Items Disclosed on the Internet
in relation to the Notice of Convocation of
the 17th Ordinary General Meeting of Shareholders
Business Report
Current status of the Group
Principal businesses
Principal business offices of major subsidiaries
Share acquisition rights, etc.
Status of share acquisition rights
Status of share acquisition rights held by the officers of theCompany
Status of share acquisition rights delivered to employees, etc.,
during the fiscal year under review
Other important matters relating to share acquisition rights, etc.
System to ensure the appropriateness of operations and theoperational status of that system
Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets
Notes to Consolidated Financial Statements
Non-Consolidated Financial Statements
Non-Consolidated Statement of Changes in Net Assets
Notes to Non-Consolidated Financial Statements

The above information is provided to shareholders by means of disclosure through theInternet (on the website of Nomura Real Estate Holdings, Inc. (the “Company”) at
https://www.nomura-re-hd.co.jp/english/ir/) pursuant to the provisions of laws andregulations and Article 14 of the Company’s Articles of Incorporation.

Nomura Real Estate Holdings, Inc.
Please note that the following is an unofficial English translation of Japanese original text of the Items Disclosed on the Internet inrelation to the Notice of Convocation of the 17th Ordinary General Meeting of Shareholders of Nomura Real Estate Holdings, Inc.
The Company provides this translation for reference and convenience purposes only and without any warranty as to its accuracy orotherwise. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Business Report
Current status of the Group
Principal businesses (as of March 31, 2021)
A brief description of the businesses of the Nomura Real Estate Group (the “Group”) is as follows:
Unit
Residential
Development
Business Unit
Commercial Real
Estate Business
Unit

Principal businesses
Development and sale of condominiums and detached housing, development andsale of rental condominiums, development and operation of housing for theelderly, internet ad agency business, and businesses aimed at providing assistanceto customers concerning their homes arrangements, etc.
Development, lease, sale and entrusted management of office buildings, logistic
facilities and retail facilities, planning, lease and operation of hotels, operation of
fitness clubs, and planning and management of construction work, etc.

Investment
Management
Business Unit

Investment management business including REIT, privately placed real estate
funds, and real estate securitization products

Property Brokerage& CRE Business
Unit

Real estate brokerage and consulting, consignment sales for condominiums anddetached housing, and insurance agency businesses

Property & Facility
Management
Business Unit

Operation, management and construction of condominiums and office buildings,
remodeling construction business, operation of local cooling and heat supply
business, entrusted management of cleaning of office buildings, etc.

Other Business Unit

Development and sale of condominiums and development and lease of officebuildings outside Japan, and purchase and sale and lease of land and buildings inJapan that do not belong to the above business units1Principal business offices of major subsidiaries (as of March 31, 2021)
Company name

Name

Location

Nomura Real Estate Development Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Asset Management Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Urban Net Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Partners Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Building Co., Ltd.

Head office

Minato-ku, Tokyo

Nomura Real Estate Life & Sports Co., Ltd.

Head officeNakano-ku, Tokyo

Nomura Real Estate Heating and Cooling Supply
Co., Ltd.

Head office

Hodogaya-ku,
Yokohama-shi,
Kanagawa

Nomura Real Estate Retail Properties Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Wellness Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Nomura Real Estate Hotels Co., Ltd.

Head office

Shinjuku-ku, Tokyo

UHM Co., Ltd.

Head office

Chiyoda-Ku, Tokyo

Nomura Real Estate Amenity Service Co., Ltd.

Head office

Shinjuku-ku, Tokyo

PRIME X. Co., Ltd.

Head office

Shinjuku-ku, Tokyo

First Living Assistance Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Lothbury Investment Management Limited

Head office

ZEN PLAZA CO., LTD.

Head officeLondon, England
Ho Chi Minh City,
Vietnam2

Share acquisition rights, etc.
Status of share acquisition rights (as of March 31, 2021)
Name of shareacquisition rights
The 2nd shareacquisition rights in
FY2014
The 3rd shareacquisition rights in
FY2014
The 1st shareacquisition rights in
FY2015The 2nd shareacquisition rights in
FY2015
The 3rd shareacquisition rights in
FY2015The 5th shareacquisition rights in
FY2015
The 1st shareacquisition rights in
FY2016The 2nd shareacquisition rights in
FY2016
The 3rd shareacquisition rights in
FY2016The 1st shareacquisition rights in
FY2017The 2nd shareacquisition rights in
FY2017
The 3rd shareacquisition rights in
FY2017The 1st shareacquisition rights in
FY2018The 2nd shareacquisition rights in
FY2018Notes: 1.
2.

3.
4.

Date ofresolution on
issuance

Number ofshareacquisitionrightsNumber ofcommon sharessubject to shareacquisitionrightsExercise period ofshare acquisition rights

Exercise priceof shareacquisitionrights per share(Yen)

June 27, 2014265

26,500From July 23, 2016 toJuly 22, 2021

1

June 27, 2014

1,252

125,200

From July 23, 2016 toJuly 22, 2021

2,016

June 26, 2015

87

8,700

From July 23, 2018 to
July 22, 2023

1

June 26, 2015

502

50,200From July 23, 2018 to
July 22, 2023

1

June 26, 2015

3,142

314,200

From July 23, 2018 to
July 22, 2023

2,741

September 17,
2015

220

22,000From October 14, 2018
to October 13, 2023

2,355

June 29, 2016

378

37,800From July 22, 2019 toJuly 21, 2024

1

June 29, 2016

1,262

126,200

From July 22, 2019 toJuly 21, 2024

1

June 29, 2016

2,513

251,300

From July 22, 2019 toJuly 21, 2024

1,927

June 29, 2017

398

39,800From July 21, 2020 toJuly 20, 2025

1

June 29, 2017

1,536

153,600

From July 21, 2020 toJuly 20, 2025

1

June 29, 2017

4,356

435,600

From July 21, 2020 toJuly 20, 2025

2,400

June 26, 2018107

10,700From July 19, 2021 toJuly 18, 2026

1

June 26, 2018

494

49,400From July 19, 2021 toJuly 18, 2026

1

The number of the shares subject to a share acquisition right is 100.
In principle, a person who has received the allotment of the share acquisition rights must be in a position of Director,
Audit & Supervisory Board Member, Executive Officer, Senior Advisor, Advisor, Special Officer, Special Advisor or
employee of the Company or any of its subsidiaries, or in an equivalent position thereto until the time of exercise of
the share acquisition rights on a continuing basis.
The number of share acquisition rights and the number of common shares subject to share acquisition rights are thenumbers as of March 31, 2021.
The Company abolished the existing stock option with issuance of share acquisition rights using stock option as of
the fiscal year ended March 31, 2018, and no share acquisition rights using stock option have been issued since then.

3

Status of share acquisition rights held by the officers of the Company (as of March 31, 2021)
Name of share acquisition rights

Directors (excluding Audit & Supervisory
Committee Members and External Directors)

Directors (Audit & Supervisory Committee
Members)

Number of shareacquisition rights

Number of holders

Number of shareacquisition rights

Number of holders

The 3rd share acquisition rights
in FY2014

93

3

–

–

The 1st share acquisition rights
in FY2015

38

1

–

–

The 3rd share acquisition rights
in FY2015

160

4

–

–

The 1st share acquisition rights
in FY2016

226

2

–

–

The 2nd share acquisition rights
in FY2016

65

1

–

–

The 3rd share acquisition rights
in FY2016

160

4

–

–

The 1st share acquisition rights
in FY2017

337

5

–

–

The 3rd share acquisition rights
in FY2017

216

5

–

–

The 1st share acquisition rights
in FY2018

89

4

–

–

Status of share acquisition rights delivered to employees, etc., during the fiscal year under review
Not applicable.
Other important matters relating to share acquisition rights, etc.
Not applicable.

