Otemachi Financial City Grand Cube,
1-9-2 Otemachi, Chiyoda-ku,
Tokyo 100-0004, Japan
Tel. +81(3)5533-2111
https://www.nri.com/en

Dream up the future.
未来創発Integrated Report 2023
Year ended March 31, 2023

In an era of uncertainty, we envision a clear path toward
unprecedented prosperity.

We lead the way with boldness and precision,

realizing our customers’ aspirations for a better society.

Creativity drives us to take on challenges, taking on challenges

to growth, and growth to new possibilities. With every step forward,
we open a greater tomorrow.

Envision the value, Empower the change

CONTENTS
04
12

Message from the CEO
NRI’s Value Co-Creation

26

Growth Story for 2030

NRI Group Vision 2030 (V2030)

50

List of Materialities

		

52

Value Creation

28

14	A Path of Unchanging Value
Co-Creation

30

NRI at a Glance

20

Process of Value Co-Creation

22	Opportunities and Risks Due toChanges in the External
Environment
24	NRI’s “Con-Solution” Business
Model
25	NRI’s Corporate Philosophy and
NRI Group Vision 2030 System				34	V2030 Consideration Process
and Materiality Identification
Process36	Environmental Recognition
Toward FY2025

37	Medium-Term Management Plan
2023–2025 (MTP 2025)
44

124 Corporate Information / Data

Looking Back on V2022

NRI’s Corporate Philosophy

16

Materiality
78

Transition of Growth Strategy

1248

48	Message from the Head ofCorporate Headquarters26

		52	Co-Create a Thriving Future
Society		

53	Co-Create an Optimal Society		54	Co-Create a Safe and Secure
Society		Interview with the CFO
56

55	Initiatives to Instill Value
Co-Creation Activities
Value Creation Capital

		

56

		

70	Accumulate Intellectual
CapitalAdvance Human CapitalManagement Basis (ESG)
78

		

92

102 Evolve GovernanceContribute to Global Environment		102 Talking about Governance78	Initiatives for Creating
Opportunities and Reducing
the Risks of Climate Change(TCFD)

		106	Interview with an Outside
Audit & Supervisory Board
Member		108	NRI’s Corporate Governance90	Initiatives for Conserving /Restoring Natural Capital(TNFD)

		110	Board of Directors andAdvisory Committees		112	System of the Board of
Directors and the Audit &Supervisory Board		

115	Compensation for Membersof the Board and Audit &Supervisory Board Members		118	Review of EffectivenessEvaluation Process and
Evaluation Method		

120 NRI Executives

		122	Internal Controls, Corporate
Ethics, and ComplianceFulfill Our Social Responsibilities		94	Cooperation with
Stakeholders

		98	Information Disclosure andCommunication

		

100 Stakeholder Map

124 Financial Highlights
126	10-Year Summary of Consolidated
Financial Statements
128 Consolidated Financial Data
130 Non-Financial Highlights
132 Non-Financial Data
134 Corporate Data / Share Information
136 Participation in Initiatives
137	External Recognition
Regarding ESG

Integrated Report 2023

01

Editing Policy / Information Disclosure System

Editorial Policy for the Integrated Report 2023
Since FY March 2014, NRI has published integrated reports that provide explanations while communicating important financial andnon-financial information. These reports aim to give an overall picture of NRI in a concise and clear manner.
The Integrated Report 2023 introduces the medium- to long-term growth story and materiality found in the NRI Group Vision 2030
long-term management Vision and our Medium-Term Management Plan 2023–2025.

NRI Website
https://www.nri.com/en

For information on our disclosure system, see the figure below. As for details and other related information that cannot be included
due to space, we have included the source of the relevant information (e.g., websites and the Annual Securities Report) below and in
the list of links on page 3, as well as within the pages of this Integrated Report.
NRI works toward the medium- to long-term enhancement of its corporate value. We strive for even deeper communication with

About NRI

https://www.nri.com/en/company

stakeholders to enable the determination of its value.
Corporate Philosophy

https://www.nri.com/en/company/c_philosophy

Guidelines Referenced for the Disclosure of Information
International Integrated Reporting Council(IIRC)“The International <IR> Framework”

The Ministry of Economy, Trade andIndustry’s “Guidance for Integrated
Corporate Disclosure andCompany-Investor Dialogues for
Collaborative Value Creation”

EuropeGlobal Reporting Initiative (GRI)GRI Standard

North America
Main Offices (Japan)

Management Visionhttps://www.nri.com/en/company/vision

Asia

NRI Group Companies(Japan)Oceania

Corporate GovernanceAffiliated Companies andOrganizations

https://www.nri.com/en/company/co_governance

NRI Group Companies and Offices

https://www.nri.com/en/company/map

Information Disclosure System
Relevance to Our Strategy / Story

Investor Relations (IR)Integrated Report (Annual Report)
Corporate Brochurehttps://ir.nri.com/en/ir.html
Sustainability Book

Financial

About NRI Page

Annual Securities Report (in Japanese)

Sustainability Page

Corporate Governance Page

Non-Financial

Investor Relations Page

- Financial Results & Presentation- Small Meeting Materials
Presentation- Integrated Report (Annual Report)

Stock & Bond Information

Cautionary Note on Forward-Looking Statements• This Integrated Report is prepared for the purpose of providing information on our performance in FY March 31, 2023, andour strategy for the coming years, not for the purpose of attracting investment in stocks issued by Nomura Research Institute, Ltd.
(NRI). In addition, this report contains absolutely no guarantees or pledges.
• The opinions and outlook contained herein reflect the views of management at the time of preparation. We do not offer
any guarantees or pledges as to the accuracy or completeness of such information, which, moreover, is subject to alteration
without advance notice.
• NRI holds all rights to each and every part of the integrated report, which may not be reproduced, transmitted, or otherwise
duplicated by any means, whether electronic or mechanical, whatever the purpose, without our express permission.

Sustainability
Book 2023-N
 RI Business Outline & Business Briefing

ESG Data book
Information ComprehensivenessSustainability Book 2023

https://www.nri.com/en/-/media/
Corporate/en/Files/PDF/sustainability/library/Sustainability_
Book2023_e.pdf

Sustainabilit y Book 2023

IR Libraryhttps://ir.nri.com/en/ir/library.html

WebsiteSustainability

https://www.nri.com/en/sustainability

https://ir.nri.com/en/ir/stock.html

ESG Databook 2023

https://www.nri.com/en/-/media/
Corporate/en/Files/PDF/sustainability/
library/ESG_Databook_2023_e.pdf

NRI’s Strengths

https://ir.nri.com/en/ir/strength/strength01.html

Knowledge Insight
Solutions & Services
News
Careers

NRI DNANRI People
NRI JOURNALNRI Voice• The trademarks that appear in this report are the trademarks of NRI or the respective company.
• For the purpose of convenience, within this report “NRI” is used to refer to the Company and in certain places the entire NRI Group.
• Departments and positions indicated in articles and photos are current at the time of implementation.

02

Nomura Research InstituteIntegrated Report 2023

03

Message from the CEO

Message from the CEO

The NRI Group has insight into the prosperity
that lies beyond DX, and is promoting efforts
toward the year 2030 in order to become an
entity that dynamically transforms the world
through digital social capital.

NRI’s Value Co-Creation
V2030

Virtuous cycle of human capital and­competitive advantage
One day, I visited the president of a client company after the completion of a project. That person
said something very pleasing to me, which was“I could really feel the high quality of your humanresources.” The project in question involved migration from a legacy system to shared online services from NRI. Because it was a large-scale
system that supports lifestyles, any major trouble
would be unacceptable. The president of thatcompany also had concerns, but after we completed the project without incident, the president
was surprised at the extreme detail seen in our
calculations across the entire project and the factthat our staff members had eliminated risks that
could lead to future problems.
For NRI to build long-term relationships withour clients, it goes without saying that it isMateriality

Management Basis (ESG)
Corporate Information / Data

create both social and economic value throughour Medium-Term Management Plan (2019–2022)
in the latter four years of V2022, we have beenhighly praised by numerous external evaluation
agencies, as exemplified by our inclusion in the
Dow Jones Sustainability Indices (World Index),
our MSCI rating of AAA for ESG, and our CDP
A-list accreditation.
In V2022, we were able to achieve all of our
financial targets, in addition to our non-financial
efforts. I am proud to say that this was a result of
our strategies that foresaw changes in the business environment, our successful securing of outstanding human resources including business
partners, and the demonstration of our capability
via the steady efforts of each and every one of ouron-site employees.

Value Creation Capital

Nomura Research Institute

July 2023
President & CEO
Chairman, Member of the Board
Representative Director

Value Creation

04

MTP2025

In the seven years since I became president in
2016, NRI has seen two major turning points.
In the 2000s, I helped build a new businessmodel for a certain client. In order to adopt online
to offline (O2O) commerce ahead of the competition, our consultants discussed a business model
to aim for together with the client, while our engineers attempted to build IT solutions in parallelwith those discussions. At a time when it normally
took about four or five years from the conceptualization to the development and operation of asystem for making back-office work more efficient,
this was an extraordinary approach. After thisexperience, I had a hunch that we had arrived at
an era where the use of IT would transform business models, and that there will be a growing
market where NRI could leverage its ability to facilitate collaboration between consultants and systems engineers. This hunch gradually turned into
certainty and ultimately became part of our “Vision2022” Long-Term Management Vision (V2022).
This new direction gained steam from around2017, two years after V2022 was announced,
when we were able to demonstrate the true valueof our “Con-Solution” business model, where ourconsulting and IT solutions work together to assist
DX via repeated hypothesis testing in tandem withclients, from the stage of planning and conceptualization that we had a head start on. I call thisturning point in 2017 the first year of DX.
The second turning point that we faced was
the COVID-19 pandemic. Although we wereunable to escape the impact of the pandemic at

first, the rapid spread of non-face-to-face andnon-contact business models led to a rapid acceleration in DX, which was previously predicted totake as long as five to 10 years, and NRI jumped
on that bandwagon. In V2022, we set a target of
100 billion yen in operating profit for FY March
2023. This was an extremely ambitious target of
doubling profit from FY March 2015, but we wereable to achieve it one year early. Honestly speaking, we were lucky to achieve it thanks to the
exceptional circumstances.
On the other hand, we were able to achieve
global business expansion, another pillar of
V2022, thanks to our firm conviction, regardlessof the external environment. In the long term, thetotal population of Japan is expected to continue
decreasing and drop below 100 million around theyear 2050. As domestic demand inevitably
shrinks, business that is reliant on the Japanesemarket will obviously be exposed to risk. Because
many new technologies are created overseas, we
also cannot assist Japanese companies from a
global perspective unless we have business infrastructure overseas. The reason that we included
the strengthening of our global business in V2022
is because of the idea that we must retain a constant overseas presence in our business portfolio
in order to ensure that we can continue toincrease our corporate value. We set the lofty
target of expanding overseas revenue to 100 billion
yen despite it being less than 20 billion in FY March
2015, and were also able to exceed this goal in
the final year.
I would like to add that as a result of focusing
on sustainability management and aiming toGrowth Story for 2030

Looking back on the past

Integrated Report 2023

05

Message from the CEO

the paradigm shift to a new society.

Elevating our core business toa higher level
As we head toward the year 2030, our core business will be an important source of revenue. This
includes DX, which focuses on business modeltransformation for client companies via ConSolution, the migration of legacy IT assets, andbusiness platforms such as shared online services.
Our policy is to deepen and expand this business.
During V2022, Con-Solution took shape as ameans of differentiating NRI from the competitionand produced solid results. On the other hand, thepush for DX has led to the emergence of competitors with similar business models. I am proud of
our absolute dominance in terms of the quality ofsystem development, but to maintain this superiority into the year 2030, I believe that we must
further raise our competitiveness. In our MediumTerm Management Plan 2023–2025, we aim tocultivate individual consultants with the ability tomake breakthroughs and promote enhanced links
between consulting and IT solutions to improve
the level of Con-Solution, cultivate clients, andexpand our client base.

Value Creation
Materiality

Value Creation CapitalManagement Basis (ESG)

accumulation of digital social capital and thereby
contribute to achieving a society where everyone
can lead an affluent life.
In order to make such a society sustainable, wemust discover solutions for social issues, which
are becoming ever more complicated. With visualization based on technologies such as digital platforms and digital twins, we will reduce external
diseconomies such as environmental destruction,
while also contributing to maintaining infrastructure
resilient to natural disasters and cyber risks andmechanisms to encourage behavior beneficial forsociety and the environment, such as the optimal
utilization of social resources.
Our aim in V2030 is to become an “indispensable presence” for achieving such a society. We
plan on steadily preparing to achieve this in our
Medium-Term Management Plan 2023–2025 forthe three years from FY March 2024. However,this does not mean that we will be veering off into
uncharted territory. I believe that by maintaining
the course plotted in V2022 and thereby elevating
our core business to a higher level, we can naturally accumulate digital social capital.

MTP2025
Corporate Information / Data

Nomura Research Institutecontinue to be a company that leads

Growth Story for 2030

06

NRI has advocated a shift from industrial capitalism, which has continued since the industrial revolution, to digital capitalism. The former focuses on
physical objects, while the latter is an economy
that focuses on digital services. In terms of corporate management, a world that focuses on
physical objects features depreciation, as value
deteriorates over time. With digital capitalism,value instead accumulates over time throughappreciation. As time goes by, data accumulates
and algorithms evolve. In other words, data is thesource of value. In order to build a highly productive society that generates high output with lesslabor, we must generate digital social capital thatsimultaneously accumulates economic value andsocial value by treating data as a shared asset thattranscends the barriers between private and public
and between different industries and fields. NRI
will bring together its strengths in human capitaland intellectual capital to lead the formation andour conviction that we need toV2030

During the COVID-19 pandemic, there was a shift
in various fields from providing physical objects toproviding services on digital platforms, or so-called
XaaS (everything as a service). There was also
rapid expansion in the D2C (direct to consumer)
business, where small business operators directly
connect with customers. In recent times, newinnovations utilizing generative AI have beenlaunching one after another. Looking ahead to theyear 2030, we are expecting to see digital twin
technology where virtual spaces synchronize withreal spaces, and the emergence of Web 3.0 withevolutions such as blockchain technology. It
seems that the spread of diverse platforms thatlink various services will lead to a new industrial
structure where the barriers between different
industries are removed.

Image of society and conviction of NRI

Our vision statement encapsulates

NRI’s Value Co-Creation

A company that leads transformations

There is also an irreversible trend for tacklingsocial issues at a global level. We must eliminate
the negative legacy of escalated natural disasters,
loss of biodiversity, and social inequality caused byclimate change, and preserve an affluent society
and beautiful planet for future generations. Digitaltechnologies are the key to responding to such aparadigm shift.
Japan is one country where these changes area pressing issue. Factors contributing to GDP
growth include the working population, annual
working hours, and labor productivity. I believe thatJapan is unable to boost the first two of thesethree factors. In other words, in order for Japan tomaintain a vibrant economy, it must resoundingly
increase productivity. NRI can contribute toincreasing productivity, and digital technologies
are the key to doing so.
In April 2023, NRI released the NRI Group
Vision 2030 Long-Term Management Vision(V2030) for the eight years from FY March 2024.
The vision statement of V2030 is “Envision thevalue, Empower the change.” “Envision the value”
expresses our existing stance of pursuing the provision of value. “Empower the change” embodies
my strong conviction that NRI can be a company
that leads transformations.

Message from the CEO

important to foster mutual relationships of trust
among our companies. Such relationships are reliant on inter-site trust. The basis of this trust is thehigh quality of our projects, which we maintain in
all of our solutions, services, and work, as mentioned with the previous project. Put another way,
it is our meticulous ability to conduct business.
NRI has honed such strengths via consistent corporate activities based on our corporate
philosophy.
Since our merger in 1988, we have provided
proposals that accurately identify changes in society and endeavor to achieve related projects witha high level of quality if they offer a high level ofsocial usefulness, even if they are difficult, basedon our two missions of “Discern new social paradigms and implement them” and “Build client trustand establish relationships for mutual growth” indicated in our corporate philosophy. This corporate
culture of pursuing added value leads to high profitability, and this in turn enables us to continue
hiring outstanding human resources with economic benefits that exceed the market average,
then once again create high added value. As longas this virtuous cycle continues, I believe that wewill maintain a competitive advantage and not becaught up in excessive competition.
In order to fulfill our missions at a higher level
than ever before, we will continue to pass along
this corporate philosophy and hone our strengths.

Integrated Report 2023

07

Message from the CEO

Since acquiring Core BTS in North America in
December 2021, we have often heard concerns
from our shareholders and investors about ouroverseas business. I would like to explain ourbasic concept of overseas expansion.
We have always invested in global businesswhile appropriately controlling the risks of doing
so. This is exemplified by our choice of Australia
as our first region for full-scale expansion.
Although Australia has a growing population andhigh market growth rate, it does not have a highly
competitive environment like North America, andvaluation is relatively low. We merged with or
acquired 10 companies over seven years, and I
believe that the reason that we were able to build
business infrastructure there without any major
failures is because the EV / EBITDA ratio is about

Materiality

Management Basis (ESG)
Corporate Information / Data

Nomura Research Institute

Providing the added value of
NRI globally

Value Creation Capital

08

Value Creation

via drastic production innovation.

MTP2025

every employee to feel improvement

Growth Story for 2030

profitability and enables each andWhile DX 1.0 transforms the business processesof clients via system development optimized forindividual companies and the migration of legacy
systems, DX 2.0 aims to transcend companies
and business sectors and transform industry itself
by utiizing digital technologies. The industry-­
spanning platform promoted by EARTHBRAIN
Ltd. uses data to accumulate value via appreciation. DX 3.0 expands the scope of this DX 2.0 tosociety at large. In V2030, we will enhance ourendeavors for DX 2.0 and DX 3.0, which will havea major impact on society. Of approximately 20
candidate themes, we will explore business where
NRI can provide added value, and we have avision for how we can realize this in the latter halfof V2030.
We already have business prospects for government services, regional regeneration, andregional digitalization. As exemplified by our My
Number services for the securities industry, which
we achieved ahead of the competition, we willpress forward with creating businesses that contribute to accumulating digital social capital andreducing social costs through the distinctive NRI
approach that handles everything from conceptualization to realization. We have already launchedseveral businesses, and I hope that they will be on
track soon.
With the cabinet decision on the Basic Policy
for Realizing GX in February 2023, companies
must visualize their greenhouse gas emissions
across the entire supply chain, and emissions
trading is scheduled to start in earnest fromFY2026. I believe this holds great opportunities
for us to demonstrate the strengths of NRI on aplatform that contributes to reducing greenhousegas emissions.
In our Medium-Term Management Plan 2023–
2025, we aim to expand DX 2.0 while accumulating
digital social capital with Social DX, simultaneously
achieve the coexistence of eco-friendliness andeconomic efficiency with Value Chain DX, andexplore the possibilities of Infrastructure DX toachieve sustainable and resilient social infrastructure.
DX 3.0 will require complex coordination among
various stakeholders. Because DX 3.0 is involved
in social infrastructure, the difficulty of suchbusiness is extremely high because it needs to be
inexpensive in order to reduce the burden on both
citizens and national finances. We will further
enhance our strengths to endeavor to achieve this.
As part of these efforts in the Medium-Term
Management Plan 2023–2025, we will enhance
our functionality as a think tank.
From the time that NRI was established, we
have contributed to society via efforts such as theinsight into and analysis of social issues and economic issues, government policy research, government policy recommendation, and systemdesign. We are currently enhancing the functionality of our Center for Strategic Management &Innovation, and plan to transmit information on
forming digital social capital and identifying social
issues, and make rules for new markets by building relationships with policymakers. With a neworganization that promotes DX 3.0, we will increase
our functionality as an enabler to form an ecosystem that binds together diverse market participants with business opportunities. By achieving
the implementation of this digital social capitaldesigned with next-generation think-tank functionality via Con-Solution, I hope that we can expand
the NRI approach of comprehensively providing
everything from conceptualization to realization tosociety at large.

V2030

that continuously enhances

Endeavoring to achieve DX 3.0 to impact
society

NRI’s Value Co-Creation

We will maintain an environment

improving productivity during the Medium-Term
Management Plan 2023–2025 will accumulate
to one-quarter of our operating profit over three
years, and then we will be able to reap therewards of doing so in our next Medium-Term
Management Plan. Relatively early results are
expected in our attempts to utilize AI to reduce
workloads in testing processes, which we havealready achieved. We also foresee a ripple effectfrom testing processes to other upstream development processes. In the future, we aim to
expand the scope of AI utilization to various development processes, while remaining mindful ofmaintaining quality. We also plan to shorten development periods and reduce maintenance costsby optimizing the scale of development, modernize our existing IT assets, and sharing digital IP(intellectual property) to contribute to improved
productivity.
We will also promote the expansion of IP business models with high added value, such as financial business platforms, which are one of our corebusinesses. This evolution will ultimately lead to
DX 3.0.

Message from the CEO

The operating margin of NRI remains the highest
in the industry, but compared to before, competitors are catching up, and this has me concerned.
This is because overwhelmingly high profitability isrequired to maintain our virtuous cycle of hiring
outstanding human resources and generating highadded value. With V2030, we will maintain anenvironment that continuously enhances profitability and enables each and every employee to feel
improvement via drastic production innovation.
In the Medium-Term Management Plan 2023–
2025, we will strengthen our foundations for doing
so. We have already made efforts regarding production innovation in system development, including the sharing of ideas at development sites,
the establishment of an award system, and the
involvement of numerous business partners. Our
business partners have praised our efforts as
being more in-depth than our competitors.
Improving productivity requires slow and steadyefforts, which take time to achieve results, but on
the other hand, it is difficult to obtain adequate
return on investment without dividing up schedules and setting clear targets. We have shared avision within the company, in which investment for

Integrated Report 2023

09

Message from the CEO

we will advance our DX businesswhile deepening regional links.

Growth Story for 2030

NRI is set to take on some major challenges
ahead, but I have no hesitation whatsoever. I
believe that a new society is possible if all our officers and employees work together to achieve thesociety outlined in our corporate philosophy, andwe are on track to do the course set in V2030. I
hope for the continued support of our shareholders and investors as NRI endeavors to transformsociety via the creation of digital social capital.

Value Creation
Materiality

Management Basis (ESG)

President & CEO
Chairman, Member of the Board
Representative Director

Value Creation Capitalseveral generations later. If the person at the top
holds their position for too long, the difference inexperience between the top and those below will
become greater and delay the development of thenext generation of managers. Our business environment is extremely volatile, and because there isa limit to the range of things that a single person
can know, relying on one prominent CEO is dangerous for our business continuity. This is why wehave adopted a management succession systemthat appoints a successor president from a nextgeneration management team systematicallyformed by selecting human resources that willcomprise the next generation of core management. The previous CEO is replaced by the nextgeneration management team while still in office,and the team cultivates teamwork while working
on things such as strategy design. Because the
new CEO is eventually selected from within thisteam, the new management members are able todiscuss things frankly amongst themselves. Whenthe second half of the CEO’s term begins, anothernext-generation management team is formed, andthe cycle repeats.

MTP2025
Corporate Information / Data

Our organization is optimized for creating highquality services without betraying client expectations. Although this quality has been a strength for
NRI, I have been concerned that it has also madeus excessively risk-adverse. As a whole, NRI mustachieve the two somewhat contradictory ideas ofquality that maintains social infrastructure and an
endeavoring spirit that attempts to innovate. In thepast, an outside Audit & Supervisory Board
member who had conducted interviews at our various divisions once told me how surprised they
were to find that all of our employees have thesame method for building logical arguments. At
the manufacturing company he is originally from,the various departments, such as R&D, production, and sales, all have different ways of thinking.
Our top management and employees have experience accomplishing successful projects in Japanin a unique way that works for NRI. Although thishas the benefit of enabling us to efficiently harden
our resolve and translate ideas into action almost
telepathically, it may not be so desirable from theperspective of diversity. In terms of diversity andinclusion, I believe that we must adopt morediverse ways of thinking, in addition to empowering women. That is why we are enhancing our
mid-career hiring. In order to achieve this vision of
the Company, we question the necessity of tackling such issues in the dialogue with our employees.
It was a great honor for NRI to be selected as aWinner company in the Corporate Governanceof the Year 2022 awards held by the Japan
Association of Corporate Directors. The originalityof our management succession system was particularly praised. NRI research shows that if astrong leader holds the position of CEO for a longtime, corporate value tends to be greatly damaged

focused on three main regions,

V2030

Nomura Research Institute

NRI moving forward on a set course

As we achieve autonomous growth

NRI’s Value Co-Creation

10

growth focused on three main regions, andadvance our DX business while deepening
regional links. In the future, we also plan to globalize our management by appointing overseas managers as NRI executives. I hope that everyone canunderstand that our global business is necessary
for continuously improving our corporate value
and see things from a long-term perspective.

Message from the CEO

10x to 20x, we targeted companies small enoughfor us to manage, and we were able to successfully apply a hands-on policy of increasing corporate value.
Our Australian business now has the foundations required for consulting, ASP services forfinancial institutions, application development, andmanaged services. In the future, we will transition
to the next step where our business infrastructure
will mature to achieve stable growth without being
influenced by the external environment. With
Australia positioned as our base camp, we canutilize our experience accumulated over theseseven years as we expand to North America.
In the North American market, global vendors
with enormous resources leverage their presence
to reform the core systems of large companies.
Our policy is to focus on added value instead ofsize, so that we can collaborate with regionallybased vendors to comprehensively provide
medium-sized companies with everything fromconceptualization to implementation, and thereby
achieve expansion from a different perspective tomajor vendors. Core BTS is our launching padfor doing so, and that is why we overhauled its
sales structure in 2022. In the Medium-Term
Management Plan 2023–2025, we will first focus
on producing results for that overhaul and placing
the Company on the track to stable growth. Upon
ascertaining these results, we plan to reinforce ourcapability via additional M&A, and thereby build abusiness model with high profitability like that inJapan, from a long-term perspective.
M&A will be required to achieve overseas revenue of more than 250 billion yen by the year 2030,
but we have no intention to unreasonably promote
M&A in North America, which has higher valuation
than Australia, simply to meet numeric targets. We
also have no intention of expanding our overseas
business to the extent that it harms the margins of
our entire Company. We will instead carefully proceed with overseas M&A upon conducting proper
valuation assessments and risk management.
Because many new information technologies are
created in North America, I believe that experienceand knowledge gained by actually conducting
business in the North American market is essential
for providing appropriate IT solutions to clients inJapan. In V2030, we plan to achieve autonomous

Integrated Report 2023

11

NRI’s Value Co-Creation

NRI’s Corporate Philosophy
Corporate Philosophy
Message from the CEO

Society We Innovate

ValuesFor Society:
Envision and realize
new paradigms

Prosperous society that
nourishes potential and brings
dreams to life

Foresight and thoroughness toexceed expectations

For Customers:
Be a trusted partner
for mutual growth

Sustainable society that connects
knowledge to treat the planet wisely
Resilient society that promotes
safety and security

Mutual respect to unite diverse
individuals
Passion and pride to pursue
new challenges

NRI’s Value Co-Creation

A Corporate Philosophy
that Builds on theFounding Spirit

Mission

V2030
Growth Story for 2030

Corporate Statement

NRI offers integrated services ranging from consulting through to IT solutions. We were
established through the merger of the former Nomura Research Institute, Ltd., Japan’s firstprivate-sector think tank, and Nomura Computer Systems Co., Ltd., Japan’s first commercial user of computers.
We summarize our commitment to creating a new society, business, and the future in our
corporate philosophy. While succeeding NRI’s founding spirit in these times of rapidchange, we are working to develop new social values and resolve various social issues.

MTP2025

Dream up the future.
未来創発

Value Creation

Our Founding Spirit Continues to Be Passed Down
History and Mission of NRI

The origin of NRI’s consulting business goes back to 1965 when
Nomura Securities Co., Ltd., expanded the functions of its Research
Division and established the former Nomura Research Institute, Ltd.
The objective was to make a dramatic leap to develop into a highquality research and investigation institution.
The founding prospectus, “Nomura Research Institute—Its
Concept and Policies,” describes the following as the aims of establishing the institute: “To be a new type of research institute that had
never existed in Japan before,” and “To promote industry and be ofservice to society through research studies.” This has been passed down to today
in NRI’s DNA, which makes it an organization with the primary goal of creating newsocial value and engaging in the resolutionof social issues through its main businessactivities.

The origin of NRI’s IT solutions business is the Electronic Data
Processing Division of Nomura Securities Co., Ltd., which wasestablished in 1953. In 1955, the division adopted the use of a commercial computer (UNIVAC-120) that had just been developed in the
United States, making headlines as the first instance in Japan of thecommercial use of a computer. This is the result of the desire andpassion to create new systems previously unseen in the world.
In 1966, the Electronic Data Processing Division spun off from
Nomura Securities to become the Nomura Computing Center Co.,
Ltd.* The philosophy of its establishment was to take the varied
expertise acquired through advanced system development as
Nomura Securities and put
it to use for management
rationalization and other benefitsof other companies. The
philosophy indicates an attitude
to be of service to society as
well as create new value.

In a move that foresaw an ideal information services company, the former Nomura Research Institute, Ltd., and Nomura Computer Systems Co.,
Ltd., merged to become the new Nomura Research Institute, Ltd. (NRI), in 1988. The new NRI succeeded the spirit of the two companies from thetime of their founding. It would do more than simply provide research, consulting, and IT services; the company would create new social value,
making its mission the resolution of challenges faced by society and clients.

Nomura Research InstituteCorporate split

Research
Division of
NomuraSecurities

Apr. 1965(Former) Nomura
Research Instituteestablished
MergerElectronic Data
Processing
Division of
NomuraSecurities

Corporate split

IT solutions

Jan. 1988

Dec. 2001

Launch of
new NRI

Listed on theFirst Section of
the Tokyo Stock
Exchange

Apr. 2023

Long-Term Management Vision,”NRI Group Vision 2030” andvision statement released

Jan. 1966

Nomura Computer
Systems established“When forecasting the advanced information society to come, there can be
no think tank without a systems function, and there can be no systems company
without a think-tank function”(From the press conference following the signing ceremony for the new NRI)

The commercial computer (UNIVAC-120)
adopted by Nomura Securities

Foreseeing the arrival of a digital age in which business and information technology (IT) became one,the merger of the two companies was driven by the passion of the management team to create acompany that was needed the most for Japan in the future to survive on the world stage.

Integrated Report 2023

Corporate Information / Data

12

* The company name was changed to
Nomura Computer Systems Co., Ltd.,in 1972.

Research consulting

Management Basis (ESG)

The founding prospectus of the former
Nomura Research Institute(Produced by Nomura Securities in 1962)

Materiality

Japan’s First Commercial Use of Computers

Value Creation Capital

Japan’s First Full-Fledged Private Sector Think Tank

13

NRI’s Value Co-Creation

A Path of Unchanging Value Co-Creation

2021

20th
(billions(billionsof yen)of(billionsyen) of yen)Revenue (left scale)
800 Operating profit (right scale)
800 800
Notes: 1.	The figures prior to 1987 are combined totals for the former Nomura ResearchInstitute and Nomura Computer Systems.
2.	The figures for 1988–1996 are non-consolidated; the figures for 1997
onward are consolidated.
3.	Owing to a change of fiscal year-end, 1989 was a six-month accounting
period (October 1988–March 1989).
For convenience, the graph shows six-month figures x 2.
4. Japanese GAAP until 2021.3, IFRS from 2022.3

90

90

90

60

60

60

30

30

30

0

0

0

2015

50th
2001

anniversary

Listed on theFirst Section of
the Tokyo Stock
Exchange

600

1965

1988

(Former) Nomura ResearchInstitute establishedLaunch of
new NRI

Globalfinancialcrisis

Nomura Computer Systems
established

Collapse of
dot-com
bubbleGrowth Story for 2030

1966

400

120

V2030

400 400

120 120

NRI’s Value Co-Creation

600 600(billions(billionsof yen)of(billionsyen) of yen)

Message from the CEO

anniversary ofstock exchange
listing

MTP2025

Collapse ofJapan’s
economic
bubble200 200

200

Value Creation

00

077.9 80.9 80.9

80.9

90.3 90.3

90.3

00.3 00.3

00.3

10.3 10.3

10.3

20.3 20.3

20.3

24.3 24.3
24.3(Forecast)(Forecast)(Forecast)Materiality

Services Created in Response to Societal Demand

14

Nomura Research Institute1989
Organized Pension Management
Study Group(affected Japan 401k scheme later)

1970
Launched Nomura Securities’ “Integrated
Online System”

1979
Launched a new ordering system for
SEVEN-ELEVEN JAPAN CO., LTD.

1974
THE STAR, a shared online service forretail brokerage firms, launched

1987
I-STAR, a shared online system forwholesale brokerage firms, launched

1994
Became the sixth company in Japan tolaunch a corporate website
1995
Center for Cyber Communities Initiative
established with Keio University
Cyber Life Club cybermall launched(a pioneer in online shopping businessin Japan)1987
Launched Famicon Trade System at
Nomura Securities(a pioneer in contemporary home trading
services)
1988
International VAN service between Japan andUnited States launched

1997
Conducted the first Survey of 10,000
Consumers(thereafter conducted every three years)
2000
Advocated the concept of Ubiquitous
Networking(a new information technology paradigm)

2003
Started sending CIO aides to governmentorganizations, including the Ministry of
Health, Labour and Welfare, the Ministryof Agriculture, Forestry and Fisheries, etc.
2007
Established Tsinghua-NRI Chinese
Research Center
Insight Signal, and advertising effectiveness measurement service, launched

1993
T-STAR, a shared online system for asset
management firms, launched

1999
Online trading system for an online
brokerage firm launched

1997
BESTWAY, an over-the-counter sales
system for mutual funds, launchede-Cash experiment with Japanesecommercial banks(Japan’s first electronic money trial)

2004
e-JIBAI, a compulsory automobile liability
insurance system, launched

2011
Recommendation activities and others forGreat East Japan Earthquake recovery
efforts
2012
Provided comprehensive support, fromdesigning the service to the systemarchitecture, for Shiseido’s integrated
online beauty service “watashi+”2012
Value Direct (for online banking) launched
2016
TRAINA, AI solution, launched2014
Assisted in the rollout of “NISA” system,from design to system construction
2020
Proposals regarding coronavirus infection(COVID-19) measures

2017
Started provision of the identity
verification service “e-NINSHO” using
My Number
2018
Started provision of e-PO box, the firstprivate-sector cloud linked with Mynaportal

Integrated Report 2023

Corporate Information / Data

IT Solutions

1984
System Clinic Service launched(a pioneer in system consulting businessin Japan)

1988
Started recommendation activities of theworld’s five big think tanks, including NRI(thereafter annually through 1995)

Management Basis (ESG)

Consulting

1970
Forecasted the number of visitors to theJapan World Exposition held in Osaka(a pioneer in research and consulting
business in Japan)

Value Creation Capital

77.9 77.9

15

NRI’s Value Co-Creation

NRI at a Glance
NRI’s Four Business Segments

Consolidated revenue

Consolidated operating profit

692.1billion

Number of employees(consolidated basis)

NRI Process Innovation, DSB, DSB Information System,
Nippon Securities Technology, Cutter Associates

20.7%
Number of consultants

over

1,000 persons

Operating Profit / Margin

Revenue IncludingInter-Segment Revenue(billions of yen)(billions of yen / %)(billions of yen)

50
40

Consolidated operating margin

Operating profit per employee

Revenue per employee

39.79 million

39.6

6.42 million

38.1
10

21.3

22.3

23.3

20.3

21.3

22.3

0

23.3

20.3

21.3

22.3

23.3

0

20.3

21.3

22.3

Operating profit

0

23.3

Operating margin

This segment provides system consulting, system development and system management solutions, and shared online
services mainly for the distribution, manufacturing, service,
and public sectors.

This segment provides data center operations and construction of IT platforms and networks that are provided to the
Financial IT and Industrial IT Solutions segments.
		 This segment also provides IT platform solutions andinformation security services to external clients. Furthermore,
NRI conducts research related to advanced information technology, etc.
Major affiliated companies
NRI SecureTechnologies, NRI Data i Tech, NRI Digital

Revenue IncludingInter-Segment Revenue

Operating Profit / Margin

Revenue IncludingInter-Segment Revenue(billions of yen)(billions of yen / %)(billions of yen)

300

276.0

250

4,500

25

229.9

200 181.4 189.5

Industrial IT Solutions

Financial IT Solutions

38.6%

47.5%

0

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

NRI payroll*
Domestic subsidiaries
Overseas subsidiaries* Includes Group company employees hired by the main body of NRI

22.3

23.3

20

150

15

100

10

50

5

0

20.3

21.3

22.3

23.3

0

25.4
22.0

180

24.4

138.6 142.6

19.4

157.5

169.8

11.1
10.3

8.9

Operating profit

22.3

23.3

Operating margin

13.9

13.3

14.0

0

20

13.7

12

10

0

(billions of yen / %)
23.3
20.9
19.4 19.7

18

60

21.3

24

120

12.2

20.3

Operating Profit / Margin

10

6

20.3

21.3

22.3

23.3

0

20.3

21.3

Operating profit

22.3

23.3

0

Operating margin

Integrated Report 2023

Corporate Information / Data

Banking
Other
8.0%
financial
7.9%

20

30

Management Basis (ESG)

9,000

Insurance
11.1%

Nomura Research Institute10

IT Platform Services

NRI Netcom, NRI System Techno, NRI Digital, NRI Australia
Limited, Planit Test Management Solutions Pty Limited,Core BTS, Incorporated.

¥692.1 billion

16

10

Securities
20.4%

FY March 2023
Consolidated revenue

Distribution
10.2%

12.4

Industrial IT Solutions

13,500

Manufacturing,
serviceand other
28.4%

0

12.3

14.9

14.2

20

Operating margin

Major affiliated companies

18,000

30

150

36.2

Materiality

6.7%

200

43.8
34.1

Value Creation Capital

7.3%

0

49.7

Value Creation

Consulting

40

50

20.3

20

60
50

100

10

Operating profit(persons)

IT Platform Services

20

5

Industry Top Level

NRI Group’s Employees

308.3(billions of yen / %)

334.1

250
25.8

26.4

350
300 276.9 292.0

12.3

28.9

10.0

9.4

24.0

20

0

External Revenue by Segment

40

12.8

30

¥

¥

44.4

15

MTP2025

16.2%

47.8

Operating Profit / Margin
Growth Story for 2030

17,394 persons

Revenue IncludingInter-Segment Revenue

V2030

118.8 billion¥

This segment provides system consulting, system development, and system management solutions, shared online services, and BPO services for financial institutions mainly in the
securities, insurance, banking, asset management, and otherfinancial sectors.
Major affiliated companies

111.8 billion

Cash flows from operating activities

This segment provides management consulting, operational
consulting, and system consulting for enterprises and government agencies. This segment is also engaged in research,
future projections, and recommendations related to society,economics, business, technology, etc.
ROE

¥

¥

Financial IT Solutions

NRI’s Value Co-Creation

FY March 2023 Consolidated

Consulting

Message from the CEO

The NRI Group business is divided into four business segments: Consulting, Financial IT Solutions,
Industrial IT Solutions, and IT Platform Services. Each segment is maintaining an industry-top-levelcompetitive edge in its respective domain.
We maximize the value provided to clients by each business segment by flexibly teaming with other segments.

17

NRI’s Value Co-Creation

Solid Client Base

NRI has established a stable profit structure with sustainable businesses accounting for approximately 60%, such as shared
online services, system management, and operation outsourcing, as well as enhancements (maintenance and operations) in
system development.

NRI has accumulated experience and know-how related to various industries and operations, through long-term business
relationships with industry leaders. We utilize our intellectual capital to create innovative solutions, such as shared online services. Furthermore, by continuing to provide high-quality services, we are working to strengthen relationships with clients andexpand our client base.

Message from the CEO

Stable Profit Structure

Consulting Services
Product Sales
System Development & System
Application Sales (new)700

Approximately 60% is recurring
revenue with stable growth
350

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

22.3

23.3

Aioi Nissay Dowa Insurance Co., Ltd.
(former Dai-Tokyo Fire & Marine Insurance)
ONWARD KASHIYAMA (former Kashiyama)
KOKUBU GROUPSEVEN-ELEVEN JAPAN
Many other companies
Number of companies using the services as of the end of March 2023





(%)

(FY Mar. 2023)
20

My Number solutions (e-BANGO / e-NINSHO / e-PO box)

SCSK
ITOCHU Techno-Solutions
BIPROGY
NTT DATA(former Nihon Unisys)

0

NRI

25

NRI

6
ITOCHU Techno-Solutions

200

400

600

3,400

3,600

Revenue (billions of yen)(Source) Compiled by NRI from the above companies’
financial statements

20

Accenture
Cognizant

NS Solutions

15

4
SCSK

Capgemini

BIPROGY(former Nihon Unisys)

TIS

IBM
10

86 firms

107 firms

FY March 2019

FY March 2023

Securities

Insurance

Banking

15 firms

12 firms

13 firms• Nomura Securities Co., Ltd.
•M
 izuho Securities Co., Ltd.
•S BI SECURITIES Co., Ltd.
 itsubishi UFJ Morgan Stanley•M
Securities Co., Ltd.

• Tokio Marine & Nichido Fire InsuranceCo., Ltd.
• J APAN POST INSURANCE Co., Ltd.
•S
 ony Life Insurance Co., Ltd.
•A
 ioi Nissay Dowa Insurance Co., Ltd.
etc.

• Seven Bank, Ltd.
•T he Nomura Trust and Banking
Co., Ltd.
etc.

etc.

Distribution

Manufacturing, service and other

Other domestic industries

15 firms

23 firms

13 firms

0
0

15

30

45

60

75

2019.32020.32021.32022.32023.3

Revenue per employee (millions of yen)(Source) Compiled by NRI from the above companies’
financial statements(Source) Compiled by NRI from SPEEDA
Note: Based on earnings closed in the following
months, respectively.
Accenture: Aug.;
IBM, Cognizant, Capgemini: Dec.;
NRI: Mar. next year

• SEVEN-ELEVEN JAPAN CO., LTD.
• Ito-Yokado Co., Ltd.
•B IC CAMERA INC.
•K OKUBU GROUP CORP.

• KDDI CORPORATION•Y AMATO TRANSPORT CO., LTD.
•R
 ecruit Co., Ltd.
•A jinomoto Co., Inc.

Corporate Information / Data

Nomura Research Institute

2020s

5

NTT DATA

etc.

18

2010s

Number of Clients with Revenues of ¥1.0 Billion or More

2

0
0

2000s

Management Basis (ESG)

5

Operating profit per employee (millions of yen)

NS Solutions

10

1990s

Materiality

TIS

1980s

Overseas
etc.

Value Creation Capital

15

1970s

30

8

NRI

Operating margin (%)(FY Mar. 2023)

24 firms

Value Direct (Internet banking)

Value Creation

EBITDA Margin Comparison

110 firms

BESTWAY (for banks, etc.)

MTP2025

Industry-Wide Comparison ofConsolidated Revenue andOperating Profit per Employee

80 firms

T-STAR (for asset management firms)

NRI maintains top-level profitability (consolidated operating margin and EBITDA margin) as well as productivity (consolidated
revenue and operating profit per employee) compared with competitors both in Japan and overseas.

Industry-Wide Comparison ofConsolidated Revenue andOperating Margin

28 firms

I-STAR (for wholesale brokerage firms)

NRI establishedin 1965

High Levels of Profitability and Productivity

87 firms

THE STAR (for retail brokerage firms)

Growth Story for 2030

0

Nomura Securities

V2030

	System Development & System
Application Sales (enhancement)System Management & Operation
Services• Operation outsourcing• Shared online services

Shared online services(billions of yen)

NRI’s Value Co-Creation

Approximately 40% of revenue islinked to business cycles

System development andmanagement, andoperation outsourcing
Shared online services

Revenue

16 firms

Integrated Report 2023

19

NRI’s Value Co-Creation

Process of Value Co-Creation

Integrated pursuit of building a sustainable future society and realizing NRI growth strategies

MissionFor Society:
Envision and realize new paradigms

Mutual respect to unite diverse individuals
Passion and pride to pursue new challenges

Resilient society that promotes safety and security

Value Creation Capital

Value Creation

DX

Growth Story

through bold actions
and growth of diverse
professionals

Business Expansion

Advance human capital

Dream up the future.
未来創発

Foresight and thoroughness to exceed expectations

Sustainable society that connects knowledge
to treat the planet wisely

StrengthenCore Business

Deepen /Expand Core BusinessCo-create a thriving
future society
through expansion ofdigital social capital

GlobalClient Interaction

Accumulate
intellectual capital

Financial IT Solutions

IT solutions

Data analysis andverification

Integration andimplementationof technology

Industrial IT Solutions

through sophistication of
infrastructure

List of Materialities
P.50

Financial CapitalManagement Basis (ESG)

List of Materialities

Management Basis (ESG)

Natural Capital

Materiality

IT Platform Services

P.50

Social and Relationship Capital

Contribute to global
environment

20

Nomura Research Institutethrough strengthening ofrelationships withstakeholders

Evolve governancethrough realization ofstrategic risk control

Medium-Term Management
Plan 2023–2025 in Figures
P.43
Corporate Information / Datathrough collaboration
with business partners

Fulfill our social
responsibilities

Value Creation Capital

List of Materialities
P.50

Co-create a safe andsecure society

Consulting

Consulting
Business Modelthrough effective utilizationof resources

Value Creation

through elevation ofindividual knowledge into
organizational strength

Insight andproposals

MTP2025

Co-create an optimalsociety

Regional Expansion

Business­planning andtransformation

Growth Story for 2030

Opportunities and Risks Due to Changes in the External Environment

Prosperous society that nourishes potential andbrings dreams to life

Corporate Statement

V2030

P.22

Values

NRI’s Value Co-Creation

For Customers:
Be a trusted partner for mutual growthSociety We Innovate

Message from the CEO

Corporate Philosophy

Integrated Report 2023

21

NRI’s Value Co-Creation

Opportunities and Risks Due to Changes in the External Environment Model
Opportunities ontribution to preserving the globalC
environmentImportance of decarbonization andother means of resolving social
issuesBusiness continuity in states of emergency

Changes in global regulatory trends

 elting of boundaries between
Mbusiness types and industries
due to digitalization
 rowth limits of existing revenueGmodels trengthening of the protection
Sof rights

 edefinition of industry andRbusiness models, and integration ofmanagement and technology- Need for simultaneous transformation of both clientbusiness and IT through the combination of consulting andIT solutions

 revention of legal violations andP
serious accidents- Need for advisory services for the practice andestablishment of rights protection

Emergence of DX-related business- R&D for advanced themes with a focus on DX-related
business- Emergence of business by accumulating expertise throughcollaboration with clients

Quality of Information Security

P.76

Risk Management PDCA Cycle

P.122

MTP2025 Global Strategy

P.40

NRI’s Corporate Governance

P.108

Business partners- Tightening of regulations toward overseas offshore development,
and degraded quality of efficiency

Handling throughout the entire supply chain- Delay in achieving Scope 3 targets

Q uality- Occurrence of large-scale system failures- Unstable operation of the operating systemC ompliance- Infringement of third-party intellectual property rights- Violation of domestic and foreign laws and regulationsP rojects- Late delivery- Working hours exceeding the initial estimate

Securing / cultivating human resources- Insufficient securement and cultivation of human resources
with expertise- Decline of labor productivity and loss of human resources

Business partners- Insufficient securement of business partners- Decline of productivity and quality in the NRI Group,
including business partners

Cooperation with Business Partners

P.97

Contribute to Global Environment

P.78

Accumulate Intellectual Capital
NRI’s Quality Management

P.70
P.73

Internal Controls, Corporate Ethics, and Compliance
P.122

Accumulate Intellectual Capital
NRI’s Quality Management

Advance Human Capital

P.70
P.73

P.56

Cooperation with Business Partners
NRI’s Quality Management

P.97
Corporate Information / Data

Nomura Research InstituteGroup governance- Insufficient synergistic effects of M&A and partnerships- Inadequate system for global strategy promotion

Expansion of the usage of IT services

 ariety of working styles andVdiverse human resources

P.97

Spillover to financial systemic risk

- Heightened needs for increasing business efficiency andimproving productivity- Shift to shared online services- Modernization of systems using new technology- Pursuit of optimal working styles for NRI, such as
the utilization of telecommuting- Value creation through collaboration with business
partners and external human resources22Response to financial regulations and laws

Cooperation with Business Partners

Management Basis (ESG) howing respect for individuals andS
new working styles

Management of greenhouse gas emissions- Consulting, IT solutions

Information security- Information leakage due to unauthorized external access-G roup governance of rule violations at the NRI Group andbusiness partners

Materiality

Diversificationof Values andWork Styles

Commoditization of no-code,
low-code, etc.

