May 1, 2020

Consolidated Financial Results
For the Fiscal Year Ended March 31, 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

Date of Ordinary General Meeting of shareholders:June 23, 2020

Scheduled starting date for dividend payments:

June 9, 2020

Scheduled submitting date of securities report:

June 23, 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 fiscal year from April 1, 2019 to March 31, 2020
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating profit

Millions ofBusiness profit

Millions ofMillions of%yenowners of parent

Millions of%yenProfit attributable toOrdinary profit

Millions of

%
yen

%
yen

%
yen

FY2019676,495

1.2

81,905

3.5

82,833

4.0

73,077

5.4

48,886

6.6

FY2018

668,510

7.2

79,162

3.3

79,623-69,323

1.9

45,873(0.3)(Note) Comprehensive income: FY2019: 46,084 million yen (down 3.6%) FY2018: 47,795 million yen (up 9.6%)(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 share

Ordinary profit
Return on equity

Operating profit

margin on total

marginassets

Yen

Yen

%

%

%

FY2019267.21265.88

9.1

4.1

12.1

FY2018245.99244.55

8.9

4.0

11.8

(Reference) Share of profit (loss) of entities accounted for using equity method: FY2019: 313 million yen FY2018: 167 million yen

(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders' equity ratio

Net assets per share

Millions of yen

Millions of yen%

yenMar. 31, 2020

1,801,273

565,12030.5

3,031.15

Mar. 31, 2019

1,759,455

541,56229.9

2,854.21(Reference) Shareholders’ equity: As of March 31, 2020: 550,177 million yen

As of March 31, 2019: 526,748 million yen(3) Consolidated cash flows
Cash flows from

Cash flows from

Cash flows from(used in) operating(used in ) investing(used in) financing

activities

activities

activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY201956,618(30,490)(66,821)77,611FY201889,964(46,699)

13,723

118,330

II. Dividends
Dividend per share
1st quarter2nd quarter3rd quarter

Total amountof dividends

Fiscal year
Total

end

end

end

(Consolidated)(Annual)end

Dividend on

Payout ratio

equity(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

FY2018

-

37.50

-

37.50

75.00

14,00130.5

2.7

FY2019

-

40.00

-

40.00

80.00

14,729

30.1

2.7

-

40.00

-

40.00

80.00

FY2020(Forecast)-(Note) Revision of dividend forecasts during this quarter: None
(Note) The total amount of dividends include the amount of dividends paid to the executive compensation BIP (Board Incentive Plan) trust
and the ESOP (Employee Stock Ownership Plan) trust for granting stock (73 million yen in the fiscal year ended March 31, 2019 and 157
million yen in the fiscal year ended March 31, 2020). The payout ratio is calculated by dividing the total amount of dividends by the profit
attributable to owners of parent.

III. Forecasts of consolidated operating results for the fiscal year from April 1, 2020 to March 31, 2021
Forecasts of consolidated operating results for fiscal year ending March 31, 2021 is to be determined, as it is difficult to reasonably calculate
the impact of the spread of novel coronavirus disease (COVID-19) on business activities and business results. The information will be
disclosed once it is possible to make rational calculations in future.

* Notes(1) Significant changes to subsidiaries during the period (Changes in scope of consolidation of specified subsidiaries): None
(2) 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(3)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 Mar. 31

As of Mar. 31

2020

2019

192,875,301

192,373,101

11,367,181

7,821,664

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2019182,954,299

186,489,418(Note) 1,968,017 shares of the Company’s share owned by executive compensation BIP (Board Incentive Plan) trust and ESOP (Employee
Stock Ownership Plan) trust for granting stock are included to the number of treasury shares at end of period. 1,937,442 shares owned by the
executive compensation BIP (Board Incentive Plan) trust and the ESOP (Employee Stock Ownership Plan) trust for granting stock trust arealso included to the number of treasury shares deducted in the calculation of average number of shares outstanding during the period.
* This 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
Forecasts of consolidated operating results for the fiscal year ending March 31, 2021 is to be determined as it is difficult to calculate
reasonably. The information will be disclosed once it is possible to make rational calculations in future.
(How to obtain the fact sheets)
The fact sheets will be disclosed on TDnet on May 1, 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 .............................................................................................................................................................................

5(3) Cash Flows ........................................................................................................................................................................................

6(4) Basic Policy regarding Profit Distribution and Dividends for the Current and Next Fiscal Year............................................

6

2. Group Companies ...........................................................................................................................................................................................

7

3. Basic Policies for Selecting Accounting Standards.....................................................................................................................................

9

4. Consolidated Financial Statements .............................................................................................................................................................

10(1) Consolidated Balance Sheets .........................................................................................................................................................

10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ..........................................

12

Consolidated Statements of Income ..............................................................................................................................................

12

Consolidated Statements of Comprehensive Income .................................................................................................................

3(3) Consolidated Statements of Changes in Net Assets ....................................................................................................................

14(4) Consolidated Statement of Cash Flows ........................................................................................................................................

16(5) Notes to Consolidated Financial Statements ................................................................................................................................

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

18(Notes to Consolidated Statements of Income) ..........................................................................................................................

18(Real Estate for Rent) .....................................................................................................................................................................

