Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Six Months Ended September 30, 2006

Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
September 30, 2006

March 31, 2006

Increase (Decrease)

September 30, 2005

AssetsCurrent assets

48,972

81,050(32,078)

68,952

Deposits

12,79422,038(9,243)

9,658

Short-term loan receivable from a parent

14,00045,000(31,000)

45,000Cash deposited for investment trust
redemption and distribution of income

2,620

1,519

1,101

2,993

Accrued investment trust management fees

9,670

8,454

1,216

7,004

Accrued revenue

3,160

2,737

423

3,313

Deferred tax assets

1,088

1,129(40)600

Other current assets

5,650

199

5,451

409

Allowance for doubtful accounts

(13)

(27)

14

(27)

Fixed assets

66,531

72,661(6,130)67,119Tangible fixed assets

1,114

1,148(34)1,094Intangible fixed assets

6,506

6,548

(41)

6,075

Investments and other

58,91164,965(6,053)59,948Investment securities

43,517

48,811(5,294)44,021

Investment in subsidiaries and affiliates

14,931

15,156(225)

15,156

Other investments

462

996

(534)

771

Allowance for doubtful accounts

(0)

(0)

0(0)

115,503

153,712(38,208)

136,072

Total assets1

(Millions of Yen)
September 30, 2006

March 31, 2006

Increase (Decrease)

September 30, 2005

Liabilities

19,147

16,781

2,366

14,304

2,636

1,508

1,127

2,997

405

739

(334)

915

Accrued commission payable

4,213

3,730

482

3,124

Other accounts payable

4,125

2,894

1,230

953

Accrued expenses

4,376

4,484

(107)

4,777

Accrued income taxes

1, 7972, 121(323)

653

Accrued bonuses

1, 4801, 230

250

800

113

71

41

82

9,665

12,648(2,983)

9,665

Reserve for retirement benefits

5,357

5,548

(191)

5,411

Deferred tax liabilities

4,261

7,029

(2,767)

4,153

46

71

(25)

100

28,81229,430(617)

23,970Common stock

17,180---Capital reserve

11,729---11,729---44,502---

Earned surplus reserve

685

-

-

-

Other Earned surplus

43,817---

General reserve35,606---

Earned surplus brought forward

8,211---Net unrealized gain on investments

13,659---Deferred gains or loss on hedges

(381)

--

-

Total shareholder's equity

86,690---Total liabilities and shareholder's equity

115,503---

Current liabilities
Investment trust distribution of income
payableInvestment trust redemptions payable

Other current liabilities

Long-term liabilities

Other long-term liabilities
Total liabilities
Shareholder's equity

Additional paid-in capital
Earned surplus

Valuation and translation adjustments2September 30, 2006

March 31, 2006

Increase (Decrease)

September 30, 2005

Shareholder's equity
Common stock-

17,180-17,180Capital reserve-

11,729-11,729-11,729-11,729-77,936-70,009Earned surplus reserve

-

685

-

685

General reserve-

63,606-

63,606

Unappropriated retained earnings-

13,644-

5,717

Net unrealized gain on investments-

17,435-

13,182

Total shareholder's equity-

124,282-

112,102

Total liabilities and shareholder's equity-

153,712-

136,072

Additional paid-in capital
Earned surplus

3

Nomura Asset Management Co., Ltd.
Unconsolidated Income Statement Information (Unaudited)(Millions of Yen)
Six Months Ended
September 30, 2006
(A)

Operating revenue

Six Months Ended
September 30, 2005
(B)

Comparison(A-B)/B (%)

Year Ended
March 31, 2006

40,37525,300159.6

58,869Investment trust management fees

34,31820,557166.9

48,368Investment advisory fees

6,054

4,739

127.7

10,492Other operating revenue

34

89.8

7

Operating expenses

25,767

15,572

165.5

36,919Commissions

15,448

8,993

171.8

21,383

Research

7,909

4,627

170.9

10,870

Other operating expenses

2,409

1,950

123.5

4,664

General and administrative expenses

8,732

6,981

125.1

15,233Operating income

5,876

2,746

213.9

6,716

Non-operating income

1,637

1,312

124.8

1,936

Non-operating expenses

4962

80.3

69

Ordinary income

7,463

3,997

186.7

8,584

Special profits

5,423

387

1,400.1

6,820

Special losses

263

66

393.7

448

Income before income taxes

12,624

4,317

292.4

14,956

Income taxes - current

4,690

1,290

363.6

4,610

Income taxes - deferred

162

37

434.4

(571)

7,772

2,990

259.9

10,917

Net income

4Nomura Asset Management Co., Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
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-in
capitalTotal
capitalreserve