Reconstruction of supply chains- Need for advisory services for corporations constructing
their global supply chains

P.73

Value Creation Capital

Progress of Latest
Technologies andCommoditization

 volution of advanced technology
Esuch as generative AI, cloudcomputing, and next-generation
communications

Entry into overseas markets- Incorporation of IT investment needs in overseas markets- Overseas acquisition of competitive intellectual properties

NRI’s Quality Management

P.97

Value Creation

Increasingly Fluid
Industrial Structure

New products and new services in finance- Ill-preparedness for COVID-19 and large-scale natural disasters

Cooperation with Business Partners

MTP2025

 rowing interest in contributing toGthe global environment- Need for information security services that manage data,such as personal information, safely and securely- Need for advisory services by experts due to lackof information security specialists

Business continuity

Growth Story for 2030

 rowing importance of economicG
security

P.122

V2030

 elative expansion of the scale ofRoverseas markets

Internal Controls, Corporate Ethics, and Compliance

NRI’s Value Co-Creation

Strengthening of information security

Complex Social
IssuesSocial responsibility- Insufficient efforts for human rights and labor practices

Related initiatives- Reduction of client greenhouse gas emissions throughshared online services- Need for data centers that possess advanced disasterprevention functions

Increase in cyberattacks that arecoupled with the increased
complexity of international
political trends

Risks

Message from the CEO

Main Changes to the External Environment

P.73

Integrated Report 2023

23

NRI’s Value Co-Creation

NRI’s “Con-Solution” Business Model

NRI’s Corporate Philosophy and NRI Group Vision 2030 System
NRI’s corporate philosophy clearly states the image of society that we will co-create to adhere to our concept of contributing
to social value. This concept permeates everything from our corporate philosophy to our business plan. Furthermore, the NRIGroup Vision 2030 sets a basic sustainability policy (materiality).

Toward a Vision Centered on the Integration of Economic Value and Social Value
Delivering innovative, continuous value through consistent “con-solutions”

Consulting
As a think tank, we provide social recommendations based on in-depth investigation and research. We also promote thetransformation of organizations, businesses, and ultimately society based on the experience and know-how of our numerous
consultants familiar with various industries and business processes.

Until our Long-Term Management Vision “Vision2022,” we presented NRI’s sustainability management in the form of bothfinancial and non-financial targets. The NRI Group Vision 2030 does not distinguish between financial and non-financial
targets; instead, it sets a basic sustainability policy (materiality) based on the concept of integrating economic value andsocial value.

NRI’s Value Co-Creation

We collaborate with clients though consulting and IT solutions, and increase value by repeatedly testing hypotheses.

We position our corporate philosophy, “Mission” and “Values,” as permanent and our long-term management vision (Vision) as
temporary.
In addition to our “Mission” and “Values,” our corporate philosophy clearly defines the image of the society that we will cocreate as a “society we innovate.” This is a concrete expression of what NRI is striving to accomplish.

Message from the CEO

NRI’s original business model combines two strengths: consulting that identifies issues with accuracy
to enable effective solutions, and IT solution expertise that resolves issues through system development
and operation that employ advanced technology.

V2030

IT Solutions
Our IT engineers deliver transformation through information systems and various services using leading-edge technologies.
We anticipate advanced technology trends and strategically incorporate them into our solutions.
Growth Story for 2030

MTP2025

Concept of “Con-Solution”

NRI’s Corporate Philosophy and NRI Group Vision 2030 System

Businessp­ lanning andtransformation

MissionMission &ValuesSociety we innovate

Value Creation

Insight andproposals(Permanent)

Corporate Philosophy

Corporatestatement

ValuesConsulting(Temporary)

Integration andimplementationof technology

VisionGrowth story

Visionstatement
Management Basis (ESG)

Data analysis andverification

Materiality

NRI Group in 2030

Sustainability strategy (materiality)

Medium-Term Management Plan (MTP)
Corporate Information / Data

24

Nomura Research Institute

Value Creation Capital

NRI Group Vision 2030 (V2030)

IT solutions

Adhere to theconcept of social
value from ourcorporate philosophy
to our Medium-Term
Management Plan(business plan foreach fiscal year)

Integrated Report 2023

25

Growth Story for 2030

Transition of Growth Strategy

Medium-Term Management Plan (2019–2022)

FY March 2017–FY March 2019

FY March 2020–FY March 2023

FY March 2024–FY March 2031

Expand the customer base and take on the challenge of new areas,
including global and digital

To be ahead of the times through the convergence of business andtechnology, with insight into the prosperity that lies beyond DX, andto dynamically transform the world with “Digital Social Capital.”

To provide a business platform that laterally spans theindustry and market

Improve productivity in specialty areas in Japan

Growth higher than industry average and profitability set
NRI apart in the industry
Results

7% growth

FY March 2016
(Results)• Expand number of clients to whom sales were
¥1 billion or more: 86 firms (+22 firms)*

Break dependence on two
major clients

58%

74%

Expand business in industrial sector

19%

24%

Expand industry standard
business platforms

12%

22%

(FY March 2016)

Powerful business portfolio

Strategy andMain Results1%

Cloud Strategy
Global Strategy

Create business IT

Financial Targets and Results• Established joint ventures: 4 firms
* Number of firms for FY March 2019 (compared to FY March 2016)

Financial Targets and Results

Specific Initiatives

MTP2022 Targets

Revenue¥692.1 billion¥670.0 billion or more

Operating profit¥111.8 billion¥100.0 billion

Operating margin

16.2%

14% or more

Overseas revenue¥123.2 billion¥100.0 billion

EBITDA margin

22.5%

20% or more

20.7%

14%*

FY March 2019
(Results)

MTP2018 Targets

Revenue¥501.2 billion¥500.0 billion

Operating profit¥71.4 billion¥70.0 billion

Operating margin

14.3%

14%

Overseas revenue¥53.0 billion¥58.0 billion

ROE

12.3%

around 12%* Aiming for higher capital efficiency in continuing from the previous term

ROE

(%)

Ratio of Revenue in Japan and Overseas
FY March 2016

106.2

421.4
400

424.5

58.2

471.4

58.5

501.2

65.1

71.4

528.8

20.3

611.6

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

17.4

18

13.8
60

10.6
6

0

0

Operating profit* Figures from FY March 2022 onward are based on IFRS, and others are based on JGAAP.

13.8

12

30

21.3

10.7

13.8

14.3

12.9

12.3

15.7

20%

Ratio of External Revenue by Segment
FY March 2023

FY March 2016

FY March 2023

20.7
16.2

15.7

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

Operating margin

ROE

Overseas 3.5%

Overseas 17.8%

Consulting 6.7%

Consulting 6.7%

Japan 96.5%

Japan 82.2%

Financial IT Solutions 60.0%

Financial IT Solutions 47.5%

Industrial IT Solutions 24.1%

Industrial IT Solutions 38.6%

IT Platform Services 6.8%

IT Platform Services 7.3%

Others 2.4%

26

Nomura Research InstituteIntegrated Report 2023

Corporate Information / Data

Revenue

90

550.4

200

0

21.8

692.1

More than

Operating Margin

Management Basis (ESG)

83.1

600

86.5

24

Overseas Revenue

1 trillion
Over ¥250 billion
Over ¥

Materiality

Operating Margin / ROE

Revenue Value Creation Capital

Revenue / Operating Profit(billions of yen)120

Numerical Image of 2030

FY March 2023 (Results)

Value Creation


Introduce
THE STAR to Nomura Securities Co., Ltd.
Established and acquired subsidiaries in the industrial field		 • 3 firms
Started provision of new industry standard businessplatform services		 • Expansion of Service Lineup for Financial Institutions		 • Expansion of My Number related services
Established overseas bases		 • 5 offices mainly in Asia

GlobalRegional Expansion• Global acquisition: Australia, 2 firms; North America, 1 firm

6%

111.8

Deepen /Expand Core Business

Human Resources Strategy

Build foundations for global businessNote: All percentages (%) are the sales ratio.

800

StrengthenCore Business

MTP2025

Expand overseas-related
business

Business Platform Strategy• THE STAR:

Growth Story for 2030

FY March 2008
(Results)

13.8%

OperatingMarginDX

V2030

13% or more

73 firms (+5 firms)*• BESTWAY: 114 firms (+5 firms)*• T-STAR: 78 firms (+5 firms)*(from FY March 2008 to FY March 2016)

Growth Story

DX Strategy

Expand industry-standard business platforms anddevelop large-scale clients

Targets

2.6%

Sales Growth
Rate (CAGR)

Growth Strategy

Growth Strategy

NRI’s Value Co-Creation

Medium-Term Management Plan (2016–2018)

FY March 2009–FY March 2016

V2015 Growth Targets and Results

Envision the value, Empower the change

Business Expansion

NRInnovation !

Objectives

NRI Group Vision 2030

Share the Next Values !

Message from the CEO

Vision2022

Vision2015

27

Growth Story for 2030

Looking Back on V2022
ESG Initiatives Highly Recognized by External Evaluation Institutions

Results of V2022

External Recognition (Examples)(Main points that were recognized)

Dow Jones Sustainability Indices¥421.4 billion¥692.1 billion

V2022 Targets—

CompoundAnnual Growth Rate
(CAGR)MSCI ESG Ratings*+7.3%

As of 2022, Nomura Research Institute, Ltd.
received an MSCI ESG Rating of AAA

Operating profit¥14.6 billion¥58.2 billion¥123.2 billion¥111.8 billion¥100.0 billion¥100.0 billion+35.6%+9.8%

14% or more

—

ROE

10.6%

20.7%

14%

—

• Initiatives for corporate governance andcompliance•	Certified as a CDP climate change
A-list company for four consecutive years from 2019•	Deliver more information disclosure(green gas emissions, etc.)• Strengthen data security, etc.

CDP•	Awarded the highest rating for the
CDP Supplier Engagement
Leaderboard for four consecutive
years from 2019

•	Strong engagement with business partnercompanies•	Encouragement to set greenhouse gas
reduction targets•	Urging of information disclosure pertaining togreenhouse gas emissions* THE USE BY NRI OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMESHEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF NRI BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF
MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

Management Basis (ESG)

16.2%•	Awarded the highest rating, AAA,for two consecutive years from2021

• Diversity and inclusion

Materiality

13.8%•	Efforts to mitigate ESG-related risks

Corporate Information / Data

28

Nomura Research Institute

Value Creation Capital

Operating margin• MSCI ESG Leaders Index®
	Adopted for seven consecutive
years from 2016

Value Creation

Overseas revenue• Governance: Initiatives for compliance

MTP2025

RevenueFY March 2023
(Results)•	Society: Enhance human resource data and invest
in human resource development
Growth Story for 2030

• Asia Pacific Index	Adopted for seven consecutive
years from 2016

•	Environment: Scenario analyses of the financial
impact of climate change
V2030• World Index	
Adopted for five consecutive years
from 2018

V2022 Financial Targets and Results
FY March 2016
(Results)

NRI’s Value Co-Creation

Through efforts in the Medium-Term Management Plan (2016–2018) and the Medium-Term Management Plan (2019–2022),
we achieved the planned values for all of the indicators of financial targets set in V2022.
As the five pillars of NRI’s growth strategy, V2022 promoted 1) dramatic expansion of globalization, 2) enhancement of the
IP lineup, 3) promotion of business value creation, 4) further pursuit of production innovation, and 5) collaboration and mobilization of diverse human resources. We worked to achieve our financial targets of operating profit of ¥100 billion, an operating
margin of 14% or higher, overseas revenue of ¥100 billion, and ROE of 14%.
NRI overcame the new issues that became apparent as our initiatives progressed, and we grew at a high compound
annual growth rate (CAGR) of +9.8% for operating profit and a CAGR of +35.6% for overseas revenue.

Under V2022, we worked not only to achieve our financial targets, but also actively pursued initiatives in non-financial areas,
including ESG.
These efforts have been recognized by various external evaluation agencies and have received the highest ratings fromDow Jones, MSCI, and CDP.
NRI was also selected as a Winner Company for Corporate Governance of the Year 2022, which was held by the Japan
Association of Corporate Directors.

Message from the CEO

NRI achieved the planned values for all financial targets in its Long-Term Management Vision“Vision 2022.” We also received high recognition from external evaluation organizations for our efforts
to solve social issues through value co-creation (CSV: Creating Shared Value) and our ESG initiatives.

Integrated Report 2023

29

V2030

NRI Group Vision 2030 (V2030)
Growth Story

To be ahead of the times through the convergence of business and technology,
with insight into the prosperity that lies beyond DX, and to dynamicallytransform the world with “Digital Social Capital”.

DX3.0

StrengthenCore Business

Overseas RevenueOver ¥250 billion

Operating Margin More than 20%

Establish business platform
with unique NRI­professional services

DX1.0

Deepen /Expand Core
Business

Growth inJapan / Asia

Strengthenb­ usiness inAustralia

North America
expansionMateriality

Value co-creation
with customer

Management Basis (ESG)

Regional Expansion
DX Classifications Envisioned by NRI

DX3.0

Paradigm
transformation

Solve social issues and realize a paradigm transformation

DX2.0

Business modeltransformation

Create a new business model through digital technology

Processtransformation

DX1.0
Infrastructuretransformation

Contribute to process transformation and infrastructure transformationof existing businesses

Integrated Report 2023

Corporate Information / Data

Enterprises andindustrytransformation

Nomura Research InstituteOver ¥1 trillion

DX2.0

Societytransformation

30

RevenueValue Creation Capital

NRI Group Vision 2030 Statement

Enhance­competitivenessand value addition

Value Creation* Digital social capital: Common infrastructure and services that support society and industry by creating new value through digital technology

Numerical image of 2030

“Digital Social Capital”
creation

MTP2025

By concentrating management resources on areas and themes that meet these policies, we will pursue business expansion and regional expansion in NRI’s growth story, while further deepening value creation with clients.

Growth Story for 2030

Growth Story for 2030

•C
 reate “Digital Social Capital” for a prosperous and thriving society through the advancement of the NRI Group’s humanand intellectual capital•P romote initiatives such as business platforms for the effective use of social resources, and digital twin for the realizationof an efficient society•E stablish IT infrastructure that is resilient to disasters and cyber risks so that people can utilize safe and secure digital
services

GlobalFrom a long-term perspective, relying solely on the Japanese market is risky and limits our growth potential. Moving forward,
we will expand into markets of developed countries where continued growth is expected due to population growth and where
the intellectual capital of IT services is well protected and managed.

V2030

In order to create a prosperous and active society, it is necessary to realize a society with extremely high productivity. Japan isfacing a declining population. Therefore, all stakeholders, including the government, industry, and consumers, must realize andutilize “digital social capital”* that differs from future industrial capital.
The former Nomura Research Institute, Ltd., was established based on the concept of integrating economic value andsocial value. The concept of integrating economic value and social value was described in our founding prospectus, “Nomura
Research Institute: Its Concept and Policies,” and is now clearly stated in our corporate philosophy. NRI’s ideal form for V2030
is consistent with the business activities that we have practiced over many years. We continue to refine this ideal form. In otherwords, building digital social capital for various stakeholders is the true business of NRI.
In V2030, we examined how to realize a “society we innovate” by 2030, which is a goal that we newly set in our corporate
philosophy.

DX
In addition to DX1.0 and DX2.0, NRI will take on the challenge of DX3.0, which will have an impact on society beyond companies and industries. We will work to create digital social capital through DX2.0 and DX3.0.

NRI’s Value Co-Creation

Our GoalBusiness Expansion

NRI Group in 2030

Core BusinessIn addition to “deepening and expanding” for further deepening value creation with clients through Con-Solution, we will
pursue growth through the two aspects of “evolution” to achieve overwhelming competitiveness and high added value byimplementing business platform expansion and comprehensive innovation of production.
NRI believes that further refinement of our core areas, which are the cornerstone of our growth story, will lead to the integrated realization of NRI’s growth and the creation of social value that we aim for in V2030.

Message from the CEO

The basis of NRI’s concept is to integrate economic value and social value throughout our corporate philosophy
and business plans.
Under the NRI Group Vision 2030, we are engaging in the integrated pursuit of “creating a sustainable futuresociety” and “achieving the NRI Group’s growth strategy,” based on our basic sustainability policy (materiality).

31

V2030

PDCA Management of Materiality

In V2030, we have newly incorporated a basic sustainability policy (materiality). In this policy, NRI’s materiality is defined as­priority themes to be addressed as we head toward 2030: specifically, “creating a sustainable future society” and “realizing the
NRI Group’s growth strategy.” We believe that pursuing these themes in an integrated manner we will lead to the implementation of our corporate philosophy.
NRI’s materiality has a three-tiered structure. First, “Value Creation” refers to the realization of a sustainable future society
through value co-creation with clients. Second, “Value Creation Capital” refers to the use of human capital and intellectual
capital to support that value creation. Third, “Management Basis (ESG)” refers to the expansion of ESG initiatives, which is aprerequisite for value co-creation, to the supply chain with the cooperation of our business partners.

In order to evaluate/manage risks and opportunities related to sustainability and to promote materiality, NRI has set key­indicators (materiality indicators) and target values in our Medium-Term Management Plan 2023–2025. We manage important
indicators through the PDCA cycle of the business plan and report to the Board of Directors on a quarterly basis.

Integrated Pursuit of Building a Sustainable Future Society andRealizing NRI Group’s Growth Strategies
Co-create a safe
and secure society

through effective utilizationof resources

Advancehuman capitalthrough elevation ofindividual knowledge into
organizational strength

Fulfill our social
responsibilities

Evolvegovernancethrough strengthening ofrelationships with stakeholders

through realization ofstrategic risk control

Sustainability Governance System

Materiality

KPI

FY March 2026 Targets

Overall investment and spending on measures for
DX2.0/3.0 that transforms industries and society¥63.0 billion*1

Co-create an optimal society

Revenues of business platforms that help to achieve
an optimal society¥141.0 billion

Co-create a safe and secure society

Revenues related to safety and security to enable amore resilient society*2¥216.0 billion

Employees’ sympathy for social value creation*(domestic group companies)

3

Advance human capital

Employee engagement score (NRI Payroll)Female opportunity offering rate*4 (Non-consolidated)

Accumulate intellectual capital

Amount of investment in creating andaccumulating intellectual capital

Contribute to global environment

Fulfill our social responsibilities

Evolve governance

Rate of consent to the NRI Group Business Partner
Code of Conduct*6 or possessing own such codesof conduct*7
Number of cases in which severe risk materializes(reports to regulatory authorities or incidents of equivalent severity for which the NRI Group is responsible)
DJSI World

70%

Presentation and report

Sustainability Committee
Discussion of important sustainability issues, monitoring of materiality progress, etc.
Chairperson
Head of Sustainability Management
Members
Elected Directors

More than 70 continued
17%¥41.0 billion*1
FY2030 Targets
Scope 1+2: Net-Zero*5
Scope 3: Reduced by 30%
Renewable energy usage rate:
100%
Domestic group 90%(Ref. Global 80%)
0Value Co-creation Promotion Committee

Sustainability Activities Committee

Promotion of MVV (Mission & Values, V2030) and value
co-creation penetration, grooming of value co-creation
leaders, implementation of monitoring and evaluation, etc.

Sustainability management framework, decarbonization,
sustainability disclosure, stakeholder dialogue, global
response, etc.

Chairperson
Senior Corporate Managing Director
Members	Elected Directors and General Managers,
etc.

Cooperation

Chairperson
Senior Corporate Managing Director
Members	Elected Directors and General Managers,
etc.

Selection Continued*1 Cumulative values during the term of MTP2025 *2 Including inter-segment revenue for each segment *3 Ratio of employees who feel strong buy-in for the concepts of “value co-creation”
and NRI’s “three social values” *4 Percentage of women responsible for projects and businesses *5 97% reduction of Scope 1+2 emissions and neutralization of residual emissions*6 Including environment, human rights, etc. *7 Consenters or holders of equivalent standards in NRI Group‘s procurement partner companies, such as system development contractors

32

Nomura Research InstituteIntegrated Report 2023

Corporate Information / DataManagement
Basis (ESG)

Greenhouse gas emissions reduction rate /Renewable energy usage rate
(Base year: 2019)

Supervision

Management Basis (ESG)

Value
Creation
CapitalBoard of Directors

Materiality

Co-create a thriving future society

Value Creation Capital

Value
Creation

Value Creation

Materiality Indicators and Targets

NRI positions sustainability as an important management issue. Sustainability is considered in the composition and supervision of the Board of Directors. In addition to appointing outside directors with knowledge of sustainability, the Board of
Directors passes resolutions on the basic sustainability policy (including materiality).
Furthermore, under the supervision of the Board of Directors, the Sustainability Committee (chaired by the director in
charge of promoting sustainability management and related subcommittees), the Value Co-Creation Promotion Committee(chaired by a senior corporate managing director), and the Sustainability Activities Committee (chaired by a senior corporate
managing director) promote sustainability throughout the entire Group and periodically report to the Board of Directors on the
progress of activities. The role of the Sustainability Activities Committee is to advance activities that form a foundation from theperspective of ESG.
Moreover, when determining stock-based compensation for directors and senior managing directors, we have introduced
a mechanism that considers the status of efforts to achieve our sustainability indicators, including the reduction of greenhousegas emissions and the expansion of human capital. Please refer to page 116 for information on the introduction of the mechanism that considers the status of efforts for sustainability indicators for stock-based compensation.

MTP2025

Contribute to
global environment

through sophisticationof infrastructure

Accumulate
intellectual capitalthrough bold actions andgrowth of diverse
professionals

through collaboration
with business partners

Monitoring by Board of Directors(quarterly)

Growth Story for 2030

Management Basis(ESG)

Formulate
Business Plan(annually)

V2030

Co-createan optimal society

through expansion ofdigital social capital

Value Creation
CapitalFormulate
Medium-Term
Formulate long-term vision
Management Plan
(once every 3 or 4 years)

Sustainability GovernanceCo-createa thriving
future society

Value Creation

PDCA cycle
NRI’s Value Co-Creation

NRI's Sustainability Strategy (Materiality)

Sustainability Management Process

Message from the CEO

Sustainability Strategy (Materiality)

33

V2030V2030 Consideration Process and Materiality Identification Process

FY March 2023

Environmental Analysis /V2030 Outline

MVV Dialogue / V2030

Value creation

Surveys and research for discerning the future(foundation for formulating a vision)
STEP

Requirements of ESG
Expectations andevaluation organizations requirements for industry

Vision andmanagement plan

NRI Group’s
response level

Important elements in NRI’s businesscharacteristics and growth strategy

Incorporation of
three social values
specified through past to
ongoing discussion
including executives
STEP

2

Identification ofMateriality

Link with V2030
growth story

Priotizing and mapping
issues based on two
axes: stakeholder expectations and requirements(environmental andsocial impact), andimpact on NRI (financial
perspective)

MTP2025
Value Creation

Impact on NRI(financial perspective)

STEP

STEP

Materiality: Value Creation
Value Creation

Materiality: Capital and Management Basis
Value Creation CapitalManagement Basis (ESG)

Reflection in
Business Plan

Reflect the finalized materiality in midterm plans and business plansof each business segment

Resolution of theBoard of Directors

Resolved by the Board of Directors as the sustainability strategy (March 2023)
Consideration of the necessity of revision by the Sustainability Committee once a year

Management Basis (ESG)

4

Finalization ofMateriality

Materiality

3

Identifying materiality through the following steps:
1. Discussions with outside directors and experts 2. Internal management debates

Shingo Konomoto greeting

STEP

5

34

Nomura Research InstituteCorporate Information / Data

Dialogue for value co-creation activities

Sonoko Kitagawa as a mentor

Integrated Report 2023

Value Creation Capital

MVV Dialogue and Value Co-Creation Activities
In the process of considering V2030, NRI’s diverse human resources shared their thoughts based on MVV (Mission & Values,
V2030) through MVV dialogue and value co-creation activities. This initiative is a bottom-up reconsideration of MVV, which had
been considered top-down by management. It is an extremely important activity for fostering a sense of unity and improving
organizational strength.
Furthermore, as part of value co-creation activities, in June 2022, we started activities with the theme of “Creating a scenario which would disrupt NRI in realizing V2030, and determining how to prevent such a scenario.” In these activities, a teamconsisting of value co-creation leaders selected from various departments engaged in repeated dialogue to delve deeper into
actions that are essential for the co-creation of social value with various stakeholders.

International standards
Guidelines

Growth Story for 2030

Environmental Analysis Aggregating Knowledge from Inside and Outside NRI
We utilize the knowledge of the consulting segment to identify issues that should be addressed over the medium to long-term.
In the process of building a long-term vision, we report the details of consideration to directors (three reports submitted in FY
March 2022). We then receive advice mainly on the important themes of solving social issues, human resources and organizations, and globalization. In addition, we held debriefing sessions for independent officers in order to focus on listening to theopinions of independent officers.

1

Social issues and needs

V2030

Surveys and Research for Discerning the Future
As activities for discerning the future, our president takes the initiative in disseminating information (NRI Dream Up the Future
Forum, book publishing, etc.), while consultants and system engineers also utilize their expertise to disseminate information.
NRI is also deepening its consideration of integrating social value and economic value. For example, at internally held study
sessions for young executives, we invite outside lecturers in order to input diverse ways of thinking.

Understanding
and Organizing
Society’s
Expectations andRequirements

Capital and management base

NRI’s Value Co-Creation

FY March 2022

Based on international standards and guidelines, requests from ESG evaluation agencies, consistency with our corporate philosophy and growth strategies, opinions of outside directors and experts, etc., NRI’s materiality (important issue) was identified
in 2010 from the perspectives of management and outside stakeholders, and then revised in 2017.
Afterwards, in consideration of changes in NRI’s business environment and the social environment, as well as the conceptof double materiality, we re-identified in 2023 a materiality accounting for not only the impact on the Company (financial
aspects), but also the expectations and requirements of stakeholders (environmental and social impacts). We then incorporated that materiality into V2030.

Stakeholder expectations andrequirements(environmental and social impact)

V2030 Consideration Process

Materiality Identification Process
Message from the CEO

In order to crystallize V2030 and the materiality into content unique to NRI, we conducted a detailed consideration and identification process with involvement from many executives and employees.

35

MTP2025

Environmental Recognition Toward FY2025

Medium-Term Management Plan 2023–2025 (MTP2025)

Volatile social transformations andresulting impact on companies• Companies will explore new areas of business spanning multiple industry types•C onvergence of management and technology will
advance, and usage of technology will separate winners
from losers* Green Transformation• Industry shakeouts and entries into other sectors will
accelerate, and competition will be decided by anticipationof the business climate and maneuverability•L eading companies will accelerate their conversions todigital-first (XaaS, digital twins, etc.)•D X demand is spilling over from industry leaders to the lower
levels. IT investment remains strong in the DX space

Global
We aim for stable growth in Australia and the establishment of a business foundation in North America in order to operatebusinesses in the three key regions of Japan, Australia, and North America.

MTP2025

Fluidization of industrial structure

Strengthen DX (DX2.0/3.0)
We will accelerate the co-creation of digital social capital by strengthening further our think-tank function, which we havemaintained since the establishment of the former Nomura Research Institute. Additionally, we will take on the challenge ofbuilding digital social capital in new areas such as My Number-related services and Green Transformation (GX) initiatives.

Growth Story for 2030

• Companies’ performances are being squeezed in 2023
due to inflation and interest rate trends, but will gradually recoverfrom 2024 onward• Issues related to macroeconomic factors such as
geopolitical risk, resource prices, and exchange rate risk
must be addressed•G X*-related investments are expanding as the impact ofclimate change worsens. Financial investments are also
experiencing an ESG Shift

Core BusinessWe aim to expand our client base further by becoming a long-term strategic partner to our clients. Simultaneously, we strive
for the expansion of IP-based business models, such as the business platforms in finance (BPF) and digital IP (DiPcore), theevolution of IT infrastructure services including cybersecurity, and comprehensive production innovation to enhance competitiveness and add value.

V2030• Solving social issues will be companies’ most important challenge. Shifting away from “winner-take-all” andtoward collaborative frameworks• Increasingly chaotic international political trends
will drive complexity

Changes in business environment between now and 2025

NRI’s Value Co-Creation

Pillars of Growth Strategy

Business Environment Recognition

Complex social issues

In the Medium-Term Management Plan 2023–2025 (hereinafter, MTP2025), four pillars are outlined as part of thegrowth strategy: “Core Business,” “DX Evolution (DX2.0/3.0),” “Global,” and “Management.” As a target
for the fiscal year ending March 2026, the plan sets goals of ¥810 billion in revenue (with an average annual
growth rate of 5.4% from the fiscal year ended March 2023 to the fiscal year ended March 2026), ¥145 billion
in operating profit (9.0% growth rate), and an operating margin of 17.9%.

Message from the CEO

We view the outlook of the business environment during the three years of the Medium-Term Management Plan 2023–2025
as follows.
We recognize the potential for risks to materialize, such as geopolitical risks and uncertainty in financial policies. On theother hand, demand for digital transformation (DX) remains robust in the pursuit of improved productivity, given the backdropof labor shortages and other factors. The significance of DX for business model transformation aimed at improving capital efficiency will continue to increase. Moreover, we anticipate that DX will evolve further, including the utilization of AI in core systems and the modernization of legacy systems, among other aspects.

Management
To solidify the business foundation for creating new value, we will accelerate growth through the expansion of human capitaland extend sustainability efforts, including environmental initiatives, to our supply chain.

Technological progress andcommoditization• Be a long-term strategic partner for our clients, and further expand our client base
• Expand IP based business model• Improve productivity through radical production innovations

Co-create “Digital Social Capital” and new business
Strengthen DX(DX2.0/3.0)• Competition for IT personnel is intensifying. The ability tosecure personnel directly affects a company’s ability to grow•D iversity and engagement are important for each individual
to be creative• Strengthen think-tank functions to accelerate DX2.0/3.0 businesses• Develop pipeline for “Digital Social Capital” creation (My Number-related services, NRI-CTS*, etc.)* Carbon tracing system

Establish business framework based on three regional pillars
GlobalManagement Basis (ESG)• Economic disparities and other polarization anddiversification of groups will advance•U tilization of diverse human resources and talents will be
prerequisite to a company’s survival

Core Business

Materiality

Diversified values and working styles

Increase competitiveness and value addition• Grow stably in Australia and establish business infrastructure in North America• Expand our global governance system and bolster our business deployment and administrative functions

Solidify management platform

36

Nomura Research InstituteCorporate Information / DataManagement• Accelerate growth through increased hiring and greater investments in human capitalsuch as normalizing D&I• Bolster our sustainability management. Expand environmental efforts to our supply chain

Integrated Report 2023

Value Creation Capital• Latest technologies keep emerging(cloud, AI, next-gencommunication, etc.)•C ommoditization of technology proceeds at thesame time• Major global IT companies are shifting to high-functionality cloud.
Utilization of AI from a business perspective will be
increasingly important•M odernization of corporate legacy IT assets is long
overdue. Renewal is spreading to mission-critical systems•N eeds for cybersecurity will grow as digital risk becomes
more sophisticated and complex

Value Creation

MTP2025: Pillars of Growth Strategy

37

MTP2025

Core

Strengthen DX

GlobalManagement

Core

Strengthen DX

GlobalManagement

We anticipate progress in the fusion of management and technology within the business environment surrounding our Core
Business. DX is expected to become more complex, and there will be a noticeable emergence of large-scale DX demand integrating business processes, operations, and core systems. Our profound understanding of our clients’ business and IT willdefine our competitiveness. For NRI, this presents an opportunity to further leverage our strengths in Con-Solutions.

In the areas of DX2.0, which supports business model transformation, and DX3.0, which addresses social issues and supports paradigm shifts, we will work toward creating new businesses. In the context of DX2.0/3.0, it becomes increasingly
important to actively engage in creation of mechanisms that shape the market, taking into consideration not only the needs ofindividual clients but also the challenges of entire industries and society. To promote such “enabler functions,” NRI will establish new organizations and improve the next-generation think-tank function over the past by combining them with the Center
for Strategic Management & Innovation, focused on social recommendations and information dissemination. This will enable
us to create new markets for platform-based businesses that utilize IT solutions.

• Total support from setting agendas to execution support forincreasingly complex DX geared toward digital-first, including business model and organizational reforms, setting KPIs and
PDCA through data, etc.
• Expand social issue-related consulting projects, including for the
public sector, while incorporating new topics such as GX•U nbundle business platforms and deploy cross-industry services. Also expand our services lineup to address needs•E xpand modernization support, including client needs to breakaway from legacy systems, cloud migrations, etc.
•A
 ddress industry reorganizations such as securities + local
banks, entry into other industries, etc.

Industrial IT Solutions (more than ¥40 billion)

IT Platform Services (more than ¥5 billion)•D igital risk is getting more advanced and sophisticated. Bolster
efforts to address growing cybersecurity-related needs
amid requirements such as legal system compliance•O ffer more cloud platform services, including new services
that leverage the advantages of both on-premises and cloud

Evolution of Core Business (Comprehensive Production Innovation)

IT Platform Provision

PF development and operation
through IT solutions

Digital Twin × Real PFIntelligence Function

Code* Creation Function

Deriving social issues through information
dissemination

Rules, customs, and value transformation• Build momentum through social, policy,
and industry-related communications

Promoting DX throughconsulting• Build relationships with administratorsand create markets that respond to social
issuesThrough Center for Strategic
Management & Innovation* Code: Rules, customs, and values

Enabler Function

Value Creation

We will embark on comprehensive innovation of production through the modernization of existing IT assets, including financial
business platforms such as THE STAR, the revitalization of development frameworks contributing to standardization and efficiency in system development, and the integration of AI into the development process. Additionally, we are planning a total
investment of approximately ¥20 billion over the three years of MTP2025 to improve productivity.

Front Player Transformation
Promote DX involving multiple industries

MTP2025

The number in parentheses shows revenue growth from FY Mar. 2023 to FY Mar. 2026.

Society /Customers

Growth Story for 2030

• Capture demand for shifts to DX business such as
e-commerce, which is spreading to second-tier groups ofcompanies• Handle business process reforms utilizing AI throughCon-Solution, and establish deeper connections with clients• Handle large-scale overhauls of core systems including
accounting, HR, call centers, and CRM that accompany
front-end DX

Overview of DX2.0/3.0 Businesses

Con-Solution(existing strengths)

Financial IT Solutions (more than ¥40 billion)

V2030

Consulting (more than ¥5 billion)

Next-gen Think Tank(enhanced functions)

MTP2025: Measures by Segment (Examples)

NRI’s Value Co-Creation

Creation of DX2.0/3.0 Businesses through a Next-Generation Think-Tank Function
Message from the CEO

Deepening of Core Business (Expansion of the Client Base in Japan)

Opportunity Discovery & Ecosystem Building• Create an ecosystem of multidimensional
players for the social implementation ofdigital social capital

Strategic creation andcommercialization of DX2.0/3.0

Through new DX3.0
organization

MTP2025: Production Innovation Measures (Examples)

Nomura Research Institute

STEP 1

STEP 2

STEP 3AI testing support

Generate AI programs
Automate AI testing

Deploy NRI version
AI engines

Utilize AI to reduce work-hours
in testing processes

Reduce work-hours in testingand development processes

Expand application ofwork-hour reductions intesting processes anddevelopment processes

Corporate Information / Data

38

✔ Version upgrades for development frameworks• Build embedded development frameworks such as low-code, no-code, and automation• Expand sharing of in-house expertise and establish mechanisms for sharing common modules

Management Basis (ESG)

Establish
development
processes thatutilize AI

Materiality

Development
framework✔ Optimize system sizes, including functional integration of financial business platforms✔ Modernize the industrial field, including infrastructure overhauls and cloud migration

Value Creation Capital

Modernize existing
IT assets

Integrated Report 2023

39

MTP2025

Core

Strengthen DX

GlobalManagement

North America: Establishing the Business Infrastructure with Core BTS at the Center

Over a period of seven years from the fiscal year ended March 2017 to the fiscal year ended March 2023, we expanded ourbusiness areas and regions mainly through M&A, and established a solid business foundation. In MTP2025, we aim for stable
growth and enhanced profitability while pursuing qualitative growth, such as creating synergies among Japan, the UnitedStates, and Australia (the three key regions).

NRI’s Value Co-Creation
V2030

M&A in the U.S.

Planit
The testing specialist Planit provides services ranging from consulting related to maintaining and improving the quality of IT
systems to support for executing test processes and the provision of automated tools for testing. We work closely with thesubsidiary acquired in 2022 to achieve stable growth.

2019.22020.82021.22021.62021.12Growth Story for 2030

NRI Australia (formerly ASG)
ASG, which was acquired in December 2016, underwent a name change to NRI Australia in February 2023. Through a seriesof mergers and acquisitions from 2017 to 2022, ASG expanded its capabilities from downstream processes (managed services) to upstream processes (advisory & solutions), strengthened functions such as DX consulting and application development, and achieved geographic expansion. It now offers a comprehensive lineup of services characteristic of NRI, covering
everything from consulting to development and operations. This name change aims to enhance the permeation of the NRI
brand in the Australian IT market, and unify various operating companies in Australia under the NRI brand. This will facilitatestronger business collaboration and integration, fostering steady growth as a cornerstone of NRI’s global business. NRIAustralia has also signed a sponsorship agreement as the principal partner of the New South Wales Waratahs, a popular
rugby team in Australia (contract period: September 2022 to August 2025). Through this sponsorship agreement, NRI aims
to enhance its visibility not only in Australia but also in the wider Oceania region.

Core BTS, which was made a subsidiary in December 2021, is a company with an inherited network structure. Between 2019and 2021, we expanded our business areas through mergers and acquisitions, incorporating companies with capabilities incloud consulting, DX application development, and more.
In the medium to long term, we aim to offer a full lineup of solutions for digital transformation in cloud and network businesses, centered around Core BTS. Specifically, we aspire to provide digital engineering business in the North American IT
services market, covering consulting, system development, implementation, and operation, especially in specialized areas likecloud infrastructure, application development, and security that require expertise beyond in-house capabilities.
In the fiscal year ended March 2023, we undertook initiatives to accelerate the integration of our developing sales structure,including the appointment of a chief revenue officer (CRO), changes in district sales managers, DX consulting sales training,
and a revamping of sales support organizations such as marketing. We are also exploring collaboration among NRI and overseas Group subsidiaries to enhance sales and delivery capabilities to Japanese companies, as part of our measures for
medium to long-term growth.
With the formulation of Core BTS’s “Vision” (implementation of DX on a hybrid cloud), our direction has become clearer.
We are striving for growth toward achieving this vision.

Message from the CEO

Australia: From the Expansion Phase Driven by M&A to Stable Growth andIncreased Profitability

MTP2025

VisionNRI Australia Holdings
NRI Australia Holdings, which oversees operations in Australia, is dedicated to increasing profitability. This includes efforts
toward ERP integration and shared services for indirect operations within the Group, aimed at enhancing productivity.

Core BTS is a digitaltransformation consulting firmwith a focus on creating andmanaging workloads in hybrid
cloud environments.

Cloud consulting

Cloud consulting,DX application
development

Acquiredby NRI
Value Creation

AUSIEXAUSIEX underwent cost structure reforms in 2022 to address sluggishness in the financial market and other factors.
Additionally, we are moving forward in our efforts to transfer I-STAR / GV, the engine of NRI’s global solution for securities
back-office operations, to AUSIEX’s system.
This initiative is aimed at expanding our service lineup from wealth management to securities back-office operations.

Cloud consulting,
Data analytics

Materiality

2017.9Established
NRI Australia Holdings
Pty Ltd

2017.9SMS

2019.11
1ICT

2020.3
Group102021.11PRAGMA

2022.3velradaManagement Basis (ESG)

2016.12Acquired ASG

NRI Australia(formerly ASG)

Launched Australia business2022.11
Shift Left (UK)Corporate Information / Data

2021.5
Planit2022.7
Qual IT (NZ)

2021.5AUSIEX

40

Nomura Research Institute

Value Creation CapitalDX application development

M&A in Australia

Integrated Report 2023

41

MTP2025

Core

Strengthen DX

GlobalManagement

To achieve NRI’s growth story, we are actively expanding our workforce through both new graduate hires and mid-career hires.
Additionally, we aim to accelerate the growth cycle of human capital by considering employees’ aspirations and experiences
and maximizing individual capabilities.
We will continue our efforts in diversity and inclusion, building an engaged organization where diverse professionals can thrive.

From the fiscal year ended in March 2023 to the fiscal year ending March 2026, we are targeting ¥810 billion in revenue, witha compound annual growth rate (CAGR) of 5.4%, an operating profit of ¥145 billion with a CAGR of 9.0%, and an operating
margin of 17.9%. Additionally, we aim for overseas revenue of ¥150 billion for the fiscal year ending March 2026. All of thesenumerical targets are based on assumptions of organic growth that does not include M&A.
Of the three-year increase in operating profit aimed at reaching the target of ¥145 billion, approximately one-half is
expected to come from increased revenue in domestic operations, about one-fourth from improved profit margins due toenhanced productivity in domestic operations, and the remaining one-fourth from improvements in growth and profitability inglobal operations.

MTP2025: Human Capital Measures (Examples)
Bolster new
graduate andmid-career hiring• Strengthen hiring of recent graduates who are
unemployed• Take in more student interns• Expand hiring channels such as alumni and referrals(NRI Payroll)2022 Results

New graduate
hires
Mid-career
hires

399
335

2025 Plan

Approximately
500
Approximately
370

MTP2025 in Figures(billion yen)
145.0

Increase growth
opportunities

CAGR +9.0%
117.0
111.8
106.2

(Operating Margin)

17.4%
692.1

Revenue

611.6(Overseas Revenue)

76.5

16.3%

810.0

720.0

150.0

16.2%

123.2

CAGR +5.4%

130.0

Growth Story for 2030

Operating Profit

V2030

Diversity andinclusion

FY Mar. 2026

17.9%

• Provide growth opportunities and a sense of growth through talent management•V isualize capabilities in areas such as DX, business creation, and global,
while systematically providing opportunities

MTP2025•E xpand opportunities for women’s participation and advancement through promotions to management roles, etc.
• Improve the engagement of the Group as a whole		 • Bring together diverse individuals with MVV as the centerpiece through MVV Dialogues*, attended by all
employees		 • Bolster onboarding of mid-career hire employees

FY Mar. 2023

NRI’s Value Co-Creation

Medium-Term Management Plan 2023-2025 in Figures
Message from the CEO

Human Capital Enrichment

660.0* MVV: Mission & Values, V2030* Details regarding the expansion of human capital can be found starting on page 56.

(Domestic Revenue)

535.1

568.9

590.0

Expanding ESG Initiatives Globally in the Group and into the Supply Chain

2022.32025.3

Value Creation

2024.32026.3FY March 2023
(Results)

FY March 2024
(Forecasts)

FY March 2026
(Targets)

Revenue

692.1

720.0

810.0

(billion yen)

Operating Profit

111.8

117.0

145.0

(billion yen)

Operating Margin

16.2%

16.3%

17.9%

Materiality

2023.3

MTP2025: ESG Measures (Examples)

Strategicrisk control throughEnvironmental contributions

Fulfill social responsibilities

More advanced governanceDecarbonize throughout entire
supply chains

Improve the well-being ofstakeholders

Accelerate efforts in theGroup and globally• Efforts to achieve net-zero greenhouse gas emissions• Renewable energy usage
expansion• TCFD-based climate change
information disclosures and natural
capital and biodiversity information
disclosures• “Work-in-life” (balance with personallife) and health and productivity
management• Expand the NRI Group Business
Partner Code of Conduct• Implement human rights due diligence; understand and address
trends in AI ethics• More information disclosures befitting of the Group global NRI brand• Governance system forsustainability• Compensation design for directors and Audit & Supervisory
Board members that accelerates
sustainability management

Note: The planned figures for FY March 2024 are as of July 27, 2023.

Corporate Information / Data

Stronger relationships withstakeholders toManagement Basis (ESG)

Collaborate withbusiness partners for* Details regarding our business foundation (ESG) can be found starting on page 78.

42

Nomura Research Institute

Value Creation Capital

To extend decarbonization efforts throughout the entire supply chain, we have set a new goal to achieve net-zero greenhousegas emissions (Scope 1 + Scope 2 + Scope 3) for NRI by the fiscal year ending March 2051. Additionally, we are targeting
net-zero greenhouse gas emissions for Scope 1 + Scope 2 by the fiscal year ending March 2031.
Regarding the fulfillment of social responsibilities, we are working toward initiatives across the entire supply chain, including
the expansion of the NRI Group Business Partner Code of Conduct’s application scope.
In terms of governance, we are enhancing the structure and initiatives in response to the growing number of Group companies and global geographic expansion. We are also strengthening sustainability governance by expanding committees that
promote foundational activities from an ESG perspective.

Integrated Report 2023

43

Growth Story for 2030

Interview with the CFO

Yoshihiko Sunaga
CFO
Senior Corporate Managing Director

Companies
incorporated
in Japan25%

35%Companies
incorporated inother countries

57%

53%

Individuals
and othershareholders

FY ended
March 2022

FY ended
March 2023

33%

67%

It was a difficult environment. What do you think
about the results of each type of measure?
FY ended
March 2019
Note: Excludes treasury stock

Ratings Information

Stock Price Trends(times)3

Stock offering
announcement date

NRI
TOPIX

2

March 31,2019

March 31,
2023

Rating and Investment
Information, Inc. (R&I)

AA(Stable)AA(Stable)

S&P Global Ratings Japan Inc.

A
(Stable)A(Stable)1

March 31, 2019
Share price: ¥1,677*
0

19.3

20.3

21.3

March 31, 2023
Share price: ¥3,065
22.3

23.3

* Long-term rating (forecast)* The stock price at the end of March 2019 is the adjusted stock price. In the graphabove, the closing price at the end of March 2019 has been set to 1.
Source: Compiled by NRI

Integrated Report 2023

Corporate Information / Data

Name of rating organization

Management Basis (ESG)

I think it went well. In December 2022, we conducted fundraising for a 3-year total of ¥65 billion for 5-year, 7-year, and10-year bonds. Ultimately, we achieved significantly higher
demand than anticipated. This marked the largest bondissuance amount ever for the Company. In particular, for the
long-term 7-year and 10-year bonds, we were able to reachfavorable terms through meticulous dialogue with investors.
Coincidentally, the revision of the yield curve control (YCC)
policy was announced at a meeting of the Bank of Japan
Policy Board shortly after the determination of conditions.
This turned out to be optimal timing for the bond issuance.
The funds raised were allocated toward the repayment ofexisting foreign currency borrowings, leading to a reduction
in financial costs. To mitigate the impact of exchange rate
fluctuations resulting from the shift to yen-denominated borrowing, we executed an appropriate hedging strategy whileconsidering balance sheet variations.

