Items Disclosed on the Internet
in relation to the Notice of Convocation of
the 15th 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.
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 15th 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, 2019)
The Group’s business operations are comprised of the Residential Development Business, Leasing
Business, Investment Management Business, Property Brokerage & CRE Business, Property & Facility
Management Business, and Other Business. The details of each business are outlined below.
Unit
Residential Development
Business

Leasing Business

Principal businesses
Development and sale of condominiums and detached housing, internet ad agency services,and services aimed at providing assistance to customers concerning their homes and living
arrangements, etc.
Development and lease of office buildings and retail facilities, development and sale ofprofitable properties for the real estate investment market, planning and management ofconstruction work, design and entrusted management of retail facilities, and planning andoperation of hotels

Investment Management
Business

Investment management services including REIT, privately placed real estate funds, andreal estate securitization products

Property Brokerage &CRE Business

Real estate brokerage and consulting, consignment sales for condominiums and detachedhousing, and insurance agency services

Property & Facility
Management Business

Management and tenant construction of office buildings, management and repair ofcondominiums, remodeling construction, management of fitness clubs, operation of local
cooling and heat supply business, development, planning, and operation of housing services
for the elderly, and sale, intermediation, and supply of electric energy

Other Business

Sale and lease of land and buildings1Principal business offices of major subsidiaries (as of March 31, 2019)
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

NREG TOSHIBA 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

Geo Akamatsu 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

NREG TOSHIBA BUILDING FACILITIES Co., Ltd.

Head office

Minato-ku, Tokyo

PRIME X. Co., Ltd.

Head office

Shinjuku-ku, TokyoNF Power Service Co., Ltd.

Head office

Shinjuku-ku, Tokyo

First Living Assistance Co., Ltd.

Head office

Shinjuku-ku, Tokyo

Lothbury Investment Management Limited

Head officeLondon, England2

Share acquisition rights, etc.
Status of share acquisition rights (as of March 31, 2019)
Name of shareacquisition rights
The 1st shareacquisition rights in
FY2012The 2nd shareacquisition rights in
FY2012
The 3rd shareacquisition rights in
FY2012
The 1st shareacquisition rights in
FY2013
The 2nd shareacquisition rights in
FY2013
The 3rd shareacquisition rights in
FY2013
The 1st shareacquisition rights in
FY2014
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
FY2015
The 4th 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

Date ofresolution on
issuance

Number ofshareacquisitionrightsNumber ofcommon sharessubject to shareacquisitionrightsExercise period ofshare acquisition rights

Exercise priceof shareacquisitionrights per share(Yen)

July 26, 2012

84

8,400

From August 23, 2014
to August 22, 20191

July 26, 2012

147

14,700From August 23, 2014
to August 22, 20191

July 26, 2012

475

47,500From August 23, 2014
to August 22, 2019

1,451

June 27, 2013

64

6,400

From July 23, 2015 toJuly 22, 2020

1

June 27, 2013

294

29,400From July 23, 2015 toJuly 22, 2020

1

June 27, 2013

2,188

218,800

From July 23, 2015 toJuly 22, 2020

2,429

June 27, 2014

234

23,400From July 23, 2016 toJuly 22, 2021

1

June 27, 2014

707

70,700From July 23, 2016 toJuly 22, 2021

1

June 27, 2014

2,122

212,200

From July 23, 2016 toJuly 22, 2021

2,016

June 26, 2015

278

27,800From July 23, 2018 to
July 22, 2023

1

June 26, 2015

920

92,000From July 23, 2018 to
July 22, 2023

1

June 26, 2015

3,705

370,500

From July 23, 2018 to
July 22, 2023

2,741

September 17,
2015

12

1,200

From October 14, 2018
to October 13, 2023

1

September 17,
2015

230

23,000From October 14, 2018
to October 13, 2023

2,355

June 29, 2016

567

56,700From July 22, 2019 toJuly 21, 2024

1

June 29, 2016

2,503

250,300

From July 22, 2019 toJuly 21, 2024

1

June 29, 2016

4,136

413,600

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

2,283

228,300

From July 21, 2020 toJuly 20, 2025

1

3

Name of shareacquisition rights
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 29, 2017

4,514

451,400

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, 2019.
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.

