Business Report(From April 1, 2022 to March 31, 2023)
1. Current status of the Group(1) Status of operations for the fiscal year under review
1) Progress and results of businessWe are pleased to announce a summary of operating results of our 19th term (April 1, 2022 toMarch 31, 2023).
During this fiscal year, economic sentiment in Japan continued on an overall trend ofrecovery, with a dual focus being placed on COVID-19 response and economic and social
activity, a recovery in personal consumption, and an increase in corporate capital investment,
among other measures. However, global inflation, monetary tightening particularly in Europe
and the United States, and soaring prices for energy and raw materials, etc., evoked weakness
and uncertainty in some areas.
Regarding the real estate market conditions, a robust sales trend continued in the housing
sales market, with first-month contract rate exceeding 70% for the second year in a row in theTokyo metropolitan area and completed housing inventories released for sale decreasing
significantly to the level of approximately 10 years ago, etc. In the leasing office market,
although vacancy rates are continuing at a high level for the recent few years as in theprevious fiscal year, we saw demand for office relocations to higher value-added offices inline with the diversification of values and work styles. In addition, the retail and hotel market,
which was severely affected by the COVID pandemic, showed an upward trend in sales andoccupancy rates from the middle of the fiscal year onward as service consumption andinbound demand recovered due to the easing of restrictions on movement and entry into
Japan, etc. In the real estate investment market, as in the previous fiscal year, the volume ofproperty transactions remained strong particularly for logistics facilities and rental housing
due to a good domestic fund procurement environment and strong appetite for investment byinvestors, and the size of the market continued to grow. Moreover, the real estate brokerage
market continued robustly, with the number of transactions for used condominiums in theTokyo metropolitan area proceeding at a high level and average transaction prices continuing
to rise, etc., due to strong relocation demand.
In this business environment, the Nomura Real Estate Group (the “Group”) posted thefollowing consolidated performance for this consolidated fiscal year: Operating revenue of¥654,735 million, which represents an increase of 1.5% year on year; operating profit of¥99,598 million, an increase of 9.2%; business profit of ¥105,172 million, an increase of
13.4%; ordinary profit of ¥94,121 million, an increase of 14.0%; and profit attributable toowners of parent of ¥64,520 million, an increase of 16.6%.
Operating revenue¥

654.7billion

Operating profit

up 1.5% year on year¥

Business profit¥

105.1billion

99.5billion

up

9.2% year on year

Ordinary profit

up 13.4% year on year¥

94.1billion

up 14.0% year on year

Profit attributable to owners of parent¥

64.5billion

up 16.6% year on year

Note: Business profit = operating profit + share of profit (loss) of entities accounted for using equity method +amortization of intangible assets associated with corporate acquisitions–1–

[Residential Development Business Unit]
Operating revenue in the Residential Development Business Unit totaled ¥302,480 million,
which represents a decrease of 2.2% year on year, and business profit totaled ¥33,333
million, an increase of 2.4%, resulting in a decrease in operating revenue and an increase inbusiness profit compared with the previous fiscal year.
In regard to housing sales, 4,142 units were recorded as sales (a decrease of 187 units year onyear), including condominiums at PROUD TOWER Shibaura and PROUD Hankyu
Tsukaguchi Ekimae and detached housing units at PROUD SEASON Seijo Court. The
number of housing units contracted but not recorded as sales was 3,819 units as of the end of
the fiscal year under review (an increase of 271 units year on year) and the contract progress
rate against the scheduled housing sales for the next fiscal year was 74.8% at the beginning of
the fiscal year ending March 31, 2024.
Furthermore, as initiatives to contribute to a sustainable society through business activities,
the Residential Development Business Unit is promoting power saving and power generation
initiatives, such as the development of ZEH* condominiums and the installation of solar
panels on detached housing units to generate electricity on the same scale as mega solar
power generation. In addition, as a DX initiative to create new value, it is promoting thedigitalization of customer contact points, such as the introduction of a service that allows
home-buying consultation in the metaverse and the provision of information using online
tools, and it will continue to take on the challenge of pursuing more advanced customer
experience value going forward.
*

Energy conservation performance index for newly constructed properties (Based on ZEH-M Oriented
standards)[Commercial Real Estate Business Unit]
Operating revenue in the Commercial Real Estate Business Unit totaled ¥199,309 million,
which represents a decrease of 1.6% year on year, and business profit totaled ¥39,529
million, an increase of 2.4%, resulting in a decrease in operating revenue and an increase inbusiness profit compared with the previous fiscal year.
Construction of 16 facilities including the PMO EX Nihonbashi Kayabacho office building,the MEFULL Kawasaki retail facility, and the Landport Ageo II logistics facility have been
completed.
The Group is also developing its PMO, H¹O and H¹T office brands that meet diversifying
companies’ needs and changes in workstyles to provide convenience, and has expanded its
H¹T satellite offices to 248 branch locations (including affiliates) as of the end of the fiscal
year under review.
Furthermore, as an initiative to reduce CO2 emissions during construction, we have begun to
introduce a hybrid wooden structure for the main structural components, and H¹O Aoyama
was the first mid to high-rise office building to be completed by a real estate developer* thatuses this structure.
In addition, as a logistics DX initiative, we are implementing the intercompany co-creation
program Techrum to optimize logistics operations through efficient use of automatedequipment, etc., to solve issues faced by logistics companies and shippers, and to addresssocial issues such as a significant increase in e-commerce demand and a serious labor
shortage, thereby contributing to the achievement of a sustainable society.
*This is the first real estate developer to complete construction of a mid- to high-rise leasing office buildingthat uses a hybrid wooden structure with steel construction for some of the pillars and beams of the main
structural components.

[Overseas Business Unit]
Operating revenue in the Overseas Business Unit totaled ¥6,770 million, which represents anincrease of ¥4,141 million year on year, and business profit totaled ¥7,288 million, an
increase of ¥6,996 million, resulting in increases in both operating revenue and businessprofit compared with the previous fiscal year. Share of profit (loss) of entities accounted forusing equity method included in business profit in this Business Unit was ¥4,836 million.

–2–

In the housing sales business, sales continued to be recorded for delivery of residential
condominiums of GrandPark Phase 2 in Ho Chi Minh City, Vietnam and other projects fromthe previous fiscal year.
In the fiscal year under review, we participated in the Press Blocks Project, a redevelopment
project in Portland, U.S., as part of our efforts in the property sales business, which is
positioned as the next earnings pillar after the housing sales business in Asia.
Furthermore, in the housing sales business in Asia, we are participating in the business fromthe planning and development phases, engaging in the KAIZEN project for quality
improvement, and aiming to realize a sustainable society through the improvement of basic
performance such as high quality and longevity of housing in each country.
We will also take on the challenge of creating large-scale urban development and providing
new value in developing countries by leveraging our knowledge of cutting-edge digitaltechnologies acquired through our investment in Real Tech Ventures I, a venture capitalfund* specializing in real estate tech companies in Asia and Oceania.
*

A fund aimed at identifying and fostering venture companies that develop new digital technologies to solve
problems in real estate and construction[Investment Management Business Unit]
Operating revenue in the Investment Management Business Unit totaled ¥13,632 million,
which represents an increase of 6.5% year on year, and business profit totaled ¥8,089 million,
an increase of 3.2%, resulting in increases in both operating revenue and business profit
compared with the previous fiscal year.
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 eight properties (total transaction amount of ¥52,484
million) including Landport Narashino, PMO Hamamatsu-cho II and PROUD FLAT Ueno
Matsugaya from Nomura Real Estate Development Co., Ltd., in addition to progress in theformation of private equity funds meeting the needs of investors.
Furthermore, in the fiscal year under review, NMF and NPR have set a goal of becoming
carbon neutral by 2050, and are actively promoting energy-saving measures such as theintroduction of electricity derived from renewable energy and double-sash windows. In
conjunction with this, NPR held the investor information session focused on sustainability.
As a result of these efforts, both NMF and NPR received a five-star rating, the highest ratingin the 2022 Global Real Estate Sustainability Benchmark (GRESB) ratings*, and NMF and
NPR were recognized as Asia Sector Leader (Diversified) in the listed category and nonlisted category, respectively. We will continue to aim to enhance unitholder value throughmanagement that is aware of ESG trends and investor needs.
*

GRESB is an annual benchmark assessment that measures ESG considerations for property companies andfunds.

