Oct 27, 2020

Consolidated Financial Results
For the Six Months from April 1 to September 30, 2020
<under Japanese GAAP>
Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purpose. All statements were basedon Tanshin report prepared in accordance with the provisions set forth in accounting regulations and principals generally accepted in Japan.

Name of company listed :Nomura Real Estate Holdings, Inc.

Shares traded :TSE (First section)

Code number :

3231

URL :

http://www.nomura-re-hd.co.jp/english/

Representative :Eiji Kutsukake, President and Representative Director

Inquiries:

Kensuke Ueha,
General Manager, Corporate Communications Dept.

Email:

nrehd-ir@nomura-re.co.jp

Scheduled submitting date of quarterly securities report:

November 13, 2020

Scheduled starting date for dividend payments:

December 1, 2020

Preparation of explanatory materials for financial results :YesInformation meetings arranged related to financial results :Yes (for institutional investors and analysts, in Japanese)(Values of less than one million yen rounded down)

I.

Consolidated operating results for the Six Months from April 1, to September 30, 2020
(1) Consolidated business results(% indicates the rate of changes from previous fiscal term)

Operating revenue
First six months

Operating profit

Millions ofMillions of

yen

%
yen

Profit attributable toOrdinary profit

Millions of

%
ended

Business profit

owners of parent

Millions of%yenMillions of
%

yen

%
yen

Sep. 30, 2020

223,935(9.3)

24,187

11.5

24,64811.1

19,4298.912,030(3.5)

Sep. 30, 2019

247,015

6.8

21,684(16.7)

22,181(15.4)

17,844(17.2)

12,468(4.1)(Note) Comprehensive income: From April 1, 2020 to September 30, 2020: 10,698 million yen (down 38.8%)
From April 1, 2019 to September 30, 2019: 17,477 million yen (up 27.3%)(Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible
assets associated with corporate acquisitions

Basic earnings

Diluted earnings

per shareper shareFirst six months ended

Yen

Yen

Sep. 30, 2020

66.26

66.03

Sep. 30, 2019

67.86

67.51

(2) Consolidated financial position
Total assets

Net assets

Shareholders' equity ratio

As ofMillions of yen

Millions of yen%

Sep. 30, 2020

1,847,576

560,078

30.2

Mar. 31, 2020

1,801,273

565,120

30.5(Reference) Shareholders’ equity: As of Sep 30, 2020: 557,055 million yen
II.

As of March 31, 2020: 550,177 million yen

Dividends
Dividend per share
1st quarter-end

Fiscal year ended
Mar. 31, 2020
Fiscal year ending
Mar. 31, 2021

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

40.00

-

40.00

80.00

-

40.00

-

40.00

80.00

Fiscal year ending
Mar. 31, 2021
(Forecasts)(Note) Revision of dividend forecasts during this quarter: NoneIII. Forecasts of consolidated operating results for the fiscal year from April 1, 2020 to March 31, 2021(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating profit

Business profit

Profit attributable toOrdinary profit

owners of parent

Basicearnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

600,000(11.3)

61,000(25.5)

60,000(27.6)

49,000(32.9)

31,000(36.6)

170.68

Fiscal year
endingMar. 31,2021(Note) Revision of operating results forecasts during this quarter: None

* Notes(1) Significant changes to subsidiaries during the period (Changes in scope of consolidation of specified subsidiaries): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and restatements
1)

Changes in accounting policies due to revision of accounting standards, etc.

: None2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

Restatements: None(4)Number of shares issued (common stock)1)

Number of shares issued at end of period (including
treasury shares)

2)

3)

