Nomura Real Estate : Second Quarter Results (Six months ended September 30, 2025)

(Values of less than one million yen rounded down)

1. Consolidated operating results for the Six Months from April 1, 2025 to September 30, 2025

   1. Consolidated business results

      (% indicate the rate of changes from previous fiscal term)

      	Operating revenue		Operating profit		Business profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Sep. 30, 2025	397,749	4.3	57,194	(16.3)	60,736	(12.0)	50,838	(14.8)	31,358	(26.2)
      Sep. 30, 2024	381,343	3.5	68,363	11.4	68,999	12.3	59,652	9.2	42,514	29.0

      (Note) Comprehensive income: From April 1, 2025 to September 30, 2025 : 16,196 million yen (down 72.2%)

      From April 1, 2024 to September 30, 2024 : 58,208 million yen (up 53.7%)

      (Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit (*2)

      *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

      *2 “Gain or loss on sale of equity interest in project companies in the Overseas Business Unit” has been added to the definition of business profit. The change to this definition has been applied from the fiscal year ended March 31, 2025.

      (Note) The rate of changes from previous fiscal year in business profit for the previous fiscal year has also been calculated based on this definition.

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      Sep. 30, 2025	36.48	36.47
      Sep. 30, 2024	49.19	49.14

      (Note) Nomura Real Estate Holdings, Inc. (the “Company”) conducted a stock split at a ratio of five shares for every one share of common stock on April 1, 2025. “Basic earnings per share” and “Diluted earnings per share” have been calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

   2. Consolidated financial position

      	Total assets	Net assets	Shareholders’ equity ratio
      As of	Millions of yen	Millions of yen	%
      Sep. 30, 2025	2,775,077	749,351	27.0
      Mar. 31, 2025	2,686,569	751,439	27.9

      (Reference) Shareholders’ equity: As of September 30, 2025 : 748,080 million yen As of March 31, 2025 : 750,048 million yen

2. Dividends

   	Dividend per share
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   Fiscal year ended Mar. 31, 2025	Yen	Yen	Yen	Yen	Yen
   	-	82.50	-	87.50	170.00
   Fiscal year ending Mar. 31, 2026	-	18.00
   Fiscal year ending Mar. 31, 2026 (Forecasts)			-	18.00	36.00

   (Notes) 1. Revision of dividend forecasts during this period: No

   2. The Company conducted a stock split at a ratio of five shares for every one share of common stock on April 1, 2025. The amounts shown for the fiscal year ended March 31, 2025 are the actual amount of dividends paid before the stock split. The amounts shown for the fiscal year ending March 31, 2026 (forecast) are the figures after the stock split. The annual dividend per share for the fiscal year ending March 31, 2026 (forecast) without considering the stock split would be 180 yen.

3. Forecasts of consolidated operating results for the fiscal year from April 1, 2025 to March 31, 2026

(% indicates the rate of changes from previous fiscal year)

(Note) Revision of operating results forecasts during this period: No

• Notes

  1. Significant changes in the scope of consolidation during the period: None

  2. Adoption of specific accounting policies for semi-annual 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.	: None
     2) Changes in accounting policies other than the above	: None
     3) Changes in accounting estimates	: None
     4) Restatements	: None

  4. Number of shares issued (common stock)

     	As of Sep. 30		As of Mar. 31
     	2025		2025
     1) Number of shares issued at end of period (including treasury shares)	917,895,685		917,388,185
     2) Treasury shares at end of period	60,436,478		58,618,355

     	From April 1 to Sep. 30, 2025		From April 1 to Sep. 30, 2024
     3) Average number of shares outstanding during the period	859,723,134		864,259,015

     (Notes) 1. The Company conducted a stock split at a ratio of five shares for every one share of common stock on April 1, 2025. The number of shares issued (common stock) has been calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

     2. The number of treasury shares at end of each period includes the Company’s share owned by BIP trust and ESOP trust (15,772,978 shares as of September 30, 2025 and 13,955,135 shares as of March 31, 2025). The Company’s shares owned by 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 (13,293,733 shares from April 1 to September 30, 2025 and 14,506,135 shares from April 1 to September 30, 2024).

