Jan 27, 2022

Consolidated Financial Results
For the Nine Months from April 1 to December 31, 2021
<under Japanese GAAP>
Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purpose. All statements werebased on Tanshin report prepared in accordance with the provisions set forth in accounting regulations and principals generally accepted in Japan.

Name of company listed :Shares traded :Nomura Real Estate Holdings, Inc.
TSE (First section)

Code number :
URL :

3231
http://www.nomura-re-hd.co.jp/english/

Representative :Inquiries:

Eiji Kutsukake, President and Representative Director
Hidehiro Sasaki,

Email:

General Manager, Corporate Communications Dept.
nrehd-ir@nomura-re.co.jp

Scheduled submitting date of quarterly securities report:
Scheduled starting date for dividend payments:

February 7, 2022-

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

I. Consolidated operating results for the Nine Months from April 1, to December 31, 2021
(1) Consolidated business results(% indicates the rate of changes from previous fiscal term)
Operating revenue

Operating profit

Business profit

Profit attributableto owners of parent

Ordinary profit

First nine months ended

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Dec. 31, 2021

361,004(3.3)

49,135

3.4

49,2993.1

41,1782.8

26,8593.5

Dec. 31, 2020

373,361

12.6

47,51568.6

47,802

65.3

40,05082.6

25,962

77.1(Note) Comprehensive income: From April 1, 2021 to December 31, 2021: 28,300 million yen (up 6.1 %)From April 1, 2020 to December 31, 2020: 26,681 million yen (up 48.4%)(Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of
intangible assets associated with corporate acquisitions
Basic earnings
per shareFirst nine months ended

Diluted earnings
per share

Yen

Yen

Dec. 31, 2021

149.15148.68Dec. 31, 2020

142.98142.49(2) Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

As ofMillions of yen

Millions of yen%

Dec. 31, 2021

1,986,141

594,740

29.8

Mar. 31, 2021

1,921,306

586,350

30.4(Reference) Shareholders’ equity: As of December 31, 2021: 592,045 million yen

As of March 31, 2021: 583,328 million yen

II. Dividends
Dividend per share
1st quarter-end
Fiscal year ended
Mar. 31, 2021
Fiscal year ending
Mar. 31, 2022

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

40.00

-

42.50

82.50

-

42.50

-

47.50

90.00

Fiscal year ending
Mar. 31, 2022
(Forecasts)(Note) Revision from previous dividend forecasts: Yes
For the revision of dividend forecasts, please refer to “Announcement of Revision of Dividend Forecast” released today(January 27, 2022).

III. Forecasts of consolidated operating results for the fiscal year from April 1, 2021 to March 31, 2022(% indicates the rate of changes from previous fiscal year)

Fiscal year ending
Mar. 31, 2022

Profit attributable toowners of parent

Operating profit

Business profit

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

670,000

15.4

86,00012.7

88,00015.1

77,00016.7

51,00020.9

283.83(Note) Revision from previous operating results forecasts: Yes

Ordinary profit

Basic earnings
per share

Operating revenue

* Notes(1) Significant changes to subsidiaries during the period (Changes in scope of consolidation of specified subsidiaries): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to revision of accounting standards, etc.
2) Changes in accounting policies other than the above: Yes: None3) Changes in accounting estimates
4) Restatements: None: None(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Notes (4) Notes to Quarterly
Consolidated Financial Statements (Changes in Accounting Policies)” on page 14 of the Attachments.
(4) Number of shares issued (common stock)1) Number of shares issued at end of period (including treasury shares)
2) Treasury shares at end of period

