October 29, 2015

Outline of Consolidated Financial Statements
For the Six Months from April 1 to September 30, 2015
Name of company listed :Nomura Real Estate Holdings, Inc.

Shares traded :TSE (First section)

Code number :

3231

URL :

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

Representative :Eiji Kutsukake, President

IR contact :Naoko Usami, General Manager of Corporate Communications& Investor Relations Dept.
info@nomura-re-hd.com

Scheduled submitting date of quarterly securities report :November 13, 2015

Scheduled starting date for dividend payments :December 1, 2015

Preparation of explanatory materials for financial results :YesInformation meetings arranged related to financial results :Yes (for institutional investors and analysts, in Japanese)

Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purpose. All statements were basedon Tanshin report prepared in accordance with the provisions set forth in accounting regulations and principals generally accepted in Japan.
(Values of less than one million yen rounded off.)I.

Consolidated Operating Results for the Six Months from April 1 to September 30, 2015
(1) Consolidated business results(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating income

Profit attributable toOrdinary income

owners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2015292,905

20.5

40,751

39.5

36,59948.1

22,46892.3

FY2014

243,074(3.5)

29,208(19.9)

24,718(20.6)

11,684(33.4)First six months(Note) Comprehensive income:From April 1 to September 30, 2015 ¥23,345 million (up 42.7%)
From April 1 to September 30, 2014 ¥16,354 million (down 2.5%)
Earnings per share after
adjusting for dilution

Earnings per shareFirst six months

yen

yen

FY2015117.45116.96FY2014

61.20

60.99

(2) Consolidated financial status
Total assets

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Sep. 30, 2015

1,397,987

438,793

30.6

Mar. 31, 2015

1,369,226

461,031

28.8(Reference) Shareholders’ equity:

At September 30, 2015 ¥ 427,696 million

1

At March 31, 2015 ¥394,059 million

II. Dividends
Dividend per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

yen

yen

yen

yen

FY2014

―

20.00

―

25.00

45.00

FY2015

―

27.50
―

27.50

55.00

FY2015(Forecast)(Note) Revision of dividend forecasts during this quarter: Yes

For the revision of dividend forecasts, please refer to “Notice of Revision of Financial Result and Dividend Forecasts of FY2015”
released today (October 29, 2015).

III. Forecasts of Consolidated Operating Results for the Fiscal Year from April 1, 2015 to March 31, 2016(% indicates the rate of changes from previous fiscal year or term)

Operating revenue

FY2015

Operating income

Profit attributable toOrdinary income

owners of parent

Earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

575,000

1.4

76,000

5.7

67,0005.2

40,0004.1

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

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

: Yes

2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

Restatements: None(Note) Please refer to the Appendix P.8 “2. Summary Information (Notes), (1) Changes in Accounting Policies, Accounting
Estimates, and Restatements” for more details.
(4) Number of shares issued (common stock)1)

Number of shares outstanding (including treasury shares)

2)

Treasury shares

3)

Average number of shares during the term

At September 30

At March 31

2015

2015

191,619,301

191,119,700

1,269

1,206

From April 1 toFrom April 1 to

September 30

September 30

2015

2014

191,304,867

2

190,926,251

* Implementation status of quarterly auditing procedure
The financial summary and the accompanying materials including the consolidated financial statements are not subject to the quarterly
review procedure by external auditors that are based on Financial Instruments and Exchange Act. The quarterly review procedure has not
yet finished at the point of releasing this financial summary.
* Use of earnings forecasts and other special remarks(Forward-looking statements)
Certain statements other than historical facts in this document are forward-looking statements that reflect the company’s plans andestimates based on currently available information. Therefore, the Company has no intention to promise the accomplishment of theforecasts. These statements include known and unknown risks, uncertainties, and other factors that may cause the company’s actual future
performance to differ from the forward-looking statements contained herewith. For the detail of forecasts, please refer to the Appendix P.7“1. Qualitative Information (3) Consolidated Operating Result Forecasts.”(How to obtain fact sheets)
The fact sheets will be disclosed on TDnet on October 29, 2015 and will be uploaded on the Company's website.

