October 26, 2017

Consolidated Financial Results
For the Six Months from April 1 to September 30, 2017
<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:

Naoko Usami,
General Manager, Corporate Communications Dept.

Email:

info@nomura-re-hd.com

Scheduled submitting date of quarterly securities report:

November 10, 2017

Scheduled starting date for dividend payments:

December 1, 2017

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

I.

Consolidated operating results for the six months from April 1 to September 30, 2017
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating profit

Profit attributable toOrdinary profit

owners of parent

First six months ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Sep. 30, 2017273,045

10.0

34,4973.3

30,375

4.1

20,115(0.0)

Sep. 30, 2016

248,178(15.3)

33,399(18.0)

29,166(20.3)

20,116(10.5)(Note) Comprehensive income:From April 1 to September 30, 2017 16,585 million yen (down 20.6%)
From April 1 to September 30, 2016 20,894 million yen (down 10.5%)

Basic earnings

Diluted earnings

per shareper shareFirst six months ended

Yen

Yen

Sep. 30, 2017104.81104.28Sep. 30, 2016

104.92104.51

(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Sep. 30, 2017

1,692,997

504,318

29.0

Mar. 31, 2017

1,593,093

493,81330.2(Reference) Shareholders’ equity:

As of September 30, 2017 491,156 million yen As of March 31, 2017 481,364 million yen

II. Dividends
Dividend per share
1st quarter-end

Fiscal year ended
Mar. 31, 2017
Fiscal year ending
Mar. 31, 2018

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

30.00

-

35.00

65.00

-

35.00

-

35.00

70.00

Fiscal year ending
Mar. 31, 2018
(Forecast)(Note) Revision of dividend forecasts during this quarter: NoneIII. Forecasts of consolidated operating results for the fiscal year from April 1, 2017 to March 31, 2018(% indicates the rate of changes from previous fiscal year or term)

Operating revenue

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

646,000

13.4

76,000(1.6)

67,000(2.8)

44,000(6.4)

229.22

Fiscal year
endingMar. 31, 2018

(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, changes in accounting estimates and restatements
1)

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

: None2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

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

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

2)

3)

As of September 30

As of March 31

2017

2017

191,987,601

191,877,801

1,994

1,709

Treasury shares at end of period

Average number of shares outstanding during the period

From April 1 toFrom April 1 to

September 30

September 30

2017

2016

191,927,100

191,735,281

* Quarterly consolidated financial results are not required to be audited.
* Proper use of forecasts of financial results, and other special matters
Forward-looking statements in this document, including the forecasts of financial results, etc., are based on the information currently
available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges torealize such statements. Actual performance and other results may differ materially from these forecasts due to various factors. For mattersrelated to the forecasts of financial results, please refer to “1. Qualitative Information (3) Consolidated Operating Result Forecasts” on page
6 of the Attachments.
(How to obtain fact sheets)
The fact sheets will be disclosed on TDnet on October 26, 2017 and will be uploaded on the Company's website.

Attachments- Contents
1. Qualitative Information.............................................................................................................................................................................................

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

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

5(3) Consolidated Operating Result Forecasts ................................................................................................................................................

6

2. Quarterly Consolidated Financial Statements and Notes .....................................................................................................................................

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

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

9

Quarterly Consolidated Statements of Income
Six Months from April 1 to September 30, 2017.................................................................................................................................

9

Quarterly Consolidated Statements of Comprehensive Income
Six Months from April 1 to September 30, 2017..............................................................................................................................

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

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

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

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

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

13(Subsequent Events) ....................................................................................................................................................................................

141

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the current second quarter:
Operating revenue of 273,045 million yen, which represents an increase of 24,866 million yen, or 10.0% year on year; operating profit of
34,497 million yen, an increase of 1,098 million yen, or 3.3%; ordinary profit of 30,375 million yen, an increase of 1,209 million yen, or4.1%; and profit attributable to owners of parent of 20,115 million yen, a decrease of 0 million yen, or 0.0%.
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.
<Residential Development Business Unit>
Operating revenue in this business unit totaled 147,483 million yen, which represents an increase of 13,417 million yen, or 10.0% year
on year, and operating profit totaled 10,058 million yen, which represents a decrease of 606 million yen, or 5.7% year on year, resulting in
an increase in operating revenue and decrease in operating profit compared with the previous second quarter.
This was mainly due to a decrease of gross margin while an increase in the number of housing unit sales recorded in the housing sales
business.
In regard to housing sales, we posted the sale of 2,199 units (an increase of 193 units year on year), including PROUD TOWER
Kibakoen (Koto-ku, Tokyo), PROUD TOWER Musashiurawa Residence (Minami-ku, Saitama-shi, Saitama), PROUD Fuchu Station
Arena (Fuchu-shi, Tokyo), PROUD TOWER Nagoya Sakae (Naka-ku, Nagoya-shi, Aichi) for condominiums, and PROUD SEASON
Soshigayaokura (Setagaya-ku, Tokyo) for detached housing. Housing sales is making steady progress and the number of the housing
contracted is 2,828 units (an increase of 552 units, year on year) for the first six months ended September 30, 2017. The contract progress
rate for the planned 6,000 units of this consolidated fiscal year was 76.8% as of the end of the current second quarter.
The number of contracted but not recorded housing units totaled 3,408 units as of the end of the current second quarter (a decrease of
354 units compared with 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.
From the previous third quarter, the classification of the “period-end completed housing inventories” has changed. In accordance withthis change, the figures as of the end of the previous second quarter have been calculated under the new classification.

Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

September 30, 2016

September 30, 2017

March 31, 2017

Operating revenue
Housing units sold

Housingsales(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)Tokyo
metropolitan

1,620 units

103,608

1,752 units

108,821

4,291 units

250,475

area
Kansai area

168 units

8,942

167 units

10,780807 units

35,890Other

217 units

10,445278 units

15,591468 units

22,5942,006 units

122,996

2,199 units

135,193

5,567 units

308,960(185 units)(11,416)(193 units)(12,426)(682 units)(38,735)

Subtotal(Detachedhousing)

Other
Total

11,06912,29020,827

134,065

147,483

329,7872

Housing sales Period-end completed housing inventories (released for sale)
As of September 30, 2016

As of September 30, 2017

As of March 31, 2017

Tokyo metropolitan area

288 units

264 units

187 units

Kansai area

47 units

27 units

38 units

Other

43 units

18 units

25 units

Total

379 units

311 units

252 units(Detached housing)(66 units)(19 units)(13 units)

Housing sales Period-end completed housing inventories (unreleased)
As of September 30, 2016

As of September 30, 2017

As of March 31, 2017Total

332 units

321 units

402 units(Detached housing)(44 units)(-)(33 units)

Housing sales Sold but not recorded housing units
As of September 30, 2016

As of September 30, 2017

Outstanding

Outstanding

Housing units

contract amount

Housing units(Millions of yen)

As of March 31, 2017
Outstanding

contract amount

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

Tokyo metropolitan area

2,729 units

165,196

2,592 units

164,432

2,140 units

140,183

Kansai area

587 units

27,912414 units

19,225219 units

13,859Other

445 units

23,528401 units

18,206420 units

21,851

Total

3,762 units

216,637

3,408 units

201,864

2,779 units

175,895(Detached housing)(243 units)(12,728)(136 units)(7,859)(111 units)(6,489)<Leasing Business Unit >Operating revenue in this business unit totaled 61,160 million yen, which represents an increase of 8,772 million yen, or 16.7% year on
year, and operating profit totaled 15,890 million yen, an increase of 1,197 million yen, or 8.1%, resulting in increases in both operating
revenue and operating profit compared with the previous second quarter.
This was mainly due to an increase in leasing revenue from newly-built properties such as Yokohama Nomura Building (Nishi-ku,
Yokohama-shi, Kanagawa) in the leasing business, as well as an increase in revenues from the sales of properties in the property
development business.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

September 30, 2016

September 30, 2017

March 31, 2017

(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

25,521

26,66851,981

Leasing (retail facilities)

5,725

5,708

11,649

Leasing (other)

2,927

3,363

5,954

Property development (sale)

13,626

20,27535,350Property development (leasing)

1,855

2,315

4,054

Other
Total

2,731

2,828

6,018

52,387

61,160115,0093

Rentable area
As of September 30, 2016

As of September 30, 2017

As of March 31, 2017

Offices

831,891 ㎡

864,802 ㎡

831,177 ㎡

Retail facilities

144,797 ㎡

174,710 ㎡

144,797 ㎡

Total

976,688 ㎡

1,039,512 ㎡

975,974 ㎡

Vacancy rate (offices and retail facilities)
As of September 30, 2016

As of September 30, 2017
1.2%

As of March 31, 2017
0.6%

0.8%

<Investment Management Business Unit>
Operating revenue in this business unit totaled 4,546 million yen, which represents a decrease of 646 million yen, or 12.5% year on
year, and operating profit totaled 2,860 million yen, a decrease of 556 million yen, or 16.3%, resulting in decreases in both operating
revenue and operating profit compared with the previous second quarter.
This was mainly due to the posting of asset acquisition fees associated with the merger between Nomura Real Estate Master Fund, Inc.
and TOP REIT, Inc. in the previous second quarter.
First six months ended

