January 31, 2017

Consolidated Financial Results
for the First Nine Months from April 1 to December 31, 2016
<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

Inquiries:

Naoko Usami,
General Manager, Corporate Communications Dept.

Email:

info@nomura-re-hd.com

Scheduled submitting date of quarterly securities report :February 10, 2017

Scheduled starting date for dividend payments:-

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

I.

Consolidated operating results for the first nine months from April 1 to December 31, 2016
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating income

Profit attributable toOrdinary income

owners of parent

First nine months ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Dec. 31, 2016

368,989(3.1)

49,130(7.4)

42,965(8.8)

29,185

2.7

Dec. 31, 2015

380,749

8.0

53,04831.2

47,131

40.4

28,43170.5(Note) Comprehensive income:From April 1 to December 31, 2016 31,577 million yen (up 8.8%)
From April 1 to December 31, 2015 29,015 million yen (up 16.4%)

Basic earnings

Diluted earnings

per shareper shareyen

yenDec. 31, 2016

152.20151.57

Dec. 31, 2015

148.53147.92First nine months ended(2) Consolidated financial position
As ofTotal assets

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Dec. 31, 2016

1,578,102

477,069

29.5

Mar. 31, 2016

1,485,449

456,408

29.9(Reference) Shareholders’ equity:

As of December 31, 2016 464,770 million yen As of March 31, 2016 444,854 million yen
1

Ⅱ.Dividends
Annual dividend per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

yen

yen

yen

yen

-

27.50

-

30.00

57.50

-

30.00

-

30.00

60.00

Fiscal year ended
Mar. 31,2016
Fiscal year ending
Mar. 31, 2017
Fiscal year ending
Mar. 31,2017-(Forecast)(Note) Revision of dividend forecasts during this quarter: NoneIII. Forecasts of consolidated operating results from April 1, 2016 to March 31, 2017(% indicates the rate of changes from previous fiscal year )Operating revenue

Operating income

Ordinary income

Profit attributable to

Basic earnings perowners of parent

shareMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

585,000

2.7

76,000(6.1)

67,000(7.8)

43,000(8.9)

224.22

Fiscal year
ending Mar. 31,
2017* 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.: None

2)

Changes in accounting policies other than the above: None

3)

Changes in accounting estimates: None

4)

Restatements: None

(4) Number of shares issued (common stock)1)

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

2)

3)

As of December 31

As of March 31

2016

2016

191,822,601

191,679,601

1,709

1,508

Treasury shares at end of period

Average number of shares outstanding during the period

2

From April 1 toFrom April 1 to

December 31

December 31

2016

2015

191,762,845

191,412,431

* Implementation status of auditing procedure
The financial summary and the accompanying materials including the consolidated financial statements are not subject to the review
procedure by external auditors that are based on Financial Instruments and Exchange Act.
The review procedure has not yet finished at the point of releasing this financial summary.
* Forward-looking statements
Certain statements other than historical facts in this document are forward-looking statements that reflect the Company’s plans andestimates based on currently available and reasonable information. Therefore, the Company has no intention to promise theaccomplishment of the forecasts. These statements include known and unknown risks, uncertainties, and other factors that may cause theCompany’s actual future performance to differ from the forward-looking statements contained herewith. For more details of the forecast,please refer to the Appendix P.6 “1. Business Results and Financial Position (1) Business Results 3) Forecasts of financial results for the
fiscal year ending March 31, 2017.”(How to obtain explanatory materials for financial results)
Explanatory materials for financial results (“The fact sheets”) will be disclosed on TDnet on January 31, 2017 and will be uploaded on
the Company's website.

3

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

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

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

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

6

2. Quarterly Consolidated Financial Statements ................................................................................................................................................

7(1) Quarterly Consolidated Balance Sheets ...............................................................................................................................................

7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income..............

9

Quarterly Consolidated Statements of Income
Nine Months from April 1 to December 31, 2016 ........................................................................................................................

9

Quarterly Consolidated Statements of Comprehensive Income
Nine Months from April 1 to December 31, 2016 ........................................................................................................................

10(3) Quarterly Consolidated Statement of Cash Flows .............................................................................................................................

11(4) Notes to Quarterly Consolidated Financial Statements .....................................................................................................................

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

13(Notes to Significant Changes in Shareholders’ Equity) ...................................................................................................................

13(Segment Information) ..........................................................................................................................................................................