3Appendix - Contents
1. Qualitative Information .................................................................................................................................................................................

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

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

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

7

2. Summary Information (Notes) ....................................................................................................................................................................

8(1) Changes in Accounting Policies, Accounting Estimates, and Restatements ...........................................................................

8

3. Quarterly Consolidated Financial Statements ............................................................................................................................................

9(1) Quarterly Consolidated Balance Sheets ........................................................................................................................................

9(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income........

11

Quarterly Consolidated Statements of Income
Six Months from April 1 to September 30, 2015 ....................................................................................................................

11

Quarterly Consolidated Statements of Comprehensive Income
Six Months from April 1 to September 30, 2015 ....................................................................................................................

12(3) Quarterly Consolidated Statement of Cash Flows ......................................................................................................................

13(4) Notes to Quarterly Consolidated Financial Statements ..............................................................................................................

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

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

15(Segment Information) ....................................................................................................................................................................

151

1. Qualitative Information(1) Business Results
The Nomura Real Estate Group posted the following consolidated performance for the current second quarter: Operating revenue of
292,905 million yen, which represents an increase of 49,831 million yen, or 20.5% year on year; operating income of 40,751 million yen,
an increase of 11,543 million yen, or 39.5%; ordinary income of 36,599 million yen, an increase of 11,880 million yen, or 48.1%; andprofit attributable to owners of parent of 22,468 million yen, an increase of 10,784 million yen, or 92.3%.
An overview of segment achievements is given below:
Operating revenue for each segment includes internal sales and transfer amount among segments. Due to the rounding of fractions,
total figures may not match.
From the first quarter, MEGALOS Co., Ltd., which used to be classified in the “Other Business Segment,” and Nomura Real Estate
Wellness Co., Ltd., which was newly established in the first quarter, were transferred to the “Property & Facility Management Business
Segment” in order to promote the unification of operations.
In line with these changes, the results of the second quarter and full-year of the previous fiscal year were calculated under the newly
adopted segment classification.
<Residential Development Business Segment>
Operating revenue in this segment totaled 192,876 million yen, which represents an increase of 51,151 million yen, or 36.1% year on
year, and operating income was 21,310 million yen, an increase of 10,168 million yen, or 91.3%.
This was mainly due to an increase in the number of housing units sold and a rise in sales price and profitability of recorded properties
in housing sales sector.
Housing sales have remained strong, and we posted the sale of 3,417 units (an increase of 490 units year on year), including Tomihisa
Cross Comfort Tower (Shinjuku-ku, Tokyo), Sakurajosui Gardens (Setagaya-ku, Tokyo), OHANA Hachioji Oak Court (Hachioji-shi,
Tokyo), Kyoto Katsuragawa Tsumugi-no-machi Gran Square (Minami-ku, Kyoto-shi, Kyoto) for condominiums, and PROUDSEASON Kami-Yoga (Setagaya-ku, Tokyo) for detached houses.
The number of sold but not recorded housing units totaled 3,634 units as of the end of the current second quarter (a decrease of 2,466
units over the end of the previous second quarter).
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on the Group’s
share.
Breakdown of operating revenue
FY2014 2Q

FY2015 2Q

Operating revenue
Housing units sold

Housing
sales

Tokyo

(Millions of yen)

FY2014

Operating revenue
Housing units sold(Millions of yen)

Operating revenue
Housing units sold(Millions of yen)

2,401 units

116,518

3,120 units

171,2115,426 units

270,397

Kansai area

242 units

9,267

232 units

9,321

1,009 units

37,542Other

283 units

11,68364 units

3,316

585 units

25,059Subtotal

2,927 units

137,469

3,417 units

183,849

7,021 units

332,999(Detached houses)(323 units)(17,291)(174 units)(11,795)(859 units)(50,573)

metropolitan area

Other
Total

4,256

9,027

26,397

141,725

192,876359,3972

Housing sales Period-end completed housing inventories
As of September 30, 2014
Tokyo metropolitan area