• The English translations and Japanese originals of the semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

• 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 to realize such statements. Actual performance and other results may differ materially from these forecasts due to various factors. For matters related to the forecasts of financial results, please refer to “1. Business Results and Financial Position

(3) Consolidated Operating Result Forecasts” on page 4 of the Attachments.

Attachments- Contents

1. Business Results and Financial Position

   1. Business Results

      The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the six months ended September 30, 2025: Operating revenue of 397,749 million yen, which represents an increase of 16,406 million yen, or 4.3% year on year; operating profit of 57,194 million yen, a decrease of 11,169 million yen, or 16.3%; business profit of 60,736 million yen, a decrease of 8,263 million yen, or 12.0%; ordinary profit of 50,838 million yen, a decrease of 8,814 million yen, or 14.8%; and profit attributable to owners of parent of 31,358 million yen, a decrease of 11,155 million yen, or 26.2%.

      (Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit

      *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

      An overview of business unit achievements is given below:

      1. Operating revenue for each business unit includes internal sales and transfer amount among business units.

      2. Total figures may not match due to the rounding of fractions.

         1. Residential Development Business Unit

            Operating revenue in this Business Unit totaled 179,438 million yen, which represents a decrease of 6,731 million yen, or 3.6% year on year, and business profit totaled 20,971 million yen, a decrease of 4,977 million yen, or 19.2%, resulting in decreases in both operating revenue and business profit compared with the financial results of the six months ended September 30, 2024.

         2. Commercial Real Estate Business Unit

            Operating revenue in this Business Unit totaled 130,546 million yen, which represents an increase of 21,043 million yen, or 19.2% year on year, and business profit totaled 23,933 million yen, a decrease of 2,575 million yen, or 9.7%, resulting in an increase in operating revenue and a decrease in business profit compared with the financial results of the six months ended September 30, 2024.

         3. Overseas Business Unit

            Operating revenue in this Business Unit totaled 2,091 million yen, which represents a decrease of 6,393 million yen, or 75.4% year on year, and business profit totaled 925 million yen, a decrease of 3,138 million yen, or 77.2% year on year, resulting in decreases in both operating revenue and business profit compared with the financial results of the six months ended September 30, 2024.

            Share of profit of entities accounted for using equity method included in the business profit in this Business Unit was 2,841 million yen.

         4. Investment Management Business Unit

            Operating revenue in this Business Unit totaled 7,672 million yen, which represents an increase of 9 million yen, or 0.1% year on year, and business profit totaled 4,966 million yen, an increase of 73 million yen, or 1.5%, resulting in increases in both operating revenue and business profit compared with the financial results of the six months ended September 30, 2024.

         5. Property Brokerage & CRE Business Unit

            Operating revenue in this Business Unit totaled 30,123 million yen, which represents an increase of 3,728 million yen, or 14.1% year on year, and business profit totaled 9,414 million yen, an increase of 1,585 million yen, or 20.3%, resulting in increases in both operating revenue and business profit compared with the financial results of the six months ended September 30, 2024.

         6. Property & Facility Management Business Unit

            Operating revenue in this Business Unit totaled 59,888 million yen, which represents an increase of 8,480 million yen, or 16.5% year on year, and business profit totaled 5,696 million yen, an increase of 1,195 million yen, or 26.6%, resulting in increases in both operating revenue and business profit compared with the financial results of the six months ended September 30, 2024.

         7. Other

         Operating revenue totaled 138 million yen, which represents an increase of 1 million yen, or 1.1% year on year, and business profit totaled 68 million yen, which represents an increase of 2 million yen, or 3.2% year on year.