18(Segment Information) ..................................................................................................................................................................

19(Per Share Information) .................................................................................................................................................................

21(Significant Subsequent Events) ..........................................................................................................................................................

221

1. Business Results and Financial Position(1) Business Results
In this business environment, the Nomura Real Estate Group (the “Group”) posted the following consolidated performance for thisconsolidated fiscal year: Operating revenue of 676,495 million yen, which represents an increase of 7,985 million yen, or 1.2% year on year;
operating profit of 81,905 million yen, an increase of 2,743 million yen, or 3.5%; business profit of 82,833 million yen, an increase of 3,209
million yen, or 4.0%; ordinary profit of 73,077 million yen, an increase of 3,754 million yen, or 5.4%; and profit attributable to owners ofparent of 48,886 million yen, an increase of 3,012 million yen, or 6.6%.
(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:
Operating revenue for each business unit includes internal sales and transfer amount among business units. Due to the rounding of fractions,
total figures may not match.
From this consolidated fiscal year, Leasing Business Unit has been renamed Commercial Real Estate Business Unit. Nomura Real Estate
Life & Sports Co., Ltd., and the senior business of Nomura Real Estate Wellness Co., Ltd. and Nomura Real Estate Development Co., Ltd.,
which had been classified under the Property & Facility Management Business Unit, have been reclassified under the Commercial Real EstateBusiness Unit and the Residential Development Business Unit, respectively. The rental housing business of Nomura Real Estate Development
Co., Ltd., which had been classified under the Commercial Real Estate Business Unit, has been reclassified under the Residential Development
Business Unit.
In line with this change, the financial results of the fiscal year ended March 31, 2019 are calculated under the new classification.
As a result of the transfer of a portion of shares in NF Power Service Co., Ltd., the company ceased being a consolidated subsidiary on
April 1, 2019.
<Residential Development Business Unit>
Operating revenue in this business unit totaled 334,710 million yen, which represents a decrease of 40,663 million yen, or 10.8% year on
year, and business profit totaled 24,905 million yen, which represents a decrease of 126 million yen, or 0.5% year on year, resulting in decreases
in both operating revenue and business profit compared with the previous fiscal year.
This was mainly due to a decrease in the number of housing units sold in the housing sales business, but the gross profit margin ratio for thisbusiness improved to 20.4% (19.1% in the previous fiscal year), and our business profit is at the same level compared with the previous fiscal
year.
In regard to housing sales, 4,739 units were recorded as sales (a decrease of 1,151 units year on year), including PROUD Ebisu Hillside
Garden (Shibuya-ku, Tokyo), PROUD CITY Hiyoshi Residence I (Kohoku-ku, Yokohama-shi, Kanagawa), OHANA Hashimoto (Midori-ku,
Sagamihara-shi, Kanagawa), PROUD TOWER Nagoya Hisaya Odori Park (Higashi-ku, Nagoya-shi, Aichi) for condominiums, and PROUDSEASON Setagaya Kinuta (Setagaya-ku, Tokyo) for detached housings.
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on the Group’s share.
Breakdown of operating revenue
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)

Operating revenue

Housing units sold
Housing sales Tokyo metropolitan area

(Millions of yen)

Operating revenue

Housing units sold(Millions of yen)

4,295 units

264,695

3,448 units

225,349

Kansai area

830 units

40,719690 units

36,149Other

764 units

36,641600 units

32,878Subtotal

5,890 units

342,055

4,739 units

294,376(Detached housing)(647 units)(44,378)(470 units)(30,780)

Rental Housing (Note)
Senior / Others
Total

12,23719,001-

21,079-21,332-

375,373-

334,710(Note) Rental Housing refers to properties developed for real estate investment market.

2

Housing sales Period-end completed housing inventory (released for sale)
As of March 31, 2019

As of March 31, 2020

Tokyo metropolitan area

147 units

261 units

Kansai area

62 units

5 units

Other

19 units

55 units

Total

229units

321 units(Detached housing)(35 units)(22 units)

Housing sales Period-end completed housing inventory (unreleased)
As of March 31, 2019

As of March 31, 2020

Total

47 units

187 units(Detached housing)(9 units)(3 units)

Housing sales Contracted but not recorded as housing sales
As of March 31, 2019

As of March 31, 2020

Outstanding
Housing units

contract amount

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

Tokyo metropolitan area

2,204 units

156,292

2,067 units

154,938

Kansai area

410 units

21,694248 units

14,097

Other

381 units

22,222295 units

17,039Total

2,996 units

200,2092,611 units

186,075(Detached housing)(21 units)(1,608)(60 units)(3,604)<Commercial Real Estate Business Unit >Operating revenue in this business unit totaled 215,820 million yen, which represents an increase of 44,208 million yen, or 25.8% year on
year, and business profit totaled 39,238 million yen, an increase of 1,195 million yen, or 3.1%, resulting in increases in both operating revenue
and business profit compared with the previous fiscal year.
This was mainly due to increases in revenues of properties for sales.
Breakdown of operating revenue
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)(Millions of yen)

(Millions of yen)

Leasing (offices)

53,975

48,792

Leasing (retail facilities)

13,817

12,910

Leasing (other)

7,974

8,375

65,350106,816

4,533

7,037

Fitness

16,64715,757

Other

9,312

16,131

171,612215,820

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.