As of September 30, 2015

As of March 31, 2015172 units

133 units

76 units

Kansai area-

13 units

13 units

Other-

13 units-

Total

172 units

160 units

89 units(Detached houses)(6 units)(59 units)(64 units)

Housing sales Sold but not recorded housing units
As of September 30, 2014

As of September 30, 2015

Outstanding

Outstanding

Housing units

contract amount

Housing units(Millions of yen)contract amount

As of March 31, 2015
Outstanding
Housing units(Millions of yen)contract amount(Millions of yen)

Tokyo metropolitan area

4,886 units

269,979

2,508 units

152,360

3,924 units

221,375

Kansai area

803 units

29,075688 units

31,077497 units

22,746

Other

410 units

18,109437 units

19,881345 units

15,773

Total

6,100 units

317,164

3,634 units

203,318

4,767 units

259,895(Detached houses)(125 units)(8,216)(106 units)(6,508)(51 units)(4,438)<Leasing Business Segment >Operating revenue in this segment totaled 42,859 million yen, which represents a decrease of 5,158 million yen, or 10.7% year on year,
and operating income totaled 13,239 million yen, an increase of 117 million yen, or 0.9%.
This was mainly due to the fact that progress in leasing up of Hamamatsucho Building (Minato-ku, Tokyo) contributed to an increase
in revenue and income in leasing business sector, while property sales decreased in property development sector.
From the current second quarter, the classification of the breakdown of operating revenue has been changed. According to this change,
the figures for the second quarter and full year results of the previous fiscal year were calculated under the new classification.
Breakdown of operating revenue
FY2014 2Q

FY2015 2Q

FY2014(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)23,302

24,69546,563

Leasing (retail facilities)

5,287

5,351

10,323

Leasing (other)

2,770

2,922

5,552

Property development (sale)

7,429

4,496

12,318Property development (leasing)

1,328

1,842

3,167

Other

7,900

3,550

14,95348,01842,85992,878Total

3

Rentable area
As of September 30, 2014

As of September 30, 2015

As of March 31, 2015

Offices

781,752 ㎡

828,171 ㎡

822,049 ㎡

Retail facilities

106,601 ㎡

108,178 ㎡

106,580 ㎡

888,353 ㎡

936,348 ㎡

928,628 ㎡

Total

Vacancy rate (offices and retail facilities)
As of September 30, 2014

As of September 30, 2015
6.3%

As of March 31, 2015
3.4%

4.5%

<Investment Management Business Segment>
Operating revenue in this segment totaled 5,096 million yen, which represents an increase of 537 million yen, or 11.8% year on year,
and operating income totaled 3,372 million yen, an increase of 1,040 million yen, or 44.6%.
This was mainly due to the fact that dividend income associated with the sale of SPC’s property was recorded on sales in the current
second quarter.
FY2014 2Q

FY2015 2Q

FY2014(Millions of yen)

(Millions of yen)

(Millions of yen)

Operating revenue

4,559

5,096

9,166

Assets under management
As of September 30, 2014

As of September 30, 2015

As of March 31, 2015

(Millions of yen)

(Millions of yen)

(Millions of yen)REITs

965,229

1,024,271

1,011,029

Private funds, etc.