   2. Financial Position

      	As of March 31, 2025 (Millions of yen)	As of September 30, 2025 (Millions of yen)	Changes (Millions of yen)	Changes
      Total assets	2,686,569	2,775,077	88,508	3.3%
      Total liabilities	1,935,129	2,025,725	90,596	4.7%
      Net assets	751,439	749,351	(2,088)	(0.3%)
      Shareholders’ equity ratio	27.9%	27.0%	-	-

      1. Total Assets

         Total assets were 2,775,077 million yen, which represents an increase of 88,508 million yen compared to the end of the previous fiscal year. This increase was mainly because investment securities increased by 60,243 million yen and real estate for sale in process by 40,636 million yen, while land held for development decreased by 12,342 million yen.

      2. Total liabilities

         Total liabilities were 2,025,725 million yen, which represents an increase of 90,596 million yen compared to the end of the previous fiscal year. This increase was mainly because commercial papers increased by 90,000 million yen and long-term borrowings by 72,143 million yen, while notes and accounts payable - trade decreased by 28,908 million yen.

      3. Net assets

         Net assets were 749,351 million yen, which represents a decrease of 2,088 million yen compared to the end of the previous fiscal year. This decrease was mainly because foreign currency translation adjustment decreased by 16,383 million yen, deferred gains or losses on hedges by 3,195 million yen, and treasury shares by 3,118 million yen, while retained earnings increased by 16,086 million yen and valuation difference on available-for-sale securities by 4,489 million yen.

         The shareholders’ equity ratio was 27.0%, a decrease of 1.0 percentage point from the end of the previous fiscal year.

      4. Cash Flows

      Cash and cash equivalents as of the end of the six months ended September 30, 2025 totaled 39,647 million yen, which represents an increase of 3,752 million yen compared to the previous fiscal year. The status of each cash flow and the factors behind it were as follows:

      Net cash used in operating activities amounted to 32,412 million yen. This was mainly due to cash outflow from an increase in inventories (cash outflow of 29,891 million yen) and a decrease in trade payables (cash outflow of 28,900 million yen), despite cash inflow from profit before income taxes (cash inflow of 44,005 million yen).

      Net cash used in investing activities amounted to 86,650 million yen. This was mainly due to cash outflow from purchase of investment securities (cash outflow of 47,727 million yen) and purchase of property, plant and equipment and intangible assets (cash outflow of 42,343 million yen), despite cash inflow from proceeds from lease and guarantee deposits received (cash inflow of 7,446 million yen).

      Net cash provided by financing activities amounted to 124,045 million yen. This was mainly due to cash inflow from proceeds from long-term borrowings (cash inflow of 99,528 million yen) and issuance of commercial papers (cash inflow of 90,000 million yen), despite cash outflow from repayments of long-term borrowings (cash outflow of 97,650 million yen).

   3. Consolidated Operating Result Forecasts

      No change in the consolidated operating result forecast which was announced on April 24, 2025.

2. Semi-annual Consolidated Financial Statements and Notes

1. Semi-annual Consolidated Balance Sheets

   		(Millions of yen)
   	As of March 31, 2025	As of September 30, 2025
   Assets
   Current assets
   Cash and deposits	37,265	40,791
   Notes and accounts receivable - trade, and contract assets	32,432	36,318
   Real estate for sale	527,417	530,860
   Real estate for sale in process	370,730	411,367
   Land held for development	264,096	251,754
   Equity investments	103,060	97,341
   Other	149,582	128,344
   Allowance for doubtful accounts	(22)	(24)
   Total current assets	1,484,563	1,496,753
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	320,755	321,044
   Land	513,933	520,780
   Other, net	55,561	61,649
   Total property, plant and equipment	890,250	903,474
   Intangible assets	36,278	38,240
   Investments and other assets
   Investment securities	189,916	250,160
   Leasehold and guarantee deposits	36,880	38,205
   Deferred tax assets	21,666	21,231
   Other	27,624	27,622
   Allowance for doubtful accounts	(611)	(612)
   Total investments and other assets	275,476	336,608
   Total non-current assets	1,202,005	1,278,323
   Total assets	2,686,569	2,775,077

