Gaap for Non Profits Statements

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					   Consolidated Financial Statements
   under US GAAP


   Nomura Holdings, Inc.
   December 2001

                                                              1




This is a summary of the presentation on Consolidated Financial
Statements under US GAAP.
 Date:       December 14, 2001 (Friday)
 Place:      Nihonbashi Headquaters of Nomura Securities Co., Ltd.
 Speaker:    Akira Maruyama, General Manager of Finance Dept.
    Outline of the Presentation
       n    NYSE Listing and US GAAP Financials                                                                      n         Segment Information

             Ø       NYSE Listing                                                                              4                   Ø        Year ended March 31, 2000                                              17
             Ø       Year ended March 31, 2000                                                                 5                   Ø        Year ended March 31, 2001                                              18
             Ø       Year ended March 31, 2001                                                                 6
             Ø       Major Differences between US GAAP and
                     Japanese GAAP (P/L)                                                                       7
             Ø       Major Differences between US GAAP and                                                           n         Appendix                                                                             19
                     Japanese GAAP (B/S)                                                                       9




       n    Investments in Equity Securities and Principal
            Finance Group

             Ø        Investments in Equity Securities                                                         12
             Ø        PFG Business Overview                                                                    13
             Ø        PFG Major Investments                                                                    14
             Ø        Potential Restructuring of PFG Business                                                  15


       1.   Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by Nomura or any affiliate thereof.
            Offers to sell, sales, solicitations to buy, or purchases of anysecurities issued by Nomura or any affiliate thereof may only b e made or entered into pursuant to appropriate offering materials or a prospectus
            prepared and distributed according to the laws, regulations, rul es and market practices of the jurisdictions in which such offers or sales may be made.
       2.   No part of this document shall be reproduced, stored in a retrie val system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without theprior written
            permission of Nomura.
       3.   The information and opinions contained in this document have bee n obtained from sources believed to be reliable, but no represen tations or warranty, express or implied, are made that such info rmation is
            accurate or complete and no responsibility or liability can be a ccepted by Nomura for errors or omissions or for any losses arising from the use of this information.
       4.   This document contains statements that may constitute, and from time to time our management may make "forward -looking statements" within the meaning of the safe harbor provisions of The Private
            Securities Litigation Reform Act of 1995. Any such statements must be read in the context of the offering materials pursuant to which any securities may be offered or sold in the United States. These forward -
                                                                                                                                             ir
            looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by the nature, are inherently uncertain and outside our control. Imp ortant factors that
            could cause actual results to differ from those in specific forward -looking statements include, without limitation, economic and market conditions, political events and investor sentiments, liquidity of secondary
                                                                            ge
            markets, level and volatility of interest rates, currency exchan rates, security valuations, competitive conditions and size, and the number and timing of transactions.




                                                                                                                                                                                                                                    2



1. Nothing in this document shall be considered as an offer to sell or solicitation of
   an offer to buy any security, commodity or other instrument, including securities
   issued by Nomura or any affiliate thereof. Offers to sell, sales, solicitations to
   buy, or purchases of any securities issued by Nomura or any affiliate thereof
   may only be made or entered into pursuant to appropriate offering materials or
   a prospectus prepared and distributed according to the laws, regulations, rules
   and market practices of the jurisdictions in which such offers or sales may be
   made.
2. No part of this document shall be reproduced, stored in a retrieval system or
   transmitted in any form or by any means, electronic, mechanical, photocopying,
   recording or otherwise, without the prior written permission of Nomura.
3. The information and opinions contained in this document have been obtained
   from sources believed to be reliable, but no representations or warranty,
   express or implied, are made that such information is accurate or complete and
   no responsibility or liability can be accepted by Nomura for errors or omissions
   or for any losses arising from the use of this information.
4. This document contains statements that may constitute, and from time to time
   our management may make, "forward-looking statements" within the meaning
   of the safe harbor provisions of The Private Securities Litigation Reform Act of
   1995. Any such statements must be read in the context of the offering materials
   pursuant to which any securities may be offered or sold in the United States.
   These forward-looking statements are not historical facts but instead represent
   only our belief regarding future events, many of which, by their nature, are
   inherently uncertain and outside our control. Important factors that could cause
   actual results to differ from those in specific forward-looking statements include,
   without limitation, economic and market conditions, political events and investor
   sentiments, liquidity of secondary markets, level and volatility of interest rates,
   currency exchange rates, security valuations, competitive conditions and size,
   and the number and timing of transactions.
NYSE Listing and US GAAP Financials




                                      3
     NYSE Listing
     n Purposes
         Ø To clearly demonstrate in Japan and overseas that our goal is to become a globally
           competitive Japanese financial services group
         Ø To enhance information disclosure conforming to the spirit of fair disclosure
         Ø To expand our strategic options
         Ø To strengthen corporate governance


     n Schedule
         Ø December 13, 2001          Official Filing of Registration Statement with SEC
         Ø December 17, 2001          Listing on NYSE


     n ADR
         Ø Form             American Depositary Share (ADS) represented             N M R
                                                                                    N M R
                             by American Depositary Receipt (ADR
         Ø Code             NMR
         Ø Conversion
             Rate           1:1 (1 ADS     1 Share)


                                                                                                4




NYSE Listing and US GAAP Financial (1)
NYSE listing.


