Jul. 21, 2021

Consolidated Financial Results
For the Three Months from April 1 to June 30, 2021
<under Japanese GAAP>
Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purpose. All statements were basedon Tanshin report prepared in accordance with the provisions set forth in accounting regulations and principals generally accepted in Japan.

Name of company listed :Nomura Real Estate Holdings, Inc.

Shares traded :TSE (First section)

Code number :

3231

URL :

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

Representative :Eiji Kutsukake, President and Representative Director

Inquiries:

Hidehiro Sasaki,
General Manager, Corporate Communications Dept.

Email:

nrehd-ir@nomura-re.co.jp

Scheduled submitting date of quarterly securities report:

August 10, 2021

Scheduled starting date for dividend payments:-

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

I.

Consolidated operating results for the Three Months from April 1, 2021 to June 30, 2021
(1) Consolidated business results(% indicates the rate of changes from previous fiscal term)

Operating revenue
First three months

Operating profit

Millions ofMillions of

yen

%
yen

Profit attributable toOrdinary profit

Millions of

%
ended

Business profit

owners of parent

Millions of%Millions of
%

yen

yen

%
yen

Jun. 30, 2021

146,544

7.4

30,49370.3

30,51968.5

27,82580.5

18,606

110.6

Jun. 30, 2020

136,486

21.4

17,900196.1

18,107186.9

15,417

282.7

8,833

196.9

(Note) Comprehensive income: From April 1, 2021 to June 30, 2021: 23,364 million yen (up 278.7%)
From April 1, 2020 to June 30, 2020: 6,170 million yen (up 48.2%)(Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible
assets associated with corporate acquisitions

Basic earnings

Diluted earnings

per shareper share
Yen

YenJun. 30, 2021

103.16102.78Jun. 30, 2020

48.67

48.49

First three months ended

(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders' equity ratio

Millions of yen

Millions of yen%

Jun. 30, 2021

1,957,185

601,172

30.6

Mar. 31, 2021

1,921,306

586,350

30.4(Reference) Shareholders’ equity: As of June 30, 2021: 598,162 million yen As of March 31, 2021: 583,328 million yen

II. Dividends
Dividend per share
1st quarter-end

Fiscal year ended
Mar. 31, 2021
Fiscal year ending

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

40.00

-

42.50

82.50

42.50

-

42.50

85.00

-

Mar. 31, 2022
Fiscal year ending
Mar. 31, 2022
(Forecasts)(Note) Revision of dividend forecasts during this quarter: No

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

Operating revenue

Operating profit

Business profit

Profit attributable toOrdinary profit

owners of parent

Basicearnings
per share

Fiscal year
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

680,000

17.1

77,0000.9

84,0009.972,5009.949,50017.3

274.98endingMar. 31,2022(Note) Revision of operating results forecasts during this quarter: No* Notes(1) Significant changes to subsidiaries during the period (Changes in scope of consolidation of specified subsidiaries): None
(2) Adoption of specific accounting policies for quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and restatements
1)

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

: Yes

2)

Changes in accounting policies other than the above: None3)

Changes in accounting estimates: None4)

Restatements: None(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements (4) Notes to Quarterly Consolidated Financial Statements(Changes in Accounting Policies)” on page 13 of the Attachments.
(4)

Number of shares issued (common stock)1)

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

2)

Treasury shares at end of period

As of Jun. 30

As of Mar. 31

2021

2021

182,320,337

193,099,001

1,924,446

12,490,613

3)

Average number of shares outstanding during the period

From April 1 to June 30,

From April 1 to June 30,

2021

2020

180,373,100

181,520,271(Note) The number of treasury shares at end of each period includes the shares of the company owned by BIP (Board Incentive Plan) trust and
ESOP (Employee Stock Ownership Plan) trust (1,924,369 shares as of June 30, 2021 and 1,962,549 shares as of March 31, 2021).
The Company’s share owned by executive compensation BIP trust and ESOP trust are included in the number of treasury shares deducted in
the calculation of average number of shares outstanding during the period (1,952,943 shares as of June 30, 2021 and 1,967,366 shares as ofJune 30, 2020).
* This Quarterly “Consolidated Financial Results” is not required to be audited by certified public accountants or audit corporations.
* Proper use of forecasts of operating results, and other special matters
Forward-looking statements in this document, including the forecasts of financial results, etc., are based on the information currently
available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges torealize such statements. Actual performance and other results may differ materially from these forecasts are due to various factors. For mattersrelated to the forecasts of financial results, please refer to “1. Business Results and Financial Position (3) Consolidated Operating Result
Forecasts” on page 6 of the Attachments.
(How to obtain the fact sheets)
The fact sheets will be disclosed on TDnet on July 21, 2021 and will be uploaded on the Company's website.