Materiality

12%

10%

Value Creation Capital

Nomura Research Institute

8%

Value Creation

44

Changes in Shareholder Composition Ratio

MTP2025

The fiscal year ended in March 2023 saw the COVID-19
pandemic hit its peak, and social and economic activities
gradually returned to normal. Turning our attention to theglobal economy, the excessive liquidity resulting from prolonged monetary easing policies by central banks worldwide, coupled with supply chain disruptions due to the
COVID-19 outbreak, led to noticeable inflationary tendencies. This was further compounded by rising commodity
prices due to the conflict in Ukraine, prompting central
banks in various countries to collectively tighten their monetary policies. As interest rates in each country surged
abruptly, the gap in interest rates against the Japanese yen
widened, leading to significant depreciation of the yen. I vividly remember the anticipation of a revision in the yield curve
control (YCC) policy in the middle of the fiscal year due tothe upcoming change in leadership at the Bank of Japan,
and that this speculation caused government bond yields
and foreign exchange volatility to rise.
In that environment, we were tasked with navigating
through challenging circumstances. Our foreign currency
borrowing increased significantly in recent years, due to ouractive M&A efforts in Australia and North America, leading
to a sudden surge in financial costs that became a management issue. To address this challenge, our initial choice
was to transition from foreign currency borrowing toyen-denominated borrowing. In addition, regarding

yen-denominated borrowing, we anticipated a rise in longterm interest rates, and we decided to issue longer-termbonds before the end of 2022. However, considering themarket conditions, where speculation about rising long-term
interest rates had already begun and demand for long-termbonds was decreasing, there was an element of uncertainty
about the success of these decisions.

The Medium-Term Management Plan 2023-2025 (MTP2025)
that was announced in April 2023 is positioned as the firsthalf of the NRI Group Vision 2030 (V2030), which wasannounced at the same time. NRI envisions the V2030
growth story as having three pillars: Core Business, DX, andglobal. In the Core Business, alongside “deepening andexpansion” that enhances value creation with clients throughCon-Solutions, NRI will achieve “evolution” by expanding its
business platform and achieving overwhelming competitiveness and high added value through comprehensive innovation in production. In the DX area, NRI will take on thechallenge of DX3.0, which impacts society beyond corporations and industries, creating digital social capital. In addition, on the global front, NRI will expand into the vast andhighly growth-oriented North American market in addition to
Asia and Australia, establishing a business foundation for
NRI’s distinctive professional services.
The financial strategy must also align with this roadmap.
By 2030, NRI aims for sales exceeding ¥1 trillion (including
overseas sales of over ¥250 billion) and an operating margin

Growth Story for 2030

Please give us your overall assessment of thefinancial activities of the previous fiscal year.

Please explain the concept of the financial policy
for the Medium-Term Management Plan
2023–2025.
V2030

This event was not originally part of our financial strategy. It
was an event unrelated to the macroeconomic environment
and was an issue that required careful and individualized
handling.
Due to the high total number of target shares, there wereconcerns about the potential impact on our stock pricecaused by the sale. Acquisition of treasury stock through debt
financing needed to be approached from the perspective of
the Company’s credit (financial soundness). After multiple discussions with internal and external stakeholders regarding theapproach, we resolved the issue through the method of a“stock offering.” We conducted roadshows for both domestic
and international investors, involving the entire Company,
including the CEO. Eventually, it culminated in a public offering(PO) of ¥120 billion, the highest ever for the Company. Thisapproach minimized risks impacting stock prices, maintained
financial soundness, and improved market liquidity throughdiversified ownership, making it the optimal scheme for both
the Company and our stakeholders.

NRI’s Value Co-Creation

Leading the way withflexible and proactive
financial activities aimed
at achieving the V2030
growth story

Our financial activities, driven by our financial strategy
involving significant bond issuance and stock offering, were
well-regarded, leading to several awards, including the top
prize “Issuer of the Year” in the comprehensive category at
the DealWatch Awards 2022.
The Company’s shareholder composition and financial
structure have changed significantly since the fiscal year
ended in March 2019, when the previous Medium-Term
Management Plan was formulated. This was also the casewith the recent PO. Looking ahead, I believe it is necessary
to continue implementing financial strategies that consider
the interests of all stakeholders.

Message from the CEO

At the same time, there was an event called a“stock offering” that originated from a request forthe sale of NRI shares by a major shareholder.

45

Growth Story for 2030

stock acquisition or accounting methods. As indicated by
the disclosed target of 17.9% for the final year’s operating
margin, our fundamental policy is to maintain and improve
ROE in a healthy manner as the business grows.

Please explain the reason for emphasizing ROE
as a performance indicator in the financial policyof MTP2025.

What are your thoughts on the future cash
­allocation policy?

ROE has been an important performance indicator that theCompany has emphasized in the past. It is the most widely
accepted measure of capital efficiency globally. Its ease ofcomparison with other performance indicators and othercompanies is one of the reasons for its adoption. While ROE
is an important performance indicator, it is not the soleabsolute measure.
We do not intend to achieve the ROE target of 20% ormore for MTP2025 by adjusting capital through treasury

We will lead the achievement of NRI’s management strategy
and growth story aimed at NRI’s dramatic growth and transformation from the perspective of finance. Looking globally,
there are expected to be rapid changes in future prospects
due to geopolitical risks and shifts in various countries’ financial policies. Specifically for that reason, we will implement
flexible and agile financial management while maintaining thefinancial policy we have established this time as a significant
pillar. We are committed to continuing to work toward gaining
the understanding and support of all stakeholders.

Growth Story for 2030

Trends in Annual Dividends Per Share, Basic Earnings Per Share, and Dividend Payout Ratio(yen)(%)
150

MTP2025First, we will maintain a level of cash for operating working
capital equivalent to about two months of sales. As for the
cash allocation policy, as demonstrated by the results of theMedium-Term Management Plan (2019-2022) period, theallocation was made considering the balance of “maintaining existing business,” “investing in growth,” and “returning
value to shareholders.” As mentioned earlier, MTP2025 will
be a “sowing period” for growth toward V2030. Therefore,
while occasionally utilizing external sourcing, the policy is toactively allocate funds for responding to the platformizationof DX demands, creating DX 3.0 businesses, and making
new investments to strengthen the North American business foundation.

Finally, please express your Goals for V2030.

V2030

The period until MTP2025 is literally a “sowing period” forachieving significant growth and transformation. During thisperiod, the emphasis is on securing a foundation for growth.
It is essential to invest in maintaining and expanding existing
services, creating new businesses through DX 2.0/3.0, andimproving productivity. In addition, external growth will
require the acquisition of overseas operating companies.
The latter depends on market conditions and timing, so it
won’t be executed forcefully. However, we are already considering financial options that will enable us to easily take onchallenges when suitable growth opportunities arise.
Regarding this “sowing period,” we anticipate a temporary
expansion of the balance sheet through external sourcing.
Therefore, our financial discipline will be slightly relaxed toalign with our management strategy. We have set the upper

As a result, the cash allocation policy for the period until
MTP2025 is expected to prioritize “investing in growth.”
However, considering the longer span until V2030, we
believe that cash allocation for “maintaining existing business,” “investing in growth,” and “returning value to shareholders” will come into balance.

NRI’s Value Co-Creation

Please explain in detail where the focus wasplaced in MTP2025.

limit of the net D/E ratio at 0.5 times and the upper limit of
the net interest-bearing debt to EBITDA ratio at 1.3 times.
In terms of shareholder returns, the policy is not to chaserapid business expansion in the short term, but to maintainthe current level of the ROE target, which is 20% or higher.
On the other hand, even during the “sowing period,” weconsider it important to appropriately return value to shareholders at a reasonable level. Therefore, in MTP2025, wehave decided to gradually increase the target dividend
payout ratio from the current level to 40%.

Message from the CEOof 20% or more. Accordingly, the Finance Division is considering a well-balanced approach to investment, procurement,
and returns to support this goal.
If we divide the period until 2030 into basic categories, thefirst half of MTP2025 is considered to be a “sowing period for
growth,” while the subsequent period until 2030 is seen as a“period to reap the fruits of growth.” Distinctive strategies are
employed for each half to achieve a balanced approach.

60

41.5
100

41.3

40.0
33.1

33.2

34.9

40

50

20

Dividend payout ratio will increase to 40% by the end of the fiscal year
ending March 2026

Returns toshareholders

20% or more

Working capital on
hand

Equivalent to about two months of sales

Financial discipline

Cap on net D/E ratio: 0.5 times
Net interest-bearing debt within 1.3 times EBITDA

Cash Allocation Policy for MTP2025
Business investments (average of approximately ¥50 billion per year)		 • Aggressive investment in maintaining and expanding existing services, creating
DX 2.0/3.0 businesses and productivity improvement.

Maintenanceof existing
businesses
36%

Growth investment
29%* Excludes treasury stock TOB in the fiscal year ended
March 2020

Outside growth investment		 • External growth will continue to be considered primarily as a means of expanding
in the North American region and expanding capabilities.
		 • The performance targets for MTP2025 do not incorporate external growth andwill be implemented opportunistically.
Returns to shareholders		 • Increase the dividend payout ratio from 35% to 40% by the end of the fiscal year
ending March 2026.
		 • R OE is 20% or higher. Treasury stock acquisition will be carried out flexibly,
taking into account factors such as stock price levels.

22.3

23.3

0

26.3

Annual Dividends Per Share (left axis)
Basic Earnings Per Share (left axis)
Dividend Payout Ratio (right axis)
Notes: 1. The fiscal year ended March 2019 is based on Japanese standards.
					 2. NRI implemented a 1:3 common stock split on July 1, 2019. Basic earnings per share, diluted earnings per share, and net assets per share are calculated by deeming stock splits
to have occurred respectively at the beginning of FY March 2019. Dividends per share for FY March 2019 are based on the number of shares prior to the stock split.

Balance Sheet Management Policy
AssetsLiabilities

Cash and cash equivalents

Interest-bearing debt (bonds, borrowings)

 ecuring stable working capital on hand (equivalent toS
about two months of sales)In response to temporary working capital shortages or similar situations,
we will proactively raise short-term funds as needed urplus funds will be utilized for improving financial
S
statusFor funding requirements related to new business investments, we will
utilize external funding as necessary

Investment securities and business andnon-business assets

Policy for managing long-term interest-bearing debt*
Cap on net D/E ratio: 0.5 times

 ross-shareholdings will be held within the confines ofCraising corporate value
 or business assets, the decision to invest or exit willF
be based on hurdle rates based on capital costs,
operating profit margin, and other factors
Office reorganization linked to work-style reform

Maintain net interest-bearing debt within 1.3 x EBITDA

Liabilities
Total equity

AssetsEquityTotalequityConsciously maintain capital efficiency comparable to that of Europe andthe United States, which balance growth and return
Consciously observe the impact of non-financial information onshare pricePayout ratio: 40% (fiscal year ended March 2026)
Do not hold treasury shares that are not expected to serve any purpose
Continue to consider acquisition and retirement of treasury stock

Corporate Information / Data

Returns toshareholders
36%

21.3

Management Basis (ESG)

Cash Allocation Results
Medium-Term Management Plan
(2019–2022) Period

20.3

Materiality

ROE

19.3

* Interest-bearing debt is the portion of debt recorded in the consolidated financial statements that corresponds to corporate bonds and borrowings.

46

Nomura Research InstituteIntegrated Report 2023

Value Creation Capital

Financial Policy(A View of 2025)

0

Value Creation

MTP2025 Financial Policy

47

Materiality

Message from the Head of Corporate Headquarters
V2030: Sustainability Strategy (Materiality)

Senior Executive Managing Director,
Member of the Board, Representative Director
Supervising of Corporate Headquarters

Management Basis (ESG)
Corporate Information / Data

Integrated Report 2023

Materiality

In order to achieve both the growth story set out in V2030
and the growth of individual employees, each and every
employee must empathize with our corporate philosophy
and take personal responsibility for working toward our
vision for 2030. To connect the Company’s vision andemployee initiatives, NRI has continued to hold dialogue(MVV dialogue) on the theme of Mission & Values, Vision(MVV). In fact, a total of 3,000 people participated in the
MVV dialogue prior to the announcement of V2030, andmany discussions were held. One example of the candid
exchange of opinions was a young employee stating that
“I’m having trouble understanding how the contents of
V2030 relate to my work.” I feel that this kind of dialogue
made it possible to align the perspectives of management
and employees. This dialogue between management andemployees will serve as more than an initiative for formulating a vision; it will continue as a process of converting each
person’s thoughts into organizational actions for determining how we should shape the NRI Group toward the realization of V2030.
This close connection between management andemployees will be a new strength of NRI as we take on thechallenge of changing the world and push forward toward
the realization of our vision for 2030.

Value Creation Capital

A solid management foundation is a prerequisite for continuing to take on new challenges. As part of sustainability
management, NRI has been working to contribute to theglobal environment, fulfill its social responsibilities, andevolve governance. In V2030, we have once again defined
themes for medium- to long-term growth.

MVV for Connecting Management and Worksites
Value Creation

Nomura Research InstituteStrengthening Management Basis (ESG)

MTP202548

For NRI, human capital and intellectual capital are formsof accumulation-type capital whose value can be increasedby accumulating experience and knowledge. We will continue to refine our human capital and intellectual capital as asource of value that transforms society.

Growth Story for 2030

One characteristic of NRI’s human capital is that individuals
are professionals in their respective fields, and each individual
fulfills an active role in their business and operations. We
believe that a company’s ability to create value will be continuously enhanced by operating a system that urges employees
to exercise their individual strengths and encourages theirindividual performance. Therefore, NRI is promoting a humanresources management cycle that maximizes the strengths ofindividual human resources. This cycle begins with the recruitment of diverse and talented human resources, and then provides growth opportunities through challenging assignmentsthat are assigned to project leaders and project managers at
an early stage. In addition, when human resources accomplish their work with responsibility and awareness toward
society, they will feel pride in their own work that leads to personal and organizational growth. NRI will further enhance thestrengths of its human resources by continuing to be an
attractive workplace; for example, we will enable employees
to take on challenges in which they are interested, even whenoutside the framework of their organization.
In order to support employees in taking on challenges, westarted operation of a new human resources system in April
2022. This human resources system is characterized by multiple career paths and a role-based rank system. In the past,
the main path was to promote employees who had accumulated a certain amount of experience to the head of the organization. There was not necessarily a clear career path forfurther pursuit of a specialized field. Due to the diversificationof career paths, it has become possible to highly evaluate
people who have achieved significant results by utilizing theirexpertise in various fields. The role-based rank system promotes the utilization of diverse human resources by appointing human resources who can demonstrate results in theroles needed now, rather than focusing on past performance.
In this way, the system aims to broaden careers by facilitating
involvement in challenging new roles.

Another type of Value Creation Capital is intellectual capital.
The core of intellectual capital is quality control. NRI isstrongly committed to the pursuit of quality management.
We will continue to increase the sophistication of the organizations, systems, and activities that have embodied ourcommitment to quality for many years.
For example, we held the first meeting of the Systems
Development Committee in 1987, and the committee has
met about 3,000 times since then. Internal experts, including individuals certified by NRI, participate in the committee
meetings as reviewers. By examining project risks from multiple perspectives, we are able to realize a high-quality
system. It is extremely difficult to develop and operate complex and large-scale systems. Nevertheless, systems usedas social infrastructure are required to be safe and secure.
The Systems Development Committee is operated as aforum for systematizing and accumulating wisdom andingenuity for the development of high-quality systems thatare important to clients, and then returning that wisdom andingenuity to the development of new systems. NRI’s culture
is to diligently continue efforts that are taken for granted as
essential aspects of business. In a broad sense, we also
consider this culture to be part of intellectual capital.
In addition to technologies accumulated from the past,
we are actively working on new technologies such as generative AI. NRI does not rely solely on AI; rather, we utilize AI
as one option for solving issues. In order to find the bestsolutions to issues, NRI utilizes a myriad of resources, both
inside and outside the Company.

V2030

Source of Value: Human Capital

Source of Value: Intellectual Capital

NRI’s Value Co-Creation

Hidenori Anzai

NRI Group Vision 2030 (“V2030”) established a new basic
sustainability policy (materiality), which was resolved by the
Board of Directors. The eight materialities are structured into
three layers. The second layer is “Value Creation Capital,”
which includes human capital and intellectual capital. Clearlystating that human capital and intellectual capital are thesources of NRI’s value creation will serve as a guideline foraggregating strength as an organization and demonstrating
individual capabilities.
We are always conscious of “Our Values” as defined in our
corporate philosophy. NRI believes that if each and every
employee cherishes “our set of values” and continues to work
diligently on a daily basis, it will lead to the creation of new value.

In terms of contributing to the global environment, wehave actively worked to reduce greenhouse gas emissions.
As a result, we have received high recognition from external
evaluation agencies. In February 2023, we set a total reduction target, including Scope 3. For FY March 2050, we set a
net-zero target, including Scope 3. Moving forward, NRI will
work with its business partners to contribute to the realization of a sustainable future.
When it comes to fulfilling our social responsibilities, initiatives throughout the supply chain are essential for realizing a sustainable future society. We will continue to expand
the NRI Group Business Partner Code of Conduct, whichsummarizes items for which we request cooperation frombusiness partners working with NRI. As of June 2022, we
obtained written consent to the Code of Conduct from 282
companies. By June 2023, we obtained written consent
from 501 companies.
In regard to evolving governance, NRI has worked to
expand corporate governance at domestic and overseas
Group companies, and has established rules and guidelines. In recent years, an increasing number of companies
have become part of the NRI Group through M&A. Moving
forward, we will develop highly effective governance mechanisms for these companies.
We are also working to enhance our governance system
related to sustainability, such as establishing the
Sustainability Committee.

Message from the CEO

We will continue to practicemanagement in which theperformance of eachindividual contributes tosocial change.

Furthermore, in the system for rehiring after mandatory
retirement, we have created Master position offering a highlevel of treatment for employment of human resources who
possess extensive experience and knowledge, and who canbe expected to perform well. By doing so, we are creating
an environment where highly motivated and capable humanresources can continue to perform.

49Materiality

List of Materialities
We will promote sustainability management based on the concept that the creation of a sustainable futuresociety and NRI’s growth strategy are integrated.
We will constantly recognize that achieving the “society we innovate” as set forth in our corporate
philosophy is the reason for NRI’s existence, and we will work on the eight materialities.

FY March 2026 Targets(Measurements startin FY2023)•B usiness model transformation- DX consulting, analytics
 ocial DX (e.g, utilization of My Number, regional revitalization,-Setc.)- D2C*2, financial DX• Policy proposals, advocation, information and knowledge
sharing, etc.

¥128.5 billion•B usiness process transformation- Strategy / operations/system consulting- Value chain DX (CO2 visualization, circular economy platforms
creation)• Shared operation through business PF-STAR, BESTWAY, etc.

• Sustainable social infrastructure• IT infrastructure transformation- Security, cloud services• Stable service operation• Disaster management, disaster recovery support, etc.

Derive value from excellent human capital andintellectual capital to expand digital social capital

Overall investment and spending
on measures for DX 2.0/3.0 thattransforms industries and society

Co-create an
Optimal Society

Effectively utilize resources (such as humanresources, public assets, IP) and recycle natural
resources through the use of business PF anddata analytics

Revenues of business platforms that
help to achieve an optimal society

Co-create a Safe andSecure Society

Provide highly advanced IT infrastructure to protect social infrastructure and data from disasters
and cyber risks

Revenues related to safety and­security to enable a more resilient
society*3¥216.0 billion¥169.8 billion

Employee’s sympathy for social value
creation (domestic group companies)*4

70%

64%

Employee engagement score(NRI payroll)Female opportunity offering rate*5(non-consolidated)

More than
70 continued

71

17%

14.3%

AccumulateIntellectual Capital

Sublimate individual knowledge into organizational strength (such as business model, brand,
and capability)

Contribute to
Global Environment



Value
Creation
Capital

In collaboration with business partners with
Scope 3 vision, create a sustainable environment
globally and conserve natural capital while promoting more sophisticated use of renewableenergies

Greenhouse gas emissions reduction
rate / Renewable energy usage rate
(Base year: 2019)

FY2030 Targets
Scope 1 + 2:
Net Zero*6
Scope 3:
Reduced by 30%
Renewable energy
usage rate:
100%

Fulfill Our Social
Responsibilities

Fulfill social responsibilities in the entire supply
chain, such as good relationships with stakeholders, creating a healthy workplace, and commitment to human rights

Rate of consent to the NRI Group
Business Partner Code of Conduct*7
or possessing own such codes ofconduct*8

Domestic Group90%(Ref. global 80%)

Evolve Governance

Strive for balanced governance, including strategic risk-taking, to control risks with long-term
perspective

Number of cases in which severerisk materializes (reports to regulatory
authorities or incidents of equivalent
severity for which the NRI Group is
responsible)
DJSI World

50

Nomura Research Institute¥13.2 billion

Scope 1 + 2:
66% decrease
Scope 3:  5% increase
Renewable energy
usage rate: 73%•R educe greenhouse gas emissions, and promote renewableenergy use (Scope 1+2)•T ake measures to reduce greenhouse gas emissions in Scope 3,
etc.

•E mployee well-being• Initiatives concerning human rights and labor practices (including
AI ethics, etc.)•B uild and strengthen partnerships with business partners, stakeholders and communities, etc.

Domestic Group
63%(Ref. global 56%)

01

Selection Continued

Selection

Corporate Information / Data

¥41.0 billion*1• Evolve business model (e.g., expand software assets)• Create a continuously evolving brand (e.g., enhanced content for
information & knowledge sharing)• Strengthen organizational capability to support business development (e.g., quality control, productivity innovation), etc.

Management Basis (ESG)Management
Basis
(ESG)

Amount of investment in creating
and accumulating intellectual capital• Improve growth opportunities for each individual• Promote diversity and inclusion• Enhance capability to realize the growth story, etc.

Materiality

Create a workplace where highly skilled professionals with diverse values gather to grow¥141.0 billion

Value Creation Capital

Advance
Human Capital¥63.0 billion*1

Value Creation

Co-create a Thriving
Future Society

Contributions to SDGs

MTP2025

Major Initiatives

Growth Story for 2030

(Reference)FY March 2023 Results

V2030

Value
Creation

KPI

2030 Goals

NRI’s Value Co-Creation

Materiality*6 9
 7% reduction of Scope 1+2 emissions and neutralization of residual
emissions*7 Including environment, human rights, etc.
*8 C
 onsenters or holders of equivalent standards in NRI Group’s
procurement partner companies, such as system development
contractors

Message from the CEO*1 Cumulative values during the term of MTP2025*2 Direct to consumer*3 Including inter-segment revenue for each segment*4 Ratio of employees who feel strong buy-in for the concepts of“value co-creation” and NRI’s “three social values”*5 Percentage of women responsible for projects and businesses•M aintain / operate Group-wide governance and internal control•E nterprise risk management•S trengthen quality control and information security management•P romote disclosure and improve transparency• Enhancecompliance, etc.

Integrated Report 2023

51

Value Creation

Through Expansion of Digital Social Capital

Co-create an Optimal Society
Through Effective Utilization of Resources

Growth Story for 2030

To achieve the goals stated above, we will work on thedevelopment and consulting of IT solutions that contributeto solving global issues such a green transformation (GX)
and a circular economy.
For example, we provide platforms that contribute tosolving social issues. One example is the solution NRI
Carbon Tracing System (NRI-CTS), which enables the timely
sharing of accurate information based on actual measurements of greenhouse gases. We will also promote projects
for co-creation of a business foundation that can effectively
utilize corporation and social resources without waste.

V2030

NRI operates shared online platforms such as THE STARand BESTWAY in order to assist in the transformation ofbusiness processes at financial institutions and the reduction of greenhouse gas emissions through the shared use of
information systems.
As we work toward 2030, we aim to contribute to therealization of a smart society—for example, efficient utilization of social resources (including human resources, public
property, intellectual property, etc.) and circulation of natural
resources. We will achieve these goals through measures
such as joint use of business platforms and use of data forvisualization / prediction of real space.

NRI’s Value Co-Creation

will focus on building platforms that contribute to socialtransformation from a medium- to long-term perspective.
Specifically, in response to the increased number of residents with a My Number card, we are expanding services
related to My Number and individual number services; forexample, an ID platform for Japanese residents, an electronic mailbox service, and one-stop administrative services
such as tax and social security. By providing such digitalsocial capital, we will support the realization of policies andservices optimized for individual users, while at the sametime appropriately managing information.

NRI is promoting DX 1.0 to transform its clients’ businessprocesses, DX 2.0 to create new businesses together withclients, and DX 3.0 to solve social issues and realize transformation. In this way, we are actively creating new businesses and co-creating businesses with our clients.
As we move toward 2030, we aim to contribute to therealization of a thriving society in which everyone can lead aprosperous life by enriching outstanding human capital andintellectual capital, as well as the digital social capital for
creating value from those two types of capital.
To achieve the goal stated above, NRI is making various
efforts in both consulting and IT solutions. In particular, weMessage from the CEO

Co-create a Thriving Future Society

MTP2025

Example Initiative: Creation of Digital Social Capital Through DX 3.0

Example Initiative: Ascertaining Greenhouse Gas Emissions across the Entire Supply Chain Using NRI-CTS

2025

2030

Expand possession and use of
My Number cards

Optimal policy and services
for individuals

UpstreamGovernment cloudShift to agentsElectronic
submission and notification oflegal records

Self-control over information(complete comprehension of self-related
information)

Parts manufacturer Company B

Deduction
certificates

Certificates ofincome andwithholding tax

Employment
contracts

Healthcare andmedication

Medical checkups

Nomura Research Institute

Asset management

Tax preparation

Employment andsocial insurance

Government filingsand payments

Managing medical
information

Education andlearning

Links upstream CO2 emissions to
own company’s products andextends downstream

Corporate Information / Data

52

Transaction reports

Expand functionof agents

Distributor Company E
Management Basis (ESG)

Offering convenience
Taxation and social security procedures
all in one place(Resident ID platform,
electronic post services, etc.)

Materiality

Assembly
Company C

NRI’s My Number-related services

Re-creating ID in digital spaces

Distributor Company D

Parts manufacturer Company A

Value Creation Capital

Tailored to individuals

Downstream

Value Creation

System into use at financial institutions

Own company

Integrated Report 2023

53

Value Creation

Initiatives to Instill Value Co-Creation Activities

Through Sophistication of Infrastructure

Instillation of value co-creation
With the aim of taking personal responsibility for themeaning and significance of value co-creation and further
cultivating recognition and empathy for linking it to eachpractice, we periodically hold creative and unique initiatives such as “Value Co-Creation DAYS” and “Value Day.”
		 These initiatives provide an opportunity for each
employee to step back from their daily work and consider
the connection between their own work and social issues.

Discussions with value co-creation leaders and mentor executives

Dialogue during Value Co-Creation DAYS

Instillation of value co-creation in the NRI GroupIn order to ensure that the entire NRI Group works on cocreation of value, we are promoting activities for instillation
among Group companies.
		 Value co-creation leaders and other human resources
selected from each Group company fulfill a central role insharing the significance of value co-creation and working
to gain recognition and empathy for value co-creation.
		 DSB Co., Ltd. (DSB), and the DSB Group companies
have been involved in the idea of value co-creation since2020, when those companies became wholly owned subsidiaries of the NRI Group. DSB held value co-creation
workshops within its group in October 2022.

Implementation of value co-creation
involving clients
We held value co-creation workshops with participationfrom clients. The aim of these workshops was to experience different ideas, broaden perspectives, promotemutual understanding, and form personal connections, aswell as to examine the value to be provided to society
from a different and wider perspective than normal.

Value co-creation workshop at DSB

Workshop with clients

V2030

Development of value co-creation leaders
From FY March 2020, we have been developing value cocreation leaders as successors who will continue to manually implement transformation through the practice ofvalue co-creation. Through a two-year training program,value co-creation leaders who have gathered from eachorganization deliberate on value co-creation for themselves and NRI, and build a network that transcends
organizational boundaries. We will also work on the practice of value co-creation through dialogue with the president and management.
		 After completing the program, leaders not only practice value co-creation, but also promote activities for
instilling value co-creation in their own organizations.

NRI’s Value Co-Creation
Growth Story for 2030

everyone will be able to enjoy various digital services withpeace of mind.
To achieve the goals stated above, we will work toacquire advanced technologies and to create safe, secure,and high-quality services.
For example, we will develop a foundation that enables
numerous companies to promote their businesses safely
and securely on digital twins through digital trust that
ensures the reliability of virtual spaces by protecting clientsand businesses and responding to the demands of society.

As information infrastructure becomes increasingly complex,
NRI is promoting businesses that undertake securityguaranteed infrastructure as a managed service. The
integration of business and technology is accelerating, anddigital twins are expected to create new business models.
As we work toward 2030, we aim for a state that
contributes to the realization of a strong and flexible society.
In this society, social infrastructure and data will beprotected by an advanced IT infrastructure that operates
stably and is resistant to disasters and cyber risks, andMessage from the CEO

Co-create a Safe and Secure Society

NRI believes that dialogue on various matters related to our work (including contributions to society) will accumulate as adepth of thought and manifest in the strength of individuals and organizations.
Writing a personal story that explains how one’s work can help solve social issues will give employees new insights into
their work and foster a sense of pride in their work. Since the Medium-Term Management Plan (2019–2022), we havebeen systematically promoting activities for instilling value co-creation that assists in revitalizing both the organization andindividuals.

MTP2025

Example Initiative: Digital Trust for Ensuring the Reliability of the Digital Twin

Co-create a safe and secure society
Value Creation

As a service
Social DX, value chain DX, circular economy, green DX, etc.
Individuals

Personality
types

ID and trustThree initiatives

Nomura Research InstituteIdentity management

Supply chains and trust

Data protection

Security management
Corporate Information / Data

54

Cyberspace

Services and trust

Management Basis (ESG)

Physicalspace

Data and trust

Materiality

Trust platform

Value Creation Capital* Personality types for eachservice received

Integrated Report 2023

55

Value Creation Capital

Advance Human CapitalThrough Bold Actions and Growth of Diverse Professionals

Responsiveness to Change✓ Builds awareness as
professionals from an early stage✓ Accumulates much knowledge
through various experiences✓C ontinues to hone high levelof expertise✓ Applies the knowledge to
new challenges

Potential for Autonomic GrowthIntegration of Excellent Skills✓ Full of curiosity✓ Possesses extremely
wide-ranging and diverse
expertise as an organization✓ Acquires new skills on their own
and continues to better
themselves✓ Mobilizes strengths while
respecting each other

Treatment and Development
Investment Appropriate forProfessionals

Salaries, bonuses, benefit packages, and other comprehensive financial treatment of employees by
NRI are kept at a level that befits professionals. What is more, NRI encourages employees to takethe initiative to study and enhance their expertise early on by participating in various training programs or acquiring qualifications.

Employees will feel pride in their work upon receiving high recognition from clients, which then leads to increased employee
engagement. Each and every employee works with a high level of commitment, thereby creating individual and organizational
strengths, which in turn leads to individual growth.

NRI’s Investment in Human Capital
NRI is working to quantitatively ascertain the amount of investment needed in order to effectively realize and further enhance investment
in human capital.
We believe that in order for human capital to demonstrate its value, it is important to increase engagement in the organization throughstrengthening professionalism and diversity and inclusion, and to work to maximize the power of individual employees as the strengthof the organization. Based on this concept, NRI seeks to enhance well-balanced human capital through appropriately investing inhuman capital initiatives such as bolstering hiring, human resource development initiatives that enhance the capabilities of each
employee, and initiatives to improve engagement in order to fully demonstrate the value of human capital. As part of these initiatives,
NRI calculated the amount of investment in human capital investment in FY March 2023.

Value Creation

Professionalism

At NRI, employees are asked to independently develop their own careers. At the same time,
NRI also believes that even if not in line with an employee’s intentions, relocations and assignments
made by the Company can contribute to serendipitous happiness that can lead to the growth of
the individual.

MTP2025

Strength asan Organization

Strengths of Individual Human Resources

Serendipity and Independent
Career Development

Growth Story for 2030

NRI has always operated its own growth cycle. This has enabled us to maximize the capabilities of human resources who
support growth and to build human capital, which is our greatest strength.

NRI intentionally does not set up rigid missions or roles. We encourage our employees to think on
their own and take action that goes beyond their missions and roles, rather than carry out theirwork exactly as instructed.

V2030

NRI’s Unique Growth Cycle

Flexible Assignment of Roles

NRI’s Value Co-Creation

NRI positions the expansion of human capital as the core of its materiality as corporate Value Creation Capital.
The strength of NRI exists precisely in this human capital. We also have strengths in various initiatives
and mechanisms that attract outstanding human resources and encourage their growth.
NRI’s human resources are a group of professionals who possess a high level of expertise and who takethe initiative to continually take on challenges and pursue growth based on independently set goals.
We constantly emphasize the creation of systems and environments in which such highly motivatedhuman resources can improve their abilities and demonstrate their full potential.

Concept of the Personnel System to Support Growth

Message from the CEO

NRI maintains a strong presence in the hiring market by having its outstanding human resources attract other outstanding
human resources. Another characteristic of NRI is that we encourage employees to take on challenges in areas in which they
have no experience—for example, taking on roles with responsibility and discretion from a young age. This leads to personal
growth. These kinds of stretch assignments are made possible by the supporting systems and workplace climate.

(FY March 2023: NRI non-consolidated basis)

Commitment to work

Awareness of being
entrusted with important work /High praise from customers

Stretch assignments
regardless of experience

Investment to develop human resources¥9.75 billion

Initiatives to improve engagement¥4.35 billion

Note: The “Total human resources investment cost” disclosed in the NRI ESG Databook 2023 is on a consolidated basis.
Management Basis (ESG)

Cultivation of pride
toward job

Cycle of
GrowthRecruitment of diverse,
talented human resources¥3.29 billion
Materiality

Growth of individuals andorganizations

Investment to bolster hiring, etc.

Challenging assignments

Corporate Information / Data

Personnel system to support growth56

Nomura Research Institute

Value Creation Capital

Attract talented people andpeople who want to work

Integrated Report 2023

57

Value Creation CapitalStrengthening Capabilities to Achieve Our Growth Story

Initiatives for Realizing V2030

Measures for Realizing V2030

Strengthen capabilities toachieve our growth story

Instill a culture of diversity
and inclusion

Maintain and improve employee engagement throughout the entire GroupEnsure women’s advancement by promoting hiring as managers
Strengthen on-boarding of mid-career hires (create horizontal connections, etc.)

Focus of Measures

FY March 2026 Targets

FY March 2023 Results

Human resources for utilizing DX

KPI

3,200 people

2,997 people

Human resources for business creation

200 people

155 people—

Measurements start in
FY March 2024

New graduate hires

500 people

399 people

Mid-career hires

Human resources for global business
Hiring headcount*1

Promote diversity andinclusion

365 people

335 people

Growth realization ratio

75%

72.1%

Percentage of managers with high human management
skills (high scores on human resource-related measuresin the internal survey)

97%

93.5%

Employee engagement score (NRI Payroll)
Percentage of female managers*2
Female opportunity offering rate

17%

14.3%

Equivalent percentage
maintained for expert andmanagement

Equal ratio of expert andmanagement (26%)

102

175

67

33
33
New Graduate Hires
53
21
393 380 399
200
319 308
NRI has been focusing on hiring activities that focus on a237 247 246 223 266
realistic job preview (RJP); in other words, we communicate02014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3
honestly with employees without embellishing NRI. In order
Number of new graduate hires
Number of mid-career hires
to communicate the appeal of NRI’s wide range of business*N RI-registered employees (includes employees of NRI Group companies hired by
NRI itself)areas, it is essential to involve not only recruiters in the
Note: Number of professional employees
human resources department, but also on-site employees.
Therefore, we focus on integrated management combining
human resources staff and on-site employees.
In order to communicate the realities of NRI, our on-site employees are in charge of various events such as “on-site internships (five or 10 days),” “hands-on one-day work for studying IT,” and “roundtable discussions for female students.” In particular, approximately 800 students participate in on-site internships every year. In addition to conveying work at NRI, theseinternships enable students to deepen their understanding of the consulting and IT industry. As a result, these internships havebeen extremely well-received by students who are engaged in job-hunting activities.
In recent years, we have introduced a platform service that enables online visits by alumni who now work at NRI. Throughthis service, more than 300 on-site employees are conveying the appeal of NRI.
Furthermore, many on-site employees participate in recruitment activities. Taking a step back from work and reflecting on
duties through an objective perspective is an opportunity for employees to consider the significance, appeal, and meaning ofwork. The result is a positive cycle that strengthens organizational engagement.

Mid-career Hiring
NRI is strengthening mid-career hiring in order to promote and support the DX strategies and global strategies that are accelerating at various companies in recent years. Mid-career hires come from not only the IT industry, but also from a variety ofother industries. These mid-career hires leverage their expertise in order to contribute to the transformation of a digital society.
In addition to activities aimed at increasing recognition for mid-career hiring through web media, event exhibitions, postingon transit advertisements, etc., NRI holds a “one-day internship for working professionals.” This internship is conscious of RJP
in the same way as initiatives are aimed at new graduates. In this way, we provide opportunities for learning about NRI to professionals who are considering a career change.
Recently, we are also working on initiatives such as referral hiring and alumni hiring, acquiring outstanding human resources
with a high degree of matching, and promoting the rehiring of former employees who have been active in other industries.

Management Basis (ESG)

Dialogue with External Experts on Human Capital

8.5%

400

233

58

Nomura Research InstituteDialogue Related to NRI’s Management of Human Capital

Corporate Information / Data

NRI periodically engages in dialogue with outside experts in order to ascertain
global trends and reflect that knowledge in management strategy.
In December 2022, Chiharu Takakura (director and chief human resource
officer (CHRO) of Rohto Pharmaceutical Co., Ltd.) and NRI senior managing
directors Kaga Yanagisawa and Takeshi Hihara held a dialogue
on human capital, including the relationship between growth strategies andhuman resource development. They also discussed the positioning of humancapital in the NRI Long-Term Management Vision V2030 materiality andhuman resource development as the V2030 growth story, as well as how
to communicate human capital management to investors.
Materiality*1 Number of professional employees. Includes employees seconded to subsidiaries, etc., in the scope of the calculation.
*2 Percentage of women responsible for projects and businesses
See NRI ESG Databook 2023 for details.

71

13%

335
139

Value Creation Capital

Percentage of managers who were mid-career hires(equitable promotion from employee population)

More than 70 continued

600

Value Creation

Improve growth
opportunities foreach individual

800

MTP2025

Enhance capabilities torealize the growth story(persons)

Growth Story for 2030

In the Medium-Term Management Plan 2023–2025, we will set appropriate KPIs and implement the PDCA cycle for thesemeasures.

Hiring by NRI Payroll* by Year

V2030

Expand growth opportunities
for each employee

 rovide growth opportunities and increase realization of growth by advancing the level of talent management
PStrengthen the development of next-generation managers and hold training to improve the human management
skills of managers
Consider expanding the mission grade system (role-based job grade system) to younger employees

NRI actively hires employees that will grow into professionals who possess a high level of expertise, who take the initiative to work on independently set goals, and whoembrace challenges without fearing change.
In particular, we are strengthening mid-career hires inrecent years.

NRI’s Value Co-Creation

 urther bolster hiring through new measures (recent university graduates, strengthen referral hiring, alumni, etc.)
FVisualize human resources with capabilities in DX, business creation, and global business, and systematicallyprovide opportunities to those human resources
Promote the performance of veteran employees- Establish operation of the Meister System (system for rehiring after mandatory retirement), etc.

Hiring at NRI

Message from the CEO

In order to promote the strategies of “core business,” “DX,” and “global” as listed in the growth story of V2030, NRI will implement initiatives for strengthening capabilities (including revision of the human resources system), expanding growth opportunities, and creating an environment where everyone can work with enthusiasm.

In addition to actively hiring human resources who support the growth cycle of human capital, NRI supports the challenges ofeach and every employee by enhancing its personnel system and treatment.

P.96

Integrated Report 2023

59

Value Creation Capital

Hiring of Employees After Mandatory Retirement and Support for Active Participation
Utilization Rate of System for Rehiring After Mandatory
Retirement (Non-Consolidated basis)
(%)
90

75.0%

78.8%
68.6%

82.3%
72.9%

30

0

2019.32020.32021.32022.32023.3

Note: NRI-registered employees (includes employees of NRI Group companies hired by
NRI)

Average Annual Salary (Non-consolidated Basis)

(1,000 yen)

FY March 2015

FY March 2016

FY March 2017

FY March 2018

FY March 2019

FY March 2020

FY March 2021

FY March 2022

FY March 2023

10,911

10,892

11,56011,514

11,66012,217

12,352

12,251

12,32012,421V2030

FY March 2014

NRI’s Value Co-Creation

System for Employment Conditions
The overall financial conditions offered at NRI such as salary, bonuses, and benefits are at level suitable for professionals.
Incentives offered for medium- to long-term contributions to sustained improvements into business value include retirement
payments, a defined contribution pension plan, an employee stock ownership plan, and an E-Ship (trust-type employee shareholding incentive plan).

60

Message from the CEO

NRI has established a system for rehiring after mandatory
retirement with the aim of maintaining advanced expertiseand enabling employees to continue to demonstrate theircapabilities even after mandatory retirement. In the past, thesystem for rehiring after mandatory retirement was designed
to accommodate diverse lifestyles; for example, the systemallowed for shorter working days. From FY March 2024, wehave established Master position as part of the system forrehiring after mandatory retirement. Master position allows
for employment with a high level of treatment for employees
who possess particularly advanced expertise and wish totake on roles with greater responsibility. This supports
increased performance and job satisfaction for employees
after mandatory retirement.

Evaluation System
Under the new system, results are still evaluated appropriately against the goals set at the start of the year and reflected inbonuses, as was done under the old system. Also, particularly in evaluations for promotions of manager-level personnel, we
are working to strengthen mechanisms for multifaceted evaluations to determine whether they have the attitude and qualities
suitable for top-level NRI employees.

Personnel System That Supports Challenges and Appealing Conditions (Salaries and Bonuses)

Organizational
policies and goals
Development systemand skills requirements

Management strategy

Expected roles of individuals*1

Various types of training

Integrated Report 2023

Corporate Information / Data

non-managerial positions

Management Basis (ESG)Managerial position
Non-managerial position

C&A System
We offer the Challenge & Act (C&A) System to broadly support autonomous and systematic skills development by employees
and for each of them to share their intended career paths with their managers, with whom they also have interviews to checktheir level of achievement of targets
they set themselves. In the C&A
C&A System
System, employees have a goalsetting interview with their superviCoaches*2
sors at the beginning of the term.
Non-manager-level
After activities for half of the term,
personnel
Observation
employees meet again with their
Evaluation of
performancesupervisors to confirm the results.
Evaluation of skills
The cycle is then repeated.
Activities overTarget setting
Check results(C&A interview)(C&A interview)
six months
In conjunction with the introducManager-level
personnel
tion of the new personnel system,
Results and challenges
NRI revised the Mission-C&A
Evaluation of behavior
Development
Evaluation of attitude
System for employees in manageand qualities
rial positions. Mission-C&A transSelflates the organizational mission into
improvement
expected roles for individual*1 Employee in managerial positions*2 Targets members and associates inmanagers.

Materiality

Nomura Research InstituteInitiatives for Systematic Development

Value Creation Capital

60

NRI is working to expand growth opportunities by reviewing and enhancing various systems and training programs so thateach employee can grow and perform while pursuing their own areas of expertise.

Value Creation

Promotions and Demotions
This new system has made flexible promotions and demotions possible according to the duties and roles of manager-level
personnel. At the same time, an accelerated promotion system was introduced for non-manager-level personnel, who can
now be promoted as far as the highest ranks regardless of age.

Expand Growth Opportunities for Each Employee

MTP2025

Rank System
Job class for manager-level personnel is now determined according to the duties handled and expected role for the year
rather than past successes and achievements. Career paths as specialists who are not managers have also been clarified,
and the job class of chief expert at the same level as a manager was newly established. These multi-track careers have madeit possible for management to assist the career development and boost the engagement level of more subordinates and offer
the appropriate conditions to people who take on their respective challenges, continue to grow as professionals, and produce
results, by consistently refining their own expertise while contributing to the organization.

Growth Story for 2030

Framework of the Human Resource System
NRI had previously been operating a humanManagement
Chief Expert
resources system of assessments based on
General Manager: M+
General manager level: C+
performance, outcomes, and ability, but we
Double-track career
Group Manager / Manager: M
Group Manager level: C
paths and dynamic
believed it was time for a new system that
promotions according
Expertcould spur ceaseless transformation of ourto duties and roles
E+
existing businesses and taking on challenges inE
new business. Based on this belief, we introduced a new human resources system in April
Senior AssociateS2022. The new system was structured to clarify
Early
promotiontoexpectations according to the role and mission
Associate
the top levelAand reward the results accordingly, with theby skipping levels
aim of continuously being professionals who
MemberB
always have a crisis mentality toward the current situation and are undaunted by change orchallenges. We also emphasize the spirit of treating all people with mutual respect regardless of their position.
This means that the current system determines job class according to the duties and level of achieving the roles expectedby each division for the year rather than past successes and achievements. It therefore requires employees to always take onchallenges and keep up with changes taking place in the world. We have also established the new career path of chief expert,
as a professional not involved with management. Through multiple career tracks, we can offer the appropriate conditions topeople who continue to grow as professionals and produce results.

61

Value Creation Capital

Security

5G / IoT

Blockchain

Data science, Analytics / AI

Cloud / PCI

Microservice / API

Agile software development

UX design / Design conception

Digital marketing

System consulting knowledge

Business consulting knowledge

DX business design

Knowledge andinsight

Implementation
know-how anduse cases
Skills knowledge
and frame

8,442

100

19
48

50

59
6,000

3.49

7,476
3.45

3.83

3.84

4

40

53

50

20

20.3

21.3

55

22.3

3

5,353

Ongoing courses

Nomura Research Institute

4,000

2
1,000

2,000

23.3

0

1

20.3

21.3

450

22.3

23.3

0

Course attendees (left)
Days attended per person (right)
Notes: 1. T he number of course attendees was calculated simply as the number of attendees at
each course.
				 2. NRI Group data

220
415

500
0

740
20.3

554

1,095

21.3

888

80

57

62

73

55

67

52
20

23

24

26

29

30

60
40
20
0

43

86

47

89

52

97

58

2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

Number of employees with CBA certification
Number of employees with CBD certification
Note: NRI-registered employees (includes employees of NRI Group companies hired
by NRI)

Cumulative Number of Dispatched Overseas Trainees (Graph 5)(persons)
250

200

183
141

150

198

207

214

229

164

121
95

100

68
50

0

2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

Note: NRI-registered employees (includes employees of NRI Group companies hired
by NRI)

616

1,419

1,217

22.3

23.3
Corporate Information / Data

New courses

62

535

1,500

89

690

2,500
2,000

60

0

3,000

78

Management Basis (ESG)

80

8,000

8,422

(persons)

120
100

Materiality

5

140

Value Creation Capital

10,000160

Value Creation(persons)(days)

180

MTP2025(courses)120

Human Resources Active in DX by Year
(Graph 3)

250 persons

Growth Story for 2030

Number of DX Skills Development
Course Attendees and the Number ofDays They Attended, by Year (Graph 2)

Targets for 2030

(persons)

V2030

Number of DX Skills Development
Courses by Year (Graph 1)

Global Human Resources
NRI implements numerous overseas programs that aim to
expand the capabilities of global human resources. NRI is
especially focusing on an overseas trainee system that dispatches young employees to our worldwide offices or theworldwide offices of client corporations that are active in the
global market. Until now, more than 200 trainees have been
deployed to 32 cities in 18 countries overseas (graph 4). We
also send several employees every year to study abroad. We
have sent a total of 58 students to study abroad during the
10-year period up to FY March 2023. In addition to MBAs
from overseas universities and business schools, students
are actively acquiring degrees in other fields, such as computer sciences (MSE/MCS) and law (LLM).
From FY March 2023, we are implementing measures tovisualize the global skills of our employees, with the aim ofsystematically developing global human resources. Basedon these measures, we will formulate KPIs for the humanresources required for future global business. We will also
formulate a development plan for global human resources
by for example, systematically granting opportunities for
global business expansion.

