certain of these investments, Nomura uses NAV per share as the basis for valuation as a practical expedient. Some of these investments are redeemable at different amounts from NAV per share.

The following tables present information on these investments where NAV per share is calculated or disclosed as of March 31, 2022 and December 31, 2022. Investments are presented by major category relevant to the nature of Nomura's business and risks

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Fair value** | **Unfunded**<br>**commitments<sup>(1)</sup>** | **Redemption frequency**<br>**(if currently eligible)<sup>(2)</sup>** | **Redemption notice<sup>(3)</sup>** |
|  Hedge funds | ¥12 | ¥1 | Monthly | Same day-30 days |
|  Venture capital funds | 10 | 10 |  |  |
|  Private equity funds | 22 | 19 |  |  |
|  Real estate funds | 4 | 1 |  |  |
|  Total | ¥48 | ¥31 |  |  |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Fair value** | **Unfunded**<br>**commitments<sup>(1)</sup>** | **Redemption frequency**<br>**(if currently eligible)<sup>(2)</sup>** | **Redemption notice<sup>(3)</sup>** |
|  Hedge funds | ¥14 | ¥1 | Monthly | Same day-30 days |
|  Venture capital funds | 10 | 9 |  |  |
|  Private equity funds | 23 | 11 |  |  |
|  Real estate funds | 3 | 1 |  |  |
|  Total | ¥50 | ¥22 |  |  |

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------

(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 these investments are determined using NAV per share. Although most of these funds can be redeemed within six months, certain funds cannot be redeemed within six months due to contractual, liquidity or gating issues. The redemption period is unknown for certain suspended or liquidating funds. Some of these investments contain restrictions against transfers of the investments to third parties.

*Venture capital funds:* 

These investments include primarily start-up funds. The fair values of these investments are determined using NAV per share. Most of these funds cannot be redeemed within six months. The redemption period is unknown for certain suspended or liquidating funds. Some of these investments contain restrictions against transfers of the investments to third parties.

*Private equity funds:* 

These investments are made mainly in various sectors in Europe, U.S. and Japan. The fair values of these investments are determined using NAV per share. Redemption is restricted for most of these investments. The redemption period is unknown for certain suspended or liquidating funds. 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.

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##### [**Table of Contents**](#toc)
**Fair value option for financial assets and financial liabilities** 

Nomura measures certain eligible financial assets and liabilities at fair value through the election of the fair value option permitted by ASC 815 "*Derivatives and Hedging*" and ASC 825 "*Financial Instruments.*" When Nomura elects the fair value option for an eligible item, changes in that item's fair value are recognized through earnings. Election of the fair value option is generally irrevocable unless an event occurs that gives rise to a new basis of accounting for that instrument.

The financial assets and financial liabilities primarily elected for the fair value option by Nomura, and the reasons for the election, are as follows:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *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 through earnings caused by the
difference in measurement basis that otherwise would arise between loans and the derivatives used to risk manage those instruments.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All structured notes issued on or after April 1, 2008 reported within *Short-term borrowings* or *Long-term borrowings*. Nomura elects the fair value option for those structured notes primarily to mitigate the volatility through earnings caused by differences in the measurement basis for structured notes and the derivatives Nomura uses to
risk manage those positions. Nomura also elects the fair value option for certain 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.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial liabilities reported within *Long-term borrowings* recognized in transactions which are accounted
for as secured financing transactions under ASC 860. Nomura elects the fair value option for these financial liabilities to mitigate volatility through earnings that otherwise would arise had this election not been made. Even though Nomura usually
has little or no continuing economic exposure to 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.

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

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

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##### [**Table of Contents**](#toc)
The following table presents gains (losses) due to changes in fair value for financial instruments measured at fair value using the fair value option for the nine and three months ended December 31, 2021 and 2022.

---

| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  | **Gains / (Losses)<sup>(1)</sup>** | **Gains / (Losses)<sup>(1)</sup>** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets | ¥1 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 3 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 17 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements<sup>(3)</sup> | 1 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets<sup>(2)</sup> | 11 | (24) |
|  Total | ¥33 | ¥13 |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings<sup>(4)</sup> | ¥68 | ¥156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits | 3 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing<sup>(3)</sup> | 4 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings<sup>(4)(5)</sup> | 22 | 470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities<sup>(6)</sup> | (15) | 9 |
|  Total | ¥82 | ¥649 |
|  | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  | **Gains / (Losses)<sup>(1)</sup>** | **Gains / (Losses)<sup>(1)</sup>** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets and private equity and debt investments<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets | ¥1 | ¥1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 2 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and receivables | 9 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized agreements<sup>(3)</sup> | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets<sup>(2)</sup> | (5) | 11 |
|  Total | ¥8 | ¥33 |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings<sup>(4)</sup> | ¥47 | ¥30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables and deposits | 0 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized financing<sup>(3)</sup> | (2) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings<sup>(4)(5)</sup> | 47 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities<sup>(6)</sup> | (5) | (7) |
|  Total | ¥87 | ¥53 |

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(1) Includes gains and losses reported primarily within *Revenue—Net gain on trading* and *Revenue — Other* in the consolidated statements of income.

(2) Includes equity investments that would have been accounted for under the equity method had Nomura not chosen 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 the
criteria for sales accounting.

(6) Includes unfunded written loan commitments.

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##### [**Table of Contents**](#toc)
As of March 31, 2022 and December 31, 2022, Nomura held an economic interest of 39.21% and 39.92% in American Century Companies, Inc., respectively. The investment is measured at fair value on a recurring basis through election of the fair value option and is reported within *Other assets—Other* in the consolidated balance sheets.

For the nine months ended December 31, 2021, there was no significant impact on loans and receivables for which the fair value option was elected attributable to instrument-specific credit risk.

For the nine months ended December 31, 2022, changes in gains and losses attributable to instrument-specific credit risk of loans and receivables elected for the fair value option were primarily due to a recovery of increasing in the estimated fair value of certain transactions with a U.S. client in connection with the U.S. Prime Brokerage Event elected to be measured at fair value and not significant from others. See Note 15 "*Segment and geographic information*" for further information on this recovery of increasing in the estimated fair value.

Nomura calculates the impact of changes in its own creditworthiness on certain financial liabilities for which the fair value option is elected by revaluation techniques using a rate which incorporates observable changes in its credit spread.

The following table presents changes in the valuation adjustment for Nomura's own creditworthiness recognized in other comprehensive income during the years pertaining to certain financial liabilities for which the fair value option has been elected recognized in other comprehensive income during the years and cumulatively, and amounts reclassified to earnings from accumulated other comprehensive income on early settlement of such financial liabilities during the nine and three months ended December 31, 2021 and 2022.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Nine months period ended December 31** | **Nine months period ended December 31** |
|  | **2021** | **2022** |
|  Changes recognized as a credit to other comprehensive income | ¥17 | ¥76 |
|  Credit amounts reclassified to earnings | 1 | 0 |
|  Cumulative credit (debit) balance recognized in accumulated other comprehensive income | 5 | 123 |
|  | **Billions of yen** | **Billions of yen** |
|  | **Three months period ended December 31** | **Three months period ended December 31** |
|  | **2021** | **2022** |
|  Changes recognized as a credit to other comprehensive income | ¥11 | ¥13 |
|  Credit (debit) amounts reclassified to earnings | 0 | (1) |

---

As of March 31, 2022, the fair value of the aggregate unpaid principal balance (which is contractually principally protected) of *Loans and receivables* for which the fair value option was elected was ¥267 billion less than the principal balance of such *Loans and receivables*. A significant portion of the principal balance relates to receivables 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 more past due was ¥278 billion. The fair value of the aggregate unpaid principal balance (which is contractually principally protected) of *Long-term borrowings* for which the fair value option was elected was ¥212 billion less than the principal balance of such *Long-term borrowings*.

As of December 31, 2022, the fair value of the aggregate unpaid principal balance (which is contractually principally protected) of *Loans and receivables* for which the fair value option was elected was ¥320 billion less than the principal balance of such *Loans and receivables*. A significant portion of the principal balance relates to receivables 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 more past due was ¥293 billion. The fair value of the aggregate unpaid principal balance (which is contractually principally protected) of *Long-term borrowings* for which the fair value option was elected was ¥524 billion less than the principal balance of such *Long-term borrowings*.

**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 the consolidated statements of income.

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##### [**Table of Contents**](#toc)
**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 as collateral,* represented 16% of total assets as of March 31, 2022 and 17% as of December 31, 2022.

The following tables present geographic allocations of Nomura's trading assets related to government, agency and municipal securities as of March 31, 2022 and December 31, 2022. See Note 3 "*Derivative instruments and hedging activities*" for further information regarding the concentration of credit risk for derivatives.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Japan** | **U.S.** | **EU & U.K.** | **Other** | **Total<sup>(1)</sup>** |
|  Government, agency and municipal securities | ¥1916 | ¥2368 | ¥2151 | ¥721 | ¥7156 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Japan** | **U.S.** | **EU & U.K.** | **Other** | **Total<sup>(1)</sup>** |
|  Government, agency and municipal securities | ¥2693 | ¥2472 | ¥2261 | ¥844 | ¥8270 |

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------

(1) Other than above, there were ¥331 billion and ¥257 billion of government, agency and municipal securities reported within *Other assets—Non-trading debt securities* in the consolidated balance sheets as of March 31, 2022 and December 31, 2022, respectively. These securities are primarily Japanese government, agency and municipal securities.

**Estimated fair value of financial instruments not carried at fair value** 

Certain financial instruments are not carried at fair value on a recurring basis in the consolidated balance sheets since they are neither held for trading purposes nor are elected for the fair value option. These are typically carried at contractual amounts due or amortized cost.

The carrying value of the majority of the financial instruments detailed below approximates their fair value since they are short-term in nature 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-term borrowings, 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 consolidated balance sheets.

The fair values of other financial instruments which are longer-term in nature or may contain more than minimal credit risk may be different 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-term borrowings which are reported within *Long-term borrowings*.

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##### [**Table of Contents**](#toc)
The following tables present carrying values, fair values and classification within the fair value hierarchy for certain classes of financial instrument of which a portion of the ending balance was carried at fair value as of March 31, 2022 and December 31, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022<sup>(1)</sup>** | **March 31, 2022<sup>(1)</sup>** | **March 31, 2022<sup>(1)</sup>** | **March 31, 2022<sup>(1)</sup>** | **March 31, 2022<sup>(1)</sup>** |
|  | **Carrying**<br>**value** | **Fair**<br>**value** | **Fair value by level** | **Fair value by level** | **Fair value by level** |
|  | **Carrying**<br>**value** | **Fair**<br>**value** | **Level 1** | **Level 2** | **Level 3** |
|  Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | ¥3316 | ¥3316 | ¥3316 | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits | 321 | 321 |  | 321 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with stock exchanges and other segregated cash | 427 | 427 |  | 427 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable<sup>(2)</sup> | 3515 | 3515 |  | 2461 | 1054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | 11879 | 11879 |  | 11863 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 4997 | 4994 |  | 4994 |  |
|  Total | ¥24455 | ¥24452 | ¥3316 | ¥20066 | ¥1070 |
|  Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | ¥1050 | ¥1050 | ¥— | ¥993 | ¥57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits received at banks | 1761 | 1761 |  | 1752 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase | 12575 | 12575 |  | 12575 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 1567 | 1568 |  | 1568 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other secured borrowings | 396 | 396 |  | 396 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 9258 | 9236 | 23 | 8688 | 525 |
|  Total | ¥26607 | ¥26586 | ¥23 | ¥25972 | ¥591 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022<sup>(1)</sup>** | **December 31, 2022<sup>(1)</sup>** | **December 31, 2022<sup>(1)</sup>** | **December 31, 2022<sup>(1)</sup>** | **December 31, 2022<sup>(1)</sup>** |
|  | **Carrying**<br>**value** | **Fair**<br>**value** | **Fair value by level** | **Fair value by level** | **Fair value by level** |
|  | **Carrying**<br>**value** | **Fair**<br>**value** | **Level 1** | **Level 2** | **Level 3** |
|  Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | ¥3396 | ¥3396 | ¥3396 | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time deposits | 401 | 401 |  | 401 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with stock exchanges and other segregated cash | 313 | 313 |  | 313 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable<sup>(2)</sup> | 3738 | 3737 |  | 2572 | 1165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | 15851 | 15850 |  | 15833 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities borrowed | 4274 | 4273 |  | 4273 |  |
|  Total | ¥27973 | ¥27970 | ¥3396 | ¥23392 | ¥1182 |
|  Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | ¥1079 | ¥1079 | ¥— | ¥1054 | ¥25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits received at banks | 2042 | 2042 |  | 2028 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under agreements to repurchase | 15930 | 15930 |  | 15930 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities loaned | 1286 | 1286 |  | 1286 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other secured borrowings | 333 | 333 |  | 333 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 9803 | 9760 | 25 | 9245 | 490 |
|  Total | ¥30473 | ¥30430 | ¥25 | ¥29876 | ¥529 |

---

------

(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.

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##### [**Table of Contents**](#toc)
**Assets and liabilities measured at fair value on a nonrecurring basis** 

In addition to financial instruments carried at fair value on a recurring basis, Nomura also measures other financial and non-financial assets and liabilities at fair value on a nonrecurring basis, where the primary measurement basis is not fair value. Fair value is only used in specific circumstances after initial recognition such as to measure impairment.

As of March 31, 2022 and December 31, 2022, there were no significant amount of assets or liabilities which were measured at fair value on a nonrecurring basis.

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##### [**Table of Contents**](#toc)
**3. Derivative instruments and hedging activities:** 

Nomura uses a variety of derivatives, including futures, forwards, options and swaps, for both trading and non-trading purposes.

*Derivatives used for trading purposes* 

In the normal course of business, Nomura enters into transactions involving derivatives to meet client needs, for trading purposes, and to reduce its own exposure to loss due to adverse fluctuations in interest rates, currency exchange rates and market prices of securities. These financial instruments include contractual agreements such as commitments to swap interest payment streams, exchange currencies or purchase or sell securities and other financial instruments on specific terms at specific future dates.

Nomura maintains active trading positions in a variety of derivatives. Most of Nomura's trading activities are client oriented. Nomura utilizes 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 with securities and other capital market products at competitive prices.

Futures and forward contracts are commitments to either purchase or sell securities, foreign exchange contracts or other capital market instruments at a specific future date for a specified price and may be settled in cash or through delivery. Foreign exchange contracts include spot and forward contracts and involve the exchange of two currencies at a rate agreed by the contracting parties. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movements in market prices. Futures contracts are executed through exchanges which clear and guarantee performance of counterparties. Accordingly, credit risk associated with futures contracts is considered minimal. In contrast, forward contracts are generally negotiated between two counterparties and, therefore, are subject to counterparty risks.

Options are contracts that grant the purchaser, for a premium payment, the right to either purchase or sell a financial instrument at a specified price within a specified period of time or on a specified date from or to the writer of the option. The writer of options receives premiums and bears the risk of unfavorable changes in the market price of the financial instruments underlying the options.

Swaps are contractual agreements in which two counterparties agree to exchange certain cash flows, at specified future dates, based on an agreed contract. Certain agreements may result in combined interest rate and foreign exchange exposures. Entering into swap agreements may involve the risk of credit losses in the event of counterparty default.

To the extent these derivatives are economically hedging financial instruments or securities positions of Nomura, the overall risk of loss may 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 through various control policies and procedures, including position limits, monitoring procedures and hedging strategies whereby Nomura enters into offsetting or other positions in a variety of financial instruments.

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##### [**Table of Contents**](#toc)
*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 foreign exchange rates arising from certain foreign operations and to mitigate equity price risk arising from certain stock-based compensation awards given to employees. Credit risk associated with derivatives utilized for non-trading purposes is controlled and managed in 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 specific financial liabilities and foreign currency risk arising from specific foreign currency denominated debt securities. These derivatives are effective in reducing the risk associated with the exposure being hedged and are highly correlated with changes in the fair value and foreign currency rates of the underlying hedged items, both at inception and throughout the life of the hedging relationship. Changes in fair value of the hedging derivatives are reported together with those of the hedged liabilities and assets through the consolidated statements of income within *Interest expense* and *Revenue—Other*, respectively.