4

Status of share acquisition rights held by the officers of the Company (as of March 31, 2019)
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 FY2012

70

3

27

1

The 2nd share acquisition rights
in FY2013

26

1

–

–

The 3rd share acquisition rights
in FY2013

103

4

33

1

The 1st share acquisition rights
in FY2014

135

2

–

–

The 2nd share acquisition rights
in FY2014

42

1

–

–

The 3rd share acquisition rights
in FY2014

160

5

–

–

The 1st share acquisition rights
in FY2015

204

4

–

–

The 2nd share acquisition rights
in FY2015

42

1

–

–

The 3rd share acquisition rights
in FY2015

193

5

–

–

The 1st share acquisition rights
in FY2016

378

4

–

–

The 2nd share acquisition rights
in FY2016

65

1

–

–

The 3rd share acquisition rights
in FY2016

193

5

–

–

The 1st share acquisition rights
in FY2017

398

6

–

–

The 3rd share acquisition rights
in FY2017

249

6

–

–

The 1st share acquisition rights
in FY2018

107

5

–

–

Note: Share acquisition rights held by Directors (Audit & Supervisory Committee Members) were delivered to them before they
assumed the office of Director (Audit & Supervisory Committee Member).

Status of share acquisition rights delivered to employees, etc., during the fiscal year under review
Officers or employees of the Company’s
subsidiaries

Employees of the Company
Name of share acquisition rights

The 2nd share acquisition rights
in FY2018

Number of shareacquisition rights
delivered

Number ofindividuals to whomshare acquisitionrights have beendelivered–

Number of shareacquisition rights
delivered–

Other important matters relating to share acquisition rights, etc.
Not applicable.

5494

Number ofindividuals to whomshare acquisitionrights have beendelivered36

Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets for the year ended March 31, 2019
(Millions of yen)
Shareholders’ Equity
Retained
Earnings

Capital Stock

Capital Surplus

117,072

110,316

221

221

Balance at April 1, 2018

275,299

Treasury Shares

Total
Shareholders’Equity(10,004)

492,683

Changes of Items during Year
Issuance of New Shares

442

Dividends of Surplus(13,602)

Profit Attributable to Owners of Parent

45,873(13,602)45,873Purchase of Treasury Shares(8,783)(8,783)

Net Changes of Items Other Than Shareholders’ Equity
Total Changes of Items during Year
Balance at March 31, 2019

221

221

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

110,537

307,570(18,787)

516,613

Accumulated Other Comprehensive Income

Balance at April 1, 2018

Valuation
Difference on
Available-forsale Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustment

4,516

262

7,860

(225)

Total
Share
NonRemeasureAccumulated Acquisition controllingments of
Other
RightsInterests
DefinedComprehenBenefit Plans
sive Income(3,605)

8,807

2,424

11,067

Total Net
Assets514,982

Changes of Items during Year
Issuance of New Shares

442

Dividends of Surplus(13,602)

Profit Attributable to Owners of
Parent45,873Purchase of Treasury Shares
Net Changes of Items Other Than
Shareholders’ Equity(8,783)
2,202

(521)

(0)

(451)

98

1,327

(77)

1,400

2,649

Total Changes of Items during Year

2,202

(521)

(0)

(451)

98

1,327

(77)

1,400

26,579Balance at March 31, 2019

6,718

(259)

7,860

(677)

(3,507)

