Q1 2025 Nomura Holdings Inc Earnings Call

Operator: Diffired Confidence Call. Please be reminded that today's Confidence Call is being recorded after the request of the hosting company.

Operator: Nishikawa, Masao Muraki, Koichi Niwa, Natsumu Tsujino, Takumi Kitamura, Nomura Holdings Please be reminded that today's conference call is being recorded at the request of the hosting company. Should you have any objections, you may disconnect at this point in time. During the presentation, all the telephone lines are placed in listen-only mode.

Please be reminded that today's conference call is being recorded at the request of the hosting company should you have any objections you may disconnect at this point in time.

Operator: To do have any objections, you may disconnect at this point in time. During the presentation, all the telephone lines are placed in listen-only mode. That question and answer session will be held after the presentation.

During the presentation all the telephone lines are placed for leasing only mode.

John the answer session will be held after the presentation.

Operator: Please note that this telephone conference contains Saturn for the looking segment and other projected results, which involve Nomura and Arnon with delays, uncertainties, and other factors not under the company's control, which may cause after result performance or achievement of the company to be materially different from the results, performance, or other expectations implied by those projections. Such factors include economic and market conditions, political events and the investment sentiment, liquidity of secondary market, labor and volatility of interest rates, currency exchange rates, security valuations, competitive conditions and side number and timing of transactions.

Operator: The question and answer session will be held after the presentation. Please note that this telephone conference contains certain forward-looking statements and other projected results that involve known and unknown risks, delays, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievement of the company to be materially different from the results, performance, or other expectations implied by those projections. Such factors include economic and market conditions, political events and investor sentiment, liquidity of secondary markets, the level and volatility of interest rates, currency exchange rates, security valuations, competitive conditions, and the size, number, and timing of transactions. With that, we would like to begin the conference.

Speaker Change: Please note that this telephone conference contains certain forward looking statement and other project at rethought, which involve known and unknown risks delays uncertainties and other factors not under the company's control, which may cause actual results.

John: With a full month well achievement over the company to be materially different from the results by four months, well I thought expectations implied by adults protections.

John: Such factors include economy and market conditions political ebay, sending this sentiment liquidity of secondary markets neighborhood on the volatility of interest rates, calling C exchange rates take you a T valuations competitive conditions and.

Speaker Change: Hi, it's number and timing of the transaction.

Operator: With that, we would like to begin the conference.

Takumi Kitamura: Mr. Takumi Kitamura, Chief Financial Officer, please go ahead. Good evening, this is Takumi Kitamura, CFO of Nomura Holdings. I will now give you an overview of our financial results for the first quarter of the fiscal year ending March 2025. Please turn to page 2.

Speaker Change: With that we'd like to begin the conference Mr. How can they kitamura Chief financial Officer.

Takumi Kitamura: Mr. Takumi Kitamura, Chief Financial Officer, please go ahead. Good evening. This is Takumi Kitamura, CFO of Nomura Hldgs. I will now give you an overview of our financial results for the first quarter of the fiscal year ending March 2025. EBS was 22.36 yen and analyzed our E8.1 percent. These results make a good start in a journey toward achieving our 2030 numerical target to consistently achieve R.A.E. of 8 to 10 percent or more, as announced at our investor day in May. As shown on the bottom right, three-segment income before income taxes increased 12 percent to 86.6 billion yen.

Speaker Change: Please go ahead.

Takumi Kitamura: Good evening. This is takumi kitamura CFO of Nomura Holdings I will now give you an overview of our financial results for the first quarter of the fiscal year ending March 2025. Please turn to page two goodbye net revenue came in at 454.4 billion up 2% over last quarter pre tax income grew 12%.

Takumi Kitamura: Group-wide net revenue came in at $454.4 billion, up 2% over last quarter. Pre-tax income grew 12% to $102.9 billion, while net income was $68.9 billion, an increase of 21% compared to last quarter. As you can see on the upper right, our earnings momentum has continued for five consecutive quarters.

Takumi Kitamura: Sent to $102 9 billion, while net income was $68 9 billion, an increase of 21% compared to last quarter. As you can see on the upper right. Our earnings momentum has continued for five consecutive quarters EPS was 22.36 yen and annualize that our own E. Eight 1%. These results make a good start.

Takumi Kitamura: EPS was 22.36 yen and annualized ROE 8.1%. These results make a good start in our journey toward achieving our 2030 numerical target to consistently achieve ROE of 8% to 10% or more, as announced at our investor day in May. While wholesale income before income taxes edged up slightly quarter-on-quarter, we further diversified our revenue sources as spread products such as securitized products and credit had a strong quarter, and equities remained robust. Next, we'll look at the performance of each business, starting with wealth management on page 5. All percentages quoted from now on refer to quarter-on-quarter comparisons.

Takumi Kitamura: In our journey towards achieving our 2013 numerical target to consistently achieve our ROE of 8% to 10% or more as announced at our Investor day in May as shown on the bottom right. Three segment income before income taxes increased 12% to 86.6 billion yen wealth management and investment management software.

Takumi Kitamura: Wealth management and investment management felt client assets continued to grow on the back of inflows, while stable recurring revenue and business revenue reached all time highs. We are making steady progress in expanding our stable businesses, as announced at our investor day. While wholesale income before income taxes is just slightly quarter on quarter, we further diversified our revenue sources as spread products such as secured as products and credit had a strong quarter, and equities remained robust. Next, let's look at the performance of each business, starting with wealth management on page five. All percentages quoted from now on referred to quarter-on-quarter comparisons.

Takumi Kitamura: Assets continue to grow on the back of inflows, while stable recurring revenue and business revenue reached all time highs, we are making steady progress in expanding our stable businesses as announced at our Investor day.

Takumi Kitamura: Yeah.

Takumi Kitamura: Well wholesale income before income taxes is up slightly quarter on quarter. We further diversified our revenue sources as spread products, such as securitized products and credit had a strong quarter in equities remained robust next let's look at the performance of each business starting with wealth management on page five.

Takumi Kitamura: All percentages quoted from no odd referred to quarter on quarter comparisons.

Takumi Kitamura: Management first quarter net revenue increased 5 percent to 114 billion yen, and income before income taxes gained 9 percent to 42.3 billion, representing the highest levels in nine years since fiscal year 2015, 2016, first quarter. Thanks to our large scale reorganization last spring and the further deepening of our segment-based approach, we were able to deliver results as the mindset of our clients and to go a major shift from savings to investment. In contrast to the relentless rally in Nikkei last quarter, the market remained range-bound throughout this quarter; yet we were able to deliver higher revenues compared to the strong prior quarter in each segment by offering services aligned to client needs.

Takumi Kitamura: Wealth management first quarter net revenue increased 5% to 114 billion yen and income before income taxes gained 9% to 42.3 billion, representing the highest levels in nine years since fiscal year 2015-2016 first quarter. We were able to deliver results as the mindset of our clients underwent a major shift from savings to investment. In contrast to the relentless rally in the Nikkei last quarter, the market remained range-bound throughout this quarter, yet we were able to deliver higher revenues compared to the strong prior quarter in each segment by offering services aligned to client needs.

Takumi Kitamura: Wealth management first quarter net revenue increased 5% to 114 billion and income before income taxes gained 9% to 42.3 billion representing the highest levels in nine years since fiscal year 2015, 2016 first quarter next door.

Takumi Kitamura: Large scale reorganization last spring and the further deepening of our segment based approach we were able to deliver results as the mindset of our clients undergo a major shift from savings to investment.

Speaker Change: In contrast to the relentless rally in Nikkei last quarter. The market remained range bound throughout this quarter, yet we were able to deliver higher revenues compared to the strong.

Speaker Change: Prior quarter in each segment by offering services aligned to client needs. We made progress in our asset management recurring revenue businesses with recurring revenue at record high of 45.8 billion as we grow revenues, we kept expenses down, particularly eerie non personnel expenses, resulting in a higher recurring revenue.

Takumi Kitamura: We made progress in our asset management recurring revenue businesses, with recurring revenue at a record high of 45.8 billion. As we grew revenues, we kept expenses down, particularly non-personal expenses, resulting in a higher recurring revenue cost coverage ratio of 64%. Please turn to page 6 for an update on total sales by product. Sales of stocks were strong at 4.8 trillion, including 1 trillion yen from a tender offer.

Takumi Kitamura: We made progress in our asset management recurring revenue businesses, with recurring revenue at record high of 45.8 billion. As we grow revenues, we kept expenses down, particularly non-personal expenses, resulting in a higher recurring revenue cost coverage ratio of 64 percent.

Speaker Change: <unk> coverage ratio of 64%. Please turn to page six for an update on total sales by product.

Takumi Kitamura: That excludes sales of secondary stocks sold. Total sales increased 9% to 6.8 billion yen. Sales of investment trusts were up 27%, and discretionary investment contracts grew by 16%. Sales of insurance products increased by 38%.

Takumi Kitamura: Please try to pay 6 for an update on total sales by product. Sales of stocks were strong at 4.8 trillion, including 1 trillion yen from a tender offer. That excluded sales of secondary stocks slowed. Total sales increased 9% to 6.8 billion yen. Sales of investment trusts were up 27%, and a discretionary investment contracts grew by 16%. Sales of insurance products increased by 38%. This underscores sound strong growth in sales of products and services; were proposals and advice from sales partners, leads to transactions. KPI on page 7 are trending smoothly, as shown on the top left. Inflows of recurring revenue assets were 387.9 billion, representing a solid stock towards achieving our annual target of 800 billion. Recurring revenue assets shown on the right were at record high of 24.3 trillion.

Speaker Change: Sales of stocks were strong at $4 eight trillion, including one trillion yen from a tender offer.

Speaker Change: That excluded sales of secondary stocks slowed.

Speaker Change: Yeah.

