Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Year Ended March 31, 2017
(Unaudited)Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
March 31, 2016

March 31, 2017

Increase (Decrease)

Assets103,715

94,066(9,648)

208

127

(81)

Money held in trust

55,341

52,247(3,094)

Securities

24,10015,700(8,400)Accrued investment trust management fees

14,131

16,2872,155

Accrued investment advisory fees

7,309

7,481

171

Deferred tax assets

2,028

1,661(366)Other current assets605

573

(32)

Allowance for doubtful accounts

(10)

(11)

(1)

Fixed assets

32,083

21,353(10,730)

Tangible fixed assets

1,176

1,001

(175)

Intangible fixed assets

7,681

7,185

(496)

Investments and other

23,225

13,165(10,059)

Investment securities

9,216

1,233

(7,983)

Investment in subsidiaries and affiliates

10,958

8,124(2,834)

4544

(0)

Prepaid pension cost

2,777

2,594

(183)

Deferred tax assets

-960

960

Other investments

226

208

(17)

135,799

115,419(20,379)

Current assets
Cash and cash equivalents

Long-term guarantee deposits

Total assets1

(Millions of Yen)
March 31, 2016

March 31, 2017

Increase (Decrease)

Liabilities

27,53825,055(2,483)

Investment trust distribution of income
payable11(0)Investment trust redemptions payable

31

31

-

Accrued commission payable

4,537

5,242

704

Other accounts payable

7,284

5,126

(2,157)

Accrued expenses

8,872

9,461

589

Accrued income taxes

1,838

714

(1,123)

Accrued bonuses

4,809

4,339(469)

163

137

(25)

3,303

3,485

181

2,708

2,947

238

Reserve for loss on distribution of incomeand redemption after expiration

526

538

12

Deferred tax liabilities

68-

(68)

Total liabilities

30,84228,540(2,301)

Shareholder's equity

99,60686,837(12,769)

Common stock

17,18017,180-Capital reserve

13,72913,729-Additional paid-in capital

11,72911,729-Other capital surplus

2,0002,000-

68,69655,927(12,769)

Earned surplus reserve

685

685

-

Other earned surplus

68,011

55,242(12,769)

General reserve

24,606

24,606-

Earned surplus brought forward

43,40530,635(12,769)

5,349

41(5,308)

5,349

41(5,308)

Total net assets

104,956

86,878(18,078)

Total liabilities and net assets

135,799

115,419(20,379)

Current liabilities

Other current liabilities

Long-term liabilities
Reserve for retirement benefits

Earned surplus

Valuation and translation adjustments
Net unrealized gain on investments

2

Nomura Asset Management Co., Ltd.
Unconsolidated Income Statement Information (Unaudited)(Millions of Yen)
Year Ended
March 31, 2016
(A)

Operating revenue

Year Ended
March 31, 2017
(B)

Comparison
B/A (%)

136,016

125,327

92.1

Investment trust management fees

104,445

96,594

92.5

Investment advisory fees

31,351

28,466

90.8

Other operating revenue

219

266

121.5

Operating expenses

80,66273,254

90.8

Commissions

46,53139,785

85.5

Research

28,06826,758

95.3

Other operating expenses

6,062

6,711

110.7

General and administrative expenses

25,827

26,059100.9Compensation and benefits

14,613

14,27097.7

Occupancy

1,230

1,222

99.4

Depreciation of fixed assets

2,589

2,730

105.4

Other general and administrative expenses

7,394

7,835

106.0

Operating income

29,52626.01288.1

Non-operating income7,991

8,461

105.9

Non-operating expenses

1,321

77

5.8

Ordinary income

36,19634,39795.0

Special profits

146126

86.7

Special losses

156

15

10.2

Income before income taxes

36,18634,507

95.4

Income taxes - current

9,806

7,147

72.9

Income taxes - deferred

744

1,722

231.4

25,63525,637100.0

Net income

3Nomura Asset Management Co., Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For The Year Ended March 31, 2016
(Millions of Yen)

