Nomura Asset Management Co., Ltd.
Financial Summary (Non-consolidated)
For The Six Months Ended September 30, 2004

Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
September 30, 2004

March 31, 2004

Increase/(Decrease)

September 30, 2003

Assets65,124

95,129(30,004)

55,813

Cash and deposits

11,83782,903(71,065)

30,496

Short-term loan receivable from a parent

25,000-25,000-Cash deposited for investment trust
redemption and distribution of income

19,0302,354

16,676

13,724

Accrued investment trust management fees

5,294

5,441

(146)

4,254

Deferred tax assets

442

232

210

377

Other current assets

3,535

4,199

(664)

6,963

Allowance for doubtful accounts

(16)

(3)

(12)

(3)

75,58599,255(23,670)

144,842

851

884

(33)

1,392

Intangible assets

3,532

3,544

(12)

3,543

Investments and other

71,202

94,825(23,623)

139,906

35,48959,348(23,858)

103,585

15,73915,739-15,59816,40016,400-17,400

2,630

2,638

(7)

2,637

Other investments

950

708

242

693

Allowance for doubtful accounts

(8)

(8)

0(8)

140,710

194,384(53,673)

200,656

Current assets

Fixed assets
Tangible fixed assets

Investment securities
Investment in subsidiaries and affiliates
Long-term
subsidiaryloans

receivable

Long-term guarantee deposit

Total assets

froma1

(Millions of Yen)
September 30, 2004

March 31, 2004

Increase/(Decrease)

September 30, 2003

Liabilities

27,58910,532

17,057

20,797

Investment trust distribution of income
payable19,014

2,252

16,762

13,664

Investment trust redemptions payable

1,072

1,126(54)1,225

Accrued commission payable

2,323

2,430

(106)

1,935

Accrued income taxes

171

25

146

541

Accrued bonuses

730

730

-

600

4,277

3,967

311

2,830

7,811

10,575(2,764)

8,959

Reserve for retirement benefits

5,203

5,021

181

4,938

Deferred tax liabilities

2,446

5,504

(3,058)

3,935

162

49

112

85

35,401

21,107

14,29329,757

Common stock

17,18017,180-17,180Capital reserve

11,72911,729-11,72911,72911,729-11,72966,495

129,211(62,715)

128,934

685

685

-

685

General reserve

63,606130,106(66,500)

130,106

Unappropriated retained earnings (deficit)

2,203(1,580)3,784(1,857)

9,903

15,155(5,251)

13,054

Total shareholder's equity

105,309173,276(67,966)

170,899

Total liabilities and shareholder's equity

140,710

194,384(53,673)

200,656

Current liabilities

Other current liabilities

Long-term liabilities

Other long-term liabilities
Total liabilities
Shareholder's equity

Additional paid-in capital
Earned surplus
Earned surplus reserve

Net unrealized gain on investments

2Nomura Asset Management Co., Ltd.
Unconsolidated Income Statement Information (Unaudited)(Millions of Yen)
Six Months Ended
September 30, 2004
(A)

Operating revenue

Six Months Ended
September 30, 2003
(B)

Comparison(A-B)/B (%)

Year Ended
March 31, 2004

21,632

17,24825.4

36,844

Investment trust management fees

17,555

14,18423.8

30,404

Investment advisory fees

4,075

3,063

33.1

6,439

Other operating revenue

00-0

Operating expenses

13,12010,591

23.9

22,711

Commissions

7,757

6,525

18.9

13,756

Other operating expenses

5,363

4,066

31.9

8,954

General and administrative expenses

6,834

7,108(3.9)

14,155

Operating income (loss)

1,678

(452)

-

(22)

Non-operating income

1,063

1,330

(20.1)

2,059

Non-operating expenses

4053(23.7)

66

Ordinary income

2,701

825

227.3

1,971

Special profits

323

878

(63.1)

1,384

Special losses

333

1,970

(83.1)

3,032

2,691(266)-322

Income taxes - current

643

534

20.4

962

Income taxes - deferred

380

1,372

(72.3)

1,257

Income (loss) before income taxes

Net income (loss)

1,668(2,173)-(1,896)

Unappropriated retained earnings brought
forward

535

316

69.4

316

Unappropriated retained earnings (deficit)

2,203(1,857)-(1,580)3Notes to Unconsolidated Financial Statements
The financial Information of Nomura Asset Management Co., Ltd. (“the Company”) for the six
months ended September 30, 2004 were prepared in accordance with “Regulations Concerning theTerminology, Forms and Preparation Methods of Semi-Annual Financial Statements” (Ministry ofFinance Ordinance No. 38, 1974) and “Regulations for enforcement of the Law Concerning Investment
Trust and Investment Corporations” (Cabinet Office Ordinance, No. 129, 2000), collectively Japanese
GAAP.

