October 27, 2016

Outline of Consolidated Financial Statements
For the Six Months from April 1 to September 30, 2016
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

IR contact :Naoko Usami,
General Manager of Corporate Communications Dept.
info@nomura-re-hd.com

Scheduled submitting date of quarterly securities report :November 9, 2016

Scheduled starting date for dividend payments :December 1, 2016

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, 2016
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating income

Profit attributable toOrdinary income

owners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2016248,178(15.3)

33,399(18.0)

29,166(20.3)

20,116(10.5)FY2015292,905

20.5

40,751

39.5

36,59948.1

22,46892.3

First six months(Note) Comprehensive income:From April 1 to September 30, 2016 ¥20,894 million (down 10.5%)
From April 1 to September 30, 2015 ¥23,345 million (up 42.7%)
Earnings per share after
adjusting for dilution

Earnings per shareFirst six months

yen

yen

FY2016104.92104.51FY2015117.45116.96(2) Consolidated financial status
Total assets

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Sep. 30, 2016

1,536,254

472,103

29.9

Mar. 31, 2016

1,485,449

456,408

29.9(Reference) Shareholders’ equity:

At September 30, 2016 ¥ 459,970 million

1

At March 31, 2016 ¥444,854 million

II. Dividends
Dividend per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

yen

yen

yen

yen

FY2015

―

27.50

―

30.00

57.50

FY2016

―

30.00
―

30.00

60.00

FY2016(Forecast)(Note) Revision of dividend forecasts during this quarter: NoneIII. Forecasts of Consolidated Operating Results for the Fiscal Year from April 1, 2016 to March 31, 2017(% indicates the rate of changes from previous fiscal year or term)

Operating revenue

FY2016

Operating income

Profit attributable toOrdinary income

owners of parent

Earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

585,000

2.7

76,000(6.1)

67,000(7.8)

43,000(8.9)

224.22(Note) Revision of operating result forecasts during this quarter: Yes* 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.

: None2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

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

Number of shares outstanding (including treasury shares)

2)

Treasury shares

3)

Average number of shares during the term

At September 30

At March 31

2016

2015

191,816,701

191,679,601

1,601

1,508

From April 1 toFrom April 1 to

September 30

September 30

2016

2015

191,735,281

2

191,304,867

* 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 detail of forecasts, please 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 27, 2016 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. Quarterly Consolidated Financial Statements ............................................................................................................................................

8(1) Quarterly Consolidated Balance Sheets ........................................................................................................................................

8(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income........

10

Quarterly Consolidated Statements of Income
Six Months from April 1 to September 30, 2016 ....................................................................................................................

10

Quarterly Consolidated Statements of Comprehensive Income
Six Months from April 1 to September 30, 2016 ....................................................................................................................

11(3) Quarterly Consolidated Statement of Cash Flows ......................................................................................................................

12(4) Notes to Quarterly Consolidated Financial Statements ..............................................................................................................

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

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

14(Segment Information) ....................................................................................................................................................................

141

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group posted the following consolidated performance for the current second quarter: Operating revenue of
248,178 million yen, which represents a decrease of 44,727 million yen, or 15.3% year on year; operating income of 33,399 million yen,a decrease of 7,352 million yen, or 18.0%; ordinary income of 29,166 million yen, a decrease of 7,432 million yen, or 20.3 %; and profit
attributable to owners of parent of 20,116 million yen, a decrease of 2,351 million yen, or 10.5%.
An overview of unit achievements is given below:
Operating revenue for each unit includes internal sales and transfer amount among units. Due to the rounding of fractions, total
figures may not match.
From the first quarter of the current accounting period, Yokohama Business Park Heating and Cooling Supply Co., Ltd., which had
been classified under the Leasing Unit, was transferred to the Property & Facility Management Unit to promote business in conjunction
with the property and management business. Yokohama Business Park Heating and Cooling Supply Co., Ltd changed its corporate nameto Nomura Real Estate Heating & Cooling Supply Co., Ltd on October 1, 2016.
The results of the second quarter and full-year of the previous fiscal year were calculated under the newly adopted unit classification.
<Residential Development Unit>
Operating revenue in this unit totaled 134,065 million yen, which represents a decrease of 58,811 million yen, or 30.5% year on year,
and operating income was 10,665 million yen, a decrease of 10,645 million yen, or 50.0%. This was mainly due to a decrease of thenumber of housing units recorded, while both prices of housing unit recorded and gross margin increased.
We posted the sale of 2,006 units (a decrease of 1,411 units year on year), including PROUD TOWER Tachikawa (Tachikawa-shi,
Tokyo), PROUD CITY Shiki-Honcho (Shiki-chi, Saitama), PROUD CITY Asagaya (Suginami-ku, Tokyo), PROUD Sekime(Joutou-ku,Osaka-shi, Osaka) for condominiums, and PROUD SEASON Chitose-Karasuyama Hikari no Machi (Setagaya-ku, Tokyo)
for detached houses. The contract progress rate for the planned 5,650 units of this consolidated fiscal year was 77.1 % as of the end of thecurrent second quarter.
The number of sold but not recorded housing units totaled 3,762 units as of the end of the current second quarter (an increase of 128
units over the end of the previous second quarter).
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
FY2015 2Q
Housing units soldFY2016 2Q