Attachments- Contents
1. Business Results and Financial Position ----------------------------------------------------------------------------------------------------------------

2(1) Business Results -----------------------------------------------------------------------------------------------------------------------------------

2(2) Financial Position ---------------------------------------------------------------------------------------------------------------------------------

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

6

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

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

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

9

Quarterly Consolidated Statements of Income for the First Three Months from April 1 to June 30, 2021------------------------

9

Quarterly Consolidated Statements of Comprehensive Income for the First Three Months from April 1 to June 30, 2021---10(3) Quarterly Consolidated Statement of Cash Flows ------------------------------------------------------------------------------------------

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

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

13(Notes to Significant Changes in Shareholder’s Equity) ----------------------------------------------------------------------------------

13(Changes in Accounting Policies) -------------------------------------------------------------------------------------------------------------

13(Segment Information) --------------------------------------------------------------------------------------------------------------------------

141

1. Business Results and Financial Position(1) Business Results
The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the three months ended June 30, 2021:
Operating revenue of 146,544 million yen, which represents an increase of 10,057 million yen, or 7.4% year on year; operating profit of
30,493 million yen, an increase of 12,592 million yen, or 70.3%; business profit of 30,519 million yen, an increase of 12,411 million yen, or
68.5%; ordinary profit of 27,825 million yen, an increase of 12,407 million yen, or 80.5%; and profit attributable to owners of parent of
18,606 million yen, an increase of 9,772 million yen, or 110.6%.
(Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible
assets associated with corporate acquisitions
An overview of business unit achievements is given below:
Operating revenue for each business unit includes internal sales and transfer amount among business units. Total figures may not match dueto the rounding of fractions.
In Property Brokerage & CRE Business Unit, the real estate brokerage and consulting business had been conducted by two companies,
Nomura Real Estate Development Co. Ltd. and Nomura Real Estate Urban Net Co. Ltd. As of April 1, 2021, the Company implemented thereorganization to integrate location, personnel and function, in which Nomura Real Estate Development Co., Ltd. being splitting company inabsorption-type company split, and Nomura Real Estate Urban Net Co., Ltd. being succeeding stock company in absorption-type company
split. In addition, Nomura Real Estate Urban Net Co., Ltd. changed its corporate name to Nomura Real Estate Solutions Co., Ltd. on the sameday.
<Residential Development Business Unit>
Operating revenue in this business unit totaled 46,602 million yen, which represents a decrease of 8,684 million yen, or 15.7% year on year,
and business profit totaled 1,734 million yen, a decrease of 2,453 million yen, or 58.6% resulting in decreases in both operating revenue andbusiness profit compared with the financial results of the three months ended June 30, 2020.
This was mainly due to a decrease in the average price of housing units sold while an increase in the number of housing units sold in the
housing sales business.
In regard to housing sales, 647 units were recorded as sales (an increase of 39 units year on year) against the planned 4,400 units for this fiscal
year. The contract progress rate was 80.5% at the end of this first quarter against the projected operating revenue of housing sales for this fiscal
year.
The number of housing contracted but not recorded as sales were 3,540 units as of the end of this first quarter (an increase of 1,280 units year
on year).
Number of units, sales, and outstanding contract amount as sold for the joint-venture projects are calculated based on the business’s share.
Breakdown of operating revenue
First three months ended

First three months ended

Fiscal year ended

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2021

Housing units soldOperating revenue

Housing units sold(Millions of yen)

Operating revenue

Housing units sold(Millions of yen)

Operating revenue(Millions of yen)

Tokyo metropolitan area

561 units

47,413406 units

29,3252,981 units

211,465

Kansai area

26 units

1,727

87 units

4,627

312 units

18,081Other

20 units

1,159

154 units

8,726

375 units

18,062

Subtotal

608 units

50,300647 units

42,6793,669 units

247,609(Detached housing)(43 units)(2,700)(138 units)(8,931)(372 units)(22,741)

Rental housing (Note)

-

210

-

318

-

5,960

Senior / Other

-

4,775

-

3,604

-

19,007-55,286-

46,602-

272,577

Housing
sales

Total

(Note) Rental Housing refers to properties developed for real estate investment market.