Treasury shares at end of period

Average number of shares outstanding during the period

As of Sep. 30

As of Mar. 31

2020

2020

192,985,701

192,875,301

11,362,313

11,367,181

From April 1 to Sep 30,

From April 1 to Sep 30,

2020

2019

181,555,926

183,741,190(Note) The number of treasury shares at end of each period includes the shares of the company owned by BIP (Board Incentive Plan) trust and
ESOP (Employee Stock Ownership Plan) trust (1,963,149 shares as of September 30, 2020 and 1,968,017 shares as of September 30, 2019).
The Company’s share owned by executive compensation BIP (Board Incentive Plan) trust and ESOP (Employee Stock Ownership Plan) trust
are included in the number of treasury shares deducted in the calculation of average number of shares outstanding during the period. (1,965,668
shares as of September 30, 2020 and 1,906,811 shares as of September 30, 2019)* This Quarterly “Consolidated Financial Results” is not required to be audited by certified public accountants or audit corporations.
* Proper use of forecasts of operating results, and other special matters
Forward-looking statements in this document, including the forecasts of financial results, etc., are based on the information currently
available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges torealize such statements. Actual performance and other results may differ materially from these forecasts are due to various factors. For mattersrelated to the forecasts of financial results, please refer to “1. Business Results and Financial Position (3) Consolidated Operating Result
Forecasts” on page 6 of the Attachments.
(How to obtain the fact sheets)
The fact sheets will be disclosed on TDnet on October 27, 2020 and will be uploaded on the Company's website.

Attachments- Contents
1. Business Results and Financial Position ..................................................................................................................................................................

2(1) Business Results ............................................................................................................................................................................................

2(2) Financial Position ..........................................................................................................................................................................................

6(3) Consolidated Operating Result Forecasts...................................................................................................................................................

6

2. Quarterly Consolidated Financial Statements .........................................................................................................................................................

7(1) Quarterly Consolidated Balance Sheets .....................................................................................................................................................

7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income.....................

9

Quarterly Consolidated Statements of Income for the First Six Months from April 1 to September 30, 2020..................................

9

Quarterly Consolidated Statements of Comprehensive Income for the First Six Months from April 1 to September 30, 2020..

10(3) Quarterly Consolidated Statement of Cash Flows ....................................................................................................................................

11(4) Notes to Quarterly Consolidated Financial Statements ............................................................................................................................

13(Notes to Going Concern Assumptions) ....................................................................................................................................................

13(Notes to Significant Changes in Shareholder’s Equity) ..........................................................................................................................

13(Segment Information) ................................................................................................................................................................................

131

1. Business Results and Financial Position(1) Business Results
The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the six months ended September 30,
2020: Operating revenue of 223,935 million yen, which represents a decrease of 23,079 million yen, or 9.3% year on year; operating profit of
24,187 million yen, an increase of 2,503 million yen, or 11.5%; business profit of 24,648 million yen, an increase of 2,466 million yen, or
11.1%; ordinary profit of 19,429 million yen, an increase of 1,584 million yen, or 8.9%; and profit attributable to owners of parent of 12,030
million yen, a decrease of 438 million yen, or 3.5%.
(Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible
assets associated with corporate acquisitions
An overview of business unit achievements is given below:(Note) 1. Operating revenue for each business unit includes internal sales and transfer amount among business units.
2. Total figures may not match due to the rounding of fractions.
3. From the first quarter, reportable segment, etc has been changed as follows. As of October 1, 2020, Geo Akamatsu Co.,
Ltd. changed the corporate name to Nomura Real Estate Retail Properties Co., Ltd.
(Changes in reportable segment, etc)
The overseas condominium development and sales business, which had been classified under the Residential Development Business Unit in
Nomura Real Estate Development Co., Ltd. and the overseas office and other properties development and leasing business, and ZEN PLAZA
CO., LTD., which had been classified under the Commercial Real Estate Business Unit in Nomura Real Estate Development Co., Ltd., havebeen reclassified under the Other.
As of April 1, 2020, the company acquired all shares of NREG TOSHIBA BUILDING Co., Ltd. held by non-controlling shareholders. In
addition, NREG TOSHIBA BUILDING FACILITIES Co., Ltd., which had been a wholly owned subsidiary of it and had been classified under
the Commercial Real Estate Business Unit, has been merged with Nomura Real Estate Partners Co., Ltd. which has been classified under theProperty & Facility Management Business Unit. The merger has been carried out with NREG TOSHIBA BUILDING FACILITIES Co., Ltd.
being the absorbed company and Nomura Real Estate Partners Co., Ltd. being the surviving company. As of the same date, NREG TOSHIBABUILDING Co., Ltd., changed the corporate name to Nomura Real Estate Building Co., Ltd.
In line with this change, the financial results of the first six months ended September 30, 2019 and the fiscal year ended March 31, 2020 are
based on the changed classification in the above and the new classification of business unit after the merger.
<Residential Development Business Unit>
Operating revenue in this business unit totaled 83,908 million yen, which represents an increase of 19,781 million yen, or 30.8% year on year,
and business profit totaled 1,764 million yen (business loss of the first six months ended September 30, 2019 was 4,992 million yen) resulting
in increases in both operating revenue and business profit compared with the financial results of the six months ended September 30, 2019.
This was mainly due to an increase in the average price of housing units sold and an improvement of the gross profit margin ratio in the
housing sales business.
In regard to housing sales, 994 units were recorded as sales (a decrease of 3 units year on year) against the planned 3,700 units for this fiscal
year. The contract progress rate was 86.6% at the end of this second quarter against the projected operating revenue of housing sales for thisfiscal year.
The number of housing contracted but not recorded as sales were 3,328 units as of the end of this second quarter (a decrease of 947 units
year on year).
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on the business’s share.

