Items Disclosed on the Internet
in relation to the Notice of Convocation of
the 16th Ordinary General Meeting of Shareholders
Business Report
Current status of the Group
Principal businesses
Principal business offices of major subsidiaries
Share acquisition rights, etc.
Status of share acquisition rights
Status of share acquisition rights held by the officers of theCompany
Status of share acquisition rights delivered to employees, etc.,
during the fiscal year under review
Other important matters relating to share acquisition rights, etc.
System to ensure the appropriateness of operations and theoperational status of that system
Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets
Notes to Consolidated Financial Statements
Non-Consolidated Financial Statements
Non-Consolidated Statement of Changes in Net Assets
Notes to Non-Consolidated Financial Statements

The above information is provided to shareholders by means of disclosure through theInternet (on the website of Nomura Real Estate Holdings, Inc. (the “Company”) at
https://www.nomura-re-hd.co.jp/english/ir/) pursuant to the provisions of laws andregulations and Article 14 of the Company’s Articles of Incorporation.

Nomura Real Estate Holdings, Inc.
Please note that the following is an unofficial English translation of Japanese original text of the Items Disclosed on the Internet inrelation to the Notice of Convocation of the 16th Ordinary General Meeting of Shareholders of Nomura Real Estate Holdings, Inc.
The Company provides this translation for reference and convenience purposes only and without any warranty as to its accuracy orotherwise. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Business Report
Current status of the Group
Principal businesses (as of March 31, 2020)
The Group’s business operations are comprised of the Residential Development Business, Commercial
Real Estate Business, Investment Management Business, Property Brokerage & CRE Business, Property& Facility Management Business, and Other Business. The details of each business are outlined below.
Unit
Residential
Development
Business
Commercial Real
Estate Business

Principal businesses
Development and sale of condominiums and detached housing, development andsale of rental condominiums, development and operation of housing for theelderly, internet ad agency business, and businesses aimed at providing assistanceto customers concerning their homes arrangements, etc.
Development, lease, sale and entrusted management of office buildings, logistic
facilities and retail facilities, planning, lease and operation of hotels, operation of
fitness clubs, and planning and management of construction work

Investment
Management
Business

Investment management business including REIT, privately placed real estate
funds, and real estate securitization products

Property Brokerage& CRE Business

Real estate brokerage and consulting, consignment sales for condominiums anddetached housing, and insurance agency businesses

Property & Facility
Management
Business

Operation, management and construction of condominiums and office buildings,
remodeling construction business, operation of local cooling and heat supply
business, entrusted management of cleaning of office buildings, and sale,intermediation, and supply of electric energy

Other Business

Sale and lease business of land and buildings1Principal business offices of major subsidiaries (as of March 31, 2020)
Company name

Name

Location

Nomura Real Estate Development Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Asset Management Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Urban Net Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Partners Co., Ltd.

Head office

Shinjuku-ku, Tokyo

NREG TOSHIBA BUILDING Co., Ltd.

Head office

Minato-ku, Tokyo

Nomura Real Estate Life & Sports Co., Ltd.

Head officeNakano-ku, Tokyo

Nomura Real Estate Heating and Cooling Supply
Co., Ltd.

Head office

Hodogaya-ku,
Yokohama-shi,
Kanagawa

Geo Akamatsu Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Wellness Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Hotels Co., Ltd.

Head office

Shinjuku-ku, Tokyo

UHM Co., Ltd.

Head office

Chiyoda-Ku, Tokyo

Nomura Real Estate Amenity Service Co., Ltd.
NREG TOSHIBA BUILDING FACILITIES Co.,Ltd.
PRIME X. Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Head office

Minato-ku, Tokyo

Head office

Shinjuku-ku, Tokyo

First Living Assistance Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Lothbury Investment Management Limited

Head office

ZEN PLAZA CO., LTD.

Head officeLondon, England
Ho Chi Minh City,
Vietnam2

Share acquisition rights, etc.
Status of share acquisition rights (as of March 31, 2020)
Name of shareacquisition rights
The 2nd shareacquisition rights in
FY2013
The 3rd shareacquisition rights in
FY2013
The 1st shareacquisition rights in
FY2014
The 2nd shareacquisition rights in
FY2014
The 3rd shareacquisition rights in
FY2014
The 1st shareacquisition rights in
FY2015The 2nd shareacquisition rights in
FY2015
The 3rd shareacquisition rights in
FY2015The 5th shareacquisition rights in
FY2015
The 1st shareacquisition rights in
FY2016The 2nd shareacquisition rights in
FY2016
The 3rd shareacquisition rights in
FY2016The 1st shareacquisition rights in
FY2017The 2nd shareacquisition rights in
FY2017
The 3rd shareacquisition rights in
FY2017The 1st shareacquisition rights in
FY2018The 2nd shareacquisition rights in
FY2018Notes: 1.
2.

3.

Date ofresolution on
issuance

Number ofshareacquisitionrightsNumber ofcommon sharessubject to shareacquisitionrightsExercise period ofshare acquisition rights

Exercise priceof shareacquisitionrights per share(Yen)

June 27, 2013

155

15,500From July 23, 2015 toJuly 22, 2020

1

June 27, 2013

1,664

166,400

From July 23, 2015 toJuly 22, 2020

2,429

June 27, 2014

99

9,900

From July 23, 2016 toJuly 22, 2021

1

June 27, 2014

446

44,600From July 23, 2016 toJuly 22, 2021

1

June 27, 2014

1,511

151,100

From July 23, 2016 toJuly 22, 2021

2,016

June 26, 2015

161

16,100From July 23, 2018 to
July 22, 2023

1

June 26, 2015

592

59,200From July 23, 2018 to
July 22, 2023

1

June 26, 2015

3,283

328,300

From July 23, 2018 to
July 22, 2023

2,741

September 17,
2015

220

22,000From October 14, 2018
to October 13, 2023

2,355

June 29, 2016

567

56,700From July 22, 2019 toJuly 21, 2024

1

June 29, 2016

1,449

144,900

From July 22, 2019 toJuly 21, 2024

1

June 29, 2016

2,828

282,800

From July 22, 2019 toJuly 21, 2024

1,927

June 29, 2017

398

39,800From July 21, 2020 toJuly 20, 2025

1

June 29, 2017

2,283

228,300

From July 21, 2020 toJuly 20, 2025

1

June 29, 2017

4,418

441,800

From July 21, 2020 toJuly 20, 2025

2,400

June 26, 2018107

10,700From July 19, 2021 toJuly 18, 2026

1

June 26, 2018

494

49,400From July 19, 2021 toJuly 18, 2026

1

The number of the shares subject to a share acquisition right is 100.
In principle, a person who has received the allotment of the share acquisition rights must be in a position of Director,
Audit & Supervisory Board Member, Executive Officer, Senior Advisor, Advisor, Special Officer, Special Advisor or
employee of the Company or any of its subsidiaries, or in an equivalent position thereto until the time of exercise of
the share acquisition rights on a continuing basis.
The number of share acquisition rights and the number of common shares subject to share acquisition rights are thenumbers as of March 31, 2020.
3

4.

The Company abolished the existing stock option with issuance of share acquisition rights using stock option as of
the fiscal year ended March 31, 2018, and no share acquisition rights using stock option have been issued since then.