Operating revenue

Housing units sold(Millions of yen)

Housing
sales

Tokyo

FY2015

Operating revenue

Housing units sold(Millions of yen)

Operating revenue(Millions of yen)

3,120 units

171,211

1,620 units

103,608

4,721 units

260,494

Kansai area

232 units

9,321

168 units

8,942

857 units

38,223

Other

64 units

3,316

217 units

10,445427 units

20,078Subtotal

3,417 units

183,849

2,006 units

122,996

6,006 units

318,795(Detached houses)(174 units)(11,795)(185 units)(11,416)(643 units)(39,514)

metropolitan area

Other
Total

9,027

11,06915,719

192,876

134,065

334,5142

Housing sales Period-end completed housing inventories
As of September 30, 2015

As of September 30, 2016

As of March 31, 2016

Tokyo metropolitan area

133 units

613 units

285 units

Kansai area

13 units

55 units

38 units

Other

13 units

43 units

25 units

Total

160 units

712 units

349 units(Detached houses)(59 units)(110 units)(140 units)

Housing sales Sold but not recorded housing units
As of September 30, 2015

As of September 30, 2016

Outstanding

Outstanding

Housing units

contract amount

Housing units(Millions of yen)contract amount

As of March 31, 2016
Outstanding
Housing units(Millions of yen)contract amount(Millions of yen)

Tokyo metropolitan area

2,508 units

152,360

2,729 units

165,196

2,569 units

162,146

Kansai area

688 units

31,077587 units

27,912535 units

26,577Other

437 units

19,881445 units

23,528389 units

21,235

Total

3,634 units

203,318

3,762 units

216,637

3,493 units

209,959(Detached houses)(106 units)(6,508)(243 units)(12,728)(74 units)(4,613)<Leasing Unit>
Operating revenue in this unit totaled 52,387 million yen, which represents an increase of 9,750 million yen, or 22.9% year on year,
and operating income totaled 14,693 million yen, an increase of 1,686 million yen, or 13.0%.
This was mainly due to an increase in rental revenue lead by improvement of vacancy rate etc. and an increase in the number ofproperties sold in the property development business.
From the first quarter of the current accounting period, Yokohama Business Park Heating and Cooling Supply Co., Ltd., which had
been classified under the Leasing Unit, was transferred to the Property & Facility Management Unit. In accordance with this change, thefigures for the second quarter and full year results of the previous fiscal year were calculated under the new classification..
Breakdown of operating revenue
FY2015 2Q

FY2016 2Q

FY2016(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

24,69525,52149,594

Leasing (retail facilities)

5,351

5,725

10,873

Leasing (other)

2,922

2,927

5,882

Property development (sale)

4,496

13,62633,260Property development (leasing)

1,842

1,855

3,320

Other

3,327

2,731

7,295

42,63652,387110,226

Total

3

Rentable area
As of September 30, 2015

As of September 30, 2016

As of March 31, 2016

Offices

828,171 ㎡

831,891 ㎡

829,312 ㎡

Retail facilities

108,178 ㎡

144,797 ㎡

144,815 ㎡

936,348 ㎡

976,688 ㎡

974,127 ㎡

Total

Vacancy rate (offices and retail facilities)
As of September 30, 2015

As of September 30, 2016

As of March 31, 2016

3.4%

1.2%

2.2%

<Investment Management Unit>
Operating revenue in this unit totaled 5,193 million yen, which represents an increase of 96 million yen, or 1.9 % year on year, andoperating income totaled 3,416 million yen, an increase of 44 million yen, or 1.3%.
The assets under management increased from the previous second quarter, due to the merger between Nomura Real Estate Master
Fund, Inc. and Top REIT, Inc. in September 2016.
FY2015 2Q