Speaker Change: Total sales increased 9% to $6 8 billion yen sales of investment trusts or up 27% and discretionary investment contracts grew by 16% sales of insurance products increased by 38%. This underscores sound strong growth in sales of products and services where prefer.

Takumi Kitamura: This underscores sound, strong growth in sales of products and services, where proposals and advice from sales partners lead to transactions. KPI on page 7 are trending smoothly, as shown on the top left. Net inflows of recurring revenue assets were 387.9 billion, representing a solid start towards achieving our annual target of 800 billion. Recurring revenue assets, shown on the right, were at a record high of 24.3 trillion. The number of workplace services provided, shown on the bottom right, was 3.73 million, an extra 100,000 compared to the end of March.

Speaker Change: Hosel fan advise from sales partners leads to transactions keep your eye on page seven are trending swiftly as shown at the top left net inflows have recurring revenue assets were 387.9 billion, representing a solid start towards achieving our annual target of 800 billion recurring revenue assets shown on the right. We're at record high of $24 three.

Speaker Change: Caribbean and number of workplace services provided shown on the bottom right with 3.73 million an extra 100000 compared to the end of March with the heightened focus on human capital management, we are seeing results from our efforts such as the designing and proposing schemes for companies based on their objective.

Takumi Kitamura: The number of workplace services provided shown on the bottom right was 3.73 million and extra 100,000 compared to the end of March. With the heightened focus on human capital management, we are seeing results from our efforts, such as designing and proposing schemes for companies based on their objective and scope, supporting information sessions for employees and elaborating with investment banking.

Takumi Kitamura: With the heightened focus on human capital management, we are seeing results from our efforts, such as designing and proposing schemes for companies based on their objective and scope, supporting information sessions for employees, and collaborating with investment banking. Please turn to page 8 for an overview of investment management. Net revenue increased 9% to 47.7 billion yen, and income before income taxes was up 31% at 23.2 billion. As shown on the bottom left, stable business revenue was 39.1 billion, a record quarterly high since the division was established.

Speaker Change: Scope supporting information sessions for employees and elaborating with investment banking. Please turn to page eight for an overview of investment management net revenue increased 9% to $47 7 billion and income before income taxes was up 31% at 23.2 billion as shown on the bottom left stable.

Takumi Kitamura: Please center page 8 for an overview of investment management. Net revenue increased 9% to 47.7 billion yen, and income before income taxes was up 31% at 23.2 billion. As shown on the bottom left, stable business revenue was 39.1 billion, a record quarterly high since the division was established. The asset management business had another strong quarter, with net inflows lifting assets under management to a record high, driving steady growth in management fees. Investment gained lost books at 54% drain to 8.6 billion, primarily driven by private equity firm Nomura Capital Partners.

Business revenue was $39 1 billion a record quarterly high since the division was established the asset management business had another strong quarter with net inflows lifting assets under management to a record high driving steady growth in management fees.

Takumi Kitamura: The asset management business had another strong quarter, with net inflows lifting assets under management to a record high, driving steady growth in management fees. Investment gain loss was booked at a 54% gain to $8.6 billion, primarily driven by private equity firm Nomura Capital Partners.

Speaker Change: Investment gain loss booked at 54% Duane to $8 6 billion, primarily driven by private equity firm Nomura Capital partners. Please turn to page nine for an overview of the asset management business, which generates business revenue.

Takumi Kitamura: Please turn to page 9 for an overview of the asset management business, which generates business revenue. The top left shows zoom and assets under management of 92.5 trillion, representing the sixth straight quarter record high and outstripping March 2025 KPI of 89 trillion yen. Quarterly net inflows shown on the bottom left were 950 billion, of which 700 billion flowed into the investment trust business and 260 billion into the investment advisory and international businesses. In the investment trust business, 410 billion yen flowed into investment trust through a diverse range of distribution channels including number of securities, regional financial institutions and other securities firms. Balance funds, global stock funds, and private assets are reported in flows.

Takumi Kitamura: Please turn to page 9 for an overview of the asset management business, which generates business revenue. The top left shows June end assets under management of 92.5 trillion yen, representing the sixth straight quarter record high and outstripping March 2025 KPI of 89 trillion yen. Quarterly net inflows shown on the bottom left were 950 billion, of which 700 billion flowed into the investment trust business and 260 billion into the investment advisory and international businesses. In the investment trust business, 410 billion yen flowed into investment trusts through a diverse range of distribution channels including Nomura Securities, regional financial institutions, and other securities firms.

Speaker Change: The top left shows June and assets under management of 92, five trillion, representing the sixth straight quarter record high and outstripping. Our March 20th 25, K P. I of 89 trillion yen.

Speaker Change: Quarterly net inflows shown on the bottom left where and I have a greater than 50 billion of which 700 billion flowed into the investment Trust business and 260 billion into the investment advisory and international businesses.

Speaker Change: The investment Trust business 410 billion yen flowed into investment trusts through a diverse range of distribution channels, including numbered our securities reached out chasing tuitions and other securities firms Black Boneless funds global stock funds and private assets all reported inflows.

Takumi Kitamura: BAMAS funds, global stock funds, and private assets all reported inflows. D.C. funds also continued to grow, with net assets under management surpassing 3 trillion yen. International was the main driver of the investment advisory and international businesses this quarter, with inflows into U.S. high-yield bonds and global stock funds. As you can see on the bottom right, we continue to build out our private asset business with an alternative AUM topping 2 trillion yen for the first time. That's an increase of 270 billion from the end of March, nearly half of which came from net inflows. Please turn to page 10 for Wholesale. Wholesale net revenue slipped 4% to 244.8 billion yen.

Takumi Kitamura: DC funds also continue to grow, with net assets under management for passing 3 trillion yen. International was the main driver of the investment advisory and international businesses quarter, with inflows into US high yield bonds and global stock funds. As you can see on the bottom right, we continue to build out our private asset business with an alternative AUM topping 2 trillion yen for the first time. That's an increase of 270 billion from the end of March, nearly half of which came from net inflows.

Speaker Change: D. C funds also continued to grow with net assets under management, surpassing three trillion yen International was a main driver of the investment advisory and international businesses. This quarter with inflows into U S high yield bonds and global sub funds as you can see on the bottom right. We continue to build out our private asset business with an alternative a U.

Speaker Change: And topping two trillion yen for the first time, that's an increase of 270 billion from the end of March nearly half of which came from net inflows.

Takumi Kitamura: Please turn to page 10 for wholesale. Hoseo net revenue slipped 4% to 244.8 billion yen, as shown on the bottom left. Global markets increased 2%, while investment banking dropped 25% from the strong prior quarter. Hoseo expenses declined 4% as last quarter's 14 billion yen lost provision, and here and the factors were no longer present in this quarter, more than offsetting an increase in commissions and flow of brokerage linked to trading volumes and severance-related expenses due to re-aligning headcount. As a result, income before income taxes increased 3% to 21.1 billion yen.

Speaker Change: Please turn to page 10 for wholesale wholesale net revenue slipped 4% through 244 point Terry to BDO yen are shown on the bottom left global markets increased 2%, while investment banking job doing two 5% from the strong prior year quarter.

Takumi Kitamura: As shown on the bottom left, global markets increased 2% while investment banking dropped 25% from the strong prior quarter. Wholesale expenses declined 4% as last quarter's 14 billion loss provision and year-end factors were no longer present this quarter, more than offsetting an increase in commissions and floor brokerage linked to trading volumes and severance-related expenses due to realigning headcount. As a result, income-before-income taxes increased by 3% to 21.1 billion. Please turn to page 11 for an update on business line performance.

Speaker Change: Wholesale expenses declined 4%.

Speaker Change: <unk> quarters, 14 billion yen loss provision and a year end to talk through as we're no longer present in this quarter more than offsetting an increase in commissions and floor brokerage linked to trading volumes and severance related expenses due to realigning certain codes as a result income before income taxes increased 3%.

Speaker Change: <unk> 21.1 billion. Please turn to page you live in Florida up there. The one business line performance for global markets net revenue increased 2% through 207.7 billion yen fixed income net revenue was up 3% to 125.6 video in micro products was roughly flow it does mark.

Takumi Kitamura: Please turn to page 11 for an update on business line performance. First, global markets net revenue increased 2% to 207.7 billion yen. Fixed income net revenue was up to 3% at 225.6 billion yen. Micro-products was roughly thought as market participants remained on the sidelines on uncertainty over the rate cut in the US. Spread products reported significantly higher revenues in securitized products in America, driven by an increase in new originations and secondary trading, and a strong performance in Japan, created on demand for high yield bonds. Equities net revenue trended in line with last quarter at 82 billion yen.

Takumi Kitamura: First, the global market's net revenue increased 2% to 207.7 billion. Fixed income net revenue was up 3% at 125.6 billion. Macro products were roughly flat as market participants remained on the sidelines on uncertainty over the rate cut in the U.S.

Speaker Change: It's bodies funds remained on the sidelines and uncertainty over the rate cuts in the U S.

Takumi Kitamura: Spread products reported significantly higher revenues in securitized products in America, driven by an increase in new originations and secondary trading, and a strong performance in Japan created by demand for high-yield bonds. Equity's net revenue trended in line with last quarter at 82 billion yen. Equity products booked higher revenues in America than EMEA, while Japan and AEJ slowed from the strong prior quarter. Execution services booked strong revenues in Japan for the fourth straight quarter and higher revenues in both the Americas than EMEA. Please turn to page 12 for investment banking. Net revenue slowed 25% from the particularly strong previous quarter to 37.2 billion yen.

Spread products reported significantly higher revenues in securitized products in the Americas, driven by an increase in new origin Nations and secondary trading and a strong performance in Japan created on demand for high yield bonds.

Speaker Change: Net revenue trended in line with last quarter at 82 billion yen.