Significant Accounting Policies
1.

Basis and Methods 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 taxes is recorded as“Net unrealized gain on investments” in “shareholders’equity” on the balance sheet.
(ii) without market value
Recorded at cost using the moving average method2.

Depreciation/Amortization Method of Fixed Assets(1) Depreciation of tangible fixed assets
Tangible fixed assets are depreciated primarily on the declining balance method, except forbuildings acquired after March 31, 1998 which are depreciated on the straight-line method.
(2) Amortization of intangible assets
Intangible assets are amortized primarily over their estimated useful lives on the straight-linemethod.

3.

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 employee bonus payments, an accrual is recorded at an estimate of the amounts to
be paid as future bonuses to employees.
(3) Reserve for retirement benefits
To provide for the payment of lump-sum retirement benefits and funding the qualified retirement
pension plan in the future, the estimated future obligations less the fair value of current pension
assets is recorded as a reserve for employee retirement benefits.

4.

Leasing Transactions
Lease contracts for which the title of the leased property has not transferred are accounted for as
operating lease transactions.

5.

Hedging Activities
Mark-to-market profits and losses on hedging instruments are deferred as assets or liabilities until
the profits or losses on the underlying hedged securities are realized.

6.

Accounting for Consumption Taxes
National and local consumption taxes are accounted for based on the tax exclusion method.

7.

Consolidated Tax Return System
The company applies consolidated tax return system.
4Notes to Balance Sheet Information
1.

Accumulated Depreciation on Tangible Fixed Assets
September 30, 2004

March 31, 2004

(Millions of yen)
September 30, 2003

389

359

323

2. Treatment of Consumption Taxes
Amounts of consumption taxes, prepaid and payable on a net base, are immaterial and thus
included in “Other Current Liabilities”.

Notes to Income Statement Information
1. Special Profits consist of the following:(Millions of yen)

Six Months Ended

Six Months EndedYear Ended

September 30, 2004

September 30, 2003

March 31, 2004

323

Gain on sales of investment securities

878

1,384

2. Special Losses consist of the following:(Millions of yen)

Six Months Ended

Six Months EndedYear Ended

September 30, 2004

September 30, 2003

March 31, 2004

293

1,895

1,992

Loss on devaluation of telephone rights

39--

Loss on devaluation of investment securities and other

074

376

Provision for reserve for multi-employer pension plan--472--

191

Loss on sales of investment securities

Loss on disposal of software5Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)
September 30, 2004

Increase/(Decrease)

Unit Type57

149(92)

Open Type4,058

4,334(276)

Stock Investment Trusts - Public

4,115

4,484(369)

Bond Investment Trusts

2,176

2,640(464)

Money Management Fund

1,028

1,112(84)

Others2,500

2,592(92)

5,705

6,345(640)

Unit Type

568

389

179

Open Type39

39-

Private Investment Trusts

607

428

179

Total

10,427

11,257(830)

Bond Investment Trusts - Public

2.

March 31, 2004

Assets under Investment Management and Advisory Contracts(Billions of yen)
September 30, 2004

March 31, 2004

Domestic - General

255266(10)Domestic - Pension

2,777

2,763

14

Overseas

1,631

1,393238

4,664

4,423

241

Total

6

Increase/(Decrease)Quarterly Income Statement Information(Millions of Yen)

1st quarter2nd quarter

Six Months Ended

From April 1, 2004

From July 1, 2004

From April 1, 2004

To June 30, 2004

To September 30, 2004

To September 30, 2004

10,746

10,886

21,632

Investment trust management fees

8,802

8,753

17,555Investment advisory fees

1,943

2,132

4,075

Other operating revenue

000

Operating expenses

6,368

6,752

13,120Commissions

3,887

3,869

7,757

Other operating expenses

2,480

2,882

5,363

3,433

3,4006,834

Operating income (loss)

945

732

1,678

Non-operating income

866

196

1,063

Non-operating expenses

534

40

1,806

894

2,701

Special profits

71252

323

Special losses

249

83

333

1,628

1,063

2,691

Income taxes - current

341

302

643

Income taxes - deferred

329

50

380

Net income (loss)

957

710

1,668

Operating revenue

General and administrative expenses

Ordinary income

Income (loss) before income taxes

7