NMR 6-K, filed Jul 29, 2020, 0001193125-20-201773

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 ExchangeAct of 1934

Commission File Number: 1-15270

For the month of July 2020

NOMURA HOLDINGS, INC.

(Translation of registrant’s name intoEnglish)

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):

Information furnished on this form:

EXHIBIT

Exhibit Number
1.		Financial Summary – Three months ended June 30, 2020.

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: July 29, 2020	By:	/s/ Go Sugiyama
		Go Sugiyama
		Senior Managing Director

Financial Summary For the Three Months Ended June 30,2020 (U.S. GAAP)

Date:		July 29, 2020
Company name (code number):		Nomura Holdings, Inc. (8604)
Stock exchange listings:		(In Japan) Tokyo, Nagoya<br><br><br>(Overseas) New York, Singapore
Representative:		Kentaro Okuda<br> <br>President and<br>Group CEO, Nomura Holdings, Inc.
For inquiries:		Junko Tago<br> <br>Executive Director,<br>Head of Investor Relations, Nomura Holdings, Inc.<br> <br>Tel: (Country Code 81) 3-5255-1000<br><br><br>URL: https://www.nomura.com

1. Consolidated Operating Results

(1) Operating Results

	(Rounded to nearest million)
	(Millions of yen, except per share data)
	For the three months ended June 30
	2019						2020
				% Change from<br> June <br>30, 2018						% Change from<br><br><br>June 30, 2019
Total revenue		511,379			18.7	%		514,049			0.5	%
Net revenue		332,001			22.1	%		460,747			38.8	%
Income before income taxes		74,806			448.3	%		181,811			143.0	%
Net income attributable to Nomura Holdings, Inc. (“NHI”) shareholders		55,833			969.0	%		142,516			155.3	%
Comprehensive income		24,625			(44.4	%)		145,005			488.9	%
Basic-Net income attributable to NHI shareholders per share (Yen)		16.83						46.77
Diluted-Net income attributable to NHI shareholders per share (Yen)		16.48						45.65
Return on shareholders’ equity-annualized		8.4	%					21.0	%

Note: Return on shareholders’ equity is a ratio of Net income attributable to NHI shareholders to Total NHI shareholders’ equity.

(2) Financial Position

	(Millions of yen, except per share data)
	At March 31			At June 30
	2020			2020
Total assets		43,999,815			41,545,394
Total equity		2,731,264			2,830,643
Total NHI shareholders’ equity		2,653,467			2,779,503
Total NHI shareholders’ equity as a percentage of total assets		6.0	%		6.7	%
Total NHI shareholders’ equity per share (Yen)		873.26			909.52

2. Cash Dividends


					(Yen amounts)
	For the year ended March 31
	2020		2021		2021 (Plan)
Dividends per share
Dividends record dates
At June 30		—		—		—
At September 30		15.00		—		Unconfirmed
At December 31		—		—		—
At March 31		5.00		—		Unconfirmed
For the year		20.00		—		Unconfirmed

Note: Fiscal year 2021 Q2 and Q4 dividends are not presented per reasons stated in “3. Earnings forecasts for the year ending March 31, 2021”.

3. Earnings Forecasts for the year ending March 31, 2021

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

Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in Specified Subsidiaries accompanying changes in scope of consolidation.)

(2) Adoption of the simplified and particular accounting treatments: None

(3) Changes in accounting policies

	a)	Changes in accounting policies due to amendments to the accounting standards : Yes
	b)	Changes in accounting policies due to other than a) : None
---	---	---

(4) Number of shares issued (common stock)

	At March 31		At June 30
	2020		2020
Number of shares outstanding (including treasury stock)		3,493,562,601		3,493,562,601
Number of treasury stock		454,975,108		437,566,092
	For the three months ended June 30
	2019		2020
Average number of shares outstanding<br>(year-to-date)		3,317,794,746		3,047,302,930

*This financial summary is not subject to certified public accountant’s or audit firm’s quarterly review.