132,123

73,102

112,159

1,097,352

1,097,374

1,123,188

Total<Property Brokerage & CRE Business Segment>
Operating revenue in this segment totaled 15,007 million yen, which represents an increase of 1,611 million yen, or 12.0% year on year,
and operating income totaled 3,406 million yen, an increase of 233 million yen, or 7.4%.
In retail operations, we opened the following new branch stores: Kohoku New Town Center (Tsuzuki-ku, Yokohama-shi, Kanagawa)and Ibaraki Center (Ibaraki-shi, Osaka) in April 2015, and Oimachi Center (Shinagawa-ku, Tokyo) in May 2015.
Breakdown of operating revenue
FY2014 2Q

FY2015 2Q

FY2014(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

11,277

12,63625,833

Other

2,118

2,371

4,399

13,39615,00730,232

Total

Number of transactions and total transaction value of property brokerage
FY2014 2Q
Number of transactions
Total transaction value (Millions of yen)

FY2015 2Q

FY2014

3,357

3,732

7,174

314,916

315,924

710,9804

<Property & Facility Management Business Segment>
Operating revenue in this segment totaled 42,455 million yen, which represents an increase of 1,937 million yen, or 4.8% year on year,
and operating income totaled 2,326 million yen, an increase of 163 million yen, or 7.6%.
In fitness club business sector, we opened MEGALOS Nakanobu (Shinagawa-ku, Tokyo) in May 2015, Dayos 24 Kita-Ayase(Adachi-ku, Tokyo) in June 2015, and Dayos 24 Keio-Hachioji Ekimae (Hachioji-shi, Tokyo) in September 2015.
From the first quarter, the breakdown of operating revenue for this segment has been changed due to the fact that MEGALOS Co., Ltd.,
which used to be classified in the “Other Business Segment,” and newly established Nomura Real Estate Wellness Co., Ltd. wereclassified in the “Property & Facility Management Business Segment.” In line with these changes, the figures for the second quarter andfull-year results of the previous fiscal year are classified under the new classification.
Breakdown of operating revenue
FY2014 2Q

FY2015 2Q

FY2014(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

24,46325,05149,511

Construction ordered

8,722

9,994

21,583Fitness club & elderly care

7,331

7,408

14,74240,51742,45585,837

Total

Number of properties under management
As of September 30, 2014

As of September 30, 2015

716

736

729

151,641

160,100

155,706

Buildings under management
Condominiums under management (unit)

As of March 31, 2015

<Other Business Segment>
Operating revenue in this segment totaled 773 million yen, which represents an increase of 77 million yen, or 11.1% year on year, andoperating loss totaled 80 million yen (the previous second quarter was operating loss of 160 million yen).

5(2) Financial Position
As of March 31, 2015

As of September 30, 2015

Changes

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)(%)

Total assets

1,369,226

1,397,987

28,761

2.1

Total liabilities

908,195

959,193

50,998

5.6

Net assets

461,031438,793(22,237)(4.8)

Shareholders' equity ratio

28.8%

30.6%

-

-

Total assets totaled 1,397,987 million yen, an increase of 28,761 million yen from the end of the previous fiscal year. This was mainly
due to an increase in land (increased by 26,865 million yen) and notes and accounts receivable - trade (increased by 19,469 million yen),while equity investments (decreased by 5,310 million yen) and buildings and structures (decreased by 4,627 million yen) decreased.
Total liabilities totaled 959,193 million yen, an increase of 50,998 million yen from the end of the previous fiscal year. This was mainly
due to an increase in long-term loans payable (increased by 46,200 million yen) and deposits received (increased by 39,224 million yen),while short-term loans payable (decreased by 23,400 million yen) and notes and accounts payable - trade (decrease by 12,039 million
yen) decreased.
Net assets totaled 438,793 million yen, a decrease of 22,237 million yen from the end of the previous fiscal year. This was mainly due
to a decrease in non-controlling interests (decreased by 56,011 million yen), while retained earnings (increased by 17,690 million yen)
and capital surplus (increased by 16,268 million yen) increased.
The shareholders' equity ratio was 30.6%, an increase of 1.8 points from the end of the previous fiscal year.
(Cash Flows)
Cash and cash equivalents as of the end of the current second quarter totaled 44,331 million yen, which represents a decrease of 6,086
million yen from the end of the previous fiscal year.
Net cash provided by (used in) operating activities increased by 37,438 million yen (an increase of 61,383 million yen year on year).
This was mainly due to an increase in deposits received and a decrease in equity investments, while income taxes were paid.
Net cash provided by (used in) investment activities decreased by 30,154 million yen (a decrease of 12,550 million yen year on year).
This mainly reflected the purchase of property, plant and equipment and intangible assets.
Net cash provided by (used in) financing activities decreased by 13,374 million yen (a decrease of 35,182 million yen year on year).
This mainly reflected payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation,
while funding through long-term loans payable and issuance of bonds was implemented.

