Community Affairs Report 2011Nomura EMEA

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Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries.

Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs over 27,000 staff worldwide. Nomura’s unique understanding of Asia enables the company to make a difference for clients through three business divisions: retail, wholesale (global markets and investment banking), and asset management.

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Over 12,000 young people benefited

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The Nomura

Charitable Trust

Community Affairs Highlights 2011For future generations

Welcome to Nomura’s first Community Affairs report. This report brings you up to date with the achievements and impact of Nomura’s continuing commitment to invest in future generations.Everything Nomura does through the bank’s award winning community investment programme is focused towards one end: helping disadvantaged young people break through the limitations of their environment and raising their aspirations to reach new goals. To have the most impact, Nomura has developed a focused approach to its programmes and supports those initiatives which deliver the most meaningful, sustainable results to everyone involved.

Thanks to support from all levels of the bank, and the way that activities are embedded throughout the business, Nomura has created a range of activities and initiatives which are changing the lives of thousands of young people in neighbouring communities.

This was a record year, both in terms of money raised and the number of our employees involved – whether by providing professional skills through involvement on the board of a charity, or through participation in one of seven regular school volunteer schemes.

Over the page, you’ll find a snapshot of what Nomura and its charity partners have achieved together. The stories show the difference Nomura and its employees are making to disadvantaged young people, laying the groundwork for happier, more successful future generations.

10,362 hours of Nomura volunteer support

Nomura raised £1,031,792

for Teenage Cancer Trust

Nomura supported 30 local organisations

The Nomura Charitable Trust supported the RSC

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Employee

Engagement

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Fundraising

Partnership

Community Engagement

Cultural Programmes

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John Phizackerley

Chief Executive Officer, EMEA

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Why we put Community Affairs at the heart of Nomura

Banking is about identifying opportunities, and investing for the future.

This is why we give such a high priority to developing our community investment activities. Recognising our social commitments, we use our skills to help create a better future for less fortunate young people in our local communities.

We have already made great progress with a range of powerful and imaginative programmes. We are working with schools directly on a number of levels, doing what we can to make a difference. We have also joined forces with charity and local community partners to provide financial contributions, resources and our time to have a significant impact. In addition we have also built up a remarkable volunteer culture within the firm from every level of the company.

By forging our charity and educational partnerships, and developing highly effective employee volunteer schemes, Nomura is considered as an integral and valued partner in the communities where we operate.

For everyone involved, thank you for your outstanding support – both in 2011 and in the years to come. I now look forward to strengthening our existing programmes, and adding new ones, this year and beyond.

There are many reasons we can be proud to work at Nomura. This is one of them.

John Phizackerley Chief Executive Officer, EMEA

An integral part of our local communities

Our focus for this year was to further embed our activities across the organisation and to act as a practical, helpful partner where we operate. This report gives you more detail, and shows just how much of a difference we’ve made.

Early on, we decided that to have the biggest impact, our focus would be on supporting disadvantaged young people: giving them the support and the tools they need to overcome the obstacles of poverty and neglect, and develop vital life skills.

By planting these seeds early on, we believe we can multiply the effectiveness of our monetary donations and of our volunteering work many times over and help prevent problems from developing later in life. That way, we aspire to improve the life chances of not only these young people, but also for future generations.

When it comes to specific programmes, the past year has seen a sustained and continuous drive to invest more and give back to those most in need. We’ve selected charity partners in both London and the Middle East to improve the education, aspirations and employment prospects of young people.

A key component to the success of our programmes has been the involvement of our employees, champions and management team, who have each played a key role in helping us to deliver our programmes. As a result, our activities are now integrated across our business and a key component of our culture.

You can see what some of our partner organisations have to say about Nomura’s work, so please read on to learn more about our activities, impact and the results of our contributions.

Anthony Harte Head of Community Affairs, EMEA

Anthony HarteHead of Community Affairs, EMEA

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Community Affairs

“I tell the Nomura volunteers: You touch their lives, you influence them.”

Patrice Canavan Headteacher Oaklands Secondary School

“Our partnership with Nomura is fully embedded within the culture of the school.”