The main purposes of the listing are:
1.   To clearly demonstrate in Japan and overseas that our goal is to become a
globally competitive Japanese financial services group
2.   To enhance information disclosure conforming to the spirit of fair disclosure
3.   To expand our strategic options
4.   To strengthen corporate governance


As for the schedule,
1.  On December 13, 2001, we officially filed our statement of registration with
SEC
2.   On December 17, 2001, our shares will be listed on the New York Stock
Exchange in the form of American Depositary Shares represented by American
Depositary Receipts (ADR)
     Year ended March 31, 2000

      n Operating Results                          US GAAP               Japanese GAAP
          Ø Net Revenue*                          1,062.7 billion yen     815.9 billion yen
          Ø Income before Income Taxes              372.2 billion yen     265.2 billion yen
          Ø Net Income                              203.5 billion yen     146.3 billion yen


      n Balance Sheet
          Ø Total Assets                          14,610.9 billion yen    18,821.9 billion yen
          Ø Total Liabilities                     13,199.9 billion yen    17,401.5 billion yen
          Ø Shareholders’ Equity                   1,411.0 billion yen     1,420.4 billion yen
          Ø Leverage**                                 10.4 times          13.3 times


      n ROE***                                          15.3%                10.7

        *  Net Revenue: Total revenue – Interest expense
        ** Leverage: Total assets divided by shareholders’ equity
                                                                                                 5
        *** ROE: Net income divided by average shareholders’ equity




NYSE Listing and US GAAP Financial (2)
US GAAP and Japanese GAAP for the year ended March 31, 2000

Under US GAAP:
1.    Net revenue is 1,062.7 billion yen
2.    Income before income taxes                             is 372.2 billion yen, and
3.    Net income is 203.5 billion yen


On the other hand, net income under Japanese GAAP was 146.3 billion yen, much
lower than net income under US GAAP.


As for balance sheet data as of March 31, 2000:
1.   Total assets stood at 14,610.9 billion yen
2.   Total liabilities were 13,199.9 billion yen
3.    Shareholders’ equity was 1,411.0 billion yen


As a result, the financial leverage is 10.4 times and ROE is 15.3%.
As for the balance sheet items, the figures under US GAAP are smaller.
     Year ended March 31, 2001

      n Operating Results                            US GAAP             Japanese GAAP
          Ø Net Revenue*                            915.7 billion yen     884.2 billion yen
          Ø Income before Income Taxes              156.2 billion yen     320.5 billion yen
          Ø Net Income                                57.4 billion yen    181.7 billion yen


      n Balance Sheet
          Ø Total Assets                           17,146.0 billion yen 20,529.1 billion yen
          Ø Total Liabilities                      15,709.6 billion yen 18,886.7 billion yen
          Ø Shareholders’ Equity                   1,436.4 billion yen    1,642.4 billion yen
          Ø Leverage**                                 11.9 times          12.5 times


      n ROE***                                        4.0%                11.9

        *  Net Revenue: Total revenue – Interest expense
        ** Leverage: Total assets divided by shareholders’ equity
        *** ROE: Net income divided by average shareholders’ equity                             6




NYSE Listing and US GAAP Financial (3)
US GAAP and Japanese GAAP for the year ended March 31, 2001


Under US GAAP,
1.    Net revenue was 915.7 billion yen
2.    Income before income taxes was 156.2 billion yen, and
3.    Net income was 57.4 billion yen, which is lower than under Japanese GAAP.


As for balance sheet data as of March 31, 2001:
1.   Total assets were 17,146.0 billion yen
2.   Total liabilities stood at 15,709.6 billion yen
3.    Shareholders’ equity was 1,436.4 billion yen


As a result, the financial leverage is 11.9 times and ROE is 4.0%.
      Major Differences between US GAAP and Japanese GAAP (P/L)
      n Valuation of Equity Investments
           Ø Valuation of investments in equity securities and non-trading debt securities
                •   Japanese GAAP: Unrealized gains/losses are recognized directly in shareholders’ equity ,
                    US GAAP: Unrealized gains/losses are recognized in current income
      n Principal Finance Group (“PFG”)
           Ø Treatment
                •   Japanese GAAP: Venture capital accounting
                    US GAAP: Consolidated (i.e. like a subsidiary)
           Ø Recognition of P&L
                •   Japanese GAAP:Gain on disposal & realization of surplus, non rec ourse cash after refinancing
                    US GAAP: Gain on disposal & annual net income/ loss of each entity (based also on US GAAP)

      n Others
           Ø Business combination / Investments in affiliates
                •   Amortization period of negative goodwill (Nomura Asset Management)
                    Amount of goodwill amortization
                     Fiscal year ended March 31, 2001
                      Japanese GAAP: 25.7 billion yen
                      US GAAP: 13.0 billion yen
                •   Difference in the realized gain/loss of investment securities
                •   Affiliates Japanese GAAP:Recognize equity earnings after the investees become affiliates
                               US GAAP: Retroactive application of equity method)
           Ø Others

                                                                                                                    7




NYSE Listing and US GAAP Financial (4)

There are many differences between US and Japanese GAAP, among which the important
ones are:
1.   Valuation methods for equity investments, and
2.   Accounting treatment of principal finance business, or PFG business

Valuation methods for equity investments
Under US GAAP, broker dealers recognize equity investments at fair value and unrealized
profits/losses of investments in equity securities and non-trading debt securities currently in
income. On the other hand, under Japanese GAAP, such unrealized profits/losses, net of
taxes, are recorded directly in shareholders’ equity and are not recognized currently in
income.
Accounting treatment for our PFG activities.
Our management views PFG activities as private equity investments. Under Japanese
GAAP, which follows UK GAAP, PFG activities are treated as venture capital and profit/loss
                                                                   e
is recognized on a transaction basis, e.g., on disposal or the r alization of surplus, non-
recourse cash received back by Nomura, following third party refinancing of the PFG entity.
On the other hand, under US GAAP we record PFG entities as consolidated subsidiaries
because of our controlling financial interest. As a result, under US GAAP we recognize the
revenue and expenses of PFG entities in our consolidated financial statements. We
recognize gain/loss of investments when we dispose of the entity.
As such, there is a timing difference between US and Japanese GAAP with respect to the
recognition of profit/loss for our PFG activities.
Shareholders’ equity is affected partly by the cumulative effect of the timing difference I just
explained and also because under US GAAP, the property assets of PFG entities are
recorded at a lower level than would be the case under Japanese and UK GAAP.