6(3) Consolidated Operating Result Forecasts
The consolidated operating result forecasts for the fiscal year ending March 31, 2016 were revised from the figures announced on April
30, 2015, due to the fact that the performance of Investment Management Business and Leasing Business is expected to grow than theinitial forecasts as a result of considering future outlook based on the results of the current second quarter.
<Consolidation>
The Group expects the following consolidated performance for the fiscal year ending March 31, 2016: Operating revenue of 575,000
million yen; operating income of 76,000 million yen; ordinary income of 67,000 million yen; and profit attributable to owners of parentof 40,000 million yen.
Changes from the previous consolidated result forecasts are as follows:
Profit attributable

Operating revenue

Operating income

Ordinary income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)585,000

73,00064,00038,000198.83

Revised forecasts (B)575,000

76,00067,00040,000208.92

Changes (B-A)(10,000)

3,000

3,000

2,000

-

Changes (%)

(1.7)

4.1

4.7

5.3

-

567,159

71,894

63,681

38,441201.28Actual results for theprevious fiscal year

Earnings per shareto owners of parent<By business segment>
Forecasts for the fiscal year ending March 31, 2016 by business segment are as follows:
Operating revenue
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

357,000

343,000(14,000)

Leasing

108,000

110,000

2,000

Investment Management

8,000

11,0003,000

Property Brokerage & CRE

32,00032,000-Property & Facility Management

91,00091,000

-

Other

1,000

1,000

-

Adjustments(12,000)(13,000)(1,000)

Total

585,000

575,000(10,000)

Operating income
Previous forecasts

Revised forecasts

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Residential Development

31,00031,500500

Leasing

29,00030,0001,000

Investment Management

4,500

7,000

2,500

Property Brokerage & CRE

8,000

8,000

-

Property & Facility Management

4,500

4,500

-

0

0

-

Adjustments(4,000)(5,000)(1,000)Total

73,00076,000

3,000

Other

7

2. Summary Information (Notes)(1) Changes in Accounting Policies, Accounting Estimates, and Restatements
Changes in Accounting Policies(Application of the Accounting Standards for Business Combinations)
Since the first quarter of the accounting period under review, the Company has applied the Accounting standard for Business
Combinations (Accounting Standards Board of Japan “ASBJ” Statement No. 21, issued on September 13, 2013), the AccountingStandard for Consolidated Financial Statements (ASBJ Statement No. 22, issued on September 13, 2013), and the Accounting Standard
for Business Divestitures (ASBJ Statement No. 7, issued on September 13, 2013). In line with the application of these standards, theCompany included the balance resulting from the changes in a parent’s ownership interest in a subsidiary, in which the parent retains
control, as capital surplus, and included the costs related to the acquisition of additional ownership interests in the costs of the fiscal period
in which the relevant costs were incurred. In regard to the business combinations executed after the beginning of the first quarter of theaccounting period under review, the Company has decided to revise the allocation of acquisition costs in response to the tentativedecisions related to accounting processing, and to reflect this to the quarterly financial statements for the period in which the relevantbusiness combinations are executed. The Company has also changed the method of disclosing quarterly net income, etc., and the methodof reporting changes in minority interests to non-controlling interests. In order to reflect these changes, the financial statements of the
cumulative second quarter and the fiscal year for the previous fiscal year have been restated.
In the cash flow statement of the cumulative second quarter, the cash flow for the costs of the acquisition or sales of ownership interestsin subsidiaries that do not result in change in scope of consolidation is stated in the net cash provided by (used in) financing activities, andthe cash flow for the costs of the acquisition of ownership interests in subsidiaries resulting in change in scope of consolidation or theacquisition or sales of ownership interests in subsidiaries that do not result in change in scope of consolidation is stated in the net cash
provided by (used in) operating activities.
The accounting standards for business combinations have been applied in accordance with the transitional treatment provided in
Paragraph 58-2(4) of the Accounting Standard for Business Combinations, Paragraph 44-5(4) of the Accounting Standard forConsolidated Financial Statements, and Paragraph 57-4(4) of the Accounting Standard for Business Divestitures. These standards wereapplied prospectively from the beginning of the first quarter of the accounting period under review.
As a result, the income before income taxes and minority interests during the second quarter of the accounting period under review
decreased by 435 million yen, and the capital surplus at the end of the second quarter of the accounting period under review increased by
15,539 million yen.

