Edgar Filing: NOMURA HOLDINGS INC

Form 6-K

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

Supplement for the month of January 2005.

NOMURA HOLDINGS, INC.

(Translation of registrant’s name into English)

9-1, Nihonbashi 1-chome

Chuo-ku, Tokyo 103-8645

Japan

(Address of principal executive offices)

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

Form 20-F X Form 40-F

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

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

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

Information furnished on this form:

EXHIBIT

Exhibit Number

1. [Financial Highlights – Nine months ended December 2004]

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.

Date: January 25, 2005	By:	/s/ Hiroshi Tanaka
		Hiroshi Tanaka
		Senior Managing Director

LOGO

January 25, 2005

Financial Highlights – Nine months ended December 2004

We are pleased to report the following consolidated financial highlights based on

consolidated financial information under US GAAP for the nine months ended December 2004.


		For further information, please contact:

				Shinji Iwai

				Managing Director

				Investor Relations Department

				Nomura Group Headquarters

				Nomura Securities Co., Ltd.

				9-1 Nihonbashi 1-chome, Chuo-ku

				Tokyo 103-8011, Japan

				TEL: +813-3211-1811

Financial Summary For the Nine Months Ended December 31, 2004


Date:		January 25, 2005
Company name (code number):		Nomura Holdings, Inc. (8604)
Head office:		1-9-1, Nihonbashi, Chuo-ku, Tokyo 103-8011, Japan
Stock exchange listings:		(In Japan) Tokyo, Osaka, Nagoya
		(Overseas) New York, Amsterdam, Singapore
Representative:		Nobuyuki Koga
		President and Chief Executive Officer, Nomura Holdings, Inc.
For inquiries:		Shinji Iwai
		Managing Director, Investor Relations Department, Nomura Group Headquarters, Nomura Securities Co., Ltd.
		Tel: (Country Code 81) 3-3211-1811
		URL(http://www.nomura.com)

(1) Operating Results


	For the nine months ended December 31						For the year ended March 31
	2004			2003			2004
	(Yen amounts in millions, except per share data)
Total revenue	¥	852,948		¥	790,829		¥	1,099,546
Change from the nine months ended December 31, 2003		7.9	%

Net revenue	¥	564,657		¥	565,005		¥	803,103
Change from the nine months ended December 31, 2003		(0.1	)%

Income before income taxes	¥	137,865		¥	189,182		¥	282,676
Change from the nine months ended December 31, 2003		(27.1	)%

Net income	¥	69,189		¥	102,417		¥	172,329
Change from the nine months ended December 31, 2003		(32.4	)%

Basic net income per share	¥	35.64		¥	52.80		¥	88.82
Diluted net income per share	¥	35.62		¥	52.80		¥	88.82
Return on shareholders’ equity (ROE)		5.1	% *		8.1	% *		10.1	%

*	ROE for the nine months ended December 31, 2004 and 2003 are calculated as follows:

Net income x (4/3)

(Shareholders’ equity at the beginning of period + Shareholders’ equity at the end of period) / 2

(2) Financial Position


	At December 31						At March 31
	2004			2003			2004
	(Yen amounts in millions, except per share data)
Total assets	¥	34,101,407		¥	27,863,899		¥	29,752,966
Shareholders’ equity	¥	1,852,001		¥	1,725,431		¥	1,785,688
Shareholders’ equity as a percentage of total assets		5.4	%		6.2	%		6.0	%
Book value per share	¥	954.01		¥	888.61		¥	919.67

(3)	Adoption of simple method in recognition method: None

(4)	Difference in recognition method with latest fiscal year: None

(5)	Scope of consolidation and equity method application

Number of consolidated subsidiaries and variable interest entities: 140

Number of affiliated companies, which were accounted for by the equity method: 15

(6)	Movement in the scope of consolidation and equity method application for this period


Number of consolidation	Inclusion 14	Exclusion 7
Number of equity method application	Inclusion 3	Exclusion 1

Nomura provides investment, financing and related services in the capital markets on a global basis. In the global capital markets there exist various uncertainties due to, but not limited to, economic and market conditions. Nomura, therefore, releases its results on a more frequent quarterly basis, and does not present earnings forecasts.

NOMURA HOLDINGS, INC.

FINANCIAL HIGHLIGHTS

(UNAUDITED)


							% Change		Translation into U.S. dollars
	For the nine months ended/ as of										For the year ended/ as of
	December 31, 2003 (A)			December 31, 2004 (B)			(B-A)/(A)		December 31, 2004		March 31, 2004
	(Yen and dollar amounts in millions, except per share data)
FOR THE PERIOD ENDED
							%
Total revenue	¥	790,829		¥	852,948		7.9		$	8,307	¥	1,099,546

Net revenue		565,005			564,657		(0.1	)		5,499		803,103

Non-interest expenses		375,823			426,792		13.6			4,156		520,427

Income before income taxes		189,182			137,865		(27.1	)		1,343		282,676

Net income		102,417			69,189		(32.4	)		674		172,329

Per share data :
Basic-
Net income		52.80			35.64		(32.5	)		0.35		88.82

Diluted-
Net income		52.80			35.62		(32.5	)		0.35		88.82

Cash dividends		7.50			10.00		33.3			0.10		15.00

Return on equity (ROE):		8.1	% *		5.1	% *						10.1	%

AT PERIOD-END

Total assets	¥	27,863,899		¥	34,101,407				$	332,113	¥	29,752,966
Shareholders’ equity		1,725,431			1,852,001					18,037		1,785,688

Per share data :
Shareholders’ equity		888.61			954.01					9.29		919.67

*	ROE for the nine months ended December 31, 2004 and 2003 are calculated as follows:

Net income x (4/3)

(Shareholders’ equity at the beginning of period + Shareholders’ equity at the end of period) / 2

Results of Operations

Financial Overview

The following table provides selected consolidated income statement information for the nine months ended December 31, 2003 and 2004.