Table of Contents for the Accompanying Materials

1. Qualitative Information of the Quarterly ConsolidatedResults			P. 2
(1) Consolidated Operating Results			P. 2
(2) Consolidated Financial Position			P. 4
(3) Consolidated Earnings Forecasts			P. 4
(4) Risks related to the COVID-19 pandemic			P. 4
2.Notes to the Summary Information			P. 5
(1) Changes in Accounting Policies			P. 5
3. Quarterly Consolidated Financial Statements			P. 5
(1) Consolidated Balance Sheets			P. 8
(2) Consolidated Statements of Income			P.10
(3) Consolidated Statements of Comprehensive Income			P.11
(4) Note with respect to the Assumption as a Going Concern			P.11
(5) Segment Information – Operating Segment			P.12
(6) Significant Changes in Equity			P.13
4. Supplementary Information			P.14
(1) Consolidated Statements of Income – Quarterly Comparatives			P.14
(2) Business Segment Information – Quarterly Comparatives			P.15
(3) Other			P.16

– 1 –

1.	Qualitative Information of the Quarterly Consolidated Results
(1)	Consolidated Operating Results
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U.S. GAAP

	Billions of yen						% Change
	For the three months ended						(B-A)/(A)
	June 30,<br>2019 (A)			June 30,<br>2020 (B)
Net revenue		332.0			460.7			38.8
Non-interest expenses		257.2			278.9			8.5

Income (loss) before income taxes		74.8			181.8			143.0
Income tax expense		17.9			37.5			109.4

Net income (loss)		56.9			144.3			153.6

Less: Net income (loss) attributable to noncontrolling interests		1.1			1.8			68.8

Net income (loss) attributable to NHI shareholders		55.8			142.5			155.3

Return on shareholders’ equity-annualized		8.4	%		21.0	%		—

Note: Return on shareholders’ equity is a ratio of Net income (loss) attributable to NHI shareholders to Total NHI shareholders’ equity.

Nomura Holdings, Inc. and its consolidated entities (collectively, “Nomura”) reported net revenue of 460.7 billion yen for the three months ended June 30, 2020, an increase of 38.8% from the same period in the prior year. Non-interest expenses increased by 8.5% from the same period in the prior year to 278.9 billion yen. Income before income taxes was 181.8 billion yen and net income attributable to NHI shareholders was 142.5 billion yen for the three months ended June 30, 2020.

Segment Information

	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30,<br>2019 (A)		June 30,<br>2020 (B)
Net revenue		334.9		458.4		36.9
Non-interest expenses		257.2		278.9		8.5

Income (loss) before income taxes		77.7		179.5		131.0

In the above segment information totals, which exclude a part of unrealized gain (loss) on investments in equity securities held for operating purposes, net revenue for the three months ended June 30, 2020 was 458.4 billion yen, an increase of 36.9% from the same period in the prior year. Non-interest expenses increased by 8.5% from the same period in the prior year to 278.9 billion yen. Income before income taxes was 179.5 billion yen for the three months ended June 30, 2020. Please refer to page 12 for further details of the differences between U.S. GAAP and business segment amounts.

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<Business Segment Results>

Operating Results of Retail

	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30,<br>2019 (A)		June 30,<br>2020 (B)
Net revenue		80.6		81.1		0.5
Non-interest expenses		72.5		66.0		(9.0	)

Income (loss) before income taxes		8.1		15.1		85.6

Net revenue increased by 0.5% from the same period in the prior year to 81.1 billion yen, primarily due to an increase in commissions received from distribution of brokerage and investment trusts. Non-interest expense decreased by 9.0% to 66.0 billion yen. As a result, income before income taxes increased by 85.6% to 15.1 billion yen.

Operating Results of Asset Management

	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30,<br>2019 (A)		June 30,<br>2020 (B)
Net revenue		34.5		34.0		(1.4	)
Non-interest expenses		16.4		14.9		(9.1	)

Income (loss) before income taxes		18.1		19.2		5.6

Net revenue decreased by 1.4% from the same period in the prior year to 34.0 billion yen. Non-interest expense decreased by 9.1% to 14.9 billion yen. As a result, income before income taxes increased by 5.6% to 19.2 billion yen. Assets under management were 54.5 trillion yen as of June 30, 2020.

Operating Results of Wholesale

	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30,<br>2019 (A)		June 30,<br>2020 (B)
Net revenue		159.5		248.7		55.9
Non-interest expenses		139.5		160.8		15.3

Income (loss) before income taxes		20.0		87.9		339.2

Net revenue increased by 55.9% from the same period in the prior year to 248.7 billion yen. Non-interest expense increased by 15.3% to 160.8 billion yen. As a result, income before income taxes was 87.9 billion yen.

