Integrated Report 2022
Year ended March 31, 2022

COVER STORY

Opening an
Unknown
World
Social issues have become complex in recent years,
and their resolution has been required even more strongly.
We believe that digital technologies will be playing a large rolein the resolution of social issues.
We were made to create social value. As such, we have thecapability to discern the future as well as the capability toactualize and provide solutions derived from those insights.
We will take on the challenge of resolving social issues using
digital technology, and pursue the prosperity of people throughdigital technology.

Nomura Research InstituteConsulting×
IT Solutions
Creating Digital Social Capitaland Transforming the World
DynamicallyIntegrated Report 2022

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COVER STORY

1965 RESEARCH CONSULTING(Former) Nomura Research Institute EstablishedJapan’s First Full-fledged Private Sector Think Tank
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 ResearchInstitute, Ltd. The objective was to make a dramatic leap to develop into a high-quality researchand investigation institution.
The founding prospectus, “Nomura Research Institute its Concept and Policies,” describes thefollowing 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 of service to society throughresearch studies.” This has been passed down to today in NRI’s DNA, which makes it an organization
with the primary goal of creating new social value and engaging in the resolution of social issues
through its main business activities.

The founding prospectus offormer Nomura ResearchInstitute(Produced by Nomura
Securities in 1962)

Consulting and
IT Solutions Usheredin the Era“To promote industry and be of service to society through research studies” and “to take the varied expertise acquired throughadvanced system development and put it to use for management rationalization and other benefits of more companies” are,respectively, the founding spirit of the former Nomura Research Institute, Ltd., and of Nomura Computer Systems Co., Ltd.
We have carried on the founding spirit of both companies even until today as we have created new social value and resolved
the challenges faced by society and by our clients, by providing consulting and IT solutions.

1966

IT SOLUTIONS

Nomura Computer Systems EstablishedJapan’s First Commercial Use of Computers
The origin of NRI’s IT solutions business is the Electronic Data Processing Division of
Nomura Securities Co., Ltd., that was established 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 the commercial use of
The commercial computer (UNIVAC-120)
adopted by Nomura Securities
a computer. This is the result of the desire and passion to create new systems previously
unseen in the world.
In 1966, the Electronic Data Processing Division spun off from Nomura Securities tobecome 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 andother benefits of more companies. The philosophy indicates an attitude to be of service to society as well as create new value.
* Company name changed to Nomura Computer Systems Co., Ltd., in 1972.

02

Nomura Research Institute1988
MergerLaunch of New NRI
The History and Mission of NRI“When forecasting theadvanced information society
to come, there can be no thinktank without a systems function, and there can be no systems company without a thinktank function”(From the press conference following
the signing ceremony for the new NRI)

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

Integrated Report 2022

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03

COVER STORY

Diverse Professionals
Committed to Executing
Their Mission

04

Nomura Research InstituteDiverse human resources, who have inherited the founding spirit, are the drivers of NRI’s value co-creation.
NRI’s professionals, possessing knowledge and skills in every area, stand in unity under the “Dream up thefuture” corporate philosophy as an unrivaled team. They will continue launching the challenge of building afuture society through proposals that have looked into the far future and their sound execution.

Corporate Statement

The NRI Group’s corporate philosophy consists of four pillars:mission, business domain, management goals, and action guidelines.

MissionBusiness engagements

Discern new social
paradigms andimplement them

Create an innovative
society for the future

Build customer trust andestablish relationships formutual growth“Knowledge Creation andIntegration”- Apply
knowledge to create andintegrate businesssolutions for customers

Management goals

Action guidelines

Maximize corporate
value through“Navigation X Solution”

Challenge tirelessly withtrue professionalism

Integrated Report 202205

Business Overview

The NRI Group Business
The NRI Group business is divided into four business segments: Consulting, Financial IT Solutions, Industrial IT
Solutions, and IT Platform Services. While maintaining an industry-top-level competitive edge in its respective domain,each business segment flexibly forms teams with other segments as needed. The NRI Group’s strength is its possessionof both consulting and IT solutions functions. This makes it possible to swiftly and consistently provide on-target solutions that solve the priority issues faced by clients and society.

FY March 2022 Consolidated
Consolidated revenue¥

Consolidated operating profit

611.6 billion

106.2 billion

63 %Consolidated operating margin21.3 %¥

Number of employees(Consolidated base)

Ratio of DX-related revenue

ROE

Number of consultants

16,512 persons
Revenue per employee

17.4 %¥

Over

1,000 persons

Operating profit per employee

37.04 million¥

6.43 million

Industry Top Class

External Revenue by Segment

External Revenue by Service

IT Platform
Services

7.0%
Manufacturing,
serviceand other
25.2%

FY Mar. 2022
Consolidated

Consulting

Product Sales

Consulting Services

7.0%

2.8%

20.5%

Securities
21.8%

FY Mar. 2022
Consolidated¥611.6 billion
Distribution
11.2%

Industrial IT Solutions

36.4%¥611.6 billion
Insurance
11.3%

Other
financial
8.9%

Banking
7.7%

Financial IT
Solutions

System Management &Operation Services

System Development &System Application Sales

49.6%

44.6%

32.0%

Note: Ratios are for consolidated sales in FY March 2022.

06

Nomura Research InstituteRevenue / Operating Profit / Operating Margin(billions of yen)

(%)

800

30

25

611.6
600

471.4
400

363.8

12.1

421.4

405.9

385.9

12.7

12.9

424.5
13.8

13.8

13.8

550.4

528.8

501.2
14.3

20

15.7

15.7

17.4
15

10
200

43.9
0

13.3

Revenue

Operating profit

51.4

49.8
14.3

15.3

58.2
16.3

Operating margin

NRI’s Four Business Segments

58.5
17.3

65.1

18.3

71.4

19.3

83.1

20.3

86.5

21.3

106.2

22.3

5

0

* Figures for FY March 2022 are based on IFRS, and others are based on JGAAP

P.120–125

Consulting

Financial IT Solutions

 his segment provides management consulting,T
operational consulting, and system consulting forenterprises and government agencies. This segment is also engaged in research, future projections, and recommendations related to society,economics, business, and technology, etc.

 his segment provides system consulting, systemTdevelopment and system management solutions,shared online services, and BPO services forfinancial institutions mainly in the securities, insurance, banking, asset management, and otherfinancial sectors.

Industrial IT Solutions

IT Platform Services

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

 his segment provides data center operationsTand constructs IT platforms and networks for the
Financial IT and Industrial IT Solutions segments.
This segment also provides IT platform solutions
and information security services to external clients.
Furthermore, NRI conducts research related toadvanced information technology, etc.

Integrated Report 2022

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Contents / Editorial Policy

  6
  8
10
18

42

64

96

118

126

08

COVER STORY
Business Overview  6 The NRI Group Business
Contents / Editorial Policy
CEO Message
NRI’s Value Co-Creation
20 NRI Sustainability Management
22 A Path of Unchanging Value Co-Creation
24 Process of Value Co-Creation
26 Initiatives for Sustainability Management
28 Business Model
29 In Relation to Competitive Advantages
30 Competitive Advantages
35 Outcome of Business Model and Competitive Advantages
36 Opportunities and Risks due to Changes in the External Environment
38 Financial Highlights
40 Non-Financial Highlights
Growth Strategy
44 Transition of Growth Strategy
46 Vision2022 and Medium-Term Management Plan
54 Financial Strategy Message from CFO
56 Value Co-Creation
58 Practice for Value Co-Creation—The NRI Dream Up the Future Awards
60 Growth Story for 2030
Mechanisms for Supporting Value Creation
66 Message from the Head of Corporate Headquarters
68 NRI’s Human Resources Strategy
72 Human Resource Investment that Is Top-Class among Japanese Companies
Human Capital
74 Initiatives to Improve Engagement
75 Promoting Diversity and Inclusion, and Respect for Human Rights
77 Work-Style Reform Issues and Health and Productivity Management
Intellectual and
78 The Source of NRI’s Competitiveness
Manufacturing Capital
85 Cooperation with Stakeholders
Social and Relationship Capital
87 Information Disclosure and Communication
88 Reduction of Environmental Impact for Preserving Global Environment
Natural Capital
91 Initiatives Regarding the TCFD Final Report
Governance
98 Talking about Governance
102 NRI’s Corporate Governance
104 Board of Directors and Advisory Committees
106 System of the Board of Directors and the Audit & Supervisory Board
109 Compensation for Members of the Board and Audit & Supervisory Board Members
112 Initiatives for Issues Recognized in Effectiveness Evaluations
114 NRI Executives
116 Internal Controls, Corporate Ethics, and ComplianceBusiness Segments
120 NRI’s Four Business Segments
122 Consulting
123 Financial IT Solutions
124 Industrial IT Solutions
125 IT Platform Services
Corporate Information / Data
126 10-Year Summary Consolidated Financial Statements
128 Consolidated Financial Data
130 ESG Data
132 NRI Group Network
133 Corporate Data / Share Information

Nomura Research InstituteEditorial Policy for the Integrated Report 2022
Since FY March 2014, NRI has published integrated reports that provide explanations while associating important financial andnon-financial information. These reports aim to give an overall picture of NRI in a concise and clear manner.
The Integrated Report 2022 has improved its content using feedback from stakeholders as reference. In particular, we enrichedthe content related to our human capital, which is one of NRI’s competitive advantages. Furthermore, we have included an outlineof Group Vision 2030, which is the next long-term management vision that we are currently formulating.
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) within the pages of this Integrated Report for your use.
NRI works toward the medium- to long-term enhancement of its corporate value. We strive for even deeper communication
with stakeholders to enable the determination of its value.
Guidelines Referenced for the Disclosure of Information

Guidance for Integrated Corporate
Disclosure and Company-Investor
Dialogues for Collaborative Value Creationby the Ministry of Economy, the Trade andthe Industry (METI)IFRS Foundation- Integrated Reporting Framework
International integrated Reporting
Framework

GRI Standard by Global Reporting
Initiative (GRI)

Categorization for NRI’s Disclosure Information

Websitehttps://www.nri.com/en
Broad

Knowledge Insight
Solutions & Services
Sustainability
News
About NRI
Investor Relations
Careers
NRI People
NRI JOURNALNRI VoiceCorporate
Brochure

Target audience

Integrated Report

Website

サステナビリティブック ２０２２

Specific

WebsiteSummaries and images

Content

Sustainability
Book 2022

Details and data
野村総合研究所

Corporate Brochure

Sustainability Book 2022

ESG Databook 2022

Cautionary Note on Forward-Looking Statements• This Integrated Report is prepared for the purpose of providing information on our performance in FY March 31, 2022 and ourstrategy 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.
• The trademarks that appear in this report are the trademark 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.

