Jan. 31, 2019

Consolidated Financial Results
For the Nine Months from April 1 to December 31, 2018
<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:

nrehd-ir@nomura-re.co.jp

Scheduled submitting date of quarterly securities report:

February 12, 2019

Scheduled starting date for dividend payments:-

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 nine months from April 1, to December 31, 2018
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue
First nine months ended

Operating profit

Profit attributable toOrdinary profit

owners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Dec. 31, 2018

350,857(14.4)

37,010(28.4)

30,126(33.8)

20,566(25.2)

Dec. 31, 2017

409,652

11.0

51,702

5.2

45,5396.0

27,489(5.8)(Note) Comprehensive income:From April 1 to December 31, 2018: 20,483 million yen (down 12.6%)
From April 1 to December 31, 2017: 23,445 million yen (down 25.8%)

Basic earnings

Diluted earnings

per shareper share
Yen

Yen

Dec. 31, 2018109.92109.27

Dec. 31, 2017

143.39142.61First nine months ended

(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Dec. 31, 2018

1,733,386

514,576

28.9

Mar. 31, 2018

1,673,099

514,982

30.0(Reference) Shareholders’ equity: As of December 31, 2018: 500,398 million yen
As of March 31, 2018: 501,491 million yen

II. Dividends
Dividend per share
1st quarter-end

Fiscal year ended
Mar. 31, 2018
Fiscal year ending
Mar. 31, 2019

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

35.00

-

35.00

70.00

-

37.50

-

37.50

75.00

Fiscal year ending
Mar. 31, 2019
(Forecast)(Note) Revision of dividend forecasts during this quarter: NoneIII. Forecasts of consolidated operating results for the fiscal year from April 1, 2018 to March 31, 2019(% 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

674,000

8.1

77,0000.4

68,000(0.0)

46,000(0.1)

246.56

Fiscal year
endingMar. 31, 2019

(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, changes in accounting estimates and restatements

(4)

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: NoneNumber of shares issued (common stock)1)

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

2)

Treasury shares at end of period

As of Dec. 31

As of Mar. 31

2018

2018

192,311,401

192,155,201

7,363,564

3,956,956

3)

Average number of shares outstanding during the period

From Apr. 1 to Dec. 31

From Apr. 1 to Dec. 31

2018

2017

187,098,706

191,704,748(Note) 1,541,000 shares of the Company’s share owned by executive compensation BIP (Board Incentive Plan) trust are included to thenumber of treasury shares at end of period. 314,221 shares owned by the executive compensation BIP (Board Incentive Plan) trust are also
included to the number of treasury shares deducted in the calculation of average number of shares outstanding during the period.
* Quarterly consolidated financial results are not required to be audited by certified public accountants or audit corporations.
* 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 6of the Attachments.
(How to obtain fact sheets)
The fact sheets will be disclosed on TDnet on January 31, 2019 and will be uploaded on the Company's website.

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

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

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

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

6

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

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
Nine Months from April 1 to December 31, 2018...................................................................................................................................

10

Quarterly Consolidated Statements of Comprehensive Income
Nine Months from April 1 to December 31, 2018...................................................................................................................................

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 Shareholder’s Equity) ........................................................................................................................

