Nomura Asset Management Co., Ltd.
Financial Summary (Unconsolidated)
For The Year Ended March 31, 2019
(Unaudited)Nomura Asset Management Co., Ltd.
Unconsolidated Balance Sheet Information (Unaudited)(Millions of Yen)
March 31, 2018

March 31, 2019

Increase (Decrease)

Assets105,048

98,917(6,130)

919

1,562

643

Money held in trust

47,93645,493(2,442)

Securities

22,60019,900(2,700)Accrued investment trust management fees

24,05925,246

1,186

Accrued investment advisory fees

6,764

5,933(830)Deferred tax assets

2,111-(2,111)

Other current assets

672

797

124

Allowance for doubtful accounts

(15)

(15)

(0)

21,85725,761

3,903

Tangible fixed assets

874

714

(160)

Intangible fixed assets

7,157

6,438

(718)

Investments and other

13,825

18,6084,782

Investment securities

1,184

1,562

378

Investment in subsidiaries and affiliates

9,033

12,631

3,597

54

235

180

Prepaid pension cost

2,350

2,001

(349)

Deferred tax assets

962

2,694

1,731

Other investments

241

191

(50)

Allowance for doubtful accounts

(0)

-0

Allowance for investment loss-(707)(707)

126,906124,679(2,227)

Current assets
Cash and cash equivalents

Fixed assets

Long-term guarantee deposits

Total assets1

(Millions of Yen)
March 31, 2018

March 31, 2019

Increase (Decrease)

Liabilities

37,32933,942(3,387)

Investment trust distribution of income
payable10(0)Investment trust redemptions payable3125(5)

Accrued commission payable

7,884

7,724(160)

Accounts pay able to subsidiaries andaffiliates

7,930

7,422(508)Other accounts payable

2,005

1,535(469)

Accrued expenses

12,441

11,704(736)

Accrued income taxes

2,241

1,560

(681)

Accrued bonuses

4,626

3,792

(833)

167

175

8

3,486

3,777

291

2,938

3,219

281

548

558

10

Total liabilities

40,81637,720(3,096)

Shareholder's equity

86,07886,924846

Common stock

17,18017,180-Capital reserve

13,72913,729-Additional paid-in capital

11,72911,729-Other capital surplus

2,000

2,000-

55,16856,014846

Earned surplus reserve

685

685

-

Other earned surplus

54,48355,329846

General reserve

24,606

24,606-

Earned surplus brought forward

29,87630,723

846

1133

21

1133

21

Total net assets

86,09086,958868

Total liabilities and net assets

126,906

124,679(2,227)

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)
Year Ended
March 31, 2018
(A)

Operating revenue

Year Ended
March 31, 2019
(B)

Comparison
B/A (%)

142,447

140,992

99.0

Investment trust management fees

115,907

119,196102.8

Investment advisory fees

26,20021,44081.8

Other operating revenue

338

355

104.9

Operating expenses

83,68980,715

96.4

Commissions

45,252

42,675

94.3

Research

30,51630,082

98.6

Other operating expenses

7,921

7,957

100.5

General and administrative expenses

27,60928,433103.0

Compensation and benefits

14,75014,358

97.3

Occupancy

1,221

1,223

100.2

Depreciation of fixed assets

2,706

2,835

104.8

Other general and administrative expenses

8,930

10,015112.1

Operating income

31,14831,843102.2

Non-operating income

4,398

6,964

158.3

Non-operating expenses

405

585

144.3

35,141

38,222

108.8

Special profits

95135

142.5

Special losses

60

2,118

3,482.1

Income before income taxes

35,17636,239103.0

Income taxes - current

10,775

10,196

94.6

Income taxes - deferred

(439)

370

-Net income

24,84025,672

103.4

Ordinary income

3Nomura Asset Management Co., Ltd.
Unconsolidated Statements of Shareholder’s Equity (Unaudited)
For The Year Ended March 31, 2018
(Millions of Yen)

Shareholder's equity
Capital reserveCommonstock

Balance at beginning of year

17,180Earned surplus
Other Earned surplus

Total
Shareholder's equity

Additional
paid-in
capitalOthercapitalsurplusTotal
capitalreserve

Earnedsurplusreserve

Generalreserve

Earnedsurplusbrought
forward11,7292,000

13,729685

24,60630,63555,927

86,837(25,598)(25,598)(25,598)

24,84024,84024,840

Dividends of surplus
Net profit

Total
Earnedsurplus

Other-net
Change in the term––––––(758)

(758)

(758)

Balance at end of year

17,18011,7292,00013,729

685

24,60629,87655,16886,078(Millions of Yen)