Angie Sharma Headteacher Southwark Park Primary School

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Students regularly visit Nomura’s trading floors

Nomura invests early on to help

the capital’s most disadvantaged

Every student in Year 7 at Oaklands School visits Nomura

Community EngagementInvesting in education

All Nomura’s community efforts are focused on supporting the next generation by increasing the life chances of disadvantaged young people. Where better to do this than in school?

That’s why Nomura has built sustainable partnerships with two local schools in London, combining much-needed financial support with the knowledge, action and dedication of Nomura employees.

Nomura began 2011 by setting itself a formidable challenge, expanding from four regular volunteer programmes to seven at Oaklands Secondary School and Southwark Park Primary School. These programmes included a host of new ways to support students, such as open days, skills workshops at the school and at Nomura’s offices.

Nomura’s schools programmes are designed to improve the skills of the students and increase their confidence, through a variety of one-to-one support. Nomura even runs a French scheme and a Japanese club – helping students to learn basic phrases, while providing an insight into different cultures and customs. All of these activities were made possible thanks to the contributions of 86 Nomura volunteers, all regularly giving their time and unique skills.

All Nomura’s programmes have benefited from strategic support and senior level involvement. Working together with these schools, Nomura is continuing to expand the scope and depth of the school partnerships to increase the number of young people supported.

<Community EngagementInvolvement across the business

To encourage all Nomura employees to engage in our community investment programmes, champions are appointed in every business division. Champions are senior employees who recruit volunteers and encourage their colleagues across their division to become involved in all aspects of the community programme. Each division decides on its own priorities and strategy, with a number of divisions developing long-term community partnerships, some examples include:

Investment BankingEmployees from the Investment Banking division partnered with Young Enterprise London to host three “Banks in Action” workshops with over 75 volunteers supporting seven schools. The programme enables young people to learn about the role of banking in a global economy and the wide range of career opportunities available in the financial sector. The programme is funded by The Nomura Charitable Trust.

OperationsThe Operations division established a long-term partnership with Downside Fisher Youth Centre. The Nomura team run employability workshops, focused on interview skills, CV writing and other soft skills.

TechnologyAs a division, Technology have supported a number of employability workshops through the Tower Hamlets Education Business Partnership, including “Head to Head” which provides interview sessions and “Getting Ahead” which helps develop employability skills through group activities.

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<<What the students say“My mentor gave me hours of his time and really believed in me. Now I get on a lot better with my teachers. There’s no limit to what I can aim for.”

“The programme was excellent, I learnt about what happens in the world of employment, whilst learning new and different skills.”

“The progress I have made in reading is great, but the biggest difference is in my self-confidence. It really does make a difference.”

What the teachers say“The students who benefited from Nomura volunteers’ help have done significantly better in their reading skills in relation to the whole cohort.”

“This programme has provided positive role models and the experiences of a lifetime.”

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Volunteer activities are used to enhance the school’s curriculum

Volunteers have provided

more than 1,700 hours

VolunteeringInvesting time and skills in future generations

Nomura volunteers regard their time supporting the multiple community projects as time well spent. As well as the sheer satisfaction of helping young people in need, volunteers benefit by boosting skills and personal effectiveness.

Joining a Nomura volunteer programme offers an unrivalled way to meet new people, gain useful experience – and develop and deepen bonds with other colleagues. This is borne out by research. In a volunteer survey, Nomura employees were asked how much they believed their volunteering had improved a range of core business skills. Over the period of tracking, managers of volunteers testified to an improvement in interpersonal skills by an average 28 per cent. The results also clearly showed that the benefits of being involved led to enhanced teamwork, creative thinking and communication skills.

Part of the way Nomura implements its volunteer programme for the 40 per cent of the employees who are involved, is by offering a variety of opportunities with differing levels of commitment. Here are some examples.

Individual VolunteeringNomura provides tailored volunteering activities based on individual requirements and interests. These opportunities suit the skills and talents of employees.

School Volunteer Schemes These schemes are designed to raise academic achievement and provide pupils in disadvantaged areas with the opportunity to interact with a business volunteer. Nomura currently operates seven weekly volunteer schemes including literacy, numeracy and business mentoring.

