October 30, 2014

Outline of Consolidated Financial Statements
For the Six Months from April 1 to September 30, 2014
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 :Kamezo Nakai, President

IR contact :Daisuke Kitai, General Manager of Corporate Communications& Investor Relations Dept.
info@nomura-re-hd.com

Scheduled submitting date of quarterly securities report:

November 14, 2014

Scheduled starting date for dividend payments :December 1, 2014

Preparation of explanatory materials for financial results :YesInformation meetings arranged related to financial results :Yes (for institutional investors and analysts, in Japanese)

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.
(Values of less than one million yen rounded off.)I.

Consolidated Operating Results for the Six Months from April 1 to September 30, 2014
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue
First six months

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2014

243,074(3.5)

29,208(19.9)

24,718(20.6)

11,684(33.4)FY2013251,944

13.2

36,45717.9

31,121

23.2

17,55332.2(Note) Comprehensive income:From April 1 to September 30, 2014 ¥16,354 million (down 2.5%)
From April 1 to September 30, 2013 ¥16,772 million (10.9%)

Net income
per share

Net income per share after
adjusting for dilution

First six months

yen

yen

FY2014

61.20

60.99

FY2013

92.05

91.74

(2) Consolidated financial status
Total assets

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Sep. 30, 2014

1,343,489

431,687

27.3

Mar. 31, 2014

1,313,887

418,697

27.1(Reference) Shareholders’ equity:

At September 30, 2014 ¥367,429 million

1

At March 31, 2014 ¥355,680 million

II. Dividends
Dividend per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

yen

yen

yen

yen

FY2013

―

15.00

―

20.00

35.00

FY2014

―

20.00
―

20.00

40.00

FY2014(Forecast)(Note) Revision of dividend forecasts during this quarter: NoneIII. Forecasts of Consolidated Operating Results for the Fiscal Year from April 1, 2014 to March 31, 2015(% indicates the rate of changes from previous fiscal year or term)

Operating revenue

FY2014

Operating income

Ordinary income

Net income pershare

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

560,000

5.3

65,000(12.5)

55,000(14.1)

29,0008.0

151.87(Note) Revision of operating result 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, accounting estimates, and restatements
1)

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

: Yes

2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

Restatements: None(Note) Please refer to the Appendix P.8 “2. Summary Information (Notes), (2) Changes in Accounting Policies, Accounting
Estimates, and Restatements” for more details.
(4) Number of shares issued (common stock)1)

Number of shares outstanding (including treasury shares)

2)

Treasury shares

3)

Average number of shares during the term

At September 30

At March 31

2014

2014

190,981,700

190,906,800

1,206

1,206

From April 1 toFrom April 1 to

September 30

September 30

2014

2013

190,926,251

2

190,708,657

* Implementation status of quarterly auditing procedure
The financial summary and the accompanying materials including the consolidated financial statements are not subject to the quarterly
review procedure by external auditors that are based on Financial Instruments and Exchange Act. The quarterly review procedure has not
yet finished at the point of releasing this financial summary.
* Use of earnings forecasts and other special remarks(Forward-looking statements)
Certain statements other than historical facts in this document are forward-looking statements that reflect the company’s plans andestimates based on currently available information. Therefore, the Company has no intention to promise the accomplishment of theforecasts. These statements include known and unknown risks, uncertainties, and other factors that may cause the company’s actual future
performance to differ from the forward-looking statements contained herewith. For the consolidated operating result forecasts, refer to the
Appendix P.7 “1. Qualitative Information (3) Consolidated Operating Result Forecasts.”(How to obtain fact sheets)
The fact sheets will be disclosed on TDnet on October 30, 2014 and will be uploaded on the Company's website.

3Appendix - Contents
1. Qualitative Information .................................................................................................................................................................................

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

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

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

7

2. Summary Information (Notes) ....................................................................................................................................................................

8(1) Transfer of Important Subsidiaries during the Current Cumulative Second Quarter .............................................................

8(2) Changes in Accounting Policies, Accounting Estimates, and Restatements ...........................................................................

8

3. Quarterly Consolidated Financial Statements ............................................................................................................................................

9(1) Quarterly Consolidated Balance Sheets ........................................................................................................................................

9(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income........

11

Quarterly Consolidated Statements of Income
Six Months from April 1 to September 30, 2014 ....................................................................................................................

11

Quarterly Consolidated Statements of Comprehensive Income
Six Months from April 1 to September 30, 2014 ...................................................................................................................

