Nomura Real Estate : Integrated Report 2021(1/3)

Integrated Report 2021

Nomura Real Estate Holdings, Inc.

Shinjuku Nomura Building, 1-26-2Nishi-Shinjuku,Shinjuku-ku,

Tokyo 163-0566, Japan

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

Printed in Japan

Our Group Vision/Action guideline

Our Group Vision "New Value, Real Value"

New Value, Real Value

Integrating all that is precious to people and communities,

we build cities-dynamic stages that connect today with tomorrow's possibilities,

and embrace every moment of life's pursuits.

We create new value, social value, and, above all, real value.

Action guideline "What We Value"

Client-first approach

We maintain our "client-first" approach as well as our attitude to ensure trust and fulfill expectations,

which we have valued since the foundation of the company.

Creating new value based on original ideas

We pursue creating new value with free and out-of-the-box thinking, placing importance on anticipating future and global perspectives.

Always being a challenger

We always bear in mind that we are a challenger and take on new challenges with humility and ambition.

Acknowledging our growth with society

Ever mindful of our responsibility and pride in creating

the future for people and cities, we contribute to society and

continue to be a company on which it relies.

Working with vigor and achieving wellness

Recognizing that working with vigor brings growth to both the company and ourselves, we take the utmost care of our mental and physical health.

Shibaura 1-chome Project

Integrated Report 2021

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Contents

Part 1	6	CEO message
About the Nomura	12	History of challenge
16	At a glance
Real Estate Group
18	Value creation process
Part 2	22	Strengths/Business assets
Strengths and	24	Unique business strategy
29	Business portfolio strategy
characteristics
30	Special feature: On-site power that creates value
Part 3	40	Message from the Executive Vice President
Value creation	44	Overview of the Mid- to Long-term Business Plan
	"New Value, Real Value"
	46	Progress in the Mid- to Long-term Business Plan
	49	Awareness of the business environment
		(opportunities and threats)
	50	Strategies by Business
		50 Residential Development Business Unit
		52 Commercial Real Estate Business Unit
		54 Investment Management Business Unit
		56 Property Brokerage & CRE Business Unit
		58 Property & Facility Management Business Unit
		60	Overseas Business
	62	Interview with the CFO
Part 4	68	Sustainability
Sustainability	70	Environment
72	Human resources strategy/Human rights policy
approach
76	Governance
		76 Message from the Chairman of the Board of Directors
		78 Message from the External Director and Chairman of
			the Advisory Committee Relating to Nominations and
			Compensation
		80 Messages from External Directors
		82 Directors and Executive officers
		85	Corporate governance
		94	Risk management
		99 Internal controls, compliance/Information disclosure
Part 5	101	Major asset brands
Fact data	102	Major development projects/
	Major development projects in progress
	104	11-year financial data
	106	Business Unit information
	108	ESG data
	110	Group company information
	112	Corporate information
	113	External evaluation
Editorial policy/	114	Editorial policy
Guarantee by	115	Publication of Integrated Report 2021
the Director in charge		(Guaranteed by the Director in charge)

Eiji Kutsukake

President and

Representative Director,

Group CEO

Daisaku Matsuo

Executive Vice President and Representative Director

Hiroshi Kurokawa

Director,

Group CFO

Shoichi Nagamatsu

Director and Chairman of the Board of Directors

Index

		Items applicable to the Guidance for
	I would like to know about...	Integrated Corporate Disclosure and Company-	Contents		Page
		Investor Dialogues for Collaborative Value Creation
• • •	the Group's values and direction	Values	CEO message	6-11
	toward growth	Value creation process	18-19
	the Group's strengths and	Business model	At a glance	16-17
• • •	Strengths/Business assets	22-23
	competitive edge	(position in the competitive landscape)	Unique business strategy	24-28
			External evaluation	113
		Business model	Business portfolio strategy	29
• • •	the Group's profit structure	(essential elements for ensuring	Message from the Executive Vice President	40-43
		a competitive advantage)	Interview with the CFO	62-65
		Sustainability and growth	CEO message	6-11
		(recognition of ESG factors)	Sustainability	68-69
		Sustainability and growth	Environment strategy	70-71
• • •	the likelihood of the Group	(relationships with key stakeholders)	Human resources strategy/ Human rights policy	72-75
	achieving sustainable growth
			CEO message	6-11
		Sustainability and growth	Message from the Executive Vice President	40-43
		Interview with the CFO	62-65
		(risks within changing environment)
		Risk management	94-98
			Awareness of the business environment (opportunities and threats)	49
• • • the Group's specific		Message from the Executive Vice President	40-43
Strategy	Overview of the Mid- to Long-term Business Plan "New Value, Real Value"	44-45
	strategies	Progress in the Mid- to Long-term Business Plan	46-48
			Strategies by Business	50-61
	the Group's indicators for		Overview of the Mid- to Long-term Business Plan "New Value, Real Value"	44-45
• • •	Performance and key performance	Progress in the Mid- to Long-term Business Plan	46-48
	measuring the progress of	Strategies by Business Unit	50-61
	indicators (KPIs)
	its strategies	11-year financial data/Business Unit information	104-107
			ESG data	108-109
• • •	the Group's position on	Strategy	Business portfolio strategy	29
	managing its business portfolio	Performance and key performance	Overview of the Mid- to Long-term Business Plan "New Value, Real Value"	44-45
	Progress in the Mid- to Long-term Business Plan	46-48
	and capital cost	indicators (KPIs)
	Interview with the CFO	62-65
			Message from the Chairman of the Board of Directors	76-77
• • •	the Group's governance system	Governance	Message from the External Director and Chairman of the Advisory	78-79
Committee Relating to Nominations and Compensation
	that supports strategy	80-81
		Messages from External Directors
			Corporate governance	85-93