3) Average number of shares outstanding during the period

As of Dec. 31

As of Mar. 31

2021

2021

182,537,937
3,308,891

193,099,001
12,490,613

From April 1 to Dec 31,
2021

From April 1 to Dec 31,
2020

180,080,665

181,581,205(Note) The number of treasury shares at end of each period includes the shares of the company owned by BIP (Board IncentivePlan) trust and ESOP (Employee Stock Ownership Plan) trust (2,522,837 shares as of December 31, 2021 and 1,962,549
shares as of March 31, 2021).
The Company’s share owned by executive compensation BIP (Board Incentive Plan) trust and ESOP (Employee Stock
Ownership Plan) trust are included in the number of treasury shares deducted in the calculation of average number ofshares outstanding during the period. (2,233,462 shares from April 1 to December 31, 2021 and 1,964,732 shares from
April 1 to December 31, 2020)* This Quarterly “Consolidated Financial Results” is not required to be audited by certified public accountants or audit corporations.
* Proper use of forecasts of operating 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 theCompany pledges to realize such statements. Actual performance and other results may differ materially from these forecasts are due
to various factors. For matters related to the forecasts of financial results, please refer to “1. Business Results and Financial Position(3) Consolidated Operating Result Forecasts” on page 8 of the Attachments.
(How to obtain the fact sheets)
The fact sheets will be disclosed on TDnet on January 27, 2022 and will be uploaded on the Company’s website.

Attachments- Contents
1. Business Results and Financial Position ……………………………………………………………………………………
(1) Business Results ……………………………………………………………………………………………………….

22(2) Financial Position ……………………………………………………………………………………………………...
(3) Consolidated Operating Result Forecasts ……………………………………………………………………………...

7
8

2. Quarterly Consolidated Financial Statements ………………………………………………………………………………
(1) Quarterly Consolidated Balance Sheets ……………………………………………………………………………….

99(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ...
Quarterly Consolidated Statements of Income for the First Nine Months from April 1 to December 31, 2021………

11
11

Quarterly Consolidated Statements of Comprehensive Income for the First Nine Months from April 1 to December
31, 2021 ………………………………………………………………………………………………………………..

12(3) Quarterly Consolidated Statement of Cash Flows …………………………………………………………………….
(4) Notes to Quarterly Consolidated Financial Statements ………………………………………………………………..

13
14(Notes to Going Concern Assumptions) ………………………………………………………………………………
(Notes to Significant Changes in Shareholder’s Equity) ………………………………………………………………

14
14(Changes in Accounting Policies) ……………………………………………………………………………………...
(Segment Information) …………………………………………………………………………………………………

14
15(Significant Subsequent Events）……………………………………………………………………………………….

17

1

1. Business Results and Financial Position(1) Business Results
The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the nine months ended
December 31, 2021: Operating revenue of 361,004 million yen, which represents a decrease of 12,356 million yen, or 3.3% year on
year; operating profit of 49,135 million yen, an increase of 1,620 million yen, or 3.4%; business profit of 49,299 million yen, an
increase of 1,497 million yen, or 3.1%; ordinary profit of 41,178 million yen, an increase of 1,127 million yen, or 2.8%; and profit
attributable to owners of parent of 26,859 million yen, an increase of 897 million yen, or 3.5%.
(Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of
intangible assets associated with corporate acquisitions
An overview of Business Unit achievements is given below:
Operating revenue for each Business Unit includes internal sales and transfer amount among Business Units. Total figures may
not match due to the rounding of fractions.
In Property Brokerage & CRE Business Unit, the real estate brokerage and consulting business had been conducted by twocompanies, Nomura Real Estate Development Co. Ltd. and Nomura Real Estate Urban Net Co. Ltd. As of April 1, 2021, theCompany implemented the reorganization to integrate location, personnel and function, in which Nomura Real Estate
Development Co., Ltd. being splitting company in absorption-type company split, and Nomura Real Estate Urban Net Co., Ltd.
being succeeding stock company in absorption-type company split. In addition, Nomura Real Estate Urban Net Co., Ltd. changed
its corporate name to Nomura Real Estate Solutions Co., Ltd. on the same day.
<Residential Development Business Unit>
Operating revenue in this Business Unit totaled 138,301 million yen, which represents an increase of 8,883 million yen, or 6.9%
year on year, and business profit totaled 5,872 million yen, an increase of 3,677 million yen, or 167.6%, resulting in increases inboth operating revenue and business profit compared with the financial results of the nine months ended December 31, 2020.
This was mainly due to increases in the number of housings sales and an improvement of the gross margin ratio in the housing
sales business.
In regard to housing sales, 1,902 units were recorded as sales (an increase of 317 units year on year). At the end of this third
quarter, the contracts to be recorded for the current fiscal year have been completed.
The number of housing contracted but not recorded as sales were 4,709 units as of the end of this third quarter (an increase of
686 units year on year).
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on thebusiness’s share.