12(3) Quarterly Consolidated Statement of Cash Flows ......................................................................................................................

13(4) Notes to Quarterly Consolidated Financial Statements ..............................................................................................................

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

15(Notes to Significant Changes in Shareholders’ Equity) ............................................................................................................

15(Segment Information) ....................................................................................................................................................................

15(Significant Subsequent Events) ....................................................................................................................................................

161

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group posted the following consolidated performance for the current second quarter: Operating revenue of
243,074 million yen, which represents a decrease of 8,870 million yen, or 3.5% from the previous second quarter; operating income of
29,208 million yen, a decrease of 7,249 million yen, or 19.9 %; ordinary income of 24,718 million yen, a decrease of 6,402 million yen,or 20.6 %; and net income of 11,684 million yen, a decrease of 5,869 million yen, or 33.4%.
An overview of segment achievements is given below.
Operating revenue for each segment includes internal sales and transfer amount among segments. Due to the rounding of fractions,
total figures may not match.
From the current second quarter, a partial revision in the method of allocating costs to each segment of the Company has been
incorporated to enhance the management of each segment. The house leasing business has also been transferred from the Residential
Development Business Segment to the Leasing Business Segment to facilitate comprehensive strategic judgment regarding theCompany’s leasing asset portfolio.
The results of the previous second quarter and previous consolidated fiscal year were calculated in line with the newly adopted methodof cost allocation and segment classification.
<Residential Development Business Segment>
Operating revenue in this segment totaled 141,725 million yen, which represents a decrease of 2,667 million yen, or 1.8 % from theprevious second quarter, and operating income was 11,141 million yen, a decrease of 3,144 million yen, or 22.0 %. This was due mainly
to the fact that sales prices and profitability have decreased while the number of housing units sold has increased compared with theprevious second quarter in housing sales sector.
Housing sales have remained strong, and we posted the sale of 2,927 units (an increase of 187 units from the previous second quarter),including PROUD Omiya (Omiya-ku, Saitama-shi, Saitama), PROUD TOWER Shirokanedai (Mianto-ku, Tokyo), OHANA Kitatoda
Gardenia (Toda-shi, Saitama), PROUD Senriyamada Front (Suita-shi, Osaka) for condominiums, and PROUD SEASON Eda-Minami(Tsuduki-ku, Yokohama-shi, Kanagawa) for detached houses. The number of contracted unrecorded housing units as of the end of thecurrent second quarter totaled 6,100 units (a decrease of 953 units over the end of the previous second quarter).
Number of units, sales, and outstanding contract amount sold for the joint-venture are calculated based on the Group’s allotments.
Breakdown of operating revenue
FY2013 2Q

Housing

Tokyo

sales

metropolitan area

FY2014 2Q

FY2013

Number ofOperating revenue

Number ofOperating revenue

Number ofOperating revenue

housing units sold(Millions of yen)housing units sold(Millions of yen)housing units sold(Millions of yen)

2,234 units

119,518

2,401 units

116,518

4,723 units

236,853

Kansai area

345 units

12,634242 units

9,267

930 units

35,143Other

160 units

6,580

283 units

11,683555 units

23,9252,740 units

138,732

2,927 units

137,469

6,209 units

295,923(266 units)(14,529)(323 units)(17,291)(718 units)(37,748)

Subtotal(Of which, numberof detached housing)

Other
Total

5,660

4,256

11,702

144,393

141,725

307,6252

Housing sales Period-end completed housing inventories
As of September 30, 2013

As of September 30, 2014

As of March 31, 2014

Tokyo metropolitan area

41 units

172 units

31 units

Kansai area

1 unit

-

-

Other

-

-

-

Total

42 units

172 units

31 units(Of which, number of detached housing)(4 units)(6 units)(5 units)

Housing sales Contracted unrecorded housing units
As of September 30, 2013

As of September 30, 2014

Outstanding
Number of
housing units

As of March 31, 2014

Outstanding

contract amount

Number of
housing units(Millions of yen)contract amount

Outstanding
Number of
housing units(Millions of yen)contract amount(Millions of yen)

