Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Six Months Ended September 30, 2008
(Unaudited)Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
September 30, 2008

March 31, 2008

Increase (Decrease)

September 30, 2007

Assets

68,13561,0207,115

54,189Cash and cash equivalents

1,540

2,855(1,315)

14,051

Money held in trust

41,94032,0589,881

11,878

Securities

5,600

6,300

(700)

–

Short-term loan receivable from a parent

1,678

1,526

152

3,000–––

280

Accrued investment trust management fees

12,03813,910(1,871)

18,259Accrued revenue

2,788

2,030

757

2,973

Deferred tax assets

1,042

1,137

(95)

1,254

Other current assets

1,514

1,208

306

2,504

(7)

(7)

0(12)

Fixed assets

50,13756,253(6,116)

62,984

Tangible fixed assets

2,148

1,972

176

1,694

Intangible fixed assets

10,920

8,857

2,063

7,921

Investments and other

37,06845,424(8,355)53,368Investment securities

19,041

27,606(8,565)37,458Investment in subsidiaries and affiliates

15,73915,739–

15,405

38

34

3

34

Deferred tax assets

1,432

1,567

(134)

–

Other investments

817

476

341

468

Allowance for doubtful accounts

(0)

(0)

(0)

(0)

118,272

117,274

998

117,173

Current assets

Cash deposited for investment trust
redemption and distribution of income

Allowance for doubtful accounts

Long-term guarantee deposits

Total assets1

(Millions of Yen)
September 30, 2008

March 31, 2008

Increase (Decrease)

September 30, 2007

Liabilities

44,521

24,794

19,727

26,33326,000–26,000–Investment trust distribution of income
payable550286

Investment trust redemptions payable

92

105

(12)

172

Accrued commission payable

5,204

6,115(911)7,910Other accounts payable

2,665

6,622

(3,957)

4,569

Accrued expenses

7,239

8,363

(1,124)

9,635

Lease obligation

99

–

99

–

Accrued income taxes

1,649

1,591

57

1,618

Accrued bonuses

1,410

1,730

(320)

1,970

156

259

(103)

170

Long-term liabilities

6,452

5,890

561

6,396

Lease obligation

388

–

388

–

5,574

5,359

215

5,194

468

467

1454

Deferred tax liabilities

–––

599

Other long-term liabilities

2164(42)

148

Total liabilities

50,97430,68520,28932,729

Shareholder's equity

62,101

81,714(19,612)76,567

Common stock

17,18017,180–17,180Capital reserve

11,72911,729–11,72911,72911,729–11,72933,19152,804(19,612)47,657

Earned surplus reserve

685

685

–

685

Other Earned surplus

32,506

52,119(19,612)46,972

General reserve

24,60635,606(11,000)

35,606

Earned surplus brought forward

7,899

16,512(8,612)

11,365

5,197

4,874

322

7,876

Net unrealized gain on investments

5,358

5,124

233

8,412

Deferred gains or loss on hedges

(161)

(250)

88(536)

Total net assets

67,29886,589(19,290)

84,443

Total liabilities and net assets

118,272

117,274

998

117,173

Current liabilities
Short-term borrowings from affiliates

Other current liabilities

Reserve for retirement benefits
Reserve for loss on distribution of income
and redemption after expiration

Additional paid-in capital
Earned surplus

Valuation and translation adjustments

2

Nomura Asset Management Co., Ltd.
Unconsolidated Income Statement Information (Unaudited)(Millions of Yen)
Six Months Ended
September 30, 2008
(A)

Operating revenue

Six Months Ended
September 30, 2007
(B)

Comparison(A-B)/B (%)

Year Ended
March 31, 2008

57,21370,81280.8

135,408

Investment trust management fees

52,507

65,201

80.5

124,893

Investment advisory fees

4,697

5,608

83.8

10,506

Other operating revenue

83

244.4

8

Operating expenses

40,124

49,631

80.8

95,938Commissions

24,56529,84882.3

57,704

Research

13,117

16,91977.5

32,108Other operating expenses

2,441

2,863

85.3

95,938General and administrative expenses

11,296

11,194100.9

22,949Operating income

5,791

9,986

58.0

16,519Non-operating income

5,343

2,003

266.7

4,384

Non-operating expenses

979

263

371.4

647

Ordinary income

10,155

11,72686.6

20,256

Special profits

1,117

404

276.4

1,734

Special losses

664

534

124.4

589

Income before income taxes

10,608

11,596

91.5

21,400

Income taxes - current

3,689

4,588

80.4

9,211

Income taxes - deferred

615

42.4

50

6,913

6,993

98.9

12,139Net income

3Nomura Asset Management Co., Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For Interim ended September 30, 2008
(Millions of Yen)