8

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
FY2014FY2015 2Q(As of March 31, 2015)(As of September 30, 2015)

AssetsCurrent Assets
Cash and deposits

47,42044,333

Notes and accounts receivable-trade

15,02934,498

Short-term investment securities

3,000

-

Real estate for sale

61,58363,094

Real estate for sale in process

237,500

263,471

Land held for development

130,221

105,628

Equity investments

6,316

1,005

Deferred tax assets

5,688

5,365

Other

42,58633,828(47)(52)

549,300

551,175

Buildings and structures, net

236,787

232,160

Land

486,436

513,301

6,852

10,868730,076

756,330

10,277

10,394

Investment securities

40,85339,037

Lease and guarantee deposits

20,487

20,130

Deferred tax assets

14,97915,047

Other

3,252

5,873

Allowance for doubtful accounts
Total current assets
Noncurrent Assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts-(1)

Total investments and other assets

79,57280,087

819,926

846,812

1,369,226

1,397,987

Total noncurrent assets
Total Assets

9

(Millions of yen)
FY2014FY2015 2Q(As of March 31, 2015)(As of September 30, 2015)

Liabilities
Current Liabilities
Notes and accounts payable-trade

48,662

36,623

Short-term loans payable

151,800

128,400

Current portion of bonds

3,000

3,000

Income taxes payable

13,097

12,255

Deposits received

25,09564,319Deferred tax liabilities

124

15

Provision for bonuses

6,218

6,401

Provision for directors' bonuses

606

303

Provision for loss on business liquidation

83

72

Other

56,49843,584

Total current liabilities

305,188294,976

Bonds payable

30,00040,000Long-term loans payable

431,900

478,100

Lease and guarantee deposits received

60,74960,838Deferred tax liabilities

60,21465,277

Deferred tax liabilities for land revaluation

4,116

4,116

Provision for loss on subleasing business

465

406

11,07811,007

Noncurrent Liabilities

Net defined benefit liability
Other

4,483

4,471

603,007664,217908,195

959,193

116,188

116,543

Capital surplus

93,518109,786

Retained earnings

170,069

187,759(2)(2)

379,774

414,086

5,069

4,512

Total noncurrent liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Capital stock

Treasury shares
Total shareholders' equity
Accumulated Other Comprehensive Income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment

78

57

7,644

7,644

61

65

Remeasurements of defined benefit plans

1,431

1,329

Total accumulated other comprehensive income

14,285

13,609Subscription Rights to Shares

1,563

1,700

Non-Controlling Interests

65,408

9,397

Total Net Assets
Total Liabilities and Net Assets

10461,031438,793

1,369,226

1,397,987

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Six Months from April 1 to September 30, 2015)(Millions of yen)
FY2014 2Q

FY2015 2Q(From April 1 to(From April 1 to

September 30, 2014)

September 30, 2015)

