Financial Report
For the Year Ended March 31, 2022

2022Management’s Discussion and Analysis ________________________ 1
Consolidated Balance Sheets _______________________________ 20
Consolidated Statements of Income __________________________ 22
Consolidated Statements of Comprehensive Income _____________ 23
Consolidated Statements of Changes in Net Assets ______________ 24
Consolidated Statements of Cash Flows _______________________ 25
Notes to Consolidated Financial Statements ____________________ 26
Independent Auditor’s Report _______________________________ 64Management’s Discussion and Analysis

Progress and Results of Business
Regarding the real estate market conditions, the housing sales market saw a robust sales trend with the number of housing units supplied
recovering to pre-COVID levels, the first-month contract rate exceeding 70% for the first time in six years in the Tokyo metropolitan area,
and other factors, underpinned by diversification of customer needs, the continuing low interest rate environment, etc. In the leasing officemarket, although vacancy rates are continuing at a high level for the recent few years, mainly in the central areas of Tokyo, the vacancy
rates began declining in the middle of the fiscal year for certain areas, and for some areas we have begun to see demand emerging for
office relocations with an eye to post-COVID business growth and further diversification of work styles. In addition, the logistics market
continued to expand due to the spread of e-commerce and other factors, and the retail and hotel market, which was severely affected by
the COVID pandemic, showed a gradual recovery trend. In the real estate investment market, property transactions were active mainly forlogistics facilities and rental housing due to a good fund procurement environment and strong appetite for investment in domestic realestate by investors in Japan and overseas, and the size of the market continued to grow. Moreover, the real estate brokerage market
continued robustly with the number of transactions and average transaction prices for used condominiums in the Tokyo metropolitan area
proceeding at a high level, etc., particularly due to an increase in relocation demand and ongoing price differences between new properties
and used properties in the retail business.
In this business environment, the Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the
fiscal year ended March 31, 2022: Operating revenue of ¥645,049 million, which represents an increase of 11.1% year on year; operating
profit of ¥91,210 million, an increase of 19.5%; business profit*1 of ¥92,765 million, an increase of 21.3%; ordinary profit of ¥82,557 million,
an increase of 25.2%; and profit attributable to owners of parent of ¥55,312 million, an increase of 31.1%.
Operating Results by Segment
An overview of segment achievements is given below:
Residential Development Business Unit
Operating revenue in the Residential Development Business Unit totaled ¥309,225 million, which represents an increase of 13.4% year on
year, and business profit totaled ¥32,550 million, an increase of 45.3%, resulting in increases in both operating revenue and businessprofit compared with the previous fiscal year. This was mainly due to an increase in the number of housing units sold and improvement in
the gross margin ratio in the housing sales business.
In regard to housing sales, 4,329 units were recorded as sales (an increase of 660 units year on year), including condominiums at
PROUD TOWER Kameido Cross and PROUD TOWER Higashi-Ikebukuro Station Arena and detached housing units at PROUD SEASON
Tsukimino. The number of housing units contracted but not recorded as sales was 3,548 units as of the end of the fiscal year ended March
31, 2022 (an increase of 272 units year on year) and the contract progress rate against the scheduled housing sales for the next fiscal
year was 74.6% at the beginning of the fiscal year ending March 31, 2023.
Furthermore, as initiatives to contribute to a sustainable society through business activities, the Residential Development Business
Unit developed ZEH*2 condominiums in addition to promoting the creation of housing aimed at net zero energy use through insulation,
power saving and power generation, such as the “(temporary name) Sagami Ono 4-Chome Plan” and “(temporary name) Mukogaoka-yuen
Collective Housing Plan,” which will realize virtually zero CO 2 emissions by utilizing renewable electricity, etc. Moreover, it promotes theproactive use of domestically produced lumber to help reduce CO2 emissions and so forth in our collective housing projects.
Commercial Real Estate Business Unit
Operating revenue in the Commercial Real Estate Business Unit totaled ¥202,460 million, which represents an increase of 13.0% year on
year, and business profit totaled ¥38,590 million, an increase of 8.8%, resulting in increases in both operating revenue and business profit
compared with the previous fiscal year. This was mainly due to an increase in revenue from property sales.
Construction of 17 facilities including the Nomura Real Estate Otemachi North Building office building, the Landport Ome III logistics
facility, the KAMEIDO CLOCK retail facility and the NOHGA HOTEL KIYOMIZU KYOTO hotel have been completed.
The Group has also continued to develop its PMO, H¹O and H¹T office brands that meet diversifying companies’ needs and changes
in workstyles, and has expanded its H¹T satellite offices to 216 branch locations as of the end of the fiscal year ended March 31, 2022.
Moreover, towards achieving the targets of RE100*3, which the Group has joined as an initiative towards realizing a carbon-free society,
the Group will use renewable energy for all consumable electricity, including the portion for tenants, in all of its assets for lease in Japan*4
by around the fiscal year ending March 31, 2024.
The Nomura Real Estate Tameikesanno Building was selected by the Ministry of Land, Infrastructure, Transport and Tourism for the2021 Leading Project for Sustainable Buildings (Wooden Construction Leading Type) in recognition of its use of a hybrid wooden structure
to reduce CO2 emissions during construction and to create a pillarless wooden office space while ensuring high earthquake resistance andfire resistance.

*1
*2
*3
*4

Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions
Based on ZEH-M Oriented standards
A global initiative leading the transition to 100% renewable electricity.
Assets for lease for which Nomura Real Estate Development Co., Ltd. has direct power contracts with electric power companies (including those used by tenants). Excludes
assets that Nomura Real Estate Development Co., Ltd. owns separately or jointly with other parties, assets subject to sale or demolition, and common areas of some rental
housing.

Nomura Real Estate Holdings, Inc. 1 Financial Report 2022

Investment Management Business Unit
Operating revenue in the Investment Management Business Unit totaled ¥12,804 million, which represents an increase of 2.8% year on
year, and business profit totaled ¥7,836 million, an increase of 3.3%, resulting in increases in both operating revenue and business profit
compared with the previous fiscal year. This was mainly due to increases in the assets under management in the domestic asset
management companies.
Assets under management steadily increased in the core domestic REIT business with Nomura Real Estate Master Fund, Inc. (NMF)
and Nomura Real Estate Private REIT, Inc. (NPR) having acquired a total of four properties (total transaction amount of ¥42,096 million)
including Landport Narashino, PROUD FLAT Togoshiginza and MEFULL Urawa from Nomura Real Estate Development Co., Ltd., inaddition to progress in the formation of private funds meeting the needs of investors.
Nomura Real Estate Asset Management Co., Ltd. has been meeting the expectations of investor needs in line with ESG(environment, society and governance) trends, and was the first real estate investment manager to receive the “2021 Minister of theEnvironment’s Award for Climate Change Action” sponsored by the Ministry of the Environment in recognition of its ongoing efforts inclimate change mitigation and adaptation at NMF and NPR. Furthermore, NMF and NPR have continuously received Global Real Estate
Sustainability Benchmark (GRESB)*1 ratings of at least four stars since 2016, and NPR was the first private REIT to obtain Eco-Action 21
certification*2.
Property Brokerage & CRE*3 Business Unit
Operating revenue in the Property Brokerage & CRE Business Unit totaled ¥43,762 million, which represents an increase of 11.0% year
on year, and business profit totaled ¥11,716 million, an increase of 30.5%, resulting in increases in both operating revenue and businessprofit compared with the previous fiscal year. This was mainly due to increases in the number of transactions and total transaction value inproperty brokerage’s retail business.
In the retail business at Nomura Real Estate Solutions Co., Ltd., we launched the REALIA service brand specializing in high-grade
condominiums in the central areas of Tokyo in April 2021, and opened REALIA Azabu*4. In addition, the Shinagawa Center opened in
June, and the Namba Center opened in October, bringing the total number of locations for individual customers to 89 as of the end of the
fiscal year ended March 31, 2022.
In April 2021, the Company newly established the Partner Services Division, which engages in a service (middle business) for smalland medium-sized enterprises, business owners, and individual asset holders, etc. In addition, we are actively working to promotesustainability, such as by proposing store interiors that use environmentally friendly materials and CRE proposals with an awareness of the
SDGs. Furthermore, with the aim of becoming a digitally advanced company, we will strive to further accelerate growth, develop newmarkets, and acquire new customers by strengthening digital marketing through aggressive DX investments and improving sales
productivity and competitive advantage through the use of digital approaches, including the introduction of electronic contract systems andnon-personal sales methods using online concierges.
Property & Facility Management Business Unit
Operating revenue in the Property & Facility Management Business Unit totaled ¥99,230 million, which represents an increase of 0.9%
year on year, and business profit totaled ¥9,205 million, a decrease of 0.8%, resulting in an increase in operating revenue and a decreasein business profit compared with the previous fiscal year. This was mainly due to an increase in operation and management income
resulting from an increase in the number of housing units under management, while at the same time construction income on orders
received decreased due to postponement of planned repair work, etc., as a result of the COVID-19 pandemic.
As of the end of the fiscal year ended March 31, 2022, the number of buildings under management was 772 buildings (down 16 fromthe end of the previous fiscal year), and the number of condominiums under management was 186,549 units (up 3,387).
In addition, Nomura Real Estate Partners Co., Ltd. has developed re:Premium Duo, a new product that follows re:Premium(announced in 2017), a product that extends the cycle of large-scale repair work and which had only been available for the PROUD
condominiums. As a result, through our business activities, which include expanding the targets for extending the cycle of large-scale
repair work to Hills, States, Co-op Nomura and other properties sold by Nomura Real Estate Development Co., Ltd. before the PROUD
condominiums and reducing life-cycle costs of buildings, we are promoting initiatives that contribute to sustainable urban development.
Furthermore, Nomura Real Estate Partners Co., Ltd. was ranked first in the 2021 SumaiSurfin “Management Company Customer
Satisfaction Survey” for the 13th consecutive year and also ranked first in the “Tokyo Metropolitan Area Condominium Management
Company” ranking for the fifth consecutive year, and ranked first in the “Tokai Area Condominium Management Company” ranking for thesecond consecutive year in the 2021 Oricon Customer Satisfaction Survey.
Overseas/Other
Operating revenue in the Overseas/Other totaled ¥2,755 million, which represents an increase of 33.1% year on year, and business profit
totaled ¥92 million (business loss of the previous fiscal year was ¥1,495 million). This was mainly due to an increase in the number ofhousing units sold in the housing sales business overseas.
As for the housing sales business overseas, sales were recorded for condominiums of Grand Park Phase 2 in Ho Chi Minh City,
Vietnam and other projects, and The Seasons Residences, a residential condominium project under development in Manila, Philippines,
won the top prize in the Philippines at the International Property Awards, which recognizes outstanding real estate projects.
In the fiscal year ended March 31, 2022, the Company decided to establish a new joint venture company, Federal Land NRE Global
Inc. in the Philippines with Federal Land Inc., a real estate company of the GT Group, one of the leading conglomerate groups in the
country.
In the housing sales business in Asia, we are participating in the business from the planning and development phases, engaging in
the KAIZEN project for quality improvement, and aiming to realize a sustainable society through the improvement of basic performancesuch as high quality and longevity of housing in each country. In May 2021, we also made an investment in Real Tech Ventures I, aventure capital fund specializing in real estate tech companies in Asia and Oceania. We will take on the challenge of realizing smart cities
in large-scale township developments in Asia by utilizing the cutting-edge technologies acquired through this fund.

*1
*2
*3
*4

GRESB is an annual benchmark assessment that measures ESG considerations for property companies and funds.
Eco-Action 21 Certification: A third-party certification system for environmental management system established by the Ministry of the Environment.
CRE: Corporate Real Estate. Real estate strategy support services for enterprises (such as consulting on the effective utilization and trading of real estate).
Name changed to “REALIA TOKYO” in April 2022

Nomura Real Estate Holdings, Inc. 2 Financial Report 2022

Analysis of Financial Position
AssetsTotal assets were ¥2,040,506 million, which represents an increase of ¥119,199 million compared with 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 ¥51,533
million, inventories increased by ¥18,708 million and investment securities increased by ¥14,726 million.
Liabilities
Total liabilities were ¥1,419,107 million, which represents an increase of ¥84,151 million compared with the end of the previous fiscal year.
This was mainly because notes and accounts payable - trade increased by ¥19,829 million, deposits received increased by ¥18,717 million
and interest-bearing debt increased by ¥14,235 million.
Net Assets
Net assets were ¥621,398 million, which represents an increase of ¥35,047 million compared with the end of the previous fiscal year. Thiswas mainly because retained earnings increased by ¥12,785 million. In this fiscal year, the company cancelled ¥27,004 million of treasury
shares and acquired ¥8,957 million of treasury shares.
The shareholders’ equity ratio was 30.3%.
Cash Flows
Cash Flows From Operating Activities
Net cash provided by operating activities amounted to ¥52,793 million (a difference of ¥116,297 million compared with net cash used inoperating activities in the previous fiscal year). This was mainly due to the recording of ¥81,052 million in profit before income taxes andincreases in trade payables and deposits received, which were offset by payments of income taxes.
Cash Flows From Investing Activities
Net cash used in investing activities amounted to ¥46,277 million (a year-on-year decrease of ¥9,511 million). This was mainly due to thepurchase of property, plant and equipment and intangible assets and the purchase of investment securities.
Cash Flows From Financing Activities
Net cash used in financing activities amounted to ¥9,619 million (a difference of ¥121,995 million compared with net cash provided byfinancing activities in the previous fiscal year). This was mainly due to the payment of dividends and the redemption of bonds despite fundprocurement by long-term borrowings.

Nomura Real Estate Holdings, Inc. 3 Financial Report 2022

Facilities Situation
In the fiscal year ended March 31, 2022, the Group’s total capital investments amounted to ¥50,706 million, including KAMEIDO CLOCK(Koto-ku, Tokyo).
The breakdown of capital investment by Business Unit is as follows.
Previous fiscal year Current fiscal year
(April 1, 2020 to(April 1, 2021 toMarch 31, 2021)
March 31, 2022)

Business Unit (Millions of yen)

Residential Development¥

541

Commercial Real Estate

43,776¥

Change

1,381

¥

839

45,5191,742

Investment Management

42

25

(17)

Property Brokerage and CRE

534

668

133

Property and Facility Management

304

460

156

Other
Subtotal
Adjustments
Total

210

300

89

45,41048,355

2,945

165

2,351

2,186

¥45,575¥50,706¥5,131

The following facilities, for which construction was still in progress at the end of the previous fiscal year, were completed in the fiscal
year ended March 31, 2022.

Company Name

Nomura Real
EstateDevelopment Co.,Ltd.

Property Name
(Location)

KAMEIDO CLOCK(Note)(Koto-ku, Tokyo)

Business
Unit

Major Use

Size of Construction or Details of
Facility, etc.

Commercial
Real Estate

Retailfacility

Steel-framed construction(partially reinforced concreteand steel-framed reinforced
concrete construction), 1 floor
below ground, 6 floors above
groundArea (m2)Completion

Acquisition
Price(Millions ofyen)

Building:
55,491
Land: 8,622

March
2022

¥35,444

Nomura Real
EstateDevelopment Co.,Ltd.

NOHGA HOTELKIYOMIZU KYOTO(Higashiyama-ku,
Kyoto-shi, Kyoto)

Commercial
Real Estate

Hotel

Steel-framed construction(partially reinforced concrete
construction), 1 floor below
ground, 6 floors above ground

Building:
8,906
Land: 2,514

January2022

11,420Nomura Real
EstateDevelopment Co.,
Ltd.

Nomura Real Estate
Otemachi North
Building(Chiyoda-ku, Tokyo)

Commercial
Real Estate

OfficeSteel-framed construction(partially reinforced concrete
construction), 1 floor below
ground, 10 floors above ground

Building:
7,768
Land: 886

June 2021

11,143

Note: Land area is the equity conversion areas.

In the fiscal year ended March 31, 2022, the following non-current asset was transferred to real estate for sale.
Company Name

Mainly Nomura
Real Estate
Building Co., Ltd.

Property Name
(Location)

Business
Unit

Toshiba Fukuoka
Building (Note)(Chuo-ku, Fukuokashi, Fukuoka) and18 other properties

Commercial
Real Estate

Major Use

Size of Construction or Details of Facility, etc.

Area (m2)

OfficeSteel-framed construction (partiallysteel-framed reinforced concrete
construction), 2 floors below ground, 17
floors above ground

Building: 23,711
Land: 4,597

Note: Data of Property Name, Major Use, Size of Construction or Details of Facility, etc. and Area information is for the Toshiba Fukuoka Building.

Nomura Real Estate Holdings, Inc. 4 Financial Report 2022

Book Value(Millions ofyen)¥20,055

Major Facilities and Equipment
Major facilities and equipment in the Nomura Real Estate Group (Nomura Real Estate Holdings, Inc. and its consolidated subsidiaries) are
as follows.
(1)1)

Commercial Real Estate Business Unit
Office and retail facilities, etc.
Company
Name

Property Name
(Location)

Nomura Real
EstateBuilding Co.,Ltd.

Hamamatsucho
Building /Toshiba Building(Minato-ku,
Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Yokohama
Business Park *2(Hodogaya-ku,
Yokohama-shi,
Kanagawa)

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)

OfficeSteel-framed
reinforced concrete
construction (partiallysteel-framed andreinforced concrete
construction), 3 floors
below ground, 39
floors above ground

158,732

March 1984

33,921¥9,584 ¥129,809¥539 ¥139,933

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 2 floors
below ground, 21
floors above ground,
11 other buildings

245,200

MainlyFebruary
1990

70,69325,845

14,557750

41,15355,491March 2022

8,622

14,52019,991931

35,444

Major UseBook Value (Millions of yen)
Building

Land

Other

Total

Nomura Real
EstateDevelopment
Co., Ltd.

KAMEIDO
CLOCK *3
(Koto-ku, Tokyo)

Retail facility

Steel-framed
construction (partiallyreinforced concreteand steel-framed
reinforced concrete
construction), 1 floor
below ground, 6 floors
above ground

Nomura Real
EstateBuilding Co.,Ltd.

LAZONA
KawasakiToshiba Building(Saiwai-ku,
Kawasaki-shi,
Kanagawa)

OfficeSteel-framed
construction, 15 floors
above ground

98,428March 2013

9,764

11,652

22,245576

34,474

Nomura Real
EstateDevelopment
Co., Ltd.

TOKYOTORANOMONGLOBALSQUARE *4(Minato-ku,
Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 4 floors
below ground, 24
floors above ground

20,860June 2020

1,183

11,86022,187356

34,404

OfficeSteel-framed
construction (partiallyreinforced concreteand steel-framed
reinforced concrete
construction), 5 floors
below ground, 21
floors above ground

44,989September
2010

2,737

11,44819,227294

30,970

OfficeSteel-framed
reinforced concrete
construction, 3 floors
below ground, 8 floors
above ground

29,430April 1961

3,196

1,248

21,846

0

23,095

OfficeSteel-framed
reinforced concrete
construction (partiallyreinforced concreteand steel-framed
construction), 5 floors
below ground, 50
floors above ground

58,512

May 1978

4,639

5,638

16,303335

22,278Hotel

Steel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 16 floors
above ground, 2 otherbuildings

9,280

March 2009

1,710

3,083

16,418198

19,700

OfficeSteel-framed
construction (partiallyreinforced concrete
construction), 2 floors
below ground, 14
floors above ground

20,420February
2009

1,939

3,040

15,70711

18,759Nomura Real
EstateDevelopment
Co., Ltd.

Nihonbashi
Muromachi
Nomura Building(Chuo-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Nihonbashihoncho Building(Chuo-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Shinjuku Nomura
Building *2 *4(Shinjuku-ku,
Tokyo)

MainlyRyubundo
Co., Ltd.

HOTEL NIWA
TOKYO
(Chiyoda-ku,
Tokyo)

Midosuji Mirai
Development,
LLC

Midosuji Nomura
Building *2(Chuo-ku,
Osaka-shi,
Osaka)

Nomura Real Estate Holdings, Inc. 5 Financial Report 2022

Company
Name

Property Name
(Location)

Nomura Real
EstateDevelopment
Co., Ltd.

Morisia
Tsudanuma *2(Narashino-shi,
Chiba)

Nomura Real
EstateDevelopment
Co., Ltd.

OtemachiNomura Building*2 *4(Chiyoda-ku,
Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Shibadaimon
Building (Minatoku, Tokyo)

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)

Retail facility

Steel-framed
reinforced concrete
construction (partiallyreinforced concrete
construction), 3 floors
below ground, 12
floors above ground, 1
other building

105,491

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 5 floors
below ground, 27
floors above ground

Completion
or [Time of
Acquisition]

Book Value (Millions of yen)

Land
Area (m2)

Building

MainlyOctober 1978

19,194¥928¥16,544¥25¥17,499

9,750

February
1994

749

1,487

12,584

5

14,076

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 2 floors
below ground, 11
floors above ground

15,700April 2010

2,447

2,870

10,65056

13,577

OfficeSteel-framed
reinforced concrete
construction (partiallyreinforced concreteand steel-framed
construction), 5 floors
below ground, 17
floors above ground

13,641March 1982

1,624

868

11,56519

12,453Retail facility

Steel-framed
construction (partiallyreinforced concrete
construction), 2 floors
below ground, 2 floors
above ground

35,612[March 2016]

16,503

6,497

4,942

188

11,6288,906January 2022

2,514

3,886

6,875

633

11,395Major Use

Land

Other

Total

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Ginza Building *4(Chuo-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

SOCOLA
Minamigyotoku *2(Ichikawa-shi,
Chiba)

Nomura Real
EstateDevelopment
Co., Ltd.

NOHGA HOTELKIYOMIZUKYOTO(Higashiyamaku, Kyoto-shi,
Kyoto)

Hotel

Steel-framed
construction (partiallyreinforced concrete
construction), 1 floor
below ground, 6 floors
above ground

Nomura Real
EstateBuilding Co.,Ltd.

ToshibaHamamatsucho
Building (Minatoku, Tokyo)

OfficeSteel-framed
reinforced concrete
construction, 8 floors
above ground

13,482

July 1974

2,907

343

10,956

3

11,303

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Real
Estate Otemachi
North Building(Chiyoda-ku,
Tokyo)

OfficeSteel-framed
construction (partiallyreinforced concrete
construction), 1 floor
below ground, 10
floors above ground

7,768

June 2021

886

3,528

7,472

78

11,078

Nomura Real
EstateDevelopment
Co., Ltd.

bono Sagamiono
Shopping Center*4(Minami-ku,
Sagamihara-shi,
Kanagawa)

Retail facility

Reinforced concrete
construction (partiallysteel-framed
construction), 1 floor
below ground, 11
floors above ground

43,059January 2013

5,797

4,722

4,649

145

9,516

Nomura Real
EstateBuilding Co.,Ltd.

LAZONA
Kawasaki Plaza*4 *5(Saiwai-ku,
Kawasaki-shi,
Kanagawa)

Retail facility

Steel-framed
reinforced concrete
construction (partiallyreinforced concreteand steel-framed
construction), 1 floor
below ground, 6 floors
above ground

98,254September
2006

72,013

8,061

—

563

8,624

Nomura Real
EstateBuilding Co.,Ltd.

Shinyokohama
Toshiba Building(Kohoku-ku,
Yokohama-shi,
Kanagawa)

Training
facility

Reinforced concrete
construction, 1 floor
below ground, 4 floors
above ground, 4 otherbuildings

28,822Mainly June
1969

15,829

2,730

5,660

15

8,406

OfficeSteel-framed
reinforced concrete
construction (partiallyreinforced concrete
construction), 1 floor
below ground, 8 floors
above ground, 1 otherbuilding

32,299April 1993

8,290

3,089

5,247

50

8,387

Nomura Real
EstateBuilding Co.,Ltd.

Fuchu Toshiba
Building (Fuchushi, Tokyo)

Nomura Real Estate Holdings, Inc. 6 Financial Report 2022

Company
Name

Property Name
(Location)

Nomura Real
EstateBuilding Co.,Ltd.

Toshiba Osaka
Building /Nomura Fudosan
Midosujihoncho
Building (Chuoku, Osaka-shi,
Osaka)

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)

OfficeSteel-framed
reinforced concrete
construction, 4 floors
below ground, 10
floors above ground

15,220

October 1965

1,307

¥890

¥5,989¥10¥6,891

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
and reinforced
concrete construction),
3 floors below ground,
40 floors above
ground43,093

March 1993

8,325

2,258

4,585

46

6,890

21,007

April 1974

2,366

944

5,768

23

6,735

Major UseBook Value (Millions of yen)
Building

Land

Other

Total

Nomura Real
EstateBuilding Co.,Ltd.

Umeda Sky
Building *4 (Kitaku, Osaka-shi,
Osaka)

Nomura Real
EstateBuilding Co.,
Ltd.

NREG Midosuji
Building /Nomura Fudosan
Midosuji Building(Chuo-ku,
Osaka-shi,
Osaka)

OfficeSteel-framed
reinforced concrete
construction, 2 floors
below ground, 10
floors above ground

Nomura Real
EstateBuilding Co.,
Ltd.

NREG Kawasaki
Logistics Center(Kawasaki-ku,
Kawasaki-shi,
Kanagawa)

Logistics
facility

Reinforced concrete
construction (partiallysteel-framed
construction), 5 floors
above ground49,046

March 2014

27,866

3,124

3,109

306

6,541

Nomura Real
EstateDevelopment
Co., Ltd.

NOHGA HOTELAKIHABARATOKYO(Chiyoda-ku,
Tokyo)

Hotel

Steel-framed
construction, 10 floors
above ground

4,016

June 2020

663

1,698

4,169

349

6,217

Nomura Real
EstateDevelopment
Co., Ltd.