– 3 –

Other Operating Results

	Billions of yen				% Change
	For the three months ended				(B-A)/(A)
	June 30,<br>2019 (A)		June 30,<br>2020 (B)
Net revenue		60.3		94.7		57.0
Non-interest expenses		28.8		37.3		29.2

Income (loss) before income taxes		31.5		57.4		82.5

Net revenue was 94.7 billion yen, mainly due to the recognition of 71.1 billion yen profit resulting from the rights conversion related to the Tokyo Nihonbashi district redevelopment project. Income before income taxes was 57.4 billion yen.

(2)	Consolidated Financial Position

Total assets as of June 30, 2020 were 41,545.4 billion yen, a decrease of 2,454.4 billion yen compared to March 31, 2020, mainly due to the decrease in Securities purchased underagreements to resell. Total liabilities as of June 30, 2020 were 38,714.8 billion yen, a decrease of 2,553.8 billion yen compared to March 31, 2020, mainly due to the decrease in Securities sold under agreements torepurchase. Total equity as of June 30, 2020 was 2,830.6 billion yen, an increase of 99.4 billion yen compared to March 31, 2020.

(3)	Consolidated Earnings Forecasts

(4)	Risks related to the COVID-19 pandemic

The COVID-19 pandemic has affected Nomura’s business, and this may continue in the future.

Various risks recognized related to the COVID-19 pandemic is disclosed in Risk Factors in Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 30, 2020) and Item 3. D. Risk Factors. in Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 30, 2020) for the year ended March 31, 2020.

– 4 –

2.	Notes to the Summary Information
(1)	Changes in Accounting Policies
---	---

Measurement of Credit Losses on Financial Instruments

On April 1, 2020, Nomura adopted Accounting Standards Update 2016-13 “Measurement of Credit Losses on Financial Instruments” using a modified retrospective transition method. The impact of this adoption was, for financial instruments subject to current expected credit losses, ¥1,972 million increase in Allowance for doubtful accounts, ¥638 million increase in Other liabilities, ¥72 million increase of Deferred tax assets and cumulative effect adjustment to decrease Retained earnings, net of tax, of ¥2,538 million as of April 1, 2020.

For financial instruments elected for the fair value option, the impact was ¥9,774 million decrease in Loans receivable, ¥5,888 million increase in Other liabilities and cumulative effect adjustment to decrease Retained earnings, net of tax, of ¥15,662 million as of April 1, 2020.

3.	Quarterly Consolidated Financial Statements

The quarterly consolidated financial information herein has been prepared in accordance with Nomura’s accounting policies which are disclosed in the notes to the consolidated financial statements of Nomura Holdings, Inc.’s Annual Securities Report (the annual report filed in Japan on June 30, 2020) and Form 20-F (the annual report filed with the U.S. Securities and Exchange Commission on June 30, 2020) for the year ended March 31, 2020.

The following table summarizes critical accounting policies within our quarterly consolidated financial statements, the critical accounting estimates inherent within application of those policies, the nature of the estimates, the underlying assumptions made by management used to derive those estimates and how the COVID-19 pandemic, has and is expected to continue to impact these estimates.