2

Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2019

Sep. 30, 2020

Mar. 31, 2020

Operating revenue
Housing units sold(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)

Tokyo metropolitan area

760 units

43,415902 units

69,5503,448 units

225,349

Kansai area

206 units

10,43457 units

3,440

690 units

36,149Other

30 units

1,163

34 units

1,874

600 units

32,878Subtotal

997 units

55,012994 units

74,864

4,739 units

294,376(Detached housing)(172 units)(11,443)(81 units)(4,742)(470 units)(30,780)

Rental housing (Note)

-

3,264

-

436

-

19,001

Senior / Other

-

5,850

-

8,607

-

20,588-64,127-

83,908-333,966

Housing
sales

Total

(Note) Rental Housing refers to properties developed for real estate investment market.
Housing sales period-end completed housing inventory (released for sale)
As of Sep. 30, 2019

As of Sep. 30, 2020

As of Mar. 31, 2020

Tokyo metropolitan area

94 units

217 units

261 units

Kansai area

8 units

39 units

5 unitsOther

0 unit50 units

55 units

Total

103 units

306 units

321 units(Detached housing)(28 units)(13 units)(22 units)

Housing sales period-end completed housing inventory (unreleased)
As of Sep. 30, 2019

As of Sep. 30, 2020

As of Mar. 31, 2020

Total

32 units

224 units

187 units(Detached housing)(6 units)(7 units)(3 units)

Housing sales contracted but not recorded as housing sales
As of Sep. 30, 2019

As of Sep. 30, 2020

Outstanding
Housing units

contract amount

As of Sep. 31, 2020

Outstanding
Housing units(Millions of yen)contract amount

Outstanding
Housing units(Millions of yen)contract amount(Millions of yen)

Tokyo metropolitan area

3,103 units

217,883

2,542 units

184,3122,067 units

154,938

Kansai area

582 units

31,717297 units

16,094248 units

14,097

Other

589 units

33,451488 units

26,507295 units

17,039Total

4,275 units

283,053

3,328 units

226,9142,611 units

186,075(Detached housing)(89 units)(6,319)(203 units)(12,124)(60 units)(3,604)<Commercial Real Estate Business Unit >Operating revenue in this business unit totaled 80,402 million yen, which represents a decrease of 39,340 million yen, or 32.9% year on
year, and business profit totaled 15,295 million yen, a decrease of 3,525 million yen, or 18.7%, resulting in decreases in both operating
revenue and business profit compared with the financial results of the first six months ended September 30, 2019.
This was mainly due to a decrease in revenues of property sales, as well as the COVID-19 impact including the temporary closure of thefitness clubs, a decrease in leasing revenue in leasing (retail facilities) business and a decline in occupancy rate in hotel business.