	Millions of yen
	For the nine months ended
	December 31, 2003			December 31, 2004
Non-interest revenue	¥	494,616		¥	492,856
Net interest revenue		70,389			71,801

Net revenue		565,005			564,657
Non-interest expenses		375,823			426,792

Income before income taxes		189,182			137,865
Income tax expense		86,765			68,676

Net income	¥	102,417		¥	69,189

Return on equity (ROE)		8.1	%		5.1	%

Nomura Holdings, Inc. and its consolidated entities (“Nomura”) reported net revenue of ¥ 564.7 billion for the nine months ended December 31, 2004, a decrease of 0.1% from the same period in the prior year. Non-interest expenses were ¥ 426.8 billion for the nine months ended December 31, 2004, an increase of 14% from the same period in the prior year.

Income before income taxes was ¥ 137.9 billion for the nine months ended December 31, 2004, a decrease of 27% from the same period in the prior year. Net income was ¥ 69.2 billion for the nine months ended December 31, 2004, a decrease of 32% from the same period in the prior year.

Total assets were ¥ 34.1 trillion at December 31, 2004, an increase of ¥ 4.3 trillion from March 31, 2004 and total shareholders’ equity increased by ¥ 66.3 billion from March 31, 2004 to ¥ 1,852.0 billion at December 31, 2004. Nomura’s return on equity was 5.1% for the nine months ended December 31, 2004.

Business Segments

Operating Results of Domestic Retail


	Millions of yen
	For the nine months ended
	December 31, 2003		December 31, 2004
Non-interest revenue	¥	224,680	¥	222,387
Net interest revenue		1,235		2,364

Net revenue		225,915		224,751
Non-interest expenses		166,390		163,195

Income before income taxes	¥	59,525	¥	61,556

Domestic Retail has further strengthened its capabilities to provide investment consultation services in order to respond to customers’ investment needs by offering stocks, investment trusts, foreign currency bonds, Japanese government bonds for individuals, and a variety of other financial products. Net revenue decreased by 1% from ¥ 225,915 million for the nine months ended December 31, 2003 to ¥ 224,751 million for the nine months ended December 31, 2004. Non-interest expenses decreased by 2% from ¥ 166,390 million for the nine months ended December 31, 2003 to ¥ 163,195 million for the nine months ended December 31, 2004. As a result, income before income taxes increased by 3% from ¥ 59,525 million for the nine months ended December 31, 2003 to ¥ 61,556 million for the nine months ended December 31, 2004.

Operating Results of Global Wholesale


	Millions of yen
	For the nine months ended
	December 31, 2003		December 31, 2004
Non-interest revenue	¥	215,180	¥	139,877
Net interest revenue		51,266		86,433

Net revenue		266,446		226,310
Non-interest expenses		169,003		167,001

Income before income taxes	¥	97,443	¥	59,309

Global Wholesale has made an effort to manage its business portfolio based on global customers’ order-flow. Net revenue decreased by 15% from ¥ 266,446 million for the nine months ended December 31, 2003 to ¥ 226,310 million for the nine months ended December 31, 2004, due primarily to a decrease in net gain on trading relating to bonds. Non-interest expenses decreased by 1% from ¥ 169,003 million for the nine months ended December 31, 2003 to ¥ 167,001 million for the nine months ended December 31, 2004. As a result, income before income taxes decreased by 39% from ¥ 97,443 million for the nine months ended December 31, 2003 to ¥ 59,309 million for the nine months ended December 31, 2004. In April 2004, the Global Wholesale segment was reorganized in order to enhance specialty services and strengthen our global structure. It now consists of three business lines: Global Markets, which is composed of Fixed Income and Equity, Investment Banking, and Merchant Banking.

Global Markets

Net revenue decreased by 18% from ¥ 211,357 million for the nine months ended December 31, 2003 to ¥ 173,326 million for the nine months ended December 31, 2004, due primarily to a decrease in net gain on trading relating to bonds. Non-interest expenses increased by 4% from ¥ 122,076 million for the nine months ended December 31, 2003 to ¥ 126,485 million for the nine months ended December 31, 2004. As a result, income before income taxes decreased by 48% from ¥ 89,281 million for the nine months ended December 31, 2003 to ¥ 46,841 million for the nine months ended December 31, 2004.

Investment Banking

Net revenue increased by 9% from ¥ 51,489 million for the nine months ended December 31, 2003 to ¥ 56,061 million for the nine months ended December 31, 2004, partly due to a revitalization in equity capital markets. Non-interest expenses decreased by 16% from ¥ 38,992 million for the nine months ended December 31, 2003 to ¥ 32,874 million for the nine months ended December 31, 2004, due primarily to restructuring of business operations. As a result, income before income taxes increased by 86% from ¥ 12,497 million for the nine months ended December 31, 2003 to ¥ 23,187 million for the nine months ended December 31, 2004.

Merchant Banking

Net revenue decreased from ¥ 3,600 million for the nine months ended December 31, 2003 to (¥ 3,077) million for the nine months ended December 31, 2004, primarily due to funding costs for its assets in Europe, although there were exit transactions for this period. Non-interest expenses decreased by 4% from ¥ 7,935 million for the nine months ended December 31, 2003 to ¥ 7,642 million for the nine months ended December 31, 2004. As a result, loss before income taxes was ¥ 4,335 million for the nine months ended December 31, 2003 and ¥ 10,719 million for the nine months ended December 31, 2004.