*Net investment hedges* 

Nomura designates certain derivatives designated as hedges of its net investment in foreign operations relating to specific subsidiaries which have non-Japanese Yen functional currencies. When determining the effectiveness of net investment hedges, the effective portion of the change in fair value of the hedging derivative is determined by changes in spot exchange rates. Changes in fair value of the hedging derivatives attributable to changes in the difference between the forward rate and spot rate are excluded from the measurement of hedge effectiveness and are reported in the consolidated statements of income within *Revenue-Other*. All other movements in the fair value of highly effective net investment hedging derivatives are reported through NHI shareholders' equity within *Accumulated other comprehensive income (loss)*.

**Concentrations of credit risk for derivatives** 

The following tables present Nomura's significant concentration of exposures to credit risk in OTC derivatives with financial institutions including transactions cleared through central counterparties as of March 31, 2022 and December 31, 2022. 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 the terms of the instruments and any collateral or other security Nomura held in relation to those instruments proved to be of no value.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Gross fair value of**<br>**derivative assets** | **Impact of**<br>**master netting**<br>**agreements** | **Impact of**<br>**collateral** | **Net exposure to**<br>**credit risk** |
|  Financial institutions | ¥15667 | ¥(13193) | ¥(1669) | ¥805 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Gross fair value of**<br>**derivative assets** | **Impact of**<br>**master netting**<br>**agreements** | **Impact of**<br>**collateral** | **Net exposure to**<br>**credit risk** |
|  Financial institutions | ¥23508 | ¥(20561) | ¥(2253) | ¥694 |

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##### [**Table of Contents**](#toc)
**Derivative activities** 

The following tables quantify of Nomura's derivative positions as of March 31, 2022 and December 31, 2022 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 earnings or other comprehensive income depending on the purpose for which the derivatives are used.

---

| | | | |
|:---|:---|:---|:---|
|  | | **Billions of yen** | **Billions of yen** |
|  | | **March 31, 2022** | **March 31, 2022** |
|  | | **Derivative assets** | **Derivative liabilities** |
|  |<br><br>**Total Notional<sup>(1)</sup>** | **Fair value** | **Fair value<sup>(1)</sup>** |
|  Derivatives used for trading and non-trading purposes<sup>(2)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | ¥34526 | ¥974 | ¥1457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 2769546 | 11938 | 10865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 37572 | 443 | 514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 314763 | 4804 | 4814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 300 | 1 | 1 |
|  Total | ¥3156707 | ¥18160 | ¥17651 |
|  Derivatives designated as formal fair value or net investment accounting hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | ¥2166 | ¥— | ¥88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 145 | 2 |  |
|  Total | ¥2311 | ¥2 | ¥88 |
|  Total derivatives | ¥3159018 | ¥18162 | ¥17739 |
|  |  | **Billions of yen** | **Billions of yen** |
|  |  | **December 31, 2022** | **December 31, 2022** |
|  |  | **Derivative assets** | **Derivative liabilities** |
|  | **Total Notional<sup>(1)</sup>** | **Fair value** | **Fair value<sup>(1)</sup>** |
|  Derivatives used for trading and non-trading purposes<sup>(2)</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | ¥29805 | ¥1029 | ¥1499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 3608500 | 19392 | 18638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 40208 | 307 | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 371016 | 6221 | 5808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 248 | 1 | 1 |
|  Total | ¥4049777 | ¥26950 | ¥26316 |
|  Derivatives designated as formal fair value or net investment accounting hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | ¥2571 | ¥— | ¥195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 146 |  | 9 |
|  Total | ¥2717 | ¥— | ¥204 |
|  Total derivatives | ¥4052494 | ¥26950 | ¥26520 |

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------

(1) Includes the amount of embedded derivatives bifurcated in accordance with ASC 815.

(2) As of March 31, 2022 and December 31, 2022, the amounts reported include derivatives used for non-trading purposes other than those designated as fair value or net investment accounting hedges. These amounts have not been separately presented since such amounts were not significant.

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##### [**Table of Contents**](#toc)
*Offsetting of derivatives* 

Counterparty credit risk associated with derivatives is controlled by Nomura through credit approvals, limits and monitoring procedures. To reduce the risk of loss, Nomura requires collateral, principally cash collateral and government securities, for certain derivative transactions. In certain cases, Nomura may agree for such collateral to be posted to a third-party custodian under a control agreement that enables Nomura to take control of such collateral in the event of counterparty default. From an economic standpoint, Nomura evaluates default risk exposure net of related collateral. Furthermore, OTC derivative transactions are typically documented under industry standard master netting agreements which mitigate Nomura's credit exposure to counterparties. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event 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 the enforceability of such close-out and offsetting rights within these agreements.

For certain counterparties and/ or in certain jurisdictions, Nomura may enter into derivative transactions which are not documented under a master netting agreement. Even when derivatives are documented under such agreements, Nomura may not have obtained, or may not be able to obtain evidence to determine with sufficient certainty that close-out and offsetting rights within such agreements are legally enforceable. This may be the case where the relevant local laws explicitly prohibit the enforceability of such close-out and offsetting rights, or where the local laws are complex, ambiguous or silent on the enforceability of such rights. This may include derivative transactions executed with certain foreign governments, agencies, municipalities, central clearing counterparties, exchanges and pension funds.

Nomura considers the enforceability of a master netting agreement in determining how credit risk arising from transactions with a specific counterparty is hedged, how counterparty credit exposures are calculated and applied 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 and payables 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 December 31, 2022 by type of derivative contract, and additional amounts 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. Derivative transactions which are not documented under a master netting agreement or are documented under a master netting agreement for which Nomura does not have sufficient evidence of enforceability of close-out and offsetting rights are not offset in the following table.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Derivative**<br>**assets** | **Derivative**<br>**liabilities<sup>(1)</sup>** | **Derivative**<br>**assets** | **Derivative**<br>**liabilities<sup>(1)</sup>** |
|  Equity contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC settled bilaterally | ¥709 | ¥1054 | ¥666 | ¥952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange-traded | 265 | 403 | 363 | 547 |
|  Interest rate contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC settled bilaterally | 9486 | 8584 | 12955 | 12425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC centrally-cleared | 2332 | 2309 | 6352 | 6372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange-traded | 120 | 60 | 85 | 36 |
|  Credit contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC settled bilaterally | 208 | 276 | 182 | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC centrally-cleared | 223 | 224 | 116 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange-traded | 12 | 14 | 9 | 7 |
|  Foreign exchange contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC settled bilaterally | 4806 | 4814 | 6221 | 5817 |
|  Commodity contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC settled bilaterally | 1 | 1 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange-traded | 0 | 0 | 0 | 0 |
|  Total gross derivative balances<sup>(2)</sup> | ¥18162 | ¥17739 | ¥26950 | ¥26520 |
|  Less: Amounts offset in the consolidated balance sheets<sup>(3)</sup> | (16608) | (16079) | (25507) | (24508) |
|  Total net amounts reported on the face of the consolidated balance sheets<sup>(4)</sup> | ¥1554 | ¥1660 | ¥1443 | ¥2012 |
|  Less: Additional amounts not offset in the consolidated balance sheets<sup>(5)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments and non-cash collateral | (432) | (134) | (426) | (331) |
|  Net amount | ¥1122 | ¥1526 | ¥1017 | ¥1681 |

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------

(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 a
master netting agreement or whether Nomura has obtained sufficient evidence of enforceability of the master 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 master netting agreements for which Nomura has not yet obtained sufficient evidence of enforceability was ¥458 billion and ¥671 billion, respectively. As of December 31,
2022, the gross balance of such derivative assets and derivative liabilities was ¥448 billion and ¥577 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 December 31, 2022, Nomura offset a total of
¥1,698 billion of cash collateral receivables against net derivative liabilities and ¥2,697 billion of cash collateral payables against net derivative assets.

(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.

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##### [**Table of Contents**](#toc)
(5) Represents amounts which are not permitted to be offset on the consolidated balance sheets in accordance with
ASC 210-20 and ASC 815 but which provide Nomura with a legally enforceable right of offset in the event of counterparty default. Amounts relating to derivative and 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 December 31, 2022, a total of ¥365 billion of cash collateral receivables and ¥644 billion of cash collateral payables, including amounts
reported in the table, have not been offset against net derivatives.

For information on offsetting of collateralized transactions, see Note 5 "*Collateralized transactions*".

*Derivatives used for trading purposes* 

Derivative financial instruments used for trading purposes, including bifurcated embedded derivatives, are carried at fair value with changes in fair value recognized through the consolidated statements of income within *Revenue—Net gain on trading*.

The following tables present amounts included in the consolidated statements of income for the nine and three months ended December 31, 2021 and 2022 related to derivatives used for trading and non-trading purposes by type of underlying derivative contract. Derivatives which contain multiple types of risk are classified in the table based on the primary risk type of instrument.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Derivatives used for trading and non-trading purposes<sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | ¥(200) | ¥9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 93 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 10 | (74) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 36 | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 44 | (5) |
|  Total | ¥(17) | ¥721 |
|  | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Derivatives used for trading and non-trading purposes<sup>(1)</sup>: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity contracts | ¥(15) | ¥29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | 77 | (227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit contracts | 8 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | 10 | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commodity contracts | 11 | (7) |
|  Total | ¥91 | ¥268 |

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------

(1) Includes net gains (losses) on derivatives used for non-trading purposes which are not designated as fair value or net investment hedges. For the nine and three months ended December 31, 2021 and 2022, these amounts have not been separately presented as net gains (losses) for these non-trading derivatives were not significant.

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##### [**Table of Contents**](#toc)
*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. In conjunction with the abolition of LIBOR, Nomura terminated the hedging instruments that reference LIBOR and began new hedging transactions. The cancelled hedging transactions are accounted for as termination of hedge accounting.

The following table presents the carrying value of the hedged items that are currently designated in a hedging relationship by line items in the consolidated balance sheets where the hedged item is reported, the related cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items and the cumulative amount of fair value hedging adjustment remaining for the liabilities which hedge accounting has been discontinued as of March 31, 2022 and December 31, 2022.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
| **Balance sheet line item in which the hedged**<br> **item is included:** | **Carrying amount of the hedged<br>liabilities** | **Carrying amount of the hedged<br>liabilities** | **Cumulative gains of fair value<br>hedging adjustment included in<br>the carrying amount of the hedged liabilities** | **Cumulative gains of fair value<br>hedging adjustment included in<br>the carrying amount of the hedged liabilities** | **Cumulative amount of fair value<br>hedging adjustment remaining<br>for the liabilities which hedge<br>accounting has been discontinued** | **Cumulative amount of fair value<br>hedging adjustment remaining<br>for the liabilities which hedge<br>accounting has been discontinued** |
| **Balance sheet line item in which the hedged**<br> **item is included:** |  |  |  |  |  |  |
| **Balance sheet line item in which the hedged**<br> **item is included:** | **March 31, 2022** | **December 31, 2022** | **March 31, 2022** | **December 31, 2022** | **March 31, 2022** | **December 31, 2022** |
|  Long-term borrowings | ¥2075 | ¥2369 | ¥90 | ¥200 | ¥0 | ¥1 |
|  Total | ¥2075 | ¥2369 | ¥90 | ¥200 | ¥0 | ¥1 |

---

Hedging derivatives designated as fair value hedges are carried at fair value attributable to the hedged risk, which is recognized in the consolidated statements of income within *Interest expense and Revenue-Other*, respectively together with the change in fair value of the hedged items.

The following tables present amounts included in the consolidated statements of income for the nine and three months ended December 31, 2021 and 2022 related to derivatives designated as fair value hedges by type of underlying derivative contract and the nature of the hedged item.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Derivatives designated as hedging instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | ¥(5) | ¥107 |
|  Total | ¥(5) | ¥107 |
|  Hedged items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | ¥5 | ¥(107) |
|  Total | ¥5 | ¥(107) |
|  | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Derivatives designated as hedging instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate contracts | ¥(2) | ¥(32) |
|  Total | ¥(2) | ¥(32) |
|  Hedged items: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | ¥2 | ¥32 |
|  Total | ¥2 | ¥32 |

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##### [**Table of Contents**](#toc)
*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 recognized through the consolidated statements of comprehensive income within *Other comprehensive income (loss)—Cumulative translation adjustments*. This is offset by the foreign exchange adjustments arising from consolidation of the relevant foreign subsidiaries.

The following tables present gains (losses) from derivatives designated as net investment hedges included in the consolidated statements of comprehensive income for the nine and three months ended December 31, 2021 and 2022.

---

| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Hedging instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | ¥5 | ¥7 |
|  Total | ¥5 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7 |
|  | **Billions of yen** | **Billions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Hedging instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange contracts | ¥3 | ¥(11) |
|  Total | ¥3 | ¥(11) |

---

------

The portion of gains (losses) representing the amount excluded from the assessment of hedge effectiveness are recognized within *Revenue—Net gain on trading* and *Revenue—Other* in the consolidated statements of income. The amount of gains (losses) was not significant during the nine and three months ended December 31, 2021 and 2022.

*Derivatives containing credit risk related contingent features* 

Nomura enters into certain OTC derivatives and other agreements containing credit-risk-related contingent features. These features would require Nomura to post additional collateral or settle the instrument upon occurrence of a credit event, the most common of which would be a downgrade in the Company's long-term credit rating.

The aggregate fair value of all derivatives with credit-risk-related contingent features that are in a liability position as of March 31, 2022 was ¥638 billion with related collateral pledged of ¥421 billion. In the event of a one-notch downgrade to Nomura's long-term credit rating in effect as of March 31, 2022, the aggregate fair value of assets that would have been required to be posted as additional collateral or that would have been needed to settle the instruments immediately was approximately ¥1 billion.

The aggregate fair value of all derivatives with credit-risk-related contingent features that are in a liability position as of December 31, 2022 was ¥545 billion with related collateral pledged of ¥393 billion. In the event of a one-notch downgrade to Nomura's long-term credit rating in effect as of December 31, 2022, the aggregate fair value of assets that would have been required to be posted as additional collateral or that would have been needed to settle the instruments immediately was approximately ¥9 billion.

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##### [**Table of Contents**](#toc)
**Credit derivatives** 

Credit derivatives are derivatives in which one or more of their underlying reference assets of the instrument are related to the credit risk of a specified entity (or group of entities) or an index based on the credit risk of a group of entities that expose the seller of credit protection to potential loss from credit events specified in the contract.

Written credit derivatives are instruments or embedded features where Nomura assumes third party credit risk, either as guarantor in a guarantee-type contract, or as the party that provides credit protection in an option-type contract, credit default swap, or any other credit derivative contract.

Nomura enters into credit derivatives as part of its normal trading activities as both purchaser and/ or seller of protection for credit risk mitigation, proprietary trading positions and for client transactions.

The most common type of credit derivatives used by Nomura are single-name credit default swaps where settlement of the derivative is based on the credit risk of a single third party. Nomura also 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 the respective contract occurs. Typical credit events include bankruptcy, failure to pay and restructuring of obligations of the underlying reference asset.

Credit derivatives written by Nomura are either cash or physically settled. In cash-settled instruments, once payment is made upon an event of a 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 other third parties either on identical underlying reference assets or on underlying reference assets with the same issuer which would be expected to behave in a correlated fashion. The most common form of recourse provision to enable Nomura to recover from third parties any amounts paid under a written credit derivative is therefore not through the derivative itself but rather through the purchase of separate credit derivative protection with identical or correlated underlying reference assets.

The extent of these purchased credit protection contracts is quantified in the following tables under the column titled "Purchased Credit Protection." These amounts represent purchased credit protection with identical underlying reference assets to the written credit derivatives which act as a hedge against Nomura's exposures. To the extent Nomura is required to pay out under the written credit derivative, a similar amount would generally become due to Nomura under the purchased credit protection.