2

Housing sales Period-end completed housing inventory (released for sale)
As of Jun. 30, 2020

As of Jun. 30, 2021

As of March 31, 2021

Tokyo metropolitan area

297 units

109 units

161 units

Kansai area

8 units

47 units

45 units

Other

48 units

34 units

33 units

Total

353 units

190 units

239 units(Detached housing)(25 units)(16 units)(18 units)

Housing sales Period-end completed housing inventory (unreleased)
As of Jun. 30, 2020

As of Jun. 30, 2021

As of March 31, 2021

Total

407 units

78 units

182 units(Detached housing)(10 units)(6 units)(5 units)

Housing sales Contracted but not recorded as housing sales
As of Jun. 30, 2020

As of Jun. 30, 2021

Outstanding
Housing units

contract amount

As of March 31, 2021

Outstanding
Housing units(Millions of yen)contract amount

Outstanding
Housing units(Millions of yen)contract amount(Millions of yen)

Tokyo metropolitan area

1,695 units

120,159

2,540 units

187,479

2,260 units

170,232

Kansai area

236 units

13,127390 units

21,252394 units

20,655

Other

328 units

18,533609 units

31,716622 units

34,075

Total

2,260 units

151,821

3,540 units

240,447

3,276 units

224,963(Detached housing)(30 units)(1,608)(141 units)(9,258)(159 units)(10,425)<Commercial Real Estate Business Unit >Operating revenue in this business unit totaled 67,600 million yen, which represents an increase of 14,727 million yen, or 27.9% year on
year, and business profit totaled 23,273 million yen, an increase of 12,910 million yen, or 124.6%, resulting in increases in both operating
revenue and business profit compared with the financial results of the first three months ended June 30, 2020.
This was mainly due to an increase in revenue from property for sales business.
Breakdown of operating revenue
First three months ended

First three months ended

Fiscal year ended

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2020

(Millions of yen)

(Millions of yen)

(Millions of yen)

Leasing (offices)

11,56011,07647,411

Leasing (retail facilities)

1,590

2,943

11,018

Leasing (other)

1,499

1,002

5,776

33,27045,48987,846

2,872

3,128

11,239

1,168

2,921

11,509Property for sales(sale) (Note)
Property for sales(leasing) (Note)
Fitness
Other
Total

909

1,038

4,426

52,872

67,600179,227(Note) Property for sales refers to properties such as office building, retail facility and logistic facility developed for real estate investment market.

3

Net lettable area
As of Jun. 30, 2020

As of Jun. 30, 2021

As of March 31, 2021

Offices

762,091 m2

712,258 m2

706,771 m2

Retail facilities

122,068 m2

120,609 m2

120,966 m2

884,159 m2

832,866 m2

827,737 m2

Total
Vacancy rate (offices and retail facilities)
As of Jun. 30, 2020

As of Jun. 30, 2021
4.2%

As of March 31, 2021
5.3%

5.1%

<Investment Management Business Unit>
Operating revenue in this business unit totaled 3,453 million yen, which represents an increase of 75 million yen, or 2.2% year on year, andbusiness profit totaled 2,282 million yen, an increase of 60 million yen, or 2.7%, resulting in increases in both operating revenue and businessprofit compared with the financial results of the first three months ended June 30, 2020.
First three months ended

First three months ended

Fiscal year ended

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2021

(Millions of yen)

(Millions of yen)

(Millions of yen)

3,378

Operating revenue

3,453

12,456

Assets under management
As of Jun. 30, 2020

As of Jun. 30, 2021

As of Mar. 31, 2021

(Millions of yen)

(Millions of yen)

(Millions of yen)