Integrated Report 2022

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CEO Message

Toward 2030, the NRI Group will haveinsight into the prosperity that lies
beyond digital transformation (DX) andprovide value to society by creating
digital social capital.
July 2022

Chairman and President & CEO
Representative Director
Member of the Board

The speed of the changes taking placein the world will accelerate in the next
10 years.
The world economy is becoming increasingly
uncertain due to global issues, such as the escalation in the price of energy or supply-chain related
problems associated with increased geopoliticalrisks. Social issues are becoming more complex.
Meanwhile, new services are being created, one
after another, through XaaS (Anything as a Service)in which anything becomes a service over a network. The fluidity of industrial structure, such as
the rise of new industries, will likely progress as
the walls that existed between business types andindustries crumble through the development ofplatforms on which diverse services collaborate.
What is more, the evolution and commoditization of state-of-the-art technology will also probably progress. When cloud computing and artificial
intelligence (AI) are utilized, and next-generation
communication technologies become commonplace, those technologies that were consideredadvanced up to then are expected to be put togeneral use.
While corporate management environments arebeing exposed to unprecedented changes, from a
medium- to long-term perspective, initiatives andinvestment toward decarbonization and othersocial issues of high importance are expected to

10

Nomura Research Instituteexpand. The role to be fulfilled by mechanismsthat utilize digital technology will continue toincrease going forward, and the integration ofbusiness and IT will create sweeping trends of a
new age. Transformation that utilizes digital technologies (DX) is expected to continue to be sought
going forward for wide-ranging needs, from thetransformation of individual enterprises to theresolution of global social issues.
Looking at the relationship between the Digital
Economy and Society Index (DESI), which wasannounced by the European Commission, and life
satisfaction, we can see that in countries that haveachieved a certain level of economic growth, there
is a strong correlation between digitalization andlife satisfaction levels. In Denmark, energy consumption is tracked through the installation ofsmart meters in all households. The accumulationof shared infrastructure and services that digitallysupport society and industries (i.e., digital social
capital) has progressed in Denmark and othersuch countries that are ahead of others in termsof digitalization.
Japan is facing the serious social issue of population decline. According to one forecast, negative
GDP growth in the 2030s is unavoidable for thecountry if the trends of the past decade in laborproductivity, employment rate, and working hours
continue. To realize a society in which people canlive in prosperity, Japan, too, must create digitalsocial capital by transcending the barriers between
the government and private sector, business types,
and industries. It is essential that productivity andadded value that surpass the effects of population
and working-hour decline will be created.
It goes without saying that such societies should
be sustainable. In particular, the issue of climatechange cannot be ignored as a global issue. To
realize decarbonization, DX will become indispensable alongside moving away from fossil fuels in the
combination of power sources. The achievementof effective resource utilization and advancement
toward the building of a sustainable society willprobably be required. One possible means forfinding optimal solutions for this would be the useof digital data to visualize various real-world phenomena and to carry out simulations in the digitalworld (digital twin technology). What is more, theensured safety and security of social

infrastructures, personal information, and others
through advanced security services will continue
to be of importance in the future.
Capitalism, which has continued for roughly 500
years, is now being pressed to undergo modifications. If capitalism continues as it is today, it could
result in forcing a negative legacy – including escalated natural disasters, the loss of biodiversity, andsocial inequality – on our planet and offspring of
future decades. We believe that to enable thesustainable development of society, it is importantthat NRI places further emphasis on the value it
can provide to society as a company, and synchronizes its growth strategy to the resolution ofsocial issues.

Integrated Report 2022

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CEO Message

With our sights set on the future, NRI
will continue to be an indispensable
existence for society.
NRI’s predecessor, the former Nomura ResearchInstitute, Ltd., was established in 1965 as Japan’s
first private-sector think tank. In its founding prospectus, NRI clearly stated its intention to “Engage
in comprehensive research in terms of both technology and economics,” “Carry out investigative
research activities (with a certain amount of economic purpose) in applied science fields,” and“Make the specific issues faced respectively byindustry, government, local public authorities, andthe general public the target of its investigative
research.” Furthermore, it stated that the aim ofestablishing NRI was “To promote industry and beof service to society” while exhibiting its originality.
The founding spirit is continued in the corporate
mission announced by NRI in 2000: “Discern newsocial paradigms and implement them,” and “Build
client trust and establish relationships for mutual
growth.” NRI’s corporate mission is a clear statement of the Company’s conviction that theenhancement of its corporate value lies no whereother than beyond the resolution of social issues.

In a move that foresaw an ideal information
services company, the former Nomura ResearchInstitute, Ltd., and Nomura Computer Systems
Co., Ltd., merged in 1988 to become the new
Nomura Research Institute, Ltd., a globally uniqueinformation services company that possesses
both research and digital systems functions. NRI’s
original business model, “Navigation x Solution”
and “Con-Solution” originated in this merger.
NRI has been engaged in proposing businessstrategies that are ahead of the times, making
policy recommendations, and the development
and operation of digital systems.
To continue contributing to the sustainable
development of society while exhibiting even moreof our true value, each of our employees must
reaffirm the corporate DNA that has been passed
down since NRI’s founding. The three social values
created by NRI – “Co-create a thriving future society,” “Co-create an ideal society,” and “Co-createa safe and secure society” – that were stated in
the Medium-Term Management Plan (2019–2022)
incorporate NRI’s founding spirit.
While working to instill the corporate philosophy,
NRI has also been engaged since 2019 in “value
co-creation activities.” They are activities for“To promote industry and be of service tosociety,” which was stated in thefounding prospectus, is at the root of
NRI’s sustainability management.

12

Nomura Research Institutethinking, from the bottom up, about providing
value to society. With the aim of having eachselected value co-creation leader place themselves in the shoes of NRI management to gain
insight into the social issues of the future, we
made the theme of value co-creation activities for
FY March 2022 “Message from the President in
the 2030 NRI Group Integrated Report.” In the
dialogue with value co-creation leaders, a straightforward exchange of opinions was carried out
regarding creating a future society with an eye to2030, and growth opportunities for the NRI Group.
At the NRI Dream Up the Future Forum, I, too,have been introducing the shape of future economic systems and industries, and NRI initiatives
based on those assumptions. As such, we havebeen implementing initiatives that are a combination of top-down and bottom-up approaches.

We will continue to keep our focus onstaying ahead of the times and providing high added value.
In the Long-Term Management Vision “Vision2022”(V2022) for the period between FY March 2016
and FY March 2023, we made “digital” one of
NRI’s axes for growth. We originally called it “business IT.” However, the transformation of businessmodels through the utilization of digital technologies eventually began, and we held the convictionthat it would create a significant opportunity for
NRI, which possesses capabilities in both consulting and IT solutions. This was at a time when theterm or concept of DX was still not commonly
known.
The move toward digitalization, which we hadoriginally assumed, began in earnest from around2017, and the term “DX” became commonplace inaround 2018. Our move to shift the focus of ourbusiness ahead of others worked in our favor. We
securely captured the tide of DX by implementing
NRI’s original Con-Solutions business model inwhich our consulting and IT solutions arms
worked as a team from the planning and conceptualization stages. They ran in tandem with clients,
repeatedly carried out hypothesis testing, andprovided value on an ongoing basis. Combining
our capabilities in consulting and IT solutions has
become the source of our added value. NRI has alarge number of consultants and researchers who
spent many years accumulating deep knowledgeof the industry in wide-ranging fields. They help
show our clients the way, while discerning thefuture of ten or fifteen years’ time and making
recommendations related to society. This is acapability that is distinctive of NRI, where the DNA
of a general think tank has been passed down.
Meanwhile, in the field of IT solutions, NRI has awealth of systems engineers and DX humanresources who can build from scratch information
systems that require extremely complex operational logic, and implement them to businesses.
The high quality required for mission critical systems and social infrastructures is assumed by NRI,
and as such, the Company hires talented humanresources and nurtures true professionals. Our
pursuit is not of “size” that enables the mobilization of large numbers of human resources. Rather,
we hire and develop human resources whileemphasizing high added value.
We are now in the final year of the Medium-Term
Management Plan (2019-2022), which defined the
direction of management in the latter four years ofV2022. In FY March 2022, which was the thirdyear of the medium-term management plan, we
took great strides in all of our strategies: the DX
Strategy, Global Strategy, and Human Resources
Strategy. As a result, we marked an operating
profit of ¥106.2 billion and an operating margin of
17.4%, and achieved medium-term management
plan targets one year ahead of schedule.
In regard to our global business, when V2022
was launched in FY March 2016, we took on thechallenge that began with overseas sales of ¥14.6
billion against consolidated sales of ¥421.4 billion.
Here, too, we were able to advance developments
through schemes that are distinctive of NRI,
which places its focus on high value added fields.
Candidate overseas markets where NRI will aim toprovide IT services in high added value fields fordomestic-demand oriented industries are industrialized countries that have reached a certain levelof maturity, have a high population growth rate,
and what is more, are orderly on the basis of laws
and rules. Of North America and Australia, whichmeet these conditions, we began by focusing onAustralia, building a business foundation throughsuch methods as M&A and other means of external growth. Beginning with the acquisition in 2016of ASG, which would become the base, we complemented necessary functions by moving ahead
with the acquisition of a total of eight companies insix years. Today, we have built a business model
similar to that in Japan in which full-line services,from IT consulting to development, operation,
BPO, IT infrastructures, and quality engineering