KPI for Business Creation Human Resources(Graph 4)

NRI’s Value Co-Creation

DX Human Resources Development Program
In the C&A System, employees take inventory of their own DX skills (area / level) and then use this assessment to set goals fortheir next skill improvement. The number of employees with a DX skill level of “basic level” or higher is set as a KPI that shows“the number of active DX personnel.” NRI is workDX Human Resources Development Program (Figure 1)
ing to increase this KPI.
In order to develop human resources who will
drive the creation and expansion of the DX business, which is a pillar of our growth strategy, thetraining program has a curriculum for strengthening the capabilities necessary for the DX era (figure1). For example, the program enables employees
to learn not only IT skills but also cutting-edgebusiness insight from the latest business use
cases. The establishment of this curriculum
was completed during the three-year period until
FY March 2022. From FY March 2023, we are
BIT basic curriculum
continually revising and removing portions of
the curriculum, with the main goal of refining theExternal collaboration curriculum (Participation in industry–academia–
government collaboration and industry organizations)content (graph 1).
Self-improvement curriculum (massive online open courses (MOOC)
Together with the systematic provision ofand qualification acquisition)
opportunities based on KPIs, each individual continues to receive the training necessary for achievBusinessEngineering
Technology
Management+++
ing their skill development goals (graph 2). As a+
Consumer
Art / Design
Scienceresult, the number of active DX personnel is
Leadership+++
Community
Agile
Academiasteadily increasing (graph 3).

Business Creation Human Resources
As an indicator for expanding human resources to create
new businesses, we have set the goal of increasing thenumber of Certified Business Analyst (CBA) and Certified
Business Developer (CBD) certifications, which are internal
certifications at NRI. (The KPI is a total of 250 certified
employees for FY March 2031.) To achieve these goals,
we provide mid-career and above employees with a large
number of courses for efficiently learning practical skills, aswell as courses for preparing to obtain external qualifications such as CBAP. For young employees, we have prepared a training program for early identification of humanresources who possess the elements for business creation
and assistance in bringing those human resources closer tocertification while increasing their motivation and skills. In
both cases, the strength of NRI’s human resource development lies in our well-established scheme in which internal
professionals serve as instructors and serve as leaders indeveloping the next generation.

Message from the CEO

DX Human Resources
In addition to furthering skill transfer under the concept of +DX, NRI is creating learning opportunities
such as holding a variety of training for consultants and systems engineers, who already possess conventional abilities, to utilize their existing skills while expanding their area of activity to include the field ofdigital transformation (DX). By doing so, we are promoting a strategic shift of NRI’s human resources
portfolio to one that we are aiming for in the DX age.

Basic level
Intermediate level
Advanced level
Note: NRI-registered employees (includes employees of
NRI Group companies hired by NRI)

Integrated Report 2023

63

Value Creation Capital

Expanded Training Programs

Growth of Core Talent and Internal Certification Program

Training for
promotion to
training forexpertTime ofpromotion /By position

Training forexpertpromotion toassociate

Training for
new Group
manager

MCD5Training for
new department head

Training at the of joining the Company

IT solution skill training

Basic career training

Selected Groupmanager training
program

New Dream Up the
Future Forum

Selected female department head
and GM program

Female leader training
programTraining for selectedcertifiers

Hands-on career training
Hands-on career PRO

Consulting training
Skilldevelopment

Staff HR Development Program
Lectures for generalmanagers

Human skills and other skill development program

Business Management Staff

Data Scientist

Researcher

Security Specialist

IT Service Manager

IT Platform Specialist

Application Specialist

IT Platform Architect

Application Architect

My Career Design (MCD)

Global human resources development program
D&I seminar for department
head and GM

Have each employee work independently to choose and develop their own career, undergo ceaseless transformation, and continuously take on challenges, regardless of age.
Raise motivation (or prevent motivation from declining) at regular intervals and career turning points, and enable employees to flexibly adapt to environmental changes.

PurposeE-learning related to diversity promotion, including unconscious bias and nursing care
Support for balancing work with childbirth, parenting, and nursing care program

Management Compulsory
age-limit
retirement

Join the Company
Organizational development support program

Age

20s

30s

40s

50s

Level
* MCD: My Career Design

Pursuit of Advanced Expertise
Career Fields
To advance our development of specialists and multiskilled personnel who work in specialized fields, and to bolster our development for mid-level ranks and higher, NRI has defined 20 career fields for specialist employees. Each employee selects theirown specialized field to refine their expertise, then continues with the aim of becoming a leader in multiple career fields.

Senior
Associate

60s
SupportExpertChief Expert

MasterManagement

Training for encouraging
autonomous career

Upon promotion to senior associate
Personal Career Design 1
Discovery

Upon promotion to expert
Personal Career Design 2
Expedition(43 years old)
Personal Career Design 3
Frontier(57 years old)
Personal Career Design 5
VoyageCorporate Information / Data

(50 years old / 52 years old
general manager)
Personal Career Design 4
HorizonCertification Program
NRI confers internal certifications to professionals with high-level expertise as role models in each career field. The internal certification program has seven qualifications in 18 categories, which serve as goals when employees envision their future careersand design their career paths. In the Skills Development Program, we offer an extensive lineup of highly specialized programsfor boosting skills for internal certifications.
64

Nomura Research InstituteManagement Basis (ESG)

Associate

Programs by department

Member

Self-improvement support program
OthersEnd of continuous
employment

Materiality

Human capability improvement program

Value Creation Capital

Human andorganizational
development

Strategist

In order to achieve independent career development for our employees and empower veteran human resources, we dramatically overhauled our existing career development training and started “Personal Career Design” training from FY March 2022.
In this program, we arrange a total of five workshop-style training sessions aiming to achieve career autonomy by looking backat one’s career, from the time employees are in their 20s until their late 50s. In the training sessions for ages 40 and up, we
also support independent learning by providing career coaching, one-on-one interviews, and a rich variety of optional programs such as e-learning for reskilling after workshops to make career development efforts more effective. In FY March 2023,
we enhanced our optional programs such as cross-boundary learning and overhauled our program for employees in their late
50s as we look ahead to the introduction of Master position in FY March 2024. Aside from the workshops, we also organize
annual career seminars open to all employees, where we strive to foster career consciousness. The seminars were attended
by approximately 800 employees in FY March 2023.

Value Creation

DX human resources development program

D&I

Qualificationand knowledge
accumulation, etc.

MTP2025

New employee
training(3) Self‐
improvement

Growth Story for 2030

Female leader development
program(2) Training
Programs coveringvarious specialties

Independent Career Development and Empowerment of Veteran Human Resources

Selected leader development programCore talent(1) Results
Appropriate Job
Assignment
Project Experience

Business Management / Corporate Staff

Training for
promotion toseniorassociate

MCD4

Conditions forcertification

Certification
ISM

Quality Management Specialist

Newemployeetraining

MCD3

Certification
ITA

Project Management Specialist

MCD2Application Common Platform Specialist

MCD1

Project Manager (Enhancement)

MCD0*

BD: Business Developer
BA: Business Analyst
PM: Project Manager
AE: A pplication
Engineer
ITA: IT Architect
ISM: IT Service
Manager
DS: Data Scientist

Project Manager (New)

Career seminar

System Consultant

Senior associate

Business Consultant

Associate

Expert~Certification
ITA

20 Career Fields

Strategic Consultant

MemberMid-career employees

Open recruitment

Certification
AE

Active talent in each career field

Sales / Account Manager

Careerdevelopment
programJunior employees

Recommended

Certification
PM

V2030

Program according to seniority

Classification

Compulsory

CertificationBA

NRI’s Value Co-Creation

Training Program System

Certification
BD

Message from the CEO

With more than 1,000 total sessions held for over 400 courses offered throughout the year, our in-house training comprehensively covers all the fields that employees need. Aside from required rank- and position-specific training, employees are free toselect these courses on their own.
Diversity and inclusion programs offer programs geared toward supporting the advancement of women, diversity, andwork-life balance.

Levels
7: A leader in the industry
who contributes to theindustry and the NRI brand
6: A leader in the Company;a professional
5: A leader in the division orgroup; an expert
4: A leader who guides juniors
3: A sub-leader who conducts
work single-handedly
2: An employee who conducts
work under the guidance ofa manager
1: An employee who has theminimum required basic
knowledge

Integrated Report 2023

65

Value Creation Capital

Establishing Diversity and Inclusion

Employee Growth via Challenging Assignments

Age of System Development Project Managers andBusiness Managers (Results for FY March 2023)

(%)

(%)

45 years old and up
20.9%

45 years old and up
13.5%

Less than 34 years old
29.7%

40–44 years old
22.5%
35–39 years old
34.3%

Cultivating Human Resources to Support Management*1 Tool provided by Atrae, Inc.
*2 Five Group companies with large number of staff on assignment from NRI: NRI SecureTechnologies, Ltd., NRI Workplace Services,Ltd., NRI Social Information System Services, Ltd., NRI Digital, Ltd., and Nomura School of Advanced Management

Materiality

Report on results of employee survey

Engagement Score

NRI: 71

97(June 2023)
71

67

67

67

2021.62022.62023.610FY March 2023

FY March 2026
(target)* Results for subordinate evaluations of managers in
AHEAD Program
Ratio of managers with an average score of 3.5 orabove in the six categories of observation, understanding, assigning targets, assigning opportunities, feedback, and growth support (on a scale of 1 to 5)

Employee engagement score (NRI Payroll) verage scores in the systems integrators & contracted developers industry
Aamong Wevox user companies

20

F

30

E–

40

E

E+ D–

50

60

D D+ C–70

C C+ B–

80

B

90

B+

100

A

Reference:
Average scores in the systems integrators &contracted developers industry
among Wevox user companies: 67

Notes: 1. Using the engagement analysis tool Wevox provided by Atrae, Inc., we surveyed employees at NRI alone and at five Group companies (NRI SecureTechnologies, NRI Workplace
Services, NRI Social Information System Services, NRI Digital, and Nomura School of Advanced Management) with a high percentage of employees seconded from NRI.
				 2. Engagement scores are assigned ranks A through F as indicators
Integrated Report 2023

Corporate Information / Data

71

70

93.5

Management Basis (ESG)

Nomura Research Institute(%)

Visualizing the Status of Organizations (Engagement Surveys)
We measure employee engagement at NRI in order to understand the job satisfactionlevels of our employees and co-create job satisfaction throughout the Company as awhole. Utilizing the engagement measurement tool Wevox*1, the survey has been conducted for employees of NRI and some NRI Group companies*2 once per year (in June)
since 2021. The results of the survey are used as reference data to formulate measures inhuman resources and are also disclosed to employees on the Company intranet for use inactivities to improve engagement in the workplace.

Value Creation Capital

66

Ratio of Managers with High AHEAD
Program Scores for Human Resources*

Value Creation

Improving the Personnel Management Ability of Managers
In order to further accelerate the growth cycle as we head toward 2030, it isimportant to improve the personnel management ability of our general managers,group managers, and other managers. That is why we reviewed the curriculum of
the training for new general managers, group managers, and other managers witha focus on improving personnel management ability. All training programs incorporate vision management for consolidating the total capability of the organization,
potential management for maximizing the potential of people and the organization,and performance management for achieving goals while supporting subordinate
development and independent career development. Training for improving thepersonnel management ability of existing group managers and other managers isscheduled to start in the second half of FY March 2024. We are also providing
AHEAD Program 360-degree feedback with the aim of improving the abilities ofmanagers to develop subordinates and boost co-creation leadership skills.
We plan to start e-learning for effectively utilizing the AHEAD Program fromFY March 2024.

(Providing Organizational Development Training and Communicating Information via Events, Etc.)
To enable all our employees to independently strive to co-create job satisfaction, we focus on providing video content andtraining regarding organizational development and human resource development (via one-on-one interviews, etc.), as well as
fostering a culture conducive to job satisfaction by transmitting information in various forms.
We have also started incorporating a training
program on organizational development intotraining for new managers, and together with
the Company-wide employee engagement
survey, we share information on engagement
inside and outside NRI each year at the Job
Satisfaction Co-Creation Forum (with nearly
700 employees in attendance each year).
We also have a Job Satisfaction Co-Creation
website on the Company intranet, where we
regularly display case examples of activities toco-create job satisfaction at various organizations within NRI, in order to encourage activities
Website page introducing examples of
Speakers giving presentations at Job Satisfaction Co-Creation
for job satisfaction co-creation across the entire
co-creating job satisfaction
Forum 2022
Company.

MTP2025

Enhancing the Development of the Next Generation of Management
We conduct two types of training for selected individuals to develop our next generation of management and executive
personnel.
Every year, five to eight officer promotion candidates take part in the New Dream Up the Future Forum, a learning anddevelopment program for the next generation of management personnel. Participants learn about how managers think via­dialogue with outside managers, deepen their understanding of management under the guidance of outside experts, andtackle management issues presented to each participant. This series of activities provides opportunities for thinking about
the meaning of management. Of the 30 total participants in the program during the five years leading up to and including
FY March 2023, 11 have been promoted to executive roles (as of the end of March 2023). We conduct Selected GM &Department Head Training for about 20 candidates for promotion to department head every year. By thinking about businessstrategy from a Company-wide perspective, participants cultivate a viewpoint brooder than their current position. Of the 89
total participants in the program during the five years leading up to and including FY March 2023, 52 have been promoted todepartment head roles (as of the end of March 2023).

Fostering a Culture Conducive to Job Satisfaction

Growth Story for 2030

35–39 years old
17.9%

Co-creating Job Satisfaction with Employee Engagement

V2030

40–44 years old
12.2%

Less than 34 years old
49.1%

P.92

NRI’s Value Co-Creation

Age of Consulting Project Leaders(Results for FY March 2023)

Promoting Diverse Work Styles and Health and Productivity Management
Efforts for Respecting Human Rights

Message from the CEO

At NRI, employees are given roles requiring great responsibility and discretion even if the employees are of a younger generation. In consulting projects, employees experience working as a leader in their 20s. Approximately 30% of the systems development project managers (PMs) are in their 20s or early 30s.
NRI-style project management methods and knowledge-sharing mechanisms, which were developed through long-standing
accomplishments, make human resources development and the giving of challenging assignments possible. This experience
not only encourages employee growth, but also creates a virtuous cycle that fosters pride in work as employees perceive theirown growth.

At NRI, we promote co-creation of job satisfaction so that employees and the Company can raise job satisfaction together,diversity and inclusion to bring together the strengths of diverse human resources, and the creation of an environment where
everybody can demonstrate their value as they work. Furthermore, we are engaged in the respect of the human rights of all
people who are impacted by NRI business activities.

67

Value Creation Capital

Promoting Diversity and Inclusion
NRI Action Policy for Promoting Diversity and Inclusion
Promote a workplaceenvironment where employees
participate actively, regardlessof gender

Gender

Generation

Employees with differing lifestyles (e.g.,child-rearing, nursing
care, state of health)continue to participate
actively

Lifestyle

Career andspecialization

Collaborationand mobilizationof diverse humanresources(child-rearing,
nursing care,and health)Presence ofdisabilities

Cross-cultural

Promote a basic understanding
in relation to sexual minorities

All employees are free ofany psychological barriers
irrespective of whether they arewith or without disabilities

Management Basis (ESG)
Corporate Information / Data

Integrated Report 2023

Materiality

Nomura Research InstituteEfforts for LGBTQ and Other Sexual Minorities
As part of our efforts for LGBTQ and other sexual minorities, we provide e-learning for promoting understanding to all of ouremployees and promote the operation of various systems. Systems that apply to the spouses of our employees also apply tothose with a partnership certificate issued by a local municipality that is deemed equivalent to marriage.

Value Creation Capital68* This refers to a subsidiary that gives special consideration to promote the employment of persons with disabilities, and in doing so meets certain requirements. Obtaining certification fromthe central government allows persons with disabilities employed by this type of subsidiary to be deemed as being employed by the parent company.

Value Creation

Number of managers (left scale)
Ratio of female managers (right scale)Note: Figures are from the start of each fiscal year (April 1).

Promoting Workplace Participation by Persons with Disabilities
At NRI Mirai, Ltd., a special subsidiary* of NRI, employees with various disabilities
perform a wide range of work such as setting up meeting rooms, supporting
training, collecting/delivering in-house mail, managing miscellaneous goods, andproviding massage services for employees. We are expanding the work of these
employees to managing a café at Kiba Center and performing some data entry
work for our financial information database service (IDS).
Moreover, NRI is working to expand hiring opportunities for people with disabilities by holding fixed-point surveys and presentations related to management issues
NRI Mirai employees operating “Sora café Mirai”
and trends in the hiring of people with disabilities and operations at special subsidiaries. As of June 2023, 208 disabled persons are employed at NRI and its Group companies (an employment ratio of 2.42%).

MTP2025

Promotion of Women’s Participation and Advancement in the Workplace
We are continuing our engagement in activities for the NRI Women’s Network (NWN) project, which began in 2008 under the
direct supervision of our president. We created systems that supported the balance of work and parenting, prepared training,
and fostered an environment that facilitated greater participation by women, making it only natural for women to continue
working.
Action Plans under the Act on Promotion of Women’s
Furthermore, we implemented measures to encourage
Participation and Advancement in the Workplace
women to advance their careers, including the Leader
Term
From April 2023 to March 2026
Development Program launched in FY March 2016, and the• Raise ratio of female managers (general managers/managers) to at least
Leader Development Academy, in which female directors
13%• Raise ratio of female employees responsible for projects and businesses
serve as instructors and was launched in FY March 2019.
to at least 17%
Goals• Maintain a female employee hiring rate of at least 30% of total hires
These efforts have enabled us to achieve the ratio of female• Raise ratio of annual paid leave taken by all employees to at least 75%• Raise ratio of childcare leave including paternity leave taken by malemanagers target in our action plan formulated in April 2019
employees to at least 80%(achieving a ratio of at least 8.5% by FY March 2023). In• Systematically provide opportunities and promotions to female managers
and managerial candidates
April 2023, we formulated a new action plan. In accordance• Conduct training programs to develop female employees involved inwith our goal of raising the ratio of female managers (genbusiness decision-making
Initiatives• Continue measures to increase the number of female students recruitederal managers/managers) to at least 13% during FY Marchas employees• Maintain environment and foster culture regarding work styles based on
2026, we have defined a unique goal of raising the ratio ofdiversity
female employees responsible for projects and businesses
to at least 17%, based on the idea that empowerment in
Ratio of Female Managers (General Managers / Managers)(NRI Non-Consolidated Basis)
work will lead to promotion.
(persons)(%)
Discussions related to diversity promotion, including
150
15
hiring women for management positions, are also taking
13%
place in Senior Management Committee and Board of
Directors meetings. Starting in FY March 2022, diversity
9.5%
100
10
8.5%
promotion initiatives are evaluated on a per-division basis
6.5%
5.9%
and calculated into bonuses.To facilitate the further hiring
69
4.1%
50
5
and promotion of women to director and management posi46
46
40
tions, we are engaging in the promotion of women’s partici27
pation and advancement while keeping the job assignment
002020.3 2021.3 2022.3 2023.3 2024.3
2026.3 (targets)and development plan in mind.

Support for Balancing Work with Childbirth, Parenting, and Nursing Care
NRI is working to create a workplace that facilitates a balance between work andparenting for both men and women. In FY March 2023, we adopted a spousepregnancy notification system for male employees, which explains the various
systems regarding childcare that male employees can apply for, recommends
paternity leave, and enables general managers to check the paternity leaveschedules of their subordinates. Male employees now also participate in Training
for Balancing Work with Parenting, which was previously only available to female
employees and their managers.
We are also enhancing the sharing of childcare-related information within the
A discussion with employees who worked as project­managers while raising a childCompany, and continuing to hold briefings on the systems regarding childcarethat are available and discussions with role model senior employees who worked
as project managers with limited work hours due to childcare duties. In “Examples of Working Parents,” we provide examples
of both mothers and fathers who have successfully balanced work with childcare, and introduce flexible work styles that utilize
methods such as telecommuting.
Furthermore, to promote balance between work and nursing care, we have systems such as nursing care leave and shorter
working hours for nursing care. We also hold nursing care seminars on a periodic basis.

Growth Story for 2030

Participate actively while
respecting each other’s cultural
backgrounds and values

V2030

Sexualorientationand gender
identity

NRI’s Value Co-Creation

Employees withdiverse careersand specializations
participate actively

Participate actively while
recognizing each other’s
strengths despite differencesin age and generation

Message from the CEO

NRI believes that consolidating the strengths of each of its
employees, with their various strengths and individual characteristics, leads to the strength of the organization. The
Group aims to foster a workplace environment where
diverse employees can all keep working positively and­continue embracing challenges.
Of the seven areas on the right, we have identified
gender and career/expertise as two priority areas for­promoting activities. We are also enhancing the sharing
of information on systems and case examples related toeach area and responding to employee queries regarding
work styles.

Enhanced On-Boarding for Mid-Career Hires
We promote mid-career hiring to expand our DX business and global business, which are the pillars of our growth strategy. We are also enhancing
on-boarding measures when mid-career hires join NRI to enable these
employees to become used to their new work environment as soon as
possible and exhibit their expertise and capabilities to the fullest extent.
As part of our Company-wide efforts, we hold monthly Getting Started
training for those that have just joined the Company, where we explain oursystems and rules, welfare, human resource development, sustainability“Portal for mid-career hires” in-house portal
activities, and the distinctive NRI value co-creation. In FY March 2023,
we launched the “Portal for mid-career hires” in-house portal that gathers
useful information for those who have just joined the Company, based on the opinions of mid-career hires. Of these various
efforts, our semi-annual socializing event for mid-career hires and the president is particularly well-received, as it provides
those who have been at the Company for less than one year with an opportunity to directly ask questions to the president.
The division that a mid-career hire joins also implements various on-boarding measures (an explanation of the business ofthe division, follow-up interviews, social networking within the division, and socializing events for interacting with the executives of that division) immediately after the employee enters the Company, according to the characteristics of that division.

69

Value Creation CapitalThrough Elevation of Individual Knowledge into
Organizational Strength

Superior insightHigh-level ability to achieve- Policy recommendations- Market forecasts / investigations(intellectual property / creation,
IT roadmap, etc.)- Dream Up the Future Forum,
information transmission, etc.

- Quality, degree of customer
satisfaction- Track record as social
infrastructure- Track record of providing services
to the industry’s top companies,
etc.

Con-Solution

Reliability, corporate image

THE STAR
Back-office solution for retail
brokerage firms

Launched in 1987

I-STAR
Back-office solution for wholesale
brokerage firms

Capabilities that support business development
Knowledge that supports organizational strength

e-BANGOMy Number management
services

No. of My Number stored

38

Approximately
million cases

Launched in 1993
Back-office solution for asset
management firms

e-NINSHO

80 firms

Identity verification solution* Source: Ministry of Internal Affairs
and Communications; Private
Companies Utilizing Japanese Public
Key Infrastructure Services

Launched in 1997

Launched in 2018

BESTWAY

e-PO box

Back-office solution for mutual fundsales at banks* Including life insurance firms,
non-life insurance firms, andinvestment trust firms, etc.

110 firms*

375 firms*

First private-sector cloud linked
with Mynaportal* Source: National Tax Agency; Issuer
Companies Utilizing Deduction
Certificates, Etc., Linkable to Mynaportal

83 firms*
Materiality- Quality management (NRI-QMS, System Development Committee, information
security management, partner promotion, etc.)- Production innovation (each type of tool, enhanced business innovation activities, product / technology information, etc.)- Business development (Business Assessment Committee, R&D Committee,
stage gate management, etc.), etc.

Online banking system

Launched in 2015

28 firms

24 firms

Value Direct* The number of firms and cases are as of the end of March 2023.

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Nomura Research InstituteCorporate Information / Data

NRI has a unique business model “Con-Solution” that continuously and concurrently utilizes both consulting and IT solutions
to support reform in its clients’ businesses. Our businesses with a high level of continuity, such as operation, enhancement,
and shared online services, are generating stable revenue. We are also achieving a competitive advantage by continuing toraise the added value of our software assets (such as shared online services and digital IP) that support those continuous
businesses.

Management Basis (ESG)

Outstanding Business Model

Development of Competitive Intellectual Properties
In recent years, we have been focusing our efforts on the development of digital IPs that can be used for multiple clients andindustries in the DX business area. “DiPcore” is NRI’s componentized key technology for achieving client DX. We will respondflexibly to business requirements that cannot be easily met through packaged solutions and achieve the speedy provision ofsystems. This will be done through the utilization of digital intellectual properties, such as by combining advanced AI algorithms – a major technology for realizing DX – with cloud technology and incorporating them into e-commerce sites and corebusiness systems. NRI will strengthen competitive advantages through the development of digital intellectual properties andcontribute to clients’ achievement of DX.

Integrated Report 2023

Value Creation Capital- Consulting framework, industry network, expertise to support execution,­analytics methods / tools- IT solution expertise / regulations (NRI standard framework, project management, system operation, data center operation, etc.), etc.

Processes that support organizational strength

Launched in 2012

Value Creation

Patent rights, Copyrights,
Rights of trademark, Design rights

87firms

Launched in 2017

T-STAR
Intellectual property management activities

D trust bank

MTP2025- Development / operational
documents- Software assets (shared online
services, digital IP, algorithms,etc.), etc.

C bankGrowth Story for 2030

- Industry / business knowledge,
technical knowledge-R ecognition of clients’ management issues-P roposals, reports, investigation
data, etc.

B assetmanagement

V2030

Continuously evolving brandIT solutions

A securities

BESTWAY

Business platform sales: ¥128.5 billion (FY March 2023)

Launched in 1974

Consulting

THE STAR

Major Shared Online Services

Intellectual Capital
Outstanding business model

Shared Online Services

NRI’s Value Co-Creation

Intellectual capital is the source of our competitiveness and an important element that clearly differentiates
us from other companies.
NRI has grown by sustaining long-term relationships with its clients and providing services with high addedvalue through the management of intellectual capital. We will create and accumulate intellectual capital thatchannels individual knowledge into unrivaled organizational strength that is inherited across generations.

Message from the CEO

Accumulate Intellectual Capital

Shared Online Services
For many years, NRI has continued to respond to the needsof clients in the financial industry and provide innovative
solutions. Shared online services are the fruit of our longterm accumulation of know-how. Shared online services
consist of the creation of software incorporating the technology and expertise cultivated through building systems forindividual clients, with the client’s required work standardized, and providing it as SaaS. NRI’s strength is using its
deep understanding of regulations and systems to provide
integrated services, from consulting to IT services and BPO.
The increase in the number of clients using shared online
services contributes not only to the expansion of NRI’s­business but also to the stabilization of its profit structure.

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Value Creation Capital

Capabilities That Support Business Development

Navigation
Management strategy
planning

Planning and developmentof information systems

Maintenance and operationof information systems

NRI Dream Up the Future Forum 2022
Special talk with Kevin Kelly, founding executive
editor of Wired magazine

Quality of information
security

Orientation of value utilization
Gainingcompetitiveness /growth potential

Social issue
resolution

Digital utilization

GrowthInnovation

Sustainability
Well-being

Data-analytics
Data-security

Society, industry, infrastructure

Daily living, employment, human resources esearch into local creation and local hubs (self-governed / independentR
metropolitan areas)Promotion of innovation programs
Regional DX promotion, etc.

Cloud service quality

Quality of workplaceenvironment

Quality of data center
operation

Quality of Information System Development
Each division is responsible for quality management of system development, maintenance and operations, and consulting services projects.
In addition, NRI has an organization that proposes and supports quality management activities for each division.
Moreover, work is underway to post all of the knowledge gathered at NRI on its internal website in order to share expertise and examples
across the entire Company.
Project Support System for Improving the Quality of Information Systems
NRI-QMS(quality management system)

NRI
standard framework

Production innovation

Information system
New development project
Planning

Development

Risk management

Information system
Enhancement project
Operations / Improvements

Management Basis (ESG)

Project supervision

Release

System failures
management
Materiality

Region, city, country

Quality of information
system development

Enhancement innovation /Operational innovation

Intellectual Property Management Activities
Corporate Information / Data

In order to maintain and expand intellectual capital and increase the competitive advantage of the NRI Group, our Intellectual
Property Department promotes strategic and ongoing activities. Using IP landscaping* and other techniques, we partner
closely with related divisions and strive to protect and utilize intellectual property rights that contribute to the business modeland formation of the brand.
* A technique used to understand the business environment using intellectual property trends as the pivot point and utilize that knowledge in the formulation of strategy

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Nomura Research Institute

Value Creation Capital esearch into the systems of values and lifestyles of the general publicR
Research into policy related to employment / human resources
Digital human resources (data scientists) research

Quality of systems inoperation

Value Creation

 esearch into the image of a digital societyR
Research into the ideal nature of public ID / public DX and societyResearch into social infrastructure in a mature, carbon-free era

Theme domains

Solution

MTP2025

Increased Presence Through Communication ofInformation on Accumulated Intellectual Property
We have enhanced our ability to analyze and make recommendations and display our presence as a creator of futuresociety by broadly communicating information on the resultsof our unique investigations and research activities in fields
that include society, industry, daily living, and communities
through forums, etc. In the future as well, we will sensitively
grasp changes in society and energetically pioneer new
areas, while strategically utilizing as intellectual property
the results of our activities.

NRI’s Quality Management Framework

Growth Story for 2030

A Group of Experts Taking on the Challenge of Making
Future Society a Reality
The core of NRI’s think-tank function, the Center for Strategic
Management & Innovation, aims to be a “future-oriented
think tank” that observes the increasingly unclear socialand economic issues faced by Japan and the world from aperspective that looks into the future, and recommends /communicates a “prescription” for those issues based on
scientific judgment.
		 Members who possess a high level of expertise in eacharea propose a variety of measures to improve Japan’s competitiveness and resolve social issues while painting a pictureof society’s future. In addition, we are implementing innovative initiatives that contribute to resolution of issues, while
collaborating with global entities.

NRI’s Quality Management
We continually work to improve the quality of services and are fully aware of our responsibility to deliver and operate information­systems that serve as a key component of social infrastructure.

V2030

Future Forecasts and Social Recommendations
Ever since its founding, NRI has continued activities as a think tank, such as the provision of future forecasts and social recommendations. We carry out investigative
research in industry fields such as finance, distribution and IT, surveys of consumer
trends, and future forecasts. The results are widely communicated to society throughthe publication of books, symposiums, magazines, newspapers, television, and othermass media.
A great number of such results have been picked up by various media and bookreviews, and have been highly recognized by various quarters. We believe that suchactivities are contributing greatly to the enhancement of NRI’s corporate brand image.

The capability of NRI, which channels individual knowledge into organizational strength, stems from knowledge and the processes that generate knowledge. Knowledge is comprised of various consulting frameworks and various types of IT expertiseand rules. Processes that generate and circulate this knowledge include quality control processes such as system development meetings, production innovation methodology such as that for making software development more efficient, and business development activities such as research and development for forming future intellectual capital. These capabilities
support outstanding business models and a continuously evolving brand.

NRI’s Value Co-Creation

Considering Japan’s first private think tank as one of its origins, NRI has strength in social recommendations and communication of information based on consumer trend investigations and forecasts of the future. As a group of experts gaining insights
into future society, the Center for Strategic Management & Innovation offers proposals that contribute to improving the competitiveness of Japan and solving social issues, and implements measures toward doing so. We observe society and industry
from a unique and excellent perspective, and release the results broadly to society through publications, forums, and the
media. We have garnered high praise and trust and enhanced the NRI brand through these activities.

Message from the CEO

Continuously Evolving Brand

Integrated Report 2023

73

Value Creation Capital

Project Supervision Activities

Quality of Data Center Management That Supports Stable Operations

Internal review system

Company-wide projectmonitoring activities

SeniorManagement
Committee• Project awareness

SystemDevelopment
Meeting

System Release
Meeting• Monitoring via
scheduled status
reporting• Reviews, scheduled
status meetings• Review of projectdeliverables• Assessing anddeveloping countermeasures regarding
project status

Division Design Committee

Department Design Committee /Internal project review

Main Data Centers[Tokyo][Osaka]Tokyo Data Center I

Osaka Data Center II

Completion: 2012

Completion: 2016

Total floor area: 38,820m

Total floor area: 18,360m2

Reception capacity: 40,000KVA

Reception capacity: 7,500KVA

2

V2030

Yokohama Data Center II
Growth Story for 2030

Project Management Activities as an Opportunity to Develop Human Resources
Project review meetings function as forums for the learning and growth not only of managers of projects that are being
reviewed, but also of employees who participate as reviewers and employees who attend as project manager (PM) candidates.

Completion: 2007
Total floor area: 15,888m2
Reception capacity: 15,000KVA

Grow further as PM humanresources who can play an active rolein multiple areas

Become PMs / PMO* / project administrators through experience as reviewers and attendanceEmphasis on Quality of Systems in Operation

Kenji Iino
Project researcher at the University of Tokyo Environmental
Science Center
Deputy chairperson of the Association for the Study of Failure
Materiality

Examples of Certifications and Assurances Acquired by NRI

Production Innovation Initiatives• ISO9001 (Quality management system)• ISO14001 (Environmental management system)AICPA• ISO20000 (IT service management)
SOC• ISO27001 (Information Security Management System)™
• ISO27017 (Cloud services security)• SOC 1 / SOC 2 Report (Internal control assurance report)• Uptime Institute M&O (Global certification standard for data center management prescribed by Uptime Institute)*
O rg an iz a ti o n sManagement Basis (ESG)

Since FY March 2011, NRI has held the Production Innovation Forum for each business division to share its initiatives related to productivity and quality improvements
in a Company-wide manner, and to recognize innovative initiatives.
		 We will continue to make endless improvements as a leader of the IT services
industry and foster a corporate culture of taking on new challenges.

SO

The Production Innovation Forum award ceremony

aicpa.org/soc4so

C

fo r

Ser v

i c e O rg a n i z a

ti o

ns

|

* Certification acquired for Tokyo Data Center I, Yokohama Data Center II, and Osaka Data Center II
Corporate Information / Data

Cloud Service Quality that Supports Social Infrastructure
Cloud services communally used by large numbers of users serve the function of supporting social infrastructure. These services must be
operated safely and securely.
NRI sets standards internally based on guidelines issued by relevant agencies, performs risk assessments on a regular basis, and takes
the appropriate measures. We also have independent organizations perform regular audits and evaluations of the operations of these services,
initiatives for improving and facilitate improvement processes to ensure that they remain highly regulated with good security.

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Nomura Research Institute

Value Creation Capital

Operating and maintaining completed information systems of a high quality not only builds solid relationships with clients but also provides
opportunities to improve and propose new solutions for the streamlining and further growth of clients’ businesses.
For this reason, NRI refers to operations and maintenance projects as “enhancement projects,” which are assigned the same level ofimportance as projects to develop new information systems.

The stable operation of data centers is NRI’s social mission. As part of this mission,
we hold a forum on the themes of safety and security every year. In FY March 2023,
we conducted work for clarifying the cause of and preventing the factors behindfailure that causes loss to society, corporations, and individuals, and invited Kenji Iino,
deputy chairperson of the Association for the Study of Failure, which promotessocial education, to give a talk on creating systems for eliminating failures.
		 The forum served as an opportunity for employees to pledge to the stable
operation of information systems, with lectures on safety by external experts centered around the concepts of thinking, learning, and not forgetting, and awards forexcellent slogans on safety and security thought up by individual employees.

Value Creation* Project management office. At NRI, there are many cases in which former PMs enter the PMO and provide indirect support for new PMs.

Safety and Security Forum

ic e

Even young, inexperienced PMs
can handle risks

Evaluate many projects of otherdivisions, departments, and teams

rv

Reviewers

Se

PMs

MTP2025

Former PMs
become reviewers
Objective observations
by other divisions, departments,
and teams

NRI’s Value Co-Creation

Proposal andEstimate Review
Meeting

Project

Systems Development Committee

The stable operation of information systems requires not only the quality of the information system itself but also the quality of the data center
that operates and manages the information system. In order to ensure stable operation of information systems, and to provide safe andsecure quality of services, NRI visualizes the risks related to data center services, conducting training for each type of issue that could be
anticipated.
It also conducts inspections that are interconnected with data center facilities. In respect to these efforts, NRI has obtained certificationfrom third-party review agencies.

Message from the CEO

Project Supervision Activities to
Support the Quality of Information
System Development
The Quality Management Division provides both supervisory and project management office functions for eachindividual division when they develop a
new information system. In addition toproject management for project implementation and success, NRI has a project supervision function to propose
quality improvements, and to identify
and resolve issues early on.
To ensure that internal reviews are notmerely process checks, committee members gathered from each division enact a
strict check through the system details,
thus achieving a high level of quality.

Integrated Report 2023

75

Value Creation Capital

Quality of Information Security

Declaration of Information Security Measures
https://www.nri.com/en/site/security_declare

Privacy Policy
https://www.nri.com/en/site/privacy

Response to Cyberattacks
NRI uses system-based defenses against cyberattacks, such as
installing antivirus software and EDR*1, hard drive encryption, andinstalling different security measures (such as firewalls, WAF*2, andnetwork behavior analysis technology*3). However, NRI is wellaware that system responses alone are not enough for defense*1 A solution that detects suspicious behavior on computers and servers (endpoints) andsupports prompt response*2 Web Application Firewall: System for detecting or providing protection against attacks
that take advantage of the vulnerabilities of web applications*3 Malware used in a phishing attack is often produced to target a specific company
alone, which means general antivirus software may not be able to detect and eliminate
the attack. NBA technology works by running software suspected of being malware ina highly restricted environment called a “sandbox.” Checks are then made to see
whether the software is engaging in behavior such as information exploitation or preparatory activity to that end, and if it is, it is eliminated.
*4 Computer Security Incident Response Team: This is the entity (a team) that takes theappropriate response when it receives notice of a computer security incident.
Alternatively, CSIRT refers to the functions of that entity.

NRI SecureTechnologies Recognized as an Information Security Market Leader
by IT Research Firms in Japan and Overseas

V2030
Growth Story for 2030

NRI SecureTechnologies, Ltd., was awarded Company of the Year in the Japanese market for the
Cybersecurity Services category and Privileged Access Management category at the Best Practices
Awards held by Frost & Sullivan Inc., a major research and consulting firm based in the United States.
Furthermore, NRI was introduced as one vendor active in the global market related to managed security
services providers and fraud management solutions for companies in reports published by Forrester
Research, Inc., an IT research company based in the United States.

MTP2025

Related Rules Concerning Information Security
In response to laws and regulations related to information security
and the advance of information technologies, we establish or revise
management rules as appropriate, including the Information
Security Management Rules, Confidential Information Management
Rules, Personal Information Management Rules, Specific Personal
Information Management Rules, and Information AssetManagement Rules.
In addition, we have prepared operating procedures, guidelines,
manuals, etc., for each of these management rules to ensure thatconsistent and effective information security management isconducted.

Personal Data Protection Statement
https://www.nri.com/en/site/security

NRI’s Value Co-Creation

Policies Relating to Information Security
NRI and its Group companies declare that the NRI Group shallobserve all applicable laws and ordinances and shall fully recognize
the roles that companies offering information services should play.
The NRI Group has established a framework of advanced information
security management that can serve as a social model to enable its
companies to continue to be worthy of client and public trust.

Information Security Management Structure
NRI has appointed a chief information security officer, who has
developed a system of information security management for ourorganization as a whole. All business divisions and Group companies have appointed an information security manager and information security person-in-charge (PIC), who have developed a meshstructure that allows security measures to be undertaken on across-organizational basis. As well as furthering the implementationof our information security policies, this structure will enable us torespond swiftly, accurately, and reliably in the event of cyberattacks
and other security emergencies.
The NRI Group contains specialist organizations that conduct
surveys and research of the latest information technologies, as well
as NRI SecureTechnologies, Ltd. (hereinafter, “NRI Secure”), thatengages exclusively in information security business. We will draw
on their technology, know-how, and knowledge when preparing
and implementing our information security policies.
We have appointed an information security manager and an
information security PIC at each of our overseas and domestic
Group companies, who are directing the development of an effective information security system and the drafting of an information
security enhancement plan at their companies. In addition, the NRIGroup has set certain information security protection standards andengages in improvement drives designed to meet those standards.

and has therefore put in place a Computer Security Incident
Response Team (CSIRT)*4.
A CSIRT acts like a fire extinguisher, denying further success toany attack that does in fact strike a system. It collects, evaluates,and shares vulnerability and attack information, and functions as anorganized, swift, and appropriate measure. We also conduct
employee education and training related to targeted e-mail attacks.

Message from the CEO

NRI operates important infrastructure that supports society including finance and distribution. We have established an advanced
information security framework to continue service and protect
important information at all times, and through that framework,
we work to remain a trusted partner to our clients and society.

NRI demonstrates flexibility in its responses to changes
demanded by the public, such as keeping abreast of rules andguidelines on the protection of personal information issued byregulatory authorities by the Personal Information Protection
Commission.

Frost & Sullivan Inc.
2022 Best Practices Award

Information Security Management Structure
Planning and Implementation

Quality of Workplace Environment

Review of information
security activities

Security Management
Department

Headquarters structure
Information Security Promotion
Committee

Support(General Affairs Department, Legal and Intellectual
Property Department, Corporate Planning Department(Integrated Risk Control Department), etc.)(Composed of directors anddepartment managers, etc., ofdivisions that implement
measures)

Advanced R&D

Person responsible for division

Person responsible fordepartment

Division Information
Security Person-in-Charge

Support

NRI Workplace Services

Employees

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Nomura Research Institute

NRI’s Handling of Personal Data (Including Individual Numbers)
NRI has a Personal Data Protection Statement, and it has made its
Privacy Policy available to the public. In accordance with theStatement and Policy, our employees comply with the Act on theProtection of Personal Information Held byAdministrative Organs; the Act on the Use of
Numbers to Identify a Specific Individual in
Administrative Procedures (the “My NumberAct”); and other relevant laws andregulations.

R&D Themes and Initiative Policies
Theme

Initiative policy

Investigative
research•R esearch and theoretical research from a mediumto long-term perspective• Investigation research contributing to NRI business development•T echnology trend surveys to contribute to the vitalization of business development and strengthen
the technical competitiveness of NRI• Systematic policy research, consumer surveys, etc.

DX businessdevelopment•R ecommendations that contribute to government
institutions and corporate management•B usiness development for priority themes such as
5G, next-generation stores, and smart cities•T echnological research focusing on DX-related
technology

Integrated Report 2023

Corporate Information / Data

Education on Information Security
NRI conducts ongoing information security education to raise theawareness of information security, instill regulations, and improve
the quality of security during design and development. In addition
to conducting specific training tailored to the particular characteristics of our divisions and group companies, we arrange training forour overseas offices that can be undertaken in English and/or
Chinese. We also actively incorporate group training and e-learning
methods into our training programs.

NRI promotes two categories of R&D. The first is DX business development, via cutting-edge technological research,
fundamental technologies, and production/development
technologies regarding information technology, and recommendations for society, via surveys and research. The
second is investigative research, via research and feasibility
investigations, prototype development, and proof of concepts for new business and new product development
according to our Medium-Term Management Plan andLong-Term Management Vision.
In FY March 2023, we invested ¥4.9 billion in R&D andplaced particular emphasis on business development
themes and accumulated commercialization expertise forbusinesses that will lead to new value creation.

Management Basis (ESG)

In-department Information
Security Person-in-Charge

Materiality

NRI SecureTechnologies

departments, to grasp the overtime hours of project members. NRI
is also continuously working on advancements in the work environments themselves. This includes digital solutions implemented
during the COVID-19 pandemic that use in-house technologies toprotect the health of visiting clients as well as employees of NRI
and its partners by detecting body temperatures of visitors andavoiding the “three C’s”—closed spaces, crowded places, andclose contact with people—in the office.

Value Creation Capital

Practice

NRI promotes a multitude of initiatives to foster a workplace environment where employees can keep on working positively in goodmental and physical health. The buildings for the headquarters, theYokohama Center, and the Osaka Center have open layouts withno assigned seating, and include common spaces such as meetingrooms. NRI is working to create better places to work through innovation in work styles and by reconceptualizing the organizational
atmosphere. Such efforts include the introduction of a framework
for allowing project managers, and those in project supervisor

Value Creation

Chief Information
Security Officer

77

Management Basis (ESG)

Through Collaboration with Business Partners

NRI recognizes that the preservation and restoration of the global environment, including addressing climatechange, is a shared global issue. As a company that provides consulting and IT solution services, we arecommitted to tackling this issue by leveraging our insights and ability to achieve. We will collaborate with all
stakeholders and contribute to the creation of a sustainable future society.

• Status of generation of environmental benefits for clients through business platforms (quarterly)• Status of support for setting the environmental targets of business partners• Setting of 2050 net-zero targets (SBTi level), including Scope 3

NRI’s Value Co-Creation

Key Deliberations and Reporting Items Related to Climate Change in Board of Directors Meetings (Fiscal Year Ended March 2023)

Message from the CEOContribute to Global Environment

Net-Zero Journey Subcommittee
The Net-Zero Journey Subcommittee of the Sustainability Activities Committee, led by a senior corporate managing director
who also serves as the chairperson of the Sustainability Committee, includes members with expertise in climate-related
issues. This subcommittee is responsible for advancing discussions and strategies related to climate initiatives within the
NRI Group, such as achieving carbon neutrality, reducing Scope 3 emissions, and sourcing renewable energy.
Further, in the determination of stock-based compensation provided to directors (excluding outside directors) and senior
managing directors, as well as other employees (with executive titles), a mechanism has been introduced that takes into
account the progress of the NRI Group’s sustainability indicators, which include efforts to reduce greenhouse gas emissions.

Key Deliberations and Reporting Items Related to Climate Change in Sustainability Activities Committee Meetings

TCFD scenario analysis results (asset management solutions business, consulting business)
Transition to renewable energy for main data centers’ electricity consumption
Fiscal year ended
March 2022

TCFD scenario analysis results (securities solutions business)
Agreement with the GX League Basic Concept
Status of support for setting the environmental targets of business partners

Fiscal year ended
March 2023

Status of consideration of setting 2050 net-zero targets (SBTi level), including Scope 3
Implementation of top-management dialogue with CDP

Value Creation

Key Deliberations and Reporting Items Related to Climate Change in Sustainability Committee (Established April 2023) Meetings(Held in May 2023)

Board of Directors
Supervision

Status of progress in renewable energy procurement

MTP2025

Sustainability Governance System

Revision of environmental targets for acquisition of SBT 1.5 ˚C certification
Fiscal year ended
March 2021

Growth Story for 2030

Governance
The NRI Group positions sustainability as an important management issue. In addition to considering sustainability in the
structure and supervision of our Board of Directors and the appointment of outside directors with knowledge about sustainability, the Board of Directors has decided on a Basic Sustainability Policy (including materiality). We have also established theSustainability Committee, which is headed by the director in charge of promoting sustainability management, and supervisedby the Board of Directors. The Sustainability Committee also has two subcommittees; the Sustainability Activities Committee
and the Value Co-Creation Committee, which are led by the senior corporate managing director. The Sustainability Committee
and the two subcommittees promote sustainability across the entire Group and periodically report to the Board of Directors on
the progress of their activities. Related matters are reported to the Board of Directors at least twice each year.