Nihonbashi 1chome NakaDistrict Urban
Area
Redevelopment
Project *6 (Chuoku, Tokyo)

Land slated
for building
construction——[March 2008]

18,996

—

6,161

—

6,161

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Ichigaya Building(Chiyoda-ku,
Tokyo)

OfficeSteel-framed
reinforced concrete
construction, 2 floors
below ground, 9 floors
above ground

6,753

January 1982

1,220

2,567

3,182

1

5,752

Nomura Real
EstateDevelopment
Co., Ltd.

SOCOLA
Musashikoganei
Cross *7 *8(Koganei-shi,
Tokyo)

Retail facility

Reinforced concrete
construction (partiallysteel-framed
construction), 4 floors
above ground

10,040March 2020

1,643

4,185

1,301

178

5,666

Nomura Real
EstateBuilding Co.,Ltd.

Tsurumi Toshiba
Building(Tsurumi-ku,
Yokohama-shi,
Kanagawa)

OfficeSteel-framed
reinforced concrete
construction, 1 floor
below ground, 10
floors above ground

20,648March 1991

3,501

2,259

3,073

30

5,363

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Real
EstateTameikesanno
Building Project(Minato-ku,
Tokyo)

Land slated
for building
construction——[May 2016]

690

—

5,212

—

5,212

Nomura Real
EstateDevelopment
Co., Ltd.

Fukuoka Tenjin
Center Building *2*4(Chuo-ku,
Fukuoka-shi,
Fukuoka)

OfficeSteel-framed
reinforced concrete
construction, 3 floors
below ground, 19
floors above ground

25,103

April 1976

2,256

724

4,413

33

5,172

Nomura Real
EstateBuilding Co.,Ltd.

Creare Toshiba
Fuchu (Fuchushi, Tokyo)

Residential

Reinforced concrete
construction (partiallysteel-framed
reinforced concrete
construction), 10 floors
above ground

26,352January 1992

20,590

3,558

1,516

25

5,101

Retail facility

Steel-framed
construction (partiallysteel-framed
reinforced concrete
and reinforced
concrete construction),
3 floors below ground,
11 floors above
ground2,683

July 2019

312

1,768

2,979

42

4,790

Nomura Real
EstateBuilding Co.,Ltd.

GICROS GINZAGEMS (Chuo-ku,
Tokyo)

Nomura Real Estate Holdings, Inc. 7 Financial Report 2022

Company
Name

Property Name
(Location)

Major Use

Size of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)5,333January 2013

701

¥1,006¥3,716¥58¥4,781

Book Value (Millions of yen)
Building

Land

Other

Total

Nomura Real
EstateDevelopment
Co., Ltd.

PMO Nihonbashi
Muromachi *4(Chuo-ku, Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
construction), 1 floor
below ground, 9 floors
above ground

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Fudosan
Kaigan Building(Minato-ku,
Tokyo)

OfficeSteel-framed
construction, 8 floors
above ground

5,262

February
1992

1,307

1,308

3,465

2

4,775

Nomura Real
EstateBuilding Co.,Ltd.

Toshiba
Manseibashi
Building *5(Chiyoda-ku,
Tokyo)

OfficeReinforced concrete
construction, 1 floor
below ground, 9 floors
above ground

5,319

September
1961

681

166

3,551

0

3,718

Nomura Real
EstateBuilding Co.,Ltd.

Toshiba Sendai
Building *4 *5(Aoba-ku,
Sendai-shi,
Miyagi)

Hotel

Steel-framed
construction (partiallyreinforced concrete
construction), 2 floors
below ground, 11
floors above ground

16,179April 1975

1,731

636

2,817

10

3,464

Nomura Real
EstateBuilding Co.,
Ltd.

Nomura Real
Estate NishiShinjuku Kyodo
Building *4(Shinjuku-ku,
Tokyo)

OfficeSteel-framed
construction (partiallysteel-framed
reinforced concrete
and reinforced
concrete construction),
1 floor below ground, 8
floors above ground

6,716

October 1993

1,249

755

2,700

3

3,458

Notes: 1. “Building” represents building accounts, “land” represents land and leasehold interests in land accounts and “others” represents structures; machinery and equipment;
tools, furniture and fixtures; vehicles; and leased asset accounts. “Total” represents the sum of leasehold interests in land accounts and property, plant and equipment
excluding construction in progress accounts.
2. Includes the trust beneficial right.
3. Land area is the equity conversion areas.
4. Both the total floor area and land area are the equity conversion areas.
5. Land area includes leased land.
6. Land area is the site area for the entire redevelopment project.
7. Total floor area represents the exclusive element of a unit ownership building. Also, land area is multiplied by our ownership ratio.
8. Size of Construction or Details of Facility, etc. represents the retail facilities portion of unit ownership building.

2)

Fitness clubCompany
Name

Property Name
(Location)

Nomura Real
Estate Life &Sports Co.,Ltd.

MEGALOSSouka and other37 facilities(Souka-shi,
Saitama andothers)Major Use

Fitness clubSize of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Completion
or [Time of
Acquisition]

Land
Area (m2)Reinforced concrete
construction, 3 floors,
1 other building andfitness club

15,321

June 2002

15,430Book Value (Millions of yen)
Facility¥7,649

Land

¥—

Other

¥899

Total

¥8,549Notes: 1. “Building” represents building accounts, “land” represents land and leasehold interests in land accounts and “others” represents structures; machinery and equipment;
tools, furniture and fixtures; vehicles; and leased asset accounts. “Total” represents the sum of leasehold interests in land accounts and property, plant and equipment
excluding construction in progress accounts.
2. “Total floor area” represents the total owned area of MEGALOS Kashiwa, MEGALOS Chikusa and MEGALOS Saginuma. “Land area” represents the leased land area ofthese facilities. “Size of construction or details of facility, etc.” and “Completion or [time of acquisition]” are in reference to MEGALOS Kashiwa.

In addition to the table above, the main subleased buildings leased by the Group in the Commercial Real Estate Business Unit are as
follows.
Company Name

Property Name (Location)

Rentable Area (m2)

Nomura Real Estate Development Co., Ltd.

Across Shin Osaka (Yodogawa-ku, Osaka-shi, Osaka)

17,298

Nomura Real Estate Development Co., Ltd.

AKS Building (Chiyoda-ku, Tokyo)

7,516

(2)

Other
CompanyName

127 Charing
Cross Road
Limited

Property Name
(Location)
127-133 Charing
Cross Road
(London, UK)

Major Use
OfficeSize of Construction or
Details of Facility, etc.

Total Floor
Area (m2)Reinforced concrete
construction, 1 floor
below ground, 4 floors
above ground

4,672

Completion
or [Time of
Acquisition][February
2021]

Land
Area (m2)1,244Book Value (Millions of yen)
Building¥2,029Land¥7,093

Other
¥—

Total
¥9,123

Facilities Establishment, Removal and Others
As of March 31, 2022, the following facilities are scheduled to be established or renovated. There was no major expansion or removal of
facilities.

Nomura Real Estate Holdings, Inc. 8 Financial Report 2022

(1)Establishment of major facilities
Planned Aggregate
Investment(Millions of yen)Company
Name

Property Name
(Location)

Business
Unit

Nomura Real
Estate Building
Co., Ltd.

Shibaura ProjectSouth Tower (Stower)(Minato-ku, Tokyo)

Nomura Real
EstateDevelopment
Co., Ltd.

Nihonbashi 1chome NakaDistrict Urban Area
Redevelopment
Project(Chuo-ku, Tokyo)

Commercial
Real Estate

Nomura Real
EstateDevelopment
Co., Ltd.

Nomura Real
EstateTameikesanno
Building Project(Minato-ku, Tokyo)

Commercial
Real Estate(2)

Commercial
Real Estate

Major
Use

Size of Construction or
Details of Facility, etc.

OfficeSteel-framed construction(partially steel-framed
reinforced concrete andreinforced concrete
construction), 3 floors
below ground, 43 floors
above ground

Schedule

Total

AmountPaid

Sources offunding

Start

Completion¥96,100¥15,392

Borrowings
and own
funds

Fiscal year
ended March
31, 2022

Fiscal year
ending March
31, 2025

OfficeSteel-framed construction(partially reinforced
concrete and steel-framed
reinforced concrete
construction), 2 floors
below ground, 51 floors
above ground, 2 otherbuildings

75,40917,187

Borrowings
and own
funds

Fiscal year
ended March
31, 2022

Fiscal year
ending March
31, 2026

OfficeSteel-framed construction(partially wooden
construction), 1 floor below
ground, 9 floors above
ground

8,060

5,222

Borrowings
and own
funds

Fiscal year
Fiscal year
ending March ending March
31, 2023
31, 2024

Renovation of major facility
Planned Aggregate Investment(Millions of yen)Company Name

Nomura Real Estate
Development Co., Ltd.

Property Name (Location)—

Business Unit
Commercial Real Estate

Total

Amount Paid

¥6,388¥—

Note: Refers to renovation of major facilities of several existing properties owned by Nomura Real Estate Co., Ltd.

Nomura Real Estate Holdings, Inc. 9 Financial Report 2022

Construction Period

Note

April 2022 – March 2023

Construction
for facility
renovation

Basic Policy Concerning Profit Distribution and Dividends
As for dividend, the Company set the year-end dividend for the fiscal year ended March 31, 2022 at ¥55.0 per share, which is an increaseof ¥7.5 from forecasted. Combined with the second quarter-end dividend, the annual dividend per share is ¥97.5. As a result, total return
ratio during this fiscal year, which included the acquisition of treasury shares, is 44.3%.
Under the Mid- to Long-term Business Plan, which was disclosed in April 2022, the Company set a policy of the total return ratio to be 4050% in Phase 1 (from fiscal year ending March 31, 2023 to fiscal year ending March 31, 2025). In regard to the dividend for the next fiscal
year, the Company intends to set both the second quarter-end and the year-end dividend for the fiscal year ending March 31, 2023 at¥55.0 per share, therefore the annual dividend per share is expected to be ¥110.0.
Risks Affecting the Business of Nomura Real Estate Group(1) Basic policy for risk management
The Group regards risk management as a “business management methodology that aims to improve corporate value by managing all risks
related to the attainment of corporate group organizational and business objectives in an integrated and unified manner while controllingrisk within the company’s risk tolerance limits.” With the aim of ensuring the soundness of business management through proper
management and operation of risks, the Group has formulated the Risk Management Regulations.
As its basic policy, the Group assures business continuity and stable development by implementing risk management and classifies
its main risks into four categories, namely “A: Investment risk,” “B: External risk,” “C: Disaster risk,” “D: Internal risk.” Among them, risks
listed below are regarded as important risks that should be managed, and performing effective and efficient risk management is provided
according to the scale and characteristics of each risk.
<Important risks needing to be managed among main risks>
O Risks that could have a major impact on Group management
O Risks that could have a major impact on society
O Risk of litigation or other serious problems
O Other major risks that should be managed by the Group(2) Risk management structure
To discuss various risks related to group management, the Company has prescribed the Management Committee as the integrated risk
management body and operates a system to regularly monitor, evaluate and analyze the state of main risks, provide necessary guidance
and advice to each business unit and Group company while regularly reporting details to the Board of Directors. The Management
Committee, which is the integrated management body, directly monitors “A: Investment risk” and “B: External risk,” while the Risk
Management Committee, established as a subordinate organization of the Management Committee, conducts regular monitoring,evaluation and analysis of “C: Disaster risk” and “D: Internal risk” and these committees discuss basic response policies regarding risk
prevention, response when risk occurs, and prevention of recurrence after risk occurs. Moreover, we established the Group Risk Meeting
consisting of directors and executive officers of each Group company appointed by the Chair of the Risk Management Committee to sharerisk information and response policies within the Group.
With regard to risk management, each business unit manager will supervise the risk management of their affiliated business unit andreport on the situation to the Management Committee or Risk Management Committee as necessary. Concurrently, the president of eachgroup company (the head of each division at Nomura Real Estate Development Co., Ltd.) are responsible for reporting risk management
matters to the business unit manager in a timely and appropriate manner.
In addition, we have defined the organization in charge of business in each group company as the “first line” of risk management, theorganization in charge of corporate operations at the Company and each group company as the “second line” of risk management, and theorganization in charge of internal audits at the Company and each group company as the “third line” of risk management. With each “line”
playing its role in risk management, for example, the “second line” and “third line” of the Company providing support, guidance andcooperation to the “second line” and “third line” of the group companies, respectively, we have established efficient organizations andprocesses that support governance and risk management.
In the event of a major problem requiring urgency, the chair of the Risk Management Committee decides the basic policies such ascountermeasures upon consulting with the executives responsible for relevant departments in accordance with the Risk Management
Regulations and reports to the President and Executive Officer (Group CEO) and provides instructions such as response in accordancewith the basic policy.

Nomura Real Estate Holdings, Inc. 10 Financial Report 2022

Risk Management System (conceptual diagram)

Board of Directors
Management Committee*3*2

Risk Management
Committee*2*3

X business unit
general manager*1

X business
unit
Company a*3

Y business unit
general manager*1*1

X business
unit
Company b*1

Y business
unit
Company c

Y business
unit
Company d*1. Each company reports on risks to the business unit manager of the affiliated business unit and the business unit manager provides guidance and monitors the risk management ofeach company.
*2. The head of each business unit reports to the Management Committee on “A: Investment risk” and “B: External risk” that pertains to their own department and the Management
Committee provides guidance and monitors the risk management associated with “A: Investment risk” and “B: External risk” of each department.
*3. The head of each business unit reports to the Risk Management Committee on “C: Disaster risk” and “D: Internal risk” that pertains to their own department and the Risk
Management Committee provides guidance and monitors the risk management associated with “C: Disaster risk” and “D: Internal risk” of each business unit. Furthermore, theRisk Management Committee reports to the Management Committee on the details of its own deliberations and on the status of each business unit’s risk management associatedwith “C: Disaster risk” and “D: Internal risk.”

Three Lines Model (conceptual diagram)
The Company

Line 2*2*1Each Group company

Line 3

*2

*2

*3
*4

Line 1*5Line 2

Line 3*1. The Company’s second defense line provides appropriate support and guidance for each group company’s second defense line with respect to overall risk management based on
the Group’s management policy and strategic objectives and monitors each group company’s second-line activities.
*2. The Company’s third line monitors activities of Group companies by providing appropriate guidance to and cooperating with the third lines of each Group company. Concurrently,
it audits matters relating to risk management of the second line of the Company, or of the first and second lines of each Group company when necessary, and verifies theireffectiveness and efficiency and provides necessary advice.
*3. The first line of each Group company recognizes, evaluates, and controls risks associated with each business, establishes and operates a system that responds to risks, andcarries out appropriate risk-taking.
*4. The second line of each group company supports the risk management of the first line of its own company while monitoring to verify whether the risk management of the first line
is being properly undertaken.
*5. The third line of each Group company audits matters related to risk management of each department of the first line and second line of its own company, verifies the effectivenessand efficiency, and provides necessary advice.

Nomura Real Estate Holdings, Inc. 11 Financial Report 2022

(3) Details of main risks
The following are the main risks that the management recognizes that have the potential to significantly influence the financial position,business performance and cash flows of the Company and the consolidated subsidiaries. From these main risks the Company has
selected risks requiring particular attention during the fiscal year ending March 31, 2023 taking into consideration factors such as themagnitude of the potential impact on its businesses and the external environment.
Matters concerning the future and the recognition of risks in the text are as determined by the Group as of the end of this fiscal year.
The following, however, does not include all risks. Risks that are unpredictable or deemed insignificant at this point in time may impact on
businesses in the future.

(Major risks)
Risk category(A) Investment risk(B) External risk

Definition

Main risk items

Risks related to individual investments(real estate investments, strategic
investments (M&A), etc.)
Risks related to external factors
influencing business

1) Risks associated with real estate investment
2) Risks associated with strategic investment (M&A) and new
businesses
3) Risks associated with market changes
4) Risks generated by changes in economic conditions5) Risks generated by changes in political/social conditions/systems(law, tax systems, accounting, others)6) Risks due to lagging behind in innovation and changes in the
structure of society related to the business7) Risks related to disasters (earthquakes, typhoons, floods, tsunamis,
volcanic eruptions, major fires, epidemics of infectious disease
epidemics, etc.) that have a major impact on customers andbusiness continuity8) Risks related to the violation of laws and ordinances
9) Risks related to quality defects
10) Risks related to occurrence of information system crisis
11) Risks from inadequate responses to matters related to humanresources
12) Risks related to occurrence of fraud and negligence(C) Disaster risk

Risks generated by disasters that havea large impact on customers andbusiness continuity(D) Internal risk

Operational risks occurring at theCompany and each group company(Risks requiring particular attention)(A) Investment risk(B) External risk(C) Disaster risk
(D) Internal risk

• Risk that the Company will not earn the expected profits due to an increase in construction expenses caused bysoaring materials prices• Risk of profitability deterioration and delays in anticipated project schedule occurring in projects with long-term
project timeframes and large investment budgets, such as redevelopment projects• Risk of inability to secure the expected business volume and slowing profit growth due to intensifying
competition for land acquisition, etc.
• Risks arising from the impacts of prices for housing sales and property sales due to changes in Japan’s realestate market and financial conditions• Risk arising from deterioration in profitability and delay in profit recovery timing in overseas business due todeterioration in economies and real estate markets in countries overseas• Risk of a reduced competitive advantage of the Company’s businesses due to delays in response to changes inlifestyles and values, response to accelerating advances in digital technology, and response to sustainability,
etc.
• Risk of inability to continue business due to increasingly severe natural disasters such as earthquakes,
typhoons, and torrential rains• Risk due to inadequate design and construction in the real estate development business• Risk due to delay in preparing personnel systems to secure diverse human resources and enable humanresources to continue playing an active role
• Risk due to information leak by cyberattack, impact on business continuity, and incurrence and expansion ofdamage, etc.

Nomura Real Estate Holdings, Inc. 12 Financial Report 2022

(The details of each major risk item and main initiatives)
Risk item

Risk category

1. Risk associatedwith real estate
investment(A)
In the real estate investment andInvestment development business carried out by theriskGroup, there are cases in which businessdoes not proceed as planned due to suchfactors as unexpected soil pollution, delays in
obtaining permits and licenses, the need for
additional construction, and an increase inconstruction expenses. In such cases, theoccurrence of changes in the initial businessschedule, delays in completion andrecognition timing, and additional costs, andprofitability deterioration associated with anincrease in construction costs could affect theGroup’s financial position and businessperformance.

Risk details

2. Risk associatedwith strategic
investment(M&A) and new
businesses(A)
The Group positions M&A as one of its
Investment growth strategies and aims to enhance therisk
corporate value of the Group byimplementing M&A for which synergies canbe expected. However, the inability toachieve profit growth from the M&A target
companies and synergies expected could
affect the Group’s financial position andbusiness performance.
The Group goes beyond the existing
business domains to explore opportunities innew businesses as well as examines andmakes investments in new asset types.
However, the inability to execute businessaccording to original plans or achievesynergies with group companies could affect
the Group’s financial position and businessperformance.

Main initiatives

Decisions on the real estate investment/development
business are made at the meetings such as theManagement Committee or the Board of Directors of
the Company or of group companies upon identifying,
analyzing and evaluating risk in advance andconsidering risk taking or risk avoidance policies. In
particular, for soil pollution the Company implements ahistorical survey and a pollution survey in advance andif pollution is confirmed the Company will cease theacquisition of the land or have the pollution removed by
an external specialist. In addition, regarding the risk ofan increase in construction expenses, the Company
includes a certain amount of additional costs when
acquiring land for development and carries out othermeasures.
Following the acquisition of the land for development,
the department in charge of the business ascertains
the risk of any schedule delay and the state ofconstruction costs. Should an especially an important
event occur, the department shall report this to theManagement Committee or the Board of Directors of
the Company or group companies when necessary
and respond to the issues.
In executing M&A, the main investment targets andinvestment purposes shall be defined. At the sametime, factors such as the synergies with the Group’s
existing businesses, business plans, financial details,
and contract-related matters shall be carefully
examined and considered and M&A shall be
implemented when it is determined that this willcontribute to the Group’s business results in the future.
In addition, after the M&A is executed, the Board of
Directors or the Management Committee shallregularly monitor the status of the integration process
between the target company and the Group,
management issues, and response policies.
In considering new businesses, the Company
carefully investigates and examines the synergies with
the Group’s existing businesses as well as businessplans. A new business is commenced when judgement
is made that it will contribute to the businessperformance of the Group in the future. After entering a
new business, its performance is regularly monitored,
and if deemed necessary to make modifications or are-start, it will put to deliberation by the Board of
Directors or Management Committee.

Nomura Real Estate Holdings, Inc. 13 Financial Report 2022

Risk item

Risk category

3. Risk associatedwith market
changes(B)
Externalrisk

4. Risk caused bychanges in
economic
conditions(B)
Externalrisk

Risk details

Main initiatives

As the Group carries out a variety of realestate-related businesses, changes in
economic conditions or the occurrence ofdisasters could lead to changes in thebusiness environment or market conditions
and have an impact on the Group’s financial
position and business performance.
In the Residential Development Business
Unit, a decline in customer desire to purchaseleads to a decrease in sales prices and anincrease in inventories and this could result ina situation whereby expected profits underthe business plan cannot be secured andvaluation losses on inventories held arerecorded. In Commercial Real EstateBusiness Unit, a decline in rent levels, a risein vacancy rates and increase in the CAP
rate that leads to a decline in asset pricecould result in a situation whereby expected
profits under the business plan cannot be
secured and valuation losses on inventories
and non-current assets held are recorded. In
addition, a decline in demand in the realestate transaction market, a share pricedecline in the REIT market, a decline indemand for investment funds, and a rise inconstruction cost could have an impact on
the Group’s financial position and businessperformance.
Domestic and overseas economic
recessions, an increase in funding costs due
to rising market interest rates, fluctuations inyen-denominated investments and recoveredamounts, or amounts of foreign currency
assets and liabilities on the consolidated
financial statements due to fluctuations in
exchange rates could have an impact on theGroup’s financial position and businessperformance.

The Group regularly updates its awareness of theexternal environment of each business and works toascertain impacts on business results, monitor the
progress of business and improve precision. Whenmaking investment decisions in the real estate
investment/development business, our basic policy is
to understand and forecast the current and future
market conditions and confirm past market trends andcurb to a certain extent the impact from changes inmarket conditions. Moreover, we formulate an
investment budget upon undertaking risk assessment
to ensure a certain level of soundness regarding ourfinancial position even if market conditions change
rapidly.

Regarding changes in economic conditions, the Groupregularly updates its awareness of the external
environment and works to ascertain impacts on
business results. In our funding through borrowings,
we respond to the risk of rises in short-term interest
rates by using mainly long-term and fixed-rateborrowings. For foreign exchange fluctuation risk, wehave established a foreign exchange hedging policythat considers the types of businesses we undertake
overseas and we operate in accordance with thispolicy.

Nomura Real Estate Holdings, Inc. 14 Financial Report 2022

Risk item

Risk category

5. Risk caused bychanges inpolitical/ social
conditions/systems (law,tax system,
accounting,others)(B)
Externalrisk

Risk details

Main initiatives

As each of the Group’s businesses aredeveloped in Japan and overseas, there is
the possibility of the occurrence of rising
construction expenses, business schedule
delays, etc. due to disruptions in the foreignexchange market, energy market and supply
chain in the event of changes to the politicaland social situation, such as the emergenceof geopolitical risks, such as Russia’s
invasion of Ukraine. Overseas in particular,
there are risks specific to each country’s
political and social situations. In case there
are changes in political and social situations
that have been unexpected at the beginningof conducting business in each country, they
may lead to obstacles to promote business,
which could have an impact on the Group’s
financial position and business performance.
Various types of laws and regulations inJapan and overseas are applicable to each of
the Group’s businesses. For example, in
addition to the Real Estate Brokerage Act
and the Building Standards Act, other realestate related laws and regulations as well as
the Financial Instruments and Exchange Act
are applicable in Japan, and overseas, there
are risks specific to each country’s laws andregulations that differ from those in Japan. In
case there are changes in these laws andregulations or other laws and regulations
become applicable due to an expansion in
the business scope in the future, they could
have an impact on the Group’s financial
position and business performance as aresult of the occurrence of new obligations
and expenses.
Also, in the case of changes to various
tax systems and accounting systems inJapan and overseas that have an impact on
the real estate business, the resulting
increased costs for acquiring, holding, andselling assets, a decline in customer desire topurchase, a shift in corporate facility strategy,
and revision of investment plans could havean impact on the Group’s financial position
and business performance.

We collect and analyze information on trends inpolitical and social situations, various laws andregulations, tax systems and accounting systems inJapan and overseas from industry groups, external
experts, business partners, and consider responses at
each of the Company’s respective organizations on the“second line” and discuss those matters expected tohave a significant impact at the Board of Directors or
the Management Committee depending on the details.
In overseas business in particular, we seek theknowledge of external experts regarding the forecast of
the future political and social situations as well as
applicable laws, regulations and tax laws when startinga business overseas, and after starting a business weregularly confirm the state of changes to the politicaland social situations as well as important related laws
and regulations that have an impact on businessstrategy, revenue and expenditures, and progress incountries where we do business through the Overseas
Business Monitoring Committee, etc. In the case that
there are any changes, discussions are carried out at
the Board of Directors or the Management Committee
upon evaluating the impact and discussing response
policies.

