May 7, 2018
To whom it may concern
1-26-2, Nishi-Shinjuku, Shinjuku-ku, Tokyo
Nomura Real Estate Holdings, Inc.
Representative: Eiji Kutsukake, President and Representative Director
Nomura Real Estate Development Co., Ltd.
Representative: Seiichi Miyajima, President and Representative Director
Contact: Naoko Usami, General Manager of Corporate Communications Dept.
Our actions regarding appropriate employment management andimprovement of working environment

As previously announced on 26 December 2017, Nomura Real Estate Development Co., Ltd. (the“Company”) had, on December 25, 2017, received from the relevant Labor Standard Inspection Office(“LSIO”) in charge of the headquarter and 4 local offices of the Company (Kansai Regional Office, Nagoya
Branch, Sendai Branch and Fukuoka Branch) certain recommendation for corrective action and direction inrespect of treatment of the rules regarding discretionary working system for management-related work (the“Rules”) that were applied to certain employees in the Company.
This recommendation for corrective action and direction from the LSIO is in relation to the decision of theLSIO for the following matters: (i) as the concept of so-called “deemed working hours” that is adopted under
the Rules was not applicable to certain employees that were subject to the Rules, there has been certain
overtime works undertaken by those employees beyond what is separately agreed under the labormanagement agreement regarding overtime working hours, and (ii) as a result, the Company had not been
paying salaries to those employees for such overtime working hours.
The Company, after receiving this recommendation for corrective action and direction from the LSIO, hasalready abandoned the Rules effective as of March 31, 2018. The Company is also proceeding to make allnecessary payments in relation to the overtime working hours that were applicable to those affectedemployees.
We are also taking very seriously the fact that an employee of the Company passed away as a result of thisissue, as well as the fact that his passing away was also considered as a fatal occupational injury. We would
like to offer our greatest sympathies to the individual who has passed away, and also to offer our deep
condolences to the bereaved families
The Company considers that this issue resulted from the fact that the management of the Company was notable to appropriately monitor and supervise matters such as the design and operation of human resource
management system and the insufficient level of employment management.
The Company believes that it was not able to sufficiently manage employment matters due to the culture of
the Company which recognizes substantial efforts by each employee to discharge its own responsibilities
and to maintain high quality of the services and products provided by the Company, which lead to highvolume of work and resulted in the level of employment management not being sufficient.
As Nomura Real Estate Group (the “Group”), we strongly commit that this type of issue will never happen
again. We will also continue to actively pursue various efforts in order to regain trust from our shareholders
as well as the society as a whole, as well as from all of our employees with respect to the organization andthe management of the Group, by ensuring that a proper procedure is in place for appropriate employment1

management as well as improving the working environment for all employees to be able to safely andproactively engage in their duties.

Our actions regarding appropriate employment management and improvement of working environment
As a Group, we will manage our business by putting the mental and physical wellbeing of our employees
as top priority


We are committed to manage the Group in order that the active involvement of all Directors, officers
and employees of our Group who are mental and physical fit shall lead to the sustainable growth of ourGroup as a whole - i.e. "Wellness Management".

We are committed to send this message from our top management on a continuing basis and will ensurethat this concept is well perceived by all Directors, officers and employees of our Group so that thiswill be firmly implemented in practice.

In light of the above, the Company shall be implementing the following actions.
<Action points for the Company>
1.

We will ensure compliance with all applicable laws and regulations
2.

3.

We will ensure compliance with all applicable employment laws and regulations, including
without limitation the labor-management agreement regarding overtime working hours. Our top
management will be sending this message on a continuing basis to raise the awareness of all ourDirectors, officers and employees in this context in order to ensure full compliance with applicablelaws and regulations.

We will ensure that our top management, Directors and officers will share the issues we are facing withthe employees, in order to build trusted relationship and improve working environment

The Company will set up a forum where our top management and our employees will exchange
their views on a regular basis, in order to share the issues the employees are facing on ground interms of culture and customs relating to employment matters. By this we will build a mutual trust
between the management and the employees, and to attend to issues in order to improve ourworking environment.

With respect to employment related issues each of the business unit is facing, each of our Directors
and officers in charge of the business unit will ensure that they will understand the status andbackground each of our employees are facing, clarify the action items to be undertaken in order torectify the issue, and implement the same.

In the event the Company considers difficult to normalize the amount of work to be undertaken byeach of the employees within certain organizational unit, we will consider reallocation ofemployees on a company-wide basis.

We will implement the following actions for mental and physical wellbeing of our employees(1) Raising awareness of our Directors, officers and employees in relation to mental and physicalwellbeingWe will introduce training sessions on attending to health and mental issues as a regulartraining session, in order to raise awareness of our Directors, officers and employees relating
to health and mental issues and to better maintain and improve their mental and physicalwellbeing.