V2030

Initiatives for Creating Opportunities and Reducing the Risks of Climate Change (TCFD)• Mechanism for considering sustainability efforts (including climate change) in the stock-based compensation of executives• Policy concerning external disclosure of information related to sustainability (including climate change)• Subcommittees (Value Co-Creation Promotion Committee, Sustainability Activities Committee)

Presentation and report

Sustainability Committee

Value Co-Creation Committee

Sustainability Activities Committee

Promotion of MVV and value co-creation penetration,
grooming of value co-creation leaders, implementation ofmonitoring and evaluation, etc.

Sustainability management framework, decarbonization,
Sustainability disclosure, stakeholder dialogue, global
response, etc.

Fiscal year ended
March 2019

Identification of risks / opportunities in the Group’s overall business• Identifying the risks and opportunities for the 2 ˚C and 4 ˚C scenarios(Currently, the 2 ˚C scenario is being read as 1.5 ˚C scenario and applied.)

Chairperson Senior Corporate Managing Director
Elected Directors and General Managers, etc.
Members

Fiscal year ended
March 2020

Scenario analysis for highly important business• Implemented for data center business

Fiscal year ended
March 2021

Scenario analysis for profit center• Implemented for asset management solutions business and consulting business

Fiscal year ended
March 2022

Expansion of businesses targeted for scenario analysis• Implemented for securities solutions business

Fiscal year ended
March 2023

Continuation of scenario analysis, consideration of a disclosure system• Continue scenario analysis• Consider a more evolved information disclosure framework

Materiality

Strategy
Since the fiscal year ended March 2019, NRI has continuously conducted scenario analyses to identify climate change-relatedrisks and opportunities, as well as assessing the financial impact on the Group.
Scenario Analysis Implemented in the Past

Cooperation

Sustainability Strategy

ESG DisclosureGroup Global
Coordination

Net-Zero Journey

Corporate Information / Data

Supply Chain /Human Rights

Management Basis (ESG)

Chairperson Senior Corporate Managing Director
Elected Directors and General Managers, etc.
Members

Note: For details on each scenario, please refer to our efforts in response to the TCFD’s final recommendations. (https://www.nri.com/en/sustainability/environment/tcfd)

78

Nomura Research Institute

Value Creation Capital

Discussion of important sustainability issues, monitoring of materiality progress, etc.
Chairperson
Head of Sustainability Management
Members
Elected directors

Integrated Report 2023

79

Management Basis (ESG)

Below 2 ˚C / 1.5 ˚C scenario(Regulation / measures enhancement scenario)

Financial IT
Solutions

Implementationof a carbon tax

Implementationof a carbon tax

A certain degreeof subsidies forenvironmental
technologies

Strengtheningof disclosure
related to ESG
and the climate

Increasedinterest in theenvironment /society

No significant changes from the current
state.

+

Support for increasing the efficiency of the
supply chain and distribution processes will contribute to low carbonization. The advancementof related initiatives in the future will create
opportunities for increasing demand.

Industrial IT
Solutions+

Providing cloud systems will make it possible tominimize damage in the event of a natural disaster, thus reducing the risk to clients.

+

The risk of business stoppage is reduced byconsidering natural disasters when selecting
locations, as well as by implementing a mutual
backup system using multiple data centers. This
creates opportunities for increasing demand.

Asset owners and individuals do not show
significant interest in the environmental andsocial impact of their asset management.

Natural environment aspect
Escalating
naturaldisasters

As the severity of natural disasters
intensifies, changes in climate patterns
also become evident.

–

There is the risk of increased expenses such as
equipment maintenance / renewal expenses andcooling expenses due to power malfunctions
caused by natural disasters and due to anincrease in days on which the temperature
exceeds 30°C.

+

Notes: 1. +: Positive impact on the entire business segment –: Negative impact on the entire business segment				 2. *As of the time of the analysis. As of the end of the fiscal year ended March 2023, all data centers owned by NRI are powered by renewable energy sources.

Status of Implementation of Scenario Analysis by Business
FY March
2020

FY March
2021

FY March
2022

FY March
2023

Materiality

Scenario Analysis of Individual Businesses (Since March 2020)
For the aforementioned target businesses, namely Consulting, Financial IT solutions (categorized into Asset Management
Solutions and Securities Solutions), and Data Center businesses, we conducted more detailed analyses of climate-related
events, assessing NRI’s specific risks and opportunities, as well as the financial impact on NRI.
In the analysis for the fiscal years ended March 2020 and March 2021, we applied the “Below 2 ˚C scenario” and the “4 ˚Cscenario.” For analysis in the fiscal year ended March 2022, we applied the “1.5 ˚C scenario” and the “4 ˚C scenario.”FY March
2024

Management Basis (ESG)

Data Center Business
Asset Management Solutions Business
Consulting Business

80

Nomura Research InstituteIntegrated Report 2023

Corporate Information / Data apital Markets &C
Wealth Management Solution Business

Implement
calculation on
a Company-wide
level

Value Creation Capital

Identification of Risks and Opportunities Across NRI Business as a Whole (Fiscal Year Ended March 2019)
During the fiscal year ended March 2019, we identified risks and opportunities across NRI’s overall business. Two scenarios
were set: the “2 ˚C scenario” to limit temperature rise to 2 ˚C and the “4 ˚C scenario” assuming no measures beyond current
assumptions are taken. These scenarios were applied to four business domains: Consulting, Financial IT solutions, Industrial
IT solutions, and Data Center businesses (IT infrastructure solutions). Currently, “2 ˚C scenario” is being read as “1.5 ˚C scenario” and applied.

Data centers(IT Platform
Services)

We seek to establish carbon-free data centersthat use renewable energy for all electric power.
We believe that these data centers will create
increased demand in conjunction with increased
environmental awareness among ourcustomers.

Value Creation

Increasedinterest in theenvironment /society

Escalating
naturaldisasters

Minor impact on
corporate profit
structure andcorporate value,etc.

Enhanced disclosure of ESG-related
information is being requested, leading
to an increase in corporate information
disclosure.
However, disclosure frameworks, etc.,
have not been standardized.

Economic / social aspectNatural environment aspect–

If the profitability of financial institutions
decreases due to climate change becoming afactor in asset damage and long-term stagnation of the macro economy, there is the risk of
impact on demand for provided services.

Policy aspect (ii)

Economic / social aspect
Asset owners and individuals are becoming
more interested in the environmental andsocial impact of their asset management.

+

Compared to independent system developmentby individual corporations, NRI’s shared online
services will enable significant reductions in
power consumption, CO2 emissions, and cost.
Furthermore, demand can be increased by raising the renewable energy usage rate aimed atachieving RE100.

+

MTP2025

Enhanced ESG disclosure required /mandatory, leading to increased corporate
information disclosure
Additionally, disclosure frameworks, etc.,
become standardized.

–

There is the risk that intensified natural disasters
envisioned in the 4°C Scenario will cause stagnation of the macro economy, hurt the profitability of clients, and impact business sales.

The demand for client corporations to makechanges leading to decarbonization will increasedemand for NRI’s knowledge and solutions
related to sustainability.

Growth Story for 2030

Strengtheningof disclosure
related to ESG
and the climate

New technology
subsidies, etc.

$30–$50 / t-CO2

World View in 4 °C Scenario

V2030

Abundant subsidies
for environmental
technologies

Policy aspect (ii)

Anticipatedcontents

IEA Stated Polices Scenario (STEPS)
IPCC RCP8.5
Policy aspect (i) + Technical aspect

Significant impact
on corporate profit
structure and corporate value, etc.

World View in 1.5 °C Scenario

4 ˚C scenario(Current scenario)

Policy aspect (i) + Technical aspect

New technology
subsidies, etc.

Business Field

NRI’s Value Co-Creation

IEA Sustainable Development Scenario (SDS)IEA Net-Zero Emission Scenario by 2050 case (NZE)
IPCC RCP 2.6
IPCC RCP 1.9$75–$140 / t-CO2+ Opportunity – Risk

Consulting

Reference Scenarios and Anticipated Contents

Referencescenarios

Risks and Opportunities in NRI’s Business Overall
Message from the CEO

Anticipated Scenario
In the scenario analysis, two types of scenarios were considered: the regulation and measures enhancement scenario (referred
to as the “below 2 ˚C scenario” or “1.5 ˚C scenario” as described later) and the current scenario (referred to as the “4 ˚C scenario” as described later).

81

Management Basis (ESG)

Opportunity
Climate-related events

Risk

Anticipated risks

Risk /
Opportunity

Anticipated changes• Stockpile water for water-cooled type air-conditioning in case of water intake restrictions / water
stoppage• Prioritize use of air-cooled type air-conditioning to minimize water usage

Water damage (heavy rains, etc.)• Design sufficiently capable drainage, taking rainfall amounts into account• Designate sites least vulnerable to natural disasters as construction sites

Wind damage• Consider the height and local characteristics of the building based on the Building Standards Act• Set the wind load according to the position of the applicable part of the building, and design the firmness of outer materials(2)

Expansion of the use of renewableenergyCost burden incurred to achieve renewable energy adoption targets.
However, if the goals are achieved, it could mitigate the impact of carbon tax.

Power failures• Maintain power by automatically switching to power transmitted from batteries when failures occur• Switch from batteries to power supply from in-house generators

Escalating natural disasters

Data center facilities being affected by natural disasters(Water supply restrictions, water outages, flooding due to heavy rainfall, winddamage, power supply disruptions, etc. However, analysis of the hazard map, etc.,
led to the assessment that the impact was minor.)

Risks and Opportunities for the Asset Management Solution Business
Opportunity
Climate-related events

Changes to corporate competitiveness and corporate value impacts the asset
balance.

Baseline

Amount of increasein electricity costs
from carbon tax
implementation

Normal electricity
costs

Increase fromcarbon tax(2)

Promoting standardization andrequesting improved disclosure of
ESG/climate-related information tocompanies

Asset management companies will have increased need for organizing corporate
information due to increasing amounts of information disclosed from companies
and standardization of the information to disclose.

Case 1Case 2

Renewableenergy procured

Total electricity
costs

6.7

18.2–18.9

再エネ分

(3)

Improve disclosure of information
to asset management companies

Increased need for assistance due to improved disclosure of ESG investment andsustainable finance in operation at regulatory authorities and asset owners.

(4)

Improve disclosure of ESG information for financial products

There is demand for explanation of ESG- related items, etc., in financial products
for individuals developed by asset management firms.

(5)

Increased interest in personal ESG
and climate changeWith increasing demand for ESG investment and impact investment among millennials and generation Z, who have a particularly high interest in environmental andsocial issues, there is increasing need for visualizing the environmental / social
impact of asset management.

(6)

Intensifying natural disasters

Loss due to natural disasters will cause a slowdown in economic activity and atemporary drop in the asset balance.

—

電気代合計

2.0–2.7

3.4–4.1
Increase fromcarbon tax

炭素税増額分

Overall cost reduced by mitigating cost of
procuring renewable energy
2.0–2.7

Renewableenergy procured

Total electricity
costs

1.1

17.1–17.8

再エネ分

5.6

2.3–3.0
Increase fromcarbon tax

炭素税増額分

Renewableenergy procured
再エネ分

Total electricity
costs
電気代合計

-1.1– -0.8

* Total additional cost is the amount of electricity cost
increase compared with “No Action.”

Corporate Information / Data

通常電気代-0.1–0.3

電気代合計

9.5

Normal electricity
costs

Nomura Research Institute

炭素税増額分

3.1–4.2

9.5

通常電気代

82

(hundred million yen / year)

Management Basis (ESG)

Adoption of carbon pricing (carbon
tax, etc.) and subsidies for new
technology

Risk /
Opportunity

Materiality

No Action

Normal electricity
costs

Carbon tax + 36% renewableenergy procured
Price of procuring renewableenergy decreases

Difference from Baseline

14.8

通常電気代

Carbon tax + 36% renewableenergy procured

Total additional cost(hundred million yen / year)*

Anticipated changes

Value Creation Capital

Electricity costs increase
21%–28% due to implementationof carbon tax($75 to $100 / ton of CO2)

17.9–19.0

Can be an opportunity / risk

(1)

Impact of Carbon Tax and Achieving Renewable Energy Implementation Target (hundred million yen / year)
3.1– 4.2

Risk

Value Creation

Assessment of Financial Impact in 2 ˚C or Lower Scenario

MTP2025

In the 2 ˚C or lower scenario, to study the financial effects of adopting a carbon tax and renewable energy, we anticipatedBaseline, Case 1, and Case 2 situations, and evaluated the impacts for each. In Baseline, we anticipated that the adoption ofa carbon tax caused electric utility expenses to rise 21% to 28% compared to FY March 2019, and that NRI did not procure
renewable energy. In response to this, Case 1 considered achievement of the target set at the end of the fiscal year ended
March 2020 of reaching a “36% renewable energy procurement ratio by the end of the fiscal year ended March 2031.” Case 2
assumed the same conditions as Case 1 but also took into account a world in which the cost of renewable energy procurement had decreased. As a result, in the context of the below 2 ˚C scenario, it was determined that achieving the renewableenergy procurement target could mitigate the impact of implementation of carbon tax.

Scenario Analysis for the Asset Management Solution Business (FY March 2021)
In FY March 2021, we conducted a scenario analysis for the asset management solution business, which is part of the
Financial IT Solutions business. To define and identify scenarios, we established two scenarios: the 2 ˚C or lower scenario andthe 4 ˚C scenario. We surveyed impacts on our services and changes anticipated at client companies regarding six climaterelated events, and analyzed whether these posed risks or opportunities for NRI. The results are shown in the following table.
We assumed that there would be various opportunities as ESG disclosure and other information advances. We have also
conducted interviews with the management of client companies to corroborate the expected changes.

Growth Story for 2030

In the below 2 ˚C scenario, the anticipated introduction of carbon tax has led to anincrease in electricity costs.

V2030

Introduction of carbon pricing(carbon tax, etc.)

Overview of response measures

Water intake restrictions /water stoppage

Can be an opportunity / risk

(1)

(3)

Assessment of Impact in 4 ˚C Scenario

NRI’s Value Co-Creation

Risk and Opportunities for the Data Center BusinessIn the 4 ˚C scenario, to research the impacts of natural disasters on data center facilities, we used hazard maps and othermethods to analyze flood and landslide disaster risks near data centers. We evaluated these impacts as being small. However,data centers are taking measures against anticipated risks.

Message from the CEO

Scenario Analysis for the Data Center Business (FY March 2020)
Among the risks and opportunities, we conducted a scenario analysis for the Data Center Business—upon which climatechange has the greatest impacts— in FY March 2020. To define and identify scenarios, we established two scenarios for the
medium-to-long term (2030 on): the 2 ˚C or lower scenario and the 4 ˚C scenario.
The risks and opportunities in the Data Center Business are as follows. Within the climate-related events, light blue represents “transition risk,” which indicates the economic and social transition due to climate change, while dark blue is for “physical risk,” indicating the physical change caused by climate change.

Integrated Report 2023

83

Management Basis (ESG)

Regarding opportunities, future revenue growth was forecast based on the current track record of sustainability-related
business. Consequently, the analysis indicated that the below 2 ˚C scenario would result in a higher increase in demand for
consulting services and greater revenue growth than the 4 ˚C scenario.
Sustainability-Related Sales for the Consulting Business (Forecast at Time of Analysis)

5.0
NRI’s Value Co-Creation

2 ˚C or lower scenario

Evaluation of Financial Impact for the Asset Management Solution Business(%)
Change in sales

4.0
3.0
2.0
1.0
0
–1.0
–2.0

Adoption of carbon tax

Improve disclosures

Increased interest in ESG
investments

Intensifying naturaldiseases

Total
2018.32019.3Business as usual (4 ˚C scenario)

2020.32021.32022.32023.32024.32025.32026.32027.32028.32029.32030.32031.3
V2030

Change in sales(%)

Impact by 2 ˚C or lower

Regarding consulting risks, the economy will worsen if the global shift to decarbonization fails, causing natural disasters tointensify. Assuming that the impacts of a worsened economy would be similar to the financial crisis, we calculated that sales
would decrease by 12.1%.

0.0
–0.5
–1.0

Past Impacts of Major Crises in the Consulting Business

–1.5
–2.0
Adoption of carbon tax

Improve disclosures

Increased interest in ESG
investments

Intensifying naturaldiseases

Actual production

Total

Climate-related events

Adoption of carbon pricing (carbon tax, etc.)
and subsidies for new technology

Anticipated changes

Setting terms and conditions that include
climate change in the market

Changes to market structure due to
new environmental technologies

On the other hand, if many companies fail to shift todecarbonization in the long term, this may impact sales
for our consulting business.
A slowdown in economic activity due to loss caused bynatural disasters may impact sales for our consulting
business.

Changes in weather patterns

On the other hand, there may be greater need for our
consulting business in order to build countermeasures.

Nomura Research Institute–4.7%

Status of orders¥32.25 billion¥28.23 billion–12.5%

Sales results¥32.87 billion¥28.88 billion–12.1%

Expected business loss due to theeconomy worsening because ofincreased severity of natural disasters
if the shift to decarbonization fails

Note: The above was based on the Annual Securities Report at the time, therefore the values are to be used as reference values for scenario analysis only, as there have been changes to thesegments and business structure.

Scenario Analysis for the Capital Markets & Wealth Management Solution Business (FY March 2022)
In FY March 2022, we conducted a scenario analysis for the capital markets & wealth management solution business, whichis part of the Financial IT Solutions business. To define and identify scenarios, we established two scenarios: the 2˚ C or lower
scenario and the 4 ˚C scenario.
We investigated the impact on our services and potential changes in NRI’s external environment in response to climaterelated events, and analyzed whether there were risks or opportunities. The results are shown in the following figure.
With regard to “transition risk,” we determined that a likely increase in utility and equipment (such as servers) costs to sustain and manage the service due to the adoption of carbon pricing (including a carbon tax) would pose a significant risk to
NRI’s ASP services.
On the other hand, we believe that market reforms, such as setting sustainability bond market classifications, sustainability
ranking of companies, and increased demand to be environmentally conscious, will create opportunities for NRI’s securities
solutions business with more individual investors focusing on sustainable investments.
With regard to “physical risk,” we determined that the risk is high for society as a whole, including NRI, because the entire
macro economy will come to a halt or stagnate.

Integrated Report 2023

Corporate Information / Data

Intensifying natural disasters¥17.27 billion

Management Basis (ESG)

Increased need for consulting due to higher necessity
for strategy building and business structure reform forshifting to decarbonization

Opportunity / Risk

Risk

¥18.12 billion

Materiality

Opportunity

Rate of change

Value Creation Capital

Risks and Opportunities for the Consulting Business

FY March 2009

Value Creation

Scenario Analysis for the Consulting Business (FY March 2021)
Similarly, in the fiscal year ended March 2021, scenario analysis was conducted for the consulting business. Two scenarios
were defined: a below 2 ˚C scenario and a 4 ˚C scenario.
The results of analysis of risks and opportunities for the consulting business are as shown in the figure below. The analysis
revealed that while there would be an increased demand for sustainability-related consulting services due to climate change,
there would also be significant risks to the business, such as the potential failure in transitioning to decarbonization or economic stagnation due to exacerbated natural disasters.

FY March 2008

MTP2025

4 ˚C scenario

0.5

Growth Story for 2030

1.0

84

Message from the CEO

Next, we predicted changes in revenue fluctuation factors based on anticipated changes in client companies and consolidated the impact of four identified events on financial performance. The analysis showed that in the context of the below 2 ˚Cscenario, the influence of increased revenue would be relatively significant, while in the 4 ˚C scenario, the impact of decreased
revenue would be considerable.

85

Management Basis (ESG)

Risks and Opportunities for the Capital Markets & Wealth Management Solution BusinessClimate-related events

Risk

Can be an opportunity / risk
Risk /
Opportunity

Anticipated changes(2)

Introduction of carbon pricing(carbon tax, etc.)

Increased costs of servers and other equipment as a result of higher utility costs
due to carbon pricing(3)Market reform (related to sustainablefinance), more pressure / demand for­environmentally conscious behavior

Sustainability-linked market reforms (e.g., classification, tax incentives, etc.) andincreasing environmental consciousness will lead to more sustainable investments
by individual investors.
Shared online services (number of transactions, brokerage firm revenue), SI(4)

Changes in trading terms and conditions
and increased pressure and demand forenvironmentally conscious behavior

The ratio of renewable energy utilization will be introduced under the terms andconditions of a transaction.

(5)

Changes in trading terms and conditions
and increased pressure and demand forenvironmentally conscious behavior

In response to the introduction of renewable energy percentage to be utilized ina transaction, procuring renewable energy can partially increase costs. However,it can be controlled if the renewable energy cost is reduced.

(6)

Escalating natural disasters

Market trading suspension due to severe natural disasters (On the other hand, creating a competitive advantage by developing countermeasures better than others)(7)

Escalating natural disasters

As a countermeasure to the severe natural disasters, a response to wide area
damage is necessary.

(8)

Escalating natural disasters andchanging weather patterns

Increased costs as a result of offshore development being replaced with domestic
alternatives due to the severity of natural disasters
Increase in manpower costs due to higher resource prices, etc.

—
(No impact)

Evaluation of Financial Impact for the Capital Markets & Wealth Management Solution Business
Sales

Cost

10

0

–5
(1) Impact of carbon
pricing, etc.
(Share prices)(2) Impact ofincreased private
investment(Share prices)(6) Impact ofnatural disasters(Trading suspension)(3) Impact ofcarbon pricing(Procurement)(4), (5) Impact of
renewable energy
procurement(Procurement)

Sales(7) Impact of wide
area disaster
response(8) Impact ofoffshore development
shutdown(Manpower cost)

Reduction rate ofgreenhouse gas emissions(base year: FY 2019)50(Reference)FY March 2023
emissions results[FY2030]
Scope 1+ 2: Net-zero*1–66%

20 (1,000 t-CO2)*3[FY2030]
Scope 3: –30%

+5%190 (1,000 t-CO2)*3[FY2050]
Scope 1 + 2 + 3: Net-zero*2–12%

211 (1,000 t-CO2)[FY2030]
Renewable energy utilization rate: 100%

73%*3

—

Targets–10(1) Impact of carbon
pricing, etc.
(Share prices)

86

Nomura Research Institute(2) Impact ofincreased private
investment(Share prices)(6) Impact ofnatural disasters(Share prices)(6) Impact ofnatural disasters(Trading suspension)(3) Impact ofcarbon pricing(Procurement)(4), (5) Impact of
renewable energy
procurement(Procurement)(7) Impact of wide
area disaster
response(8) Impact ofoffshore development
shutdown(Manpower cost)*1 NRI aims to reduce Scope 1 + 2 emissions by 97% and to neutralize the remaining emissions. “Residual emissions” refers to emissions that cannot be reduced within NRI’s value chain by
the net-zero target year, and “neutralization” involves offsetting these residual emissions using carbon removal technologies outside the value chain.
*2 Aim to reduce Scope 1 + 2 + 3 emissions by 90%, with residual emissions neutralized.
*3 Performance values are verified by third-parties.

Integrated Report 2023

Corporate Information / Data

Renewable energy
utilization rate

–5

FY March 2023 results

Indicators

Cost

10

4 ˚C Scenario

Indicators and Targets for Decarbonization

Management Basis (ESG)(%)(6) Impact ofnatural disasters(Share prices)

Materiality

Indicators and Targets
In an aim to achieve decarbonization across the entire Group’s value chain, NRI revised its environmental targets in February
2023 in accordance with the SBT initiative’s “Corporate Net-Zero Criteria.” (The application for certification of reduction targets
by the SBT initiative is currently pending.) In addition, to achieve this target, NRI joined RE100 in February 2019.

5

Value Creation Capital

1.5 ˚C Scenario

15

Value Creation(%)

MTP2025

Next, we predicted how variation factors of profit would change based on the anticipated changes and calculated financial
impacts for each climate-related event. The following figure shows the impact of anticipated changes on revenue andexpenses by range of effect in the 1.5 ˚C and 4 ˚C scenarios, respectively. The purple graph represents the impact on revenue,
while the light blue graph indicates the impact on costs.

Risk Management
In risk management in NRI overall, including climate-related risks, the Company has appointed a director in charge of risk
management and established an Integrated Risk Management Department as a centralized unit for risk management. The
Integrated Risk Management Department is responsible for establishing and maintaining the framework of risk management,
as well as identifying, assessing, monitoring, and managing risks in general. Integrated Risk Management Committee meetings chaired by the director in charge of risk management are held twice a year. During these meetings, participants evaluate
the risk management PDCA cycle and deliberate on risk response strategies. The outcomes of these discussions are thenreported to the Board of Directors.
NRI separates potential risks into 13 categories that might arise in its business execution. Specific risk items are defined foreach risk category. These risk items are regularly evaluated by the responsible departments, and the risk items, their importance, and their impact are reviewed. Among the 13 risk categories, those perceived as being particularly significant each year
are selected as “priority themes for risk management” during meetings of the Integrated Risk Management Committee. One ofthese risk categories is “strategic management risk,” which encompasses “risk related to sustainability management (including
climate change response).”Additionally, since the fiscal year ended March 2019, the Sustainability Activities Committee has been responsible for identifying, evaluating, and responding to climate-related risks and opportunities in particular. The committee considers external
environmental factors, status of initiatives, and information from service-providing departments to consider and make decisions about measures for each climate-related risk, including risks related to escalating natural disasters and their impact on
business continuity.

Growth Story for 2030

Changes in corporate competitiveness and corporate value affect the asset
balances.

V2030

Introduction and strengthening oftransition policies, such as carbon pricing(carbon tax), etc.

NRI’s Value Co-Creation(1)

Utilization of the Results of Scenario Analysis
At NRI, based on the results of analysis of financial impact, we recognize that initiatives aimed at reducing greenhouse gas
emissions, such as the adoption of renewable energy, can mitigate risks arising from the introduction of carbon pricing (carbon
tax, etc.) and the expansion of the demand for environmental considerations. In light of this recognition, we are taking steps toaddress these issues. Specifically, considering that a significant portion of NRI’s greenhouse gas emissions is attributed toconsumption of electricity, we believe that transitioning the sourcing of electricity used in our operations to renewable energy isa crucial step toward decarbonization. With this in mind, all of NRI’s data centers have transitioned to using 100% renewableenergy sources by the end of the fiscal year ended March 2023. In addition, even in our office spaces, we began transitioningsome of the main office locations to renewable energy in the fiscal year ended March 2022.
NRI revised its greenhouse gas emissions reduction targets in February 2023, and has set forth the targets given later inthe “Indicators and Targets” section. Further, NRI is currently considering methods for procuring long-term and stable renewable energy with an eye toward 2030 and 2050.

Message from the CEO

Opportunity

87

Management Basis (ESG)

Greenhouse Gas Emissions Reduction Targets and Transition Plan

Scope 1 + 2FY2050Net-Zero

97% reduction, neutralize
residual emissions

Scope 3Reduce by 30%
Renewable energy usage rate100%

240,000 t-CO2*
Scope 1 + 2

Scope 1 + 2 + 3Net-Zero

90% reduction, neutralize
residual emissions

Concept of NRI Net-Zero Journey
NRI’s Value Co-Creation

120,000 t-CO2*
Scope 3

Helping to build
sustainable futures

Mutual benefits forbusiness partners and NRI(Neutralize)(Neutralize)

FY2030FY2050 ollaboration and support for reducing businessCpartners’ emissions
 witch to renewable energy contracts for power usedSin offices

Business partners
NRI employees eutralize through CO2 removal technologies andNforest absorption measures

Consider internal carbon pricing (ICP)
Promote green procurement of network equipment and other devices used by clients• Branding and gaining credibility

Efforts Toward Achieving Net-Zero by FY2050

Management Basis (ESG)* One environmental information disclosure program run by an international environmental NGO called CDP. A mechanism where the CDP acts in lieu ofmember companies of the supply chain program to request the suppliers of member companies to submit environment-related information, then analyze
and return the gathered data.

(2) Engagement
Starting in FY March 2023, we enhanced engagement with each of our business partners based on the NRI Net-Zero Journeyconcept in order to reduce emissions from Category 1 software development partners, which account for most of our Scope
3 emissions. As part of this effort, we held a workshop on corporate trends, methods for calculating greenhouse gas emissions, and how to set SBT targets. NRI specialists from our consulting business division joined the workshop as speakers,
and we established a contact desk to enable our partners to ask questions at any time about calculating emissions and setting targets.

Integrated Report 2023

Corporate Information / Data

Nomura Research InstituteMateriality

Data centers(with ISO14001)
57.3%(1) Visualization
Scope 3 emissions are currently calculated by multiplying activity amount by emissions intensity. With this method, emissions
also increase proportionally if activities increase, regardless of reduction efforts. We believe that building sustainable futures is
inseparable from the growth of NRI, and consider it important that we revise the calculation method so that reduction efforts
are appropriately affected and thereby continue to grow. That is why we have been participating in the CDP supply chain program* since FY March 2022 and are gathering primary data from our business partners.
We believe that encouraging business partners to disclose climate-related information via the CDP
supply chain program is a meaningful action for achieving net zero throughout our entire value chain andsociety at large. We are considering changes to the method for calculating Category 1 of Scope 3 emissions in FY March 2023, based on data gathered via the CDP supply chain program. This involves making
estimates with various calculation options, based on the opinions of CDP experts. By switching from thebase units given by the Ministry of the Environment to unique base units for each business partner, wehave generated estimates where reduction efforts are reflected in the figures even when activities increase.

Value Creation Capital

EMS
coverage ratio
77.9%

Progress in Renewable Energy Procurement
In light of the results of the aforementioned TCFD scenario analysis, NRI joined the RE100 initiative in February 2019. By thefiscal year ended March 2022, the Company switched to using renewable energy for the power consumption of three main
data centers with high electricity usage. In the same year, NRI also introduced renewable energy sources in key offices suchas the Tokyo Headquarters and the Yokohama Center. Originally, the goal was to cover all electricity needs with renewableenergy by the fiscal year ended March 2051. However, considering the potential for future tightening of regulations, the target
year was advanced to the fiscal year ending March 2031. As of the end of the fiscal year ended March 2023, all electricity
used by NRI’s data centers is derived from renewable sources.

88• Accountability to investors•A ttracting investors

Value Creation

Overseas offices(not yet implementing
NRI-EMS)
9.7%

Domestic offices(not yet implementing
NRI-EMS)
12.4%

Domestic offices(with NRI-EMS)
20.4%• Compliance with regulations,anticipating future regulations

Efforts to Reduce Scope 3

EMS Implementation Status

Overseas offices(with NRI-EMS)
0.3%• Be the preferred choice of ourclients

Shareholders
Investors

Green procurement of equipment used by NRIManagement System (EMS)
NRI has acquired ISO14001 certification, an international standard on environmental management systems, for its data centers, which are the main sourceof CO2 emissions. Furthermore, NRI-EMS, an environmental management system unique to NRI, hasbeen introduced at key NRI offices.

Clients
Consumers
Governments
International
institutions

In communities

In addition to the above:Implementation of Environmental

Business partners
and NRI

MTP2025

Long-termmeasuresuntil 2050

Contributing to industry

Growth Story for 2030

Priority
measuresuntil 2030

• Raise employee engagement• Be a preferred choice in the job
market

V2030

Key measures(transition plan)

FY2019 (Base year)

Message from the CEO

FY2030

NRI Net-Zero Journey
We believe that collaboration with various stakeholders is crucial not only for the Company but also for achieving “2050 NetZero” across the entire value chain. We are actively advancing the initiative called “NRI Net-Zero Journey,” which involves collaborating with our business partners to jointly navigate the path toward achieving net zero. As shown in the figure below, NRI
believes that fostering partnerships with business partners is essential for achieving the goal of contributing to the creation of asustainable future society. We are committed to growing together while placing great importance on these partnerships.

89

Management Basis (ESG)

Engagement with our business partners
Overview of effort

Top 80% of suppliers by procurement
amountB. Briefings for key suppliers
		 (Nov. 2022)

Key suppliers in Japan and overseas

C. Workshops
		 (Dec. 2022–Jan. 2023)

For high-ranked companies by
procurement amount without
environmental targets

D. Dialogues with partners
		 (Jan. 2023)

Management of suppliers• Share the NRI Group’s sustainability
management vision• Explain the concept of NRI’s Net-Zero Journey• Request that business partners set their own
environmental targets• Support by NRI consultants at workshops* ENCORE (Exploring Natural Capital Opportunities, Risks, and Exposure) is a web-based tool offered by Natural Capital Finance, etc. It makes it possible to understand the potential dependencies and impact on nature for 157 industries based on the GICS. TNFD also references ENCORE as a tool that is useful for activities such as scoping and the Locate phase of the LEAP
approach.

Points of Contact between NRI’s Business and Nature
Organization of the value chain
NRI’s business

Consulting

Overview of workshops held 4 times overall, 30 participant companies
1st (12/2)

2nd (12/21)

3rd (1/13)

4th (1/20) Internal talks

Emissions calculation (1)Emissions calculation (2)Consider targets toformulate targets

Internal talks toformulate targets

Procurement ofelectricity, water, andequipment, etc.
Emissions ofgreenhouse gases,
water, and other waste

Direct relationship with NRI

2

2

Influence anddependence onnature through clients

A deeper analysis of
key elements

1

1

Direct or upstream
impact anddependence

Analysis based on
LEAP is carried out atmain locations, etc.

Indirect relationship with NRI

Building on the results of these analyses, NRI aims to gain a more detailed understanding of its interactions with nature andproceed with scenario analysis for risk and opportunity assessment. For (i), the most direct interactions with nature, attention
is directed toward main locations such as data centers and Company offices, as well as procurement categories used there.
Analysis rooted in LEAP is under consideration. In addition, for (ii) interactions with nature through clients, which span various
sectors and regions, deeper investigation is being considered for elements judged to be significant across multiple sectors,
such as water resources. For (iii), scenario analysis in the Assess phase of LEAP is being considered, and in the Prepare
phase, measures that NRI should undertake will be examined.
Looking ahead, NRI plans to align its efforts with the final version of the TNFD framework scheduled for release in
September 2023. It will also consider various developments related to natural capital, data availability, and other factors toprogress toward conducting the aforementioned examinations and disclosure of their results. Further, considering the close
relationship between climate change and natural capital, NRI envisions integration of its efforts with the TCFD initiative that it
has been implementing since the fiscal year ended March 2019, for comprehensive analysis and disclosure in the future.

Integrated Report 2023

Corporate Information / Data

Consideration of Each Phase in LEAPIn the Locate phase, NRI organizes geographical information about its value chain, including business locations (data centersand offices). In addition, various tools are used to compile information about the natural conditions in different regions, aidingin the identification of priority sites for focused action.
In the Evaluate phase, based on the results from the Locate phase and the nature of business processes and activities at
each site, NRI identifies more specific dependencies and impact relationships with the environment. Further, concerning
downstream aspects, NRI will attempt to conduct in-depth analysis, particularly focusing on items believed to have significant
impact. Currently, the plan is to focus on dependencies and impact relationships related to water resources.
Moving to the Assess phase, NRI considers not only the dependencies and impact relationships identified in the Evaluate
phase but also the points of interaction with nature that contribute to societal transformation through policy recommendations
and consulting services. This phase assesses potential risks and opportunities for NRI through scenario analysis, etc.
In the Prepare phase, taking the above outcomes into account, NRI examines the actions it should undertake and the specific methods of disclosure.

Management Basis (ESG)

Nomura Research Institute

Various businessactivities utilizing
data centers,
offices, etc.

In the Assess andPrepare phases of the
LEAP approach, risks
and opportunities,
as well as the response,are considered.

Materiality

90

Impact anddependence onnature as perceived
by clientsContributions
through indirect
factors

Value Creation Capital

Current Initiatives
In 2012, NRI established the Biodiversity Action Guidelines (now the NRI Group’s Biodiversity Policy) and has been actively
promoting initiatives for biodiversity conservation and the sustainable use of biological resources. As part of the NRI Green
Style activities, the Company contributes to reducing environmental impact through its own efforts as well as through the services and policy recommendations it provides to society. In 2021, NRI formulated the NRI Group Business Partner Code of
Conduct, aiming to minimize harmful events related to the local environment, natural resources, and to ensure a safe environment among its business partners, thus contributing to reducing environmental impact throughout its value chain.
In this context, NRI joined the TNFD Forum in July 2022 to further enhance its commitment to natural capital. To identify
nature-related risks and opportunities, NRI is considering the Locate, Evaluate, Assess, Prepare (LEAP) approach outlined in
the TNFD disclosure framework.
During implementation of LEAP analysis, NRI first gained an understanding of the broad points of interaction between its
business and nature. Specifically, NRI organized its value chain and referred to tools like ENCORE* to comprehend the dependencies and impact relationships between each element and nature in various sectors. As a result, NRI identified three maintypes of interaction: (i) with data centers and office usage (including upstream value chain activities such as energy andProvision of services
to a wide range ofcompanies in sectors
like finance anddistribution

3

Value Creation

Initiatives for Conservating / Restorating of Natural Capital (TNFD)

Implementation ofvarious initiatives
contributing to societal
transformation

MTP2025

These efforts for encouraging our business partners in order to reduce Scope 3 emissions were recognized as we were selected for the top “Leader Board” in the CDP supply chain engagement evaluation.
(We have been selected since 2020).

IT Platform
Services

3

Provision of services
to government
agencies and othersocial entities
through policy
recommendations

Future policy

Growth Story for 2030

* We use the CSR Procurement Self-Assessment Tool of Global Compact Network Japan (GNCJ).

Industrial
IT Solutions

Points of contact between implemented economic activities and nature

Deep analysis

V2030

Sustainable Procurement
In FY March 2022, we formulated the NRI Group Business Partner Code of Conduct that defines rules on legal compliance,
the environment, and human rights. This code of conduct was created according to our concept of achieving sustainability
management and the RBA Code of Conduct 6.0 formulated and published by the RBA (Responsible Business Alliance), anddetails efforts that we would like our business partners to make together with NRI. NRI has been promoting the acquisition of
written agreements to this Code of Conduct from business partners, and the rate of acquisition has been increasing year by
year. In addition, some business partners are asked to conduct self-assessments* to confirm their compliance with the Codeof Conduct, and individual discussions are held based on the results of these assessments.

Financial
IT Solutions

Understanding of dependence and impact

NRI’s Value Co-Creation

A. Briefings
		 (Oct. 2022)

Message from the CEO

Main target

equipment procurement), (ii) with recipients of IT solutions services and consulting (downstream activities in the value chain),and (iii) indirect interactions through societal recommendations and consulting services contributing to social transformation.

91

Management Basis (ESG)

Through Strengthening of Relationships with Stakeholders

NRI Health Declaration

NRI Group AI Ethics Guidelines
https://www.nri.com/en/sustainability/social/policies#AI_Ethics_Guidelines
Human Rights Report	https://www.nri.com/-/media/Corporate/en/Files/PDF/sustainability/library/
back_number/human_rights_report_e.pdf
NRI Group Business Partner Code of Conduct
https://www.nri.com/en/company/partner_code

Growth Story for 2030

Basic policy: Based on correct knowledge and recognition for
their own health by each employee, the NRI Group supports
active initiatives for improving long-term QOL.
Reduce lifestyle-related diseases1• Manage employees’ reservations and receipts for medical checkups and health examinations, and encourage them to take these
examinations• Put
 in place health management rooms at our principal offices
and build a framework for industrial doctors to handle cases

Lower stress• Stress prevention for individual employees and teams• Developa system to enable employees to return to work earlier

3• Introduce support to help stop smoking• Remove
smoking spaces inside offices

Lower smoking rates• Reduce overtime and holiday work hours• Encourageemployees to take paid leave• Implementfrontline-driven initiatives including
streamlining operations and meetings, as well as promoting
early morning work

Materiality

4

ESG educational video produced jointly with simpleshow Japan
Value Creation Capital

Promote work–life balance

In order to promote understanding of our sustainability philosophy and initiatives, and to enhance the acquisition andawareness of ESG fundamentals, NRI conducts annual
e-learning programs for all employees in the domestic
Group. In the fiscal year ended March 2023, 98.0% of­officers and employees participated in the program.
In addition, we collaborated with simpleshow Japan tocreate educational videos on ESG basics, their significance,
the global state of ESG investments, environmental issues,and human rights concerns. The information is always available on the Company’s intranet website.

Value Creation

2

ESG Training for Employees

MTP2025

By enacting work-style reform, NRI aims to promote work–lifebalance by reducing long working hours. We seek to achieve
an environment where employees can fully exhibit their abilities while valuing their personal health and family life.
In 1994, NRI implemented a discretionary labor schemethat was a pioneering initiative in Japan at that time.
Through this scheme, we have promoted a work style thatis free from time constraints.
From 2016 to 2017, we relocated our Tokyo, Yokohama,and Osaka offices to new buildings. Based on the concept
of “creating new value by connecting people, goods,
events, information, and objectives,” we developed officespaces that achieve a working style that is uninhibited bylocation. Currently, we are engaged in enhancing productivity through a new work style that combines telecommuting
with in-office work.
At NRI, the CEO also serves as the chief health officer(CHO) in charge of Health Management* and is promoting
various institutional arrangements and initiatives based on
the four activity goals set forth in the NRI Health Declaration.

NRI Group Policy on Human Rights
https://www.nri.com/en/sustainability/social/policies#jinken

V2030

Building Positive Relationships with Employees- Promoting Diverse Work Styles and Health and Productivity Management -* World Business Council for Sustainable Development: A coalition of CEOs of approximately 200 companies committed to sustainable development.

NRI’s Value Co-Creation

Recognizing the importance of collaboration with various stakeholders beyond its own operations, NRI forms
positive relationships with stakeholders (society, clients, employees, business partners, shareholders, and investors). These relationships are essential to fulfilling social responsibilities throughout the supply chain, including
sound labor-management relations, consideration for human rights, and creating a sustainable future society.

preserving the global environment. Currently, NRI is disseminating this information to external contractors, vendors, andothers, obtaining consent to its code of conduct. NRI has
also requested self-assessments and conducted interviews
with business partners, enhancing their interest in sustainability and working together for improvement.
NRI will continue to bolster its efforts toward respect forhuman rights while communicating with its stakeholders
and facilitating their understanding of the relevant policies
and efforts.

Message from the CEO

Fulfill Our Social Responsibilities

Prevention Course” (e-learning) has been made mandatory
for all staff members, in an aim to promote human rights
awareness at NRI. Moreover, NRI engaged in dialogue onhuman rights with WBCSD*, understanding the necessity
for stronger commitment to human rights and acknowledging international trends, which hold expectations forcompanies.
Furthermore, as a company involved in the development
and utilization of AI, NRI formulated the NRI Group AI Ethics
Guidelines in October 2019 with the belief that it is essential
to mitigate the negative effects of AI while developing andutilizing AI in a proper manner. Further, efforts have been
made to promote AI ethics within practical operations, suchas developing checklists for reference during AI development and utilization.
To further promote sustainable procurement, we established the NRI Group Business Partners’ Code of Conduct
in April 2021 that outlines those matters that we would likeour business partners to observe, including respect forhuman rights, compliance with laws and regulations, and* This refers to a business policy that generates benefits for a company by providing its
employees with health-related assistance. This term is a registered trademark of theWorkshop for the Management of Health on Company and Employee.
Management Basis (ESG)

Efforts for Respecting Human Rights

92

Nomura Research InstituteIn the fiscal year ended March 2023, NRI continued to
conduct regular human rights due diligence for both NRI
and its Group companies, in accordance with the “UN
Guiding Principles on Business and Human Rights.” In addition to continuing ESG training that includes human rights(e-learning), starting in 2023, human rights-related training
including “Unconscious Bias Basics” and the “Harassment

Corporate Information / Data

NRI considers respect for human rights an important social
responsibility. On February 2019, NRI formulated its NRIGroup Human Rights Policy based on international conventions such as the International Bill of Human Rights and the
Guiding Principles on Business and Human Rights. Basedon this policy, NRI is engaged in efforts toward respect forhuman rights.

Integrated Report 2023

93

Management Basis (ESG)

Cooperation with Stakeholders

Dialogue with Experts

Environment: Effort for Climate Change Mitigation ~ Top Management Dialogue with CDP (November 2022)

Shingo Konomoto
Participants

Paul Dickinson

Management Basis (ESG)

Our future response to climate change will surely
require effective government policies that involve industry
as well as finance. The point of DX3.0 as advocated by
NRI, is to create a market for decarbonization via, forexample, government policy recommendations for decarbonization, and to further expand that market.
I expect that the NRI Group will be able to make a pioneering contribution to society at large by providing suggestions on government policies and regulations for
decarbonization, creating markets to realize those policies

Materiality
Corporate Information / Data

Nomura Research Institute2022 Sustainability Dialogue with Experts (Environment)	https://www.nri.com/en/sustainability/management/dialogue/2022/dialogue

Value Creation Capital

94

Regarding the Importance of Information Disclosurein the Global Fight Against Climate Change, and theRole of Decarbonization in Japan
NRI Konomoto: How does decarbonization in Japan fit
into the global fight against climate change?
Mr. Dickinson: Considering that carbon tax system will be
installed, I believe Japanese corporations and industries
will have an enormous opportunity to sell decarbonization
technologies overseas in the future.
In the 19 years that I have been interacting with Japan,
it has seemed to me that despite the technical and strategical preparations of both government and industry, they

Value Creation

Growth Story of the NRI Group and DX3.0
Mr. Dickinson: Climate change problems are intensifying
and we need to enhance global action. It is truly wonderfulthat the NRI Group has
cutting-edge strategies
and technologies such as
DX3.0 for achieving socialtransformation.

About CDP 
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states andregions. Founded in 2000 and working with more than
740 financial institutions with over $130 trillion in assets,
CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impact, and to reduce greenhouse gas emissions,safeguard water resources and protect forests.
Nearly 20,000 organizations around the world disclosed
data through CDP in 2022, including more than 18,700
companies worth half of global market capitalization, andover 1,100 cities, states and regions. Fully TCFD aligned,
CDP holds the largest environmental database in theworld, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon,
sustainable and resilient economy.
CDP is a founding member of the Science Based
Targets initiative, We Mean Business Coalition, the Investor
Agenda and the Net Zero Asset Managers initiative.

MTP2025* Affiliation and position as of November 2022

Senior Managing Director,
Chief Sustainability Officer
NRI

Growth Story for 2030

NRI has set forth “Contribution to the Global Environment
through Collaboration with Business Partners” in its materiality announced in April 2023, and contributes to natural
capital and a sustainable future society. This article
describes the dialogue held on November 2022 with Paul
Dickinson, founder of CDP. In this dialog, opinions were
exchanged between Paul Dickinson, Shingo Konomoto(Chairman, President & CEO, Representative Director,
Member of the Board at Nomura Research Institute), andTakeshi Hihara (Senior Managing Director).