Integrated Report 2022

13

CEO Message

that handles the enhancement of the quality of
information systems, are provided. Overseas revenue in FY March 2022 increased about 72% year
on year to ¥76.5 billion. The results forecast for FY
March 2023 has been set at ¥105 billion, which
exceeds the target of the medium-term management plan.
Furthermore, helped by the implementation of
the purchase of treasury stocks during the fiscal
year, the ROE for FY March 2022 was 21.3%.
We are undertaking efforts for the achievementof growth in profits and the maintenance of an
ROE at the 20% level.

We have begun moving forward towardachievement of the Group Vision 2030.
With achievement of the goals set in V2022 now insight, in April 2022, NRI announced the outline ofits growth scenario for its new long-term management vision, “Group Vision 2030” (V2030), for
FY March 2024 through FY March 2031.
NRI’s corporate philosophy will remain the samein V2030. The two missions – “Discern new social
paradigms and implement them” and “Build client
trust and establish relationships for mutual growth”– which are the foundations of the corporate philosophy, and the corporate statement, “Dream up
the future,” will be upheld as a universal set ofvalues. “To promote industry and be of service tosociety,” which was stated in the founding prospectus, is at the root of NRI’s sustainability management. We are currently promoting discussion
within the Company on “our set of values” so thateach of us can share these values and together
achieve our vision. Each of us in the NRI Groupwill become the main players of having insight into
the prosperity that lies beyond DX,” and launching
the challenge of dynamically transforming theworld through digital social capital.
Three prioritized themes have been establishedin the growth scenario announced in April 2022.
They are, the “Expansion and deepening of coreareas,” “Evolution of the DX business,” and“Expansion of the global business.” The closely
scrutinized content of each of these prioritized
themes is scheduled to be announced in April
2023. Here, we will provide the outline.

14

Nomura Research InstituteWe will evolve the DX that will support
transformation at our client companies
and industries and continue our growth.
In addition to DX consulting in which we take on
the task of enabling the achievement of clienttransformation, the support of DX growth companies that leverage Con-Solution and digital development capabilities, and the evolution, such as
the migration of legacy IT assets, in “core areas,”
we will achieve the further growth of the businessplatform business, as represented by shared
online services, and the certain profit growththrough various production innovation. NRI’s DX
1.0, which supports such conventional systems
integration (SI), process transformation, and infrastructure transformation, continues to be a sourceof our profits.
As in the case of smartphones, digital services
on a platform, rather than the hardware, become
the product in digital capitalism, with data as thesource of value. As for the business model, we
believe that a transformation from the conventional
depreciation model to the appreciation model isrequired. That is, rather than the value of a productdecreasing with the passage of time, value islowest when the product is brand new, andincreases as services are updated. EARTHBRAIN
Ltd. was launched as a collaboration between
Komatsu Ltd., NTT DOCOMO, INC., Sony
Semiconductor Solutions Corporation, andNomura Research Institute, Ltd. It is a new, crossindustry platform and a prime example of NRI’s DX
2.0 concept.
The Next-generation Smart Construction being
promoted by EARTHBRAIN Ltd. consolidates all
the data from a construction site to enable thevisualization of the overall construction sitethrough digital twin technology. All processes arelinked on a platform to enable optimal control aswell as to create a construction site of the future,
which is superior in terms of safety, productivity,and environment. It can be said to be nothingother than an appreciation-type business model
itself in which accumulated data is leveraged tocontinually evolve an algorithm.
The strong will of top management to change toa digital-first mindset and transform the overall

company using digital solutions is necessary todevelop this kind of a business model. This iswhere the true value of the deep business insightsthat NRI has accumulated over the year and the
Con-Solution concept can be powerfully exhibited.

We will create digital social capital
toward a rich, thriving society.
To achieve the rich, thriving society of 2030
envisaged by NRI and presented in the outline of
V2030, the scope of our business must be
expanded from individual enterprises to clientindustries and society as a whole. This will makebusiness extremely difficult, such as the diversityof the stakeholders who become involved.
Furthermore, our assumption is that rather thansystem integration in which we develop systems
that are optimized for individual companies, thiswill be focused around platform services that are
utilized by various entities. We are discussing,amid such circumstances, the approach that will
be taken to identify a business that is distinctiveof NRI.

At the present time, we are exploring and studying around 30 themes in the realm of DX 3.0.
Social DX is an area that we see as being a hopeful seed from which a business will sprout at an
early stage. In regard to Social DX, we are reviewing themes such as the digitalization of government services, regional revitalization, creation ofsmart communities, and new financial services,such as that represented by digital assets. We
believe that a platform for the Japanese Social
Security and Tax Number (“My Number”) System
is a digital social capital that will become the foundation for Japan to play catch-up in the digitalization of government services. There, NRI will focus
on the provision of a platform that will link theJapanese government’s digital foundation withthe private sector.
NRI has a track record of having actualized
ahead of others a service utilizing the My Number
system for the securities industry. We also provide
the e-PO Box service, which fulfills a role as agateway that links Mynaportal, a public service,with private enterprises. We are proud to say thatfrom its conceptualization to actualization, it is abusiness that is distinctive of NRI.

The two missions, which are thefoundations of the corporate philosophy,
and the corporate statement,
will be upheld as a universal set of values.

Integrated Report 2022

15

CEO Message

We will leverage such accomplishments andexpertise to expand the My Number-related business, which will contribute to digitalization ofnational and local governments, into a new business pillar for NRI.
In Value Chain DX, which is another pillar for
DX 3.0, we will work toward the achievement ofa circular economy, such as by food-loss
reduction through value chain optimization and theeffective utilization of resources. Furthermore, inInfrastructure DX, we will work toward the realization of a platform business that is distinctive of
NRI. It includes the provision of data analysis thatstreamlines the operation and maintenance ofsocial infrastructures, and a shared online service
for financial institutions that will also contribute to
the reduction of CO2 emissions by clients.

We will establish a foundation that willrealize full-line Global DX.
Under V2030, the Australian business has entered
the stage of making the organization even stronger
and achieving mostly organic growth. Furthermore,
we will build the business foundation in North
America while using the successful experienceand lessons learned in Australia.
Because North America is a highly competitivemarket, the choice of the market segment on
which we will focus the business will be important.
American and Indian vendors that are rolling out
large-scale resources are making their presence
felt in North America. On the other hand, there arealso many community-based vendors that specialize in the provision of clients’ complex DX solutions. NRI’s strength in Japan is in solutions which,through consulting, realize advanced DX that meetclient needs. For this reason, we will orient ourselves toward a similar kind of business in the
North American market as well. We would liketo expand the business by joining hands with
community-based vendors that compete not interms of scale but rather in terms of the value
proposition.
To build the North American business foundation, NRI acquired in December 2021, Core BTS,
which has strengths in advanced DX. This was
NRI’s largest-scale M&A at about ¥53.1 billion(inclusive of the cash loan of ¥10.6 billion to Core
BTS). In addition to the integration of infrastructure

To venture into new businesses, in addition
to meticulousness, there is a need for us tohave the grit that will enable us to take risks
and embark on challenges.

16

Nomura Research Institutenetworks, which was the business inherited byCore BTS, in recent years Core BTS has possessed functions from cloud migration support,
security diagnosis, and what is more, to DX application development. Using Core BTS, which
possesses an abundant client base, as the foundation, and through further M&A, we plan to build
a business model in North America that is similar
to that in Japan and Australia.
Our policy is also to attempt regional expansion
within North America. After establishing a base forthe DX business in Japan and Asia, Oceania, andNorth America in the next eight years in this way,
our vision is to create synergy between the three
regions through the sharing of functions andknowledge.

NRI will achieve the improvement of its
sustainable corporate value by having
every member work together and dotheir best toward this.
The desire to have every member work together
and do their best was a message that I communicated internally when I assumed my position aspresident and CEO. The meaning behind this isthat I want to create a company that can sustainably improve its corporate value without having todepend on top management or specific superstars
within the Company. In regard to the management
team, I have been emphasizing teamwork thatenables unbreakable solidarity once a direction isdecided on through healthy debate. I believe thatsuch teamwork is something that we should continue to uphold going forward so that NRI canachieve sustainable development.
Each and every employee is a member of theteam. I would like NRI to continue being an organization where people of extremely high capabilities
and great professionalism come together. NRI willcontinue to hone its organizational power – its
strength wherein each member digests the big
picture indicated by top management and moves
forward on their own initiative to give it tangible
form. To keep on achieving growth for the longterm, each member of our group of highly specialized personnel must firmly continue working
together and doing their best.