Nomura Real Estate Holdings, Inc. 15 Financial Report 2022

Risk item

Risk category

6. Risk fromlagging behindinnovation andchanges in thesocial structure
related to thebusiness(B)
Externalrisk

Risk details

Main initiatives

Should technological innovation or the
emergence of innovative new participants ina variety of real estate-related businesses
that the Group engages in result in a largechange in the industrial structure or businessenvironment and the Company is late in
responding to changes in customer needs
accompanying changes in the social
structure, the Company’s competitive
advantage could decline and this could havean impact on the Group’s financial position
and business performance.
In addition, the Group uses land andother natural resources and energy when
conducting its business activities, andrecognizes that climate change is asignificant risk that could substantially impact
its business. The changing needs ofcustomers for real estate include increasing
customer demands for functions related tothe environment, energy saving, and disasterprevention due to the implementation andstrengthening of greenhouse gas reduction
regulations, etc. If the Company is late in
responding with technologies related to highenvironmental performance and energy
performance, the competitive advantage of
the Company’s products and services could
decline and this could have an impact on theGroup’s financial position and businessperformance.

In the midst of a changing business environment, theGroup has been creating new and highly unique value
for society and customers by leveraging its strengths,
such as real estate development capabilities based on
the “market-in” concept and a commitment to quality inurban development and real estate-related services. In
order to further enhance these strengths, we haveestablished the DX & Innovation Management Dept.,
which is responsible for research and development of
new business fields, planning, promotion, and support
for innovation creation, digital strategies, etc. We havealso established the “Business Idea Proposal System,”
which allows employees of Group companies topropose new businesses, products and services
beyond the boundaries of their daily work. At the sametime, through the Nomura Real Estate Group Awards,
an internal award system, we are working to create a
corporate culture that encourages the creation of value
through innovation and to strengthen collaboration
within the Group. In addition, through the provision of
corporate venture capital, the Company is collaboratingwith the startups that it has taken stakes in, which
possess innovative technologies and services, and has
begun to provide services that utilize these digitaltechnologies.
The Group has formulated the Sustainability
Policy as its vision for 2050 and identified five priority
issues that especially need to be addressed by 2030:“Diversity & inclusion,” “Human rights,”“Decarbonization,” “Biodiversity,” and “Circular design.”
In order to respond to decarbonization and climatechange, the Group has acquired SBT certification (35%
reduction in CO2 emissions by 2030 compared to
FY2020/3 levels) and has joined various international
initiatives, including RE100 (goal of switching to 100%
renewable energy for electricity used in businessactivities of the entire Group by 2050). As a response
to risks regarding climate change, the Group
ascertains future scenarios, such as those in theIntergovernmental Panel on Climate Change (IPCC)
Fifth Assessment Report, and the Sustainability
Committee, chaired by the President and Executive
Officer (Group CEO), deliberates strategies andpolicies for the entire Group, analyzes the risks andopportunities regarding events assumed in eachscenario, evaluates and monitors the target, etc. of
reducing greenhouse gas emissions for the Group, andperiodically reports to the Board of Directors. The
Group is working to reduce CO2 emissions in its
business through promotion of energy saving, lowcarbon, and renewable energy. The main initiatives
include improving energy-saving performance inbuildings being developed, conducting research anddevelopment for promoting use of low-carbon materials
and installing solar power plants on the roofs ofproperties the Group is developing. In particular, theShibaura Project is planned to achieve carbon
neutrality and was selected by the Ministry of Land,
Infrastructure, Transport and Tourism for the 2021
Leading Project for Sustainable Buildings (CO2Reduction Type).
Furthermore, the Group endorsed therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), and the disclosure offour items (Governance/Strategies/Risk
Management/Metrics and Targets), which TCFD
recommends to be disclosed in relation to climatechange, has been made. For details, please refer tothe special topic page on the Company’s sustainability
website.
https://www.nomura-rehd.co.jp/english/sustainability/special/

Nomura Real Estate Holdings, Inc. 16 Financial Report 2022

Risk item

7. Risk caused bydisasters(earthquakes,
typhoons,
floods,tsunamis,
volcanic
eruptions, major
fires, epidemics
of infectious
diseases, etc.)that have amajor impact on
customers andbusiness
continuity

Risk category(C)
Disasterrisk

Risk details

Main initiatives

During the fiscal year ended March 31, 2022, theBoard of Directors resolved to introduce a non-financial
indicator related to officer compensation (set a target
value for Building Energy-efficiency Index (BEI) for
properties developed and supplied by the Group) and
the Group is working to raise awareness among theGroup’s officers and employees regarding climatechange and sustainability initiatives.
Large earthquakes, storms and flood
The Group recognizes that the frequency of disasters
damage, and infectious disease epidemics
has increased, and this is an important social issue.
could make it difficult for the Company and its Based on discussions with government and disasterbusiness partners to undertake normal
preparedness experts, we are working to ensure thebusiness and there could be cases of thesafety and security in the event a disaster occurs. We
occurrence of the risk of loss of earnings and engage in disaster preparedness activities to ensure
the risk of delay of earnings. Risk of loss ofthat, if a disaster occurs, its impact is minimized andearnings include decreases in leasing
the Group and its employees are able to continue
revenue and operational revenue due to thebusiness and their normal lives. We have formulated asuspension of operations or restrictions on
business continuity plan (BCP) and action plan andfacilities that the Group owns and operates
engage in initiatives related to the Group’s businessand a decrease in income due to the loss ofcontinuity.
business opportunities.
In preparing for an earthquake occurring directly
Moreover, risk of delay of earnings
under the Tokyo Metropolitan Area, we haveinclude changes in sales recording period
established a BCP and an emergency chain ofdue to the suspension of operations forcommand, assigned duties to ensure businesshousing sales and changes in the timing ofcontinuity, and established a system to minimize thesales recording/completion due to theimpact of disasters. Furthermore, once per year we
extension of construction periods owing tohold Disaster Task Force Establishment Drills tosuch factors as suspension of construction by ensure the responses prescribed by the BCP arecontractors and these could have an impact
effective, insuring the safety of executives andon the Group’s business results and financial employees and establishing a chain of command
position. In addition, natural disasters such as system, so that we are prepared for restoring businessearthquakes, fires, storms and floods, orafter an emergency.
sudden accidents, could result in damage or
In addition, the Company has established aloss of real estate owned, operated orchecklist of actions to be taken when a typhoon’s
managed by the Group and this could havelandfall is forecast and formulates an action plan for
an impact on the Group’s financial position
preparations and initial responses when a disasterand business performance.
occurs overseas.
Regarding earthquakes, fires, storms, floods, andother sudden accidents, we have set up regulations forresponses to torrential rains and flooding, formulated adisaster response manual, and created a disaster
preparedness guidebook for distribution to residents,
management associations, tenants, and facility users
in the properties we own to ensure their safety andbring them peace of mind when a disaster occurs.
Moreover, regarding the spread of infectious
diseases, particularly COVID-19, the Group selected
core businesses for business continuity during
epidemics, and formulated an action manual andcommon rules regarding infection prevention, etc.
These were communicated internally to all officers andemployees, and a Group-wide reporting and instruction
system has been created for cases of an infected
person, or a person who has been in close contact withan infected person. In addition, the Group has been
carrying out various initiatives related to infection
prevention measures, including workplace COVID-19
vaccinations for the Group’s officers, employees, etc.

Nomura Real Estate Holdings, Inc. 17 Financial Report 2022

Risk item

Risk category

8. Risk ofviolations oflaws andordinances(D)Internalrisk

9. Risk of quality
defect(D)
Internalrisk

10. Risk ofoccurrence of
information
system crisis(D)Internalrisk

Risk details

In the real estate brokerage business, themain business of the Group, there are cases
when the Company receives administrative
sanctions from government authorities due toa violation of laws such as an error in
explaining important matters to customers,
misrepresentation of facts, or non-notificationof disadvantageous matters. Also, in the casethe Group violates the Building Standards
Act, the Financial Instruments and ExchangeAct, Companies Act, Act on the Protection of
Personal Information, Act on Prohibition ofPrivate Monopolization and Maintenance ofFair Trade, and other laws related to theGroup’s business, the loss of the Group’s
credibility and the imposition of fines could
have an impact on the Group’s businessperformance.

Main initiatives

The Company has formulated the Nomura Real EstateGroup Code of Action that defines the basic code ofactions for executives and employees, including
complying with laws and regulations and acting withhigher ethical standards, and prescribed internal rules.
We are making efforts to familiarize employees with
the Code of Action and internal rules through periodic
training, promote education on an ongoing basis andfacilitate enlightenment. For primary laws such as theReal Estate Brokerage Act, we formulate a businesswork flow specific to each law to ensure legal
compliance, ensure a thorough awareness throughtraining and on-the-job training (OJT), and implement
regular voluntary inspections for the status ofcompliance.
In addition, regarding the inappropriate
entertainment of foreign public officials and other civil
servants, the Company has established “regulations toprevent the bribery of foreign public official and othercivil servants” and “bribery prevention guidelines.” The
Company is implementing regular training forexecutives, employees and overseas local hires
related to overseas businesses.
In case of deficiencies such as design andIn the real estate development business, to secure
construction defects in the Group’s real
quality in design and construction upon placing an
estate development business or in the caseorder for the design and construction work of a buildingof a management deficiency in the properties with a third party who has a certain level of creditability
for leasing or under management, the loss of and technical capabilities, the Group prescribed thetrust in the Group, unexpected costs andDesign and Construction Standards (structure,
delays in development plans and operation
construction, equipment, and electrical) and the Quality
plans could have an impact on the Group’s
Manuals and ensure thorough compliance from thebusiness performance.
parties with which we order design and construction
work while also checking the state of construction andcarrying out quality inspections as the ordering party.
Regarding leased and managed properties, we will
prepare business standard documents related toproperty management and safety and temporary
construction guidelines for repair work as we undertake
business. We will also provide property insurance fordamages in the unlikely event of a deficiency or
accident.
To achieve sustainable growth as the
As we actively promote initiatives that utilize
diversity of products and services provided to information systems and ICT, we believe that ensuring
customers grows, the Group believes it must information security will be of unprecedented
further improve productivity and work
importance and we have strengthened measures toefficiency and is actively utilizing the benefits restrict access via Internet connections as well asof the Internet (the Cloud) (speed, flexibility,
measures for log management and the loss ofcost) for establishing an ICT environment and information devices and are progressing with thepromoting DX to achieve theseestablishment of an ICT environment in preparation forimprovements. In addition, the Group handles cyberattacks and information leaks by conducting
a large volume of personal information insystem security diagnosis by the third party andeach business due to necessity in executing
introducing a behavior detection system for virus
business.
scanning and abnormal movements.
For this reason, in the unlikely case the
The Company is also striving to comply with
Company’s system cannot be used normally relevant laws and regulations for personal information
or in case personal information is leaked toand to ensure proper handling of this information.
the outside due to unexpected circumstances Moreover, with the aim of realizing organizedsuch as cyberattacks and unauthorizedmanagement of information and maintaining andaccess, the loss of credibility and theimproving security levels within the Group, we haveresulting decrease in sales and damage
prescribed the Information Security Regulations andcompensation costs could have an impact on the Information Handling Guidelines, regularly provide
the Company’s business performance.
education and enlightenment to our employees, protect
the rights and interests of our customers and ensure
the stable operation of an ICT environment within theGroup. In addition, the Company has cyber insurance
in preparation for an unlikely accident such as an
information leakage.

Nomura Real Estate Holdings, Inc. 18 Financial Report 2022

Risk item

Risk category

11. Risk of(D)inadequate
Internal
response toriskmatters related
to human
resources

12. Risk ofoccurrence offraud andnegligence(D)Internalrisk

Risk details

Main initiatives

We regard human resources as our largest
asset and the source of new value creation
for the sustainable growth of the Group.
Therefore, in the event that the working hours
of Group executives and employees are notproperly ascertained and long working hours
damage the health of executives andemployees and we receive administrative
sanctions from government authorities
because our personnel system and its
operation do not comply with labor standards
and related laws and regulations, the outflow
of the Group’s human resources, the loss oftrust, and the imposition of fines could havean impact on the Group’s businessperformance.
There is a risk that delays in theestablishment of a labor environment thattakes in a diverse range of human resources(employees that work short hours mainly due
to childcare and nursing, sexual minorities,
people with disabilities, seniors, foreign
nationals and others) may result in the Group
being unable to secure the necessary
personnel, or the inability of secured
personnel to continue working, leading to a
decline in corporate competitiveness.
In terms of personnel and labor
management at overseas bases, there is riskof administrative sanctions by government
authorities for introducing or operating asystem that violates local labor laws andcustoms, the risk of losing know-how due tothe retirement of local employees, and a riskthat the health of employees will be damaged
due to the lack of systems to provide
appropriate support for living in a foreigncountry.
Within the Group, risk could occur due tofraud perpetuated by executives andemployees, information leakage due toimproper management of information, andoperational negligence. In the case this risk
emerges, the loss of credibility and theresulting decrease in sales and damage
compensation costs could have an impact on
the Company’s business performance.

The Group prescribes working with vigor and achieving
wellness as its action guideline. The Group aims toprovide wellness management so that all its executives
and employees can carry out their work energeticallyand in good physical and mental health, which leads tosustainable corporate growth.
Along with introducing various systems, including
recommendations to take paid leave, the promotion of
teleworking, and a program for taking time off orworking shorter hours for childcare and nursing and tobuild a labor environment conducive for a diverse
workforce, we are working to improve the level ofunderstanding related to diversity among executives
and employees through regular training sessions. In
order to properly grasp working hours, we haveintroduced an attendance management system tomanage it, and especially for long working hours, weregularly monitor the situation. Furthermore, thecompliance of our personnel system and its operationis regularly verified by outside experts to prevent the
emergence of risks.
Moreover, overseas there are local laws, cultures,and customs. Therefore, we utilize the knowledge ofexternal experts to build personnel/labor systems,
establish consultation desks for staff stationed
overseas, and provide services to help the staffs find,and provide support for visits to, medical institutions.
From the fiscal year ended March 31, 2022, theGroup established the Wellness and D&I Management
Committee, which is chaired by the President andExecutive Officer (Group CEO), in order to integrally
promote wellness, work-style reforms and the ensuringof diverse human resources, and newly established the
D&I Management Sect. in the Group Human
Resources Development Dept. as the dedicatedorganization for the promotion of diversity & inclusion.

Group executives and employees comply with laws
and regulations as well as with the internal rules andregulations established by each company of Nomura
Real Estate Group. Furthermore, we have establishedthe Nomura Real Estate Group Code of Ethics with theaim of acting in accordance with even higher ethicalstandards, and we continuously provide education andtraining sessions to executives and employees.
In addition, the Company has established asystem to enhance the effectiveness of complianceactivities in each workplace by assigning a compliancepromotion officer to each department, office andbranch of the Company and Group companies.
Furthermore, with the “Nomura Real Estate Group Risk
Helpline,” an internal whistleblowing system shared by
all Group companies, the Company has set up internaland external contact points for reporting wrongdoing
and seeking advice on how to proceed, and has
developed and implemented systems based on the
Whistleblower Protection Act.

Nomura Real Estate Holdings, Inc. 19 Financial Report 2022

Consolidated Balance Sheets
Nomura Real Estate Holdings, Inc. and its subsidiaries
March 31, 2021 and 2022
(Millions of yen)

Assets

As of March 31, 2021

Current Assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract assets
Real estate for sale (Note 6)
Real estate for sale in process
Land held for development
Equity investments (Note 6,13)
Other
Allowance for doubtful accounts
Total current assets
Non-Current Assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land (Note 6)
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities (Notes 6,13,14)
Leasehold and guarantee deposits (Note 12)
Deferred tax assets (Note 18)
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets¥

71,625
19,635—336,308
326,165
212,727
28,77048,104(14)

As of March 31, 2022¥

69,038—22,025371,504
333,860
188,41733,871
108,106(20)

1,043,321

1,126,802

361,895(176,168)

375,232(175,069)

185,727

200,163

506,097
34,988(12,589)

497,599
41,746(13,123)

22,39928,623

714,224

726,386

18,46819,93386,42827,65523,0978,111(0)101,155
30,04727,3228,858(0)145,292

167,383

877,985

913,703¥1,921,306¥2,040,506

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 20 Financial Report 2022

(Millions of yen)

Liabilities

As of March 31, 2021

Current Liabilities
Notes and accounts payable - trade
Short-term borrowings (Note 26)
Current portion of bonds payable
Income taxes payable (Note 18)
Deposits received
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on business liquidation
Other
Total current liabilities¥

61,16287,00010,00018,57225,1408,599
455
1358,378

As of March 31, 2022¥

80,992
108,500
10,00022,29943,8579,934
549
881,838269,322357,980

160,000
751,500
58,85559,934
3,891
2,734
16,216
12,501150,000
754,235
59,301
58,207
3,902
3,567
16,644
15,267

1,065,633

1,061,127

1,334,956

1,419,107

Shareholders’ Equity (Note 10)
Share capital
Capital surplus
Retained earnings
Treasury shares

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

118,604
114,993382,382(11,864)

Total shareholders’ equity

Non-Current Liabilities
Bonds payable (Note 13,26)
Long-term borrowings (Note 13,26)
Leasehold and guarantee deposits received
Deferred tax liabilities (Note 18)
Deferred tax liabilities for land revaluation (Note 6)
Provision for share awards
Retirement benefit liability (Note 16)
Other
Total non-current liabilities
Total Liabilities
Net Assets

571,948

604,115

Accumulated Other Comprehensive Income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land (Note 6)
Foreign currency translation adjustment
Remeasurements of defined benefit plans (Note 16)

7,827(1,342)
7,869(995)(1,979)

7,337
(332)
7,868
1,254
(1,481)

Total accumulated other comprehensive income

11,37914,646

1,406
1,616

927
1,708

Share acquisition rights
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

586,350

621,398¥1,921,306¥2,040,506

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 21 Financial Report 2022

Consolidated Statements of Income
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2021 and 2022
(Millions of yen)
Fiscal year ended
March 31, 2021

Operating Revenue
Operating Costs¥

580,660
397,602

Fiscal year ended
March 31, 2022¥

645,049
439,737

Operating Gross Profit

183,057

205,312Selling, General and Administrative Expenses

106,724

114,101

Operating Profit

76,333

91,210

95
63
—
96
123
—
368

70
97
895
19
25
269
468

747

1,846

9,015
510
1,590

8,825
—
1,673

11,115

10,49965,96582,557

Non-Operating Income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Gain on sale of non-current assets
Gain on reversal of share acquisition rights
Subsidy for cooperation income
Other
Total non-operating income
Non-Operating Expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary Profit
Extraordinary Income
Subsidies for employment adjustment

565—

Total extraordinary income

565—

Extraordinary Losses
Impairment losses (Note 2,7)
Loss on COVID-19
Loss on building reconstruction

1,285
1,715
708

568
281
655

Total extraordinary losses

3,710

1,505

Profit before Income Taxes

62,82081,052

Income Taxes-Current
Income Taxes-Deferred

24,752(4,159)32,301(6,629)Total Income Taxes (Note 18)

20,59325,671

Profit42,22755,380

Profit Attributable to Non-Controlling Interests
Profit Attributable to Owners of Parent

28

68¥42,198¥55,312

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 22 Financial Report 2022

Consolidated Statements of Comprehensive Income
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2021 and 2022
(Millions of yen)

ProfitOther Comprehensive Income (Note 8)
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

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

¥42,227¥55,380

4,910(2,386)
8
(531)
1,970
821

(487)
1,009
(8)
1,611
498
809

4,793

3,434

¥47,020¥58,814¥47,030(10)¥58,572242(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 23 Financial Report 2022

Consolidated Statements of Changes in Net Assets
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2021 and 2022
(Millions of yen)
Shareholders’ Equity

Share capital

Balance at March 31, 2020

CapitalsurplusRetainedearnings¥117,822 ¥111,065 ¥342,081

Accumulated other comprehensive income

TreasurysharesValuation
Total
difference onshareholders’ available-forequity
sale
securities¥(27,339) ¥543,630

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation
definedcomprehenadjustment benefit plans
sive income

Deferred
gains orlosses onhedges

Revaluation
reserve forland¥2,915¥1,044¥7,860¥(1,322)¥(3,950)

Shareacquisitionrights

Noncontrollinginterests

Total net
assets¥6,547¥1,850¥13,091¥565,120

Changes during period
Issuance of new shares

221

221

—

—

442

—

—

—

—

—

—

—

—

442

Dividends of surplus——(14,682)—(14,682)

—

—

—

—

—

—

—

—

(14,682)

Profit attributable toowners of parent——

42,198—42,198

—

—

—

—

—

—

—

—

42,198Purchase of treasury
shares———(2,798)(2,798)

—

—

—

—

—

—

—

—

(2,798)

Disposal of treasury shares

—

—

—

11

11

—

—

—

—

—

—

—

—

11

Transfer from retained
earnings to capital surplus

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Cancellation of treasury
shares

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

3,146

—

—

3,146

—

—

—

—

—

—

—

—

3,146

Reversal of revaluation
reserve for land

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Net changes in items otherthan shareholders’ equity

—

—

—

—

—

4,911

(2,386)

8

327

1,970

4,831

(444)

(11,475)(7,087)

221

3,367

27,516(2,786)28,3184,911(2,386)

8

327

1,970

4,831

(444)

(11,475)

21,230¥(30,125) ¥571,948¥7,827¥(1,342)¥7,869¥(995)¥(1,979)¥11,379¥1,406¥1,616¥586,350

Change in ownershipinterest of parent due totransactions with noncontrolling interests

Total changes during period
Balance at March 31, 2021

¥118,043 ¥114,433 ¥369,597

Changes during period
Issuance of new shares

560

560

—

—

1,120

—

—

—

—

—

—

—

—

1,120

Dividends of surplus——(15,515)—(15,515)

—

—

—

—

—

—

—

—

(15,515)

Profit attributable toowners of parent——

55,312—55,312

—

—

—

—

—

—

—

—

55,312

Purchase of treasury
shares———(8,957)(8,957)

—

—

—

—

—

—

—

—

(8,957)

Disposal of treasury shares

—

—

—

214

214

—

—

—

—

—

—

—

—

214

Transfer from retained
earnings to capital surplus—

27,004(27,004)

—

—

—

—

—

—

—

—

—

—

—

Cancellation of treasury
shares—(27,004)—

27,004

—

—

—

—

—

—

—

—

—

—

Change in ownershipinterest of parent due totransactions with noncontrolling interests

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Reversal of revaluation
reserve for land

—

—

(7)

—

(7)

—

—

—

—

—

—

—

—

(7)

Net changes in items otherthan shareholders’ equity

—

—

—

—

—

(489)

1,009

(0)

2,249

498

3,267

(478)

92

2,880

560

560

12,785

18,26032,167

(489)

1,009

(0)

2,249

498

3,267

(478)

92

35,047¥(11,864) ¥604,115¥7,337¥(332)¥7,868¥1,254¥(1,481)¥14,646¥927¥1,708¥621,398

Total changes during period
Balance at March 31, 2022

¥118,604 ¥114,993 ¥382,382

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 24 Financial Report 2022

Consolidated Statements of Cash Flows
Nomura Real Estate Holdings, Inc. and its subsidiaries
Years ended March 31, 2021 and 2022
(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

¥62,820
20,021
1,285
510
(5)
(6)
(2,488)
(159)
9,015
5,708
(103,858)
2,213(33,024)(10,422)
19,549¥81,052
19,089
568
(895)
6
(5)
426
(167)
8,825
(2,690)
1,092(5,077)
20,23318,714(9,592)

Subtotal(28,840)

131,580

Interest and dividends received
Interest paid
Income taxes paid

284
(9,407)(25,540)

427(8,386)(70,828)

Net cash provided by (used in) operating activities(63,504)

52,793(19,827)150(8,334)(45,665)
18,445(1,734)2,255(6,401)5,192
129(9,958)38(89)(36,618)
237(2,489)1,552(5,728)
5,536
1,242

(55,789)(46,277)

9,000
(183)
149,500(50,000)
105
49,737(20,000)
11(2,803)(14,682)(83)(8,226)

8,500
(104)
71,722(56,053)667—(10,000)
248(8,982)(15,515)(97)(5)

112,376(9,619)Cash Flows from Operating Activities
Profit before income taxes
Depreciation
Impairment losses
Share of loss (profit) of entities accounted for using equity method
Increase (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

Cash Flows from Investing Activities
Purchase of investment securities
Proceeds from sales and liquidation of investment securities
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible 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 liabilities
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 scope of 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

(69)

273

(6,987)(2,831)

Cash and cash equivalents at beginning of period

77,611

70,624

Cash and cash equivalents at end of period¥70,624¥67,793

See notes to consolidated financial statements.

Nomura Real Estate Holdings, Inc. 25 Financial Report 2022

Notes to Consolidated Financial Statements
Nomura Real Estate Holdings, Inc. and its subsidiaries
March 31, 2021 and 2022

1.