Tokyo metropolitan area

5,376 units

277,975

4,886 units

269,979

4,995 units

270,318

Kansai area

1,080 units

39,873803 units

29,075697 units

25,429Other

597 units

25,767410 units

18,109495 units

20,896

Total

7,053 units

343,616

6,100 units

317,164

6,189 units

316,643(Of which, number of detached housing)(268 units)(13,831)(125 units)(8,216)(185 units)(9,431)<Leasing Business Segment >Oerating revenue in this segment totaled 48,018 million yen, which represents a decrease of 1,576 million yen, or 3.2% from theprevious second quarter, and operating income totaled 13,122 million yen, a decrease of 1,002 million yen, or 7.1%. This was due mainly
to a decrease in the sale of properties in property development sector, and a partial moving of a tenant from the Hamamatsucho Building(Mianto-ku, Tokyo) to the LAZONA Kawasaki Toshiba Building (Saiwai-ku, Kawasaki-shi, Kanagawa), which started operation in thethird quarter of the previous fiscal year in the leasing sector.
In leasing business sector, NREG Kawasaki Logistics Center (Kawasaki-ku, Kawasaki-shi, Kanagawa) which completed in theprevious fiscal year contributed to income. In property development sector, we posted the sale of PMO Kanda-Tsukasamachi(Chiyoda-ku, Tokyo).
Breakdown of operating revenue
FY2013 2Q

FY2014 2Q

FY2013(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

23,482

23,302

48,131

Leasing (retail facilities)

5,161

5,287

10,544

Leasing (other)

2,566

2,770

5,151

Property development

11,761

8,890

25,608

Other

6,623

7,766

10,42949,59448,01899,866

Total
Rentable floor area

As of September 30, 2013

As of September 30, 2014

As of March 31, 2014

Offices

740,138 ㎡

781,752 ㎡

748,596 ㎡

Retail facilities

106,799 ㎡

106,601 ㎡

106,601 ㎡

846,936 ㎡

888,353 ㎡

855,197 ㎡

Total

3

Vacancy rate (offices and retail facilities)
As of September 30, 2013

As of September 30, 2014
3.0%

As of March 31, 2014
6.3%

2.9%

<Investment Management Business Segment>
Operating revenue in this segment totaled 4,559 million yen, which represents a decrease of 2,866 million yen, or 38.6% from theprevious second quarter, and operating income totaled 2,332 million yen, a decrease of 2,553 million yen, or 52.3%. This was due mainly
to the recording of asset acquisition fee paid by Nomura Real Estate Master Fund, Inc. and dividend income through the sale of SPC’s
property in the previous second quarter.
FY2013 2Q

FY2014 2Q

FY2013(Millions of yen)

(Millions of yen)

(Millions of yen)

Operating revenue

7,426

4,559

18,326

Assets under management
As of September 30, 2013

As of September 30, 2014

As of March 31, 2014

(Millions of yen)

(Millions of yen)

(Millions of yen)REITs

890,030

965,229

941,385

Private funds, etc.

200,321132,123

190,861

1,090,351

1,097,352

1,132,246

Total<Property Brokerage & CRE Business Segment>
Operating revenue in this segment totaled 13,396 million yen, which represents an increase of 102 million yen, or 0.8% from theprevious second quarter, operating income totaled 3,173 million yen, a decrease of 123 million yen, or 3.7%.
In retail operations, we opened new branch stores, Kitasenju Center (Adachi-ku, Tokyo) in April 2014 and Nishi-Kasai Center(Edogawa-ku, Tokyo) in July 2014.
Breakdown of operating revenue
FY2013 2Q

FY2014 2Q

FY2013(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

11,281

11,277

24,520

Other

2,012

2,118

4,647

13,294

13,39629,168

Total

Number of transactions and total transaction value of property brokerage
FY2013 2Q
Number of transactions
Total transaction value (Millions of yen)

FY2014 2Q

FY2013

3,701

3,357

7,437

294,523

314,916

672,7744

<Property & Facility Management Business Segment>
Operating revenue in this segment totaled 33,500 million yen, which represents an increase of 1,071 million yen, or 3.3% from theprevious second quarter, and operating income totaled 2,086 million yen, an increase of 3 million yen, or 0.2%.
Due to the merger of Nomura Building Management Co., Ltd. and Nomura Living Support Co., Ltd. on April 1, 2014, the breakdownof operating revenue for this segment has been changed from "Building management" and "Housing management" to "Property &facility management" and "Construction ordered" since the first quarter of the current fiscal year. In line with this change, the figures forthe second quarter and full-year results of the previous fiscal year are classified under the new classification.
Breakdown of operating revenue
FY2013 2Q