2

Breakdown of operating revenue
First nine months ended
Dec. 31, 2020
Housing units soldFirst nine months ended
Dec. 31, 2021

Fiscal year ended
Mar. 31, 2021

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

Tokyo metropolitan
area

1,439 units

103,275

1,290 units

93,1452,981 units

211,465

Kansai area

84 units

5,020

277 units

13,452312 units

18,081

Other

62 units

3,337

335 units

17,293375 units

18,062

Subtotal(Detached housing)

1,585 units(274 units)111,632(16,266)

1,902 units(364 units)

123,892(23,683)3,669 units(372 units)247,609(22,741)

Rental housing (Note)

-

5,726

-

2,679

-

5,960

Senior / Other-

12,058-

11,729-19,007-

129,417-

138,301-

272,577

Housing sales

Total(Note) Rental Housing refers to properties developed for real estate investment market.
Housing sales period-end completed housing inventory (released for sale)
As of Dec. 31, 2020

As of Dec. 31, 2021

As of Mar. 31, 2021

Tokyo metropolitan area

173 units

78 units

161 units

Kansai area

37 units

23 units

45 units

Other

29 units

20 units

33 units

Total

239 units

121 units

239 units(Detached housing)(18 units)(0 unit)(18 units)

Housing sales period-end completed housing inventory (unreleased)
As of Dec. 31, 2020

As of Dec. 31, 2021

As of Mar. 31, 2021

Total

190 units

66 units

182 units(Detached housing)(11 units)(0 unit)(5 units)

Housing sales contracted but not recorded as housing sales
As of Dec. 31, 2020

As of Dec. 31, 2021

As of Mar. 31, 2021

Housing units

Outstanding
contract amount(Millions of yen)

Housing units

Outstanding
contract amount(Millions of yen)

Housing units

Outstanding
contract amount(Millions of yen)

Tokyo metropolitan area

2,839 units

209,201

3,293 units

246,068

2,260 units

170,232

Kansai area

437 units

23,526466 units

26,658394 units

20,655

Other

746 units

39,370948 units

50,392622 units

34,075

Total(Detached housing)

4,023 units(148 units)

272,097(9,439)4,709 units(194 units)

323,119(13,538)

3,276 units(159 units)

224,963(10,425)

3

<Commercial Real Estate Business Unit >Operating revenue in this Business Unit totaled 127,799 million yen, which represents a decrease of 25,448 million yen, or
16.6% year on year, and business profit totaled 27,706 million yen, a decrease of 4,844 million yen, or 14.9%, resulting indecreases in both operating revenue and business profit compared with the financial results of the first nine months ended
December 31, 2020.
This was mainly due to a decrease in revenue from property sales.
Breakdown of operating revenue
First nine months ended
Dec. 31, 2020
(Millions of yen)First nine months ended
Dec. 31, 2021
(Millions of yen)

Fiscal year ended
Mar. 31, 2021
(Millions of yen)

Leasing (offices)

35,58834,06747,411

Leasing (retail facilities)

7,915

8,923

11,018

Leasing (other)

4,361

3,089

5,776

85,20757,062

87,846

Property for sales(leasing) (Note)

8,807

10,170

11,239Fitness

8,201

10,02011,509

Other

3,165

4,464

4,426

153,248

127,799

179,227

Property for sales(sale) (Note)

Total(Note) Property for sales refers to properties such as office building, retail facility and logistic facility developed for real estate
investment market.
Net lettable area
As of Dec. 31, 2020

