Nomura Holdings, Inc. Q4 FY2026 earnings call

• Full-year results set record with DRIP net revenue, income before income taxes, and net income all increasing. Wealth management and wholesale drove earnings. Investment management saw asset under management rise. Banking steadily expanding. • Fourth quarter: Group net revenue up 5%, but income before income taxes and net income fell due to factors like decrease in affiliate profit and impairment loss. Work management had flat net revenue but increased income. Total sales rose mainly due to tender offers. Investment management net revenue up, but had net outflows. Wholesale net revenue fell with global markets and investment banking seeing declines. Banking net revenue up but income before income taxes down. • Discussed private credit exposure diversified and managed, and the vision 'Reaching for Sustainable Growth' with ROE and income before income taxes targets attained.

Full-year: DRIP net revenue increased 15% to 2,167.7 billion yen; income before income taxes grew 14% to 539.8 billion yen; net income increased 6% to 362.1 billion yen. Wealth management income before income taxes grew 23%, investment management asset under management rose over 50% to ~137 trillion yen, wholesale revenue grew across regions with global markets and investment banking achieving record high revenue. Fourth quarter: Group net revenue rose 5% to 577.2 billion yen; income before income taxes fell 20% to 107.7 billion yen; net income down 19% to 73.9 billion yen. Work management net revenue flat at 133.1 billion yen, income before income taxes up 5%. Total sales rose 75% quarter-on-quarter to ~11.7 trillion yen. Investment management net revenue up 42% to 86.2 billion yen. Wholesale net revenue fell 2% to 308.1 billion yen. Banking net revenue up 6% to 14.5 billion yen.

• Expect to pay an ordinary dividend of 24 yen per share, annual dividend 51 yen per share with payout ratio 41%. • In April, wealth management net revenue largely same as fourth quarter with fund flow into products firm; wholesale net revenue trending higher with equity markets rebounding and client activity picking up.

• Teleconference contains forward-looking statements with risks like economic and market conditions, political events, investor sentiments, liquidity of secondary markets, interest rates, currency exchange rates, security valuations, competitive conditions and size, number and timing of transactions. • In investment management, impairment loss at an investee company. • In wholesale, factors like fixed income revenue decline, macro products rate weakness in Americas, etc. • Private credit market has risks like credit cycle monitoring needed.

Q: About international asset management company control, including loss from investment four years ago and Macquarie Asset Management agreement cancellation performance; also about capital set-one ratio and balance sheet use.

A: Explained backdrop of investment for ESG and private asset business, impairment due to changed ESC environment and decelerated growth; Macquarie situation in line with expectations but net outflow to be minimized; set-one ratio impact from business expansion not significant with balanced portfolio policy.

Q: Regarding personnel expense, impact of UK regulatory change on deferred compensation and April wholesale performance geographical split.

A: Deferred compensation impact in fourth quarter smaller than third, one-off nature; April wholesale outperformance due to rates and equity products, America performance impacted by Middle East and seasonality.

Q: About private credit sector diversification, retail product redemption and sales policy, and capital policy buyback.

A: Private credit sectors include healthcare, business service, etc., retail products with mid-to-long-term investment communication, buyback with RSU and payout ratio details.

Q: About wholesale and wealth management expense outlook and laser digital risk control update.

A: Wholesale expense due to one-time items and fees, expense level expected to come down; wealth management to tightly control cost; laser digital risk controlled with reduced exposure.

Q: About wholesale quarter-on-quarter profit decline reason.

A: Revenue affected by seasonality, Middle East situation, cost due to compensation regulation and fees.

Q: About ROE goal comparison and private asset market outlook.

A: Discussing ROE goal review, private asset market in US positive with selective approach and medium to long-term portfolio control.