Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Year Ended March 31, 2007

Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information(Millions of Yen)
March 31, 2007

March 31, 2006

Increase/(Decrease)58,221

81,050(22,828)

Cash and cash equivalents

23,242

22,038

1,203

Money held in trust

2,105-2,105

Short-term loan receivable

14,00045,000(31,000)

73

1,519

(1,445)

Accrued investment trust management fees

14,048

8,454

5,594

Accrued revenue

2,261

2,737(475)Deferred tax assets

1,352

1,129222Other current assets

1,152

199

952

Allowance for doubtful accounts

(15)

(27)

12

Fixed assets

69,436

72,661(3,225)

Tangible fixed assets

1,743

1,148

594

Intangible fixed assets

7,642

6,548

1,094

Investments and other

60,05064,965(4,915)Investment securities

44,125

48,811(4,686)

Investment in subsidiaries and affiliates

15,40515,156249

Long-term guarantee deposits

30

25

4

Other investments

489

969

(479)

Allowance for doubtful accounts

(0)

(0)

(0)

127,657

153,712(26,054)

AssetsCurrent assets

Cash deposited for investment trust redemption
and distribution of income

Total assets-1-(Millions of Yen)
March 31, 2007

March 31, 2006

Increase/(Decrease)

27,27916,781

10,498Investment trust distribution of income payable

85

1,508

(1,423)

Investment trust redemptions payable

261

739

(477)

Accrued commission payable

6,040

3,730

2,310

Other accounts payable

7,944

2,894

5,050

Accrued expenses

8,486

4,484

4,001

Accrued income taxes

2,640

2,121

519

Accrued bonuses

1,650

1,230

420

170

7198

7,528

12,648(5,120)Reserve for retirement benefits

5,034

5,548

(514)

Deferred tax liabilities

2,434

7,029

(4,594)

5971

(12)

34,80829,4305,378

Liabilities
Current liabilities

Other current liabilities

Long-term liabilities

Other long-term liabilities
Total liabilities

82,451

Total shareholder's equity
Common stock

17,180--Capital reserve

11,729--11,729--53,541--

Earned surplus reserve

685

-

-

Other Earned surplus

52,856--

General reserve35,606--

Earned surplus brought forward

17,249--Additional paid-in capital
Earned surplus

Valuation and translation adjustments

10,397Net unrealized gain on investments

11,008--Deferred gains or loss on hedges

(610)

-

-

Total net assets

92,849--Total liabilities and net assets

127,657---2-

March 31, 2007

March 31, 2006

Increase/(Decrease)

Common stock-

17,180-Capital reserve-

11,729--11,729--77,936-

Earned surplus reserve

-

685

-

General reserve-

63,606-

Unappropriated retained earnings-

13,644-

Net unrealized gain on investments-17,435-

Total shareholder's equity-124,282-

Total liabilities and shareholder's equity-

153,712-

Shareholder's equity

Additional paid-in capital
Earned surplus-3-

Nomura Asset Management Co.,Ltd.
Unconsolidated Income Statement Information(Millions of Yen)
Year Ended
March 31, 2007
(A)

Operating revenue

Year Ended
March 31, 2006
(B)

Comparison(A-B)/B (%)

94,482

58,869160.5

Investment trust management fees

82,51548,368170.6

Investment advisory fees

11,95910,492

114.0

Other operating revenue

7789.7

Operating expenses

62,75636,919170.0

Commissions

37,426

21,383

175.0

Research

19,78310,870

182.0

Other operating expenses

5,546

4,664

118.9

General and administrative expenses

18,347

15,233

120.4

Compensation and benefits

10,545

8,967

117.6

Occupancy

1,821

1,538

118.4

Depreciation of fixed assets

1,915

1,492

128.4

Other general and administrative expenses

4,065

3,234

125.7

Operating income

13,378

6,716

199.2

Non-operating income

2,632

1,936

135.9

Non-operating expenses

267

69

385.9

Ordinary income

15,743

8,584

183.4

Special profits

12,884

6,820

188.9

Special losses

1,830

448

407.9

Income before income taxes

26,797

14,956

179.2

Income taxes - current

9,913

4,610

215.0

Income taxes - deferred73(571)-

16,81010,917154.0

Net income-4-Notes to Unconsolidated Financial Statements

The unconsolidated financial statements of Nomura Asset Management Co., Ltd. (“the Company”) wereprepared in accordance with “Regulations Concerning the Terminology, Forms and Preparation Methods ofFinancial Statements” (Ministry of Finance Ordinance No. 59, 1963) and “Regulations for enforcement ofthe 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(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 “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 Methods of Valuation for Financial Derivatives
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.