Takeshi Hihara

Role and Expectations for the IT Industry Toward a
Sustainable Future
NRI Konomoto: Now we would like to take a look at therelationship between IT and sustainability. NRI holds the
NRI Dream Up the Future Forum every year. One of theimportant themes is how IT can achieve sustainability, or asustainable society.
NRI functions as a think tank. This involves, for example, estimating how much IT can contribute to society via
digitization, and communicating that information to society.
At the same time, I hope we can utilize our IT service business to implement sustainability measures in society. With
DX3.0, we aim to create hypotheses for using IT services
to increase the sustainability of society at large, and test
those hypotheses via social implementation.
Mr. Dickinson: In order to limit the overall CO2 emissionsof society as much as possible in the future, we believethat it is necessary to radically redesign and rebuild thefoundations of global industry. Digitization will play an
extremely important role in achieving such revolutionarychanges. I believe that the two biggest trends in the world
will be decarbonization and digitization.
I hope that the IT industry will establish and promotemuch more ambitious targets toward a fundamental
restructuring of industry to achieve decarbonization. I thinkthat people around the world are looking forward to having
the NRI Group confront the challenges of society, in particular by leading industry in Japan via DX3.0 efforts.

V2030

CDP Founder Chair

Chairman,President & CEO,
Representative Director,
Member of the Board
NRI

lack the confidence to contribute to decarbonization andneed to realize that they have the capability to do so.
On a global level, various stakeholders are faced withextreme climate change and abnormal weather, and areurging national governments to do something. Looking
ahead, I believe that the question of what government policies can be implemented toward decarbonization will
mean everything.

NRI’s Value Co-Creation

Each year since the fiscal year ended March 2011, NRI has engaged in dialogue with outside experts in order to understandtrends in global sustainability and reflect that knowledge in management strategy and risk management.
In dialogue during the fiscal year ended March 2023, we exchanged opinions with experts in the fields of human capitaland the environment.

and regulations, and continuing to provide clients withassistance.
NRI Konomoto: In regard to government policy formation
for decarbonization, the GX League will identify the diverse
needs that Japanese corporations have toward green
transformation, and reflect those needs in government
policy. NRI acts as secretariat of GX League administrationand is in charge of overall coordination. This means that
we are deeply involved in promoting policy debate on GX
for the whole of society.
NRI works in the consulting business, functions as athink tank that provides policy suggestions, and also provides IT services. Therefore, we can contribute to government policy formation via
our think tank and consulting functions, and in
the field of IT services, weare promoting actual
efforts to contribute to GX
execution, such as providing services like NRI-CTS.

Message from the CEO

NRI understands the expectations of its various stakeholders, namely, society (including the global environment), clients,
employees, business partners, shareholders, and investors. Through initiatives that leverage NRI’s strengths, we collaborate
with stakeholders to co-create a sustainable future society.

Integrated Report 2023

95

Management Basis (ESG)

Delivering Value to Clients
NRI engages in sincere business activities for its clients and strives to deliver services that are satisfactory and in conformity
with client agreements.

Chiharu Takakura
Participants

Director and Chief Human
Resource Officer (CHRO)ROHTO PharmaceuticalCo., Ltd.

Senior Managing Director,
NRI

Kaga Yanagisawa

Senior Managing Director,
NRI

100

90

86.9

83.8

86.4

88.7

89.1

22.3

23.3

80

70

60

50

19.3

20.3

21.3

The investigation targets all business units. Clients and project services that will be thetarget of the investigation are selected for each business unit based on set criteria.

Cooperation with Business Partners
NRI’s operations are based on cooperation with its business partners, such asexternal contractors and suppliers. Accordingly, NRI has a fundamental policy ofbuilding business relationships that are mutually beneficial, as well as obey soundbusiness practices and laws.
NRI Group Procurement Policy
https://www.nri.com/en/company/partner

NRI holds annual sustainability
workshops with its business partners to share information andexchange opinions about sustainability activities.
		 In the January 2023 dialogue,
the purpose was to share NRI’s
thinking regarding sustainability
and to facilitate mutual learning.
Business partners were invited topresent their initiatives related to climate change. A record number of
89 business partners participated in
the dialogue.

Materiality

Management Basis (ESG)	Sustainability Dialogue with
Business Partners (in Japanese)https://www.nri.com/en/
sustainability/management/sustainability_dialog_with_business_
partners

Integrated Report 2023

Corporate Information / Data

When an NRI system development project is contracted out to a business partner,
it should be assessed comprehensively with respect to its technological capability,
quality, delivery date, cost of products and services, staffing and platform, financial
condition, compliance, and efforts on information security management. Overseas
business partners should also be screened under laws such as the Foreign
Exchange and Foreign Trade Act.
The number of employees involved in business at NRI’s business partners
stands at approximately 15,000, about half of whom are permanently stationed
in NRI offices or currently working from home.
NRI promotes efforts to create a sustainable society through collaboration withits business partners. When signing contracts with each company, we requirethem to submit a written agreement to the NRI Group Business Partner Code of
Conduct, and as of June 2023 we had received written agreements from 501
business partners.
To continue the appropriate contract services, we formulated the Guidelines
Relating to Contract Work. Moreover, we separate the work sites of business
partner employees under a contract service agreement from the work site of NRI
employees, preventing a practice of falsified contract service in which an NRI
employee directly issues instructions and orders to a business partner employee.
We annually conduct the required self-inspections.

Hosting Business Partner
Sustainability Dialogues

Value Creation Capital

2022 Sustainability Dialogue with Experts (Human Capital)	https://www.nri.com/en/sustainability/management/dialogue/2022/
dialogue_2(%)

Value Creation

Nomura Research InstituteWays to Communicate Human Capital Management
to Investors
Takakura: Investors are requesting, first and foremost,comparable indicators to be presented. In the case of NRI,
it would be beneficial to showcase the state in which adiverse range of talent, including women and mid-careerhires, come together with various expertise to form teams
through innovative collaboration. In addition, it’s important
to demonstrate the cycle of learning (input) and experiencein the development of human resources.
Further, having the CHRO play a significant role in management and sharing a story that outlines NRI’s direction,
including its rationale and its link to sustainability, are also
crucial.
Hihara / Yanagisawa (NRI): Thank you very much foryour valuable input. Essentially, diverse perspectives andimagination are crucial, and creating an environment
where human resources in the Company can freely
express these aspects is of significant importance.
The growth story of human capital is reflected in the
Company’s vision andMedium-Term
Management Plan, but I
believe that it is equallyimportant to convey thisstory effectively to external
stakeholders as well.

Results of the Client Satisfaction Survey (Non-Consolidated)
Percentage That responded “Satisfied” or “Moderately Satisfied”(Total for top two items on five-grade scale)

MTP2025

Embracing the role of NRI as a consumer in daily life
while approaching business is likely to showcase NRI’s
human capital management to society. This approach canlead to the creation of value for society and provide ideas.

 redit screening tapping into information from research firms
CProject-by-project deliberation at the Senior Management Committee
and each division meeting
Comprehensive assessment on the future potential, growth potential,
and social effects of the business

Growth Story for 2030

Growth Story of NRI and Role of Human Capital
Takakura: In recent years, the business landscape has
shifted to a point where companies cannot achieve sustainable financial growth without addressing social issues
and creating value for society. Initiatives focused on solving social issues are linked with NRI’s concept of value cocreation. Especially for knowledge-based companies like
NRI, there is a high societal expectation to lead efforts toguide various client businesses toward new value creation.
In an unpredictable future society where changes are
difficult to predict, NRI’s “arena,” where diverse experts
come together, exchange ideas, and conduct research, isanticipated to gain significant value. NRI’s forum holds thepotential to greatly contribute to addressing these challenges by incorporating cutting-edge global insights fromvarious perspectives.

Client Satisfaction Surveys
NRI conducts client satisfaction surveys for each projectand has clients evaluate the entire project. We also obtainspecific feedback from clients on our proposal-making skills
and incident management procedures.
The Quality Management Department compiles and analyzes overall trends through the results from the survey. It
also provides the departments in charge of the project withfeedback from the surveys and implements measures tofollow up on the feedback and enhance service quality,
leveraging the data to improve the service quality.

Main Items for Deliberation on New Contracts

V2030

various committees, including with the Ministry of
Economy, Trade and Industry. In this dialogue, Ms.
Takakura had a discussion and exchanged opinions withTakeshi Hihara and Kaga Yanagisawa, senior managing
directors of NRI, regarding the themes, “Positioning of the
Growth Story of NRI and Human Capital,” “Relationshipbetween the Growth Story of NRI and Human Resource
Development,” and “Communicating Human CapitalManagement to Investors.”

Comprehensive Deliberation on New Contracts
In response to business contract requests from clients, we
decide to accept them by conducting examinations. We
make our final decision after thoroughly considering thefiduciary duty on quality and delivered date, as well as legal,
ethical, and operational risks for the contract.

NRI’s Value Co-Creation

NRI regards human capital as the “driving force for value
creation and growth” and positions it as the most crucial
element in the materiality disclosed in April 2023. In
December 2022, we conducted an expert dialogue
focused on human capital. For this dialogue, we invited
Ms. Chiharu Takakura, director and CHRO of Rohto
Pharmaceutical Co., Ltd., who has had an extensive
career in the human resources and human capital fields
both domestically and internationally, and serves on

Link between the Growth Story of NRI and Human
Resource Development
Takakura: I believe that the communication of “NRI’s
Unique Human Capital Management” is of utmost importance to achievement of our growth story. A distinctive
aspect of NRI is its ability to gain insights into future society from a macro perspective. Each individual, while striving for excellence, contemplates and derives macro-levelinsights and recommendations, which I consider to be aunique strength of NRI.
On the other hand, it is also important to maintain a perspective that sees day-to-day activity in people’s lives andwork so that the results of gaining insight into the future do
not stray from the actual work and the actual state of society. This apparent contradiction requires both the macro
insight to envision the future and the micro perspective tounderstand people’s lives. The ability to switch between
these two perspectives while analyzing is essential.

96

Takeshi Hihara

Message from the CEO

Environment: Initiatives Concerning Climate Change - Top-Level Discussion with CDP (November 2022)

97

Management Basis (ESG)

Information Disclosure and Communication

Measures Aimed at Ensuring a Meaningful General Meeting of Shareholders

Dialogue with Shareholders and Investors
NRI’s representative directors (president, senior executives),
CFO, executives in charge of IR, IR Department, executive
in charge of sustainability, and Sustainability Promotion
Department engage in dialogue with shareholders, investment analysts, fund managers, and individuals in charge ofESG, etc.
Through approximately 700 dialogues annually, NRI
responds to investor inquiries and actively initiates conversations to create dialogue opportunities.
The opinions gathered from these conversations areincorporated into meetings of the Senior Management
Committee and the Board of Directors and applied to management. For instance, when formulating the V2030 strategy, feedback received from these dialogues wasconsidered in the decision-making process.

Main themes of dialogue in the fiscal year ended
March 2023
✓P
 rogress and outlook of domestic operations✓S tatus and future plans of overseas operations✓V 2030 framework✓H uman capital✓F inancial strategy

V2030
Growth Story for 2030

To energize the General Meeting of Shareholders and ensure that voting rights are exercised, we perform the following
procedures:• Set the date of the General Meeting of Shareholders on a day that such meetings are not concentrated. In addition to sending out individual notices of convocation of a General Meeting of Shareholders earlier, post the notice on the NRI and Tokyo
Stock Exchange websites prior to sending the individual notices. This effort allows shareholders to have sufficient time toconsider the proposed resolutions for the meeting• The 58th Ordinary General Meeting of Shareholders: Notice released on May 27 Meeting held on June 23 (Notice about
one month before)•S end out a notice of convocation of a General Meeting of Shareholders electronically to shareholders consenting to suchprocedure•D eliver a notice of convocation of a General Meeting of Shareholders in English (summary)•P rovide an opportunity to exercise voting rights by using the Internet system run by a trust bank (a shareholder register
administrator)•P rovide an opportunity to exercise voting rights by using the Voting Rights Electronic Exercise Platform, run by ICJ, Inc.
•H
 old a Management Reporting Session for shareholders after the conclusion of the General Meeting of Shareholders

With the aim of expanding our shareholder and investor base, we are promoting a better understanding of our business activities and strategies for growth through direct and indirect communication.

Main Activities in the Fiscal Year Ended March 2023

Investor Relations
https://ir.nri.com/en/ir.html

Institutional investors andanalysts omestic: In addition to results briefing sessions for each quarter and individual interviews, the Company
D
held small meetings, business information sessions, and sustainability briefings, etc., with executives.
Participated in conferences held in Japan.
 verseas: In addition to holding face-to-face and online overseas roadshows, the Company participatedOin conferences held overseas.

Individual investors

Individual investor information meetings: two were held (online); Total number of participants: 2,824

Holding of Sustainability Briefings

Materiality

2022 Award for Excellence in Corporate Disclosure∙ IT Service / Software Industries∙ Disclosure to Individual Investors(The Securities Analysts Association of Japan)

Number of investors met: 1,056 persons

Management Basis (ESG)

To enhance understanding of NRI’s sustainability management
efforts among investors, the media, and business partners, wehave been holding annual sustainability briefings since the fiscal
year ended March 2018.
		 Starting from the fiscal year ended March 2023, we havechanged the name of the event from “ESG Briefing” to“Sustainability Briefing” to share NRI’s initiatives on a broader
range of topics.
		 In the February 2023 briefing, institutional investors, as well
as ESG ratings agencies / experts, media representatives, andothers, were among the 95 participants.

Nomura Research InstituteCorporate Information / Data

Sustainability Briefing
https://www.nri.com/en/sustainability/management/esg/2018

98

Value Creation Capital

External Evaluation of NRI hareholder questionnaire: Number of respondents—5,814 shareholders out of 23,391 sent (collectionS
rate: 24.9%)

Value Creation

In order to achieve accountability to shareholders, investors, and other stakeholders, NRI is striving to enhance the level of
information disclosure and the timely disclosure of information through activities including those below:• Disclosed the Long-Term Management Vision and the Medium-Term Management Plan (mid-and long-term management
strategy and financial targets, etc.)• Established the Disclosure Committee, which checks the preparing process for, and appropriateness of, disclosed materials• Published our financial results and latest information promptly under the Investor Relations section on our website• Provided a dedicated website for individual investors to enhance information disclosure and understandability and clarity

Shareholders

MTP2025

Providing Appropriate Information Disclosure

NRI’s Value Co-Creation

Active Dialogues with Shareholders and Investors
Message from the CEO

NRI is committed to gaining the trust of shareholders and investors through constructive dialogue, and to receiving an appropriate evaluation from capital markets. For these reasons, taking fair disclosure as our fundamental policy, we are working topromote understanding of both our business and our medium- to long-term strategies for growth, and to expand our shareholder and investor base.

Integrated Report 2023

99

Management Basis (ESG)

Stakeholder Map

Major Stakeholders

Society• Creation of social value via business• Transformation of society via recommendations• Cultivation of the next generation for futuresociety• Transparent and equitable corporate
administration

Clients

Employees

Business Partners

Shareholders / Investors• Provision of valuable services and solutions• Cutting-edge proposals that exceed
expectations• Provision of appropriate quality and services• Co-creation of a thriving future society / ideal
society / safe and secure society

Decent work
• Fair and equitable evaluations and treatment• Contribution to society via work
• Opportunities for learning and growth• Comfortable workplace environment• Mental and physical health• Building and maintaining constructive relationships that allow mutual development• Fair opportunities and transparent / equitableappointment• Sustainability- Compliance with the law and social norms,
consideration of the environment and society(including human rights), etc.

• Improved
corporate value•S ubstantial disclosure of information•E nhancement of sustainability management• Creation of social value via business(value co-creation with clients)- Policy proposals for society and systems,
information and knowledge sharing- Sustainable social infrastructure- Policy suggestions on disaster prevention /reduction and support for disaster recovery• Participation in initiatives• Other social activities• Reduction of CO2 emissions and promotion ofrenewable energy usage (Scope 1 + 2)
• Reduction of Scope 3 CO2 emissions•B uilding relationships where we grow together
and respect each other via business- Business model transformation- Business process transformation-P romotion of shared online services via
business platforms- IT infrastructure transformation- Stable service operation- Equitable quality control• Provision of stable employment and fairtreatment• Job satisfaction• Creation of environment where employees cantake on challenges• Creation of comfortable workplace environment• Cultivation of good human relations• Respect for human rights and compliance withlabor laws

• Building mutual understanding and relationshipsof trust• Honest treatment from an equal position• Non-arbitrary appointment• Sustainability actions
 ransactions according to the law and social-T
norms, collaboration on the environment andsociety (including human rights), etc.

• Engagement with investors via IR activities, etc.
•D isclosure of information(financial / non-financial)•R esponding to requests from external assessment agencies• DX3.0 initiatives (social DX, digital social capital):e-PO box / e-NINSHO, GX League secretariat,
NRI-CTS, etc.
• Engagement with society: Agreement with /action on the Paris Agreement, participation in
global lobbying (joining the WBCSD PACT*1),
top dialogue with external experts (CDP founderchair), holding the Dream Up the Future Forumand other forums•E nvironmental contribution: efforts for achieving
the target of net zero in FY2050• Business model transformation: DX consulting(Dokakani Byun!, Dokokani Mairu,
EARTHBRAIN, etc.), analytics, social DX (individual number card utilization, regional regeneration), D2C, digital finance business• Business process transformation: strategy /work / system consulting / value chain DX (CO2visualization, circular economy platform creation)•C O2 reduction via expansion of shared online
services: THE STAR, BESTWAY• IT infrastructure transformation, stable service
operation: promote the provision of security,
cloud services, and digital trust• Efforts for quality control• Efforts for AI ethics• C&A system*2: fair and equitable assessment
system• Opportunities for growth: substantial training
and goal management system• D&I: proceed with women’s participation /promotion• Work-style reform: improving work from home,health and productivity management, welfare /support program for employees and theirfamilies• Improved engagement: engagement survey,
1-on-1 meetings, MVV dialog• Dialogue with employees: employee (union)
gatherings• Partnership activities: e-partners, f-partner
activities*3, management seminars, partner
dialogue•P rocurement management: promotion of
procurement according to the NRI Group
Procurement Policy, procurement reviews,
order management, payment management,
promotion of compliance•P romotion of sustainability regarding
procurement
Receiving agreements on the NRI Group
Business Partner Code of Conduct, selfassessments (SAQ), collaboration for Net-Zero
Journey*4• Efforts based on shareholder / investor expectations: Enhanced Group governance, operationof Sustainability Committee, incorporation ofsustainability elements in director compensation• Enhanced engagement: Investor interviews,
information for institutional investors and individual investors, sustainability information sessions• Evaluations from external assessment agencies:
DJSI World, CDP Climate Change A List, MSCIAAA, etc.

FY March 2023 Results• Degree of empathy with value co-creation(domestic Group): 64%• Employee engagement score (NRI Payroll): 71• Female opportunity offering rate: 14.3%• Amount of investment in creating and accumulating intellectual capital: ¥13.2 billion

FY March 2023 Results• Rate of consent to the NRI Group Business
Partner Code of Conduct or possessing own
such codes of conduct: domestic Group 63%

NRI’s Value Co-Creation

Expectations of Stakeholders

Society (Including the Global Environment)*1 PACT (Partnership for Carbon Transparency) is a project for visualizing CO2 emissions.
*2 C&A (Challenge & Act) is a system for goal management and growth assistance at NRI.
*3 e-partners are partner companies with a particularly high level of expertise and information technology capability, and f-partners are other outstanding partner companies essential for oursolution business.
*4 Net-Zero Journey is an initiative for reducing Scope 3 emissions and achieving economic growth and a sustainable future together with our business partners, as we head toward net-zeroin the year 2050.

Message from the CEO

Based on the NRI Group’s Code of Business Principles, we strengthen our relationships with diverse stakeholders in Japanand overseas by sincerely listening to their opinions, while governing our own actions and striving to cooperate with everyone
to build sustainable futures. This stakeholder map indicates how we shall meet everyone’s expectations via our relationships
with various stakeholders and the actions of the NRI Group.

Management Basis (ESG)
Corporate Information / Data

Nomura Research InstituteMateriality

Relationship with Materiality

100

Value Creation Capital

FY March 2023 Results• Revenues of business platforms that help toachieve an optimal society: ¥128.5 billion• Revenues related to safety and security toenable a more resilient society: ¥169.8 billion

FY March 2023 Results• Number of cases in which severe risk materializes (reports to regulatory authorities or incidents
of equivalent severity for which the NRI Group is
responsible): 1• DJSI World (Dow Jones Sustainability Indices):
Selection

Value Creation

FY March 2023 Results•O verall investment and spending on measuresfor DX2.0/3.0 that transforms industries andsociety (measurements starts in FY March 2024)•G reenhouse gas emissions reduction rate(base year FY March 2020): Scope 1 + 2 66%
decrease, Scope 3 5% increase•R enewable energy utilization rate: 73%

MTP2025

Example Initiatives of NRI Group

Growth Story for 2030

Relationships with Stakeholders

V2030

Global environment• Reducing risks and creating opportunities
regarding climate change• Conserving and recovering natural capital

Integrated Report 2023

101

Management Basis (ESG)

Through Realization of Strategic Risk Control

Formulating V2030 through Discussions Involving
Outside Directors

Fukami: Standards for bringing up matters for deliberationin the Board of Directors are specified in the approval rules
in order to narrow the focus to the more important matters.
Taking time constraints into consideration, we would needto narrow down the number of matters brought up in the
Board of Directors in order to take discussions into greater
depth.
Ohashi: Rather than having outside directors verify matters that the executive side is well aware of and has thoroughly considered, it might make better use of the Board

human resources between

president’s report at the outset

Japan and other countries drives

Tetsuji Ohashi

global business growth.

Materiality

meetings are energized by the

Yasuo Fukami

Value Creation Capital

I understand that exchanging

Value Creation

Discussions in Board of Directors

Outside Director

MTP2025

Ohashi: Information provided from the executive side is
key to having meaningful discussions within the time limitsof Board of Directors meetings. As you mentioned, thepresident’s report at the beginning of Board of Directors
meetings and the advance explanations from the Board’s
administrative office are extremely helpful. For major issues
such as global strategy, for example, the president’s reportat the beginning of Board of Directors meetings is meaningful because it helps us to understand information that isthe background behind major issues being discussed. The

Growth Story for 2030

Fukami: For our discussion today, I would like to focus
primarily on the NRI Group Vision 2030 (V2030) and our
Medium-Term Management Plan 2023–2025 (MediumTerm Plan 2025), which were announced in April 2023.
Our Board of Directors was heavily involved in the considerations for both V2030 and Medium-Term Plan 2025.

Ohashi: Aside from discussions in the Board of Directors,
I still remember how we went through repeated considerations for V2030, such as setting up more forums forindependent outside officers and the executive side to
exchange views. The outline of V2030 was announced in
April 2022 one year before the official announcement, but
before the announcement of the outline, we engaged in
more in-depth discussions about our environment analysis
and the key issues. After the announcement of the V2030
outline, we had open, candid discussions about

Ohashi: We had candid discussions for V2030 andMedium-Term Plan 2025, but for individual matters being
deliberated, it felt like there was no leeway to add any tothe-point questions or discussions. This is likely a productof all the meticulous preparations by the proposer of thematter for deliberation and the Board of Directors administrative office, but there might be cases among these matters that should be considered in greater depth.

V2030

Atmosphere and State of Operations in the
Board of Directors*1 The president’s report at the beginning of Board of Directors meetings is when thepresident explains issues recognized by the executive side and matters of recentp­ articular concern.
*2 Advance explanations by the Board’s administrative office are when officers in chargeof the Board of Directors administrative office condense the overviews of matters andkey discussion points into single-page explanations to fill information gaps between
the executive side and the Board of Directors.

Fukami: Do you have any issues with how the Board of
Directors operates, or is there anything you would like to
see improved?

NRI’s Value Co-Creation

Talking about GovernanceFukami: Having the appropriate information provided fromthe executive side is key to devising deeper involvementby the Board of Directors. I pay particular attention to thepresident’s report at the beginning of Board of Directors
meetings*1 and the advance explanations by the Board’s
administrative office*2.

preparation work for advance explanations by the administrative office encompasses everything up to producing
materials that are easy to understand. This must be quite
painstaking, but it is also very helpful to us.

Message from the CEO

Evolve GovernanceMedium-Term Plan 2025 which had been scrutinized andformulated by the executive side.
It is ideal that both the Board of Directors and the executive side discuss the growth strategies of Medium-Term
Plan 2025 in greater depth. In my opinion, open-mindeddiscussions such as those are one defining trait of NRI.

Chairperson of the Board of Directors
Management Basis (ESG)
Corporate Information / Data

102

Nomura Research InstituteIntegrated Report 2023

103

Management Basis (ESG)

Nomura Research InstituteIntegrated Report 2023

Corporate Information / Data

104

Ohashi: I hope that NRI will continue to drive digital transformation (DX) in Japan. To do that, it will be important tohone our own strengths. We are not aware of some ofthese strengths on our own. Therefore, I hope you canalso use outside perspectives as a reference. For employees, I would like them to work dedicatedly toward achieving business plans and have a tough-minded, no-excuses
mentality.
This might be somewhat off-topic, but a researcher
from the old Nomura Research Institute once visited theuniversity I attended to introduce the Company’s initiatives.
The researcher reported research results with a caseexample of a tourist area where littering was a problem,
along with the reasons why littering occurs, characteristicsof places where it is prone to occurring, and other details.
What I found really impressive was how far they went in
exploring the actual root causes, such as how they built anobservation shed in a place that would not stand out andspent a half-year observing, and how they analyzed thepsychology of the tourists down to the fine details. It might
be that the characteristics of handling work in a meticulous fashion has simply been passed down through thegenerations.
I hope that we can all continue to grow as a company
and as individuals, and contribute even more to the development of communities and society, by passing down the
NRI DNA into the future and honing our strengths.

Management Basis (ESG)

Fukami: In addition to increasing our capabilities, I think
we will need to further hone our strengths to successfully
achieve Medium-Term Plan 2025. What do you see
as NRI’s strengths from your standpoint as an outside
director?

Ohashi: This might be different for each company, but I
consider it important to accurately evaluate attempts at
new things even if they end in failure. At Komatsu, employees involved in the launch of their Smart Construction*3
worked on it with feelings of excitement that major change
was afoot. They believed that something of interest might
be about to happen. This feeling of excitement turns into
motivation that drives the person to hone their skills.

Fukami: Please share your expectations for NRI from yourperspective as an outside director.

Materiality

Strengths of NRI

Fukami: We excel at research and development in areas
where findings can be utilized over the short term, butwhat should we keep in mind for our ongoing efforts
toward long-term topics?

Expectations for NRI

Value Creation Capital

Ohashi: It is important to have everyone aligned in thesame direction by including overseas employees in the
sharing of values and setting clear priorities on the path
toward successfully achieving Medium-Term Plan 2025. If
we can do that, we will likely be stronger as an organization and gain far greater capabilities to do business.

Ohashi: Validity of data and traceability of supply chainsare important for carbon footprints (total greenhouse gas
emissions from production to disposal). Eliminating the riskof tampering with greenhouse gas emissions data, being
able to track greenhouse gas emissions data in transactions between various companies, and using the latest
technologies such as blockchain—these are all topics thatare tough for companies to handle on their own. We
should be able to combine consulting with IT solutions andget various industry players involved while harnessing ourstrengths in projects to build platforms that benefit society.
Laying the groundwork for medium- to long-term
growth is also important, which is something that My
Number-related business applies to. In manufacturing,
future-oriented moves are made on purpose for some
topics even without the assurance that any products will
result from them in the next five to 10 years.

*3 Solution that visualizes entire job sites from measurements to inspections by organically linking all the various types of data in construction and production processes
through ICT to create safe, highly productive, and smart job sites of the future.

Value Creation

Fukami: The four pillars of our growth strategy in MediumTerm Plan 2025 are core areas, DX evolution, global, andFukami: I understand your point that exchanging humanresources between Japan and other countries and clarifying career paths are key points that drive sustained growthwhen doing business internationally through acquisitionsof technologies and markets.

Fukami: In recent years, we have been working on creating
digital social capital that contributes to solutions for social
issues. Under the theme of helping to preserve the global
environment, we are developing a carbon tracing system(NRI-CTS) that tracks emissions of greenhouse gases.

MTP2025

Medium-Term Management Plan 2023-2025

Ohashi: We are emphasizing initiatives that bring about
deeper mutual understanding in our global business efforts
such as assigning human resources from Japan to overseas subsidiaries. One such experience was when business at an overseas subsidiary was not proceedingaccording to our scenario. We sent over a team of expert
problem-solvers from Japan who not only resolved theissue, but also built deeper trust with the overseas subsidiary. We were able to strengthen our bonds with that subsidiary by getting them to believe in this headquartersfunction and these people. From the standpoint of governance toward overseas subsidiaries, it is also insufficient
to only send members of the Board over from Japan.
Direct practical experience overseas is essential as a process to develop human resources who can be responsible
for overseas business in its entirety.

It advances the professional growth of human resources. If
you do not give up, that itself is success. Once you overcome failure, future success lies ahead.
Growth Story for 2030

Fukami: You make a valid argument. I do intend to continue working toward improving the operation of our Boardof Directors.

Fukami: Globalization is advancing the manufacturingindustry. What sort of initiatives are you deploying there?

V2030

Ohashi: For the Board of Directors, I think it is important
to engage in discussions and exchange views from a
broader perspective, not only for the function of supervising the executive side, but also for medium- to long-term
growth. It would be a good idea to seek even more
improvement by engineering ways to liven up discussions
and bring out more diverse perspectives and opinions. We
have been made sufficiently aware that the executive sideis engaging in close considerations, so the Board could
operate in a more meaningful way by discussing the policy
and direction of the Company for agenda items with outside directors in the stage before these are incorporated
into separate individual matters, as was done in the considerations for global strategy.

Ohashi: My focus is on global. Digital transformation (DX)is still flourishing in Japan, but business opportunities willdiminish going forward as the population shrinks. Taking
business globally is a proper approach from a long-term
perspective. The key to beating out the global competition
lies in how a company shows its strengths. You also need
to be clear about how you intend to compete. One example would be by acquiring overseas companies possessing
technologies and expertise not available in Japan.

Ohashi: NRI has grown continuously, and I think thestrength supporting that is Con-Solution. Having a highadded-value consulting function gives us an advantage
over system integrators with weak consulting functions.
NRI’s strength is in sorting out the issues through discussion with clients, being able to make proposals that leverage insight into the future, and turning those proposals
into reality with high-level systems architecture capabilities.
In other words, Con-Solution.
For sustainability-related topics in particular, I admire
how NRI is going beyond the desires of individual companies for greenhouse gas reductions or items of that nature,and is working toward topics that help to increase the productivity of society as a whole. I also believe that NRI cancontinuously create new value and make proposals that
accelerate solutions for social issues.

NRI’s Value Co-Creation

Fukami: The knowledge of our outside directors serves
as input for matters considered by the executive side.
Particularly for issues that the executive side should bemade aware of, pointing things out that they do not notice
can improve both the quality and efficiency of their considerations. The standards for narrowing down matters tobring up to the Board might not be purely financial.

management. Among these four, which are you particularly focusing on?

Message from the CEOof Directors’ time to leverage outside directors’ knowledge
to gain multiple standpoints on matters they have little
internal experience with. I would say that delegating
authority to the executive side, including changes to thestandards for bringing matters up in the Board of Directors,
is an action we should consider. Behind this recommendation to delegate authority to the executive side is the trustthat we outside directors have in them.

105

Management Basis (ESG)Interview with an Outside Audit & Supervisory Board Member

We will take on new challenges while controlling risk,
development.
Kenkichi Kosakai

Outside Audit & Supervisory Board Member

Materiality

Value Creation CapitalManagement Basis (ESG)

Corporate Information / Data

Nomura Research InstituteAs an outside Audit & Supervisory Board member, I think it
is important to have an objective, neutral perspective without being bound to traditional practices in the IT industry.
Audit & Supervisory Board members are typically required
to play a defensive role to protect a company’s businessvalue from damage by auditing the legality and validity of its
business activities. In addition to this defensive role, we are
expected to play an offensive role of increasing NRI’s

One pillar of our strategy in the Medium-Term Management
Plan completed in the fiscal year ended March 2023 was toexpand NRI’s global business. Advance explanations about
key strategies such as global strategy were provided to outside directors multiple times before Board of Directors
meetings. These advance explanations achieved their purpose. We were able to engage in discussions from multifaceted perspectives in Board of Directors meetings. Initiallythere was also some cautiousness about expanding global
business, but we then proceeded with a series of attentive
deliberations about the multiple opinions that were presented. I think that not tapping the most cutting-edge IT
services market in the world in North America is a majorrisk. Having understood that it is a tough market where wewould be exposed to intense competition, I consider it highlymeaningful that we take that challenge. The fact that we
ultimately reached a unanimous resolution on the acquisitionof Core BTS, which we ended up acquiring in December
2021, was proof to me that the Board of Directors is functioning correctly.
I believe that through NRI’s growth thus far, the foundation for business rules, financial standing, and governancesystems has been established. There have been quite a few
conservative initiatives to this point, but I think it’s time totake on new future-oriented challenges and take new risks.

Value Creation

106

Expectations for Outside Audit & Supervisory
Board Members

V2030 and Global Strategy

MTP2025

NRI’s Audit & Supervisory Board is comprised of two fulltime Audit & Supervisory Board members and three outside
Audit & Supervisory Board members who engage in spirited
discussions from diverse perspectives, based on each of
their own respective experiences. Comprised of memberswith experience as an accountant, attorney, and in corporate management, the NRI Audit & Supervisory Board
boasts a wealth of diverse experience.
Based on three audits—the Audit & Supervisory Board
Member Audit, Accounting Auditor Audit, and Internal
Audit—joint meetings are held with Audit & Supervisory
Board members, accounting auditors, and the Internal Audit
Department in attendance. The aim of these meetings is tostrengthen the quality of audits and make them more efficient. Audit & Supervisory Board members, accounting
auditors, and the Internal Audit Department conduct audits
according to their own respective goals, but in some cases
they are auditing the same departments. In other words,
there is concern from the perspective of the departments
being audited that they are being subjected to similar investigations and verifications being conducted separately. We
are working to make the audits more efficient and havethem audit what is appropriate by getting these three entities to work together beforehand.

Since risks become more diverse and complex as theenvironment surrounding a company changes, we set thekey topics after considering a variety of issues. Some examples of topics are information security, strengthening governance and controlling risks for Group subsidiaries including
those overseas, bolstering human capital, production innovation, and Medium-Term Management Plan progress. NRI
is growing with the goal of ¥1 trillion in sales. When a company grows larger, sometimes new aspects of issues to beresolved will appear. In manufacturing, we are examining
capital expenditures for new businesses and rationalizations, but I think the source of NRI’s value is its human­capital. We should take an in-depth look at what kind ofinvestments will lead to future increases in business value
and turn those into actions.

Unfettered, open-minded discussions are taking place in the
Board of Directors and desires learned through effectivenessevaluations are being addressed. If I had to request something in particular, it would be that more diverse opinions
could be presented by the internal members of the Board.
Each individual member of the Board likely has their own
individual opinion, and even when matters that have been
sufficiently considered on the executive side are brought up
in the Board of Directors, they should be able to discuss
those even further from the perspective of a Board member.
Next, I would like NRI to play a central role in leveraging
DX to overcome social issues. Although some of NRI’s business activities are through the activities of clients, what NRI
does directly links to solutions to social issues. Keep
increasing the value of NRI’s existence. Tackle DX withenough fortitude to think of it as your own responsibility thatJapan’s DX is lagging behind that of other countries, andmake things happen.
Last, you should hone your ability to do new things andyour ability to control risk while developing business. In my
opinion, NRI’s strength is that we are loaded with first-classpersonnel who earn clients’ unwavering trust by being rocksolid and meticulous in their work. We should continue tohone this strength, but we will also need to take some risks
in order to further grow and develop our business. The
direction that NRI should take is expressed concisely by our
vision statement, “Envision the value, Empower the change.”
Make it your goal to further increase the value of NRI bycontinuously taking on new challenges.

Growth Story for 2030

Role and Focal Topics of the Audit & Supervisory
Board

Expectations and Aspirations for NRI

V2030* These are positioned under the meeting bodies stipulated in NRI’s organizational rules.
For example, committees such as the Investment Advisory Committee and Business
Evaluation Committee are under the Business Development Committee.

NRI’s Value Co-Creationand contribute to business

I am aware that we have shareholders and investors whobelieve that we have even more room to grow domesticallyand thus should focus on our domestic business where we
excel. We must certainly restore our business performancethat had been slumping in the short term, but NRI has agood balance of shareholder returns and growth investment.
Therefore, it would be better to go all-in on strategies thatshow confidence in our ability to add value to our company
over the medium to long term. For a business to be successful, all of the people involved in the business must be
passionate, not just the managers. Be passionate, lead yourbusiness to success, and engage in work that excites you.

Message from the CEO

business value. In other words, it feels like we need toexpress a broad range of candid opinions about management overall. My intention is to point things out and give
advice openly and candidly based on my own knowledge
as a manager who gained experience in the world outsideof NRI.
Aside from the Board of Directors and Audit &Supervisory Board, we sit down for exchanges of views withthe representative director twice per year. I consider it a very
meaningful arrangement since the opinions expressed freely
there help to open up deeper communication with us. The
ability to express opinions candidly, supported by arrangements such as these, seems to be a distinctive trait of NRI.
For the defensive role of controlling risk, we have established committees* for various topics, and they operate incombination with the normal reporting lines. As a result, I
believe that we have a solid handle on risk control. However,
the risks that we must handle are evolving as societychanges. Additionally, we must scrutinize the risks involvedin key business management matters such as acquisitions(M&A). Utilizing my outside perspective, I will make contributions to controlling risks such as these.

Integrated Report 2023

107

Management Basis (ESG)

NRI’s Corporate GovernanceCorporate Governance Structure

For the Board of Directors and the Audit & Supervisory Board, see P.112–113
For Internal Controls, Corporate Ethics, and Compliance, see P.122–123(As of July 1, 2023)

General Meeting of Shareholders
Appointment / Removal of Audit &Supervisory Board Members

Appointment / Removal of Board Members

Appointment / Removal of
Accounting Auditors
ReportNomination Committee
Compensation Committee

Executive

Non-executive

Basic Approach to Corporate Governance(1) Cooperation with stakeholders

Outside Directors and Outside Audit &Supervisory Board Members

NRI respects the interests of stakeholders and cooperates with them in an appropriate manner. In particular, with regard toshareholders, NRI takes the proper measures so that rights are substantially secured, in addition to ensuring substantial
equality.

* Independent Directors and Independent
Audit & Supervisory Board Members

*

※

※

※

Audit

Selection / Supervision

Accounting Audit

Internal Audit
Department

President
Senior Management Committee
Integrated Risk Management Committee(2) Information disclosure and communication

Compliance Committee

Director in charge of
Risk Management
Director in charge of ComplianceBusiness Promotion Committee

Sustainability Committee

Human Resources Development Committee

NRI is strengthening its management monitoring functions based on the Audit & Supervisory Board System through theappointment of independent directors and Independent Audit & Supervisory Board members, as well as the establishmentof bodies that are mainly composed of independent directors appointed to advise the Board of Directors.

System Development Committee
Disclosure Committee
Crisis Management Committee

Business Divisions
Advise,Support,ManageCorporate Planning Department
Integrated Risk Management
SectionAssign a Representative
Department for Each Risk

Advise,Support,ManageRepresentative Departments

Divisions /Departments
Advise, Support,
Monitor

MTP2025(3) Corporate governance system

Business Development Committee

Risk Management Supervisory
Department

Growth Story for 2030

DX Business Promotion Committee

Headquarters

V2030

NRI discloses information as stipulated by laws and by the regulations of the Tokyo Stock Exchange, and information thatassists its stakeholders in understanding NRI and its operations properly, in a timely, accurate, and fair manner, to securetransparency as well as to engage in constructive dialogue with its shareholders.

*

NRI’s Value Co-Creation*
Directors and Audit &Supervisory Board Members

Accounting Auditors

Audits Department

Management Department
within Each Division

NRI Corporate Governance Guidelines
https://www.nri.com/en/company/governance#guidelines

Audit & Supervisory Board (Audit &Supervisory Board Members)

Board of Directors (Members of the Board)

Message from the CEO

NRI works to enhance its corporate governance based on the recognition that corporate governanceconsists of mechanisms for transparent, fair, timely, and accurate decision-making based on the perspectiveof stakeholders, including society, clients, employees, business partners, and shareholders.

Subsidiaries

Main Corporate Governance Efforts Since Listing
2002

Introduced an executive officer system to assist in separating management and execution functions
Reduced the number of members of the Board of Directors to within 20 and also appointed Independent Outside Directors
Increased the number of Independent Outside Audit & Supervisory Board members from one to two

Roles and Activities of Committees
Name of the organization

Head of the organization
Vice Chairman, Member of the Board
Yasuo Fukami
Audit & Supervisory Board Member
Takuhito Sakata

Established the Compensation Committee comprising outside experts to enhance transparency in regard to executive compensation

Nomination Committee

2006Reduced the number of members of the Board to 15 or lessCompensation
Committee

2008

Initial release of the Long-Term Management Vision: Vision2015
Took part in an electronic voting platform for institutional investors as part of efforts to maximize opportunities for shareholders to
exercise their voting rights

Senior Management
Committee

The committee meets in principle to deliberate on important issues involving corporate management in order toachieve consistent business execution and decision-making.

2010

Appointed non-executive director to chair the Board of Directors to separate supervisory and execution functions

Integrated Risk
Management Committee2012 ewly established the Integrated Risk Management Supervisory Department to appropriately manage any risk that may ariseNin the course of business execution

Compliance Committee

Based on instructions given by the president, the committee deliberates on important issues concerning
risk management, including system failure, information security, and business continuity.
The committee deliberates on the issues concerning the promotion of ethical and compliance management
covering the improvement of structures to comply with corporate ethics and laws and the prevention of violation
reoccurrences, based on instructions given by the President.

2015

Increased the number of Independent Outside Directors from two to threeEstablished the Independent Executives Meeting consisting of Independent Outside Directors and Independent Outside Audit & Supervisory
Board members
Formulated the NRI Corporate Governance Guidelines
Revised the NRI Group’s Code of Business Principles completely

2016

Initial release of the Medium-Term Management Plan (from FY March 2017 to FY March 2019)
Implemented the evaluations of the Board of Directors’ effectiveness2017

 ewly established the Nomination Committee, comprising mainly independent directors
NChanged the main members of the Compensation Committee from outside experts to independent directors

2018 bolished stock option planAIntroduction of Restricted Stock Compensation Plan as a medium- to long-term incentive for members of the Board

2022

In order to clarify the roles of members of the Board and senior managing directors, the president and other positions with the titles of­members of the Board and senior managing directors have been consolidated into senior managing directors

Nomura Research InstituteSustainability Committee

The committee deliberates important matters related to sustainability, based on the instructions of the president & CEO.

DX Business Promotion
Committee

Based on the instructions given by the president, the committee deliberates on important issues concerning
promotion of the digital transformation (DX) business.

Human Resources
Development Committee

The committee deliberates on important issues concerning development and training of employees,
based on instructions given by the president.

Business Development
Committee
System Development
Committee

The committee deliberates on important issues concerning investments in research and development, planned
businesses, and investments, such as the acquisition of securities, based on instructions given by the president.
The committee deliberates on important issues concerning proposals and quotations to clients, as well as on theirdevelopment and release of IT solution-related systems, based on instructions given by the president.
The committee deliberates on important issues concerning the disclosure of the Annual Securities Report andother documents, based on instructions given by the president.

Disclosure Committee
Crisis Management
Committee

Based on instructions given by the president, the committee will promptly develop and support systems at the time ofa crisis, including natural disasters, infectious diseases, system failure, and information security emergencies.

Business Promotion
Committee

The committee involves administrative departments from the headquarters and management departments within
business divisions and seeks to establish highly effective and efficient internal controls.

Vice Chairman, Member of the Board
Yasuo Fukami
Vice Chairman, Member of the Board
Yasuo Fukami
President & CEO
Chairman, Member of the Board
Representative Director
Shingo Konomoto
Senior Corporate Managing Director
Takeshi Hihara
Senior Corporate Managing Director
Takeshi Hihara
Senior Executive Managing Director
Member of the Board
Representative Director
Hidenori Anzai
Senior Executive Managing Director
Hiroshi Masutani
Senior Executive Managing Director
Member of the Board
Representative Director
Hidenori Anzai
Senior Corporate Managing Director
Yoshihiko Sunaga
Senior Corporate Managing Director
Susumu Nishimoto
Senior Corporate Managing Director
Yoshihiko Sunaga
Senior Executive Managing Director
Member of the Board
Representative Director
Hidenori Anzai
Senior Corporate Managing Director
Yoshihiko Sunaga

Integrated Report 2023

Corporate Information / Data

2005

Management Basis (ESG)

Audit & Supervisory
Board

Materiality

 ormulated the NRI Group’s Ethical Code (revised to the NRI Group’s Code of Business Principles on 2010) and the NRI Group Employees’
F
Code of Business Conduct

Value Creation Capital

2003

Value Creation

108

Objective and authority
Conduct the fundamental decision-making that is the basis for the Company’s business execution and oversee theexecution of duties by members of the Board.
Discuss and decide auditing policies and other important matters related to auditing and formulate and express
audit opinions.
The majority of the members shall be Independent Outside Directors. The committee deliberates on executive
appointment matters related to directors, Audit & Supervisory Board members, the CEO, and other Board members,from the standpoint of fairness and transparency.
The majority of the members shall be Independent Outside Directors. The committee deliberates on the system andstandards of executive compensation from the standpoint of fairness and transparency.

Board of Directors

109

Management Basis (ESG)

Board of Directors and Advisory Committees

Main Contents Deliberated on by the Board of Directors (April 2022–March 2023)

NRI has established a Nomination Committee and a Compensation Committee in order to ensure the independence andobjectivity of the functions of the Board of Directors, as well as the ability of the Board to explain to shareholders. The majorityof each committee are independent directors.
Nomination Committee

Meetings

3 meetings

3 meetings

Main contents

Appointment of candidates for members of the Board and Audit &Supervisory Board members, and appointment of the president
and other senior managing directors, and managing directors andother executives
Progress and whether revisions are needed in the selection process in the succession plan for president, evaluations of president
successor candidates, and whether or not candidates should bereconsideredDeliberation on the composition of the Board of Directors based on
how the Board should function and its role eliberation on the compensation system for members of theD
Board, Audit & Supervisory Board members, senior managing
directors, and managing directors and other executives and on
levels of compensation, geared toward achieving the aims of
V2030 and Medium-Term Plan 2025
Deliberation on decision-making policy and revisions of rules forcompensation for directors
Verifying the suitability of basic compensation, bonuses, and stockbased compensation for directors
Deliberation on payment of director compensation

Officer appointment matters
Reports from each committee
Matters related to directors’ compensation
Human resources strategy (systems / employee engagement)

Sustainability

Initiatives by Sustainability Activities Committee

Policy on finance, reporting and IR

Financial strategy
Status of annual and quarterly reporting
Status of monthly results
Policy on surplus and dividends
Capital policy
Annual Securities Report
Status of funds and finances
IR status

Corporate governance,risk management and internal controls

Evaluation of efficacy of Board of Directors
Risk management status
Board of Directors operation policyGroup governance (Japan and overseas)

Audit & Supervisory Board members,internal auditing report

Audit plan by Audit & Supervisory Board members
Report by Internal Audit Department (organization under direct supervision of the president)

Business execution report

Quarterly report on business execution status
Main agenda items of Senior Management Committee meetings (business execution)

Other

Client satisfaction survey

Initiatives by Value Co-Creation Committee

Succession Plan for President

Value Creation

The next management team is formed at NRI by selecting talent from among the younger management ranks to be thenucleus of the next generation of management. The process for selecting the successor to the president is then based on
selection from among these individuals. NRI’s Nomination Committee considers and deliberates on the specific succession
plan for president and checks on the progress of this plan whenever necessary while also evaluating the next generation ofcore management personnel to identify successors to the president. Those found to be most suitable to drive the healthy,
sustained growth of NRI and increase its value over the medium to long term are then reported as president successor
candidates to the Board of Directors.
The practice of having the next-generation management team including the successor president take over management asa group is helpful for facilitating a smooth management transition without losing any continuity in the change of presidents.