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

141

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the nine months ended December 31,
2018: Operating revenue of 350,857 million yen, which represents a decrease of 58,795 million yen, or 14.4% year on year; operating profitof 37,010 million yen, a decrease of 14,692 million yen, or 28.4%; ordinary profit of 30,126 million yen, a decrease of 15,412 million yen,or 33.8%; and profit attributable to owners of parent of 20,566 million yen, a decrease of 6,922 million yen, or 25.2%.
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 the first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit to promote business in conjunction with the Property andManagement Business Unit. As of August 1, 2018, the merger has been completed with Nomura Real Estate Partners Co., Ltd being thesurviving company and Nomura Real Estate Reform Co., Ltd. being the absorbed company in absorption-type merger.
In line with this change, the financial results of the first nine months ended December 31, 2017 and the fiscal year ended March 31, 2018
are calculated under the new classification.
<Residential Development Business Unit>
Operating revenue in this business unit totaled 160,953 million yen, which represents a decrease of 61,417 million yen, or 27.6% year
on year, and operating profit totaled 2,075 million yen, which represents a decrease of 13,610 million yen, or 86.8% year on year, resulting
in decreases in both operating revenue and operating profit compared with the financial results of the first nine months ended December
31, 2017.
This was mainly due to a decrease in the number of housing unit sales in the housing sales business. Compared to the previous fiscal
year, a greater number of housings are planned to be constructed and recorded as sales in the fourth quarter.
In regard to housing sales, 2,583 units were recorded as sales (a decrease of 864 units year on year), including PROUD CITY Musashinomitaka (Musashino-shi, Tokyo), PROUD Toyocho South (Koto-ku, Tokyo), OHANA Sobudai (Zama-shi, Kanagawa), PROUD
Syukugawa COURT TERRACE (Nishinomiya-shi, Hyogo) for condominiums, and PROUD SEASON Chofu Yoko-no-machi (Chofushi, Tokyo) for detached housing. By considering the business progress and forecasts at this point, we revised the estimated number ofhousing sales for FY19/3 announced in April, 2018, which is 6,100 units, to 5,950 units. The contract rate against the revised estimatednumber was 91.6% as of the end of the current third quarter.
The number of housing contracted but not recorded as sales were 4,566 units as of the end of the current third quarter (an increase of 824
units compared with the end of the previous third 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 first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit. In line with this change, the financial results of the first ninemonths ended September 30, 2017 and the fiscal year ended March 31, 2018 are calculated under the new classification.

2

Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2017

Dec. 31, 2018

Mar. 31, 2018

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)Tokyo2,756 units

170,371

1,988 units

117,437

4,483 units

269,685

Kansai area

206 units

13,723454 units

22,330716 units

34,734

Other

485 units

24,081

141 units

6,790

666 units

32,3993,447 units

208,176

2,583 units

146,557

5,865 units

336,819(290 units)(18,364)(271 units)(17,089)(607 units)(37,898)-

14,195-

14,395-

18,626-

222,371-

160,953-

355,445

metropolitan
area

Subtotal(Detachedhousing)

Other
Total

Housing sales Period-end completed housing inventory (released for sale)
As of Dec. 31, 2017

As of Dec. 31, 2018

As of Mar. 31, 2018

Tokyo metropolitan area

229 units

163 units

145 units

Kansai area

21 units

60 units

75 unitsOther

19 units

0 units

19 units

Total

270 units

224 units

239 units(Detached housing)(22 units)(25 units)(15 units)

Housing sales Period-end completed housing inventory (unreleased)
As of Dec. 31, 2017

As of Dec. 31, 2018

As of Mar. 31, 2018

Total

186 units

64 units

218 units(Detached housing)(10 units)(13 units)(11 units)

Housing sales Contracted but not recorded as housing sales
As of Dec. 31, 2017

As of Dec. 31, 2018

Outstanding
Housing units

As of Mar. 31, 2018

Outstanding

contract amount

Housing units(Millions of yen)contract amount

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

Tokyo metropolitan area

2,736 units

172,033

3,191 units

214,5132,118 units

134,060

Kansai area

672 units

30,364562 units

29,647346 units

17,872Other

332 units

17,650812 units

42,913366 units

19,011

Total

3,742 units

220,048

4,566 units

287,074

2,831 units

170,944(Detached housing)(243 units)(15,310)(274 units)(20,019)(53 units)(3,353)<Leasing Business Unit >Operating revenue in this business unit totaled 91,214 million yen, which represents an increase of 1,549 million yen, or 1.7% year on year,
and operating profit totaled 23,745 million yen, a decrease of 306 million yen, or 1.3%, resulting in an increase in operating revenue and adecrease in operating profit compared with the financial results of the first nine months ended December 31, 2017.
This was mainly due to a decrease in revenues from the land for sales while increases in revenue from leasing and property development forsales. As for sales of property development, the progress in the fourth quarter will be in line with our plan.

3

Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2017

Dec. 31, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

40,006

41,12653,312

Leasing (retail facilities)

9,274

10,341

12,686

Leasing (other)

5,172

5,815

7,193

Property development (sale)

20,27523,06343,301

Property development (leasing)