As of Dec. 31, 2021

As of Mar. 31, 2021

Offices

762,110㎡

705,582㎡

706,771㎡

Retail facilities

122,068㎡

133,626㎡

120,966㎡

884,178㎡

839,208㎡

827,737㎡

Total
Vacancy rate (offices and retail facilities)
As of Dec. 31, 2020

As of Dec. 31, 2021
4.6%

As of Mar. 31, 2021
6.5%

4

5.1%

<Investment Management Business Unit>
Operating revenue in this Business Unit totaled 9,603 million yen, which represents a decrease of 235 million yen, or 2.4% year
on year, and business profit totaled 6,028 million yen, a decrease of 246 million yen, or 3.9%, resulting in decreases in both
operating revenue and business profit compared with the financial results of the first nine months ended December 31, 2020.
First nine months ended
Dec. 31, 2020
(Millions of yen)
Operating revenue

First nine months ended
Dec. 31, 2021
(Millions of yen)

9,839

9,603

Fiscal year ended
Mar. 31, 2021
(Millions of yen)
12,456

Assets under management
As of Dec. 31, 2020
(Millions of yen)Domestic asset

REITs
Private funds,

manageretc.
Overseas asset manager
Total

As of Dec. 31, 2021
(Millions of yen)

As of Mar. 31, 2021
(Millions of yen)

1,409,564

1,397,078

1,396,973

137,486

194,101

139,513

267,468

310,865

279,159

1,814,520

1,902,045

1,815,646<Property Brokerage & CRE Business Unit>
Operating revenue in this Business Unit totaled 31,666 million yen, which represents an increase of 4,345 million yen, or 15.9%
year on year, and business profit totaled 8,231 million yen, an increase of 2,746 million yen, or 50.1%, resulting in increases inboth operating revenue and business profit compared with the financial results of the first nine months ended December 31, 2020.
This was mainly due to increases in the number of transactions and total transaction value of retail business in property
brokerage.
Breakdown of operating revenue
First nine months ended
Dec. 31, 2020
(Millions of yen)First nine months ended
Dec. 31, 2021
(Millions of yen)

Fiscal year ended
Mar. 31, 2021
(Millions of yen)

Property brokerage

24,50928,746

34,718(retail business)(16,257)(20,415)(23,334)(wholesale business)(8,251)(8,331)(11,384)

Other

2,811

2,919

4,717

27,32031,66639,436

Total

Number of transactions and transaction value of property brokerageFirst nine months ended
Dec. 31, 2020

First nine months ended
Dec. 31, 2021

Fiscal year ended
Mar. 31, 2021

Number of transactions

6,725

7,313

9,322

Total transaction value(Millions of yen)

644,467

688,467

893,423

5

<Property & Facility Management Business Unit>
Operating revenue in this Business Unit totaled 69,946 million yen, which represents an increase of 3,009 million yen, or 4.5%
year on year, and business profit totaled 5,931 million yen, an increase of 643 million yen, or 12.2%, resulting in increases in both
operating revenue and business profit compared with the financial results of the first nine months ended December 31, 2020.
This was mainly due to an increase in construction ordered.
Breakdown of operating revenue
First nine months ended
Dec. 31, 2020
(Millions of yen)First nine months ended
Dec. 31, 2021
(Millions of yen)

Fiscal year ended
Mar. 31, 2021
(Millions of yen)

Property & facility management

42,44443,72856,783

Construction ordered

20,28522,09835,863

Other

4,206

4,119

5,737

66,936

69,946

98,384

Total
Number of properties under management

As of Dec. 31, 2020

As of Dec. 31, 2021

As of Mar. 31, 2021

Buildings under management

793

781

788

Housings under management(unit)

182,206

183,221

183,162<Other>Operating revenue totaled 1,555 million yen which represents a decrease of 134 million yen, or 7.9% year on year, and businessloss totaled 1,479 million yen (business loss of the first nine months ended December 31, 2020 was 651 million yen).