3

Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2019

Sep. 30, 2020

Mar. 31, 2020

(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

24,442

23,64848,562

Leasing (retail facilities)

6,359

5,045

12,910

Leasing (other)

4,132

2,979

8,375

62,72935,965

106,816

3,712

5,948

7,037

Fitness

8,526

4,656

15,757

Other

9,839

2,157

12,674

119,742

80,402

212,133

Property for sales(sale) (Note)
Property for sales(leasing) (Note)

Total(Note) Property for sales refers to properties such as office building, retail facility and logistic facility developed for real estate investment
market.
Net lettable area
As of Sep. 30, 2019

As of Sep. 30, 2020

As of Mar. 31, 2020

Offices782,261 m2

772,089 m2

768,310 m2

Retail facilities

172,153 m2

122,068 m2

145,136 m2

954,414 m2

894,157 m2

913,446 m2

Total
Vacancy rate (offices and retail facilities)
As of Sep. 30, 2019

As of Sep. 30, 2020
4.3%

As of Mar. 31, 2020
4.6%

4.0%

<Investment Management Business Unit>
Operating revenue in this business unit totaled 6,295 million yen, which represents an increase of 341 million yen, or 5.7% year on year,
and business profit totaled 3,861 million yen, an increase of 400 million yen, or 11.6%, resulting in increases in both operating revenue andbusiness profit compared with the financial results of the first six months ended September 30, 2019.
This was mainly due to an increase in a domestic asset manager’s assets under management.
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2019

Sep. 30, 2020

Mar. 31, 2020

(Millions of yen)

(Millions of yen)

(Millions of yen)

Operating revenue

6,295

5,953

12,059Assets under management

REITs

As of Sep. 30, 2019

As of Sep. 30, 2020

As of Mar. 31, 2020

(Millions of yen)

(Millions of yen)

(Millions of yen)

1,295,255

1,376,092

1,367,758

115,965

135,047

130,211

Overseas asset manager

291,589

263,553

300,614

Total

1,702,811

1,774,693

1,798,583

Domestic asset

Privatemanagerfunds,
etc.

4

<Property Brokerage & CRE Business Unit>
Operating revenue in this business unit totaled 17,693 million yen, which represents a decrease of 575 million yen, or 3.1% year on year,
and business profit totaled 3,145 million yen, a decrease of 198 million yen, or 5.9%, resulting in decreases in both operating revenue andbusiness profit compared with the financial results of the first six months ended September 30, 2019.
This was mainly due to a decrease in brokerage commission fee resulting from decreases in the number of transactions and total transaction
value of retail business in property brokerage.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2019

Sep. 30, 2020

Mar. 31, 2020

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

17,036

15,87035,156(retail business)(11,927)(10,556)(24,017)(wholesale business)(5,109)(5,314)(11,138)

Other

1,232

1,823

3,954

18,26917,693

39,110

Total
Number of transactions and transaction value of property brokerageFirst six months ended

First six months ended

Fiscal year ended

Sep. 30, 2019

Sep. 30, 2020

Mar. 31, 2020

Number of transactions
Total transaction value (Millions of yen)

4,817

4,281

9,515

412,921431,801

872,337<Property & Facility Management Business Unit>
Operating revenue in this business unit totaled 43,265 million yen, which represents a decrease of 4,601 million yen, or 9.6% year on year,
and business profit totaled 3,197 million yen, a decrease of 1,073 million yen, or 25.1%, resulting in decreases in both operating revenue andbusiness profit compared with the financial results of the first six months ended September 30, 2019.
This was mainly due to the decline of the number of construction ordered.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2019

Sep. 30, 2020

Mar. 31, 2020

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

27,47728,07655,530Construction ordered

17,583

12,35937,327

Other
Total

2,805

2,828

5,417

47,86643,26598,274

Number of properties under management
As of Sep. 30, 2019
Buildings under management
Housings under management (unit)

As of Sep. 30, 2020

As of Mar. 31, 2020

790

794

786

177,332

181,788

182,259<Other>Operating revenue totaled 592 million yen which represents an increase of 216 million yen, or 57.5% year on year, and business loss totaled
665 million yen (business loss of the first six months ended September 30, 2019 was 710 million yen).

