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

March 31, 2015

Increase (Decrease)103,715

97,4866,228

208

411(202)

Money held in trust

55,341

56,824(1,482)

Securities

24,10017,1007,000

Accrued investment trust management fees

14,131

12,679

1,451

Accrued investment advisory fees

7,309

7,436

(126)

Deferred tax assets

2,028

2,594(566)

Other current assets

605449155

Allowance for doubtful accounts

(10)

(9)

(0)

Fixed assets

32,08333,417(1,333)

Tangible fixed assets

1,176

1,322

(145)

Intangible fixed assets

7,681

7,254

427

Investments and other

23,22524,840(1,614)

Investment securities

9,216

11,593(2,376)

Investment in subsidiaries and affiliates

10,958

10,149

808

4549

(4)

Prepaid pension cost

2,777

2,776

1

Other investments

226

270

(44)

-(0)

0

135,799

130,903

4,895

AssetsCurrent assets
Cash and cash equivalents

Long-term guarantee deposits

Allowance for doubtful accounts
Total assets1

(Millions of Yen)
March 31, 2016

March 31, 2015

Increase (Decrease)27,53830,182(2,643)

Investment trust distribution of income
payable11(0)Investment trust redemptions payable3132(0)Accrued commission payable

4,537

4,883(345)

Other accounts payable

7,284

6,684

599

Accrued expenses

8,872

10,221(1,348)

Accrued income taxes

1,838

1,961

(122)

Accrued bonuses

4,809

4,558

251

-

1,721

(1,721)

163

118

45

3,303

3,735(432)Liabilities
Current liabilities

Allowance for foreign tax payments
Other current liabilities

Long-term liabilities

2,708

2,467

241

Reserve for loss on distribution of income
and redemption after expiration

526

521

5

Deferred tax liabilities

68

747

(678)

Total liabilities

30,842

33,918(3,075)

Shareholder's equity

99,60690,092

9,514

Common stock

17,18017,180-Capital reserve

13,72911,7292,000

Additional paid-in capital

11,72911,729-Other capital surplus

2,000-

2,000

68,696

61,182

7,514

Earned surplus reserve

685

685

-

Other earned surplus

68,01160,4977,514

General reserve

24,606

24,606-

Earned surplus brought forward

43,40535,890

7,514

5,349

6,893

(1,543)

5,349

6,893

(1,543)

Total net assets

104,956

96,985

7,971

Total liabilities and net assets

135,799

130,903

4,895

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, 2015
(B)

Comparison
A/B (%)

136,016

127,847

106.4

Investment trust management fees

104,445

96,159108.6

Investment advisory fees

31,351

31,466

99.6

Other operating revenue

219

221

98.9

Operating expenses

80,66280,648100.0

Commissions

46,53147,06098.9

Research

28,06828,326

99.1

Other operating expenses

6,062

5,260

115.3

General and administrative expenses

25,827

24,643104.8

Compensation and benefits

14,61314,080103.8

Occupancy

1,230

1,218

100.9

Depreciation of fixed assets

2,589

3,120

83.0

Other general and administrative expenses

7,394

6,224

118.8

Operating income29,526

22,555130.9

Non-operating income

7,991

4,756

168.0

Non-operating expenses

1,321

166

792.2

Ordinary income

36,19627,146

133.3

Special profits

146936

15.6

Special losses

156

2,169

7.2

Income before income taxes

36,18625,913

139.6

Income taxes - current

9,806

8,433

116.3

Income taxes - deferred744(2,488)-25,635

19,967128.4

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

Earned surplus
Other Earned surplus

Commonstock

Additional
paid-in
capitalOthercapitalsurplusTotal
capitalreserve

Earnedsurplusreserve

17,18011,729—11,729685

Total
Shareholder's equity

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus24,60635,89061,182

90,092

Cash dividends(19,933)(19,933)(19,933)

Net profit

25,63525,63525,635

144

144

2,144

1,668

1,668

1,668

Balance at beginning of year

Increase from theabsorption-type merger

2,000

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 year

5,349

5,349

104,956

4

For The Year Ended March 31, 2015
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Total
Shareholder's equity

Commonstock

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplusreserve

Generalreserve

Earnedsurplusbrought
forward17,18011,72911,729685

24,606

26,04851,33980,249

(81)

(81)

(81)

25,966

51,25880,168Cash dividends(10,043)(10,043)(10,043)

Net profit

19,967

19,967

19,967Balance at beginning of year
Cumulative effects of changes inaccounting policies
Restated balance

17,18011,72911,729685

24,606

TotalEarned
surplus

Other-net
Change in the term

—————

9,923

9,923

9,923

Balance at end of year

17,18011,72911,729685

24,60635,89061,182

90,092(Millions of Yen)