Operating Results of Asset Management


	Millions of yen
	For the nine months ended
	December 31, 2003		December 31, 2004
Non-interest revenue	¥	25,690	¥	31,922
Net interest revenue		1,225		1,088

Net revenue		26,915		33,010
Non-interest expenses		26,767		26,607

Income before income taxes	¥	148	¥	6,403

Net revenue increased by 23% from ¥ 26,915 million for the nine months ended December 31, 2003 to ¥ 33,010 million for the nine months ended December 31, 2004, due primarily to an increase in asset management and portfolio service fees reflecting the rise in the net assets of stock investment trusts. Non-interest expenses decreased by 1% from ¥ 26,767 million for the nine months ended December 31, 2003 to ¥ 26,607 million for the nine months ended December 31, 2004. As a result, income before income taxes increased from ¥ 148 million for the nine months ended December 31, 2003 to ¥ 6,403 million for the nine months ended
December 31, 2004.

Other Operating Results

Other operating results include gain (loss) on investment securities, equity in earnings (losses) of affiliates and other financial adjustments. Please refer to Note 6 to the consolidated financial information for a reconciliation of segment results to income statement information. Loss before income taxes was ¥ 4,193 million for the nine months ended December 31, 2003 and income before income taxes was ¥ 5,752 million for the nine months ended December 31, 2004.

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)


	Millions of yen					% Change		Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended										For the year ended
	December 31, 2003 (A)		December 31, 2004 (B)			(B-A)/(A)		December 31, 2004			March 31, 2004
Revenue:
Commissions	¥	147,309	¥	161,393		9.6	%	$	1,572		¥	210,216
Fees from investment banking		58,766		66,185		12.6			645			86,994
Asset management and portfolio service fees		47,549		57,317		20.5			558			66,193
Net gain on trading		181,329		131,349		(27.6	)		1,279			229,042
Gain (Loss) on private equity investments		4,493		(3,764	)	—			(37	)		13,138
Interest and dividends		296,213		360,092		21.6			3,507			396,870
Gain on investments in equity securities		34,557		6,399		(81.5	)		62			55,888
Other		20,613		73,977		258.9			721			41,205

Total revenue		790,829		852,948		7.9			8,307			1,099,546
Interest expense		225,824		288,291		27.7			2,808			296,443

Net revenue		565,005		564,657		(0.1	)		5,499			803,103

Non-interest expenses :
Compensation and benefits		195,412		197,590		1.1			1,924			259,336
Commissions and floor brokerage		13,011		16,979		30.5			165			19,169
Information processing and communications		57,565		59,821		3.9			583			80,031
Occupancy and related depreciation		39,754		39,412		(0.9	)		384			54,221
Business development expenses		15,906		20,020		25.9			195			23,100
Other		54,175		92,970		71.6			905			84,570

		375,823		426,792		13.6			4,156			520,427

Income before income taxes		189,182		137,865		(27.1	)		1,343			282,676

Income tax expense:
Current		80,776		59,231		(26.7	)		577			108,434
Deferred		5,989		9,445		57.7			92			1,913

		86,765		68,676		(20.8	)		669			110,347

Net income	¥	102,417	¥	69,189		(32.4	)	$	674		¥	172,329


Per share of common stock:
	Yen					% Change		Translation into U.S. dollars			Yen
Basic-
Net income	¥	52.80	¥	35.64		(32.5	)	$	0.35		¥	88.82

Diluted-
Net income	¥	52.80	¥	35.62		(32.5	)	$	0.35		¥	88.82

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)


	Millions of yen									Translation into millions of U.S. dollars
	December 31, 2003			March 31, 2004			December 31, 2004			December 31, 2004
ASSETS
Cash and cash deposits:
Cash and cash equivalents	¥	532,405		¥	637,372		¥	506,685		$	4,935
Time deposits		263,565			248,737			387,462			3,772
Deposits with stock exchanges and other segregated cash		52,378			44,528			41,701			406

		848,348			930,637			935,848			9,113

Loans and receivables:
Loans receivable		409,738			543,894			469,268			4,570
Receivables from customers		33,457			10,744			7,959			78
Receivables from other than customers		425,714			464,776			840,220			8,183
Allowance for doubtful accounts		(6,897	)		(5,778	)		(3,192	)		(31	)

		862,012			1,013,636			1,314,255			12,800

Collateralized agreements:
Securities purchased under agreements to resell		4,733,656			5,701,646			7,481,121			72,859
Securities borrowed		6,542,655			7,180,106			7,733,775			75,319

		11,276,311			12,881,752			15,214,896			148,178

Trading assets and private equity investments (including securities pledged as collateral of ¥5,820,754 million at December 31, 2003, ¥5,229,300 million at March 31, 2004, and ¥7,137,262 million ($69,510 million) at December 31, 2004, respectively):
Securities inventory		13,086,281			13,066,963			14,507,367			141,287
Derivative contracts		439,578			479,659			574,161			5,592
Private equity investments		281,616			291,774			310,646			3,025

		13,807,475			13,838,396			15,392,174			149,904

Other assets:
Office buildings, land, equipment and facilities (net of accumulated depreciation and amortization of ¥179,278 million at December 31, 2003, ¥182,449 million at March 31, 2004 and ¥196,422 million ($1,913 million) at December 31, 2004, respectively)		194,931			200,700			282,560			2,752
Lease deposits		62,727			64,764			40,100			391
Non-trading debt securities (including securities pledged as collateteral of ¥nil at December 31, 2003, ¥3,340 million at March 31, 2004, and ¥nil ($nil) at December 31, 2004, respectively)		207,958			206,236			232,779			2,267
Investments in equity securities		151,720			169,459			166,010			1,617
Investments in and advances to affiliated companies		200,946			207,668			240,497			2,342
Deferred tax assets		104,420			105,901			98,060			955
Other assets		147,051			133,817			184,228			1,794

