Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Six Months Ended September 30, 2015
(Unaudited)Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
September 30, 2015

March 31, 2015

Increase (Decrease)

September 30, 2014

Assets85,60997,486(11,876)

78,408

282

411

(128)

363

Money held in trust

55,44556,824(1,378)49,988

Securities

4,900

17,100(12,200)

7,300

Accrued investment trust management fees

15,72812,6793,048

11,088

Accrued revenue

6,953

7,436

(483)7,909

Deferred tax assets

1,750

2,594(844)1,224Other current assets

560

449

111

543

Allowance for doubtful accounts

(11)

(9)

(1)

(9)

Fixed assets

33,60433,417

187

30,031

Tangible fixed assets

1,203

1,322

(118)

1,554

Intangible fixed assets

6,862

7,254

(392)

7,237

Investments and other

25,53924,840699

21,240Investment securities

12,316

11,593722

10,219Investment in subsidiaries and affiliates

10,14910,149-10,458Prepaid pension cost

2,786

2,776

9262

Other investments

287

320

(33)

299-(0)0-119,214130,903(11,688)

108,440

Current assets
Cash and cash equivalents

Allowance for doubtful accounts
Total assets1

(Millions of Yen)
September 30, 2015

March 31, 2015

Increase (Decrease)

September 30, 2014

Liabilities

23,02630,182(7,155)

19,538Investment trust distribution of income
payable

1

1(0)

1

Investment trust redemptions payable

32

32(0)

32

Accrued commission payable

5,797

4,883

914

4,484

Other accounts payable

3,270

6,684

(3,414)

2,354

Accrued expenses

8,217

10,221(2,003)

8,902

Accrued income taxes

1,452

1,961

(508)

1,266

Accrued bonuses

2,436

4,558

(2,121)

2,372

Allowance for foreign tax payments

1,704

1,721

(17)

-

114

118

(3)

122

4,023

3,735

287

3,194

2,580

2,467

113

-

Reserve for loss on distribution of income
and redemption after expiration

515

521

(5)

521

Deferred tax liabilities

927

747

180

2,673

Total liabilities

27,05033,918(6,867)22,732

Shareholder's equity

84,91190,092(5,180)80,007

Common stock

17,18017,180-17,180Capital reserve

11,72911,729-11,72911,729

11,729-11,72956,001

61,182(5,180)51,097

Earned surplus reserve

685

685

-

685

Other Earned surplus

55,31660,497(5,180)50,412

General reserve

24,606

24,606-

24,606

Earned surplus brought forward

30,70935,890(5,180)25,805

7,252

6,893

359

5,699

7,252

6,893

359

5,699

Total net assets

92,16496,985(4,821)85,707

Total liabilities and net assets

119,214130,903(11,688)

108,440

Current liabilities

Other current liabilities

Long-term liabilities
Reserve for retirement benefitsAdditional paid-in capital
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, 2015
(A)

Operating revenue

Six Months Ended
September 30, 2014
(B)

Comparison(A)/(B) (%)

Year Ended
March 31, 2015

68,95860,881

113.3

127,847

Investment trust management fees

53,88445,964117.2

96,159Investment advisory fees

14,97014,813101.1

31,466

Other operating revenue

103

103

100.2

221

Operating expenses

41,18738,390

107.3

80,648Commissions

24,81522,789108.947,060Research

13,494

13,225102.0

28,326

Other operating expenses

2,877

2,376

121.1

5,260

General and administrative expenses

12,544

12,272102.2

24,643Operating income

15,225

10,218149.0

22,555Non-operating income

5,927

2,879

205.9

4,756

Non-operating expenses

1,299

25

5,021.5

166

Ordinary income

19,853

13,071151.9

27,146

Special profits

46

912

5.0

936

Special losses

53

279

19.2

2,169

Income before income taxes

19,846

13,704144.8

25,913

Income taxes - current

4,5302,975

152.3

8,433

Income taxes - deferred

855

845

101.1

(2,488)

14,460

9,883

146.3

19,967

Net income3

Nomura Asset Management Co., Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For Interim ended September 30, 2015
(Millions of Yen)

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Total
Shareholder'sequity

Commonstock

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplus
reserve

Generalreserve

Earnedsurplus
brought
forward17,18011,72911,729685

24,60635,89061,182

90,092

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

Net profit

14,46014,46014,460

291

291

291

Balance at beginning of year

Increase from the absorption-type
split

Total
Earnedsurplus

Other-net
Change in the term
Balance at end of period-----(5,180)(5,180)(5,180)17,18011,72911,729685

24,60630,70956,001

84,911(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

14,460

Increase from the absorption-type
split

291

Other-net

359

359

359

Change in the term

359

359

(4,821)

Balance at end of period

7,252

7,252

92,1644

For Interim ended September 30, 2014
(Millions of Yen)