[Property Brokerage & CRE Business Unit]
Operating revenue in the Property Brokerage & CRE Business Unit totaled ¥47,700 million,
which represents an increase of 9.0% year on year, and business profit totaled ¥13,822
million, an increase of 18.0%, resulting in increases in both operating revenue and businessprofit compared with the previous fiscal year.
In the retail business at Nomura Real Estate Solutions Co., Ltd., the Kameido Center opened
in April 2022 and the Tsukaguchi Center opened in November of the same year, bringing thetotal number of branches for individual customers to 88 as of the end of the fiscal year underreview.
In addition to the use of wooden furniture at new branches and relocated branches of Nomura
no Chukai + (PLUS) for the purpose of forest conservation, and the use of environmentallyfriendly materials, such as diatomaceous earth wallpaper, an environmental material, forbranch interiors, initiatives, etc. that take into consideration employees’ health management
were evaluated, and the company was recognized for the fifth consecutive year as one of theCertified Health & Productivity Management Outstanding Organizations 2023 (White 500–3–under the large enterprise category). In promoting DX, we will work to establish acompetitive advantage and improve sales productivity through aggressive DX investments,
such as joint research on online real estate transactions using My Number (the Individual
Number) and transforming the customer experience through digital utilization starting withelectronic contract procedures, in order to further accelerate growth.
*

Corporate Real Estate. Real estate strategy support services for enterprises (such as consulting on theeffective utilization and trading of real estate).

[Property & Facility Management Business Unit]
Operating revenue in the Property & Facility Management Business Unit totaled ¥105,474
million, which represents an increase of 6.3% year on year, and business profit totaled ¥9,878
million, an increase of 7.3%, resulting in increases in both operating revenue and businessprofit compared with the previous fiscal year.
As of the end of the fiscal year under review, the number of buildings under management was
782 buildings (up 10 from the end of the previous fiscal year), and the number ofcondominiums under management was 189,574 units (up 3,025).
In addition, Nomura Real Estate Partners Co., Ltd. has followed the development of
re:Premium (announced in 2017) and re:Premium Duo (announced in 2021), products that
extend the cycle of large-scale repair work, with a mechanism to extend the timing of
construction implementation with a new proprietary defect insurance policy for management
associations that are experiencing a shortage of repair reserve funds at the time of
construction implementation. This is a system to delay the start of large-scale repair work byconducting surveys and maintenance in advance, and to improve the soundness of repair
reserve funds in the meantime. This initiative has been recognized by the Ministry of Land,
Infrastructure, Transport and Tourism as a model project for extending the life ofcondominium stock, and we are promoting initiatives that contribute to the creation ofsustainable communities through our business activities.
Furthermore, Nomura Real Estate Partners Co., Ltd. was ranked first in the 2022 SumaiSurfin“Management Company Customer Satisfaction Survey” for the 14th consecutive year.
[Other]Operating revenue totaled ¥282 million, which represents an increase of ¥155 million year on
year, and business profit totaled ¥147 million (business loss of the previous fiscal year was¥199 million).
2) Capital investment
In the fiscal year under review, the Company spent a total of ¥35,140 million on capital
investment, including the Shibaura Project.
3) Financing
In the fiscal year under review, the Company procured necessary funds through loans fromfinancial institutions, etc. In addition, we procured ¥10 billion by concluding a loan
agreement with Sumitomo Mitsui Trust Bank, Limited for Positive Impact Finance based on
the assessment of Positive Impact in accordance with the Principles for Positive Impact
Finance advocated by the United Nations Environment Programme Finance Initiative. In
addition, we obtained a rating of Excellent in terms of disaster preparedness and business
continuity management under the DBJ BCM Rated Loan Program conducted by
Development Bank of Japan Inc. and procured ¥2 billion based on the rating.
4) Business transfer, absorption-type company split or incorporation-type company split
Not applicable.
5) Acquisitions of other companies’ businesses
Not applicable.

–4–6) Successions of rights or duties related to the businesses of other legal entities, etc. due toabsorption-type merger or absorption-type company split
As of April 1, 2022, the absorption-type merger has been completed with Nomura Real Estate
Development Co., Ltd. being the surviving company and Nomura Real Estate Building Co.,
Ltd. being the absorbed company and the absorption-type merger has been completed with
Nomura Real Estate Hotels Co., Ltd. being the surviving company and UHM Co., Ltd. being
the absorbed company.
7) Acquisitions and disposals of shares, other equities, and share acquisition rights in othercompanies
On April 20, 2022, Group company Nomura Real Estate Development, Inc. made aninvestment in Federal Land NRE Global Inc. which will be a joint venture with Federal Land,
Inc. The Company’s ratio of voting rights is 34%.
On August 10, 2022, the Company and Nomura Holdings, Inc. established Nomura Real
Asset Investment Co., Ltd. The Company’s ratio of voting rights is 49%.
On December 9, 2022, the Company entered into a business alliance agreement withYARUKI Switch Group Holdings Co., Ltd., and acquired an approximately 9% stake in thecompany on December 16, 2022.

–5–

(2) Trends in operating results and assets in and at the end of the fiscal year under review and themost recent three fiscal years

Classification

Operating revenue

16th term(Fiscal year ended
March 31, 2020)

17th term(Fiscal year ended
March 31, 2021)

676,495

580,660

18th term(Fiscal year ended
March 31, 2022)
645,049(Millions of yen)
19th term(Fiscal year underreview)(Fiscal year ended
March 31, 2023)
654,735

Operating profit

81,90576,333

91,21099,598Business profit

82,83376,44892,765

105,172

Ordinary profit

73,07765,96582,557

94,121

Profit attributable to owners of parent

48,88642,19855,31264,520

Basic earnings per share (Yen)

267.21232.53307.81365.26

Total assets

1,801,273

1,921,306

2,040,506

2,110,693

Net assets

565,120586,350

621,398

655,737

Net assets per share (Yen)

3,031.15

3,229.80

3,478.14

3,756.30

Notes: 1. Business profit = operating profit + share of profit (loss) of entities accounted for using equity
method + amortization of intangible assets associated with corporate acquisitions
2. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020, Accounting Standards Board of Japan), from the
beginning of the fiscal year ended March 31, 2022, and each figure for the fiscal year ended
March 31, 2022 and onwards is the figure after applying the accounting standard.

–6–

(3) Status of parent company and major subsidiaries
1) Parent company
Not applicable.
2) Major subsidiaries
Name

Share Capital(Millions of yen)

Ratio of voting
rights (%)

Principal businesses

Nomura Real Estate Development Co.,
Ltd.

2,000

100.0

General real estate business including saleand leasing of real estate

Nomura Real Estate Asset Management
Co., Ltd.

300

100.0

Investment management services including
REIT and privately placed real estate funds

Nomura Real Estate Solutions Co., Ltd.

1,000

100.0

Brokerage of real estate

Nomura Real Estate Partners Co., Ltd.

200

100.0

General management of office buildings,
condominiums, etc.

Nomura Real Estate Life & Sports Co.,
Ltd.

100

100.0

Planning and operation of sports facilities

Nomura Real Estate Heating andCooling Supply Co., Ltd.

480

100.0

Supply of heat as provided for under theHeat Supply Business Act

Nomura Real Estate Retail Properties
Co., Ltd.

243

100.0

Planning and management of retail facilities

Nomura Real Estate Wellness Co., Ltd.

300

100.0

Planning and operation of housing services
for the elderly

Nomura Real Estate Hotels Co., Ltd.

100

100.0

Planning and operation of hotels

Nomura Real Estate Amenity Service
Co., Ltd.

10

100.0

Cleaning of buildings and condominiums

PRIME X. Co., Ltd.

100

60.0

Internet advertisingMusashi Co., Ltd.

25

100.0

Development and sale of systems related toreal estate

First Living Assistance Co., Ltd.

100

51.0

Services aimed at providing assistance tocustomers concerning their homes

12 thousand
pounds100.0

Investment management services including
privately placed real estate funds in the UK

213,306 million
Vietnamese dong

100.0

Owning and operating office buildings in
VietnamLothbury Investment Management
LimitedZENPLAZA CO., LTD
Notes: 1.

2.
3.
4.

As of April 1, 2022, the absorption-type merger has been completed with Nomura Real Estate Development Co.,
Ltd. being the surviving company and Nomura Real Estate Building Co., Ltd. being the absorbed company and theabsorption-type merger has been completed with Nomura Real Estate Hotels Co., Ltd. being the surviving company
and UHM Co., Ltd. being the absorbed company.
As of April 1, 2023, the absorption-type merger has been completed with PRIME X. Co., Ltd. being the surviving
company and Musashi Co., Ltd. being the absorbed company.
The Company has no specified wholly-owned subsidiary as of the end of the fiscal year under review.
The ratios of voting rights of Nomura Real Estate Amenity Service Co., Ltd., PRIME X. Co., Ltd., Musashi Co.,
Ltd., Lothbury Investment Management Limited, and ZEN PLAZA CO., LTD are calculated based on shares held bysubsidiaries of the Company.