FY2016 2Q

FY2015(Millions of yen)

(Millions of yen)

(Millions of yen)

Operating revenue

5,096

5,193

10,973

Assets under management
As of September 30, 2015

As of September 30, 2016

As of March 31, 2016

(Millions of yen)

(Millions of yen)

(Millions of yen)

REITs

1,024,271

1,183,442

1,012,630

73,102

62,79461,851

1,097,374

1,246,237

1,074,481

Private funds, etc.
Total

<Property Brokerage & CRE Unit>
Operating revenue in this unit totaled 16,886 million yen, which represents an increase of 1,878 million yen, or 12.5% year on year,
and operating income totaled 4,457 million yen, an increase of 1,050 million yen, or 30.8%. This was due mainly to an increase in thenumber and amount of property brokerage transactions.
In terms of the wholesale operations, the operation was conducted by both the Corporate Real Estate Service Division, Nomura Real
Estate Development Co., Ltd.. and Nomura Real Estate Urban Net Co.,Ltd. up to present, however, the reorganization was undertaken
effective on October 1, 2016, integrating offices, employees and functions into the Corporate Real Estate Service Division, Nomura Real
Estate Development Co., Ltd..
In the retail operations, we opened the following new branch stores in April 2016: Iidabashi Center (Chiyoda-ku, Tokyo) and Toyonaka
Center (Toyonaka-shi, Osaka).
Breakdown of operating revenue
FY2015 2Q

FY2016 2Q

FY2015(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

12,636

14,87328,028

Other

2,371

2,012

7,345

15,007

16,88635,373

Total

Number of transactions and total transaction value of property brokerage
FY2015 2Q
Number of transactions
Total transaction value (Millions of yen)

FY2016 2Q

FY2015

3,732

4,067

7,710

315,924

371,729

713,5744

<Property & Facility Management Unit>
Operating revenue in this unit totaled 45,665 million yen, which represents an increase of 2,545 million yen, or 5.9% year on year, andoperating income totaled 3,002 million yen, an increase of 444 million yen, or 17.4%. This was due mainly to an increase in the numberof construction ordered.
In fitness club business sector, we opened MEGALOS_0+ Ebisu (Shibuya-ku, Tokyo) in April 2016, and MEGSLOS_Reflet Ebisu(Shibuya-ku, Tokyo) in June 2016.
From the first quarter of the current accounting period, Yokohama Business Park Heating and Cooling Supply Co., Ltd., which had
been classified under the Leasing Unit, was transferred to the Property & Facility Management Unit. In accordance with this change, thefigures for the second quarter and full year results of the previous fiscal year were calculated under the new classification.
Breakdown of operating revenue
FY2015 2Q

FY2016 2Q

FY2015(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

23,73824,00947,952

Construction ordered

9,994

11,62024,636

Fitness club & elderly care

7,408

7,692

14,995

Other

1,978

2,343

3,967

43,12045,66591,552

Total

Number of properties under management
As of September 30, 2015

As of September 30, 2016

736

708

705

160,100

165,801

163,036

Buildings under management
Condominiums under management (unit)

As of March 31, 2016

<Other Business Unit>
Operating revenue in this unit totaled 53 million yen, which represents a decrease of 719 million yen, or 93.1% year on year, andoperating loss totaled 17 million yen (the previous second quarter was operating loss of 80 million yen).