3

Lettable area
As of March 31, 2019

As of March 31, 2020

Offices

784,122 m2

779,834 m2

Retail facilities

169,497 m2

145,136 m2

953,620 m2

924,970 m2

Total
Vacancy rate (offices and retail facilities)
As of March 31, 2019

As of March 31, 2020
4.7%

4.0%

<Investment Management Business Unit>
Operating revenue in this business unit totaled 12,059 million yen, which represents an increase of 2,417 million yen, or 25.1% year on
year, and business profit totaled 7,149 million yen, an increase of 1,179 million yen, or 19.8%, resulting in increases in both operating
revenue and business profit compared with the previous fiscal year.
This was mainly due to an increase in a domestic asset manager’s assets under management and the full year contribution of revenue
and profit of Lothbury Investment Management, a real estate investment manager in the UK which became a consolidated subsidiary of
the Company in the previous fiscal year.
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)(Millions of yen)

(Millions of yen)
9,641

Operating revenue

12,059Assets under management
As of Mar. 31, 2019

As of Mar. 31, 2020

(Millions of yen)

(Millions of yen)

REITs

1,290,999

1,367,758

75,474130,211

Overseas asset manager

303,002300,614

Total

1,669,476

1,798,583

Domestic asset

Privatemanagerfunds,
etc.

<Property Brokerage & CRE Business Unit>
Operating revenue in this business unit totaled 39,110 million yen, which represents an increase of 1,811 million yen, or 4.9% year on year,
and business profit totaled 9,109 million yen, an increase of 938 million yen, or 11.5%, resulting in increases in both operating revenue andbusiness profit compared with the previous fiscal year.
This was mainly due to an increase in brokerage commission fee, resulting from increases in the number of transactions and totaltransaction value in retail business.
Breakdown of operating revenue
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)(Millions of yen)

(Millions of yen)

Property brokerage

33,136

Other
Total

4

35,156

4,162

3,954

37,298

39,110Number of transactions and transaction value of property brokerage
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)
Number of transactions
Total transaction value (Millions of yen)

to March 31, 2020)
8,922

9,515

767,324872,337<Property & Facility Management Business Unit>
Operating revenue in this business unit totaled 92,982 million yen, which represents an increase of 1,608 million yen, or 1.8% year on year,
and business profit totaled 8,181 million yen, an increase of 717 million yen, or 9.6%, resulting in increases in both operating revenue andbusiness profit compared with the previous fiscal year.
This was mainly due to an increase in construction ordered.
Breakdown of operating revenue
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)(Millions of yen)

(Millions of yen)

Property & facility management

51,52453,210Construction ordered

32,37134,354

Other

7,478

5,417

91,374

92,982

Total
Number of properties under management

As of March 31, 2019
Buildings under management
Condominiums under management (unit)

As of March 31, 2020

732

723

177,582

182,230<Other Business Unit>
Operating revenue in this business unit totaled 168 million yen, which represents an increase of 73 million yen, or 77.4% year on year, andbusiness loss totaled 106 million yen (business loss of the previous fiscal year was 43 million yen).

(2) Financial Position
As of Mar. 31, 2019

As of Mar. 31, 2020

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Changes

Total assets

1,759,455

1,801,273

41,818

2.4%

Total liabilities

1,217,893

1,236,153

18,2601.5%

Of which, Interest-bearing debt

(914,000)(870,000)(44,000)(4.8%)Net assets

541,562

565,120

23,557

4.3%

Shareholders' equity ratio

29.9%

30.5%

-

-

1.7

1.6

-

-

Debt / equity ratio(Note) Debt / equity ratio = Interest-bearing debt / Shareholder’s equity
Total assets were 1,801,273 million yen, which represents an increase of 41,818 million yen compared to the end of the previous fiscal
year. This was mainly because inventories increased by 77,809 million yen, while securities decreased by 37,000 million yen.
Total liabilities were 1,236,153 million yen, which represents an increase of 18,260 million yen compared to the end of the previous fiscal
year. This was mainly because notes and accounts payable-trade increased by 40,270 million yen and deposits received increased by 8,648
million yen, while borrowings decreased by 44,000 million yen.
Net assets were 565,120 million yen, which represents an increase of 23,557 million yen compared to the end of the previous fiscal year.
This was mainly because retained earnings increased by 34,510 million yen, while there was a decrease in net assets due to the acquisition of5treasury shares by 8,551 million yen.
The shareholders' equity ratio was 30.5%, an increase of 0.6 percentage point from the end of the previous fiscal year.

(3) Cash Flows
Cash and cash equivalents as of the end of this consolidated fiscal year totaled 77,611 million yen, which represents a decrease of 40,718
million yen compared to the end of the previous fiscal year.
The state and factors associated with each cash flow of this consolidated fiscal year are shown below.
Net cash provided by (used in) operating activities increased by 56,618 million yen (a year-on-year decrease of 33,345 million yen). Thiswas mainly due to 73,090 million yen in profit before income taxes was recorded and trade payables increased while there was an increase ininventories and there were payments of income taxes.
Net cash provided by (used in) investing activities decreased by 30,490 million yen (a year-on-year increase of 16,208 million yen). Thiswas mainly due to the payment of plant and equipment and intangible assets and the purchase of investment securities through equity method
investments in overseas development projects.
Net cash provided by (used in) financing activities decreased by 66,821 million yen (a year-on-year decrease of 80,545 million yen). Thiswas mainly due to the repayments of long-term borrowings and the payment of cash dividends.