6(2) Financial Position
As of Mar. 31, 2021
(Millions of yen)

As of Dec. 31, 2021
(Millions of yen)

Changes(Millions of yen)

Changes

Total assets

1,921,306

1,986,141

64,834

3.4%

Total liabilities

1,334,956

1,391,401

56,445

4.2%

Net assets

586,350594,740

8,389

1.4%

Shareholders’ equity ratio

30.4％

29.8%

-

-

Total assets were 1,986,141 million yen, which represents an increase of 64,834 million yen compared to the end of the previous
fiscal year. This was mainly because other in current assets including withholding income tax on dividends from subsidiaries
increased by 46,739 million yen, inventories increased by 31,206 million yen and investment securities increased by 10,017
million yen, while cash and deposits decreased by 31,844 million yen.
Total liabilities were 1,391,401 million yen, which represents an increase of 56,445 million yen compared to the end of theprevious fiscal year. This was mainly because interest-bearing debt increased by 99,325 million yen, while notes and accounts
payable -trade decreased by 31,802 million yen and income taxes payable decreased by 11,642 million yen.
Net assets were 594,740 million yen, which represents an increase of 8,389 million yen compared to the end of the previous
fiscal year. This was mainly because the amount of treasury shares deducted from shareholder’s equity decreased by 22,094 million
yen due to the cancellation of treasury shares (a contribution to an increase in net assets), while retained earnings decreased by
15,667 million yen due to the cancellation of treasury shares and the payment of cash dividends.
The shareholders’ equity ratio was 29.8%, a decrease of 0.6 percentage point from the end of the previous fiscal year.
(Cash Flows)
Cash and cash equivalents as of the end of this third quarter totaled 38,648 million yen, which represents a decrease of 31,975
million yen compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 83,556 million yen (a year-on-year increase of 45,379 millionyen). This was mainly due to the payments of income taxes, and a decrease of debt payments..
Net cash provided by (used in) investing activities decreased by 27,937 million yen (a year-on-year increase of 13,114 millionyen). This was mainly due to the purchase of property, plant and equipment and intangible assets and the purchase of investment
securities.
Net cash provided by (used in) financing activities increased by 79,344 million yen (a year-on-year decrease of 56,302 millionyen). This was mainly due to the fund procurement by the issuance of commercial papers.

7(3) Consolidated Operating Result Forecasts
The consolidated operating result forecasts for the fiscal year ending March 31, 2022 were revised from the figures announced
on October 28, 2021, by examining the future outlook based on the operating results for the nine months ended December 31,
2021.
<Consolidated Forecasts>
The Group expects the following consolidated operating result for the fiscal year ending March 31, 2022: Operating revenue of
670,000 million yen; operating profit of 86,000 million yen; business profit of 88,000 million yen; ordinary profit of 77,000
million yen; and profit attributable to owners of parent of 51,000 million yen.
Changes from the previous consolidated operating result forecasts are as follows:
Operating revenue

Operating profit

Business profit

Ordinary profit

Profit attributable toowners of parent

Earnings per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)670,000

82,00084,00074,00049,500275.30

Revised forecasts (B)670,000

86,00088,00077,00051,000283.83

Changes (B-A)

-

4,000

4,000

3,000

1,500

-

Changes (%)

-

4.9%

4.8%

4.1%

3.0%

-

76,33376,44865,96542,198232.53

Actual results for theprevious fiscal year

580,660<Forecasts by Business Unit>
Forecasts for the fiscal year ending March 31, 2022 by business unit are as follows:
Operating revenue
Previous forecasts(Millions of yen)

Revised forecasts(Millions of yen)

Changes(Millions of yen)

Residential Development

305,000

305,000-

Commercial Real Estate

220,000

220,000-

Investment Management

12,00012,000-Property Brokerage & CRE

43,00043,000-Property & Facility Management

100,000

100,000

-

2,000

2,000

-

(12,000)(12,000)-

670,000

670,000-

Other
Adjustments
Total
Business profit

Previous forecasts(Millions of yen)

Revised forecasts(Millions of yen)

Changes(Millions of yen)

Residential Development

29,50031,5002,000

Commercial Real Estate

37,50037,500-Investment Management

7,500

7,500

-

Property Brokerage & CRE

9,500

10,5001,000

Property & Facility Management

9,000

9,000

-

Other

(1,500)