Other factors affecting the profit/loss include differences in:
1.    Amortization periods of negative goodwill relating to Nomura Asset Management.
2.        Realized gain/loss of certain investment securities, such as Kokusai Securities ’s
shares, which we sold to Tokyo-Mitsubishi Bank.
3.    Accounting treatment of affiliated companies.
Under Japanese GAAP, the amortization period of negative goodwill relating to the
acquisition of Nomura Asset Management is 3 years while under US GAAP the period is 10
years.
As for the accounting treatment of affiliated companies, under Japanese GAAP we apply
equity earnings at acquisition, while under US GAAP we apply the equity method
retroactively.
       Major Differences between US GAAP and Japanese GAAP (P/L)
                                 (for the year ended March 31, 2001)                       (Billions of yen)

               Income before Income Taxes                         Shareholders’ Equity

    Japanese                                           Japanese
      GAAP                                               GAAP
      320.5                                             1,642.4
                                                                                                    US
                                                                           (1)                     GAAP
                  (1)
                                                                                     (2)          1,436.4
                                                US                       -121.8
                - 91.7     (2)                 GAAP                               -84.2
                                   (3)         156.2
                         -20.0
                                 -52.6




         (1)    Valuation of investments in                        (1)      PFG
                 equity and other securities
                                                                   (2)      Others
         (2)    PFG
                                                                                                            8
         (3)    Others




NYSE Listing and US GAAP Financial (5)


This slide explains the differences in income before income taxes and shareholders’
equity between US and Japanese GAAP using the figures for the year ended March 31,
2001.
The green bar on the left shows the Japanese GAAP figure, the blue bar on the right the
US GAAP figure and the yellow bars the differences between the two.
For the year ended March 31, 2001, the value of equity investments declined largely
due to a decline in the Japanese stock market, resulting in large unrealized losses of
91.7 billion yen.
                                                                       o
Under US GAAP for broker dealers, we recognize such unrealized l sses currently in
income, while under Japanese GAAP, such unrealized losses are not currently
recognized in income. As for shareholders’ equity, both US and Japanese GAAP
recognize such unrealized losses, net of tax, in shareholders’ equity.
The impact of the consolidation of PFG entities under US GAAP is twofold.
One is that surplus, non-recourse cash, received by Nomura from PFG entities, which is
recognized under Japanese GAAP, has to be eliminated on consolidation and no profit
can be recognized. The other is that the net revenue of PFG entities is included under
US GAAP.
As a result, income before income taxes under US GAAP is 20 billion yen less than
under Japanese GAAP.
In addition, there are differences in the realized gain/loss of certain investment
securities. This impact is included in “Others” in the graph. We sold shares in Kokusai
Securities in November 2000. Because of the difference in carrying value of Kokusai
Securities’s shares between US and Japanese GAAP, there is a difference of 4          7.3
billion yen in realized gain/loss on sale of Kokusai Securities’s shares. Under Japanese
GAAP, we recognized a realized gain of 35.9 billion yen, while under US GAAP we
recognized a realized loss of 11.4 billion yen.
     Major Differences between US GAAP and Japanese GAAP (B/S)

     n Principal Finance Group
         Ø Japanese GAAP: Treated as venture capital
           US GAAP: Consolidation of all assets and liabilities of each entity which we have invested.

     n Others
         Ø Securities Financing Transactions
             • Securities borrowed, securities received as collateral
                 Japanese GAAP: On-balance when received
                 US GAAP: Off-balance when received
             • Gensaki transactions
                 Japanese GAAP: Recorded as financing transactions
                 US GAAP: Recorded as sale transactions

         Ø Others
             • Business combination / Equity methods
             • Appropriations of retained earnings Japanese GAAP:the period when they are
               approved at the shareholders’ meeting. US GAAP:The period to which they relate.




                                                                                                         9




NYSE Listing and US GAAP Financial (6)

The differences between US and Japanese GAAP regarding assets and liabilities
are explained in this slide.
There are many differences between US and Japanese GAAP, among which the
important ones are:
1.    Accounting treatment of PFG business, which I have explained, and
2.    Accounting treatment of securities financing transactions

As for PFG business, under Japanese GAAP we only include management
estimates of fair value for investments in PFG assets, while under US GAAP assets
and liabilities of PFG entities are included in our consolidated balance sheet. Please
note that the additional debt recorded is all non-recourse to Nomura.
As for securities financing transactions, under Japanese GAAP, “Securities
borrowed, Securities received as collateral” are on-balance items, while under US
GAAP they are off-balance items. From September 2001, they become off-balance
items also under Japanese GAAP.
Under Japanese GAAP, Gensaki transactions are recognized as financing
transactions, while under US GAAP they are recorded as sale transactions.
There are other factors affecting the balance sheet, such as differences in business
combination / equity methods, and recognition of appropriations of retained
earnings.
Under Japanese GAAP, appropriations of retained earnings are recognized during
the period in which they are approved at the shareholders’ meeting. Under US
GAAP, they are recognized in the period to which they relate.
       Major Differences between US GAAP and Japanese GAAP (B/S)
                                 (for the year ended March 31, 2001)                           (Billions of yen)

