Oct. 29, 2018

Consolidated Financial Results
For the Six Months from April 1 to September 30, 2018
<under Japanese GAAP>
Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purpose. All statements were basedon Tanshin report prepared in accordance with the provisions set forth in accounting regulations and principals generally accepted in Japan.

Name of company listed :Nomura Real Estate Holdings, Inc.

Shares traded :TSE (First section)

Code number :

3231

URL :

http://www.nomura-re-hd.co.jp/english/

Representative :Eiji Kutsukake, President and Representative Director

Inquiries:

Naoko Usami,
General Manager, Corporate Communications Dept.

Email:

nrehd-ir@nomura-re.co.jp

Scheduled submitting date of quarterly securities report:

November 9, 2018

Scheduled starting date for dividend payments:

December 3, 2018

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

I.

Consolidated operating results for the Six Months from April 1, to September 30, 2018
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue
First six months ended

Operating profit

Profit attributable toOrdinary profit

owners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Sep. 30, 2018

231,358(15.3)

26,018(24.6)

21,546(29.1)

13,002(35.4)

Sep. 30, 2017273,045

10.0

34,4973.3

30,375

4.1

20,115(0.0)(Note) Comprehensive income:From April 1 to September 30, 2018: 13,728 million yen (down 17.2%)
From April 1 to September 30, 2017: 16,585 million yen (down 20.6%)

Basic earnings

Diluted earnings

per shareper shareFirst six months ended

Yen

Yen

Sep. 30, 2018

69.26

68.84

Sep. 30, 2017104.81104.28

(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Sep. 30, 2018

1,710,201

518,811

29.5

Mar. 31, 2018

1,673,099

514,982

30.0(Reference) Shareholders’ equity: As of September 30, 2018: 505,035 million yen
As of March 31, 2018: 501,491 million yen

II. Dividends
Dividend per share
1st quarter-end

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

35.00

-

35.00

70.00

-

37.50

-

37.50

75.00

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

Operating revenue

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

687,000

10.1

81,0005.7

72,0005.8

47,0002.1

250.94

Fiscal year
endingMar. 31, 2019

(Note) Revision of operating result forecasts during this quarter: Yes* Notes(1) Significant changes to subsidiaries during the period (Changes in scope of consolidation of specified subsidiaries): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None(3) Changes in accounting policies, changes in accounting estimates and restatements

(4)

1)

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

: None2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

Restatements: NoneNumber of shares issued (common stock)1)

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

2)

Treasury shares at end of period

As of Sep. 30

As of Mar. 31

2018

2018

192,277,401

192,155,201

5,422,110

3,956,956

3)

Average number of shares outstanding during the period

From Apr. 1 to Sep. 30

From Apr. 1 to Sep. 30

2018

2017

187,726,805

191,927,100(Note) 230,000 shares of the Company’s share owned by executive compensation BIP (Board Incentive Plan) trust are included to the numberof treasury shares at end of period. 16,464 shares owned by the executive compensation BIP (Board Incentive Plan) trust are also included to
the number of treasury shares deducted in the calculation of average number of shares outstanding during the period.
* Quarterly consolidated financial results are not required to be audited by certified public accountants or audit corporations.
* Proper use of forecasts of financial results, and other special matters
Forward-looking statements in this document, including the forecasts of financial results, etc., are based on the information currently
available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges torealize such statements. Actual performance and other results may differ materially from these forecasts due to various factors. For mattersrelated to the forecasts of financial results, please refer to “1. Qualitative Information (3) Consolidated Operating Result Forecasts” on page 6of the Attachments.
(How to obtain fact sheets)
The fact sheets will be disclosed on TDnet on Oct. 29, 2018 and will be uploaded on the Company's website.

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

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

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

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

6

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

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

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

10

Quarterly Consolidated Statements of Income
Six Months from April 1 to September 30, 2018.................................................................................................................................

10

Quarterly Consolidated Statements of Comprehensive Income
Six Months from April 1 to September 30, 2018...................................................................................................................................