REITs
Domestic asset

Privatemanagerfunds,

1,388,126

1,396,973

1,396,973

130,693

174,135

139,513

etc.
Overseas asset manager

270,951

297,815

279,159

Total

1,789,771

1,868,924

1,815,646<Property Brokerage & CRE Business Unit>
Operating revenue in this business unit totaled 10,621 million yen, which represents an increase of 2,046 million yen, or 23.9% year on
year, and business profit totaled 3,195 million yen, an increase of 1,568 million yen, or 96.4%, resulting in increases in both operating revenue
and business profit compared with the financial results of the first three months ended June 30, 2020.
This was mainly due to increases in the number of transactions and total transaction value of retail business in property brokerage, owing toa rebound from the the first three months ended June 30, 2020, when the Company partially refrained from sales activities on account of the
COVID-19 impact.
Breakdown of operating revenue
First three months ended

First three months ended

Fiscal year ended

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2021

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property brokerage

7,593

9,642

34,718(retail business)(4,843)(6,774)(23,334)(wholesale business)(2,750)(2,868)(11,384)

981

978

4,717

8,575

10,621

39,436

Other
Total

4

Number of transactions and transaction value of property brokerageFirst three months ended

First three months ended

Fiscal year ended

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2021

Number of transactions
Total transaction value (Millions of yen)

1,984

2,499

9,322

183,144

220,007893,423<Property & Facility Management Business Unit>
Operating revenue in this business unit totaled 21,618 million yen, which represents an increase of 1,829 million yen, or 9.2% year on year,
and business profit totaled 1,540 million yen, an increase of 346 million yen, or 29.0%, resulting in increases in both operating revenue andbusiness profit compared with the financial results of the first three months ended June 30, 2020.
This was mainly due to an increase in the number of construction ordered.
Breakdown of operating revenue
First three months ended

First three months ended

Fiscal year ended

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2021

(Millions of yen)

(Millions of yen)

(Millions of yen)

Property & facility management

14,132

14,29356,783

Construction ordered

4,377

6,013

35,863

Other

1,279

1,311

5,737

19,78921,61898,384

Total
Number of properties under management

As of Jun. 30, 2020
Buildings under management
Condominiums under management (unit)

As of Jun. 30, 2021

As of Mar. 31, 2021

801

795

788

181,504

182,844

183,162<Other>Operating revenue totaled 631 million yen, which represents an increase of 335 million yen, or 113.4% year on year, and business loss totaled
346 million yen (business loss of the first three months ended June 30, 2020 was 602 million yen).

5(2) Financial Position
As of March 31, 2021

As of Jun. 30, 2021

Changes(Millions of yen)

(Millions of yen)

(Millions of yen)

Changes

Total assets

1,921,306

1,957,185

35,878

1.9%

Total liabilities

1,334,956

1,356,012

21,056

1.6%

Net assets

586,350

601,172

14,821

2.5%

Shareholders' equity ratio

30.4%

30.6%

-

-

Total assets were 1,957,185 million yen, which represents an increase of 35,878 million yen compared to the end of the previous fiscal
year. This was mainly because other in current assets including withholding income tax on dividends from subsidiaries increased by 49,496
million yen, while cash and deposits decreased by 17,973 million yen.
Total liabilities were 1,356,012 million yen, which represents an increase of 21,056 million yen compared to the end of the previous fiscal
year. This was mainly because deposits received including those related to withholding income tax on dividends from subsidiaries increased
by 38,098 million yen and commercial papers increased by 20,000 million yen, while notes and accounts payable-trade decreased by 24,688
million yen.
Net assets were 601,172 million yen, which represents an increase of 14,821 million yen compared to the end of the previous fiscal year.
This was mainly because the amount of treasury shares deducted from shareholder’s equity decreased by 25,886 million yen due to thecancellation of treasury shares(a contribution to an increase in net assets), while retained earnings decreased by 16,157 million yen due to thecancellation of treasury shares and the payment of cash dividends.
The shareholders' equity ratio was 30.6%, an increase of 0.2 percentage point from the end of the previous fiscal year.
(Cash Flows)
Cash and cash equivalents as of the end of this first quarter totaled 52,763 million yen, which represents a decrease of 17,861 million yen
compared to the end of the previous fiscal year.
Net cash provided by (used in) operating activities decreased by 24,444 million yen (a year-on-year increase of 96,128 million yen). Thiswas mainly due to a decrease in trade payables and the payments of income taxes, while deposits received increased.
Net cash provided by (used in) investing activities decreased by 4,873 million yen (a year-on-year decrease of 9,064 million yen). Thiswas mainly due to the purchase of property, plant and equipment and intangible assets.
Net cash provided by (used in) financing activities increased by 11,224 million yen (a year-on-year decrease of 132,597 million yen). Thiswas mainly due to the fund procurement by short-term borrowings and the issuance of commercial papers while there was a payment ofcash dividends and redemption of bonds.
(3) Consolidated Operating Result Forecasts
No change in the consolidated operating result forecast which was announced on April 27, 2021.