   Japanese           Total Assets                                    Total Liabilities
     GAAP
    20,529.1                                            Japanese
                                                          GAAP
                        (1)                     US
                                                         18,886.7                                      US
                                 (2)          GAAP                           (1)
                       835.9                                                                         GAAP
                                             17,146.0                                 (2)
                                                                            869.2                   15,709.6
                               -4,219.0
                                                                                    -4,046.3




                                                                    (1)   PFG’s non-recourse
               (1)   PFG’s tangible assets                                loans and bonds
               (2)   Others                                         (2)   Others
                                                                                                            10




NYSE Listing and US GAAP Financial (7)


The differences between US and Japanese GAAP regarding assets and liabilities
are explained in this slide, using the figures as of March 31, 2001.
The green bar on the left shows the Japanese GAAP figure, the blue bar on the
right the US GAAP figure and the yellow and red bars the difference between the
two.
Under the US GAAP, assets and liabilities of PFG entities, such as tangible assets
and borrowings (mainly subordinated loans), are recognized and amounted to 835.9
billion yen and 869.2 billion yen, respectively.
As for securities financing transactions, under Japanese GAAP, we recognize
4,066.6 billion yen in securities on our balance sheet, which is not recognized under
US GAAP.


For more detail, please see the appendix from page 19.
Investments in Equity Securities and
PFG




                                       11
    Investments in Equity Securities
     n Reduction of Investments in Equity Securities
                          Purchase Value and Market Value of Investments in Equity Securities
    (Billions of yen)
         600
                                                                     Purchase Value(Nomura Asset Management)
                                                                     Purchase Value(Other than Nomura Asset Management)
                                                                     Market Value
         500


         400


         300


         200


         100


            0
                     Mar-97              Mar-98              Mar-99                 Mar-00    Mar-01          Sep-01
                 * Purchase Value: Up to March 2000 - Lower cost or market method
                                   From March 2001 - Cost less impairment losse
                                                                                                                          12




Investments in Equity Securities and PFG (1)


This slide explains two important items affecting our financial statements under US
GAAP, namely, investment in equity securities and our PFG business.
We have been holding a large amount of investments in equity securities in
unaffiliated companies in accordance with customary practice in Japan in order to
promote existing and potential business relationships.
However, we have been actively disposing of such investments while carefully
reviewing our relationships with investors.
As of March 1997, the investments amounted to about 260 billion yen on a
purchase value base and about 500 billion yen on a market value base. We
reduced these investments to 140 billion yen and about 220 billion yen respectively
as of September 2001, a decrease of about half compared with March 1997.
We continue to reduce these investments and reduce the impact of volatility in
these investments on our US GAAP financial statements.
         PFG Business Overview
            n Investment Profile
            (Initial Investment)               (Potential Value Added)                          (Refinance)                           (Exit)



          Purchased        External                   Purchased       External              Purchased        External
           Assets           Loans                      Assets          Loans                 Assets           Loans
                                                                                                               bonds




                           Nomura                                      Nomura
                          Sub Debt                                    Sub Debt

                                                                                              Cash
                                                       Added         Potential                Added          Potential                       Realized
                                                       Value          Profit                  Value           Profit                          Profit


                                                                                          •Refinance through external
         •Purchase assets                               Value added through strong                                           Recognize final profit through
                                                                                            loans
         •Raise externally collateralized financing     management team, clarification and bonds based on value             trade sale
           whose underlying is purchased assets         of business plan model             added assets
            (Non -recourse to Nomura)                  Added value represents             •Decrease/redeem Nomura
          •Nomura uses sub debt to supply cash          potential warrant value            sub debt
           for purchase proceeds.                                                         •Extract surplus non recourse
         •Nomura holds warrant at zero cost                                                cash, after refinancing.
                                                                                           Partial recognition of profit.
         •Companies that PFG Invests in are not legal subsidiaries of Nomura and are bankruptcy remote                                                  13
          >> Nomura’ s financial exposure is limited to its investments only



Investments in Equity Securities and PFG (2)

We have been conducting Principal Finance (PFG) business in Europe. The basic strategy in
this business is that PFG purchases assets (or companies), which for differing reasons are
under valued by the market and have significant profit potential, adds value to these assets
and sells them to third parties to make a profit.
I would like to explain PFG’s investment profile and recognition of its profit as shown on this
                                                                  h
slide. We consider this business as private equity. Therefore, t e explanation of its profit
recognition is based on Japanese GAAP, which follows UK GAAP.

First, the initial investment stage. PFG purchases assets (companies) through SPC. They are
financed by externally collateralized financing (non-recourse loans to Nomura) and sub debt
supplied by Nomura. Also, Nomura holds warrants at zero cost and has the right to profit from
the equity portion. Using this structure, Nomura’s financial exposure is limited to its sub debt
only.
Second, the potential value added stage. PFG adds value to assets (companies) through a
strong management team and clarification of its business plan and model. PFG lets its
management team of experienced professionals operate companies. PFG itself is only
involved in the strategic management issues.
Third, the refinancing stage. When the assets’ value has been increased, PFG refinances
through external loans and bonds based on value-added assets and redeems Nomura’s sub
debt. We mostly use securitization in refinancing. Nomura recognizes profit through the
extraction of excess cash following the refinancing and repayment of sub debt.
Finally, the exit stage. Ultimately, we recognize final profit through sale of the company,
usually by trade sale to third parties. Following disposal, the excess cash, or gain on disposal
is returned to Nomura through final exercise of warrants. It usually takes from three to seven
years to exit the deals after the initial investments.