– 5 –

Critical<br><br><br>accounting<br><br><br>policy	Critical accounting<br><br><br>estimates	Underlying subjective key<br> <br>assumptions by<br> <br>management	Impact of the COVID-19<br><br><br>pandemic
Fair value of financial instruments	Estimating fair value for financial instruments	• Election of appropriate valuation techniques<br><br><br><br> <br>• Principal markets are<br>active or inactive<br> <br><br><br><br>• Significance of level 3 inputs	• Dislocated financial markets as a result of the<br>COVID-19 pandemic has increased market volatility and reduced price transparency for certain financial instruments.<br> <br><br><br><br>• Updates to inputs used to determine fair value of financial instruments.
Allowances for doubtful accounts	Determination of whether loans, other receivables and loan commitments are impaired and measurement of<br>impairment losses	• Ability of borrowers to pay in accordance with contractual terms of the financial<br>instruments<br> <br><br><br><br>• Future cash flows for impaired loans where impairment measurement using a discounted cash<br>flow method<br> <br><br><br><br>• Fair value of collateral in impaired collateral dependent loans	• Ability of borrowers to pay increasingly subjective as has required consideration both to pay<br>in the short-term while governments imposed lockdowns and similar restrictions on trading, and in the longer-term once the restrictions were lifted and economies were expected to improve.<br><br><br><br> <br>• Estimating future cash<br>flows increasingly subjective due to uncertainty in future performance of borrowers.<br> <br><br><br><br>• Estimating fair value increasingly subjective due to dislocated financial and non-financial markets.
Goodwill and intangible assets	Determination of whether goodwill and intangible assets are impaired and measurement of any impairment<br>loss.	• Identifying impairment indicators which trigger an impairment test<br><br><br><br> <br>• Inputs to the fair value<br>of reporting units which include goodwill and fair value of indefinite-life intangibles<br> <br><br><br><br>• Future cash flows for recoverability of finite-lived intangible assets	• The COVID -19 pandemic was not considered an impairment indicator for goodwill and finite-lived intangible assets during the first quarter ended June 30, 2020. No impairment testing of the relevant asset was<br>required.
Equity method investees	Determination of whether equity method investees are impaired.	• When a decline in the share price of<br>listed equity method investees below carrying value is other-than-temporary	• As a result of significant movements in global equity markets due to the COVID-19 pandemic, we assessed and concluded no other-than-temporary impairment losses were required to be recognized for the first quarter ended June 30, 2020.

– 6 –

Critical<br><br><br>accounting<br><br><br>policy		Critical accounting<br><br><br>estimates		Underlying subjective key<br> <br>assumptions by<br> <br>management		Impact of the COVID-19<br><br><br>pandemic
Litigation provisions		Determination of whether a loss is probable and measurement of provisions		• Likelihood of eventual loss and ability to appeal or recover the loss from other<br>parties<br> <br><br><br><br>• Management appetite to settle the matter<br><br><br><br> <br>• Loss amounts when claims<br>are substantial, indeterminate or at an early stage		• While the COVID-19 pandemic has delayed the potential resolution of certain litigation matters, it has not had a direct significant impact on our litigation provisions as of June 30, 2020.
Income taxes		Realization of deferred tax assets		• Future profitability of Nomura entities<br><br><br><br> <br>• Interpretation of tax<br>rules by courts and regulatory authorities and tax examinations by taxing authorities<br> <br><br><br><br>• Weighting of positive and negative evidence around the likelihood that sufficient future<br>taxable income will be generated to realize deferred tax assets in the relevant tax jurisdiction		• Although<br>estimating future taxable income was increasingly subjective due to uncertainty in future profitability of Nomura, it did not result in a significant impact on our determination of realization of deferred tax assets as of June 30,<br>2020.

– 7 –

(1)	Consolidated Balance Sheets
						Millions of yen
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
						March 31,<br>2020				June 30,<br>2020				Increase/<br>(Decrease)
ASSETS
Cash and cash deposits:
Cash and cash equivalents							3,191,889				3,354,793				162,904
Time deposits							309,373				179,486				(129,887	)
Deposits with stock exchanges and other segregated cash							373,686				555,106				181,420

Total cash and cash deposits							3,874,948				4,089,385				214,437

Loans and receivables:
Loans receivable							2,857,405				2,478,897				(378,508	)
Receivables from customers							541,284				352,756				(188,528	)
Receivables from other than customers							1,731,236				1,136,206				(595,030	)
Allowance for doubtful accounts							(13,012	)			(12,354	)			658

Total loans and receivables							5,116,913				3,955,505				(1,161,408	)

Collateralized agreements:
Securities purchased under agreements to resell							12,377,315				10,989,037				(1,388,278	)
Securities borrowed							3,529,797				3,436,806				(92,991	)

Total collateralized agreements							15,907,112				14,425,843				(1,481,269	)

Trading assets and private equity and debt investments:
Trading assets*							16,853,822				16,698,157				(155,665	)
Private equity and debt investments*							44,278				43,012				(1,266	)

Total trading assets and private equity and debt investments							16,898,100				16,741,169				(156,931	)