FY2014 2Q

FY2013(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

25,03325,30850,967

Construction ordered

7,396

8,191

21,183

Total

32,42933,50072,150

Number of properties under management
As of September 30, 2013

As of September 30, 2014

724

716

703

141,712

151,641

147,516

Buildings under management
Condominiums under management (unit)

As of March 31, 2014

<Other Business Segment>
Operating revenue in this segment totaled 8,028 million yen, which represents a decrease of 1,741 million yen, or 17.8% from theprevious second quarter, and operating loss totaled 84 million yen (the previous second quarter was operating income of 290 million yen).
This was due mainly to a decrease in the sale of assets owned by a sector other than the fitness club business.
In the fitness club business sector, we newly opened Dayos24 Unoki-Ekimae (Ota-ku, Tokyo) in June 2014.

Operating revenue

FY2013 2Q

FY2014 2Q

FY2013(Millions of yen)

(Millions of yen)

(Millions of yen)

9,769

5

8,028

18,640(2) Financial Position
As of March 31, 2014

As of September 30, 2014

Changes

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

Total assets

1,313,887

1,343,489

29,601

2.3

Total liabilities

895,190911,801

16,611

1.9

Net assets

418,697431,687

12,990

3.1

Shareholders' equity ratio

27.1%

27.3%

-

-

Total assets totaled 1,343,489 million yen, an increase of 29,601 yen from the end of the previous fiscal year. This was mostly due to anincrease inventories including real estate for sale (increased by 50,159 million yen).
Total liabilities totaled 911,801 million yen, an increase of 16,611 million yen from the end of the previous fiscal year. This was due
mainly to an increase in short-term loans payable (increased by 40,836 million yen) and commercial papers (increased by 9,000 millionyen), while long-term loans payable decreased (decreased by 23,800 million yen).
Net assets totaled 431,687 million yen, an increase of 12,990 million yen from the end of the previous fiscal year. This was due mainly
to an increase in retained earnings (increased by 8,143 million yen).
The shareholders' equity ratio was 27.3%, an increase of 0.2 percentage points from the end of the previous fiscal year.
(Cash Flows)
Cash and cash equivalents as of the end of the current second quarter totaled 48,278 million yen, which represents a decrease of 19,704
million yen from the end of the previous fiscal year.
Net cash provided by (used in) operating activities in the current second quarter decreased by 23,944 million yen, a decrease of 85,793
million yen from the previous second quarter. This was due mainly to an increase in inventories, while the 21,166 million yen of quarterly
income before income taxes and minority interests was recorded.
Net cash provided by (used in) investment activities in the current second quarter decreased by 17,604 million yen, an increase of 1,815
million yen from the previous second quarter. This mainly reflected the purchase of property, plant and equipment and intangible assets.
Net cash provided by (used in) financing activities in the current second quarter increased by 21,808 million yen, an increase of 68,812
million yen from the previous second quarter. This was due mainly to fundraising through short-term loans payable and commercial
papers, while long-term loans payable were paid back.

6

(3) Consolidated Operating Result Forecasts
There is no change in the consolidated operating result forecasts announced on April 30, 2014.
From the current second quarter, a partial revision in the method of allocating costs to each segment of the Company has been
incorporated to enhance the management of each segment. The house leasing business has also been transferred from the Residential
Development Business Segment to the Leasing Business Segment to facilitate comprehensive strategic judgment regarding theCompany’s leasing asset portfolio.
In consideration of the results of the current second quarter, forecasts by segment have been revised from those announced on April 30,
2014 to those shown below.
Operating Revenue
Changes
Initial forecasts

Revised forecasts(Millions of yen)

(Millions of yen)

(Millions of yen)
Revision of

Changes inoperating result

adjustments, etc.

forecasts(Note)

Residential Development

356,000

349,000(7,000)(3,000)(4,000)

Leasing

88,00096,000

8,000

4,000

4,000

Investment Management

9,000

9,000

-

-

-

Property Brokerage & CRE

28,00027,000(1,000)(1,000)-Property & Facility Management

73,00073,000

-

-

-

Other

17,00018,000

1,000

1,000

-

Adjustments(11,000)(12,000)(1,000)(1,000)-

Total

560,000

560,000---

Operating Income
Changes
Initial forecasts

Revised forecasts(Millions of yen)

(Millions of yen)

(Millions of yen)
Revision of

Changes inoperating result

adjustments, etc.

forecasts(Note)

Residential Development

34,00031,000(3,000)500(3,500)

Leasing

22,00023,500

1,500

2,000

(500)

Investment Management

5,000

4,500

(500)

(500)

-

Property Brokerage & CRE

7,500

6,000

(1,500)(1,000)(500)

CRECCRE
Property &Facility Management

5,000

5,000

-

-

-

Other

500

0

(500)

(500)

-

Adjustments(9,000)(5,000)

4,000

(500)

4,500

Total

65,00065,000---(Note) Changes due to a revision in the method of allocating costs and changes in the segmentation of house leasing business are included.