   		(Millions of yen)
   As of March 31, 2025		As of September 30, 2025
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	94,382	65,473
   Short-term borrowings	211,799	185,290
   Commercial papers	110,000	200,000
   Current portion of bonds payable	30,000	10,000
   Income taxes payable	19,733	12,847
   Deposits received	21,330	16,092
   Provision for bonuses	15,829	13,743
   Provision for bonuses for directors (and other officers)	656	344
   Other	96,890	79,781
   Total current liabilities	600,622	583,574
   Non-current liabilities
   Bonds payable	140,000	167,000
   Long-term borrowings	1,053,505	1,125,649
   Leasehold and guarantee deposits received	63,338	67,308
   Deferred tax liabilities	43,497	42,654
   Deferred tax liabilities for land revaluation	4,021	4,021
   Provision for share awards	6,624	5,578
   Retirement benefit liability	5,848	5,973
   Other	17,671	23,965
   Total non-current liabilities	1,334,506	1,442,151
   Total liabilities	1,935,129	2,025,725
   Net assets
   Shareholders' equity
   Share capital	119,706	119,829
   Capital surplus	115,712	115,836
   Retained earnings	519,307	535,393
   Treasury shares	(36,220)	(39,338)
   Total shareholders' equity	718,506	731,721
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	4,038	8,527
   Deferred gains or losses on hedges	2,822	(372)
   Revaluation reserve for land	7,761	7,761
   Foreign currency translation adjustment	10,658	(5,724)
   Remeasurements of defined benefit plans	6,260	6,165
   Total accumulated other comprehensive income	31,542	16,358
   Share acquisition rights	130	19
   Non-controlling interests	1,260	1,252
   Total net assets	751,439	749,351
   Total liabilities and net assets	2,686,569	2,775,077

2. Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income (Semi-annual Consolidated Statements of Income for the Six Months from April 1 to September 30, 2025)

   		(Millions of yen)
   Six months ended September 30, 2024		Six months ended September 30, 2025
   Operating revenue	381,343	397,749
   Operating costs	243,792	264,658
   Operating gross profit	137,550	133,091
   Selling, general and administrative expenses	69,186	75,897
   Operating profit	68,363	57,194
   Non-operating income
   Interest income	74	100
   Dividend income	65	72
   Share of profit of entities accounted for using equity method	201	2,840
   Other	271	277
   Total non-operating income	613	3,290
   Non-operating expenses
   Interest expenses	7,867	8,472
   Other	1,456	1,173
   Total non-operating expenses	9,324	9,646
   Ordinary profit	59,652	50,838
   Extraordinary losses
   Impairment losses	88	6,096
   Loss on building reconstruction	846	736
   Total extraordinary losses	934	6,833
   Profit before income taxes	58,718	44,005
   Income taxes - current	18,716	12,065
   Income taxes - deferred	(2,536)	559
   Total income taxes	16,179	12,625
   Profit	42,538	31,380
   Profit attributable to non-controlling interests	24	21
   Profit attributable to owners of parent	42,514	31,358

   (Semi-annual Consolidated Statements of Comprehensive Income for the Six Months from April 1 to September 30, 2025)

   		(Millions of yen)
   Six months ended September 30, 2024	Six months ended September 30, 2025
   Profit	42,538	31,380
   Other comprehensive income
   Valuation difference on available-for-sale securities	(1,628)	4,489
   Deferred gains or losses on hedges	8,756	(3,195)
   Revaluation reserve for land	(0)	(0)
   Foreign currency translation adjustment	7,217	(12,282)
   Remeasurements of defined benefit plans, net of tax	75	(94)
   Share of other comprehensive income of entities accounted for using equity method	1,248	(4,100)
   Total other comprehensive income	15,670	(15,183)
   Comprehensive income	58,208	16,196
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	58,186	16,175
   Comprehensive income attributable to non-controlling interests	22	21