First six months ended

Fiscal year ended

September 30, 2016

September 30, 2017

March 31, 2017

(Millions of yen)

(Millions of yen)

(Millions of yen)

Operating revenue

5,193

4,546

9,662

Assets under management
As of September 30, 2016

As of September 30, 2017

As of March 31, 2017

(Millions of yen)

(Millions of yen)

(Millions of yen)

REITs

1,183,442

1,176,858

1,210,535

62,79450,69849,5291,246,237

1,227,556

1,260,064

Private funds, etc.
Total
<Property Brokerage & CRE Business Unit>

Operating revenue in this business unit totaled 17,887 million yen, which represents an increase of 1,001 million yen, or 5.9% year on
year, operating profit totaled 4,458 million yen, an increase of 1 million yen, or 0.0%, resulting in increases in both operating revenue andoperating profit compared with the previous second quarter.
In the retail business, we opened the following new branches: Omiya Center (Omiya-ku, Saitama-shi, Saitama) and Tachikawa Center(Tachikawa-shi, Tokyo) in April 2017.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

September 30, 2016

September 30, 2017

March 31, 2017

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

14,873

16,22530,283

Other

2,012

1,662

4,536

16,886

17,887

34,820

Total

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

First six months ended

Fiscal year ended

September 30, 2016

September 30, 2017

March 31, 2017

Number of transactions
Total transaction value (Millions of yen)

4,067

4,267

8,272

371,729

420,676

745,147

4

<Property & Facility Management Business Unit>
Operating revenue in this business unit totaled 48,638 million yen, which represents an increase of 2,972 million yen, or 6.5% year on
year, and operating profit totaled 3,221 million yen, an increase of 218 million yen, or 7.3%, resulting in increases in both operating
revenue and operating profit compared with the previous second quarter.
In the fitness club business, we opened MEGALOS_24 Nishiarai (Adachi-ku, Tokyo) in May 2017, MEGALOS_24 Tokiwadai(Itabashi-ku, Tokyo) and MEGALOS_Reflect Minatomirai (Nishi-ku, Yokohama-shi, Kanagawa) in June 2017.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

September 30, 2016

September 30, 2017

March 31, 2017

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

24,00924,96948,301

Construction ordered

11,62012,696

26,857

Fitness club & elderly care

7,692

7,947

15,523

Other

2,343

3,024

5,081

45,665

48,63895,764

Total
Number of properties under management

As of September 30, 2016
Buildings under management
Condominiums undermanagement (unit)

As of September 30, 2017

As of March 31, 2017

708

724

702

165,801

170,641

168,999<Other Business Unit>
Operating revenue in this business unit totaled 52 million yen, which represents a decrease of 1 million yen, or 2.6% year on year, andoperating loss totaled 1 million yen (the previous second quarter was operating loss of 17 million yen).

(2) Financial Position
As of March 31, 2017

As of September 30, 2017

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Changes

Total assets

1,593,093

1,692,997

99,903

6.3%

Total liabilities

1,099,280

1,188,679

89,3988.1%

Net assets

493,813504,318

10,505

2.1%

Shareholders' equity ratio

30.2%

29.0%

-

-

Total assets were 1,692,997 million yen, which represents an increase of 99,903 million yen compared to the end of the previous fiscal
year. This was mainly due to an increase in securities (an increase of 35,000 million yen) and inventories (an increase of 35,522 million
yen).
Total liabilities totaled 1,188,679 million yen, an increase of 89,398 million yen from the end of the previous fiscal year. This was
mainly due to an increase in commercial papers (increased by 32,000 million yen) and short-term loans payable (increased by 64,500
million yen), while deposits received (decreased by 21,125 million yen) decreased .
Net assets totaled 504,318 million yen, an increase of 10,505 million yen compared to the end of the previous fiscal year. This was
mainly due to an increase in retained earnings (increased by 13,399 million yen).
The shareholders' equity ratio was 29.0%, a decrease of 1.2 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 88,700 million yen, which represents an increase of 41,001
million yen compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 49,461 million yen (a year-on-year decrease of 2,123 million yen).
This was mainly due to outflows resulted by the decrease in deposits received and the increase in inventories.
Net cash provided by (used in) investment activities decreased by 33,295 million yen (a year-on-year decrease of 6,403 million yen).
5

This mainly reflected the purchase of tangible and intangible assets.
Net cash provided by (used in) financing activities increased by 123,770 million yen (a year-on-year increase of 61,990 million yen).
The reason for this was fundraising by issuance of commercial papers and short-term loans payable and long-term loans payable.