7

2. Summary Information (Notes)(1) Transfer of Important Subsidiaries during the Current Cumulative Second Quarter
There were no applicable subsidiaries.
However, along with the Company’s plans for commercialization utilizing land owned by Yokohama Mirai 46 Special Purpose
Company, Ltd., the Company included it in the scope of consolidation from the current second quarter. Please see the Notice of Transfer
of Subsidiary (Consolidation of a Special Purpose Company) announced on October 30, 2014 for more details.

(2) Changes in Accounting Policies, Accounting Estimates, and Restatements
Changes in Accounting Policies(Adoption of Accounting Standards for Retirement Benefits)
The Group has applied the “Accounting Standards for Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement
No.26 issued May, 17 2012; hereinafter “Retirement Benefits Accounting Standards”) and “Guidance on Accounting Standards for
Retirement Benefits” (ASBJ Guidance No.25 issued May, 17 2012; hereinafter “Guidance”) from the first quarter of the consolidated
accounting period under review. In accordance with the provisions stipulated in the main clause of Article 35 of the Retirement Benefits
Accounting Standards and in the main clause of Article 67 of the Guidance, the Group reviewed the method of calculation for retirement
benefit liabilities and service costs, and changed the method of attributing expected amount of retirement benefits to accounting periods
from a straight-line attribution standard to a benefit formula, and changed the method of calculating discount rate from the use of the
expected average remaining service years for employees to use of a single weighted average discount rate .
Adoption of the accounting standards for retirement benefits and Guidance is subject to the transitional treatment stipulated by Article
37 of the Retirement Benefits Accounting Standards, and the amount of financial impact at the beginning of the second quarter of theconsolidated accounting period under review as a result of the adoption of the new calculation method for retirement benefit liabilities andservice costs is added to/ removed from retained earnings.
As a result, retirement benefit liabilities at the beginning of the current second quarter decreased by 2,445 million yen and retained
earnings increased by 1,571 million yen. Consequently, operating income, ordinary income, and net income in the cumulative second
quarter ended September 30, 2014 each increased by 64 million yen.

8

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
Assets

資産の部

Current Assets:

FY2013

FY2014 2Q(As of March 31, 2014)(As of S eptember 30, 2014)

流動資産合計496,978

523,972

Cash and deposits

現金及び預金45,48445,280Notes and accounts receivable-trade

受取手形及び売掛金

14,77012,293

Short-term investment securities

有価証券

22,5003,000

Real estate for sale

販売用不動産45,04762,652

Real estate for sale in process

仕掛販売用不動産

217,838

199,141

Land held for development

開発用不動産85,974

137,160

Equity investments

営業エクイティ投資

7,128

6,526

Deferred tax assets

繰延税金資産

7,384

6,385

Other

その他

51,02551,571

Allowance for doubtful accounts

貸倒引当金

(177)

(39)

固定資産合計816,909819,517有形固定資産合計

716,093

726,121

Buildings and structures, net

建物及び構築物(純額)242,176

237,748Land

土地467,610

480,986

Other, net

その他(純額)

6,306

7,386

Intangible assets

無形固定資産合計

9,382

9,951

Investments and other assets

Noncurrent Assets:
Property, plant and equipment

投資その他の資産合計

91,43383,444

Investment securities

投資有価証券

47,63040,351

Lease and guarantee deposits

敷金及び保証金

19,22319,927

Deferred tax assets

繰延税金資産21,86020,223

Other

その他

2,720

2,943

Allowance for doubtful accounts

貸倒引当金

(1)

(1)

1,313,887

1,343,489

Total Assets

資産合計

9

(Millions of yen)
FY2013

FY2014 2Q(As of March 31, 2014)(As of S eptember 30, 2014)