Basis of Presentation of Consolidated Financial Statements
The accompanying consolidated financial statements of the Company and its subsidiaries (collectively, the “Group”) have been
prepared in accordance with the provisions set forth in the Financial Instruments and Exchange Act of Japan and its related
accounting regulations, and accounting principles generally accepted in Japan (“Japanese GAAP”), which are different in certain
respects as to the application and disclosure requirements of International Financial Reporting Standards.
The accompanying consolidated financial statements have been compiled from the consolidated financial statements of theCompany prepared in accordance with Japanese GAAP, and translated into English for the benefit of readers outside Japan. In
addition, the notes to the consolidated financial statements include information which may not be required under Japanese GAAP
but is presented herein as additional information.
(Significant Accounting Policies)
1. Matters related to the scope of consolidation(1) Number of consolidated subsidiaries
42 companies
Nomura Real Estate Consulting (Shanghai) is included in the scope of consolidation because it was newly established in
the fiscal year ended March 31, 2022, and Musashi Co., Ltd. is included in the scope of consolidation because the Company
newly acquired its shares in the fiscal year ended March 31, 2022.
Nomura Real Estate Consulting (Beijing) Co., Ltd. is excluded from the scope of consolidation due to the completion ofliquidation in the fiscal year ended March 31, 2022.
Nomura Real Estate Urban Net Co., Ltd. changed its corporate name to Nomura Real Estate Solutions Co., Ltd.
(2)

Names of major unconsolidated subsidiaries, etc.
Main non-consolidated subsidiaries
Minami-Azabu Development Co., Ltd.
(Reason for exclusion from the scope of consolidation)
Non-consolidated subsidiaries are excluded from the scope of consolidation because they are small and their combined total
assets, revenues, net profit (amount corresponding to the Company’s equity interest), retained earnings (amount corresponding
to the Company’s equity interest), etc., do not have a material impact on the consolidated financial statements.
2. Application of the equity method(1) Number of non-consolidated subsidiaries accounted for using the equity method
2 companies
Main company’s name: Minami-Azabu Development Co., Ltd.
(2)

Number of affiliated companies accounted for using the equity method
35 companies
Main company’s name: Ginza Parking Center Co., Ltd.
TOKYO GAS Nomura Real Estate Energy Co., Ltd. is included under affiliated companies accounted for using the equity
method because it was newly established in the fiscal year ended March 31, 2022. ORIGIN SUKHUMVIT SAILUAT COMPANY
LIMITED, ORIGIN RAMINTRA COMPANY LIMITED, PARK RATCHADA COMPANY LIMITED, ORIGIN RAMKHAMHAENGINTERCHANGE COMPANY LIMITED, KNIGHTSBRIDGE KASET INTERCHANGE COMPANY LIMITED, SO ORIGIN PHAHOL69 STATION COMPANY LIMITED and ORIGIN PLUG&PLAY SAMUTPRAKAN COMPANY LIMITED are included underaffiliated companies accounted for using the equity method because the Company newly acquired equity interests in thesecompanies in the fiscal year ended March 31, 2022.
In addition, ORIGIN SPHERE COMPANY LIMITED and ORIGIN RAMKHAMHAENG COMPANY LIMITED are excluded
from the scope of affiliated companies accounted for using the equity method because the Company sold its equity interests inthese companies in the fiscal year ended March 31, 2022. MCNR SY III Limited is excluded from the scope of affiliatedcompanies accounted for using the equity method due to the completion of liquidation in the fiscal year ended March 31, 2022.
3. Matters related to the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, the fiscal year of UNJ Properties LLC ends on December 31.
In preparing the consolidated financial statements, the Company uses financial statements of this consolidated subsidiarythat are based on a provisional closing of accounts on the consolidated closing date.
Of the consolidated subsidiaries, the fiscal years of the following companies end on December 31: NOMURA REAL ESTATEASIA PTE, LTD., NOMURA REAL ESTATE HONG KONG LIMITED, HCMC office investment Limited, LIM HOLDINGS LTD,
Lothbury Investment Management Group Limited and 12 other companies, Zen Plaza Investment Limited, ZEN PLAZA CO., LTD.,
NOMURA REAL ESTATE VIETNAM CO, LTD., NOMURA REAL ESTATE (THAILAND) CO., LTD., NOMURA REAL ESTATE UK
LIMITED, 127 Charing Cross Road Limited, and Nomura Real Estate Consulting (Shanghai). In addition, the fiscal year of
Midosuji Mirai Development LLC ends on February 28.
In preparing the consolidated financial statements, the financial statements of these companies as of their respective closing
dates are used.
However, necessary adjustments have been made in consolidation for significant transactions that occurred between theirrespective closing dates and the consolidated closing date.

Nomura Real Estate Holdings, Inc. 26 Financial Report 2022

4. Matters related to accounting policies(1) Valuation standards and methods for significant assets
1) Securities
Held-to-maturity debt securities
Held-to-maturity debt securities are stated at amortized cost by the straight-line method.
Available-for-sale securities
Securities, other than shares, etc. without market value
Securities, other than shares, etc. without market value, are stated at fair market value. (All valuation differences areprocessed by the direct net assets method, and the selling cost is calculated by the moving average method)
Shares, etc. without market value
Shares, etc. without market value are stated at cost by the moving-average method.
2) Derivatives
The market value method is adopted.
3) Inventories
Inventories are mainly stated at cost, determined by the specific identification cost method (the amounts of inventories in theaccompanying Consolidated Balance Sheets are computed based on the write-down method reflecting decreased
profitability).
(2) Depreciation method for significant depreciable assets
1) Property, plant and equipment (except for leased assets)
Depreciation of property, plant and equipment is computed mainly by the straight-line method.
Estimated useful lives used in the computation of depreciation are generally as follows:
Buildings and structures: 2 to 65 years
2) Intangible assets (except for leased assets)
Amortization of intangible assets is computed by the straight-line method.
Estimated useful life for costs of software is 5 years, which can be useful in the company.
3) Leased assets
Leased assets are depreciated using the straight-line method, assuming the lease period to be the useful life and the residual
value to be zero.
Finance leases, other than those that transfer ownership that started on or before March 31, 2008, are accounted for as
operating leases.
(3) Standards for recognition of material allowances
1) Allowance for doubtful accounts
In order to prepare for possible bad debt losses on notes and accounts receivable and loans, allowance for doubtful accounts
is provided at an amount calculated on the basis of a historical bad debt ratio for a certain reference period for normal claims,
plus an estimated uncollectible amount determined on the basis of individual assessments for specific claims with potential
losses.
2) Provision for bonuses
The estimated amount of payments attributable to the current fiscal year is recorded to allocate expenditures for bonuses paid
to employees.
3) Provision for bonuses for directors (and other officers)
The estimated amount of payments attributable to the current fiscal year is recorded to allocate expenditures for bonuses paid
to directors.
4) Provision for losses on business liquidation
The estimated amounts of losses occurring due to withdrawal from businesses are recorded.
5) Provision for share awards
The amount to be incurred estimated at the end of the current fiscal year is recorded to prepare for the issuance of shares of
the Company’s stock to directors and employees based on stock delivery regulations.
(4) Provision for retirement benefits
1) Period attribution method for expected retirement benefits
To calculate retirement benefit obligations, the estimated amount of retirement benefits attributable to the fiscal year isdetermined based on the benefit formula method.
2) Method for recording actuarial gains and losses and expenses for prior service costs
Prior service costs are amortized as incurred by the straight-line method over 10 years, which is within the average number ofremaining service years of the eligible employees.
Actuarial gains and losses are amortized in the following fiscal year in which the gain or loss is recognized by thestraight-line method mainly 10 years, which is within the average number of remaining service years of the eligible employees.
(5) Recognition of significant revenues and related costs
1) Accounting standard for revenue recognition
Details of the main performance obligations in the principal businesses related to the Group’s revenues from contracts withcustomers and the usual timing at which point the performance obligations are satisfied (the usual time at which revenues arerecognized) are as follows. In addition, the amount of consideration does not include any significant financing component.
i. Residential development business
The residential development business is mainly engaged in the development and sale of condominiums and detached
Nomura Real Estate Holdings, Inc. 27 Financial Report 2022

housing (housing sales business) and the development and sale of rental housings (sales of property development). For the
housing sales business and sales of property development, the Company is obligated to transfer the subject property basedon the real estate sales contract with the customer, and recognizes revenue at the time the customer obtains control of theproperty upon transfer. In the housing sales business, the Company generally receives a deposit when the contract isconcluded and receives payment of the balance at the time of transfer, and in the sales of property development, theCompany generally receives payment of the purchase price at the time of transfer.
ii. Commercial real estate business
The commercial real estate business is mainly engaged in the development, lease and sale of office buildings, retail facilities,
logistics facilities and other properties (sales of property development). For the sales of property development, the Company
is obligated to transfer the subject property based on the real estate sales contract with the customer, recognizes revenue atthe time the customer obtains control of the property upon transfer and generally receives payment of the purchase price atthe time of transfer. Real estate lease revenue is accounted for in accordance with Accounting Standard for Lease
Transactions (ASBJ Statement No. 13), and revenue is recognized over the lease term.
iii. Investment management business
The investment management business is mainly engaged in providing investment management services including REITs,
private funds and real estate securitization products. For this business, the Company is obligated to carry out fundmanagement, etc. based on the asset management agreement, etc. with the customer, and revenue is recognized over acertain period of time because control is conveyed to the customer as the service is provided. The revenue is calculated bymultiplying the total assets, etc. of the managed fund by the commission rate stipulated in the agreement, and payment isreceived within approximately three months from the time when the performance obligations are satisfied.
iv. Property brokerage & CRE business
The property brokerage & CRE business is mainly engaged in the real estate brokerage business. For this business, theCompany is obligated to carry out a series of operations based on the brokerage agreement with the customer, such as theperformance procedures from the work for concluding the real estate sales contract to the transfer of the subject property, andrecognizes revenue at the time of transfer of the property in the real estate sales contract concluded through brokerage. The
Company generally receives payment of half of the remuneration amount at the conclusion of the real estate sales contractconcluded through brokerage, and receives payment of the balance at the transfer of the subject property.
v. Property & facility management business
The property & facility management business is mainly engaged in the operation and management of condominiums andoffice buildings, as well as contracting for repair and tenant works associated with management. For this business, theCompany is obligated to carry out facility management and cleaning, building maintenance and repairs, etc. based on the realestate property management agreement, construction contract, etc. with the customer, and revenue is recognized over acertain period of time because control is conveyed to the customer as the service is provided.
However, for construction contracts for which the period from the commencement date of the transaction in the contract
to the date the performance obligation is expected to be fully satisfied is very short, revenue is not recognized over a certain
period of time. Instead, the Company judges that its performance obligation is satisfied at the time of transfer and recognizes
revenue at that time. For operation and management, payment is generally received within approximately one month from thetime when the performance obligations are satisfied, and for contracting, payment is generally received within approximately
three months from the time of transfer.
2) Accounting standards for advertising expenses
In the housing sales business, to appropriately match expenses and revenues, advertising expenses of selling expenses
incurred prior to delivery to customers are recorded as prepaid expenses and they are expensed in one lump at the time ofdelivery.
(6) Standard for translation of significant foreign-currency-denominated assets or liabilities into Japanese yen
All current and non-current accounts denominated in foreign currencies are translated into Japanese yen at the spot exchange
rates in effect on the consolidated balance sheet date. Differences arising from this translation are recognized as gain or loss.
The asset and liability accounts of the overseas subsidiaries and affiliates are translated into Japanese yen at theexchange rates prevailing on the respective balance sheet dates of the subsidiaries and affiliates and the revenue and expense
accounts are translated into Japanese yen at the average rates of exchange for the year.
(7) Significant hedge accounting method
1) Hedge accounting method
Deferred hedge accounting is adopted. In addition, exceptional treatment is applied when interest rate swaps meet theconditions for exceptional treatment, and allocation treatment is applied when currency swaps meet the requirements forallocation treatment.
2)

Hedging instruments and hedged items<Hedging instruments>
Interest rate swap contracts
Currency swaps and foreign exchange forward contracts<Hedged items>
Borrowings
Securities denominated in foreign currencies

3) Hedging policy
Hedging is used for interest rate fluctuation risk and foreign exchange fluctuation risk as prescribed by internal rules.
4) Evaluation of effectiveness
The Group evaluates hedge effectiveness by comparing changes in market fluctuations or in the cumulative cash flows of thehedged items with the corresponding changes in the hedging derivative instruments and using the ratio of the fluctuations.
However, the evaluation of effectiveness is omitted for the interest rate swaps for which exceptional treatment is applied.
(8) Amortization of goodwill
Goodwill is amortized using the straight-line method over a period of 5 to 20 years.
Nomura Real Estate Holdings, Inc. 28 Financial Report 2022

(9) Scope of funds in the Consolidated Statements of Cash Flows
In preparing the Consolidated Statements of Cash Flows, cash on hand, readily-available deposits and short-term, highly liquid
investments with a maturity of three months or less at the time of purchase and with an insignificant risk of market value
fluctuation are considered to be cash and cash equivalents.
(10) Other significant matters for preparing the consolidated financial statements
Accounting for non-deductible consumption taxes
Non-deductible consumption taxes related to assets are included in the acquisition cost and other consumption taxes are
expensed in the fiscal year as incurred.

2.

Significant Accounting Estimates
1. Valuation of inventories
Inventories held by the Group consist mainly of housing held for sale and commercial property held for sale.
(1)

Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2021 and 2022
(Millions of yen)
2021

Loss on valuation of inventories

2022

¥540

¥3,022(2) Other information that contributes to the understanding of users of consolidated financial statements
1) Housing held for salei. Calculation method
The Company calculates this by comparing the net realizable value of the housing held for sale with the book value thereof.
The net realizable value is based on the sale price, product cost, etc. determined in the business plan formulated at the timeof site acquisition, construction order, and start of sale. In addition to the above, the net realizable value is subject to change
depending on the progress of the business and sales.
ii. Key assumptions
The key assumptions used in the calculation of the net realizable value are the estimated sale price and the product cost, andthese are estimated based on the location, size, product marketability, actual transactions in the surrounding area, market
forecasts, and rents, occupancy rates, and cap rates based on past experience. With regard to the impact of the spread of
COVID-19, the Company has made the assumption that the infection will be controlled and the impact on the real estateleasing market and real estate investment market will be limited.
iii. Impact on consolidated financial statements of the following fiscal year
Estimated sale prices and product costs, which are key assumptions, are subject to uncertainty. The estimated sale prices
may differ from future results due to changes in the housing market and other factors, and estimates of product costs may
differ from future results due to the changes in the construction market, the occurrence of additional construction, schedule
delays, and other factors.
2) Commercial property held for salei. Calculation method
The Company performs calculations by comparing the net realizable value of commercial property held for sale with the bookvalue thereof. The net realizable value is based on the estimated sale price, product cost, etc. determined at the time of siteacquisition, construction order, start of leasing (tenant recruitment), and decision to sell. For commercial property held for sale
where there is concern about a decline in profitability due to the progress of tenant recruitment, etc., the estimated sale priceis based on the appraisal value of a real estate appraiser, etc.
ii. Key assumptions
The key assumptions used in the calculation of the net realizable value are the estimated sale price and the product cost, andthese are estimated based on the location, size, product marketability, actual transactions in the surrounding area, market
forecasts, and rents, occupancy rates, and cap rates based on past experience. With regard to the impact of the spread of
COVID-19, the Company has made the assumption that the infection will be contained without being prolonged and that the
impact on the real estate leasing market and real estate investment market will be limited.
iii. Impact on consolidated financial statements of the following fiscal year
Estimated sale prices and product costs, which are key assumptions, are subject to uncertainty. The estimated sale prices
may differ from future results due to changes in real estate leasing and real estate investment markets, and estimated productcosts may differ from future results due to the changes in the construction market, the occurrence of additional construction,schedule delays, and other factors.
2. Impairment of non-current assets
Non-current assets held by the Group mainly consist of office buildings, retail facilities, logistics facilities, hotels and other realestate (hereinafter “leasable real estate, etc.”) in Japan.
(1) Amount recorded in the consolidated financial statements for the fiscal years ended March 31, 2021 and 2022
(Millions of yen)
2021

Impairment losses¥1,2852022¥568(2) Other information that contributes to the understanding of users of consolidated financial statements
i. Calculation method
When an indication arises that the carrying amount of leasable real estate, etc. may not be recoverable, the Company
assesses and calculates the impairment losses on the relevant real estate.
(Indications of Impairment)
The Group considers the following events as indications of an impairment of leasable real estate, etc.
• Property that reports or is expected to report an operating loss for two consecutive terms
Nomura Real Estate Holdings, Inc. 29 Financial Report 2022

• Property in which any change that decreases its recoverable amount materially has occurred or is expected to occur• Property whose business environment has deteriorated or is expected to deteriorate significantly• Property whose market price has significantly declined (around 50% or more)(Recognition and Measurement of Impairment)
For properties that are judged to have signs of impairment, they are compared the book value with the total amount of
undiscounted future cash flows, and recognized that it is necessary to carry out impairment if the book value is larger. For
properties that are considered to be impaired, impairment losses are measured by reducing the book value to the recoverable
amount.
The recoverable amount is calculated based on the net realizable value or the value in use. Net realizable value is basedon the appraisal value of a real estate appraiser, etc. The value in use is calculated by discounting the future cash flows.
ii. Key assumptions
The key assumptions used in the calculation of undiscounted future cash flows and value in use are leasing revenues, leasing
costs, etc., and discount rates. These are estimated based on the property’s location, size, actual leasing transactions in thesurrounding area, market forecasts, historical rents, guest room rates, occupancy rates, and cap rates. With regard to theimpact of the COVID-19 pandemic, the Company has made the assumption that the infection will be controlled and not
prolonged and that the impact on leasable real estate, etc. will be limited.
iii. Impact on consolidated financial statements of the following fiscal year
Estimates of leasing revenues, leasing costs, etc., which are key assumptions, are subject to uncertainty, and future results
may differ from these estimates due to changes in the market conditions related to leasable real estate, etc. and other factors.

3.

Changes in Accounting Policies
1. Application of the Accounting Standard for Revenue Recognition
The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (“ASBJ”)
Statement No. 29, March 31, 2020), from the beginning of the fiscal year ended March 31, 2022. 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 thepromised goods or services is conveyed to the customer.
The Company has applied the Accounting Standard for Revenue Recognition transitionally, in accordance with the proviso inparagraph 84 of the standard. The cumulative effect of applying with the new accounting policy retrospectively prior to thebeginning of the fiscal year ended March 31, 2022, was reflected in retained earnings at the beginning of the fiscal year ended
March 31, 2022, and the Company has applied the new policy to the balance at the beginning of the fiscal year.
As a result, the impact of application of the Accounting Standard for Revenue Recognition on the consolidated financial
statements for the fiscal year ended March 31, 2022 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 fiscal year ended March 31, 2022. In accordance with the transitional treatment
stipulated in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have notbeen restated in accordance with the new method of presentation. Furthermore, notes to revenue recognition for the previous
fiscal year have not been disclosed in accordance with the transitional treatment stipulated in paragraph 89-3 of the AccountingStandard for Revenue Recognition.
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 fiscal year ended March 31, 2022. The Company has
prospectively applied new accounting policies based on the Accounting Standard for Fair Value Measurement, in accordance withthe transitional treatment stipulated in paragraph 19 of Accounting Standard for Fair Value Measurement and paragraph 44-2 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 fiscal year ended March 31, 2022
is immaterial.
Furthermore, we have decided to provide notes on breakdown by level of fair values of financial instruments and otherinformation in “13. Financial Instruments.” However, notes regarding the previous fiscal year have not been described as allowedby the transitional treatment stipulated in paragraph 7-4 of the “Implementation Guidance on Disclosures about Fair Value of
Financial Instruments” (ASBJ Guidance No. 19, July 4, 2019).

Nomura Real Estate Holdings, Inc. 30 Financial Report 2022

4.

Accounting Standards Published But Not Yet Applied
Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, June 17, 2021,
Accounting Standards Board of Japan)(1) Outline
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, AccountingStandards Board of Japan) was revised on June 17, 2021. When the Guidance was first announced on July 4, 2019, as thereview of “fair value measurement of investment trusts” was considered to take a certain period of time for the deliberation withrelated parties and as the notes on fair values of “investments in partnerships for which an amount equivalent to the interest is
carried on the balance sheet at net amount” required a certain review, the Guidance mentioned that those reviews would be
implemented for approximately one year after the announcement of the “Accounting Standard for Fair Value Measurement.”
Now those points for review were amended and the revised Guidance was announced.
(2) Scheduled date of adoption
The Company expects to adopt the implementation guidance effective from the beginning of the fiscal year ending March 31,
2023.
(3) Impact of the adoption of the Accounting Standard, etc.
The Company is currently evaluating the impact of the adoption of the “Implementation Guidance on Accounting Standard for
Fair Value Measurement” on its consolidated financial statements.

5.

Additional Information
Performance-based share-based compensation plan, etc. for Directors and Executive Officers
The Company and certain consolidated subsidiaries have introduced a performance-based share-based compensation plan (the“Plan”) as an incentive plan for Directors and Executive Officers (excluding Directors serving as Audit & Supervisory Committee
Members, External Directors and non-residents of Japan; “the Directors, etc.”). The Plan is a compensation scheme that functions
as an incentive for improving medium- to long-term corporate value of the Company and enables interests to be shared with theCompany’s shareholders by linking the compensation paid to the Directors, etc. to the Company’s share price. Specifically, itutilizes the mechanism of an executive compensation Board Incentive Plan trust (“BIP trust”). The Company’s shares are acquiredin advance by an executive compensation BIP trust, and the Company’s shares and an amount equivalent to the proceeds ofconverting the Company’s shares into cash are delivered and paid to the Directors, etc. according to their position, etc.
The shares of the Company remaining in the trust are recorded as treasury shares under net assets at the book value within
the trust. The book value and number of such treasury shares were ¥4,892 million and 2,091,166 shares, respectively, as ofMarch 31, 2022.
Furthermore, the estimated amount of the above executive compensation at the end of the fiscal year ended March 31, 2022
is recorded as provision for share awards.
ESOP Trust for Granting Stock
The Company and certain consolidated subsidiaries have introduced an “Employee Stock Ownership Plan trust (“ESOP trust”) for
Granting Stock” (the “Plan”) as an incentive plan for employees. The Plan is a compensation scheme that encourages employees
to execute their duties with an awareness of the Company’s share price because employees can enjoy economic benefits from anincrease in the price of the Company’s shares, and is expected to have the effect of increasing the motivation of employees andenable them to share interests with the Company’s shareholders. Specifically, it utilizes the mechanism of ESOP trust for granting
stock. The ESOP trust acquires the Company’s shares in advance and grants them to employees who satisfy certain
requirements.
The shares of the Company remaining in the trust are recorded as treasury shares under net assets at the book value within
the trust. The book value and number of such treasury shares were ¥1,077 million and 431,671 shares, respectively, as of March
31, 2022.
Furthermore, the estimated amount of the above compensation scheme at the end of the fiscal year ended March 31, 2022
is recorded as provision for share awards.

6.

Notes to Consolidated Balance Sheets
1. Amounts of receivables from contracts with customers and contract assets
Among notes and accounts receivable - trade, and contract assets, the amounts of receivables from contracts with customers andcontract assets are shown in 3. (1) Balances, etc. of contract assets and contract liabilities under 21. Revenue Recognition in theNotes to Consolidated Financial Statements.
2.

Matters related to non-consolidated subsidiaries and affiliates are as follows:(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)¥28,770¥46,296¥33,871¥61,636

Equity investments (shares, etc.)
Investment securities (shares, etc.)

3. Pledged assets and secured liabilities
Investment securities of ¥220 million are pledged as collateral for the debt of the investee.
4. Guaranteed liabilities
The Company has guaranteed borrowings from financial institutions, etc. by the following customers. The Company is obligated,along with the joint venture partners, to guarantee the debt of Origin One Sukhumvit 24 Co., Ltd. and Origin One Phromphong
Nomura Real Estate Holdings, Inc. 31 Financial Report 2022

Co., Ltd. in proportion to the percentage equity stake. The amounts of the Company’s guarantee obligations, which are based on
its percentage equity stakes in the two companies, are indicated in parentheses.
(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

Customers using housing loans
EBS Building Co-operators
Haneda Mirai Specific Purpose Company
Tokio Property Services Pte Ltd
Origin One Sukhumvit 24 Co., Ltd.

¥ 75,666
243
65
16
290
(142)
134
(65)

Customers using housing loans
EBS Building Co-operators
Haneda Mirai Specific Purpose Company

76,416¥ (76,199)

Total

Origin One Phromphong Co., Ltd.
Total

¥ 90,456
166
65
—
866
(424)
570
(279)

Origin One Sukhumvit 24 Co., Ltd.
Origin One Phromphong Co., Ltd.

92,124¥ (91,391)

5. Additional investment obligations, etc.
The Company, along with the joint venture partners, has additional investment obligations, etc. toward the following affiliatedcompanies in connection with their borrowings from financial institutions, and these obligations are based on the percentage
equity stake. The outstanding balances of borrowings by the affiliates are as follows, and the amounts of the Company’s
obligations, which are based on its percentage equity stakes, are indicated in parentheses.
(Millions of yen)
FY2021/3(as of March 31, 2021)

ORIGIN PARK T1 COMPANY LIMITEDORIGIN VERTICAL COMPANY LIMITED
Origin One Thonglor Co., Ltd.
PARK ORIGIN RATCHATHEWI COMPANY
LIMITEDPARK ORIGIN PRARAM 4 COMPANY
LIMITED

Total

FY2022/3(as of March 31, 2022)¥ 8,881(4,352)
107
(52)
2,088
(1,023)
1,697
(831)
2,768
(1,356)—

ORIGIN PARK T1 COMPANY LIMITED¥ 12,740(6,242)—

Origin One Thonglor Co., Ltd.
PARK ORIGIN RATCHATHEWI COMPANY
LIMITEDPARK ORIGIN PRARAM 4 COMPANY
LIMITEDORIGIN SUKHUMVIT SAILUAT COMPANY
LIMITED—ORIGIN RAMINTRA COMPANY LIMITED—PARK RATCHADA COMPANY LIMITED—ORIGIN RAMKHAMHAENG INTERCHANGE
COMPANY LIMITED

15,543¥ (7,616)

2,127(1,042)
2,110(1,034)
3,693(1,809)
553
(271)
722
(354)
1,207
(591)
514
(252)

Total

23,669¥ (11,598)

6.

