Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Six Months Ended September 30, 2019
(Unaudited)Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
March 31, 2019

September 30, 2019

Increase (Decrease)

September 30, 2018

Assets

98,917

81,173(17,744)

83,392

Cash and cash equivalents

1,562

2,212

649

948

Money held in trust

45,49342,268(3,224)43,002

Securities

19,9005,800(14,100)

6,700

Accrued investment trust management fees

25,24625,161(84)

25,448

Accrued investment advisory fees

5,933

4,788

(1,144)

6,582

Other current assets

797

957

160

726

Allowance for doubtful accounts

(15)

(15)

0(16)

25,761

24,105(1,655)26,262

Tangible fixed assets

714

679

(35)

793

Intangible fixed assets

6,438

5,940

(498)

6,661

Investments and other

18,60817,485(1,122)18,807

Investment securities

1,562

1,362

(199)

2,582

Investment in subsidiaries and affiliates

12,631

12,869237

11,477

Prepaid pension cost

2,001

1,736

(264)

2,191

Deferred tax assets

2,694

2,096(597)2,108

Other investments

426

420(6)

448(707)

(999)

(291)

-

124,679

105,278(19,400)

109,654

Current assets

Fixed assets

Allowance for investment loss
Total assets1

(Millions of Yen)
March 31, 2019

September 30, 2019

Increase (Decrease)

September 30, 2018

Liabilities

33,942

25,317(8,625)28,014

Investment trust distribution of income
payable00(0)0Investment trust redemptions payable2525(0)25

Accrued commission payable

7,724

7,472

(251)

8,085

Accounts payable to subsidiaries andaffiliates

7,422

3,649(3,772)

3,486

Other accounts payable

1,535

739

(796)

1,217

Accrued expenses

11,704

9,291(2,413)

11,109Accrued income taxes

1,560

1,661

101

1,588

Accrued bonuses

3,792

2,294

(1,497)

2,349

175

181

5

149

3,777

3,832

54

3,644

3,219

3,267

47

3,087

558

565

7557

Total liabilities

37,72029,150(8,570)31,658

Shareholder's equity

86,924

76,122(10,802)77,899Common stock

17,18017,180-17,180Capital reserve

13,72913,729-13,729Additional paid-in capital

11,72911,729-11,729Other capital surplus

2,0002,000-

2,000

56,01445,212(10,802)

46,989Earned surplus reserve685

685-685

Other Earned surplus

55,32944,527(10,802)

46,303General reserve

24,606

24,606-

24,606

Earned surplus brought forward

30,72319,920(10,802)

21,697

33

6(27)

97

33

6(27)

97

Total net assets

86,95876,128(10,830)

77,996

Total liabilities and net assets

124,679

105,278(19,400)

109,654

Current liabilities

Other current liabilities

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

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)
Six Months Ended
September 30, 2018
(A)

Operating revenue

Six Months Ended
September 30, 2019
(B)

Comparison(B)/(A) (%)

Year Ended
March 31, 201972,85867,50792.7

140,992

Investment trust management fees

60,78058,94797.0

119,196

Investment advisory fees

11,904

8,401

70.6

21,440

Other operating revenue

172

158

91.9355

Operating expenses

42,20037,70689.4

80,715

Commissions

22,197

20,29891.4

42,675

Research

16,153

13,552

83.9

30,082Other operating expenses

3,849

3,856

100.2

7,957

General and administrative expenses

14,475

14,39499.4

28,433Operating income

16,181

15,40695.2

31,843Non-operating income

6,812

5,561

81.6

6,964

Non-operating expenses

183

27

15.0

585

22,81020,94091.8

38,222

Special profits

38

44

115.6

135

Special losses

153

410

267.3

2,118

Income before income taxes

22,695

20,574

90.7

36,239

Income taxes - current5,121

5,116

99.9

10,196

Income taxes - deferred

927

610

65.8

370

16,646

14,84789.2

25,672

Ordinary income

Net income

3Nomura Asset Management Co., Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For Interim ended September 30, 2018
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Commonstock

Additional
paid-in
capitalOthercapitalsurplusTotal
capitalreserve

Earnedsurplus
reserve

17,18011,7292,000

13,729685

Total
Shareholder's equity

Generalreserve

Earnedsurplus
broughtforwardTotal
Earnedsurplus24,60629,87655,16886,078Dividends of surplus(24,826)(24,826)(24,826)

Net income

16,646

16,646

16,646

Balance at beginning of year

Other-net
Change in the term
Balance at end of year------(8,179)(8,179)(8,179)17,18011,7292,000

13,729685

24,606

21,697

46,98977,899(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain oninvestments
Balance at beginning of year

11

Total Valuation andtranslation
adjustments

Total net assets

1186,090

Dividends of surplus(24,826)

Net income

16,646

Other-net

85

85

85

Change in the term

8585

(8,094)

Balance at end of year

9797

77,996

4

For Interim ended September 30, 2019
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Commonstock

Additional
paid-in
capitalOther
capitalsurplusTotal
capitalreserve

Earnedsurplus
reserve

17,18011,7292,000

13,729685

Total
Shareholder's equity

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus

24,60630,72356,01486,924

Dividends of surplus(25,650)(25,650)(25,650)

Net income

14,847

14,847

14,847

Balance at beginning of year

Other-net
Change in the term
Balance at end of year------(10,802)(10,802)(10,802)

17,18011,7292,000

13,729685

24,606

19,92045,212

76,122(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain on
investments
Balance at beginning of year