(500)

1,000

Adjustments(7,500)(7,500)-84,00088,000

4,000

Total

8

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsReal estate for sale
Real estate for sale in process
Land held for development
Equity investments
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9

As of December 31, 2021

71,625
19,63539,780－－16,803336,308
326,165
212,727
28,77048,104(14)
1,043,321

334,822366,966
204,175
30,317102,730(15)
1,095,581

185,727
506,097
22,399714,224
18,468

183,975
505,301
24,786714,064
19,59586,42827,65523,0978,111(0)145,292
877,985
1,921,306

96,44629,43724,3076,708(0)
156,899
890,559
1,986,141

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Commercial papers
Current portion of bonds payable
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on business liquidation
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Leasehold and guarantee deposits received
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for share awards
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

10

As of December 31, 2021

61,16287,000－10,00018,57225,1408,599

29,360123,000
87,00010,0006,930
17,743
4,693

455

320

13
58,378269,322966,566345,624

160,000
751,500
58,85559,934
3,891
2,734
16,216
12,501
1,065,633
1,334,956

150,000
737,825
60,658
58,1183,902
3,130
16,59015,551
1,045,776
1,391,401

118,043
114,433
369,597(30,125)
571,948

118,536
114,926
353,929(8,030)579,362

7,827(1,342)
7,869(995)(1,979)11,3791,406
1,616
586,350
1,921,306

7,313(1,129)7,868
223(1,593)
12,682
1,031
1,663
594,740
1,986,141

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income for the First Nine Months from April 1 to December 31, 2021)(Millions of yen)
Nine months ended
December 31, 2020
Operating revenue
Operating costs
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of non-current assets
Gain on reversal of share acquisition rights
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidies for employment adjustment
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on COVID-19
Loss on building reconstruction
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

11

Nine months ended
December 31, 2021

373,361
251,203
122,157
74,64147,515361,004
233,466
127,538
78,402
49,135

70
59
96
123
247
597

50
81
19
24
380
555

6,818

6,638

181

326

1,062
8,062
40,0501,548
8,513
41,178

548
548

－
－

331
1,715
－
2,047
38,552
13,478(891)
12,58725,9642
25,962

405
281
617
1,304
39,873
16,076(3,085)
12,991
26,88122
26,859(Quarterly Consolidated Statements of Comprehensive Income for the First Nine Months from April 1 to December 31, 2021)(Millions of yen)
Nine months ended
December 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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 ofparentComprehensive income attributable to non-controllinginterests

12

Nine months ended
December 31, 2021
25,964

26,881

2,048(1,381)
(0)
(569)
466

(512)
212
(8)
1,088
386

152

251

717
26,681

1,418
28,30026,76828,155(86)

144

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine months ended
December 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Share of loss (profit) of entities accounted for using equity
methodIncrease (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on business liquidation
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in equity investments
Increase (decrease) in trade payables
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
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 assets
Proceeds from sale of property, plant and equipment andintangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Repayments of lease and guarantee deposits received
Proceeds from lease and guarantee deposits received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of finance lease obligations
Net increase (decrease) in commercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in scopeof consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13

Nine months ended
December 31, 2021

38,552
14,89239,87314,142

181

326

0
(4)
(581)
(130)
6,818
8,160
(89,356)
2,176(67,287)(20,126)
8,858(97,845)260(5,882)(25,468)(128,935)

0
(3)
372
(131)
6,638
2,490
(28,844)(1,663)(31,375)(7,397)(2,177)(7,750)401(5,438)(70,769)(83,556)(18,892)
71(39,840)(9,669)35(19,494)

18,166212(1,128)
1,504(4,741)3,743
64(41,051)(1,503)
1,105(4,250)4,266
1,360(27,937)

15,000(192)
20,000133,000(39,000)
18
39,801(10,000)
11－(14,682)(82)

23,500(189)
87,00031,408(32,500)
635－(10,000)
248(5,140)(15,515)(97)(8,226)(5)