–7–(4) Issues to address
With regard to the medium- to long-term business environment surrounding the Group, various
social issues continue to exist, such as the declining population, falling birthrate and aging
population in Japan, and intensifying competition for human resources due to the decrease in theworking population. In addition, the importance of responding to changing and diversifying
values related to lifestyles, work styles, consumption and leisure time, as well as strengthening
efforts in digital technology and sustainability, is becoming more and more important every day.
During FY2022, we formulated and announced a new mid- to long-term business plan in April
2022, and in this first year of the plan, we promoted each business and initiative with a focus on
further expansion of domestic real estate development business, high profit growth of Service &Management Sector, and steady growth of overseas business as our important business strategies
to realize high profit growth, and high asset and capital efficiency, and all profits, including
business profit, reached record levels.
On the other hand, the current situation still requires close monitoring of soaring energy and raw
material prices, rising interest rates in Japan and overseas, the yen’s depreciation and inflation,and changes in real estate market conditions and construction cost trends associated with thesefactors, and the future outlook is expected to remain uncertain.
Based on the demonstration of the Group’s four strengths, which are market-in approach,business collaboration and value creation within the Group, commitment to quality, and openminded approach to new ideas and businesses, in order to realize our 2030 Vision “Be a ‘Life &Time Developer,’ as never seen before,” we will strive to provide the lives and time (products
and services) that customers will choose under any market conditions by creating value unique tothe Group, starting from the development capabilities we have accumulated through our businessachievements up until now, and adding DX and sustainability elements.
At the same time, the Group will promote sustainability through its business by viewing theGroup’s sustainable growth and contribution to a sustainable society as being integral to eachother.
Furthermore, in the current fiscal year, in addition to “Working with vigor and achieving
wellness” that we have been promoting as one of the action guidelines of the Group, we willbuild a Group-wide human resources strategy (human resource development policy, internal
environment improvement policy, etc.) that is linked to our management strategies, and promote
human capital management.
We appreciate the continued support and encouragement of our shareholders.

–8–(5) Principal business offices (as of March 31, 2023)
Business office of the Company
Head office: 1-26-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo(6) Status of employees (as of March 31, 2023)
1) Employees in the Group
Business
Unit

Residential
Development
Business
Unit

Commercial
Real EstateBusiness
Unit

1,261

1,334

209

601

Numberofemployees
Numberoftemporaryemployees
Notes: 1.
2.

Investment
Management
Business
Unit

Property
Brokerage &CREBusiness
Unit

Property &Facility
Management
Business
Unit

143

199

1,752

2,502

15

489

7,695

3

7

114

2,718

2

43

3,697

Overseas
Business
Unit

Group
overall (incommon)

Other

Total

The number of employees refers to the number of working employees. The number of temporary employees
indicates the annual average number calculated using a baseline of prescribed labor hours of regular employees of
the respective company. Due to the rounding of fractions, total figures may not match.
The figure stated in “Group overall (in common)” indicates the number of employees who belong to administrative
departments, which cannot be categorized as specified business units.

2) Employees in the Company
Number of employees

Increase/decrease from theprevious fiscal year-end

Average age

Average years of service

320

Increase of 37

41.6

12.7

Notes: 1.
2.
3.

Number of employees presents the number of employees, including those concurrently serving at Nomura Real
Estate Development Co., Ltd. and other subsidiaries of the Company. For the fiscal year under review, the Company
has 299 employees who concurrently serve at its subsidiaries.
Figures stated for average age and average years of service include employees concurrently serving at subsidiaries of
the Company.
The figure for average years of service is calculated based on total length of employment with the Group.

(7) Status of principal lenders (as of March 31, 2023)
The Group follows a general principle of Group financing whereby it is chiefly the Company thatprocures financing and supplies these funds to its subsidiaries and associates. Status of principal
lenders as of the end of the fiscal year under review is as follows:(Millions of yen)
LenderAmount borrowed

MUFG Bank, Ltd.

157,500

Sumitomo Mitsui Banking Corporation

112,500

Mizuho Bank, Ltd.

91,500Sumitomo Mitsui Trust Bank, Limited

51,000Resona Bank, Limited

49,000(8) Other important matters relating to the current status of the GroupNot applicable.

–9–2. Status of the Company(1) Shares of the Company (as of March 31, 2023)
1) Total number of shares authorized to be issued by the Company: 450,000,000 shares2) Total number of shares issued:
182,938,437 shares(including 5,462,338 treasury shares)
Notes: 1.
2.

The total number of shares issued increased by 333,800 shares due to the exercise of stock options.
The number of treasury shares above does not include 2,976,697 shares held by the executive compensation BIP(Board Incentive Plan) trust and 576,360 shares held by the ESOP (Employee Stock Ownership Plan) trust for
granting stock for employees.

3) Number of shareholders:
4) Major shareholders (top 10)

28,457
Number of shares held
(Hundreds of shares)

Name

Shareholding ratio (%)

Nomura Holdings, Inc.

647,775

36.49

The Master Trust Bank of Japan, Ltd. (Trust account)

212,748

11.98

Custody Bank of Japan, Ltd. (Trust Account)

111,914

6.30

Nomura Real Estate Holdings Employee Shareholding
Association

30,551

1.72

The Master Trust Bank of Japan, Ltd. (executive compensation
BIP trust account; 76272 account)

29,766

1.67

STATE STREET BANK WEST CLIENT - TREATY 505234

22,453

1.26

SSBTC CLIENT OMNIBUS ACCOUNT

18,415

1.03

JPMorgan Securities Japan Co., Ltd.

16,1880.91

JP MORGAN CHASE BANK 385781

14,864

0.83

THE BANK OF NEW YORK MELLON 140044

14,7560.83

Notes: 1.
2.

Although the Company holds 5,462,338 treasury shares, it is excluded from the list of major shareholders above.
The 5,462,338 treasury shares are excluded in the calculation of the shareholding ratio.

5) Status of shares granted to the officers of the Company as compensation for their executionof duties during the fiscal year under review
Number of shares(Shares)Number of eligible officers

Directors (excluding External Directors and Audit &Supervisory Committee Members)

23,7004

External Directors (excluding Audit & Supervisory
Committee Members)––

Directors (Audit & Supervisory Committee Members)––

Notes: 1.
2.

The contents of the Company’s share-based compensation are described in (2) “4) Compensation, etc. for Directors”
below.
The above also includes shares granted to retired company officers.

6) Other important matters relating to shares
The Company resolved the acquisition of treasury shares, under Article 459, Paragraph 1 of
the Companies Act and Article 32 of the Company’s Articles of Incorporation, at themeetings of the Board of Directors held on October 27, 2022 and January 26, 2023, and madethe acquisition as follows.
Type and number of shares acquired:
Total amount of shares acquired:
Period of acquisition:

3,185,000 common shares¥9,499 million
From October 28, 2022 to April 14, 2023

The Company has introduced a performance-based stock incentive plan for Directors(“executive compensation BIP trust”), according to a resolution at the 14th Ordinary General
Meeting of Shareholders held on June 26, 2018, and a resolution at the 18th Ordinary General
Meeting of Shareholders held on June 24, 2022 partially revised this plan and changed thescope of the plan to include Directors (excluding Directors as Audit & Supervisory
Committee Members and non-residents of Japan). At the end of the fiscal year under review– 10 –

(March 31, 2023), the number of shares of the Company held by the executive compensation
BIP trust, including those of major subsidiaries such as Nomura Real Estate Development
Co., Ltd. which introduced same plan, was 2,976,697 shares.
Furthermore, the Company has introduced the “ESOP (Employee Stock Ownership Plan)trust for granting stock,” an incentive plan for employees of the Company and the Group,
according to a resolution at the meeting of the Board of Directors held on February 21, 2019.
At the end of the fiscal year under review (March 31, 2023), the number of shares of theCompany held by the ESOP (Employee Stock Ownership Plan) trust for granting stock was
576,360 shares.

– 11 –

(2) Status of company officers
1) Directors (as of March 31, 2023)
Name

Position and responsibility in the
CompanySignificant concurrent positions

Shoichi Nagamatsu

Chair and Director

Director of Nomura Real Estate Development Co.,Ltd.

Eiji Kutsukake

President and Representative Director,
and Chief Executive Officer
Group CEO

Chair and Representative Director of Nomura Real
Estate Development Co., Ltd.

Daisaku Matsuo

Executive Vice President andRepresentative Director
Group COO

President and Representative Director, and Chief
Executive Officer of Nomura Real Estate
Development Co., Ltd.

Satoshi Arai

Executive Vice President and Director,
and Executive Officer

Director of Nomura Real Estate Development Co.,Ltd.

Makoto Haga

Director and Executive Officer
Business Unit Manager of Commercial
Real Estate Business Unit

Director and Senior Managing Executive Officer of
Nomura Real Estate Development Co., Ltd.

Hiroshi Kurokawa

Director and Executive Officer
Group CFO
Supervisor of Management Division
Investor relations

Director and Senior Managing Executive Officer of
Nomura Real Estate Development Co., Ltd.

Hiroyuki Kimura

Director(Full-time Audit & Supervisory
Committee Member)

Audit & Supervisory Board Member of Nomura
Real Estate Development Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Solutions Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Partners Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Life & Sports Co., Ltd.