131

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group (“the Group”)posted the following consolidated performance for the current third quarter: Operating
revenue of 368,989 million yen, which represents a decrease of 11,759 million yen, or 3.1% year on year; operating income of 49,130
million yen, a decrease of 3,918 million yen, or 7.4%; ordinary income of 42,965 million yen, a decrease of 4,165 million yen, or 8.8 %;and profit attributable to owners of parent of 29,185 million yen, an increase of 754 million yen, or 2.7%.
An overview of unit achievements is given below:
Operating revenue for each unit includes internal sales and transfer amount among units. Due to the rounding of fractions, total
figures may not match.
From the first quarter of the current accounting period, Nomura Real Estate Heating and Cooling Supply Co., Ltd., which had beenclassified under the Leasing Unit, was transferred to the Property & Facility Management Unit to promote business in conjunction withthe property and facility management business.
The results of the third quarter and full-year of the previous fiscal year were calculated under the newly adopted unit classification.
<Residential Development Unit>
Operating revenue in this unit totaled 200,027 million yen, which represents a decrease of 16,907 million yen, or 7.8 % year on year,
and operating income was 14,889 million yen, a decrease of 4,254 million yen, or 22.2%. This was mainly due to a decrease of thenumber of housing units sold, while both prices of housing unit recorded and gross margin ratio increased.
We posted the sale of 3,074 units (a decrease of 711 units year on year), including PROUD TOWER Tachikawa (Tachikawa-shi,
Tokyo), PROUD CITY Shiki-Honcho (Shiki-shi, Saitama), OHANA Kita-Narashino (Funabashi-shi, Chiba), PROUD Sekime(Joutou-ku, Osaka-shi, Osaka) for condominiums, and PROUD SEASON Sengawa Ryokukei no Machi (Chofu-shi, Tokyo) for
detached housing. The contract progress rate for the planned 5,650 units of this consolidated fiscal year was 90.1 % as of the end of thecurrent third quarter.
The number of contracted but not recorded housing units totaled 3,866 units as of the end of the current third quarter (a decrease of 831
units compared to the previous third quarter).
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on the Group’s share.
From the current third quarter, the classification of the “period-end completed housing inventories” has changed. In accordance with thischange, the figures for the third quarter and full year results of the previous fiscal year were calculated under the new classification.
Breakdown of operating revenue

Housing
sales

Tokyo

First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2015

Dec. 31, 2016

March 31, 2016

Housing units

Operating revenue

sold(Millions of yen)

31, 2016
Housing units ar.
Operatingrevenue
sold(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)

3,399 units

187,976

2,560 units

159,283

4,721 units

260,494

Kansai area

262 units

11,771

256 units

13,568857 units

38,223Other

124 units

6,072

256 units

12,291427 units

20,078Subtotal

3,785 units

205,820

3,074 units

185,143

6,006 units

318,795(Detached housing)(288 units)(18,637)(418 units)(23,600)(643 units)(39,514)

metropolitan area

Other
Total

11,113

14,883

15,719216,934

200,027

334,5142

Housing sales Period-end completed housing inventories (released for sale)
As of December 31, 2015

As of December 31, 2016

As of March 31, 2016

Tokyo metropolitan area

74 units

263 units

84 units

Kansai area

17 units

33 units

29 unitsOther

15 units

22 units

20 units

Total

107 units

318 units

134 units(Detached housing)(43 units)(45 units)(46 units)

Housing sales Period-end completed housing inventories (unreleased)
As of December 31, 2015

As of December 31, 2016

As of March 31, 2016

Total

2 units

222 units

215 units(Detached housing)(2 units)(35 units)(94 units)

Housing sales Contracted but not recorded housing units
As of December 31, 2015

As of December 31, 2016

Outstanding

Outstanding

Housing units

contract amount

Housing units(Millions of yen)contract amount

As of March 31, 2016
Outstanding
Housing units(Millions of yen)contract amount(Millions of yen)

Tokyo metropolitan area

3,132 units

188,975

2,753 units

165,260

2,569 units

162,146

Kansai area

952 units

43,742594 units

28,448535 units

26,577

Other

612 units

30,636

517 units

26,647389 units

21,235

Total

4,697 units

263,354

3,866 units

220,356

3,493 units

209,959(Detached housing)(249 units)(14,821)(206 units)(12,266)(74 units)(4,613)<Leasing Unit >Operating revenue in this unit totaled 77,060 million yen, which represents an increase of 280 million yen, or 0.4 % year on year, andoperating income totaled 21,930 million yen, a decrease of 925 million yen, or 4.0%. This was mainly due to a decrease in sales ofproperty development business while the improvement of vacancy rate led to the increase of rent revenue.
From the first quarter of the current accounting period, Nomura Real Estate Heating and Cooling Supply Co., Ltd., which had beenclassified under the Leasing Unit, was transferred to the Property & Facility Management Unit. In accordance with this change, thefigures for the third quarter and full year results of the previous fiscal year were calculated under the new classification.