Meanwhile, there are challenges to enablingorganizations and employees to further exhibit
their potential strengths. As a company that isaiming to develop social infrastructure, NRI’s corporate culture of meticulously building on logic issomething that should be protected at any cost.
With that said, trial and error is an unavoidable
part of engaging in DX 2.0, DX 3.0., and othersuch new initiatives. That is why there is a need tonurture grit that enables challenges to be launched
as well in untried areas. Furthermore, comprehensive strength that is optimized by combining theset of values and methodologies of various partners is required to undertake value co-creation
after expanding the area to the whole of society.
The development of capabilities for identifying thenew, which differ from what we are used to, while
honing our traditional strengths, will start tobecome one of the themes that will have to be
tackled under V2030.
The path toward 2030 has been determined.
Please look forward to an NRI Group that willcontinue making challenges toward the creationof new social value that will contribute to theresolution of social issues that are related to theachievement of the SDGs as well as toward theachievement of the sustainable improvement ofcorporate value.

Chairman and President & CEO
Representative Director
Member of the Board

Integrated Report 2022

17

01
NRI’s Value Co-Creation
We want to continue to be an “indispensable presence in the world” by­standing firm on the spirit of value co-creation, which we have upheld since
our founding.

18

Nomura Research InstituteCONTENTS
20 NRI Sustainability Management
22 A Path of Unchanging Value Co-Creation
24 Process of Value Co-Creation
26 Initiatives for Sustainability Management

35	Outcome of Business Model and Competitive
Advantages
36	Opportunities and Risks due to Changes in theExternal Environment

28 Business Model

38 Financial Highlights

29 In Relation to Competitive Advantages

40 Non-Financial Highlights

30 Competitive Advantages

Integrated Report 2022

19

NRI’s Value Co-Creation

NRI Sustainability Management

The “Dream Up the Future”
Corporate Philosophy andSustainability Management Policy
The “Dream up the future” corporate philosophy– advocated by NRI since around the time of founding –encapsulates the Company’s commitment to contributing
to the resolution of social issues and creating a better
tomorrow through the power of innovation. To achievesustainable growth, it is indispensable that a company
creates both social and economic value, and carries out
management from a long-term perspective.

20

Nomura Research InstituteNRI has identified material issues (materiality) for sustainable growth and defines solutions to social issues
through co-creation of value in business as “NRI’s 3 Social Values.” NRI aims for sustained growth and tocreate a sustainable future society by implementing sustainability management that increases corporate
value from the perspective of economic value as well as the perspective of social value.

NRI Sustainability Management Policy

NRI growth

Building sustainable futures

Corporate philosophy “Dream up the future”

NRI Sustainability Management
Medium-Term Management Plan (2019–2022)
NRI’s 3 Social Values(Solving Social Issues through Value Co-creation)

Co-create a thriving future society
by driving new value
Vision2022 financial targets
Operating profit

100 billion¥

Co-create
an ideal society
by effectively utilizing
its resources

Co-createa safe andsecure society
by advancing
its infrastructure

Operating margin

14% or more
Materiality for sustainable growth
Overseas revenue¥

100 billion

Reduction of environmental
impact for preserving global
environment

Provision of opportunities for
all kinds of professionals totake on challenge

Compliance with laws, regulations, and risk management toincrease trust from societyManagement of the information
systems that form social
infrastructure

ROE

14%*
* Aiming for higher capital efficiency as continuingfrom the previous term

Integrated Report 2022

21

NRI’s Value Co-Creation

A Path of Unchanging Value Co-Creation

Revenue (left scale)Operating profit (right scale)(billions of yen)

Notes:	1. T he figures prior to 1987 are combined totals for the former Nomura
Research Institute and Nomura Computer Systems.
2. T he figures for 1988–1996 are non-consolidated; the figures for 1997
onward are consolidated.
3. O wing 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.

800

600

1965

(Former) Nomura ResearchInstitute established

1966

1988

Launch of
new NRI

Nomura Computing
Center established

400

Collapse of
dot-com
bubbleCollapse ofJapan seconomic
bubble
200

0
77.9

80.9

90.3

00.3

Services Created in Response to Societal Demand

Consulting

IT Solutions

22

Nomura Research Institute1970
Forecasted the number of visitors to theJapan World Exposition held in Osaka(a pioneer in research and consulting
business in Japan)
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)
1989
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
Famicom Trade System in Nomura
Securities launched(a pioneer in contemporary home trading
services)
1988
International VAN service between Japanand United States launched

2021

20

th
anniversaryof stockexchangelisting(billions of yen)
120

2015

50

th
anniversary

2001
Listed on
the First Section of
the Tokyo Stock
Exchange

90

Globalfinancialcrisis
60

30

0
10.3

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 Ministry ofAgriculture, Forestry and Fisheries etc.
2007
Established Tsinghua-NRI Chinese
Research Center
Insight Signal, advertising effectivenessmeasurement 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 electronicmoney trial)

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

20.3

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, launched23.3(Forecast)

2014
Assisted the rollout of “NISA” system, fromdesign to system construction
2020
Proposals regarding Coronavirus Infection(COVID-19) measures

2017
Started the provision of the identity
verification service “e-NINSHO” using
My Number

Integrated Report 2022

23

NRI’s Value Co-Creation

Process of Value Co-Creation
NRI will provide the optimal services to resolve clients’ issues through its consulting services and solutions services. The
social value created through value co-creation with clients not only contributes to the creation of a prosperous futuresociety but also further enhances NRI’s competitive advantage and achieves sustainable growth.

External Environment
Recognition

Corporate Philosophy

DreamCompetitive Ad

Complex social issues

Diverse Professionals

Business

P.30

Navig
×
Solu
Increasingly fluid
industrial structure

ConCompetitive
Intellectual Property
P.32

Value
Progress oflatest technologies
and commoditization

Materiality for sustain

Diversification of values
and work styles

24

Nomura Research Institute

Reduction of environmental
impact for preserving global
environment
Natural Capital

P.88

Provision of opportunities for
all kinds of professionals totake on challenge
Human Capital

P.68

up the future
Corporate Value

dvantages
Building sustainable
futuresModelgation×ution

Co-createa thriving future society

Solid Client Baseby driving new value

P.34-Solution
Co-create
an ideal society
by effectively utilizing
its resources

Co-createa safe andsecure society
by advancing
its infrastructure

co-creation with clients

NRI growthable growth

Financial Strategy

Compliance with laws, regulations, and risk management toincrease trust from society
Governance

P.96

P.54

Management of the information
systems that form social
infrastructureIntellectual and
Manufacturing Capital

P.78

Integrated Report 2022

25

NRI’s Value Co-Creation

Initiatives for Sustainability Management
In regard to NRI’s sustainability management, we will introduce our main initiatives and results for FY March 2022 foreach of the NRI Group’s 3 Social Values and materialities for sustainable growth.
Topics for FY March 2022

Co-create a thriving future society

Promote DX

Lead social transformation through numerous DX projects
Core BTS becomes a subsidiary; DX expansion into North Am

Create new business models

Established Earthbrain in collaboration with Komatsu, to sign

Provide social recommendations and system
proposals

Disseminated information on the economic impact of vaccina

Expand services in business platforms

Development of shared online services through the adoption

Generate environmental benefits for clients
through business platforms

Completed energy conversion of three data centers
CDP A-list accreditation; MSCI rating of AAA awarded

Facilitate transformation for societal optimization

Development of a prototype carbon tracing system to help co

Help build IT infrastructure to create an ideal
society

Progress in optimizing IT infrastructure, with financial ASP se

Help upgrade the social infrastructure

Further expansion of the use of e-PO box and e-NINSHO pu

Contribute to information security

Expansion of zero trust businessContributing to improved security of society and infrastructur

Maintain the quality of systems in operation

Ongoing comprehensive interlocking inspections and major f

by driving new value
The continuous generation of new values for the
future and the creation of an affluent and comfortable society in which all consumers can enjoy
those values

NRI’s 3 social values

Co-create an ideal society
by effectively utilizing its resources
Nurture strong industries that effectively utilize
valuable social resources (manpower, goods,
capital, and intellectual property) and aim to create
a comfortable society for everyone

Co-create a safe and secure society
by advancing its infrastructure
Protect social infrastructures such as information
systems and aim to create a safe and securesociety that can easily withstand accidents anddisasters• Response on climate change• Responsibility and conservation to
the environment• Sustainable energy consumption• Environment-conscious supply chain• Disclosing TCFD scenario analysis results (From February 2• Conducting scenario analysis for capital markets & wealth m• Reducing overseas CO2 emissions by 90% through certifica• Switching the power of major data centers to renewable ele• Authorizing construction of Osaka Data Center 2 which is c
(December 2021)• Human resource diversity• Customers interaction• Respect on human rights• Dialogue with civil society• Healthy employment and labor-management
relationship• Promoting diversity and inclusion (From FY March 2011)• Promoting the disclosure of social information / External as• Formulating ‘NRI Group business partner code of conduct’Compliance with laws, regulations,and risk management to increase
trust from society• Enhancement of corporate governance• Action against corrupt practices abroad• Risk management• Appropriate information disclosure to
the customers• Evaluate efforts of executives and employees for value co-c
• Introducing Clawback and Malus Clauses (FY March 2021)• Engaging with ESG-minded investors (From FY March 2011
• Revising NRI Corporate Governance Guidelines (December

Management of the information systems that form social infrastructure• Management of information security and system• Access to information society• Enhanced project monitoring functions and held other activ• Held the DX Production Innovation Forum and took other a• Held the Safety and Security Forum and acquired certificat• Increased the level of information security measures both in• Increased the sophistication of our Computer Security Incid

Reduction of environmental impact
for preserving global environment

Materiality for sustainable growth26

Provision of opportunities for
all kinds of professionals totake on challenge

Nomura Research Institutemericanificantly improve productivity in the construction industry

ation, trends in revenge consumption, etc., to solve social issues

n and expansion of STAR clientele with major clients, etc.