Yasushi Takayama

Director(Full-time Audit & Supervisory
Committee Member)

Audit & Supervisory Board Member of Nomura
Real Estate Development Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Asset Management Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Solutions Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Partners Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Wellness Co., Ltd.
Audit & Supervisory Board Member of Nomura
Real Estate Hotels Co., Ltd.
Audit & Supervisory Board Member of PRIME X.
Co., Ltd.

Yoshio Mogi

Director(Audit & Supervisory Committee
Member)–Akiko Miyakawa

Director(Audit & Supervisory Committee
Member)Representative of Akiko Miyakawa CPA OfficeTetsu Takahashi

Director(Audit & Supervisory Committee
Member)Executive Partner of ITN law office
External Director of McDonald’s Holdings
Company (Japan), Ltd.

Notes: 1.
2.
3.

4.

Satoshi Arai was elected as Director at the Ordinary General Meeting of Shareholders held on June 24, 2022, andassumed his office.
Director Tetsuro Higashi assumed his office as Chairman of the Board of Directors of Rapidus Corporation on
August 10, 2022.
Director Tetsuro Higashi resigned as Director on December 31, 2022. At the time of his resignation, he was anExternal Director and an Independent Director as stipulated under the regulations of the Tokyo Stock Exchange.
Also, he held the significant concurrent positions of Outside Director of Seven & i Holdings Co., Ltd., Outside
Director of UBE Corporation, and Chairman of the Board of Directors of Rapidus Corporation.
Directors (Audit & Supervisory Committee Members) Yoshio Mogi, Akiko Miyakawa and Tetsu Takahashi areExternal Directors.

– 12 –

5.

Directors (Audit & Supervisory Committee Members) Yoshio Mogi, Akiko Miyakawa and Tetsu Takahashi are
Independent Directors/Auditors as stipulated under the regulations of the Tokyo Stock Exchange.
6. Directors (Audit & Supervisory Committee Members) Hiroyuki Kimura and Yasushi Takayama have extensive
knowledge of finance and accounting from their many years of business experience in finance.
7. Director (Audit & Supervisory Committee Member) Yoshio Mogi has extensive knowledge of finance andaccounting due to his business experience as CFO at a company listed on the First Section of the Tokyo Stock
Exchange.
8. Director (Audit & Supervisory Committee Member) Akiko Miyakawa has great knowledge and experience andprofound insights as an expert at accounting and auditing acquired through her many years working as a Certified
Public Accountant.
9. The Company appoints full-time Audit & Supervisory Committee Members to strengthen the auditing andsupervising function by collecting information from the Directors (excluding Audit & Supervisory Committee
Members), Executive Officers, employees, etc., attending at important company meetings, and ensuring sufficient
coordination between the committee and the internal audit department and others.
10. As of April 1, 2023, positions and responsibilities and significant concurrent positions of Directors Eiji Kutsukake,
Satoshi Arai, Makoto Haga, Hiroshi Kurokawa and Shoichi Nagamatsu, and Director (Audit & Supervisory
Committee Member) Hiroyuki Kimura are as follows:
Position and responsibility in the
Name
Significant concurrent positions
Company
Eiji Kutsukake

Chair and Director

Director of Nomura Real Estate Development Co.,Ltd.

Satoshi Arai

President and Representative Director,
and Chief Executive Officer
Group CEO

Chair and Representative Director of Nomura Real
Estate Development Co., Ltd.

Makoto Haga

Executive Vice President andRepresentative Director
Supervisor of Management Division

Executive Vice President and Representative
Director of Nomura Real Estate Development Co.,Ltd.

Hiroshi Kurokawa

Director and Executive Officer
Director and Senior Managing Executive Officer ofBusiness Unit Manager of Commercial Nomura Real Estate Development Co., Ltd.
Real Estate Business Unit

Shoichi Nagamatsu

Director–

Hiroyuki Kimura

Director(Full-time Audit & Supervisory
Committee Member)

Audit & Supervisory Board Member of Nomura Real
Estate Development Co., Ltd.
Audit & Supervisory Board Member of Nomura Real
Estate Solutions Co., Ltd.
Audit & Supervisory Board Member of Nomura Real
Estate Partners Co., Ltd.
Audit & Supervisory Board Member of Nomura Real
Estate Life & Sports Co., Ltd.
Audit & Supervisory Board Member of Nomura Real
Estate Retail Properties Co., Ltd.

2) Outline of limited liability agreements
Director Shoichi Nagamatsu and five Directors as Audit & Supervisory Committee Members,
have entered into agreements with the Company to limit their liability for damages provided
for in Article 423, Paragraph 1 of the Companies Act, pursuant to the provisions of Article
427, Paragraph 1 of the Companies Act. The maximum amount of liability based on the said
agreements, on condition that they perform their duties in good faith and without grossnegligence, shall be the sum of the amounts stipulated in each item of Article 425, Paragraph
1 of the Companies Act.
The Company had also entered into a similar agreement with Director Tetsuro Higashi, who
resigned on December 31, 2022 to limit his liability for damages. The Company has also
entered into a similar limited liability agreement with Director Eiji Kutsukake effective April
1, 2023 to limit his liability for damages.
3) Outline, etc. of the directors and officers liability insurance policy
The Company has entered into a directors and officers liability insurance policy with aninsurance company pursuant to the provisions of Article 430-3, Paragraph 1 of theCompanies Act. The insurance policy covers litigation expenses and the amount of legal
indemnification to be borne by insureds due to corporate lawsuits, third-party lawsuits,derivative lawsuits, etc. against the insureds. The insureds in this insurance policy are
Directors (including Directors as Audit & Supervisory Committee Members), Audit &– 13 –

Supervisory Board Members and Executive Officers of the Company and some of theCompany’s subsidiaries (including consolidated subsidiaries in which the Company or its
subsidiary has an investment ratio of more than 50%), and the Company bears the fullamount of the insurance premiums for all of the insureds. However, the amount of litigation
expenses and legal indemnification, etc. resulting from an illegal act, etc. committed by aninsured are not covered by the insurance policy.
4) Compensation, etc. for Directors
a. Policy, etc. regarding decisions on the details of compensation, etc. for Directors
At a meeting of the Board of Directors, the Company resolved the policy for deciding thedetails of the compensation, etc. for each individual Director excluding Audit & Supervisory
Committee Members. In addition, the Company established the Advisory Committee
Relating to Nominations and Compensation, where the majority of members composing thatbody are Independent External Directors, and the Board of Directors resolved the operation,etc. of the compensation plan for the Directors, based on the deliberation by the committee
and on the committee’s opinion reported to the Board of Directors.
Furthermore, the Board of Directors has judged that the compensation, etc. for eachindividual Director in the fiscal year under review is in line with this policy regarding
decisions of compensation, etc. as it has confirmed that the method for deciding the details ofcompensation, etc. and the details of the compensation, etc. that were determined areconsistent with this policy regarding decisions of compensation, etc.
The details of the policy regarding decisions of the details of the compensation, etc. for eachindividual Director are as follows.
A) Basic policya) Compensation for Directors consists of a structure that is linked to the mid- to longterm business plan, etc. in order to sufficiently work as an incentive for the sustainableimprovement of corporate value, and the Company’s basic policy in deciding
compensation for each Director is to provide an appropriate level of compensationaccording to the role and position as a Director.
b) Operation and revision of the compensation plan for Directors and the amount of thecompensation for Directors are determined by the Board of Directors based on the
deliberation by the Advisory Committee Relating to Nominations and Compensationand its opinion reported to the Board of Directors.
c) In reviewing the appropriateness of the compensation level and the content of theshare-based compensation plan, the Company takes consideration of factors such as
the size of the Company and business characteristics, after obtaining advice from anexternal compensation consultant as necessary.
d) Compensation of Directors concurrently serving as Executive Officers consists of“base compensation,” “bonus” and “share-based compensation” so that it works as aclear incentive to improve performance not only for the short-term, but also for the
medium- to long-term.
e) Compensation of the Chair and Director and External Directors is made up of the“base compensation” and the “restricted shares (“RS”) portion of share-based
compensation,” taking into account the sharing of interests with shareholders, since
the Chair and Director is responsible for supervising execution of business from an
objective standpoint and also for enhancing long-term corporate value.
f) Compensation of Part-time Internal Directors consists only of “base compensation”
due to their role of supervising the business execution from an objective standpoint.
B) Policy regarding decisions on the percentage of each type of compensation for each
Directora) The composition ratio of each type of compensation for Directors concurrently
serving as Executive Officers is decided based on b) and d) in A) above.