Takumi Kitamura: Equities products booked higher revenues in America's anemia, while Japan and AEJ slowed from the strong prior quarter. Execution services booked strong revenues in Japan for fourth, straight quarter and higher revenues in both the America's anemia.

Speaker Change: I agree to you paradox booked how your revenues in the Americas, and EMEA, while Japan and Asia has slowed from the strong prior year quarter execution services booked stronger revenues in Japan for a fourth straight quarter and higher revenues in both the Americas and EMEA. Please turn to page two of four investment banking.

Takumi Kitamura: Please turn to page 12 for Investment banking. Net revenue slowed 25% from the particularly strong previous quarter to 37.2 billion yen. Japan performance remained robust, with advisory revenues at the highest quarterly level since the year ended March 2017, when comparisons are possible. International slowed from the strong prior quarter as execution of transactions dropped off this quarter. In advisory, Japan revenues increased on contributions from completed M&A transactions, and we continue to respond to diverse client needs such as daily things, business organizations, and cross-border deals. International advisory revenues declined from strong last quarter, but dialogue with clients remains robust, and we expect this to result in revenues in the latter half of the year.

Speaker Change: Net revenue slowed to 25% from the particularly strong previous quarter to 37.2 Btu in Japan performance remains robust with advisory revenues are the highest quarterly level. Since the year ended March 2017, when the comparisons are possible international slowed from this.

Takumi Kitamura: Japan's performance remained robust, with advisory revenues at the highest quarterly level since the year ended March 2017 when comparisons are possible. International performance slowed from the strong prior quarter as execution of transactions dropped off this quarter. In advisory, Japan revenues increased on contributions from completed M&A transactions, and we continue to respond to diverse client needs such as deal listings, business reorganizations, and cross-border deals. International advisory revenues declined from a strong last quarter, but dialogue with clients remains robust, and we expect this to result in revenues in the latter half of the year.

Speaker Change: Probably a quarter of execution of transactions dropped off this quarter, you know advisory Japan revenues increase on contributions from completed and on daily transactions and we continue to respond to a diverse client needs such as these things business your organizations and cross border deals International.

Speaker Change: <unk> revenues declined from last quarter about dialogue with clients remains robust and we expect this to result in revenues in the latter half of the year financing and solutions reported lower revenues in Japan, and seasonal factors led to a dip in transactions well.

Takumi Kitamura: Financing and solutions reported lower revenues as seasonal factors led to a dip in transactions while ALF slowed from a strong prior quarter. Please turn to page 13 for an overview of non-interest expenses. Group-wide expenses were roughly flat at 351.5 billion yen.

Takumi Kitamura: Financing and solutions reported lower revenues in Japan as seasonal factors led to a dip in transactions, while ALF slowed from a strong prior quarter.

Speaker Change: Ill have slowed for them, so I'm, probably a quarter. Please turn to page 13 for an overview of known interest expenses group wide expenses were roughly flat to a 351.5 btu in compensation and benefits increased 4% to 184.5 being again due mainly to yen depreciation, but also impacted by an.

Takumi Kitamura: Please turn to page 13 for an overview of non-interested expenses. Group-wide expenses were roughly flat at 351.5 billion yen. Compensation and benefits increased 4% to 184.5 billion yen due mainly to yen depreciation, but also impacted by an increase in fixed-day and severance-related expenses. Other expenses dropped 25% to 43.4 billion yen compared to last quarter, which included the lowest provision of 14 billion yen.

Takumi Kitamura: Compensation and benefits increased 4% to 184.5 billion yen due mainly to yen depreciation but also impacted by an increase in fixed pay and severance-related expenses. Other expenses dropped 25% to 43.4 billion yen compared to last quarter, which included a loss provision of 14 billion yen. Please turn to page 14 for an update of our financial position. The table on the bottom left shows tier 1 capital of 3.5 trillion yen, up by about 70 billion yen from the end of March. Risk-weighted assets increased by 1.3 trillion yen to 20 trillion yen.

Speaker Change: Increase in the fixed pay and severance related expenses other expenses jumped 25% to $43 4 billion yen compared to last quarter, which included a loss provision of 14 billion yen. Please turn to page 14 for an update of our financial position the table on the bottom left shows tier one capital.

Takumi Kitamura: Please turn to page 14 for an update of our financial position. The table on the bottom left shows Tier 1 capital of 3.5 trillion yen, up by about 70 billion yen from the end of March. Risk-related assets increased 1.3 trillion yen to 20 trillion yen. This resulted in a Tier 1 capital ratio of 17.4% and a CE-181 capital ratio of 15.6% at the end of June. The waterfall chart on the bottom right shows changes to risk-related assets, with credit risk up 0.4 trillion yen due mainly to yen depreciation and market risk up 0.9 trillion yen due also to lower yen, as well as expansion in our financing business.

Speaker Change: <unk> three five trillion yen up by about 70 video again from the end of much risk weighted assets increased 1.3 trillion yen through 'twenty three and again. This resulted in our tier one capital ratio of 17, 4% and our CET one capital ratio of 15, 6% at the end of June the waterfall chart.

Takumi Kitamura: This resulted in a tier 1 capital ratio of 17.4% and a CET1 capital ratio of 15.6% at the end of June. The waterfall chart on the bottom right shows changes to risk-weighted assets, with credit risk up 0.4 trillion yen due mainly to yen depreciation and market risk up 0.9 trillion yen due also to lower yen as well as expansion in our financing business. That concludes the overview of our first quarter results.

Speaker Change: On the bottom right shows changes the risk weighted assets with credit risk up 0.4 training again, due mainly to yen depreciation and the market risk of 0.9 trillion yen due also to lower yen as well as some expansion in our financing business that concludes the overview of our first quarter results.

Takumi Kitamura: That concludes the overview of our first quarter results. To sum up, this was our fifth consecutive quote of earnings momentum, and we have embarked on a smooth start towards achieving our 2030 numerical target of consistently achieving ROE of 8-10% or more. Momentum in Japan, around the shift from savings to investment, is growing, and we are seeing growing demand for comprehensive asset management services. World management is seeing results from its reorganization last spring and its segment-based approach, while investment management is delivering steady growth in its asset management business as it diversifies its distribution channels and continues to book net inflows.

Speaker Change: Okay.

Takumi Kitamura: To sum up, this was our fifth consecutive quarter of earnings momentum, and we have embarked on a smooth start towards achieving our 2030 numerical target of consistently achieving ROE of 8 to 10 percent or more. Momentum in Japan around the shift from savings to investment is growing, and we are seeing growing demand for comprehensive asset management services. Wealth management is seeing results from its reorganization last spring and its segment-based approach, while investment management is delivering steady growth in its asset management business as it diversifies its distribution channels and continues to book net inflows.

Speaker Change: To sum up this was our fifth consecutive quarter of earnings momentum and we have embarked on a smooth start towards achieving our 2013 numerical target to consistently achieving all really of 8% to 10% or more momentum in Japan around the shift from savings to investment is growing and we are seeing.

Speaker Change: Growing demand for our comprehensive loss at the mud instruments services wealth management is seeing results from its reorganization last spring and its segments based approach well investment management is delivering a city growth in its asset management business as it diversifies its distribution channels and the continuous to boot.

Takumi Kitamura: While wholesale performance still has room for improvement, all business lines reported higher revenues compared to the same quarter last year, and we are making progress in diversifying and stabilizing our revenues, as discussed at investor day. Since hitting a record high in July, the Nikkei average has recently undergone a significant correction as investors turned cautious over the yen strengthening and U.S. tech stocks declined.

Speaker Change: Net inflows, while wholesale performance still has room for improvement all the business lines reported higher revenues compared to the same quarter last year, and we are making progress in diversifying and stabilizing our revenues also discuss the investor day since hitting a record high in July the Nikkei average.

Takumi Kitamura: While wholesale performance still has room for improvement, all business lines reported higher revenues compared to the same quote last year, and we are making progress in diversifying and stabilizing our revenues, as discussed at Investor Day.

Takumi Kitamura: Since hitting a record high in July, the Nikkei average has recently undergone a significant correction of investors turning the courts just over yen, strengthening a US tech stock decline. That's it. World management continues to see a lot of dialogue with clients and new accounts opened by high net worth clients. Offerings and other primary transactions contributed to revenues in July. Outstripping the strong performance in the first quarter, wholesale, in wholesale, global markets is seeing strong performance in macro products created and execution services. Investment banking is supporting a wider range of transactions, such as large offerings and unwinding of cross-chair hoarding by Japanese corporate, as well as advisory and sustainability-related transactions internationally.

Speaker Change: Recently undergone a significant correction of investors tune the cautious over yen strengthening in U S. Tech stocks declined thus it wealth management continues to see a lot of dialogue with clients and new accounts opened by high net worth clients offerings and other primary transactions contributed to revenues.

Takumi Kitamura: That said, wealth management continues to see a lot of dialogue with clients, and new accounts opened by high net worth clients, offerings, and other primary transactions contributed to revenues in July outstripping the strong performance in the first quarter. In wholesale, global markets are seeing strong performance in macro products, credit, and execution services. Investment banking is supporting a wide range of transactions, such as large offerings and the unwinding of cross-share holdings by Japanese corporates as well as advisory and sustainability-related transactions internationally.

Speaker Change: July outstripped outstripping the strong performance in the first quarter wholesale in wholesale global markets is seeing strong performance in micro products creative execution services in business banking is supporting a wide range of transactions such as large offerings and the unwinding of cross shareholdings by Japanese corporates elsewhere.

Advisory and sustainability related transactions internationally as a result, the wholesale revenues in July are trending substantially higher than the first quarter revenues.