4

System to ensure the appropriateness of operations and the operational status of that system<Outline of resolution on system to ensure the appropriateness of operations>
The Company has passed the following resolutions at meetings of Board of Directors regarding systems
to ensure that Directors’ execution of their duties is in compliance with laws and regulations and the Articles
of Incorporation and other systems to ensure the appropriateness of operations.

1) System to ensure that theexecution of duties of the
Directors and Executive
Officers complies withlaws and regulations andthe Articles ofIncorporation

2) System for the retention
and management of
information relating to
the execution of duties of
the Directors andExecutive Officers

3) Rules and other systems
for management of riskof loss4) System to ensure theefficient execution ofduties of the Directors
and Executive Officers

a. Aiming to be a trusted corporate group that prospers together with its customers
and society, the Board of Directors has formulated the Nomura Real EstateGroup Code of Action which sets forth the behavior that all Officers andemployees should strive to exemplify. Directors and Executive Officers shalllead by example and comply with this Code of Action.
b. The Company has formulated the Board of Directors Regulations and theOrganization and Resolutions Rules, which form the basis for referring matters
to, and reporting to, the Board of Directors. Directors and Executive Officers
shall execute their duties in accordance with these Regulations and Rules.
c. The execution of the duties by Directors and Executive Officers shall be
audited by the Audit & Supervisory Committee.
The Company has formulated the Information Security Provisions, which stipulate
the basic matters concerning the information management system and the handlingof information, to ensure that minutes of General Meetings of Shareholders,
minutes of Board of Directors meetings, and other documents containing
information related to the execution of duties by Directors (excluding Directors as
Audit & Supervisory Committee Members) and Executive Officers are stored in an
appropriate place and saved for the stipulated period of time, so that they can bequickly accessed upon request by Directors or Executive Officers at any time.
a. The Board of Directors shall exercise overall control of risk management inaccordance with the Risk Management Regulations, develop a system to ensure
effective mutual check functions, assign personnel appropriately, provide
education for the development of human resources, fully disseminate theimportance of risk management to all Officers and employees, and formulate
appropriate measures to prevent accidents.
b. To deliberate business risks, the Company has established a Risk Management
Committee comprising Directors, Executive Officers, etc. of the Company andGroup companies designated by the Board of Directors as a subordinate body to
the Executive Committee, with the Executive Committee set as the core of total
risk management, to periodically monitor, assess, and analyze risks, anddeliberate basic principles for measures to prevent risks that may occur duringcorporate management and business development, to respond when risks arise,
and to prevent recurrence, in accordance with the Risk Management
Regulations and the Meeting Bodies Rules. In addition, the Company has
established a Group Risk Meeting comprising Directors, Executive Officers,etc. of Group companies designated by the chairman of the Risk Management
Committee to share risk information and response policies within the Group.
The Risk Management Committee and Group Risk Meeting shall in principle
meet bimonthly or when necessary, respectively, and shall report the content ofdeliberations to the Board of Directors at least once every three months.
c. When a risk requiring immediate action arises, in accordance with the Risk
Management Regulations, the chairman of the Risk Management Committee
and Executive Officers and general managers of departments and branch offices
in charge of Group risk management, PR, management of affiliated companies,
corporate administration, and finance stipulated by the Risk Management
Regulations shall discuss and determine the basic policy for measures toaddress the risk. The Company and Group companies shall respond inaccordance with this basic policy.
a. To facilitate flexible decision-making concerning the execution of business,certain matters determined by resolution of the Board of Directors among thematters concerning the execution of business at all Group companies shall bedecided through the Executive Committee or through an internal approvalsystem.
b. The Company has introduced an Executive Officer system aiming to strengthenGroup management by separating management oversight and decision-making
function from business execution function, thereby enhancing the executionfunction.
c. The Board of Directors shall, by resolution, appoint Executive Officers incharge of the execution of business, stipulate their business, and delegate the55) System to ensure that theexecution of duties of theemployees complies withlaws and regulations andthe Articles ofIncorporation

6) System to ensure theappropriateness ofoperations in thecorporate groupconsisting of theCompany, its parent
company and subsidiaries

7) System to ensure thereliability of financial
reportingbusiness operations of the Company. Individual Executive Officers shall
execute business based on the administrative authorities delegated inaccordance with internal regulations, etc. and based on Company policies
determined by the Board of Directors, decisions regarding business execution
made by the Executive Committee, and the directions of the Chief Executive
Officer.
d. The Board of Directors shall create annual budgets and mid-term management
plans, and manage progress on a monthly basis. The results of monthly progress
management shall be reflected into the execution of duties.
As a holding company, the Company established the following compliance systemcovering not just the Company itself but the entire corporate group.
a. Aiming to be a trusted corporate group that prospers together with its customers
and society, the Company has established the Nomura Real Estate Group Codeof Action which sets forth the behavior that all Officers and employees should
strive to exemplify, and ensures that all Officers and employees comply with
the Code of Action.
b. The Company has established the Risk Management Committee and Group
Legal & Compliance Department, and promotes continual education andenlightenment activities for Officers and employees to increase awareness ofcompliance.
c. The Company has established the Nomura Real Estate Group Help Line as aninternal whistleblowing system for shared use by all Group companies. Reports
and questions can be directed to internal parties (the chairman of the Risk
Management Committee and the Group Legal & Compliance Department) andexternal parties (attorneys at law and contractors). Such reports remain strictly
confidential to prevent informants from receiving adverse treatment based on
having provided information.
The corporate group comprising the Company and its subsidiaries forms the
Nomura Real Estate Group centered on the Company as the holding company. The
Nomura Real Estate Group has established the following systems to ensure
appropriate operations.
a. Aiming to be a trusted corporate group that prospers together with its customers
and society, the Company has established the Nomura Real Estate Group Codeof Action which sets forth the behavior that all Officers and employees should
strive to exemplify, and ensures that all Officers and employees comply with
the Code of Action.
b. The Executive Committee has been established in the Company to discuss
important matters related to Group management, overall Group company
business execution, and risks pertaining to Group management, and to
determine certain matters related to overall Group company business execution.
In addition, the Executive Committee ensures the common purpose of Groupmanagement through these activities.
c. The Risk Management Committee has been established in the Company todiscuss matters concerning disaster risks for the entire Group as well as mattersrelated to internal risks, and to promote the sharing of information.
d. The Company has established the Group Organizational Management
Regulations that require Group companies to discuss with or report to theCompany in advance when determining important matters.
e. The Company has established the Group Internal Audit Department, which
reviews internal audits performed by Group companies in accordance with theGroup Internal Audit Regulations, thereby maintaining and improving thequality of audits throughout the entire Group.
f. The Company has established the Sustainability Committee and Sustainability
Management Department, and promotes continual education and enlightenment
activities to increase CSR and ESG awareness throughout the entire Group.
g. The Company has established the Nomura Real Estate Group Help Line as aninternal whistleblowing system for shared use by all Group companies. Reports
and questions can be directed to internal parties (the chairman of the Risk
Management Committee and the Group Legal & Compliance Department) andexternal parties (attorneys at law and contractors). Such reports remain strictly
confidential to prevent informants from receiving adverse treatment based on
having provided information.
The Company has established the Internal Control Regulations for Financial
Reporting for the Group in accordance with the Financial Instruments andExchange Act and other related laws to ensure the reliability of the Nomura Real
Estate Group’s financial reporting. Based on the Regulations, the Company
develops and operates the internal controls related to financial reporting andevaluates their effectiveness.
68) Items related to the
Directors and employees
aiding the duties of the
Audit & Supervisory
Committee, items related
to the independence of
these Directors andemployees from other
Directors (excluding
Directors as Audit &Supervisory Committee
Members), and items
related to ensuring theeffectiveness of the
instructions from the
Audit & Supervisory
Committee to these
Directors and employees
9) System for the Directors,
Executive Officers andemployees to report to
the Audit & Supervisory
Committee, system for
Directors, Audit &Supervisory Board
Members, Executive
Officers, and employeesof subsidiaries, andpersons receiving reports
from them to report to the
Audit & Supervisory
Committee, and system
to ensure that thesepeople conducting thereporting shall not be
subjected to adverse
treatment due to suchreporting10) Items related to thepolicies on procedures forthe prepayment or
reimbursement ofexpenses arising from theexecution of duties of the
Audit & Supervisory
Committee Members, andthe handling of otherexpenses or obligations
arising from theexecution of these duties11) Other systems to ensure
the audits of the Audit &Supervisory Committee
are implemented
effectively