(4) Basic Policy regarding Profit Distribution and Dividends for the Current and Next Fiscal Year
Under the Mid- to Long-term Business Plan, which was formulated in April 2019, the company has targeted the total return ratio to bearound 40-50% in Phase 1 (from fiscal year ended March 31, 2020 to fiscal year ending March 31, 2022).
As for dividend, the Company intends to set the year-end dividend for the fiscal year ended March 31, 2020 at 40.0 yen per share as
forecasted. Combined with the second quarter-end dividend, the annual dividend per share will be 80.0 yen. As a result, total return ratio
during this consolidated fiscal year, which included the acquisition of treasury shares, was 46.5%.
In regard to the dividend for the next fiscal year, the annual dividend per share will be 80.0 yen as with this fiscal year.

62. Group Companies
Major business contents of the Nomura Real Estate Group and 69 affiliated companies (40 consolidated subsidiaries, and 29 affiliates andunconsolidated subsidiaries accounted for using the equity method), and consolidated subsidiaries involved in the relevant businesses, as wellas the role of said consolidated subsidiaries are given below.
<Residential Development Business Unit>･Nomura Real Estate Development Co., Ltd. is engaged in the development and sale of condominiums, detached housing and development
and sale of rental housing and senior housing.
･Nomura Real Estate Wellness Co., Ltd. is engaged in the development, planning, and operation of housing services for the elderly.
･Prime X. Co., Ltd. is engaged in Internet advertisings.
･First Living Assistance Co., Ltd. provides services aimed at providing assistance to customers concerning their homes and living
arrangements.
<Commercial Real Estate Business Unit >･Nomura Real Estate Development Co., Ltd. is engaged in the development, leasing and sale of office buildings, retail facilities and logistic
facilities, and also in the entrusted management of office buildings and logistic facilities. The Company is also involved in the planning andmanagement of construction work.
･NREG TOSHIBA BUILDING Co., Ltd. is engaged in the development, leasing and sale of office building, retail facility, rental housing,and other properties.
･Nomura Real Estate Life & Sports Co., Ltd. is engaged in the management of fitness club business.
･Geo Akamatsu Co., Ltd. is engaged in the design and entrusted management of retail facilities.
･Nomura Real Estate Hotels Co., Ltd. is engaged in the planning and operation of hotels.
･UHM Co., Ltd. is engaged in the planning and operation of hotels.
･NREG TOSHIBA BUILDING FACILITIES Co., Ltd. is engaged in the maintenance and cleaning services for office buildings entrusted
by NREG TOSHIBA BUILDING Co., Ltd.
・ZEN PLAZA CO., LTD is engaged in leasing business of office building in Vietnam (Ho Chi Minh City).
<Investment Management Business Unit >･Nomura Real Estate Asset Management Co., Ltd. provides investment management services including real estate investment trusts(REITs), private funds and real estate securitization products.
Nomura Real Estate Development Co., Ltd. also has equity interest in the funds managed by Nomura Real Estate Asset Management Co.,Ltd.
･ Lothbury Investment Management Limited provides investment management services including private funds and real estate
securitization products.
<Property Brokerage & CRE Business Unit >･Nomura Real Estate Development Co., Ltd. and Nomura Real Estate Urban Net Co., Ltd. are engaged in real estate brokerage andconsulting. Nomura Real Estate Urban Net Co., Ltd. also handles consignment sales for condominiums and detached housing, as well as
the insurance agency business .
<Property & Facility Management Business Unit >･Nomura Real Estate Partners Co., Ltd. is engaged in the operation and management of condominiums and office buildings, as well as
contracting for repair and tenant works associated with management, and also engages in operations in renovation business.
･Nomura Real Estate Heating and Cooling Supply Co., Ltd. operates a local cooling and heat supply business in Yokohama Business Park
(Hodogaya-ku, Yokohama, Kanagawa).
･Nomura Real Estate Amenity Service Co., Ltd. is engaged in the entrusted cleaning of office buildings, mainly from Nomura Real Estate
Partners Co., Ltd.
<Other Business Unit >･Nomura Real Estate Development Co., Ltd. is engaged in the sale and lease of land and buildings.
The matters described above are shown in the following systematic business diagram.

7

Nomura Real Estate Holdings, Inc.
Nomura Real
Estate GroupManagement Guidance

Residential
Development
Business Unit

Commercial
Real EstateBusiness Unit

Proprety
Brokerage &CRE Business
Unit

Investment
Management
Business
Unit

Property &Facility
Management
Business Unit

Nomura Real
EstateDevelopment

Nomura Real Estate Development

Nomura Real
Estate Wellness

NREG
TOSHIBA
BUILDING

PRIME X.