Valuation and translation adjustments

Balance at beginning of year

Net unrealized gain on
investments

Total Valuationand translation
adjustments

Total net assets

6,679

6,679

86,929Cumulative effects of changes inaccounting policies
Restated balance

(81)
6,679

6,679

86,847

Cash dividends(10,043)

Net profit

19,967

Other-net

213

213

213

Change in the term

213

213

10,137

Balance at end of year

6,893

6,893

96,9855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 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-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
To provide for the payment of lump-sum retirement benefits and defined benefits pension plan in
the future, the estimated future obligations less the fair value of current pension assets is recorded asa 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.
(5) Allowance for foreign tax payments
To provide for potential foreign tax payments, the estimated amount to be paid in the future isrecorded.

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.

6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, 2015
3,659

Notes to Income Statement Information
1.

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

Gain on sales of investment securities and otherReceipt of stock option income

2.

Year Ended
March 31, 2016
50
96

Year Ended
March 31, 2015
794
142

Special 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
Provision of allowance for foreign tax payments

7Year Ended
March 31, 2016
95
60
-Year Ended
March 31, 2015
91
357
1,721

Notes to Business Combinations Information
Under the reorganization, Nomura Asset Management Co., Ltd. (NAM) took over Nomura Funds
Research and Technologies Co., Ltd. (NFR&T)’s operations related to the management ofinvestment trusts and its institutional investor advisory business. NAM also took over all theoperations of Nomura Private Equity Capital Co., Ltd.(NPEC).
By consolidating its marketing, investment and management operations under NAM andimproving the efficiency and stability of its investment management operations, Nomura aims todeliver a higher level of service to its clients.
Nomura also aims to produce higher added-value analysis and evaluation by consolidating theAsset Management division’s analysis and evaluation of funds and asset management companies
into NFR&T.
Following the reorganization, Nomura will focus on providing high quality investment products
to accommodate the needs of investors by fully leveraging the specialized expertise in NAM andNFR&T.
Schedule of reorganization
February 18, 2015

Execution of reorganization agreements by NAM and NFR&T and NPEC

July 1, 2015

NAM to take over NFR&T institutional client business

October 1, 2015

NAM to take over NFR&T retail client business

December 1, 2015

Liquidation of NPEC and acquisition by NAM

8Supplementary Information
1.

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

Increase (Decrease)

Unit Type

122135(13)Open Type16,472

15,929543

Stock Investment Trusts - Public

16,594

16,064529

Bond Investment Trusts

590

651(60)

Money Management Fund

508

626(118)

5,259

5,921(662)6,358

7,199(841)

Unit Type

1,748

1,999(250)Open Type

1,500

929

571

Private Investment Trusts

3,248

2,928

320

Total

26,201

26,1928Others
Bond Investment Trusts - Public

2.

March 31, 2015

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

March 31, 2015

Increase (Decrease)

Domestic - General

243

222

21

Domestic - Pension

7,446

4,953

2,493

Overseas

5,287

7,264

(1,976)

12,977

12,439

538

Total

9

Quarterly Income Statement Information(Millions of yen)
1st quarter2nd quarter3rd quarter

4th quarter

For the year

From April 1, 2015

From July 1, 2015

From October 1, 2015

From January 1, 2016

From April 1, 2015

To June 30, 2015

To September 30, 2015

To December 31, 2015

To March 31, 2016

To March 31, 2016

34,92034,03835,374

31,683136,016

Investment trust management fees

27,013

26,87026,572

23,989104,445

Investment advisory fees

7,850

7,119

8,748

7,632

31,351Other operating revenue

55

48

5361

219

Operating expenses

21,052

20,13520,93018,54480,662

Commissions

12,666

12,14911,566

10,14846,531

Research

6,964

6,530

7,804

6,769

28,068Other operating expenses

1,421

1,456

1,558

1,626

6,062

General and administrative expenses

6,351

6,193

6,384

6,898

25,827

Operating income

7,516

7,709

8,059

6,240

29,526

Non-operating income

3,648

2,278

1,821

242

7,991

Non-operating expenses

248

1,051

(255)

276

1,321

10,917

8,936

10,136

6,206

36,196

Special profits

18

2725

74

146

Special losses

-53

0

102

156

Income before income taxes

10,935

8,910

10,161

6,178

36,186

Income taxes - current

1,745

2,784

3,121

2,154

9,806

Income taxes - deferred

1,255

(400)

(192)

81744

Net income

7,934

6,526

7,232

3,941

25,635

Operating revenue

Ordinary income

10