Other assets:
Office buildings, land, equipment and facilities<br><br><br>(net of accumulated depreciation and amortization of<br>¥397,114 million as of March 31, 2020<br>and<br>¥387,199 million as of June 30, 2020)							440,512				433,106				(7,406	)
Non-trading debt securities*							455,392				431,590				(23,802	)
Investments in equity securities*							112,175				111,388				(787	)
Investments in and advances to affiliated companies*							367,641				390,054				22,413
Other							827,022				967,354				140,332

Total other assets							2,202,742				2,333,492				130,750

Total assets							43,999,815				41,545,394				(2,454,421	)

*	Including securities pledged as collateral
---	---

– 8 –

			Millions of yen
			March 31,<br>2020			June 30,<br>2020			Increase/<br>(Decrease)
LIABILITIES AND EQUITY
Short-term borrowings				1,486,733			1,392,377			(94,356	)
Payables and deposits:
Payables to customers				1,467,434			1,267,015			(200,419	)
Payables to other than customers				1,653,495			1,205,137			(448,358	)
Deposits received at banks				1,276,153			1,105,098			(171,055	)

Total payables and deposits				4,397,082			3,577,250			(819,832	)

Collateralized financing:
Securities sold under agreements to repurchase				16,349,182			14,790,152			(1,559,030	)
Securities loaned				961,446			1,058,702			97,256
Other secured borrowings				717,711			363,224			(354,487	)

Total collateralized financing				18,028,339			16,212,078			(1,816,261	)

Trading liabilities				8,546,284			8,679,798			133,514
Other liabilities				1,034,448			1,019,940			(14,508	)
Long-term borrowings				7,775,665			7,833,308			57,643

Total liabilities				41,268,551			38,714,751			(2,553,800	)

Equity
NHI shareholders’ equity:
Common stock
Authorized	-	6,000,000,000 shares
Issued	-	3,493,562,601 shares as of March 31, 2020 and<br> <br>3,493,562,601 shares as of June 30, 2020
Outstanding	-	3,038,587,493 shares as of March 31, 2020 and<br> <br>3,055,996,509 shares as of June 30, 2020		594,493			594,493			—
Additional paid-in capital				683,232			676,040			(7,192	)
Retained earnings				1,645,451			1,769,225			123,774
Accumulated other comprehensive income (loss)				(26,105	)		(25,973	)		132

Total NHI shareholders’ equity before treasury stock				2,897,071			3,013,785			116,714
Common stock held in treasury, at cost -
454,975,108 shares as of March 31, 2020 and
437,566,092 shares as of June 30, 2020				(243,604	)		(234,282	)		9,322

Total NHI shareholders’ equity				2,653,467			2,779,503			126,036

Noncontrolling interests				77,797			51,140			(26,657	)

Total equity				2,731,264			2,830,643			99,379

Total liabilities and equity				43,999,815			41,545,394			(2,454,421	)

– 9 –

(2)	Consolidated Statements of Income

---	---	---	---	---	---	---	---	---	---	---	---	---
		Millions of yen								% Change
		For the three months ended								(B-A)/(A)
		June 30,<br>2019(A)				June 30,<br>2020(B)
Revenue:
Commissions			68,200				85,512				25.4
Fees from investment banking			27,311				10,828				(60.4	)
Asset management and portfolio service fees			59,963				53,656				(10.5	)
Net gain on trading			112,825				139,089				23.3
Gain on private equity and debt investments			791				1,070				35.3
Interest and dividends			199,473				106,543				(46.6	)
Gain (loss) on investments in equity securities			(2,838	)			3,473				—
Other			45,654				113,878				149.4

Total revenue			511,379				514,049				0.5
Interest expense			179,378				53,302				(70.3	)

Net revenue			332,001				460,747				38.8

Non-interest expenses:
Compensation and benefits			125,102				138,297				10.5
Commissions and floor brokerage			24,551				28,511				16.1
Information processing and communications			41,757				43,238				3.5
Occupancy and related depreciation			19,120				17,058				(10.8	)
Business development expenses			7,828				2,832				(63.8	)
Other			38,837				49,000				26.2

Total non-interest expenses			257,195				278,936				8.5

Income before income taxes			74,806				181,811				143.0
Income tax expense			17,917				37,513				109.4