Nomura Real
Estate Life &SportsFirst Living
Assistance

Geo Akamatsu

Nomura Real
Estate AssetManagement

Other
Business
Unit

Nomura Real
Estate Urban
Net

Nomura Real
Estate Partners

Nomura Real
Estate Heating &Cooling Supply

Lothbury
Investment
Management
Group
LimitedNomura Real
Estate Amenity
Service

Nomura Real
Estate Hotels

UHM

NREG TOSHIBABUILDING
FACILITIESZEN PLAZA(Note)
As of April 1, 2020, the Company made the following changes:.
The Company acquired shares in NREG TOSHIBA BUILDING Co., Ltd held by minority shareholders and made it into a wholly-owned
subsidiary. The company’s name has been changed to Nomura Real Estate Building Co., Ltd.
NREG TOSHIBA BUILDING FACILITIES Co., Ltd. was merged with Nomura Real Estate Partners Co., Ltd being the surviving
company in an absorption-type merger.

8

3. Basic Policies for Selecting Accounting Standards
The Group creates consolidated financial statements in accordance with the Japanese standards taking account of comparability of theconsolidated financial statements over different accounting periods and between companies. The Group will adopt International AccountingStandards, as appropriate, considering shareholder composition and the movement of other domestic companies in the industry.

9

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits

81,351

78,401

Notes and accounts receivable - trade26,601

25,359Securities

37,000－Real estate for sale161,224

234,973

Real estate for sale in process

290,398

298,787

Land held for development

184,650

180,358

Equity investments

18,06630,983

Other50,27457,882(39)(20)

849,528

906,726

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

394,979

380,420

Accumulated depreciation(171,594)(173,461)

Buildings and structures, net

223,385

206,958544,226

526,809

Land
Other

29,88533,781(10,464)(11,227)

19,421

22,553787,033

756,321

18,104

20,223

Investment securities

50,522

58,952

Leasehold and guarantee deposits

25,44827,999Deferred tax assets

20,863

22,696

Other

7,956

8,354

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

104,789

118,003909,926

894,547

1,759,455

1,801,273

Total non-current assets
Total assets

10

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

53,927

94,197

Short-term borrowings

79,50072,000－20,000

Income taxes payable

13,31819,476

Deposits received

26,91535,564

Provision for bonuses

8,176

8,410

Provision for bonuses for directors (and other officers)

495

473

Provision for loss on business liquidation

26

19

Other

49,51351,927

Total current liabilities

231,873

302,068

Bonds payable

140,000

120,000

Long-term borrowings

694,500

658,000

Leasehold and guarantee deposits received

59,24962,392

Deferred tax liabilities

61,56361,389Deferred tax liabilities for land revaluation

3,900

3,900

Provision for share-based remuneration

719

1,541

Provision for loss on subleasing business

15－

Retirement benefit liability

18,17518,705

Other

7,895

8,157

986,019934,084

1,217,893

1,236,153

Share capital

117,293

117,822

Capital surplus

110,537

111,065

Retained earnings

307,570

342,081

Treasury shares(18,787)(27,339)

Total shareholders' equity

516,613543,630

Valuation difference on available-for-sale securities

6,718

2,915

Deferred gains or losses on hedges

(259)

1,044

Revaluation reserve for land

7,860

7,860

Foreign currency translation adjustment(677)(1,322)Remeasurements of defined benefit plans(3,507)(3,950)Total accumulated other comprehensive income

10,134

6,547

Share acquisition rights

2,346

1,850

Non-controlling interests

12,467

13,091

Current portion of bonds payableNon-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

11

541,562

565,120

1,759,455

1,801,273

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Operating revenue

668,510

676,495

Operating costs

479,797482,772

Operating gross profit

188,712

193,723

Selling, general and administrative expenses

109,549

111,817

Operating profit

79,162

81,905Non-operating income
Interest income

44

86

Dividend income

69

122

167

313

Adjustment income for cancellation－

398

Gain on sales of investment securities－

102

Gain on donation of non-current assets

54

－

Other

409

327

Total non-operating income

746

1,350

Interest expenses

8,753

8,788

Other

1,831

1,389

Total non-operating expenses

10,584

10,17869,32373,077

Gain on sales of non-current assets－

393

Total extraordinary income

－

393

1,989

121

Loss on building reconstruction

835

260

Loss on transfer of non-current assets

1,091

－

Total extraordinary losses

3,916

381

Profit before income taxes

65,40773,090

Income taxes - current

23,26324,388

Income taxes - deferred(4,385)(934)

Total income taxes

18,87723,454

Profit46,52949,636655

749

45,87348,886

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

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss

Profit attributable to non-controlling interests
Profit attributable to owners of parent

12

(Consolidated Statements of Comprehensive Income)(Millions of yen)

ProfitFiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
46,52949,636

Valuation difference on available-for-sale securities

2,201(3,804)

Deferred gains or losses on hedges

(521)
(0)
(216)

1,303

98

(442)

(296)

(660)

1,265

(3,551)47,79546,08447,20145,299594

785

Other comprehensive income

Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(0)52

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests13

(3) Consolidated Statements of Changes in Net Assets
FY2018 (From April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

117,072

110,316221

221

Total shareholders'

Treasury shares

275,299

equity(10,004)

492,683

Changes of items during period
Issuance of new shares

442

Dividends of surplus(13,602)(13,602)45,87345,873

Profit attributable to owners ofparentPurchase of treasury shares(8,783)(8,783)