4

Status of share acquisition rights held by the officers of the Company (as of March 31, 2020)
Name of share acquisition rights

Directors (excluding Audit & Supervisory
Committee Members and External Directors)

Directors (Audit & Supervisory Committee
Members)

Number of shareacquisition rights

Number of holders

Number of shareacquisition rights

Number of holders

The 3rd share acquisition rights
in FY2013

76

3

33

1

The 3rd share acquisition rights
in FY2014

133

4

–

–

The 1st share acquisition rights
in FY2015

38

1

–

–

The 2nd share acquisition rights
in FY2015

42

1

–

–

The 3rd share acquisition rights
in FY2015

160

4

–

–

The 1st share acquisition rights
in FY2016

302

3

–

–

The 2nd share acquisition rights
in FY2016

65

1

–

–

The 3rd share acquisition rights
in FY2016

160

4

–

–

The 1st share acquisition rights
in FY2017

337

5

–

–

The 3rd share acquisition rights
in FY2017

216

5

–

–

89

4

–

–

The 1st share acquisition rights
in FY2018

Note: Share acquisition rights held by Directors (Audit & Supervisory Committee Members) were delivered to them before they
assumed the office of Director (Audit & Supervisory Committee Member).

Status of share acquisition rights delivered to employees, etc., during the fiscal year under review
Not applicable.
Other important matters relating to share acquisition rights, etc.
Not applicable.

5

System to ensure the appropriateness of operations and the operational status of that system<Outline of resolution on system to ensure the appropriateness of operations>
The Company has passed the following resolutions at meetings of Board of Directors regarding systems
to ensure that Directors’ execution of their duties is in compliance with laws and regulations and the Articles
of Incorporation and other systems to ensure the appropriateness of operations.

1)
System to ensurethat the execution of duties of
the Directors and Executive
Officers complies with laws
and regulations and the
Articles of Incorporation

2)
System for theretention and management of
information relating to the
execution of duties of the
Directors and Executive
Officers

3)
Rules and othersystems for management ofrisk of loss

4)
System to ensure
the efficient execution ofduties of the Directors andExecutive Officersa.
Aiming to be a corporate group that prospers together with its
customers and society, the Board of Directors has formulated the Nomura Real
Estate Group Code of Action which sets forth the behavior that all Officers andemployees should strive to exemplify. Directors and Executive Officers shall leadby example and comply with this Code of Action.
b.
The Company has formulated the Board of Directors Regulations andthe Organization and Resolutions Rules, which form the basis for referring matters
to, and reporting to, the Board of Directors. Directors and Executive Officers shall
execute their duties in accordance with these Regulations and Rules.
c.
The execution of the duties by Directors and Executive Officers shallbe audited by the Audit & Supervisory Committee.
The Company has formulated the Information Security Provisions, which stipulate
the basic matters concerning the information management system and the handlingof information, to ensure that minutes of General Meetings of Shareholders,
minutes of Board of Directors meetings, and other documents containing
information related to the execution of duties by Directors (excluding Directors as
Audit & Supervisory Committee Members) and Executive Officers are stored in an
appropriate place and saved for the stipulated period of time, so that they can bequickly accessed upon request by Directors or Executive Officers at any time.
a.
The Board of Directors shall exercise overall control of risk
management in accordance with the Risk Management Regulations, develop asystem to ensure effective mutual check functions, assign personnel appropriately,
provide education for the development of human resources, fully disseminate theimportance of risk management to all Officers and employees, and formulate
appropriate measures to prevent accidents.
b.
To deliberate business risks, the Company has established a Risk
Management Committee comprising Directors, Executive Officers, etc. of theCompany and Group companies designated by the Board of Directors toperiodically monitor, assess, and analyze risks, and deliberate basic principles formeasures to prevent risks that may occur during corporate management andbusiness development, to respond when risks arise, and to prevent recurrence, in
accordance with the Risk Management Regulations and the Meeting Bodies Rules.
In addition, the Company has established a Group Risk Meeting comprising
Directors, Executive Officers, etc. of Group companies designated by the chairmanof the Risk Management Committee to share risk information and response
policies within the Group.
The Risk Management Committee and Group Risk Meeting shall in principle meetbimonthly or when necessary, respectively, and shall report the content ofdeliberations to the Board of Directors at least once every three months.
c.
When a risk requiring immediate action arises, in accordance with the
Risk Management Regulations, the chairman of the Risk Management Committee
and Executive Officers and general managers of departments and branch offices incharge of Group risk management, PR, management of affiliated companies,
corporate administration, and finance stipulated by the Risk Management
Regulations shall discuss and determine the basic policy for measures to address
the risk. The Company and Group companies shall respond in accordance with thisbasic policy.
a.
To facilitate flexible decision-making concerning the execution ofbusiness, certain matters determined by resolution of the Board of Directors among
the matters concerning the execution of business at all Group companies shall bedecided through the Executive Committee or through an internal approval system.
b.
The Company has introduced an Executive Officer system aiming tostrengthen Group management by separating management oversight and decisionmaking function from business execution function, thereby enhancing theexecution function.

6

5)
System to ensurethat the execution of duties ofthe employees complies withlaws and regulations and the
Articles of Incorporation

6)
System to ensure
the appropriateness ofoperations in the corporategroup consisting of theCompany, its parent company
and subsidiaries

c.
The Board of Directors shall, by resolution, appoint Executive Officers
in charge of the execution of business, stipulate their business, and delegate thebusiness operations of the Company. Individual Executive Officers shall executebusiness based on the administrative authorities delegated in accordance withinternal regulations, etc. and based on Company policies determined by the Boardof Directors, decisions regarding business execution made by the Executive
Committee, and the directions of the Chief Executive Officer.
d.
The Board of Directors shall create annual budgets and mid-term
management plans, and manage progress on a monthly basis. The results ofmonthly progress management shall be reflected into the execution of duties.
As a holding company, the Company established the following compliance systemcovering not just the Company itself but the entire corporate group.
a.
Aiming to be a trusted corporate group that prospers together with its
customers and society, the Company has established the Nomura Real EstateGroup Code of Action which sets forth the behavior that all Officers andemployees should strive to exemplify, and ensures that all Officers and employees
comply with the Code of Action.
b.
The Company has established the Risk Management Committee andGroup Legal & Compliance Department, and promotes continual education andenlightenment activities for Officers and employees to increase awareness ofcompliance.
c.
The Company has established the Nomura Real Estate Group Help
Line as an internal whistleblowing system for shared use by all Group companies.
Reports and questions can be directed to internal parties (the chairman of the Risk
Management Committee and the Group Legal & Compliance Department) andexternal parties (attorneys at law and contractors). Such reports remain strictly
confidential to prevent informants from receiving adverse treatment based on
having provided information.
The corporate group comprising the Company and its subsidiaries forms the
Nomura Real Estate Group centered on the Company as the holding company. The
Nomura Real Estate Group has established the following systems to ensure
appropriate operations.
a.
Aiming to be a trusted corporate group that prospers together with its
customers and society, the Company has established the Nomura Real EstateGroup Code of Action which sets forth the behavior that all Officers andemployees should strive to exemplify, and ensures that all Officers and employees
comply with the Code of Action.
b.
The Executive Committee has been established in the Company todiscuss important matters related to Group management and overall Group
company business execution, and to determine certain matters related to overall
Group company business execution. In addition, the Executive Committee ensuresthe common purpose of Group management through these activities.
c.
The Risk Management Committee has been established in the
Company to discuss matters concerning internal controls for the entire Group as
well as matters related to risks pertaining to Group management, and to promote
the sharing of information.
d.
The Company has established the Affiliated Company Management
Regulations that require Group companies to discuss with or report to theCompany in advance when determining important matters.
e.
The Company has established the Group Internal Audit Department,
which reviews internal audits performed by Group companies in accordance with
the Group Internal Audit Regulations, thereby maintaining and improving thequality of audits throughout the entire Group.
f.
The Company has established the CSR Committee and Corporate
Communications Department, and promotes continual education andenlightenment activities to increase CSR awareness throughout the entire Group.
g.
The Company has established the Nomura Real Estate Group Help
Line as an internal whistleblowing system for shared use by all Group companies.
Reports and questions can be directed to internal parties (the chairman of the Risk
Management Committee and the Group Legal & Compliance Department) andexternal parties (attorneys at law and contractors). Such reports remain strictly
confidential to prevent informants from receiving adverse treatment based on
having provided information.