10,134

2,346

12,467

541,562

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

6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:
39 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.
LIM HOLDINGS LTD. and Zen Plaza Investment Limited are included in the scope of
consolidation because they were newly established in the fiscal year under review, and Lothbury
Investment Management Group Limited and 11 other companies, Ryubundo Co., Ltd. and UHM Co.,
Ltd. were each included in the scope of consolidation because the Company newly acquired theirequity interests in the fiscal year under review.
Furthermore, Nomura Real Estate Reform Co., Ltd. was excluded from the scope of consolidation
because it underwent an absorption-type merger with Nomura Real Estate Partners Co., Ltd., aconsolidated subsidiary of the Company, in the fiscal year under review, and Toranomon Real EstateCo., Ltd. was excluded from the scope of consolidation because the Company sold its shares in thecompany in the fiscal year under review.
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 scopeof consolidation because they are all small companies andthe Company’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
statements of 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.
NREG Innovation No. 1 Investment Limited Partnershipis included in the scope accounted for using the equity
method because the Company newly acquired an equity
interest in the fiscal year under review. Nomura Real
Estate UK Limited was excluded from the scopeaccounted for using the equity method because liquidation
was completed.
2) Affiliated companies accounted for using the equity method
 Number of affiliated companies accounted for using the equity method: 24
 Name of principal affiliated company:
Ginza Parking Center Co., Ltd.
Beijing Shokai Nomura Real Estate Management Co., Ltd.
and Sunshine Fort North Bonifacio Commercial
Management Corporation are included in the scope of
consolidation because they were newly established in thefiscal year under review. Origin One Sukhumvit 24 Co.,
Ltd., Origin One Phromphong Co., Ltd., PARK ORIGINRATCHATHEWI COMPANY LIMITED, DRIC Peridot
Limited, Tokio Property Services Pte Ltd and PARKORIGIN PRARAM 4 COMPANY LIMITED are included
7

under affiliated company accounted for using the equity
method because the Company newly acquired their equity
interests in 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 account closing date of Ryubundo Co., Ltd. and UHM Co., Ltd. is February 28.
Provisional financial statements for these companies as of the consolidated account closing date areused 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, NREAM Investors America, LLC, HCMC office investment Limited, LIM
HOLDINGS LTD, Lothbury Investment Management Group Limited, other 11 companies and Zen
Plaza Investment Limited is December 31. The account closing date of Midosuji Mirai Development,
LLC and Shinjuku 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 for8

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.

D. Provision for loss on business liquidation
An estimated amount of losses arising in connection withthe withdrawal from businesses is reserved.
E. Provision for loss on subleasing businessFor properties for which subleasing losses are highly likely
to continue arising in the subleasing business, an estimatedamount of losses for the next fiscal year and after isreserved.
F. 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.
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 are9recognized 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 on
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 fixed assets and others are included in“Other” under Investments and other assets and amortizedover 5 years, non-deductible consumption taxes on land as
inventories are included in the acquisition costs, and othernon-deductible consumption taxes are expensed as incurred.
(5) Additional Information(Performance-based stock incentive plan, for Directors and Executive Officers)
The Company and certain consolidated subsidiaries have introduced a performance-based stockincentive plan (the “Plan”) as an incentive plan for Directors and Executive Officers (excluding
Directors as Audit & Supervisory Committee Members, External Directors and non-residents of Japan;“Directors, etc.”) from the fiscal year under review. The Plan is a compensation scheme that functions
as an incentive for improving medium- to long-term corporate value of the Company and enables
interests to be shared with the Company’s shareholders by linking the compensation paid to Directors,
etc. to the Company’s share price. Specifically, it utilizes the mechanism of an executive compensation
BIP trust. The Company’s shares are acquired in advance by an executive compensation BIP trust, andthe Company’s shares and a sum equivalent to the proceeds of converting the Company’s shares into
cash are delivered and paid to Directors, etc. according to their position, etc.
The shares of the Company that remain in the trust are recorded as treasury shares under net assets
10