Takumi Kitamura: As a result, wholesale revenues in July are trending substantially higher than first quarter revenues. Traditionally, this period is a slow season as market participants take a break for the summer, but we expect to see volatility in the market over the U.S. presidential election in the autumn and monetary policy by central banks around the world. We will manage risk and costs appropriately while monetizing business opportunities. We look forward to your continued support.

Takumi Kitamura: As a result, wholesale revenues in July are trending substantially higher than the first quarter revenues.

Takumi Kitamura: Traditionally, this period is a slow season at market participants take a break for the summer, but we expect to see volatility in the market over the US presidential election in the autumn and monetary policy by central banks around the world. We will manage risk and cost appropriately while monetizing business opportunities. We look forward to your continued support. Thank you.

Speaker Change: Additionally, this period is a slow season.

Speaker Change: Get the participants take a break for the summer, but we expect to see volatility in the market over the U S presidential election in the autumn and the monetary policy by central banks around the world, we will manage risks and costs appropriately while monetizing business opportunities.

Speaker Change: Look forward to your continued support thank you.

Operator: We have a question and non-succession now. If we have a question, press shop 7. If we have a question.

Takumi Kitamura: Thank you. We have a question and answer session now. If you have a question... Press Shop 7. If you want to cancel a question... Press Sharp 7. The first question is from SNBC Niko Securities. Muraki-san, please go ahead.

Speaker Change: We have a question and answer session now.

Speaker Change: So you have a question.

Speaker Change: Press shops seven.

Speaker Change: If we want to kind of fill that question.

Speaker Change: Dress shop seven.

Masao Muraki: The first question is by SNBC Nico Securities, Muraki Sam. Please go ahead. SNBC Nico's Muraki, I have two questions. According to this graph, spread products, so it says, securitization in the US and Japanese credit are doing well, but the revenue level is beyond 60 billion if I look at this diagram correctly. This revenue, what are the main products, what kind of transactions in which regions are growing, if you can give us the updated situation and on page 14 you touched upon risk asset and market risk increase. Most likely is the financing related to securitization and level 3 assets.

Masao Muraki: SNBC Niko Muraki, I have two questions, page 11, fixed income, and the substance. According to this graph, spread products, so it says. Natsumu Kitamura, Masao Muraki, Koichi Niwa, Nomura Hldgs. Securitization in the U.S. and Japanese credit are doing well, but the revenue level... is beyond 60 billion, if I look at this diagram correctly. This revenue, what are the main products, what kind of transactions in which regions are growing, if you can give us the updated situation and, On page 14, you touched Most likely is the financing related to securitization and Level 3 assets. It was close to 1 trillion yen.

Speaker Change: The first question is by F N B C Nikko Securities <unk> San Please go ahead.

Speaker Change: F N B C nicos murky I have two questions. Please.

Speaker Change: Crazy level.

Speaker Change: <unk> income.

Speaker Change: Substance according to this graph spread products. So it says.

Speaker Change: Securitization in the U S and Japanese credits are doing well, but the revenue level.

Speaker Change: Beyond 60 billion, if I looked at this diagram correctly.

Speaker Change: This revenue.

Speaker Change: The <unk>.

Speaker Change: <unk> products, what kind of transactions in which regions growing if you can give us the updated situation.

Speaker Change: And.

Speaker Change: On page 14.

Speaker Change: You touched up on risk asset.

Speaker Change: And market risk increase.

Speaker Change: Most likely is the financing related to securitization.

Speaker Change: And level III assets.

Masao Muraki: It was close to 1 trillion, suddenly it's grown to 1.3 trillion, so my question, securitization did well, what kind of risk did you take that led to the increase of revenue as a consideration?

Speaker Change: It was close to one trillion yen.

Masao Muraki: Suddenly, it's grown to 1.3 trillion. So my question... Securitization did well. What kind of risk did you take?

Suddenly it has grown to one three trillion.

Speaker Change: So my question.

Speaker Change: Securitization did well.

Speaker Change: What kind of risks does your cake.

Speaker Change: Yes.

Masao Muraki: That led to the increase of revenue as a consideration. That's my first question. And the second question is a simple question.

Speaker Change: That led to the increase of revenue.

Speaker Change: Consideration.

Masao Muraki: That's my first question, and second question is a simple question: page 5, wealth management, acquisition of assets. This is SMA for net high net worth, and in comparison to the previous quarter, it has improved. Is this because of sales? What are the reasons behind? Was it because of market?

Speaker Change: That's my first question and second question is a simple question page five wealth management.

Masao Muraki: Page 5, Wealth Management. Acquisition of Assets. This is SMA for High Net Worth. And, in comparison to the previous quarter, it has improved. Is this because of sales? What are the reasons behind it?

Speaker Change: <unk> of assets.

This is Jason eight four net high net worths.

Speaker Change: In comparison to the previous quarter.

Speaker Change: <unk>.

Speaker Change: Is this because of our sales.

What are the reasons behind.

Takumi Kitamura: Was it because of the market? Thank you very much for the question. One, the first question was about spreading products and the breakdown.

Speaker Change: Was it because of market.

Takumi Kitamura: Thank you very much for the question. The first question was spread product and the breakdown. Mainly it's securitized products in the state and that is the driver; 60% of the spread business robustness accounted for by US securitized product. Number of securitized products, in terms of market share, it's one of the flagship products with number one of number two share in the market, so we have strength. R&BC secondary trading was the main in the past phase, but in the past 10 years we have a period towards origination which is not influenced by market so much. So, origination, secondary, origination two while secondary is one, so origination double.

Speaker Change: Thank you very much for the question one the first question was spread products and the breakdown.

Takumi Kitamura: Mainly, it's securitized products in the United States, and that is the driver. Sixty percent of the spread business... Robustness accounted for by U.S. securitized presence. Nomura's Securitized Products. In terms of market share, it's one of the flagship products with a number one or number two share in the market. So we have strength.

Mainly it's securitized products in the United States and that is.

Speaker Change: The driver of 60% of the spread business robust actually accounted for it by U S securitize present.

Speaker Change: And then Louis securitized products.

Speaker Change: In terms of market share.

Speaker Change: One of our flagship products with the number whenever.

Speaker Change: To share in that market. So we have strength RMB see secondary trading.

Takumi Kitamura: RMBC secondary trading was the main activity in the past phase, but in the past 10 years, we have tilted towards origination, which is not influenced by the market so much. So, Origination... Origination 2 while Secondary is 1, so Origination Double.

Speaker Change: The main <unk>.

Speaker Change: The past phase, but in the past 10 years, we have tilted towards origination which is not influenced by market. So much.

Speaker Change: So our origination.

Speaker Change: Secondary origination to while secondary is one so origination double.

Takumi Kitamura: R&BC was the main product as it financed and renewable infrastructure finance, insructured solution, structured repo, so we now have a diversified product line up. So diversification of revenue and expansion of a platform has been contributed. We are more strongly able to weather any single trend in the market. That's the backdrop and level three. Oh. RWA is increasing; what's the reason? One is GPN and GM clients trading demand is also increasing, especially for the securitization business, and the inventory has increased, so that has led to the increase of RWA.

Takumi Kitamura: RMBC was the main product, but Asset Finance and Renewable Infrastructure Finance, Instructured Solutions, and Structured Repo, so we now have a diversified product lineup. So diversification of revenue and expansion of the platform have been contributing factors. We are more strongly able to weather any single trend in the market. That's the backdrop and Level 3.

Speaker Change: M D C was the main product but.

Speaker Change: Asset finance and renewable interest sector finance any structured solutions structured repo.

Speaker Change: We now have a diversified product lineup.

Speaker Change: So diversification of revenue and expansion of our platform has been contributed.

Speaker Change: We are more strongly able to weather any.

Speaker Change: The trend in the market that's the backdrop.

Speaker Change: And level three.

Speaker Change: Oh.

Speaker Change: Okay.

Takumi Kitamura: RWA is increasing. What's the reason? One is GPN and... GM clients' trading demand is also increasing, especially for the securitization business, and the inventory has increased. So that has led to the increase of RWA. Business is healthy. So the stock has increased. Driven by the healthy business. Your second question... There is an increase in discretionary investment. The stock price is down by 40,000 yen per day.

Speaker Change: W.

Speaker Change: <unk> is increasing what's the reason one is G. P M.

Speaker Change: And.

G M clients trading demand is also increasing especially for the securitization business.

Speaker Change: And the inventory has increased.

Speaker Change: So that has led to the increase of R. W. A.

Speaker Change: Yeah.

Takumi Kitamura: Business is healthy, so the stock has increased driven by the healthy business and your second question, there is increased discretionary investment, 40,000 yen and Nikkei average market was dealing at high level and the investment momentum is rising on the part of the clients. When equity increases, people try to lock in the profit and sell their holdings, but residents selling with unrealized gains increasing the client sentiment is improving. So unrealized gains, they keep in order to invest that for further investment. So I think we are in a very virtuous cycle for discretionary investment. SMA in high net worth we are seeing significant increase there. I hope I answered your question. Thank you very much. Regarding my first question, RWA level 3, securitized business used much of the RWA and regarding the consumption of resources, the capital efficiency for the securitized business from the perspective of CFO has there been recovery that gives you comfort against the target? What's the current level and are you comfortable with that? And in July you said it went beyond what you had expected. Does that mean that securitization business is stronger than expected?

Speaker Change: The business is healthy.

Speaker Change: So the stock has increased.

Speaker Change: Driven by the healthy business.

Speaker Change: And.

Speaker Change: Your second question.

Speaker Change: There is increased.

Speaker Change: Discretionary investment.

Speaker Change: 40000 year Nikkei average market wise, it's beginning at high level and the investment momentum is driving on a part of our clients.

Takumi Kitamura: Market wise, it's dealing at a high level, and the investment momentum is rising on the part of the clients. When the equity price increases, people try to lock in the profits and sell their holdings. But rather than selling, with unrealized gains increasing, client sentiment is improving. So unrealized gains, they keep in order to invest that for further investment. So I think we are in a very virtuous cycle.