77)
System to ensure
the reliability of financial
reporting8)
Items related to
the Directors and employees
aiding the duties of the Audit& Supervisory Committee,
items related to the
independence of these
Directors and employees fromother Directors (excluding
Directors as Audit &Supervisory Committee
Members), and items related
to ensuring the effectivenessof the instructions from the
Audit & Supervisory
Committee to these Directors
and employees
9)System for the
Directors, Executive Officers
and employees to report to the
Audit & Supervisory
Committee, system for
Directors, Audit &Supervisory Board Members,
Executive Officers, andemployees of subsidiaries, andpersons receiving reports fromthem to report to the Audit &Supervisory Committee, andsystem to ensure that thesepeople conducting thereporting shall not be
subjected to adverse treatment
due to such reporting10)
Items related tothe policies on procedures forthe prepayment or
reimbursement of expenses
arising from the execution ofduties of the Audit &Supervisory Committee
Members, and the handling ofother expenses or obligations
arising from the execution ofthese duties

11)
Other systems toensure the audits of the Audit& Supervisory Committee are
implemented effectively

The Company has established the Internal Control Regulations for Financial
Reporting for the Group in accordance with the Financial Instruments andExchange Act and other related laws to ensure the reliability of the Nomura Real
Estate Group’s financial reporting. Based on the Regulations, the Company
develops and operates the internal controls related to financial reporting andevaluates their effectiveness.
The Company has established the Audit & Supervisory Committee Department toassist duties of the Audit & Supervisory Committee, and dedicated staffs assigned
to this department perform duties in accordance with the directions and orders
issued by Audit & Supervisory Committee Members. Directors shall obtain theconsent of the Audit & Supervisory Committee Members designated by the Audit& Supervisory Committee with respect to personnel matters concerning dedicatedstaff of the Audit & Supervisory Committee Department.

a.
When matters arise that may result in significant damage to theCompany or Group companies or violate laws and regulations or the Articles ofIncorporation, Directors, Executive Officers, and employees of the Company andGroup companies, and Audit & Supervisory Board Members of Group companies
shall immediately report such matters to the Audit & Supervisory Committee.
b.
The Group Internal Audit Department shall report to the Audit &Supervisory Committee the results of internal audits, the status of improvements,
and the status of evaluations of internal controls related to financial reporting.
c.
Upon a request from Audit & Supervisory Committee Members
designated by the Audit & Supervisory Committee, Directors, Executive Officers,
and employees of the Company and Group companies shall report the status ofbusiness execution at their respective companies.
d.
The chairman of the Risk Management Committee shall report thecontent of reports submitted to the Nomura Real Estate Group Help Line to the
Audit & Supervisory Committee Members designated by the Audit & Supervisory
Committee.
e.
Informants in all of the above items shall be protected against receiving
adverse treatment based on having reported information.
The Company shall bear the expenses deemed necessary for the execution of duties
by Audit & Supervisory Committee Members. The Audit & Supervisory
Committee may retain attorneys at law, certified public accountants, consultants, orother external advisors as necessary to perform audits.

a.
The Audit & Supervisory Committee shall periodically exchange
opinions with the President.
b.
Audit & Supervisory Committee Members shall attend meetings of the
Executive Committee and other important meeting bodies of the Company, togather information and express their opinions on the execution of business.
c.
Audit & Supervisory Committee Members designated by the Audit &Supervisory Committee may ask the Company and Group companies for
explanations and reports about the execution of business, and investigate the stateof business and finances when necessary.
d.
The Audit & Supervisory Committee shall closely cooperate with the
Accounting Auditor and the Group Internal Audit Department. This cooperation
shall include the periodic exchange of opinions and information concerning audits.

8

e.
The Group Internal Audit Department shall obtain the consent of the
Audit & Supervisory Committee regarding the establishment of internal audit
plans. In addition, the Audit & Supervisory Committee may provide the GroupInternal Audit Department recommendations and instructions on changes ininternal audit plans, additional audits, necessary investigations, etc., whennecessary.
f.
Directors shall consult with the Audit & Supervisory Committee inadvance with respect to appointments of responsible personnel in the GroupInternal Audit Department.
Note: Following resolutions at the Board of Directors meeting held on March 19, 2020, effective April 1, 2020, some changes
were made to the details of 3) Rules and other systems for management of risk of loss, and 6) System to ensure theappropriateness of operations in the corporate group consisting of the Company, its parent company and subsidiaries.
The changes are as follows.

3)
Rules and othersystems for management ofrisk of lossb.
To deliberate business risks, the Company has established a Risk
Management Committee comprising Directors, Executive Officers, etc. of theCompany and Group companies designated by the Board of Directors as asubordinate body to the Executive Committee, with the Executive Committee set
as the core of total risk management, to periodically monitor, assess, and analyzerisks, and deliberate basic principles for measures to prevent risks that may occur
during corporate management and business development, to respond when risksarise, and to prevent recurrence, in accordance with the Risk Management
Regulations and the Meeting Bodies Rules. In addition, the Company has
established a Group Risk Meeting comprising Directors, Executive Officers, etc. ofGroup companies designated by the chairman of the Risk Management Committee
to share risk information and response policies within the Group.
The Risk Management Committee and Group Risk Meeting shall in principle meetbimonthly or when necessary, respectively, and shall report the content ofdeliberations to the Board of Directors at least once every three months.

6)
System to ensure
the appropriateness ofoperations in the corporategroup consisting of theCompany, its parent company
and subsidiariesb.
The Executive Committee has been established in the Company todiscuss important matters related to Group management, overall Group company
business execution, and risks pertaining to Group management, and to determine
certain matters related to overall Group company business execution. In addition,
the Executive Committee ensures the common purpose of Group management
through these activities.
c.
The Risk Management Committee has been established in the
Company to discuss matters concerning disaster risks for the entire Group as wellas matters related to internal risks, and to promote the sharing of information.
d.
The Company has established the Group Organizational Management
Regulations that require Group companies to discuss with or report to theCompany in advance when determining important matters.
f.
The Company has established the Sustainability Committee andSustainability Management Department, and promotes continual education andenlightenment activities to increase CSR and ESG awareness throughout the entire
Group.