Written credit derivatives have a stated notional amount which represents the maximum payment Nomura may be required to make under the written credit derivative. However, this is generally not a true representation of the amount Nomura will actually pay under these contracts as there 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 the underlying reference asset will default and that Nomura will be required to make payments under the contract. Based on historical experience and Nomura's assessment of the market, Nomura believes that the probability that all reference assets on which Nomura provides protection will default in a single period is remote. The notional amounts 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 be minimal in certain cases, this does reduce amounts paid on these contracts.

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##### [**Table of Contents**](#toc)
The following tables present information about Nomura's written credit derivatives and purchased credit protection with identical underlyings as of March 31, 2022 and December 31, 2022.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Notional** |
|  | | | **Years to maturity** | **Years to maturity** | **Years to maturity** | **Years to maturity** | **Purchased**<br>**credit**<br>**protection** |
|  |<br>**Carrying value**<br>**(Asset) / Liability<sup>(1)</sup>** |<br>**Total** | **Less than**<br>**1 year** | **1 to 3**<br>**years** | **3 to 5**<br>**years** | **More than**<br>**5 years** | **Purchased**<br>**credit**<br>**protection** |
|  Single-name credit default swaps | ¥19 | ¥7708 | ¥1339 | ¥2915 | ¥2448 | ¥1006 | ¥5688 |
|  Credit default swap indices | (140) | 10015 | 2045 | 4189 | 3257 | 524 | 7494 |
|  Other credit risk related portfolio products | 19 | 419 | 56 | 286 | 63 | 14 | 293 |
|  Credit-risk related options and swaptions | 0 | 115 |  |  | 88 | 27 | 68 |
|  Total | ¥(102) | ¥18257 | ¥3440 | ¥7390 | ¥5856 | ¥1571 | ¥13543 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  |  | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Notional** |
|  |  |  | **Years to maturity** | **Years to maturity** | **Years to maturity** | **Years to maturity** | **Purchased**<br>**credit**<br>**protection** |
|  | **Carrying value**<br>**(Asset) / Liability<sup>(1)</sup>** | **Total** | **Less than**<br>**1 year** | **1 to 3**<br>**years** | **3 to 5**<br>**years** | **More than**<br>**5 years** | **Purchased**<br>**credit**<br>**protection** |
|  Single-name credit default swaps | ¥(10) | ¥7667 | ¥1290 | ¥3186 | ¥2404 | ¥787 | ¥5332 |
|  Credit default indices | (72) | 10092 | 2381 | 4191 | 3033 | 487 | 7806 |
|  Other credit risk related portfolio products | 44 | 498 | 145 | 185 | 152 | 16 | 296 |
|  Credit-risk related options and swaptions | 0 | 65 |  |  | 65 |  | 50 |
|  Total | ¥(38) | ¥18322 | ¥3816 | ¥7562 | ¥5654 | ¥1290 | ¥13484 |

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

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

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** |
|  | **AAA** | **AA** | **A** | **BBB** | **BB** | **Other<sup>(1)</sup>** | **Total** |
|  Single-name credit default swaps | ¥192 | ¥1485 | ¥2164 | ¥2057 | ¥869 | ¥941 | ¥7708 |
|  Credit default swap indices | 105 | 215 | 3369 | 5012 | 988 | 326 | 10015 |
|  Other credit risk related portfolio products |  |  | 28 | 226 | 47 | 118 | 419 |
|  Credit-risk related options and swaptions |  |  | 61 | 27 | 27 |  | 115 |
|  Total | ¥297 | ¥1700 | ¥5622 | ¥7322 | ¥1931 | ¥1385 | ¥18257 |

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##### [**Table of Contents**](#toc)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** | **Maximum potential payout/Notional** |
|  | **AAA** | **AA** | **A** | **BBB** | **BB** | **Other<sup>(1)</sup>** | **Total** |
|  Single-name credit default swaps | ¥211 | ¥1251 | ¥2246 | ¥2385 | ¥801 | ¥773 | ¥7667 |
|  Credit default indices | 78 | 244 | 4083 | 4415 | 886 | 386 | 10092 |
|  Other credit risk related portfolio products |  |  | 72 | 218 | 60 | 148 | 498 |
|  Credit-risk related options and swaptions |  |  | 14 | 14 | 37 |  | 65 |
|  Total | ¥289 | ¥1495 | ¥6415 | ¥7032 | ¥1784 | ¥1307 | ¥18322 |

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(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 a separate 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 or other derivative agreements which are in-substance total return swaps.

These transactions are accounted for as sales of the securities with the derivative accounted for separately if the criteria for derecognition of the securities under ASC 860 are met. Where the derecognition criteria are not met, the transfer and separate derivative are accounted for as a single collateralized financing transaction which is reported within *Long-term borrowings* or *Short-term borrowings* in the consolidated balance sheets.

For the year ended March 31, 2022, certain transactions which involve sales of securities and total return swaps were accounted for as sales. As of the date of transfer, the carrying amount of the securities and the amount of gross cash proceeds from the sales were ¥69,405 million and ¥69,535 million, respectively. As of March 31, 2022, the fair value of the securities derecognized by Nomura and the gross liability balances of the derivatives arising from the transactions were ¥63,994 million and ¥5,319 million, respectively.

For the nine months ended December 31, 2022, certain transactions which involve sales of securities and total return swaps were accounted for as sales. As of the date of transfer, the carrying amount of the securities and the amount of gross cash proceeds from the sales were ¥69,405 million and ¥69,535 million, respectively. As of December 31, 2022, the fair value of the securities derecognized by Nomura and the gross liability balances of the derivatives arising from the transactions were ¥55,399 million and ¥13,981 million, respectively.

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**4. Revenue from services provided to customers** 

**Revenue by types of service** 

The following table presents revenue earned by Nomura from providing services to customers by relevant line item in the consolidated statements of income for the nine and three months ended December 31, 2021 and 2022.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Commissions | ¥257095 | ¥216085 |
|  Fees from investment banking | 115624 | 85257 |
|  Asset management and portfolio service fees | 201128 | 204323 |
|  Other revenue | 28988 | 32632 |
|  Total | ¥602835 | ¥538297 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Commissions | ¥82573 | ¥77502 |
|  Fees from investment banking | 46020 | 33783 |
|  Asset management and portfolio service fees | 69891 | 67035 |
|  Other revenue | 11347 | 11617 |
|  Total | ¥209831 | ¥189937 |

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Commissions represent revenue principally from trade execution, clearing services and distribution of fund units provided by the Wholesale and Retail divisions generated approximately equally across the divisions. The following table shows the breakdown of Commissions for the nine and three months ended December 31, 2021 and 2022.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Brokerage commissions | ¥183221 | ¥149449 |
|  Commissions for distribution of investment trust | 37191 | 22238 |
|  Other commissions | 36683 | 44398 |
|  Total | ¥257095 | ¥216085 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Brokerage commissions | ¥57263 | ¥52629 |
|  Commissions for distribution of investment trust | 11618 | 8314 |
|  Other commissions | 13692 | 16559 |
|  Total | ¥82573 | ¥77502 |

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##### [**Table of Contents**](#toc)
Fees from investment banking represent revenues from financial advisory, underwriting and distribution primarily from the Wholesale division, and to a lesser extent, the Retail division. The following table shows the breakdown of Fees from investment banking for the nine and three months ended December 31, 2021 and 2022.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Equity underwriting and distribution fees | ¥30018 | ¥13433 |
|  Debt underwriting and distribution fees | 23484 | 15715 |
|  Financial advisory fees | 44264 | 42599 |
|  Other fees | 17858 | 13510 |
|  Total | ¥115624 | ¥&nbsp;&nbsp;&nbsp;&nbsp;85257 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Equity underwriting and distribution fees | ¥9787 | ¥8117 |
|  Debt underwriting and distribution fees | 10039 | 4500 |
|  Financial advisory fees | 17488 | 14289 |
|  Other fees | 8706 | 6877 |
|  Total | ¥46020 | ¥33783 |

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Asset management and portfolio service fees represent revenues from asset management services primarily from the Investment Management division and to a lesser extent, the Retail division.

The following table shows the breakdown of Asset management and portfolio service fees for the nine and three months ended December 31, 2021 and 2022.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Asset management fees | ¥126608 | ¥128727 |
|  Administration fees | 60107 | 57592 |
|  Custodial fees | 14413 | 18004 |
|  Total | ¥201128 | ¥204323 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Asset management fees | ¥44029 | ¥41810 |
|  Administration fees | 20841 | 19014 |
|  Custodial fees | 5021 | 6211 |
|  Total | ¥69891 | ¥67035 |

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##### [**Table of Contents**](#toc)
The following table presents summary information regarding the key methodologies, assumptions and judgments 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 performance obligations are satisfied at a point in time or over a period of time. For performance obligations recognized over time, information is also provided to explain the nature of the input or output method used to recognize revenue over time.

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| | | |
|:---|:---|:---|
| **Type of service provided to**<br> **customers** | **Overview of key services provided** | **Key revenue recognition policies, assumptions and**<br> **judgments** |
| Trade execution, clearing services and distribution of fund units | • Buying and selling of securities on behalf of customers<br>• Distribution of fund units<br>• Clearing of securities and derivatives on behalf of customers | • Trade execution and clearing commissions recognized at a point in time, namely trade date.<br>• Distribution fees are recognized at a point in time when the fund units have been sold to third party investors.<br>• Commissions recognized net of soft dollar credits provided to customers where Nomura is acting as agent in providing investment research and similar services to the customer. |
| Financial advisory services | • Provision of financial advice to customers in connection with a specific forecasted transaction or transactions such as mergers and acquisitions<br>• Provision of financial advice not in connection with a specific forecasted transaction or transactions such as general corporate intelligence and similar research<br>• Issuance of fairness opinions<br>• Structuring complex financial instruments for customers | • Fees contingent on the success of an underlying transaction are variable consideration recognized when the underlying transaction has been completed since only at such point is it probable that a significant reversal of revenue will not occur.<br>• Retainer and milestone fees are recognized either over the period to which they relate or are deferred until consummation of the underlying transaction depending on whether the underlying performance obligation is satisfied at a point in time or over time.<br>• Judgment is required to make this determination with factors influencing this determination including, but not limited to, whether the fee is in connection with an engagement designed to achieve a specific transaction or outcome for the customer (such as the purchase or sale of a business), the nature and extent of benefit to be provided to the customer prior to, and in addition to such specific transaction or outcome and the fee structure for the engagement.<br>• Retainer and milestone fees recognized over time are normally recognized on a straight-line basis over the term of the contract based on time elapsed. |
| Underwriting and syndication services | • Underwriting of debt, equity and other financial instruments on behalf of customers<br>• Distributing securities on behalf of issuers<br>• Arranging loan financing for customers<br>• Syndicating loan financing on behalf of customer | • Underwriting and syndication fees are recognized at a point in time when the underlying transaction is complete.<br>• Commitment fees where draw down of the facility is deemed remote recognized on a straight-line basis over the life of the facility based on time elapsed.<br>• Underwriting and syndication costs recognized either as a reduction of revenue or on a gross basis depending on whether Nomura is acting as principal or agent for such amounts. |

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| | | |
|:---|:---|:---|
| **Type of service provided to**<br> **customers** | **Overview of key services provided** | **Key revenue recognition policies, assumptions and**<br> **judgments** |
| Asset management services | • Management of funds, investment trusts and other investment vehicles<br>• Provision of investment advisory services<br>• Provision of custodial and administrative services to customers | • Management fees earned by Nomura in connection with managing a fund, investment trust or other vehicle generally are recognized on a straight-line basis based on time elapsed.<br>• Performance-based fees are variable consideration recognized when the performance metric has been determined since only at such point is it probable that a significant reversal of revenue will not occur.<br>• Custodial and administrative fees are recognized on a straight-line basis over time based on time elapsed. |

---

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 performance obligation. In relation to revenue recognized over time, payments of fees are typically settled monthly, quarterly or semi-annually.

The underlying contracts entered into by Nomura in connection with the services described above typically do not have significant financing components. If such components exist in a contract, Nomura has made an accounting policy permitted by ASC 606 "*Revenue from Contracts with Customers*" ("ASC 606") not to adjust for the effects of a significant financing component where the financing is effectively for a period of one year or less. Such contracts also typically do not contain any rights of return or similar features for the customer.

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##### [**Table of Contents**](#toc)
**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 completion of a performance obligation, namely a right of Nomura to receive consideration for providing the service to the customer, 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. Both contract assets and customer contract receivables are reported in *Receivables from Customers* within Nomura's consolidated balance sheet. A contract liability is any liability recognized in connection with a customer contract, including obligations to refund or obligations to provide a service in the future for which consideration has already been received or is due to be received. Contract liabilities are reported in *Payables to Customers* within Nomura's consolidated balance sheet.

The following table presents the balances of customer contract receivables and contract liabilities in scope of ASC 606. The amount of contract assets as of March 31, 2022 and December 31, 2022 was not significant.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Customer contract receivables | ¥88621 | ¥92620 |
|  Contract liabilities<sup>(1)</sup> | 3834 | 4919 |

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

The balance of contract liabilities as of March 31, 2021 and 2022 were recognized as revenue for the nine months ended December 31, 2021 and 2022, respectively.

Nomura recognized ¥7,818 million and ¥1,888 million of revenue from performance obligations satisfied in previous periods for the nine months ended December 31, 2021 and the three months ended December 31, 2021, respectively. Nomura recognized ¥4,865 million and ¥354 million of revenue from performance obligations satisfied in previous periods for the nine months ended December 31, 2022 and the three months ended December 31, 2022.

**Transaction price allocated to the remaining performance obligations** 

In the ordinary course of business, Nomura may enter into customer contracts where the performance obligations are wholly or partially unsatisfied as of fiscal year ends. The total transaction prices allocated to the remaining unsatisfied performance obligations within these customer contracts were ¥1,350 million as of March 31, 2022 and ¥1,282 million as of December 31, 2022. As permitted by ASC 606, Nomura has elected not to disclose information about remaining performance obligations that have an individual estimated contract period of one year or less. In addition, considerations arising from contracts with customers do not comprise any significant amount that is not included in transaction price.

**Customer contract costs** 

As permitted by ASC 340 "*Other Assets and Deferred Costs*," Nomura has elected to expense all costs to obtain customer contracts where 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 December 31, 2022 was not significant.

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**5. Collateralized transactions:** 

Nomura enters into collateralized transactions, including reverse repurchase agreements, repurchase agreements, securities borrowing transactions, securities lending transactions, other secured borrowings and similar transactions mainly to meet clients' financing needs, finance trading inventory positions and obtain securities for settlement.

Reverse repurchase agreements, repurchase agreements, securities borrowing transactions and securities lending transactions are typically documented under industry standard master netting agreements which mitigate Nomura's credit exposure to counterparties. For certain centrally-cleared reverse repurchase and repurchase agreements, the clearing or membership agreements entered into by Nomura provide similar rights to Nomura in 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 and securities lending transactions with certain types of counterparty and in certain jurisdictions which are not documented under a master netting agreement. Even when these transactions are documented under such master netting agreements, Nomura may not have obtained, or may not be able to obtain, evidence to determine with 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 are complex, ambiguous or silent on the enforceability of such rights. This may include reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions executed with certain foreign governments, agencies, municipalities, central clearing counterparties, agent banks and pension funds.

Nomura considers the enforceability of a master netting agreement in determining how credit risk arising from transactions with a specific counterparty is hedged, how counterparty credit exposures are calculated and applied 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 and non-Japanese government, agency, mortgage-backed, bank and corporate debt securities and equities. In most cases, the party receiving the collateral is free to sell or repledge the securities received through repurchase agreements, securities lending transactions or to cover short positions. In repurchase and reverse repurchase agreements, the value 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, to ensure that such transactions are adequately collateralized throughout the life of the transactions.

**Offsetting of certain collateralized transactions** 

Reverse repurchase agreements and repurchase agreements, securities borrowing and lending transactions with the same counterparty documented under a master netting agreement are offset in the consolidated balance sheets where specific criteria as defined by ASC 210-20 are met. These criteria include requirements around maturity of transactions, underlying systems on which collateral is settled, associated banking arrangements and legal enforceability of close-out and offsetting rights under relevant master netting agreements.