In accordance with the Act on Revaluation of Land (Act No. 34 enacted on March 31, 1998), land used for businesspurposes was revalued.
The amount equivalent to the tax on the difference is recorded in the liabilities section as “Deferred tax liabilities related to land
revaluation,” and the amount deducted is recorded in the net assets section as “Revaluation reserve for land.”
Method of revaluation: Calculated using a method that makes reasonable adjustments to the assessed value of non-cur- rent
asset for property tax, as stipulated in Article 2, Item 3 of the Order for Enforcement of the Act on Revaluation of Land (Cabinet
Order No. 119 enacted on March 31, 1998)
Date of revaluation: March 31, 2002
7.

As a result of a review of the purposes of holding assets, the following amounts have been reclassified.
(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)¥56,798¥—¥17,694¥2,361

From non-current assets to real estate for sale
From non-current assets to land held for development

Nomura Real Estate Holdings, Inc. 32 Financial Report 2022

7.

Notes to Consolidated Statements of Income
1. Amounts of revenue from contracts with customers
Operating revenue does not differentiate revenue from contracts with customers and revenue other than those. The amounts ofrevenue from contracts with customers are shown in 1. Information on disaggregation of revenue from contracts with customers
under 21. Revenue Recognition in the Notes to Consolidated Financial Statements.
2.

Figures for end-of-term inventory reflect reductions in carrying value due to declines in profitability, and thefollowing losses on valuation of inventories are included in the cost of sales:(Millions of yen)
2021

2022

¥540

3.

¥3,022Major components and amounts of selling, general and administrative expenses are as follows:(Millions of yen)
2021

Advertising expenses
Employee salaries and allowances
Transfer of provision for bonuses
Transfer of provision for bonuses for directors (and other officers)
Retirement benefit expenses
Transfer of provision for allowance for doubtful accounts

4.

2022

¥15,460
36,987
7,388
455
3,002
¥
5

¥15,836
39,060
8,626
549
3,034
¥
13

Research and development expenses included in selling, general and administrative expenses and operating costs
are as follows:(Millions of yen)
2021

¥34

2022

¥65

5. Impairment loss
The Group recorded an impairment loss on the following asset group:
FY2021/3 (From April 1, 2020 to March 31, 2021)
Main purpose of use

Stores and leased assets
Other(Total: 8 locations)Type

Buildings
Land
Other tangible non-current assets

Location

Sagamihara-shi, Kanagawa, etc.

The Group has grouped its assets into the smallest units that generate cash flows that are largely independent of the cash flowsof other assets or asset groups. The head office building and other buildings are considered to be common assets.
As a result, during the fiscal year ended March 31, 2021, the carrying values of eight asset groups that were scheduled to be
used for other purposes or be sold or for which income from operating activities had been continuously negative were reduced totheir recover- able amounts. The amount of the reduction was recorded as an impairment loss (¥1,285 million) under
extraordinary losses, and comprised ¥998 million on buildings, ¥18 million on land, and ¥269 million on other assets.
The recoverable amounts of these asset groups are measured based on the net selling price or the value in use, and the net
selling price is the expected selling price. Furthermore, the value in use is assessed as zero because the future cash flow is
expected to be negative.
FY2022/3 (From April 1, 2021 to March 31, 2022)
Main purpose of use

Stores and leased assets
Other(Total: 17 locations)Type

Buildings
Land
Other tangible non-current assets

Location

Saitama-shi, Saitama, etc.

The Group has grouped its assets into the smallest units that generate cash flows that are largely independent of the cash flowsof other assets or asset groups. The head office building and other buildings are considered to be common assets.
As a result, in the fiscal year ended March 31, 2022, the carrying values of 17 asset groups that are scheduled to be used forother purposes or be sold or for which income from operating activities has been continuously negative were reduced to theirrecover- able amounts. The amount of the reduction was recorded as an impairment loss (¥568 million) under extraordinary
losses, and comprised ¥448 million on buildings, ¥116 million on land, and ¥3 million on other assets.
The recoverable amounts of these asset groups are measured based on the net selling price or the value in use, and the net
selling price is the appraisal value of a real estate appraiser, etc. Furthermore, the value in use is assessed as zero because thefuture cash flow is expected to be negative.
6. Loss due to COVID-19
The main component of the loss due to COVID-19 was fixed costs such as personnel expenses and land lease fees related tofitness clubs and other facilities that closed temporarily during the pandemic.

Nomura Real Estate Holdings, Inc. 33 Financial Report 2022

8.

Consolidated Statements of Comprehensive Income
1.

The amount of recycling and amount of income tax effects associated with other comprehensive income(Millions of yen)
2021

Valuation difference on available-for-sale securities:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effect
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effect
Deferred gains or losses on hedges
Revaluation reserve for land:
Income tax effectForeign currency translation adjustment:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effectForeign currency translation adjustment
Remeasurements of defined benefit plans:
Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effectRemeasurements of defined benefit plans
Share of other comprehensive income of affiliates accounted for using the equity method:Amount recognized during the year
Amount of recycling
Before income tax effect
Income tax effect
Share of other comprehensive income of affiliates accounted for using the equity method
Total other comprehensive income

Nomura Real Estate Holdings, Inc. 34 Financial Report 2022

2022

¥6,853224¥(674)(34)

7,078(2,167)

(708)
221

4,910

(487)

(3,439)
—

1,422
33

(3,439)1,053(2,386)

1,456
(446)
1,009

8

(8)

(531)
—

1,620
(8)

(531)
—

1,611
—

(531)

1,611

2,157
681
2,838
(868)
1,970

(10)
729
718
(219)
498

1,184
—

1,166
0

1,184
(362)
821

1,167
(357)
809

¥4,793¥3,434

9.

Consolidated Statements of Changes in Net Assets
FY2021/3 (From April 1, 2020 to March 31, 2021)
1.

Shares outstanding and treasury shares
Number of shares
as of April 1, 2020
(Thousands of shares)

Increase(Thousands of shares)

Number of shares
as of March 31, 2021
(Thousands of shares)

Decrease(Thousands of shares)

Shares issued
Common stock ¹

192,875

223—

193,099

Total

192,875

223—

193,099

Treasury shares
Common stock 2, 3, 4

11,3671,128

512,490Total

11,3671,128

512,490Notes: 1. The increase of 223,000 outstanding shares of common stock was due to the exercise of stock options.
2. The number of treasury shares in common stock includes the shares held by the BIP Trust and the ESOP Trust (1,962,000 shares as of March 31, 2021).
3. The increase of 1,128,000 treasury shares in common stock was due to the purchase of treasury shares by resolution by the Board of Directors.
4. The decrease of 5,000 treasury shares in common stock was due to the delivery and sale of the shares by the BIP Trust and the ESOP Trust.
5. At a meeting of the Board of Directors held on January 28, 2021, the Company resolved to cancel treasury shares pursuant to Article 178 of the Companies Act.
Details of the portion of this treasury shares not yet cancelled as of March 31, 2021 are as follows:
Carrying value: ¥25,803 million
Type of shares: Common stock
No. of shares: 10,528,000 shares
Note that all of the above shares as well as the treasury shares acquired between April 1 and April 26, 2021 have been cancelled as of May 31, 2021.
Total no. of shares cancelled: 10,980,000 shares

2.

Share acquisition rights and treasury share acquisition rights
Number of shares to be issued (in thousands)

Company

Description

Type of shares to beissuedAs of April 1, 2020——

Acquisition
Parent company rights as stock
options

Increase

Decrease—

As of March 31, 2021——

Balance as of March
31, 2021 (Millions of
yen)

1,406

3. Dividends(1) Dividends paid
Type of shares

Total dividends(Millions of yen)

Dividends per share(Yen)

Record date

Effective dateMeeting of the Board of
Directors on May 1, 2020

Common stock

7,339

40.00

March 31, 2020

June 9, 2020

Meeting of the Board of
Directors on October 27, 2020

Common stock

7,343

40.00

Resolution

September 30, 2020 December 1, 2020

Notes: 1. The total amount of dividends resolved at the meeting of the Board of Directors held on May 1, 2020 includes dividends distributed of ¥78 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.
2. The total amount of dividends resolved at the meeting of the Board of Directors held on October 27, 2020 includes dividends distributed of ¥78 million pertaining
to shares of the Company stock held by the BIP Trust and the ESOP Trust.

(2)

Dividends for which the record date was in the year ended March 31, 2021 and the effective date is in the year
ended March 31, 2022

Resolution
Meeting of the Board of
Directors on April 27, 2021

Type of shares

Common stock

Total dividends(Millions of yen)

7,759

Source of dividends

Retainedearnings

Dividends per share(Yen)

Record date

Effective date

42.50

March 31, 2021

June 4, 2021

Note: The total amount of dividends resolved at the meeting of the Board of Directors held on April 27, 2021 includes dividends distributed of ¥83 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.

Nomura Real Estate Holdings, Inc. 35 Financial Report 2022

FY2022/3 (From April 1, 2021 to March 31, 2022)
1.

Shares outstanding and treasury shares
Number of shares
as of April 1, 2021
(Thousands of shares)

Increase(Thousands of shares)

Number of shares
as of March 31, 2022
(Thousands of shares)

Decrease(Thousands of shares)

Shares issued
Common stock ¹

193,099

485

10,980182,604

Total

193,099

485

10,980182,604

Treasury shares
Common stock 2, 3, 4

12,4903,311

11,097

4,704

Total

12,4903,311

11,097

4,704

Notes: 1. The increase of 485,000 outstanding shares of common stock was due to the exercise of stock options. The decrease of 10,980,000 outstanding shares ofcommon stock was due to the cancellation of treasury shares (cancellation date: May 31, 2021).
2. The number of treasury shares in common stock includes the shares held by the BIP Trust and the ESOP Trust (2,522,000 shares as of March 31, 2022).
3. The increase of 3,311,000 treasury shares in common stock was due to the increase of 2,633,000 shares acquired upon a resolution by the Board of Directors,
the purchase of 678,000 treasury shares by the BIP Trust and the ESOP Trust, and the purchase of 0 thousand shares related to the purchase of shares of lessthan one share unit.
4. The decrease of 11,097,000 treasury shares in common stock was due to the cancellation of treasury shares of 10,980,000 shares (cancellation date: May 31,2021) and the delivery and sale of 117,000 shares of the Company stock by the BIP Trust and the ESOP Trust.

2.

Share acquisition rights and treasury share acquisition rights
Number of shares to be issued (in thousands)

Company

Description

Type of shares to beissuedAs of April 1, 2021——

Acquisition
Parent company rights as stock
options

Increase

Decrease—

Balance as of March
31, 2022 (Millions of
As of March 31, 2022
yen)

—

—

927

3. Dividends(1) Dividends paid
Type of shares

Total dividends(Millions of yen)

Dividends per share(Yen)

Record date

Effective dateMeeting of the Board of
Directors on April 27, 2021

Common stock

7,759

42.50

March 31, 2021

June 4, 2021

Meeting of the Board of
Directors on October 28, 2021

Common stock

7,756

42.50

Resolution

September 30, 2021 December 1, 2021

Notes: 1. The total amount of dividends resolved at the meeting of the Board of Directors held on April 27, 2021 includes dividends distributed of ¥83 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.
2. The total amount of dividends resolved at the meeting of the Board of Directors held on October 28, 2021 includes dividends distributed of ¥107 million
pertaining to shares of the Company stock held by the BIP Trust and the ESOP Trust.

(2)

Dividends for which the record date was in the year ended March 31, 2022 and the effective date is in the year
ending March 31, 2023

Resolution
Meeting of the Board of
Directors on April 26, 2022

Type of shares

Common stock

Total dividends(Millions of yen)

9,923

Source of dividends

Retainedearnings

Dividends per share(Yen)

Record date

Effective date

55.00

March 31, 2022

June 6, 2022

Note: The total amount of dividends resolved at the meeting of the Board of Directors held on April 26, 2022 includes dividends distributed of ¥138 million pertaining toshares of the Company stock held by the BIP Trust and the ESOP Trust.

10. Shareholders’ Equity
Under the Companies Act of Japan (the “Act”), all funds obtained through the issuance of common stock must be treated ascommon stock and, by resolution of the board of directors, an amount equivalent to less than half of those funds may beappropriated to the capital reserve (a component of capital surplus).
The Act provides that an amount equal to 10% of the amount to be distributed as distributions of capital surplus (other thanthe capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the share capital account.
As of March 31, 2022, the Group’s capital reserve amounted to ¥114,993 million, and no legal reserve was recorded.

11. Supplementary Cash Flow Information
A reconciliation of cash and deposits in the Consolidated Balance Sheets and cash and cash equivalents in the Consolidated
Statements of Cash Flows is as follows:(Millions of yen)
2021

2022

Cash and deposits
Time deposits with maturities of more than three months¥71,625(1,000)¥69,038(1,245)

Cash and cash equivalents¥70,624¥67,793

Nomura Real Estate Holdings, Inc. 36 Financial Report 2022

12. Leases
Lessees
1. Finance leases
The note has been omitted due to the lack of materiality.
2.

Operating leases
Future lease payments under non-cancellable leases of operating lease transactions(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

Due within 1 year
Due after 1 year

¥3,99014,699¥4,273
17,929

Total¥18,689¥22,203

Lessors
1. Finance leases
The note has been omitted due to the lack of materiality.
2.

Operating leases
Future lease receipts under non-cancellable leases of operating lease transactions(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

Due within 1 year
Due after 1 year

¥30,062
78,214¥27,462
79,016

Total¥108,276¥106,478

13. Financial Instruments
1. Matters concerning financial instruments(1) Policies on financial instruments
It is the policy of the Group to limit its fund management to safe and highly liquid deposits while raising funds primarily throughborrowings from financial institutions and the issuance of corporate bonds. Derivatives are utilized for hedging against the risks
described below not for speculative purposes.
(2) Details of financial instruments and risks
Equity investments and investment securities primarily consist of shares, investment units and others held for the purpose ofbusiness promotion, all of which are exposed to market price fluctuations and issuer credit risk. In some derivative instruments,
including currency swaps, forward exchange contracts are used to hedge risks from exchange rate fluctuations on securities inforeign currencies. Interest rate swaps are used to hedge risks arising from fluctuations in interest rates on long-termborrowings.
Derivative transactions are interest rate swap transactions for the purpose of hedging against the risk of fluctuations ininterest payments related to borrowings, currency swap transactions for the purpose of hedging against the risk of fluctuations inforeign currencies related to foreign currency-denominated securities, and foreign exchange contract transactions. Regarding
hedging instruments and hedging targets related to hedge instruments, hedging items, and methods for evaluating theeffectiveness of hedging, see Note 1. “Basis of Presentation of Consolidated Financial Statements” “4. Matters related toaccounting policies (7) Significant hedge accounting method.”(3) Policies and systems for risk management
The Company regularly checks the fair value of equity investments and investment securities, as well as the financial positionsof their issuers.
The Finance Department conducts execution of derivative transactions and risk management based on the risk
management policies and operational plan determined by the Director in charge of Finance. The Finance Department also
reports the status of transactions and risk information to the Director on a regular basis. The consolidated subsidiaries conduct
execution of derivative transactions and risk management in accordance with internal policies. The Company considers credit
risk associated with these transactions is limited because of the transactions being conducted only with highly credit-worthy
financial institutions.
Based on the reports from consolidated subsidiaries and all departments within the Group, the Finance Department of theCompany creates and updates cash flow plans in a timely manner, managing liquidity risk through such methods as ensuringthat a specific amount of on-hand liquidity is always available.
(4) Supplemental information on fair values
As various factors are incorporated into the fair value measurement of financial instruments, the resulting values may vary if
different assumptions are provided. The contract amount shown in Note 15. Derivative Financial Instruments does not represent
the market risk regarding the derivative transactions.

Nomura Real Estate Holdings, Inc. 37 Financial Report 2022

2. Fair values of financial instruments
The book values, fair values and differences of financial instruments are as follows.
Book value

Fair value

FY2021/3 (as of March 31, 2021)

Difference(Millions of yen)

(1) Investment securities3¥40,526¥40,542¥15

Total assets(1) Bonds payable4(2) Long-term borrowings5

40,526
170,000
807,500

40,542
171,631
823,714

15
1,631
16,214

Total liabilities

977,500

995,345

17,845Derivative transactions6¥(3,913)¥(3,913)¥—

Notes: 1. The figures for “Cash and deposits” and “Short-term borrowings” are omitted as the fair values approximate their book values because they are cash and settled
in a short period of time.
2. The following financial instruments for which there is no market value and for which the fair value is extremely difficult to determine are not included in (1)Investment securities. They are presented as included in unlisted shares recorded in equity investments.
The book value of the financial asset on the Consolidated Balance Sheets is as follows.
(Millions of yen)Classification

FY2021/3(as of March 31, 2021)

Unlisted shares¥75,821

3. Includes government bonds, etc. presented as lease and guarantee deposits on the Consolidated Balance Sheets.
4. Current portion of bonds payable is included in (1) Bonds payable.
5. Current portion of long-term borrowings is included in (2) Long-term borrowings.
6. For derivative transactions, stated values are the net amounts of receivables and payables arising from the transactions. Figures in parentheses are liability
amounts.
Book value

Fair value

FY2022/3 (as of March 31, 2022)

Difference(Millions of yen)

(1) Investment securities3¥39,745¥39,752¥7

Total assets(1) Bonds payable4(2) Long-term borrowings5

39,745160,000
823,235

39,752
161,380
833,133

7
1,380
9,897

Total liabilities

983,235

994,514

11,278Derivative transactions6¥(1,114)¥(1,114)¥—

Notes: 1. The figures for “Cash and deposits” and “Short-term borrowings” are omitted as the fair values approximate their book values because they are cash and settled
in a short period of time.
2. The book values in the Consolidated Balance Sheets for shares, etc. without market value and investments in partnerships are as follows, and are not includedin (1) Investment securities. Shares, etc. without market value are unlisted shares, etc. and are not subject to disclosure of their fair values based on paragraph
5 of Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19, July 4, 2019). Investments in partnerships areinvestments for business entities that are recorded in the Consolidated Balance Sheets as the net amount equivalent to equity, and are not subject to disclosureof their fair values based on paragraph 27 of Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, July 4,2019).
(Millions of yen)Classification

FY2022/3(as of March 31, 2022)

Shares, etc. without market value
Investments in partnerships¥61,790¥34,551

3. Includes government bonds presented as lease and guarantee deposits and preferred equity securities presented as equity investments, etc. on theConsolidated Balance Sheets.
4. Current portion of bonds payable is included in (1) Bonds payable.
5. Current portion of long-term borrowings is included in (2) Long-term borrowings.
6. For derivative transactions, stated values are the net amounts of receivables and payables arising from the transactions. Figures in parentheses are liability
amounts.

Notes: 1. Redemption schedule for financial assets with maturities(Millions of yen)Over 1 year but
within 5 years

Within 1 year

FY2021/3 (as of March 31, 2021)

Over 5 years but
within 10 years

Over 10 years

Cash and deposits
Securities and investment securities
Held-to-maturity debt securities(1) Government and municipal bonds, etc.
(2) Corporate bonds
Available-for-sale securities with maturities(1) Debt securities(2) Others¥71,625

¥—

¥—

¥—

58
—

765
—

325
—

—
—

3
—

—
—

—
—

—
—

Total

¥71,687

¥765

¥325

¥—

Nomura Real Estate Holdings, Inc. 38 Financial Report 2022

(Millions of yen)Over 1 year but
within 5 years

Within 1 year

FY2022/3 (as of March 31, 2022)

Over 5 years but
within 10 years

Over 10 years

Cash and deposits
Securities and investment securities
Held-to-maturity debt securities(1) Government and municipal bonds, etc.
(2) Corporate bonds
Available-for-sale securities with maturities(1) Debt securities(2) Others¥69,038

¥—

¥—

¥—

174
—

771
—

145
—

—
—

—
—

—
—

—
—

—
—

Total

¥69,212

¥771

¥145

¥—

2. Repayment schedule for bonds payable and long-term borrowings at March 31, 2021 and 2022
Within 1 year

1-2 years

2-3 years

FY2021/3 (as of March 31, 2021)

3-4 years

4-5 years

Over 5 years(Millions of yen)

Short-term borrowings
Bonds payable
Long-term borrowings¥31,000
10,00056,000¥—10,00069,000¥—20,00077,500¥—10,00064,000¥—30,000120,000¥—
90,000421,000

Total¥97,000¥79,000¥97,500¥74,000¥150,000¥511,000

4-5 years

Over 5 years

Within 1 year

1-2 years

2-3 years

FY2022/3 (as of March 31, 2022)

3-4 years(Millions of yen)

Short-term borrowings
Bonds payable
Long-term borrowings¥39,500
10,00069,000¥—20,00078,946¥—
10,00064,789¥—30,000120,000¥——
73,000¥—90,000417,500

Total¥118,500¥98,946¥74,789¥150,000¥73,000¥507,500

3. Breakdown by level of fair values of financial instruments
The fair values of financial instruments are classified into the following three levels depending on the observability andsignificance of inputs used in the fair value measurement.
Level 1 fair value:
Of the observable inputs in the fair value measurement, the fair value is measured based on quoted
prices in an active market for the subject asset or liability.
Level 2 fair value:

Of the observable inputs in the fair value measurement, the fair value is measured using inputs otherthan those used for Level 1.

Level 3 fair value:

The fair value is measured using inputs that cannot be observed.

When multiple inputs that have a significant effect on the fair value measurement are used and the inputs are within different
levels of the fair value hierarchy, the fair value is classified as the lowest level of those inputs in the fair value hierarchy.
(1)

Financial instruments with fair values whose book values are recorded on the Consolidated Balance Sheets

FY2022/3 (as of March 31, 2022)
Classification
Investment securities
Total assets
Derivative transactions
Total liabilities(2)(Millions of yen)
Fair value
Level 1
¥35,336
35,336—¥—

Level 2
¥1,066
1,066
1,114¥1,114

Level 3
¥335
335
—
¥—

Total
¥36,739
36,739
1,114¥1,114

Financial instruments with fair values whose book values are not recorded on the Consolidated Balance Sheets

FY2022/3 (as of March 31, 2022)
Classification
Bonds payable
Long-term borrowings
Total liabilities(Millions of yen)
Fair value
Level 1¥——¥—

Level 2
161,380
833,133
994,514

Level 3
¥—
—
¥—

Total
¥161,380
833,133¥994,514

Investment trusts for which the transitional measures stipulated in paragraph 26 of Implementation Guidance on AccountingStandard for Fair Value Measurement (ASBJ Guidance No. 31, July 4, 2019) were applied are not included in the above table.
The amount of the investment trusts in the Consolidated Balance Sheets is ¥3,013 million.
Notes:
1. Explanation of the valuation techniques and inputs used in the fair value measurement
Investment securities
For shares and investment units, fair values are determined mainly at the price quoted on an exchange. If transactions are
conducted in an active market, the fair value is classified as Level 1 fair value, and if transactions are not conducted in an active
market, the fair value is classified as Level 2 fair value.
The fair value of preferred equity securities is classified as Level 3 fair value because the fair value measurement uses
some inputs that cannot be observed.
Nomura Real Estate Holdings, Inc. 39 Financial Report 2022

Bonds payable
These items are issued mainly by the Company and the fair values are calculated based on the market prices. However,
because bonds issued by the Company are not traded on an active market, the fair value is classified as Level 2 fair value.
Long-term borrowings
For long-term borrowings, the fair value is calculated by discounting the total amount of principal and interest at an interest ratethat would be charged for similar new loans, and the fair value is classified as Level 2 fair value.
For floating-rate long-term borrowings that are subject to exceptional treatment of interest rate swaps, the fair value iscalculated by discounting the total amount of principal and interest that were treated as a part of the interest rate swaps at aninterest rate that would be charged for similar loans, and the fair value is classified as Level 2 fair value.
Derivatives
Because the fair value is determined based on the prices obtained from counterparty financial institutions, etc., the fair value isclassified as Level 2 fair value.
2. Information on Level 3 fair value financial assets and financial liabilities with fair values whose book values arerecorded on the Consolidated Balance Sheets
Information on Level 3 fair value financial instruments is omitted because they are immaterial.

Nomura Real Estate Holdings, Inc. 40 Financial Report 2022

14. Securities
1.

Held-to-maturity debt securities with fair value(Millions of yen)

FY2021/3 (as of March 31, 2021)

Book value

Fair value

Difference

Securities whose fair value exceeds book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other¥1,152——¥1,168
—
—

¥15
—
—

Subtotal

1,152

1,168

15

—
—
—

—
—
—

—
—
—

Securities whose fair value does not exceeds book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other
Subtotal
Total

—

—

—

¥1,152¥1,168¥15(Millions of yen)
FY2022/3 (as of March 31, 2022)

Book value

Fair value

Difference

Securities whose fair value exceeds book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other

¥966
—
—

¥974
—
—

¥7
—
—

Subtotal

966

974

7

Securities whose fair value does not exceeds book value:(1) Government and municipal bonds, etc.
(2) Bonds payable(3) Other

126
—
—

126
—
—

(0)
—
—

Subtotal
Total

2.

126

126

(0)

¥1,093¥1,100¥7

Available-for-sale securities with fair value(Millions of yen)

FY2021/3 (as of March 31, 2021)

Book value

Securities whose book value exceeds acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Securities whose book value does not exceed acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Total

Fair value

Difference¥1,250

¥632

¥618

—
—
—
38,006———27,381———
10,624

39,25628,013

11,242

113

125

(12)

—
3
—
—

—
3
—
—

—
—
—
—

117

129

(12)

¥39,373¥28,142¥11,230

Nomura Real Estate Holdings, Inc. 41 Financial Report 2022

(Millions of yen)
FY2022/3 (as of March 31, 2022)

Book value

Securities whose book value exceeds acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Securities whose book value does not exceed acquisition cost:(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Subtotal
Total

3.