The Company has established the Audit & Supervisory Committee Department toassist duties of the Audit & Supervisory Committee, and dedicated staffs assigned
to this department perform duties in accordance with the directions and orders
issued by Audit & Supervisory Committee Members. Directors shall obtain theconsent of the Audit & Supervisory Committee Members designated by the Audit& Supervisory Committee with respect to personnel matters concerning dedicatedstaff of the Audit & Supervisory Committee Department.

a. When matters arise that may result in significant damage to the Company orGroup companies or violate laws and regulations or the Articles ofIncorporation, Directors, Executive Officers, and employees of the Company
and Group companies, and Audit & Supervisory Board Members of Group
companies shall immediately report such matters to the Audit & Supervisory
Committee.
b. The Group Internal Audit Department shall report to the Audit & Supervisory
Committee the results of internal audits, the status of improvements, and thestatus of evaluations of internal controls related to financial reporting.
c. Upon a request from Audit & Supervisory Committee Members designated by
the Audit & Supervisory Committee, Directors, Executive Officers, andemployees of the Company and Group companies shall report the status ofbusiness execution at their respective companies.
d. The chairman of the Risk Management Committee shall report the content ofreports submitted to the Nomura Real Estate Group Help Line to the Audit &Supervisory Committee Members designated by the Audit & Supervisory
Committee.
e. Informants in all of the above items shall be protected against receiving adverse
treatment based on having reported information.
The Company shall bear the expenses deemed necessary for the execution of duties
by Audit & Supervisory Committee Members. The Audit & Supervisory Committee
may retain attorneys at law, certified public accountants, consultants, or otherexternal advisors as necessary to perform audits.

a. The Audit & Supervisory Committee shall periodically exchange opinions with
the President.
b. Audit & Supervisory Committee Members shall attend meetings of the
Executive Committee and other important meeting bodies of the Company, togather information and express their opinions on the execution of business.
c. Audit & Supervisory Committee Members designated by the Audit &Supervisory Committee may ask the Company and Group companies for
explanations and reports about the execution of business, and investigate thestate of business and finances when necessary.
d. The Audit & Supervisory Committee shall closely cooperate with the
Accounting Auditor and the Group Internal Audit Department. This cooperation
shall include the periodic exchange of opinions and information concerning
audits.
e. The Group Internal Audit Department shall obtain the consent of the Audit &Supervisory Committee regarding the establishment of internal audit plans. In
addition, the Audit & Supervisory Committee may provide the Group Internal
Audit Department recommendations and instructions on changes in internal
audit plans, additional audits, necessary investigations, etc., when necessary.
7

f.

Directors shall consult with the Audit & Supervisory Committee in advancewith respect to appointments of responsible personnel in the Group Internal
Audit Department.

<Outline of the operational status of the system to ensure the appropriateness of operations>
The outline of the operational status of the system to ensure the appropriateness of operations in the fiscal
year under review is as follows.

1) Compliance2) Risk management

3) Internal audits

The Group regards compliance, including the observance of laws and regulations
and corporate ethics, as one of the most important management issues. As a set of
relevant guidelines, the Company has formulated the Nomura Real Estate Group
Code of Action.
Moreover, the Company has established the Risk Management Committee andGroup Legal & Compliance Department in the Company to promote continual
education and enlightenment activities for the officers and employees of the entire
Group, and to provide support, guidance and monitoring to Group companies.
In the fiscal year under review, group compliance training (online) for officers andemployees was held 29 times, in addition to training and enlightenment activities
such as e-learning for all officers and employees and the regular distribution of
topics, etc. related to compliance.
The Group regards risk management as a “business management methodology thataims to improve corporate value by managing all risks related to the attainment ofcorporate group organizational and business objectives in an integrated and unified
manner while controlling risk within the company’s risk tolerance limits.” With theaim of ensuring the soundness of business management through proper
management and operation of risks, the Group has formulated the Risk
Management Regulations.
Furthermore, to discuss various risks related to group management, the Company
set the Executive Committee as the core of total risk management to periodicallymonitor, evaluate, and analyze the status of major risks, and provide necessary
guidance and advice to each business unit and Group company while periodicallyreporting details to the Board of Directors.
Monitoring of “A: Investment risk” and “B: External risk” within the risk
categories prescribed in the Risk Management Regulations is carried out by the
Executive Committee, which is the core of total risk management. The Risk
Management Committee, which was established as a subordinate body of the
Executive Committee, periodically monitors, evaluates and analyzes “C: Disasterrisk” and “D: Internal risk,” and discusses the basic policy for countermeasureswith regard to prevention before occurrence, response in the event of occurrence,
prevention of recurrence, etc. In addition, the Company has established a Group
Risk Meeting comprising Directors, Executive Officers, etc. of Group companies
designated by the chairman of the Risk Management Committee to share risk
information and response policies within the Group.
During the fiscal year under review, the Risk Management Committee and theGroup Risk Meeting held 13 meetings in total.
The Company has established the Group Internal Audit Department, which works
to oversee, monitor and evaluate the internal audit function of the entire Group, as
well as perform audits of each department within the Company. Also, results ofaudits are reported to the Board of Directors, and a system is in place to reportresults to the Audit & Supervisory Committee, aimed at collaboration with the
Accounting Auditor.
During the fiscal year under review, audit results were reported to the Board of
Directors four times, and reported to the Audit & Supervisory Committee 11 times,
thereby sharing both the problems identified through internal audits as well as
improvement measures. Furthermore, the Company held ten meetings with theaudit departments of each Group company and carried out training sessions threetimes in order to improve the quality of audits throughout the entire Group andshare information.

84) Sustainability5) Execution of duties of the
Directors

6) Execution of duties of the
Audit & Supervisory
Committee

The Group recognizes that it must fulfill its responsibility to future generations bysolving various social issues for the realization of a sustainable society, andpromotes sustainability initiatives in the environment and society as a member ofsociety.
The Group has established a Sustainability Committee consists of Directors andExecutive Officers of the Company (chaired by the Executive Vice President andRepresentative Director of the Company) which carries out discussions regarding
sustainability-related policies, action plans, etc.
In the fiscal year under review, Sustainability Committee meeting was held threetimes, and details of the matters discussed are reported to the Board of Directors in
the first half and the second half of the fiscal year.
The Board of Directors, in principle, holds its meeting on a monthly basis, decides
important corporate matters, such as basic management policies, and supervises theexecution of duties by Directors and business operations by Executive Officers.
By assigning five out of the 13 Directors of the Board as Independent External
Directors, the Company bolsters the oversight function of the Board of Directors
and ensures fair and highly-transparent management.
The Company has introduced an Executive Officer system aiming to strengthenGroup management by separating management oversight and decision-making
function from business execution function, both of which have traditionally been
the responsibility of Directors, to enhance the execution function. Individual
Executive Officers appointed by the Board of Directors execute business based on
the administrative authorities delegated in accordance with internal regulations,etc. and based on Company policies determined by the Board of Directors and the
directions of the Chief Executive Officer.
The Company’s Executive Committee comprises the Chief Executive Officer andExecutive Officers nominated by the Board of Directors. The Executive Committee
meets once a week in principle, and determines certain matters regarding overall
Group company business execution.
During the fiscal year under review, the Board of Directors meeting was held 15
times. At these meetings, in addition to deliberating and making decisions about
important matters concerning company management, the Board of Directors
regularly received reports from Directors and Executive Officers, allowing theBoard of Directors to oversee the execution of duties and business. The Executive
Committee meeting was held 50 times, and certain matters related to businessexecution by the Company and Group companies were deliberated and decided
upon.
The Audit & Supervisory Committee receives regular reports from the internal
audit department on the implementation status and results of internal audits. Whennecessary, the Audit & Supervisory Committee may request a report to Directors,
Executive Officers, or business execution departments of the Company or Group
companies. The Audit & Supervisory Committee also audits and supervises theexecution of duties by Directors and business operations by Executive Officers
while cooperating with the Accounting Auditor as needed.
Audit & Supervisory Committee Members attend Board of Directors meetings andother important meetings and request reports from business execution departments
as necessary to collect information on the Company’s execution of business
operations.
The Company has established the Audit & Supervisory Committee Department inorder to assist the duties of the Audit & Supervisory Committee and assigns
dedicated staff to implement measures for increasing the effectiveness of audit
operations.
During the fiscal year under review, the Audit & Supervisory Committee meeting
was held 14 times.

9Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets for the year ended March 31, 2021
(Millions of yen)
Shareholders’ Equity
Share Capital

Capital Surplus

117,822

111,065

221

221

Balance at April 1, 2020

Retained
Earnings
342,081

Treasury Shares

Total
Shareholders’Equity(27,339)543,630

Changes during Period
Issuance of New Shares

442

Dividends of Surplus(14,682)

Profit Attributable to Owners of Parent

42,198Purchase of Treasury Shares
Disposal of Treasury Shares
Change in Ownership Interest of Parent due toTransactions with Non-controlling Interests(14,682)
42,198(2,798)(2,798)

11

11

3,146

3,146

Net Changes in Items Other Than Shareholders’ Equity
Total Changes during Period

221

3,367

27,516(2,786)28,318

Balance at March 31, 2021

118,043

114,433

369,597(30,125)

571,948

Accumulated Other Comprehensive Income
Valuation
RemeasureTotal
Share
NonDeferred
Foreign
Difference
Revaluation
ments of Accumulated Acquisition controlling
Gains orCurrency
on AvailableReserve forDefinedOther
RightsInterests
Losses on
Translation
for-saleLand
BenefitComprehenHedges
Adjustment
Securities
Plans
sive Income
Balance at April 1, 2020

2,915

1,044

7,860

(1,322)(3,950)

6,547

1,850

13,091

Total Net
Assets565,120

Changes during Period
Issuance of New Shares

442

Dividends of Surplus
Profit Attributable to Owners of
Parent(14,682)

Purchase of Treasury Shares(2,798)

Disposal of Treasury Shares
Change in Ownership Interest of
Parent due to Transactions with
Non-controlling Interests
Net Changes in Items Other Than
Shareholders’ Equity

42,198

11
3,146
4,911

(2,386)

8

327

1,970

4,831

(444)

(11,475)(7,087)

Total Changes during Period

4,911(2,386)

8

327

1,970

4,831

(444)

(11,475)

21,230

Balance at March 31, 2021

7,827

(1,342)

7,869

(995)

(1,979)11,379

1,406

1,616

586,350

Note: The figures are denoted by rounding fractions down to the unit indicated.

10Notes to Consolidated Financial Statements
1. Notes to Significant Matters for the Basis for the Preparation of Consolidated Financial Statements(1) Scope of Consolidation
1) Consolidated subsidiaries
 Number of consolidated subsidiaries:
41
 Names of principal consolidated subsidiaries:
The names of principal consolidated subsidiaries arelisted in “1. Current status of the Group (3) Status ofparent company and major subsidiaries 2) Major
subsidiaries” of the Business Report.
The Group acquired shares in NOMURA REAL ESTATE UK LIMITED and 127 Charing Cross
Road Limited during the fiscal year under review, and they have been included in the scope of
consolidation.
During the fiscal year under review, NREG TOSHIBA BUILDING FACILITIES Co., Ltd. wasabsorbed and merged into Nomura Real Estate Partners Co., Ltd., which is a consolidated subsidiary of
the Company, and has been excluded from the scope of consolidation.
Furthermore, during the fiscal year under review, NREG TOSHIBA BUILDING Co., Ltd. and Geo
Akamatsu Co., Ltd. changed their corporate names to Nomura Real Estate Building Co., Ltd. andNomura Real Estate Retail Properties Co., Ltd., respectively.
2) Unconsolidated subsidiaries
 Name of principal unconsolidated subsidiary:
Minami Azabu Kaihatsu Co., Ltd.
 Reason for the exclusion from the scope of consolidation:
Unconsolidated subsidiaries are excluded from the scope of
consolidation because they are all small companies and theCompany’s interests in their respective total assets,
operating revenue and profit and loss (the amountequivalent to equity shareholdings) as well as retained
earnings (the amount equivalent to equity shareholdings) do
not significantly affect the consolidated financial statementsof the Nomura Real Estate Group (the “Group”).
(2) Application of Equity Method
1) Unconsolidated subsidiaries accounted for using the equity method
 Number of unconsolidated subsidiaries accounted for using the equity method: 2
 Name of principal unconsolidated subsidiary:
Minami Azabu Kaihatsu Co., Ltd.
2) Affiliated companies accounted for using the equity method
 Number of affiliated companies accounted for using the equity method: 30
 Name of principal affiliated company:
Ginza Parking Center Co., Ltd.
MV VIET NAM REAL ESTATE TRADING JOINTSTOCK COMPANY, DRI GP 2 Co., Ltd., and MV1 VIET
NAM REAL ESTATE TRADING LIMITED LIABILITYCOMPANY became the Company’s affiliated companies
accounted for using the equity method for reasons
including that the Group acquired their shares during the
fiscal year under review.
(3) Fiscal Year, Etc. of the Consolidated Subsidiaries
Among consolidated subsidiaries, the account closing date of UNJ Properties, LLC is December 31.
The company’s financial statements as of the consolidated account closing date, prepared on a basis
similar to that for the year-end closing, are used in the preparation of consolidated financial statements.
Among consolidated subsidiaries, the account closing date of Nomura Real Estate Consulting(Beijing) Co., Ltd., NOMURA REAL ESTATE ASIA PTE. LTD., NOMURA REAL ESTATE HONG
KONG LIMITED, HCMC office investment Limited, LIM HOLDINGS LTD, Lothbury Investment
Management Group Limited and other 12 companies, Zen Plaza Investment Limited, ZEN PLAZA CO.,LTD., NOMURA REAL ESTATE VIETNAM CO., LTD., NOMURA REAL ESTATE (THAILAND)
11

CO., LTD. and NOMURA REAL ESTATE UK LIMITED is December 31. The account closing date ofMidosuji Mirai Development, LLC is February 28.
Financial statements for these companies as of that date are used in the preparation of consolidated
financial statements. In the case of significant transactions that took place between the account closing
date of the consolidated subsidiaries and the consolidated account closing date, necessary adjustments
are made for consolidation purposes.
(4) Accounting Standards and Methods
1) Valuation standards and methods for principal assets
A. Securities Held-to-maturity debt securities:
Held-to-maturity debt securities are stated at amortized cost(by the straight-line method).
 Available-for-sale securities:
Available-for-sale securities with market value
Available-for-sale securities with market value are stated atfair market value based on market price, etc. at the accountclosing date. (Unrealized gains and losses are reported, netof the applicable taxes, as a separate component of Net
Assets. Cost of securities sold is determined by themoving-average method.)
Available-for-sale securities without market value
Available-for-sale securities without market value arestated at cost by the moving-average method.
B. Derivatives
C. Inventories

Derivatives are stated using the market value method.
Inventories are mainly stated at cost, determined by the
specific identification cost method (the amounts ofinventories in the Balance Sheet are determined by thewrite-down method reflecting decreased profitability).
2) Depreciation and amortization method for significant depreciable assets
A. Property, plant and equipment (except for leased assets)
Property, plant and equipment are depreciated mainly by thestraight-line method. Useful lives are generally as follows:
Buildings and structures
2 to 65 years
B. Intangible assets (except for leased assets)
Intangible assets are amortized by the straight-line method.
Costs of software for internal use are amortized based on theuseable period within the Company (5 years).
C. Leased assets
Leased assets are depreciated using the straight-line method,
assuming the lease period to be the useful life and theresidual value to be zero.
Of finance lease transactions not involving transfer ofownership, lease transactions which started on or before
March 31, 2008 are accounted for in accordance with themethod applicable to ordinary lease transactions.
3) Standards for the provision of significant allowances
A. Allowance for doubtful accounts
In order to prepare for possible bad debt losses on notes andaccounts receivable - trade, loans and others, allowance for
doubtful accounts is provided at an amount calculated on
the basis of a historical bad debt ratio for normal claims, andat an estimated uncollectible amount determined on thebasis of individual assessments of collectability for specificclaims with potential losses.
B. Provision for bonuses

To prepare for the payment of employee bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.