3

Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec. 31, 2015

Dec. 31, 2016

Mar. 31, 2016

(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

37,047

38,23549,594

Leasing (retail facilities)

8,141

8,762

10,873

Leasing (other)

4,412

4,414

5,882

Property development (sale)

19,326

18,72633,260Property development (leasing)

2,608

2,852

3,320

Other

5,244

4,069

7,295

76,78077,060110,226

Total

Rentable area
As of December 31, 2015

As of December 31, 2016

As of March 31, 2016

Offices

828,049 ㎡

830,455 ㎡

829,312 ㎡

Retail facilities

108,194 ㎡

144,797 ㎡

144,815 ㎡

936,243 ㎡

975,252 ㎡

974,127 ㎡

Total

Vacancy rate (offices and retail facilities)
As of December 31, 2015

As of December 31, 2016
3.3%

As of March 31, 2016
1.0%

2.2%

<Investment Management Unit>
Operating revenue in this unit totaled 7,494 million yen, which represents a decrease of 1,781 million yen, or 19.2 % year on year, andoperating income totaled 4,847 million yen, a decrease of 1,765 million yen, or 26.7%. This was mainly due to posting the acquisition fee
associated with the merger of 3 listed REITs in the previous third quarter.
The assets under management increased from the previous third quarter, due to the merger between Nomura Real Estate Master Fund,
Inc. and Top REIT, Inc. in September 2016.
First nine months ended

Operating revenue

First nine months ended

Fiscal year ended

Dec.31, 2015

Dec.31, 2016

Mar.31, 2016

(Millions of yen)

(Millions of yen)

(Millions of yen)

9,275

7,494

10,973As of December 31, 2015

As of December 31, 2016

As of March 31, 2016

(Millions of yen)

(Millions of yen)

(Millions of yen)

Assets under management

REITs

945,628

1,188,694

1,012,630

Private funds, etc.

72,356

48,34761,851

1,017,984

1,237,042

1,074,481

Total<Property Brokerage & CRE Unit>
Operating revenue in this unit totaled 25,201 million yen, which represents an increase of 3,412 million yen, or 15.7% year on year,
operating income totaled 6,494 million yen, an increase of 2,020 million yen, or 45.2%. This was mainly due to an increase in the numberof transactions and transaction value.
In the wholesale operations, the operation was conducted by both the Corporate Real Estate Service Division, Nomura Real Estate
Development Co.,Ltd. and Nomura Real Estate Urban Net Co., Ltd. up to present, however, the reorganization was undertaken effective
on October 1, 2016, integrating offices, employees and functions into the Corporate Real Estate Service Division, Nomura Real Estate4

Development Co., Ltd.
In retail operations, we opened the following new branch stores: Iidabashi Center (Chiyoda-ku, Tokyo) and Toyonaka Center(Toyonaka-shi, Osaka) in April 2016, Oizumi-gakuen Center (Nerima-ku, Tokyo) in October 2016, and Ueno Center (Taito-ku, Tokyo) in
November 2016.
Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec.31, 2015

Dec.31, 2016

Mar.31, 2016

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

18,701

22,20828,028

Other

3,087

2,992

7,345

21,78925,20135,373

Total

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

First nine months ended

Fiscal year ended

Dec.31, 2015

Dec.31, 2016

Mar.31, 2016

Number of transactions
Total transaction value (Millions of yen)