<Outline of the operational status of the system to ensure the appropriateness of operations>
The outline of the operational status of the system to ensure the appropriateness of operations in the fiscal
year under review is as follows.

1)

Compliance

The Group regards compliance, including the observance of laws and regulations
and corporate ethics, as one of the most important management issues. As a set of
relevant guidelines, the Company has formulated the Nomura Real Estate Group
Code of Action.
Moreover, the Company has established the Risk Management Committee andGroup Legal & Compliance Department in the Company to promote continual
education and enlightenment activities for the officers and employees of the entire
Group, and to provide advice, guidance and support to Group companies.
In the fiscal year under review, group compliance training for officers andemployees was held 33 times, in addition to training and awareness activities suchas e-learning for all officers and employees and the regular distribution of topics,
etc. related to compliance.

9

2)

Risk management

3)

Internal audits

4)

CSR activities

5)
Execution ofduties of the Directors

The Group regards accurately addressing all risks related to business operations
and ensuring the soundness of management as the foundation of corporate
governance, and has established the Risk Management Regulations as the basic
issues concerning risk management.
In addition, the Company has established a Risk Management Committee whose
members include Directors, Executive Officers and others in the Company andGroup companies, for the purpose of promoting risk management activities within
the Group. The Committee meets bimonthly in principle, deliberates mattersrelated to risk management, compliance, and information security for the entire
Group, and discusses countermeasures in case risks arise. The contents ofdeliberations are regularly reported to the Board of Directors. The Committee also
provides necessary guidance, advice and support to Group companies.
During the fiscal year under review, the Risk Management Committee and theGroup Risk Meeting held 12 meetings in total, and the contents of deliberations
were reported to the Board of Directors.
The Company has established the Group Internal Audit Department, which works
to oversee, monitor and evaluate the internal audit function of the entire Group, as
well as perform audits of each department within the Company. Also, results ofaudits are reported to the Board of Directors, and a system is in place to reportresults to the Audit & Supervisory Committee, aimed at collaboration with the
Accounting Auditor.
During the fiscal year under review, audit results were reported to the Board of
Directors four times, and reported to the Audit & Supervisory Committee 11 times,
thereby sharing both the problems identified through internal audits as well as
improvement measures. Furthermore, in order to increase the quality of internal
auditing operations, the relevant documents of the Audit Departments of theCompany and each Group company are read and interviews with relevant people
are done by an external third party, and the Company receives from the third party
the suggestions to increase the quality of internal auditing operations.
The Group regards finding solutions to social issues and creating new social values
through business to be its CSR.
The Group has established a CSR Committee comprising Directors and Executive
Officers of the Company (chaired by the Executive Vice President andRepresentative Director of the Company) and a CSR Promotion Committee
comprising directors, etc. of each business unit and Group companies as asubordinate organization, where policies and action plans related to CSR are
deliberated.
In the fiscal year under review, CSR Committee and CSR Promotion Committee
were held five times in total.
The Board of Directors, in principle, holds its meeting on a monthly basis, decides
important corporate matters, such as basic management policies, and supervises theexecution of duties by Directors and business operations by Executive Officers.
By inviting External Directors, the Company bolsters the oversight function of theBoard of Directors and ensures fair and highly-transparent management.
The Company has introduced an Executive Officer system aiming to strengthenGroup management by separating management oversight and decision-making
function from business execution function, both of which have traditionally been
the responsibility of Directors, to enhance the execution function. Individual
Executive Officers appointed by the Board of Directors execute business based on
the administrative authorities delegated in accordance with internal regulations,etc. and based on Company policies determined by the Board of Directors and the
directions of the Chief Executive Officer.
The Company’s Executive Committee comprises the Chief Executive Officer andExecutive Officers nominated by the Board of Directors. The Executive Committee
meets three or four times each month in principle, and determines certain mattersregarding overall Group company business execution.
During the fiscal year under review, the Board of Directors meeting was held 16
times. At these meetings, in addition to deliberating and making decisions about
important matters concerning company management, the Board of Directors
regularly received reports from Directors and Executive Officers, allowing theBoard of Directors to oversee the execution of duties and business. The Executive
Committee meeting was held 41 times, and certain matters related to businessexecution by the Company and Group companies were deliberated and decided
upon.

10

6)
Execution ofduties of the Audit &Supervisory Committee

The Audit & Supervisory Committee receives regular reports from the internal
audit department on the implementation status and results of internal audits. Whennecessary, the Audit & Supervisory Committee may request a report to Directors,
Executive Officers, or business execution departments of the Company or Group
companies. The Audit & Supervisory Committee also audits and supervises theexecution of duties by Directors and business operations by Executive Officers
while cooperating with the Accounting Auditor as needed.
Audit & Supervisory Committee Members attend Board of Directors meetings andother important meetings and request reports from business execution departments
as necessary to collect information on the Company’s execution of business
operations.
The Company has established the Audit & Supervisory Committee Department inorder to assist the duties of the Audit & Supervisory Committee and assigns
dedicated staff to implement measures for increasing the effectiveness of audit
operations.
During the fiscal year under review, the Audit & Supervisory Committee meeting
was held 13 times.

11Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets for the year ended March 31, 2020
(Millions of yen)
Shareholders’ Equity
Capital Stock

Capital Surplus

117,293

110,537528

528

Balance at April 1, 2019

Retained
Earnings
307,570

Treasury Shares

Total
Shareholders’Equity(18,787)

516,613

Changes of Items during Year
Issuance of New Shares

1,056

Dividends of Surplus(14,375)

Profit Attributable to Owners of Parent

48,886(14,375)
48,886

Purchase of Treasury Shares(8,573)(8,573)

Disposal of Treasury Shares

21

21

Net Changes of Items Other Than Shareholders’ Equity
Total Changes of Items during Year
Balance at March 31, 2020

528

528

34,510(8,551)27,016

117,822

111,065

342,081(27,339)543,630

Accumulated Other Comprehensive Income
Valuation
RemeasureTotal
Share
NonDeferred
Foreign
Difference
Revaluation
ments of Accumulated Acquisition controlling
Gains orCurrency
on AvailableReserve forDefinedOther
RightsInterests
Losses on
Translation
for-saleLand
BenefitComprehenHedges
Adjustment
Securities
Plans
sive Income
Balance at April 1, 2019

6,718

(259)

7,860

(677)

(3,507)

10,134

2,346

12,467

Total Net
Assets541,562

Changes of Items during Year
Issuance of New Shares

1,056

Dividends of Surplus
Profit Attributable to Owners of
Parent(14,375)

Purchase of Treasury Shares(8,573)

Disposal of Treasury Shares
Net Changes of Items Other Than
Shareholders’ Equity

48,88621(3,803)

1,303

(0)

(644)

(442)

(3,587)

(495)

624

(3,458)

Total Changes of Items during Year

(3,803)

1,303

(0)

(644)

(442)

(3,587)

(495)

624

23,557

Balance at March 31, 2020

2,915

1,044

7,860

(1,322)(3,950)

6,547

1,850

13,091

565,120

Note: The figures are denoted by rounding fractions down to the unit indicated.