33

Total Valuation andtranslation
adjustments

Total net assets

33

86,958Dividends of surplus(25,650)

Net income

14,847

Other-net

(27)

(27)

(27)

Change in the term

(27)

(27)

(10,830)

Balance at end of year

6676,1285

For The Year Ended March 31, 2019
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Commonstock

Additional
paid-in
capitalOther
capitalsurplusTotal
capitalreserve

Earnedsurplusreserve

17,18011,7292,000

13,729685

Total
Shareholder's equity

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus24,60629,87655,16886,078Dividends of surplus(24,826)(24,826)(24,826)

Net income

25,672

25,672

25,672

Balance at beginning of year

Other-net
Change in the term
Balance at end of year------846

846

846

17,18011,7292,000

13,729685

24,60630,72356,01486,924(Millions of Yen)

Valuation and translation adjustments
Net unrealized gain on
investments
Balance at beginning of year

11

Total Valuation andtranslation
adjustments

Total net assets

1186,090

Dividends of surplus(24,826)

Net income

25,672Other-net

21

21

21

Change in the term

2121868

Balance at end of year33

33

86,9586Significant Accounting Policies
1.

Basis and Method of Valuation for SecuritiesSecurities 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 “net assets” on the balance
sheet.
(ii) without market value
Recorded at cost using the moving average method

2.

Basis and Method of Valuation for Money held in trust
Recorded at fair value

3.

Depreciation/Amortization Method of Fixed Assets(1) Depreciation of tangible fixed assets
Tangible fixed assets are depreciated by the declining-balance method, except for buildings(excluding facilities attached to buildings) acquired on or after April 1, 1998 and both facilities
attached to buildings and structures acquired on or after April 1, 2016, which are depreciated by thestraight-line method.
(2) Amortization of intangible assets
Intangible assets are amortized primarily over their estimated useful lives on the straight-linemethod.

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
Allowance for retirement benefits is provided for future payments of retirement benefits toemployees at an estimated amount based on the retirement benefit obligation and the fair value of thepension plan assets.
The benefit formula method is used for attributing the estimated future payments to the amount ofallowance for retirement benefits in this fiscal year.
Any actuarial differences arising from the tax-qualified pension plan are amortized from thefollowing fiscal year when the differences arose by the straight-line method over a period within theaverage remaining years of service of the eligible employees, while those arising from the lump-sum
payment plan are fully expensed in the following fiscal year when the differences arose. Prior service
costs arising from the lump-sum payment plan and tax-qualified pension plan are amortized by thestraight-line method over a period within the average remaining years of service of the eligible
employees from the fiscal year when they were incurred.
(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 investment loss
To provide for valuation losses on the investment of subsidiaries and affiliates, an estimated amountof future losses is recorded based on the financial position of those companies.
7

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.

Notes to Balance Sheet Information
1. Accumulated Depreciation on Tangible Fixed Assets(Millions of yen)March 31, 2019September 30, 2019

September 30, 2018

3,842

3,881

3,847

Six Months Ended

Six Months EndedYear Ended

September 30, 2018

September 30, 2019

March 31, 2019

Notes to Income Statement Information
1.

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

2.

Gain on sales of investment securities and other

0120

Gain on liquidation of subsidiaries and affiliates--29

Receipt of stock option income

374385Special Losses consist of the following:(Millions of yen)

Six Months Ended

Six Months EndedYear Ended

September 30, 2018

September 30, 2019

March 31, 2019

Loss on valuation of investment securities and other
Loss on valuation of investments in subsidiaries andaffiliates
Loss on disposal of fixed assets
Provision of allowance for investment loss

8-

119

938

--

161

153-

310-

291

707

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)
September 30, 2018

Increase (Decrease)

Unit Type

112

144

32

Open Type26,192

26,768575

Stock Investment Trusts - Public

26,305

26,913607

Bond Investment Trusts

411

379

(31)

Money Reserve Fund

5,074

4,902(172)00(0)

Bond Investment Trusts - Public5,486

5,282(204)

Stock Investment Trusts

2,564

2,611

47

Bond Investment Trusts

1,760

1,708(51)

Private Investment Trusts

4,324

4,320(4)

Total

36,11636,515399

Others2.

September 30, 2019

Assets under Investment Management and Advisory Contracts(Billions of yen)
September 30, 2018

September 30, 2019

Increase (Decrease)

Domestic - General

248

265

17

Domestic - Pension

9,365

8,721

(643)

Overseas

3,517

2,917(599)

13,131

11,905(1,225)Total

9Quarterly Income Statement Information(Millions of Yen)

1st quarter2nd quarter

Six Months EndedFrom April 1, 2019

From July 1, 2019

From April 1, 2019

To June 30, 2019

To September 30, 2019

To September 30, 2019

33,97033,53667,507

Investment trust management fees

29,69529,25258,947

Investment advisory fees

4,196

4,204

8,401

Other operating revenue

78

79

158

Operating expenses

19,043

18,66337,706

Commissions

10,285

10,012

20,298

Research

6,854

6,697

13,552Other operating expenses

1,903

1,953

3,856

General and administrative expenses

7,346

7,047

14,394

Operating income (loss)

7,580

7,825

15,406

Non-operating income

1,3164,244

5,561

Non-operating expenses

10

1727

8,837

12,053

20,940Special profits

39

4

44

Special losses

147

263

410

Income (loss) before income taxes

8,779

11,795

20,574

Income taxes - current

1,973

3,142

5,116

Income taxes - deferred

1,188(577)610

Net income (loss)

5,617

9,230

14,847

Operating revenue

Ordinary income10