Team ChallengesHere, a group of volunteers spends a day working together in the community. Activities range from practical tasks such as gardening or decorating, to interactive one-to-one support.

In addition, Nomura offers a number of volunteer opportunities to employees through the work of The Nomura Charitable Trust. Here, the focus is on matching the financial contributions of the Trust with the time, skills and talents of Nomura employees.

VolunteeringThe numbers

When you’re working to support young people in deprived local communities, any help is welcome. But it’s particularly valued when it comes from people with the passion and drive to help. This is exactly what Nomura employees offer to local community and charity partners.

All told, in 2011 Nomura volunteers contributed 10,362 hours in working time to the multiple volunteer programmes – representing a significant investment of time and resources.

View from the topFor a volunteer programme to make the biggest possible difference, it needs to be fully supported from the very top of the company. That’s why over 15 senior executives from all business divisions are giving their ongoing support and inspiration as champions. Here are some personal insights:

Malcolm Horton, Managing Director, Corporate Oaklands School Governor

“As a School Governor, I encourage all employees to support Oaklands through a variety of interventions to have a positive impact on the next generation.”

Andrea Reeves, Executive Director, Fixed Income Divisional champion

“I find being involved hugely rewarding and I am grateful to have the opportunity to give something back.”

Dominic Cashman, Managing Director, Corporate Southwark Park School Governor and London Legacy 2020 board member

“By volunteering, employees are able to develop their own skills, while helping the students to achieve their full potential.”

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Employees help students gain crucial life skills

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The new cancer centre will provide essential services

Staff from TCT worked at

Nomura over a two year period

The centre will include these state of the art treatment pods

“The dedication and generosity of Nomura employees has been an inspiration to everyone at Teenage Cancer Trust.”

Simon Davies CEO of Teenage Cancer Trust

How will the money be spentAll funds raised will go towards a new state of the art Day Care Centre for young people with cancer at University College Hospital, London. Support will pay for the build and fitting of eight specialist treatment pods for the young patients.

Teenage Cancer TrustA flagship fundraising partnership

Every two years, Nomura’s London employees select a new charity partner. The first step is to interview over 30 charities and shortlist for a committee to review. Nomura employees then vote online to select a single charity which will benefit from a two-year fundraising partnership.

Once the charity is chosen, Nomura embeds the organisation into the business so that they become an integral part of the daily operations of the bank.

Teenage Cancer Trust won the employee vote because of the charity’s remarkable work with young cancer sufferers: people whose needs often go unrecognised. The charity focuses on the needs of teenagers and young adults with cancer, by providing specialist units in NHS hospitals for teenagers. At the start of the partnership, Teenage Cancer Trust needed to expand its offering to fund dedicated treatment pods, and to open a much-needed Day Care Cancer Centre in London’s University College Hospital (Europe’s first ever).

Nomura set about to raise funds to support the construction costs of this new centre. The partnership delivered on a number of levels through a collaborative, high impact campaign. Notably, Nomura provided Teenage Cancer Trust a dedicated desk-space at their One Angel Lane office and the charity was provided open-door access to Nomura’s senior executive team, right up to CEO level.

This radical approach has brought remarkable results

� Nomura raised over £1,031,792 – against an initial target of just £100,000 – and Nomura is the lead contributor in the development of the new Day Care Centre at University College Hospital in London

� Thanks to Nomura’s support, Teenage Cancer Trust can double its reach in treating young people diagnosed with cancer in London

� Nomura was the first title sponsor of Teenage Cancer Trust’s annual concerts at the Royal Albert Hall, helping the charity to raise over £1.4m in 2010 alone

Teenage Cancer TrustIn concert

One of the major events in Nomura’s fundraising calendar was the Teenage Cancer Trust concert series at the Royal Albert Hall. Nomura also became the first ever, exclusive title sponsor for this event.

The nine nights of music and comedy included high profile performers and a mass communications and advertising campaign. More than 38,000 people attended the concert series, and 1,363 Nomura employees, clients and guests also attended.

In addition to the sponsorship, 53 volunteers helped raise money on the night and a private performance from Roger Daltrey, Patron of Teenage Cancer Trust for Nomura’s clients helped raise £27,000. The concert series became the most successful held at the Royal Albert Hall in the charity’s history.