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

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

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

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

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

141

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the current second quarter: Operating
revenue of 231,358 million yen, which represents a decrease of 41,686 million yen, or 15.3% year on year; operating profit of 26,018
million yen, a decrease of 8,479 million yen, or 24.6%; ordinary profit of 21,546 million yen, a decrease of 8,829 million yen, or 29.1%;
and profit attributable to owners of parent of 13,002 million yen, a decrease of 7,113 million yen, or 35.4%.
An overview of business unit achievements is given below:
Operating revenue for each business unit includes internal sales and transfer amount among business units. Due to the rounding of
fractions, total figures may not match.
From the first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit to promote business in conjunction with the Property andManagement Business Unit. As of August 1, 2018, the merger has been completed with Nomura Real Estate Partners Co., Ltd being thesurviving company and Nomura Real Estate Reform Co., Ltd. being the absorbed company in absorption-type merger .
In line with this change, the financial results of the first six months ended September 30, 2017 and the fiscal year ended March 31, 2018
are calculated under the new classification.
<Residential Development Business Unit>
Operating revenue in this business unit totaled 96,078 million yen, which represents a decrease of 49,876 million yen, or 34.2% year on
year, and operating profit totaled 857 million yen, which represents a decrease of 9,362 million yen, or 91.6% year on year, resulting indecreases in both operating revenue and operating profit compared with the financial results of the first six months ended September 30,
2017.
This was mainly due to a decrease in the number of housing unit sales in the housing sales business. Compared to the previous fiscal
year, a greater number of housings are planned to be constructed and recorded as sales in the fourth quarter.
In regard to housing sales, 1,393 units were recorded as sales (a decrease of 806 units year on year), including PROUD Toyocho South(Koto-ku, Tokyo), PROUD Daikanyama Sarugakucho (Shibuya-ku Tokyo), OHANA Warabi Nishikicho (Warabi-shi, Saitama), PROUDTOWER Sendai Kotodai Koen (Aoba-ku, Sendai-shi, Miyagi) for condominiums, and PROUD SEASON Chofu Yoko-no-machi (Chofushi, Tokyo) for detached housing. The contract rate against the estimated number of housing sales for FY19/3, which is 6,100 units, was
78.2% as of the end of the current second quarter.
The number of housing contracted but not recorded as sales were 4,159 units as of the end of the current second quarter (an increase of
751 units compared with the end of the previous second quarter).
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on the Group’s share.
From the current first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development
Business Unit, was transferred to the Property & Facility Management Business Unit. In line with this change, the financial results of thefirst six months ended September 30, 2017 and the fiscal year ended March 31, 2018 are calculated under the new classification.

Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2017

Sep. 30, 2018

Mar. 31, 2018

Operating revenue
Housing units sold

Housingsales(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)Tokyo

1,752 units

108,8211,090 units

71,576

4,483 units

269,685

Kansai area

167 units

10,780166 units

7,644

716 units

34,734Other

278 units

15,591136 units

6,559

666 units

32,3992,199 units

135,193

1,393 units

85,7795,865 units

336,819(193 units)(12,426)(165 units)(9,929)(607 units)(37,898)-

10,761-

10,298-18,626-145,954-

96,078-355,445

metropolitan
area

Subtotal(Detachedhousing)

Other
Total

2

Housing sales Period-end completed housing inventory (released for sale)
As of Sep. 30, 2017

As of Sep. 30, 2018

As of Mar.31, 2018

Tokyo metropolitan area

264 units

87 units

145 units

Kansai area

27 units

41 units

75 unitsOther

18 units

3 units

19 units

Total

311 units

132 units

239 units(Detached housing)(19 units)(18 units)(15 units)

Housing sales Period-end completed housing inventory (unreleased)
As of Sep. 30, 2017
Total

As of Sep. 30, 2018

As of Mar.31, 2018321 units

75 units

218 units(-)(9 units)(11 units)(Detached housing)

Housing sales Contracted but not recorded as housing sales
As of Sep. 30, 2017

As of Sep. 30, 2018

Outstanding
Housing units

As of Mar.31, 2018

Outstanding

contract amount

Housing units

Outstanding

contract amount(Millions of yen)

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

Tokyo metropolitan area

2,592 units

164,432

3,063 units

183,245

2,118 units

134,060

Kansai area

414 units

19,225599 units

32,211346 units

17,872

Other

401 units

18,206496 units

26,545366 units

19,011

Total

3,408 units

201,864

4,159 units

242,002

2,831 units

170,944(Detached housing)(136 units)(7,859)(169 units)(11,185)(53 units)(3,353)<Leasing Business Unit >Operating revenue in this business unit totaled 70,270 million yen, which represents an increase of 9,110 million yen, or 14.9% year on year,
and operating profit totaled 18,384 million yen, an increase of 2,493 million yen, or 15.7%, resulting in increases in both operating revenue andoperating profit compared with the financial results of the first six months ended September 30, 2017.
This was mainly due to increases in revenue from leasing, property development for sales, and land for sales.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2017