KPI

DX-related sales
Number of business partnerships(joint ventures, local government
agencies supported, etc.)
Number of NRI articles featured in the
big five national newspapers
Business platform sales

FY March 2022

390.0 billion JPY
3
114
109.7 billion JPY

Clients’ reduced CO2 emissions due toshared use

105,087 tons

ompanies identify their CO2 emissions

Size of business regarding operational
reform-related services+32%, compared to
FY March 2021

ervices gradually moving to a public cloud environment

Size of cloud and data venter services
business+8%, compared to
FY March 2021

ublic personal authentication system linked to individual number portal

Size of business involving public sector+6% year-on-year

refault operation drills to ensure stable system operation

2019)
management solutions business (From June 2021 to February 2022)
ate procurement from China, the U.S., Australia, and India (February 2022)
ectricity (From August 2021)
certified as “Adaptive Business Plan” under the Act on Strengthening Industrial CompetitivenessAmount of investment in safety andsecurity

7.5 billion JPY

Number of information systems failurescausing significant financial and social
impactNo occurrences

Reduction of greenhouse gas
emissions72.1%(compared withFY March 2014)

Ratio of female managers

8.30%

Ratio of female hires

33.20%

ssurance of social data (From FY March 2011)’ (April 2021)

creation at the division level, and add it to their bonuses (FY March 2021))
1)
r 2021)

vities to improve the quality of information systems
activities to improve company-wide quality and productivity
tion / guarantees from third-party organizations
nside and outside Japandent Response Team (CSIRT) in order to respond to cyberattacks

Information systems failures that haveserious financial or societal impact

No occurrences

Integrated Report 2022

27

NRI’s Value Co-Creation

Business Model
NRI has a consulting function that guides solutions from the stage of problem finding and an IT solutions function thatrealizes problem solving through system development and operation, and has accumulated related experience andknowledge over a long period of time. NRI combines these two functions to develop two types of unique businessmodels that cannot be easily realized by other companies.

NRI’s Two Functions

Consulting
With one of Japan’s largest consulting divisions, NRI possesses expert consulting capabilities for various industries
and operating processes. As a pioneer in Japan, we havecontributed to the development of society, industry, andcorporations for many years. Our diverse and highly specialized consultants support the transformation of our clients
based on the experience and know-how accumulated
through long-term business relationships.
IT Solutions
System engineers capable of fully utilizing the latest technology will achieve transformation of clients through systems.
In particular, NRI’s greatest area of expertise is the financial
industry, where we provide solutions to many clients.
NRI’s IT solutions anticipate cutting-edge technology, andstrategically incorporate that technology into solutions
for provision.

Consulting

Industrial
IT Solutions

Financial
IT Solutions

IT Platform
Services

NRI’s Business Model

Navigation × Solution

Con-Solution

Providing Value by Combining Navigation and Solutions
This model provides consulting that guides clients fromproblem discovery to solutions, and integrates all phases tothe solution of problems through IT solutions. In this way,
the model responds accurately to client needs.

Consulting and IT Solutions Run Side-by-Side With
Clients to Provide Continuous Value
This business model is run side-by-side from the planningand concept stages. The model creates and promotes
business while repeating the process of hypothesis testing.
In this way, we co-create business value with clients andheighten that value.

Future forecasts / social
recommendations
Navigation

Analysis andproposals

Management consulting

Consulting

Operational consulting

IT construction(or update) andextension

System consulting

System development
System management outsourcing
Solution

Shared online service(roll out horizontally to multiple clients)

Utility Services(IT Solution + BPO)

28

Nomura Research Institute

IT Solutions

Data renewal
andaccumulation
Operations
leveraging IT

In Relation to Competitive Advantages
NRI has three competitive advantages. They consist of “diverse professionals,” “competitive intellectual properties,” anda “solid customer base.” These competitive advantages boost the capital on an ongoing basis and further enhance thecompetitive advantage while interacting with one another. The combination of such strengths with an excellent businessmodel hone our respective strengths as well as sustainably create social and economic value.

High quality intellectual properties, which have been accumulated over a long
period, and the existence of mechanisms, culture, and climate that facilitate
utilization of the intellectual properties enable NRI’s greatest strength – its professionals – to exhibit their capabilities to the utmost for the effective creationof value.

DiverseProfessionals

Business Model

P.30

Navigation
×
Solution

Solid Client Base
P.34

Con-Solution
Competitive
Intellectual Property
P.32

Value co-creation with clients

The long-standing relationships maintained with industry-leading companies
have allowed NRI to take on various challenges, such as large-scale projects
and cutting-edge, difficult projects, through which the Company has accumulated high-quality expertise (intellectual properties). At the same time, they havecreated NRI’s greatest strength – its diverse professionals.

Integrated Report 2022

29

NRI’s Value Co-Creation

Competitive Advantages
The Strengths of Individual Human

Diverse Professionals
Talented professionals are NRI’s greatest strength. An excellent human resources management system, which attracts
such human resources and enables them to grow, is also one
of NRI’s strengths. We are a group of professionals united by
one mission, to “Dream up the future.” We aim to continuallyexhibit our own capabilities and skills to achieve our mission
and obtain results of an even higher caliber.
Human Capital

Professionalism

Responsiveness to Change

Talented human resources build
awareness as professionals froman early stage, and develop
high expertise

Can accumulate much knowledge
through various experiences andapply the knowledge to newchallenges

P. 68

Recruitment of Diverse, Talented Human Resources
Each year, NRI is strategically increasing the number of its hires. As aresult of receiving a great number of applications from students andindividuals from outside NRI desiring to work with NRI’s talented humanresources, we hired a total of more than 600 recent college graduatesand mid-career recruits during FY March 2022. Many employees withdiverse experiences are currently playing an active role at NRI.

Recruitment ofdiverse, talented
human resources

Cycle ofHiring to NRI Payroll* by Year(persons)
700
600
500

139

400

102

175

67

300

53
200
100
0

Growth of individuals
and organizations

233

223

2017.3266

2018.3319

308

2019.32020.3

393

380

399

2021.32022.32023.3

New graduates
Mid-career* NRI-registered employees (includes employees of NRI Group companies hired by NRI itself)

Thinking behind the supp
The flexible
assignment of roles

Growth of Individuals and Organizations
NRI employees achieve
growth through their work
(on-the-job training / OJT) or
by participating in training
sessions that they have individually chosen from a richtraining menu. For example,
the development of DX humanresources, which is one of thegoals of the medium-term
management plan, is steadily
progressing.

Progress of Human Resources Active in DX(persons)
2,500

535

2,000

450

1,500

220
1,000

554

616

415
1,095

500

1,217

740
0

20.3

21.3

22.3

Basic Level
Intermediate Level
Advance Level* NRI-registered employees (includes employees of
NRI Group companies hired by NRI itself)

30

Nomura Research Institute

Serendipity andcareer deve

Thinking Behind
the Supporting
Personnel System
Three ways of thinking that are at the rootof the personnel system support the“cycle of growth.” They are:

The Strength as an
Organization

Resources
Potential for Autonomic
GrowthIs full of curiosity, acquires new
skills on their own. and continues tobetter themselves

Integration of Excellent Skills
Possesses extremely wide-ranging
and diverse expertise as an organization, and mobilizes strengths
while respecting each other

Challenging Assignments
At NRI, employees are given roles requiring great responsibility anddiscretion even if the employees are of a younger generation. Thirty-five
percent of the systems development project managers (PMs) are in their
20s or early 30s. What is more, even in consulting projects, in manycases, employees experience working as a leader for the first time intheir 20s.
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.

Challenging
assignments

Age Distribution of Development Project PMs (results for FY March 2022)

GrowthCultivation of pride
toward job

Over 45 years old

Under 34 years old

8.6%

35.1%

From 35 to 44 years old

56.3%

Cultivation of Pride Toward Job

porting personnel system

independent
elopment

Treatment and development
investment appropriate forprofessionals

NRI believes that the cultivation of pride toward one’s job and theenhancement of engagement are of importance. Pride toward one’s job
is often cultivated naturally when an individual is assigned an importantjob. However, employees’ feeling of pride toward their job is also cultivated through activities for instilling value co-creation, in which employees reconfirm the DNA that NRI has had from the time of its founding,activities for the co-creation of job satisfaction, in which both employees
and the Company together create job satisfaction, and other suchactivities.
Co-create Job Satisfaction

The Flexible Assignment of Roles
Human Resources System

P. 68

Serendipity and Independent
Career Development
Autonomous Career Development

P. 69

Treatment and Development
Investment Appropriate forProfessionals
Human Resource Investment

P. 72

P. 74

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

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 thegrowth of the individual.