– 14 –

b) The composition ratio of each type of compensation for the Chair and Director andExternal Directors is decided based on b) and e) in A) above.
c) Compensation of Part-time Internal Directors consists only of “base compensation”
based on b) and f) in A) above.
C) Policy regarding decisions on the amount of fixed compensation (base compensation)for each Director (including the policy regarding decisions on the timing and conditions
for paying compensation)a) The amount of fixed compensation (base compensation) for each Director shall be
determined according to the role and position as a Director.
b) The fixed compensation (base compensation) shall be paid monthly.
D) Policy regarding decisions on the details of variable compensation (bonus and sharebased compensation) for each Director and the calculation method for the monetaryamount or number of shares (including the policy regarding decisions on the timing andconditions for paying compensation)<Bonus>a) The amount of bonus is determined according to the Company’s businessperformance, such as consolidated business profit, and evaluation of individuals.
b) The evaluation of performance retains a central emphasis on evaluation above but
also evaluates by non-financial indicators (sustainability factors, etc.).
c) The evaluation of individuals evaluates the progress of initiatives for single-year andthe medium- to long-term, for which achievements are difficult to measure based only
on the figures of financial results.
d) It shall be paid at a certain time after the end of each fiscal year.
<Share-based compensation>a) The performance-based compensation adopts performance-sharing (“PS”) providing
incentive for enhancement of medium- to long-term performance, and implements,
after three years of the commencement of each business year, delivery or payment(“delivery, etc.”) of the Company’s shares and/or an amount equivalent to theproceeds of converting the Company’s shares into cash (the “Company Shares, etc.”).
b) The non-performance-based compensation adopts restricted shares (“RS”) providing
an incentive for long-term contributions and enhancement of corporate value to delay
delivery, etc. until retirement as an officer.

– 15 –

c) The share-based compensation adopts the system of executive compensation BIP(Board Incentive Plan) trust (the “Trust”). The Company Shares, etc. to be delivered,etc. is set at one Company’s share per one point, according to the number of points
calculated based on the formula below.
[Calculation formula of points]• PS portion
The number of points (the “Number of PS Points”) to be granted to Directors for eachfiscal year during the covered period is calculated by dividing the amount of predetermined base compensation with respect to each executive position by the shareprice as of the acquisition of the Company’s shares by the Trust.
The number of performance-based points shall be calculated by multiplying the
Number of PS Points granted for each fiscal year by the performance-based
coefficient determined based on the level of performance three years after the
beginning of the applicable fiscal year.
For the performance-based coefficient, the target ranges (0-200%) are set based on the“business profit” from the viewpoint of profit growth, and return on equity (ROE)from the viewpoint of maintaining the capital efficiency, out of the management
benchmarks listed in the mid- to long-term business plan.
• RS portion
The number of points (the “Number of RS Points”) to be granted to Directors andadded for each fiscal year during the covered period is calculated by dividing theamount of pre-determined base compensation with respect to each executive positionby the share price as of the acquisition of the Company’s shares by the Trust.
E) Matters regarding the method for determining the details of compensation for each
Directora) The determination of the specific details of the amount of base compensation andbonuses, both of which are monetary compensations, to be paid out is delegated to the
President and Representative Director based on a resolution of the Board of Directors.
b) The payment level shall be deliberated by the Advisory Committee Relating toNominations and Compensation for the appropriate exercise of the authority stated ina) above by the President and Representative Director.
F) Other important matters relating to compensation for each Director
Regarding share-based compensation, the Company formulated “share delivery
regulation” to handle repayment claims at an amount equivalent to the Company Shares,
etc. to be delivered, etc. in the event that specific circumstances (improper conduct, etc.)
occur.

– 16 –

b. Total amount of compensation, etc. for the fiscal year under review
Breakdown

Category

Total
number of
persons
paid

Monetary compensation(Millions of yen)

Total
payment
amount(Millionsof yen)Bonus(Performance-based incentive, etc.)

Base compensation
Number of
persons paid

Amount paid

Number of
persons paid

Amount paid

5151

Directors (excluding
Audit & Supervisory
Committee Members)

7

674

7

308

(Of which,External
Directors)

(1)

(12)

(1)

(12)

(–)

Directors (Audit &Supervisory Committee
Members)

5

151

5

151

–

(Of which,External
Directors)

(3)

(49)

(3)

(49)

(–)

Total

12

825

12

459

5

151

Breakdown

Category

Share-based compensation, etc.
(Non-monetary compensation, etc.)(Millions of yen)
Performance-based
compensation
Number of
persons paid

Directors (excluding
Audit & Supervisory
Committee Members)

Amount paid

Non-performance-based
compensation
Number of
persons paid

120

5

Amount paid

6

94

(Of which,External
Directors)

(–)

(–)

Directors (Audit &Supervisory Committee
Members)––(Of which,External
Directors)

(–)

(–)

Total
Notes: 1.
2.

3.

5

120

6

94

The number of Directors (excluding Directors as Audit & Supervisory Committee Members) shown above includes
one Director (External Director) who retired on December 31, 2022. The number of Directors (excluding Directors
as Audit & Supervisory Committee Members) is currently six as of the end of the fiscal year under review.
The compensation amount (“base compensation” and “bonus”) of Directors has been set as no greater than ¥550
million per year for Directors (excluding Directors as Audit & Supervisory Committee Members) according to a
resolution at the Ordinary General Meeting of Shareholders held on June 26, 2018, and at the time of the resolution,
the number of Directors (excluding Directors as Audit & Supervisory Committee Members) was eight (of which,
two were External Directors). Furthermore, the compensation amount of Directors (Audit & Supervisory Committee
Members) is limited to up to ¥170 million per year according to a resolution at the Ordinary General Meeting of
Shareholders held on June 23, 2020. The number of Directors as Audit & Supervisory Committee Members at thetime of the resolution was six (including four External Directors). The compensation amount of Directors is shownas the amount recorded by the Company as an expense during the fiscal year under review regardless of whether it
was paid during the fiscal year under review.
Apart from the compensation amount for Directors in Note 2 above, the Company has introduced a performancebased stock incentive plan. In accordance with a resolution at the Ordinary General Meeting of Shareholders held on
June 24, 2022, the Company’s contribution to a trust as compensation for Directors (excluding Directors as Audit &– 17 –

4.

Supervisory Committee Members) will be an amount of not more than ¥1,650 million over the relevant period of
three fiscal years for this compensation plan. The number of Directors (excluding Directors as Audit & Supervisory
Committee Members) who were subject to the plan at the time of the resolution was seven (including one External
Director). In addition, the amount paid as “share-based compensation, etc. (non-monetary compensation, etc.)”
above includes performance-based stock incentive recorded as an expense for the fiscal year under review.
With respect to the performance-based compensation, the details of factors including the performance indicators thatpertain to bonuses, which are monetary compensation, the calculation method of such bonuses and the reasons forselecting these indicators are as stated in the “a. Policy, etc. regarding decisions on the details of compensation, etc.
for Directors,” and the actual results that pertain to performance indicators are as presented in the table below. As
shown in Note 2 above, the amount paid as “monetary compensation” above includes the amount recorded by theCompany as an expense during the fiscal year under review. Furthermore, the difference (¥2 million) between theprovision for bonuses for Directors (and other officers) for four Directors (excluding Directors as Audit &Supervisory Committee Members and External Directors) in the previous fiscal year and the bonus amount paid
during the fiscal year under review is not included in amount paid in “Bonus (Performance-based incentive, etc.)”
above.
Year-on-year
Business profitchangeFiscal year ended¥105,172 million+13.4%March 31, 2023

5.

With respect to the performance-based compensation, the details of factors including the performance indicators thatpertain to share-based compensation, etc., the calculation method of such share-based compensation, etc. and thereasons for selecting these indicators are as stated in the “a. Policy, etc. regarding decisions on the details ofcompensation, etc. for Directors,” and the actual results that pertain to performance indicators are as presented in thetable below. As shown in Note 3 above, the amount paid as “share-based compensation, etc. (non-monetarycompensation, etc.)” above includes performance-based stock incentive recorded as an expense for the fiscal year
under review.
The achievementBusiness profit
ROE
linked coefficient
Fiscal year ended
127.0%¥92,765 million
9.2%
March 31, 2022
Fiscal year ended
192.0%¥105,172 million
10.1%
March 31, 2023

6.

Non-monetary compensation, etc. consists of the Company’s shares, etc. and the conditions, etc. for delivery are asstated in the “a. Policy, etc. regarding decisions on the details of compensation, etc. for Directors.”
As stated in “a. Policy, etc. regarding decisions on the details of compensation, etc. for Directors,” for FY2022,
decisions on the specific details concerning the amount of base compensation, which is monetary compensation, tobe paid out are decided by Eiji Kutsukake, who served as President and Representative Director until March 31,
2023 (currently Chair and Director), and decisions on the specific details concerning the amount of bonuses to be
paid out are decided by Satoshi Arai, who has been serving as President and Representative Director since April 1,
2023, in accordance with the decision on delegation by the Board of Directors. The reason for this delegation to the
President and Representative Director is that the Company has judged the President and Representative Director as
appropriate to conduct the individual evaluation of each Director while considering, among other things,
performance of the Company overall. The payment level is deliberated by the Advisory Committee Relating toNominations and Compensation for the appropriate exercise of the decision authority delegated to the President andRepresentative Director.
The Company revised the policy regarding decisions of the details of the compensation, etc. for each individual
Director excluding Audit & Supervisory Committee Members from FY2022, deciding that the details andcalculation method for performance indicators, etc., relating to bonuses, which are monetary compensation, would
retain a central emphasis on evaluation of performance in terms of consolidated business profit, etc., but would also
now include an evaluation by non-financial indicators (sustainability factors, etc.). The purpose of this change is toincrease Directors’ awareness of sustainability, and in FY2022, the Company conducted an evaluation based on
BEI* as a non-financial indicator.
Building Energy-efficiency Index. An index for evaluating the energy-efficiency performance of buildings based on
the energy-efficiency standards under the Act on the Improvement of Energy Consumption Performance of
Buildings (Building Energy Efficiency Act). It represents the primary energy consumption standard for buildings.