Speaker Change: Equity price.

Speaker Change: Increases people try to lock in the profit and sell their holdings, but rather than selling.

Speaker Change: With unrealized gains increasing.

Speaker Change: Sentiment is improving.

Speaker Change: Yes.

Speaker Change: So our realized gain they keep in order to invest that for further investments. So I think we are in a very virtuous cycle for a discretionary.

Takumi Kitamura: For discretionary investment, SMA in high net worth, we are seeing a significant increase there. I hope I have answered your question. Thank you very much.

Speaker Change: Investment SMA in high net worth and we are seeing a significant increase there I hope I answered your question.

Masao Muraki: Regarding my first question... RWA level 3 securitized, the business used much of the RWA. And regarding the consumption of resources, the capital efficiency for the securitized business from the perspective of the CFO, has there been recovery that gives you comfort? Takumi Kitamura, Masao Muraki, Koichi Niwa, Natsumu Tsujino, Takumi Kitamura, Nomura Hldgs, You said it went beyond what you had expected.

Speaker Change: Thank you very much regarding the my first question.

Speaker Change: Alright W E T.

Speaker Change: Level three securitized.

Speaker Change: Business used much of the R. W H and regarding the consumption of resources.

Speaker Change: The capital efficiency from the securitized business from the perspective of CFO has there been recovery that gives you comfort.

Speaker Change: Against the target what's the current level and are you comfortable with that and in July.

Speaker Change: Yeah.

Speaker Change: You said.

Speaker Change: It went beyond.

Takumi Kitamura: Does that mean that the securitization business is stronger than expected? Thank you very much. Every business we do, that's an important point. In comparison to our peers, the SP portion may be slightly larger. At Nomura, that being said, I'm not saying that we should become closer to our peers, but we will monitor how much growth we will see. But the most recent situation is very good, and Credit Suisse exiting from the U.S. market has been providing strong business opportunities. And in July, the situation was quite healthy for securitized products.

Speaker Change: What you had expected does that mean that.

Speaker Change: Securitization business is stronger than expected. Thank.

Takumi Kitamura: Thank you very much. How much is the business we do? That's an important point. In comparison to our peers, SB portion may be slightly larger at Nomura. That being said, I'm not saying that we should become closer to our peers, but we will monitor how much scrap we will see. The most recent situation is very good, and pretty swift exiting from the US market has been providing strong business opportunity. In July, the situation was quite healthy for securitized projects, and naturally under Basel III, RWA of securitized private tends to come down. So that being said, we hope to think about the capital efficiency. Thank you very much, well understood, thank you for your response. The next question comes from Watanabe-san from Diva Securities. Thank you, I'm Watanabe from Diva Securities. I have two questions.

Speaker Change: Thank you very much how much.

That's the business, we do believe that's an important.

Speaker Change: Point in comparison to our peers SP portion maybe slightly larger.

Speaker Change: At Nomura that being said I'm, not saying that we should.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Become closer to our peers, but we will monitor how much scratch, we will see but the most recent.

Speaker Change: Situation is.

Speaker Change: Very good and credit Suisse exiting from the U S market.

Speaker Change: Has it been providing strong business opportunity and in July at the situation was quite healthy for securitized products and naturally under Basel III.

Takumi Kitamura: And naturally, under Basel III, on the other hand, the RWA of the security present tends to come down. So, that being said, we hope to think about capital efficiency. Thank you very much.

Speaker Change: RW a of securitized present tends to come down so that being said, we hope to think about the capital efficiency.

Speaker Change: Thank you very much well understood. Thank you for your response.

Kazuki Watanabe: Well, understood. Thank you for your response. The next question comes from Watanabe-san from Daiwa Securities. Thank you. I'm Watanabe from Daiwa Securities. I have two questions.

Watanabe: The next question comes from Watanabe from Daiwa Securities.

Kazuki Watanabe: My first question is regarding the IB business. So large-sized offerings are being announced one after another, but compared to last year in terms of pipeline, to what extent have you seen an increase? And also, regarding the reduction of policy holdings, issuers have various options, the offerings and buyback, and so on. But what kind of schemes has the biggest contribution to you in terms of revenue boost? That's my first question.

Andy Morton: Thank you Andy Morton from Daiwa Securities I have two questions. First question is regarding IDB business. So large sized offerings are being announced the one after another but compared to last year in terms of pipeline to what extent have you seen the increase and also regard.

Kazuki Watanabe: First question is regarding IB business, so large sized offerings are being announced one after another. But compared to last year, in terms of pipeline, to what extent have you seen an increase? And also regarding the reduction of policy holdings, the issuers, various options, the offerings, and buyback and so on, but what kind of schemes has the biggest contribution to you in terms of revenue boosting? That's my first question.

Speaker Change: The reduction of policy holdings, the issuers various options the offerings and buyback and so on but what's kind of schemes.

Speaker Change: The biggest contribution to you in terms of revenue boosting. So that's my first question second question is regarding CET, one ratio that came down in the first quarter, but after the finalization of Basel III from 14% is the ratio going to change.

Kazuki Watanabe: The second question is regarding the CET1 ratio that came down in the first quarter, but after the finalization of Basel III from 14%, is the ratio going to change? If not much impact is expected on the securitized business, then you may be able to retain 14%. But what is your outlook? At investor days, the CET1 ratio target you said was going to be set, but what is the timing for the disclosure of the CET1 target? Thank you.

Kazuki Watanabe: Second question is regarding the CET-1 ratio that came down in the first quarter, but after finalization of Battle 3, from 14% is the ratio going to change? If not much impact is expected on the securities business, then you may be able to retain 14%, but what is your outlook? In this day, the CET-1 ratio target you set is going to be set, but what is the timing for the disclosure of the CET-1 target? Thank you.

Speaker Change: Not much impact is expected on securitized business, then you may be able to retain 14%, but the body to outlook.

Speaker Change: <unk> CET one ratio target to use it is going to be said about the bodies that timing for the disclosure of CET one target. Thank you. Thank you very much.

Takumi Kitamura: Thank you very much regarding your first question regarding IB. Pipeline is quite robust. In the insurance sector, such bedrock sector is moving, so people in Japan is expected to increase. The capital efficiency increase, such as deals, are the central part of the deal, so we're expecting a high level of deals. So POs and offerings are the areas where normally I can exercise the capabilities.

Kazuki Watanabe: Thank you very much. Regarding your first question, regarding IB, the pipeline is quite robust in the insurance sector, as such a bedrock sector is moving, so the fee pool in Japan is expected to increase the capital efficiency increase such deals are the central part of the deals that we expect at the high level of deals, so POs and offerings are the areas where Nomura can exercise its capabilities. Regarding your second question, Regarding IB, the pipeline is quite Set 1 C-81 ratio under finalization of Buzzo 3.

Regarding your first question regarding IV pipeline is quite robust.

Speaker Change: In the insurance six to such a bedrock sector is moving so fee pool in Japan is expected to increase the capital efficiency.

Speaker Change: <unk> increase.

Speaker Change: Such as.

Speaker Change: They use a central part of their deals that do we expect any high level of deals so pose in the offerings.

Speaker Change: Sure.

Speaker Change: Okay.

Nomura: The areas, we are Nomura can exercise the capabilities.

Takumi Kitamura: Regarding your second question, set one CET-1 ratio under finalization of Battle 3. In our outlook, it's not going to change much. Currently, the CET-1 ratio has come down, as you mentioned, but looking at the positions or portfolios, components have changed slightly. However, the eventual prospect or outlook has not changed regarding the timing of disclosure of target level. Since May, it's been only two months, so we would like some more time before disclosure. By the end of the year, can I expect to see the disclosure? Yes, sometime within the year, hopefully we can conduct the disclosure.

Speaker Change: Regarding your second question.

Speaker Change: Yeah.

Speaker Change: Set one CET one ratio on the Finalization of Basel III.

Kazuki Watanabe: In our outlook, it's not going to change much. Currently, the CET1 ratio has come down, as you mentioned. But, looking at the... positions or portfolio components have changed slightly, but the eventual prospect or outlook has not changed regarding the timing of disclosure of the target level. Since May, it's been only two months, so we would like some more time before disclosure. By the end of the year, can I expect to see the disclosure?

Speaker Change: The outlook is not going to change much currently does CET one ratio has come down as you mentioned, but.

Speaker Change: Looking at the.

Speaker Change: Positions or portfolios.

Speaker Change: <unk> have changed slightly but the.

Speaker Change: Eventual prospect or outlook has not changed regarding the timing of this closure of target level.

Speaker Change: Since may it's been only two months, so we would like some more time before disclosure.

Speaker Change: Yeah.

Speaker Change: By the end of the year or you cannot expect to see the disclosure yes. Some.

Kazuki Watanabe: Yes, sometime within the year, hopefully, we can conduct a disclosure. Thank you. Thank you for your answer.

Speaker Change: Within the year hopefully we can conduct a disclosure. Thank you. Thank you for your answer.

Takumi Kitamura: Thank you. Thank you for your answer.

Yeah.

Mia Nagasaka: The next question is by Morgan Stanley M.U.F. G. Nagasaka-san. Thank you. This is Nagasaka of Morgan Stanley M.U.S.G. Thank you very much for the presentation. I have two questions. R.O.E. 8-10% overall, consistently being achieved. And you said, you're well on track.

Nagasaka: The next question is by Morgan Stanley, MUFG, Nagasaka-san. Thank you. This is Nagasaka from Morgan Stanley MESG. Thank you very much for the presentation. I have two questions.

Speaker Change: The next question is by Morgan Stanley and U S. G now that Pakistan.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: This is not a circa of Morgan Stanley and ESG.