Shareholder's equity
Capital reserve
Commonstock

Balance at March 31,2008

17,180Earned surplus
Other Earned surplus

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplusreserve

11,72911,729685

Reversal of general reserve

Total
Shareholder'sequityGeneralreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus35,606

16,51252,80481,714(11,000)

11,000––(26,526)(26,526)(26,526)

6,913

6,913

6,913

Cash dividends
Net profitOther-net
Change in the term
Balance at September 30,2008––––(11,000)(8,612)(19,612)(19,612)

17,18011,72911,729685

24,606

7,899

33,191

62,101(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain on
investments
Balance at March 31,2008

5,124

Deferred gains or loss
on hedges(250)

Total Valuation andtranslation
adjustments

Total net assets

4,874

86,589

Reversal of general reserve–

Cash dividends(26,526)

Net profit

6,913

Other-net

233

88

322

322

Change in the term

233

88

322

(19,290)

5,358

(161)

5,197

67,298

Balance at September 30,2008

4For Interim ended September 30, 2007
(Millions of Yen)

Shareholder's equity
Capital reserve
Commonstock

Balance at March 31,2007

17,180Earned surplus
Other Earned surplus

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplusreserve

11,72911,729685

Total
Shareholder'sequity

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus35,606

17,24953,54182,451(12,876)(12,876)(12,876)

6,993

6,993

6,993

Cash dividends
Net profit
Other-net
Change in the term
Balance at September 30,2007–––––(5,883)(5,883)(5,883)

17,18011,72911,729685

35,606

11,36547,65776,567(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain on
investments
Balance at March 31,2007

11,008Deferred gains or loss
on hedges(610)

Total Valuation andtranslation
adjustments

Total net assets

10,397

92,849Cash dividends(12,876)

Net profit

6,993

Other-net(2,596)74(2,521)(2,521)

Change in the term

(2,596)74(2,521)(8,405)

Balance at September 30,2007

8,412

(536)

7,876

84,443

5

For The Year Ended March 31, 2008
(Millions of Yen)

Shareholder's equity
Capital reserve
Commonstock

Earned surplus
Other Earned surplus

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplusreserve

11,72911,729685

Total
Shareholder'sequity

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus35,606

17,24953,54182,451

Cash dividends(12,876)(12,876)(12,876)

Net profit

12,13912,13912,139Balance at March 31,2007

17,180

Other-net
Change in the term
Balance at March 31,2008–––––(737)

(737)

(737)

17,18011,72911,729685

35,606

16,51252,80481,714(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain oninvestments
Balance at March 31,2007

11,008Deferred gains or loss
on hedges(610)

Total Valuation andtranslation
adjustments

Total net assets

10,397

92,849Cash dividends(12,876)

Net profit

12,139Other-net(5,883)360(5,522)(5,522)

Change in the term

(5,883)360(5,522)(6,259)Balance at March 31,2008

5,124(250)

4,874

86,5896

Notes to Unconsolidated Financial Statements

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 “shareholders’equity” on the balance sheet.
(ii) without market value
Recorded at cost using the moving average method

2.

Basis and Method of Valuation for Derivatives
Recorded at fair value

3.

Basis and Method of Valuation for Money In Trust
Recorded at fair value

4.

Depreciation/Amortization Method of Fixed Assets(1) Depreciation of tangible fixed assets(excluding Lease 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(excluding Lease Assets)
Intangible assets are amortized primarily over their estimated useful lives on the straight-linemethod.
(3) Depreciation/Amortization of lease assets
Lease assets under financial lease transactions that do not transfer ownership, contracted afterApril 1 2008 are depreciated / amortized over the lease term on the straight-line method, based on
the assumption that the residual value is equal to zero.