Sep. 30, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

26,66828,15553,312

Leasing (retail facilities)

5,708

6,877

12,686

Leasing (other)

3,363

3,845

7,193

Property development (sale)

20,27523,06343,301

Property development (leasing)

2,315

2,011

4,724

Other
Total

2,828

6,316

13,722

61,16070,270134,9413

Rentable area
As of Sep. 30, 2017

As of Sep. 30, 2018

As of Mar.31, 2018

Offices

864,802 m2

828,531 m2

846,338 m2

Retail facilities

174,710 m2

174,622 m2

174,666 m2

Total

1,039,512 m2

1,003,152 m2

1,021,004 m2

Vacancy rate (offices and retail facilities)
As of Sep. 30, 2017

As of Sep. 30, 2018
0.6%

As of Mar.31, 2018
3.9%

0.7%

<Investment Management Business Unit>
Operating revenue in this business unit totaled 4,501 million yen, which represents a decrease of 44 million yen, or 1.0% year on year,
and operating profit totaled 2,772 million yen, a decrease of 87 million yen, or 3.1%, resulting in decreases in both operating revenue andoperating profit compared with the financial results of the first six months ended September 30, 2017.
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2017

Sep. 30, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

Operating revenue

4,546(Millions of yen)
4,501

9,378

Assets under management
As of Sep. 30, 2017

As of Sep. 30, 2018

As of Mar.31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

REITs

1,176,858

Private funds, etc.
Total

1,229,804

1,209,259

50,69875,11976,643

1,227,556

1,304,924

1,285,903<Property Brokerage & CRE Business Unit>
Operating revenue in this business unit totaled 16,969 million yen, which represents a decrease of 918 million yen, or 5.1% year on year,
and operating profit totaled 2,882 million yen, a decrease of 1,575 million yen, or 35.3%, resulting in decreases in both operating revenue
and operating profit compared with the financial results of the first six months ended September 30, 2017.
This was mainly due to a decrease in the total transaction value in property brokerage.
In the retail business, we opened the following new branches: Nagoya branch (Naka-ku, Nagoya-shi, Aichi) in April 2018, Toranomon
Center (Minato-ku, Tokyo) in May 2018.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2017

Sep. 30, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

16,225

15,24931,637

Other

1,662

1,719

4,065

Total

17,887

16,96935,703

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

First six months ended

Fiscal year ended

Sep. 30, 2017

Sep. 30, 2018

Mar. 31, 2018

Number of transactions
Transaction value (Millions of yen)

4,267

4,375

8,561

420,676

356,396

800,7394

<Property & Facility Management Business Unit>
Operating revenue in this business unit totaled 51,172 million yen, which represents an increase of 918 million yen, or 1.8% year on year,
and operating profit totaled 3,127 million yen, a decrease of 22 million yen, or 0.7%, resulting in an increase in operating revenue and adecrease in operating profit compared with the financial results of the first six months ended September 30, 2017.
In the fitness club business, we opened MEGALOS HIBIYA chanter (Chiyoda-ku, Tokyo) in September 2018.
From the first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit. In line with this change, the financial results of the first six
months ended September 30, 2017 and the fiscal year ended March 31, 2018 are calculated under the new classification. As of August 1,
2018, the merger has been completed with Nomura Real Estate Partners Co., Ltd being the surviving company and Nomura Real Estate
Reform Co., Ltd. being the absorbed company in absorption-type merger.
Breakdown of operating revenue
First six months ended

First six months ended

Fiscal year ended

Sep. 30, 2017

Sep. 30, 2018

Mar. 31, 2018

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

24,96925,47850,386

Construction ordered

14,19113,80031,604

Fitness club & elderly care

7,947

8,336

16,064

Other

3,144

3,557

6,526

50,25351,172

104,581

Total
Number of properties under management

As of Sep. 30, 2017
Buildings under management
Condominiums undermanagement (unit)

As of Sep. 30, 2018

As of Mar.31, 2018

724

728

723

170,641

173,845

173,705<Other Business Unit>
Operating revenue in this business unit totaled 46 million yen, which represents a decrease of 5 million yen, or 10.3% year on year,
and operating loss totaled 15 million yen (operating loss of the first six months ended September 30, 2017 was 1 million yen).