In addition, because US GAAP requires that the companies in which PFG invests be regarded
as Nomura’s subsidiaries, we have to regard all trades with these companies as inter-
company trades until their exits and recognize whole profit relating to the deals at that time. As
such, the differences between US and Japanese GAAP mainly concern the timing of
profit/loss recognition for our PFG activities.
    PFG Major Investments



    Investment Date Sep. 96        Investment Date Sep. 97 Investment Date July 98               Investment Date Jan. 99
    Housing stocks holdings            Tenanted Pub        Rental company of mainly                 Tenanted Pub

          for MOD in UK                 holding company                  consumer electronics      holding company




   Investment Date Oct. 00                                  PFG Position (Net)
                               (Billions of yen)                                                Investment Date Dec. 00
   Largest retailer in UK of    400
                                                                                                Housing stocks holdings
       wine/beer/spirits
                                300                                                                for German railway

                                200


                                100


                                   0
                                                   Mar-00                        Mar-01


                                                                                                                     14




Investments in Equity Securities and PFG (3)


This slide explains the contents and the amount of PFG related investments.
PFG’s exposure was about 300 billion yen as of March 31, 2001. PFG increased its
investments from March 31, 2000 to March 31, 2001, mainly due to the acquisitions
of First Quench in October 2000 and Deutsche Annington in December 2000.
This page shows the main investment deals and the time of investments in them.
     Potential Restructuring of PFG Business




     n Nomura is committed to growing PFG
       business in a way that reduces overall              nPotential Restructuring
       concentration risk                                     of PFG Business

     n Provide new alternative investment funds                Possibilities include:
       to our client
                                                                    üPFG Fund
                                                                üIndependent Asset
     n Encourage PFG                                               Management




                                                                                        15




Investments in Equity Securities and PFG (4)


This slide illustrates “Potential Restructuring of PFG Business”.
Our management philosophy is that:
•we conduct PFG business as private equity investments in merchant banking
 activities, and that PFG business is profitable and has further potential. However,
 we would like to control the concentration of our resources and risk in this business,
 and
•provide new alternative funds to our clients.


Despite the US GAAP accounting model for these investments, we continue to
regard PFG entities as private equity investments due to the nature of this business.


We are currently considering the potential restructuring of PFG business. The
possibilities include moving the existing investments into a fund structure that would
be independently managed and also by making new investments in an overall
private equity fund. Through establishing PFG funds and financing through external
loans and bonds, we will create a structure to expand PFG business and control its
risk concentration.
Segment Information




                      16
    Year ended March 31, 2000
    (Billions of yen)
        500
                                                                                                Net revenue
                                                                  401.5                         Income/loss before income taxes
        400             380.6



        300

                                                                              203.3
        200                        186.2



        100
                                                                                                              28.2

           0


       -100                                                                                                               -83.4


       -200
                        Domestic Retail                        Global Wholesale                                   Other**
                          * These operating segment results are based on US GAAP except excluding the impact of unrealized
                            gains/losses on equity investments held for relationship purposes and the impact of consolidating PFG.
                          ** Other includes asset management segment, corporate items, gain/loss on investment securities, equity    17
                             earnings/loss of affiliates, amortization of goodwill, elimi nation, etc.




Segment Information (1)


This graph shows business segment information for the year ended March 31, 2000.


First of all, the segment information was prepared based on internal management
account figures, based on which, among others, management assesses business
performance.
Therefore, this information does not include the impact of unrealized gains/losses
on investments in equity securities, which under US GAAP are included in income.
The segment information treats investments in PFG entities as private equity
positions as management only view these entities as investments for ultimate sale
to realize capital gain. Under US GAAP, they are recorded as consolidated
subsidiaries.


As for the segment information for the year ended March 31, 2000, our securities
businesses consist of Domestic Retail activities and Global Wholesale activities.
For the year ended March 31, 2000, both Domestic Retail and Global Wholesale
recorded high levels of profit. Our asset management business was small for the
period because the period does not include the results of Nomura Asset
Management, in which we acquired a majority interest in March 2000. Therefore,
the results are included in “Other” in this graph.
“Other” includes asset management segment, corporate items, gain/loss on
investment securities, equity earnings/loss of affiliates, amortization of goodwill, and
elimination, etc.
    Year ended March 31, 2001
       Billions of yen
         500
                                                         462.8
                                                                                                       Net revenue
                                                                                                       Income/loss before income taxes
         400



         300             266.4
                                                                   252.7


         200



         100
                                 50.8                                                       60.0
                                                                                                      20.5                     16.5
            0


                                                                                                                                        -60.5
        -100
                   Domestic Retail                  Global Wholesale                  Asset Management                           Other**
                           * These operating segment results are based on US GAAP except excluding the impact of unrealized
                             gains/losses on equity investments held for relationship purposes and the impact of consolidating PFG.
                           ** Other includes corporate items, gain/loss on investment securities, equity earnings/loss of affiliates,           18
                              amortization of goodwill, elimination, etc.




Segment Information (2)


This graph shows business segment information for the year ended March 31, 2001.
In the graph, we show three business lines, Domestic Retail, Global Wholesale and
Asset Management, since our asset management business grew as a result of the
acquisition and consolidation of Nomura Asset Management.
For the year ended March 31, 2001, Global Wholesale continued to produce high
levels of profit, while Domestic Retail was stagnant under the depressed Japanese
stock market.
For details, please see 20-F.