5(2) Financial Position
As of Mar. 31, 2020

As of Sep. 30, 2020

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Changes

Total assets

1,801,273

1,847,576

46,302

2.6%

Total liabilities

1,236,153

1,287,497

51,344

4.2%

Net assets

565,120560,078(5,041)(0.9%)

Shareholders' equity ratio

30.5%

30.2%

-

-

Total assets were 1,847,576 million yen, which represents an increase of 46,302 million yen compared to the end of the previous fiscal
year. This was mainly because inventories increased by 88,752 million yen, while cash and deposits decreased by 32,410 million yen andadvance payments - trade which is included in other in current assets decreased by 11,112 million yen.
Total liabilities were 1,287,497 million yen, which represents an increase of 51,344 million yen compared to the end of the previous fiscal
year. This was mainly because interest-bearing debt increased by 155,500 million yen, while notes and accounts payable - trade decreased by
66,915 million yen, deposits received decreased by 23,803 million yen and income taxes payable decreased by 11,397 million yen.
Net assets were 560,078 million yen, which represents a decrease of 5,041 million yen compared to the end of the previous fiscal year. Thiswas mainly because non-controlling interests decreased by 11,616 million yen, while retained earnings increased by 4,691 million yen andcapital surplus increased by 3,251 million yen.
The shareholders' equity ratio was 30.2%, a decrease of 0.4 percentage point from the end of the previous fiscal year.
(Cash Flows)
Cash and cash equivalents as of the end of this second quarter totaled 45,149 million yen, which represents a decrease of 32,462 million
yen compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by152,598 million yen (a year-on-year decrease of 97,784 million yen). Thiswas mainly due to an increase in inventories and a decrease in trade payables.
Net cash provided by (used in) investing activities increased by 19,274 million yen (a year-on-year decrease of 16,111 million yen). Thiswas mainly due to the purchase of property, plant and equipment and intangible assets.
Net cash provided by (used in) financing activities increased by 139,523 million yen (a year-on-year increase of 145,454 million yen). Thiswas mainly due to the fund procurement by long-term borrowings and issuance of bonds payable.
(3) Consolidated Operating Result Forecasts
No change in the consolidated operating result forecast which was announced on July 29, 2020.

6

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits

78,40145,990Notes and accounts receivable - trade25,35917,193

Real estate for sale

234,973

273,859

Real estate for sale in process

298,787

317,371

Land held for development

180,358

211,854

Equity investments

30,98329,682

Other

57,882

49,624(20)(20)

906,726

945,557

Buildings and structures, net

206,958

219,639Land

526,809524,400

Other, net

22,553

21,389Total property, plant and equipment

756,321765,429

20,223

18,258Investment securities

58,95258,360

Leasehold and guarantee deposits

27,99927,771

Deferred tax assets

22,69623,875

Other

8,354

8,324

(0)

(0)

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

118,003

118,331894,547

902,018

1,801,273

1,847,576

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade94,19727,282

Short-term borrowings

72,00067,000Commercial papers－

20,000Current portion of bonds payable

20,00020,000

Income taxes payable

19,476

8,079

Deposits received

35,564

11,760

Provision for bonuses

8,410

8,399

Provision for bonuses for directors (and other officers)

473

242

Provision for loss on business liquidation

19

16

Other

51,92749,870Total current liabilities

302,068

212,651

Bonds payable

120,000

150,000

Long-term borrowings

658,000

768,500

Leasehold and guarantee deposits received

62,392

63,069Deferred tax liabilities

61,38961,185

Deferred tax liabilities for land revaluation

3,900

3,900

Non-current liabilities

Provision for share-based remuneration

1,541

1,926

Retirement benefit liability

18,70518,184

Other

8,157

8,081

Total non-current liabilities

934,084

1,074,846

1,236,153

1,287,497

Share capital

117,822

117,927

Capital surplus

111,065

114,317

Total liabilities
Net assets
Shareholders' equity

Retained earnings

342,081346,772

Treasury shares(27,339)(27,328)

Total shareholders' equity

543,630

551,688

Valuation difference on available-for-sale securities

2,915

2,534

Deferred gains or losses on hedges

1,044

409

Revaluation reserve for land

7,860

7,860

Foreign currency translation adjustment(1,322)(1,834)Remeasurements of defined benefit plans(3,950)(3,602)

