Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Six Months Ended September 30, 2007

Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
September 30, 2007

March 31, 2007

Increase (Decrease)

September 30, 2006

Assets54,18958,221(4,031)

48,972

Cash and cash equivalents

14,051

23,242(9,191)

12,794

Money held in trust

11,878

2,105

9,772

-

Short-term loan receivable from a parent

3,000

14,000(11,000)

14,000

280

73206

2,620

Accrued investment trust management fees

18,25914,048

4,211

9,670

Accrued revenue

2,973

2,261

711

3,160

Deferred tax assets

1,254

1,352

(98)

1,088

Other current assets

2,504

1,152

1,352

5,650

Allowance for doubtful accounts

(12)

(15)

3

(13)

Fixed assets

62,98469,436(6,451)

66,531

Tangible fixed assets

1,694

1,743

(49)

1,114

Intangible fixed assets

7,921

7,642

279

6,506

Investments and other

53,36860,050(6,682)

58,911

Investment securities

37,45844,125(6,666)43,517

Investment in subsidiaries and affiliates

15,405

15,405-

14,931Long-term guarantee deposits

3430

428

Other investments

468

489

(20)

433

Allowance for doubtful accounts

(0)

(0)

0(0)

117,173

127,657(10,483)

115,503

Current assets

Cash deposited for investment trust
redemption and distribution of income

Total assets1

(Millions of Yen)
September 30, 2007

March 31, 2007

Increase (Decrease)

September 30, 2006

Liabilities

26,33327,279(946)

19,147

Investment trust distribution of income
payable

286

85

201

2,636

Investment trust redemptions payable

172

261

(89)

405

Accrued commission payable

7,910

6,040

1,869

4,213

Other accounts payable

4,569

7,944

(3,374)

4,125

Accrued expenses

9,635

8,486

1,148

4,376

Accrued income taxes

1,618

2, 640(1,022)

1,797

Accrued bonuses

1, 970

1,650

320

1,480

170

170

0

113

6,396

7,528

(1,132)

9,665

5,194

5,034

160

5,357

Reserve for loss on distribution of income
and redemption after expiration

454-

454-

Deferred tax liabilities

599

2,434

(1,835)

4,261

Other long-term liabilities

148

59

88

46

32,72934,808(2,078)28,812

Common stock

17,18017,180-

17,180Capital reserve

11,72911,729-11,72911,72911,729-11,72947,65753,541(5,883)44,502

Earned surplus reserve

685

685

-

685

Other Earned surplus

46,97252,856(5,883)43,817

General reserve35,60635,606-35,606

Earned surplus brought forward

11,365

17,249(5,883)8,211

Net unrealized gain on investments

8,412

11,008(2,596)

13,659Deferred gains or loss on hedges

(536)

(610)

74(381)

Total net assets

84,443

92,849(8,405)86,690Total liabilities and net assets117,173

127,657(10,483)

115,503

Current liabilities

Other current liabilities

Long-term liabilities
Reserve for retirement benefits

Total liabilities
Shareholder's equity

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, 2007
(A)

Operating revenue

Six Months Ended
September 30, 2006
(B)

Comparison(A-B)/B (%)

Year Ended
March 31, 2007

70,81240,375175.4

94,482

Investment trust management fees

65,20134,318

190.0

82,515Investment advisory fees

5,608

6,054

92.6

11,959Other operating revenue

33

98.3

7

Operating expenses

49,631

25,767

192.6

62,756

Commissions

29,84815,448193.2

37,426

Research

16,919

7,909

213.9

19,783

Other operating expenses

2,863

2,409

118.9

5,546

General and administrative expenses

11,194

8,732

128.2

18,347

Operating income

9,986

5,876

170.0

13,378Non-operating income

2,003

1,637

122.3

2,632

Non-operating expenses

263

49

527.9

267

Ordinary income

11,726

7,463

157.1

15,743Special profits404

5,423

7.5

12,884

Special losses

534

263

203.1

1,830

Income before income taxes

11,596

12,62491.9

26,797

Income taxes - current

4,588

4,690

97.8

9,913

Income taxes - deferred

15

162

9.3

73

6,993

7,772

90.0

16,810Net income

3Nomura Asset Management Co.,Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For Interim ended September 30,2007(Millions of Yen)

Shareholder's equity
Capital reserve

Other Earned surplus

Commonstock

Balance at March 31,2007

Earned surplus

17,180Additional
paid-incapital

Total
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

4

For Interim ended September 30,2006(Millions of Yen)