Shareholder's equity
Capital reserve
Commonstock

Balance at beginning of year

17,180Earned surplusOther Earned surplus

Additional
paid-incapital

OthercapitalsurplusTotal
capitalreserve

Earnedsurplusreserve

11,729–11,729685

Generalreserve

Total
Earnedsurplus24,60635,89061,182

90,092(19,933)(19,933)(19,933)

25,63525,63525,635

144

144

2,144

1,668

1,668

1,668

Cash dividends
Net profit
Increase from theabsorption-type merger

2,000

Total
Shareholder's equity

Earnedsurplusbrought
forward

2,000

Increase from theabsorption-type split
Other-net
Change in the term

––

2,000

2,000–

–

7,514

7,514

9,514

Balance at end of year

17,18011,7292,000

13,729685

24,60643,40568,696

99,606(Millions of Yen)

Valuation and translation adjustments

Balance at beginning of year

Net unrealized gain
on investments

Total Valuation andtranslation
adjustments

Total net
assets

6,893

6,893

96,985

Cash dividends(19,933)

Net profit

25,635

Increase from theabsorption-type merger

2,144

Increase from theabsorption-type split

1,668

Other-net(1,543)(1,543)(1,543)

Change in the term

(1,543)(1,543)

7,971

Balance at end of year5,349

5,349

104,956

4

For The Year Ended March 31, 2017
(Millions of Yen)

Shareholder's equity
Capital reserve
Commonstock

Balance at beginning of year

17,180Earned surplus
Other Earned surplus

Additional
paid-in
capitalOther
capitalsurplusTotal
capitalreserve

Earnedsurplusreserve

11,7292,000

13,729685

Total
Shareholder's equityGeneralreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus24,60643,40568,696

99,606(38,407)(38,407)(38,407)

25,63725,63725,637

Dividends of surplus
Net profit
Other-net
Change in the term––––––(12,769)(12,769)(12,769)

Balance at end of year

17,18011,7292,000

13,729685

24,60630,63555,927

86,837(Millions of Yen)

Valuation and translation adjustments

Balance at beginning of year

Net unrealized gain
on investments

Total Valuation andtranslation
adjustments

Total net
assets

5,349

5,349

104,956

Dividends of surplus(38,407)

Net profit

25,637

Other-net(5,308)(5,308)(5,308)Change in the term

(5,308)(5,308)(18,078)

Balance at end of year

4141

86,8785Significant Accounting Policies
1. Basis and Method of Valuation for Securities
Securities held are accounted for as follows:(1) Stocks of subsidiaries and affiliates Recorded at cost using the moving average method(2) Other Securities:(i) with market value
Recorded at market value
The difference between the cost using the moving averagemethod and market value less deferred tax is recorded as“Net unrealized gain on investments” in “shareholder’sequity” on the balance sheet.
(ii) without market value
Recorded at cost using the moving average method
2. Basis and Method of Valuation for Money In Trust
Recorded at fair value
3. Depreciation/Amortization Method of Fixed Assets(1) Depreciation of tangible fixed assets
Tangible fixed assets are depreciated by the declining-balance method, except for buildings(excluding facilities attached to buildings) acquired on or after April 1, 1998 and both facilities
attached to buildings and structures acquired on or after April 1, 2016, which are depreciated by
the straight-line method.
(2) Amortization of intangible assets
Intangible assets are amortized primarily over their estimated useful lives on the straight-line
method.
4. Provisions(1) Allowance for doubtful accounts
To provide mainly for loan losses, the company made provisions for doubtful accounts based onan estimate of the maximum uncollectible amount calculated using its historical loss ratio or areasonable estimate based on financial condition of individual borrowers.
(2) Accrued bonuses
To provide for bonus payments, accrual is recorded at the estimated amount to be paid as futurebonuses to employees.
(3) Reserve for retirement benefits
Allowance for retirement benefits is provided for future payments of retirement benefits toemployees at an estimated amount based on the retirement benefit obligation and the fair value ofthe pension plan assets.
The benefit formula method is used for attributing the estimated future payments to the amountof allowance for retirement benefits in this fiscal year.
Any actuarial differences arising from the tax-qualified pension plan are amortized from thefollowing fiscal year when the differences arose by the straight-line method over a period within theaverage remaining years of service of the eligible employees, while those arising from thelump-sum payment plan are fully expensed in the following fiscal year when the differences arose.
Prior service costs arising from the lump-sum payment plan and tax-qualified pension plan areamortized by the straight-line method over a period within the average remaining years of service ofthe eligible employees from the fiscal year when they were incurred.
(4) Reserve for loss on distribution of income and redemption after expiration
To provide for investment trust distribution of income and investment trust redemption moneyrecognized as revenue by prescription, the estimated amount of payments in the future is recorded,based on actual payments.