5,541

5,984

7,710

461,365554,811

713,574<Property & Facility Management Unit>
Operating revenue in this unit totaled 68,979 million yen, which represents an increase of 4,964 million yen, or 7.8 % year on year, andoperating income totaled 4,639 million yen, an increase of 852 million yen, or 22.5%. This was mainly due to an increase in the numberof construction ordered such as large-scale repair work of condominiums.
From the first quarter of the current accounting period, Nomura Real Estate Heating and Cooling Supply Co., Ltd., which had beenclassified under the Leasing Unit, was transferred to the Property & Facility Management Unit. In accordance with this change, thefigures for the third quarter and full year results of the previous fiscal year were calculated under the new classification.
In the fitness club business, we opened MEGALOS_0+ Ebisu (Shibuya-ku, Tokyo) in April 2016, and MEGSLOS_Reflet Ebisu(Shibuya-ku, Tokyo) in June 2016.
In the fitness club business sector, we opened MEGALOS_0+ Ebisu (Shibuya-ku, Tokyo) in April 2016, and MEGSLOS_Reflet
Ebisu (Shibuya-ku, Tokyo) in June 2016.
From the first quarter of the current accounting period, Nomura Real Estate Heating and Cooling Supply Co., Ltd., which had beenclassified under the Leasing Unit, was transferred to the Property & Facility Management Unit. In accordance with this change, thefigures for the third quarter and full year results of the previous fiscal year were calculated under the new classification.
Breakdown of operating revenue
First nine months ended

First nine months ended

Fiscal year ended

Dec.31, 2015

Dec.31, 2016

Mar.31, 2016

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

35,74536,25547,952

Construction ordered

14,20017,605

24,636

Fitness club & elderly care

11,223

11,625

14,995

Other

2,846

3,493

3,967

64,014

68,97991,552

Total

Number of properties under management
As of December 31, 2015
Buildings under management
Condominiums under management (unit)

As of December 31, 2016

As of March 31, 2016

722

705

705

160,735

166,570

163,0365

<Other Unit>
Operating revenue in this unit totaled 77 million yen, which represents a decrease of 1,137 million yen, or 93.6% year on year, andoperating loss totaled 20 million yen (the previous third quarter was operating loss of 109 million yen).

(2) Financial Position
As of March 31, 2016

As of December 31, 2016

Changes

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

Total assets

1,485,449

1,578,102

92,652

6.2

Total liabilities

1,029,041

1,101,032

71,990

7.0

Net assets

456,408

477,069

20,661

4.5

Shareholders' equity ratio

29.9%

29.5%

-

-

Total assets totaled 1,578,102 million yen, an increase of 92,652 million yen compared to the end of the previous fiscal year. This was
mainly due to an increase in inventories (increased by 81,263 million yen) and land (increased by 15,305 million yen), while cash anddeposit (decreased by 10,188 million yen) decreased.
Total liabilities totaled 1,101,032 million yen, an increase of 71,990 million yen from the end of the previous fiscal year. This was
mainly due to an increase in short-term loans payable (increased by 50,600 million yen) and long-term loans payable (increased by
31,100 million yen), while notes and accounts payable-trade (decreased by 23,224 million yen) decreased.
Net assets totaled 477,069 million yen, an increase of 20,661 million yen compared to the end of the previous fiscal year. This was
mainly due to an increase in retained earnings (increased by 17,679 million yen).
The shareholders' equity ratio was 29.5% (decreased by 0.5 points compared to the end of the previous fiscal year).
(Cash Flows)
Cash and cash equivalents as of the end of the current third quarter totaled 47,403 million yen, which represents a decrease of 10,188
million yen compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 96,628 million yen (a decrease of 68,322 million yen year on year).
This was mainly due to an increase in inventories and a decrease in notes and accounts payable-trade.
Net cash provided by (used in) investment activities decreased by 31,500 million yen (an increase of 3,860 million yen year on year).
This mainly reflected the purchase of property, plant and equipment and intangible assets.
Net cash provided by (used in) financing activities increased by 117,992 million yen (an increase of 58,012 million yen year on year).
This was mainly due to fundraising short-term loans, commercial papers and issuance of bonds.

(3) Consolidated Operating Result Forecasts
No change in the consolidated operating result forecast which was announced on October 27, 2016.

6

2.Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of December 31, 2016

AssetsCurrent assets
Cash and deposits

57,59347,405

Notes and accounts receivable - trade

15,371

12,421

Real estate for sale78,132

115,068

Real estate for sale in process

269,546

281,082

Land held for development

148,729

181,169

Equity investments

819

2,361

Deferred tax assets

5,285

3,228

Other

33,33838,889(38)(38)