12

Notes to Consolidated Financial Statements
1. Notes to Significant Matters for the Basis for the Preparation of Consolidated Financial Statements(1) Scope of Consolidation
1) Consolidated subsidiaries
 Number of consolidated subsidiaries:
40 Names of principal consolidated subsidiaries:
The names of principal consolidated subsidiaries arelisted in “1. Current status of the Group (3) Status ofparent company and major subsidiaries 2) Major
subsidiaries” of the Business Report.
NOMURA REAL ESTATE VIETNAM CO., LTD., NOMURA REAL ESTATE (THAILAND) CO.,LTD. and LOTHBURY GLOBAL FEEDER GP LIMITED are included in the scope of consolidation
because they were newly established in the fiscal year under review, and ZEN PLAZA CO., LTD. is
included in the scope of consolidation because the Company newly acquired its equity interests in thefiscal year under review.
Furthermore, NF Power Service Co., Ltd. is excluded from the scope of consolidation, because theCompany sold its shares in the fiscal year under review, and Shinjuku Mirai Development LLC and
NREAM Investors America, LLC are also excluded from the scope of consolidation, because bothcompanies were liquidated in the fiscal year under review.
2) Unconsolidated subsidiaries
 Name of principal unconsolidated subsidiary:
Minami Azabu Kaihatsu Co., Ltd.
 Reason for the exclusion from the scope of consolidation:
Unconsolidated subsidiaries are excluded from the scopeof consolidation because they are all small companies andthe Company’s interests in their respective total assets,
operating revenue and profit and loss (the amountequivalent to equity shareholdings) as well as retained
earnings (the amount equivalent to equity shareholdings)
do not significantly affect the consolidated financial
statements of the Nomura Real Estate Group (the“Group”).
(2) Application of Equity Method
1) Unconsolidated subsidiaries accounted for using the equity method
 Number of unconsolidated subsidiaries accounted for using the equity method: 2
 Name of principal unconsolidated subsidiary:
Minami Azabu Kaihatsu Co., Ltd.
2) Affiliated companies accounted for using the equity method
 Number of affiliated companies accounted for using the equity method: 27
 Name of principal affiliated company:
Ginza Parking Center Co., Ltd.
DRI GP Co., Ltd. and Changzhou Wanxiang Real EstateCo., Ltd. are included under affiliated companies
accounted for using the equity method, because theCompany newly acquired their equity interests in the fiscal
year under review, and NF Power Service Co., Ltd. is also
included under affiliated companies accounted for using
the equity method, because the Company sold its equity
interests so that it changed the status from a consolidated
subsidiary to an affiliated company in the fiscal year underreview.
(3) Fiscal Year, Etc. of the Consolidated Subsidiaries
Among consolidated subsidiaries, the account closing date of UNJ Properties, LLC is December 31.
Provisional financial statements for these companies as of the consolidated account closing date areused in the preparation of consolidated financial statements.
Among consolidated subsidiaries, the account closing date of Nomura Real Estate Consulting
13

(Beijing) Co., Ltd., NOMURA REAL ESTATE ASIA PTE. LTD., NOMURA REAL ESTATE HONG
KONG LIMITED, HCMC office investment Limited, LIM HOLDINGS LTD, Lothbury Investment
Management Group Limited and other 12 companies, Zen Plaza Investment Limited, ZEN PLAZA
CO., LTD., NOMURA REAL ESTATE VIETNAM CO., LTD. and NOMURA REAL ESTATE(THAILAND) CO., LTD. is December 31. The account closing date of Midosuji Mirai Development,
LLC is February 28.
Financial statements for these companies as of that date are used in the preparation of consolidated
financial statements. In the case of significant transactions that took place between the account closing
date of the consolidated subsidiaries and the consolidated account closing date, necessary adjustments
are made for consolidation purposes.
(4) Accounting Standards and Methods
1) Valuation standards and methods for principal assets
A. Securities Held-to-maturity debt securities:
Held-to-maturity debt securities are stated at amortized cost(by the straight-line method).
 Available-for-sale securities:
Available-for-sale securities with market value
Available-for-sale securities with market value are stated atfair market value based on market price, etc. at the accountclosing date. (Unrealized gains and losses are reported, netof the applicable taxes, as a separate component of Net
Assets. Cost of securities sold is determined by themoving-average method.)
Available-for-sale securities without market value
Available-for-sale securities without market value arestated at cost by the moving-average method.
B. Derivatives
C. Inventories

Derivatives are stated using the market value method.
Inventories are mainly stated at cost, determined by the
specific identification cost method (the amounts ofinventories in the Balance Sheet are determined by thewrite-down method reflecting decreased profitability).
2) Depreciation and amortization method for significant depreciable assets
A. Property, plant and equipment (except for leased assets)
Property, plant and equipment are depreciated mainly by thestraight-line method. Useful lives are generally as follows:
Buildings and structures
2 to 65 years
B. Intangible assets (except for leased assets)
Intangible assets are amortized by the straight-line method.
Costs of software for internal use are amortized based on theuseable period within the Company (5 years).
C. Leased assets
Leased assets are depreciated using the straight-line method,
assuming the lease period to be the useful life and theresidual value to be zero.
Of finance lease transactions not involving transfer ofownership, lease transactions which started on or before
March 31, 2008 are accounted for in accordance with themethod applicable to ordinary lease transactions.
3) Standards for the provision of significant allowances
A. Allowance for doubtful accounts
In order to prepare for possible bad debt losses on notes andaccounts receivable - trade, loans and others, allowance for
doubtful accounts is provided at an amount calculated on
the basis of a historical bad debt ratio for normal claims, andat an estimated uncollectible amount determined on thebasis of individual assessments of collectability for specificclaims with potential losses.
B. Provision for bonuses

To prepare for the payment of employee bonuses, anestimated amount corresponding to the portion of the bonus
14payments in the fiscal year under review is reserved.
C. Provision for directors’ bonuses

To prepare for the payment of directors’ bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.

D. Provision for loss on business liquidation
An estimated amount of losses arising in connection withthe withdrawal from businesses is reserved.
E. Provision for Stocks Payment

To prepare for the delivery of the Company’s shares to
officers and employees pursuant to the share delivery
regulation, an estimated cost as of the end of the fiscal year
under review is reserved.
4) Other significant matters for the preparation of consolidated financial statements
A. Standards for the recording of net defined benefit liability
 Method for attributing estimated retirement benefits to periods:
To calculate retirement benefit liabilities, the estimatedamount of retirement benefits is attributed to the period up
to the end of the fiscal year under review based on a benefit
formula basis.
 Method for amortization of actuarial gains and losses and prior service costs:
Prior service costs are amortized by the straight-line
method over a certain number of years (10 years) within
the average number of remaining service years of theeligible employees at the time of accrual.
Actuarial gains and losses are amortized by the straightline method over a certain number of years (mostly 10
years) within the average number of remaining service
years of the eligible employees at the time of accrual ineach fiscal year, and allocated proportionately from thefiscal year following the respective fiscal year of accrual.
B. Standards for the provision of significant revenues and expenses
 Basis for the recording of revenue and cost of completed work:
The percentage-of-completion method (percentage ofcompletion is estimated based on cost method) is applied
when the cost outcomes of the construction activities
through until the end of the fiscal year under review can bemeasured with certainty; otherwise the completed-contract
method is applied.
C. Standards for the translation of important foreign currency-based assets or liabilities into Japaneseyen
All foreign currency-based monetary receivables andpayables are translated into Japanese yen at the spot
exchange rates in effect at the consolidated account closing
date. Differences arising from such translation arerecognized as gain or loss. The asset and liability accountsof the overseas subsidiaries and others are translated into
Japanese yen at the spot exchange rates prevailing at therespective account closing dates of the subsidiaries andothers and the revenue and expense accounts are translated
into Japanese yen at the average rates of exchange for theyear. Differences arising from such translation arepresented as “Foreign currency translation adjustment” in
Net Assets.
D. Significant hedge accounting method
 Hedge accounting method:
Hedging transactions are accounted for using deferral hedge
accounting, which requires the unrealized gains or losses tobe deferred as assets or liabilities until the losses or gains on
the underlying hedged items are recognized. For interest
15

rate swaps that meet certain hedging criteria, the Groupapplies exceptional treatment and for currency swaps thatmeet certain hedging criteria, the transactions are accounted
for by the furiate (allocation) method.
 Hedging instruments and hedged items:

 Hedge policy:<Hedging instruments><Hedged items>
Interest rate swap contracts
Borrowings
Currency swaps and foreign Securities denominatedexchange forward contracts
in foreign currencies
In accordance with internal rules, interest rate fluctuationand foreign exchange fluctuation risks are hedged.

 Method for assessing the effectiveness of hedges:
The Group evaluates hedge effectiveness based on the ratioof changes determined by comparing the cumulativechanges in cash flows or cumulative market fluctuations of
the hedged items to the cumulative changes in cash flows
or cumulative market fluctuations of the hedging
instrument. However, the Group omits the assessment ofhedge effectiveness in the case of interest rate swaps forwhich the Group applies the exceptional treatment.
E. Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over a
period of 14 to 20 years.
F. Accounting for consumption taxes
The tax-exclusion method is used to account for national
and local consumption taxes. However, non-deductible
consumption taxes on assets are included in the acquisition
costs, and other non-deductible consumption taxes are
expensed as incurred.
2. Notes to Consolidated Balance Sheet(1) Pledged Assets and Secured Liabilities
Investment securities in the amount of ¥158 million are pledged as collateral for a portion of liabilities
of investee companies.
(2) Accumulated Depreciation of Property, Plant and Equipment¥184,689 million(3) Contingent Liabilities
1) Guaranteed Obligations
The following are customers for which bank loans, etc. have been guaranteed.
Customers using housing loans¥125,775 million
Joint operators of EBS buildings¥319 million
Haneda Mirai Special Purpose Company¥65 million
Total¥126,159 million
2) Additional Capital Contribution Obligations, etc.
The Company has additional capital contribution obligations, etc. to the following subsidiaries andassociates according to the capital contribution ratio with business partners in relation to loans received
from financial institutions by the companies.
The outstanding loans payable by the subsidiaries and associates are as follows, and the figures inparentheses indicate the amount based on the Company’s capital contribution ratio to the companies.

16

ORIGIN PRIME 2 COMPANY LIMITEDORIGIN PARK T1 COMPANY LIMITEDORIGIN SPHERE COMPANY LIMITEDORIGIN VERTICAL COMPANY LIMITED
Origin One Thonglor Co., Ltd.
Total

¥1,369 million(¥671 million)¥6,680 million(¥3,273 million)¥406 million(¥198 million)¥1,487 million(¥728 million)¥1,649 million(¥808 million)¥11,592 million(¥5,680 million)(4) Revaluation of Land
Under the “Act on Revaluation of Land” (Act No. 34 of March 31, 1998), the Company revalued its
land held for business use. The tax amount for the valuation difference is accounted for as “Deferred
tax liabilities for land revaluation” in Liabilities and the difference net of such tax amount is recorded
as “Revaluation reserve for land” in Net Assets.
∙ Method of revaluation:
The value of land is determined based on a reasonable adjustment to the assessed value of fixed assets
as stipulated in Item 3, Article 2 of the “Order for Enforcement of the Act on Revaluation of Land”(Cabinet order No. 119 of March 31, 1998).
∙ Date of revaluation: March 31, 2002
(5) As a result of reviewing the purpose of holding assets, ¥24,214 million was transferred from non-current
assets to real estate for sale, etc.
3. Notes to Consolidated Statement of Changes in Net Assets(1) Total Number of Shares Issued
Number of shares
as of March 31,
Type of shares2020 (Thousand
shares)Common stock
192,373502–
192,875
Note: The increase in the number of issued shares among common stock of 502 thousand shares consists ofan increase due to the exercise of stock options.
Number of shares
as of April 1, 2019
(Thousand shares)

Increase(Thousand shares)

Decrease(Thousand shares)(2) Dividends from Surplus
1) Dividends paid
(Resolution)

Type of shares

Total amount ofdividends(Millions ofyen)

Dividends
per share(Yen)

Record date

Effective
date

April 25, 2019
March 31,
Meetings of theCommon stock
6,985
37.5
June 4, 20192019
Board of Directors
October 28, 2019
September 30, December 2,
Meeting of theCommon stock
7,390
40
2019
2019
Board of Directors
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on April 25,
2019 includes ¥64 million in dividends for the Company’s shares held in the executive compensation
BIP trust.
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on October 28,
2019 includes ¥78 million in dividends for the Company’s shares held in the executive compensation
BIP trust and ESOP trust for granting stock.

172) Dividends whose record date is in the fiscal year under review but whose effective date is thereafter(Resolution)

Type ofsharesTotal amount ofdividends(Millions ofyen)

Dividend
resource

Dividends
per share(Yen)

Record date

Effectivedate

May 1, 2020
CommonRetained
March 31,
Meeting of the
7,339
40
June 9, 2020
stock
earnings
2020
Board of Directors
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on May 1, 2020
includes ¥78 million in dividends for the Company’s shares held in the executive compensation BIP
trust and ESOP trust for granting stock.

(3) Share Acquisition Rights
The number of shares subject to the share acquisition rights (those for which the exercise period has
arrived) as of March 31, 2020:
Nomura Real Estate Holdings, Inc.
The 2nd share acquisition rights in FY2013
The 3rd share acquisition rights in FY2013
The 1st share acquisition rights in FY2014
The 2nd share acquisition rights in FY2014
The 3rd share acquisition rights in FY2014
The 1st share acquisition rights in FY2015
The 2nd share acquisition rights in FY2015
The 3rd share acquisition rights in FY2015
The 5th share acquisition rights in FY2015
The 1st share acquisition rights in FY2016
The 2nd share acquisition rights in FY2016
The 3rd share acquisition rights in FY2016

Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock

15,500 shares
166,400 shares
9,900 shares
44,600 shares
151,100 shares
16,100 shares
59,200 shares
328,300 shares
22,000 shares
56,700 shares
144,900 shares
282,800 shares

4. Notes to Financial Instruments(1) Status of Financial Instruments
The Group restricts fund management to deposits and others with safe and high market liquidity,
and fund procurement is mainly treated by bank loans and bond issuance. In accordance with internal
rules, derivatives are not used for speculative purposes, but for managing exposure to financial risks as
described in detail below.
Equity investments and investment securities are principally stocks, investment units, etc., and theseare held for the promotion of businesses. The fair values of stocks and investment units are obtained at
the end of each month. Although securities denominated in foreign currencies are exposed to foreignexchange fluctuation risks, a portion are hedged through derivative transactions (currency swaps andforeign exchange forward contracts). Floating-rate loans payable are exposed to interest rate fluctuation
risks, but derivative transactions (interest rate swaps) are utilized as hedging instruments for floatingrate long-term loans payable to hedge risks of fluctuations in interests paid and fix interest expenses.
(2) Fair Values of Financial Instruments
Book values in the consolidated balance sheet, fair values, and the differences between these values
as of March 31, 2020 are as follows. Financial instruments whose fair values are deemed extremely
difficult to determine are not included in the following table. (Please refer to Note 2.)18