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

As of Sep. 30, 2018

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Changes

Total assets

1,673,099

1,710,201

37,102

2.2%

Total liabilities

1,158,116

1,191,390

33,273

2.9%

Net assets

514,982

518,811

3,828

0.7%

Shareholders' equity ratio

30.0%

29.5%

-

-

Total assets were 1,710,201 million yen, which represents an increase of 37,102 million yen compared to the end of the previous fiscal year.
This was mainly due to an increase in inventories (increased by 37,145 million yen).
Total liabilities were 1,191,390 million yen, which represents an increase of 33,273 million yen compared to the end of the previous fiscal
year. This was mainly due to an increase in long-term loans payable (increased by 48,500 million yen) while notes and accounts payable – trade(decreased by 13,323 million yen) decreased.
Net assets were 518,811 million yen, which represents an increase of 3,828 million yen compared to the end of the previous fiscal year. Thiswas mainly due to increases in retained earnings (increased by 6,415 million yen) and valuation difference on available-for-sale securities(increased by 1,159 million yen) while the company acquired treasury shares (decreased by 3,567 million yen).
The shareholders' equity ratio was 29.5%, a decrease of 0.5 percentage point from the end of the previous fiscal year.

5(Cash Flows)
Cash and cash equivalents as of the end of the current second quarter totaled 55,006 million yen, which represents a decrease of 6,340 million
yen compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 43,591 million yen (a year-on-year increase of 5,869 million yen). This was
mainly due to an increase in inventories and the payment of income taxes.
Net cash provided by (used in) investment activities decreased by 16,163 million yen (a year-on-year increase of 17,132 million yen). Thiswas mainly due to the purchase of property, plant and equipment, intangible assets and investment securities.
Net cash provided by (used in) financing activities increased by 53,417 million yen (a year-on-year decrease of 70,353 million yen). This was
mainly due to the procurement of funds by long-term loans payable while the company paid dividends and acquired treasury shares.

(3) Consolidated Operating Result Forecasts
The consolidated operating result forecasts for the fiscal year ending March 31, 2019 were revised from the figures announced on April
26, 2018, by examining the future outlook based on interim results for the six months ended 30 September, 2018..
<Consolidation>
The Group expects the following consolidated performance for the fiscal year ending March 31, 2019: Operating revenue of 687,000
million yen; operating income of 81,000 million yen; ordinary income of 72,000 million yen; and profit attributable to owners of parent of
47,000 million yen.
Changes from the previous consolidated result forecasts are as follows:
Profit attributable

Operating revenue

Operating profit

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)700,000

81,00072,00047,000249.74

Revised forecasts (B)687,000

81,00072,00047,000250.94

Changes (B-A)(13,000)

-

-

-

-

Changes (%)

(1.9)

-

-

-

-

623,762

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

Ordinary profit

to owners of parent

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

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

379,000

375,000(4,000)

Leasing

173,000

166,000(7,000)Investment Management

9,500

9,500

-

Property Brokerage & CRE

40,50040,500-Property & Facility Management

112,000

110,000(2,000)00-Adjustments(14,000)(14,000)-

Total

700,000

687,000(13,000)

Other

6

Operating income
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

26,50024,000

Leasing

35,00037,0002,000

Investment Management

6,000

6,000

-

Property Brokerage & CRE

10,50010,500-Property & Facility Management

7,500

7,500

-

0

0

-

Adjustments(4,500)(4,000)

500

Total

81,00081,000

-

Other

7

(2,500)2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assets
Cash and deposits

52,34755,006

Notes and accounts receivable - trade17,308

14,698

Securities

9,000

－

Real estate for sale

102,884

93,100Real estate for sale in process

261,278

346,192

Land held for development

228,326

190,242

Equity investments

9,612

11,177

Other

36,917

48,249(39)(37)