6

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of June 30, 2021

AssetsCurrent assets
Cash and deposits

71,62553,652

Notes and accounts receivable - trade

19,635－－

15,160Real estate for sale336,308

331,873

Real estate for sale in process

326,165

318,431Land held for development

212,727

226,681

Equity investments

28,77029,791

Other

48,104

98,638(14)(14)

1,043,321

1,074,214

Buildings and structures, net

185,727

186,242Land

506,097

506,427

Notes and accounts receivable - trade, and contract
assetsAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Other, net

22,39924,126

Total property, plant and equipment

714,224

716,796

18,468

19,610Investment securities

86,42889,756

Leasehold and guarantee deposits

27,65529,328Deferred tax assets

23,097

20,496

Other

8,111

6,980

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

145,292

146,563

Intangible assets
Investments and other assets

Total non-current assets
Total assets

7877,985

882,970

1,921,306

1,957,185

(Millions of yen)
As of March 31, 2021

As of June 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade61,16236,474

Short-term borrowings

87,000100,500－

20,000Commercial papers
Current portion of bonds payable

10,000－

Income taxes payable

18,572

9,599

Deposits received

25,14063,239Provision for bonuses

8,599

4,393

Provision for bonuses for directors (and other officers)

455

106

Provision for loss on business liquidation

13

11

Other

58,37857,887

Total current liabilities

269,322292,214

Bonds payable

160,000

160,000

Long-term borrowings

751,500

747,843

Leasehold and guarantee deposits received

58,85561,780

Deferred tax liabilities

59,93458,257

Deferred tax liabilities for land revaluation

3,891

3,891

Non-current liabilities

Provision for share awards

2,734

2,877

Retirement benefit liability

16,216

16,401Other

12,501

12,747

1,065,633

1,063,798

1,334,956

1,356,012

Share capital

118,043

118,289

Capital surplus

114,433

114,678

Retained earnings

369,597

353,440

Treasury shares(30,125)(4,239)Total shareholders' equity

571,948

582,169

Valuation difference on available-for-sale securities

7,827

9,624

Deferred gains or losses on hedges(1,342)(91)

Revaluation reserve for land

7,869

7,869

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Foreign currency translation adjustment

(995)

437

Remeasurements of defined benefit plans(1,979)(1,846)

Total accumulated other comprehensive income

11,37915,993

Share acquisition rights

1,406

1,273

Non-controlling interests

1,616

1,736

586,350

601,172

1,921,306

1,957,185

Total net assets
Total liabilities and net assets8(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income for the First Three Months from April 1 to June 30, 2021)(Millions of yen)Three months ended

Three months ended

June 30, 2020

June 30, 2021

Operating revenue

136,486

146,544

Operating costs

94,56989,774

Operating gross profit

41,91756,769Selling, general and administrative expenses

24,01626,275

Operating profit

17,90030,493

Interest income

22

20

Dividend income

17

30

49

－

Gain on sale of non-current assets

91

－

Other

120

122

Total non-operating income

301

172

2,220

2,186

Share of loss of entities accounted for using equity method

－

135

Other

565

518

Total non-operating expenses

2,785

2,841

15,417

27,825

Impairment losses－

405

Loss on COVID-19

1,715

281

Total extraordinary losses

1,715

686

Profit before income taxes

13,701

27,138

Income taxes - current

4,025

9,012

Income taxes - deferred

904

(491)

Total income taxes

4,930

8,521

Profit8,770

18,617

Profit (loss) attributable to non-controlling interests

(62)

10

Profit attributable to owners of parent

8,833

18,606

Non-operating income

Share of profit of entities accounted for using equity
methodNon-operating expenses
Interest expenses

Ordinary profit
Extraordinary losses

9(Quarterly Consolidated Statements of Comprehensive Income for the First Three Months from April 1 to June 30, 2021)(Millions of yen)

ProfitThree months ended

Three months ended

June 30, 2020

June 30, 2021
8,770

18,617

Valuation difference on available-for-sale securities

(745)