Disposal of treasury shares--

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

221

221

32,271(8,783)23,930117,293

110,537

307,570(18,787)

516,613

Accumulated other comprehensive income
Valuation
Total
difference

DeferredForeign
Revaluationon

gains orlosses onof defined benefit

other

plans

comprehensive

translation
land

for-saleaccumulated

currency
reserve foravailable-

Remeasurements

hedges

Share

Non-

acquisition

controllingrightsinterests

2,424

11,067

Total net assets

adjustment

incomesecurities

Balance at beginning of current
period

4,516

262

7,860

(225)

(3,605)8,807

514,982

Changes of items during period
Issuance of new shares

442

Dividends of surplus(13,602)

Profit attributable to owners of

45,873parentPurchase of treasury shares(8,783)

Disposal of treasury shares-

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

2,202

(521)

(0)

(451)

98

1,327

(77)

1,400

2,649

2,202

(521)

(0)

(451)

98

1,327

(77)

1,400

26,579

6,718

(259)

7,860

(677)

(3,507)

10,134

2,346

12,467

541,56214

FY2019 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

117,293

110,537

528

528

Total shareholders'

Treasury shares

307,570

equity(18,787)

516,613

Changes of items during period
Issuance of new shares

1,056

Dividends of surplus(14,375)(14,375)

48,886

48,886

Profit attributable to owners ofparentPurchase of treasury shares(8,573)(8,573)

Disposal of treasury shares

21

21

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

528

528

34,510(8,551)27,016

117,822

111,065

342,081(27,339)543,630

Accumulated other comprehensive income
Valuation
Total
difference

DeferredForeign
Revaluationon

gains orlosses onof defined benefit

other

plans

comprehensive

translation
land

for-saleaccumulated

currency
reserve foravailable-

Remeasurements

hedges

Share

Non-

acquisition

controllingrightsinterests

2,346

12,467

Total net assets

adjustment

incomesecurities

Balance at beginning of current
period

6,718

(259)

7,860

(677)

(3,507)

10,134

541,562

Changes of items during period
Issuance of new shares

1,056

Dividends of surplus(14,375)

Profit attributable to owners of

48,886parentPurchase of treasury shares(8,573)

Disposal of treasury shares

21

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period(3,803)

1,303

(0)

(644)

(442)

(3,587)

(495)

624

(3,458)(3,803)

1,303

(0)

(644)

(442)

(3,587)

(495)

624

23,557

2,915

1,044

7,860

(1,322)(3,950)

6,547

1,850

13,091

565,120

15

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from operating activities
Profit before income taxes

65,40773,090Depreciation

19,201

19,805

Impairment loss

1,989

121

－

(393)

(167)

(313)

0

(19)

(9)

(7)

(87)

(15)
513

Interest and dividend income

(291)
(114)

(208)

Interest expenses

8,753

8,788

Decrease (increase) in trade receivables(8,922)

1,266

Decrease (increase) in inventories

32,938Decrease (increase) in equity investments(8,454)(53,594)(12,916)

Increase (decrease) in trade payables

11,781

40,258

Increase (decrease) in deposits received

8,102

8,648

Other, net(8,105)(2,670)Subtotal

122,023

82,352

Loss (gain) on sales of non-current assets
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

Interest and dividends received

257

390

(8,181)(24,134)(8,197)(17,927)

89,96456,618(4,971)(15,779)

143

1,375

(21,544)(3,461)

－

(85)

520

－

(20,824)(20,363)

0

7,819

(649)

(2,393)

951

2,492

Repayments of lease and guarantee deposits received(3,859)(2,797)

Proceeds from lease and guarantee deposits received

3,219

3,272

Other, net

314

(569)
(30,490)

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
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
Proceeds from 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(46,699)

Net cash provided by (used in) investing activities

16

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from financing activities
Repayments of finance lease obligations(8,000)(160)(4,000)(235)

Proceeds from long-term borrowings

112,500

14,500

Repayments of long-term borrowings(68,300)(54,500)

Proceeds from issuance of shares

122

524

Proceeds from sales of treasury shares－

22(8,790)(13,602)(44)

Net increase (decrease) in short-term borrowings

Net increase (decrease) in cash and cash equivalents

56,983(8,631)(14,375)(125)(66,821)(24)(40,718)

Cash and cash equivalents at beginning of period

61,347

118,330

Cash and cash equivalents at end of period

118,330

77,611

Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities

13,723

Effect of exchange rate change on cash and cash equivalents

(5)

17

(5) Notes to Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Consolidated Statements of Income)*1 Closing inventory is the amount after devaluation of the book value in connection with decline in profitability, and the following loss on
valuation of inventories is included in the cost of sales.
(Millions of yen)
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019

to March 31, 2020)-

22(Real Estate for Rent)
Some of the Company’s consolidated subsidiaries own rental office buildings and rental retail facilities (including land) in Tokyo and otherregions. Some rental office buildings are regarded as properties including the portion used as rental properties since they are used by theCompany and certain consolidated subsidiaries.
The book values in the Consolidated Balance Sheet, changes during the fiscal year, and fair values of these rental properties and properties
including the portion used as rental properties are as follows.
(Millions of yen)
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019

to March 31, 2020)