135,647(107)(34,447)
77,611
43,164

79,344
172(31,975)
70,62438,648

(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Significant Changes in Shareholders’ Equity)
Cancellation of treasury shares
The Company cancelled treasury shares of 10,980,064 shares as of May 31, 2021, based on the resolution approved at themeeting of the Board of Directors held on January 28, 2021. As a result, retained earnings and treasury shares decreased by
27,004 million yen respectively during this third quarter.
(Changes in Accounting Policies)
1. Application of the Accounting Standard for Revenue Recognition
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 30, 2020,
Accounting Standards Board of Japan”), from the beginning of the first three months from April 1 to June 30, 2021. It recognizes
revenues for goods or services based on the amount estimated to be received in exchange for such goods or services at the point
when control of the promised goods or services is conveyed to the customer.
The Company has applied the Accounting Standard for Revenue Recognition transitionally, in accordance with the proviso in
Article 84 of the standard. The cumulative effect amount, applying with the new accounting policy retrospectively prior to thebeginning of the first three months from April 1 to June 30, 2021, was adjusted to retained earnings at the beginning of the first
three months from April 1 to June 30, 2021, and the Company has applied the new policy to the balance at the beginning of thefirst three months from April 1 to June 30, 2021.
As a result, the impact of application of the Accounting Standard for Revenue Recognition, etc. on consolidated financial
statements for the first nine months from April 1 to December 31, 2021 is immaterial.
Due to the application of Accounting Standard for Revenue Recognition, “Notes and accounts receivable – trade” which were
included in “Current assets” in the consolidated balance sheets for the previous fiscal year, are included in “Notes and accounts
receivable - trade, and contract assets” from the first three months from April 1 to June 30, 2021. In accordance with thetransitional treatment stipulated in Article 89-2 of the Accounting Standard for Revenue Recognition, figures for the first ninemonths from April 1 to December 31, 2020 have not been restated in accordance with the new approach to presentation.
2. Application of the Accounting Standard for Fair Value Measurement
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019,
Accounting Standards Board of Japan,”), from the beginning of the first three months from April 1 to June 30, 2021.
The company has prospectively applied new accounting policies based on the Accounting Standard for Fair Value Measurement,in accordance with the transitional measurement in Article 19 of Accounting Standard for Fair Value Measurement and Article 442 of “Accounting Standard for Financial Instruments,” (ASBJ Statement No.10, July 4, 2019).
The impact of application of the Accounting Standard for Fair Value Measurement, on consolidated financial statements for the
first nine months from April 1 to December 31, 2021 is immaterial.

14

(Segment Information)【Segment information】
I First nine months from April 1 to December 31, 2020
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)
Reportable segments
Property
Property &Residential Commercial Investment
Brokerage
Facility
Development Real Estate Management& CRE Management
Operating revenue
External customers
Internal sales andtransfer amountamong segments

Subtotal

Other(Note) 1

Total

Amountrecorded in
Adjustments consolidated(Note) 2
financialstatements(Note) 3

128,915

149,127

9,839

25,652

58,137

371,672

1,688

373,361-

373,361

502

4,120

-

1,668

8,798

15,0890

15,090(15,090)-

Subtotal

129,417

153,248

9,839

27,32066,936

386,762

1,689

388,451(15,090)373,361

Operating profit(Note) 3

2,212

32,287

6,057

5,485

5,163

51,206(351)

50,855(3,339)47,515

Share of profit (loss)of entities accounted
for using equity
method (Note) 3

(18)

57

-

-

102

141

(322)

(181)

-

(181)

Amortization of
intangible assets
associated withcorporate acquisitions(Note) 3

-

205

218

-

21

445

22

468

-

468

Segment profit or loss
(Business profit orloss) (Note) 3

2,194

32,550

6,275

5,485

5,287

51,793(651)