流動負債合計288,094

333,605

Notes and accounts payable-trade

支払手形及び買掛金

37,62937,314

Short-term loans payable

短期借入金

152,683

193,520

Commercial papers

コマーシャル・ペーパー

－

9,000

Current portion of bonds

1年内償還予定の社債

10,00010,000

Income taxes payable

未払法人税等

8,091

8,175

Deposits received

預り金

9,175

13,228Deferred tax liabilities

繰延税金負債148

265

Provision for bonuses

賞与引当金

6,087

5,956

Provision for directors' bonuses

役員賞与引当金

586

296

Provision for loss on business liquidation

事業整理損失引当金

112

98

Other

その他

63,58055,750Liabilities

負債の部

Current Liabilities :固定負債合計607,095

578,196

Bonds payable

社債

23,00023,000Long-term loans payable

長期借入金

431,900

408,100

Lease and guarantee deposits received

受入敷金保証金

57,12457,759Deferred tax liabilities

繰延税金負債

67,421

67,324

Deferred tax liabilities for land revaluation

再評価に係る繰延税金負債

4,537

4,537

Provision for loss on subleasing business

転貸事業損失引当金

473

436

Net defined benefit liability

退職給付に係る負債

14,901

11,545

Other

その他

7,737

5,492

Total Liabilities

負債合計

895,190911,801

Net Assets

純資産の部

S hareholders' Equity:

株主資本合計348,347

356,607

Capital stock

資本金116,024

116,082

Capital surplus

資本剰余金93,353

93,411Retained earnings

利益剰余金

138,971

147,115

Treasury shares

自己株式

(2)

(2)

Noncurrent Liabilities :その他の包括利益累計額合計

7,333

10,821

Valuation difference on available-for-sale securities

その他有価証券評価差額金

(689)

2,287

Deferred gains or losses on hedges

繰延ヘッジ損益25

46

Revaluation reserve for land

土地再評価差額金

7,224

7,224

Foreign currency translation adjustment

為替換算調整勘定

32

32

Remeasurements of defined benefit plans

退職給付に係る調整累計額

742

1,231

1,273

1,695

Other Comprehensive Income:S ubscription Rights to S hares:

新株予約権

Minority Interests:

少数株主持分

61,74262,562

Total Net Assets

純資産合計

418,697431,687

Total Liabilities and Net Assets

負債・純資産合計

1,313,887

1,343,489

10

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Six Months from April 1 to September 30, 2014)(Millions of yen)

FY2013 2Q

FY2014 2Q(From April 1 to(From April 1 to
S eptember 30, 2013) S eptember 30, 2014)
Operating Revenue

営業収益

251,944

243,074

Operating Cost

営業原価

175,182

171,234

Operating Gross Profit

営業総利益76,762

71,839S elling, General and Administrative Expenses

販売費及び一般管理費

40,30542,631

Operating Income

営業利益36,457

29,208Non-operating Income

営業外収益合計

747

525

Interest income

受取利息

40

30

Dividends income

受取配当金

430

218

Equity in earnings of affiliates

持分法による投資利益

9

17

Other

その他

267

259

営業外費用合計

6,084

5,015

Interest expenses

支払利息

5,250

4,599

Other

その他

833

415

Ordinary Income

経常利益

31,121

24,718Extraordinary Income

特別利益合計514

2,547

Gain on sales of noncurrent assets

固定資産売却益

514

206

Dividends distribution from silent partnershipassociated with impairment loss

減損損失に伴う匿名組合損益分配額

－

2,203

Other

その他

－

137

特別損失合計

259

6,099

減損損失

259

6,099

Non-Operating Expenses

Extraordinary Losses

Impairment loss
Income before Income Taxes and Minority Interests

税金等調整前四半期純利益

31,37621,166

Income taxes-current

法人税、住民税及び事業税

6,674

8,445

Income taxes-deferred

法人税等調整額

5,447

(144)

Total income taxes

法人税等合計12,121

8,301

Income before minority interests

少数株主損益調整前四半期純利益

19,254

12,864

M inority interests in income

少数株主利益

1,700

1,180

Net Income

四半期純利益17,553

11,68411

(Quarterly Consolidated Statements of Comprehensive Income)(Six Months from April 1 to September 30, 2014)(Millions of yen)
FY2013 2Q

FY2014 2Q(From April 1 to(From April 1 to
S eptember 30, 2013) S eptember 30, 2014)
Net Income before Minority Interests

少数株主損益調整前四半期純利益

19,254

12,864

Other Comprehensive Income

その他の包括利益合計(2,481)

3,489

Valuation difference on available-for-sale securities

その他有価証券評価差額金(2,387)