7.

8.

*

– 18 –

5) External Officers
a. Relations between other organizations where significant concurrent positions are assumed
and the Company
Category
Director

Name
Tetsuro Higashi

Significant concurrent positions

Relationship with the Company

Outside Director of Seven & i
Holdings Co., Ltd.

Not applicable

Outside Director of UBE Corporation

Not applicable

Chairman of the Board of Directors of
Rapidus Corporation

Not applicable

Director
Yoshio Mogi
(Audit & Supervisory
Committee Member)––

Director
Akiko Miyakawa(Audit & Supervisory
Committee Member)

Representative of Akiko Miyakawa
CPA Office

Not applicable

Director
Tetsu Takahashi(Audit & Supervisory
Committee Member)

Executive Partner of ITN law office

Not applicable

External Director of McDonald’s
Holdings Company (Japan), Ltd.

Not applicable

Notes: 1.
2.

Director Tetsuro Higashi assumed his office as Chairman of the Board of Directors of Rapidus Corporation on
August 10, 2022.
Director Tetsuro Higashi resigned as Director on December 31, 2022.

b. Main activities for the fiscal year under review
Category
Director

Name
Tetsuro Higashi

Main activities and outline of duties performed in relation to expected roles
Mr. Higashi attended 10 out of 11 meetings of the Board of Directors held
during the fiscal year under review until he retired on December 31, 2022. He
was expected to contribute to strengthening the supervisory function of theBoard of Directors and ensuring fair and transparent management. He
expressed his opinions at the meetings of the Board of Directors by drawing on
his wealth of knowledge, experience, and profound insights related to corporate
management. In addition, he was a Chairman of the Advisory Committee
Relating to Nominations and Compensation.

Director
Yoshio Mogi
(Audit & Supervisory
Committee Member)

Mr. Mogi attended 15 out of 15 meetings of the Board of Directors and 12 outof 12 meetings of the Audit & Supervisory Committee held during the fiscal
year under review. He is expected to contribute to strengthening the supervisory
function of the Board of Directors and the corporate governance structure, as
well as to enhancing the auditing structure. He expressed his opinions at themeetings of the Board of Directors and at the meetings of the Audit &Supervisory Committee by drawing on his wealth of knowledge, experience,and profound insights related to corporate management. In addition, he is amember of the Advisory Committee Relating to Nominations andCompensation.

Director
Akiko Miyakawa(Audit & Supervisory
Committee Member)

Ms. Miyakawa attended 15 out of 15 meetings of the Board of Directors and 12
out of 12 meetings of the Audit & Supervisory Committee held during the fiscal
year under review. She is expected to contribute to strengthening thesupervisory function of the Board of Directors and the corporate governancestructure, as well as to enhancing the auditing structure. She expressed her
opinions at the meetings of the Board of Directors and at the meetings of the
Audit & Supervisory Committee by drawing on her wealth of knowledge,
experience, and profound insights as an expert at accounting and auditing.

Director
Tetsu Takahashi(Audit & Supervisory
Committee Member)

Mr. Takahashi attended 15 out of 15 meetings of the Board of Directors and 12
out of 12 meetings of the Audit & Supervisory Committee held during the fiscal
year under review. He is expected to contribute to strengthening the supervisory
function of the Board of Directors and the corporate governance structure, as
well as to enhancing the auditing structure. He expressed his opinions at themeetings of the Board of Directors and at the meetings of the Audit &Supervisory Committee by drawing on his wealth of knowledge, experience,and profound insights as a legal expert, as a representative of a law firm, and as
an outside director and outside audit & supervisory board member. In addition,
he is a member of the Advisory Committee Relating to Nominations andCompensation and has been a Chairman of the said committee since January 1,
2023.

– 19 –

(3) Accounting Auditor
1) NameErnst & Young ShinNihon LLC

2) Amount of compensation, etc.
Amount of payment(Millions of yen)

Category
Amount of compensation, etc. to be paid to the Accounting Auditor for the fiscal year
under review

90

Total amount of money and other financial profits to be paid by the Company and its
subsidiaries to the Accounting Auditor

202

Notes: 1.

2.

3.

Since the audit contract between the Company and the Accounting Auditor does not clearly distinguish between theamounts of compensation, etc. for audits conducted based on the Companies Act and based on the Financial
Instruments and Exchange Act, respectively and it is not possible to substantively distinguish them, the amount ofcompensation, etc. to be paid to the Accounting Auditor for the fiscal year under review is the total amount for both.
The Audit & Supervisory Committee obtained necessary resources and received reports from the Directors, financedivision and the Accounting Auditor, and upon doing so, it confirmed the Accounting Auditor’s record ofachievements and record of compensation in the past and examined the Accounting Auditor’s audit plan and groundsof the calculation of the compensation estimate for the fiscal year under review. As a result, the Audit & Supervisory
Committee judged that the Accounting Auditor’s amount of compensation, etc. was suitable and provided its consent
pursuant to Article 399, Paragraph 1 of the Companies Act.
Of the Company’s major subsidiaries, Lothbury Investment Management Limited, and ZEN PLAZA CO., LTD are
subject to auditing by Certified Public Accountants and auditing firms (including those with equivalentqualifications overseas) other than the Company’s Accounting Auditor.

3) Description of non-auditing services
Not applicable.
4) Policy for dismissal or non-reappointment decision of Accounting Auditor
If the Accounting Auditor is recognized as falling under any of the items listed in Article 340,
Paragraph 1 of the Companies Act, the Audit & Supervisory Committee shall dismiss the
Accounting Auditor with the unanimous consent of all Audit & Supervisory Committee
Members.
In addition, notwithstanding the above, if it is recognized that the Accounting Auditor’s
fulfilment of appropriate auditing would be difficult due to the occurrence of reasons thatcompromise the eligibility or independence of the Accounting Auditor, the Audit &Supervisory Committee shall propose the dismissal or non-reappointment of the Accounting
Auditor at a General Meeting of Shareholders.

– 20 –

(4) Policy regarding decisions on the dividends of surplus
As for the year-end dividend, the Company set the year-end dividend for the fiscal year ended
March 31, 2023 at 65.0 yen per share, which is an increase of 5.0 yen per share from the forecast
announced in January 2023. Combined with the second quarter-end dividend already paid, theannual dividend per share is 120.0 yen.
In addition, treasury shares were purchased* based on comprehensive consideration of factors
such as financial soundness, share price and the business environment. As a result, the total return
ratio for the fiscal year under review was 47.6%.
Under the mid- to long-term business plan, which was formulated in April 2022, the Company
set a policy of the total return ratio to be 40-50% in Phase 1 (from the fiscal year ended March
31, 2023 to the 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, 2024 at 65.0 yen per share, therefore the annual dividend per shareis expected to be 130.0 yen.
* Acquisition of treasury shares by resolution at the meetings of the Board of Directors held on October 27, 2022, andJanuary 26, 2023
Type and number of shares acquired: 3,185,000 common shares
Total amount of shares acquired:¥9,499 million
Period of acquisition:
From October 28, 2022 to April 14, 2023

– 21 –

CONSOLIDATED BALANCE SHEETAs of March 31, 2023
(Millions of yen)
Liabilities

AssetsCurrent Assets:
Cash and Deposits
Notes and Accounts Receivable - Trade,
and Contract Assets

1,182,306
29,06340,890Real Estate for Sale

447,194

Real Estate for Sale in Process

368,384

Land Held for Development

182,714

Equity Investments

32,320Other

81,751

Allowance for Doubtful Accounts(14)

Non-current Assets:

928,387

Property, Plant and Equipment

706,472

Buildings and Structures

182,634

Land

477,013

Other

46,824

Intangible Assets

20,384

Investments and Other Assets

201,529

Investment Securities

142,031

Leasehold and Guarantee Deposits

31,763

Deferred Tax Assets

18,756

Other

8,979

Allowance for Doubtful Accounts

Total Assets

Current Liabilities:
Notes and Accounts Payable - Trade
Short-term Borrowings
Current Portion of Bonds Payable
Income Taxes Payable
Deposits Received
Provision for Bonuses
Provision for Bonuses for Directors (andOther Officers)
Provision for Loss on Business
Liquidation
Other
Non-current Liabilities:
Bonds Payable
Long-term Borrowings
Leasehold and Guarantee Deposits
Received
Deferred Tax Liabilities
Deferred Tax Liabilities for Land
Revaluation
Provision for Share Awards
Retirement Benefit Liability
Other
Total Liabilities

327,82965,805
117,864
20,00013,278
19,686
11,204600
479,385
1,127,127
130,000
853,684
58,44445,8293,903
4,300
15,115
15,8491,454,956

Net Assets(0)2,110,693

Shareholders’ Equity:
Share Capital
Capital Surplus
Retained Earnings
Treasury Shares
Accumulated Other Comprehensive
Income:Valuation Difference on Available-forsale Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation
Adjustment
Remeasurements of Defined Benefit
Plans
Share Acquisition Rights:
Non-controlling Interests:
Total Net Assets
Total Liabilities and Net Assets

Note: The figures are denoted by rounding fractions down to the unit indicated.