The following tables present information about offsetting of these transactions in the consolidated balance sheets as of March 31, 2022 and December 31, 2022, together with the extent to which master netting agreements entered into with counterparties and central clearing parties permit additional offsetting in the event of counterparty default. Transactions which are not documented under a master netting agreement or are documented under a master netting agreement for which Nomura does not have sufficient evidence of enforceability are not offset in the following tables.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
|  | **Reverse**<br>**repurchase**<br>**agreements** | **Securities**<br>**borrowing**<br>**transactions** | **Repurchase**<br>**agreements** | **Securities**<br>**lending**<br>**transactions** |
|  Total gross balance<sup>(1)</sup> | ¥31365 | ¥4994 | ¥32061 | ¥1734 |
|  Less: Amounts offset in the consolidated balance sheets<sup>(2)</sup> | (19486) |  | (19486) |  |
|  Total net amounts of reported on the face of the consolidated balance sheets<sup>(3)</sup> | ¥11879 | ¥4994 | ¥12575 | ¥1734 |
|  Less: Additional amounts not offset in the consolidated balance sheets<sup>(4)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments and non-cash collateral | (9370) | (3372) | (9114) | (1524) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash collateral | (8) |  | (12) |  |
|  Net amount | ¥2501 | ¥1622 | ¥3449 | ¥210 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
|  | **Reverse**<br>**repurchase**<br>**agreements** | **Securities**<br>**borrowing**<br>**transactions** | **Repurchase**<br>**agreements** | **Securities**<br>**lending**<br>**transactions** |
|  Total gross balance<sup>(1)</sup> | ¥37605 | ¥4271 | ¥37684 | ¥1449 |
|  Less: Amounts offset in the consolidated balance sheets<sup>(2)</sup> | (21754) |  | (21754) |  |
|  Total net amounts of reported on the face of the consolidated balance sheets<sup>(3)</sup> | ¥15851 | ¥4271 | ¥15930 | ¥1449 |
|  Less: Additional amounts not offset in the consolidated balance sheets<sup>(4)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial instruments and non-cash collateral | (13478) | (2607) | (11801) | (1271) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash collateral | (12) |  | (4) |  |
|  Net amount | ¥2361 | ¥1664 | ¥4125 | ¥178 |

---

------

(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 not transacted under master netting agreements or are documented under master netting agreements for which Nomura has not yet obtained sufficient evidence of enforceability amounted to
¥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 of enforceability amounted to ¥1,511 billion and ¥158 billion, respectively. As of December 31, 2022, the gross balance of
reverse repurchase agreements and repurchase agreements which were not transacted under master netting agreements or are documented under master netting agreements for which Nomura has not yet obtained sufficient evidence of enforceability amounted
to ¥811 billion and ¥3,227 billion, respectively. As of December 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 of enforceability amounted to ¥1,535 billion and ¥112 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.

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##### [**Table of Contents**](#toc)
(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
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 under securities lending transactions also include transactions where Nomura lends securities and receives securities that can be sold or pledged as collateral. Nomura recognizes the securities received at fair value
and a liability for the same amount, representing the obligation to return those securities. The liability is reported within *Other liabilities* in the consolidated balance sheets.

(4) Represent amounts which are not permitted to be offset on the face of the consolidated balance sheet in
accordance with ASC 210-20 but which provide Nomura with the right of offset in the event of counterparty default. Amounts relating to agreements where Nomura has not yet obtained sufficient evidence of
enforceability of such offsetting rights are excluded.

For information on offsetting of derivatives, see Note 3 "*Derivative instruments and hedging activities*".

**Maturity analysis of repurchase agreements and securities lending transactions** 

The following tables present an analysis of the total carrying value of liabilities recognized in the consolidated balance sheets for repurchase agreements and securities lending transactions by remaining contractual maturity of the agreement as of March 31, 2022 and December 31, 2022. Amounts reported are shown prior to counterparty netting in accordance with ASC 210-20.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Overnight**<br>**and open<sup>(1)</sup>** | **Up to**<br>**30 days** | **30 – 90**<br>**days** | **90 days – 1 year** | **Greater**<br>**than 1 year** | **Total** |
|  Repurchase agreements | ¥12266 | ¥15454 | ¥2220 | ¥1611 | ¥510 | ¥32061 |
|  Securities lending transactions | 992 | 242 | 200 | 277 | 23 | 1734 |
|  Total gross recognized liabilities<sup>(2)</sup> | ¥13258 | ¥15696 | ¥2420 | ¥1888 | ¥533 | ¥33795 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Overnight**<br>**and open<sup>(1)</sup>** | **Up to**<br>**30 days** | **30 – 90**<br>**days** | **90 days – 1 year** | **Greater**<br>**than 1 year** | **Total** |
|  Repurchase agreements | ¥14344 | ¥17384 | ¥3708 | ¥1623 | ¥625 | ¥37684 |
|  Securities lending transactions | 867 | 199 | 42 | 317 | 24 | 1449 |
|  Total gross recognized liabilities<sup>(2)</sup> | ¥15211 | ¥17583 | ¥3750 | ¥1940 | ¥649 | ¥39133 |

---

------

(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 the
obligation to return those securities. The liability is reported within *Other liabilities* in the consolidated balance sheets. The total gross recognized liabilities reported for repurchase agreements and securities lending transactions are
consistent with the total gross balances reported in the offsetting disclosures above.

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##### [**Table of Contents**](#toc)
**Securities transferred in repurchase agreements and securities lending transactions** 

The following tables present an analysis of the total carrying value of liabilities recognized in the consolidated balance sheets for repurchase agreements and securities lending transactions by class of securities transferred by Nomura to counterparties as of March 31, 2022 and December 31, 2022. Amounts reported are shown prior to counterparty netting in accordance with ASC 210-20.

---

| | | | |
|:---|:---|:---|:---|
| | **Billions of yen** | **Billions of yen** | **Billions of yen** |
| | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
| | **Repurchase**<br>**agreements** | **Securities**<br>**lending**<br>**transactions** | **Total** |
|  Equities and convertible securities | ¥384 | ¥1508 | ¥1892 |
|  Japanese government, agency and municipal securities | 879 | 1 | 880 |
|  Foreign government, agency and municipal securities | 26436 | 17 | 26453 |
|  Bank and corporate debt securities | 2322 | 175 | 2497 |
|  Commercial mortgage-backed securities ("CMBS") | 1 |  | 1 |
|  Residential mortgage-backed securities ("RMBS")<sup>(1)</sup> | 1846 |  | 1846 |
|  Collateralized debt obligations ("CDOs") and other | 157 |  | 157 |
|  Investment trust funds and other | 36 | 33 | 69 |
|  Total gross recognized liabilities<sup>(2)</sup> | ¥32061 | ¥1734 | ¥33795 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Repurchase**<br>**agreements** | **Securities**<br>**lending**<br>**transactions** | **Total** |
|  Equities and convertible securities | ¥311 | ¥1252 | ¥1563 |
|  Japanese government, agency and municipal securities | 2319 | 0 | 2319 |
|  Foreign government, agency and municipal securities | 28207 | 71 | 28278 |
|  Bank and corporate debt securities | 3106 | 117 | 3223 |
|  Residential mortgage-backed securities ("RMBS")<sup>(1)</sup> | 3559 |  | 3559 |
|  Collateralized debt obligations ("CDOs") and other | 181 |  | 181 |
|  Investment trust funds and other | 1 | 9 | 10 |
|  Total gross recognized liabilities<sup>(2)</sup> | ¥37684 | ¥1449 | ¥39133 |

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------

(1) Includes ¥1,404 billion of U.S. government sponsored agency mortgage pass through securities and
collateralized mortgage obligations as of March 31, 2022. Includes ¥2,970 billion of U.S. government sponsored agency mortgage pass through securities and collateralized mortgage obligations as of December 31, 2022.

(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 the
obligation to return those securities. The liability is reported within *Other liabilities* in the consolidated balance sheets. The total gross recognized liabilities reported for repurchase agreements and securities lending transactions are
consistent with the total gross balances reported in the offsetting disclosures above.

**Collateral received by Nomura** 

The following table presents the fair value of securities received as collateral, securities borrowed with collateral and securities borrowed without collateral, which Nomura is permitted to sell or repledge, and the portion that has been sold or repledged as of March 31, 2022 and December 31, 2022.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  The fair value of securities received as collateral, securities borrowed as collateral and securities borrowed without collateral where Nomura is permitted by contract or custom to sell or repledge the securities | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48234 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57578 |
|  The portion of the above that has been sold (as reported within *Trading liabilities* in the consolidated balance sheets) or repledged | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36146 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41323 |

---

**Collateral pledged by Nomura** 

Nomura pledges owned securities and other financial assets to collateralize repurchase transactions, other secured financings and derivative transactions. Pledged securities that can be sold or repledged by the transferee, including Gensaki Repo transactions, are reported in parentheses as *Securities pledged as collateral* within *Trading assets, Non-trading debt securities, Investments in equity securities* and *Investments in and advances to affiliated companies* 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, without allowing the secured party the right to sell or repledge them by type of asset as of March 31, 2022 and December 31, 2022.

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| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| | **March 31, 2022** | **December 31, 2022** |
|  Trading assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities and convertible securities | ¥368235 | ¥291160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government and government agency securities | 1178011 | 1114520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank and corporate debt securities | 27899 | 38858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential mortgage-backed securities ("RMBS") | 868183 | 2117125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized debt obligations ("CDOs") and other<sup>(1)</sup> | 9548 | 16206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 36661 | 1227 |
|  | ¥2488537 | ¥3579096 |
|  Non-trading debt securities<sup>(2)</sup> | ¥163445 | ¥106018 |
|  Investments in and advances to affiliated companies<sup>(3)</sup> | ¥12832 | ¥13896 |

---

------

(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.

(3) Investments in and advances to affiliated companies primarily comprise shares in Nomura Research Institute,
Ltd.

The following table presents the carrying amount of financial and non-financial assets recognized in the consolidated balance sheets, other than those disclosed above, which are subject to lien as of March 31, 2022 and December 31, 2022.

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| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| | **March 31, 2022** | **December 31, 2022** |
|  Loans and receivables | ¥235875 | ¥327096 |
|  Trading assets and private equity and debt investments | 1416279 | 1377894 |
|  Office buildings, land, equipment and facilities | 4841 | 3372 |
|  Non-trading debt securities | 2827 | 1542 |
|  Investments in and advances to affiliated companies | 3 | 3 |
|  Other | 497 | 722 |
|  | ¥1660322 | ¥1710629 |

---

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, and derivative transactions.

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**6. Securitizations and Variable Interest Entities:** 

**Securitizations** 

Nomura utilizes special purpose entities ("SPEs") to securitize commercial and residential mortgage loans, government agency and corporate securities and other types of financial assets. Those SPEs are incorporated as stock companies, Tokumei kumiai (silent partnerships), Cayman special purpose companies ("SPCs") or trust accounts. Nomura's involvement with SPEs includes structuring SPEs, underwriting, distributing and selling debt instruments and beneficial interests issued by SPEs to investors. Nomura accounts for the transfer of financial assets in accordance with ASC 860. This statement requires that Nomura accounts for the transfer of financial assets as a sale when Nomura relinquishes control over the assets. ASC 860 deems control to be relinquished when the following conditions are met: (a) the assets have been isolated from the transferor (even in bankruptcy or 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) the transferor has not maintained effective control over the transferred assets. Nomura may retain an interest in the financial assets, including residual interests in the SPEs. Any such interests are accounted for at fair value and reported 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 determined by using observable prices; or in cases where observable prices are not available for certain retained interests, Nomura estimates fair value 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 and discount rates commensurate with the risks involved. Nomura may also enter into derivative transactions in relation to the assets transferred to an SPE.

As noted above, Nomura may have continuing involvement with SPEs to which Nomura transferred assets. For the nine and three months ended December 31, 2021, Nomura received cash proceeds from SPEs in new securitizations of ¥316 billion and ¥119 billion, respectively, and the associated gain on sale was ¥9 billion and ¥0 billion, respectively. For the nine and three months ended December 31, 2022, Nomura received cash proceeds from SPEs in new securitizations of ¥225 billion and ¥89 billion, respectively, and the associated gain on sale was ¥1 billion and ¥0 billion, respectively. For the nine and three months ended December 31, 2021, Nomura received debt securities issued by these SPEs with an initial fair value of ¥1,586 billion and ¥415 billion, respectively, and cash inflows from third parties on the sale of those debt securities of ¥1,483 billion and ¥383 billion, respectively. For the nine and three months ended December 31, 2022, Nomura received debt securities issued by these SPEs with an initial fair value of ¥374 billion and ¥103 billion, respectively, and cash inflows from third parties primarily on the sale of those debt securities of ¥373 billion and ¥154 billion, respectively. The cumulative balance of financial assets transferred to SPEs with which Nomura has continuing involvement was ¥5,829 billion and ¥5,785 billion as of March 31, 2022 and December 31, 2022, respectively. Those transferred financial assets are substantially government, agency and municipal securities. Nomura's retained interests were ¥131 billion and ¥160 billion, as of March 31, 2022 and December 31, 2022, respectively. For the nine and three months ended December 31, 2021, Nomura received cash flows of ¥30 billion and ¥11 billion, respectively, from the SPEs on the retained interests held in the SPEs. For the nine and three months ended December 31, 2022, Nomura received cash flows of ¥20 billion and ¥7 billion, respectively, from the SPEs on the retained interests held in the SPEs.

Nomura did not provide financial support to SPEs beyond its contractual obligations as of March 31, 2022 and December 31, 2022.

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The following tables present the fair value of retained interests which Nomura has continuing involvement in SPEs and their classification in the fair value hierarchy, categorized by the type of transferred assets.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** | **Investment**<br>**grade** | **Other** |
|  Government, agency and municipal securities | ¥— | ¥124 | ¥— | ¥124 | ¥124 | ¥— |
|  Bank and corporate debt securities |  |  |  |  |  |  |
|  CMBS and RMBS |  |  | 7 | 7 | 2 | 5 |
|  Total | ¥— | ¥124 | ¥7 | ¥131 | ¥126 | ¥5 |
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** | **Investment**<br>**grade** | **Other** |
|  Government, agency and municipal securities | ¥— | ¥153 | ¥— | ¥153 | ¥153 | ¥— |
|  Bank and corporate debt securities |  |  |  |  |  |  |
|  CMBS and RMBS |  |  | 7 | 7 | 2 | 5 |
|  Total | ¥— | ¥153 | ¥7 | ¥160 | ¥155 | ¥5 |

---

As of March 31, 2022 and December 31, 2022, predominantly all of the retained interests held by Nomura were valued using observable prices. The initial fair value of these retained interests are mostly level 2 in the fair value hierarchy.

The following table presents the type and carrying value of financial assets included within *Trading assets* and *Loans receivable* which have been transferred to SPEs but which do not meet the criteria for derecognition under ASC 860. These transfers are accounted for as secured financing transactions and generally reported within *Long-term borrowings.* The assets are pledged as collateral of the associated liabilities and cannot be removed unilaterally by Nomura and the liabilities are non-recourse to Nomura.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government securities | ¥— | ¥1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans for trading purposes | 19 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans receivable | 203 | 296 |
|  Total | ¥222 | ¥321 |
|  Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;222 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;321 |

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##### [**Table of Contents**](#toc)
**Variable Interest Entities ("VIEs")** 

In the normal course of business, Nomura acts as a transferor of financial assets to VIEs, and underwriter, distributor, and seller of repackaged financial instruments issued by VIEs in connection with its securitization and equity derivative activities. Nomura retains, purchases and sells variable interests in VIEs in connection with its market-making, investing and structuring activities.

If Nomura has power to direct the activities of a VIE that most significantly impact the VIE's economic performance, and through Nomura'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 in connection with Nomura's aircraft leasing business as well as other purposes are consolidated. Nomura also consolidates certain investment funds for which Nomura is the primary beneficiary.