Total accumulated other comprehensive income

6,547

5,367

Share acquisition rights

1,850

1,547

Non-controlling interests

13,091

1,474

Total net assets

565,120560,078

1,801,273

1,847,576

Accumulated other comprehensive income

Total liabilities and net assets8(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income for the First Six Months from April 1 to September 30, 2020)(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Operating revenue

247,015

223,935

Operating costs

175,324

150,272

Operating gross profit

71,69073,663

Selling, general and administrative expenses

50,00649,475

Operating profit

21,68424,187

Interest income

23

46

Dividend income

39

28

193

148

Gain on sales of non-current assets－

100

Adjustment income for cancellation

398－

Gain on sales of investment securities

102

－

Other

172

329

Total non-operating income

929

654

Interest expenses

4,320

4,562

Other

449

849

Non-operating income

Share of profit of entities accounted for using equity
methodNon-operating expenses

Total non-operating expenses

4,769

5,412

17,844

19,429Subsidies for employment adjustment－

513

Gain on sales of non-current assets

393－

Total extraordinary income

393

513

－

1,715

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on COVID-19

－

1,715

Profit before income taxes

Total extraordinary losses

18,23818,226

Income taxes - current

6,995

7,134

Income taxes - deferred(1,598)(907)

Total income taxes

5,396

6,226

Profit12,842

12,000373(30)

12,46812,030

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

9

(Quarterly Consolidated Statements of Comprehensive Income for the First Six Months from April 1 to September 30, 2020)(Millions of yen)

ProfitSix months ended

Six months ended

September 30, 2019

September 30, 2020

12,842

12,000

Valuation difference on available-for-sale securities

4,771

(382)

Deferred gains or losses on hedges

188

(635)

Revaluation reserve for land

(0)

(0)

Foreign currency translation adjustment

(356)

(551)

Remeasurements of defined benefit plans, net of tax

112

348

(80)

(80)

4,635

(1,301)

17,477

10,69817,152

10,850

325(151)

Other comprehensive income

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests10

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Cash flows from operating activities
Profit before income taxes

18,23818,226

Depreciation

9,776

9,966

(193)

(148)

(2)

(0)

(3)

(3)

(8)

－

Interest and dividend income

(216)
(62)

(519)
(75)

Interest expenses

4,320

4,562

Share of loss (profit) of entities accounted for using equity
methodIncrease (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on businessliquidation
Increase (decrease) in provision for loss on subleasing
business
Increase (decrease) in retirement benefit liability

Decrease (increase) in trade receivables

3,602

8,133

(27,422)(3,613)(26,134)(15,447)(2,433)(39,599)(88,752)(130,098)

301

212

(3,799)(11,716)(54,814)(3,785)(18,927)(152,598)

(399)

(834)

834

71

(3,494)

－

(85)

－

(8,429)(37,233)

7,819

18,060

(985)

(677)

765

1,115

Repayments of lease and guarantee deposits received(1,371)(2,874)

Proceeds from lease and guarantee deposits received

2,043

3,001

Other, net

138

95

(3,163)(19,274)

Net increase (decrease) in short-term borrowings

14,000

3,000

Repayments of finance lease obligations

(118)

(154)

－

20,000Decrease (increase) in inventories
Decrease (increase) in equity investments
Increase (decrease) in trade payables
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

1,300(66,872)(23,802)
7,887

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales and liquidation of investment
securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits

Net cash provided by (used in) investing activities
Cash flows from financing activities

Net increase (decrease) in commercial papers

11Proceeds from long-term borrowings

4,000

126,500

Repayments of long-term borrowings(12,500)(24,000)

Proceeds from issuance of shares

146

14

Proceeds from issuance of bonds－

39,801

Redemption of bonds－(10,000)

Proceeds from sales of treasury shares

22

10(4,445)(6,985)(49)(7,339)(82)－(8,226)
139,523

Net increase (decrease) in cash and cash equivalents(5,930)(76)(63,985)(112)(32,462)

Cash and cash equivalents at beginning of period

118,330

77,611

Cash and cash equivalents at end of period

54,34445,149Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests－

Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents12(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment Information)【Segment information】
I First six months from April 1 to September 30, 2019
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Commercial