3,516

3,446

4,724

Other

11,4187,420

13,722

89,665

91,214

134,941

Total
Rentable area
As of Dec. 31, 2017

As of Dec. 31, 2018

As of Mar.31, 2018

Offices862,313 m2

828,671 m2

846,338 m2

Retail facilities

174,642 m2

174,622 m2

174,666 m2

Total

1,036,954 m2

1,003,292 m2

1,021,004 m2

Vacancy rate (offices and retail facilities)
As of Dec. 31, 2017

As of Dec. 31, 2018
1.1%

As of Mar.31, 2018
3.9%

0.7%

<Investment Management Business Unit>
Operating revenue in this business unit totaled 7,094 million yen, which represents an increase of 6 million yen, or 0.1% year on year,
and operating profit totaled 4,478 million yen, a decrease of 23 million yen, or 0.5%, resulting in an increase in operating revenue and adecrease in operating profit compared with the financial results of the first nine months ended December 31, 2017.
Assets under management were increased compared with the end of the previous third quarter and the end of the previous fiscal year
due to the acquisition of 75% of the shares of Lothbury, a real estate investment manager in the UK, in November 2018.
First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2017

Dec. 31, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

Operating revenue(Millions of yen)

7,088

7,094

9,378

Assets under management
As of Dec. 31, 2017

As of Dec. 31, 2018

As of Mar.31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

REITs

1,183,768

Private funds, etc.
Total

1,243,351

1,209,259

51,246

392,528

76,643

1,235,015

1,635,880

1,285,903<Property Brokerage & CRE Business Unit>
Operating revenue in this business unit totaled 25,513 million yen, which represents a decrease of 367 million yen, or 1.4% year on year,
and operating profit totaled 4,352 million yen, a decrease of 1,350 million yen, or 23.7%, resulting in decreases in both operating revenue
and operating profit compared with the financial results of the first nine months ended December 31, 2017.
This was mainly due to investments in human resources, stores and systems looking ahead to expand the business volume and a decreasein the total transaction value in property brokerage.
In the retail business, we opened the following new branches: Nagoya branch (Naka-ku, Nagoya-shi, Aichi) in April 2018, Toranomon
Center (Minato-ku, Tokyo) in May 2018, and Yokohama motomachi Center (Naka-ku, Yokohama-shi, Kanagawa) in October 2018.

4Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2017

Dec. 31, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

23,382

23,13831,637

Other

2,498

2,375

4,065

Total

25,881

25,51335,703

Number of transactions and transaction value of property brokerageFirst nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2017

Dec. 31, 2018

Mar. 31, 2018

Number of transactions
Transaction value (Millions of yen)

6,226

6,492

8,561

593,289

540,237

800,739<Property & Facility Management Business Unit>
Operating revenue in this business unit totaled 77,251 million yen, which represents an increase of 2,626 million yen, or 3.5% year on
year, and operating profit totaled 5,030 million yen, an increase of 434 million yen, or 9.5%, resulting in both increases in operating revenue
and operating profit compared with the financial results of the first nine months ended December 31, 2017.
In the fitness club business, we opened MEGALOS HIBIYA chanter (Chiyoda-ku, Tokyo) in September 2018 and MEGALOS Reflet
SHINSAIBASHI (Chuo-ku, Osaka-shi, Osaka) in November 2018.
From the first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit. In line with this change, the financial results of the first ninemonths ended December 31, 2017 and the fiscal year ended March 31, 2018 are calculated under the new classification. As of August 1,
2018, the merger has been completed with Nomura Real Estate Partners Co., Ltd being the surviving company and Nomura Real Estate
Reform Co., Ltd. being the absorbed company in absorption-type merger.
Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2017

Dec. 31, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

37,71338,34550,386

Construction ordered

20,25020,89831,604

Fitness club & elderly care

11,98812,672

16,064

Other
Total

4,671

5,334

6,526

74,624

77,251

104,581

Number of properties under management
As of Dec. 31, 2017
Buildings under management
Condominiums undermanagement (unit)

As of Dec. 31, 2018

As of Mar.31, 2018

724

734

723

171,420

174,708

173,705<Other Business Unit>
Operating revenue in this business unit totaled 69 million yen, which represents a decrease of 5 million yen, or 7.0% year on year,
and operating loss totaled 23 million yen (operating loss of the first nine months ended December 31, 2017 was 5 million yen).