In summary, for our listing on the New York Stock Exchange, we prepared
consolidated financial statements in compliance with US GAAP. Although there
exist differences between Japanese and US GAAP, the most important of these are
the treatment of investments in equity securities for relationship purposes and the
treatment of PFG business.
As regards investments in equity securities, we have been reducing the amounts
considerably and will continue to do so.
As for PFG business investments, management views these entities purely as
investments for ultimate sale and realization of capital gain, not as operating
subsidiaries. While the difference in US GAAP and Japanese GAAP results in a
timing issue only, this together with other reasons, which I explained, has led us to
consider restructuring our PFG business.
    Appendix




                                                19




Following pages are supplemental information.
Consolidated Financial Statements (1)
 n Consolidated Statements of Operations
                                                                                               Translation into
                                                                                                thousands of
                                                                  Millions of yen                U.S. dollars
                                                                         Year ended March 31
                                                             2000                 2001              2001
      Revenue:
       Commissions                                             329,332            189,841           1,512,195
       Fees from investment banking                             93,644              87,160            694,281
       Asset management and portfolio service fees              63,799            144,882           1,154,070
       Net gain on trading                                     253,328            307,989           2,453,314
       Interest and dividends                                  419,742            518,941           4,133,670
       Profit (loss) on investments in equity securities        90,839             (98,968)          (788,338)
       PFG entities product sales                               56,476            117,523             936,140
       PFG entities rental income                              144,005            103,339             823,156
       Other                                                    48,616              98,591            785,335
         Total revenue                                       1,499,781          1,469,298          11,703,823
       Interest expense                                        437,131            553,643           4,410,092
         Net revenue                                         1,062,650            915,655           7,293,731

      Non-interest expenses:
       Compensation and benefits                               286,268           305,190            2,431,018
       Commissions and floor brokerage                          21,342            26,393              210,236
       Information processing and communications                54,961            70,998              565,541
       Occupancy and related depreciation                       71,191            65,319              520,304
       Business development expenses                            20,418            29,940              238,490
       PFG entities cost of goods sold                          37,408            84,004              669,141
       PFG entities expenses associated with rental income      51,706            43,760              348,574
       Other                                                   147,136           133,879            1,066,425
                                                               690,430           759,483            6,049,729

      Income before income taxes                               372,220           156,172            1,244,002

      Income tax expense:
        Current                                                 12,866             53,693             427,697
        Differed                                               155,805             45,069             359,001
                                                               168,671             98,762             786,698
      Net income                                               203,549             57,410             457,304     20
Consolidated Financial Statements (2)
 n Consolidated Balance Sheets
                                                                                                          Translation into
                                                                                                           thousands of
                                                                              Millions of yen               U.S. dollars
                                                                                            March 31
                                                                         2000                 2001             2001
                                       ASSETS
         Cash and cash deposits:
          Cash and cash equivalents                                         522,970            503,676          4,012,076
          Time deposits                                                     212,858            278,648          2,219,595
          Deposits with stock exchanges and other segregated cash           338,863             46,325            369,006
                                                                          1,074,691            828,649          6,600,677

         Loans and receivables:
          Loans receivable from customers                                  780,258             282,424          2,249,673
          Loans receivable from other than customers                       466,992             409,638          3,263,008
          Receivables from customers                                        42,314              78,155            622,550
          Receivables from other than customers                            191,335             302,437          2,409,089
          Receivables under resale agreements and securities
            borrowed transactions                                         4,649,363          5,995,998        47,761,654
          Securities pledged as collateral                                  697,242          2,769,026        22,056,922
          Allowance for doubtful accounts                                   (15,181)           (26,529)         (211,319)
                                                                          6,812,323          9,811,149        78,151,577

         Trading assets:
          Securities inventory                                            4,064,790          3,281,659        26,140,346
          Derivative contracts                                              300,592            343,536         2,736,466
                                                                          4,365,382          3,625,195        28,876,812

         Other:
          Office buildings, land, equipment and facilities
            (net of accumulated depreciation and amortization
            of Yen 145,713 million in 2000 and Yen 206,132 million
            ($1,641,963 thousand) in 2001, respectively)                   143,169             156,430          1,246,057
          PFG entities land, buildings, equipment and furniture and
            fixtures (net of accumulated depreciation and amortization
            of Yen 135,621 million in 2000 and Yen 75,447 million
            ($600,980 thousand) in 2001, respectively)                      433,054           835,854          6,658,069
          Lease deposits                                                    172,689            90,601            721,690
          Non-trading debt securities                                       377,080           590,694          4,705,226
          Investments in equity securities                                  305,724           272,761          2,172,702
          Investments in and advances to affiliated companies               383,500           403,818          3,216,648
          Deffered tax assets                                               102,018            87,006            693,054
          Other assets                                                      441,238           443,867          3,535,662
                                                                          2,358,472         2,881,031         22,949,108
                                                                         14,610,868        17,146,024        136,578,174
                                                                                                                             21
Consolidated Financial Statements (3)
 n Consolidated Balance Sheets
                                                                                                         Translation into
                                                                                                          thousands of
                                                                         Millions of yen                   U.S. dollars
                                                                                       March 31
                                                                    2000                 2001                 2001
            LIABILITIES AND SHAREHOLDERS' EQUITY
        Payables, borrowings and deposits:
          Payables to customers                                 ¥      310,563     ¥      449,219        $     3,578,294
          Payables to other than customers                             411,035            363,658              2,896,750
          Payables under repurchase agreements and securities
            loaned transactions                                      5,151,644          7,448,220             59,329,457
          Short-term borrowings                                      1,146,030          1,151,823              9,174,948
          Time and other deposits received                             382,842            471,405              3,755,018
                                                                     7,402,114          9,884,325             78,734,467
        Trading liabilities:
          Securities sold but not yet purchased                      2,741,752          2,430,037             19,356,675
          Derivative contracts                                         326,959            427,279              3,403,529
                                                                     3,068,711          2,857,316             22,760,204
        Other:
          Accrued income taxes                                          13,371             43,753                348,518
          Accrued pension and severance costs                           46,850             44,053                350,908
          Other accrued liabilities                                    496,220            521,751              4,156,054
                                                                       556,441            609,557              4,855,480
        Long-term borrowings                                         1,625,369          1,489,184             11,862,227
        Non-recourse PFG entities loans and bonds                      547,257            869,214              6,923,801
                                                                    13,199,892         15,709,596            125,136,179