The power to direct the most significant activities may take a number of different forms in different types of VIEs. For transactions such as securitizations, investment funds, and CDOs, Nomura generally considers collateral management and servicing to represent the power to make the most significant decisions, unless such roles are deemed to be a fiduciary relationship. Accordingly, Nomura does not consolidate such types of VIEs for which it does not act as collateral manager or servicer unless Nomura has the unilateral right to replace the collateral 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 the unilateral ability to liquidate the VIE. In those cases, Nomura focuses its analysis on the party who has the sole discretion in the initial design of the VIE, and considers factors such as the nature of the underlying assets held by the VIE, the extent of third party investors' involvement in the design of the VIE, the size of initial third party investment and the amount and level of any subordination of beneficial interests issued by the VIE which will be held by Nomura and any third party investors. Nomura has sponsored numerous re-securitization transactions and in many cases has determined that it is not the primary beneficiary on the basis that power to direct the most significant 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.

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##### [**Table of Contents**](#toc)
The following table presents the classification of consolidated VIEs' assets and liabilities in these consolidated financial statements as of March 31, 2022 and December 31, 2022. 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.

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| | | |
|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Consolidated VIE assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | ¥62 | ¥37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | 555 | 517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 443 | 448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CMBS and RMBS | 21 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private equity and debt investments | 4 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Office buildings, land, equipment and facilities | 10 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 115 | 76 |
|  Total | ¥1211 | ¥1143 |
|  Consolidated VIE liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | ¥0 | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 95 | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 797 | 795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 6 | 4 |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;898 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;905 |

---

On a quarterly basis, Nomura reassesses its involvement with the VIEs and evaluates the impact of any changes in governing documents and/or variable interests held by Nomura and other parties.

Nomura also holds variable interests in VIEs where Nomura is not the primary beneficiary. Nomura's variable interests in such VIEs include senior and subordinated debt, residual interests, and equity interests associated with commercial and residential mortgage-backed and other asset-backed securitizations and structured financings, equity interests in VIEs which were formed primarily to acquire high yield leveraged loans and other lower investment grade debt obligations, residual interests in operating leases for aircraft held by VIEs, and loans and investments in VIEs that acquire operating businesses.

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##### [**Table of Contents**](#toc)
The following tables present the carrying amount of variable interests of unconsolidated VIEs and maximum exposure to loss associated with these variable interests. Maximum exposure to loss does not reflect Nomura's estimate of the actual losses that could result from adverse changes, 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 the amount of any undrawn commitments and financial guarantees issued.

---

| | | | |
|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Carrying amount of**<br>**variable interests** | **Carrying amount of**<br>**variable interests** | **Maximum exposure**<br>**to loss to**<br>**unconsolidated VIEs** |
|  | **Assets** | **Liabilities** | **Maximum exposure**<br>**to loss to**<br>**unconsolidated VIEs** |
|  Trading assets and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥26 | ¥— | ¥26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 61 |  | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CMBS and RMBS | 1432 |  | 1432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 191 |  | 191 |
|  Private equity and debt investments | 22 |  | 22 |
|  Loans | 940 |  | 940 |
|  Other | 10 |  | 10 |
|  Commitments to extend credit and other guarantees |  |  | 256 |
|  Total | ¥2682 | ¥— | ¥2938 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Billions of yen** | **Billions of yen** | **Billions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying amount of**<br>**variable interests** | **Carrying amount of**<br>**variable interests** | **Maximum exposure**<br>**to loss to**<br>**unconsolidated VIEs** |
|  | **Assets** | **Liabilities** | **Maximum exposure**<br>**to loss to**<br>**unconsolidated VIEs** |
|  Trading assets and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equities | ¥24 | ¥— | ¥24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 56 |  | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CMBS and RMBS | 2909 |  | 2909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trust funds and other | 145 |  | 145 |
|  Private equity and debt investments | 18 |  | 18 |
|  Loans | 930 |  | 930 |
|  Other | 1 |  | 1 |
|  Commitments to extend credit and other guarantees |  |  | 159 |
|  Total | ¥4083 | ¥— | ¥4242 |

---

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

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##### [**Table of Contents**](#toc)
**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 and securities borrowing transactions.

These financing receivables are recognized as assets on Nomura's consolidated balance sheets at fair value or on amortized cost basis and provide a contractual right to receive money either on demand or on future fixed or determinable dates.

The carrying value of financing receivables measured on an amortized cost basis is adjusted for an allowance for current expected credit losses ("CECL") defined by ASC 326 "*Financial Instruments—Credit Losses*" ("ASC 326"). Allowances for CECL against recognized financial instruments are reported in the consolidated balance sheets within *Allowance for credit losses*.

*Collateralized agreements* 

Collateralized agreements consist of reverse repurchase agreements reported as Securities purchased under agreements to resell and securities borrowing transactions reported as Securities borrowed in the consolidated balance sheets, including those executed under Gensaki Repo agreements. Reverse repurchase agreements and securities borrowing transactions principally involve the buying of government and government agency securities from customers under agreements that also require Nomura to resell these securities to those customers, or borrowing these securities with cash and 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 repurchase agreements are generally recognized in the consolidated balance sheets at the amount for which the securities were originally acquired with applicable accrued interest. Securities borrowing transactions are generally recognized in the consolidated balance sheets at the amount of cash collateral advanced. Allowances for CECL 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.

*Loans receivable* 

The key types of loans receivable recognized by Nomura are loans at banks, short-term secured margin loans, inter-bank money market loans 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 these counterparties usually have high or good credit ratings. Where loans are secured by guarantees, Nomura is also exposed to the risk of default by the guarantor.

Short-term secured margin loans are margin loans provided to clients in connection with securities brokerage business in retail and wealth management services. These loans provide funding for clients in order to purchase securities. Nomura requests initial margin in the form of acceptable securities or deposits against these loans and holds the purchased securities as collateral through the life of the loans. If the value of the securities declines by more than specified amounts, Nomura can make additional frequent margin calls in order to maintain a specified ratio of loan-to-value ("LTV") ratio. These clients are required and reasonably expected to continue to replenish the amount of collateral as required by Nomura. Allowances for current expected 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 loans is limited as only qualified financial institutions can participate in these markets and these loans are usually overnight or short-term in nature. Allowances for current expected losses against inter-bank money market loans are therefore usually not significant.

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##### [**Table of Contents**](#toc)
Corporate loans are primarily commercial loans provided to corporate clients excluding those classified as Loans at banks. Corporate loans include loans secured by real estate or securities, unsecured commercial loans provided to investment banking clients for relationship purposes. The risk to Nomura of making these loans is similar to those risks arising from commercial loans reported in loans at banks.

The following tables present a summary of loans receivable reported within *Loans receivable* or *Investments in and advances to affiliated companies* in the consolidated balance sheets as of March 31, 2022, and December 31, 2022 by portfolio segment.

---

| | | | |
|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **Carried at**<br>**amortized cost** | **Carried at**<br>**fair value<sup>(1)</sup>** | **Total** |
|  Loans receivable |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans at banks | ¥717992 | ¥— | ¥717992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term secured margin loans | 442600 |  | 442600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter-bank money market loans | 2196 |  | 2196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate loans | 1206349 | 1210590 | 2416939 |
|  Total loans receivable | ¥2369137 | ¥1210590 | ¥3579727 |
|  Advances to affiliated companies | 1000 |  | 1000 |
|  Total | ¥2370137 | ¥1210590 | ¥3580727 |
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carried at**<br>**amortized cost** | **Carried at**<br>**fair value<sup>(1)</sup>** | **Total** |
|  Loans receivable |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans at banks | ¥781207 | ¥— | ¥781207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term secured margin loans | 488379 |  | 488379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter-bank money market loans | 22542 |  | 22542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate loans | 1189270 | 1318405 | 2507675 |
|  Total loans receivable | ¥2481398 | ¥1318405 | ¥3799803 |
|  Advances to affiliated companies | 4980 |  | 4980 |
|  Total | ¥2486378 | ¥1318405 | ¥3804783 |

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(1) Includes loans receivable and loan commitments carried at fair value through election of the fair value option.

There were no significant purchases nor sales of loans receivable during the nine months ended December 31, 2021. During the same period, there were no significant reclassifications of loans receivable to or from trading assets.

There were no significant purchases nor sales of loans receivable during the nine months ended December 31, 2022. During the same period, there were no significant reclassifications of loans receivable to or from trading assets.

Net unamortized deferred fees and costs related to loans receivable carried at amortized cost were immaterial as of March 31, 2022 and December 31, 2022.

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##### [**Table of Contents**](#toc)
*Allowance for CECL* 

Management has established an allowance for CECL using the 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans receivable and written unfunded loan commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collateralized agreements such as reverse repos and securities borrowing transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Customer contract assets and receivables; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other receivables including margin receivables, security deposits, default fund contributions to central clearing
counterparties and net investments in finance leases.

CECL 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 and current conditions. Key macroeconomic inputs to our weighted average forecasts of three years include GDP and credit spreads. The risk of loss is considered, even when that risk of loss is remote. While management has based its estimate of the allowance for CECL on the best information available, future adjustments to the allowance 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 December 31, 2022 was not significant.

The methodology used by Nomura to determine allowances for CECL in accordance with 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 the loan or receivable as uncollectible, namely management believes there is no reasonable expectation of collecting future contractual cash flows and all commercially reasonable means of recovering outstanding principle and interest balances have been exhausted.

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##### [**Table of Contents**](#toc)
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 CECL during the nine month ended December 31, 2022.

---

| | |
|:---|:---|
| Financial instrument | Methodology to determine CECL |
| Loans, written loan commitments and certain deposits | • Full loss rate model developed by Nomura's Risk department.<br>• Measures expected credit losses based on probability of default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) inputs.<br>• PD inputs incorporate forward-looking scenarios used by Nomura for internal risk management and capital purposes.<br>• Immediate reversion method used for periods beyond which reasonable and supportable forecast is not available.<br>• For financial instruments which have defaulted or are probable of defaulting, expected credit losses measured using discounted cash flow analyses or, where the financial instrument is collateral dependent, based on any shortfall of fair value of the underlying collateral. |
| Collateralized agreements, short-term secured margin loans and cash prime brokerage loans | • For reverse repos and short-term secured margin loans and cash prime brokerage loans where frequent margining is required and the counterparty has ability to replenish margin, as permitted by a practical expedient provided by ASC 326 expected credit losses are limited to difference between carrying value of the reverse repo or margin loan and fair value of underlying collateral.<br>• 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 of collateral. |
| Customer contract assets and receivables | • Expected credit losses typically based on ageing analysis where loss rates are applied to the carrying value based on historical experience, the current economic climate and specific information about the ability of the client to pay. |

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##### [**Table of Contents**](#toc)
The following table presents changes in the total allowance for CECL for the nine and three months ended December 31, 2021 and 2022 as determined using the CECL impairment model defined by ASC 326.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** |
|  | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowances**<br>**against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  | **Loans**<br>**at banks** | **Short-term**<br>**secured**<br>**margin**<br>**loans** | **Corporate**<br>**loans** | **Subtotal** | **Allowances**<br>**against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  Opening balance | ¥1282 | ¥— | ¥47985 | ¥49267 | ¥4517 | ¥53784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses<sup>(2)</sup> | 170 |  | 9726 | 9896 | 115 | 10011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-offs |  |  | (19) | (19) | (85) | (104) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(4)</sup> | (9) |  | 1855 | 1846 | (1829) | 17 |
|  Ending balance | ¥1443 | ¥— | ¥59547 | ¥60990 | ¥2718 | ¥63708 |
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** |
|  | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowances<br>against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  | **Loans**<br>**at banks** | **Short-term**<br>**secured**<br>**margin**<br>**loans** | **Corporate**<br>**loans** | **Subtotal** | **Allowances<br>against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  Opening balance | ¥2434 | ¥— | ¥62353 | ¥64787 | ¥1559 | ¥66346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses | 672 |  | 1068 | 1740 | 47 | 1787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-offs | (1523) |  | (2598) | (4121) |  | (4121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(3)(4)</sup> | (417) |  | 236 | (181) | 208 | 27 |
|  Ending balance | ¥1166 | ¥— | ¥61059 | ¥62225 | ¥1814 | ¥64039 |
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** |
|  | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowances<br>against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  | **Loans**<br>**at banks** | **Short-term**<br>**secured**<br>**margin**<br>**loans** | **Corporate**<br>**loans** | **Subtotal** | **Allowances<br>against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  Opening balance | ¥1443 | ¥— | ¥57610 | ¥59053 | ¥2658 | ¥61711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses | 170 |  | 801 | 971 | 38 | 1009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-offs |  |  | (2) | (2) | (23) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(4)</sup> | (170) |  | 1138 | 968 | 45 | 1013 |
|  Ending balance | ¥1443 | ¥— | ¥59547 | ¥60990 | ¥2718 | ¥63708 |

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##### [**Table of Contents**](#toc)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** |
|  | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowance for CECL** | **Allowances<br>against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  | **Loans**<br>**at banks** | **Short-term**<br>**secured**<br>**margin**<br>**loans** | **Corporate**<br>**loans** | **Subtotal** | **Allowances<br>against**<br>**receivables**<br>**other than**<br>**loans<sup>(1)</sup>** | **Total**<br>**allowance for**<br>**CECL** |
|  Opening balance | ¥1166 | ¥— | ¥69154 | ¥70320 | ¥1836 | ¥72156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for losses |  |  | (304) | (304) | 32 | (272) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charge-offs |  |  | (46) | (46) |  | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other<sup>(3)(4)</sup> |  |  | (7745) | (7745) | (54) | (7799) |
|  Ending balance | ¥&nbsp;&nbsp;&nbsp;&nbsp;1166 | ¥— | ¥61059 | ¥62225 | ¥1814 | ¥64039 |

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(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, a provision
for losses of ¥9,289 million was recognized during the quarter ended June 30, 2021.

(3) A part of above provision for losses for a U.S. client, ¥1,910 million, was released in the quarter
ended December 31, 2022.

(4) Primarily includes the effect of foreign exchange movements and recoveries collected.

*Troubled debt restructurings* 

In the ordinary course of business, Nomura may choose to restructure a loan classified as held for investment 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 or legal 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 the loan'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 nine months ended December 31, 2021 and 2022 were not significant.

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##### [**Table of Contents**](#toc)
*Nonaccrual and past due loans* 

Loans are placed on a nonaccrual status if interest is deemed uncollectible. Nomura policy is to define interest as being uncollectible if 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 no further accrual of interest is permitted. Interest income is subsequent recognized when a cash payment is received from the borrower using the cash basis method.

Loans are generally 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 period of 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 nonaccrual status as of March 31, 2022 include loans relating to a U.S. client in connection with the U.S. Prime Brokerage Event in March 2021. The amount of loans which were 90 days past due but were not on a nonaccrual status was not significant.

As of December 31, 2022, there were ¥62,776 million of loans which were placed on a nonaccrual status, primarily secured corporate loans. Corporate loans on a nonaccrual status as of December 31, 2022 include loans relating to a U.S. client in connection with the U.S. Prime Brokerage Event in March 2021. The amount of loans which were 90 days past due but were not on a nonaccrual status was not significant.

*Credit quality indicators* 

Nomura is exposed to credit risks due to a decline in the value of loans or a default caused by deterioration of creditworthiness or bankruptcy of the borrower. Nomura's risk management framework for such credit risks is based on a risk assessment through an internal rating process, in depth pre-financing credit analysis of each individual loan and continuous post-financing monitoring of the borrower's creditworthiness.

The following tables present an analysis of each class of loans not carried at fair value using Nomura's internal ratings or equivalent credit quality indicators applied by subsidiaries by years of origination as of March 31, 2022 and December 31, 2022.