Other

Facility(Note) 1

Adjustments
Total

Brokerage
Development Real Estate

Property &Investment
Subtotal(Note) 2

Management& CRE

Management

consolidated
financialstatements(Note) 3

Operating revenue
External

63,756

117,472

5,953

18,00741,449

246,639376

247,015－

247,015

371

2,269

0

261

6,417

9,320

0

9,320

(9,320)－64,127

119,742

5,953

18,26947,866

255,959376

256,335(9,320)247,015(4,986)

18,652

3,308

3,343

4,225

24,543(848)

23,695(2,010)21,684

(5)

32

－

－

30

56

137

193

－

193

－

136

151

－

14

303

－

303

－

303

(4,992)

18,821

3,460

3,343

4,270

24,903(710)

24,192(2,010)22,181

customers
Internal sales andtransfer amountamong segments
Subtotal
Operating profit(Note) 3
Share of profit (loss)of entities accounted
for using equity
method (Note) 3
Amortization of
intangible assets
associated withcorporate acquisitions(Note) 3
Segment profit or loss
(Business profit orloss) (Note) 3(Notes)1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 2,010 million yen shown in the adjustments column for segment profit or loss (Business profit or loss) includes
an increase in elimination of intersegment transactions of 1,109 million yen and a deduction of 3,120 million yen for corporate
expenses not allocated to each reportable segment. These corporate expenses mainly consist of general and administrative
expenses not attributable to reportable segments.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity
method + amortization of intangible assets associated with corporate acquisitions

2. Information regarding impairment loss on non-current assets or goodwill by reportable segment
Not applicable13

Ⅱ First six months from April 1 to September 30, 2020
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Commercial

Adjustments
Total

Brokerage
Development Real Estate

Other

Property &Investment
Facility

Subtotal(Note) 1(Note) 2

Management& CRE

Management

consolidated
financialstatements(Note) 3

Operating revenue
External

83,576

79,522

6,295

16,70437,245

223,343592

223,935－

223,935

332

880

－

989

6,020

8,222

0

8,222

(8,222)－

83,90880,402

6,295

17,69343,265

231,565592

232,158(8,222)

223,935

1,777

15,101

3,716

3,145

3,119

26,860(721)

26,138(1,951)

24,187

(12)

57

－

－

63

107

41

148

－

148

－

136

145

－

14

296

15

311

－

311

1,764

15,295

3,861

3,145

3,197

27,264(665)

26,599(1,951)

24,648customers
Internal sales andtransfer amountamong segments
Subtotal
Operating profit(Note) 3
Share of profit (loss)of entities accounted
for using equity
method (Note) 3
Amortization of
intangible assets
associated withcorporate acquisitions(Note) 3
Segment profit or loss
(Business profit orloss) (Note) 3(Notes)1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 1,951 million yen shown in the adjustments column for segment profit or loss (Business profit or loss) includes
an increase in elimination of intersegment transactions of 1,259 million yen and a deduction of 3,210 million yen for corporate
expenses not allocated to each reportable segment. These corporate expenses mainly consist of general and administrative
expenses not attributable to reportable segments.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity
method + amortization of intangible assets associated with corporate acquisitions

2. Notes relating to changes in reportable segments etc.
From this first quarter, in accordance with the review of the organizational structure, as of April 1, 2020, NREG TOSHIBABUILDING FACILITIES Co., Ltd., which had been classified under the Commercial Real Estate Business Unit, had been anabsorbed company in an absorption-type merger with Nomura Real Estate Partners Co., Ltd. being the surviving company,
which is the company’s consolidated subsidiary and has been classified under the Property Management & Facility Business
Unit.
The overseas condominium development and sales business, which had been classified under the Residential Development
Business Unit in Nomura Real Estate Development Co., Ltd. and the overseas offices and other properties development andleasing business, and ZEN PLAZA CO., LTD., which had been classified under the Commercial Real Estate Business Unit in
Nomura Real Estate Development Co., Ltd., have been reclassified under the Other.
In line with this change, the segment information disclosed for the first six months ended September 30, 2019 is based on
the changed classification.
3. Information regarding impairment loss on non-current assets or goodwill by reportable segment
Not applicable14