Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Year Ended March 31, 2008

Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
March 31, 2008

March 31, 2007

Increase (Decrease)

61,02058,221

2,798

Cash and cash equivalents

2,855

23,242(20,386)

Money held in trust

32,0582,105

29,953

Securities

6,300

-

6,300

Short-term loan receivable from a parent

1,526

14,000(12,474)

-73

(73)

Accrued investment trust management fees

13,91014,048(138)

Accrued revenue

2,030

2,261(230)

Deferred tax assets

1,137

1,352(214)

Other current assets

1,208

1,152

56

(7)

(15)

7

Fixed assets

56,25369,436(13,182)

Tangible fixed assets

1,972

1,743

228

Intangible fixed assets

8,857

7,642

1,214

Investments and other45,42460,050(14,625)

Investment securities

27,60644,125(16,518)

Investment in subsidiaries and affiliates

15,73915,405

334

34

30

4

Deferred tax assets

1,567

-

1,567

Other investments

476

489

(13)

Allowance for doubtful accounts

(0)

(0)

0

117,274

127,657(10,383)

AssetsCurrent assets

Cash deposited for investment trust
redemption and distribution of income

Allowance for doubtful accounts

Long-term guarantee deposits

Total assets1

(Millions of Yen)
March 31, 2008

March 31, 2007

Increase (Decrease)

24,79427,279(2,485)

585

(80)

105

261

(156)

Accrued commission payable

6,115

6,040

74

Other accounts payable

6,622

7,944

(1,321)

Accrued expenses

8,363

8,486

(122)

Accrued income taxes

1,591

2, 640(1,049)Accrued bonuses

1, 7301,65080

259

170

89

5,890

7,528

(1,637)

5,359

5,034

325

467-

467

-

2,434(2,434)

64

59

4

Total liabilities

30,68534,808(4,123)

Shareholder's equity

81,71482,451(737)

Common stock

17,18017,180-Capital reserve

11,72911,729-11,72911,729-52,80453,541(737)

Earned surplus reserve

685

685

-

Other Earned surplus

52,11952,856(737)

General reserve35,60635,606-

Earned surplus brought forward

16,512

17,249

(737)

4,874

10,397(5,522)Net unrealized gain on investments

5,124

11,008(5,883)

Deferred gains or loss on hedges(250)

(610)

360

Total net assets

86,58992,849(6,260)Total liabilities and net assets

117,274

127,657(10,383)

Liabilities
Current liabilities
Investment trust distribution of income
payableInvestment trust redemptions payable

Other current liabilities

Long-term liabilities
Reserve for retirement benefits
Reserve for loss on distribution of income
and redemption after expiration
Deferred tax liabilities
Other long-term liabilities

Additional paid-in capital
Earned surplus

Valuation and translation adjustments

2

Nomura Asset Management Co.,Ltd.
Unconsolidated Income Statement Information (Unaudited)(Millions of Yen)
Year Ended
March 31, 2008
(A)

Operating revenue

Year Ended
March 31, 2007
(B)

Comparison(A-B)/B (%)

135,408

94,482

143.3

Investment trust management fees

124,893

82,515151.4

Investment advisory fees

10,506

11,95987.8

Other operating revenue

87

118.1

Operating expenses

95,93862,756

152.9

Commissions

57,70437,426

154.2

Research

32,10819,783

162.3

Other operating expenses

6,125

5,546

110.4

General and administrative expenses

22,94918,347125.1

Compensation and benefits

12,573

10,545

119.2

Occupancy

1,6871,821

92.7

Depreciation of fixed assets

2,543

1,915

132.8

Other general and administrative expenses

6,145

4,065

151.2

Operating income

16,51913,378123.5

Non-operating income

4,384

2,632

166.5

Non-operating expenses

647

267

242.0

Ordinary income

20,256

15,743

128.7

Special profits

1,734

12,884

13.5

Special losses

589

1,830

32.2

Income before income taxes

21,40026,797

79.9

Income taxes - current

9,211

9,913

92.9

Income taxes - deferred

50

73

67.8

12,13916,81072.2

Net income

3Nomura Asset Management Co.,Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For The Year Ended March 31, 2008
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Commonstock

Total
capitalreserve

Earnedsurplusreserve

11,72911,729685

Total
Shareholder'sequity

Generalreserve

Earnedsurplus
brought
forwardTotal
Earnedsurplus

35,606

17,24953,54182,451

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

Net profit

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

Additional
paid-in
capital17,180

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

86,5894For The Year Ended March 31, 2007
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Commonstock

Total
Shareholder'sequity

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplusreserve

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus11,72911,729685

63,606

13,644

77,936

106,846(28,000)

28,000––Cash dividends(41,205)(41,205)(41,205)

Net profit

16,81016,81016,810

Balance at March 31,2006

17,180

Reversal of general reserve

Other-net
Change in the term
Balance at March 31,2007––––(28,000)

3,605(24,394)(24,394)

17,18011,72911,729685

35,606

17,24953,54182,451(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain on Deferred gains or loss
investmentson hedges
Balance at March 31,2006

17,435–

Total Valuation andtranslation
adjustments

Total net assets

17,435

124,282

Reversal of general reserve–

Cash dividends(41,205)

Net profit

16,810

Other-net(6,427)(610)(7,038)(7,038)Change in the term

(6,427)(610)(7,038)(31,433)

Balance at March 31,2007

11,008(610)

10,397

92,8495

Notes to Unconsolidated Financial Statements
The unconsolidated financial statements of Nomura Asset Management Co., Ltd. (“the Company”)
were prepared in accordance with “Regulations Concerning the Terminology, Forms and Preparation
Methods of Financial Statements” (Ministry of Finance Ordinance No. 59, 1963) and “Cabinet Office
Ordinance of Financial Instruments Firms, etc” (Cabinet Office Ordinance No. 52, 2007), collectively
Japanese GAAP.