Fair value

Difference¥1,343

¥746

¥596

—
—
—
37,182———
27,271

—
—
—
9,911

38,52528,01810,507

—

—

—

—
—
—
—

—
—
—
—

—
—
—
—

—

—

—

¥38,525¥28,018¥10,507

Sales of available-for-sale securities
2021(Millions of yen)Type

Proceeds from sales(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Total

Aggregate gains

Aggregate losses

¥149

¥—

¥224

—
—
—
—

—
—
—
—

—
—
—
—

¥149

¥—

¥224

2022
(Millions of yen)Type

Proceeds from sales(1) Shares(2) Bonds
1) Government and municipal bonds, etc.
2) Bonds payable3) Other(3) Other
Total

Aggregate gains

Aggregate losses

¥32

¥24

¥3

—
—
—
—

—
—
—
—

—
—
—
—

¥32

¥24

¥3

4. Securities subject to the recognition of impairment losses
Impairment losses of ¥27 million was recognized for securities in the fiscal year ended March 31, 2022.

Nomura Real Estate Holdings, Inc. 42 Financial Report 2022

15. Derivative Financial Instruments
1.

Derivatives to which hedge accounting is not applied(1) Currency-related derivatives
FY2022/3 (as of March 31, 2022)
Contract amount

Category

Type of derivatives

Transactions
other thanmarkettransactions

Forward exchange contract
Sell Australian dollars / Buy yen

2.

Contract amount due
after one year

Fair value

Valuation gain or loss

(Millions of yen)

¥84

¥—

¥(7)

¥(7)

Derivatives to which hedge accounting is applied(1) Currency-related derivatives
FY2021/3 (as of March 31, 2021)
Contract amount

Hedge accounting
methodType of derivatives

Major hedged items

Contract amount due
after one year

Fair value(Millions of yen)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in U.S. dollars

Securities denominatedin foreign currencies¥30,066¥—¥(1,409)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Thai baht

Securities denominatedin foreign currencies

9,175

1,774

(384)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Chinese Yuan

Securities denominatedin foreign currencies

15,099—(1,114)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Philippine peso

Securities denominatedin foreign currencies

1,834

1,834

(292)

8,802

—

(594)

829

—

(44)

3,290

—

(74)

¥69,098¥3,609¥(3,913)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in British pounds
Deferral hedge Forward exchange contract
accounting
Sell U.S. dollars / Buy yen

Securities denominatedin foreign currencies

Deferral hedge Forward exchange contract
accounting
Sell Thai baht / Buy yen
Total

FY2022/3 (as of March 31, 2022)
Contract amount
Hedge accounting
methodType of derivatives

Major hedged items

Contract amount due
after one year

Fair value(Millions of yen)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in U.S. dollars

Securities denominatedin foreign currencies¥29,835¥—¥(956)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Thai baht

Securities denominatedin foreign currencies

3,899

—

(355)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Chinese Yuan

Securities denominatedin foreign currencies

5,838

—

(710)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in Philippine peso

Securities denominatedin foreign currencies

1,829

1,829

(276)

10,315—(364)

Deferral hedge Currency swaps
accounting
Receipts in yen /Payments in British pounds
Deferral hedge Forward exchange contract
accounting
Sell U.S. dollars / Buy yen

Securities denominatedin foreign currencies

17,718—153

Deferral hedge Forward exchange contract
accounting
Sell Thai baht / Buy yen

Securities denominatedin foreign currencies

7,095

—

(467)

Deferral hedge Forward exchange contract
Securities denominatedaccounting
Buy Philippine peso / Sell yen in foreign currencies

35,01814,605

1,778

Deferral hedge Forward exchange contract
accounting
Sell Chinese Yuan / Buy yen

11,853—92¥123,402¥16,434¥(1,107)

Total

Securities denominatedin foreign currencies

Nomura Real Estate Holdings, Inc. 43 Financial Report 2022

(2)Interest rate-related derivatives
FY2021/3 (as of March 31, 2021)(Millions of yen)

Hedge accounting method

Type of derivatives

Exceptional treatment Interest rate swaps
for interest rate swaps Receive floating rate /Pay fixed rate

Major hedged items

Contract amountContract amount due
after one year

Long-term debt

¥203,500¥172,500(Note)¥203,500¥172,500—

Total

Fair value

Note: The fair value of the interest rate swaps which qualify for exceptional treatment for interest rate swaps is considered to be included in the fair value of the long-term
debt.
FY2022/3 (as of March 31, 2022)(Millions of yen)
Hedge accounting method

Type of derivatives

Exceptional treatment Interest rate swaps
for interest rate swaps Receive floating rate /Pay fixed rate

Major hedged items

Contract amountContract amount due
after one year

Long-term debt

¥177,036¥153,036(Note)¥177,036¥153,036—

Total

Fair value

Note: The fair value of the interest rate swaps which qualify for exceptional treatment for interest rate swaps is considered to be included in the fair value of the long-term
debt.

16. Retirement Benefits
1. Outline of retirement benefit plans
The Company does not have a retirement benefit plan. As defined benefit plans, certain subsidiaries have the lump-sum
pension plan and the defined benefit corporate pension plan, and defined contribution pension plans. In certain cases, additional
retirement benefit payments may be made. For the lump-sum pension plan and the defined benefit corporate pension plan usedby certain subsidiaries, retirement benefit liability and retirement benefit expenses are calculated by the simplified method.
2. Defined benefit plan
(1) A reconciliation of the changes in retirement benefit obligations for the fiscal years ended March 31, 2021 and2022 (excluding plans applying a simplified method)(Millions of yen)
2021

2022

Retirement benefit obligations at the beginning of the year
Service cost
Interest cost
Actuarial gain or loss
Retirement benefit payments¥38,961
1,936
182
370
(822)

¥40,627
2,014
190
352
(852)

Retirement benefit obligations at the end of the year

¥40,627¥42,332(2)

A reconciliation of the changes in balance of plan assets for the fiscal years ended March 31, 2021 and 2022
(excluding plans applying a simplified method stated in (3))(Millions of yen)
2021

2022

Fair value of plan assets at the beginning of the year
Expected return on plan assets
Actuarial gain or loss
Employer contributions
Retirement benefit payments¥22,314
401
2,506
1,563
(525)

¥26,261
472
335
882
(507)

Fair value of plan assets at the end of the year

¥26,261¥27,444(3)

A reconciliation of the changes in balance of retirement benefit liability applying a simplified method for the
fiscal years ended March 31, 2021 and 2022
(Millions of yen)
2021

2022

Retirement benefit liability at the beginning of the year
Retirement benefit expenses
Retirement benefit payments
Contributions to plan

¥2,058
127
(312)
(23)

¥1,850
124
(194)
(24)

Retirement benefit liability at the end of the year

¥1,850¥1,755

Nomura Real Estate Holdings, Inc. 44 Financial Report 2022

(4)A reconciliation of retirement benefit obligations as well as plan assets at March 31, 2021 and 2022, andretirement benefit liability on the Consolidated Balance Sheets(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

Funded retirement benefit obligations
Fair value of plan assets¥33,503(26,460)¥34,817(27,659)

Subtotal
Unfunded retirement benefit obligations

7,043
9,172

7,158
9,485

Net liabilities on the Consolidated Balance Sheet
Retirement benefit liability

16,216
16,216

16,644
16,644

Net liabilities on the Consolidated Balance Sheet¥16,216¥16,644

Note: It includes the plans applying a simplified method.

(5)

Breakdown of retirement benefit expenses(Millions of yen)
2021

2022

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain or loss
Amortization of prior service cost
Retirement benefit expenses calculated by the simplified method
Other¥1,936
182
(401)
901
(197)
127
20

¥2,014
190
(472)
735
—
124
20

Retirement benefit expenses for defined benefit plan

¥2,567¥2,613(6) Remeasurements of defined benefit plans
Breakdown of items recorded in the Consolidated Statements of Comprehensive Income as remeasurements of defined
benefit plans, before tax is as follows.
(Millions of yen)
2021

2022

Prior service cost
Actuarial gain or loss¥(197)
3,036

¥—
718

Total

¥2,838¥718(7) Remeasurements of defined benefit plans
Breakdown of items recorded in the Consolidated Balance Sheets as remeasurements of defined benefit plans, before tax is
as follows.
(Millions of yen)
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

Unrecognized actuarial gain or loss¥(2,853)¥(2,134)

Total¥(2,853)¥(2,134)(8) Composition of plan assets by major classifications
1) Major components of plan assets
The ratio of each major category to total plan assets is as follows.
FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

ClaimsEquityGeneral account
Other

37%
26%
13%
24%

24%
25%
17%
34%

Total

100%

100%

2) Method for setting the expected long-term rate of return on plan assets
The expected long-term rate of return on plan assets has been estimated based on the current and projected allocation ofplan assets and the current and expected long-term rate of return on diverse assets which comprise plan assets.
(9) Calculation basis for actuarial calculations
Calculation basis for major actuarial calculations
Discount rate
Expected rate of return on plan assets
Expected salary increase rate

Nomura Real Estate Holdings, Inc. 45 Financial Report 2022

FY2021/3(as of March 31, 2021)

FY2022/3(as of March 31, 2022)

0.2-0.5%
1.8%
2.0-7.5%

0.2-0.5%
1.8%
2.0-7.5%

3. Defined contribution plan
The required contributions to the defined contribution plans of consolidated subsidiaries for the fiscal years ended March 31,
2021 and 2022 are ¥791 million and ¥581 million.

17. Stock Options
1.

Expenses for stock options and items(Millions of yen)
2021

Selling, General and Administrative Expenses

2.

Amount recorded as profit due to expiration due to non-exercise of rights(Millions of yen)
2021

2022

¥123

¥25

3. Description, scale and fluctuation of stock options(1) Description
Nomura Real Estate Holdings, Inc.
FY2015/3

Settlement date
Recipients

2nd issue of stock options

3rd issue of stock options

June 27, 2014

June 27, 2014

Directors and executive
officers of the Company’s
subsidiaries(72 persons)

Directors of the Company(6 persons)
Directors and executive
officers of the Company’s
subsidiaries(72 persons)
Employees of the Company’s
subsidiaries(187 persons)Type/number of shares reserved(Note 1)

Common stock:
194,400 shares

Common stock:352,300 shares

Grant dateJuly 23, 2014

July 23, 2014

No conditions attached

No conditions attached

No period specified

No period specified

July 23, 2016 –July 23, 2016 –July 22, 2021

July 22, 2021

Number of share acquisition rights(units) (Note 2)——

Type, content and number ofshares subject to the shareacquisition rights (Note 2)——

Amount paid-in (¥) upon exercise of
the share acquisition rights (Note2)

1 per share

2,016 per share
However, the said paid-in
amount (hereinafter “exercise
price”) may be adjusted basedon provisions in (Note 5).

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 1,719
Capitalization amount: 859.5

Issuance price: 2,387
Capitalization amount: 1,193.5

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 6)

Vesting conditions
Service period
Exercisable period

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

2022

¥17

Acquisition of share acquisition rights by transfer requires theapproval of the Board of Directors of this Company.
As indicated in (Note 4)

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc. 46 Financial Report 2022¥—

Nomura Real Estate Holdings, Inc.
FY2016/3

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

5th issue of stock options

Settlement dateJune 26, 2015

June 26, 2015

June 26, 2015

September 17, 2015

Recipients

Directors of theCompany(6 persons)

Directors and executive
officers of the Company’s
subsidiaries(76 persons)

Directors of theCompany(6 persons)

Directors of theCompany’s subsidiaries(3 persons)

Directors and executive
officers of the Company’s
subsidiaries(76 persons)

Employees of theCompany’s subsidiaries(20 persons)

Employees of theCompany’s subsidiaries(199 persons)Type/number of shares
reserved (Note 1)

Common stock:35,700 shares

Common stock:
157,500 shares

Common stock:
380,900 shares

Common stock:
24,000 shares

Grant dateJuly 23, 2015

July 23, 2015

July 23, 2015

October 14, 2015

No conditions attached

No conditions attached

No conditions attached

No conditions attached

No period specified

No period specified

No period specified

No period specified

July 23, 2018 –July 23, 2018 –July 23, 2018 –October 14, 2018 –July 22, 2023

July 22, 2023

July 22, 2023

October 13, 2023

Number of shareacquisition rights (units)(Note 2)87403 [351]

2,765 [2,407]

172

Type, content and numberof shares subject to theshare acquisition rights(Note 2)

Common stock:
8,700 shares

Common stock:40,300 shares[35,100 shares]

Common stock:276,500 shares[240,700 shares]

Common stock:
17,200 shares

Amount paid-in (¥) upon
exercise of the shareacquisition rights(Note 2)

1 per share

1 per share

2,741 per share
However, the said paidin amount (hereinafter“exercise price”) may be
adjusted based onprovisions in (Note 5).

2,355 per share
However, the said paidin amount (hereinafter“exercise price”) may be
adjusted based onprovisions in (Note 5).

Stock issuance price andcapitalization amount (¥)
in the event of issuance ofshares upon exercise of
the share acquisitionrights (Note 2)

Issuance price: 2,261
Capitalization amount:
1,130.5

Issuance price: 2,261
Capitalization amount:
1,130.5

Issuance price: 3,257
Capitalization amount:
1,628.5

Issuance price: 2,891
Capitalization amount:
1,445.5

Terms and conditions forexercising the shareacquisition rights(Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

As indicated in (Note 6)

As indicated in (Note 6)

Vesting conditions
Service period
Exercisable period

Matters related to thetransfer of shareacquisition rights (Note 2)
Matters related to the
grant of share acquisitionrights in connection withcorporate restructuring
actions (Note 2)

Acquisition of share acquisition rights by transfer requires the approval of the Board of Directors of thisCompany.
As indicated in (Note 4)

As indicated in (Note 4)

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc. 47 Financial Report 2022

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc.
FY2017/3

Settlement date
Recipients

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

June 29, 2016

June 29, 2016

June 29, 2016

Directors of the Company(6 persons)

Directors and executive
officers of the Company’s
subsidiaries(83 persons)

Directors of the Company(6 persons)
Directors and executive
officers of the Company’s
subsidiaries(83 persons)
Employees of the Company’s
subsidiaries(226 persons)Type/number of shares reserved(Note 1)

Common stock:
56,700 shares

Common stock:250,300 shares

Common stock:421,800 shares

Grant dateJuly 22, 2016

July 22, 2016

July 22, 2016

No conditions attached

No conditions attached

No conditions attached

No period specified

No period specified

No period specified

July 22, 2019 –July 21, 2024

July 22, 2019 –July 21, 2024

July 22, 2019 –July 21, 2024

302

864

1,803 [1,737]

Common stock:
30,200 shares

Common stock:86,400 shares

Common stock:180,300 shares[173,700 shares]

Amount paid-in (¥) upon exercise of
the share acquisition rights (Note2)

1 per share

1 per share

1,927 per share
However, the said paid-in
amount (hereinafter “exercise
price”) may be adjusted basedon provisions in (Note 5).

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 1,594
Capitalization amount: 797

Issuance price: 1,594
Capitalization amount: 797

Issuance price: 2,304
Capitalization amount: 1,152

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

As indicated in (Note 6)

Vesting conditions
Service period
Exercisable period
Number of share acquisition rights(units) (Note 2)
Type, content and number ofshares subject to the shareacquisition rights (Note 2)

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

Acquisition of share acquisition rights by transfer requires the approval of the Board of Directors of
this Company.
As indicated in (Note 4)

As indicated in (Note 4)

Nomura Real Estate Holdings, Inc. 48 Financial Report 2022

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc.
FY2018/3

Settlement date
Recipients

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

June 29, 2017

June 29, 2017

June 29, 2017

Directors of the Company(6 persons)

Directors and executive
officers of the Company’s
subsidiaries(90 persons)

Directors of the Company(6 persons)
Directors and executive
officers of the Company’s
subsidiaries(90 persons)
Employees of the Company’s
subsidiaries(241 persons)Type/number of shares reserved(Note 1)

Common stock:39,800 shares

Common stock:
228,300 shares

Common stock:456,400 shares

Grant dateJuly 21, 2017

July 21, 2017

July 21, 2017

No conditions attached

No conditions attached

No conditions attached

No period specified

No period specified

No period specified

July 21, 2020 –July 20, 2025

July 21, 2020 –July 20, 2025

July 21, 2020 –July 20, 2025

337

872 [854]

3,089 [2,842]

Common stock:
33,700 shares

Common stock:87,200 shares[85,400 shares]

Common stock:308,900 shares[284,200 shares]

Amount paid-in (¥) upon exercise of
the share acquisition rights (Note2)

1 per share

1 per share

2,400 per share
However, the said paid-in
amount (hereinafter “exercise
price”) may be adjusted basedon provisions in (Note 5).

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 1,840
Capitalization amount: 920

Issuance price: 1,840
Capitalization amount: 920

Issuance price: 2,799
Capitalization amount: 1,399.5

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

As indicated in (Note 6)

Vesting conditions
Service period
Exercisable period
Number of share acquisition rights(units) (Note 2)
Type, content and number ofshares subject to the shareacquisition rights (Note 2)

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

Acquisition of share acquisition rights by transfer requires the approval of the Board of Directors of
this Company.
As indicated in (Note 4)

As indicated in (Note 4)

Nomura Real Estate Holdings, Inc. 49 Financial Report 2022

As indicated in (Note 7)

Nomura Real Estate Holdings, Inc.
FY2019/3

Settlement date
Recipients

Type/number of shares reserved(Note 1)
Grant date

1st issue of stock options

2nd issue of stock options

June 26, 2018

June 26, 2018

Directors of the Company(5 persons)

Directors and executive
officers of the Company’s
subsidiaries(36 persons)Common stock:
10,700 shares

Common stock:
49,400 shares

July 19, 2018

July 19, 2018

No conditions attached

No conditions attached

No period specified

No period specified

July 19, 2021 –July 18, 2026

July 19, 2021 –July 18, 2026

89

235

Common stock:8,900 shares

Common stock:
23,500 shares

Amount paid-in (¥) upon exercise of
the share acquisition rights (Note2)

1 per share

1 per share

Stock issuance price andcapitalization amount (¥) in theevent of issuance of shares upon
exercise of the share acquisitionrights (Note 2)

Issuance price: 2,030
Capitalization amount: 1,015

Issuance price: 2,030
Capitalization amount: 1,015

Terms and conditions forexercising the share acquisitionrights (Note 2)

As indicated in (Note 3)

As indicated in (Note 3)

Vesting conditions
Service period
Exercisable period
Number of share acquisition rights(units) (Note 2)
Type, content and number ofshares subject to the shareacquisition rights (Note 2)

Matters related to the transfer ofshare acquisition rights (Note 2)
Matters related to the grant ofshare acquisition rights inconnection with corporate
restructuring actions (Note 2)

Acquisition of share acquisition rights by transfer requires theapproval of the Board of Directors of this Company.
As indicated in (Note 4)

As indicated in (Note 4)

Notes: 1. Described in terms of the number of shares.
2. Information as of the end of the fiscal year ended March 31, 2022 is indicated. Any part of the information which was changed during the period from the endof the current fiscal year to the end of the month previous to the filing date (May 31, 2022) is indicated inside brackets [ ] as of the end of the month previous
to the filing date, and no change has been made in any other parts since the end of the current fiscal year.
3. i) A person who has received the allotment of the share acquisition rights (the “Eligible Person”) must be in a position of Director, Audit & Supervisory Board
Member, Executive Officer, Counselor, Advisor, Special Officer, Special Advisor, or in an equivalent position thereto, or employee of the Company or anyof its subsidiaries (collectively, the “Required Position”) until the time of exercise of the share acquisition rights on a continuing basis.
ii) Notwithstanding i) above, in the case the Eligible Person has lost the Required Position, the Eligible Person may exercise share acquisition rights only
from and including whichever is later of the date of loss of the Required Position or the commencement date of “Exercisable period” in the above table (the“Exercise Period”), to and including the date on which one year has elapsed from the aforesaid date on the condition that the last day is on or before theexpiration date of the Exercise Period.
iii) When the Eligible Person has passed away, his/her heir is deemed to be able to succeed and exercise the share acquisition rights if the Eligible Person
has met the conditions of i) above immediately before the death, or the Eligible Person had been able to exercise share acquisition rights in accordancewith the provision of ii) above immediately before the death (such heir who succeeded the share acquisition rights is hereinafter referred to as the“Successor of Rights”); provided, however, that in the case of i) above, the Successor of Rights may exercise share acquisition rights only from andincluding whichever is later of the date of death of the Eligible Person or the commencement date of the Exercise Period, to and including the date on
which one year has elapsed from the aforesaid date on the condition that the last day is on or before the expiration date of the Exercise Period, and in thecase of ii) above, the Successor of Rights may exercise share acquisition rights during the same period as the period allowed for the Eligible Person to
exercise those in accordance with ii) above.
iv) When the Successor of Rights has passed away, his/her heir may not exercise the share acquisition rights.
v) The Eligible Person or the Successor of Rights may not exercise the allotted share acquisition rights in more than two times.
vi) A fraction of one share acquisition right may not be exercised.
vii) Other terms and conditions shall be as per specifications in the “Share Acquisition Rights Allotment Agreement” to be entered into between the Company
and the Eligible Person.
4. The Company, in the case of merger (limited only to cases in which the Company is dissolved by merger), absorption-type company split, incorporation-typecompany split, share exchange or share transfer (collectively, “Reorganization”), may issue the share acquisition rights of the company that survives themerger, the company incorporated as a result of the merger, the company which succeeds, in whole or in part, to any rights and obligations that a company
effecting an absorption-type company split holds in connection with its business, the company that is incorporated in the incorporation-type company split, thecompany that acquires all of the issued shares of the company effecting the share exchange, or the company incorporated as a result of the share transfer(collectively, “Reorganized Company”) to each person holding share acquisition rights that remain outstanding at the time directly before when the effects of
the Reorganization arises (collectively, “Remaining Share Acquisition Rights”), based on the conditions set forth below. In this case, the Remaining Share
Acquisition Rights shall be extinguished and the Reorganized Company shall issue new share acquisition rights. However, this shall be limited to the casewhere the issuance of share acquisition rights of the Reorganized Company is stipulated in an absorption-type merger agreement, an incorporation-typemerger agreement, an absorption-type company split agreement, an incorporation-type company split plan, a stock exchange agreement, or a share transfer
plan in accordance with following conditions.
i) Number of share acquisition rights of the Reorganized Company to be delivered
A number equal to the number of the Remaining Share Acquisition Rights shall be delivered to each such Eligible Person.
ii) Class of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
To be Ordinary shares of the Reorganized Companyiii) Number of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
To be determined in accordance with the “Number of shares underlying share acquisition rights” in the above table, taking into consideration the

Nomura Real Estate Holdings, Inc. 50 Financial Report 2022

conditions, etc. of the Reorganization.
iv) Value of property to be contributed upon exercise of share acquisition rights and calculation methods thereof
The subject of contribution upon exercise of share acquisition rights shall be cash and the amount shall be obtained by multiplying ¥1, which is the price tobe paid per share, by the number of shares of the Reorganized Company underlying the share acquisition rights determined in accordance with iii) above.
v) Period during which share acquisition rights may be exercised
Period during which share acquisition rights may be exercised shall begin on the date of commencement of the Exercise Period or the effective date of theReorganization, whichever is later, and end on the expiration date of the Exercise Period.
vi) Matters concerning share capital and legal capital surplus increases in event of issuance of shares upon exercise of share acquisition rights(1) The amount of share capital increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be half the maximum
amount of increase in share capital, etc., calculated in accordance with the provision in Paragraph 1, Article 17 of the Regulation on Accounting ofCompanies. Any fraction of less than ¥1 resulting from the calculation shall be rounded up to the nearest yen.
(2) The amount of legal capital surplus increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be the amountobtained by subtracting the share capital increase stipulated in (1) above from the maximum amount of increase in share capital, etc., described in (1)above.
vii) Restriction on acquisition of the share acquisition rights by transfer
Any acquisition of the share acquisition rights by transfer is subject to the approval of the Reorganized Company.
viii) Terms and conditions for exercise of share acquisition rights
To be determined in accordance with the aforementioned Note 3.
ix) Matters concerning acquisition of share acquisition rights
In cases where the Board of Directors of the Company resolves to call a General Meeting of Shareholders to approve any of the following agenda items(or if a resolution by the General Meeting of Shareholders is not necessary, in cases where a resolution of the Board of Directors of the Company is madeconcerning any of the following agenda items), or in cases where there is a call from shareholders to hold such General Meeting of Shareholders, andwhen the acquisition date has been determined by the Board of Directors, the Company may acquire all or part of share acquisition rights without
contribution upon arrival of the date.
(1) Agenda item for approval of a merger agreement under which the Company shall become a disappearing company(2) Agenda item for approval of absorption-type company split agreement or incorporation-type company split plan under which the Company shallbecome a split company(3) Agenda item for approval of a share exchange agreement or share transfer plan under which the Company shall become a wholly-owned subsidiary(4) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of all shares tobe issued by the Company shall require the approval of the Company(5) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of shares to bedelivered upon exercise of the share acquisition rights shall require the approval of the Company or that the Company may acquire all of such class ofshares by resolution at a General Meeting of Shareholdersx) Treatment of any fractional shares arising upon exercise of share acquisition rights
Any fraction of less than one share included in the number of shares to be delivered to a share acquisition rights holder shall be discarded.
5. If the Company conducts a share split or share consolidation of its common stock, the Exercise Price shall be adjusted using the following formula, andfractional yen amounts due to the adjustment shall be rounded up.
Exercise Price after adjustment = Exercise Price after adjustment ×