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

Integrated Report 2022

31

NRI’s Value Co-Creation
Competitive Advantages

Competitive Intellectual Property
NRI widely communicates the fruits of R&D to society as future forecasts and recommendations related to society. At thesame time, we are using expertise that was obtained through business activities as practical competitive intellectual
properties, thereby enhancing our competitive advantages.

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. The Company carries 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
through the publication of books, symposiums, magazines, newspapers, television, andother mass 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 NRI Dream Up the Future Forum 2021

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 our
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’s business but also to the stabilization of our profit structure.

Shared Online Services
THE STAR

A securities

BESTWAY

B assetmanagement

C bankD trust bankBusiness Platform Sales: 109.7 billion JPY (FY March 2022)
Major Shared Online Services
Launched in 1974

THE STAR

Back-office solution for retail
brokerage firms

Launched in 1987

I-STAR

Back-office solution for wholesale
brokerage firms

75 firms
29 firms

Launched in 2012

21 firms

Value Direct

Online banking system

No. of My Number stored

Launched in 2015

e-BANGOMy Number management
services

3,400

Approx.
million cases

Launched in 2017
Launched in 1993

T-STAR

Back-office solution for asset
management firms

e-NINSHO

79 firms

Note: No. of firms and cases are as of the end of March 2022.

32

Nomura Research Institute106 firms*

e-PO box

BESTWAY* Including life insurance firms,
non-life insurance firms, andinvestment trust firms, etc.

*S ource: Ministry of Internal Affairs
and Communications; Private
Companies Utilizing Japanese
Public Key Infrastructure Services

Launched in 2018

Launched in 1997
Back-office solution for mutual fundsales at banks

Identity Verification Solution

110 firms*

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

61 firms*

Utility Services (IT solutions + BPO services)Utility services are provided in combination with NRI’s IT solutions such as shared online services and BPO services. NRI provides the entire business process with the personnel who handle related work, not just the system.

Major Utility Services
For retail brokerage firms
NRI provides the shared online service “THESTAR,” and DSB Co., Ltd., provides comprehensive support services. They range from trade
execution, clearing, settlement, account management, account transfer, and other financial
services carried out on behalf of securities
companies, to securities back-office works,
printing, envelope insertion, and mailing services.

For asset management firms (investment trustand investment advisory firms)
NRI provides the shared online service “T-STAR,”
and NRI Process Innovation, Ltd., provides theoverall middle/back-office work, such as net
asset value calculation for asset management
firms (investment trusts and investment advisory
firms, etc.) and other investment trust accounting
work and investment report creation work.

For financial institutions / operating companies
NRI provides “e-BANGO” as a My Number
storage/management system with high management standards, based on our experience
operating backbone systems for financial institutions. DSB Co., Ltd., provides services for thecollection, registration, management, and use ofindividual numbers.

Sharedonline service

BPO
services

Sharedonline service

BPO
services

My Number­management service

BPO
services

THE STARDSB

T-STAR

NRI Process
Innovation

e-BANGODSB

Development of Competitive Intellectual Properties
In recent years, we have been focusing our efforts on the development of digital IPs which can be used for multiple clients andindustries in the DX business area. We will respond flexibly to business requirements that cannot be easily met through packaged solutions, and achieve the speedy provision of systems. 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, andincorporating them into e-commerce sites and core business systems. NRI will strengthen competitive advantages throughthe development of digital intellectual properties, and contribute to clients’ achievement of DX.
Industrial IT Solutions segment
P.124

Advanced R&D
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 and“Vision 2022” Long-Term Management Vision.
In FY March 2022, 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.

R&D Themes and Initiative Policies
Theme

Investigative
research

Initiative policy• Research and theoretical research from a
medium- to long-term perspective• Investigation research contributing to NRI
business development• Technology trend surveys to contribute to thevitalization of business development andstrengthen the technical competitiveness of NRI• Systematic policy research, consumer surveys, etc

DX businessdevelopment• Recommendations that contribute to government
institutions and corporate management• Business development for priority themes such as
5G, next-generation stores, and smart cities• Technological research focusing on DX-related
technology

Integrated Report 2022

33

NRI’s Value Co-Creation
Competitive Advantages

Solid Client BaseThrough long-term business relationships with industry leaders, we have accumulated experience and know-how related
to various industries and operations. NRI utilizes these assets to create innovative solutions such as shared online services and digital IP. Furthermore, by continuing to provide high-quality services, we are working to strengthen relationships with clients and expand our client base.

System development andmanagement, andoperation outsourcing

NomuraSecurities
MS&AD Insurance Group
Holdings (former Dai-Tokyo Fire &Marine Insurance)
ONWARD KASHIYAMA (former Kashiyama)
KOKUBU GROUPSEVEN-ELEVEN JAPANAnd many other companies
Number of companies using the services as of the end of March 2022

Shared online services

75 firms

THE STAR (for retail brokerage firms)

29 firms

I-STAR (for wholesale brokerage firms)

79 firms

T-STAR (for asset management firms)

110 firms

BESTWAY (for banks, etc.)

21 firms

Value Direct (Internet banking)My number solutions (e-BANGO/e-NINSHO/e-PO box)

NRI establishedin 1965

1970s

1980s

1990s

2000s

2010s

2020s

Number of Clients with Revenues of ¥1.0 Billion or More34

86 firms

91 firms

FY March 2019

FY March 2022

Securities

Insurance

Banking

14 firms

13 firms

12 firms• Nomura Securities Co., Ltd.
• Mizuho Securities Co., Ltd.
• SBI SECURITIES Co.,Ltd.
• Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.

• JAPAN POST INSURANCE Co.,Ltd.
• Tokio Marine & Nichido Fire InsuranceCo., Ltd.
• Sony Life Insurance Co., Ltd.
• Aioi Nissay Dowa Insurance Co., Ltd.

etc.

etc.

Distribution

Manufacturing, service, and other

Other domestic industries

12 firms

23 firms

10 firms• SEVEN-ELEVEN JAPAN CO.,LTD.
• Ito-Yokado Co., Ltd.
• KOKUBU GROUP CORP.
• BIC CAMERA INC.

• KDDI CORPORATION• YAMATO TRANSPORT CO., LTD.
• Ajinomoto Co., Inc.
• Recruit Co., Ltd.

etc.

etc.

Nomura Research Institute• Seven Bank, Ltd.
• The Nomura Trust and Banking
Co., Ltd.
etc.

Overseas

7 firms

Outcome of Business Model and Competitive Advantages
Our competitive advantages and outstanding business model will achieve a stable profit structure and high levels of profitability and productivity that support NRI’s sustainable growth.

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

Businesses with high exposure to
economic cycle Less than 40%(billions of yen)Consulting Services
Product Sales
	System Development & System
Application Sales (new)600

Businesses that generate ongoingearnings Over 60%
	System Development & System
Application Sales (enhancement)	System Management & Operation
Services• Operation outsourcing• Shared online services

300

0

13.3

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

22.3

High Levels of Profitability and Productivity
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 of Consolidated
Revenue and Operating Margin

Industry-wide Comparison ofConsolidated Revenue andOperating Profit per Employee(FY Mar. 2022)

NRI
Consolidated operating margin (%)

15

NS Solutions

SCSK
TIS
ITOCHU Techno-Solutions

10

BIPROGY(former Nihon Unisys)

NTT DATA

5

0
0

200

400

600

2,400

2,600

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

Consolidated operating profit per employee (millions of yen)

20

EBITDA Margin Comparison(%)(FY Mar. 2022)
25

8

IBM

NRI
6

NRI

20

Accenture
Cognizant

ITOCHU Techno-Solutions

15

Capgemini

NS Solutions

4
SCSK

10

BIPROGY(former Nihon Unisys)

TIS

2

5

NTT DATA

0

0
0

15

30

45

60

75

FY2017FY2018FY2019FY2020

FY2021

Consolidated revenue per employee (millions of yen)(Source) C ompiled by NRI from the above companies’
financial statements(Source) Compiled by NRI from SPEEDA

Integrated Report 2022

35

NRI’s Value Co-Creation

Opportunities and Risks due to Changes in the External Environment
Based on an understanding of changes in the external environment and opportunities/risks for NRI, we formulate policies
for continuing sustainable growth and implement related initiatives.

Main Changes to the External Environment

Opportunities ontribution to preserving the globalC
environmentImportance of decarbonization and othermeans of resolving social issues
Heightened expectations of society
and investors toward companies forthe resolution of social issues- Reduction of client greenhouse gas emissions through shared
online services

Business continuity in states of emergency- Needs for data centers that possess advanced disaster prevention functions

 xpansion of areas for cooperation in regard toE
the resolution of social issues- Cooperative frameworks, including decarbonization, and carbon
neutrality

Complex social
issuesIncrease in cyberattacks that are coupledwith the increased complexity of international political trends

 elative expansion of the scale of overR
seas markets

 ivision of economic zones and formation
Dof economic blocs

Increasingly fluid
industrial structure elting of boundaries between businessMtypes and industries due to digitalization
Growth limits of existing revenue models
Digitalization as a source ofcompetitivenessStrengthening of the protection of rights

Progress of latest
technologies andcommoditization

 volution of advanced technology, suchE
as cloud computing, artificial intelligence,and next-generation communications
Commoditization of no-code,
low-code, etc.