		1,069,753			1,088,545			1,244,234			12,118

Total assets	¥	27,863,899		¥	29,752,966		¥	34,101,407		$	332,113

NOMURA HOLDINGS, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(UNAUDITED)


	Millions of yen									Translation into millions of U.S. dollars
	December 31, 2003			March 31, 2004			December 31, 2004			December 31, 2004
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term borrowings	¥	459,105		¥	437,124		¥	378,366		$	3,685

Payables and deposits:
Payables to customers		230,045			266,646			218,102			2,124
Payables to other than customers		650,186			861,747			309,811			3,017
Time and other deposits received		279,419			255,703			310,576			3,025

		1,159,650			1,384,096			838,489			8,166

Collateralized financing:
Securities sold under agreements to repurchase		8,531,106			9,622,727			12,347,113			120,248
Securities loaned		5,277,876			5,157,814			5,609,714			54,633
Other secured borrowings		1,676,775			2,587,217			2,701,277			26,308

		15,485,757			17,367,758			20,658,104			201,189

Trading liabilities:
Securities sold but not yet purchased		5,889,993			5,559,598			6,585,349			64,134
Derivative contracts		432,919			417,368			483,077			4,705

		6,322,912			5,976,966			7,068,426			68,839

Other liabilities:
Accrued income taxes		65,578			93,538			14,528			141
Accrued pension and severance costs		87,521			86,439			87,077			848
Other		288,362			235,888			273,026			2,659

		441,461			415,865			374,631			3,648

Long-term borrowings		2,269,583			2,385,469			2,931,390			28,549

Total liabilities		26,138,468			27,967,278			32,249,406			314,076

Commitments and contingencies (See Note 3)

Shareholders’ equity:
Common stock
Authorized - 6,000,000,000 shares Issued - 1,965,919,860 shares at December 31, 2003, March 31, 2004, and December 31, 2004		182,800			182,800			182,800			1,780


Additional paid-in capital		153,777			154,063			155,434			1,514

Retained earnings		1,494,882			1,550,231			1,600,006			15,582

Accumulated other comprehensive (loss) income
Minimum pension liability adjustment		(39,078	)		(34,221	)		(32,077	)		(312	)
Cumulative translation adjustments		(34,257	)		(34,380	)		(20,479	)		(199	)

		(73,335	)		(68,601	)		(52,556	)		(511	)

		1,758,124			1,818,493			1,885,684			18,365

Less-Common stock held in treasury, at cost - 24,203,438 shares, 24,263,831 shares, and 24,629,628 shares at December 31, 2003, March 31, 2004 and December 31, 2004, respectively		(32,693	)		(32,805	)		(33,683	)		(328	)

Total shareholders’ equity		1,725,431			1,785,688			1,852,001			18,037

Total liabilities and shareholders’ equity	¥	27,863,899		¥	29,752,966		¥	34,101,407		$	332,113

NOMURA HOLDINGS, INC.

CONSOLIDATED INFORMATION OF CASH FLOWS

(UNAUDITED)


	Millions of yen						Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended									For the Year ended March 31, 2004
	December 31, 2003			December 31, 2004			December 31, 2004			For the Year ended March 31, 2004
Cash flows from operating activities:
Net income	¥	102,417		¥	69,189		$	674		¥	172,329
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		25,481			28,226			275			33,706
(Gain) on investments in equity securities		(34,557	)		(6,399	)		(62	)		(55,888	)
Deferred income tax expense		5,989			9,445			92			1,913
Changes in operating assets and liabilities :
Time deposits		156,758			(131,180	)		(1,278	)		174,331
Deposits with stock exchanges and other segregated cash		(15,314	)		3,130			30			(7,485	)
Trading assets and private equity investments		(4,818,900	)		(1,504,352	)		(14,651	)		(4,808,112	)
Trading liabilities		2,522,744			1,026,366			9,996			2,152,243
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase		1,184,224			966,169			9,410			1,297,514
Securities borrowed, net of securities loaned		(819,184	)		(78,757	)		(767	)		(1,576,454	)
Other secured borrowings		837,076			114,060			1,111			1,747,519
Loans and receivables, net of allowance		256,938			(268,745	)		(2,617	)		135,821
Payables and deposits received		361,692			(586,823	)		(5,715	)		592,779
Accrued income taxes, net		54,725			(109,291	)		(1,064	)		80,273
Other, net		92,262			53,644			522			(18,864	)

Net cash used in operating activities		(87,649	)		(415,318	)		(4,044	)		(78,375	)

Cash flows from investing activities:
Payments for purchases of office buildings, land, equipment and facilities		(24,685	)		(37,354	)		(364	)		(39,303	)
Proceeds from sales of office buildings, land, equipment and facilities		1,033			2,459			24			1,341
Payments for purchases of investments in equity securities		(58	)		(79	)		(1	)		(61	)
Proceeds from sales of investments in equity securities		20,712			10,031			98			24,309
Decrease (increase) in non-trading debt securities, net		63,772			(26,817	)		(261	)		61,705
Decrease (increase) in other investments and other assets, net		7,588			(23,547	)		(229	)		(2,520	)

Net cash provided by (used in) investing activities		68,362			(75,307	)		(733	)		45,471

Cash flows from financing activities:
Increase in long-term borrowings		458,971			627,308			6,109			712,675
Decrease in long-term borrowings		(445,450	)		(173,653	)		(1,691	)		(551,897	)
Increase (Decrease) in short-term borrowings, net		98,420			(69,198	)		(674	)		76,982
Proceeds from sales of common stock		8,011			122			1			8,027
Payments for repurchases of common stock		(3,959	)		(413	)		(4	)		(4,084	)
Payments for cash dividends		(43,686	)		(33,992	)		(331	)		(43,686	)