5(2) Financial Position
As of Mar. 31, 2018

As of Dec. 31, 2018

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Changes

Total assets

1,673,099

1,733,386

60,286

3.6%

Total liabilities

1,158,116

1,218,810

60,693

5.2%

Net assets

514,982

514,576(406)(0.1%)

Shareholders' equity ratio

30.0%

28.9%

-

-

Total assets were 1,733,386 million yen, which represents an increase of 60,286 million yen compared to the end of the previous fiscal year.
This was mainly due to increases in inventories (increased by 52,619 million yen) and equity investments (increased by 7,051 million yen).
Total liabilities were 1,218,810 million yen, which represents an increase of 60,693 million yen compared to the end of the previous fiscal
year. This was mainly due to increases in long-term loans payable (increased by 60,000 million yen) and short-term loans payable (increased
by 21,600 million yen) while income taxes payable (decreased by 12,848 million yen) and notes and accounts payable - trade (decreased by
10,347 million yen) decreased.
Net assets were 514,576 million yen, which represents a decrease of 406 million yen compared to the end of the previous fiscal year. Thiswas mainly due to the acquisition of treasury shares (decreased by 7,834 million yen) while an increase in retained earnings (increased by 6,963
million yen).
The shareholders' equity ratio was 28.9%, a decrease of 1.1 percentage point from the end of the previous fiscal year.
(Cash Flows)
Cash and cash equivalents as of the end of the current third quarter totaled 52,157 million yen, which represents a decrease of 9,189 million
yen compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 57,611 million yen (a year-on-year increase of 1,870 million yen). This was
mainly due to an increase in inventories and the payment of income taxes payable.
Net cash provided by (used in) investment activities decreased by 25,177 million yen (a year-on-year increase of 30,165 million yen). Thiswas mainly due to the purchase of property, plant and equipment and intangible assets and investment securities.
Net cash provided by (used in) financing activities increased by 73,601 million yen (a year-on-year decrease of 45,193 million yen). This was
mainly due to the procurement of funds by long-term loans payable while there were a payment of dividends and acquisition of treasury shares.

(3) Consolidated Operating Result Forecasts
The consolidated operating result forecasts for the fiscal year ending March 31, 2019 were revised from the figures announced on October
29, 2018, by examining the future outlook based on interim results for the nine months ended December 31, 2018.
<Consolidation>
The Group expects the following consolidated performance for the fiscal year ending March 31, 2019: Operating revenue of 674,000
million yen; operating income of 77,000 million yen; ordinary income of 68,000 million yen; and profit attributable to owners of parent of
46,000 million yen.
Changes from the previous consolidated result forecasts are as follows:
Operating profit

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)687,000

81,00072,00047,000250.94

Revised forecasts (B)674,000

77,00068,00046,000246.56

Changes (B-A)(13,000)(4,000)(4,000)(1,000)-Changes (%)

(1.9)

(4.9)

(5.6)

(2.1)

-

623,762

76,66068,03346,029240.89Actual results for theprevious fiscal year

6

Ordinary profit

Profit attributable

Operating revenue

to owners of parent

Earnings per share<By business unit>
Forecasts for the fiscal year ending March 31, 2019 by business unit are as follows:
Operating revenue
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

375,000

365,500(9,500)

Leasing

166,000

167,000

1,000

Investment Management

9,500

9,500

-

Property Brokerage & CRE

40,50038,500(2,000)Property & Facility Management

110,000

107,500(2,500)00-Adjustments(14,000)(14,000)-

Total

687,000

674,000(13,000)

Other

Operating profit
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

24,00022,000(2,000)

Leasing

37,00037,500500

Investment Management

6,000

6,000

-

Property Brokerage & CRE

10,5009,000(1,500)Property & Facility Management

7,500

7,500

-

0

0

-

Adjustments(4,000)(5,000)(1,000)Total

81,00077,000(4,000)Other

7

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of December 31, 2018

AssetsCurrent assets
Cash and deposits

52,34752,157

Notes and accounts receivable - trade17,30814,550

Securities

9,000

－

Real estate for sale

102,884

129,155

Real estate for sale in process

261,278

345,961

Land held for development

228,326

169,714

Equity investments

9,612

16,663

Other

36,91755,939(39)(37)