Events throughout the yearNomura worked year-round to keep Teenage Cancer Trust funds flowing, with a full calendar of fun and imaginative events. These included the annual Nomura Challenge, where over 60 employees participated in an adventurous race including biking, canoeing and hiking challenges raising an astounding £100,000.

One-off events included Roger Daltrey visiting the trading floor to raffle a vintage album, skydives, celebrity Halloween, Oscars and World Cup quiz nights, marathons and the London to Paris cycle challenge.

A new partnershipNomura’s successful fundraising partnership with Teenage Cancer Trust concluded in April 2011, smashing all expectations. In May, Rainbow Trust was selected by more than 50 per cent of employees and a new two year fundraising campaign was launched. Money raised by employees will fund a brand new Central London care team of Family Support Workers providing help to families facing the heart-breaking news that their child might die.

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Roger Daltrey, Patron of Teenage Cancer Trust

The partnership included Nomura’s clients

The Nomura Challenge has become an annual event Employees spent more than

9,000 hours fundraising

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Teenage Cancer Trust

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Lord MarshallChairman

Trustees

Gunner BurkhartLeila GomesBen IversenYasuo KashiwagiPiers Le MarchantPhilip LynchJohn PhizackerleyAndrea ReevesPaul Spanswick

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The Nomura

Charitable Trust

The Nomura Charitable TrustInvesting for future generations

Nomura established its charitable trust to invest in future generations, both in the UK and in the Middle East. The Trust does this by funding charities which open up new opportunities for disadvantaged young people living in poverty, deprivation and high risk situations.

Supporting over 12,000 young peopleThe Trust is funded both by Nomura and its employees. Currently, the Trust has provided grants to 13 charities, supporting a total of over 12,000 disadvantaged young people.

Who exactly does the Trust support?Specifically, the Trust seeks out charities that focus on educational achievement, employability potential, and building up the aspirations of disadvantaged young people.

This means the Trust looks for partners who aim to raise educational attainment in areas such as literacy or numeracy, or by reducing truantism. The Trust also works with groups that teach new skills in entrepreneurial thinking, financial literacy and employability. In addition, the Trust supports the invaluable work carried out by charities helping young people to develop self-esteem, social networks, and discover leadership through cultural, sports and other activities.

It’s an employee-led Trust – built on employees’ ideasNot only are the charities recommended by Nomura employees, but each grant is closely linked to meaningful employee volunteering opportunities. So when the Trust makes grants, Nomura’s total contribution is more than just money. Where appropriate, the Trust also appoints senior Nomura executives as trustees or advisers to the charities supported, to help an organisation strengthen its governance and strategic direction.

The Nomura Charitable TrustIn action

How does the Trust add to the quality of young people’s lives in practice? Here are just a few examples.

Kids CompanySafety and security Kids Company carries out invaluable, often life-saving work, by providing a safe and secure environment for children and young people who suffer a serious risk of neglect, abuse and trauma. The charity directly helps over 14,000 vulnerable youngsters living in the most deprived areas of London.

The Nomura Charitable Trust made a grant of £100,000 to fund the creation of ‘Arches III’ – a new centre to deliver both vital education and practical care to over 2,200 disadvantaged young people in South London. Along with the grant, the Trust has donated 50 computers and monitors and provided significant volunteer support to help with the renovations of the centre.

Tower Hamlets Education Business Partnership (THEBP)Boosting employability THEBP works hard to give young people in Tower Hamlets the ambition, belief and skills they need to transform their futures. The charity does this by encouraging and enabling them to pursue meaningful careers. The charity recruits both businesses and business volunteers to help young people of all abilities develop basic employability, finance and enterprise capabilities.

The Nomura Charitable Trust has pledged a grant of £130,000 to develop the Passport to Employability (P2E) programme. This course provides a structured approach to employability skill development, and leads to a formal GCSE-equivalent qualification.