1
Ratio of share split or consolidation

In addition, in cases where the Company issues a call for subscribers for the shares of common stock that the Company thereby issued or the shares ofcommon stock of the Company held by the Company thereby disposed of, and the amount to be paid in is particularly advantageous to the subscribers, theExercise Price shall be adjusted in accordance with the following formula, and resulting fractions of less than ¥1 shall be rounded up.
Number of+
Exercise Price after
Exercise Price before=
× outstanding sharesadjustment
adjustment

Number of newly
issued shares×

Paid-in amount
per share

Fair value per share

Number of outstanding shares + Number of newly issued shares“Number of outstanding shares” in the aforementioned formula is the total number of issued shares of the Company’s common stock minus the number oftreasury shares of the Company’s common stock. For the disposal of treasury shares of the Company’s common stock, “Number of newly issued shares” isreplaced by “Number of treasury shares to be disposed” and “Paid-in amount per share” by “Disposal price per share.”
Other than the above, in cases where the Company carries out an allotment without contribution of shares or share acquisition rights, or in other cases where
it is necessary for the Company to adjust the Exercise Price, the Company shall adjust the Exercise Price as deemed necessary.
6. i) A person who has received the allotment of the share acquisition rights (the “Eligible Person”) must be in a position of Director, Audit & Supervisory Board
Member, Executive Officer, Counselor, Advisor, Special Officer, Special Advisor, or in an equivalent position thereto, or employee of the Company or anyof its subsidiaries (collectively, the “Required Position”) until the time of exercise of the share acquisition rights on a continuing basis.
ii) With regard to the Eligible Person, there must not be a situation where retirement under instruction or punitive dismissal has been decided pursuant to therules of employment of the Company or its subsidiaries, or a similar situation, as of the time of exercise of the share acquisition rights.
iii) Notwithstanding i) above, share acquisition rights may be exercised even when the Eligible Person has lost the Required Position, if the reason for theloss of the Required Position is mandatory retirement at the age limit, retirement because of reaching contractual age-limit, retirement assigned bycompany, retirement mainly because of physical disability resulting from occupational injury or illness, dismissal because of unavoidable operational
reason (layoff) or resignation or retirement similar to these. In this case, the Eligible Person may exercise share acquisition rights only from and includingwhichever is later of the date of loss of the Required Position or the commencement date of the Exercise Period, to and including the date on which one
year has elapsed from the aforesaid date on the condition that the last day is on or before the expiration date of the Exercise Period.
iv) When the Eligible Person has passed away, his/her heir is deemed to be able to succeed and exercise the share acquisition rights if the Eligible Person
has met the conditions of i) and ii) above immediately before the death, or the Eligible Person had been able to exercise share acquisition rights inaccordance with the provision of iii) above immediately before the death; provided, however, that in the case of i) above, the Successor of Rights may
exercise share acquisition rights only from and including whichever is later of the date of death of the Eligible Person or the commencement date of the
Exercise Period, to and including the date on which one year has elapsed from the aforesaid date on the condition that the last day is on or before theexpiration date of the Exercise Period, and in the case of iii) above, the Successor of Rights may exercise share acquisition rights during the same period
as the period allowed for the Eligible Person to exercise those in accordance with iii) above.
v) When the Successor of Rights passed away, his/her heir may not exercise the share acquisition rights.
vi) The Eligible Person or Successor of Rights may not exercise the share acquisition rights in multiple installments exceeding two installments.
vii) A fraction of one share acquisition right may not be exercised.
viii) Other terms and conditions shall be as per specifications in the “Share Acquisition Rights Allotment Agreement” to be entered into between the Company
and the Eligible Person.
7. The Company, in the case of merger (limited only to cases in which the Company is dissolved by merger), absorption-type company split, incorporation-typecompany split, share exchange or share transfer (collectively, “Reorganization”), may issue the share acquisition rights of the company that survives themerger, the company incorporated as a result of the merger, the company which succeeds, in whole or in part, to any rights and obligations that a company
effecting an absorption-type company split holds in connection with its business, the company that is incorporated in the incorporation-type company split, thecompany that acquires all of the issued shares of the company effecting the share exchange, or the company incorporated as a result of the share transfer(collectively, “Reorganized Company”) to each person holding share acquisition rights that remain outstanding at the time directly before when the effects of
the Reorganization arises (collectively, “Remaining Share Acquisition Rights”), based on the conditions set forth below. In this case, the Remaining Share
Acquisition Rights shall be extinguished and the Reorganized Company shall issue new share acquisition rights. However, this shall be limited to the casewhere the issuance of share acquisition rights of the Reorganized Company is stipulated in an absorption-type merger agreement, an incorporation-typemerger agreement, an absorption-type company split agreement, an incorporation-type company split plan, a stock exchange agreement or a share transfer
plan in accordance with following conditions.
i) Number of share acquisition rights of the Reorganized Company to be delivered
A number equal to the number of the Remaining Share Acquisition Rights shall be delivered to each such Eligible Person.
ii) Class of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
Ordinary shares of the Reorganized Companyiii) Number of shares of the Reorganized Company to be delivered upon exercise of share acquisition rights
To be determined in accordance with the “Number of shares underlying share acquisition rights” in the above table, taking into consideration theconditions, etc. of the Reorganization.
iv) Value of property to be contributed upon exercise of share acquisition rights and calculation methods thereof

Nomura Real Estate Holdings, Inc. 51 Financial Report 2022

The subject of contribution upon exercise of share acquisition rights shall be cash, and the amount shall be obtained by multiplying the price determined inaccordance with the Exercise Price of “Paid-in amount on exercise of share acquisition rights” stated in the table by taking into consideration theconditions and other factors of the Reorganization, by the number of shares of the Reorganized Company underlying share acquisition rights in iii) above.
v) Period during which share acquisition rights may be exercised
Period during which share acquisition rights may be exercised shall begin on the date of commencement of the Exercise Period or the effective date of theReorganization, whichever is later, and end on the expiration date of the Exercise Period.
vi) Matters concerning share capital and legal capital surplus increases in event of issuance of shares upon exercise of share acquisition rights(1) The amount of share capital increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be half the maximum
amount of increase in share capital, etc., calculated in accordance with the provision in Paragraph 1, Article 17 of the Regulation on Accounting ofCompanies. Any fraction of less than ¥1 resulting from the calculation shall be rounded up to the nearest yen.
(2) The amount of legal capital surplus increase in the event of an issuance of shares upon exercise of the share acquisition rights shall be the amountobtained by subtracting the share capital increase stipulated in (1) above from the maximum amount of increase in share capital, etc., described in (1)above.
vii) Restriction on acquisition of the share acquisition rights by transfer
Any acquisition of the share acquisition rights by transfer is subject to the approval of the Reorganized Company.
viii) Terms and conditions for exercise of share acquisition rights
To be determined in accordance with the aforementioned Note 6.
ix) Matters concerning acquisition of share acquisition rights
In cases where the Board of Directors of the Company resolves to call a General Meeting of Shareholders to approve any of the following agenda items(or if a resolution by the General Meeting of Shareholders is not necessary, in cases where a resolution of the Board of Directors of the Company is madeconcerning any of the following agenda items), or in cases where there is a call from shareholders to hold such General Meeting of Shareholders, andwhen the acquisition date has been determined by the Board of Directors, the Company may acquire all or part of share acquisition rights without
contribution upon arrival of the date.
(1) Agenda item for approval of a merger agreement under which the Company shall become a disappearing company(2) Agenda item for approval of absorption-type company split agreement or incorporation-type company split plan under which the Company shallbecome a split company(3) Agenda item for approval of a share exchange agreement or share transfer plan under which the Company shall become a wholly-owned subsidiary(4) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of all shares tobe issued by the Company shall require the approval of the Company(5) Agenda item for an amendment to the Articles of Incorporation in order to establish the provision that an acquisition by way of transfer of shares to bedelivered upon exercise of the share acquisition rights shall require the approval of the Company or that the Company may acquire all of such class ofshares by resolution at a General Meeting of Shareholdersx) Treatment of any fractional shares arising upon exercise of share acquisition rights
Any fraction of less than one share included in the number of shares to be delivered to a share acquisition rights holder shall be discarded.

(2)

Outline of and changes in stock options
The number of stock options outstanding during the fiscal year ended March 31, 2022 is converted and presented as thenumber of shares.
1) Number of stock options
Nomura Real Estate Holdings, Inc.
FY2015/3

2nd issue of stock options

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

3rd issue of stock options

—
—
—
—
—

—
—
—
—
—

26,500—26,500——125,200—
84,70040,500—Nomura Real Estate Holdings, Inc.
FY2016/3

1st issue of stock options

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

2nd issue of stock options

3rd issue of stock options

5th issue of stock options

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

8,700
—
—
—
8,700

50,200—9,900—
40,300314,200—
27,70010,000276,500

22,000
—
2,600
2,200
17,200Nomura Real Estate Holdings, Inc.
FY2017/3

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

37,800—7,600—
30,200126,200—
39,800—86,400251,300—
70,0001,000
180,300

Nomura Real Estate Holdings, Inc. 52 Financial Report 2022

Nomura Real Estate Holdings, Inc.
FY2018/3

1st issue of stock options

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

2nd issue of stock options

3rd issue of stock options

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

39,800—6,100—
33,700153,600—
66,400—87,200435,600—
116,700
10,000308,900

1st issue of stock options

2nd issue of stock options

Nomura Real Estate Holdings, Inc.
FY2019/3

Non-vested: (shares)
Previous fiscal year end
GrantedForfeited
Vested:End of the year
Vested: (shares)
Previous fiscal year end
Vested:Exercised
Forfeited
End of the year

—
—
—
—
—

—
—
—
—
—

10,700
—
1,800
—
8,900

49,400—25,900—23,500

2nd issue of stock options

3rd issue of stock options

1
2,810
1,718

2,016
2,785
371

2) Unit price data
Nomura Real Estate Holdings, Inc.
FY2015/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

Nomura Real Estate Holdings, Inc.
FY2016/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

5th issue of stock options

1
—
2,260

1
2,745
2,260

2,741
2,952
516

2,355
2,730
536

Nomura Real Estate Holdings, Inc.
FY2017/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

1
2,505
1,593

1
2,743
1,593

1,927
2,797
377

1st issue of stock options

2nd issue of stock options

3rd issue of stock options

1
2,940
1,839

1
2,766
1,839

2,400
2,847
399

1st issue of stock options

2nd issue of stock options

1
2,685
2,029

1
2,753
2,029

Nomura Real Estate Holdings, Inc.
FY2018/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

Nomura Real Estate Holdings, Inc.
FY2019/3

Exercise price (¥)
Average price upon exercise (¥)
Fair value on grant date (¥)

4. Estimation of the number of vested options
The estimation of the number of vested options is made based on the actual number of forfeited options due to difficulty inreasonably estimating future forfeitures.

Nomura Real Estate Holdings, Inc. 53 Financial Report 2022

18. Income Taxes
1.

Breakdown of major causes of deferred tax assets and liabilities(Millions of yen)
FY2021/3
FY2022/3(as of March 31, 2021)(as of March 31, 2022)

Deferred tax assets:
Unrealized profits
Retirement benefit liability
Impairment losses
Excess of depreciation
Provision for bonuses
Inventory write-downs
Revaluation of assets on consolidation
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Revaluation of assets on consolidation
Reserve for deferred income taxes
Other
Total deferred tax liabilities
Net deferred tax liabilities

2.

¥12,582
4,967
5,050
2,751
2,452
698
395
12,243
41,142(5,500)35,641¥12,649
5,097
4,166
4,115
2,813
1,550
330
18,652
49,375(6,058)43,317(49,832)(16,821)(5,825)(72,478)¥(36,836)(49,074)(16,405)(8,722)(74,202)¥(30,885)

Breakdown of major causes of the difference between the effective statutory tax rate and the effective income tax
rate after the application of tax effect accounting
FY2021/3(as of March 31, 2021)

Statutory tax rate
(Adjustment)
Entertainment and other expenses that are permanently non-deductible
Tax effect related to investments in subsidiaries
Others
Effective income tax rate after application of tax effect accounting

30.6%
2.4%
0.4%
(0.7)%
32.8%

FY2022/3(as of March 31, 2022)

The note has been omitted
because the difference between
the statutory tax rate and theeffective tax rate is less than
5% of the statutory tax rate.

19. Schedule of Asset Retirement Obligations
The note has been omitted due to the lack of materiality.

20. Real Estate for Rent
Some of the Company’s consolidated subsidiaries own rental office buildings and rental retail facilities (including land) in Tokyoand other regions. Some rental office buildings are regarded as properties including the portion used as rental properties since
they are used by the Company and certain consolidated subsidiaries.
The book values in the Consolidated Balance Sheets, changes during the fiscal year and fair values of these rental
properties and properties including the portion used as rental properties are as follows.
(Millions of yen)

Real estate for rentBook value in the Consolidated Balance Sheets
Balance at the beginning of the fiscal year
Changes during the fiscal year
Balance at the end of the fiscal year
Fair value at the end of the fiscal year
Properties including the portion used as real estate for rentBook value in the Consolidated Balance Sheets
Balance at the beginning of the fiscal year
Changes during the fiscal year
Balance at the end of the fiscal year
Fair value at the end of the fiscal year

2021

2022

¥681,101(44,148)
636,953¥815,677¥636,953
2,071
639,024¥853,867¥25,867(35)
25,831¥56,730¥25,831(72)
25,758¥57,920

Notes: 1. Book values in the Consolidated Balance Sheet are the amounts determined by deducting accumulated depreciation from the acquisition cost.
2. Fair values as of March 31, 2021 and 2022 are determined based primarily on values according to Real Estate Appraisal Standards (including adjustments
based on certain indexes). However, if no significant fluctuations in certain appraisal values or indexes considered to appropriately reflect market values haveoccurred since the time of acquisition from third party or the time of the most recent appraisal, the Group bases the fair value on an amount that has beenadjusted using the aforesaid values or indexes.

Income and loss on rental properties and other properties used as rental properties are as follows.
(Millions of yen)

Rental properties
Operating profit
Others (gains (losses) on sale of property, etc.)
Other properties used as rental properties
Operating profit
Others (gains (losses) on sale of property, etc.)

2021

2022

¥20,394(964)¥20,579
(635)

1,021
—

1,009
—

Notes: 1. As real estate of which some portions are used as rental property includes portions used by the Company and certain consolidated subsidiaries for providing
services as well as management and administration, operating profit for this type of real estate is not recorded.
2. Others include impairment losses (¥655 million) in the fiscal year ended March 31, 2022.

Nomura Real Estate Holdings, Inc. 54 Financial Report 2022

21. Revenue Recognition
1.

Information on disaggregation of revenue from contracts with customers

2022(Millions of yen)

Reportable segments

Residential Development
Housing sales
Property development(sales)Other
Commercial Real Estate
Property development(sales)Other
Investment Management
Property Brokerage & CRE
Property & Facility
Management
Subtotal
Other (Note 2)
Total
Adjustments
Amount recorded in Consolidated
Financial Statements
Notes:

1.

Operating revenue from external customers
Revenue from
Revenue from othercontracts with
Subtotalsources (Note 1)
customers¥302,373¥5,840¥308,214
284,015—
284,015Internal sales andtransfer amountamong segments

Total¥1,011—¥309,225
284,015

2,550

1,570

4,120

—

4,120

15,80872,943

4,270
122,581

20,078
195,524

1,011
6,935

21,090202,460

49,38952,934102,323

4,128

106,451

23,554
11,47540,564

69,647
1,249—

93,201
12,72440,564

2,807
79
3,198

96,00812,804
43,76285,29341

85,334

13,89599,230512,649158
512,808—

129,7122,529
132,241—

642,361
2,687
645,049—

25,12067
25,188(25,188)667,4822,755
670,237(25,188)¥512,808¥132,241¥645,049¥—¥645,049“Revenue from other sources” includes revenue from sales of property development based on Practical Guidelines on Accounting by Transferors for Derecognition ofReal Estate Securitized by means of Special-Purpose Companies (JICPA Accounting Practice Committee Statement No. 15, November 4, 2014) and lease revenue
based on Accounting Standard for Lease Transactions (ASBJ Statement No. 13, March 30, 2007).
The “Other” category represents operating segments that are not included in reportable segments.

2.

2.

Information that provides the basis for understanding revenue from contracts with customers

Information that provides the basis for understanding revenue is stated in “1. Basis of Presentation of Consolidated Financial Statements,
4. Matters related to accounting policies, (5) Recognition of significant revenues and related costs.”

3.

Information for understanding the amounts of revenue in the fiscal year ended March 31, 2022 and the fiscal year
ending March 31, 2023
(1) Balances, etc. of contract assets and contract liabilities(Millions of yen)
2022

Receivables arising from contracts with customers (Beginning balance)¥13,171

Receivables arising from contracts with customers (Ending balance)

15,418Contract assets (Beginning balance)

2,416

Contract assets (Ending balance)

2,157

Contract liabilities (Beginning balance)

26,665Contract liabilities (Ending balance)¥34,483
Note: Contract liabilities are mainly advances received as deposits for contracts related to the housing sales business, and the performanceobligation is satisfied and revenue is recognized at the time of transfer of the residence to the customer. The contract liability balance
related to the housing sales business was ¥23,513 million as of the beginning of the fiscal year ended March 31, 2022, and of thisamount, ¥16,596 million was recognized as revenue during the fiscal year ended March 31, 2022. Regarding the contract liability
balance as of the beginning of the fiscal year ended March 31, 2022 for contracts other than those for housing sales, the amount thatwas not recognized as revenue during the fiscal year ended March 31, 2022 was immaterial.

(2)

Transaction price allocated to the remaining performance obligations

The total amount at the end of the fiscal year ended March 31, 2022 of the transaction price allocated to performance obligations thatwere not satisfied as of the end of the fiscal year was ¥157,145 million, mainly in the housing sales business of the Residential
Development business segment and in the sales of property development of the Residential Development business segment andCommercial Real Estate business segment, and the Company plans to recognize the revenue within approximately two years. In
addition, in the consideration from contracts with customers, there are no significant amounts that were not included in the transaction
price. For these notes, the Company has applied paragraph 80-22 of the Accounting Standard for Revenue Recognition.

Nomura Real Estate Holdings, Inc. 55 Financial Report 2022

22. Segment Information, etc.
Segment information
1. Segment summary
The reportable segments of the Group comprise those business units for which separate financial information is available, andwhich are subject to a regular review conducted by the Company’s Board of Directors in order to determine the allocation ofmanagement resources and evaluate their performance.
With the Company as a pure holding company, the Group consists of business companies and divisions, such as Nomura
Real Estate Development Co., Ltd. The business companies (or business divisions within Nomura Real Estate Development)
formulate comprehensive strategies on respective products and services handled by them and conduct business activities basedon such strategies.
Therefore, business segments of the Group are distinguished by products and services, primarily by business companies (orby business divisions within Nomura Real Estate Development).
2. Methods for calculating net sales, income (loss), assets, liabilities and other items by reportable segment
The accounting method for reportable segments is almost equivalent to that specified in “Significant Accounting Policies.”
Reportable segment income is presented based on business profit. Intersegment sales and transfer amounts are presented
based on market prices.
(Application of the Accounting Standard for Revenue Recognition)
The Company has applied the Accounting Standard for Revenue Recognition, and changed the way of accounting for revenue
recognition from the beginning of the fiscal year ended March 31, 2022 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 for the fiscal year ended March 31, 2022 is immaterial.
3. Information regarding sales, gains or losses, assets, liabilities and other items by reportable segment
Results by segment for the fiscal year ended March 31, 2021
(Millions of yen)
Reportable segments

Property
Property &Residential Commercial Investment Brokerage &Facility
Development Real Estate Management
CRE
Management

Subtotal

Other(Note 1)

Total

AmountRecorded in
Consolidated
Financial
Adjustments Statements(Note 2)
(Note 3)Operating revenue
External customers
Inter-segment
Subtotal
Operating profit or loss (Note 3)
Share of profit (loss) of entities
accounted for using equity method(Note 3)
Amortization of intangible assets
associated with corporate acquisitions(Note 3)
Segment profit or loss
(Business profit or loss) (Note 3)
Segment assets

271,767

173,851

12,456

36,611

83,929578,616

2,043

580,660—

580,660

809

5,376

—

2,824

14,45523,46626

23,492(23,492)—

272,577

179,227

12,45639,436

98,384602,083

2,070

604,153(23,492)

580,660

22,42135,138

7,296

8,962

9,089

82,908(798)

82,110(5,776)76,333

(16)

57

—

13

163

217

(727)

(510)

—

(510)

—

273

291

—

29

594

30

624

—

624

22,40435,469

7,587

8,976

9,281

83,720(1,495)82,224(5,776)76,448505,976

1,160,805

42,86825,20150,095

1,784,946

89,237

1,874,184

47,122

1,921,306

516

16,892

300

496

745

18,950112

19,063958

20,021

529

973

—

87

262

1,852

72,63874,490576

75,067541

43,776

42

534

304

45,200210

45,410165

45,575

Other items
Depreciation
Investment in affiliates accounted forusing equity method
Increase in property, plant andequipment and intangible assets

Notes: 1. The “Other” category represents operating segments that are not included in reportable segments.
2. (1) The deduction of ¥5,776 million shown in the adjustments column for segment profit or loss (business profit or loss) includes elimination of intersegment
transactions of ¥1,730 million and a deduction of ¥7,507 million for corporate expenses not allocated to each reportable segment. These corporate expenses
mainly consist of general and administrative expenses not attributable to reportable segments.
(2) The addition of ¥47,122 million shown in the adjustments column for segment assets includes a deduction of ¥56,823 million for the elimination of intersegment transactions and an addition of ¥103,946 million for corporate assets not allocated to each reportable segment.
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.

Nomura Real Estate Holdings, Inc. 56 Financial Report 2022

Results by segment for the fiscal year ended March 31, 2022
(Millions of yen)
Reportable segments

Property
Property &Residential Commercial Investment Brokerage &Facility
Development Real Estate Management
CRE
Management

Subtotal

Other(Note 1)

Total

AmountRecorded in
Consolidated
Financial
Adjustments Statements(Note 2)
(Note 3)Operating revenue
External customers
Inter-segment
Subtotal
Operating profit or loss (Note 3)
Share of profit (loss) of entities
accounted for using equity method(Note 3)
Amortization of intangible assets
associated with corporate acquisitions(Note 3)
Segment profit or loss
(Business profit or loss) (Note 3)
Segment assets

308,214

195,524

12,72440,56485,334642,361

2,687

645,049—

645,049

1,011

6,935

79

3,198

13,89525,12067

25,188(25,188)—309,225

202,460

12,804

43,762

99,230667,4822,755

670,237(25,188)645,049

32,51938,286

7,515

11,713

9,114

99,148(711)

98,437(7,227)

91,210

27

30

—

3

61

122

772

895

—

895

3

273

321

—

29

628

31

659

—

659

32,55038,5907,836

11,716

9,205

99,90092

99,992(7,227)

92,765514,546

1,204,549

43,22035,78748,881

1,846,985

117,787

1,964,772

75,7332,040,506

486

16,071

298

538

750

18,146135

18,281808

19,089

556

1,011

—

95

323

1,987

92,711

94,698683

95,382

1,381

45,519

25

668

460

48,055300

48,3552,351

50,706

Other items
Depreciation
Investment in affiliates accounted forusing equity method
Increase in property, plant andequipment and intangible assets

Notes: 1. The “Other” category represents operating segments that are not included in reportable segments.
2. (1) The deduction of ¥7,227 million shown in the adjustments column for segment profit or loss (business profit or loss) includes elimination of intersegment
transactions of ¥2,426 million and a deduction of ¥9,653 million for corporate expenses not allocated to each reportable segment. These corporate expenses
mainly consist of general and administrative expenses not attributable to reportable segments.
(2) The addition of ¥75,733 million shown in the adjustments column for segment assets includes a deduction of ¥69,609 million for the elimination of intersegment transactions and an addition of ¥145,343 million for corporate assets not allocated to each reportable segment.
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.

Related Information
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
1. Information by product and service
Information by product and service is omitted because this same information is disclosed in “3. Information regarding sales, gains
or losses, assets, liabilities and other items by reportable segment.”
2. Information by region
Information by region is omitted because sales to external customers in Japan and the amount of property, plant and equipment
located in Japan exceeded 90% of sales in the Consolidated Statements of Income and the amount of property and equipment in
the Consolidated Balance Sheets.
3. Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% or more ofoperating revenue in the Consolidated Statements of Income.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Information by product and service
Information by product and service is omitted because this same information is disclosed in, “3. Information regarding sales, gains
or losses, assets, liabilities and other items by reportable segment.”
2. Information by region
Information by region is omitted because sales to external customers in Japan and the amount of property, plant and equipment
located in Japan exceeded 90% of sales in the Consolidated Statements of Income and the amount of property and equipment in
the Consolidated Balance Sheets.
3. Information by major customer
Information by major customer is omitted because there is no specific external customer that accounts for 10% or more ofoperating revenue in the Consolidated Statements of Income.