C. Provision for directors’ bonuses

To prepare for the payment of directors’ bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.
12

D. Provision for loss on business liquidation
An estimated amount of losses arising in connection withthe withdrawal from businesses is reserved.
E. Provision for Stocks Payment

To prepare for the delivery of the Company’s shares to
officers and employees pursuant to the share delivery
regulation, an estimated cost as of the end of the fiscal year
under review is reserved.
4) Other significant matters for the preparation of consolidated financial statements
A. Standards for the recording of net defined benefit liability
 Method for attributing estimated retirement benefits to periods:
To calculate retirement benefit liabilities, the estimatedamount of retirement benefits is attributed to the period up
to the end of the fiscal year under review based on a benefit
formula basis.
 Method for amortization of actuarial gains and losses and prior service costs:
Prior service costs are amortized by the straight-line
method over a certain number of years (10 years) within
the average number of remaining service years of theeligible employees at the time of accrual.
Actuarial gains and losses are amortized by the straightline method over a certain number of years (mostly 10
years) within the average number of remaining service
years of the eligible employees at the time of accrual ineach fiscal year, and allocated proportionately from thefiscal year following the respective fiscal year of accrual.
B. Standards for the provision of significant revenues and expenses
 Basis for the recording of revenue and cost of completed work:
The percentage-of-completion method (percentage ofcompletion is estimated based on cost method) is applied
when the cost outcomes of the construction activities
through until the end of the fiscal year under review can bemeasured with certainty; otherwise the completed-contract
method is applied.
 Basis for the recording of advertising expenses
In the housing sales business, in order to appropriatelyreflect revenues and any related expenses, advertisingexpenses as selling expenses, incurred before the handoverof property to customers are recognized as prepaid
expenses and collectively expensed upon handover.
C. Standards for the translation of important foreign currency-based assets or liabilities into Japaneseyen
All foreign currency-based monetary receivables andpayables are translated into Japanese yen at the spot
exchange rates in effect at the consolidated account closing
date. Differences arising from such translation arerecognized as gain or loss. The asset and liability accountsof the overseas subsidiaries and others are translated into
Japanese yen at the spot exchange rates prevailing at therespective account closing dates of the subsidiaries andothers and the revenue and expense accounts are translated
into Japanese yen at the average rates of exchange for theyear. Differences arising from such translation arepresented as “Foreign currency translation adjustment” in
Net Assets.
D. Significant hedge accounting method
 Hedge accounting method:
Hedging transactions are accounted for using deferral hedge
accounting, which requires the unrealized gains or losses tobe deferred as assets or liabilities until the losses or gains on13

the underlying hedged items are recognized. For interest
rate swaps that meet certain hedging criteria, the Groupapplies exceptional treatment and for currency swaps thatmeet certain hedging criteria, the transactions are accounted
for by the furiate (allocation) method.
 Hedging instruments and hedged items:

 Hedge policy:<Hedging instruments><Hedged items>
Interest rate swap contracts
Borrowings
Currency swaps and foreign Securities denominatedexchange forward contracts
in foreign currencies
In accordance with internal rules, interest rate fluctuationand foreign exchange fluctuation risks are hedged.

 Method for assessing the effectiveness of hedges:
The Group evaluates hedge effectiveness based on the ratioof changes determined by comparing the cumulativechanges in cash flows or cumulative market fluctuations of
the hedged items to the cumulative changes in cash flows
or cumulative market fluctuations of the hedging
instrument. However, the Group omits the assessment ofhedge effectiveness in the case of interest rate swaps forwhich the Group applies the exceptional treatment.
E. Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over a
period of 14 to 20 years.
F. Accounting for consumption taxes
The tax-exclusion method is used to account for national
and local consumption taxes. However, non-deductible
consumption taxes on assets are included in the acquisition
costs, and other non-deductible consumption taxes are
expensed as incurred.
(Additional Information)
The Group applied the “Accounting Standard for Accounting Policy Disclosures, Accounting
Changes and Error Corrections” (ASBJ Statement No. 24 revised on March 31, 2020) to its
consolidated financial statements as of the end of and for the fiscal year under review. As the accounting
policies and procedures adopted in cases where the relevant provisions set forth in accounting standards
and other regulations are not clear, the “basis for the recording of advertising expenses” was newly
disclosed in “B. Standards for the provision of significant revenues and expenses.”
2. Change in Presentation Method
The Group applied the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ
Statement No. 31 issued on March 31, 2020) to its consolidated financial statements as of the end of andfor the fiscal year under review, and stated the “Notes on Accounting Estimates.”
3. Notes on Accounting Estimates(1) Valuation of Inventories
Inventories held by the Group mainly consist of property held for housing sale and rental housing
held for sale.
1) Amount recorded in the consolidated financial statements for the fiscal year under review
Loss on valuation of inventories: ¥540 million
2) Information that contributes to understand the content of accounting estimates
A. Property held for housing salei Calculation method
For property held for housing sale, the net selling value is compared to the book value tocalculate a loss on valuation. The net selling value is based on the selling price set in each businessplan that is developed at the time of land acquisition, construction order placement, and the start of14

sales, as well as the cost, and other variables. In addition to the above timings, the net selling value
may be changed depending on the business progress or the selling situation.
ii Main assumptions
The main assumptions used to determine the net selling value are the selling price and the cost.
The Company estimates them on the basis of the location, scale, and salability of a property,
surrounding cases, market outlook, amount expected from past experience, and other information.
The Company assumes that the novel coronavirus disease (“COVID-19”) will pass and not last fora long time and that the effects of the spread of the COVID-19 on housing market conditions will
be limited.
iii Effects on consolidated financial statements for the next fiscal year
Estimation of selling prices and costs, which are the main assumptions, involves uncertainty.
The estimates of selling prices may differ from the future results for reasons including any change
in housing market conditions, and estimates of costs may differ from the future results for reasons
including any change in construction market conditions, additional construction work, or delays inconstruction.
B. Rental housing held for salei

Calculation method
For rental housing held for sale, the net selling value is compared to the book value to calculatea loss on valuation. The net selling value is based on the expected selling price set at the time ofland acquisition, construction order placement, the start of leasing (recruiting of tenants), anddecision of selling, as well as the cost, and other variables. For rental housing held for sale forwhich there is concern about declining profitability given the progress of tenant leasing, theappraisal value by a real estate appraiser is used as the expected selling price.

ii Main assumptions
The main assumptions used to determine the net selling value are the expected selling price andthe cost. The Company estimates them on the basis of the location, scale, and salability of aproperty, surrounding cases, market outlook, and rents, occupancy rates, and capitalization rates
from past experience, and other information. The Company assumes that the COVID-19 will passand not last for a long time and that the effects of the spread of the COVID-19 on real estateleasing market conditions and real estate investment market conditions will be limited.
iii Effects on consolidated financial statements for the next fiscal year
Estimation of expected selling prices and costs, which are the main assumptions, involves
uncertainty. The estimates of expected selling prices may differ from the future results for reasons
including any change in the market conditions of real estate leasing or investment, and estimates ofcosts may differ from the future results for reasons including any change in construction market
conditions, additional construction work, or delays in construction.
(2) Impairment of Non-Current Assets
Non-current assets held by the Group mainly consist of property held for leasing.
1) Amount recorded in the consolidated financial statements for the fiscal year under review
Impairment losses: ¥1,285 million
2) Information that contributes to understand the content of accounting estimatesiCalculation method
If there is an indication that the book value of property held for leasing may not be recoverable,
a determination is made regarding whether or not the property is impaired, and if it is, impairment
losses are calculated.