6

5. Accounting for Consumption Taxes
National and local consumption taxes are accounted for based on the tax exclusion method.
6. Consolidated Tax Return System
Consolidated tax return system is applied.

Changes in Accounting Policies
Practical treatment concerning the change in depreciation method related to tax reform in FY2016"(PITF No. 32, June 17, 2016) was applied in the period in accordance with the revision of theCorporation Tax Law And the depreciation method for facilities attached to buildings and structuresacquired on or after March 31, 2016 has been changed from the declining balance method to thestraight-line method.
The effect on financial statements during the reporting period is insignificant.

Notes to Balance Sheet Information
1.

Accumulated Depreciation on Tangible Fixed Assets(Millions of yen)

Year Ended
March 31, 2016
3,774

Year Ended
March 31, 2017
4,013

Notes to Income Statement Information
1.

Special Profits consist of the following:(Millions of yen)

Gain on sales of investment securities and other
Gain on liquidation of subsidiaries and associates
Receipt of stock option income

2.

Year Ended
March 31, 2016
5096

Year Ended
March 31, 2017
264159Special Losses consist of the following:(Millions of yen)

Loss on sales of investment securities
Loss on valuation of investment securities and other
Loss on disposal of fixed assets

7Year Ended
March 31, 2016
95
60

Year Ended
March 31, 201769

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)March 31, 2016

March 31, 2017

Unit Type

122108(14)Open Type16,472

19,667

3,194

Stock Investment T rusts - Public

16,59419,775

3,180

Bond Investment Trusts

590

480(110)

Money Management Fund

508

55(452)

5,259

5,074(185)6,358

5,610(747)

Unit Type

1,748

1,940

192

Open Type

1,500

1,944

443

Private Investment Trusts

3,248

3,885

636

Total

26,201

29,271

3,069

OthersBond Investment Trusts - Public2.

Increase (Decrease)

Assets under Investment Management and Advisory Contracts(Billions of yen)March 31, 2016

March 31, 2017

Domestic - General

243

234

(9)

Domestic - Pension

7,446

8,081

635

Overseas

5,287

4,931(356)

12,977

13,247269

Total8Increase (Decrease)Quarterly Income Statement Information(Millions of yen)
1st quarter
From April 1, 2016
To June 30, 2016

Operating revenue

2nd quarter3rd quarter

4th quarter

For the year

From July 1, 2016

From October 1, 2016

From January 1, 2017

From April 1, 2016

To September 30, 2016 To December 31, 2016

To March 31, 2017

To March 31, 2017

30,59130,14331,73232,858125,327

Investment trust management fees

23,31323,25624,36725,656

96,594

Investment advisory fees

7,221

6,830

7,279

7,134

28,466

Other operating revenue

5556

8667

266

Operating expenses

17,992

17,702

18,58818,971

73,254

Commissions

9,802

9,655

9,985

10,34139,785

Research

6,710

6,481

6,839

6,726

26,758Other operating expenses

1,479

1,566

1,762

1,902

6,711

General and administrative expenses

6,124

6,541

6,817

6,576

26,059Operating income

6,474

5,899

6,327

7,311

26,012Non-operating income

3,579

2,447

2,076

357

8,461

Non-operating expenses

38(11)

16

33

77

10,015

8,359

8,386

7,635

34,397

Special profits

1363

15

34

126

Special losses--

9615

Income before income taxes

10,028

8,422

8,392

7,663

34,507

Income taxes - current

1,093

1,051

2,177

2,825

7,147

Income taxes - deferred

1,482

1,042

(233)

(568)

1,722

Net income

7,452

6,329

6,448

5,407

25,637

Ordinary income

9