2On December every year we will review the actions implemented for mental and physicalwellbeing of our employees, and will take this opportunity to raise awareness of "wellness" on
a company-wide basis, including without limitation persuading our Directors, officers andemployees to take annual leaves during Christmas and new-year holiday season.

(2) Ensure monitoring of employees' mental and physical status by Directors, officers and supervisors
Supervisors including General Managers and Senior Managers will ensure that they willappropriately monitor the status of employees who may need special attention with respect totheir mental and physical status, and will share necessary information with the responsible
Directors and officers as well as our Human Resources Dept.. Also, Directors and officers will
ensure that they appropriately monitor the mental and physical status of the supervisors
including General Managers and Senior Managers, and will attend to this as appropriate inconsultation with our Human Resources Dept. on a regular basis.

We will set up a forum where the relevant Directors and officers and supervisors share thehealth and mental status of their employees in charge, in order to significantly raise awarenessof the Directors and officers and supervisors with respect to maintaining mental and physicalwellbeing of our employees, as well as to ensure that they are on top of the health and mental
issues the organization is facing as a whole and to attend to these issues in an appropriatemanner.

(3) Enhance health consulting function as well as medical check function
We will enhance the existing health consulting function within the organization. We will also
ensure that the employees are open to such consulting opportunities including those withoutside counsellors, that the employees as well as their families can easily access thosefunctions in order to prevent health and mental issues in advance as much as possible.

We will ensure that all our employees will sign up and attend their regular medical check-ups,
encourage and confirm those employees who were identified with potential health and mental
issues to re-attend their medical check-ups, in order to prevent health and mental issues inadvance as much as possible.

In order to firmly implement the action points set out above, we will newly establish a new department
called "Wellness Implementation Section" under the Group Human Resources Dept. of Nomura Real
Estate Holdings, Inc. and the Human Resources Dept. of the Company, and will also ensure that relevant
steps are implemented on a Group-wide basis.

We take very seriously the fact that we were not able to prevent the incidents which gave rise to therecommendation for corrective action and direction from the LSIO in the context of the management of theCompany as well as the management of Nomura Real Estate Holdings, Inc. who is in charge of the Group'smanagement. We also very much regret the consequence of the same vis-à-vis our stakeholders, including
our shareholders, employees and their families of each of our Group companies as well as the society as awhole.
In light of this, it has been decided that the following Executive Officers of Nomura Real Estate Holdings,
Inc. as well as the Director of the Company in our previous fiscal year ending March 31, 2018 shall forgive
a portion of their salary at their discretion as set out below:

3Eiji Kutsukake, President, Representative Director and Group CEO, Nomura Real Estate Holdings, Inc.
(Representative Director, Chairman of the Board of Directors, Nomura Real Estate Development Co., Ltd.)
Seiichi Miyajima, President and Representative Director, Nomura Real Estate Development Co., Ltd.
(Executive Vice President, Representative Director and Group COO, Nomura Real Estate Holdings, Inc.)
The above individuals have agreed to forgive 20% of their monthly salary for three months
Executive Officers of Nomura Real Estate Holdings, Inc. other than those individuals listed above haveagreed to forgive 10% of their monthly salary for three months
Moving forward, we are committed to manage the Group in order that the active involvement of all Directors,officers and employees of our Group who are mental and physical fit shall lead to the sustainable growth of
our Group as a whole - i.e. "Wellness Management".
In order to achieve this, we will, on a Group-wide basis, strive to ensure that the top management will send
the relevant messages to all our employees on a continuing basis, in order to achieve the implementation of
the actions points set out above, as well as ensuring appropriate employment management and improving
the working environment to be that of a proactive nature.

4

<Actions implemented by the Group for work-style reforms to date>
Each member of the Group has been working on the following actions in order to implement work-stylereforms. We will continue to attend to various actions in this connection in order to achieve the "WellnessManagement".
Actions to enable flexible working style in terms of hours and location
1. Encourage effective use of working hours

Effective use of flexible working hours system

2. Enhance choices of working location


Introduction of telework and work-from-home system

Actions to enable appropriate work-life balance
1. Encourage use of annual leaves
Introduce regular holidays for customer facing functions to allow scheduled leaves

Introduction of various systems to encourage employees to take leaves (e.g. refresh holidays,weekend holidays, public holidays, anniversary holidays, birthday holidays)

2. Improve awareness of working hours



Visualize working hours, introduction of "no overtime working" day

Introduction of system to declare office leaving time and compulsory shut-down of personal
computers

Implementation of "Plan-Do-Check-Action" cycle to improve productivity
Introduce "inventory clearance" and prioritization of work in progressDelegation of authorities, allocation of responsibilities

Other actions


Introduction of rules to assist employees who needs attention to children and caregiving
Introduction of staggered working hours and request for change in roles andresponsibilities



Introduction of subsidizing baby sittersIntroduction of paternity leave for male employees

Establishment of internal communication space within our office located at Shinjuku Nomura
Building5