Valuation and translation adjustments

Balance at beginning of year

Net unrealized gain
on investments

Total Valuation andtranslation
adjustments

Total net
assets41

41

86,878Dividends of surplus(25,598)

Net profit

24,840

Other-net

(29)

(29)

(29)

Change in the term

(29)

(29)

(788)

Balance at end of year

1111

86,0904For The Year Ended March 31, 2019
(Millions of Yen)

Shareholder's equity
Capital reserve
Commonstock

Balance at beginning of year

17,180Earned surplus
Other Earned surplusTotal
Shareholder's equity

Additional
paid-in
capitalOthercapitalsurplusTotal
capitalreserve

Earnedsurplusreserve

Generalreserve

Earnedsurplusbrought
forward11,7292,000

13,729685

24,60629,87655,16886,078(24,826)(24,826)(24,826)

25,672

25,672

25,672

Dividends of surplus
Net profit

Total
Earnedsurplus

Other-net
Change in the term––––––

846

846

846

Balance at end of year

17,18011,7292,000

13,729685

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

Valuation and translation adjustmentsBalance at beginning of year

Net unrealized gain
on investments

Total Valuation andtranslation
adjustments

Total net
assets

1111

86,090

Dividends of surplus(24,826)

Net profit

25,672Other-net

212121

Change in the term

2121868

Balance at end of year33

33

86,9585

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 valueThe difference between the cost using the moving averagemethod and market value less deferred tax is recorded as “Netunrealized gain on investments” in “shareholder’s equity” 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 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 on an
estimate of the maximum uncollectible amount calculated using its historical loss ratio or a reasonableestimate 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 investment loss
To provide for valuation losses on the investment of subsidiaries and affiliates, an estimatedamount of future losses is recorded based on the financial position of those companies.
6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)

Year Ended
March 31, 2018
4,200

Year Ended
March 31, 2019
3,842

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 liquidation of subsidiaries and affiliates
Receipt of stock option income

2.

Year Ended
March 31, 2018
2075

Year Ended
March 31, 20192029
85

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

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

7

Year Ended
March 31, 20182Year Ended
March 31, 2019938-161

58-

310
707

Supplementary Information
1.

Net Assets of Investment Trusts(Billions of yen)March 31, 2018

March 31, 2019

Unit Type132

162

30

Open Type24,428

25,925

1,496

Stock Investment T rusts - Public

24,561

26,088

1,527

Bond Investment Trusts

428395(33)Money Reserve Fund

4,973

4,759(213)

00

0

5,402

5,155(247)

Unit Type

2,343

2,633

290

Open Type

1,783

1,728(55)

Private Investment Trusts

4,127

4,362

235

Total

34,09135,606

1,514

OthersBond Investment Trusts - Public2.

Increase (Decrease)

Assets under Investment Management and Advisory Contracts(Billions of yen)March 31, 2018

March 31, 2019

Domestic - General

227

253

25

Domestic - Pension

8,860

8,684(175)Overseas

3,788

3,031(756)12,876

11,969(907)

Total

8

Increase (Decrease)Quarterly Income Statement Information(Millions of yen)
1st quarter
From April 1, 2018
To June 30, 2018

Operating revenue

2nd quarter3rd quarter

4th quarter

For the year

From July 1, 2018

From October 1, 2018

From January 1, 2019

From April 1, 2018

To September 30, 2018 To December 31, 2018

To March 31, 2019

To March 31, 201936,49936,35834,111

34,022140,992

Investment trust management fees

30,50430,27529,47628,939119,196

Investment advisory fees

5,915

5,9894,530

5,005

21,440

Other operating revenue

79

92

104

77

355

Operating expenses

21,15921,041

19,331

19,18280,715

Commissions

11,22010,977

10,387

10,08942,675

Research

7,997

8,156

6,977

6,951

30,082Other operating expenses

1,941

1,907

1,967

2,141

7,957

General and administrative expenses

7,254

7,221

7,046

6,911

28,433Operating income

8,085

8,095

7,733

7,928

31,843Non-operating income

1,864

4,948

78

72

6,964

Non-operating expenses

195(11)867(466)

585

Ordinary income

9,754

13,056

6,944

8,467

38,222Special profits

1325

24

72

135

Special losses

-

153

717

1,247

2,118

Income before income taxes

9,767

12,927

6,250

7,293

36,239

Income taxes - current

1,895

3,225

2,287

2,788

10,196

Income taxes - deferred

1,377

(449)

(189)

(367)

370

Net income

6,494

10,152

4,152

4,873

25,6729