Real estate for rentBook value in the consolidated balance sheets
Balance at the beginning of the fiscal year

794,478

703,232

Changes during the fiscal year

(91,246)(22,130)

Balance at the end of the fiscal year

703,232

681,101

878,919859,620

26,026

26,12598(258)

26,12525,86755,82057,030Fair value at the end of the fiscal year
Properties including the portion used as real estate for rentBook value in the consolidated balance sheets
Balance at the beginning of the fiscal year
Changes during the fiscal year
Balance at the end of the fiscal year
Fair value at the end of the fiscal year

(Notes) 1. Book values in the consolidated balance sheet are the amounts determined by deducting accumulated depreciation from theacquisition cost.
2. Fair values as of March 31, 2019 and 2020 are determined based primarily on values according to Real Estate Appraisal Standards(including adjustments based on certain indexes). However, if no significant fluctuations in certain appraisal values or indexes
considered to appropriately reflect market values have occurred since the time of acquisition from third party or the time of themost recent appraisal, the Group bases the fair value on an amount that has been adjusted using the aforesaid values or indexes.
Income and loss on rental properties and other properties used as rental properties are as follows.
(Millions of yen)
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019

to March 31, 2020)

Rental properties
Operating profit
Others (gains (losses) on sale of property, etc.)

29,16924,908

(52)

-

1,094

1,135

Other properties used as rental properties
Operating profit

18

Others (gains (losses) on sale of property, etc.)--(Notes) 1. As real estate of which some portions are used as rental property includes portions used by the Company and certain consolidated
subsidiaries for providing services as well as management and administration, operating profit for this type of real estate is notrecorded.
2.

Others include impairment loss (38 million yen) in the fiscal year ended March 31, 2019.

(Segment Information)【Segment information】
I FY2018 (From April 1, 2018 to March 31, 2019)
1. Information regarding sales, gains or losses, assets, liabilities and other items 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
Externalcustomers

374,473

169,587

9,639

35,15779,557

668,41594

668,510-

668,510

899

2,024

2

2,141

11,816

16,8840

16,885(16,885)-

375,373

171,612

9,641

37,29891,374685,300

94

685,395(16,885)

668,51025,06937,600

5,943

8,170

7,434

84,219(43)

84,176(5,013)

79,162

(37)

204

-

-

-

167

-

167

-

167

-

238

26

-

29

294

-

294

-

294

25,032

38,043

5,969

8,170

7,464

84,680(43)

84,637(5,013)

79,623

463,277

1,086,064

42,46328,22842,294

1,662,328

929

1,663,258

96,197

1,759,455

455

16,938

49

506

542

18,493

2

18,495705

19,201

Investment in affiliates
accounted for using
equity method

20,474

7,461

-

76

-

28,012-28,012

114

28,127

Increase in property,
plant and equipment
and intangible assets

537

16,816

10

488

755

18,60919

18,628

1,148

19,776

Inter-segment
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
Segment assets
Other items
Depreciation(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. (1) The deduction of 5,013 million yen shown in the adjustments column for segment profit or loss includes an increase inelimination of intersegment transactions of 2,642 million yen and a deduction of 7,655 million yen for corporate expenses notallocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
(2) The addition of 96,197 million yen shown in the adjustments column for segment assets includes a deduction of 49,241
million yen for the elimination of inter-segment transactions and an addition of 145,439 million yen for corporate assets notallocated to each reportable segment.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity

19

method + amortization of intangible assets associated with corporate acquisitions
FY2019 (From April 1, 2019 to March 31, 2020)(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Commercial

Adjustments
Total

Brokerage
Development Real Estate

Other

Property &Investment
Facility

Subtotal(Note) 1

Management& CRE

Management

37,22980,589consolidated
financial(Note) 2

statements(Note) 3

Operating revenue
Externalcustomers

333,914

212,534

12,058676,327

168

676,495-

676,495

795

3,286

0

1,880

12,39318,3560

18,356(18,356)-

334,710

215,820

12,05939,11092,982

694,683168

694,852(18,356)

676,495

24,92538,669

6,853

9,117

8,089

87,656(106)

87,549(5,644)81,905

(20)

279

-

(8)

62

313

-

313

-

313

-

289

296

-

29

614

-

614

-

614

24,90539,238

7,149

9,109

8,181

88,584(106)

88,478(5,644)

82,833505,710

1,126,619

43,053

19,13644,474

1,738,995

937

1,739,933

61,3401,801,273

531

16,712

297

507

658

18,7072

18,7101,094

19,805Investment in affiliates
accounted for using
equity method

47,940

7,997

-

75

98

56,111-

56,111

315

56,427

Increase in property,
plant and equipment
and intangible assets

738

16,452

181

405

1,770

19,54814

19,563796

20,360Inter-segment
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
Segment assets
Other items
Depreciation(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. (1) The deduction of 5,644 million yen shown in the adjustments column for segment profit or loss includes an increase inelimination of intersegment transactions of 2,120 million yen and a deduction of 7,764 million yen for corporate expenses notallocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
(2) The addition of 61,340 million yen shown in the adjustments column for segment assets includes a deduction of 45,897
million yen for the elimination of inter-segment transactions and an addition of 107,237 million yen for corporate assets notallocated to each reportable segment.
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【Notes relating to changes in reportable segments etc.】
From this consolidated fiscal year, Leasing Business Unit has been renamed Commercial Real Estate Business Unit. Nomura Real
Estate Life & Sports Co., Ltd., and the senior business of Nomura Real Estate Wellness Co., Ltd. and Nomura Real Estate Development
Co., Ltd., which had been classified under the Property & Facility Management Business Unit, have been reclassified under theCommercial Real Estate Business Unit and the Residential Development Business Unit, respectively. The rental housing business of20