(3) Consolidated Operating Result Forecasts
No change in the consolidated operating result forecast which was announced on April 27, 2017.

6

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

AssetsCurrent assets
Cash and deposits

47,70153,702

Notes and accounts receivable - trade16,535

13,797－35,000Real estate for sale120,385

120,950

Real estate for sale in process

249,663

265,031Land held for development

199,812220,019

2,567

6,477

Securities

Equity investments
Deferred tax assets

5,555

5,297

Other

42,12337,483(37)(31)

684,306

757,728

Buildings and structures, net

241,888

252,117Land

549,671572,550

Other, net

17,265

13,995

Total property, plant and equipment

808,825

838,663

10,985

10,921

Investment securities

46,252

41,134

Lease and guarantee deposits

21,73822,711

Deferred tax assets

14,992

15,130

Other

5,992

6,707

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

Intangible assets
Investments and other assets

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

88,97585,683

908,786

935,268

1,593,093

1,692,997

Total non-current assets
Total assets

7

(Millions of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade35,612

28,717

Short-term loans payable

106,300

170,800－

32,000Current portion of bonds

10,00010,000

Income taxes payable

16,052

10,592

Deposits received

29,459

8,334

Deferred tax liabilities

20

19

Provision for bonuses

7,516

7,687

Provision for directors' bonuses

639

328

Commercial papers

Provision for loss on business liquidation

47

41

Other

50,14941,677

Total current liabilities

255,799

310,199

Non-current liabilities
Bonds payable

70,00090,000Long-term loans payable

623,800

637,900

Lease and guarantee deposits received

57,59760,143

Deferred tax liabilities

63,592

61,582

Deferred tax liabilities for land revaluation

3,900

3,900

Provision for loss on subleasing business

257

216

Net defined benefit liability

18,931

18,769

Other

5,402

5,968

843,481878,479

1,099,280

1,188,679

Capital stock

116,779

116,883

Capital surplus

110,023

110,127

Retained earnings

242,704

256,104

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

(3)

(4)

469,503

483,111

7,947

4,301

Deferred gains or losses on hedges

119

(165)

Revaluation reserve for land

7,860

7,860

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment

62

(28)

Remeasurements of defined benefit plans(4,129)(3,923)

Total accumulated other comprehensive income

11,860

8,045

1,986

2,445

Subscription rights to shares
Non-controlling interests

10,462

10,715

Total net assets

493,813504,318

1,593,093

1,692,997

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

Six months ended

September 30, 2016

September 30, 2017

Operating revenue

248,178

273,045

Operating cost

167,708

188,340

Operating gross profit

80,47084,704

Selling, general and administrative expenses

47,07150,206

Operating profit

33,39934,497

Interest income

25

23

Dividend income

79

46

83

37

Gain on transfer of right to request purchase of shares

－

112

Other

142

114

Total non-operating income

331

333

Interest expenses

3,886

3,666

Other

677

789

Non-operating income

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

Total non-operating expenses

4,563

4,455

29,16630,375Gain on sales of non-current assets

945－

Total extraordinary income

945－

Impairment loss－

67

Loss on building reconstruction－

189

Ordinary profit
Extraordinary income

Extraordinary losses－

256

Profit before income taxes

30,112

30,118

Income taxes - current

7,655

9,923

Income taxes - deferred

2,055

(205)

Total extraordinary losses

Total income taxes

9,711

9,718

Profit20,401

20,400285

285

20,116

20,115

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

9

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

ProfitSix months ended

Six months ended

September 30, 2016

September 30, 2017

20,401

20,400

Valuation difference on available-for-sale securities

222(3,644)

Deferred gains or losses on hedges

127

(285)

Revaluation reserve for land

(0)

(0)

Foreign currency translation adjustment

(30)

(13)

Remeasurements of defined benefit plans, net of tax

173

205

－

(76)

Other comprehensive income

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

492(3,815)20,894

16,58520,60916,300284

285

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests10

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

Six months ended

September 30, 2016

September 30, 2017

Cash flows from operating activities
Profit before income taxes

30,112

30,118Depreciation

8,332

9,314

(83)

(37)

(2)

(5)

(6)

(5)

(24)

(41)

Increase (decrease) in net defined benefit liability

(155)

(162)

Interest and dividend income

(105)

(69)

Interest expenses

3,886

3,666

(195)

2,736

Decrease (increase) in inventories(41,714)(42,359)

Decrease (increase) in equity investments(1,504)(3,910)

Increase (decrease) in notes and accounts payable – trade(8,163)(6,894)