Net cash provided by financing activities		72,307			350,174			3,410			198,017

Effect of exchange rate changes on cash and cash equivalents		(11,852	)		9,764			95			(18,978	)

Net increase (decrease) in cash and cash equivalents		41,168			(130,687	)		(1,272	)		146,135
Cash and cash equivalents at beginning of the period		491,237			637,372			6,207			491,237

Cash and cash equivalents at end of the period	¥	532,405		¥	506,685		$	4,935		¥	637,372

NOMURA HOLDINGS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION

(UNAUDITED)

1. Accounting policies:

The consolidated financial information herein has basically been prepared in accordance with Nomura’s accounting policies which are disclosed in the footnotes of Nomura Holdings, Inc.’s Annual Securities Report (the Annual Report filed with the Director of the Kanto Local Finance Bureau of the Ministry of Finance in Japan) and Form 20-F (the Annual Report filed with the U.S. Securities and Exchange Commission) for the year ended March 31, 2004.

2. U.S. dollar amounts:

The U.S. dollar amounts are included solely for the convenience of the reader and have been translated at the rate of ¥102.68 = US$1, the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2004. This translation should not be construed to imply that the yen amounts actually represent, or have been or could be converted into, equivalent amounts in U.S. dollars.

3. Credit and investment commitments and guarantees:

Commitments—

In connection with its banking/financing activities, Nomura has provided to counterparties through subsidiaries, commitments to extend credit, which generally have a fixed expiration date. In connection with its investment banking activities, Nomura has entered into agreements with customers under which Nomura has committed to underwrite notes that may be issued by the customers. The outstanding commitments under these agreements are included in commitments to extend credit.

Nomura has commitments to invest in various partnerships, primarily in connection with its merchant banking activities and also have commitments to provide financing for investments related to these partnerships. The outstanding commitments under these agreements are included in commitments to invest in partnerships.

Contractual amounts of these commitments were as follows:


	Millions of yen		Translation into millions of U.S. dollars		Millions of yen
	December 31, 2004		December 31, 2004		March 31, 2004
Commitments to extend credit and to invest in partnerships	¥	206,368	$	2,010	¥	160,089

Guarantees—

Nomura enters into, in the normal course of its subsidiaries’ banking/financing activities, 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 under FIN No. 45. Contractual amounts of these guarantees, other than derivative contract, for which the fair values are recorded on the consolidated balance sheets at fair value, were as follows:


	Millions of yen		Translation into millions of U.S. dollars		Millions of yen
	December 31, 2004		December 31, 2004		March 31, 2004
Standby letters of credit and other guarantees	¥	6,949	$	68	¥	29,424

4. Private equity investments:

Nomura operates private equity business through a wholly owned subsidiary, Nomura Principal Finance Co., Ltd. (“NPF”). As of December 31, 2004, the significant private equity investee by which NPF entered into agreements to acquire new shares to be issued is Millennium Retailing, Inc. (“MR”). NPF has acquired ¥20 billion of new shares issued by MR in July 2004, and will acquire additional ¥30 billion around the end of January 2005, giving NPF a majority stake.

5. Comprehensive income:


	Millions of yen					Translation into millions of U.S. dollars		Millions of yen
	For the nine months ended							For the year ended
	December 31, 2003			December 31, 2004		December 31, 2004		March 31, 2004
Net income	¥	102,417		¥	69,189	$	674	¥	172,329

Other comprehensive (loss) income, net of tax:
Change in cumulative translation adjustments		(11,928	)		13,901		135		(12,051	)
Minimum pension liability adjustment during the period		2,480			2,144		21		7,337

Total other comprehensive (loss) income, net of tax		(9,448	)		16,045		156		(4,714	)

Comprehensive income	¥	92,969		¥	85,234	$	830	¥	167,615

6. Segment Information-Operating segment:

Business segments’ results are shown in the following table.


	Millions of yen
	Domestic Retail		Global Wholesale			Asset Management			Other (Inc. elimination)			Total
Nine months ended December 31, 2003
Non-interest revenue	¥	224,680	¥	215,180		¥	25,690		¥	(13,745	)	¥	451,805
Net interest revenue		1,235		51,266			1,225			16,662			70,388

Net revenue		225,915		266,446			26,915			2,917			522,193
Non-interest expenses		166,390		169,003			26,767			7,110			369,270

Income (loss) before income taxes	¥	59,525	¥	97,443		¥	148		¥	(4,193	)	¥	152,923

Nine months ended December 31, 2004
Non-interest revenue	¥	222,387	¥	139,877		¥	31,922		¥	41,654		¥	435,840
Net interest revenue		2,364		86,433			1,088			(18,084	)		71,801

Net revenue		224,751		226,310			33,010			23,570			507,641
Non-interest expenses		163,195		167,001			26,607			17,818			374,621

Income (loss) before income taxes	¥	61,556	¥	59,309		¥	6,403		¥	5,752		¥	133,020


	Change (%)
Income (loss) before income taxes
Nine months ended December 31, 2004 vs. 2003		3.4		(39.1	)		4,226.4			—			(13.0	)


	Translation into millions of U.S. dollars
Nine months ended December 31, 2004
Non-interest revenue	$	2,166	$	1,362		$	311		$	406		$	4,245
Net interest revenue		23		842			10			(176	)		699

Net revenue		2,189		2,204			321			230			4,944
Non-interest expenses		1,590		1,626			259			174			3,649

Income (loss) before income taxes	$	599	$	578		$	62		$	56		$	1,295


	Millions of yen
Year ended March 31, 2004
Non-interest revenue	¥	304,035	¥	290,845		¥	34,300		¥	(83	)	¥	629,097
Net interest revenue		1,722		74,891			1,657			22,156			100,426

Net revenue		305,757		365,736			35,957			22,073			729,523
Non-interest expenses		226,213		227,227			37,004			13,574			504,018

Income (loss) before income taxes	¥	79,544	¥	138,509		¥	(1,047	)	¥	8,499		¥	225,505

Transactions between operating segments are recorded within segment results on commercial terms and conditions and are eliminated in the “Other” column.