1,797

Deferred gains or losses on hedges(1,534)

1,250

(0)

(0)

Foreign currency translation adjustment

(537)

1,194

Remeasurements of defined benefit plans, net of tax

229

133

(13)

372

(2,600)

4,747

6,170

23,364

6,344

23,220(174)

143

Other comprehensive income

Revaluation reserve for land

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests10

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Three months ended

Three months ended

June 30, 2020

June 30, 2021

Cash flows from operating activities
Profit before income taxes

13,701

27,138Depreciation

4,925

4,712

(49)

135

4

(0)

(1)

(1)

Increase (decrease) in retirement benefit liability

(349)

184

Interest and dividend income

(39)

(50)

Interest expenses

2,220

2,186

Decrease (increase) in trade receivables

11,437

4,143

Decrease (increase) in inventories(39,270)(2,026)

Share of loss (profit) of entities accounted for using equity
methodIncrease (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on businessliquidation

Decrease (increase) in equity investments

1,978(1,009)

Increase (decrease) in trade payables(65,805)(24,273)

Increase (decrease) in deposits received(17,023)

38,095

Other, net(6,641)(6,610)Subtotal(94,915)

42,62446

172

Interest and dividends received
Interest paid

(1,364)(1,544)

Income taxes paid

(24,339)(65,696)

Net cash provided by (used in) operating activities(120,573)(24,444)

(604)

(701)

69

1

(13,285)(6,694)

17,798

274

(424)

(369)

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales and liquidation of investment
securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sale of property, plant and equipment andintangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits

467

301

Repayments of lease and guarantee deposits received(1,881)(901)

Proceeds from lease and guarantee deposits received

1,922

1,898

Other, net

129

1,317

Net cash provided by (used in) investing activities

4,190(4,873)

Net increase (decrease) in short-term borrowings

1,000

7,000

Repayments of finance lease obligations

(92)

(77)

30,00020,000Cash flows from financing activities

Net increase (decrease) in commercial papers
Proceeds from long-term borrowings

96,500

6,836

Repayments of long-term borrowings(8,000)(4,000)

Proceeds from issuance of shares

10

359

Proceeds from issuance of bonds

40,000－

Redemption of bonds－(10,000)

Proceeds from sale of treasury shares

5

108

11

Purchase of treasury shares－(1,214)(7,339)(7,759)

(36)

(23)

(8,226)(5)

Net cash provided by (used in) financing activities

143,821

11,224

Effect of exchange rate change on cash and cash equivalents

(134)

233

Net increase (decrease) in cash and cash equivalents

27,304(17,861)

Cash and cash equivalents at beginning of period

77,611

70,624

Cash and cash equivalents at end of period

104,916

52,763

Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation

12

(4) Notes to Quarterly Consolidated Financial Statements(Notes to Going Concern Assumptions)Not applicable.
(Notes to Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Accounting Policies)
1. Application of the Accounting Standard for Revenue Recognition
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 30, 2020, AccountingStandards Board of Japan”), from the beginning of the first three months from April 1 to June 30, 2021. It recognizes revenues for goods
or services based on the amount estimated to be received in exchange for such goods or services at the point when control of the promised
goods or services is conveyed to the customer.
The Company has applied the Accounting Standard for Revenue Recognition transitionally, in accordance with the proviso in Article 84of the standard. The cumulative effect amount, applying with the new accounting policy retrospectively prior to the beginning of the first
three months from April 1 to June 30, 2021, was adjusted to retained earnings at the beginning of the first three months from April 1 to June30, 2021, and the Company has applied the new policy to the balance at the beginning of the first three months from April 1 to June 30,
2021.
As a result, the impact of application of the Accounting Standard for Revenue Recognition, etc. on consolidated financial statements forthe first three months from April 1 to June 30, 2021 is immaterial.
Due to the application of Accounting Standard for Revenue Recognition, “Notes and accounts receivable – trade” which were included
in “Current assets” in the consolidated balance sheets for the previous fiscal year, are included in “Notes and accounts receivable - trade,and contract assets” from the first three months from April 1 to June 30, 2021. In accordance with the transitional treatment stipulated in
Article 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordancewith the new approach to presentation.
2. Application of the Accounting Standard for Fair Value Measurement
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019, AccountingStandards Board of Japan,”), from the beginning of the first three months from April 1 to June 30, 2021.
The company has prospectively applied new accounting policies based on the Accounting Standard for Fair Value Measurement, in
accordance with the transitional measurement in Article 19 of Accounting Standard for Fair Value Measurement and Article 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 first
three months from April 1 to June 30, 2021 is immaterial.