Net income			56,889				144,298				153.6

Less: Net income attributable to noncontrolling interests			1,056				1,782				68.8

Net income attributable to NHI shareholders			55,833				142,516				155.3

Per share of common stock:
		Yen								% Change
Basic-
Net income attributable to NHI shareholders per share			16.83				46.77				177.9

Diluted-
Net income attributable to NHI shareholders per share			16.48				45.65				177.0

– 10 –

(3)	Consolidated Statements of Comprehensive Income

---	---	---	---	---	---	---	---	---	---	---	---	---
		Millions of yen								% Change
		For the three months ended								(B-A)/(A)
		June 30,<br>2019(A)				June 30,<br>2020(B)
Net income			56,889				144,298				153.6
Other comprehensive income (loss):
Cumulative translation adjustments:
Cumulative translation adjustments			(32,846	)			(95	)			—
Deferred income taxes			311				(14	)			—

Total			(32,535	)			(109	)			—

Defined benefit pension plans:
Pension liability adjustment			649				2,807				332.5
Deferred income taxes			1,598				(499	)			—

Total			2,247				2,308				2.7

Own Credit Adjustments:
Own Credit Adjustments			(1,726	)			603				—
Deferred income taxes			(250	)			(2,095	)			—

Total			(1,976	)			(1,492	)			—

Total other comprehensive income (loss)			(32,264	)			707				—

Comprehensive income			24,625				145,005				488.9
Less: Comprehensive income attributable to noncontrolling interests			197				2,357				—

Comprehensive income attributable to NHI shareholders			24,428				142,648				484.0

(4)	Note with respect to the Assumption as a Going Concern
---	---

Not applicable.

– 11 –

(5)	Segment Information – Operating Segment

The following table shows business segment information and reconciliation items to the consolidated statements of income.


		Millions of yen					% Change
		For the three months ended					(B-A)/(A)
		June 30,<br>2019 (A)			June 30,<br>2020 (B)
Net revenue
Business segment information:
Retail			80,640			81,078		0.5
Asset Management			34,500			34,024		(1.4	)
Wholesale			159,486			248,669		55.9

Subtotal			274,626			363,771		32.5
Other			60,289			94,673		57.0

Net revenue			334,915			458,444		36.9

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes			(2,914	)		2,303		—

Net revenue			332,001			460,747		38.8

Non-interest expenses
Business segment information:
Retail			72,522			66,009		(9.0	)
Asset Management			16,358			14,870		(9.1	)
Wholesale			139,479			160,800		15.3

Subtotal			228,359			241,679		5.8
Other			28,836			37,257		29.2

Non-interest expenses			257,195			278,936		8.5

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes			—			—		—

Non-interest expenses			257,195			278,936		8.5

Income (loss) before income taxes
Business segment information:
Retail			8,118			15,069		85.6
Asset Management			18,142			19,154		5.6
Wholesale			20,007			87,869		339.2

Subtotal			46,267			122,092		163.9
Other*			31,453			57,416		82.5

Income (loss) before income taxes			77,720			179,508		131.0

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes			(2,914	)		2,303		—

Income (loss) before income taxes			74,806			181,811		143.0

*	Major components
---	---

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

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


	Millions of yen					% Change
	For the three months ended
	June 30,<br>2019 (A)		June 30,<br>2020 (B)			(B-A)/(A)
Net gain (loss) related to economic hedging transactions		12,794		5,577			(56.4	)
Realized gain (loss) on investments in equity securities held for operating purposes		76		685			801.3
Equity in earnings of affiliates		8,265		6,609			(20.0	)
Corporate items		1,391		45,090			—
Other		8,927		(545	)		—

Total		31,453		57,416			82.5

– 12 –

(6)	Significant Changes in Equity

Not applicable. For further details of the changes, please refer below.