15

(Indication of impairment)
The Group considers the following events as indications of an impairment of property held forleasing.
Property that reports or is expected to report an operating loss, which is lease revenue less costof lease revenue, for a second consecutive termProperty in which any change that decreases its recoverable amount materially has occurred or
is expected to occurProperty whose business environment has deteriorated or is expected to deteriorate significantly

Property whose market price has significantly declined (around 50% or more)(Recognition and measurement of impairment losses)
If the Group determines that there is an indication that a property may be impaired, the Group
compares its book value to the total amount of undiscounted future cash flows and deems it
necessary to recognize impairment losses if the book value is larger. The Group measures
impairment losses for such property as the difference between the book value and the recoverable
amount.
The recoverable amount of a property is its net selling value or its value in use. Appraisal value
by a real estate appraiser or other value is used as the net selling value, and the value in use iscalculated by discounting future cash flows.
ii Main assumptions
The main assumptions used to determine undiscounted future cash flows and the value in use
are lease revenue, cost of lease revenue and discount rates. The Group estimates them on the basisof the location and scale of a property, surrounding leasing cases, market outlook, and rents,
occupancy rates, and capitalization rates from past results, and other information. The Groupassumes that the COVID-19 will pass and not last for a long time and that effects of the spread of
the COVID-19 on real estate leasing market conditions will be limited.
iii Effects on consolidated financial statements for the next fiscal year
Estimation of lease revenue and cost of lease revenue, which are the main assumptions,involves uncertainty, and the estimates may differ from the future results for reasons including any
change in real estate leasing market conditions.
4. Notes to Consolidated Balance Sheet(1) Pledged Assets and Secured Liabilities
Investment securities in the amount of ¥158 million are pledged as collateral for a portion of liabilities
of investee companies.
(2) Accumulated Depreciation of Property, Plant and Equipment¥188,757 million(3) Contingent Liabilities
1) Guaranteed Obligations
The following are customers for which bank loans, etc. have been guaranteed.
The Company and its business partners are under an obligation to guarantee debts of two companies,
Origin One Sukhumvit 24 Company Limited and Origin One Phrom Phong Company Limited,
according to their capital contribution ratio, and the figures in parentheses below represent the amounts
guaranteed by the Company according to its capital contribution ratio.
Customers using housing loans¥75,666 million
Joint operators of EBS buildings¥243 million
Haneda Mirai Special Purpose Company¥65 million
Tokio Property Services Pte Ltd¥16 million
Origin One Sukhumvit 24 Company Limited¥290 million(¥142 million)
Origin One Phrom Phong Company Limited¥134 million(¥65 million)
Total¥76,416 million(¥76,199 million)
162) Additional Capital Contribution Obligations, etc.
The Company has additional capital contribution obligations, etc. to the following subsidiaries andassociates according to the capital contribution ratio with business partners in relation to loans received
from financial institutions by the companies.
The outstanding loans payable by the subsidiaries and associates are as follows, and the figures inparentheses indicate the amount based on the Company’s capital contribution ratio to the companies.
ORIGIN PARK T1 COMPANY LIMITED¥8,881 million(¥4,352 million)
ORIGIN VERTICAL COMPANY LIMITED¥107 million(¥52 million)
Origin One Thonglor Co., Ltd.
¥2,088 million(¥1,023 million)
PARK ORIGIN RATCHATHEWI COMPANY LIMITED¥1,697 million(¥831 million)
PARK ORIGIN PRARAM 4 COMPANY LIMITED¥2,768 million(¥1,356 million)
Total¥15,543 million(¥7,616 million)(4) Revaluation of Land
Under the “Act on Revaluation of Land” (Act No. 34 of March 31, 1998), the Company revalued its
land held for business use. The tax amount for the valuation difference is accounted for as “Deferred
tax liabilities for land revaluation” in Liabilities and the difference net of such tax amount is recorded
as “Revaluation reserve for land” in Net Assets.
∙ Method of revaluation:
The value of land is determined based on a reasonable adjustment to the assessed value of fixed assets
as stipulated in Item 3, Article 2 of the “Order for Enforcement of the Act on Revaluation of Land”(Cabinet order No. 119 of March 31, 1998).
∙ Date of revaluation: March 31, 2002
(5) As a result of reviewing the purpose of holding assets, ¥56,798 million was transferred from non-current
assets to real estate for sale.
5. Notes to Consolidated Statement of Changes in Net Assets(1) Total Number of Shares Issued
Number of shares
Number of shares
Increase
Decrease
as of April 1, 2020
as of March 31, 2021
(Thousand shares)(Thousand shares)(Thousand shares)(Thousand shares)
Common stock
192,875
223–
193,099
Note: The increase in the number of issued shares among common stock of 223 thousand shares consists ofan increase due to the exercise of stock options.
Note: The Board of Directors of the Company passed a resolution to cancel its treasury shares pursuant to
the provisions of Article 178 of the Companies Act at the Board of Directors meeting held on January
28, 2021. Of the treasury shares, cancellation of the following has not been completed as of the end of
the fiscal year under review.
Book value¥25,803 million
Type of shares
Common stock
Number of shares
10,528,000 shares
The Company plans to cancel the above treasury shares and those purchased during the period
from April 1 to 26, 2021 on May 31, 2021.
Total number of shares to be cancelled:
10,980,000 shares
Type of shares17

(2) Dividends from Surplus
1) Dividends paid
(Resolution)

Type of shares

Total amount ofdividends(Millions of yen)

Dividends
per share(Yen)

Effective
date

Record date

May 1, 2020
March 31,
Meeting of theCommon stock
7,339
40.0
June 9, 2020
2020
Board of Directors
October 27, 2020
September 30, December 1,
Meeting of theCommon stock
7,343
40.0
2020
2020
Board of Directors
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on May 1, 2020
includes ¥78 million in dividends for the Company’s shares held in the executive compensation BIP
trust and ESOP (Employee Stock Ownership Plan) trust for granting stock for employees.
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on October 27,
2020 includes ¥78 million in dividends for the Company’s shares held in the executive compensation
BIP trust and ESOP trust for granting stock for employees.

2) Dividends whose record date is in the fiscal year under review but whose effective date is thereafter(Resolution)

Type ofsharesTotal amount ofdividends(Millions of yen)

Dividend
resource

Dividends
per share(Yen)

Record date

Effective
date

April 27, 2021
CommonRetained
March 31,
Meeting of the
7,759
42.5
June 4, 2021
stock
Earnings
2021
Board of Directors
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on April 27,
2021 includes ¥83 million in dividends for the Company’s shares held in the executive compensation
BIP trust and ESOP trust for granting stock for employees.