Nomura Real Estate Holdings, Inc. 57 Financial Report 2022

Impairment loss on noncurrent assets by reportable segment
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)

2021

Impairment loss

Residential
Development¥—

Commercial
Real Estate¥1,285Investment
Management¥—(Millions of yen)
Property
Property &Brokerage &Facility
CRE
Management

¥—

¥—

Other

¥—

Adjustment
amount¥—Total¥1,285

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)

2022

Impairment loss

Residential
Development¥—

Commercial
Real Estate¥568

Investment
Management¥—(Millions of yen)
Property
Property &Brokerage &Facility
CRE
Management

¥—

¥—

Other

¥—

Adjustment
amount

¥—

Total

¥568

Information on amortization of goodwill and the unamortized balance by reportable segment
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)

2021

Amortization
Balance at March 31, 2021

Residential
Development¥—¥—

Commercial
Real Estate

Investment
Management¥273¥2,508¥64¥1,173(Millions of yen)
Property
Property &Brokerage &Facility
CRE
Management

¥—
¥—

¥29
¥58

Other

¥30
¥411

Adjustment
amount

¥—
¥—

Total

¥397
¥4,151

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)

2022

Amortization
Balance at March 31, 2022

Residential
Development¥3¥75

Commercial
Real Estate

Investment
Management¥273¥2,234¥70¥1,228(Millions of yen)
Property
Property &Brokerage &Facility
CRE
Management

¥—
¥—

¥29
¥29

Information concerning gain on negative goodwill by reportable segment
Not applicable.

Nomura Real Estate Holdings, Inc. 58 Financial Report 2022

Other

¥31
¥425

Adjustment
amount

¥—
¥—

Total

¥408
¥3,993

23. Information on Related Parties
1. Transactions between the Company and related parties(1) Officers and major shareholders of companies submitting consolidated financial statements (limited to individuals), etc.
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)

Type

Stated capitalor capital
Voting rights
contribution Description of businessholding Relationship with
(Millions of yen)or profession
or held (%) the Company

Name

Location

Officer

Shigeyuki
Yamamoto——

Officer ofmajor
subsidiary

Shinji Ono——

Officer ofmajor
subsidiary

Toru Kamizono——

Officer

Toshiaki Seki——

Officer

Takashi Kaku——

Officer ofmajor
subsidiary

Juntaro Kimura——

Officer ofmajor
subsidiary

Katsuaki Mizuno——

Officer ofmajor
subsidiary

Kouichiro Suzuki——

Executive Officer of
the Company
Managing Executive
Officer of Nomura
Real Estate Urban
Net Co., Ltd.
Managing Executive
Officer of Nomura
Real Estate Urban
Net Co., Ltd.
Executive Vice
President andDirector
Executive Officer of
the Company
Representative
Director Chair of
Nomura Real Estate
Urban Net Co., Ltd.
Managing Executive
Officer of Nomura
Real Estate
Development Co.,Ltd.
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.

Transaction
details

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥15

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

15

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

14

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

12

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

12

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

10

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥10

—

—

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

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

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)

Type

Stated capitalor capital
Voting rights
contribution Description of businessholding Relationship with
(Millions of yen)or profession
or held (%) the Company

Name

Location

Officer ofmajor
subsidiary

Toshiaki Seki——

Officer ofmajor
subsidiary

MasaomiKatayama——

Officer ofmajor
subsidiary

Minoru Hatada——

Officer ofmajor
subsidiary

Shingo Iwakiri——

Officer ofmajor
subsidiarySeiichi Miyajima——

Officer ofmajor
subsidiary

Tetsuya Amano——

Officer

Akihiro Fukuda——

Officer

Hiroyuki Kimura——

Masatsugu
Matsuzaki——

Officer ofmajor
subsidiary

Director of Nomura
Real Estate Life &Sports Co., Ltd.
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.
Executive Vice
President andDirector of Nomura
Real Estate
Solutions Co., Ltd.
Audit & Supervisory
Board Member of
Nomura Real Estate
Partners Co., Ltd.
Senior President of
Nomura Real Estate
Development Co.,
Ltd.
Executive Officer of
Nomura Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Director of theCompany
President of Nomura
Real Estate Building
Co., Ltd.

Transaction
details

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥39

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

36

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

24

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

18

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

18

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

16

—

—

Held
0.0%
Held
0.0%

Exercise ofstock options
Exercise ofstock options

16

—

—

14

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

14

—

—

Exercise ofstock options
Exercise ofstock options

Nomura Real Estate Holdings, Inc. 59 Financial Report 2022

Type

Name

Advisor ofmajor
subsidiary

Location

Stated capitalor capital
Voting rights
contribution Description of businessholding Relationship with
(Millions of yen)or profession
or held (%) the Company

Atsushi
Yoshikawa——

Kenichi Maeda——

Takashi Katsuta——

Juntaro Kimura——

Officer ofmajor
subsidiary

Yuko Yoshida——

Officer

Daisaku Matsuo——

Officer

Toshihide
Tsukasaki——

Officer ofmajor
subsidiary

Kouichiro Suzuki——

Officer ofmajor
subsidiary

Masao Hirose——

Officer

Shigeyuki
Yamamoto——

Officer ofmajor
subsidiary

Fumiki Kondo——

Officer
Officer ofmajor
subsidiary
Officer ofmajor
subsidiary

Advisor of Nomura
Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Director of Nomura
Real Estate Life &Sports Co., Ltd.
Chair and Director of
Nomura Real Estate
Solutions Co., Ltd.
Executive Vice
President andDirector of Nomura
Real Estate AssetManagement Co.,
Ltd.
Executive Vice
President andDirector of theCompany
Executive Officer of
the Company
Managing Executive
Officer of Nomura
Real Estate
Development Co.,
Ltd.
Executive Officer of
Nomura Real Estate
Development Co.,
Ltd.
Executive Officer of
the Company
Director of Nomura
Real Estate AssetManagement Co.,
Ltd.

Transaction
details

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

Held
0.0%

Exercise of
Exercise ofstock options stock options

13

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

13

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

13

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

12

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

12

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

11

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

10

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

10

—

—

Held
0.0%

Exercise of
Exercise ofstock options stock options

¥10

—

—

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

Condominium
sales andoptional
construction

¥58

—

—

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

(2) Transactions between consolidated subsidiaries of the Company and related parties
Officers, major individual shareholders and others of the Company
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)

Type

OfficerName

Eiji Kutsukake

A company in which
officers and their
Kengo Kuma &close relatives own Associatesa majority of voting (Note 3)
rights
Officer

Tetsuro Higashi

Stated capitalor capital
Description of Voting rights
contribution
business or
holding
Relationship with
Location (Millions of yen) profession
or held (%)
the Company

Condominium
sales andoptional
construction

Transaction
details

—

—

—

Held
0.0%

Minato-ku,
Tokyo

10

Architectural
Design—Outsourcing of Outsourcing ofdesign-related design-related
work
work

42

—

—

—

—

—

—

Condominium Condominium
sales
sales

¥40

—

—

Amount oftransaction(Millions of yen)

Items

Fiscal year-end
balance(Millions of yen)

¥335

—

—

¥33

—

—

Notes: 1. Amount of transaction does not include consumption taxes.
2. Terms of transactions are determined in the same way as for generally accepted practices and with reference to market prices.
3. Satoko Shinohara, the Director of the Company, and her close relatives own the majority of voting rights.

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)

Type

Officer of major
subsidiary

Name

Hideki Saitou

Officer and his/her Close relatives ofclose relatives
Eiji KutsukakeStated capitalor capital
Description of Voting rights
contribution
business or
holding
Relationship with
Location (Millions of yen) profession
or held (%)
the Company——

Executive
Officerof NomuraReal Estate
Solutions Co.,
Ltd.

—

—

—

Held
0.0%

—

Purchase oflandTransaction
details

Purchase of
land

Condominium Condominium
sales
sales

Notes: 1. Amount of transaction does not include consumption taxes.
2. Terms of transactions are determined in the same way as for generally accepted practices and with reference to market prices.

Nomura Real Estate Holdings, Inc. 60 Financial Report 2022

24. Per Share Information(Yen)

Net assets per share
Basic earnings per share
Diluted earnings per share

2021

2022

¥3,229.80
232.53¥231.73¥3,478.14
307.81¥306.89

The basis for the calculation of basic earnings per share and diluted earnings per share is as follows.
Basic earnings per share
Profit attributable to owners of parent(Millions of yen)
Profit not attributed to common shareholders(Millions of yen)
Profit attributable to owners of parent available to common stock(Millions of yen)
Average number of shares of common stock outstanding during the period(Thousand shares)
Diluted earnings per share
Adjustment for profit attributable to owners of parent(Millions of yen)
Increase in number of shares of common stock(Thousand shares)
Of which, share acquisition rights(Thousand shares)
Description of potentially dilutive common shares not included in the computationof diluted earnings per share because of their anti-dilutive effect

2021

2022

¥42,198¥55,312——42,19855,312

181,479

179,695

—

—

622

540

(622)
Nomura Real Estate
Holdings, Inc. the 3rd
Share Acquisition Rights
in FY2016/3 (Number ofrights: 3,142)
Nomura Real Estate
Holdings, Inc. the 5th
Share Acquisition Rights
in FY2016/3 (Number ofrights: 220)
Nomura Real Estate
Holdings, Inc. the 3rd
Share Acquisition Rights
in FY2018/3 (Number ofrights: 4,356)

(540)
—

Note: For the purposes of calculating net assets per share, the Company’s shares owned by the executive compensation BIP (Board Incentive Plan) trust and ESOP
(Employee Stock Ownership Plan) are included in the treasury shares deducted from the total number of shares issued at end of period. In calculating the basic
earnings per share and diluted earnings per share, the said shares are included in the treasury shares deducted in the calculation of the average number of shares
outstanding during the period. For the fiscal year ended March 31, 2021, the number of the treasury shares at the end of period deducted in calculating net assets
per share was 1,962 thousand shares and 2,522 thousand shares for the fiscal year ended March 31, 2022, and the average number of treasury shares during theperiod deducted in calculating the basic earnings per share and diluted earnings per share was 1,964 thousand shares for the fiscal year ended March 31, 2021
and 2,300 thousand shares for the fiscal year ended March 31, 2022.

25. Significant Subsequent Events
Not applicable.

Nomura Real Estate Holdings, Inc. 61 Financial Report 2022

26. Consolidated Supplemental Schedules
Schedule of Bonds Payable

Name

Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.
Nomura Real Estate
Holdings, Inc.

Nomura Real Estate
Holdings, Inc.

Description

Balance at theBalance at the
beginning of
end of current
current fiscal year
fiscal year
(Millions of yen) (Millions of yen) Interest rate (%) Collateral

Date of issuance

Maturity

4th unsecured bonds

October 28,
2014

10,00010,0000.8

None

5th unsecured bonds

June 1, 2015

10,00010,0000.9

None

7th unsecured bonds

January 28,
2016

10,00010,0000.8

None

8th unsecured bonds

June 2, 2016

10,000

—

0.2

None

9th unsecured bonds

June 2, 2016

10,00010,0001.0

None

September 12,
2017
September 12,
2017

10,00010,000(10,000)

0.2

None

10,00010,000

1.0

None

12th unsecured bonds

June 2, 2020

20,00020,0000.1

None

13th unsecured bonds

June 2, 2020

10,00010,0000.2

None

14th unsecured bonds

June 2, 2020

10,00010,0000.5

None10,00010,0000.4

None30,00030,0001.3

None

March 13,2058

20,00020,0001.5

None

March 12,2060

170,000

160,000(10,000)———

10th unsecured bonds
11th unsecured bonds

15th unsecured bonds
February 26,(Sustainability bonds)
2021
Unsecured bonds with 1st deferredinterest payment clause/early
March 13,redemption clause
2018(with subordination agreement)
Unsecured bonds with 2nd deferredinterest payment clause/early
March 13,redemption clause
2018(with subordination agreement)
—

Total

—

October
28, 2024
May 30,2025
January
28, 2026
June 2,
2021
June 2,2036
September
12, 2022
September11, 2037
June 9,2023
June 9,2025
June 7,2030
February
26, 2031

Notes: 1. The figures in parentheses are the scheduled redemption amounts within one year.
2. The scheduled redemption amounts for the five years subsequent to the end of the fiscal year ended March 31, 2022 are as follows.
Due within one year

Due after one year but
within two years

Due after two years but
within three years(Millions of yen)

Due after three years but
within four years

10,00020,00010,00030,000Category

Balance at the beginningof current fiscal year
(Millions of yen)

Balance at the end ofcurrent fiscal year
(Millions of yen)

Average interest rate (%)

Maturity

Short-term borrowings
Current portion of long-term borrowings
Current portion of lease liabilities
Long-term borrowings (excluding current portion)
Lease liabilities (excluding current portion)
Total¥31,000
56,000226
751,500
1,898¥840,625¥39,500
69,000255
754,235
1,791¥864,783

0.2
0.6
—
0.8
—
—

—
—
—
2023 to 2040
2023 to 2036
—

Bonds

Due after four years but
within five years—

Schedule of Borrowings

Notes: 1. For the average interest rate, the weighted average interest rate for the balance of borrowings at year-end borrowings is stated.
2. The average interest rate on lease liabilities is not stated because some consolidated subsidiaries record lease liabilities on the consolidated balance sheet at an amount
before deducting the interest equivalent amount included in the total lease fees.
3. The scheduled redemption amounts of long-term borrowings payable and lease liabilities (excluding current portion) for the five years subsequent to the end of the fiscal year
ended March 31, 2022 are as follows.
Due after one year but
Due after two years but
Due after three years but
Due after four years but
within two years
within three years
within four years
within five years(Millions of yen)

Long-term borrowings
Lease liabilities¥78,946289¥64,789249¥120,000
249¥73,000
194

Schedule of Asset Retirement Obligations
The schedule of asset retirement obligations at the beginning and end of the fiscal year is omitted in accordance with paragraph92-2 of the Regulations for Consolidated Financial Statement because the amounts of asset retirement obligations were not larger
than 1% of total liabilities and net assets at the beginning and end of the fiscal year.

Nomura Real Estate Holdings, Inc. 62 Financial Report 2022

OtherQuarterly financial information for the fiscal year ended March 31, 2022
Cumulative period

1st Quarter(Three months ended
June 30, 2021)

2nd Quarter(Six months ended
September 30, 2021)

3rd Quarter(Nine months ended
December 31, 2021)

4th Quarter(Fiscal year ended
March 31, 2022)

Operating revenue (Millions of yen)
Profit before income taxes (Millions of yen)
Profit attributable to owners of parent (Millions of yen)
Basic earnings per share (Yen)¥146,544
27,13818,606103.16¥257,126
34,456
23,513130.43¥361,004
39,873
26,859149.15¥645,049
81,05255,312307.81Each quarter

1st Quarter(Three months ended
June 30, 2021)

2nd Quarter(Three months ended
September 30, 2021)

3rd Quarter(Three months ended
December 31, 2021)

4th Quarter(Three months ended
March 31, 2022)

Basic earnings per share (Yen)¥103.16¥27.23

Nomura Real Estate Holdings, Inc. 63 Financial Report 2022

¥18.62¥159.30

Independent Auditor’s Report

The Board of Directors
Nomura Real Estate Holdings, Inc.
OpinionWe have audited the accompanying consolidated financial statements of Nomura Real Estate Holdings, Inc.
(the Company) and its consolidated subsidiaries (the Group), which comprise the consolidated balance sheet
as at March 31, 2022, and the consolidated statements of income, comprehensive income, changes in net
assets, and cash flows for the year then ended, and notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at March 31, 2022, and its consolidated
financial performance and its consolidated cash flows for the year then ended in accordance withaccounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of
the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Valuation of housing held for sale
Description of Key Audit Matter

Auditor’s Response

The Company records real estate for sale of ¥371,504
million, real estate for sale in process of ¥333,860 million
and land held for development of ¥188,417 million underinventory on the consolidated balance sheet of which theprimary components are housing held for sale(hereinafter, “housing for sale”), mainly the development

We performed the following procedures in relation to theassessment of the write-downs of housing for sale, among
others.
 In order to understand factors affecting the property
valuation, such as changes in the sales policies, we
reviewed the minutes of the board of directors’

Nomura Real Estate Holdings, Inc. 64 Financial Report 2022

and sales of condominiums in Japan, and also domestic
commercial properties held for sale to real estate funds,
such as REITs, and other businesses.

meetings and other meetings and made inquiries ofmanagement and the relevant departments andevaluated whether those factors were considered in
the valuation.
With regard to selling prices, which are a significant
assumption, we considered the following for each
property according to the stage of progress reached inselling the property.

Housing for sale is subject to risks such as declines inselling prices and increases in construction and sales costs driven by housing for sale market trends, changes inlifestyles and workstyles accelerated by the COVID-19
pandemic, development delays and other various reasons,which may result in write-downs.
(1) Properties not yet available for sale
In order to review the selling price of properties for
The amount of write-downs of housing for sale iswhich profit margins included in the respective
measured by comparing net realizable value with thebusiness plans were below a certain threshold, webook value. Net realizable value is calculated bycompared the selling prices and transaction results ofdeducting sales costs from the selling price of properties,
comparable properties in the same area that wereand in case of property under development, also
referenced by the Company when setting the pricededucting estimated construction costs to be incurred inwith available external data.
the future. The Company estimates the selling price of aproperty based on the sales price included in the business (2) Properties available for saleplan for properties not yet available for sale. For
We compared the selling price with the contract priceproperties available for sale, the selling price is estimatedin the same project, and made inquiries ofbased on the recent contract price of other comparable
management and the relevant departments about theproperty included in the same project.
possibility of changes to the sales policies. In
addition, for certain properties whose sales progress
Management may revise selling prices for reasons related
was delayed compared with the plan, we conductedto their sales strategies. Also, there is a possibility that
onsite visits and made inquiries of the sales manager
additional construction costs may be incurred due toof the property on the sales progress and the policies
events not anticipated in the business plan.
and reviewed documents related to sales activities.
The significant assumptions in the calculation of the net
realizable value are selling prices and additional construction costs. The characteristics of housing for salesuch as location, concept and type, sales strategy, andprogress of sales and development vary. As a result, each
property needs to be assessed on an individual basis evenif overall market conditions are favorable.
We have determined valuation of housing for sale to be a
key audit matter, since we need to assess thereasonableness of management judgement related to thesignificant assumptions above by taking into
consideration a combination of multiple factors related to
specific properties.

With regard to additional construction costs, which
are a significant assumption, we made inquiries ofmanagement and the relevant departments on the
progress of development and whether there have been
any events not anticipated in the business plan ordelays, as well as the prospective development period
and the possibility and amount of any additional
construction costs to be incurred and reviewed thequotations from external contractors and considered
the impact on the valuation.

Valuation of commercial property held for sale
Description of Key Audit Matter

Auditor’s Response

The Company records real estate for sale of ¥371,504
million, real estate for sale in process of ¥333,860 million
and land held for development of ¥188,417 million underinventory on the consolidated balance sheet of which theprimary components are housing held for sale, mainly thedevelopment and sales of condominiums in Japan, anddomestic commercial properties held for sale to real estate
funds, such as REITs, and other businesses (hereinafter,“commercial property for sale”).

We performed the following procedures in relation to theassessment of write-downs of commercial property held
for sale, among others.
In order to understand factors affecting the valuationsuch as difficulties in making leasing arrangements,
we reviewed the minutes of the board of directors’
meetings and other meetings and made inquiries ofmanagement and the relevant departments andNomura Real Estate Holdings, Inc. 65 Financial Report 2022

Commercial property for sale is subject to risks such as
trends in the commercial property market as well as
development delays, difficulties in making leasing 
arrangements and changes in buyer preferences or thefinancing environment, which may result in declines inselling prices and therefore write-downs.
The amount of write-downs of commercial property forsale is measured by comparing net realizable value withthe book value. Net realizable value is calculated by 
deducting sales costs from the selling price of properties,
and in case of property under development, also
deducting estimated construction costs to be incurred in 
the future. The Company’s selling price is based on theplanned sales price included in the business plan for each
property. The Company uses a valuation report preparedby an independent third-party real estate appraiser(hereinafter referred to as “external evaluation”) for eachof the properties that the Company recognizes as subject
to relatively higher risks based on its own risk criteria in
determining which properties require an external
evaluation due to factors such as delays in leasing theproperty.

evaluated whether those factors were considered in
the valuation.
We evaluated the risk criteria established by theCompany to determine which property require an
external evaluation, and examined whether theCompany then obtained external evaluations
following the determination in accordance with such
criteria.
We evaluated the expertise, capabilities, andobjectivity of the external real estate appraisers
engaged by the Company.
We reviewed all external evaluations used by theCompany. Furthermore, we selected certain
properties using our own specific criteria andcompared the rents, occupancy rates, and discountrates, which are significant assumptions used for thevaluation, with past performance and publicly
available external data such as information disclosed
by listed REITs.

The significant assumptions in the calculation of net
realizable value are the rents, occupancy rates, anddiscount rates as factors in calculating the selling price.
These assumptions should reflect the individual
circumstances and risks for each property. In particular,
for property under development that is not yet available
for lease and property for which specifications and uses
are less common and limited to certain particular users,
the subjectivity of these assumptions become relatively
higher.
In addition, the Company holds numerous commercial
properties for sale, and must extensively consider various
factors and specific circumstances for each property in its
evaluation, which is complex. Moreover, the book valueof each commercial property for sale is significant, andthe potential impact on the consolidated financial
statements in case of write-downs is also significant.
Therefore, we have determined valuation of commercial
property for sale to be a key audit matter.
Impairment of commercial property mainly held for leasing business
Description of Key Audit Matter

Auditor’s Response

The Company records property, plant and equipment of¥726,386 million and intangible assets of ¥19,933 million
on the consolidated balance sheet. The main components
are real estate used for domestic office space, commercial
facilities, logistics facilities, and hotels (hereinafterreferred to as “rental property”).

We performed the following procedures on the estimationof market prices and future cash flows in thedetermination of indications of impairment and of
impairment loss recognition of the rental property, among
others.

Nomura Real Estate Holdings, Inc. 66 Financial Report 2022

Rental property is exposed to risks such as changes in 
market conditions for rental properties, and furthermore,decreases in rents, average daily rates (ADR), occupancy
rates and/or market prices may bring its book value to be
irrecoverable. Those risks vary depending on thecharacteristics of each property such as type, use,
location, and building specifications.
In impairment testing of rental property, the Company
must determine whether or not any indications of
impairment exist, and if so, the Company must determine 
whether recognizing an impairment loss is necessary.
In assessing whether there is any decline in market prices,which is one indicator of impairment, the Company uses a valuation report prepared by an independent third-party
real estate appraiser (hereinafter, “external evaluation”) in
determining the market price. Also, the Company mainly
uses external evaluations to calculate the undiscounted
future cash flows that are compared against the bookvalue in assessing whether recognizing any impairment
loss is necessary; for certain properties, internal estimates
are made without using the external evaluations.
Rents, ADR, occupancy rates, and discount rates, which 
are significant assumptions used in both the external
evaluations and the internal estimates to calculate themarket price and future cash flows, should reflect theindividual circumstances and risks for each property. In
particular, for properties with variable rents and propertyof which specifications and uses are not common andlimited to certain particular users, the subjectivity of suchassumptions become relatively higher.

In order to understand factors affecting the valuationsuch as major tenants vacating the properties and/or
building reconstructions as well as the occupancy ofproperties, we reviewed the minutes of the board of
directors’ meetings and other meetings, madeinquiries of management and the relevant
departments, and for certain properties, conducted
onsite visits, and evaluated whether those factors
were considered in the impairment assessment.
We evaluated the expertise, capabilities, andobjectivity of external real estate appraisers engaged
by the Company.
To assess the decline in market price in identifying
indications of impairment, we selected certain
properties using specific criteria and reviewed
external evaluations used by the Company andcompared the rents, ADR, occupancy rates, anddiscount rates, which are significant assumptions
used for the valuation, with past performance andpublicly available external data such as information
disclosed by listed REITs.
For the properties of which indications of impairment
were identified, we compared the rents, ADR, andoccupancy rates for the estimated periods, which aresignificant assumptions for the undiscounted future
cash flows with past performance and publicly
available external data such as information disclosed
by listed REITs.

In addition, the Company has numerous rental properties,
and is required to comprehensively consider the uniquecharacteristics of each property in the valuation, which iscomplex. Moreover, the book value of each rental
property is significant and the potential impact on the
consolidated financial statements in case of impairment isalso significant. Therefore, we have determined
impairment of rental property to be a key audit matter.

Nomura Real Estate Holdings, Inc. 67 Financial Report 2022

Other Information
The other information comprises the information included in Financial Report that contains
audited consolidated financial statements but does not include the consolidated financial
statements and our audit report thereon. Management is responsible for preparation and disclosureof the other information. The Audit and Supervisory Committee is responsible for overseeing theGroup’s reporting process of the other information.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to readthe other information and, in doing so, consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.
If, based on the work we have performed, we concl ude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, and forsuch internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Audit and Supervisory Committee is responsible for overseeing the Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether d ue to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit . We also:・ Identify and assess the risks of material misstatement of the consolidated financial statements,
Nomura Real Estate Holdings, Inc. 68 Financial Report 2022

whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt o n the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation inaccordance with accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicate with the Audit and Supervisory Committee regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Audit and Supervisory Committee with a statement that we have compliedwith the ethical requirements regarding independence that are relevant to our audit of theconsolidated financial statements in Japan, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and w here applicable,
related safeguards.
From the matters communicated with the Audit and Supervisory Committee, we determine thosematters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter should not be communicated in our repor t because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Nomura Real Estate Holdings, Inc. 69 Financial Report 2022

Ernst & Young ShinNihon LLC
Tokyo, Japan
June 24, 2022
/s/ Toshihiro Morishige
Toshihiro Morishige
Designated Engagement Partner
Certified Public Accountant/s/ Kenji Sato
Kenji Sato
Designated Engagement Partner
Certified Public Accountant/s/ Natsuki Saiki
Natsuki Saiki
Designated Engagement Partner
Certified Public Accountant

Nomura Real Estate Holdings, Inc. 70 Financial Report 2022