Speaker Change: Okay.

Thank you very much for the presentation.

Speaker Change: Two questions.

Nagasaka: ROE 8 to 10% overall consistently being achieved, and you said you're well on track. Again, by segment, how will you be structuring your business towards that goal? Bottom line, more than 300 billion yen to be consistently generated. That would be necessary, but by each segment, what do you plan to achieve?

Speaker Change: Ro.

Speaker Change: 210% or more consistently being achieved and you said you are well on track.

Mia Nagasaka: Again, by segment, how will you be structuring your business towards that goal, bottom line, more than 300 billion yen to be consistently generated? That would be necessary, but by each segment, what do you plan to achieve?

Speaker Change: Again.

Speaker Change: Yeah.

Speaker Change: By segment.

Speaker Change: How will you be structuring your business towards that goal.

Speaker Change: Bottom line more than 300 billion yen to be consistently generated that would be necessary, but by each segment.

Do you plan to achieve and second question.

Nagasaka: And second question, slide page 7. Wealth Management, Recurring assets, and Recurring Revenue. Recurring Assets are increasing. Recurring Revenue is very strongly increasing against recurring assets. Can you... give us the reason?

Mia Nagasaka: And second question, slide page 7, real management, recurring assets, recurring revenue, recurring assets increasing, recurring revenue is very strongly increasing against recurring assets. Can you give us a reason? Is it because of product strategy? What other reason behind that has kept Nomura responding to the client needs? And also, can you comment on margin?

Speaker Change: Page seven.

Speaker Change: Wealth management.

Speaker Change: Recurring assets.

Speaker Change: And recurring revenue.

Speaker Change: Asset increasing grieger in revenue.

Speaker Change: Is very strongly increasing against recurring.

Speaker Change: And can you.

Takumi Kitamura: Is it because of product strategy? What are the reasons behind that that have kept Nomura responding to client needs? And also, could you comment on margin? Thank you very much.

Speaker Change: Give us the reason is because our product strategy what are the reasons behind that has.

Speaker Change: Kept at Nomura responding to client needs and also could you comment on margin. Thank you very much.

Takumi Kitamura: Thank you very much.

Takumi Kitamura: First question was RRE 8-10% plus. As you just heard, for this quarter, work management, investment management, these consistent businesses, stable businesses are generating high level of profits. In the mid to long run, finally, we are seeing a major trend of savings to investment. So not just simple growth, growth, asset consulting, asset management; our areas where we are seeing growth. So revenue stabilization and these businesses do not rely on equity. So we are already seeing visibility, getting visibility in R.O.E. growth. Also, yes, there has been a slight increase in revenue, but there is room for further improvement.

Takumi Kitamura: The first question was RRE, 8-10% plus. As you just heard, for this quarter, wealth management, investment management... These consistent businesses, stable businesses are generating high levels of profits. In the mid to long run, finally, we are seeing a major trend of savings to investment.

Speaker Change: The first question was <unk>, 8% to 10% plus.

Speaker Change: Yeah.

As you just heard it for this quarter wealth management investment management.

Speaker Change: These consistent business stable businesses are generating high level of profits in the <unk>.

Mid to long run and finally, we are seeing a major trend of savings to investment.

Speaker Change: Okay.

Takumi Kitamura: So not just simple grid assets, consulting, asset management, are areas where we are seeing growth. So revenue stabilization, and these businesses do not rely on equity, so we are already seeing visibility, and gaining visibility in ROE growth. Wholesale, yes, there has been a slight increase in revenue, but there's room for further improvement. The 91% expense ratio is still high. So, increase in revenue and reduction of costs should lead to a cost-income ratio decline, and we would like to achieve the bottom line of $300 billion by taking those measures. And also, recurring revenue growth is quite healthy in comparison to the growth of recurring revenue assets. What's the reason behind it?

So not just simple bridge asset consulting asset management.

Speaker Change: Our areas, where we're seeing growth so.

Speaker Change: Revenue stabilization and these businesses did not rely on equity.

Speaker Change: We are already seeing visibility getting visibility in a row grid wholesale yes, there has been a slight increase in revenue, but there is room for further improvement 91% expense ratio.

Takumi Kitamura: 91% expense ratio; that's still high. So increasing revenue and reduction of cost should lead to cost income ratio decline. And we would like to achieve the bottom line of 300 billion by taking those measures. And also, the recurring revenue growth is quite healthy in comparison to the growth of recurring revenue assets. What's the reason behind product-based breakdown based upon AUM hasn't really changed that much? This might be just a spot number. So it may appear to be slightly different. Today, if that instance of the average recurring revenue asset was high, maybe you would see it differently.

Speaker Change: Still high so increasing revenue and reduction of cost should lead to cost to income ratio decline and we would like to achieve the bottom line of 300 billion.

Speaker Change: By taking those measures.

Speaker Change: And also the recurring revenue growth is quite healthy in comparison to the growth of recurring revenue assets.

Speaker Change: What's the reason behind.

Takumi Kitamura: Product Based Breakdown, Based upon AUM, hasn't really changed that much, might be just, uh... But the number... So it may appear to be slightly different.

Speaker Change: [noise] product based breakdown.

Speaker Change: Based upon <unk> and hasn't really changed that much.

Speaker Change: This might be just a.

Speaker Change: Spot number.

Speaker Change: Yeah.

Speaker Change: So it may appear to be slightly different.

Takumi Kitamura: Today, if, in that instance, the average recurring revenue asset was high, maybe you would see it differently, and maybe the proportion of certain products has changed slightly, but I don't think that there is any irregular trend behind that. That concludes my response. Thank you very much. I was able to understand very well. Thank you. The next person asking the question is Otsuka-san from SBI Securities. Thank you. I'm Otsuka from SBI. Can you hear me?

Today.

Speaker Change: If.

Speaker Change: That instance, the average recurring revenue asset was high maybe you would see it different.

Takumi Kitamura: And maybe the proportion of certain products has changed slightly, but I don't think that there is any irregular trend behind.

Speaker Change: And maybe the proportion of certain products has changed slightly but I don't think that there is any E regular trend behind that concludes my response.

Takumi Kitamura: That concludes my response. Thank you very much. I was able to understand very well.

Speaker Change: Thank you very much I was able to understand very well. Thank you.

Takumi Kitamura: Thank you.

Wataru Otsuka: The next person asking the question is Otsuka-san from SBI Securities. Thank you. I'm Otsuka from SBI. Can you hear me? Yes. I have a couple of questions.

Speaker Change: The next person asking the question is what's the phone from <unk> Securities.

Speaker Change: Okay.

Speaker Change: Thank you I am old school from Spi can you hear me.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Okay.

Otsuka: Yes. I have a couple of questions. First question, page 21, by region. Usually, you show the numbers by region and are based upon the regional numbers. In EMEA, this quarter, we ended up in a lost position. What was the background?

Speaker Change: I have.

Speaker Change: A couple of questions first question page 21.

Wataru Otsuka: First question, page 21. By region, usually you show the numbers by region, and based upon the regional numbers in Imiya, in this quarter, ended up being in the lowest position. What was the background? And also 17 billion total profit for international region. How should I think about it? So 17 billion; so this number will be higher when the Imiya breaks even. So, on the quarterly basis, 17 billion over the last two years is not so bad. So how do you evaluate the first quarter's profit level of the international market 17 billion?

Speaker Change: By region.

Speaker Change: Usually you show the numbers by region and based upon the region.

Speaker Change: <unk> numbers in EMEA in this quarter.

Speaker Change: Ended up being in a loss position is always about ground and also 17 billion.

Otsuka: And also, $17 billion. Total profit for the international region, how should I think about it? So 17 billion. This number will be higher when EMEA breaks even. So, on a quarterly basis, $17 billion over the last two years is not so bad. So how do you evaluate the first quarter's profit level of the international market, $17 billion? Thank you for your question. EMEA had a huge loss last year.

Speaker Change: Total profit for international region, how should I think about it so 17 billion.

Speaker Change: So.

This number will be higher when the EMEA breaks even so on a quarterly basis 17 billion on the over the last two years.

Speaker Change: He is not so bad.

Speaker Change: So how do you evaluate the first quarter's profit level over international market 17 billion. Thank you for your question EMEA last year HUD the huge loss.

Takumi Kitamura: Thank you for your question. Imiya, last year had a huge loss. It partially due to one of reasons. And there was a reallocation of human resources across businesses, and under the new structure, it's been several months now. And looking at different months in April and May, we did not see much of a movement, but in June. Onward, we started to see a sign of recovery. But I'm afraid to tell you that from April through June, that figure is negative. However, the trend is pointing upward.

Speaker Change: It's partially due to one of reasons, but.

Otsuka: Partially due to one-off reasons, but there was a reallocation of human resources. It's been several months now, and looking at different months, in April and May, we did not see much of a movement, but in June and onward, we started to see a sign of recovery. But I'm afraid to tell you that from April through June, the figure is negative. The quarterly revenue, 17 billion. How do we evaluate this level in international markets? As you know, the net operating loss exists.

Speaker Change: And there was a reallocation of human resources.

Speaker Change: The businesses and under the new structure.

Speaker Change: In.

Speaker Change: Several months now and looking at different months in April and May.

Speaker Change: We did not see much of a movement about in June onward, we started to see a sign of recovery, but I'm afraid I will tell you that from <unk>.

Speaker Change: Gabriel through June the figure is negative however, the trend is pointing upwards.

Takumi Kitamura: The quarterly revenue 17 billion, how do we evaluate this level in international markets as you know the net operating loss exists. So if we can generate more profit, then effective tax rate will come down. So 17 billion is not something that we are satisfied with, but we would like to aim higher. Thank you. Thank you very much.

Speaker Change: The quarterly <unk>.

Speaker Change: Revenue 17 billion, how do we evaluate to this level in international markets.