MTP2025

Executive appointment matters(including remuneration) andpersonnel matters for employees

Growth Story for 2030

Long-Term Management Vision
Business plan (budget formulation)
Domestic and foreign acquisitions and investment
Medium-Term Management Plan
Client proposal projects
Software investment / development
Business Partner Policy

V2030

Positioning

The Compensation Committee consists of a majority of independent directors and was established to ensure the independence,
objectivity, and explanatory power of the functions of the Board of
Directors regarding directors’ compensation.

Main Contents
Management / business strategy

Compensation Committee he Nomination Committee is composed of a majority of indepenT
dent directors. It was established to ensure the independence,
objectivity, and explanatory power of the functions of the Board of
Directors regarding the appointment of officers such as membersof the Board, Audit & Supervisory Board members, the president
and other senior managing directors, and managing directors.

NRI’s Value Co-Creation

Status of Advisory Committees
Message from the CEO

NRI has delegated considerable authority and responsibility for business execution to senior managing directors andother directors. The Board of Directors is exclusively responsible for fundamental decision-making that is the basis for theCompany’s business execution and for overseeing the execution of duties by members of the Board. The Audit & Supervisory
Board members and Audit & Supervisory Board oversee the execution of duties by members of the Board.
Senior managing directors and managing directors appointed through a resolution by the Board of Directors are responsible
for the execution of business based on policies adopted by the Board. NRI holds a Senior Management Committee attended
by the president, representative directors, and senior managing directors once a week and deliberates on the important issues
involving corporate management in order to coordinate our business activities and build consensus in executing business
operations.

Annual Schedule of the Board of Directors
2022
April–June

2023
July–September

October–December

January–March

Materiality

Management /business strategy (including sustainability)
Executive appointment matters(including remuneration) andpersonnel matters for employees

Management Basis (ESG)

Policy on finance, reporting and IR
Corporate governance,risk management and internal controls
Audit & Supervisory Board members,internal auditing report
Corporate Information / Data

Business execution report

Other(Independent executive committee)

110

Nomura Research Institute

Value Creation Capital

Board of Directors

Integrated Report 2023

111

Management Basis (ESG)

System of the Board of Directors and the Audit & Supervisory Board

The Board of Directors has a well-balanced composition of executive directors, non-executive directors, and outside directors.
The Board of Directors includes no more than 15 members of the Board, taking into consideration the balance of experience in and the Company’s businesses, corporate management, risk management, corporate finance, and overseas businesses, as well as gender, nationality, professional experience, and accumulated knowledge in light of the medium- tolong-term management strategies.

To ensure independence, more than half are outside Audit & Supervisory Board members.
Currently, there are five Audit & Supervisory Board members, including three Outside Audit & Supervisory Board members.
Two or more Independent outside Audit & Supervisory Board members are appointed.
One or more persons with substantial knowledge regarding finance and accounting are appointed as Audit & Supervisory
Board members.
To ensure that audits are effectively conducted by the Audit & Supervisory Board members, the Audit Department has been
established to support the work of the Audit & Supervisory Board members.

Structure of the Board of Directors and the Audit & Supervisory Board (As of June 23, 2023)
GenderName & Position= Male= Female* After assuming the post on June 17, 2022

Expectations for Leveraging Knowledge
Related to Strategy

Executive /Outside /Independent

Terms of Office

Executive

8 years

Experience and Qualifications inSpecialized Fields
Specialized Fields

Innovation

Global

HR Management

Corporate
Management

Business /Corporate
Operations

Attendance
Qualifications

CEO

He possesses a wide range of experience in business execution and achievements in the areas of financial IT solutions and industrial IT
solutions, as well as corporate headquarters, in addition to his global business experience in the regions of Asia and Europe. In addition,
currently from the standpoint of non-executive member of the Board, he is putting his efforts into the appropriate operation and vitalization
Board of Directorsof the Board of Directors meetings as chairperson. As chairperson of the Nomination Committee and the Compensation Committee, he has
Attended 14 of 14 Meetings
also been working to establish and implement a succession plan and to ensure objectivity and fairness with respect to the appointment ofmembers of the Board, the determination of remuneration, etc. NRI has appointed him with the expectation that the experience andknowledge nurtured through his career can be utilized in the management of NRI.

Business / Corporate Affairs /QualityNon-executive

1 yearFinance / M&A

Director of
securities
company

He served as senior managing director of Nomura Holdings, Inc., executive vice president of Nomura Securities Co., Ltd., etc.
He possesses long-standing experience in the securities industry, which is one of the Company’s major business areas. In addition,
Board of Directors
he possesses abundant experience and achievements in global business gained through being responsible for managing Nomura Holding
Attended 11 of 11 Meetings
America Inc., an overseas subsidiary of Nomura Holdings Inc., etc. NRI has appointed him with the expectation that the experience andknowledge nurtured through his career can be utilized in the management of NRI.

Executive

2 years

Business

IT Solutions

He possesses a wide range of experience in business execution and achievements in the areas of consulting, financial IT solutions,Board of Directors
industrial IT solutions and IT platform services. NRI has appointed him with the expectation that the experience and knowledge nurtured
Attended 14 of 14 Meetings
through his career can be utilized in the management of NRI.

Executive

2 years

Business / Corporate Affairs /Quality

IT Solutions /Corporate
Affairs

He possesses a wide range of experience in business execution and achievements in the areas of financial IT solutions, industrial
Board of Directors
IT solutions and IT platform services, as well as corporate headquarters. NRI has appointed him with the expectation that the experience
Attended 14 of 14 Meetingsand knowledge nurtured through his career can be utilized in the management of NRI.

Senior Executive
Managing Director
Member of the Board

Executive

1 yearBusiness

IT Solutions

He possesses a wide range of experience in business execution and achievements in the areas of consulting, industrial IT solutions, andIT platform services. In addition, he has been contributing to promoting global strategies mainly in the area of industrial IT solutions such
Board of Directors
Attended 11 of 11 Meetings as overseas M&A. NRI has appointed him with the expectation that the experience and knowledge nurtured through his career can beutilized in the management of NRI.

Shinoi Sakata

Non-executive
OutsideIndependent

ESG / SDGs /Human Resources Diversity

Listedcompany
executive

She, as a researcher and a person with responsibilities in the area of safety in the chemical industry, has been involved in the activities
of evaluating technology strategies of corporations from the perspective of sustainability for many years. In addition, she has served tostrengthen the management supervision function for the Company by deepening the discussion about ensuring sustainability, diversity, andBoard of Directors
human resources development at the meetings of the Company’s Board of Directors, the Nomination Committee, and the Compensation
Attended 14 of 14 Meetings
Committee of NRI. NRI expects her as outside director to apply her abundant experience and excellent understanding in the supervisionof the management of the Company from an objective standpoint, as a member of the Company’s Board of Directors, the Nomination
Committee, and the Compensation Committee.

Yo Akatsuka
Vice Chairman,
Member of the Board

Ken Ebato
Senior Executive Vice President,
Member of the Board,
Representative Director

Hidenori Anzai
Senior Executive
Managing Director
Member of the Board
Representative Director

Shuji Tateno

Member of the Board

Member of the Board

Audit & Supervisory
Board Member (full-time)

Yoichi Inada
Audit & Supervisory
Board Member (full-time)

Kenkichi Kosakai
Audit & Supervisory
Board Member

Audit & Supervisory
Board Member

Yasuko Takazawa
Audit & Supervisory
Board Member

Non-executive
OutsideIndependent

New election

Corporate Management

ListedcompanyCEO—

3 years

Governance and Internal Control /Business

IT Solutions—

New election

Governance and Internal Control /Business / Quality

IT Solutions /Corporate
Affairs

OutsideIndependent

2 years

Corporate Management

OutsideIndependent

1 yearGovernance and Internal Control /Corporate Accounting

OutsideIndependent

1 yearGovernance and Internal Control—

Audit and Supervisory
He possesses a broad range of experience and achievements in the execution of business in the areas of industrial IT solutions andCommittee
Attended 18 of 18 meetings IT platform services, as well as the human resources development function of the NRI Group. NRI has appointed him with the expectationthat the experience and knowledge nurtured through his career can be utilized in the audit of the execution of duties by NRI directors.
Board of Directors
Attended 14 of 14 Meetings—

He possesses long-standing experience in business execution and achievements in the area of industrial IT solutions and corporate
headquarters. NRI has appointed him with the expectation that the experience and knowledge nurtured through his career can be utilized
in the audit of the execution of duties by NRI directors.

Audit and Supervisory
Committee
Attended 18 of 18 meetings
Board of Directors
Attended 14 of 14 Meetings

He has been involved in the management of Mitsubishi Chemical Holdings Corporation (currently Mitsubishi Chemical Group Corporation)and other Mitsubishi Chemical Holdings Corporation group companies for many years. He possesses work experience in the accounting
and finance department, and experience as CEO. NRI has appointed him with the expectation that he will utilize his abundant experienceand excellent understanding concerning corporate management gained throughout his career, in the auditing of the execution of NRI’s
Members of the Board from an objective standpoint.

CPA

Audit and Supervisory
Committee
Attended 13 of 13 meetings
Board of Directors
Attended 11 of 11 Meetings

He serves as director and managing partner of an audit firm, and possesses experience in the management of an audit firm and longstanding experience as a certified public accountant. NRI requests his election as Outside Audit & Supervisory Board member to utilize
his abundant experience and excellent understanding concerning finance and accounting, which he has gained through his career, in
the auditing of the execution of business by NRI’s directors from an objective standpoint.

LawyerAudit and Supervisory
Committee
Attended 13 of 13 meetings
Board of Directors
Attended 11 of 11 Meetings

She has many years of experience working in corporate legal departments and as a lawyer. NRI requests her election as Outside Audit &Supervisory Board member to utilize her abundant experience and excellent understanding concerning corporate governance andrisk management, which she has gained through her career, in the auditing of the execution of business by NRI’s directors froman objective standpoint.

Listedcompany vicepresident /CFO

Listedcompany
executive

He has led the management of ASAHI KASEI CORPORATION for many years, advancing strategies by means of business portfolio management, human resources development, and research and development to drive the growth of the ASAHI KASEI Group. NRI expects him as
outside director to apply his abundant experience and excellent understanding in the supervision of the management of the Company froman objective standpoint, as a member of the Company’s Board of Directors, the Nomination Committee, and the Compensation Committee.

Concept of Skill Categories

112

Nomura Research InstituteCorporate Information / Data

Naruhito Minami

Corporate Management

Management Basis (ESG)

Takuhito Sakata

2 years

ListedcompanyCEO

Materiality

Hideki Kobori

He has led the management of Komatsu Ltd. for many years, advancing the growth of the company through innovation including digitalization at construction sites. In addition, he has served to strengthen the management supervision function for the Company, with his broad
and accurate perspective on corporate management provided at the meetings of the Company’s Board of Directors, the Nomination
Board of Directors
Attended 14 of 14 Meetings Committee, and the Compensation Committee of NRI. NRI expects him as outside director to apply his abundant experience and excellent
understanding in the supervision of the management of the Company from an objective standpoint, as a member of the Company’s Boardof Directors, the Nomination Committee, and the Compensation Committee.

Non-executive
OutsideIndependent

Value Creation Capital

Tetsuji Ohashi
Member of the Board

3 years

Value Creation

4 years

Vice Chairman,
Member of the Board

MTP2025

Non-executive

IT Solutions /Corporate
Affairs

Growth Story for 2030

Yasuo Fukami

Corporate Management

V2030

He has been responsible for the NRI Group’s management as president & CEO since 2016 and possesses abundant experience andachievements concerning the management of the Company. In addition, he has been remarkably contributing to the maintenance and
Board of Directors
improvement of the corporate value of the Company, especially by achieving the profit targets of the Medium-Term Management Plan
Attended 14 of 14 Meetings(fiscal 2019 to fiscal 2022) one year ahead of the expected timeline. NRI has appointed him with the expectation that the experienceand knowledge nurtured through his career can be utilized in the management of NRI.

Shingo Konomoto
President & CEO
Chairman, Member of the Board
Representative Director

Reason for Appointment

NRI’s Value Co-Creation

Structure of the Audit & Supervisory Board
Message from the CEO

Structure of the Board of Directors

P.114

Integrated Report 2023

113

Management Basis (ESG)

Compensation for Members of the Board and Audit & Supervisory Board Members
Concept of Skill Categories

Compensation System for Members of the Board• In the interest of enhancing business results, the compensation system emphasizes connections to businessperformance.
• Emphasis is placed on bonuses and stock-based compensation so as to create a compensation system that is
highly linked to performance.

Message from the CEO ased on our management strategy, expected items related to the specified strategy are described as “expectations forBleveraging knowledge related to strategy.”We have categorized and described the “specialized fields” and “experience and qualifications in specialized fields”
that are necessary to promote the strategy.
Content of Each Skill Category[Innovation] DX Strategy[Global] Global Strategy[Human Resource] Management[Corporate Management]
Experience as CEO or vice-president of alisted company[Business / Corporate Operations]
Experience as a general manager of a business division, supervisor of a corporate division, or as an officer of another company[Qualifications]
Possession of advanced public qualifications

Maximum total compensation

Total Compensation ¥2,000 million

Growth Story for 2030
MTP2025[Corporate Management]
Expertise in business, corporate affairs, andquality that goes beyond specific fields[Business]
Leadership of business divisions[Corporate Affairs]
Business management, governance, andinternal control[Quality]
Project management / Risk management[Finance]
Knowledge of the finance and securities
industries to which our major clients belong[M&A] [ESG] [SDGs] [Human Resources
Diversity] [Governance / Internal Control][Corporate Accounting]Knowledge of individual fields

The standards employed by the compensation system have been set with reference to market standards and trends andother factors, with the goal of establishing standards appropriate for a leading company in the information services industry.
To improve transparency of directors’ compensation and others, NRI has established the Compensation Committee,­comprising mainly independent directors, as an advisory body to the Board of Directors. The committee deliberates on thesystem and standards of executive compensation from the standpoint of fairness and transparency. Using the results of thecommittee’s inquiries, the Board of Directors sets policies for the determination of compensation for members of the Boardand other matters.
Compensation for the members of the Board of NRI comprises three categories: basic compensation, bonuses, and stockbased compensation.
Outside members of the Board do not receive a bonus or stock-based compensation.

V2030* Set items based on Medium-Term Management Plan
* Expectations for leveraging multifaceted knowledge
on business promotion, risk policy, etc., from the­perspective of specialized fields

Experience and Qualifications inSpecialized Fields

Specialized Fields

NRI’s Value Co-Creation

Expectations for Leveraging Knowledge
Related to Strategy[Performance-based compensation]

Knowledge of General Business Management
In addition to the above, all directors and Audit & Supervisory Board members are expected to demonstrate multifacetedknowledge that leverages their respective areas of expertise.

Fixed compensation
Basic compensation

Basic compensation consistsof fixed pay (basic pay andposition pay), which is compensation based on each memberof the Board’s post.

Short-term performance-based
compensation
Bonuses
Bonuses are positioned as ashort-term incentive. They reflect
performance in the relevant fiscal
year, and their determination
takes into account differencesin posts and positions.

Stock-based compensation as
medium-term incentives¥240 million*¥560 million*

This is positioned as a longterm incentive aimed at promotion of the sharing of value withshareholders through shareownership and sustainableimprovements in the
Company’s corporate value.
The transfer restriction term isfrom the day of allotment to the
day of retirement as an officer,
etc., of NRI or its subsidiary.

This is positioned as a mediumterm incentive aimed at improvements in the Company’s
medium-term results and shareprice as represented in theMedium-Term Management Plan.
The transfer restriction term isfrom the day of allotment andlasts between three and five
years thereafter.

* Monetary compensation claims are provided for granting restricted stock to eligible members.

Integrated Report 2023

Corporate Information / Data

Nomura Research InstituteStock-based compensation as
long-term incentives

Management Basis (ESG)

114(Above) Outside Director Shinoi Sakata(Below) O utside Audit & Supervisory Board
Member Yasuko Takazawa

Restricted stock compensation (financial compensation used as
investment assets for the acquisition of shares with restriction ontransfer compensation) as stock-based compensation is provided
in order to give incentives aimed at sustainable improvements in
the Company’s corporate value and to promote the sharing ofvalue with shareholders through share ownership.
The number of shares allocated is determined in accordancewith executive positions. Note that, based on the Stock Ownership
Guidelines for Executive Officers, members of the Board are
expected to hold more than a certain number of shares of NRI’s
stock, in accordance with their respective positions.

Materiality

Outside Directors demonstrate their skills in various aspects of NRI.
In FY March 2023, Outside Director Shinoi Sakata participated in the Female Leader
Training Program, an annual training program for specially selected female employees as
an initiative to promote women’s participation and advancement in the workplace as partof diversity and inclusion. Through the program, Ms. Sakata used her personal knowledge
to conduct dialogues with trainees.
Outside Audit & Supervisory Board Member Yasuko Takazawa also participated in a
Female Leaders Networking Event aimed at providing helpful hints about careers andmindsets. There, she gave a speech about her leadership journey and engaged in dialogues with other participants.
Outside Executives demonstrate their skills not only in business, but also in strengthening the framework that supports value co-creation by NRI.

¥800 million*

Value Creation Capital

Demonstrating Skills of Outside Executives

Medium- to long-term performance-based compensation
Stock-based compensation(restricted stock-based compensation)

Value Creation

Concept of “Expectations for Leveraging Strategic Knowledge Related to Strategy”
Professionals with experience in corporate management are expected to demonstrate knowledge of all strategies
For innovation and globalization, a circle ( ) is entered for the strategy that is mainly expected based on the length, content,
etc., of experienceHuman resources management is the cornerstone of NRI, and we have high expectations for all directors and Audit &Supervisory Board members.

115

Management Basis (ESG)

Compensation Ratio for Director Compensation (FY March 2023)
Performance-based compensation

1

2.7
Short-term performance-based
compensation
Bonuses1

Medium- to long-term performance-based compensation
Stock-based compensation

1.7

Notes: 1. Calculations are based on the Board of Directors’ average for FY March 2023 (excluding outside directors and directors who retired or assumed their post during the period).
		 2. Stock-based compensation herein is the total amount of monetary compensation receivables that would be contributed in kind in exchange for the shares with transfer restrictions.

Policies for the determination of compensation for Audit & Supervisory Board members and other matters are set through­discussions among the Audit & Supervisory Board members.
The role of the Audit & Supervisory Board members is to audit the members of the Board in the performance of their duties
and to do so from an independent standpoint. However, given that the full-time Audit & Supervisory Board members sharewith the members of the Board the objective of realizing sound, sustainable growth for NRI, their compensation, in addition toa fixed amount, includes a variable portion that changes in accordance with our business performance.
Levels of compensation have been set based on the need to secure human resources capable of playing important roles inthe establishment and operation of effective corporate governance.
Maximum total compensation for Audit & Supervisory Board Members: ¥250 million per annum
Basic compensation

Basic compensation consists of fixed pay based on each Audit & Supervisory Board member’s career,knowledge, and responsibilities.

Bonuses

Bonuses are only paid to full-time Audit & Supervisory Board members, and they are based on our businessperformance during the current fiscal year.

NRI’s Value Co-Creation

Fixed compensation
Basic compensation

Compensation for Members of the Audit & Supervisory Board
Message from the CEO

Emphasis is placed on bonuses and stock-based compensation so as to create a compensation system that is highly linked
to performance. The approximate ratio of constituent elements of the compensation of directors, etc., in FY March 2023 is asfollows. If basic compensation is equalized to “1,” the bonus is “1” and stock-based compensation is “1.7.” If fixed compensation is “1,” performance-based compensation is “2.7.”

V2030

Note: In regard to Audit & Supervisory Board members, stock-based compensation is not issued.

Executive Compensation Amounts
Executive compensation for FY March 2023 is as follows.
Compensation by type (millions of yen)
Fixedcompensation
Category

Non-monetarycompensation
Basic
compensation

Bonuses

Restricted
stock-based
compensation

Other

Number of­eligible­individuals(persons)

Total

836

299

225

308

534

3

11

(Of whom are Outside Membersof the Board

64

64

—

—

—

—

3

Audit & Supervisory Board Members

158

115

35

6

42

0

7

(Of whom are Outside Audit &Supervisory Board Members)

56

56

—

—

—

0

5
Materiality

Notes: 1. The above includes two members of the Board and two Audit & Supervisory Board members, including two outside Audit & Supervisory Board members, who retired at theconclusion of the 57th Ordinary General Meeting of Shareholders held on June 17, 2022.
		 2. For restricted stock-based compensation, the total amount of monetary compensation receivables that would be contributed in kind in exchange for the shares with transfer restrictions has been converted equally in accordance with the term of service from the day of the allotment of shares with transfer restrictions to the day of the lifting of transfer restrictions. The amount posted as expenses in FY March 2023 is shown.
Because the amounts of the “restricted stock-based compensation” is equalized in accordance with respective terms of service, each ratio of the constituent elements of the above
compensation differs from the ratio of constituent elements of director compensations, etc., shown on Compensation Ratio for Director Compensation.
		 3. “Other” refers to contributions to the defined contribution pension plan and insurance premiums for casualty insurance.

Value Creation Capital

Members of the Board

Value Creation

If it becomes necessary to make corrections, etc., to figures in the financial statements that served as the basis for calculating
bonuses paid within the previous three years, we have implemented a system that makes it possible to request the return of
all or a portion of the bonus (clawback system). Furthermore, if persons granted restricted stock under the Restricted Stock
Compensation Plan are deemed by the Board of Directors to be in violation of laws, regulations, or internal rules, or to haveengaged in nonconforming behavior that constitutes a violation thereof, the agreement on the allocation of restricted stockincludes a clause (malus clause) that enables us to freely acquire all granted shares.
The target of the clawback system is members of the Board (excluding outside directors), senior managing directors, managing directors, and executive fellows.

Performance-based compensation

Total
compensation(millions of yen)

Clawback System, Etc.

MTP2025

We have introduced a framework for deciding the number of shares allocated for stock-based compensation, which takes into
consideration the status of applicable sustainability-related initiatives. This mechanism applies if the status of targeted actions
defined for achieving the deliverables for sustainability evaluation metrics defined by NRI the previous business year is evaluated as insufficient. The mechanism makes it possible to reduce the number of shares allotted according to position via evaluation and resolution by the Board of Directors.
It is applicable to members of the Board excluding outside directors, senior managing directors, managing directors, andexecutive fellows.

Growth Story for 2030

Mechanism for Considering Status of Sustainability Indicators for Stock-Based Compensation

Management Basis (ESG)
Corporate Information / Data

116

Nomura Research InstituteIntegrated Report 2023

117

Management Basis (ESG)

Review of Effectiveness Evaluation Process and Evaluation Method
Effectiveness Evaluation of the Board of Directors

Overview of Board of Directors’ Effectiveness Evaluation for FY March 2023

 eview of evaluationRmethodQuestionnaire design(2) Evaluation(3) Evaluation andanalysis

Questionnaire response

Identification of issues

 xchange of opinions /Einterviews

 eview of responseRmeasuresConsideration and implementation of countermeasures(4) Reporting anddisclosure eport by Board ofR
Directors
Disclosure(5) Reform of operations• An overall good balance of inside executive / non-executive directors and independent directors with diverse experience and­specialized knowledge is maintained, and a system for ensuring appropriate decision making and supervision is provided.
• We recognized the necessity of continuing to debate the composition and diversity of the Board of Directors and ratio of external
members of the Board based on the future business situation and management strategy.
• Constructive discussions and exchanges of views are carried out by the entire Board of Directors, including active opinions andrecommendations from outside directors. We expect the quality of debate to further improve in the future as we promote focus
on important topics and the clarification of the points to debate in the meeting materials.
b. Assistance for Directors

needed, such as participating in the management strategy meetings of NRI.
• In order to further stimulate discussion at the Board of Directors meetings, it is desirable to provide opportunities for the free andopen exchange of ideas between outside directors themselves and between outside directors and executive directors and thepresident.

Growth Story for 2030

• Outside directors are provided with opportunities for obtaining information by receiving explanations from the executive side as

V2030
MTP2025

Review of Evaluation Method for FY March 2023
In the evaluation preparations for (1), we conducted hearings with external members of the Board and independent
Audit & Supervisory Board members in February 2023 and reached a consensus confirming that the expanded­section for written answers in the questionnaire, which was added in FY March 2022, is effective for identifying awider range of issues and honest opinions. We conducted the questionnaire in March using the same structure as
FY March 2022 with some changes made, then debated the effectiveness of the questionnaire in independent executive
meetings based on the resulting responses and exchanged various opinions. Based on those results, we performed
an analysis and evaluation at Board of Directors meetings and debated issues from various evaluation perspectives.

a. Structure / Status of Board of Directors
NRI’s Value Co-Creation(1) Preparation forevaluation

Overview of Effectiveness Evaluation
The Board of Directors has determined that the effectiveness of the Company’s Board of Directors is generally
ensured, and that the Board’s operations are steadily improving. The following is an overview of the evaluation.

Message from the CEO

Evaluation Process
NRI evaluates the Board of Directors’ effectiveness through the following series of processes: (1) Preparation forevaluation, (2) Evaluation, (3) Evaluation and analysis, (4) Reporting and disclosure, and (5) Reform of operations. In
step “(2) Evaluation,” we conducted a self-evaluation questionnaire for all directors and Audit & Supervisory Board
members, and exchanged opinions with independent directors in the form of discussions and individual interviews inorder to understand more specific issues.

c. Management strategy• Careful discussions were carried out to formulate our new vision and new Medium-Term Management Plan. In order to promote
understanding of and establish our new vision, we expect to conduct awareness-building measures for the entire Group and continuous progress reviews.

Initiatives for Issues Recognized in Effectiveness Evaluations(2)	Improving the quality of debate by further clarifying the points of debate in Board of Directors meeting materials-We indicatedthe points of debate for clarifying the agenda and shared the contents of the debate for business execution.
(3)	Providing opportunities for the free and open exchange of ideas between outside directors themselves and between executive
directors and outside directors: We provided opportunities for the informal exchange of opinions, such as off-site meetings
Medium-Term Management Plan.
(4)	Further enriching debate on human resource management, which is the foundation of growth-We identified human resource
management as a key theme of our new Medium-Term Management Plan and debated the topic at independent director

important to continue debate on how to further enhance governance, while also evaluating the operation of procedures that
include basic rules and the status of maintenance measures and actions for enhancing governance at overseas Group
companies.
• Our internal control and risk management are functioning effectively overall and we are reporting in an appropriate manner. It is
desirable to continuously maintain, inspect, and report on the roles of the first and second lines for ensuring the internal control
functions.
• Due to increasing geopolitical risks, it is desirable to accelerate debate focused on offshore policy.
e. Advisory committees
Management Basis (ESG)

between outside directors and executive directors and independent director meetings for formulating our new vision and new• We have lively debate and exchange of ideas regarding Group global governance and are steadily moving forward overall. It is

Materiality

candidates for members of the Board while considering diversity.

d. Internal control, risk management, and Group governance• In regard to the Nomination Committee and Compensation Committee, discussions and the exchange of opinions on the succession plan for the president, director candidate selection and cultivation process, and method for determining director compensation are carried out appropriately, and the committees are functioning effectively, despite being voluntary.

meetings.
(5)	Continuous debate on enhancing governance and detailed inspection of internal control and risk management at Group com­

Value Creation Capital(1)	Promoting continuous debate on the composition and diversity of the Board of Directors: We debated the selection of suitable

formulate a research and development strategy suitable for NRI.

Value Creation

Initiatives for Issues Recognized in FY March 2022
We implemented the following initiatives in response to various issues identified in the effectiveness evaluation for
FY March 2022.

• It is desirable to have further debate on how we can expand our human resources in a manner consistent with our strategies andBased on the above analysis and evaluation, we will continuously aim to improve the effectiveness of the Board of Directors.

panies: We revised our regulations, established governance procedures, and reviewed how we monitor and assist Group
Corporate Information / Data

­companies. We also had Group companies conduct self-assessments on procedures and inspections on the status of internal
control and risk management.

118

Nomura Research InstituteIntegrated Report 2023

119

Management Basis (ESG)

NRI Executives
Members of the Board

New election

Date of birth: February 11, 1960
President & CEO
Chairman, Member of the Board
Representative Director

(338,021 shares)

Non-executive

Yo Akatsuka
Date of birth: July 14, 1965
Vice Chairman, Member of the Board(10,900 shares)

OutsideIndependent

Apr. 1983 Joined the Company
Apr. 2011 Senior Managing Director
		 Deputy Division Manager of Distribution & Communication Solution Division
Apr. 2016 Senior Corporate Managing Director
		 Head of Distribution, Communication & Industrial Solutions
		 Division Manager of Distribution & Communication Solution Division
Apr. 2017 Senior Corporate Managing Director
		 Head of Corporate Administration
Apr. 2019 Senior Executive Managing Director
		 Head of Corporate Headquarters
Jun. 2019 Representative Director, Member of the Board, Senior Executive Managing Director
		 Head of Corporate Headquarters
Apr. 2021 Vice Chairman, Member of the Board (present)		 Chairperson of the Board of Directors (present)

Executive

Ken Ebato
Date of birth: October 28, 1963
Senior Executive Vice President
Member of the Board
Representative Director
Supervising of Consulting
Supervising of Financial IT Solutions
Supervising of IT Platform Services

Kenkichi Kosakai(732 shares)

Executive

Yasuko Takazawa
Date of birth: November 20, 1964
Audit & Supervisory Board Member (Note 1)

<Important concurrent positions>
Outside Director of Hitachi Zosen Corporation<Important concurrent positions>
Chairperson of the Board of Komatsu Ltd.
Outside Director of Yamaha Motor Co., Ltd.
Outside Director of Asahi Group Holdings, Ltd.

IndependentAug. 1986
Mar. 1990
Sep. 1993
Jan. 1999
Oct. 1999
Jul. 2010
Jul. 2017
Jun. 2022<Important concurrent positions>Managing Partner of GYOSEI & CO.
Outside Auditor of FunPep Company Limited

Independent(100 shares)

Notes:
1. Shinoi Sakata, Tetsuji Ohashi, and Hideki Kobori are outside directors.
Kenkichi Kosakai, Naruhito Minami, and Yasuko Takazawa are outside Audit &Supervisory Board members. NRI specifies those members as independent directors
pursuant to the regulations of the Tokyo Stock Exchange and has notified about themto the said stock exchange.
2. Members of the Board were selected at the Ordinary General Meeting of Shareholders
held on June 23, 2023.
3. For the Audit & Supervisory Board members, Takuhito Sakata was selected at theOrdinary General Meeting of Shareholders held on June 18, 2020, Kenkichi Kosakai
was selected at the Ordinary General Meeting of Shareholders held on June 18, 2021,
Naruhito Minami and Yasuko Takazawa were selected at the Ordinary General Meetingof Shareholders held on June 17, 2022, and Yoichi Inada was selected at the Ordinary
General Meeting of Shareholders held on June 23, 2023.
4. Figures in parentheses indicate number of the Company’s shares held as of March 31,
2023, including holdings in the executive share ownership plan.

Joined Komatsu Ltd.
President and Chief Operating Officer (COO) of Komatsu America Corp.
Executive Officer of Komatsu Ltd.
Director and Senior Executive Officer of Komatsu Ltd.
Director and Senior Executive Officer of Komatsu Ltd.
President and Representative Director, and CEO of Komatsu Ltd.
Chairperson of the Board and Representative Director of Komatsu Ltd.
Member of the Board of the Company (present)
Chairperson of the Board and Director of Komatsu Ltd. (present)

NRI makes a distinction between the Board of Directors’ decision-making on management strategy and business executionfunction, and the authority and responsibilities for business execution are largely delegated to Senior Managing Directors, etc.
Senior Executive Managing Directors

Senior Managing Directors

Managing Directors

Hiroshi Masutani

Katsutoshi Murakami Kotaro Gunji

Masakazu Amamiya Junji Hatoya

Yasushi Kobara

Hideki Saito

Akiko Tabaru

Tomonori Utsumi

Hiroyuki Kawanami

Katsuya Mori

Hirofumi Miyatake

Youji Minamigawa

Takashi Yagi

Fumihiko Sagano

Minoru Yokote

Akira Matsumoto

Sonoko Kitagawa

Takefumi Ikeya

Tetsuro Watanabe

Jun Odashima

Noriyuki Takeda

Yuichi Higo

Shigekazu Ohmoto

Masaaki Yamazaki

Toshifumi Hara

Apr. 1978 Joined Asahi Chemical Industry Co., Ltd. (currently, ASAHI KASEI CORPORATION)
Apr. 2008 Director of Asahi Kasei Microdevices Corporation
		 Senior Executive Officer of Asahi Kasei Microdevices Corporation
Apr. 2010 President & Representative Director of Asahi Kasei Microdevices Corporation
		 Presidential Executive Officer of Asahi Kasei Microdevices Corporation
Apr. 2012 Senior Executive Officer of ASAHI KASEI CORPORATION
Jun. 2012 Director of ASAHI KASEI CORPORATION
		 Senior Executive Officer of ASAHI KASEI CORPORATION
Apr. 2014 Representative Director of ASAHI KASEI CORPORATION
		 Primary Executive Officer of ASAHI KASEI CORPORATION
Apr. 2016 President and Representative Director of ASAHI KASEI CORPORATION
		 Presidential Executive Officer of ASAHI KASEI CORPORATION
Apr. 2022 Chairman and Representative Director of ASAHI KASEI CORPORATION
Apr. 2023 Chairman and Director of ASAHI KASEI CORPORATION (present)

Tohru Yasumaru

Yasuki Nakamaru

Koji Shimizu

Masashi Shimizu

Tomohiko Noguchi

Takeshi Hihara

Hiroshi Koike

Noriyuki Kobayashi

Susumu Nishimoto

Ichiro Morisawa

Kazuya Kobayashi

Akihiro Kamei

Yoshihiko Sunaga

Kaga Yanagisawa

Noriyasu Kogure

Takao Yamaguchi

Shoichi Ohno

Hiroyuki Nakayama

Research Directors

Kotaro Kuwazu
Counselor

Hisao Nakajima
Fellows

Minoru Aoshima

120

Nomura Research InstituteFumihiko Kamio

Shinichiro Umeya

Integrated Report 2023

Corporate Information / Data

Namiki Kubo

Date of birth: February 2, 1955
Member of the Board (Note 1)(—)<Important concurrent positions>
Chairman and Director of ASAHI KASEI CORPORATION
Outside Director of SEIKO GROUP CORPORATION

Joined Asahi Shinwa & Co. (currently, KPMG AZSA LLC)
Registered as a certified public accountant
Partner of Tokyo Akasaka & Co. (currently, GYOSEI & CO.)
Senior Partner of Tokyo Akasaka & Co. (currently, GYOSEI & CO.)Managing Partner of Tokyo Hokuto & Co. (currently, GYOSEI & CO.)
Vice Executive Director, Partner of GYOSEI & CO.
Executive Director, Managing Partner of GYOSEI & CO.
Audit & Supervisory Board Member of the Company (present)

Management Basis (ESG)

OutsideDate of birth: January 15, 1963
Audit & Supervisory Board Member (Note 1)(—)

Managing Directors and Fellows

Senior Corporate Managing Directors
Non-executive

Independent

Materiality

Apr. 1977
Jan. 2004
Apr. 2007
Jun. 2009
Apr. 2012
Apr. 2013
Apr. 2019
Jun. 2021
Apr. 2022

Hideki Kobori

OutsideDate of birth: March 23, 1954
Member of the Board (Note 1)(—)

Apr. 1979	Joined Sumitomo Chemical Co., Ltd.
(currently, SUMITOMO CHEMICAL COMPANY, LIMITED)
Apr. 2011 Associate Officer of SUMITOMO CHEMICAL COMPANY, LIMITED
Apr. 2013 Executive Officer of SUMITOMO CHEMICAL COMPANY, LIMITED
Apr. 2016 Advisor of SUMITOMO CHEMICAL COMPANY, LIMITED		 Director & Vice President of Sumika Technical Information Service, Inc.
Jun. 2017 President of Sumika Technical Information Service, Inc.
May 2018 Executive Director of Japan Chemical Industry Association
Jun. 2020 Member of the Board of the Company (present)

New election

Outside<Important concurrent positions>
Corporate Officer of MITSUBISHI MOTORS CORPORATION

Independent

Naruhito Minami(1,500 shares)

Apr. 1987 Joined Nippon Steel Corporation (currently, NIPPON STEEL CORPORATION)
Dec. 2009 Registered as an attorney at law
		 Joined SOGA, URYU & ITOGA Law Offices
Oct. 2010 Joined Kojima Law Offices
Sep. 2014 General Manager of Legal Department of MITSUBISHI MOTORS CORPORATION
Apr. 2017 Vice President of MITSUBISHI MOTORS CORPORATION
Apr. 2019 Corporate Officer of MITSUBISHI MOTORS CORPORATION (present)
Jun. 2022 Audit & Supervisory Board Member of the Company (present)(177,333 shares)

OutsideIndependent<Important concurrent positions>
Outside Director of Dai-Dan Co., Ltd.

Apr. 1987 Joined the Company
Apr. 2014 Senior Managing Director
		 Deputy Division Manager of IT Platform Services Division
Apr. 2016 Senior Managing Director
		 Division Manager of Systems Consulting Division
		 Deputy Division Manager of Services & Industrial Solution Division
Apr. 2019 Senior Corporate Managing Director
		 Division Manager of Services & Industrial Solution Division
Apr. 2021 Senior Executive Managing Director
		 Head of Industrial IT Solutions
Apr. 2022 Senior Executive Managing Director
		 Supervising of Industrial IT Solutions
		 Supervising of Global Headquarters
Jun. 2022 Member of the Board, Executive Managing Director
		 Supervising of Industrial IT Solutions
		 Supervising of Global Headquarters (present)

Non-executive(112,825 shares)

Apr. 1988 Joined the Company
Apr. 2012 Senior Managing Director
		 Deputy Division Manager of Services & Industrial Solution Division II
Apr. 2015 Senior Managing Director
		 Division Manager of Quality Management Division
		 Head of Integrated Risk Management
		 Head of Information System Planning & Control
		 Head of Security Management
Apr. 2017 Senior Corporate Managing Director
		 Division Manager of Distribution & Communication Solution Division
Apr. 2023 Counselor of the Company
Jun. 2023 Audit & Supervisory Board Member (present)

Apr. 1976	Joined Mitsubishi Chemical Industries Limited(currently, Mitsubishi Chemical Corporation)
Jun. 2010	Director of the Board, Managing Executive Officer of
Mitsubishi Tanabe Pharma Corporation
Apr. 2014 Managing Executive Officer of Mitsubishi Chemical Holdings Corporation
Apr. 2015 Senior Managing Executive Officer of Mitsubishi Chemical Holdings Corporation
Jun. 2015	Representative Corporate Executive Officer, Senior Managing Corporate Executive Officer,
Chief Financial Officer of Mitsubishi Chemical Holdings Corporation
Apr. 2017	Representative Corporate Executive Officer, Deputy CEO, Chief Financial Officer of
Mitsubishi Chemical Holdings Corporation
Jun. 2017	Director of the Board, Representative Corporate Executive Officer, Deputy CEO,
Chief Financial Officer of Mitsubishi Chemical Holdings Corporation
Jun. 2019 Adviser of Mitsubishi Chemical Holdings Corporation
Jun. 2021 Audit & Supervisory Board Member of the Company (present)(162,609 shares)

Date of birth: May 2, 1964
Senior Executive Managing Director
Member of the Board
Supervising of Industrial IT Solutions /Supervising of Global Headquarters

Tetsuji Ohashi

OutsideDate of birth: August 9, 1953
Audit & Supervisory Board Member (Note 1)

Shuji Tateno

Date of birth: December 13, 1964
Audit & Supervisory Board Member (full-time)

(150,791 shares)

Apr. 1984 Joined the Company
Apr. 2010 Senior Managing Director
		 Deputy Division Manager of Distribution & Communication Systems Division
Apr. 2011 Senior Managing Director
		 Deputy Division Manager of Services & Industrial Solution Division I
		 General Manager of Kansai Regional Headquarters
		 General Manager of Chubu Regional Headquarters
Apr. 2017 Senior Corporate Managing Director
		 Division Manager of Data Center Service Division
		 Deputy Division Manager of Cloud Computing Service Division
Apr. 2020 Counselor of the Company
Jun. 2020 Audit & Supervisory Board Member (present)

Value Creation Capital

Date of birth: March 31, 1957
Member of the Board (Note 1)

Date of birth: November 20, 1961
Audit & Supervisory Board Member (full-time)

(113,118 shares)

New election

Yoichi Inada

Value Creation

Non-executive

Date of birth: August 12, 1960
Vice Chairman, Member of the Board
Chairperson of the Board of Directors

Takuhito Sakata

MTP2025(119,424 shares)

Apr. 1989 Joined the Company
Apr. 2014 Senior Managing Director
		 Deputy Division Manager of Distribution & Communication Solution Division
Apr. 2017 Senior Managing Director
		 Division Manager of IT Platform Services Division
		 Deputy Division Manager of Systems Development Innovation Division
Apr. 2019 Senior Corporate Managing Director
		 Head of Corporate Administration
Apr. 2021 Senior Executive Managing Director
		 Head of Corporate Headquarters
Jun. 2021 Representative Director, Member of the Board, Senior Executive Managing Director
		 Head of Corporate Headquarters (present)

Shinoi Sakata

Non-executive

Yasuo Fukami

Growth Story for 2030

Date of birth: November 9, 1964
Senior Executive Managing Director
Member of the Board
Representative Director
Supervising of Corporate Headquarters

Audit & Supervisory Board Members

Apr. 1987 Joined the Company
Apr. 2015 Senior Managing Director
		 Deputy Division Manager of Capital Markets & Wealth Management Solutions Division
Apr. 2018 Senior Managing Director
		 Division Manager of Capital Markets & Wealth Management Solutions Division
Apr. 2019 Senior Corporate Managing Director
		 Division Manager of Capital Markets & Wealth Management Solutions Division
Apr. 2021 Senior Executive Managing Director
		 Head of Financial IT Solutions
		 Division Manager of Capital Markets & Wealth Management Solutions DivisionJun. 2021 Member of the Board, Senior Executive Managing Director
		 Head of Financial IT Solutions
		 Division Manager of Capital Markets & Wealth Management Solutions Division
Apr. 2022 Representative Director, Member of the Board, Senior Executive Managing Director
Apr. 2023 Representative Director, Member of the Board, Senior Executive Vice President		 Supervising of Consulting		 Supervising of Financial IT Solutions
		 Supervising of IT Platform Services (present)

Executive

Hidenori Anzai

Independent

V2030

Apr. 1990 Joined The Nomura Securities Co., Ltd. (currently, Nomura Holdings, Inc.)
Apr. 2014 Senior Managing Director of Nomura Holdings, Inc.
		 Senior Managing Director of Nomura Securities Co., Ltd.
Apr. 2016 Senior Managing Director of Nomura Holdings, Inc.
		 Senior Corporate Managing Director of Nomura Securities Co., Ltd.
Apr. 2020 Senior Managing Director of Nomura Securities Co., Ltd.
		 CEO of Nomura Holding America Inc.
Mar. 2022 Executive Vice President of Nomura Securities Co., Ltd.
Apr .2022 Advisor of Nomura Securities Co., Ltd.
Jun. 2022 Vice Chairman, Member of the Board of the Company (present)

OutsideNRI’s Value Co-Creation

Apr. 1985 Joined the Company
Apr. 2004 Senior Managing Director
		 Division Manager of Consulting Division III
Apr. 2010 Senior Corporate Managing Director
		 Division Manager of Consulting Division
Apr. 2015 Senior Executive Managing Director
		 Head of Business, Head of Consulting
Jun. 2015 Representative Director, Member of the Board, Senior Executive Managing Director
		 Head of Business, Head of Consulting
Apr. 2016 President & CEO, Representative Director, Member of the Board
Jun. 2019 Chairman and President & CEO, Representative Director, Member of the Board
Jun. 2022 President & CEO, Chairman, Member of the Board, Representative Director (present)

Non-executive

Message from the CEO

Executive

Shingo Konomoto

Executive

121

Management Basis (ESG)Internal Controls, Corporate Ethics, and Compliance

NRI has established a basic policy for building an internal control system, while appointing a director in charge of risk management and setting up a department for supervising risk management.
In addition, the Integrated Risk Management Committee meets to check the Companywide internal control status asappropriate. The Business Promotion Committee, which all business divisions and Group companies attend, also works toensure that the internal control system is established.

As a system for promoting its global strategies, NRI has
established regional headquarters or holding companies inNorth America, Asia, and Australia. We are strengthening
our governance system mainly for acquired subsidiaries.
At Headquarters, NRI formulates and executes global
strategies centered on its Global Headquarters, establishedin April 2019, while at the same time reinforcing the management ranks supporting CEOs of overseas subsidiaries,
improving communication through personnel on assignment
from NRI Headquarters, and strengthening governance.

Basic policy for building an internal control system (Japanese)
https://www.nri.com/jp/company/internal

Risk Management PDCA Cycle fter an assessment is compiled, the department responsible for riskA
management holds discussions at the Integrated Risk Management
Committee and sets the risks that should be managed. It also selects
prioritized themes that have a particularly high level of importanceor impact.

Local holding company, etc.

NomuraResearch
Institute

NRI Asia Pacific(Singapore)

Asia

NRI Beijing(Beijing)

Mainland
China

Corporate Ethics and Compliance System
To ensure effective ethics and compliance systems, NRI has appointed a chief ethics officer and chief compliance officer
and established the Compliance Committee. Moreover, we have established the NRI Group’s Code of Business Principles,
expressing the code of business principles, and NRI Group Employees’ Code of Business Conduct, indicating our employees’
code of business conduct.
NRI Group Employees’ Code of Business Conduct
https://www.nri.com/en/company/business_code

The Fundamental Rules are composed of 12 items prepared and monitored to confirm that these principles and policies arecomplied with and that the Company’s management is reliably going in the right direction.
Regular training to raise the awareness of executives and employees toward compliance is conducted, as well as training
on the legal knowledge, etc., required for individual operations. Through this training, efforts are made to thoroughly instillawareness on matters such as prohibitions on bribes and facilitation payments to public officials and the importance of compliance with antitrust laws.

Value Creation

Risk prevention
measures

United States

MTP2025

Risk monitoring
and
improvements

NRI Holdings America(New York)

Growth Story for 2030

Setting risks

The department responsible for risk
management establishes a management
structure and conducts integrated risk
management in cooperation with thedepartments, etc., that oversee each risk.
As necessary, risks are discussed atmeetings attended by personnel withexpertise, and appropriate measures
are taken by the responsible department
in cooperation with business divisions.
BCP (business continuity plans) and DR(disaster recovery) measures are also
put in place for businesses and services
that have a significant social impact.

Australia

Japan andEuropeNRI Group’s Code of Business Principles
https://www.nri.com/en/company/company_code he Integrated Risk Management
T
Committee meets to check theCompanywide internal control status
regularly. The Business Promotion
Committee, which all business divisions
attend, also works to ensure that theinternal control system is established,
and improvements are made.