2,979

Deferred gains or losses on hedges

繰延ヘッジ損益(93)

21

Revaluation reserve for land

土地再評価差額金(0)(0)

Remeasurements of defined benefit plans, net of tax

退職給付に係る調整額－

489

16,772

16,354Comprehensive Income

四半期包括利益(Breakdown)（内訳）

Comprehensive income attributable to owners of the parent

親会社株主に係る四半期包括利益

15,075

15,172Comprehensive income attributable to minority interests

少数株主に係る四半期包括利益

1,697

1,182

12

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
FY2013 2Q

FY2014 2Q(From April 1 to(From April 1 to
S eptember 30, 2013) S eptember 30, 2014)
Cash Flows from Operating Activities
Income before income taxes and minority interests

税金等調整前四半期純利益

31,37621,166

Depreciation and amortization

減価償却費

6,968

7,523

Equity in (earnings) losses of affiliates

持分法による投資損益

(9)

(17)

Increase (decrease) in allowance for doubtful accounts

貸倒引当金の増減額

(24)

(138)

Increase (decrease) in provision for retirement benefits

退職給付引当金の増減額

450－

Increase (decrease) in provision for loss on business liquidation

事業整理損失引当金の増減額

(18)

(14)

Increase (decrease) in provision for loss on subleasing business

転貸事業損失引当金の増減額

(220)

(36)

Increase (decrease) in net defined benefit liability

退職給付に係る負債の増減額

－

(151)

Interest and dividends income

受取利息及び受取配当金

(470)

(248)

Interest expenses

支払利息

5,250

4,599

Decrease (increase) in notes and accounts receivable-trade

売上債権の増減額

1,946

2,477

Decrease (increase) in inventories

たな卸資産の増減額

17,072(50,159)

Decrease (increase) in equity investments

営業エクイティ投資の増減額

20,216602

Increase (decrease) in notes and accounts payable-trade

仕入債務の増減額(15,878)(314)

Increase (decrease) in deposits received

預り金の増減額

4,220

4,052

Other, net

その他

1,375

(1,045)

S ubtotal

小計

72,254(11,705)

Interest and dividends income received

利息及び配当金の受取額

1,273

725

Interest expenses paid

利息の支払額(5,445)(4,658)

Income taxes paid

法人税等の支払額(6,233)(8,306)Net Cash Provided by (used in) Operating Activities

営業活動によ る キ ャ ッシュ ・ フロ ー

61,848(23,944)

Purchase of investment securities

投資有価証券の取得による支出(8,814)(632)

Proceeds from sales and liquidation of investment securities

投資有価証券の売却及び清算による収入

101

549

Purchase of property, plant and equipment and intangible assets

有形及び無形固定資産の取得による支出(16,608)(18,787)

Proceeds from sales of property, plant and equipment and intangible assets 有形及び無形固定資産の売却による収入

6,138

905

11

－
(275)

Cash Flows from Investing Activities

Collection of loans receivable

貸付金の回収による収入

Payments for lease and guarantee deposits

敷金及び保証金の差入による支出(166)

Proceeds from collection of lease and guarantee deposits

敷金及び保証金の回収による収入

580

599

Repayments of lease and guarantee deposits received

受入敷金保証金の返還による支出(1,651)(2,028)Proceeds from lease and guarantee deposits received

受入敷金保証金の受入による収入

606

2,009

Other, net

その他

381

55

Net Cash Provided by (Used in) Investment Activities

投資活動によ る キ ャ ッシュ ・ フロ ー

(19,420)(17,604)

13

(Millions of yen)
FY2013 2Q

FY2014 2Q(From April 1 to(From April 1 to
S eptember 30, 2013) S eptember 30, 2014)
Cash Flows from Financing Activities
Net increase (decrease) in short-term loans payable

短期借入金の純増減額

Increase (decrease) in commercial papers
Repayments of finance lease obligations
Proceeds from long-term loans payable

長期借入れによる収入

37,00035,500

Repayment of long-term loans Payable

長期借入金の返済による支出(78,591)(52,763)

Proceeds from issuance of common stock

株式の発行による収入

303

41

Proceeds from stock issuance to minority shareholders

少数株主からの払込みによる収入

13

3

Purchase of Treasury Shares

自己株式の取得による支出(0)－

Cash dividends paid

配当金の支払額(2,858)(3,818)Cash dividends paid to minority shareholders

少数株主への配当金の支払額

Net Cash Provided by (Used in) Financing Activities

財務活動によ る キ ャ ッシュ ・ フロ ー

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and Cash Equivalents at End of Period(2,750)34,300