Strengthening of information security- Needs for information security services that manage data, suchas personal information, safely, and securely- Needs for advisory services by experts due to lack of information security specialists

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

Reconstruction of supply chains- Needs for advisory services for corporations constructing theirglobal supply chain

 edefinition of industry and business models,R
and integration of management and technology- Needs for simultaneous transformation of both client businessand IT through the combination of consulting and IT solutions

 revention of legal violations and seriousP
accidents- Needs for advisory services for the practice and establishmentof 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 through collaboration with clients

Expansion of the usage of IT services

Diversificationof values andwork styles

36

Nomura Research Institute aking root of respect for individuals andT
new working styles- Heightened needs for increasing business efficiency and improving productivity- Shift to shared online services- Modernization of systems using new technology

 ariety of working styles and diverse humanV
resources- Pursuit of optimal working styles for NRI, such as the utilizationof telecommuting- Value creation through collaboration with business partners andexternal human resources

RisksSocial responsibility- Inadequate climate change measures- Inappropriate behavior in business activities

Business continuity- Ill-preparedness for COVID-19 and large-scale natural disasters

Related Initiatives

Reduction of Environmental Impact for Preserving Global
P.88
Environment
P.91
Initiatives Regarding the TCFD Final Report
Internal Controls, Corporate Ethics, and Compliance
P.116

Cooperation with Business Partners
P.80
NRI’s Quality Management

P.86

Information security- Information leakage due to unauthorized external access- Group governance of rule violations at the NRI Group and business
partners- Insufficient synergistic effects of M&A and partnerships- Inadequate system for global strategy promotionGroup governance- Insufficient synergy through M&A and alliances- Insufficient system to promote global strategy

Cooperation with Business Partners
P.86
P.83
Quality of Information Security

Global Strategy
P.50
NRI’s Corporate Governance

P.102

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

Quality- Occurrence of large-scale system failures- Unstable operation of the operating system

Compliance- Infringement of third-party intellectual property rights- Violation of domestic and foreign laws and regulations

Projects- Late delivery- Work man-hours exceeding the initial estimate

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

Cooperation with Business Partners

P.86

Competitive Intellectual Property
P.32
P.80
NRI’s Quality Management

Internal Controls, Corporate Ethics, and Compliance
P.116

Competitive Intellectual Property
P.32
P.80
NRI’s Quality Management

Diverse Professionals
P.30
NRI’s Human Resource Strategy
P.72
DX Human Resources

P.68

Business partners- Insufficient securement of business partners possessing highly specialized operational expertise- Decline of productivity and quality in the NRI Group, including business
partners

Cooperation with Business Partners
P.80
NRI’s Quality Management

P.86

Integrated Report 2022

37

NRI’s Value Co-Creation

Financial Highlights
Shareholder Value / Returns to Shareholders
Earnings per Share (EPS)*2*3

Cash Dividends per Share (DPS)*3 / Dividend Payout Ratio*4 /Total Return Ratio(yen)(yen)(%)
xxx.x

250

200

100

228

80

181

150

90
80

350

258.9

280

210

60

120

109
100

91

88

72

129.8

40

113.4

50

20

17.3

18.3

19.3

20.3

20.3

21.3

JGAAP

0

22.3

32

17.3

40

36

32

66.4

140

117.1
70

60.2

42.4
0

326.8

90

39.1
18.3

IFRS

41.5
19.3

33.2

27.9
20.3

41.3

20.3

21.3

JGAAP

Cash dividends per share

33.1
22.3

0

IFRS

Dividend payout ratio

Total return ratio

Financial Condition
Total Assets / Net Assets / Equity Ratio

Interest-bearing Debt / Gross D/E Ratio(billions of yen)

(%)
789.6

800
700

643.1

628.9

600

69.1

500

65.2

612.1
67.1533.1

656.5
60

50.3

44.1

30
425.0
287.1

100

17.3

18.3

19.3

20.3

Net assets

333.2

264.7

20.3

21.3

JGAAP

Total assets

0.61

342.4

22.3

151.3

160

107.4

120

43.0
432.6

0.8

200

300
447.2

240

565.2

50.9

200

(times)

209.6

400

0

90

(billions of yen)

80

0

0

0.40

58.6

0.19 608

17.3

0.2

0.15

0.13
18.3

IFRS

19.3

20.3

20.3

JGAAP

Equity ratio

Interest-bearing debt

0.6

0.4

0.36

81.6

40

0.62

166.7

21.3

22.3

0

IFRS

Gross D/E ratio

Financial Results and Cash Flow Situation
Revenue / Overseas Revenue*5 / Overseas Revenue Ratio

Operating Profit / Operating Margin(billions of yen)

(%)

800

16

(billions of yen)

(%)

120

30

106.2
600

424.5

471.4

400

501.2
10.6 528.8

9.2

528.7

8.8

550.3

611.6
12.5

100

25

12

83.1
80

8.8

8.1

8

60

58.5
13.8

200

0

4.5

18.9
17.3

71.4
15.7

20

17.4

16.2

15

14.7

14.3

13.8

80.7

40

10

20

5

4

43.5
18.3

53.0
19.3

JGAAP

Revenue

65.1

85.6

Overseas revenue

46.7
20.3

46.7
20.3

44.6
21.3

76.5
22.3

0

0

17.3

IFRS

Overseas revenue ratio

18.3

19.3

20.3

JGAAP

Operating profit

20.3

21.3

22.3

IFRS

Operating margin*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 1:1.1 common stock splits on January 1, 2017. EPS is calculated by deeming stock splits to have occurred respectively at the beginning of FY March 2015,
and FY March 2016.
*3 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 per share for FY March 2019 is 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 net income.
*5 The classification of revenue is changed from the method based on the location of sales destinations to the method based on the location of the headquarters of each company.

38

Nomura Research Institute0Cash Flows (CF)EBITDA*6 / EBITDA Margin(billions of yen)(billions of yen)

150

121.1

100
61.1

50
0
–50

73.4

–30.3

–17.8

–34.3

–46.8

140

18.3

98.1

84.5

55.6

30.8

145.9

131.2

18.3

39.5

64.0

112.8

102.7

103.1

108.8

117.4

–139.8–149.9–32.4

60–130.5

40

125.5

129.6

40

30

22.2

21.7

21.9

20.9

23.6

23.8

23.9
20

10

20

–7.9

17.3

18.3

19.3

20.3

20.3

JGAAP

21.3

22.3

0

17.3

IFRS

Cash flows from operating activities
Cash flows from financing activities

18.3

19.3

20.3

JGAAP

Cash flows from investing activities
Free cash flows

50

88.9

80
–20.5
–13.1

–16.8

–100
–150

120
100

56.3

–73.1

(%)

1074

EBITDA

20.3

21.3

22.3

0

IFRS

EBITDA margin

ROE / ROA
(%)
25

21.3

20.3
18.3

20

15

12.9
10.7

10

9.7

10.4

17.3

18.3

14.8
12.3

18.2

14.2

14.5
11.6

11.5

5

0

19.3

20.3

JGAAP

ROE

20.3

21.3

22.3

IFRS

ROA

Investment Situation
Capital Expenditures / Depreciation and Amortization

Research and Development Expenses(billions of yen)(billions of yen)

50

40

30

46.9
38.6

40.9

38.2

13.6

31.9

28.4

16.1

30.4
26.2
5.6

20

10

0

30.4
28.4
6.6

41.9

17.3

22.0

18.3

20.6

19.3

JGAAP

Capital expenditures (Intangible)
Depreciation and amortization

21.8

20.3

5

5.6
51

5.1

4.9

10.9

33.3

4

11.7

21.6

21.3

4.3

4.4

20.3

21.3

3.6

3
35.9

25.0

6

2
1

22.3
IFRS

0

17.3

18.3

19.3

JGAAP

22.3
IFRS

Capital expenditures (Tangible)*6 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 2022

39

NRI’s Value Co-Creation

Non-Financial Highlights

See P.130–131 for more details

E: Environment-related Data
Greenhouse Gas Emissions (NRI Group data)(1,000t-CO2)

The NRI Group reduced its greenhouse gas emissions significantly by migrating to new, environmentally friendly data
centers, and other means.
·F Y March 2022: Reduced greenhouse gas emissions by
72.1% compared with FY March 2014.

7.9%
19.8%

26.9%

30.0%
38.2%

108

99

86

78

75

43.8%

66

60

48.7%
72.1%
55
30

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

22.3

Green Revenues (Revenue from Shared Online Services) (NRI Group data)(billions of yen)

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.

700

611.6

600
500

471.4

501.2

528.8

550.3

400
300

503.2

447.4

425.2

402.5

371.3

200
100
0

100.1
18.3

102.9

103.6

98.7
19.3

20.3

21.3

Green revenue (revenues from shared online services)

108.4
22.3

Other revenue

S: Social-related Data
Number of Employees (NRI Group data)

Number of Hires / Turnover Rate (Non-consolidated data)

(persons)(persons)(%)

18,00016,512

15,00012,0009,000
6,000

12,708
12,578
1,429
1,453
1,761
2,052
345
392
15
14

13,43013,278
1,385
1,579
1,903
1,860
218
328
12
16

9,004

8,821

3,296
1,904
1,063
13

Japan

40

18

622
600
500
400

19.3

Europe

U.S.