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##### [**Table of Contents**](#toc)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** | **2017 or**<br>**earlier** | **Revolving** | **Total** |
|  Secured loans at banks: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥106554 | ¥126834 | ¥8325 | ¥17308 | ¥9213 | ¥12729 | ¥— | ¥280963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC | 80167 | 169655 | 1693 | 638 | 587 | 6779 |  | 259519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others<sup>(1)</sup> |  | 82304 |  |  |  |  |  | 82304 |
|  Total secured loans at banks | ¥186721 | ¥378793 | ¥10018 | ¥17946 | ¥9800 | ¥19508 | ¥— | ¥622786 |
|  Unsecured loans at banks: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥6000 | ¥18175 | ¥12703 | ¥20565 | ¥9982 | ¥25841 | ¥— | ¥93266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  | 1940 |  |  |  | 1940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  |  |
|  Total unsecured loans at banks | ¥6000 | ¥18175 | ¥12703 | ¥22505 | ¥9982 | ¥25841 | ¥— | ¥95206 |
|  Short-term secured margin loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others<sup>(1)</sup> | 169195 | 23238 |  |  |  |  | 250167 | 442600 |
|  Total short-term secured margin loans | ¥169195 | ¥23238 | ¥— | ¥— | ¥— | ¥— | ¥250167 | ¥442600 |
|  Unsecured inter-bank money market loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥2196 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥2196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  |  |
|  Total unsecured inter-bank money market loans | ¥2196 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥2196 |
|  Secured corporate loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥— | ¥52545 | ¥86910 | ¥20710 | ¥3258 | ¥52496 | ¥9916 | ¥225835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC | 86300 | 307636 | 14718 | 131266 | 115494 | 30085 | 92039 | 777538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D<sup>(2)</sup> |  | 57524 |  |  |  |  |  | 57524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others<sup>(1)</sup> | 455 | 20 | 25 | 26 | 10 | 101 | 96 | 733 |
|  Total secured corporate loans | ¥86755 | ¥417725 | ¥101653 | ¥152002 | ¥118762 | ¥82682 | ¥102051 | ¥1061630 |
|  Unsecured corporate loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC | 11621 | 20516 |  | 1989 |  |  |  | 34126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 438 | 191 |  | 109959 | 5 |  | 110593 |
|  Total unsecured corporate loans | ¥11621 | ¥20954 | ¥191 | ¥1989 | ¥109959 | ¥5 | ¥— | ¥144719 |
|  Advances to affiliated companies |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥— | ¥1000 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  |  |
|  Total advances to affiliated companies | ¥— | ¥1000 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥1000 |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;462488 | ¥859885 | ¥124565 | ¥194442 | ¥248503 | ¥128036 | ¥352218 | ¥2370137 |

---

------

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

(2) Includes loans of ¥57,524 million to a U.S. client in connection with the U.S. Prime Brokerage Event.

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** | **2017 or**<br>**earlier** | **Revolving** | **Total** |
|  Secured loans at banks: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥262177 | ¥5960 | ¥8050 | ¥17509 | ¥8873 | ¥&nbsp;&nbsp;&nbsp;&nbsp;10172 | ¥— | ¥312741 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC | 287120 |  | 641 | 1634 | 546 | 5656 |  | 295597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others<sup>(1)</sup> |  | 93821 |  |  |  |  |  | 93821 |
|  Total secured loans at banks | ¥549297 | ¥99781 | ¥8691 | ¥19143 | ¥9419 | ¥15828 | ¥— | ¥702159 |
|  Unsecured loans at banks: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥15408 | ¥10187 | ¥11838 | ¥15698 | ¥6203 | ¥19714 | ¥— | ¥79048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  |  |
|  Total unsecured loans at banks | ¥15408 | ¥10187 | ¥11838 | ¥15698 | ¥6203 | ¥19714 | ¥— | ¥79048 |
|  Short-term secured margin loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others<sup>(1)</sup> | 213374 |  |  |  |  |  | 275005 | 488379 |
|  Total short-term secured margin loans | ¥213374 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥275005 | ¥488379 |
|  Unsecured inter-bank money market loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥22542 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥22542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  |  |
|  Total unsecured inter-bank money market loans | ¥22542 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥22542 |
|  Secured corporate loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥419965 | ¥120400 | ¥111723 | ¥179298 | ¥727 | ¥— | ¥5129 | ¥837242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC | 11886 | 20138 | 22018 | 10530 | 19651 | 2587 | 74926 | 161736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D<sup>(2)</sup> |  | 60598 |  |  |  |  |  | 60598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others<sup>(1)</sup> | 476 | 17 | 23 | 11 | 7 | 83 | 59 | 676 |
|  Total secured corporate loans | ¥432327 | ¥201153 | ¥133764 | ¥189839 | ¥&nbsp;&nbsp;&nbsp;&nbsp;20385 | ¥2670 | ¥80114 | ¥1060252 |
|  Unsecured corporate loans: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  | 2178 |  |  |  | 2178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 76 | 471 | 165 |  | 126121 | 7 |  | 126840 |
|  Total unsecured corporate loans | ¥76 | ¥471 | ¥165 | ¥2178 | ¥126121 | ¥7 | ¥— | ¥129018 |
|  Advances to affiliated companies |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AAA-BBB | ¥3980 | ¥1000 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥4980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BB-CCC |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CC-D |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  |  |  |  |
|  Total advances to affiliated companies | ¥3980 | ¥1000 | ¥— | ¥— | ¥— | ¥— | ¥— | ¥4980 |
|  Total | ¥1237004 | ¥312592 | ¥154458 | ¥226858 | ¥162128 | ¥38219 | ¥355119 | ¥2486378 |

---

------

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

(2) Includes loans of ¥60,598 million in relation to the U.S. Prime Brokerage Event.

------

##### [**Table of Contents**](#toc)
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 circumstances and economic conditions than those in higher-rated categories. Low probability of default but higher than that of 'AA range.' |
| BBB | Good credit quality category. An obligor or facility has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to meet its financial commitments. Medium probability of default but higher than that of 'A range.' |
| BB | Speculative credit quality category. An obligor or facility is less vulnerable in the near term than other lower-ratings. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the inadequate capacity to meet its financial commitments. Medium to high probability of default but higher than that of 'BBB range.' |
| B | Highly speculative credit quality category. An obligor or facility is more vulnerable than those rated 'BB range', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the issuer's or obligor's capacity or willingness to meet its financial commitments. High probability of default—more than that of 'BB range.' |
| CCC | Substantial credit risk. An obligor or facility is currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments. Strong probability of default – more than that of 'B range.' |
| CC | Default category. An obligor or facility is currently highly vulnerable to nonpayment. |
| C | Default category. An obligor or facility is currently extremely vulnerable to nonpayment. |
| D | Failure of an obligor to make payments in full and on time of any financial obligations, markedly disadvantageous modification to a contractual term compared with the existing obligation, bankruptcy filings, administration, receivership, liquidation or other winding-up or cessation of business of an obligor or other similar situations. |

---

Nomura reviews internal ratings at least once a year by using available credit information of obligors including financial statements and other information. Internal ratings are also reviewed more frequently for high-risk obligors or problematic exposures and any significant credit event of obligors will trigger an immediate credit review process.

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##### [**Table of Contents**](#toc)
**8. Leases:** 

**Nomura as lessor** 

Nomura leases office buildings and aircrafts in Japan and overseas either as head lessor or through subleases. These leases and subleases are primarily classified as operating leases. The related assets are stated at cost, net of accumulated depreciation, except for land, which is stated at cost in the consolidated balance sheets and reported within *Other assets—Office buildings, land, equipment and facilities.*

The following table presents the types of assets which Nomura leases under operating leases as of March 31, 2022 and December 31, 2022.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **March 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Cost** | **Accumulated**<br>**depreciation** | **Net carrying**<br>**amount** | **Cost** | **Accumulated**<br>**depreciation** | **Net carrying**<br>**amount** |
|  Real estate<sup>(1)</sup> | ¥354 | ¥(292) | ¥62 | ¥21 | ¥— | ¥21 |
|  Aircraft | 10373 | (688) | 9685 | 34943 | (314) | 34629 |
|  Total | ¥10727 | ¥(980) | ¥9747 | ¥34964 | ¥(314) | ¥34650 |

---

------

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

Nomura recognized lease income of ¥2,949 million and ¥1,022 million for the nine and three months ended December 31, 2021, respectively, and ¥951 million and ¥542 million for the nine and three months ended December 31, 2022, respectively. These are included in the consolidated statements of income within *Revenue—Other.*

The following table presents an analysis of future undiscounted lease payments to be received in connection with noncancellable operating leases entered into by Nomura as lessor over the remaining lease term as of December 31, 2022. Amounts in connection with finance leases were not significant.

---

| | |
|:---|:---|
| | **Millions of yen** |
| | **December 31, 2022** |
|  | **Minimum lease payments**<br>**to be received** |
|  **Years of receipt** |  |
|  Less than 1 year | ¥2746 |
|  1 to 2 years | 2746 |
|  2 to 3 years | 2746 |
|  3 to 4 years | 2746 |
|  4 to 5 years | 2746 |
|  More than 5 years | 20113 |
|  **Total**  | ¥33843 |

---

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##### [**Table of Contents**](#toc)
**9. Other assets—Other / Other liabilities:** 

The following table presents components of *Other assets—Other* and *Other liabilities* in the consolidated balance sheets as of March 31, 2022 and as of December 31, 2022.

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **March 31,**<br>**2022** | **December 31,**<br>**2022** |
|  Other assets—Other: |  |  |
|  Securities received as collateral | ¥166352 | ¥163431 |
|  Goodwill and other intangible assets | 30007 | 36109 |
|  Deferred tax assets | 15562 | 16468 |
|  Investments in equity securities for other than operating purposes<sup>(1)</sup> | 249448 | 237668 |
|  Deposit receivables<sup>(2)</sup> | 227777 | 271367 |
|  Prepaid expenses | 17165 | 19315 |
|  Other<sup>(2)</sup> | 67275 | 125394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥773586 | ¥869752 |
|  Other liabilities: |  |  |
|  Obligation to return securities received as collateral | ¥166352 | ¥163431 |
|  Accrued income taxes | 34158 | 23209 |
|  Other accrued expenses and provisions | 457511 | 483871 |
|  Operating lease liabilities<sup>(2)</sup> | 198131 | 188858 |
|  Other<sup>(2)</sup> | 164073 | 148037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥1020225 | ¥1007406 |

---

------

(1) Includes equity securities without a readily determinable fair value of ¥65,365 million as of
March 31, 2022 and as of December 31, 2022 respectively.

(2) Certain reclassifications of previously reported amounts have been made to conform to the current period
presentation.

------

##### [**Table of Contents**](#toc)
**10. Earnings per share:** 

A reconciliation of the amounts and the numbers used in the calculation of net income attributable to NHI shareholders per share (basic and diluted) is as follows:

---

| | | |
|:---|:---|:---|
|  | **Millions of yen**<br>**except per share data**<br>**presented in yen** | **Millions of yen**<br>**except per share data**<br>**presented in yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Basic— |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders | ¥112033 | ¥85411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average number of shares outstanding | 3077505526 | 3007925168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share | ¥36.40 | ¥28.40 |
|  Diluted— |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders | ¥111969 | ¥85278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average number of shares outstanding | 3169006957 | 3107855543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share | ¥35.33 | ¥27.44 |
|  | **Millions of yen**<br>**except per share data**<br>**presented in yen** | **Millions of yen**<br>**except per share data**<br>**presented in yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Basic— |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders | ¥60333 | ¥66944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average number of shares outstanding | 3068320903 | 3001497064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share | ¥19.66 | ¥22.30 |
|  Diluted— |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders | ¥60324 | ¥66922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average number of shares outstanding | 3162926476 | 3110816453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to NHI shareholders per share | ¥19.07 | ¥21.51 |

---

Net income attributable to NHI shareholders is adjusted to reflect the decline in Nomura's equity share of earnings of subsidiaries and affiliates for the nine and the three months ended December 31, 2021 and 2022, arising from options to purchase common shares issued by subsidiaries and affiliates.

The weighted average number of shares used in the calculation of diluted earnings per share ("EPS") reflects the increase in potential issuance of common shares arising from stock-based compensation plans issued by the Company and affiliates, which would have minimal impact on EPS for the nine and the three months ended December 31, 2021.

The weighted average number of shares used in the calculation of diluted EPS reflects the increase in potential issuance of common shares arising from stock-based compensation plans issued by the Company and affiliates, which would have minimal impact on EPS for the nine and the three months ended December 31, 2022.

Antidilutive stock options and other stock-based compensation plans to purchase 9,716,800 and 7,147,000 common shares were not included in the computation of diluted EPS for the nine and the three months ended December 31, 2021 and 2022, respectively.

------

##### [**Table of Contents**](#toc)
**11. Employee benefit plans:** 

Nomura provides various pension plans and other post-employment benefits which cover certain employees worldwide. In addition, Nomura provides health care benefits to certain active and retired employees through its Nomura Securities Health Insurance Society.

**Net periodic benefit cost** 

The net periodic benefit cost of the defined benefit plans of Japanese entities includes the following components.

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Service cost | ¥4839 | ¥4798 |
|  Interest cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1531 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1824 |
|  Expected return on plan assets | (4541) | (4477) |
|  Amortization of net actuarial losses | 2966 | 2864 |
|  Amortization of prior service cost | (1199) | (1205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net periodic benefit cost | ¥3596 | ¥3804 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Service cost | ¥1613 | ¥1599 |
|  Interest cost | 510 | 608 |
|  Expected return on plan assets | (1513) | (1493) |
|  Amortization of net actuarial losses | 988 | 955 |
|  Amortization of prior service cost | (399) | (402) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net periodic benefit cost | ¥1199 | ¥1267 |

---

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

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##### [**Table of Contents**](#toc)
**12. Income taxes:** 

For the nine months ended December 31, 2021, the difference between the effective statutory tax rate of 31% and the effective tax rate of 33.9% was mainly due to increase in non-deductible expenses, whereas non-taxable income decreased the effective tax rate.

For the three months ended December 31, 2021, the difference between the effective statutory tax rate of 31% and the effective tax rate of 23.1% was mainly due to decrease in valuation allowance of foreign subsidiaries, whereas non-deductible expenses increased the effective tax rate.

For the nine months ended December 31, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 34.5% was mainly due to increase in non-deductible expenses, whereas non-taxable income decreased the effective tax rate.

For the three months ended December 31, 2022, the difference between the effective statutory tax rate of 31% and the effective tax rate of 21.1% was mainly due to decrease in valuation allowance, whereas non-deductible expenses increased the effective tax rate.