717,635

784,105

Buildings and structures, net

239,026

233,604

Land

592,550

582,772

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

Other, net

16,797

17,624

Total property, plant and equipment

848,374

834,000

12,364

16,625Investment securities

42,36245,890

Lease and guarantee deposits

23,131

23,893

Deferred tax assets

20,843

20,971

Other

8,387

7,900

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

94,72598,654

Intangible assets
Investments and other assets

Total non-current assets
Total assets

8955,464

949,281

1,673,099

1,733,386

(Millions of yen)
As of March 31, 2018

As of December 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

41,696

31,349

Short-term loans payable

102,300

123,900－

13,500

Income taxes payable

14,9932,144

Deposits received

18,807

11,380

Provision for bonuses

7,679

4,203

Provision for directors' bonuses

590

367

Commercial papers

Provision for loss on business liquidation

36

29

Other

48,07351,396

Total current liabilities

234,176

238,271

Bonds payable

140,000

140,000

Long-term loans payable

635,500

695,500

Lease and guarantee deposits received

60,241

61,118Deferred tax liabilities

59,82854,086

Deferred tax liabilities for land revaluation

3,900

3,900

Provision for stocks payment－

459

Provision for loss on subleasing business

102

63

Net defined benefit liability

18,37518,082

Other

5,991

7,328

923,940

980,539

1,158,116

1,218,810

117,072

117,237

Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

110,316

110,481

Retained earnings

275,299282,262

Treasury shares(10,004)(17,838)

Total shareholders' equity

492,683

492,143

4,516

3,966

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

262

179

Revaluation reserve for land

7,860

7,860

Foreign currency translation adjustment

(225)

(376)

Remeasurements of defined benefit plans(3,605)(3,375)

Total accumulated other comprehensive income

8,807

8,254

Share acquisition rights

2,424

2,424

Non-controlling interests

11,067

11,752

Total net assets
Total liabilities and net assets

9514,982

514,576

1,673,099

1,733,386

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income for the First Nine Months from April 1 to December 31, 2018)(Millions of yen)
Nine months ended

Nine months ended

December 31, 2017

December 31, 2018

Operating revenue

409,652

350,857

Operating cost

282,782

239,657

Operating gross profit

126,870

111,199

Selling, general and administrative expenses

75,167

74,188Operating profit

51,70237,010Interest income

34

33

Dividend income

65

56

Share of profit of entities accounted for using equity

38

155

Gain on donation of non-current assets－

54

Gain on transfer of right to request purchase of shares

111

－

Other

191

216

Total non-operating income

442

517

Interest expenses

5,529

6,612

Other

1,076

789

Non-operating income

methodNon-operating expenses

Total non-operating expenses

6,605

7,401

45,53930,126

Impairment loss

3,614

－

Loss on building reconstruction

242

821

Loss on transfer of non-current assets

－

1,091

3,856

1,912

Profit before income taxes

41,682

28,213

Income taxes - current

13,933

10,776

Income taxes - deferred(257)(3,599)Total income taxes

13,675

7,176

Profit28,006

21,036

Ordinary profit
Extraordinary losses

Total extraordinary losses

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

10

517

470

27,48920,566

(Quarterly Consolidated Statements of Comprehensive Income for the First Nine Months from April 1 to December 31, 2018)(Millions of yen)

ProfitNine months ended

Nine months ended

December 31, 2017

December 31, 2018
28,006

21,036

Valuation difference on available-for-sale securities(4,312)(550)

Deferred gains or losses on hedges

(459)

(82)

Revaluation reserve for land

(0)

(0)

Foreign currency translation adjustment

(20)

84

Other comprehensive income

Remeasurements of defined benefit plans, net of tax

307

230

Share of other comprehensive income of entities

(76)

(235)

(4,560)(553)

23,445

20,483Comprehensive income attributable to owners of parent

22,92820,013Comprehensive income attributable to non-controlling

517

470

accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable tointerests11

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

Nine months ended

December 31, 2017

December 31, 2018

Cash flows from operating activities
Profit before income taxes

41,682

28,213

Depreciation

14,063

14,162

(38)

(155)

Increase (decrease) in allowance for doubtful accounts

(5)

(1)

Increase (decrease) in provision for loss on business

(8)

(6)

(62)

(38)

Increase (decrease) in net defined benefit liability

(170)

(293)

Interest and dividend income

(100)

(89)

Interest expenses

5,529

6,612

Decrease (increase) in notes and accounts receivable -

1,373

3,051

Decrease (increase) in inventories(57,227)(44,798)

Decrease (increase) in equity investments(5,872)(7,051)

Increase (decrease) in notes and accounts payable - trade(8,528)(10,835)

Increase (decrease) in deposits received(19,552)(7,426)

Other, net(522)(10,301)

Subtotal(29,440)(28,961)

Share of loss (profit) of entities accounted for using equity
methodliquidation
Increase (decrease) in provision for loss on subleasing
business

trade

Interest and dividend income received

82

232

Interest expenses paid

(5,082)(5,447)

Income taxes paid

(25,041)(23,434)