Otsuka: So if we can generate more profit, then the effective tax rate will come down. So 17 billion is not something that we are satisfied with, but we would like to aim higher. Thank you. Thank you very much.

Speaker Change: The.

Speaker Change: Net operating loss.

Speaker Change: So if we can generate the more appropriate than effective tax rate will come down. So 17 billion is not something about the real satisfied with but we would like to aim higher.

Otsuka: My second question is about wealth management. Sorry, I might have missed your explanation, but in July... So what is your feel or impression about the business in July? The Nikkei's stock average has come down month by month, so the market tailwind is not there, but investment trusts, insurance, discretionary services... in these products. What is the situation?

Thank you. Thank you very much my second question is about wealth management.

Takumi Kitamura: My second question is about world management. Sorry, I might have missed your explanation, but in July. So what is your feel or impression about the business in July? Nick Gays' talk average has come down month by month. So the market tailwind is not there, but investment trust insurance, discretionary services in these products. What is the situation, including the mindset of clients? In July, these businesses are strong. Compared to the April through June quarter, we have had several primary transactions which supported the business, but clients' investment minds are somewhat cautious, with clients staying on the sideline. But when the stock prices came down, they bought.

Speaker Change: Yeah.

Speaker Change: Sorry, I might have missed your explanation about in July.

Speaker Change: So what is your feel or impression about the business in July Nik a Stoke average has come down month by month. So the market tailwind is not there about investment trust insurance discretionary services.

Speaker Change: In these products.

Speaker Change: What is the situation.

Otsuka: including the mindset of clients. In July, these businesses are usually busy. Compared to the April through June quarter, we had several primary transactions which supported the business, but clients' investment minds, Asamatsu. [inaudible] with clients staying on the sidelines, but when the stock prices came down, they bought. So that trend is strong, that's our view. As for our sales partners who are allocated to clients... when the market comes down, which presents difficulties for us, our partners, faiths, and our clients.

Speaker Change: Including the mindset of clients.

Nik: In July these businesses are strong.

Nik: Compared to the April through June quarter.

Nik: We have had several primary transactions, which supported the business, but clients investment mines.

Nik: Somewhat.

Nik: Cautious with clients staying on the sideline, but the way the stock prices came down.

Nik: The vote.

Takumi Kitamura: So that trend is strong. That's our view.

Nik: So that trend is so that's our view.

Takumi Kitamura: That's for our sales partners who are allocated to clients. When the market comes down, which presents difficulties for us, our partners face our clients. And market outlook can be explained by them so that our partners can stay close to the concerns of clients. So the decline in market is not necessarily about things for us. So it will be an opportunity for us to differentiate ourselves from other companies. So July situation is very strong. That's our evaluation.

Nik: As for our sales partners, who are allocated to clients.

Nik: When the market comes down.

Nik: <unk> presents and difficulties for us.

Nik: Our partners face clients.

Nik: And.

Otsuka: Market Outlook can be explained by them so that our partners can stay close to the concerns of clients. So the decline in the market is not necessarily a bad thing for us. It will be an opportunity for us to differentiate ourselves from other companies. So July's situation is very strong.

Nik: Market outlook.

Nik: Okay.

Nik: It can be explained by them so that our partners can stay close to the concerns of clients. So the decline in the market is not necessarily about the thing for us. So it will be an opportunity for us to differentiate ourselves from other companies. So July situation is very.

Niwa: That's our evaluation. Thank you. I understand. The next question is by Niwa-san of Citigroup Securities. Please go ahead.

Speaker Change #100: Strong that's our evaluation. Thank you I understood.

Takumi Kitamura: Thank you. I understood.

Koichi Niwa: The next question is by Niwa-san of City Group Security. Please go ahead. Thank you. Niwa of City good evening. I have two questions. Shareholder return and wealth management. First on shareholder return. Share buyback. I have two questions.

Speaker Change #104: The next question is.

Speaker Change #103: By <unk> of Citigroup Securities. Please go ahead.

Niwa: Thank you, Niwa of Citi. Good evening. I have two questions. Shareholder Returns and Wealth Management, Pressed on shareholder return. I have two questions. First, were you able to buy back at an early stage? So that's my first point. And secondly, at this timing of the announcement of results, are you engaged in any discussions regarding additional share buyback? Were there any discussions, or not?

Speaker Change #101: Thank you Neil of Citi. Good evening I have two questions.

Speaker Change #102: Shareholder return.

Speaker Change #105: And wealth management.

Speaker Change #106: First on shareholder return.

Speaker Change #106: Share buyback I have two questions first why.

Koichi Niwa: First, why were you able to buy back at an early stage? So that's my first point. And I have an announcement of results.

Speaker Change #106: Were you able to buyback at an early stage. So that's my first point and secondly.

Speaker Change #107: In this timing of announcement of results.

Koichi Niwa: Are you engaged in any discussions regarding additional share buyback? Were there any discussions or not?

Speaker Change #108: Are you engaged in any discussions regarding additional share buyback or are there any discussions or not.

Niwa: And then the second major topic is wealth management. And I have questions from two angles on assets. I have this feeling that you can already...

Koichi Niwa: And then the second major topic is Wealth Management. And I have questions from two angles on assets. I have this feeling that you can already revise upward your target for this term. How robust is the performance against your expectations? Secondly, one of the challenges was emerging wealth clients and acquisition of those clients. How is that going? You said you are now feeling the face of clients, the wave of clients from savings to investment. Has that been driven mainly by emerging wealth clients or not? Thank you.

Speaker Change #109: And then the second major topic is wealth management and I have asked questions from two angles.

Speaker Change #110: On assets.

Speaker Change #110: Yes.

Speaker Change #111: I have this feeling that you can already.

Niwa: Revise upward. Your target for this... How robust is the performance against your expectations? Secondly, one of the challenges was emerging wealth clients and acquisition of those clients. How is that going?

Speaker Change #112: Revised upward your target for this.

Speaker Change #113: How robust is the performance against your expectations Secondly, one of the challenge was emerging with clients and acquisition of those clients how is that going.

Niwa: You said you are now feeling the face of clients, the wave of clients from savings to investment. Has that been driven mainly by emerging wealth clients, or not? Thank you. Well, we placed that order early, so we were able to do it. And back then, the share price was low.

Speaker Change #114: You said you are now feeling the phase.

Speaker Change #114: Of clients the wave of clients from savings to investment.

Speaker Change #115: Has that been driven mainly by emerging wealth clients or not thank you.

Takumi Kitamura: Thank you for the questions. First, 100 billion share buyback. Why were we able to do that early? Well, we placed the order early, so we were able to do it. And back then, the share price was low. And since around January, we were estimating recovery of performance. So we studied the good timing and regarding the first quarter.

Speaker Change #116: Thank you for the questions first $100 billion share buyback why were we able to do that early.

Speaker Change #117: Well, we placed that order early so we were able to do it.

Speaker Change #117: And back then the share price was low and since around January.

Takumi Kitamura: And since around January, we were estimating a recovery in performance, so we studied the good timing. And regarding the first quarter... We just finished our previous round of shared buybacks, so... We are not specifically thinking about any further buyback in the first quarter. ROE beyond capital cost has been generated, and as I've said most recently, the performance is very sound for the month of July. I cannot make any judgment, but share buyback is a very important option in the capital policy, and I am feeling the expectations from investors, so we will continue to study the best timing and the best size of the share buyback, and Isn't it about time to revise upward the recurring asset target?

Speaker Change #118: We were estimating recovery of performance so.

Speaker Change #117: No.

Speaker Change #117: We.

<unk> studied the good timing and regarding the first quarter.

Speaker Change #117: Okay.

Takumi Kitamura: We just finished our previous round of share buyback, so we are not specifically thinking about any further buyback in the first quarter. ROE beyond capital cost has been generated, and as I've said, most recently the performance is very sound for the month of July.

Speaker Change #119: We just finished our previous round of share buyback so.

Speaker Change #119: We are not specifically thinking about any further buyback in first quarter. Our O E beyond capital cost has been generated and as I said most recently the performance is very sound for the month of July.

Takumi Kitamura: I cannot make any judgment, but share buyback is a very important option in the capital policy, and I am feeling the expectations from investors, so we will continue to study the best timing and the best signs of share buyback. It isn't about time to revise upward the recurring asset target. I think we are seeing growth steadily so far.

Speaker Change #119: I cannot make any judgment, but share buyback is a very important option in the capital policy and I am feeling good the expectations from investors. So we will continue to study the best timing and size of share buybacks.

Speaker Change #119: And.

Speaker Change #119: Yeah.

Speaker Change #120: Isn't it about time to revise upwards, the recurred asset recurring asset target.

Takumi Kitamura: I think we are seeing growth steadily so far. The most recent number was outperforming this. Nishihara Tomura, Masao Muraki, Koichi Niwa, Natsumu Tsujino, Takumi Kitamura, Nomura Holdings, We want to do more internal discussions on this matter because we don't want the targets to become a living creature on their own.

Speaker Change #120: We are seeing growth steadily.

Speaker Change #120: So far.

Speaker Change #120: Yeah.

Takumi Kitamura: The most recent number was outperforming this term's goals, but we want to do more internal discussions on this matter because we don't want the targets to become a living creature on its own. Recurring asset is something that expands by gaining the business from our customers, and we will discuss the appropriate level with our key personnel of world management. The other point was emerging world clients. In the workplace business, we are gaining new clients, and we have already up-performed the goal that we set forth. The workplace is quite attractive for the top management of issuer companies, so how can they retain high performance within their organization?

Speaker Change #120: The most recent number was outperforming.

Tim: Tim's goals, but.

Tim: But we want to do more internal discussions on this matter.

Thank you.

Tim: Because we don't want.

Tim: The targets to become a living creature on its own.