– 22 –

636,107
119,054
115,444427,064(25,456)
17,199
5,755
40
7,868
3,348
186
658
1,772
655,737
2,110,693

CONSOLIDATED STATEMENT OF INCOME(From April 1, 2022 to March 31, 2023)(Millions of yen)

Operating Revenue
Operating Costs
Operating Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-operating Income
Interest Income
Dividend Income
Share of Profit of Entities Accounted for Using Equity Method
Other
Non-operating Expenses
Interest Expenses
Other
Ordinary Profit
Extraordinary Income
Gain on Sales of Non-current Assets
Extraordinary Losses
Impairment Losses
Loss on Building Reconstruction
Profit before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent
Note: The figures are denoted by rounding fractions down to the unit indicated.

– 23 –

654,735
432,073
222,662
123,064
99,598
6,050
111
54
4,872
1,011
11,527
10,221
1,306
94,121
6,873
6,873
12,905
7,911
4,993
88,08827,737(4,349)64,701
180
64,520NON-CONSOLIDATED BALANCE SHEETAs of March 31, 2023
(Millions of yen)
Liabilities

AssetsCurrent Assets:

Current Liabilities:

417,506

187,498

Cash and Deposits

6,280

Short-term Borrowings

116,000

Accounts Receivable - Trade

2,212

Current Portion of Bonds Payable

20,000Accounts Payable - Other

1,063

Accrued Expenses

1,212

Prepaid Expenses
Short-term Loans Receivable
Other
Non-current Assets:
Property, Plant and Equipment

110404,496

1,019
488

Tools, Furniture and Fixtures452

Construction in Progress

78

Intangible Assets

1,506

Software

1,039

Other

466

Investment Securities
Shares of Subsidiaries and Associates
Investments in Capital
Long-term Loans Receivable from
Subsidiaries and Associates

Deposits Received

1,252,199

Buildings

Investments and Other Assets

Income Taxes Payable

4,405

48,163

Provision for Bonuses

360

Provision for Bonuses for Directors (andOther Officers)

151

Other

188

Non-current Liabilities:

1,249,673
3,844

211

985,468

Bonds Payable

130,000

Long-term Borrowings

846,000

Provision for Share Awards

506

Provision for Loss on Business of
Subsidiaries and Associates

217
8,744

Other

184,698

358

Total Liabilities

1,172,966
Net Assets

1,059,400
Shareholders’ Equity:496,121

3,589

Share Capital

119,054

Deferred Tax Assets

452

Capital Surplus

119,418

Other

24

Legal Capital Surplus

119,418

Retained Earnings

283,103

Other Retained Earnings

283,103

Long-term Prepaid Expenses

Allowance for Doubtful Accounts(2,547)

Reserve for Purchase of SpecificSharesRetained Earnings Brought Forward
Treasury Shares

1,669,705

283,032(25,456)

Valuation and Translation Adjustments:(40)

Valuation Difference on Available-forsale Securities(40)

Deferred Gains or Losses on Hedges(0)Share Acquisition Rights:

658

Total Net Assets
Total Assets

71

Total Liabilities and Net Assets

Note: The figures are denoted by rounding fractions down to the unit indicated.

– 24 –

496,739
1,669,705

NON-CONSOLIDATED STATEMENT OF INCOME
For the year ended March 31, 2023
(Millions of yen)

Operating Revenue
Dividends from Subsidiaries and Associates
Financial Revenue
Business Advisory Fee
Other
Operating Costs
Operating Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-operating Income
Interest Income
Dividend Income
Interest on Refund of Income Taxes
Gain on Forfeiture of Unclaimed Dividends
Other
Non-operating Expenses
Loss on Investments in Partnership
Commission Fee
COVID-19 Workplace Vaccination Fee
Other
Ordinary Profit
Extraordinary Income
Gain on Reversal of Share Acquisition Rights
Extraordinary Losses
Provision for Loss on Business of Subsidiaries and Associates
Profit before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
ProfitNote: The figures are denoted by rounding fractions down to the unit indicated.

– 25 –

48,17025,14917,324
1,002
4,693
8,056
40,113
11,16028,952
27
0
11
9
5
0
194
111
54
28
0
28,7856
6217
217
28,575984
79
27,511

Audit Report of Accounting Auditor on Consolidated Financial Statements(Translation)

Independent Auditor’s Report
May 15, 2023
To the Board of Directors
Nomura Real Estate Holdings, Inc.
Ernst & Young ShinNihon LLC
Toshihiro Morishige (Seal)
Certified Public Accountant
Designated and Engagement Partner
Kenji Sato (Seal)
Certified Public Accountant
Designated and Engagement Partner
Natsuki Saiki (Seal)
Certified Public Accountant
Designated and Engagement Partner
OpinionPursuant to Article 444, Paragraph 4 of the Companies Act, we have audited the consolidated financial statements, which
comprise the consolidated balance sheet, the consolidated statement of income, the consolidated statement of changes inshareholders’ equity and the notes to the consolidated financial statements of Nomura Real Estate Holdings, Inc. (the“Company”) applicable to the fiscal year from April 1, 2022 through March 31, 2023.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position and results of operations of the Nomura Real Estate Group, which consisted of the Company and consolidated
subsidiaries, applicable to the fiscal year ended March 31, 2023 in conformity with accounting principles generally accepted inJapan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements sectionof our report. We are independent of the Company and its consolidated subsidiaries in accordance with the ethical requirementsthat are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Other Information
The other information refers to the business report and its supplementary schedules. Management is responsible for preparing
and disclosing the other information. In addition, the Audit & Supervisory Committee is responsible for overseeing the
Directors’ performance of duties within the maintenance and operation of the reporting process for the other information.
The scope of our audit opinion on the consolidated financial statements does not include the content of the other information,
and we do not express an opinion regarding the other information.
Our responsibility in auditing the consolidated financial statements is to read through the other information, and in the process ofreading it, we examine whether there are material differences between the other information and the consolidated financial
statements or the knowledge we have gained in the auditing process, and we also pay attention as to whether there are any
indications in the other information of material errors besides such material differences.
If we determine there to be material errors in the other information based on the work we have performed, we are required toreport those facts.
There are no matters to report regarding the other information.
Management’s and Audit & Supervisory Committee’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance withaccounting principles generally accepted in Japan, and for designing and operating such internal control as management
determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare
the consolidated financial statements with the assumption of a going concern, and in accordance with accounting principles
generally accepted in Japan, for disclosing, as necessary, matters related to going concern.
Audit & Supervisory Committee is responsible for overseeing the Directors’ performance of duties within the maintenance andoperation of the financial reporting process.

– 26 –

Auditor’s Responsibility for the Audit of the Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that expresses our opinion on the
consolidated financial statements based on our audit from an independent point of view. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence thedecisions of users of these consolidated financial statements.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional
skepticism throughout the audit process to perform the following:・ Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. Obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
・ When auditing the consolidated financial statements, obtain an understanding of internal control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances in making risk assessments, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control.
・ Evaluate the appropriateness of accounting policies used by management and their method of application, as well as thereasonableness of accounting estimates made by management and related notes thereto.
・ Conclude on the appropriateness of preparing the consolidated financial statements with the assumption of a going concern
by management, and based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor’s report to the notes to the consolidated financial
statements or, if the notes to the consolidated financial statements on material uncertainty are inadequate, to express aqualified opinion with exceptions on the consolidated financial statements. 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 tocontinue as a going concern.
・ Evaluate whether the presentation of the consolidated financial statements and notes to the consolidated financial statements
are in accordance with accounting standards generally accepted in Japan, as well as evaluate the presentation, structure, andcontent of the consolidated financial statements, including the related notes thereto, and whether the consolidated financial
statements fairly present the underlying transactions and accounting events.
・ Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its consolidated
subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction, supervisionand performance of the audit of the consolidated financial statements. We remain solely responsible for our audit opinion.
We report to the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit process, andother matters required by auditing standards.
We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements
in Japan regarding independence, and to communicate with them all relationships and other matters that may reasonably bedeemed to bear on our independence, and where applicable, related safeguards in order to eliminate or reduce obstruction
factors.
Conflicts of Interest
We or engagement partners have no interests in the Company and its consolidated subsidiaries, which should be stated incompliance with the Certified Public Accountants Act.