Increase (decrease) in deposits received(14,118)(21,125)

Share of (profit) loss 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

Decrease (increase) in notes and accounts receivable trade

Other, net(5,806)(1,861)

Subtotal(29,549)(30,636)99

60

Interest expenses paid

(3,955)(3,488)

Income taxes paid

(13,932)(15,396)

Net cash provided by (used in) operating activities(47,337)(49,461)

(517)

(388)

1,329

64

(33,669)(34,086)

4,234

43

(678)

(719)

Interest and dividend income received

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales and liquidation of investment
securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits

501

616

Repayments of lease and guarantee deposits received(1,349)(891)

Proceeds from lease and guarantee deposits received

2,254

2,369

Other, net
Net cash provided by (used in) investing activities

11

1,002

(303)

(26,892)(33,295)

(Millions of yen)Six months ended

Six months ended

September 30, 2016

September 30, 2017

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

20,50056,000

Increase (decrease) in commercial papers－

32,000

Repayments of finance lease obligations

(79)

(72)

Proceeds from long-term loans payable

59,00047,000

Repayments of long-term loans payable(31,800)(24,400)

Proceeds from issuance of bonds

19,86919,869Proceeds from issuance of common shares

66

121

Purchase of treasury shares

(0)

(0)

(5,750)(6,715)

(26)

(31)

Net cash provided by (used in) financing activities

61,779123,770

Effect of exchange rate change on cash and cash equivalents

(43)

(12)

Net increase (decrease) in cash and cash equivalents(12,493)

41,001

Cash and cash equivalents at beginning of period

57,59147,6994－

45,10388,700Cash dividends paid
Dividends paid to non-controlling interests

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period12(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 FY2016 2Q (Six months from April 1 to September 30, 2016)
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Other

Property &Adjustments
Total

Investment
Leasing

Development

Brokerage &Facility

CRE

Management

Subtotal(Note) 1

quarterly
consolidated(Note) 2

financial

Management

statements(Note) 3

Operating revenue
External customers

133,868

51,125

5,193

15,88342,053

248,12453

248,178-

248,178

196

1,262

-

1,002

3,612

6,073

0

6,073

(6,073)-

Subtotal

134,065

52,387

5,193

16,88645,665

254,19853

254,251(6,073)

248,178

Segment profit or loss

10,665

14,693

3,416

4,457

3,002

36,235(17)

36,217(2,818)33,399Inter-segment(Notes)1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 2,818 million yen shown in the adjustments column for segment profit 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 profit stated in the Quarterly Consolidated Statements of Income.
2. Information regarding impairment loss on noncurrent assets or goodwill by reportable segments
Not applicable13II FY2017 2Q (Six months from April 1 to September 30, 2017)
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Other

Property &Adjustments
Total

Investment
Leasing

Development

Brokerage

Facility& CREManagement(Note) 1

Subtotalquarterly
consolidated(Note) 2

financial

Management

statements(Note) 3

Operating revenue
Externalcustomers

147,01759,966

4,546

16,722

44,740272,99352

273,045-

273,045

465

1,193

-

1,165

3,897

6,722

0

6,722

(6,722)-

Subtotal

147,483

61,1604,546

17,887

48,638279,71552

279,767(6,722)

273,045

Segment profit or loss

10,05815,890

2,860

4,458

3,221

36,488(1)

36,486(1,988)34,497

Inter-segment(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 1,988 million yen shown in the adjustment column for segment profit or loss includes an addition of 1,418
million yen for the elimination of inter-segment transactions and a deduction of 3,406 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 profit or loss is reconciled to the operating profit stated in the Quarterly Consolidated Statements of Income.
2. Information regarding 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

Property

Property &Brokerage &Facility

CRE

Management

Management

-

67

-

-

Total

-

67

(Subsequent Events)
Acquisition of treasury shares
The Company has resolved the acquisition of treasury shares, under Article 459, Paragraph 1 of the Companies Act and Article 32 of theCompany’s Articles of Incorporation, at the meeting of the Board of Directors held on October 26, 2017.
1. Reasons for treasury stock acquisition
To enhance shareholder returns and improve capital efficiency.
2. Contents of acquisition(1) Type of shares to be acquired：Common Stock of the Company(2) Total number of shares to be acquired：Up to 5,000,000 shares（Ratio to the number of outstanding shares (excluding treasury shares) : 2.60%）(3) Total value of shares to be acquired：Up to 10 billion yen(4) Period of acquisition：From October 27, 2017 to March 31, 2018(5) Method of acquisition：Open market purchase on the Tokyo Stock Exchange

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