3. Semi-annual Consolidated Statements of Cash Flows

   		(Millions of yen)
   Six months ended September 30, 2024		Six months ended September 30, 2025
   Cash flows from operating activities
   Profit before income taxes	58,718	44,005
   Depreciation	10,008	14,560
   Impairment losses	88	6,096
   Share of loss (profit) of entities accounted for using equity method	(201)	(2,840)
   Increase (decrease) in allowance for doubtful accounts	4	2
   Increase (decrease) in retirement benefit liability	23	127
   Interest and dividend income	(140)	(173)
   Interest expenses	7,867	8,472
   Decrease (increase) in trade receivables	8,688	(3,921)
   Decrease (increase) in inventories	2,457	(29,891)
   Decrease (increase) in equity investments	(21,508)	(1,224)
   Increase (decrease) in trade payables	(36,733)	(28,900)
   Increase (decrease) in deposits received	(15,128)	(5,235)
   Other, net	(26,365)	(9,041)
   Subtotal	(12,219)	(7,965)
   Interest and dividends received	2,115	3,183
   Interest paid	(8,100)	(8,911)
   Income taxes refund (paid)	(10,792)	(18,718)
   Net cash provided by (used in) operating activities	(28,996)	(32,412)
   Cash flows from investing activities
   Purchase of investment securities	(7,840)	(47,727)
   Proceeds from sales and liquidation of investment securities	1	—
   Purchase of shares of subsidiaries resulting in change in scope of consolidation	(20,963)	—
   Purchase of property, plant and equipment and intangible assets	(47,203)	(42,343)
   Proceeds from sale of property, plant and equipment and intangible assets	78	3
   Payments of leasehold and guarantee deposits	(3,007)	(2,142)
   Proceeds from refund of leasehold and guarantee deposits	1,127	1,944
   Repayments of lease and guarantee deposits received	(2,179)	(4,479)
   Proceeds from lease and guarantee deposits received	2,799	7,446
   Other, net	(616)	648
   Net cash provided by (used in) investing activities	(77,804)	(86,650)
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	16,649	44,334
   Repayments of finance lease liabilities	(87)	(218)
   Net increase (decrease) in commercial papers	—	90,000
   Proceeds from long-term borrowings	75,163	99,528
   Repayments of long-term borrowings	(29,089)	(97,650)
   Proceeds from issuance of shares	164	148
   Proceeds from issuance of bonds	29,860	26,868
   Redemption of bonds	—	(20,000)
   Proceeds from sale of treasury shares	436	1,454
   Purchase of treasury shares	—	(5,178)
   Dividends paid	(13,174)	(15,272)
   Dividends paid to non-controlling interests	(30)	(35)
   Proceeds from investments in silent partnerships	—	67
   Purchase of shares of subsidiaries not resulting in change in scope of consolidation	(52)	—

   Net cash provided by (used in) financing activities	79,840	124,045
   Effect of exchange rate change on cash and cash equivalents	719	(1,230)
   Net increase (decrease) in cash and cash equivalents	(26,241)	3,752
   Cash and cash equivalents at beginning of period	53,811	35,894
   Cash and cash equivalents at end of period	27,570	39,647

4. Notes to Semi-annual Consolidated Financial Statements (Notes to Segment Information, etc.)

   1. Six months from April 1 to September 30, 2024

      1. Information regarding sales, gains or losses, by reportable segment

         (Millions of yen)

         	Reportable segments							Other (Note) 1	Total	Adjustments (Note) 2	Amount recorded in semi-annual consolidated statement of income (Note) 3
         	Residential Develop ment	Commercial Real Estate	Overseas	Investment Manage ment	Property Brokerage & CRE	Property & Facility Manage ment	Subtotal
         Operating revenue
         External customers	185,524	108,117	8,484	7,603	25,956	45,523	381,208	134	381,343	-	381,343
         Internal sales and transfer amount among segments	645	1,385	-	59	439	5,884	8,414	2	8,417	(8,417)	-
         Subtotal	186,170	109,502	8,484	7,662	26,395	51,407	389,623	136	389,760	(8,417)	381,343
         Operating profit (Note) 3	25,642	26,338	3,977	4,807	7,829	4,513	73,108	66	73,174	(4,811)	68,363
         Share of profit (loss) of entities accounted for using equity method (Note) 3	12	52	64	85	-	(12)	201	-	201	-	201
         Amortization of intangible assets associated with corporate acquisitions (Note) 3	295	117	21	-	-	-	434	-	434	-	434
         Gain or loss on sale of equity interest in project companies in the Overseas Business Unit (Note) 3	-	-	-	-	-	-	-	-	-	-	-
         Segment profit or loss (Business profit or loss) (Note) 3	25,949	26,508	4,063	4,893	7,829	4,500	73,744	66	73,811	(4,811)	68,999