Net cash provided by (used in) operating activities(59,481)(57,611)Purchase of investment securities(4,067)(4,629)Proceeds from sales and liquidation of investment

2,689

105

－

(3,655)－

520(55,975)(17,325)

139

0

(837)

(328)

Cash flows from investing activities

securities
Purchase of shares of subsidiaries resulting in change inscope 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 for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits

980

706

Repayments of lease and guarantee deposits received(1,336)(2,822)

Proceeds from lease and guarantee deposits received

2,791

1,996

Other, net

273

254

(55,342)(25,177)

Net increase (decrease) in short-term loans payable

65,50046,000

Increase (decrease) in commercial papers

46,00013,500Net cash provided by (used in) investing activities
Cash flows from financing activities

12

(Millions of yen)
Nine months ended

Nine months ended

December 31, 2017

December 31, 2018

Repayments of finance lease obligations

(112)

(125)

Proceeds from long-term loans payable

60,00089,500

Repayments of long-term loans payable(43,900)(53,900)

Proceeds from issuance of bonds

19,869－

Redemption of bonds(10,000)

－

206

114

Proceeds from issuance of common shares
Purchase of treasury shares(5,301)(7,840)Cash dividends paid

(13,435)(13,602)

(31)

(44)

118,795

73,601Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

3(2)

Net increase (decrease) in cash and cash equivalents

3,973(9,189)Cash and cash equivalents at beginning of period

47,69961,347

Cash and cash equivalents at end of period

51,67352,15713

(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 FY2017 3Q (Nine months from April 1 to December 31, 2017)
1. Information regarding sales, gains or losses, by reportable segments(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Other

Property &Adjustments
Total

Investment
Leasing

Development

Brokerage

Facility(Note) 1

Subtotal

Management& CRE

consolidated
financial(Note) 2

statements

Management(Note) 3

Operating revenue
External customers

221,783

87,878

7,088

24,243

68,583

409,57774

409,652-

409,652

Inter-segment

587

1,786

-

1,637

6,041

10,0520

10,052(10,052)-

Subtotal

222,371

89,665

7,088

25,881

74,624

419,63075

419,705(10,052)

409,652

Segment profit or losses

15,68624,051

4,501

5,702

4,595

54,538(5)

54,532(2,829)51,702(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 2,829 million yen shown in the adjustments column for segment profit or losses includes elimination ofintersegment transactions of 1,876 million yen and a deduction of 4,705 million yen for corporate expenses not allocated to eachreportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable to reportablesegments.
3. The segment profit or losses 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 non-current assets)(Millions of yen)
Residential
Leasing

Development

Impairment loss

Property

Investment-

Management

3,614

-

14

Property &Brokerage &Facility

CRE

Management

-

Total

-

3,614

II FY2018 3Q (Nine months from April 1 to December 31, 2018)
1. Information regarding sales, gains or losses, by reportable segments(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Other

Property &Adjustments
Total

Investment
Leasing

Development

Brokerage

Facility

Subtotal(Note) 1

Management& CRE

Management

24,27369,640consolidated
financial(Note) 2

statements(Note) 3

Operating revenue
External customers

160,316

89,462

7,094

350,78769

350,857-

350,857

Inter-segment

637

1,751

-

1,240

7,610

11,2390

11,240(11,240)-

Subtotal

160,953

91,214

7,094

25,513

77,251

362,02769

362,097(11,240)

350,857

Segment profit or losses

2,075

23,745

4,478

4,352

5,030

39,681(23)

39,657(2,647)37,010(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 2,647 million yen shown in the adjustments column for segment profit or losses includes elimination ofintersegment transactions of 1,178 million yen and a deduction of 3,826 million yen for corporate expenses not allocatedto each reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributableto reportable segments.
3. The segment profit or losses is reconciled to the operating profit stated in the Quarterly Consolidated Statements of Income.
2. Changes in reportable segments
From the first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit to promote business in conjunction with the property andmanagement business.
In line with this change, the segment information for the first nine months ended December 31, 2017 is calculated in accordancewith the newly adopted segment classification.
3. Information regarding impairment loss on noncurrent assets or goodwill by reportable segment(Significant change in the amount of goodwill)In the Investment Management Business Unit, goodwill increased 4,060 million yen in the first nine months ended December 31
2018, because Lothbury Investment Management Group Limited, a real estate investment manager in the UK had been included in
the scope of consolidation. The amount of goodwill above is provisional since acquisition cost has not been allocated.

15