Operating Revenue

243,074

292,905

Operating Cost

171,234

203,824

Operating Gross Profit

71,83989,081

Selling, General and Administrative Expenses

42,631

48,329Operating Income

29,20840,751

Interest income

30

31Dividends income

218

838

Equity in earnings of affiliates

17

16

Other

259

123

Total non-operating income

525

1,009

4,599

4,025

Other

415

1,136

Total non-operating expenses

5,015

5,161

24,71836,599

206

-

2,203

-

Loss on valuation of investment securities

137-

Total extraordinary income

2,547

-

6,099

-

-

274

6,099

274

Income before Income Taxes and Minority Interests

21,16636,324

Income Taxes - Current

8,445

11,924

Income Taxes - Deferred

(144)

379

Total Income Taxes

8,301

12,304

Profit12,86424,020

Profit Attributable to Non-Controlling Interests

1,180

1,552

Profit Attributable to Owners of Parent

11,684

22,468

Non-Operating Income

Non-Operating Expenses
Interest expenses

Ordinary Income
Extraordinary Income
Gain on sales of noncurrent assets
Dividends distribution from silent partnership associated with
impairment loss

Extraordinary Losses
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses

11(Quarterly Consolidated Statements of Comprehensive Income)(Six Months from April 1 to September 30, 2015)(Millions of yen)
FY2014 2Q

Profit

FY2015 2Q(From April 1 to(From April 1 to

September 30, 2014)

September 30, 2015)

12,86424,020

2,979

(556)

Deferred gains or losses on hedges

21

(21)

Revaluation reserve for land

(0)

(0)

-

4

489

(101)

Other Comprehensive Income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

3,489

(675)

16,354

23,345Comprehensive income attributable to owners of parent

15,172

21,792Comprehensive income attributable to non-controlling interests

1,182

1,552

Comprehensive Income(Breakdown)

12(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
FY2014 2Q

FY2015 2Q(From April 1 to(From April 1 to

September 30, 2014)

September 30, 2015)

Cash Flows from Operating Activities
Income before income taxes and minority interests

21,16636,324

Depreciation and amortization

7,523

7,898

Equity in (earnings) losses of affiliates

(17)

(16)

Increase (decrease) in allowance for doubtful accounts

(138)

0

Increase (decrease) in provision for loss on business liquidation

(14)

(10)

Increase (decrease) in provision for loss on subleasing business

(36)

(59)

Increase (decrease) in net defined benefit liability

(151)

(91)

Interest and dividends income

(248)

(869)

Interest expenses

4,599

4,025

Decrease (increase) in notes and accounts receivable-trade

2,477(19,746)(50,159)(2,878)

602

5,310

Increase (decrease) in notes and accounts payable-trade(314)(12,041)

Increase (decrease) in deposits received

4,052

39,224

Other, net(1,045)(3,162)

Subtotal(11,705)

53,906725

858(4,658)(3,998)

Income taxes paid

(8,306)(13,328)

Net cash provided by (used in) operating activities(23,944)

37,438Decrease (increase) in inventories
Decrease (increase) in equity investments

Interest and dividends income received
Interest expenses paid

Cash Flows from Investing Activities
Purchase of investment securities

(632)

(356)

Proceeds from sales and liquidation of investment securities

549

2,377

Proceeds from sales and liquidation of investment securities-(9,692)(18,787)(21,266)

905

5

Payments for lease and guarantee deposits

(275)

(302)

Proceeds from collection of lease and guarantee deposits

599

1,050

Repayments of lease and guarantee deposits received(2,028)(1,940)

Proceeds from lease and guarantee deposits received

2,009

2,202

55

(2,232)(17,604)(30,154)

Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible
assetsOther, net
Net cash provided by (used in) investment activities

13

(Millions of yen)
FY2014 2Q

FY2015 2Q(From April 1 to(From April 1 to

September 30, 2014)

September 30, 2015)

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

34,3004,100

Increase (decrease) in commercial papers

9,000

-

Repayments of finance lease obligations

(78)

(76)

Proceeds from long-term loans payable

35,50078,000

Repayment of long-term loans payable(52,763)(59,300)