Allowance for doubtful accounts
To provide mainly for loan losses, the Company made provisions for doubtful accounts based on anestimate of the maximum uncollectible amount calculated using its historical loss ratio or a reasonableestimate based on financial condition of individual borrowers.

5.

Accrued bonuses
To provide for employee bonus payments, an accrual is recorded at an estimate of the amounts to bepaid as future bonuses to employees.

6.

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 isrecorded as a reserve for employee retirement benefits.

7.

Leasing Transactions
Lease contracts for which the title of the leased property has not transferred are accounted for as
operating lease transactions.

8.

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 investment securities are realized.

9.

Accounting for Consumption Taxes
National and local consumption taxes are accounted for based on the tax exclusion method.
10. Consolidated Tax Return System
The company applies consolidated tax return system.
-5-Change in Accounting Principle
From September 30, 2005, the Company adopted Statement of Opinion, “Accounting for Impairment ofFixed Assets” issued by the Business Accounting Council in August 2002 and Guidance No.6 “Guidance forAccounting Standard for Impairment of Fixed Assets” issued by the Accounting Standards Board of Japan(“ASB”) in October 2003. This adoption had no effect on the income statement for the year ended March 31,
2006.

Notes to Balance Sheet Information
1. Accumulated Depreciation on Tangible Fixed Assets(Millions of yen)March 31, 2007
481

March 31, 2006
530

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
Dividend from subsidiaries
Gain on liquidation of a subsidiary
Receipt of stock option income

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

Year Ended
March 31, 2006
606
6,169
44-

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 other
Loss on disposal of fixed assets
Office relocation expense-6-

Year Ended
March 31, 2007
113
601
1,115

Year Ended
March 31, 2006
104
103
241
-

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)March 31, 2007

Increase/(Decrease)

Unit Type

84

1173

Open Type

10,731

6,861

3,870

Stock Investment Trusts - Public

10,816

6,873

3,943

Bond Investment Trusts

1,248

1,504(255)

Money Management Fund

882

853

29

3,657

3,266

390

5,788

5,623

164

Unit Type

2,191

1,455736

Open Type-17(17)Private Investment Trusts

2,1911,472

719

Total

18,796

13,9694,827

OthersBond Investment Trusts - Public

2.

March 31, 2006

Assets under Investment Management and Advisory Contracts(Billions of yen)March 31, 2007

March 31, 2006

Increase/(Decrease)

Domestic - General

237

281

(43)

Domestic - Pension

3,506

3,687(180)Overseas

3,370

3,038

332

7,115

7,006

108

Total

-7-Quartely Statements of Operations(Millions of yen)

Operating revenue

1st quarter2nd quarter3rd quarter

4th quarter

For the year

From April 1, 2006

From July 1, 2006

From October 1, 2006

From January 1, 2007

From April 1, 2007

To June 30, 2006

To September 30, 2006

To December 31, 2006

To March 31, 2007

To March 31, 2007

19,23821,137

24,74629,36094,482

Investment trust management fees

16,20918,10821,741

26,45682,515Investment advisory fees

3,027

3,026

3,002

2,902

11,959Other operating revenue

11

1

1

7

Operating expenses

11,881

13,885

16,602

20,38662,756

Commissions

7,201

8,246

9,893

12,08437,426

Other operating expenses

4,680

5,638

6,709

8,302

25,330General and administrative expenses

4,297

4,435

4,137

5,477

18,347

Operating income

3,058

2,817

4,006

3,496

13,378Non-operating income

1,460

177

754

239

2,632

Non-operating expenses

27

22

67

150

267

Ordinary income

4,491

2,972

4,693

3,585

15,743Special profits

15

5,408

6,953

508

12,884

Special losses

75

187

214

1,352

1,830

4,430

8,193

11,432

2,740

26,797

Income taxes - current

800

3,890

4,210

1,013

9,913

Income taxes - deferred

743

(580)

268

(356)

73

2,887

4,884

6,954

2,084

16,810

Income before income taxes

Net income-8-