Information disclosure on the website

Additional information can be found on our website.

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

Financial information				Non-financial information
	Integrated report and financial report
	https://www.nomura-re-hd.co.jp/english/ir/ir_library/annualreport.html
• Investor relations					• Company information • Sustainability
https://www.nomura-re-hd.co.jp/english/ir/				• Business overview
			https://www.nomura-re-hd.co.jp/english/csr/
• Management policy	• Stock information
			• Sustainability report PDF download
• Financial information	etc.				https://www.nomura-re-hd.co.jp/english/csr/download/
• IR library

etc.

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1Part

About the

Nomura Real Estate Group

06 CEO message

1. History of challenge

1. At a glance

1. Value creation process

Nihonbashi, Tokyo, at the time of Nomura Real Estate's foundation

About the Nomura	Strengths and	Value creation	Sustainability	Fact data
Real Estate Group	characteristics	approach

Nomura Real Estate Group will create safe and comfortable urban development and enrich the lives and times of people living, working, and gathering

in these communities to create

an even better value well into the future through real estate development and real estate-related services.

Nomura Real Estate Group was established in 1957	spirit of continuing to be a challenger. These spirits
accompanying construction of Nomura Securities'	lead to real estate development such as high-qual-
new head office building. We joined large-scale new	ity housing and office development, and real
town development projects to solve housing short-	estate-related services such as property and facility
ages, a serious social issue after World War II, and	management. Through these, we continue to create
started our history as a real estate developer.	new business and value.
What the Group has valued since its establish-	Our approach to connect closely with each
ment is the customer-first spirit. Specifically, it is the	customer is firmly inherited as our DNA under our
creation of new value through original ideas and the	Group Vision "New Value, Real Value".

Our Group Vision "New Value, Real Value"

New Value, Real Value

Integrating all that is precious to people and communities,

we build cities-dynamic stages that connect today with tomorrow's possibilities,

and embrace every moment of life's pursuits.

We create new value, social value, and, above all, real value.

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About the Nomura	Strengths and	Value creation	Sustainability	Fact data
Real Estate Group	characteristics	approach

About the Nomura Real Estate Group

CEO message

We will achieve growth through unique value creation, inheriting the DNA to cultivate new markets with clear vision.

President and Representative Director,

Group CEO

Eiji Kutsukake

What is the Nomura Real Estate Group?

Our significance and uniqueness viewed from

Our Group Vision and the voice of the front line

Nomura Real Estate Group's

"Significance and Vision"

We have formulated and instilled Our Group Vision "New Value, Real Value" to customers and society. This vision represents our strong desire to connect people's lives and their work through real estate development, as well as real estate-related services and to connect an affluent society and people with the future.

Through that we will contribute to providing high-quality services and development that offers safe, secure, healthy, and comfortable life for a long time. At the same time, we will contribute to creating a sustainable society. These are the Nomura Real Estate Group's significance and what we will build together with our stakeholders.

The Group is currently promoting wide-ranging discussions about what kind of company the Group should aspire to be as we look ahead to 2030 and 2050. These discussions are centered around numerous young and mid-career employees who will lead the Group in the future, including its management. Using a planning method called backcasting, we are formulating a new Mid- to Long-term Business Plan that considers what actions must be taken now with a clear vision of our aspired shape in the future. Subjects that constantly arise during these discussions include the happiness of people and the importance of the community, the Group's approach to connect closely with individuals, and enhancing services

for the future that utilize DX together with people and communities. Although stages vary by country, the same trend is increasing in overseas cities as well.

We aspire to be a group that achieves continuous growth by contributing to people-focused sustainable urban development and the advance of society.

Uniqueness of the Group

The Group originated from the establishment of Nomura Real Estate Development, which was spun off from Nomura Securities in 1957. Upon considering the most-ideal ways to contribute to society through real estate business, we devoted every effort toward new town development and embarked on the residential development business to solve Japan's housing shortage, which was an urgent social issue at the time. In 1963, we took on the challenge of undertaking condominium business. We subsequently enhanced office development and related services such as property and facility management, and real estate broker- age. As people's lifestyles evolved we continuously identified the needs of our customers and society, and we achieved continuous growth with the spirit of a challenger.

The Group's uniqueness and strengths are shown in our client-first approach and market-in approach. The client- first approach means we place our first priority on the people who live and spend time in our properties. The market-in approach means we pinpoint customer needs

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