Takumi Kitamura: The recurring asset is something that expands by gaining business from our customers, and we will discuss the appropriate level with our key personnel in wealth management. And the other point was wealth, emerging wealth, and clients. In the workplace business, we are gaining new clients, and we have already outperformed the goal that we set forth. The workplace is quite attractive for the top management of issuer companies, so... How can they retain high performers?

Speaker Change #122: Recurring asset is something that expands by gaining the business from our customers and we will discuss the appropriate level with.

Speaker Change #122: Key personnel of wealth management and.

The other point with wealth.

Speaker Change #123: Emerging with.

Speaker Change #123: Clients.

Speaker Change #123: Workplace business, we are gaining.

Speaker Change #123: New clients and we have already outperformed the.

Goal that we set forth.

Speaker Change #123: Yeah.

Speaker Change #123: The work place is quite attractive for the top management of issuer companies. So.

Speaker Change #124: How long can they retain high performers.

Takumi Kitamura: Within their organization, how can they increase the engagement of their existing employees? They want to use their personnel as sources of growth. So investment banking and wealth management have common KPIs, and they are taking action, and we are seeing performance as a result of those efforts. Workplace service clients. Are they all qualified to be categorized as emerging wealth? We will have to...

Speaker Change #124: Within their organization, how can they increase the engagement of their existing employees.

Takumi Kitamura: How can they increase the engagement of their existing employees? They want to use their personnel as sources of growth. Investment banking and wealth management have common KPIs, and they are taking action, and we are seeing performance as a result of the efforts.

Speaker Change #124: And.

Speaker Change #124: They want to use their personnel as sources of growth so investment banking and wealth management have common kpis.

Speaker Change #125: And they are taking action and we are seeing performance as a result of those efforts.

Takumi Kitamura: Work-based service clients, are they all qualified to be categorized as emerging wealth? We will have to see, but we want to attract these customers, and we are providing support in way of investment education, so we want to increase the number of the Mura fans. Other than workplace business, new acquisition is doing well. Acquisition of new clients is performing well.

Speaker Change #125: Workplace service clients.

Speaker Change #125: Yes.

Speaker Change #126: Are they all qualify to be categorized as emerging wealth, we will have to.

Speaker Change #125: C.

Takumi Kitamura: But we want to attract these customers, and we are providing support in the way of investment education, so we want to increase the number of Nomura firms, other than workplace business. New acquisition is doing well. Acquisition of new clients is performing well. Sorry, I will comment on last fiscal year, but PWM, wealth management, PWM, and high net worth clients. The number of new clients increased by about 50% in comparison to the prior term.

Speaker Change #125: But we want to attract these customers and we are providing support in way of investment education. So we want to increase the number of Nomura fans.

Speaker Change #125: Yeah.

Speaker Change #127: Other than workplace business.

Speaker Change #127: New acquisition is doing well acquisition of new clients is.

Speaker Change #127: Performing well, sorry, I will comment on last fiscal year, but BW and wealth management PWM high net worth clients.

Takumi Kitamura: Sorry, I will comment on last fiscal year, but PWM, wealth management, PWM, high net worth of clients. The number of new clients increased by about 50% in comparison to the prior term. So if we look at the first quarter, there has been yet another 30% increase, including references. And I think we are on a very healthy cycle, good track. Thank you.

The new number of new clients increased by about 50% in comparison to the prior.

Tim: Tim So what if we look at the first quarter there has been yet another 30% increase in <unk>.

Otsuka: So if we look at the first quarter, there has been yet another 30% increase, including references. And I think we are on a very healthy cycle, on a good track. Thank you. Thank you for the wide-ranging comments. The next person asking the question is Otsuka-san from SBI Securities. Thank you. I am Otsuka from SBI Securities. I have one additional question. Page 25. The net inflow of cash and securities. The retail number alone is $460 billion for the first quarter, according to the disclosure.

Tim: Excluding references.

Tim: And I think we're on a very healthy cycle. Good track. Thank you.

Speaker Change #127: Okay.

Takumi Kitamura: Thank you for the wide-ranging comments.

Thank you for the wide ranging comments.

Wataru Otsuka: The next person asking the question is Otsuka-san from SBI Securities. Thank you. I am Otsuka from SBI Securities. I have one additional question. Page 25. The net inflow of cash and securities. The retail number alone is 460 billion for the first quarter, according to the disclosure. But cash and securities, if you split them, what's that split between them? The intention of my question is 460 billion; that's quite high level. So, from other financial institutions, clients may be moving their cash to Nomura accounts to buy securities. Is it what's happening?

Speaker Change #128: The next person asking the question is <unk> from <unk> Securities.

Speaker Change #128: Thank you I am Otsuka from ESB Securities I have one additional question.

Speaker Change #129: Page 25.

Speaker Change #130: Net inflows of cash and securities.

Speaker Change #131: Oh, the retails number alone is 460 billion for the first quarter according to the disclosure but.

Otsuka: But cash and securities, if you split them, what's that split between them? The intention of my question is $460 billion; that's a quite high level. So, from other financial institutions, clients may be moving their cash to Nomura accounts to buy securities.

Speaker Change #132: Cash and Securities if you split them, what's the split between them. The intention of my question is 460 billion, that's a quite high level. So.

So from other financial institutions.

So maybe moving their cash to Nomura accounts to buy securities is it what's happening. Thank you very much for your question.

Otsuka: Is that what's happening? Thank you very much for your question. I do not have the breakdown with me right now, but, as you said, 460 billion yen.

Takumi Kitamura: Thank you very much for your question. I do not have the breakdown with me right now, but as you said, 460 billion yen. In inflow, this is a big number, but I'm afraid I do not have the breakdown with me.

I do not have the breakdown with me right now, but as you said 460 billion yen.

Otsuka: In flow, this is a big number, but I'm afraid I do not have the breakdown with me. So from our IR office, our staff will get in touch with you. Okay, thank you very much. I will ask a detailed question during the IR interviews. Thank you. If you have a question, press sharp 7.

Speaker Change #132: Inc. Inflow. This is a big number but I'm afraid I do not have the breakdown with me.

Takumi Kitamura: So, from our IR office, our staff will get in touch with you. Okay, thank you very much. I will ask a detailed question through IR interviews. Thank you.

No.

Speaker Change #135: Our IR office or.

Speaker Change #136: Our stuff will get in touch with you.

Speaker Change #133: Okay. Thank you very much I'll ask a detailed question through IR interviews. Thank you.

Operator: If you have a question, press CHOP 7. There is no more question.

Speaker Change #134: If we have a question press shop seven.

Operator: As there are no more questions, we would like to finish the question and answer session. Now we would like to make the closing address by Nomura Hldgs....until late in the evening.

Speaker Change #137: There is no more question.

Operator: We would like to finish the question and answer session.

Speaker Change #138: I'd like to finish question and answer session.

Takumi Kitamura: Now we would like to make the closing address by Nomura Holding. Hang on till late in the evening. ROE 8%; we were able to report that after a long interval. Our target is ROE 8% to 10% or more, and we are at least at the minimum level of that target, which is good news. Of course, there was a tailwind of the market and high prices there, but that wasn't the only reason why. I believe that the numbers were achieved due to the efforts that we have made. So, we welcome your feedback, your chapter decisions, and your objective views.

Nomura Holdings: Now we would like to make the closing address by Nomura Holdings.

Speaker Change #140: Thing and until late in the evening, Inc.

Operator: ROE 8 percent. We were able to report that after a long interval. Our target is ROE of 8 to 10 percent or more, and we are at least at the minimum level of that target, which is good news. Of course, there was a tailwind from the market and high prices there, but that wasn't the only reason why. I believe that the numbers were achieved due to the efforts that we have made. This 8% ROE, we're not complacent with this at this level because we need to be consistently delivering such a level of ROE or else. We will not be able to gain the confidence of investors and shareholders.

Speaker Change #140: <unk> E, 8%, we were able to report that after a long interval.

Speaker Change #141: Our target is <unk>, 8% to 10% or more and we are at least at the minimum level of that target, which is good news.

Speaker Change #141: Of course, there was the tailwind of the market and high prices that but that wasn't the only reason why.

Speaker Change #141: I believe that the numbers were achieved due to the efforts that we have made this 8% Arrow E. We're not complacent with this at this level, because we need to be consistently delivering such level of Roe or else.

Speaker Change #141: We will not be able to gain the confidence of the investors and shareholders, we know that well so.

Speaker Change #141: Yes.

Operator: We know that well. So... This was quite a healthy results announcement, but there are... There are still outstanding issues that we need to tackle, so we will take these actions in order to maximize our corporate value. So... We welcome your feedback, your sharp criticism, and your objective views, and please be frank in sharing your views with the IR. Once again, thank you for joining us. Thank you for taking your time. And that concludes today's conference call. You may now disconnect your line. The host has placed this conference on hold.

Speaker Change #141: This was a quite a healthy results announcement, but the Ah <unk>.

Speaker Change #141: <unk> outstanding issues that we need to tackle.

Speaker Change #141: So we will take these actions.

Speaker Change #141: In order to maximize.

Speaker Change #141: Corporate value.

Speaker Change #141: Yes.

So.

Speaker Change #141: We.

Speaker Change #141: Welcome your feedback your shops criticism.

Speaker Change #141: And your objective view.

Takumi Kitamura: And please be frank in share your views with the IR. Once again, thank you for joining us.

Speaker Change #141: And please be Frank in Shanghai with the I once again, thank you for joining us.

Operator: Thank you for taking your time, and that concludes today's conference call. You may now disconnect your lines. The host has placed this conference on hold.

Speaker Change #141: Thank you for taking your time and that concludes today's conference call.

Speaker Change #143: You may now disconnect your lines.

Speaker Change #142: The host has placed this conference on hold.

Speaker Change #142: [music].