        Shareholders' equity:
          Common stock, Yen 50 par value
             Authorized---6,000,000,000 shares
             Issued March 31, 2001---1,962,977,841 shares                                 182,797              1,456,086
                  March 31, 2000---1,962,977,247 shares                182,796
        Additional paid-in capital                                     147,714            146,133              1,164,035
        Retained earnings                                            1,154,599          1,177,660              9,380,755
        Accumulated other comprehensive income:
          Minimum pension liability adjustment                          (4,073)            (19,083)             (152,007)
          Cumulative translation adjustments                           (59,716)            (51,021)             (406,412)
                                                                       (63,789)            (70,104)             (558,419)
                                                                     1,421,320          1,436,486             11,442,457
        Less---Common stock held in treasury, at cost---
          March 31, 2001---26,334 shares                                                          (58)               (462)
          March 31, 2000---3,099,017 shares                             (10,344)

                                                                ¥
                                                                     1,410,976
                                                                    14,610,868     ¥
                                                                                        1,436,428
                                                                                       17,146,024        $
                                                                                                              11,441,995
                                                                                                             136,578,174
                                                                                                                             22
Reverse Reconciliation (Year ended March 31, 2001)
                                                                                              (Millions of yen)
                                                                                             Shareholders'
                                                                               Net Income          Equity
  Amounts reported in the consolidated financial statements under
                                                                                   57,410          1,436,428
  U.S. GAAP
          Valuation of investments in equity securities and non-trading debt
     (a)                                                                           91,650                (549)
          securities
     (b) Retirement and severance benefit                                          (1,712)             1,065
     (c) Recognition of provision for multi-employer pension plan                        -           (35,681)
     (d) Consolidation of the PFG entities                                         20,027            121,796
          Business conbinations - evaluation of assets and liabilities of
     (e)                                                                           57,860             63,259
          acquired subsidiary and difference of amortization period *
      (f) Investments in affiliates                                                21,778              8,401
     (g) Appropriations of retained earnings                                          640             34,949
     (h) Loss on sale of treasury stock                                            (1,691)                  -
      (i) Hedge acounting                                                          (3,007)            (6,623)
      (j) Leveraged leases                                                             46             (8,889)
      (k) Valuation of marketable equity securities                               (18,479)                  -
      (l) Other                                                                    (2,751)            (3,771)
  Total Japanese GAAP adjustments                                                 164,361            173,957
  Tax effect of above Japanese GAAP adjustments                                   (40,105)            32,023
  Amounts determined in conformity with Japanese GAAP                             181,666          1,642,408
  * 47,283 millions yen relates to the sale of Kokusai Securities's shares.


                                                                                                                  23
Outline of Reconciling Items (1)

                                        Japanese GAAP                                                  US GAAP

 (a) Valuation of    Investments in equity securities and non-trading debt      In accordance with accounting principles generally
 investments in      securities are reported at fair value and the related      accepted in the United States of America for broker -
 equity securities   net unrealized gains or losses, net of applicable          dealers, investments in equity securities and non-trading
 and non-trading     income taxes, are reported in a separate component         debt securities are recorded at market or fair value with
 debt securities     of shareholders' equity. If the decline in fair value of   unrealized gains and losses included in income.
                     such investments below its respective cost is
                     considered to be other than temporary, the decline is
                     recorded as a loss on investments by a charge to
                     current earnings.

 (b) Retirement      Similar accounting treatment is required, however,         Pension cost is provided in accordance with SFAS
 and severance       certain treatment is different from US GAAP. Under         No.87 “Employers' Accounting for Pensions”.
 benefit             US GAAP, additional minimum pension liabilities are
                     provided when the accumulated benefit obligation
                     exceeds the fair value of plan assets, while such
                     treatment is not provided under Japanese GAAP.
                     Under US GAAP, gain or loss resulting from
                     experience different from that assumed or from a
                     change in an actuarial assumption is amortized over
                     the remaining service period of employees when such
                     balance at beginning of year exceeds the “Corridor ”
                     which is defined as a 10% of larger of projected
                     benefit obligation or fair value of plan assets, while
                     such gain or loss is amortized regardless of the
                     Corridor under Japanese GAAP.