Nomura Real Estate Development Co., Ltd., which had been classified under the Commercial Real Estate Business Unit, has been
reclassified under the Residential Development Business Unit.
The segment information for the previous consolidated fiscal year is prepared and disclosed based on the calculation methods after thischange.
【Notes relating to changes in profit or loss calculation methods for each reportable segment】
From this consolidated fiscal year, the Company changed the method of calculation of profit or loss for each reportable segment to"Business profit and loss" in consideration of profit or loss in overseas business and amortization associated with mergers and acquisitions.
The effect of this change on segment profit or loss (business profit and loss) for the fiscal year ended March, 2020 was insignificant.
The segment information for the fiscal year ended March, 2019 is prepared and disclosed based on the calculation methods after thischange.
【Related information】
FY2018 (From April 1, 2018 to March 31, 2019)
Information by major customer(Millions of yen)
Name of customer

Operating revenue

Relevant segment

Nomura Real Estate Master Fund, Inc.

73,523

Commercial Real Estate Business

FY2019 (From April 1, 2019 to March 31, 2020)
Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% or more of operating
revenue in the consolidated statements of income.
【Impairment loss on noncurrent assets by reportable segment】
FY2018 (From April 1, 2018 to March 31, 2019)(Millions of yen)
Property &Residential

Commercial

Investment

Property

Development

Real EstateManagement

Brokerage & CRE

Impairment loss

-

1,989

Facility-

Total

Management

-

-

1,989

FY2019 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Property &Residential

Commercial

Investment

Property

Development

Real EstateManagement

Brokerage & CRE

Facility

Total

Management

Impairment loss

-

121

-

-

-

121

(Per Share Information)
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)

Net assets per share

2,854.21 yen

3,031.15 yen

Basic earnings per share

245.99 yen

267.21 yen

Diluted earnings per share

244.55 yen

265.88 yen(Note) The basis for the calculation of basic earnings per share and diluted earnings per share is as follows.
FY2018FY2019(From April 1, 2018

(From April 1, 2019

to March 31, 2019)

to March 31, 2020)21

Basic earnings per share
Profit attributable to owners of parent (Millions of

45,87348,886--45,87348,886

186,489

182,954

-

-

1,097

913

1,097

913

Description of potentially dilutive common shares

Nomura Real Estate Holdings, Inc. theNomura Real Estate Holdings, Inc. thenot included in the computation of diluted earnings

3rd Stock Acquisition Rights in

3rd Stock Acquisition Rights inper share because of their anti-dilutive effect

FY2013 (Number of rights: 2,188)

FY2013 (Number of rights: 1,664)

Nomura Real Estate Holdings, Inc. theNomura Real Estate Holdings, Inc. the

3rd Stock Acquisition Rights in

3rd Stock Acquisition Rights in

FY2015 (Number of rights: 3,705)

FY2015 (Number of rights: 3,238)

Nomura Real Estate Holdings, Inc. theNomura Real Estate Holdings, Inc. the

5th Stock Acquisition Rights in

3rd Stock Acquisition Rights in

FY2015 (Number of rights: 230)

FY2017 (Number of rights: 4,418)

yen)Profit not attributed to common shareholders(Millions of yen)
Profit attributable to owners of parent available tocommon stock (Millions of yen)
Average number of shares of common stock
outstanding during the period(Thousand shares)
Diluted earnings per share
Adjustment for profit attributable to owners of parent(Millions of yen)
Increase in number of shares of common stock(Thousand shares)
Of which, stock acquisition rights(Thousand shares)

Nomura Real Estate Holdings, Inc. the
3rd Stock Acquisition Rights in
FY2017 (Number of rights: 4,514)(Note)For the purposes of calculating net assets per share, the Company’s shares owned by the executive compensation BIP (Board
Incentive Plan) trust and ESOP (Employee Stock Ownership Plan) are included in the treasury shares deducted from the total
number of shares issued at end of period. In calculating the basic earnings per share and diluted earnings per share, the said sharesare included in the treasury shares deducted in the calculation of the average number of shares outstanding during the period. For
the fiscal year ended March 31, 2020, the number of the treasury shares at the end of period deducted in calculating net assets per
share was 1,968 thousand shares, and the average number of treasury shares during the period deducted in calculating the basic
earnings per share and diluted earnings per share was 1,937 thousand shares.

(Significant Subsequent Events)
Prolonged exposure to the spread of novel coronavirus disease (COVID-19) could have a material effect on business results and financial
position of the Company and its consolidated subsidiaries. As of the submission date, it is difficult to estimate the scope and amount of the
impact that can be reasonably calculated.

22