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 “Netunrealized 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
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.

5.

Provisions(1) Allowance for doubtful accounts
To provide mainly for loan losses, the company made provisions for doubtful accounts based on an
estimate of the maximum uncollectible amount calculated using its historical loss ratio or a reasonableestimate 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.

66.

Leasing Transactions
Lease contracts for which the titles of leased properties have not transferred are accounted for as
operating lease transactions.

7.

Hedging Activities
Mark-to-market profits and losses on hedging instruments are deferred as assets or liabilities until theprofits 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.

7

Change of Depreciation Method
In accordance with the changes of tax code concerning the depreciation of fixed assets introduced inFY 2007 tax reform, these revisions is applied to fixed assets acquired after April 1, 2007 and before
March 31, 2007.
The effect of these changes on Operating income, Ordinary income, and Income before income taxes
is minor.

Accounting standard for Allowance for loss on investment trust dividend payments
Effective for the accounting period ended March 31, 2008, the Company has adopted the “Audit
Treatment for Reserves of Special Taxation Measures Law, and Allowances or Reserves of Special
Law (Accounting Standard Board Statement No.42)” issued by The Japanese Institute of Certified
Public Accountants on April 13, 2007.
To provide for payments of investment trust distribution income and investment trust redemption
money already recognized as revenue by prescription, the estimated amount of payments in the futureis recorded as “Allowance for loss on investment trust dividend payments” based on actual payments.
This application resulted in the decrease of ordinary income by 38 million yen and income before
income taxes by 467 million yen.

Change of Presentation Method(Balance Sheet)
In accordance with the newly introduced “The Guidelines for Financial Products AccountingStandard”, effective for the accounting period ended March 31, 2008, presentation of Certificate ofDeposit has been changed from “Cash and cash equivalents” to “Securities”
Certificate of Deposit was 19,800 million yen in the previous accounting year, which had been
included in “Cash and cash equivalents”.

Notes to Balance Sheet Information
1.

Accumulated Depreciation on Tangible Fixed Assets(Millions of yen)

Year Ended
March 31, 2008
736

Year Ended
March 31, 2007
481

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 sales of an affiliate
Receipt of stock option income

8Year Ended
March 31, 2008
1,421
–312

Year Ended
March 31, 2007
7,863
4,893
127

Notes to Income Statement Information
2.

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

Loss on sales of investment securities and other
Loss on devaluation of investment securities and otherTransfer to reserve for loss on distribution of incomeand redemption after expiration
Loss on disposal of fixed assets
Office relocation expense

Year Ended
March 31, 2008
80
23

Year Ended
March 31, 2007
113–429–

56–

601
1,115

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)March 31, 2008

Increase (Decrease)

Unit Type5384(31)Open Type

9,789

10,731(942)

Stock Investment Trusts - Public

9,842

10,816(973)

Bond Investment Trusts

1,116

1,248(132)

Money Management Fund

967

882

84

3,252

3,657(404)5,3365,788(452)

Unit Type

1,995

2,191(196)Open Type–––

Private Investment Trusts

1,995

2,191(196)

Total

17,174

18,796(1,622)OthersBond Investment Trusts - Public

2.

March 31, 2007

Assets under Investment Management and Advisory Contracts(Billions of yen)March 31, 2008

March 31, 2007

Increase (Decrease)

Domestic - General

181237(55)Domestic - Pension4,467

3,506960

Overseas

2,429

3,370(941)

7,078

7,115(36)

Total

9

Quarterly Income Statement Information(Millions of yen)
1st quarter

Operating revenue

2nd quarter3rd quarter

4th quarter

For the year

From April 1, 2007

From July 1, 2007

From October 1, 2007

From January 1, 2008

From April 1, 2007

To June 30, 2007

To September 30, 2007

To December 31, 2007

To March 31, 2008

To March 31, 2008

34,97335,83934,88829,706

135,408

Investment trust management fees

32,093

33,10732,28527,406

124,893

Investment advisory fees

2,878

2,7292,602

2,295

10,506

Other operating revenue

1

1

1

3

8

Operating expenses

24,07525,556

24,72921,57895,938Commissions

14,675

15,173

14,99912,85557,704

Research

8,103

8,816

8,210

6,979

32,108Other operating expenses

1,296

1,566

1,518

1,743

6,125

General and administrative expenses

5,202

5,991

5,519

6,236

22,949Operating income

5,695

4,291

4,640

1,891

16,519Non-operating income

1,519

483

965

1,415

4,384

Non-operating expenses

179

83

41

342

647

Ordinary income

7,035

4,690

5,565

2,964

20,256Special profits

276

127

1,244

85

1,734

Special losses

23510

-

54589

Income before income taxes

7,288

4,307

6,809

2,995

21,400

Income taxes - current

1,862

2,726

1,851

2,772

9,211

Income taxes - deferred

775

(760)

759

(724)

50

4,651

2,341

4,198

947

12,139Net income10