Shareholder's equity
Capital reserve

Balance at beginning of year

Earned surplus
Other Earned surplus

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplusreserve

Generalreserve

Earnedsurplusbrought
forwardTotal
Earnedsurplus17,18011,72911,729685

24,606

26,04851,33980,249

(81)

(81)

(81)

25,966

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

9,883

9,883

9,883

Cumulative effects of changes inaccounting policies
Restated balance

Total
Shareholder'sequityCommonstock

17,18011,72911,729685

24,606

Cash dividends
Net profit
Other-net
Change in the term
Balance at end of period-----(160)

(160)

(160)

17,18011,72911,729685

24,60625,80551,09780,007(Millions of Yen)

Valuation and translation adjustments

Balance at beginning of year

Net unrealized gain on
investments

Total Valuation andtranslation
adjustmentsTotal 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

9,883

Other-net

(979)

(979)

(979)

Change in the term

(979)

(979)

(1,140)

Balance at end of period

5,699

5,699

85,707

5

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

Shareholder's equity
Capital reserve

Earned surplus
Other Earned surplus

Total
Shareholder'sequity

Commonstock

Additional
paid-in
capitalTotal
capitalreserve

Earnedsurplus
reserve

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

19,967

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

17,18011,72911,729685

24,606

Total
Earnedsurplus

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 Valuation andtranslation
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

96,985

6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 “net assets” on thebalance 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-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 the
average 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 foreign tax payments
To provide for potential foreign tax payments, the estimated amount to be paid in the future isrecorded.
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
September 30, 2015

March 31, 2015

(Millions of yen)
September 30, 2014

3,781

3,659

3,584

Six Months Ended

Six Months EndedYear Ended

September 30, 2015

September 30, 2014

March 31, 2015

Notes to Income Statement Information
1.

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

2.

Gain on sales of investment securities and other-794794

Receipt of stock option income46117142

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

Six Months Ended

Six Months EndedYear Ended

September 30, 2015

September 30, 2014

March 31, 2015

Loss on devaluation of investment securities and other
Loss on disposal of fixed assets
Provision of allowance for foreign tax payments

8-9091

53

189

357--

1,721

Notes to Business Combinations Information
Under the reorganization, Nomura Asset Management Co., Ltd. (NAM) will take over Nomura Funds
Research and Technologies Co., Ltd. (NFR&T)’s operations related to the management of investment
trusts and its institutional investor advisory business.
By consolidating its marketing, investment and management operations under NAM and improving
the efficiency and stability of its investment management operations, Nomura aims to deliver a higher
level of service to its clients.
Nomura also aims to produce higher added-value analysis and evaluation by consolidating the AssetManagement 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 toaccommodate the needs of investors by fully leveraging the specialized expertise in NAM and NFR&T.
Schedule of reorganization
February 18, 2015

Execution of reorganization agreements by NAM and NFR&T

July 1, 2015

NAM to take over NFR&T institutional client business

October 1, 2015

NAM to take over NFR&T retail client business

9Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)
September 30, 2015

Increase (Decrease)

Unit Type134

135(1)

Open Type16,151

15,929222

Stock Investment Trusts - Public16,285

16,064220

Bond Investment Trusts

626651(24)

Money Management Fund

612626

(14)

5,608

5,921

(312)

Bond Investment Trusts - Public

6,848

7,199

(351)

Stock Investment Trusts

1,764

1,999(234)

Bond Investment Trusts

1,149

929

220

Private Investment Trusts

2,914

2,928

(13)

Total

26,04826,192(144)

Others2.

March 31, 2015

Assets under Investment Management and Advisory Contracts(Billions of yen)
September 30, 2015

March 31, 2015

Increase (Decrease)

Domestic - General

246

222

24

Domestic - Pension

7,283

4,953

2,329

Overseas

5,695

7,264(1,568)

13,225

12,439

785

Total

10

Quarterly Income Statement Information(Millions of Yen)

1st quarter2nd quarter

Six Months Ended

From April 1, 2015

From July 1, 2015

From April 1, 2015

To June 30, 2015

To September 30, 2015

To September 30, 201534,92034,03868,958Investment trust management fees

27,013

26,87053,884

Investment advisory fees

7,850

7,119

14,970

Other operating revenue

55

48

103

Operating expenses

21,052

20,135

41,187

Commissions

12,666

12,14924,815

Research

6,964

6,530

13,494

Other operating expenses

1,421

1,456

2,877

General and administrative expenses

6,351

6,193

12,544

Operating income (loss)

7,516

7,709

15,225Non-operating income

3,648

2,278

5,927

Non-operating expenses

248

1,051

1,299

10,917

8,936

19,853Special profits

18

2746

Special losses

-53

53

Income (loss) before income taxes

10,935

8,910

19,846

Income taxes - current

1,745

2,784

4,530

Income taxes - deferred

1,255(400)855

Net income (loss)

7,934

6,526

14,460Operating revenue

Ordinary income11