at the book value within the trust. The book value and number of such treasury shares were ¥3,782
million and 1,725,000 shares, respectively, at the end of the fiscal year under review.
Furthermore, the estimated amount of the above executive compensation at the end of the fiscal year
under review was recorded as provision for stocks payment.
(ESOP Trust for Granting Stock)
The Company and certain consolidated subsidiaries have introduced an “ESOP Trust for Granting
Stock” (the “Plan”) from the fiscal year under review as an incentive plan for employees. The Plan is acompensation scheme that encourages employees to execute their duties with an awareness of the shareprice because employees can receive economic gains from an increase in the price of the Company’s
shares, and is expected to have the effect of increasing the motivation of employees to work and enable
them to share interests with the Company’s shareholders. Specifically, it utilizes the mechanism of
ESOP trust for granting stock. The ESOP trust acquires the Company’s shares in advance, and grants
them to employees who satisfy certain requirements.
Furthermore, the estimated amount of the above compensation scheme at the end of the fiscal year
under review was recorded as provision for stocks payment.
2. Notes to Changes in Presentation Method(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28
issued on February 16, 2018) are applied from the start of the fiscal year under review, with deferred tax
assets classified under investment and other assets and deferred tax liabilities classified under non-current
liabilities.
3. Notes to Consolidated Balance Sheet(1) Pledged Assets and Secured Liabilities
Investment securities in the amount of ¥10 million are pledged as collateral for a portion of liabilities ofinvestee companies.
(2) Accumulated Depreciation of Property, Plant and Equipment¥182,059 million(3) Contingent Liabilities
1) Guaranteed Obligations
The following are customers for which bank loans, etc. have been guaranteed.
Customers using housing loans¥113,368 million
Joint operators of EBS buildings¥393 million
Total¥113,761 million
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 RAMKHAMHAENG COMPANY¥209 million
LIMITED(¥102 million)
ORIGIN PRIME 2 COMPANY LIMITED¥191 million(¥94 million)
ORIGIN PARK T1 COMPANY LIMITED¥6,980 million(¥3,420 million)
ORIGIN SPHERE COMPANY LIMITED¥1,039 million(¥509 million)
ORIGIN VERTICAL COMPANY LIMITED¥1,519 million(¥744 million)
Total¥9,940 million(¥4,870 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
11

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, ¥77,033 million was transferred from non-current
assets to real estate for sale, etc.
4. Notes to Consolidated Statement of Changes in Net Assets(1) Total Number of Shares Issued
Number of shares
as of March 31,
Type of shares2019 (Thousand
shares)Common stock
192,155
217–
192,373
Note: The increase in the number of issued shares among common stock of 217 thousand shares consists ofan increase due to the exercise of stock options.
Number of shares
as of April 1, 2018
(Thousand shares)

Increase(Thousand shares)

Decrease(Thousand shares)(2) Dividends from Surplus
1) Dividends paid
(Resolution)

Type of shares

Total amount ofdividends(Millions ofyen)

Dividends
per share(Yen)

Effective
date

Record date

April 26, 2018
March 31,
Meeting of theCommon stock
6,586
35
June 5, 2018
2018
Board of Directors
October 29, 2018
September 30, December 3,
Meeting of theCommon stock
7,015
37.5
2018
2018
Board of Directors
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on October 29,
2018 includes ¥8 million in dividends for the Company’s shares held in the executive compensation
BIP trust.

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

Type ofsharesTotal amount ofdividends(Millions ofyen)

Dividend
resource

Dividends
per share(Yen)

Record date

Effective
date

April 25, 2019
CommonRetained
March 31,
Meeting of the
6,985
37.5
June 4, 2019stock
earnings
2019
Board of Directors
Note: The total amount of dividends resolved in the meeting of the Board of Directors held on April 25,
2019 includes ¥64 million in dividends for the Company’s shares held in the executive compensation
BIP trust.