Proceeds from issuance of bonds

-

9,936

Proceeds from issuance of common stock

41

404

Proceeds from share issuance to non-controlling shareholders

356

Purchase of treasury shares-(0)Cash dividends paid

(3,818)(4,777)

Dividends paid to non-controlling interests(376)(1,465)-(40,253)

21,808(13,374)-

3

Net Increase (Decrease) in Cash and Cash Equivalents(19,740)(6,086)

Cash and Cash Equivalents at Beginning of Period

67,98250,41836-

48,27844,331

Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of Exchange Rate Change on Cash and Cash Equivalents

Increase (Decrease) in Cash and Cash Equivalents Resulting from
Change of Scope of Consolidation
Cash and Cash Equivalents at End of Period14(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.

(Notes to Significant Changes in Shareholders’ Equity)
Not applicable.

(Segment Information)
Segment information
I FY2014 2Q (Six months from April 1 to September 30, 2014)
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

recorded in

Residential

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development

Adjustments
Total

Investment(Note) 1

Subtotal

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
141,348

46,947

4,557

12,09737,428 242,378

Inter-segment

377

1,071

2

1,299

3,088

Subtotal

141,725

48,018

4,559

11,141

13,1222,332

External customers

Segment income or
loss

696

243,074-

243,074

5,839

0

5,840

(5,840)-13,396

40,517 248,218

696

248,914(5,840)243,074

3,173

2,162

(160)

31,771(2,563)

29,20831,932(Notes) 1. The “Other” category includes operating segments that are not included in reportable segments.
2. The deduction of 2,563 million yen shown in the adjustments column for segment income or loss includes an addition of 27
million yen for the elimination of inter-segment transactions and a deduction of 2,590 million yen for corporate expenses notallocated to reportable segments. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. The segment income or loss is reconciled to the operating income stated in the Quarterly Consolidated Statements of Income.
2. Impairment loss on noncurrent assets or goodwill by reportable segments(Significant impairment loss on noncurrent assets)(Millions of yen)
Residential

Investment
Leasing

Development

Impairment loss-

Management

-

6,099

15

Property

Property &Brokerage &Facility

CRE

Management

-

Total

-

6,099

II FY2015 2Q (Six months from April 1 to September 30, 2015)
1. Information regarding revenue, and income or loss by reportable segment(Millions of yen)AmountReportable segments

Residential

recorded in

Property

Property &Brokerage &Facility

CRE

Management

Other

Leasing
Development

Adjustments
Total

Investment
Subtotal(Note) 1

Quarterly
Consolidated(Note) 2

Statements ofManagement

Income(Note) 3

Operating revenue
192,551

41,504

5,096

13,71639,262 292,132

Inter-segment

325

1,354

0

1,290

3,193

Subtotal

192,876

42,8595,096

21,31013,2393,372

External customers

Segment income or
loss

773

292,905-

292,905

6,164

0

6,164

(6,164)-15,00742,455 298,296

773

299,069(6,164)292,905

3,406

2,326

(80)

43,575(2,823)40,751

43,655(Notes) 1. The “Other” category includes operating segments that are not included in reportable segments.
2. The deduction of 2,823 million yen shown in the adjustments column for segment income or loss includes an addition of 526
million yen for the elimination of inter-segment transactions and a deduction of 3,350 million yen for corporate expenses notallocated to reportable segments. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. The segment income or loss is reconciled to the operating income stated in the Quarterly Consolidated Statements of Income.
2. Changes in reportable segments
Since the first quarter of the accounting period under review, MEGALOS Co., Ltd. which used to be classified in the “Other
Business Segment” was transferred to the “Property & Facility Management Business Segment” in order to promote the unificationof operations.
In this regard, the segment information for the second quarter of the previous accounting period has been prepared in accordancewith the newly adopted segment classification.
3. Impairment loss on noncurrent assets or goodwill by reportable segment
Not applicable.

16