------

##### [**Table of Contents**](#toc)
**13. Other comprehensive income (loss):** 

Changes in accumulated other comprehensive income (loss) are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** | **Nine months ended December 31, 2021** |
|  | **Balance at**<br>**beginning**<br>**of year** | **Other**<br>**comprehensive**<br>**income (loss)**<br>**before**<br>**reclassifications** | **Reclassifications out of**<br>**accumulated other**<br>**comprehensive**<br>**income (loss)<sup>(1)</sup>** | **Net change**<br>**during the**<br>**period** | **Balance at**<br>**end of period** |
|  Cumulative translation adjustments | ¥&nbsp;&nbsp;&nbsp;&nbsp;18316 | ¥43852 | ¥62 | ¥43914 | ¥&nbsp;&nbsp;&nbsp;&nbsp;62230 |
|  Pension liability adjustment | (43477) | (166) | 1238 | 1072 | (42405) |
|  Own credit adjustments | (12983) | 9892 | 1005 | 10897 | (2086) |
|  Total | ¥(38144) | ¥&nbsp;&nbsp;&nbsp;&nbsp;53578 | ¥2305 | ¥&nbsp;&nbsp;&nbsp;&nbsp;55883 | ¥17739 |

---

------

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** | **Nine months ended December 31, 2022** |
|  | **Balance at**<br>**beginning**<br>**of year** | **Other**<br>**comprehensive**<br>**income (loss)**<br>**before**<br>**reclassifications** | **Reclassifications out of**<br>**accumulated other**<br>**comprehensive**<br>**income (loss)<sup>(1)</sup>** | **Net change**<br>**during the**<br>**period** | **Balance at**<br>**end of period** |
|  Cumulative translation adjustments | ¥136912 | ¥103858 | ¥(927) | ¥102931 | ¥239843 |
|  Pension liability adjustment | (43803) | 169 | 1220 | 1389 | (42414) |
|  Own credit adjustments | 34864 | 57617 | 161 | 57778 | 92642 |
|  Total | ¥127973 | ¥161644 | ¥454 | ¥162098 | ¥290071 |

---

------

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** |
|  | **Balance at**<br>**beginning**<br>**of period** | **Other**<br>**comprehensive**<br>**income (loss)**<br>**before**<br>**reclassifications** | **Reclassifications out of**<br>**accumulated other**<br>**comprehensive**<br>**income (loss)<sup>(1)</sup>** | **Net change**<br>**during the**<br>**period** | **Balance at**<br>**end of period** |
|  Cumulative translation adjustments | ¥&nbsp;&nbsp;&nbsp;&nbsp;23645 | ¥38584 | ¥1 | ¥38585 | ¥&nbsp;&nbsp;&nbsp;&nbsp;62230 |
|  Pension liability adjustment | (42993) | 192 | &nbsp;&nbsp;&nbsp;&nbsp;396 | 588 | (42405) |
|  Own credit adjustments | (9158) | 6775 | 297 | 7072 | (2086) |
|  Total | ¥(28506) | ¥&nbsp;&nbsp;&nbsp;&nbsp;45551 | ¥694 | ¥&nbsp;&nbsp;&nbsp;&nbsp;46245 | ¥17739 |

---

------

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** |
|  | **Balance at**<br>**beginning**<br>**of period** | **Other**<br>**comprehensive**<br>**income (loss)**<br>**before**<br>**reclassifications** | **Reclassifications out of**<br>**accumulated other**<br>**comprehensive**<br>**income (loss)<sup>(1)</sup>** | **Net change**<br>**during the**<br>**period** | **Balance at**<br>**end of period** |
|  Cumulative translation adjustments | ¥347231 | ¥(106461) | ¥(927) | ¥(107388) | ¥239843 |
|  Pension liability adjustment | (42431) | (336) | &nbsp;&nbsp;&nbsp;&nbsp;353 | 17 | (42414) |
|  Own credit adjustments | 87690 | 5022 | (70) | 4952 | 92642 |
|  Total | ¥392490 | ¥(101775) | ¥(644) | ¥(102419) | ¥290071 |

---

------

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

------

##### [**Table of Contents**](#toc)
**14. Commitments, contingencies and guarantees:** 

**Commitments—** 

*Credit and investment commitments* 

In connection with its banking and financing activities, Nomura provides commitments to extend credit which generally have fixed expiration dates. In connection with its investment banking activities, Nomura enters into agreements with clients under which Nomura commits to underwrite securities that may be issued by the clients. As a member of certain central clearing counterparties, Nomura is committed to provide liquidity facilities through entering into reverse repo transactions backed by government and government agency debt securities with those counterparties in a situation where a default of another clearing member occurs. The outstanding commitments under these agreements are included below in commitments to extend credit.

Nomura has commitments to invest in various partnerships and other entities and also has commitments to provide financing for investments related to these partnerships. The outstanding commitments under these agreements are included below in commitments to invest.

The following table presents a summary of the key types of outstanding commitments provided by Nomura.

---

| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **December 31, 2022** |
|  Commitments to extend credit |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liquidity facilities to central clearing counterparties | ¥1135695 | ¥1532798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other commitments to extend credit | 877156 | 946138 |
|  Total | ¥2012851 | ¥2478936 |
|  Commitments to invest | ¥32286 | ¥43777 |

---

As of December 31, 2022, these commitments had the following maturities:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | | **Years to Maturity** | **Years to Maturity** | **Years to Maturity** | **Years to Maturity** |
|  |<br>**Total**<br>**contractual**<br>**amount** | **Less than**<br>**1 year** | **1 to 3**<br>**years** | **3 to 5**<br>**years** | **More than**<br>**5 years** |
|  Commitments to extend credit |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liquidity facilities to central clearing counterparties | ¥1532798 | ¥1532798 | ¥— | ¥— | ¥— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other commitments to extend credit | 946138 | 128372 | 291829 | 376631 | 149306 |
|  Total | ¥2478936 | ¥1661170 | ¥291829 | ¥376631 | ¥149306 |
|  Commitments to invest | ¥43777 | ¥20931 | ¥1290 | ¥5202 | ¥16354 |

---

The contractual amounts of these commitments to extend credit represent the amounts at risk but only if the contracts are fully drawn upon, should the counterparties default, and assuming the value of any existing collateral becomes worthless. The total contractual amount of these commitments may not represent future cash requirements since the commitments may expire without being drawn upon. The credit risk associated with these commitments varies depending on the clients' creditworthiness and the value of collateral held. Nomura evaluates each client's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by Nomura upon extension of credit, is based on credit evaluation of the counterparty.

**Contingencies—** 

*Investigations, lawsuits and other legal proceedings* 

In the normal course of business as a global financial services entity, Nomura is involved in investigations, lawsuits and other legal proceedings and, as a result, may suffer loss from any fines, penalties or damages awarded against Nomura, any settlements Nomura chooses to make to resolve a matter, and legal and other advisory costs incurred to support and formulate a defense.

The ability to predict the outcome of these actions and proceedings is inherently difficult, particularly where claimants 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 take place in foreign jurisdictions with complex or unclear laws.

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##### [**Table of Contents**](#toc)
The Company regularly evaluates each legal proceeding and claim on a case-by-case basis in consultation with external legal counsel to assess whether an estimate of possible loss or range of loss can be made, if recognition of a liability is not appropriate. In accordance with ASC 450 "*Contingencies*" ("ASC 450"), the Company recognizes a liability for this risk of loss arising on each individual matter when a loss is probable and the amount of such loss or range of loss can be reasonably estimated. The amount recognized as a liability is reviewed at least quarterly and is revised 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, no liability is recognized. However, where a material loss is reasonably possible, the Company will disclose details of the legal proceeding or claim below. Under ASC 450 an event is defined as reasonably possible if the chance of the loss to the Company is more than remote but less than probable. As of March 31, 2022 and December 31, 2022, the total liability of ¥76,866 million and ¥59,346 million have been recognized respectively, and reported within *Other liabilities* in respect of outstanding and unsettled investigations, lawsuits and other legal proceedings (excluding claims with no legal proceedings as of March 31, 2022 and December 31, 2022) where loss is considered probable and the loss can be reasonably estimated. Total expenses recognized through earnings for the nine months ended December 31, 2021 of the previous fiscal year were ¥39,488 million, which have been reported within *Non-interest expenses—Other*.

The most significant actions and proceedings against Nomura are summarized below. The Company believes that, based on current information available as of the date of these consolidated financial statements, the ultimate resolution of these actions and proceedings will not be material to 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 amount of 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 February 14, 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 ¥43 billion.

For certain other significant actions and proceedings, the Company is unable to provide an estimate of the reasonably 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 the claim are viable; (ii) damages have not been identified by the claimant; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant legal issues to be resolved that may 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.

In January 2008, Nomura International plc ("NIP") was served with a tax notice issued by the tax authorities in Pescara, Italy alleging breaches by NIP of the U.K.-Italy Double Taxation Treaty of 1998 ("Tax Notice"). The alleged breaches relate to payments to NIP of tax credits on dividends on Italian shares. The Tax Notice not only denies certain payments to which NIP claims to be entitled but also seeks reimbursement of approximately EUR 33.8 million, plus interest, already refunded. NIP has exhausted all avenues of appeal following a judgment of the Italian Supreme Court dismissing NIP's appeal in July 2021.

Similar claims have been made by the tax authorities against IBJ Nomura Financial Products (UK) PLC ("IBJN") a group company which has been in members' voluntary liquidation since 2000. An Italian Supreme Court judgment in June 2019 confirmed that tax credit refunds of approximately EUR 38 million, plus interest, were payable 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 the State of New York, but was subsequently removed to the United States Bankruptcy Court for the Southern District of New York. The second suit was brought by the Trustee for the liquidation of BLMIS ("Madoff Trustee"). NIP was added as a defendant in June 2012 when the Madoff Trustee filed an amended complaint in the United States Bankruptcy Court for the Southern District of New York. Both actions seek to recover approximately $34 million plus interest.

------

##### [**Table of Contents**](#toc)
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 the securitizations, 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, the loan-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 compliance with applicable laws. Certain of the RMBS issued by the subsidiaries were structured with credit protection provided to specified classes of certificates by monoline insurers.

With respect to certain of the RMBS issued from 2005 to 2007, the relevant subsidiaries received claims demanding the repurchase of certain loans from trustees of various securitization trusts, made at the instance of one or more investors, or from certificate insurers. The total original principal amount of loans for which repurchase claims were received by the relevant subsidiaries within six years of each securitization is $3,203 million. The relevant subsidiaries summarily rejected any demand for repurchase received after the expiration of the statute of limitations applicable to breach of representation claims. For those claims received within six years, the relevant subsidiaries reviewed each claim received, and rejected those claims believed to be without merit or agreed to repurchase certain loans for those claims that the relevant subsidiaries determined to have merit. In several instances, following the rejection of repurchase demands, investors instituted actions through the trustee alleging breach of contract from 2011 to 2014. The breach of contract claims that were brought within the six-year statute of limitations for breach of contract actions have survived motions to dismiss and discovery was completed and Notes of Issue were filed. The Company has been engaged in efforts to resolve the actions outside of Court and the Court is currently reviewing two settlement agreements for approval and another agreement is in the certificateholder voting process.

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 with respect to representations concerning specific loan characteristics and fraud in the inducement of the insurance 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 recover from 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 to enter into certain structured financial transactions with NIP in 2009 ("Transactions") and that NIP acted fraudulently and was jointly liable for the unlawful conduct of MPS's former directors. MPS claimed damages of not less than EUR 1.1 billion.

In March 2013, NIP commenced a claim against MPS in the English Courts. The claim was for declaratory relief confirming that the Transactions remained valid and contractually binding. MPS filed and served its defence and counterclaim to these proceedings in March 2014. MPS alleged in its counterclaim that NIP was liable to make restitution of a net amount of approximately EUR 1.5 billion, and sought declarations regarding the illegality and invalidity of the Transactions.

On September 23, 2015, NIP entered into a settlement agreement with MPS to terminate the Transactions. NIP believes that the Transactions 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 a settlement 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.

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##### [**Table of Contents**](#toc)
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 was seeking 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 the indictment 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 to bring damages claims against a number of entities and individuals, including NIP.

On November 8, 2019, the court delivered its oral verdict, finding two former employees of NIP guilty of false accounting, market manipulation and obstructing the supervisory activities of CONSOB and that NIP had breached Italian corporate liability legislation. In so doing, it imposed a fine of EUR 3.45 million on NIP as well as ordering confiscation of EUR 88 million. On May 12, 2020, the court issued the detailed reasoning for the verdict (including the rationale for the penalties imposed). NIP appealed the decision to the Milan Court of Appeal. On May 6, 2022, the Milan Court of Appeal delivered its oral verdict, overturning the first instance judgment and acquitting the two former employees of NIP of all charges. The court also overturned the first instance judgment in respect of NIP and quashed the EUR 3.45 million fine and EUR 88 million confiscation order imposed on NIP. The detailed reasoning for the verdict was made available on October 3, 2022. In November 2022, the Public Prosecutor appealed the decision to the Supreme Court.

In addition, NIP is involved in a number of separate civil or administrative matters relating to the Transactions including those described further below.

In January 2018, a claim before the Italian Courts brought by two claimants, Alken Fund Sicav (on behalf of two Luxembourg investment funds Alken Fund European Opportunities and Alken Fund Absolute Return Europe) and 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, the court 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 of approximately EUR 186.7 million plus interest, as well as non-monetary damages in an amount left to be quantified by the Judge.

Additionally, NIP was served by the Commissione Nazionale per le Società e la Borsa ("CONSOB", the Italian financial regulatory authority) with a notice commencing administrative sanction proceedings for market manipulation in connection with the Transactions. In relation to the Transactions, the notice named MPS, three individuals from MPS's former management and two former NIP employees as defendants, whereas NIP was named 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 two former NIP employees. In addition, CONSOB decided that the two employees did not meet the necessary Italian law integrity requirements to perform certain senior corporate functions, for a period of three months and six months respectively. NIP was vicariously liable to pay the fines imposed on its former employees. NIP paid the fines and appealed the decision to the Milan Court of Appeal. In December 2020, the Court of Appeal annulled the CONSOB decision against NIP. CONSOB has appealed the Court of Appeal's decision to the Italian Supreme Court.

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 syndicated term 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 to comply with its fiduciary duties to the lenders as the arranger of the loan and the Syndicate Banks sought to recover approximately $48 million in damages, plus interest. By judgment dated June 2, 2022, the Taipei District Court dismissed the Syndicate Banks' claims in entirety. On July 4, 2022, a Statement of Appeal was filed by 5 of the 6 Syndicate Banks (Cathay United Bank, Taiwan Cooperative Bank, Chang Hwa Commercial Bank, Taiwan Business Bank and Hwatai Bank, 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.

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##### [**Table of Contents**](#toc)
On May 20, 2021, NIP and the Company were named as addressees in a decision issued by the European Commission in which NIP, the Company and various other third party banks have been found to have infringed EU competition law in connection with their activity in the primary and secondary markets for European Government Bonds ("EGB"). The European Commission found that the infringement consisted of anticompetitive agreements and/or concerted practices in the EGB sector in breach of EU competition law and fined NIP and the Company approximately EUR 129.6 million. In August 2021, NIP and the Company appealed the decision. The fine has been provisionally paid, as is required, pending the outcome of NIP and the Company'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 in relation to the alleged manipulation of the primary and secondary markets for EGB. NSI has been dismissed from the 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 to approval 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, price manipulation 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 $50 million civil monetary penalties 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 $50 million civil monetary penalties and to comply with certain non-monetary undertakings ordered by the SEC.

The SEC and the United States Department of Justice ("DOJ") have been investigating past activities of several former employees of NSI in respect of commercial and residential mortgage-backed securities transactions. 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 in those investigations.

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 Bank of Taiwan (collectively, "FT Syndicate Banks"). The FT Syndicate Banks' complaint relates to a $100 million syndicated term loan facility to borrower FT that was arranged by NIHK, and made by the FT Syndicate Banks together with NSIS. The FT Syndicate Banks' allegations in the complaint include tort claims under Taiwan law against 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. If the investigation involving Nomura Group entities and former individuals proceeds to trial, the individuals could face criminal sanctions and Nomura Group entities could face administrative sanctions such as administrative fines or profit confiscation orders.

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##### [**Table of Contents**](#toc)
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 of a 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 events of default attributable to the counterparty, on February 8, 2022, two former pledgors served a formal notice stating 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.

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##### [**Table of Contents**](#toc)
**Guarantees—** 

In the normal course of business, Nomura enters into various guarantee arrangements with counterparties in the form of standby letters of credit and other guarantees, which generally have a fixed expiration date.

In addition, Nomura enters into certain derivative contracts that meet the accounting definition of a guarantee, namely derivative contracts that contingently require a guarantor to make payment to a guaranteed party based on changes in an underlying that relate to an asset, liability or equity security held by a guaranteed party. Since Nomura does not track whether its clients enter into these derivative contracts for speculative or hedging purposes, Nomura includes relevant information about these derivative contracts that could meet the accounting definition of guarantees in the disclosure below.

For information about the maximum potential amount of future payments that Nomura could be required to make under these derivative contracts, the notional amount of contracts has been disclosed, except for certain derivative contracts, such as written interest rate caps and written currency options, the maximum potential payout amount cannot be estimated, as increases in interest or foreign exchange rates in the future could be theoretically 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 certain of these contracts by entering into offsetting transactions or by entering into contracts that hedge the market risks related to these derivative contracts.

The following table presents information on Nomura's derivative contracts that could meet the accounting definition of a guarantee and standby letters of credit and other guarantees.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Carrying**<br>**value** | **Maximum**<br>**Potential**<br>**Payout/**<br>**Notional**<br>**Total** | **Carrying**<br>**value** | **Maximum**<br>**Potential**<br>**Payout/**<br>**Notional**<br>**Total** |
|  Derivative contracts<sup>(1)(2)</sup> | ¥6151646 | ¥393709887 | ¥10054208 | ¥489048462 |
|  Standby letters of credit and other guarantees<sup>(3)</sup> |  | 1698193 |  | 915648 |

---

------

(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 the guarantee.