(3) Share Acquisition Rights
The number of shares subject to the share acquisition rights (those for which the exercise period has
arrived) as of March 31, 2021:
Nomura Real Estate Holdings, Inc.
The 2nd share acquisition rights in FY2014
The 3rd share acquisition rights in FY2014
The 1st share acquisition rights in FY2015
The 2nd share acquisition rights in FY2015
The 3rd share acquisition rights in FY2015
The 5th share acquisition rights in FY2015
The 1st share acquisition rights in FY2016
The 2nd share acquisition rights in FY2016
The 3rd share acquisition rights in FY2016
The 1st share acquisition rights in FY2017
The 2nd share acquisition rights in FY2017
The 3rd share acquisition rights in FY2017

Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock
Common stock

26,500 shares
125,200 shares
8,700 shares
50,200 shares
314,200 shares
22,000 shares
37,800 shares
126,200 shares
251,300 shares
39,800 shares
153,600 shares
435,600 shares

6. Notes to Financial Instruments(1) Status of Financial Instruments
The Group restricts fund management to deposits and others with safe and high market liquidity,
and fund procurement is mainly treated by bank loans and bond issuance. In accordance with internal
rules, derivatives are not used for speculative purposes, but for managing exposure to financial risks as
described in detail below.
Equity investments and investment securities are principally stocks, investment units, etc., and theseare held for the promotion of businesses. The fair values of stocks and investment units are obtained at
the end of each month. Although securities denominated in foreign currencies are exposed to foreignexchange fluctuation risks, a portion are hedged through derivative transactions (currency swaps andforeign exchange forward contracts). Floating-rate loans payable are exposed to interest rate fluctuation
risks, but derivative transactions (interest rate swaps) are utilized as hedging instruments for floatingrate long-term loans payable to hedge risks of fluctuations in interests paid and fix interest expenses.
18

(2) Fair Values of Financial Instruments
Book values in the consolidated balance sheet, fair values, and the differences between these values
as of March 31, 2021 are as follows. Financial instruments whose fair values are deemed extremely
difficult to determine are not included in the following table. (Please refer to Note 2.)(Millions of yen)

(1) Cash and deposits

Book value in the
consolidated balance
sheet
71,625

Fair value

Difference

71,625–(2) Investment securities *1

40,52640,54215

Total assets

112,152

112,167

15(1) Short-term loans payable *2

31,00031,000–(2) Bonds payable *3

170,000

171,631

1,631(3) Long-term loans payable *2

807,500

823,714

16,214

1,008,500

1,026,345

17,845(3,913)(3,913)–

Total liabilities
Derivative transactions *4*1. The stated amount includes Japanese government bonds that have been recorded in “Lease and guarantee
deposits.”*2. Current portion of long-term loans payable are included in “(3) Long-term loans payable.”*3. Current portion of bonds are included in “(2) Bonds payable.”*4. The value of assets and liabilities arising from derivatives is shown at net value. The figures in parenthesis
indicate net liabilities.

Notes: 1. Method of fair value measurement of financial instruments
Assets(1) Cash and deposits
Since these items are settled in a short period of time, the fair values approximate their bookvalues. Accordingly, the book values are presented as their fair values.
(2) Investment securities
The fair values of stocks, investment units, etc. are mainly based on the prices on exchanges.
Liabilities(1) Short-term loans payable
Since these items are settled in a short period of time, the fair values approximate their bookvalues. Accordingly, the book values are presented as their fair values.
(2) Bonds payable
These items are issued mainly by the Company and the fair values are based on the market prices.
(3) Long-term loans payable
The fair value of long-term loans payable is based on the method of calculation whereby the sumof principal and interest is discounted by an interest rate assumed when a new, similar loan ismade. Long-term loans payable with floating interest rates are prescribed to be subject to
exceptional treatment applicable to interest rate swaps. Hence, the fair value is based on themethod of calculation whereby the sum of principal and interest, treated in combination with thesaid interest rate swap, is discounted by a reasonably estimable interest rate assumed when asimilar loan is made.
Derivative transactions
The fair values of derivatives are based on the prices obtained from the counterparty financial
institutions.

19

2. Financial instruments whose fair values are deemed extremely difficult to determine(Millions of yen)Book value in the consolidated
Categorybalance sheet
Unlisted stocks, etc. *1, 2
75,821*1. Unlisted stocks, etc. are excluded from “(2) Investment securities” described above because they do
not have market prices and their fair values are deemed extremely difficult to determine.
*2. “Unlisted stocks, etc.” includes unlisted stocks, etc. recorded in “Equity Investments.”

7. Notes to Real Estate for Rent
(1) Status of Real Estate for Rent
Some of the Company’s consolidated subsidiaries own rental office buildings and rental retailfacilities (including land) in Tokyo and other regions.
(2) Fair Values of Real Estate for Rent
(Millions of yen)Book value in the consolidatedbalance sheet

Fair value as of March 31, 2021

Real estate for rent
636,953815,677
Properties including the
portion used as real estate for25,831
56,730rent
Notes: 1. Book values in the consolidated balance sheet are the amounts determined by deducting
accumulated depreciation from the acquisition cost.
2. Fair values as of March 31, 2021 are determined based primarily on values according to Real
Estate Appraisal Standards (including adjustments based on certain indexes). However, if nosignificant fluctuations in certain appraisal values or indexes considered to appropriatelyreflecting market values have occurred since the time of acquisition from third party or the timeof the most recent appraisal, the Group bases the fair value on an amount that has been adjusted
using the aforesaid values or indexes.
3. Some rental office buildings are regarded as properties including the portion used as real estate
for rent since they are used by the Company and certain consolidated subsidiaries.

8. Notes to Per Share Information(1) Net Assets Per Share¥3,229.80(2) Basic Earnings Per Share¥232.53
Note: The Company’s shares held in the executive compensation BIP trust and ESOP trust for granting
stock for employees are included in the number of treasury shares deducted from the total number ofshares issued at the end of the fiscal year when calculating net assets per share. Furthermore, these
are included in the treasury shares deducted in the calculation of the average number of shares
during the period used in the calculation of basic earnings per share. For the fiscal year under review,the number of these treasury shares deducted in the calculation of net assets per share was 1,962
thousand shares at the end of the period, and the average number of treasury shares during the period
deducted in the calculation of basic earnings per share was 1,964 thousand shares.
9. Notes to Significant Subsequent Events
Not applicable.
10. Other Notes
Not applicable.

20Non-Consolidated Financial Statements
Non-Consolidated Statement of Changes in Net Assets for the year ended March 31, 2021
(Millions of yen)
Shareholders’ Equity
Capital Surplus

Retained Earnings
Other Retained Earnings

Balance at April 1, 2020

Share Capital

Legal Capital
Surplus

Total Capital
Surplus117,822

118,185

118,185

221

221

221

Total
Shareholders’EquityReserve forPurchase ofSpecific
SharesRetained
Earnings
Brought
Forward–75,71275,712(14,682)(14,682)(14,682)

(33)

–

–

21,91821,918

Total Retained Treasury Shares
Earnings(27,339)

284,381

Changes during Period
Issuance of New Shares
Dividends of Surplus
Provision of Reserve forPurchase of Specific Shares

442
33

Profit21,918Purchase of Treasury Shares(2,798)(2,798)

Disposal of Treasury Shares
Net Changes in Items Other
Than Shareholders’ Equity

11

11

Total Changes during Period

221

221

221

33

7,202

7,235

(2,786)

4,891

Balance at March 31, 2021

118,043

118,407

118,40733

82,91482,948(30,125)

289,273

Valuation and Translation Adjustments

Balance at April 1, 2020

Valuation
Difference on
Available-forsale Securities

Deferred Gains
or Losses on
Hedges(2)(14)

Total Valuation Share Acquisition
Total Net Assets
Rightsand Translation
Adjustments
(17)

1,850

286,214

Changes during Period
Issuance of New Shares

442

Dividends of Surplus
Provision of Reserve forPurchase of Specific Shares(14,682)

Profit21,918Purchase of Treasury Shares(2,798)

Disposal of Treasury Shares
Net Changes in Items Other
Than Shareholders’ Equity
Total Changes during Period

(2)

(446)

(2)

–

(2)

(444)

4,444

Balance at March 31, 2021

(5)

(14)

(19)

1,406

290,659

–

11
–

(2)

(444)

Note: The figures are denoted by rounding fractions down to the unit indicated.