The following table presents the major components of income/ (loss) before income taxes in “Other”


	Millions of yen						Translation into millions of U.S. dollars			Millions of yen
	For the nine months ended									For the year ended
	December 31, 2003			December 31, 2004			December 31, 2004			March 31, 2004
Loss on undesignated hedging instruments included in Net gain on trading	¥	(13,207	)	¥	(6,819	)	$	(66	)	¥	(12,544	)
(Loss) gain on investment securities		(449	)		7,317			71			1,590
Equity in earnings of affiliates		4,149			5,448			53			8,514
Corporate items		(9,789	)		(282	)		(3	)		(10,666	)
Others		15,103			88			1			21,605

Total	¥	(4,193	)	¥	5,752		$	56		¥	8,499

The table below presents a reconciliation of the combined segment information included in the table on the previous page to reported net revenue and income before income taxes in the consolidated income statement information.


	Millions of yen				Translation into millions of U.S. dollars		Millions of yen
	For the nine months ended						For the year ended
	December 31, 2003		December 31, 2004		December 31, 2004		March 31, 2004
Net revenue	¥	522,193	¥	507,641	$	4,944	¥	729,523
Unrealized gain on investments in equity securities held for relationship purposes		35,799		204		2		54,729
Effect of consolidation/deconsolidation of certain private equity investee companies (1)		7,013		56,812		553		18,851

Consolidated net revenue	¥	565,005	¥	564,657	$	5,499	¥	803,103

Non-interest expenses	¥	369,270	¥	374,621	$	3,649	¥	504,018
Unrealized gain on investments in equity securities held for relationship purposes		—		—		—		—
Effect of consolidation/deconsolidation of certain private equity investee companies (2)		6,553		52,171		507		16,409

Consolidated non-interest expenses	¥	375,823	¥	426,792	$	4,156	¥	520,427

Income before income taxes	¥	152,923	¥	133,020	$	1,295	¥	225,505
Unrealized gain on investments in equity securities held for relationship purposes		35,799		204		2		54,729
Effect of consolidation/deconsolidation of certain private equity investee companies		460		4,641		46		2,442

Consolidated income before income taxes	¥	189,182	¥	137,865	$	1,343	¥	282,676

(1)	These are included in Revenue-Other in the consolidated income statements.

(2)	These are included in Non interest expenses-Other in the consolidated income statements.

NOMURA HOLDINGS, INC.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

“Commissions/fees received” and “Net gain on trading” consist of the following:

Commissions/fees received


	Millions of yen				% Change	Translation into millions of U.S. dollars		Millions of yen
	For the nine months ended							For the year ended
	December 31, 2003 (A)		December 31, 2004 (B)		(B-A)/(A)	December 31, 2004		March 31, 2004
Commissions	¥	147,309	¥	161,393	9.6	$	1,572	¥	210,216

Brokerage Commissions		104,424		114,013	9.2		1,110		149,667
Commissions for Distribution of Investment Trust		26,291		29,979	14.0		292		37,345

Fees from Investment Banking		58,766		66,185	12.6		645		86,994

Underwriting and Distribution		48,233		50,998	5.7		497		71,091
M&A / Financial Advisory Fees		10,410		15,166	45.7		148		15,772

Asset Management and Portfolio Service Fees		47,549		57,317	20.5		558		66,193

Asset Management Fees		40,086		49,242	22.8		480		56,268

Total	¥	253,624	¥	284,895	12.3	$	2,775	¥	363,403

Net gain on trading


	Millions of yen				% Change		Translation into millions of U.S. dollars		Millions of yen
	For the nine months ended								For the year ended
	December 31, 2003 (A)		December 31, 2004 (B)		(B-A)/(A)		December 31, 2004		March 31, 2004
Merchant Banking	¥	1,782	¥	3,502	96.5		$	34	¥	1,548
Equity Trading		59,080		46,138	(21.9	)		449		75,232
Fixed Income and Other Trading		120,467		81,709	(32.2	)		796		152,262

Total	¥	181,329	¥	131,349	(27.6	)	$	1,279	¥	229,042

NOMURA HOLDINGS, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)


	Millions of yen
	For the three months ended
	June 30, 2003			September 30, 2003		December 31, 2003			March 31, 2004			June 30, 2004		September 30, 2004			December 31, 2004
Revenue:
Commissions	¥	33,752		¥	55,967	¥	57,590		¥	62,907		¥	69,533	¥	45,585		¥	46,275
Fees from investment banking		14,498			19,860		24,408			28,228			15,434		32,339			18,412
Asset management and portfolio service fees		13,735			17,022		16,792			18,644			18,185		19,845			19,287
Net gain on trading		80,432			67,097		33,800			47,713			53,567		23,073			54,709
(Loss) gain on private equity investments		(669	)		7,267		(2,105	)		8,645			498		(2,097	)		(2,165	)
Interest and dividends		113,844			104,036		78,333			100,657			99,192		119,848			141,052
Gain (loss) on investments in equity securities		16,168			15,601		2,788			21,331			10,271		(11,624	)		7,752
Other		8,030			6,738		5,845			20,592			25,916		20,605			27,456

Total revenue		279,790			293,588		217,451			308,717			292,596		247,574			312,778
Interest expense		79,703			78,901		67,220			70,619			78,668		90,733			118,890