		Millions of yen
		For the three months ended<br>June 30, 2020
Common stock
Balance at beginning of year			594,493

Balance at end of period			594,493

Additional paid-in capital
Balance at beginning of year			683,232
Stock-based compensation awards			(8,314	)
Changes in an affiliated company’s interests in its subsidiary			1,122

Balance at end of period			676,040

Retained earnings
Balance at beginning of year			1,645,451
Cumulative effect of change in accounting principle (1)			(18,200	)
Net income attributable to NHI shareholders			142,516
Gain (loss) on sales of treasury stock			(542	)

Balance at end of period			1,769,225

Accumulated other comprehensive income (loss)
Cumulative translation adjustments
Balance at beginning of year			(26,274	)
Net change during the period			(684	)

Balance at end of period			(26,958	)

Defined benefit pension plans
Balance at beginning of year			(62,571	)
Pension liability adjustment			2,308

Balance at end of period			(60,263	)

Own credit adjustments
Balance at beginning of year			62,740
Own credit adjustments			(1,492	)

Balance at end of period			61,248

Balance at end of period			(25,973	)

Common stock held in treasury
Balance at beginning of year			(243,604	)
Repurchases of common stock			(1	)
Sale of common stock			0
Common stock issued to employees			9,323

Balance at end of period			(234,282	)

Total NHI shareholders’ equity

Balance at end of period			2,779,503

Noncontrolling interests
Balance at beginning of year			77,797
Net change during the period			(26,657	)

Balance at end of period			51,140

Total equity

Balance at end of period			2,830,643

(1)	Represents the adjustment to initially apply Accounting Standards Update 2016-13 “Measurement of<br>Credit Losses on Financial Instruments”, please refer to section “2. Notes to the Summary Information (1) Changes in Accounting Policies.”
---	---

– 13 –

4.	Supplementary Information
(1)	Consolidated Statements of Income – Quarterly Comparatives
---	---
		Millions of yen																				% Change				Millions of yen
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		For the three months ended																				(B-A)/(A)				For the year <br>ended<br>March 31,<br>2020
		June 30,<br>2019				September 30,<br>2019				December 31,<br>2019				March 31,<br>2020(A)				June 30,<br>2020(B)
Revenue:
Commissions			68,200				65,254				79,289				96,062				85,512				(11.0	)			308,805
Fees from investment banking			27,311				22,265				26,803				26,843				10,828				(59.7	)			103,222
Asset management and portfolio service fees			59,963				59,926				61,020				57,293				53,656				(6.3	)			238,202
Net gain on trading			112,825				105,609				109,266				28,909				139,089				381.1				356,609
Gain (loss) on private equity and debt investments			791				981				1,503				(3,368	)			1,070				—				(93	)
Interest and dividends			199,473				215,881				203,050				176,068				106,543				(39.5	)			794,472
Gain (loss) on investments in equity securities			(2,838	)			2,083				2,243				(16,214	)			3,473				—				(14,726	)
Other			45,654				101,905				14,276				4,156				113,878				—				165,991

Total revenue			511,379				573,904				497,450				369,749				514,049				39.0				1,952,482
Interest expense			179,378				190,524				162,472				132,279				53,302				(59.7	)			664,653

Net revenue			332,001				383,380				334,978				237,470				460,747				94.0				1,287,829

Non-interest expenses:
Compensation and benefits			125,102				120,425				128,987				104,906				138,297				31.8				479,420
Commissions and floor brokerage			24,551				25,446				24,568				31,558				28,511				(9.7	)			106,123
Information processing and communications			41,757				42,361				42,821				43,378				43,238				(0.3	)			170,317
Occupancy and related depreciation			19,120				18,360				16,276				19,230				17,058				(11.3	)			72,986
Business development expenses			7,828				7,906				8,509				7,642				2,832				(62.9	)			31,885
Other			38,837				40,396				44,130				55,474				49,000				(11.7	)			178,837

Total non-interest expenses			257,195				254,894				265,291				262,188				278,936				6.4				1,039,568

Income (loss) before income taxes			74,806				128,486				69,687				(24,718	)			181,811				—				248,261
Income tax expense			17,917				(11,875	)			10,337				12,515				37,513				199.7				28,894

Net income (loss)			56,889				140,361				59,350				(37,233	)			144,298				—				219,367

Less: Net income (loss) attributable to noncontrolling interests			1,056				1,787				2,284				(2,758	)			1,782				—				2,369

Net income (loss) attributable to NHI shareholders			55,833				138,574				57,066				(34,475	)			142,516				—				216,998

		Yen																				% Change				Yen
Per share of common stock:
Basic-
Net income (loss) attributable to NHI shareholders per share			16.83				42.11				18.07				(11.29	)			46.77				—				67.76

Diluted-
Net income (loss) attributable to NHI shareholders per share			16.48				41.23				17.63				(11.31	)			45.65				—				66.20

– 14 –

(2)	Business Segment Information – Quarterly Comparatives

The following table shows quarterly business segment information and reconciliation items to the consolidated statements of income.