Earnedsurplusreserve

11,72911,729685

Reversal of general reserve

Total
Shareholder'sequity

Generalreserve

Earnedsurplus
brought
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

Balance at March 31, 2006

Net unrealized gain on
investments

Deferred gains or loss onhedgesTotal Valuation andtranslation
adjustments

Total net assets

17,435-

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Notes to Unconsolidated Financial Statements
The financial Information of Nomura Asset Management Co., Ltd. (“the Company”) for the six
months ended September 30, 2006 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.
6Accounting standard for presentation of net assets in the balance sheet
Effective from the interim accounting period ended September 30, 2006, the Company has adopted
the “Accounting Standard for Presentation of Net Assets in the Balance Sheet(Accounting Standard
Board Statement No.5)”and the “Implementation Guidance for Accounting Standard for Presentationof Net Assets in the Balance Sheet (Financial Accounting Standards Implementation GuidanceNo.8)” both issued by the Accounting Standards Board of Japan on December 9, 2005.
The adoption of these accounting standards did not have any impact on accompanying
Unconsolidated Statements of income.
The amount corresponding to the conventional “Shareholders’ Equity” in the balance sheet is87,071 million yen.
“Net Assets” in the Balance Sheet for the interim accounting period is presented according to therevision of “Regulations Concerning the Terminology, Forms and Preparation Methods of Interim
Financial Statements” dated on April 25, 2006.

Accounting standard for Share-based Payment
Effective from the interim accounting period ended September 30,2006, the Company has adopted
the “Accounting standard for Share-based Payment (Accounting Standard Board Statement No.8)”
issued by the Accounting Standards Board of Japan on December 27, 2005. and the “Implementation
Guidance for Accounting Standard for Share-based Payment (Financial Accounting Standards
Implementation Guidance No.11)” issued by the Accounting Standards Board of Japan on May
31,2006.

Notes to Balance Sheet Information
1.

Accumulated Depreciation on Tangible Fixed Assets
September 30, 2006

March 31, 2006

(Millions of yen)
September 30, 2005

616

530

443

Six Months Ended

Six Months EndedYear Ended

September 30, 2006

September 30, 2005

March 31, 2006

Notes to Income Statement Information
1.

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

585

342

606

Gain on sales of an affiliate

4,775

--

Dividend from subsidiaries

--

6,169

Gain on sales of investment securities and other2.

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

Six Months Ended

Six Months EndedYear Ended

September 30, 2006

September 30, 2005

March 31, 2006

Loss on disposal of fixed assets
Loss on sales of investment securities and other
Loss on devaluation of investment securities and other

7161

-101-

104-66103

241

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)
September 30, 2006

Increase (Decrease)

Unit Type

61

1150

Open Type

7,664

6,861

802

Stock Investment Trusts - Public

7,725

6,873

852

Bond Investment Trusts

1,356

1,504(147)

Money Management Fund

841

853

(12)

3,121

3,266

(145)

5,319

5,623(304)

Unit Type

1,860

1,455

405

Open Type-17(17)Private Investment Trusts

1,860

1,472

388

Total

14,906

13,969936

OthersBond Investment Trusts - Public

2.

March 31, 2006

Assets under Investment Management and Advisory Contracts(Billions of yen)
September 30, 2006

March 31, 2006

Increase (Decrease)

Domestic - General259

281(22)

Domestic - Pension

3,666

3,687

(21)

Overseas

3,212

3,038

174

7,137

7,006

131

Total

8

Quarterly Income Statement Information(Millions of Yen)

1st quarter2nd quarter

Six Months Ended

From April 1, 2006

From July 1, 2006

From April 1, 2006

To June 30, 2006

To September 30, 2006

To September 30, 2006

19,23821,13740,375Investment trust management fees

16,20918,10834,318Investment advisory fees

3,027

3,026

6,054

Other operating revenue

113

Operating expenses

11,881

13,88525,767Commissions

7,201

8,246

15,448

Research

3,702

4,207

7,909

978

1,430

2,409

General and administrative expenses

4,297

4,435

8,732

Operating income (loss)

3,058

2,817

5,876

Non-operating income

1,460

177

1,637

Non-operating expenses

27

22

49

4,491

2,972

7,463

Special profits

15

5,408

5,423

Special losses

75

187

263

4,430

8,193

12,624

Income taxes - current

800

3,890

4,690

Income taxes - deferred

743

(580)

162

2,887

4,884

7,772

Operating revenue

Other operating expenses

Ordinary income

Income (loss) before income taxes

Net income (loss)

9