                                                                                                                                            24
Outline of Reconciling Items (2)

                                          Japanese GAAP                                                  US GAAP

 (c) Recognition of     Nomura and most of its domestic consolidated sub-        The accrual of a provision described on the left would
 provision for multi-   sidiaries participate in the Japan Securities Dealers    not meet the requirements of SFAS No.5 "Accounting for
 employer pension       Employees’ Pension Fund ( “JSDE Fund”), a multi-         Contingencies" with regard to JSDE Fund and is not
 plan                   employer fund funded by companies in the securities      recorded.
                        broker -dealer industry in Japan.
                        On March 31, 2000, Nomura recognized provision in
                        order to secure certain specific expenses attributable
                        to participants in the future.
 (d) Consolidation      Under Japanese GAAP, Nomura has not                      Under U.S. GAAP, certain operating companies in which
 of the PFG             consolidated PFG entities since those investments        PFG made investments are consolidated since Nomura
 entities               are treated as venture capital investments.              has controlling financial interests in the underlying
                                                                                 investments.
 (e) Business           Nomura had directly held only 5% of the out-standing     Nomura had directly held only 5% of the outstanding
 combinations           share capital of NAM, In March 2000, Nomura              share capital of NAM, In March 2000, Nomura acquired
                        acquired an additional 69% equity interest in NAM.       an additional 69% equity interest in NAM. The
                        The acquisition has been accounted for accounting        acquisition has been accounted for by the purchase
                        effective March 31, 2000 and assets acquired and         method of accounting effective March 31, 2000 and
                        liabilities assumed have been recorded at estimated      assets acquired and liabilities assumed have been
                        fair values based on Japanese GAAP.                      recorded at estimated fair values.
                        Negative goodwill of NAM is amortized over three         Negative goodwill of NAM is amortized over ten years
                        years from the fiscal year beginning April 1, 2000.      from the fiscal year beginning April 1, 2000.
 (f) Investments in     Under Japanese GAAP, tax effects of accounting for       Under U.S. GAAP, tax effects of accounting for equity
 affiliates             equity investment are not provided and accounting for    investment are provided and accounting for equity
                        equity investment is prospectively adopted effective     investment is retroactively adopted effective from the
                        when Nomura acquires an influence on the investee.       initial equity investment. Due to certain adjustments
                        Due to certain adjustments described this section, the   described this section, the net assets value of affiliate
                        net assets value of affiliate companies is different     companies is different between U.S. GAAP and
                        between U.S. GAAP and Japanese GAAP when                 Japanese GAAP when Nomura recognizes equity
                        Nomura recognizes equity earnings.                       earnings.


                                                                                                                                             25
Outline of Reconciling Items (3)
                                         Japanese GAAP                                                     US GAAP

 (g) Appropriations   Under Japanese GAAP,a company may select an                  Appropriations of retained earnings are reflected and
 of retained          accounting method for appropriations of retained             recorded in the consolidated financial statements for the
 earnings             earnings to reflect and record those in the consoli-         period to which they relate. Also, bonuses to directors
                      dated financial statements for the period to which they      are charged to income.
                      relate or for the subsequent period when
                      shareholders' aapproval has been obtained. Nomura
                      applies the latter method and records appropriations
                      of retained earnings in the consolidated financial
                      statements in the accounting period when
                      shareholders' approval has been obtained. And also,
                      under Japanese GAAP, bonuses to directors are
                      recorded as appropriations of retained earnings.

 (h) Loss on sale     Gain or loss on sale of treasury stock is charged to         Gain or loss on sale of treasury stock is charged to
 of treasury stock    income.                                                      additional paid-in capital.
 (i) Hedge            Derivative contracts that have been entered into for         Derivative contracts that have been designated as
 accounting           hedging purchase for specific assets or groups of            hedges to specific assets or specific liabilities are
                      similar assets or specific liabilities or group of similar   accounted for on an accrual basis.
                      liabilities are valued at fair value and unrealized gains
                      or losses are deferred on the balance sheet.

 (j) Leveraged        Depreciation expenses arising from leases assets are         Leveraged leases are accounted in accordance with
 leases               recognized on a declining balance method and                 SFAS No.13 "Accounting for Leases", and fixed income
                      income and expenses are not averaged during the              and expenses are recognized for each year over the
                      period of leveraged leases.                                  period of the leveraged leases.
 (k) Valuation of     Up to the fiscal year ended March 31, 2000,                  Marketable equity securities are recorded at market or
 marketable equity    marketable equity securities were recorded at quoted         fair value. Fair value is generally based on quoted
 securities           market price. For the fiscal year beginning April 1,         market price or dealer quotation or an estimation by
                      2000, marketable equity securities have been                 management of the amounts expected to be realized
                      recorded in accordance with U.S. GAAP policy                 upon settlement in current market conditions.
                      outlined the right. As a result, there is no difference to
                      shareholders ’ equity in the accompanying
                      reconciliation.

                                                                                                                                               26
Outline of Reconciling Items (4)
                                         Japanese GAAP                                                 US GAAP

 Gensaki                Gensaki transactions                                      Gensaki transactions
 transactions &       Gensaki transactions are accounted for financing          Gensaki transactions are recorded as sales in the
 securities lending   transactions.                                             consolidated financial statements; therefore, the
 and borrowing                                                                  related securities and obligations to repurchase are not
                        Securities lending and borrowing transactions
 transactions         Securities received as collateral are recognized on the   reflected in the accompanying consolidated balance
                      balance sheet by secured party when received.             sheets.
                      (Effective from September 30, 2001, such treatment is        Securities lending and borrowing transactions
                      amended and the accounting treatment is same as           Collateral securities of which the right of sell or
                      U.S. GAAP.)                                               repledge are held by secured party are recognized on
                                                                                the balance sheet when the collateral is sold.




                                                                                                                                           27

				
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