Net revenue		200,087			214,687		150,231			238,098			213,928		156,841			193,888

Non-interest expenses:
Compensation and benefits		65,903			67,686		61,823			63,924			65,943		64,206			67,441
Commissions and floor brokerage		4,904			4,625		3,482			6,158			6,409		6,502			4,068
Information processing and communications		18,890			19,520		19,155			22,466			19,281		20,136			20,404
Occupancy and related depreciation		13,319			13,506		12,929			14,467			13,274		12,986			13,152
Business development expenses		4,983			5,428		5,495			7,194			5,429		7,767			6,824
Other		20,788			15,971		17,416			30,395			31,126		29,037			32,807

		128,787			126,736		120,300			144,604			141,462		140,634			144,696

Income before income taxes		71,300			87,951		29,931			93,494			72,466		16,207			49,192

Income tax expense (benefit):
Current		27,093			38,418		15,265			27,658			26,001		22,291			10,939
Deferred		5,159			1,895		(1,065	)		(4,076	)		5,633		(9,300	)		13,112

		32,252			40,313		14,200			23,582			31,634		12,991			24,051

Net income	¥	39,048		¥	47,638	¥	15,731		¥	69,912		¥	40,832	¥	3,216		¥	25,141


	Yen
Per share of common stock:
Basic-
Net income	¥	20.14		¥	24.58	¥	8.10		¥	36.01		¥	21.03	¥	1.66		¥	12.95

Diluted-
Net income	¥	20.14		¥	24.58	¥	8.10		¥	36.01		¥	21.03	¥	1.66		¥	12.94

Unconsolidated Financial Information of Major Consolidated Entities

(UNAUDITED)

The unconsolidated financial information, prepared under Japanese GAAP, is presented for the following entities;

•

Nomura Holdings, Inc. Financial Information (Parent Company Only)

•

Nomura Securities Co., Ltd. Financial Information

*	The amounts presented for December 31, 2004 are rounded whereas the amounts for March 31, 2004 and December 31, 2003 are truncated.

NOMURA HOLDINGS, INC. (PARENT COMPANY ONLY)

INCOME STATEMENT INFORMATION

(UNAUDITED)


	Millions of yen
	For the nine months ended		For the year ended March 31, 2004
	December 31, 2004	December 31, 2003	For the year ended March 31, 2004
Operating revenue	241,463	106,321	135,341
Operating expenses	67,078	69,220	95,895

Operating income	174,385	37,101	39,446

Non-operating income	2,976	1,760	2,644
Non-operating expenses	819	451	2,642

Ordinary income	176,543	38,409	39,448

Special profits	7,605	3,632	5,773
Special losses	1,608	4,060	5,067

Income before income taxes	182,540	37,982	40,155

Income taxes - current	4,389	3,048	1,859
Income taxes - deferred	2,910	3,356	4,920

Net income	175,241	31,577	33,374

Unappropriated retained earnings brought forward	8,849	4,606	4,606

Interim dividend	19,423	14,569	14,569

Unappropriated retained earnings	164,667	21,614	23,412

NOMURA HOLDINGS, INC. (PARENT COMPANY ONLY)

BALANCE SHEET INFORMATION

(UNAUDITED)


	Millions of yen
	December 31, 2004	December 31, 2003	March 31, 2004
Assets:
Current Assets	1,224,123	743,460	792,874
Fixed Assets	1,834,184	1,532,787	1,676,844

Total Assets	3,058,307	2,276,247	2,469,719

Liabilities and Shareholders’ Equity
Liabilities:
Current Liabilities	928,772	400,111	469,835
Long-term Liabilities	621,644	521,757	632,878

Total Liabilities	1,550,416	921,869	1,102,713

Total Shareholders’ Equity	1,507,891	1,354,377	1,367,005

Total Liabilities and Shareholders’ Equity	3,058,307	2,276,247	2,469,719

NOMURA SECURITIES CO., LTD.

INCOME STATEMENT INFORMATION

(UNAUDITED)


	Millions of yen
	For the nine months ended			Comparison (A-B)/(B)(%)		For the year ended March 31, 2004 (C)
	December 31, 2004 (A)	December 31, 2003 (B)		Comparison (A-B)/(B)(%)		For the year ended March 31, 2004 (C)
Operating revenue	424,889	447,850		(5.1	)	598,772

Commissions	217,793	194,609		11.9		279,936
Net gain on trading	151,303	208,907		(27.6	)	263,274
Net gain on other inventories	3	9		(63.2	)	11
Interest and dividend income	55,789	44,324		25.9		55,550

Interest expenses	48,477	40,167		20.7		51,007

Net operating revenue	376,412	407,682		(7.7	)	547,765

Selling, general and administrative expenses	245,630	241,234		1.8		328,203

Operating income	130,781	166,448		(21.4	)	219,561

Non-operating income	2,397	1,183		102.6		1,470
Non-operating expenses	871	1,317		(33.9	)	1,621

Ordinary income	132,307	166,314		(20.4	)	219,410

Special profits	313	85		265.5		—
Special losses	1,359	64		2,007.1		407

Income before income taxes	131,261	166,335		(21.1	)	219,003

Income taxes - current	44,959	72,561		(38.0	)	103,241
Income taxes - deferred	9,955	(25	)	—		(6,301	)

Net income	76,347	93,799		(18.6	)	122,063

Unappropriated retained earnings brought forward	56,256	29,862				29,862

Unappropriated retained earnings	132,603	123,662				151,925

NOMURA SECURITIES CO., LTD.