5(2) Financial Position
As of March 31, 2016

As of September 30, 2016

Changes

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

Total assets

1,485,449

1,536,254

50,804

3.4

Total liabilities

1,029,041

1,064,150

35,109

3.4

Net assets

456,408

472,103

15,694

3.4

Shareholders' equity ratio

29.9%

29.9%

-

-

Total assets totaled 1,536,254 million yen, an increase of 50,804 million yen from the end of the previous fiscal year. This was mainly
due to an increase in inventories (increased by 41,714 million yen) and land (increased by 15,221 million yen) while cash and deposit(decreased by 12,488 million yen) decreased.
Total liabilities totaled 1,064,150 million yen, an increase of 35,109 million yen from the end of the previous fiscal year. This was
mainly due to an increase in long-term loans payable (increased by 34,600 million yen) and short-term loans payable (increased by
13,100 million yen), while deposits received (decrease by 14,118 million yen) decreased.
Net assets totaled 472,103 million yen, an increase of 15,694 million yen from the end of the previous fiscal year. This was mainly due
to an increase in earned surplus (increased by 14,365 million yen). The shareholders' equity ratio was 29.9%.
(Cash Flows)
Cash and cash equivalents as of the end of the current second quarter totaled 45,103 million yen, which represents a decrease of 12,488
million yen from the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 47,337 million yen (a decrase of 84,775 million yen year on year).
This was mainly due to a decrease in deposits received, while inventories increased.
Net cash provided by (used in) investment activities decreased by 26,892 million yen (an increase of 3,262 million yen year on year).
This mainly reflected the purchase of property, plant and equipment and intangible assets.
Net cash provided by (used in) financing activities increased by 61,779 million yen (an increase of 75,154 million yen year on year).
This is due mainly to fundraising including long-term and short-term loans and issuance of bonds.

6

(3) Consolidated Operating Result Forecasts
The consolidated operating result forecasts for the fiscal year ending March 31, 2017 were revised from the figures announced on April
28, 2016, in light of the fact that the performance of Investment Management Units is expected to grow more than the initial forecasts
while the performance of Residential Development Unit is expected to lower than the initial forecasts.
<Consolidation>
The Group expects the following consolidated performance for the fiscal year ending March 31, 2017: Operating revenue of 585,000
million yen; operating income of 76,000 million yen; ordinary income of 67,000 million yen; and profit attributable to owners of parentof 43,000 million yen.
Changes from the previous consolidated result forecasts are as follows:
Profit attributable

Operating revenue

Operating income

Ordinary income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)589,000

76,00067,00043,000224.33

Revised forecasts (B)585,000

76,00067,00043,000224.22

Changes (B-A)(4,000)

-

-

-

-

Changes (%)

(0.7)

-

-

-

-

569,545

80,912

72,67947,182

246.42

Actual results for theprevious fiscal year

Earnings per shareto owners of parent<By business unit>
Forecasts for the fiscal year ending March 31, 2017 by business unit are as follows:
Operating revenue
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

339,000

336,000(3,000)

Leasing

121,000

119,000(2,000)Investment Management

8,000

9,000

1,000

Property Brokerage & CRE

35,00036,0001,000

Property & Facility Management

96,00097,000

1,000

0

0

-

Adjustments(10,000)(12,000)(2,000)

Total

589,000

585,000(4,000)

Other

Operating income
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

30,50029,000(1,500)

Leasing

30,50030,500-Investment Management

4,500

5,500

1,000

Property Brokerage & CRE

8,500

9,000

500

Property & Facility Management

6,000

6,500

500

0

0

-

Adjustments(4,000)(4,500)

(500)

Total

76,00076,000

-

Other

7

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
FY2015FY2016 2Q(As of March 31, 2016)(As of September 30, 2016)

AssetsCurrent Assets
Cash and deposits

57,59345,105

Notes and accounts receivable-trade

15,371

15,565

Real estate for sale78,132

115,735

Real estate for sale in process

269,546

270,438

Land held for development

148,729

152,129

Equity investments

819

2,323

Deferred tax assets

5,285

4,506

Other

33,33835,924

Allowance for doubtful accounts

(38)

(36)

608,779

641,691

Buildings and structures, net

235,068

232,335

Land

523,696

538,918

Total current assets
Noncurrent Assets
Property, plant and equipment

Other, net

20,32526,747

Total property, plant and equipment

779,091

798,001

10,681

10,935Investment securities

45,511

44,106

Lease and guarantee deposits

21,37921,577

Deferred tax assets

14,84014,957

Other

5,167

4,984

(0)

(0)

Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total Assets

8

86,89785,625876,670

894,562

1,485,449

1,536,254

(Millions of yen)
FY2015FY2016 2Q(As of March 31, 2016)(As of September 30, 2016)