(Millions of yen)

(1) Cash and deposits

Book value in the
consolidated balance
sheet
78,401

Fair value

Difference

78,401–(2) Investment securities *1

34,211

34,23523

Total assets

112,612112,636

23(1) Short-term loans payable *2

22,00022,000–(2) Bonds payable *3

140,000

140,815815(3) Long-term loans payable *2

708,000

728,789

20,789Total liabilities

870,000

891,605

21,605

337

337

–

Derivative transactions *4*1. The stated amount includes Japanese government bonds that have been recorded in “Lease and guarantee
deposits.”*2. Current portion of long-term loans payable are included in “(3) Long-term loans payable.”*3. Current portion of bonds are included in “(2) Bonds payable.”*4. The value of assets and liabilities arising from derivatives is shown at net value. The figures in parenthesis
indicate net liabilities.

Notes: 1. Method of fair value measurement of financial instruments
Assets(1) Cash and deposits
Since these items are settled in a short period of time, the fair values approximate their bookvalues. Accordingly, the book values are presented as their fair values.
(2) Investment securities
The fair values of stocks, investment units, etc. are mainly based on the prices on exchanges.
Liabilities(1) Short-term loans payable
Since these items are settled in a short period of time, the fair values approximate their bookvalues. Accordingly, the book values are presented as their fair values.
(2) Bonds payable
These items are issued mainly by the Company and the fair values are based on the market prices.
(3) Long-term loans payable
The fair value of long-term loans payable is based on the method of calculation whereby the sumof principal and interest is discounted by an interest rate assumed when a new, similar loan ismade. Long-term loans payable with floating interest rates are prescribed to be subject to
exceptional treatment applicable to interest rate swaps. Hence, the fair value is based on themethod of calculation whereby the sum of principal and interest, treated in combination with thesaid interest rate swap, is discounted by a reasonably estimable interest rate assumed when asimilar loan is made.
Derivative transactions
The fair values of derivatives are based on the prices obtained from the counterparty financial
institutions.
2. Financial instruments whose fair values are deemed extremely difficult to determine(Millions of yen)Book value in the consolidated
Categorybalance sheet
Unlisted stocks, etc. *1, 2
56,995*1. Unlisted stocks, etc. are excluded from “(2) Investment securities” described above because they do
not have market prices and their fair values are deemed extremely difficult to determine.
*2. “Unlisted stocks, etc.” includes unlisted stocks, etc. recorded in “Equity Investments.”19

5. Notes to Real Estate for Rent
(1) Status of Real Estate for Rent
Some of the Company’s consolidated subsidiaries own rental office buildings and rental retailfacilities (including land) in Tokyo and other regions.
(2) Fair Values of Real Estate for Rent
(Millions of yen)Book value in the consolidatedbalance sheet

Fair value as of March 31, 2020

Real estate for rent
681,101
859,620
Properties including the
portion used as real estate for
25,86757,030rent
Notes: 1. Book values in the consolidated balance sheet are the amounts determined by deducting
accumulated depreciation from the acquisition cost.
2. Fair values as of March 31, 2020 are determined based primarily on values according to Real
Estate Appraisal Standards (including adjustments based on certain indexes). However, if nosignificant fluctuations in certain appraisal values or indexes considered to appropriatelyreflecting market values have occurred since the time of acquisition from third party or the timeof the most recent appraisal, the Group bases the fair value on an amount that has been adjusted
using the aforesaid values or indexes.
3. Some rental office buildings are regarded as properties including the portion used as real estate
for rent since they are used by the Company and certain consolidated subsidiaries.

6. Notes to Per Share Information(1) Net Assets Per Share¥3,031.15(2) Basic Earnings Per Share¥267.21
Note: The Company’s shares held in the executive compensation BIP trust and ESOP trust for granting
stock are included in the number of treasury shares deducted from the total number of shares issued
at the end of the fiscal year when calculating net assets per share. Furthermore, these are included in
the treasury shares deducted in the calculation of the average number of shares during the periodused in the calculation of basic earnings per share. For the fiscal year under review, the number ofthese treasury shares deducted in the calculation of net assets per share was 1,968 thousand shares atthe end of the period, and the average number of treasury shares during the period deducted in thecalculation of basic earnings per share was 1,937 thousand shares.
7. Notes to Significant Subsequent Events
Not applicable.
8. Other Notes
Not applicable.

20Non-Consolidated Financial Statements
Non-Consolidated Statement of Changes in Net Assets for the year ended March 31, 2020
(Millions of yen)
Shareholders’ Equity
Capital Surplus

Retained Earnings
Other Retained
Earnings

Total Retained
Earnings

Treasury Shares

Total
Shareholders’Equity64,61264,612(18,787)

280,775

Dividends of Surplus(14,375)(14,375)

Profit25,47625,476

Balance at April 1, 2019

Capital Stock

Legal Capital
Surplus

Total Capital
Surplus117,293

117,657

117,657

528

528

528

Retained
Earnings Brought
ForwardChanges of Items during Year
Issuance of New Shares

1,056(14,375)
25,476

Purchase of Treasury Shares(8,573)(8,573)

Disposal of Treasury Shares
Net Changes of Items Other
Than Shareholders’ Equity
Total Changes of Items during
Year

21

21

Balance at March 31, 2020

528

528

528

11,100

11,100(8,551)

3,605

117,822

118,185

118,185

75,71275,712(27,339)

284,381

Valuation and Translation Adjustments

Balance at April 1, 2019

Valuation
Difference on
Available-forsale Securities

Deferred Gains
or Losses on
Hedges(3)(14)

Total Valuation Share Acquisition
Total Net Assets
Rightsand Translation
Adjustments
(18)

2,346

283,103

Changes of Items during Year
Issuance of New Shares

1,056

Dividends of Surplus(14,375)

Profit25,476

Purchase of Treasury Shares(8,573)

Disposal of Treasury Shares
Net Changes of Items Other
Than Shareholders’ Equity
Total Changes of Items during
Year

21
0
0

–

0

(495)

3,110

Balance at March 31, 2020

(2)

(14)

(17)

1,850

286,214

–

0

(495)

Note: The figures are denoted by rounding fractions down to the unit indicated.