Territory regions

NRI Australia Holdings(Sydney)

V2030

 isks that may arise in the course of business execution by the NRIR
Group are classified into 13 items including management strategy,
business activities, and compliance, and the department responsible
for each risk conducts a risk assessment and review of the risk items
that takes into consideration the level of importance and impact every
fiscal year on risk items that have been subclassified even further.

Business Management through Local Holding Companies, Etc.

NRI’s Value Co-Creation

Strengthening Group Governance
Message from the CEO

Internal Control System

NRI Group Policy on Human Rights / NRI Group AI Ethics Guidelines / NRI Group Anti-Bribery Policy / NRI Group Competition Law Compliance Policy /NRI Group Global Tax Policy
https://www.nri.com/en/sustainability/social/policies

NRI has prescribed Whistleblower Protection Regulations based on the Whistleblower Protection Act and established internaland external hotlines as contact points that domestic group employees can use to consult with regarding compliance-related
issues.

Priority themes for

III Further strengthen the management of project risks

FY March 2024

IV Develop internal control systems suitable for NRI

Compliance Information Communication Process
President(Committee Chief Ethics Officer)
ReportV Implement appropriate preparation for fulfilling our business continuity responsibilities

Director in charge of ComplianceIntegrated Risk Management
Committee

Compliance Committee
Disciplinary Action
Committee

122

Nomura Research Institute• Overall risk assessment•O verall total of Fundamental Rules
monitoring results
Representative Departments• Risk materialization monitoring• Implementation of risk reduction measures• Implementation of Fundamental Rules monitoring

Division Manager
General Manager

Notification

Raising and Instilling theAwareness of Executives andEmployees through the Rule Book
We have created a Rule Book
(Fundamental Rules for Executive Officers
and General Staff) as a pamphlet that
explains the action guidelines, etc., of theCompany to ensure that executives andemployees comply with laws, regulations,etc., with a high senseof ethics. By raising andinstilling awareness ofcompliance using this,
we work to put in place
the foundations for ourcompliance structure.
♫ෆ㝈Regularemployees

Temporaryemployees

Integrated Report 2023

Corporate Information / Data

The Internal Audit Department (22 employees), which functions directly under the president, audits the Company to ensure the effectiveness of risk management and compliance systems and to maintain the efficiency of the execution of the members of the Board.
		 The results of such audits are reported to the president & CEO and other directors, and when corrections or improvements are
required, the Risk Management Supervisory Department, the representative departments, and the business divisions collaborate to
introduce improvements. In addition, the Internal Audit Department works to cooperate with the accounting auditor through regularexchanges of opinions regarding plans for conducting internal audits and their results.

Corporate Planning Department
Integrated Risk Management
Section

Secretariat of the Compliance Committee

Headquarters

Internal Audits Conducted by the Internal Audit Department

Whistleblowing system(referred to as
Compliance Hotline)(Internal / External)

Management Basis (ESG)

VI Improve the quality of working environments to adapt to a variety of working styles

Materiality

Continue proper management of quality risks for our systems in operation

II Improve the management preparedness of information security

Value Creation CapitalI

123

Corporate Information / Data

Financial Highlights

Readers are recommended to refer to Consolidated
Financial Results.

Shareholder Value / Returns to Shareholders
Cash Dividends per Share (DPS)*2 / Dividend Payout Ratio*3 /Total Return Ratio

Cash Flows (CF)EBITDA*5 / EBITDA Margin(yen)(yen)(%)
xxx.x(billions of yen)(billions of yen)

250

100

228

200

90

326.8

90

350

258.9

80

150

73.4

50

109

91

100

72

210

60

128

120
88

129.8

40

113.4

50

18.3

19.3

20.3

20.3

21.3

JGAAP

22.3

0

23.3

40

36

32

20

18.3

IFRS

41.5
19.3

33.2

27.9
20.3

41.3

20.3

33.1

21.3

JGAAP

140

117.1

60.2
39.1

0

32

0

45

22.3

–50
70

61.1
34.9

0

23.3

55.6

39.5

–17.8

–16.8

–46.8

–73.1

57.7

–20.5
–13.1
–149.9

–32.4

19.3

117.4

–130.5

20.3

20.3

21.3

22.3

–44.9

125.5

129.6

50

40

22.2

23.3

22.5

0

20

10

18.3

19.3

20.3

20.3

21.3

JGAAP

Cash flows from investing activities
Free cash flows

23.9

23.6

23.8

40

IFRS

Cash flows from operating activities
Cash flows from financing activities  

21.7

21.9

–61.1

–7.9

18.3

108.8

103.1

80

–100
–150

120

155.4

30

56.3

JGAAP

Dividend payout ratio (right scale)

98.1

64.0

112.8

–139.8IFRSCash dividends per share (left scale)
Total return ratio (right scale)

84.5

102.7

145.9

118.8

EBITDA (left scale)

22.3

23.3

4.9

4.9

22.3

23.3

0

NRI’s Value Co-Creation

150

160

18.3

18.3

100

280

131.2

121.1

(%)

1,074

Message from the CEO

Earnings per Share (EPS)*2

IFRS

EBITDA margin (right scale)

V2030

Financial Condition
Interest-Bearing Debt / Net D/E Ratio(billions of yen)

(%)

900

789.6

600

432.6

425.0

656.5

0.20
60

50.3

47.6

287.1

18.3

19.3

20.3

20.3

333.2

21.3

Total assets (left scale)

22.3

402.4

23.3

80

0.19

0

10

–0.11
60.8

18.3

19.3

–0.25

20.3

20.3

21.3

JGAAP

Equity ratio (right scale)

22.3

23.3

–0.50

Interest-bearing debt (left scale)

501.2

528.8

528.7

400

(billions of yen)

(%)

120

106.2

692.1

111.8

100

83.1

80

71.4

65.1

15.7

60

13.8

8.1

85.6

80.7
17.4

16.2

18.3

19.3

46.7
20.3

46.7
20.3

44.6
21.3

JGAAP

22.3
IFRS

16.2

14.7

14.3

Nomura Research Institute

22.3

23.3

IFRS

ROA

123.2
23.3

0

Research and Development Expenses(billions of yen)

58.5

60

31.9 30.4
15

30

16.1

26.2

30.4
28.4
6.6

5.6

22.0

5

18.3

19.3
JGAAP

Operating profit (left scale)

20.3

20.3

21.3

22.3

23.3

IFRS

Operating margin (right scale)

0

33.3

15.6

0

18.3

19.3

20.3

JGAAP

Capital expenditures (intangible)
Depreciation and amortization

5.1
4.3

4.4

20.3

21.3

3.6

3

11.7

21.6

21.3

5
4

10.9

42.9

21.8

20.6

6

45.0

35.9
15

0

46.9
41.9

40.9

38.2

10

*1		 Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.
*2		NRI implemented 1:3 common stock splits on July 1, 2019. EPS is calculated by deeming stock splits to have occurred respectively at the beginning of FY March 2019. Dividend pershare for FY March 2019 is based on the number of shares prior to the stock split.
*3		 The dividend payout ratio is calculated by dividing the total sum of dividends (including dividends to the NRI Group Employee Stock Ownership Group) by net income.
*4		 The classification of revenue was changed from the method based on the location of sales destinations to the method based on the location of the headquarters of each company.

124

21.3

2
1

22.3
IFRS

23.3

0

18.3

19.3
JGAAP

IFRS

Capital expenditures (tangible)*5		EBITDA is calculated as operating profit + depreciation and amortization + goodwill amortization up to FY March 2017, as operating profit + depreciation and amortization + goodwill
amortization + loss on retirement of fixed assets from FY March 2018 and as operating profit + depreciation and amortization + loss on retirement of fixed assets ± temporary factors fromFY March 2020 (IFRS).

Integrated Report 2023

Corporate Information / Data

Revenue (left scale)
Overseas revenue (left scale)
Overseas revenue ratio (right scale)

76.5

20.3

(billions of yen)

20

20
0

30

5

53.0

20.3

Capital Expenditures / Depreciation and Amortization

45

40
200

43.5

19.3

25

15

10

8.8

18.3

Management Basis (ESG)

8.8

9.2

20

12.5

10.6

0

Materiality

17.8

471.4

5

ROE

Net D/E ratio (right scale)

13.3

11.5

JGAAP

Operating Profit / Operating Margin
(%)

550.3

11.6

Value Creation Capital(billions of yen)

600

10.4

14.5

14.2

12.3

20.7

18.2

Investment Situation

Revenue / Overseas Revenue*4 / Overseas Revenue Ratio

611.6

14.8
12.9

IFRS

Financial Results and Cash Flow Situation

800

18.3

0

81.6

21.3

20.3

20

15

107.4

IFRS

Net assets (left scale)

0.25

40
0

25

205.8

0.27

166.7

(%)

Value Creation

JGAAP

342.4

151.3

160
120

43.0

264.7

0.50

209.6

30

300

240
200

44.1

0

90

(times)

MTP2025

612.1
67.1
65.2
565.2
533.1
50.9

643.1

838.2

ROE / ROA

(billions of yen)

Growth Story for 2030

Total Assets / Net Assets / Equity Ratio

125

Corporate Information / Data

10-Year Summary of Consolidated Financial Statements
Consolidated Financial Results
https://ir.nri.com/en/ir/library/financial.html(millions of yen)
JGAAP

IFRS

2014.32015.32016.32017.32018.32019.32020.3

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations

385,932
276,664
109,267
59,450986

405,984
289,210
116,774
65,287
1,316

421,439
287,270
134,168
75,873
1,227

424,548
280,761
143,787
85,272
1,213

471,488311,868
159,619
94,481
1,101

501,243
336,508
164,735
93,293
1,069

528,873
348,006
180,866
97,688
1,220

Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Welfare expenses
Education and training expenses
Operations consignment expenses
Operating profit
Non-operating income and profit
Ordinary profit
Extraordinary income and loss
Income taxes
Profit attributable to owners of parent
Consolidated Balance Sheet (Year-End):
Total assets
Current assets
		 Cash and bank deposits
Fixed assets
		 Tangible fixed assets
		 Intangible fixed assets
			Goodwill
		 Investments and other assets
			Investment securities
Total liabilities
Current liabilities
		 Short-term loans payable
		 Provision for loss on orders received
Non-current liabilities
		Bonds
		 Long-term loans payable
Net assets
Consolidated Statement of Cash Flows:
Cash flows from operating activities
Cash flows from investing activities
	(Investing activities except cash management
purpose investment)
Free cash flows	(Free cash flows except cash management
purpose investment)
Cash flows from financing activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at end of period
Cash and cash equivalents + cash management
purpose investment

20,087
4,715
2,458
3,786
1,853
9,640
49,8162,544
52,360349
21,17531,52722,450
5,136
2,105
4,362
1,789
11,17051,486
1,455
52,942
6,132
19,20938,88025,395
5,802
2,155
4,935
1,712
14,24658,2952,705
61,001
1,304
19,51342,64827,576
5,993
3,038
5,842
1,768
16,72258,514
1,839
60,354
4,638
21,04245,06429,681
6,751
2,678
6,348
1,705
16,74065,138
1,023
66,161
16,366
26,35655,14530,506
6,783
2,533
6,532
1,851
17,07371,442967
72,4094,340
25,21350,931

32,522
7,032
2,907
6,697
1,840
18,366
83,178
1,349
84,52817,96832,28869,276

469,010208,1219,885
260,888
62,76742,712—
155,408
94,766
137,601
79,841—
3,083
57,75930,00022,054331,408593,213
298,565
26,469294,647
53,91555,582—
185,148
116,480
189,745
113,208
10,645
3,911
75,98830,00021,333
403,467

621,695
306,943
62,138314,751
65,38465,085
7,864
184,280
120,397
196,286
134,304
2,270
1,345
61,327
15,00027,969425,409628,944295,915
152,610333,029
63,79099,48535,404
169,754
103,841
181,646
111,552
2,870
1,591
69,50025,00024,396447,297643,117298,275
159,541
344,842
68,528103,747
36,624
172,566
88,999210,442
162,133
6,074
50
47,71434,082408
432,674

612,192
285,788
124,773
326,404
65,376
91,50527,572
169,52280,203
187,160
124,264
6,345
933
62,41933,931
13,213425,032

33,839(32,234)(38,086)

58,710(1,093)(13,800)

81,470(75,344)(52,725)

61,147(30,341)(41,348)

73,493(17,882)(30,162)

1,605(4,246)

57,61744,9106,126
28,74430,805
19,799(8,773)337(10,536)694

9,326(1,071)(6,830)47,77592,792
133,350

140,567
169,023

2020.32021.32022.32023.3Message from the CEO

For the fiscal years beginning April 1 and ending March 31 of the following year.
This financial summary is prepared solely for convenience.
Readers are recommended to refer to the Consolidated Financial Results.

Consolidated Statement of Income:
528,721346,101
182,620
97,491

550,337
364,539
185,798
98,366611,634
395,562
216,071
113,536

692,165
452,336
239,829
131,580

164,707
179,72139,38342,954

171,521
190,008
40,911
46,819196,600
217,175
41,94147,597

237,155
236,305
45,092
53,277

Operating profit
Finance income & finance costs
Profit before tax

85,625(140)
85,48480,748(9,672)
71,075106,218(1,547)
104,671

111,832(3,333)
108,499

Income tax expense
Profit attributable to owners of parent

26,38858,195

18,49752,86732,87871,44532,00276,307533,151
259,855
102,540
273,295
63,422
85,11820,409124,755
28,512245,997
140,456
6,659
300
105,076
73,31017,876287,153

Total assets
Current assets
		 Cash and cash equivalents
Non-current assets
		 Property, plant and equipment
		 Goodwill and intangible assets
			Goodwill
		 Other financial assets
			Investment securities
Total liabilities
Current liabilities
		 Bonds and borrowings
		Provisions
Non-current liabilities
		 Bonds and borrowings
		Lease liabilities
Total equity

565,229
259,187
100,778
306,042
48,611
83,167
16,05355,18931,190300,502
156,179
11,822
390
144,322
91,18636,261
264,727

656,536
323,366
153,187
333,170
46,71489,067
20,351
59,25434,780323,329
174,348
23,844
1,497
148,981
93,65135,748333,206

789,655
333,645
115,610456,01037,482
210,744
95,497
69,21944,220447,168
298,342
116,941
2,646
148,826
91,27529,952
342,486

838,224
349,102129,257
489,122
42,114
237,283
101,850
70,83846,090435,817
198,247
20,235
1,027
237,570
182,725
25,420402,406

56,349(16,826)(15,025)

102,787
18,382(6,985)

112,838
18,382—

84,594(20,522)(22,811)

98,137(130,547)(130,472)

118,899(61,190)(60,683)

55,61043,33039,52341,324

121,169
95,801

131,221—64,071
61,782(32,410)(32,335)

57,70958,215(34,327)624(46,829)(2,529)(73,106)(1,519)(139,857)(3,734)(149,908)(3,734)(13,183)
1,520(7,995)2,829(44,921)859

14,381(2,897)6,251(35,102)(22,421)

Cash flows from operating activities
Cash flows from investing activities
	(Investing activities except cash management
purpose investment)
Free cash flows	(Free cash flows except cash management
purpose investment)
Cash flows from financing activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash equivalents(22,421)52,408(37,576)

13,646

154,949
206,031

152,051
192,028

158,303
185,882

123,200
152,743

100,778
104,842

100,778—

153,187
154,847

115,610
117,368

129,257
131,235

Corporate Information / Data

Integrated Report 2023

127

V2030
Materiality

Value Creation CapitalManagement Basis (ESG)

Nomura Research Institute

Value Creation

126

MTP2025

Notes:
1. Figures less than the unit indicated have been rounded down for amounts.
2. Consumption tax and local consumption tax are accounted for by the tax-exclusion method.

Growth Story for 2030

Cash and cash equivalents at end of period
Cash and cash equivalents + cash management
purpose investment

NRI’s Value Co-Creation

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses(Breakdown of cost of sales and selling, general and­administrative expenses)
Employee benefit expenses
Operations consignment expenses
Depreciation and amortization
Equipment and machinery expenses

Corporate Information / Data

Consolidated Financial Data
(millions of yen)
2018.32019.32020.32020.32021.32022.32023.337,246288,196
130,427
61,44150,181
46,146
186,051
62,192
123,858

42,807
303,635
133,316
68,89447,07354,351
222,583
68,269154,313

46,100328,576
141,541
77,03955,06954,926
267,190
70,628
196,562

29,87033,15338,23938,087

38,84342,60750,29835,3326,561
18.6

35,481
7,786
21.9

39,612
9,515
24.0

39,612
9,494
24.0

38,155
10,05926.4

44,414
12,82028.9

47,821
12,32925.8

254,567
27,67310.9

255,162
27,095
10.6

276,937
35,034
12.7

276,937
34,17012.3

292,038
36,275
12.4

308,376
43,87714.2

334,141
49,71014.9

157,585
15,1199.6

183,580
18,44910.0

181,438
19,71910.9

181,438
22,055
12.2

189,551
19,482
10.3

229,921
25,44911.1

276,031
24,4298.9122,342
14,76412.1
78,987138,111

127,777
17,13013.4
90,816
150,467

138,833
18,454
13.3
96,862
161,703

138,680
19,45014.0
96,862
161,703

142,686
19,785
13.9
90,056
183,847

157,598
20,95513.3
125,460
196,000

169,840
23,346
13.7
156,582
211,512241,198

244,273

251,908

251,757

258,656

272,903292,874

13,191
77,93747,001
43,5599.2

15,686
60,57949,10953,081
10.6

18,39965,04952,43446,752
8.8

18,39965,049—46,752
8.8

17,77766,309—43,625
7.9

17,26963,025—76,51912.5

31,19572,921—
123,20717.8%—
161,353
28,514

44.6
14.4

46.0
15.4

47.8
17.7

48.1
17.7

354,035
171,560
30,460399,558
194,766
36,730451,620
214,166
37,436

48.5
17.8

48.7
18.9

47.4
17.5

(millions of yen)
JGAAP

IFRS

2018.32019.32020.32020.32021.32022.32023.3

Capital Expenditures / Depreciation and Amortization /Research and Development Expenses:
38,201
Capital expenditures
16,188
Capital expenditures (tangible)
22,012
Capital expenditures (intangible)
31,941
Depreciation and amortization
5,170
Research and development expenses

26,276
5,615
20,66130,427
3,665

28,496
6,684
21,81130,414
4,310———
39,383
4,310

33,372
11,712
21,66040,911
4,468

46,98010,99035,99041,941
4,992

58,565
15,63342,93245,092
4,908

Note: Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.

JGAAP

Ratios:Gross profit margin
Operating margin
EBITDA margin
ROE
ROA
Gross D/E ratio (times)
Net D/E ratio (times)
Ratio of equity attributable to owners of parent
to total assets
Price earnings ratio (PER) (times)
Dividend payout ratio
Total return ratio

2019.32020.32020.32021.32022.32023.334,315
265,724
184,653
33,467518,161
3,559
154,930
100,572
14,609273,672

39,352
284,089
176,867
40,671
540,980
4,339
165,449
98,94917,041
285,779

—
—
—
—
—
4,339
165,449
98,94917,041
285,779

39,957
307,715
189,587
37,083574,343
7,050
184,968
102,484
15,281
309,785

44,546
317,059
243,501
45,126650,233
8,789
198,391
123,40217,800348,384

49,189342,201
266,947
53,781
712,120
11,929212,716130,186
21,283376,1162019.32020.32020.32021.32022.32023.3

33.9
13.8
21.9
12.9
10.4
0.19
—
65.2

32.9
14.3
21.7
12.3
11.5
0.15
—
67.1

34.2
15.7
22.2
20.3
14.8
0.40
—
50.9

34.5
16.2
23.8
18.3
14.2
0.61
0.20
44.1

33.8
14.7
23.6
18.2
11.6
0.36
(0.11)
50.3

35.3
17.4
23.9
21.3
14.5
0.62
0.27
43.0

34.6
16.2
22.5
20.7
13.3
0.52
0.19
47.6

22.1
39.1
129.8

23.3
41.5
113.4

20.9
27.9
258.9

24.9
33.2
326.8

38.8
41.3
60.2

33.3
33.1
117.1

23.8
34.9
61.1

2018.3

JGAAP
2019.32020.32020.3

IFRS
2021.32022.32023.3

228
227
1,760
90

72
71
587
90

109
109
455
32

91
91
418
32

88
88
547
36

120
120
575
40

128
128
674
45

(yen)

Per Share Information:
Basic earnings per share
Diluted earnings per share
Equity attributable to owners of parent per share
Annual dividends per share

Notes: 1. Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.
		 2. EBITDA is calculated as Operating profit + Depreciation and amortization + Goodwill amortization up to FY March 2017, as Operating profit + Depreciation and amortization +Goodwill amortization + Loss on retirement of non-current assets from FY March 2018 and as Operating profit + Depreciation and amortization + Loss on retirement of non-current
assets ± Temporary factors from FY March 2020 (IFRS).
		 3. NRI implemented a 1:3 common stock split on July 1, 2019. Basic earnings per share, diluted earnings per share, and net assets per share are calculated by deeming stock splits
to have occurred respectively at the beginning of FY March 2019. Dividends per share for FY March 2019 are based on the number of shares prior to the stock split.
		 4. The dividend payout ratio is calculated by dividing the total sum of dividends (including dividends to the NRI Group Employee Stock Ownership Group) by Profit attributable toowners of parent.

128

Nomura Research InstituteCorporate Information / Data

Notes: 1. Figures less than the unit indicated have been rounded down for amounts.
		 2. The amounts are based on sales prices.
		 3. In regard to continuous services and those services for which fees are received according to the number of times used, etc., expected revenue for the following year is booked as
the order amount at the end of each fiscal year.
		 4. O rder volume had previously included exchange rate impact arising due to order backlog at the start of the fiscal year, but we have switched to a method that does not include this
impact starting in FY March 2023.

Management Basis (ESG)

2018.336,285
244,794
174,260
30,154
485,494
6,764
141,574
94,12014,295
256,7542018.3

Materiality

IFRS

IFRS

Value Creation Capital

Order backlog

337,197
161,305
28,514

Notes: 1. Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.
		 2. The amounts are based on production costs. The amount for each segment is the figure before intra-company transfers between segments.
The intra-company transfer amount has been eliminated in the adjusted amount.
		 3. The subcontracting ratio is the ratio against actual production; the subcontracting ratio to Chinese companies is the ratio against total subcontracting costs.

(millions of yen)
JGAAP

Consulting
Financial IT Solutions
Industrial IT Solutions
IT Platform Services
Total
Consulting
Financial IT Solutions
Industrial IT Solutions
IT Platform Services
Total

327,324
150,635
23,2132023.3(%)

Notes: 1. Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.
		 2. Revenue to main clients includes revenue to the client’s subsidiary and revenue made through leasing companies, etc.
		 3. There was a partial revision to segment categorization for FY March 2020. Figures for FY March 2019 reflect this change in categorization.
		 4. The classification of revenue was changed from the method based on the location of sales destinations to the method based on the location of the headquarters of each company.

Order volume

304,044
135,522
19,5322022.3

Value Creation

38,572
273,571
112,762
66,37451,022
43,411
178,490
66,789111,700

2020.3

MTP2025

38,572
273,571
112,762
66,37451,022
43,411
178,490
66,789111,700

2020.3Growth Story for 2030

34,839252,367
100,309
64,874
43,40443,780180,882
66,814
114,0682018.3

IFRS
2021.3

V2030

34,577
252,122
118,397
51,83642,22539,662
154,91761,057
93,860

Production and Orders:
Actual production
Subcontracting costs	Of which are subcontracting costs to
Chinese companies
Subcontracting ratio (%)
	Subcontracting ratio to Chinesecompanies (%)

JGAAP
2019.3

NRI’s Value Co-Creation

Segment Information:
External revenue Consulting(Revenue toFinancial IT Solutions
external clients)
Securities
Insurance
Banking
Other financial
Industrial IT Solutions
Distribution	Manufacturing, service
and other
IT Platform Services
External revenue Consulting+
Revenue
Revenue forOperating profit
each segment
Operating margin (%)
Financial IT Solutions
Revenue
Operating profit
Operating margin (%)
Industrial IT Solutions
Revenue
Operating profit
Operating margin (%)
IT Platform Services
Revenue
Operating profit
Operating margin (%)
External revenue Consulting services
by service
System development &System applications sales
System management &Operation services
Product sales
Revenue to
Nomura Holdings, Inc.
main clientsSeven & i Holdings Co., Ltd.
Overseas
Overseas revenue
revenue
Overseas revenue ratio (%)(millions of yen)

IFRS

Message from the CEO

JGAAP

Integrated Report 2023

129

Corporate Information / Data

Non-Financial Highlights
E: Environment-Related Data
Greenhouse Gas Emissions (NRI Group data)(1,000 t-CO2)• FY March 2023: Reduced greenhouse gas emissions by
65.5% compared with FY March 2020.

(%)

30

27.2

10

42.3
27.9
6.8

7.1

7.6

19.3

20.3

21.3

8.3

22.3

9.2
20

0

Scope 3
90.5%

23.3

1,200

8.1

8.3

922

900

911

563.6
425.2

402.5

100

98.7
20.3

21.3

22.3

Green revenues (Revenues of business platforms)

2.5

300

–

–

19.3

20.3

306

0

23.3

22.3

Note: Calculated as hours that exceed the statutory working hours (40 hours per week)“−” indicates that the calculated value does not exceed the statutory working hours

Other revenue

0

23.3

309

227

155

267
21.3

353

290

860

765

336
262

244

20

21

18

21

22

19.3

20.3

21.3

22.3

23.3

Value Creation

19.3

600

128.5

108.4

102.9

103.6

5.0

MTP2025

7.8

666

503.2

Growth Story for 2030

10.0

200

0

(Non-consolidated data)(Copies / times)

7.5

447.4

23.3

Information Communication / Recommendation Projects

550.3

400

22.3

Average Overtime Hours Per Employee per Year

611.6
528.8

21.3

Childcare leave acquiring rate (including partner childbirth leave)
Childcare leave acquiring rate
Note: The basis for the data has been changed from FY March 31, 2022. Accordingly,
data for the period prior to FY March 31, 2021, has been recalculated based on
the same standards.

692.1

700

20.3

Female hires ratio
Female managers ratio
Note: The female managers ratio is the value at the beginning of the term.

(Non-consolidated data)(hours)(billions of yen)

19.3

Public lectures given
Contributions to newspapers and magazines
TV / radio appearances
Books published

Client Satisfaction (Non-consolidated data)(persons)(%)(%)

18,00016,512

12,0009,000
6,000

12,578
1,453
1,761
345
15

13,43013,278
1,385
1,579
1,903
1,860
218
328
12
16
9,495

9,004

9,912

3,296

3,736

1,904
1,063
13

1,975
869
16

10,236

10,798130EuropeNomura Research Institute

20.3
U.S.

21.3
Asia

Australia

22.3

543

496

452

23.3

83.8

86.4

88.7

200

19.3

4.3

3.8

2.7

3.1

2.3

20.3

21.3

10

20

F

30

E–

40

E

E+ D–

50

60

D D+ C–70

C C+ B–

80

B

90

B+

100

A

40

5.1

5.0
3.1

3.1
22.3

(June, 2023)

80

60

3.9

NRI: 71

89.1

12

300

0

86.9

9

100

19.3

15

622

600

100

23.3

6
3
0

New hires (left scale)
Turnover rate (right scale)*1
Voluntary employee turnover rate (right scale)*2
Note: The total turnover rate is the ratio of retiring employees to the number of employees
at the end of the fiscal year.
*1 Including mandatory retirees*2 Not including mandatory retirees

20

0

19.3

20.3

21.3

22.3

23.3

Note: Number of questionnaire responses by project unit that NRI received an order for.
Percentage that responded “Satisfied” or “Moderately satisfied” (total for top twoitems on five-grade scale).

Reference:
Average scores in the systems integrators &contracted developers industry among
Wevox user companies: 67
Notes: 1. Using the engagement analysis tool Wevox provided by Atrae, Inc., we surveyed
employees at NRI alone and at five Group companies (NRI SecureTechnologies,
NRI Workplace Services, NRI Social Information System Services, NRI Digital,
and Nomura School of Advanced Management) with a high percentage of
employees seconded from NRI.
		 2. Engagement scores are assigned ranks A through F as indicators.

Integrated Report 2023

Corporate Information / Data

Japan

700

500

18

748

400

3,000
0

800

Engagement Score

Management Basis (ESG)

15,00017,394

Materiality

Number of Hires / Turnover Rate (Non-consolidated data)(persons)

Value Creation Capital

S: Social-Related Data
Number of Employees (NRI Group data))

V2030

Green Revenues (Revenues of Business Platforms) (NRI Group data)

501.2

12.6

0

23.3

Note: Scope 2 is calculated based on market standards.

600

17.9

5

Category 1
Purchased goods andservices

300

63.8

35.0

15

Category 2
Capital
goods

20

500

62.6

62.4
60

40

Category 3
Fuel-and-energyrelated activities

Amid concerns over rising power usage by the IT services
industry as a whole, NRI has formulated a business plan
intended to reduce power usage by the IT activities of theentire value chain, including client companies. Specifically,
growing NRI’s shared online service revenues will likely serve
to curb the carbon dioxide emissions of society as a whole.
Data indicates that using NRI’s shared online service canallow our clients to cut their CO2 emissions by around 70%,
compared with if they build and operate their own systems
independently.

68.6

20

30

22.3

76.7

80

25

65.5%

21.3

27.6

28.2

34.1

NRI’s Value Co-Creation

Scope 1+2
9.5 %

55

20.3

33.2

35

Category 6
Business travel

50.1%

60

Male Childcare Leave Participation Rate (Non-consolidated data)(%)

FY March 2023
Others8.2%

Female Hires Ratio and Female Managers Ratio (Non-consolidated data)

Message from the CEO

Greenhouse Gas Emissions (Scope 1+Scope 2) (NRI Group data)131

Corporate Information / Data

Non-Financial Data
ESG Databook2023
https://www.nri.com/en/-/media/Corporate/en/Files/PDF/sustainability/library/ESG_Databook_2023_e.pdf

E: Environment-Related Data

2020.32021.32022.32023.3—(Base year)

8.2

50.1

65.5

—

0.7

3.3

50.6

72.6

—

(Base year)

21.6

24.4

12.4

2019.32020.32021.32022.32023.3

1
1
0
64
61
2
66
63
2

1
1
0
58
56
2
60
58
2

1
1
0
53
53
0
55
55
0

1
1
0
28
28
0
30
29
0

1
1
0
19
12
6
20
14
6

(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)(1,000 t-CO2)

Notes: 1. Scope: Target scope of calculation/reporting for greenhouse gas emissions by corporations
			 Scope 1: Direct emissions through combustion of fuel, etc.
			 Scope 2: Indirect emissions through use of electricity, heat, steam, etc.
			 Scope 3: Indirect greenhouse gas emissions other than Scope 1 and 2. Manufacturing in the supply chain, commuting by employees, business travel, etc.
		 2. Scope 2 includes results of calculations based on market standards.

Persons

Percentage (%)

2021.3
Persons

Percentage (%)

2022.3
Persons

Percentage (%)

2023.3
Persons

Percentage (%)

100
71.6
0.1
2.7
14.0

13,278
9,495
16
328
1,860

100
71.5
0.1
2.5
14.0

13,430
9,912
12
218
1,903

100
73.8
0.1
1.6
14.2

16,512
10,236
13
1,063
1,904

100
62.0
0.1
6.4
11.5

17,394
10,798
16
869
1,975

100
62.1
0.1
5.0
11.4

1,168

9.3

1,244

9.4

1,289

9.6

1,323

8.0

1,318

7.6

1,453

11.6

1,579

11.9

1,385

10.3

3,296

20.0

3,736

21.5

2019.32020.3

496
4.3
3.1
14.7
92.8
12,3522021.3

543
3.8
2.3
14.7
92.4
12,2512022.3

622
5.1
3.1
14.8
94.1
12,3202023.3

748
5.0
3.1
14.6
91.2
12,421*1 Including mandatory retirees*2 Not including mandatory retirees

2019.32020.32021.32022.32023.3

—
71.3
0
2

—
71.1
0
1

8.1
64.1
0
0

8.3
67.1
0
1

7.8
70.5
0
0

Note: Number of employees with disabilities at NRI and its Group companies

Health and productivity management (Non-consolidated data):
Average overtime hours per employee per year*1
Employees taking annual paid leave (%)
Employee work-related deaths (persons)Work accidents (cases)*2*1 Calculated as hours that exceed the statutory working hours (40 hours per week)“–” indicates that the calculated value does not exceed the statutory working hours.
*2 Figure represents the number of either fatal accidents or incidents necessitating four or more days’ leave due to a casualty accident.

Client satisfaction survey and employee satisfaction(Non-consolidated data):
Client satisfaction (%)*1
Employee satisfaction (%)*2
Engagement Score*3

2019.32020.32021.32022.32023.3

86.9
—
—

83.8
81.8
—

86.4
—
—

88.7
—
70

89.1
—
71

2020.32021.32022.32023.3

19.8
6.8
4.2
27.6

20.4
7.1
4.1
28.2

20.8
7.6
5.9
27.2

21.7
8.3
6.5
33.2

22.1
9.2
8.5
34.1

2021.32022.32023.3

78
260
178
51
70

61
273
204
83
65

68
243
175
96
68

67
284
225
124
59

112

103

108

94

95

96.7
92.8
3

98.1
96.8
0

100.0
96.5
1

97.0
94.9
2

97.9
97.0
3

2020.32021.32022.32023.3

20
306
922
267

21
290
911
155

18
353
666
227

21
309
765
244

22
336
860
262

2019.32020.32021.32022.32023.3

1,444
31
850

2,300
29
704

1,925
2
41

3,043
4
131

2,215
20
647

G: GovernanceMember of Directors (Non-consolidated data) (As of July 1):
Total number of Directors
Outside Directors
Female Directors

2019.72020.72021.72022.72023.7

9
3
1

9
3
1

9
3
1

9
3
1

9
3
1

Status of the Board of Directors (Non-consolidated data):
Number of Board of Directors meetings held (times)
Attendance average of all Directors (%)
Attendance average of Outside Directors (%)
Attendance average of all Audit & Supervisory Board Members (%)
Attendance average of Outside Audit & Supervisory Board Members (%)

2019.32020.32021.32022.32023.3

14
98
95
99
98

14
99
98
100
100

14
100
100
100
100

14
99
97
100
100

14
100
100
100
100

2019.32020.32021.32022.32023.3

17
99
98

17
100
100

18
100
100

17
100
100

18
100
100

2019.32020.32021.32022.32023.3

4

3

4

3

7

Number of Audit & Supervisory Board meetings held
(Non-consolidated data):
Number of Audit & Supervisory Board meetings held (times)
Attendance average of all Audit & Supervisory Board Members (%)
Attendance average of Outside Audit & Supervisory Board Members (%)
Number of notifications & consultations (Non-consolidated data):
Number of notifications & consultations (cases):

Corporate Information / Data

2020.3

72
261
188
38
67

Development of human resources /Development of society (Non-consolidated data):
Entries to the NRI Student Essay Contest
Supporting career education programs
No. of schools
No. of students

2019.3

Note: These are the number of employees who started a period of leave by the end of the fiscal year in question.
*1 The basis for the data has been changed from FY March 2022. Accordingly, data for the period prior to FY March 2021 has been recalculated based on the same standards.
*2 Number of employees returning to work in the current fiscal year after taking childcare leave / number of employees expected to return to work after taking childcare leave in thefiscal year × 100%.
*3 Number of employees who returned to work in the previous fiscal year after taking childcare leave and who were employed by NRI as of the end of March of the current fiscal year /number of employees who returned to work after taking childcare leave in the previous fiscal year × 100%.

132

Nomura Research InstituteManagement Basis (ESG)

2019.3

Information communication / Recommendation projects(Non-consolidated data):
Books publishedContributions to newspapers and magazines (times)
Public lectures given (times)
TV / radio appearances (times)

Materiality

2019.3* As of the beginning of each fiscal year (April 1)
Experts: Employees in expert positions
Managers: Department managers and section managers among experts

Childcare leave / Nursing leave (Non-consolidated data):
Pre- and post-childbirth leave (persons)Childcare leave (persons)*1
Male (including partner childbirth leave) (persons)Male (persons)Female (persons)
Number of employees utilizing shorter work-hour system for childcare(persons)
Employees returning to work after childcare leave (female employees) (%)*2
Employees remaining in work after childcare leave (female employees) (%)*3
Nursing care leave (persons)

191
2.42

Value Creation Capital

Promotion of women’s participation and advancement in the workplace (Non-consolidated data):
Ratio of female employees (%)
Ratio of female experts (%)*
Ratio of female managers (%)*
Ratio of female hires (%)

2023.3181
2.37

Value Creation

452
3.9
2.7
14.6
95.9
12,2172022.3170
2.35

MTP2025

12,578
9,004
15
345
1,761

Employment related (Non-consolidated data):
New hires for the year (persons)Turnover rate (%)*1
Voluntary employee turnover rate (%)*2
Average length of service (years)
New graduate hires retention rate after 3 years (%)
Average compensation: all employees (thousands of yen)2021.3166
2.45

Growth Story for 2030

Percentage (%)

2020.32020.3

142
2.26

V2030

Persons

Number of employees
By region Japan
EuropeU.S.
Asia
	Of which are from
China
Australia

2019.32019.3*1 Percentage that responded “Satisfied” or “Moderately satisfied” (total for top two items on five-grade scale)*2 A response to a question on overall satisfaction is used for employee satisfaction. This is the percentage that responded “Satisfied” or “Moderately satisfied” on four-grade scale.
*3	Using the engagement analysis tool Wevox provided by Atrae, Inc., we surveyed employees at NRI alone and at Five group companies (NRI SecureTechnologies, NRI Workplace Services,
NRI Social Information System Services, NRI Digital, and Nomura School of Advanced Management) with a high percentage of employees seconded from NRI.

S: Social
Number of employees (NRI Group data):

Employment of people with disabilities (NRI Group data):
Employees with disabilities (persons)
Percentage of employees with disabilities (%)

NRI’s Value Co-Creation

Greenhouse gas emissions (NRI Group data):
Direct greenhouse gas emissions (Scope 1)
Japan
Overseas
Indirect greenhouse gas emissions (Scope 2)JapanOverseas
Total emissions (Scope 1 + 2)
Japan
Overseas2019.3Message from the CEO

Environmental KPI (NRI Group data):
CO2 emissions (Scope 1 + 2) reduction rate(compared to FY March 2020) (%)
Renewable energy usage rate
CO2 emissions (Scope 1 + 2 + 3) reduction rate(compared to FY March 2020)(%)

Integrated Report 2023

133

Corporate Information / Data

Corporate Data / Share Information (As of March 31, 2023)
Corporate Data

Major Shareholders

Share Price and Market Capitalization Over the Past Five Years

Shareholders

Headquarters address

Otemachi Financial City Grand Cube,
1-9-2 Otemachi, Chiyoda-ku,
Tokyo 100-0004, JapanThe Master Trust Bank of Japan, Ltd.
(Trust Account)

74,682

12.62

Capital¥23,644 million

Nomura Properties, Inc.

67,518

11.41

President & CEO

Chairman, Member of the Board
Representative Director
Shingo Konomoto

Nomura Holdings, Inc.

64,320

10.87

Japan Trustee Services Bank, Ltd.
(Trust Account)

30,346

5.13

NRI Group Employee Stock OwnershipGroup

24,970

4.22

Nippon Life Insurance Company(Standing Agent: The Master Trust Bank ofJapan, Ltd.)24,727

State Street Bank and Trust Company
505223 (Standing Agent: Mizuho Bank,
Ltd., settlement division)

16,799National Mutual Insurance Federation ofAgricultural Cooperatives (Standing Agent:
The Master Trust Bank of Japan, Ltd.)13,434

2.27

SEVEN-ELEVEN JAPAN CO.,LTD.

7,804

1.32

Number of employees(Consolidated basis)

17,394 persons

Share Information
Tokyo Stock Exchange Prime Section

Code

4307

Fiscal year

From April 1 to March 31 of the following year

Ordinary General
Meeting of Shareholders

June

Share unit

100 shares

Authorized shares

2,722,500,000 shares

Issued shares593,652,242 shares

Number of shareholders

35,350 persons

Transfer agent(address for inquiries)

Mitsubishi UFJ Trust and Banking Corporation
Shin-Tokyo Post Office
Po Box No. 29 137-8081, Japan
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
Tel: 0120-232-711 (toll-free in Japan)

6,000

Closing price (adjusted)

6,000

Market capitalization

5,000

5,000

4,000

4,000

3,000

3,000

2,000

2,000

1,000

1,000

4.18

2.84

0

2018/3

2019/32020/32021/32022/32023/30

2018/4/2

State Street Bank West Client-Treaty
505234 (Standing Agent: Mizuho Bank,
Ltd., settlement division)

7,638

1.29

Total Shareholder Return (TSR) Over the Past Five Years
(%)
350

NRI

TOPIX

MTP2025

Notes:
1. N
 RI has 1,959 thousand shares of treasury stock as of March 31, 2023, which is notincluded in the major shareholders list above.
2. F igures for number of shares held are rounded down to the nearest thousand andfigures for percentage of shares held are calculated excluding treasury stock.

Growth Story for 2030

Shareholder fixed day
for dividend payment(billions of yen)

300

250

September 30, March 31
200

−

−

Financial institutions

105

1,605,822

Securities firms

48

99,745

 ompanies incorporatedC
in Japan516

1,420,846

National & local government

Companies incorporated
in other countries

 ther thanO
individuals
Individuals

Total
Status of less than one trading
unit (shares)

2,072,12375

431

33,823

734,415

35,3505,933,382—

314,042Companies
incorporated inother countries:(Individuals)
0.01%
Companies
incorporated inother countries:(Other than
individuals)
34.92%

100

50

Securities firms:
1.68%
Companies
incorporated
in Japan:23.95%

Note: The treasury stock is included in “Individual and other shareholders.”0

2018/3

2019/32020/32021/32022/32023/3

Holding period

1 year

2 years

3 years

4 years

5 years

NRI

101.6%

139.9%

209.7%

247.5%

193.3%

TOPIX

95.0%

85.9%

122.1%

124.6%

131.8%

Note: Total shareholder return (TSR) is a ratio calculated by dividing revenues earned through stock investment (dividends and capital gains) by the amount of investment (stock price).
The graph and table shown above display the TSR when investment was made on March 31, 2017. Based 100% on the closing price on March 31, 2017.
Source: Compiled by NRI

Nomura Research InstituteCorporate Information / Data

Notes: 1. The 1,959,169 treasury shares include 19,591 trading units in “Individuals andother shareholders” and 69 shares in “Status of less than one trading unit.”
			 2. Shares under the name of Japan Securities Depository Center, Inc., account for
65 trading units in “Companies incorporated in Japan” and 34 shares in “Statusof less than one trading unit.”

Management Basis (ESG)Individuals and othershareholders

783

Individuals andother shareholders:
12.38%

Materiality

Number ofshares held
(trading units)

150

Financial
institutions:27.06%

Value Creation Capital

Number ofshareholders(people)Category

Value Creation

Component Ratio of Shareholders

Composition of Shareholders

134

V2030

Listed stock exchange(yen)

NRI’s Value Co-Creation

Nomura Research Institute, Ltd.

Message from the CEO

Percentage of
Number of shares
held (1,000 shares) shares held (%)

Name

Integrated Report 2023

135

Corporate Information / Data

Participation in Initiatives

External Recognition Regarding ESG
NRI is rated highly on sustainability by outside institutions.

United Nations Global Compact (UNGC)
The UN Global Compact is a voluntary initiative in which businesses and organizations operate as upstanding
members of society and help create global frameworks for achieving sustainable growth by exercisingcreative, responsible leadership.
		 NRI is active both in Japan and on a global scale. To continue to gain trust from society and meet
expectations, NRI endorsed the United Nations Global Compact (UNGC) and announced its participationin May 2017.

CDP
Continued from 2020

Message from the CEO

Since May 2017MSCI AAAContinued from 2021

As of 2022, Nomura Research Institute, Ltd., received an MSCI ESG Rating of AAA.

Since June 2018

Since July 2018

Japan Climate Initiative
This network bolsters communication and exchanges of opinions between various companies, local governments, groups,
NGOs, and other non-national government entities that are
actively working to counteract climate change.

Task Force on Climate-Related Financial Disclosures
NRI endorses the TCFD Final Report, established by the
Financial Stability Board, an international organization for thestabilization of the global economy.

Dow Jones Sustainability World Index
Adopted for five consecutive years from 2018
Dow Jones Sustainability Asia Pacific Index
Adopted for seven consecutive years from 2016

NRI has been included in all six ESG stock indices selected by
the GPIF for domestic stocks from the very beginning.

NRI’s Value Co-Creation

NRI is included in the equities used for the main ESG stock indexes.

MSCI JAPAN ESG SELECT LEADERS INDEX*

V2030

MSCI EMPOWERING WOMAN INDEX (WIN)*

Business Ambition for 1.5°C
A joint letter by the United Nations Global Compact (UNGC),
Science Based Targets initiative (SBTi), and We Mean Businessthat requests corporations to set a target of limiting the futurerise in temperature to 1.5° Celsius.

MTP2025

Since May 2020

Renewable Electricity 100%
This environmental initiative was established to reduce the environmental impact arising from business activities. Its goal is tomeet 100% of power needs for business activities with renewable energy.

* THE INCLUSION OF Nomura Research Institute, Ltd IN ANY MSCI INDEX, AND THE
USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMESHEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT ORPROMOTION OF Nomura Research Institute, Ltd BY MSCI OR ANY OF ITS
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI OR ITS AFFILIATES.

Growth Story for 2030

Since February 2019MSCI ESG Leaders Indexes*
Index renamed from MSCI Global Sustainability Indexes
Adopted for eight consecutive
years from 2016

FTSE Blossom Japan Sector Relative Index

Value Creation

FTSE4Good Index Series
Adopted for 17 consecutive years
from 2006

FTSE Blossom Japan Index

Race to ZeroAn international campaign to mobilize non-state actors such ascompanies, government agencies, investors, and universities allover the world to immediately take action toward achieving a
50% reduction in net greenhouse gas emissions by 2030.

Sompo Sustainability Index
Adopted for 12 consecutive years
from 2012

2023
S&P/JPX Carbon Efficient Index
Sompo Sustainability Index

GX League Basic Concept (became GX League in May 2023)
A forum for companies attempting GX and seeking sustained
growth both now and in the future to join forces with groups ofcompanies engaged in similar efforts and collaborate with government and academia toward achieving carbon neutrality andtransforming society by 2050.

Nomura Research InstituteMorningstar Japan ex-REIT Gender Diversity Tilt Index

NRI receives sustainability-related awards.
the japan times
Sustainable Japan Award 2022
Grand PrizeJapan Association of Corporate Directors
Corporate Governanceof the Year 2022
Selected as Winner Company

Corporate Information / Data

136

Since February 2022

World Business Council for Sustainable Development(WBCSD)
The WBCSD was founded in 1995 to promote international interest
and action pertaining to environmental conservation and economic
development. Its purpose is to make sustainable development
recommendations that come from the business world.

Management Basis (ESG)

Euronext Vigeo World 120 Index
Continued selection from 2021

Since January 2019

Materiality

Since June 2020

Science Based Targets Initiative
This initiative seeks to have companies set reduction targets thatare consistent with scientific knowledge in order to keep the
average global temperature increase below 2°C.

Value Creation Capital

Since September 2018

Integrated Report 2023

137