Liabilities
Current Liabilities
Notes and accounts payable-trade51,162

42,998

Short-term loans payable

137,300

150,400

Income taxes payable

13,232

7,949

Deposits received

29,617

15,499Deferred tax liabilities

17

16

Provision for bonuses

7,073

7,280

Provision for directors' bonuses

738

300

Provision for loss on business liquidation

61

54

Other

49,90342,760Total current liabilities

289,107267,259

Noncurrent Liabilities
Bonds payable

60,00080,000Long-term loans payable

524,600

559,200

Lease and guarantee deposits received

63,76664,739Deferred tax liabilities

64,07065,695

Deferred tax liabilities for land revaluation

3,900

3,900

Provision for loss on subleasing business

313

288

Net defined benefit liability

18,01817,863

Other

5,264

5,204

Total noncurrent liabilities

739,933

796,8901,029,041

1,064,150

Capital stock

116,598

116,728

Capital surplus

109,842

109,971Retained earnings

207,203

221,569(3)(3)

433,642448,265

Valuation difference on available-for-sale securities

6,664

6,887

Deferred gains or losses on hedges

155

283

Revaluation reserve for land

Total Liabilities
Net Assets
Shareholders' Equity

Treasury shares
Total shareholders' equity
Accumulated Other Comprehensive Income

7,861

7,861

Foreign currency translation adjustment

43

12

Remeasurements of defined benefit plans(3,513)(3,339)Total accumulated other comprehensive income

11,212

11,705

Subscription Rights to Shares

1,685

2,005

Non-Controlling Interests

9,868

10,126456,408

472,103

1,485,449

1,536,254

Total Net Assets
Total Liabilities and Net Assets

9(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, 2016)(Millions of yen)
FY2015 2Q

FY2016 2Q(From April 1 to(From April 1 to

September 30, 2015)

September 30, 2016)

Operating Revenue

292,905

248,178

Operating Cost

203,824

167,708

Operating Gross Profit

89,08180,470

Selling, General and Administrative Expenses

48,32947,071

Operating Income

40,75133,399Interest income

3125

Dividends income

838

79

Equity in earnings of affiliates

16

83

Other

123

142

Total non-operating income

1,009

331

Interest expenses

4,025

3,886

Other

1,136

677

Total non-operating expenses

5,161

4,563

36,59929,166

Gain on sales of noncurrent assets-

945

Total extraordinary income-

945

Loss on valuation of investment securities

274-

Total extraordinary losses

274-

Income before Income Taxes and Minority Interests

36,324

30,112

Income Taxes - Current

11,924

7,655

Income Taxes - Deferred

379

2,055

Total Income Taxes

12,304

9,711

Profit24,02020,401

Non-Operating Income

Non-Operating Expenses

Ordinary Income
Extraordinary Income

Extraordinary Losses

Profit Attributable to Non-Controlling Interests

1,552

285

Profit Attributable to Owners of Parent

22,468

20,11610

(Quarterly Consolidated Statements of Comprehensive Income)(Six Months from April 1 to September 30, 2016)(Millions of yen)
FY2015 2Q

Profit

FY2016 2Q(From April 1 to(From April 1 to

September 30, 2015)

September 30, 2016)

24,02020,401

Valuation difference on available-for-sale securities

(556)

222

Deferred gains or losses on hedges

(21)

127

Revaluation reserve for land

(0)

(0)

Foreign currency translation adjustment

4

(30)

(101)

173

Other Comprehensive Income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

(675)

492

23,34520,894Comprehensive income attributable to owners of parent

21,792

20,609Comprehensive income attributable to non-controlling interests

1,552

284

Comprehensive Income(Breakdown)11(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
FY2015 2Q

FY2016 2Q(From April 1 to(From April 1 to

September 30, 2015)

September 30, 2016)

Cash Flows from Operating Activities
Income before income taxes and minority interests

36,324

30,112

Depreciation and amortization

7,898

8,332

Equity in (earnings) losses of affiliates

(16)

(83)

0

(2)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on business liquidation

(10)

(6)

Increase (decrease) in provision for loss on subleasing business

(59)

(24)

Increase (decrease) in net defined benefit liability

(91)

(155)

Interest and dividends income

(869)

(105)

Interest expenses

4,025

3,886

Decrease (increase) in notes and accounts receivable-trade(19,746)(195)

Decrease (increase) in inventories(2,878)(41,714)

Decrease (increase) in equity investments

5,310(1,504)

Increase (decrease) in notes and accounts payable-trade(12,041)(8,163)

Increase (decrease) in deposits received

39,224(14,118)

Other, net(3,162)(5,806)

Subtotal

53,906(29,549)858

99Interest expenses paid

(3,998)(3,955)

Income taxes paid

(13,328)(13,932)