5.

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, accrual is recorded at the estimated amount 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) Reserve for loss on distribution of income and redemption after expiration
To provide for investment trust distribution of income and investment trust redemption money
recognized as revenue by prescription, the estimated amount of payments in the future is recorded,based on actual payments.

76.

Leasing Transactions
Financial lease transactions that do not transfer ownership, contracted before April 1, 2008 areaccounted as ordinary rental transactions.

7.

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.

8.

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

9.

Consolidated Tax Return System
Consolidated tax return system is applied.

8Accounting standard for Lease Transactions
Effective for the interim accounting period ended September 30, 2008, the Company has adopted
the “Accounting Standard for Lease Transactions (Statement No.13)” and the “Guidance on
Accounting Standard for Lease Transactions (Guidance No.16)” released by Accounting Standards
Board of Japan.
Financial lease transactions that do not transfer ownership, contracted after April 1 2008 are
calculated based on the assumption that the useful life is equal to the lease term and the residual
value is equal to zero.
Financial lease transactions that do not transfer ownership, contracted before April 1, 2008 are
accounted as ordinary rental transactions.
This application resulted in the increase of tangible fixed assets by 334 million yen, intangible fixed
assets by 150 million yen and lease obligation (Current liabilities) by 99 million yen, lease obligation(Long-term liabilities) by 388 million yen. The effect of these changes on Operating income,Ordinary income and Income before income taxes is minor.

Notes to Balance Sheet Information
1.

Accumulated Depreciation on Tangible Fixed Assets
September 30, 2008

March 31, 2008

(Millions of yen)
September 30, 2007

951

736

638

Notes to Income Statement Information
1.

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

Six Months Ended

Six Months EndedYear Ended

September 30, 2008

September 30, 2007

March 31, 2008

Gain on sales of investment securities and other964

269

1,421

Receipt of stock option income152

135312

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

Six Months Ended

Six Months EndedYear Ended

September 30, 2008

September 30, 2007

March 31, 2008

Loss on sales of investment securities
Loss on devaluation of investment securities and otherTransfer to reserve for loss on distribution of income
and redemption after expiration
Loss on disposal of fixed assets

9664

80

80

02323–

429

429–

156

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)
September 30, 2008

Increase (Decrease)

Unit Type

115

5361

Open Type

8,590

9,789

(1,198)Stock Investment Trusts - Public

8,706

9,842(1,136)

Bond Investment Trusts

1,066

1,116(49)

Money Management Fund

982

967

14

3,176

3,252(75)5,225

5,336(110)

Unit Type

2,006

1,995

11

Open Type–––

Private Investment Trusts

2,006

1,995

11

Total

15,93817,174(1,236)

OthersBond Investment Trusts - Public

2.

March 31, 2008

Assets under Investment Management and Advisory Contracts(Billions of yen)
September 30, 2008

March 31, 2008

Increase (Decrease)

Domestic - General

208

181

26

Domestic - Pension

4,340

4,467(126)Overseas

2,002

2,429(427)

6,551

7,078(527)

Total

10

Quarterly Income Statement Information(Millions of Yen)

1st quarter2nd quarter

Six Months Ended

From April 1, 2008

From July 1, 2008

From April 1, 2008

To June 30, 2008

To September 30, 2008

To September 30, 2008

29,517

27,69557,213

Investment trust management fees

27,21825,28852,507

Investment advisory fees

2,296

2,401

4,697

Other operating revenue

268

Operating expenses

20,837

19,287

40,124

Commissions

12,786

11,77924,565

Research

6,857

6,259

13,117

Other operating expenses

1,193

1,248

2,441

General and administrative expenses

5,328

5,967

11,296

Operating income (loss)

3,351

2,440

5,791

Non-operating income

1,676

3,666

5,343

Non-operating expenses

565

413

979

Ordinary income

4,462

5,693

10,155Special profits

994

123

1,117

Special losses

270

394

664

Income (loss) before income taxes

5,186

5,422

10,608

Income taxes - current

1,014

2,675

3,689

Income taxes - deferred

680

(673)

6

3,491

3,421

6,913

Operating revenue

Net income (loss)

11