コマーシャル・ペーパーの増減額

－

9,000

ファイナンス・リース債務の返済による支出

(99)

(78)

(21)

(376)

(47,004)

21,808

現金及び現金同等物の増減額(4,576)(19,740)

現金及び現金同等物の期首残高

62,496

67,982連結の範囲の変更に伴う 現金及び現金同等物の増減額－36

現金及び現金同等物の四半期末残高

57,92048,27814

(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 FY2013 2Q (Six months from April 1 to September 30, 2013)
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

recorded in

Residential

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development(Note) 1

Subtotal

Quarterly

Adjustments
Total

Investment

Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
External customers

144,032

48,634

7,426

12,417

29,667242,1769,768

251,944-251,944

361

960

0

877

2,761

4,961

1

4,963

(4,963)-

Subtotal

144,393

49,594

7,426

13,29432,429247,138

9,769

256,907(4,963)251,944

Segment income

14,286

14,124

4,885

3,296

2,082

38,676290

38,966(2,508)36,457

Inter-segment(Notes) 1. The “Other” category, which represents operating segments that are not included in reportable segments, includes fitness cluband other businesses.
2. The deduction of 2,508 million yen shown in the adjustments column for segment income includes an addition of 369 million
yen for the elimination of inter-segment transactions and a deduction of 2,877 million yen for corporate expenses not allocated toreportable segments. These corporate expenses mainly consist of general and administrative expenses not attributable toreportable segments.
3. The segment income is reconciled to the operating income stated in the Quarterly Consolidated Statements of Income.
2. Impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)(Millions of yen)
Residential

Investment
Leasing

Development

Impairment loss-

Management

259

-

15

Property

Property &Brokerage &Facility

CRE

Management

-

Total

-

259

II FY2014 2Q (Six months from April 1 to September 30, 2014)
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

recorded in

Residential

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development

Adjustments
Total

Investment(Note) 1

Subtotal

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
External customers

141,348

46,947

4,557

12,09730,098235,048

8,026

243,074-

243,074

377

1,071

2

1,299

3,401

6,152

2

6,155

(6,155)-

Subtotal

141,725

48,0184,559

13,39633,500241,201

8,028

249,229(6,155)

243,074

Segment income or loss

11,141

13,122

2,332

3,173

2,086

31,855(84)

31,771(2,563)

29,208Inter-segment(Notes) 1. The “Other” category, which represents operating segments that are not included in reportable segments, includes fitness cluband other businesses.
2. The deduction of 2,563 million yen shown in the adjustments column for segment income includes an addition of 27 million yen
for the elimination of inter-segment transactions and a deduction of 2,590 million yen for corporate expenses not allocated toreportable segments. These corporate expenses mainly consist of general and administrative expenses not attributable toreportable segments.
3. The segment income or loss is reconciled to the operating income stated in the Quarterly Consolidated Statements of Income.
2. Changes in reportable segments
From the current second quarter, a partial revision in the method of allocating costs to each segment of the Company has been
incorporated to enhance the management of each segment.
In addition, the house leasing business has been transferred from the Residential Development Business Segment to the
Leasing Business Segment to facilitate comprehensive strategic judgment regarding the Company’s leasing asset portfolio.
In line with these changes, segment income in the current cumulative second quarter decreased by 1,533 million yen in the
Residential Development Business Segment, 383 million yen in the Leasing Business Segment, 87 million yen in theInvestment Management Business Segment, and 173 million yen in the Property Brokerage & CRE Business Segment, andincreased by 2,178 million yen in Adjustments.
In this regard, the segment information for the previous cumulative second quarter has been prepared in accordance with therevised classification and measurement.
3. Impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)(Millions of yen)
Residential
Development

Impairment loss

Investment

Leasing-

Management-

Property

Property &Brokerage &Facility

CRE

Management

6,099(Significant Subsequent Events)
On October 28, 2014, the Company issued unsecured straight bonds as described below.
1. The 4th unsecured straight bond issue (10-year)(1) Total amount issued: ¥10 billion(2) Issue price: ¥100 per face value ¥100(3) Interest rate: 0.835% per annum(4) Closing date: October 28, 2014(5) Maturity date: October 28, 2024
(6) Use of proceeds: Redemption of the 1st unsecured straight bond issue

16

-

Total

-

6,099