21

Notes to Non-Consolidated Financial Statements
1. Notes to Matters for the Significant Accounting Policies(1) Valuation Standards and Methods for Assets
1) Valuation standards and methods for securities
 Shares of subsidiaries and affiliated companies
Shares of subsidiaries and affiliated companies are stated atcost by the moving-average method.
 Available-for-sale securities:
Available-for-sale securities without market value
Available-for-sale securities without market value are statedat cost by the moving-average method.
2) Valuation standards and methods for derivatives, etc.
Derivatives
Derivatives are stated using the market value method.
(2) Depreciation and Amortization Method for Noncurrent Assets
1) Property, plant and equipment (except for leased assets)
Property, plant and equipment are depreciated by thestraight-line method.
2) Intangible assets (except for leased assets)
Intangible assets are amortized by the straight-line method.
Costs of software for internal use are amortized based on theuseable period within the Company (5 years).
3) Leased assets
Leased assets are depreciated using the straight-line
method, assuming the lease period to be the useful life andthe residual value to be zero.
(3) Standards for the Provision of Allowances
1) Allowance for doubtful accounts
In order to prepare for possible bad debt losses on notes
and accounts receivable - trade, loans and others,
allowance for doubtful accounts is provided at an amountcalculated on the basis of a historical bad debt ratio fornormal claims, and at an estimated uncollectible amountdetermined on the basis of individual assessments ofcollectability for specific claims with potential losses.
2) Provision for bonuses
To prepare for the payment of employee bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.
3) Provision for directors’ bonuses
To prepare for the payment of directors’ bonuses, anestimated amount corresponding to the portion of the bonus
payments in the fiscal year under review is reserved.
4) Provision for Stocks Payment
To prepare for the delivery of the Company’s shares to
officers and employees pursuant to the share delivery
regulation, an estimated cost as of the end of the fiscal year
under review is reserved.
(4) Other Basic Matters for the Preparation of Non-Consolidated Financial Statements
1) Accounting for deferred assets
The costs are fully charged to income when disbursed.
2) Significant hedge accounting method
 Hedge accounting method:
Hedging transactions are accounted for using deferral hedge
accounting, which requires the unrealized gains or losses tobe deferred as assets or liabilities until the losses or gains on
the underlying hedged items are recognized. For interest
rate swaps that meet certain hedging criteria, the Groupapplies exceptional treatment.
 Hedging instruments and hedged items:<Hedging instruments><Hedged items>
Interest rate swap contracts
Borrowings
22 Hedge policy:

In accordance with internal rules, interest rate fluctuation
risks are hedged.

 Method for assessing the effectiveness of hedges:
The Company evaluates hedge effectiveness based on theratio of changes determined by comparing the cumulativechanges in cash flows of the hedged items to the
cumulative changes in cash flows of the hedging
instrument. However, the Company omits the assessmentof hedge effectiveness in the case of interest rate swaps forwhich the Company applies the exceptional treatment.
3) Accounting for consumption taxes

The tax-exclusion method is used to account for national
and local consumption taxes.

2. Notes to Non-Consolidated Balance Sheet(1) Accumulated Depreciation of Property, Plant and Equipment¥176 million(2) Monetary Receivables from and Payables to Subsidiaries and Associates
1) Short-term monetary receivables¥291,147 million
2) Short-term monetary payables¥45,325 million(3) Contingent Liabilities
Guaranteed obligations
The following are the subsidiaries and associates for which bank loans, etc. have been guaranteed.
NOMURA REAL ESTATE (THAILAND) CO., LTD¥845 million
Tokio Property Services Pte Ltd¥16 million
Total¥862 million
3. Notes to Non-Consolidated Statements of Income
Amount of business with subsidiaries and associates
Amount of operating transactions
Operating revenue
Operating expenses¥44,822 million¥125 million

4. Notes to Non-Consolidated Statements of Changes in Net Assets
The number of treasury shares
Type of shares

Number of shares
as of April 1, 2020
(Thousand shares)

Increase(Thousand shares)

Decrease(Thousand shares)

Number of shares asof March 31, 2021
(Thousand shares)

Common stock
11,3671,128
512,490Notes: 1. The above treasury shares include the treasury shares held in the trust account of the executive
compensation BIP trust and ESOP trust for granting stock for employees.
2. The 1,128 thousand shares increase in treasury shares of common stock is due to an increase
from the purchase of treasury shares by resolution of the Board of Directors.
3. The 5 thousand shares decrease in treasury shares of common stock is due to the delivery andsale of the Company’s shares by the executive compensation BIP trust.
4. The Board of Directors of the Company passed a resolution to cancel its treasury sharespursuant to the provisions of Article 178 of the Companies Act at the Board of Directors
meeting held on January 28, 2021. Of the treasury shares, cancellation of the following has notbeen completed as of the end of the fiscal year under review.
Book value¥25,803 million
Type of shares
Common stock
Number of shares
10,528,000 shares
The Company plans to cancel the above treasury shares and those purchased during theperiod from April 1 to 26, 2021 on May 31, 2021.
Total number of shares to be cancelled:
10,980,000 shares

23

5. Notes to Tax Effect Accounting
Breakdown of deferred tax assets and deferred tax liabilities by major cause
Deferred tax assets
Loss on valuation of shares of subsidiaries and associates
Allowance for doubtful accounts
Share-based compensation expenses
Provision for bonuses
Accrued enterprise tax
OthersSubtotal deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities
Total deferred tax liabilities
Net deferred tax assets(Millions of yen)
1,571
388
351
77
28
50
2,467
(1,971)
496
(0)
(0)
495

6. Notes to Related Party Transactions(1) Subsidiaries, Affiliated Companies and Others
Type

Subsidiary

Name

Nomura Real
EstateDevelopment
Co., Ltd.

Voting rights
holding orheld (%)

Directly
holding 100.0

Relationship with theCompany

Management
guidance, borrowing
and lending of funds

Transaction
details

Lending offunds

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

471,823

Short-term loans
receivable

260,540

195,000

Long-term loans
receivable fromsubsidiaries andassociates

805,000

Receipt ofinterest

12,820––Subsidiary

Nomura Real
Estate Urban
Net Co., Ltd.

Directly
Management guidance
holding 100.0

Deposit offunds

77,308Deposits received

17,688

Subsidiary

Nomura RealDirectly
Estate Partners
Management guidance
holding 100.0
Co., Ltd.

Deposit offunds

111,976

Deposits received

18,298

Subsidiary

Nomura RealDirectly
Estate Building
holding 100.0
Co., Ltd.

Lending of
funds

24,685

Short-term loans
receivable

21,295

Management
guidance, borrowing
and lending of funds

Notes: 1. The interest rates for lending and deposit of funds are determined in a rational manner by considering
market interest rates.
2. Nomura Real Estate Urban Net Co., Ltd. changed its corporate name to Nomura Real Estate Solutions
Co., Ltd. as of April 1, 2021.

(2) Officers, Major Individual Shareholders and Others
Title

Name

Voting rights
holding orheld (%)

Relationship with theCompany

Transaction
details

Amount oftransaction(Millions of yen)
(Note 1)

Officer

Shigeyuki
Yamamoto

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

15––

Officer

Toshiaki Seki

Held
0.0

Director of theCompany

Exercise ofstock options(Note 2)

12––

Officer

Takashi Kaku

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

12––Notes: 1. Amount of transaction does not include consumption taxes.
2. Stock options granted by the Company pursuant to the Companies Act.

24

Items

Fiscal year-end
balance(Millions of yen)

7. Notes to Per Share Information(1) Net Assets Per Share¥1,601.55(2) Basic Earnings Per Share¥120.78
Note: The Company’s shares held in the executive compensation BIP trust and ESOP trust for granting
stock for employees are included in the number of treasury shares deducted from the total number ofshares issued at the end of the fiscal year when calculating net assets per share. Furthermore, these
are included in the treasury shares deducted in the calculation of the average number of shares
during the period used in the calculation of basic earnings per share. For the fiscal year under review,the number of these treasury shares deducted in the calculation of net assets per share was 1,962
thousand shares at the end of the period, and the average number of treasury shares during the period
deducted in the calculation of basic earnings per share was 1,964 thousand shares.
8. Notes to Significant Subsequent Events
Not applicable.
9. Other Notes
Not applicable.

25