717,635

758,630

Buildings and structures, net

239,026

233,866Land

592,550

588,373

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

Other, net

16,797

17,527

Total property, plant and equipment

848,374

839,768

12,364

12,395Investment securities

42,362

47,946

Lease and guarantee deposits

23,131

23,826

Deferred tax assets

20,843

19,600

Other

8,387

8,035

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

94,72599,407

Intangible assets
Investments and other assets

Total non-current assets
Total assets

8955,464

951,571

1,673,099

1,710,201

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

41,69628,372

Short-term loans payable

102,300

117,400

Income taxes payable

14,993

6,464

Deposits received

18,807

10,213

Provision for bonuses

7,679

7,621

Provision for directors' bonuses

590

245

Provision for loss on business liquidation

36

31

Other

48,07347,491

Total current liabilities

234,176

217,839

Bonds payable

140,000

140,000

Long-term loans payable

635,500

684,000

Lease and guarantee deposits received

60,24160,292

Deferred tax liabilities

59,82859,104

Deferred tax liabilities for land revaluation

3,900

3,900

－

301

Non-current liabilities

Provision for stocks payment
Provision for loss on subleasing business

102

76

Net defined benefit liability

18,375

18,113

Other

5,991

7,762

Total non-current liabilities

923,940

973,551

1,158,116

1,191,390

Capital stock

117,072

117,205

Capital surplus

110,316

110,449

Total liabilities
Net assets
Shareholders' equity

Retained earnings

275,299

281,714

Treasury shares(10,004)(13,571)

Total shareholders' equity

492,683

495,797

Valuation difference on available-for-sale securities

4,516

5,676

Deferred gains or losses on hedges

262

(456)

Revaluation reserve for land

7,860

7,860

Accumulated other comprehensive income

Foreign currency translation adjustment

(225)

(390)

Remeasurements of defined benefit plans(3,605)(3,451)

Total accumulated other comprehensive income

8,807

9,237

Share acquisition rights

2,424

2,457

Non-controlling interests

11,067

11,318

Total net assets

514,982

518,811

1,673,099

1,710,201

Total liabilities and net assets

9(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income for the First Six Months from April 1 to September 30, 2018)(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Operating revenue

273,045

231,358

Operating cost

188,340

157,008

Operating gross profit

84,70474,350

Selling, general and administrative expenses

50,20648,332

Operating profit

34,49726,018Interest income

23

23

Dividend income

46

43

37

71

Gain on donation of non-current assets－

54

Gain on transfer of right to request purchase of shares

112

－

Other

114

89

Total non-operating income

333

282

Interest expenses

3,666

4,384

Other

789

370

Non-operating income

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

Total non-operating expenses

4,455

4,754

30,375

21,546

Impairment loss

67－

Loss on building reconstruction

189

821

Loss on transfer of non-current assets

－

1,091

Total extraordinary losses

256

1,912

Profit before income taxes

30,118

19,633

Income taxes - current

9,923

6,014

Income taxes - deferred

(205)

321

Total income taxes

9,718

6,335

Profit20,40013,298

Ordinary profit
Extraordinary losses

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

10

285

296

20,11513,002

(Quarterly Consolidated Statements of Comprehensive Income for the First Six Months from April 1 to September 30, 2018)(Millions of yen)

ProfitSix months ended

Six months ended

September 30, 2017

September 30, 2018

20,40013,298Valuation difference on available-for-sale securities(3,644)

1,159

Deferred gains or losses on hedges

(285)

(718)

Other comprehensive income

Revaluation reserve for land

(0)

(0)

Foreign currency translation adjustment

(13)

(19)

Remeasurements of defined benefit plans, net of tax

205

153

(76)

(144)

(3,815)429

16,585

13,72816,30013,432

285

295

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests11

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

Six months ended

September 30, 2017

September 30, 2018

Cash flows from operating activities
Profit before income taxes

30,118

19,633

Depreciation

9,314

9,381

(37)

(71)

(5)

(1)

(5)

(4)

(41)

(25)

Increase (decrease) in net defined benefit liability

(162)

(262)

Interest and dividend income

(69)

(66)

Interest expenses

3,666

4,384

2,736

2,605

Decrease (increase) in inventories(42,359)(29,324)

Decrease (increase) in equity investments(3,910)(1,564)

Increase (decrease) in notes and accounts payable - trade(6,894)(13,323)

Increase (decrease) in deposits received(21,125)(8,593)

Other, net(1,861)(6,836)

Subtotal(30,636)(24,070)

Share of loss (profit) of entities accounted for using equity
methodIncrease (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on businessliquidation
Increase (decrease) in provision for loss on subleasing
business

Decrease (increase) in notes and accounts receivable trade

Interest and dividend income received

60

222

Interest expenses paid

(3,488)(3,622)

Income taxes paid

(15,396)(16,121)

Net cash provided by (used in) operating activities(49,461)(43,591)(388)(4,337)64