         (Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.

         1. The deduction of 4,811 million yen shown in the adjustments column for segment profit or loss (business profit or loss) includes elimination of intersegment transactions of 1,739 million yen and a deduction of 6,550 million yen for corporate expenses not allocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable to reportable segments.

         2. 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 + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit

         *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

      2. Information regarding impairment loss on non-current assets or goodwill by reportable segment

         1. Significant impairment loss relating to non-current assets

            (Millions of yen)

            	Residential Development	Commercial Real Estate	Overseas	Investment Management	Property Brokerage & CRE	Property & Facility Management	Total
            Impairment losses	-	88	-	-	-	-	88

         2. Significant changes in amount of goodwill

            In the Residential Development Business Unit, goodwill increased by 17,179 million yen in the six months

            ended September 30, 2024 mainly because of the inclusion of UDS Ltd. and Okinawa UDS Ltd. in the scope of consolidation.

   2. Six months from April 1 to September 30, 2025

      1. Information regarding sales, gains or losses, by reportable segment

         (Millions of yen)

         	Reportable segments							Other (Note) 1	Total	Adjustments (Note) 2	Amount recorded in semi-annual consolidated statement of income (Note) 3
         	Residential Develop ment	Commercial Real Estate	Overseas	Investment Manage ment	Property Brokerage & CRE	Property & Facility Manage ment	Subtotal
         Operating revenue
         External customers	178,774	127,650	2,091	7,557	29,450	52,090	397,613	135	397,749	-	397,749
         Internal sales and transfer amount among segments	664	2,896	-	115	673	7,797	12,146	2	12,148	(12,148)	-
         Subtotal	179,438	130,546	2,091	7,672	30,123	59,888	409,760	138	409,898	(12,148)	397,749
         Operating profit (Note) 3	20,410	23,773	(1,937)	4,959	9,414	5,745	62,365	68	62,433	(5,239)	57,194
         Share of profit (loss) of entities accounted for using equity method (Note) 3	(2)	42	2,841	7	-	(48)	2,840	-	2,840	-	2,840
         Amortization of intangible assets associated with corporate acquisitions (Note) 3	563	117	20	-	-	-	702	-	702	-	702
         Gain or loss on sale of equity interest in project companies in the Overseas Business Unit (Note) 3	-	-	-	-	-	-	-	-	-	-	-
         Segment profit or loss (Business profit or loss) (Note) 3	20,971	23,933	925	4,966	9,414	5,696	65,908	68	65,976	(5,239)	60,736

         (Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.

         1. The deduction of 5,239 million yen shown in the adjustments column for segment profit or loss (business profit or loss) includes elimination of intersegment transactions of 1,776 million yen and a deduction of 7,015 million yen for corporate expenses not allocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable to reportable segments.

         2. 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 + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit

         *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

      2. Information regarding impairment loss on non-current assets or goodwill by reportable segment

         1. Significant impairment loss relating to non-current assets

(Millions of yen)

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

(Notes to Going Concern Assumptions) Not applicable.

(Significant Subsequent Events)

The Group started to demolish the following owned properties in October 2025.

Accordingly, the Company will record 13,993 million yen of demolition cost for said buildings, etc. under extraordinary losses (loss on building reconstruction) in the third quarter of the fiscal year ending March 31, 2026 (from October 1, 2025, to December 31, 2025).