(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, 2019:
Nomura Real Estate Holdings, Inc.
The 1st share acquisition rights in FY2012
The 2nd share acquisition rights in FY2012
The 3rd share acquisition rights in FY2012
The 1st share acquisition rights in FY2013
The 2nd share acquisition rights in FY2013
The 3rd share acquisition rights in FY2013
The 1st share acquisition rights in FY2014
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
12

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

8,400 shares
14,700 shares
47,500 shares
6,400 shares
29,400 shares
218,800 shares
23,400 shares
70,700 shares
212,200 shares
27,800 shares
92,000 shares

The 3rd share acquisition rights in FY2015
The 4th share acquisition rights in FY2015
The 5th share acquisition rights in FY2015

Common stock
Common stock
Common stock

370,500 shares
1,200 shares
23,000 shares

5. 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.
Securities held by the Group are those that are safe with high market liquidity such as negotiablecertificates of deposit, and these are held for temporary management of surplus funds.
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, they 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.
(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, 2019 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(2) Securities

Book value in the
consolidated balance
sheet
81,35137,000Fair value

Difference

81,351–37,000–(3) Investment securities *1

40,84640,88639

Total assets

159,198

159,237

39(1) Short-term loans payable *2

26,00026,000–(2) Bonds payable

140,000

141,589

1,589(3) Long-term loans payable *2

748,000

771,437

23,437

Total liabilities

914,000

939,027

25,027

Derivative transactions *3(1,010)(1,010)

–

*1
*2
*3

The stated amount includes Japanese government bonds that have been recorded in “Lease and guarantee
deposits.”
Current portion of long-term loans payable are included in “(3) Long-term loans payable.”
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) Securities
Since these items are negotiable certificates of deposit and settled in a short period of time, the fairvalues approximate their book values. Accordingly, the book values are presented as their fairvalues.
(3) Investment securities
The fair values of stocks, investment units, etc. are mainly based on the prices on exchanges.
13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.
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
29,279*1. Unlisted stocks, etc. are excluded from “(3) 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.”

6. 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, 2019

Real estate for rent
703,232
878,919
Properties including the
portion used as real estate for
26,12556,820rent
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, 2019 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.

7. Notes to Per Share Information(1) Net Assets Per Share¥2,854.21(2) Basic Earnings Per Share¥245.99
Note: The Company’s shares held in the executive compensation BIP trust are included in the number oftreasury shares deducted from the total number of shares issued at the end of the fiscal year whencalculating 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
14

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 1,725 thousand shares at the end of the period, and theaverage number of treasury shares during the period deducted in the calculation of basic earnings per
share was 655 thousand shares.
8. Notes to Significant Subsequent Events
Not applicable.
9. Other Notes
Not applicable.

15

Non-Consolidated Financial Statements
Non-Consolidated Statements of Changes in Net Assets for the year ended March 31, 2019
(Millions of yen)
Shareholders’ Equity
Capital Surplus

Retained Earnings
Other Retained
Earnings

Total Retained
Earnings

Treasury Shares

Total
Shareholders’Equity52,621

52,621(10,004)

277,126

Dividends of Surplus(13,602)(13,602)

Profit25,59325,593

Balance at April 1, 2018

Capital Stock

Legal Capital
Surplus

Total Capital
Surplus117,072

117,436

117,436

221

221

221

Retained
Earnings
Brought Forward

Changes of Items during Year
Issuance of New Shares

442

Purchase of Treasury Shares
Net Changes of Items Other
Than Shareholders’ Equity
Total Changes of Items during
Year
Balance at March 31, 201925,593(8,783)(8,783)

221

221

221

11,99011,990(8,783)

3,649

117,293

117,657

117,657

64,61264,612(18,787)

280,775

Valuation and Translation Adjustments

Balance at April 1, 2018(13,602)

Valuation
Difference on
Available-forsale Securities

Deferred Gains
or Losses on
Hedges3–

Total Valuation Share Acquisition
Total Net Assets
Rightsand Translation
Adjustments
3

2,424

279,554

Changes of Items during Year
Issuance of New Shares

442

Dividends of Surplus(13,602)

Profit25,593Purchase of Treasury Shares(8,783)

Net Changes of Items Other
Than Shareholders’ Equity
Total Changes of Items during
Year