21

(494)

Notes to Non-Consolidated Financial Statements
1. Notes to Matters for the Significant Accounting Policies(1) Valuation Standards and Methods for Assets
1) Valuation standards and methods for securities
 Shares of subsidiaries and affiliated companies
Shares of subsidiaries and affiliated companies are stated atcost by the moving-average method.
 Available-for-sale securities:
Available-for-sale securities without market value
Available-for-sale securities without market value are statedat cost by the moving-average method.
2) Valuation standards and methods for derivatives, etc.
Derivatives
Derivatives are stated using the market value method.
(2) Depreciation and Amortization Method for Noncurrent Assets
1) Property, plant and equipment (except for leased assets)
Property, plant and equipment are depreciated by thestraight-line method.
2) Intangible assets (except for leased assets)
Intangible assets are amortized by the straight-line method.
Costs of software for internal use are amortized based on theuseable period within the Company (5 years).
3) Leased assets
Leased assets are depreciated using the straight-line
method, assuming the lease period to be the useful life andthe residual value to be zero.
(3) Standards for the Provision of Allowances
1) Allowance for doubtful accounts
In order to prepare for possible bad debt losses on notes
and accounts receivable - trade, loans and others,
allowance for doubtful accounts is provided at an amountcalculated on the basis of a historical bad debt ratio fornormal claims, and at an estimated uncollectible amountdetermined on the basis of individual assessments ofcollectability for specific claims with potential losses.
2) Provision for bonuses
To prepare for the payment of employee bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.
3) Provision for directors’ bonuses
To prepare for the payment of directors’ bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.
4) Provision for Stocks Payment
To prepare for the delivery of the Company’s shares to
officers and employees pursuant to the share delivery
regulation, an estimated cost as of the end of the fiscal year
under review is reserved.
(4) Other Basic Matters for the Preparation of Non-Consolidated Financial Statements
1) Accounting for deferred assets
The costs are fully charged to income when disbursed.
2) Significant hedge accounting method
 Hedge accounting method:
Hedging transactions are accounted for using deferral hedge
accounting, which requires the unrealized gains or losses tobe deferred as assets or liabilities until the losses or gains on
the underlying hedged items are recognized. For interest
rate swaps that meet certain hedging criteria, the Groupapplies exceptional treatment.
 Hedging instruments and hedged items:<Hedging instruments><Hedged items>
Interest rate swap contracts
Borrowings
22 Hedge policy:

In accordance with internal rules, interest rate fluctuation
risks are hedged.

 Method for assessing the effectiveness of hedges:
The Company evaluates hedge effectiveness based on theratio of changes determined by comparing the cumulativechanges in cash flows of the hedged items to the
cumulative changes in cash flows of the hedging
instrument. However, the Company omits the assessmentof hedge effectiveness in the case of interest rate swaps forwhich the Company applies the exceptional treatment.
3) Accounting for consumption taxes

The tax-exclusion method is used to account for national
and local consumption taxes.

2. Notes to Non-Consolidated Balance Sheet(1) Accumulated Depreciation of Property, Plant and Equipment¥141 million(2) Monetary Receivables from and Payables to Subsidiaries and Associates
1) Short-term monetary receivables¥327,168 million
2) Short-term monetary payables¥36,880 million
3. Notes to Non-Consolidated Statements of Income
Amount of business with subsidiaries and associates
Amount of operating transactions
Operating revenue
Operating expenses¥43,018 million¥194 million

4. Notes to Non-Consolidated Statements of Changes in Net Assets
The number of treasury shares
Type of shares

Number of shares
as of April 1, 2019
(Thousand shares)

Increase(Thousand shares)

Decrease(Thousand shares)

Number of shares asof March 31, 2020
(Thousand shares)

Common stock
7,821
3,555
9
11,367
Notes: 1. The above treasury shares include the treasury shares held in the trust account of the executive
compensation BIP trust and ESOP trust for granting stock.
2. The 3,555 thousand shares increase in treasury shares of common stock is due to an increase of
3,302 thousand shares from the purchase of treasury shares by resolution of the Board of
Directors, and an increase of 253 thousand shares from acquisition of the Company’s shares by
ESOP trust for granting stock.
3. The 9 thousand shares decrease in treasury shares of common stock is due to the delivery of theCompany’s shares by the executive compensation BIP trust and ESOP trust for granting stock.

5. Notes to Tax Effect Accounting
Breakdown of deferred tax assets and deferred tax liabilities by major cause
Deferred tax assets
Share-based compensation expenses
Loss on valuation of shares of subsidiaries and associates
Accrued enterprise tax
Provision for bonuses
OthersSubtotal deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities
Total deferred tax liabilities
Net deferred tax liabilities

23(Millions of yen)
425
319
71
80
44
942
(331)
611
(1)
(1)
609

6. Notes to Related Party Transactions(1) Subsidiaries, Affiliated Companies and Others
Type

Subsidiary

Name

Nomura Real
EstateDevelopment
Co., Ltd.

Voting rights
holding orheld (%)

Directly
holding 100.0

Relationship with theCompany

Management
guidance, borrowing
and lending of funds

Transaction
details

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

412,591

Short-term loans
receivable

286,720

105,000

Long-term loans
receivable fromsubsidiaries andassociates

610,000

Receipt ofinterest

11,820–Lending of
funds

–

Subsidiary

Nomura Real
Estate Urban
Net Co., Ltd.

Directly
Management guidance
holding 100.0

Deposit offunds

71,469Deposits received

11,880Subsidiary

Nomura RealDirectly
Estate Partners
Management guidance
holding 100.0
Co., Ltd.

Deposit offunds

110,544

Deposits received

16,10327,988

Short-term loans
receivable

35,743

SubsidiaryNREG
TOSHIBA
BUILDING
Co., Ltd.

–Long-term loans
receivable fromsubsidiaries andassociates

15,000

Directly
holding 95.0

Management
guidance, borrowing
and lending of funds

Lending offunds

Notes: 1. The interest rates for lending and deposit of funds are determined in a rational manner by considering
market interest rates.
2. NREG TOSHIBA BUILDING Co., Ltd. changed its company name to Nomura Real Estate Building Co.,
Ltd. as of April 1, 2020.

(2) Officers, Major Individual Shareholders and Others
Title

Name

Voting rights
holding orheld (%)

Relationship with theCompany

Transaction
details

Amount oftransaction(Millions of yen)
(Note 1)

Officer

SeiichiMiyajima

Held
0.0

Director of theCompany

Exercise ofstock options(Note 2)28––

Officer

Juntaro Kimura

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

19––

Officer

Norio Ambe

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

17––

Officer

Makoto Haga

Held
0.0

Director of theCompany

Exercise ofstock options(Note 2)

16––

Officer

Toshiaki Seki

Held
0.0

Director of theCompany

Exercise ofstock options(Note 2)

16––

Officer

MasaomiKatayama

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

14––

Officer

Takashi Kaku

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

10

–

–

Items

Fiscal year-end
balance(Millions of yen)

Notes: 1. Amount of transaction does not include consumption taxes.
2. Stock options granted by the Company pursuant to the Companies Act.

7. Notes to Per Share Information(1) Net Assets Per Share¥1,566.67(2) Basic Earnings Per Share¥139.25
Note: The Company’s shares held in the executive compensation BIP trust and ESOP trust for granting
stock are included treasury shares deducted from the total number of shares issued at the end of the
fiscal year when calculating net assets per share. Furthermore, these are included in the treasury
24

shares deducted in the calculation of the average number of shares during the period used in thecalculation of basic earnings per share. For the fiscal year under review, the number of these treasury
shares deducted in the calculation of net assets per share was 1,968 thousand shares at the end of theperiod, and the average number of treasury shares during the period deducted in the calculation ofbasic earnings per share was 1,937 thousand shares.
8. Notes to Significant Subsequent Events
Not applicable.
9. Other Notes
Not applicable.

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