13

(Segment Information)【Segment information】
I First three months from April 1 to June 30, 2020
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)AmountReportable segments

recorded in
Residential

Commercial

Development Real Estate

Property

Property &Brokerage

Facility

Other

Adjustments
Total

Investment
Subtotal(Note) 1(Note) 2

Management& CRE

Management

consolidated
financialstatements(Note) 3

Operating revenue
Externalcustomers

55,12652,459

3,378

8,017

17,208136,190

295

136,486－

136,486

159

413

－

557

2,580

3,711

0

3,711

(3,711)－

55,28652,872

3,378

8,575

19,789139,902295

140,197(3,711)

136,486

4,197

10,237

2,147

1,627

1,156

19,365(580)

18,784(883)

17,900

(8)

57

－

－

30

79

(29)

49

－

49

－

68

74

－

7

149

7

157

－

157

4,188

10,362

2,221

1,627

1,194

19,594(602)

18,991(883)

18,107

Internal sales andtransfer amountamong segments
Subtotal
Operating profit(Note) 3
Share of profit (loss)of entities accounted
for using equity
method (Note) 3
Amortization of
intangible assets
associated withcorporate acquisitions(Note) 3

Segment profit or loss
(Business profit orloss) (Note) 3(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 883 million yen shown in the adjustments column for segment profit or loss (business profit or loss) includes
elimination of intersegment transactions of 618 million yen and a deduction of 1,502 million yen for corporate expenses notallocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity
method + amortization of intangible assets associated with corporate acquisitions
2. Information regarding impairment loss on noncurrent assets or goodwill by reportable segment
Not applicable14

Ⅱ First three months from April 1 to June 30, 2021
1. Information regarding sales, gains or losses, by reportable segment(Millions of yen)AmountReportable segments

recorded in
Property
Residential

Commercial

Adjustments
Total

Brokerage
Development Real Estate

Other

Property &Investment
Facility

Subtotal(Note) 1(Note) 2

Management& CRE

Management

consolidated
financialstatements(Note) 3

Operating revenue
Externalcustomers

46,422

67,125

3,443

9,689

19,231

145,913630

146,544－

146,544

179

474

9

931

2,386

3,982

0

3,983

(3,983)－46,602

67,6003,453

10,621

21,618

149,896631

150,527(3,983)

146,544

1,726

23,174

2,204

3,195

1,508

31,810(155)

31,654(1,161)30,493

7

30

－

－

23

62

(198)

(135)

－

(135)

－

68

77

－

7

153

7

161

－

161

1,734

23,273

2,282

3,195

1,540

32,026(346)

31,680(1,161)

30,519Internal sales andtransfer amountamong segments
Subtotal
Operating profit(Note) 3
Share of profit (loss)of entities accounted
for using equity
method (Note) 3
Amortization of
intangible assets
associated withcorporate acquisitions(Note) 3

Segment profit or loss
(Business profit orloss) (Note) 3(Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.
2. The deduction of 1,161 million yen shown in the adjustments column for segment profit or loss (business profit or loss) includes
elimination of intersegment transactions of 667 million yen and a deduction of 1,828 million yen for corporate expenses notallocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not
attributable to reportable segments.
3. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity
method + amortization of intangible assets associated with corporate acquisitions
2. Notes relating to changes in reportable segments etc.
(Application of the Accounting Standard for Revenue Recognition)
The Company has applied the Accounting Standard for Revenue Recognition, and changed the way of accounting for revenue
recognition from the beginning of the first three months from April 1 to June 30, 2021 as described in above “Changes in Accounting
Policies” Therefore, the Company has similarly changed the measuring method of segment profit or loss. The impact of the change
on operating revenue and profit or loss of reportable segments is immaterial.

15

3. Information regarding impairment loss on non-current assets or goodwill by reportable segment(Significant impairment loss relating to non-current assets)(Millions of yen)
Property &Residential

Commercial

Investment

Property

Development

Real EstateManagement

Brokerage & CRE

Facility

Total

Management

Impairment loss

-

405

-

16

-

-

405