608,779

681,587

Buildings and structures, net

235,068

229,854

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land523,696

539,002

Other, net

20,32528,821

Total property, plant and equipment

779,091

797,678

10,681

10,922

Investment securities

45,511

46,707

Lease and guarantee deposits

21,37921,654

Deferred tax assets

14,84014,978

Other

5,167

4,574

Intangible assets
Investments and other assets

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

86,897

87,913876,670

896,514

1,485,449

1,578,102

Total non-current assets
Total assets

7

(Millions of yen)
As of March 31, 2016

As of December 31, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade51,162

27,937

Short-term loans payable

137,300

187,900

Commercial papers－

28,000Current portion of bonds－

10,000

Income taxes payable

13,2323,820

Deposits received

29,617

11,057

Deferred tax liabilities

17

19

Provision for bonuses

7,073

3,900

Provision for directors' bonuses

738

451

Provision for loss on business liquidation

61

51

Other

49,90343,857

Total current liabilities

289,107

316,995

Non-current liabilities
Bonds payable

60,00070,000Long-term loans payable

524,600

555,700

Lease and guarantee deposits received

63,76664,719Deferred tax liabilities

64,07066,079Deferred tax liabilities for land revaluation

3,900

3,899

Provision for loss on subleasing business

313

276

Net defined benefit liability

18,01817,825

Other

5,264

5,536

Total non-current liabilities

739,933

784,036

1,029,041

1,101,032

Capital stock

116,598

116,733

Capital surplus

109,842

109,977

Retained earnings

207,203

224,883(3)(3)

433,642

451,591

Valuation difference on available-for-sale securities

6,664

8,625

Deferred gains or losses on hedges

155

(92)

Revaluation reserve for land

Total liabilities
Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

7,861

7,860

Foreign currency translation adjustment

43

38

Remeasurements of defined benefit plans(3,513)(3,252)

Total accumulated other comprehensive income

11,212

13,179Subscription rights to shares

1,685

2,032

Non-controlling interests

9,868

10,266456,408

477,069

1,485,449

1,578,102

Total net assets
Total liabilities and net assets8(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)(Millions of yen)First nine months ended

First nine months ended

Dec. 31, 2015

Dec. 31, 2016

Operating revenue

380,749

368,989

Operating cost259,359

249,055

Operating gross profit

121,389

119,933

Selling, general and administrative expenses

68,34170,803Operating income

53,04849,130Interest income

52

39

Dividend income

1,006

244

Non-operating income

Share of profit of entities accounted for using equity method

16

83

Other

247

204

Total non-operating income

1,322

571

Interest expenses

5,945

5,793

Other

1,293

941

Total non-operating expenses

7,239

6,735

47,13142,965Gain on sales of non-current assets－

945

Total extraordinary income

－

945

950

125

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses
Impairment loss
Loss on valuation of investment securities

278－

Total extraordinary losses

1,229

125

Profit before income taxes

45,901

43,785

Income taxes - current

13,22911,115

Income taxes - deferred

2,547

3,059

Total income taxes

15,777

14,175

Profit30,12429,610

Profit attributable to non-controlling interests

1,693

424

Profit attributable to owners of parent

28,431

29,1859

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

ProfitFirst nine months ended

First nine months ended

Dec. 31, 2015

Dec. 31, 2016
30,12429,610

Valuation difference on available-for-sale securities

(892)

1,960

Deferred gains or losses on hedges

(46)

(248)

Revaluation reserve for land

(0)

(0)

Other Comprehensive Income

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of the other comprehensive income of associates accounted for using equity method

Total other comprehensive income

(7)

(37)

(161)

260

-

33

(1,108)1,967

29,01531,577

Comprehensive income attributable to owners of parent

27,322

31,153Comprehensive income attributable to non-controlling interests

1,693

424

Comprehensive Income(Breakdown)

10(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)First nine months ended

First nine months ended

Dec. 31, 2015

Dec. 31, 2016

Cash flows from operating activities
Profit before income taxes

45,901

43,785

Depreciation

11,901

12,585

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

Interest and dividend income

(16)
(13)
(16)
(81)
(224)
(1,058)

(83)
(0)
(10)
(37)
(193)
(283)

Interest expenses

5,945

5,793

Decrease (increase) in notes and accounts receivable - trade

3,344

2,946

(37,683)(20,599)(14,230)(594)(2,026)(81,263)(1,508)(23,221)(18,560)(9,648)(69,698)

1,047

272

(5,948)(21,377)(28,306)(5,818)(21,384)(96,628)

Purchase of investment securities(3,023)(768)

Proceeds from sales and liquidation of investment securities

2,907

1,369

(9,692)－(24,795)(38,103)