The following table presents maturity information on Nomura's derivative contracts that could meet the accounting definition of a guarantee and standby letters of credit and other guarantees as of December 31, 2022.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Carrying**<br>**value** | **Maximum Potential Payout/Notional** | **Maximum Potential Payout/Notional** | **Maximum Potential Payout/Notional** | **Maximum Potential Payout/Notional** | **Maximum Potential Payout/Notional** |
|  | **Carrying**<br>**value** | **Total** | **Years to Maturity** | **Years to Maturity** | **Years to Maturity** | **Years to Maturity** |
|  | **Carrying**<br>**value** | **Total** | **Less than**<br>**1 year** | **1 to 3**<br>**years** | **3 to 5**<br>**years** | **More than**<br>**5 years** |
|  Derivative contracts | ¥10054208 | ¥489048462 | ¥105249292 | ¥161520871 | ¥73995007 | ¥148283292 |
|  Standby letters of credit and other guarantees |  | 915648 | 899888 | 7565 | 6674 | 1521 |

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##### [**Table of Contents**](#toc)
**15. Segment and geographic information:** 

**Operating segments—** 

Nomura's operating management and management reporting are prepared based on the Retail, the Investment Management, and the Wholesale segments. Nomura structures its business segments based upon the nature of its main products and services, its client base and its management structure.

The accounting policies for segment information follow U.S. GAAP, except for a part of the impact of unrealized gains/losses on certain investments in equity securities held for operating purposes, which under U.S. GAAP are included in *Income (loss) before income taxes,* but excluded from segment information.

Revenues and expenses directly associated with each business segment are included in the operating results of each respective segment. Revenues and expenses that are not directly attributable to a particular segment are allocated to each respective business segment or included in "*Other*", based upon Nomura's allocation methodologies as used by management to assess each segment's performance.

Business segments' results are shown in the following tables. *Net interest revenue* is disclosed because management views interest revenue net of interest expense for its operating decisions. Business segments' information on total assets is not disclosed because management does not utilize such information for its operating decisions and therefore, it is not reported to management.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Retail** | **Investment**<br>**Management** | **Wholesale<sup>(1)(2)</sup>** | **Other**<br>**(Incl. elimination)** | **Total** |
|  Nine months ended December 31, 2021 |  |  |  |  |  |
|  Non-interest revenue | ¥254863 | ¥119639 | ¥434512 | ¥157554 | ¥966568 |
|  Net interest revenue | 2665 | 18280 | 73643 | (42518) | 52070 |
|  Net revenue | 257528 | 137919 | 508155 | 115036 | 1018638 |
|  Non-interest expenses | 203487 | 57626 | 470709 | 114184 | 846006 |
|  Income before income taxes | ¥54041 | ¥80293 | ¥37446 | ¥852 | ¥172632 |
|  Nine months ended December 31, 2022 |  |  |  |  |  |
|  Non-interest revenue | ¥222846 | ¥93752 | ¥610815 | ¥134780 | ¥1062193 |
|  Net interest revenue | 2039 | (3037) | (17272) | (7922) | (26192) |
|  Net revenue | 224885 | 90715 | 593543 | 126858 | 1036001 |
|  Non-interest expenses | 201221 | 63574 | 549936 | 69130 | 883861 |
|  Income before income taxes | ¥23664 | ¥27141 | ¥43607 | ¥57728 | ¥152140 |
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Retail** | **Investment**<br>**Management** | **Wholesale<sup>(2)</sup>** | **Other**<br>**(Incl. elimination)** | **Total** |
|  Three months ended December 31, 2021 |  |  |  |  |  |
|  Non-interest revenue | ¥86388 | ¥21695 | ¥178555 | ¥35249 | ¥321887 |
|  Net interest revenue | 963 | 18413 | 24154 | (13681) | 29849 |
|  Net revenue | 87351 | 40108 | 202709 | 21568 | 351736 |
|  Non-interest expenses | 69316 | 19757 | 161875 | 19917 | 270865 |
|  Income before income taxes | ¥18035 | ¥20351 | ¥40834 | ¥1651 | ¥80871 |
|  Three months ended December 31, 2022 |  |  |  |  |  |
|  Non-interest revenue | ¥80243 | ¥58386 | ¥204233 | ¥76789 | ¥419651 |
|  Net interest revenue | 776 | (1421) | (15176) | 10521 | (5300) |
|  Net revenue | 81019 | 56965 | 189057 | 87310 | 414351 |
|  Non-interest expenses | 67756 | 23663 | 190911 | 27762 | 310092 |
|  Income (loss) before income taxes | ¥13263 | ¥33302 | ¥(1854) | ¥59548 | ¥104259 |

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##### [**Table of Contents**](#toc)

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(1) *Non-interest revenue* and *Non-interest expense* for the nine months ended December 31, 2021 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.

(2) *Non-interest revenue* and *Non-interest expense* for the nine months and three months ended December 31, 2022 include gains of ¥11,051 million, as the recoverable amount for a part of the claim related to the loss
arising from the U.S. Prime Brokerage Event can be reasonably estimated. The gains are reported within *Net gain on trading* in the amount of ¥9,141 million and in *Non-interest expenses—Other* in the amount of ¥(1,910) million in the consolidated statements of income.

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##### [**Table of Contents**](#toc)
Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in "*Other.*"

The following table presents the major components of *Income before income taxes* in "*Other*."

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Net gain (loss) related to economic hedging transactions | ¥(1509) | ¥(11164) |
|  Realized gain on investments in equity securities held for operating purposes | 215 | 22190 |
|  Equity in earnings of affiliates | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20554 | 35000 |
|  Corporate items<sup>(1)</sup> | (56645) | (4798) |
|  Other<sup>(2)(3)(4)</sup> | 38237 | 16500 |
|  Total | ¥852 | ¥57728 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Net gain (loss) related to economic hedging transactions | ¥(1128) | ¥(1455) |
|  Realized gain on investments in equity securities held for operating purposes | 19 | 21895 |
|  Equity in earnings of affiliates | 5366 | 8893 |
|  Corporate items | (1807) | (3323) |
|  Other<sup>(3)(4)</sup> | (799) | 33538 |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1651 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59548 |

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(1) The loss before income taxes for the nine months ended December 31, 2021 includes losses of approximately
¥40 billion related to legacy transactions.

(2) The income before income taxes for the nine months ended December 31, 2021 includes a gain of
¥36,249 million from the sale of Nomura Research Institute, Ltd. ordinary shares.

(3) The income before income taxes for the nine and three months ended December 31, 2022 includes a gain of
¥28 billion from the sale of Nomura Research Institute, Ltd. ordinary shares.

(4) Includes the impact of Nomura's own creditworthiness.

The table below presents reconciliations of the combined business segments' results included in the preceding table to Nomura's reported *Net revenue, Non-interest expenses* and *Income before income taxes* in the consolidated statements of income.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Net revenue | ¥&nbsp;&nbsp;&nbsp;&nbsp;1018638 | ¥1036001 |
|  Unrealized gain (loss) on investments in equity securities held for operating purposes<sup>(1)</sup> | 4468 | (25357) |
|  Consolidated net revenue | ¥1023106 | ¥1010644 |
|  Non-interest expenses | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;846006 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;883861 |
|  Unrealized gain (loss) on investments in equity securities held for operating purposes |  |  |
|  Consolidated non-interest expenses | ¥846006 | ¥883861 |
|  Income before income taxes | ¥172632 | ¥152140 |
|  Unrealized gain (loss) on investments in equity securities held for operating purposes<sup>(1)</sup> | 4468 | (25357) |
|  Consolidated income before income taxes | ¥177100 | ¥126783 |

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##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Net revenue | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;351736 | ¥414351 |
|  Unrealized gain (loss) on investments in equity securities held for operating purposes<sup>(1)</sup> | (771) | (20693) |
|  Consolidated net revenue | ¥350965 | ¥393658 |
|  Non-interest expenses | ¥270865 | ¥&nbsp;&nbsp;&nbsp;&nbsp;310092 |
|  Unrealized gain (loss) on investments in equity securities held for operating purposes |  |  |
|  Consolidated non-interest expenses | ¥270865 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;310092 |
|  Income before income taxes | ¥80871 | ¥104259 |
|  Unrealized gain (loss) on investments in equity securities held for operating purposes<sup>(1)</sup> | (771) | (20693) |
|  Consolidated income before income taxes | ¥80100 | ¥83566 |

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(1) Includes a reversal of unrealized gain (loss) on investments in equity securities held for operating purposes
that were sold in nine and three months ended December 31, 2021 and 2022.

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##### [**Table of Contents**](#toc)
**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, have been made in presenting the following geographic data.

The table below presents a geographic allocation of *Net revenue* and *Income (loss) before income taxes* from operations by geographic areas, and *long-lived assets* associated with Nomura's operations. Net revenue in "Americas" and "Europe" substantially represents Nomura's operations in the U.S. and the U.K., respectively. *Net revenue* and *Long-lived assets* have been allocated based on transactions with external customers while *Income (loss) before income taxes* have been allocated based on the inclusion of intersegment transactions.

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| | | |
|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** |
|  | **Nine months ended December 31** | **Nine months ended December 31** |
|  | **2021** | **2022** |
|  Net revenue<sup>(1)(2)(3)</sup>: |  |  |
|  Americas | ¥222242 | ¥204438 |
|  Europe | 96594 | 111166 |
|  Asia and Oceania | 64889 | 52511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 383725 | 368115 |
|  Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;639381 | 642529 |
|  Consolidated | ¥&nbsp;&nbsp;&nbsp;&nbsp;1023106 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1010644 |
|  Income (loss) before income taxes<sup>(2)(3)</sup>: |  |  |
|  Americas | ¥(21598) | ¥(35098) |
|  Europe | (17545) | 12831 |
|  Asia and Oceania | 24691 | 22263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | (14452) | (4) |
|  Japan | 191552 | 126787 |
|  Consolidated | ¥177100 | ¥126783 |
|  | **Millions of yen** | **Millions of yen** |
|  | **Three months ended December 31** | **Three months ended December 31** |
|  | **2021** | **2022** |
|  Net revenue<sup>(1)(3)</sup>: |  |  |
|  Americas | ¥99336 | ¥85299 |
|  Europe | 29597 | 47102 |
|  Asia and Oceania | 21014 | 10854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 149947 | 143255 |
|  Japan | 201018 | 250403 |
|  Consolidated | ¥350965 | ¥393658 |
|  Income (loss) before income taxes<sup>(3)</sup>: |  |  |
|  Americas | ¥32226 | ¥7913 |
|  Europe | (3395) | 8326 |
|  Asia and Oceania | 10967 | (1654) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 39798 | 14585 |
|  Japan | 40302 | 68981 |
|  Consolidated | ¥80100 | ¥83566 |

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##### [**Table of Contents**](#toc)

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(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 for nine months ended December 31, 2021.

(3) Includes gains from the estimated recoverable amounts for a part of the claim related to the loss arising from
the U.S. Prime Brokerage Event for nine months and for three months ended December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **March 31, 2022** | **March 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  Long-lived assets: |  |  |  |  |
|  Americas | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103,045 | ¥ | 115335 |
|  Europe |  | 53643 |  | 52552 |
|  Asia and Oceania |  | 23600 |  | 20802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal |  | 180288 |  | 188689 |
|  Japan |  | 269135 |  | 293316 |
|  Consolidated | ¥ | 449423 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;482,005 |

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**2. Other** 

On November 2, 2022, the Board of Directors resolved to pay the dividend based on the record date of September 30, 2022 to shareholders registered as of September 30, 2022.

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| | |
|:---|:---|
| a. Total dividend based on the record date of September 30, 2022 | ¥15,008 million |
| b. Dividend based on the record date of September 30, 2022 per share | ¥5 |

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##### [**Table of Contents**](#toc)
**[Translation]** 

**Quarterly Review Report of Independent Auditor** 

February 14, 2023

The Board of Directors

Nomura Holdings, Inc.

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| |
|:---|
|  Ernst & Young ShinNihon LLC |
|  Tokyo office, Japan |
|  Hiroki Matsumura |
|  Certified Public Accountant |
|  Designated and Engagement Partner |
|  Hisashi Yuhara |
|  Certified Public Accountant |
|  Designated and Engagement Partner |
|  Shinichi Hayashi |
|  Certified Public Accountant |
|  Designated and Engagement Partner |
|  Toshiro Kuwata |
|  Certified Public Accountant |
|  Designated and Engagement Partner |

---

*Auditor's Conclusion* 

We have performed a quarterly review of the quarterly consolidated financial statements of Nomura Holdings, Inc. (the "Company") included in Financial Information section for the three-month and nine-month periods ended December 31, 2022 within the fiscal period from April 1, 2022 to March 31, 2023, which comprise the quarterly consolidated balance sheet, the quarterly consolidated statements of income, comprehensive income, changes in equity and cash flows, and the related notes, pursuant to the requirement of the rule specified in Article 193-2, Section 1 of the Financial Instruments and Exchange Act.

Based on our quarterly review, nothing has come to our attention that causes us to believe that the quarterly consolidated financial statements referred to above do not present fairly, in all material respects, the consolidated financial position of the Company and its consolidated subsidiaries (the "Group") as of December 31, 2022, and the consolidated results of their operations for the three-month and nine-month periods then ended and cash flows for the nine-month period then ended in conformity with accounting principles generally accepted in the United States of America pursuant to Article 95 of "Regulations Concerning the Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements" (see Note 1 to the quarterly consolidated financial statements).

*Basis for Auditor's Conclusion* 

We conducted our quarterly review in accordance with quarterly review standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Quarterly Review of the Quarterly Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that we have obtained the evidence to provide a basis for our conclusion.

*Responsibilities of Management and the Audit Committee for the Quarterly Consolidated Financial Statements* 

Management is responsible for the preparation and fair presentation of the quarterly consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (see Note 1 to the quarterly consolidated financial statements), and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the quarterly consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern and disclosing, as required by accounting principles generally accepted in the United States of America (see Note 1 to the quarterly consolidated financial statements), matters related to going concern.

The Audit Committee is responsible for overseeing the Group's financial reporting process.

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##### [**Table of Contents**](#toc)
*Auditor's Responsibilities for the Quarterly Review of the Quarterly Consolidated Financial Statements* 

Our responsibility is to independently express a conclusion on the quarterly consolidated financial statements in the quarterly review report based on our quarterly review. As part of a quarterly review in accordance with quarterly review standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the quarterly review. We also:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conclude on whether nothing has come to our attention that causes us to believe that the quarterly consolidated
financial statements do not present fairly in conformity with accounting principles generally accepted in the United States of America (see Note 1 to the quarterly consolidated financial statements) based on the evidence obtained if we conclude that
a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
quarterly review report to the related disclosures in the quarterly consolidated financial statements or, if such disclosures are inadequate, to express a qualified conclusion or an adverse conclusion. Our conclusions are based on the evidence
obtained up to the date of our quarterly review report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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

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

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the quarterly review and significant quarterly review findings.

We also provide the Audit Committee with a statement that we have complied with the ethical requirements regarding independence that are relevant to our audit of the consolidated financial statements in Japan, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

*Conflicts of Interest* 

We have no interest in the Group which should be disclosed in accordance with the Certified Public Accountants Act.

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\*1. The Company maintains the original of the Quarterly Review Report of Independent Auditor above.

\*2. XBRL data is not included in the scope of the quarterly review.

(Note)

This is an English translation of the Japanese language Quarterly Review Report of Independent Auditor issued by Ernst & Young ShinNihon LLC in connection with the limited procedures applied on the quarterly consolidated financial statements of Nomura Holdings, Inc., prepared in Japanese, for the three-month and nine-month periods ended December 31, 2022 within the fiscal period from April 1, 2022 to March 31, 2023. Ernst & Young ShinNihon LLC have not applied any such procedures nor have they performed an audit on the English language version of the quarterly consolidated financial statements for the above-mentioned period which are included in this report on Form 6-K.

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##### [**Table of Contents**](#toc)
**Exhibit 2** 

**Confirmation Letter** 

**1 [Appropriateness of Quarterly Securities Report]** 

Kentaro Okuda, Group Chief Executive Officer, and Takumi Kitamura, Chief Financial Officer, have confirmed that the quarterly securities report of Nomura Holdings, Inc. for the three months ended December 31, 2022 is appropriate under the Financial Instruments and Exchange Act.

**2 [Special Comments]** 

There is no special comment to be stated.