Net cash provided by (used in) operating activities

37,438(47,337)

Interest and dividends income received

Cash Flows from Investing Activities
Purchase of investment securities

(356)

(517)

Proceeds from sales and liquidation of investment securities

2,377

1,329

Purchase of shares of subsidiaries resulting in change in scope of consolidation(9,692)-

Purchase of property, plant and equipment and intangible assets(21,266)(33,669)

5

4,234

Payments for lease and guarantee deposits

(302)

(678)

Proceeds from collection of lease and guarantee deposits

1,050

501

Repayments of lease and guarantee deposits received(1,940)(1,349)Proceeds from lease and guarantee deposits received

2,202

2,254

Other, net(2,232)

1,002

Net cash provided by (used in) investment activities(30,154)(26,892)

Proceeds from sales of property, plant and equipment and intangible
assets12

(Millions of yen)
FY2015 2Q

FY2016 2Q(From April 1 to(From April 1 to

September 30, 2015)

September 30, 2016)

Cash Flows from Financing Activities
Increase (decrease) in commercial papers

4,100

20,500

Repayments of finance lease obligations

(76)

(79)

Proceeds from long-term loans payable

78,00059,000

Repayment of long-term loans payable(59,300)(31,800)

Proceeds from issuance of bonds

9,936

19,869Proceeds from issuance of common stock

404

66

Proceeds from share issuance to non-controlling shareholders

56-

Purchase of treasury shares

(0)

(0)

Cash dividends paid

(4,777)(5,750)

Dividends paid to non-controlling interests(1,465)(26)(40,253)-(13,374)

61,7793(43)

Net Increase (Decrease) in Cash and Cash Equivalents(6,086)(12,493)

Cash and Cash Equivalents at Beginning of Period

50,41857,591-

4

44,33145,103

Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of Exchange Rate Change on Cash and Cash Equivalents

Increase (Decrease) in Cash and Cash Equivalents Resulting from
Change of Scope of Consolidation
Cash and Cash Equivalents at End of Period13(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 FY2015 2Q (Six months from April 1 to September 30, 2015)
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
Subtotal(Note) 1

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
192,551

41,216

5,096

13,71639,550 292,132

Inter-segment

325

1,420

0

1,290

3,570

Subtotal

192,876

42,636

5,096

21,31013,0073,372

External customers

Segment income or
loss

773

292,905-

292,905

6,606

0

6,606

(6,606)-15,007

43,120 298,739

773

299,512(6,606)292,905

3,406

2,558

(80)

43,575(2,823)40,751

43,655(Notes) 1. The “Other” category includes operating segments that are not included in reportable segments.
2. The deduction of 2,823 million yen shown in the adjustments column for segment income or loss includes an addition of 526
million yen for the elimination of inter-segment transactions and a deduction of 3,350 million yen for corporate expenses notallocated to reportable segments. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. The segment income or loss is reconciled to the operating income stated in the Quarterly Consolidated Statements of Income.
2. Impairment loss on noncurrent assets or goodwill by reportable segments
Not applicable.

14

II FY2016 2Q (Six months from April 1 to September 30, 2016)
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

Residential

recorded in

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development

Adjustments
Total

Investment
Subtotal(Note) 1

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
133,868

51,125

5,193

15,88342,053 248,124

53

248,178-

248,178

Inter-segment

196

1,262

-

1,002

3,612

6,073

0

6,073

(6,073)-

Subtotal

134,065

52,387

5,193

16,88645,665 254,198

53

254,251(6,073)

248,178

10,665

14,693

3,416

4,457

3,002

(17)

36,217(2,818)33,399External customers

Segment income orloss

36,235(Notes) 1. The “Other” category includes operating segments that are not included in reportable segments.
2. The deduction of 2,818 million yen shown in the adjustments column for segment income or loss includes an addition of 673
million yen for the elimination of inter-segment transactions and a deduction of 3,491million yen for corporate expenses notallocated to reportable segments. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable 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
Since this first quarter of the current accounting period, Yokohama Business Park Heating and Cooling Supply Co., Ltd., which
had been classified under the Leasing Unit, was transferred to the Property & Facility Management Unit to promote business inconjunction with the property and facility management business.
In this regard, the segment information for the second quarter of the previous accounting period has been prepared in accordancewith the newly adopted segment classification.
3. Impairment loss on noncurrent assets or goodwill by reportable segment
Not applicable.

15