		Millions of yen													% Change			Millions of yen
		For the three months ended																For the year ended
		June 30,<br>2019			September 30,<br>2019		December 31,<br>2019			March 31,<br>2020(A)			June 30,<br>2020(B)		(B-A)/(A)			March 31,<br>2020
Net revenue
Business segment information:
Retail			80,640			76,882		90,043			88,794			81,078		(8.7	)		336,359
Asset Management			34,500			25,676		25,405			7,024			34,024		384.4			92,605
Wholesale			159,486			156,698		186,527			145,908			248,669		70.4			648,619

Subtotal			274,626			259,256		301,975			241,726			363,771		50.5			1,077,583
Other			60,289			123,295		35,695			12,294			94,673		670.1			231,573

Net revenue			334,915			382,551		337,670			254,020			458,444		80.5			1,309,156

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes			(2,914	)		829		(2,692	)		(16,550	)		2,303		—			D21,327

Net revenue			332,001			383,380		334,978			237,470			460,747		94.0			1,287,829

Non-interest expenses
Business segment information:
Retail			72,522			71,621		72,403			70,380			66,009		(6.2	)		286,926
Asset Management			16,358			15,630		16,085			15,760			14,870		(5.6	)		63,833
Wholesale			139,479			137,777		143,324			135,819			160,800		18.4			556,399

Subtotal			228,359			225,028		231,812			221,959			241,679		8.9			907,158
Other			28,836			29,866		33,479			40,229			37,257		(7.4	)		132,410

Non-interest expenses			257,195			254,894		265,291			262,188			278,936		6.4			1,039,568

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes			—			—		—			—			—		—			—

Non-interest expenses			257,195			254,894		265,291			262,188			278,936		6.4			1,039,568

Income (loss) before income taxes
Business segment information:
Retail			8,118			5,261		17,640			18,414			15,069		(18.2	)		49,433
Asset Management			18,142			10,046		9,320			(8,736	)		19,154		—			28,772
Wholesale			20,007			18,921		43,203			10,089			87,869		770.9			92,220

Subtotal			46,267			34,228		70,163			19,767			122,092		517.7			170,425
Other*			31,453			93,429		2,216			(27,935	)		57,416		—			99,163

Income (loss) before income taxes			77,720			127,657		72,379			(8,168	)		179,508		—			269,588

Reconciliation items:
Unrealized gain (loss) on investments in equity securities held for operating purposes			(2,914	)		829		(2,692	)		(16,550	)		2,303		—			D21,327

Income (loss) before income taxes			74,806			128,486		69,687			(24,718	)		181,811		—			248,261

*	Major components
---	---

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

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

	Millions of yen														% Change			Millions of yen
	For the three months ended														(B-A)/(A)			For the year <br>ended<br>March 31,<br>2020
	June 30,<br>2019		September 30,<br>2019			December 31,<br>2019			March 31,<br>2020(A)			June 30,<br>2020(B)
Net gain (loss) related to economic hedging transactions		12,794		7,043			2,333			(4,622	)		5,577			—			17,548
Realized gain (loss) on investments in equity securities held for operating purposes		76		1,254			4,935			336			685			103.9			6,601
Equity in earnings of affiliates		8,265		8,009			4,798			13,918			6,609			(52.5	)		34,990
Corporate items		1,391		(4,635	)		(9,095	)		(9,901	)		45,090			—			D22,240
Other		8,927		81,758			(755	)		(27,666	)		(545	)		—			62,264

Total		31,453		93,429			2,216			(27,935	)		57,416			—			99,163

– 15 –

(3)	Other

Quarterly financial information for Nomura Securities Co., Ltd. can be found at the following URL.

https://www.nomuraholdings.com/company/group/nsc/pdf/2021_1q.pdf

– 16 –

Nomura Holdings Inc 6-K, filed Jul 29, 2020

About this 6-K

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