Shareholder's equity
Capital reserve

Other Earned surplus

Commonstock

Balance at March 31,2006

Earned surplus

17,180Additional
paid-incapital

Totalcapitalreserve

Earnedsurplus
reserve

11,72911,729685

Reversal of general reserve

Total
Shareholder'sequity

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus63,606

13,644

77,936

106,846(28,000)

28,000--(41,205)(41,205)(41,205)

7,772

7,772

7,772

Cash dividends
Net profit
Other-net
Change in the term
Balance at September 30,2006----(28,000)(5,433)(33,433)(33,433)

17,18011,72911,729685

35,606

8,211

44,50273,412(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

7,772

Other-net(3,776)(381)(4,157)(4,157)

Change in the term

(3,776)(381)(4,157)(37,591)

Balance at September 30,2006

13,659(381)

13,27886,6905For The Year Ended March 31, 2007
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Commonstock

Total
Shareholder'sequityAdditional
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

92,8496

Notes to Unconsolidated Financial Statements
The financial Information of Nomura Asset Management Co., Ltd. (“the Company”) for the sixmonths ended September 30, 2007 was prepared in accordance with “Regulations Concerning theTerminology, Forms and Preparation Methods of Semi-Annual Financial Statements” (Ministry ofFinance Ordinance No. 38, 1974) 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“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
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 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
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
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Change of Depreciation Method
In accordance with the changes of tax code concerning the depreciation of fixed assets introduced
in FY 2007 tax reform, these revisions is applied to fixed assets acquired after April 1, 2007 andbefore 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 interim accounting period ended September 30, 2007, the Company has adopted
the “Audit Treatment for Reserves of Special Taxation Measures Law, and Allowances or Reservesof Special Law (Accounting Standard Board Statement No.42)” issued by The Japanese Institute ofCertified 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 thefuture is recorded as “Allowance for loss on investment trust dividend payments” based on actualpayments.
This application resulted in the decrease of ordinary income by 25 million yen and income before
income taxes by 454 million yen.

Notes to Balance Sheet Information
1.

Accumulated Depreciation on Tangible Fixed Assets
September 30, 2007

March 31, 2007

(Millions of yen)
September 30, 2006

638

481

616

Six Months Ended

Six Months EndedYear Ended

September 30, 2007

September 30, 2006

March 31, 2007

Notes to Income Statement Information
1.

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

Gain on sales of investment securities and other269

585

7,863

-

4,775

4,893

135-

127

Gain on sales of an affiliate
Receipt of stock option income

2.

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

Six Months Ended

Six Months EndedYear Ended

September 30, 2007

September 30, 2006

March 31, 2007

Loss on sales of investment securities and other

80

101

113

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

23--

429

--

1

161

601

--

1,115

Office relocation expense

9Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)
September 30, 2007

Increase (Decrease)

Unit Type

103

84

18

Open Type12,321

10,731

1,589

Stock Investment Trusts - Public

12,424

10,816

1,607

Bond Investment Trusts

1,174

1,248(74)

Money Management Fund

960

882

77

3,672

3,657

15

5,806

5,788

18

Unit Type

2,348

2,191

157

Open Type---

Private Investment Trusts

2,348

2,191

157

Total

20,57918,796

1,782

OthersBond Investment Trusts - Public

2.

March 31, 2007

Assets under Investment Management and Advisory Contracts(Billions of yen)
September 30, 2007

March 31, 2007

Increase (Decrease)

Domestic - General

243

237

5

Domestic - Pension

4,805

3,506

1,298

Overseas

3,291

3,370(78)

8,340

7,115

1,225

Total

10

Quarterly Income Statement Information(Millions of Yen)

1st quarter2nd quarter

Six Months Ended

From April 1, 2007

From July 1, 2007

From April 1, 2007

To June 30, 2007

To September 30, 2007

To September 30, 2007

34,97335,83970,812

Investment trust management fees

32,093

33,107

65,201

Investment advisory fees

2,878

2,729

5,608

Other operating revenue113

Operating expenses

24,07525,55649,631

Commissions

14,675

15,17329,848

Research

8,103

8,816

16,919Other operating expenses

1,296

1,566

2,863

General and administrative expenses

5,202

5,991

11,194

Operating income (loss)

5,695

4,291

9,986

Non-operating income

1,519

483

2,003

Non-operating expenses

179

83

263

Ordinary income

7,035

4,690

11,726

Special profits

276

127

404

Special losses

23510

534

Income (loss) before income taxes

7,288

4,307

11,596

Income taxes - current

1,862

2,726

4,588

Income taxes - deferred775(760)

15

4,651

2,341

6,993

Operating revenue

Net income (loss)

11