51,142(3,339)47,802(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 3,339 million yen shown in the adjustments column for segment profit or loss includes elimination ofintersegment transactions of 1,608 million yen and a deduction of 4,948 million yen for corporate expenses not allocated toeach reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable toreportable segments.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using
equity method + amortization of intangible assets associated with corporate acquisitions
2. Notes relating to changes in reportable segments etc.
(Significant impairment loss relating to non-current assets)(Millions of yen)

Impairment loss

Residential
Development

Commercial
Real Estate

Investment
Management

Property
Brokerage &CREProperty &Facility
Management

-

331

-

-

-

15

Total
331

Ⅱ First nine months from April 1 to December 31, 2021
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)
Reportable segments
Property
Property &Residential Commercial Investment
Brokerage
Facility
Development Real Estate Management& CRE Management
Operating revenue
External customers
Internal sales andtransfer amountamong segments

Subtotal

Other(Note) 1

Total

Amountrecorded in
Adjustments consolidated(Note) 2
financialstatements(Note) 3

137,809

121,381

9,562

29,82260,876359,452

1,551

361,004-

361,004

491

6,417

40

1,844

9,070

17,863

3

17,867(17,867)-

Subtotal

138,301

127,799

9,603

31,666

69,946377,316

1,555

378,872(17,867)

361,004

Operating profit(Note) 3

5,850

27,470

5,788

8,231

5,844

53,185(1,059)52,126(2,990)49,135

Share of profit (loss)of entities accounted
for using equity
method (Note) 3

21

30

-

-

64

116

(442)

(326)

-

(326)

Amortization of
intangible assets
associated withcorporate acquisitions(Note) 3

-

205

240

-

21

467

22

490

-

490

Segment profit or loss
(Business profit orloss) (Note) 3

5,872

27,706

6,028

8,231

5,931

53,769(1,479)52,290(2,990)49,299(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 2,990 million yen shown in the adjustments column for segment profit or loss includes elimination ofintersegment transactions of 2,033 million yen and a deduction of 5,024 million yen for corporate expenses not allocated toeach reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable toreportable segments.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using
equity method + amortization of intangible assets associated with corporate acquisitions
2. Notes relating to changes in reportable segments etc.
(Application of the Accounting Standard for Revenue Recognition)
The Company has applied the Accounting Standard for Revenue Recognition, and changed the way of accounting forrevenue recognition from the beginning of the first three months from April 1 to June 30, 2021 as described in above“Changes in Accounting Policies” Therefore, the Company has similarly changed the measuring method of segment profit
or loss. The impact of the change on operating revenue and profit or loss of reportable segments is immaterial.
3. Information regarding impairment loss on non-current assets or goodwill by reportable segment(Significant impairment loss relating to non-current assets)(Millions of yen)

Impairment loss

Residential
Development

Commercial
Real Estate

Investment
Management

Property
Brokerage &CREProperty &Facility
Management

-

405

-

-

-

16

Total
405

(Significant Subsequent Events）(Establishment of a joint venture company)
The Company resolved to establish a joint venture company in the Philippines, at the meeting of the Board of Directors heldon January 27, 2022. The joint venture company will be the Company’s affiliated company accounted for using the equity
method.
1. Purpose of the establishment
The Company decided to establish the new joint venture company to continuously expand the business volume of real estatedevelopment in the Philippines, where the future market growth is expected on the back of the increase of the middle-income
class.
2. Outline of the joint venture company
Company Name
Federal Land NRE Global, Inc. (tentative name)
Address

GT Tower, 6813 Ayala Avenue corner H.V. dela Costa

Date ofestablishment

April 2022 (Plan)

Share capital

Approx. 48.0 billion Philippine pesos (of which Nomura Real Estate Development plans toinvest approx. 16.0 billion Philippine pesos, as of April 2023, the date of investmentcompletion)

Shareholder
composition

Federal Land Group (66%)
Nomura Real Estate Development Co., Ltd. (34%)

Business outline

Township developments in the Philippines including initial 4 projects (Mandaluyong, Metro
Park, Cavite, Cebu) (tentative name), as well as development, sales, and management ofresidence, office, and retail facility.

17

Street, Makati, Philippine