BALANCE SHEET INFORMATION

(UNAUDITED)


	Millions of yen
	December 31, 2004	December 31, 2003	March 31, 2004
Assets
Current Assets:	14,754,921	14,378,843	15,559,847

Trading Assets	7,573,522	8,340,579	8,777,900
Loans with securities as collateral	6,196,309	5,305,086	5,785,461
Other	985,090	733,177	996,485

Fixed Assets	65,445	61,195	68,323

Total Assets	14,820,366	14,440,039	15,628,170

Liabilities and Shareholder’s Equity
Liabilities
Current Liabilities:	13,528,407	13,246,521	14,389,341

Trading liabilities	3,700,368	4,446,941	4,462,680
Borrowings with securities as collateral	5,658,157	5,516,038	5,322,006
Other	4,169,882	3,283,542	4,604,654

Long-term Liabilities	555,047	466,360	483,066

Statutory Reserves	1,730	916	1,258

Total Liabilities	14,085,185	13,713,798	14,873,666

Total Shareholder’s Equity	735,182	726,241	754,504

Total Liabilities and Shareholder’s Equity	14,820,366	14,440,039	15,628,170

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

1. Commission Revenues

(1) Breakdown by Category


	(Millions of yen except percentages)

	Nine Months Ended				Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
	December 31, 2004 (A)		December 31, 2003 (B)		Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
Brokerage commissions	98,485		90,945		8.3	%	129,377

(Stocks)	(91,111	)	(83,940	)	(8.5	)	(118,033	)
Underwriting commissions	32,342		28,381		14.0		41,300

(Stocks)	(28,751	)	(25,071	)	(14.7	)	(36,752	)
(Bonds)	(3,591	)	(3,309	)	(8.5	)	(4,547	)
Distribution commissions	34,632		30,322		14.2		43,668

(Investment trust certificates)	(29,827	)	(26,151	)	(14.1	)	(37,169	)
Other commissions	52,334		44,960		16.4		65,589

(Investment trust certificates)	(21,024	)	(16,782	)	(25.3	)	(24,202	)

Total	217,793		194,609		11.9		279,936

(2) Breakdown by Product


	(Millions of yen except percentages)

	Nine Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
	December 31, 2004 (A)	December 31, 2003 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
Stocks	122,753	110,918	10.7	%	158,206
Bonds	12,882	14,996	-14.1		21,401
Investment trust certificates	57,599	49,107	17.3		71,636
Others	24,560	19,587	25.4		28,691

Total	217,793	194,609	11.9		279,936

2. Net Gain/Loss on Trading


	(Millions of yen except percentages)

	Nine Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
	December 31, 2004 (A)	December 31, 2003 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
Stocks	49,634	55,621	-10.8	%	80,757
Bonds and forex	101,669	153,285	-33.7		182,517

Total	151,303	208,907	-27.6		263,274

NOMURA SECURITIES CO., LTD.

SUPPLEMENTARY INFORMATION

(UNAUDITED)

3. Stock Trading (excluding futures transactions)


	(Millions of shares or yen except per share data and percentages)

	Nine Months Ended								Comparison (A-B)/(B)(%)				Year Ended March 31, 2004 (C)
	December 31, 2004 (A)				December 31, 2003 (B)				Comparison (A-B)/(B)(%)				Year Ended March 31, 2004 (C)
	Number of shares		Amount		Number of shares		Amount		Number of shares		Amount		Number of shares		Amount
Total	44,289		42,424,346		45,578		37,532,980		-2.8	%	13.0	%	62,667		52,236,699
(Brokerage)	31,043		27,915,904		31,584		23,692,812		-1.7		17.8		44,469		33,801,841
(Proprietary Trading)	13,246		14,508,441		13,994		13,840,167		-5.3		4.8		18,198		18,434,857
Brokerage / Total	70.1	%	65.8	%	69.3	%	63.1	%					71.0	%	64.7	%
TSE Share	6.2	%	6.9	%	6.7	%	7.1	%					6.7	%	7.1	%
Brokerage Commission per share (yen)	2.91				2.62								2.62

4. Underwriting, Subscription, and Distribution


	(Millions of shares or yen except percentages)

	Nine Months Ended		Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
	December 31, 2004 (A)	December 31, 2003 (B)	Comparison (A-B)/(B)(%)		Year Ended March 31, 2004 (C)
Underwriting
Stocks (number of shares)	219	351	-37.7	%	652
(yen amount)	753,616	533,079	41.4		775,448
Bonds (face value)	7,061,325	5,424,889	30.2		7,388,910
Investment trust certificates (yen amount)	—	—	—		—
Commercial paper and others (face value)	368,000	427,800	-14.0		504,200

Subscripition and Distribution*
Stocks (number of shares)	694	515	34.8		1,014
(yen amount)	854,866	604,633	41.4		865,546
Bonds (face value)	1,860,456	1,489,886	24.9		2,185,971
Investment trust certificates (yen amount)	10,409,834	9,935,383	4.8		13,661,810
Commercial paper and others (face value)	365,800	427,800	-14.5		504,200

*	Includes secondary offerings and private placements.

5. Capital Adequacy Ratio


		(Millions of yen except percentages)

				December 31, 2004		December 31, 2003		March 31, 2004
Tier I		(A	)	735,181		726,241		658,834
Tier II	Statutory reserves			1,730		916		1,258
	Allowance for doubtful accounts			16		118		354
	Subordinated debt			319,800		209,300		219,400
	Total	(B	)	321,546		210,334		221,013
Illiquid Asset		(C	)	214,482		69,978		82,343

Net Capital (A) + (B) - (C) =		(D	)	842,245		866,597		797,504
	Market risk			143,909		147,227		136,981
Risk	Counterparty risk			128,531		103,327		114,652
	Basic risk			93,392		93,037		94,702
	Total	(E)		365,832		343,593		346,336
Capital Adequacy Ratio		(D	)/(E)	230.2	%	252.2	%	230.2	%

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