59(34,086)(10,941)

43

0

Payments for lease and guarantee deposits

(719)

(230)

Proceeds from collection of lease and guarantee deposits

616

504

Repayments of lease and guarantee deposits received(891)(2,373)

Proceeds from lease and guarantee deposits received

2,369

1,037

Other, net

(303)

118

(33,295)(16,163)

Net increase (decrease) in short-term loans payable

56,00035,500

Increase (decrease) in commercial papers

32,000－

Repayments of finance lease obligations

(72)

(86)

Proceeds from long-term loans payable

47,00061,000

Repayments of long-term loans payable(24,400)(32,900)

Proceeds from issuance of bonds

19,869－Cash flows from investing activities
Purchase of investment securities
Proceeds from sales and liquidation of investment
securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets

Net cash provided by (used in) investing activities
Cash flows from financing activities

12

(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Proceeds from issuance of common shares

121

106

Purchase of treasury shares(0)(3,571)(6,715)(6,586)

Cash dividends paid
Dividends paid to non-controlling interests

(31)

(44)

123,770

53,417(12)(2)

Net increase (decrease) in cash and cash equivalents

41,001(6,340)Cash and cash equivalents at beginning of period

47,69961,347

Cash and cash equivalents at end of period

88,70055,006

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents13(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Significant Changes in Shareholders’ Equity)
Not applicable.
(Segment Information)【Segment information】
I FY2017 2Q (Six months from April 1 to September 30, 2017)
1. Information regarding sales, gains or losses, by reportable segments(Millions of yen)AmountReportable segments

recorded in
Residential

Property

Property &Brokerage

Facility

Other

Adjustments
Total

Investment
Leasing

Development(Note) 1

Subtotal

Management& CRE

consolidated
financial(Note) 2

statements

Management(Note) 3

Operating revenue
145,531

59,966

4,546

16,722

46,226272,99352

273,045-

273,045

Inter-segment

422

1,193

-

1,165

4,027

6,808

0

6,808

(6,808)-Subtotal

145,954

61,1604,546

17,88750,253279,801

52

279,854(6,808)273,045

Segment profit or losses

10,21915,890

2,860

4,458

3,150

36,579(1)

36,577(2,079)34,497External customers(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 2,079 million yen shown in the adjustments column for segment profit or losses includes elimination ofintersegment transactions of 1,327 million yen and a deduction of 3,406 million yen for corporate expenses not allocated to eachreportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable to reportablesegments.
3. The segment profit or losses is reconciled to the operating profit stated in the quarterly consolidated statements of income.
2. Information regarding impairment loss on noncurrent assets or goodwill by reportable segment(Significant impairment loss on noncurrent assets)(Millions of yen)
Residential

Investment

Leasing

Development

Impairment loss

Management

-

67

-

14

Property

Property &Brokerage &Facility

CRE

Management

-

Total

-

67

II FY2018 2Q (Six months from April 1 to September 30, 2018)
1. Information regarding sales, gains or losses, by reportable segments(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Other

Property &Adjustments
Total

Investment
Leasing

Development

Brokerage

Facility

Subtotal(Note) 1

Management& CRE

Management

16,22945,883

consolidated
financial(Note) 2

statements(Note) 3

Operating revenue
External customers

95,597

69,1004,501

231,31146

231,358-

231,358

Inter-segment

480

1,170

-

740

5,288

7,679

0

7,679

(7,679)-Subtotal

96,07870,270

4,501

16,96951,172238,99146

239,038(7,679)231,358

Segment profit or losses

857

18,384

2,772

2,882

3,127

28,025(15)

28,010(1,991)

26,018(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 1,991 million yen shown in the adjustments column for segment profit or losses includes elimination ofintersegment transactions of 736 million yen and a deduction of 2,728 million yen for corporate expenses not allocatedto each reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributableto reportable segments.
3. The segment profit or losses is reconciled to the operating profit stated in the Quarterly Consolidated Statements of Income.
2. Changes in reportable segments
From the first quarter, Nomura Real Estate Reform Co., Ltd., which had been classified under the Residential Development Business
Unit, was transferred to the Property & Facility Management Business Unit to promote business in conjunction with the property andmanagement business.
In line with this change, the segment information for the first six months ended September 30, 2017 is calculated in accordance with
the newly adopted segment classification.
3. Information regarding impairment loss on noncurrent assets or goodwill by reportable segment
Not applicable15