– 27 –

Audit Report of Accounting Auditor on Non-consolidated Financial Statements(Translation)

Independent Auditor’s Report
May 15, 2023
To the Board of Directors
Nomura Real Estate Holdings, Inc.
Ernst & Young ShinNihon LLC
Toshihiro Morishige (Seal)
Certified Public Accountant
Designated and Engagement Partner
Kenji Sato (Seal)
Certified Public Accountant
Designated and Engagement Partner
Natsuki Saiki (Seal)
Certified Public Accountant
Designated and Engagement Partner
OpinionPursuant to Article 436, Paragraph 2, Item 1 of the Companies Act, we have audited the non-consolidated financial statements,
which comprise the non-consolidated balance sheet, the non-consolidated statement of income, the non-consolidated statementof changes in shareholders’ equity, the notes to the non-consolidated financial statements and the related supplementaryschedules of Nomura Real Estate Holdings, Inc. (the “Company”) (hereinafter referred to as the “non-consolidated statements,etc.”) applicable to the 19th business year from April 1, 2022 through March 31, 2023.
In our opinion, the non-consolidated financial statements, etc. referred to above present fairly, in all material respects, thefinancial position and results of operations of Nomura Real Estate Holdings, Inc. applicable to the 19th business year ended
March 31, 2023 in conformity with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Non-consolidated Financial Statements, etc.
section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our
audit of the financial statements in Japan, and we have fulfilled our ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Other Information
The other information refers to the business report and its supplementary schedules. Management is responsible for preparing
and disclosing the other information. In addition, the Audit & Supervisory Committee is responsible for overseeing the
Directors’ performance of duties within the maintenance and operation of the reporting process for the other information.
The scope of our audit opinion on the non-consolidated financial statements, etc. does not include the content of the otherinformation, and we do not express an opinion regarding the other information.
Our responsibility in auditing the non-consolidated financial statements, etc. is to read through the other information, and in theprocess of reading it, we examine whether there are material differences between the other information and the non-consolidated
financial statements, etc. or the knowledge we have gained in the auditing process, and we also pay attention as to whether there
are any indications in the other information of material errors besides such material differences.
If we determine there to be material errors in the other information based on the work we have performed, we are required toreport those facts.
There are no matters to report regarding the other information.
Management’s and Audit & Supervisory Committee’s Responsibility for the Non-consolidated Financial Statements, etc.
Management is responsible for the preparation and fair presentation of the non-consolidated financial statements, etc. inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as
management determines is necessary to enable the preparation and fair presentation of the non-consolidated financial statements,
etc. that are free from material misstatement, whether due to fraud or error.
In preparing the non-consolidated financial statements, etc., management is responsible for assessing whether it is appropriate toprepare the non-consolidated financial statements, etc. with the assumption of a going concern, and in accordance withaccounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going concern. Audit &Supervisory Committee is responsible for overseeing the Directors’ performance of duties within the maintenance and operationof the financial reporting process.

– 28 –

Auditor’s Responsibility for the Audit of the Non-consolidated Financial Statements, etc.
Our responsibilities are to obtain reasonable assurance about whether the non-consolidated financial statements, etc. as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that expresses our opinion on
the non-consolidated financial statements, etc. based on our audit from an independent point of view. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the decisions of users of these non-consolidated financial statements, etc.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional
skepticism throughout the audit process to perform the following:・ Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. Obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
・ When auditing the non-consolidated financial statements, etc., obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances in making risk assessments, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control.
・ Evaluate the appropriateness of accounting policies used by management and their method of application, as well as thereasonableness of accounting estimates made by management and related notes thereto.
・ Conclude on the appropriateness of preparing the non-consolidated financial statements, etc. with the assumption of a going
concern by management, and based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor’s report to the notes to the non-consolidated
financial statements, etc. or, if the notes to the non-consolidated financial statements, etc. on material uncertainty are
inadequate, to express a qualified opinion with exceptions on the non-consolidated financial statements, etc. 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 Company to cease to continue as a going concern.
・ Evaluate whether the presentation of the non-consolidated financial statements, etc. and notes to the non-consolidated
financial statements are in accordance with accounting standards generally accepted in Japan, as well as evaluate thepresentation, structure, and content of the non-consolidated financial statements, etc., including the related notes thereto, andwhether the non-consolidated financial statements, etc. fairly present the underlying transactions and accounting events.
We report to the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit process, andother matters required by auditing standards.
We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements
in Japan regarding independence, and to communicate with them all relationships and other matters that may reasonably bedeemed to bear on our independence, and where applicable, related safeguards in order to eliminate or reduce obstruction
factors.
Conflicts of Interest
We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.

– 29 –

Audit Report of the Audit & Supervisory Committee(Translation)

Audit Report
The Audit & Supervisory Committee has conducted audit on the execution of duties by Directors for the 19th business year from
April 1, 2022 to March 31, 2023, and hereby reports the methods, details and results of audit as follows:
1. The Methods and Details of the Audit
With regard to the resolution of the Board of Directors concerning the matters stipulated in Article 399-13, Paragraph 1, Item
1, (b) and (c) of the Companies Act, as well as the system (the internal control system) developed based on such resolution,
the Audit & Supervisory Committee received reports regularly and requested explanation as necessary from the Directors,
Executive Officers, employees, etc. on the establishment and operation of such system, expressed its opinion, and conducted
audit by the following methods.
1) In accordance with the Audit & Supervisory Committee audit criteria established by the Audit & Supervisory Committee,
as well as the auditing policies and allocation of duties, we cooperated with the internal control department of the Company;
attended significant meetings; obtained reports on matters related to the execution of duties from Directors, Executive
Officers, employees, etc.; requested explanation as necessary; reviewed documents which record approval of material
matters; and conducted investigations regarding the status of the business operations and assets. With respect tosubsidiaries, the Audit & Supervisory Committee communicated and exchanged information with Directors, Executive
Officers, Audit & Supervisory Board Members, etc. of the subsidiaries, and received business reports from subsidiaries asnecessary.
2) The Audit & Supervisory Committee monitored and verified if the Accounting Auditor kept its independent position andperformed appropriate audit, received reports on the execution of duties from the Accounting Auditor, and requested
explanation as necessary. Also, a notice informing that the “system to ensure appropriate execution of duties” (set forth initems of Article 131 of the Ordinance on Accounting of Companies) has been established in accordance with the standards
for auditing quality control and others was received from the Accounting Auditor, and we requested explanation asnecessary.
Based on the methods as described above, the Audit & Supervisory Committee examined the business report andsupplementary schedules, the non-consolidated financial statements (the non-consolidated balance sheet, non-consolidated
statement of income, non-consolidated statement of changes in shareholders’ equity and the notes to the non-consolidated
financial statements) and supplementary schedules, and the consolidated financial statements (the consolidated balance sheet,consolidated statement of income, consolidated statement of changes in shareholders’ equity and the notes to the consolidated
financial statements) for the business year under review.
2. Results of Audit(1) Audit results of business report and other documents concerned
1) We confirm that the business report and supplementary schedules comply with the laws and regulations and with the
Articles of Incorporation and correctly represent the Company status.
2) We have not detected any misconduct or material fact of violation of the relevant laws and regulations or the Articles ofIncorporation in connection with the execution of duties by Directors.
3) We confirm that the content of the resolution of the Board of Directors concerning the internal control system is fair andreasonable. Furthermore, we have not found anything that should be pointed out with respect to the content of the business
report and the execution of duties by Directors concerning the internal control system.
(2) Audit results of the non-consolidated financial statements and supplementary schedules
We confirm that the auditing methods and results of the Accounting Auditor Ernst & Young ShinNihon LLC are
appropriate.
(3) Audit results of the consolidated financial statements
We confirm that the auditing methods and results of the Accounting Auditor Ernst & Young ShinNihon LLC are
appropriate.
May 16, 2023
Nomura Real Estate Holdings, Inc. Audit & Supervisory Committee
Audit & Supervisory Committee Member (Full-time) Hiroyuki Kimura (Seal)
Audit & Supervisory Committee Member (Full-time) Yasushi Takayama (Seal)
Audit & Supervisory Committee Member
Yoshio Mogi
(Seal)
Audit & Supervisory Committee Member
Akiko Miyakawa (Seal)
Audit & Supervisory Committee Member
Tetsu Takahashi (Seal)(Note) Audit & Supervisory Committee Members Yoshio Mogi, Akiko Miyakawa and Tetsu Takahashi are External Directors
as stipulated in Article 2, Item 15 and Article 331, Paragraph 6 of the Companies Act.

– 30 –