175

4,240

Payments for lease and guarantee deposits

(526)

(823)

Proceeds from collection of lease and guarantee deposits

1,201

619

Repayments of lease and guarantee deposits received(2,160)(1,737)

Proceeds from lease and guarantee deposits received

2,790

2,584

(2,237)(35,360)

1,118

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on business liquidation
Increase (decrease) in provision for loss on subleasing business
Increase (decrease) in net defined benefit liability

Decrease (increase) in inventories
Decrease (increase) in equity investments

5,398

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible
assetsOther, net
Net cash provided by (used in) investing activities

11(31,500)

(Millions of yen)First nine months ended

First nine months ended

Dec. 31, 2015

Dec. 31, 2016

Cash flows from Financing Activities
Net increase (decrease) in short-term loans payable

52,70068,500

Increase (decrease) in commercial papers

26,00028,000

Repayments of finance lease obligations

(112)

(116)

Proceeds from long-term loans payable

109,000

75,000

Repayments of long-term loans payable(86,300)(61,800)

Proceeds from issuance of bonds

9,936

19,869Proceeds from issuance of common shares

416

71

Proceeds from share issuance to non-controlling shareholders

105

－

(0)
(10,047)(1,465)(0)(11,504)(26)(40,253)－

Net cash provided by (used in) financing activities

59,980117,992

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(5)(3,692)(57)(10,193)

Cash and cash equivalents at beginning of period

50,41857,591－

4

46,72647,403Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation

Increase (decrease) in cash and cash equivalents resulting from change ofscope of consolidation
Cash and cash equivalents at end of period12(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Significant Changes in Shareholder’s Equity)
Not applicable.

(Segment Information)
Segment information
I First Nine months from April 1 to December, 2015
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

recorded in

Residential

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development

Adjustments
Total

Investment(Note) 1

Subtotal

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
216,486

74,777

9,275

20,25858,736 379,533

Inter-segment

448

2,003

0

1,531

5,278

Subtotal

216,934

76,7809,275

19,14322,856

6,612

External customers

Segment income or
loss

1,215

380,749-

380,749

9,261

0

9,261

(9,261)-

21,78964,014 388,795

1,215

390,010(9,261)

380,749

4,473

3,786

(109)

56,762(3,714)53,04856,872(Notes) 1. The “Other” category includes operating segments that are not included in reportable segments.
2. The deduction of 3,714 million yen shown in the adjustments column for segment income or losses includes an addition of 872
million yen for the elimination of inter-segment transactions and a deduction of 4,587 million yen for corporate expenses notallocated to each reportable segments. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. The segment income or loss are reconciled to the operating income stated in the quarterly consolidated statements of income.
2. Impairment loss on noncurrent assets or goodwill by reportable segments(Significant impairment loss on noncurrent assets)(Millions of yen)
Residential

Investment
Leasing

Development

Impairment loss-

Management

-

-

13

Property

Property &Brokerage &Facility

CRE

Management

-

Total

950

950

II First Nine Months from April 1 to December 31, 2016
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

Residential

recorded in

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development

Adjustments
Total

Investment(Note) 1

Subtotal

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
199,718

75,211

7,494

23,68262,804 368,911

77

368,989-

368,989

Inter-segment

309

1,849

-

1,518

6,174

9,851

0

9,581

(9,851)-

Subtotal

200,027

77,0607,494

25,201

68,979 378,763

77

378,841(9,851)

368,989

14,88921,930

4,847

6,494

4,639

(20)

52,780(3,650)49,130External customers

Segment income orloss

52,801(Notes) 1. The “Other” category includes operating segments that are not included in reportable segments.
2. The deduction of 3,650 million yen shown in the adjustments column for segment income or losses includes an addition of 950
million yen for the elimination of inter-segment transactions and a deduction of 4,601 million yen for corporate expenses notallocated to reportable segments. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. The segment income or losses are reconciled to the operating income stated in the quarterly consolidated statements of income.
2. Changes in reportable segments
Since this first quarter of the current accounting period, Nomura Real Estate Heating and Cooling Supply Co., Ltd., which had
been classified under the Leasing Unit, was transferred to the Property & Facility Management Unit to promote business inconjunction with the property and facility management business.
In this regard, the segment information for the third quarter of the previous accounting period has been prepared in accordancewith the newly adopted segment classification.
3. 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

Property-

Management

125

-

14

Property &Brokerage &Facility

CRE

Management

-

Total

-

125