(7)

(14)

(22)

(77)

(99)

(7)

(14)

(22)

(77)

3,549

Balance at March 31, 2019

(3)

(14)

(18)

2,346

283,103

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

16

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

17 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 Changes in Presentation Method
The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28
issued on February 16, 2018) are applied from the start of the fiscal year under review, with deferred tax
assets classified under investment and other assets and deferred tax liabilities classified under non-current
liabilities.
3. Notes to Non-Consolidated Balance Sheet(1) Accumulated Depreciation of Property, Plant and Equipment¥101 million(2) Monetary Receivables from and Payables to Subsidiaries and Associates
1) Short-term monetary receivables¥219,817 million
2) Short-term monetary payables¥41,267 million
4. Notes to Non-Consolidated Statements of Income
Amount of business with subsidiaries and associates
Amount of operating transactions
Operating revenue
Operating expenses¥42,733 million¥306 million

5. 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, 2018
(Thousand shares)

Increase(Thousand shares)

Decrease(Thousand shares)

Number of shares asof March 31, 2019
(Thousand shares)

Common stock
3,956
3,864
–
7,821
Notes: 1. The above treasury shares include the treasury shares held in the trust account of the “executive
compensation BIP trust.”
2. The 3,864 thousand shares increase in treasury shares of common stock is due to an increase of
2,139 thousand shares from the purchase of treasury shares by resolution of the Board of
Directors, an increase of 1,725 thousand shares due to acquisition of the Company’s shares by
the “executive compensation BIP trust” and an increase of 0 thousand shares due to purchase ofshares of less than one share unit.

18

6. Notes to Tax Effect Accounting
Breakdown of deferred tax assets and deferred tax liabilities by major cause
Deferred tax assets
Share-based compensation expenses
Loss on valuation of shares of subsidiaries and associates
Accrued enterprise tax
Provision for bonuses
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 liabilities(Millions of yen)
531
319
96
80
37
1,065
(331)
734
(1)
(1)
733

7. 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

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

356,984

Short-term loans
receivable

179,171

195,000

Long-term loans
receivable fromsubsidiaries andassociates

710,000

Receipt ofinterest

11,613–

Lending of
funds

–

Subsidiary

Nomura Real
Estate Urban
Net Co., Ltd.

Directly
Management guidance
holding 100.0

Deposit offunds

63,160

Deposits received

19,823

Subsidiary

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

Deposit offunds

100,863

Deposits received

13,83535,162

Short-term loans
receivable

36,694

SubsidiaryNREG
TOSHIBA
BUILDING
Co., Ltd.

–Long-term loans
receivable fromsubsidiaries andassociates

30,00013,320

Short-term loans
receivable

1,990

2,000

Long-term loans
receivable fromsubsidiaries andassociates

5,000

Directly
holding 95.0

Nomura RealDirectly
Subsidiary Estate Life &holding 100.0
Sports Co., Ltd.

Management
guidance, borrowing
and lending of funds

Management
guidance, borrowing
and lending of funds

Lending offunds

Lending offunds

Note: The interest rates for lending and deposit of funds are determined in a rational manner by considering market
interest rates.

19

(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

Minoru Hatada

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

22––

Officer

Toshiaki Seki

Held
0.0

Director of theCompany

Exercise ofstock options(Note 2)

11––

Officer

MasaomiKatayama

Held
0.0

Executive Officer of
the Company

Exercise ofstock options(Note 2)

10

–

–

Items

Fiscal year-end
balance(Millions of yen)

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

8. Notes to Per Share Information(1) Net Assets Per Share¥1,521.03(2) Basic Earnings Per Share¥137.24
Note: The Company’s shares held in the executive compensation BIP trust are included in treasury sharesdeducted from the total number of shares 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 theaverage 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 1,725 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 655 thousand shares.
9. Notes to Significant Subsequent Events
Not applicable.
10. Other Notes
Not applicable.

20