Finding the right projectsThe Trust selects those employee suggested organisations which focus on educational achievement, employability potential, and building the aspirations of disadvantaged young people. Grants are considered for charities that serve a broad range of community residents and provide significant, measurable improvement in young people’s quality of life. The work must also be sustainable and be managed competently through creativity, strong leadership and accountability. The Trust also endeavours to work with people who can make good use of volunteers from Nomura in addition to the funding provided.

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Self-esteem and leadershipLIFEbeat holds action-packed, week-long residential camps for disadvantaged youngsters, and also offers ongoing development support. The camps use an innovative, holistic model of youth empowerment which gives young people the motivation, social and personal techniques they need to play a positive role in their community. Through the experience, the young people gain confidence, build self-esteem – and discover and nurture their inherent leadership qualities.

The Nomura Charitable Trust made a grant of £71,900 to fund 90 places for young people to attend a LIFEbeat camp. Some of these places were taken by students from Oaklands, Nomura’s partner secondary school.

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LIFEbeat

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Dragon Awards at the Mansion House in London

Nomura win the Lord Mayor’s

‘Heart of the City’ Dragon Award

Taran Wilkhu was awarded an ELBA Volunteer Award

Paul Spanswick speaks at the Greater London Authority

Business in the Community (BITC) Award for Excellence

A year of major achievementAwards

No reward is greater than the enthusiastic response of young people who know that their lives have changed for the better – that new ways of thinking are possible – and that new opportunities lie ahead of them.

But it’s also satisfying that Nomura’s work has been recognised with a number of awards in 2011.

Awards to date

� Heart of the City Dragon Award

� Business in the Community, Education Award for Excellence

� Highly Commended for two Business Charity Awards

� ELBA Volunteer Award

� Shortlisted for Charity Times Award

Partners to be proud of

While connecting with young people through its community investment programmes, Nomura has also developed strong relationships with many of the other people and groups working to support them. These include schools, teachers, and various charities.

They have become close colleagues, and Nomura is proud to stand alongside them.

Community PartnersBarts and the London Charity Barts and the London NHS Trust Business in the Community Career Academies UK City Action CIVITAS Community Links Downside Fisher Youth Club East London Business Alliance Fairbridge Friends of The Citizen Foundation Greenhouse Schools Project Heart of the City Kids Company LIFEbeat London Legacy 2020 Oaklands Secondary School Prince’s Trust Rainbow Trust Royal Shakespeare Company Save the Children SHINE Southwark Park Primary School Teach First Teenage Cancer Trust The Brokerage Citylink The Prince’s Teaching Institute Tower Hamlets Education Business Partnership Welfare Association Young Enterprise London

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Partners

We use the London Benchmarking Group’s (LBG) reporting model to calculate our community contributions which provides a standardised way of managing and measuring corporate community engagement.

52%

19%

6%

23% 14%

20%

66%

Direct contributions £1,079,936*Time £394,744In-kind £124,546Management costs £473,951

Total £2,073,177

EducationHealthOther causes

* Includes grants made from Nomura and The Nomura Charitable Trust

Contributions Subject focus of direct contributions*

Employees involved within company time= 100 employees

1,463Total volunteer hours within company time

= 100 hours

10,36216

Financials

Nomura’s Corporate Citizenship Report 2011 covers the firm’s global activities, including our community and charitable commitments in other regions. For further details visit:

www.nomuraholdings.com/csr

Looking forward…Thank you for reading this report, and for keeping up to date with Nomura’s Community Affairs activities.

For more information, contact community@nomura.com

©Nomura International plc 2011. Nomura is the global marketing name of Nomura Holdings, Inc. (Tokyo) and its direct and indirect subsidiaries worldwide including Nomura International (Hong Kong) Limited, licensed and regulated by the Hong Kong Securities and Futures Commission, Nomura Securities International, Inc (New York), a member of FINRA, NYSE and SIPC and Nomura International plc (London), authorised and regulated by the Financial Services Authority and member of the London Stock Exchange. This is not an offer, solicitation or recommendation to buy or sell securities. For further information about Nomura, please visit www.nomura.com

Community Affairs Report 2011Nomura EMEA1 Angel Lane, London EC4R 3AB Tel: +44 (0)20 7102 1000Fax: +44 (0)20 7102 9090