9,495

Nomura Research Institute

20.3
Asia

12

339

9,912

10,236

200
100

18.3

15

543

496

452

9

300

3,000
0

700

Australia

21.3

22.3

0

18.3

3.8

3.9

4.3

3.8

2.3

2.7

3.1

2.3

19.3

20.3

5.1
3.1

21.3

22.3

6
3
0

New hires
Turnover rate*1
Voluntary employee turnover rate*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

Female Hires’ Ratio and Female Managers’ Ratio (Non-consolidated data)

Male Childcare Leave Acquiring Rate (Non-consolidated data)

(%)

(%)
33.2

35
30

26.7

27.6

28.2

40

27.2
30

25

68.6

65.1

61.0

59.6

63.8

20

35.0

20
15
10

27.7
6.4

6.8

7.1

18.3

19.3

20.3

7.6

8.3

18.2

10

5
0

21.3

0

22.3

10.1

11.9

18.3

19.3

20.3

21.3

22.3

Female hires’ ratio
Female managers’ ratio
Note: Female managers’ ratio is the value at the beginning of the termChildcare 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 thesame standards.

Average Overtime Hours Per Employee Per Year (Non-consolidated data)

Information Communication / Recommendation Projects(hours)(Non-consolidated data)
(Copies / times)

10.0

1,200

8.1

8.3

962

7.5

900

5.0

600

2.5

300

922

911
765

666

0

–

–

–

18.3

19.3

20.3

21.3

Client Satisfaction (Non-consolidated data)

353

290

306

158

0

22.3

Note: C alculated as hours that exceed the statutory working hours (40 hours a week)“–” indicates that the calculated value does not exceed the statutory working hours

298

267

309
244

227

155

15

20

21

18

21

18.3

19.3

20.3

21.3

22.3

Public lectures given
TV / radio appearances

Contributions to newspapers and magazines
Books published

Engagement Score(%)

NRI: 70

100

84.6

86.9

83.8

86.4

(June, 2021)

88.0

80
10
60

20

F

30

E–

40

50

60

70

E E+ D– D D+ C– C C+ B– B

80

90

B+

100

A

40

20

0

18.3

19.3

20.3

21.3

22.3

Note: N umber 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 (June, 2021)

Notes: 1. Using the engagement analysis tool Wevox provided by Atrae, Inc., we surveyed
employees at NIR alone and at five group companies (NRI SecureTechnologies,
NRI Social Information System Services, NRI Digital, 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 2022

41

02Growth Strategy
Boldly challenges even high obstacles, and finds light in a future mocked by allas an impossibility

42

Nomura Research InstituteCONTENTS
44 Transition of Growth Strategy
46 Vision2022 and Medium-Term Management Plan
54 Financial Strategy Message from CFO
56 Value Co-Creation
58	Practice for Value Co-Creation—The NRI Dream Up the Future Awards
60 Growth Story for 2030

Integrated Report 2022

43

Growth Strategy

Transition of Growth Strategy

Vision2015
NRInnovation!

Medium-Term Management Plan (2016–2018)

FY March 2009 – FY March 2016

FY March 2017 – FY March 2019

To provide a business platform that laterally spans theindustry and market

Objectives

Improve productivity in specialty areas in Japan•H
 ardly any unexpected large-scale unprofitable projects• Improved productivity by integrating business platform development
systems and implementing development management integration tool
Expand industry-standard business platforms and develop
large-scale clients• In Industrial IT, major progress has been achieved in the context of DX,
and great progress has been made in development of largescale clients• In Financial IT, worsening business conditions of clients had an impact
but business platforms grew, and large-scale projects were also acquired•E xpand number of clients to whom sales was ¥1 billion or more:
86 firms (+22 firms)*
Build foundations for global business•B usiness in Australia is progressing smoothly, mainly with ASG• Initiated more governance improvements in conjunction with global
business expansion
Create business IT•M ore projects involving D2C, digital marketing, and analytics•G reater proficiency in agile development for BiT, and productivity has
improved•C ollaborative models have been achieved by establishing joint ventures

Growthhigher than industry average and profitability set NRI apartin the industry• Growth potential: 7% growth• Profitability: 13% OPM or morePowerful business portfolio• Break dependence on two major clients74%*
58%• Expand business in industrial sector
24%*
19%

Strategy andmain results• Expand industry standard business platforms
22%*
12%• Expand overseas-related business
6%*
1%


Introduce
THE STAR to Nomura Securities Co., Ltd.
Established and acquired subsidiaries in the industrial field• Acquired NRI System Techno, Ltd. (2012)• Established Marubeni IT Solutions Inc. (2014)• Acquired Brierley+Partners, Inc. (2015)
Started provision of new industry standard business platform
services• STP platform solution for asset managers “SmartBridge Advance”(2011)• Online banking system “Value Direct” (2012)• Solution supporting financial institutions’ retail sales representatives“Advisor Platform” (2013)• My Number management services “e-BANGO” (2015)
Established overseas bases Moscow (2008), Dalian (2010), India (2011), Thailand (2013),
Indonesia (2015)

Specific initiatives* All percentages (%) are the sales ratio form FY March 2008 to FY March 2016*N umber of firms for FY March 2019 (compared to FY March 2016)

Revenue / Operating Profit

Operating Margin / ROE(billions of yen)

(%)

800

106.2
83.1

600

421.4
400

424.5

58.2

471.4

58.5

501.2

65.1

71.4

86.5

528.8

611.6

115.0

0

20.3
90

60

* Figures for FY March 2022 are based on IFRS, and others are based on JGAAP

13.8

12

30

6

0

0

21.3
17.4

10.6

Operating profit

21.8

18

13.8

(Forecast)

Nomura Research Institute

24

550.4

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

Revenue

120

670.0

200

44

 xpanding the number of companies using industry standardEbusiness Platforms•T HE STAR: 73 firms (+5 firms)*•B ESTWAY: 114 firms (+5 firms)*•T -STAR: 78 firms (+5 firms)*
Global acquisition•N orth America: Cutter Associates (2016)•A ustralia: ASG Group Limited (2016), SMS (2017)
Established joint ventures•K DDI Digital Design Inc. (2017)•T echnium CO., LTD. (2018)•N DIAS, Ltd. (2018)• J AL Digital Experience Co., Ltd. (2019)

13.8

14.3

12.9

12.3

10.7

15.7

17.2

15.7

2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3(Forecast)

Operating margin

ROE

Vision2022
Share the Next Values!
Group Vision 2030

Medium-Term Management Plan (2019–2022)
FY March 2020 – FY March 2023
Expand the customer base and take on the challenge of
new areas, including global and digital

Growth Strategy

DX Strategy

P.47

Business Platform Strategy

Arrangement of Corporate Philosophy & Vision

Permanent

Cloud Strategy
Global Strategy

We are currently formulating Group Vision 2030 (V2030), our new
long-term management vision. On the basis of NRI’s corporate philosophy and set of values, which are universal to us, we are imagining
a society that NRI wants to see emerge in 2030, and a vision of how
we will then be. The whole of NRI is developing a growth scenario
toward that time.
We will announce the V2030 new long-term management vision andnew medium-term management plan in April 2023.

P.50

Human Resources Strategy

Corporate Philosophy

Mission&ValuesOur Values

P.53

Group Vision 2030
Vision Statement (Formulating now)

Financial Target and Progress
FY March 2023
(Forecast)TargetRevenue¥611.6 billion¥670.0 billion¥670 billion or
more

Operating profit¥106.2 billion¥115.0 billion¥100 billion

Operating margin

17.4%

17.2%

14% or more

¥105.0 billion

Overseas revenue¥76.5 billion

EBITDA margin

23.9%

—

20% or more

ROE

21.3%

—

14%*

TemporaryFY March 2023
(Actual)VisionLong-term Management Strategy
Growth Story
P.60

Materiality(Formulating now)¥100 billion

Medium-term Management Plan

* Aiming for higher capital efficiency as continuing from the previous term

Ratio of Revenue by Japan and Overseas
FY March 2016

Ratio of External Revenue by Segment
FY March 2022

FY March 2016

FY March 2022

Overseas 3.5%

Overseas 12.5%

Consulting 6.7%

Consulting 7.0%

Japan 96.5%

Japan 87.5%

Financial IT 60.0%

Financial IT 49.6%

Industrial IT 24.1%

Industrial IT 36.4%

IT Platform 6.8%

IT Platform 7.0%

Others 2.4%
Integrated Report 2022

45

Growth Strategy

Vision2022 and Medium-Term Management Plan
As we aim for the final goal of V2022, NRI is moving forward with the Medium-Term Management Plan (2019–2022),
the four-year second half of V2022. In FY March 2021, the third year of the Plan, the growth strategy of the Medium-Term
Management Plan progressed steadily, and we achieved targeted operating profit, ¥100 billion, ahead of schedule.

Long-Term Management Vision “Vision2022”
In April 2015, NRI launched its long-term management vision “Vision2022” (V2022), the final year of which is FY March 2023.
It was created to realize NRI’s corporate philosophy of “Dream up the future.” NRI is positioning itself as a corporation thatboldly tackles truly meaningful innovation based on its commitment and strengths. NRI will create future society with clients byfurther refining the strengths that we have cultivated thus far; namely, insight, the ability to achieve, and the ability to co-create.
We have imbued our thoughts for achieving V2022 into our vision statement “Share the Next Values!” With this in mind, each
NRI employee is embracing the challenge of achieving new value.

NRI Sustainability Management
NRI itself wants to achieve growth by contributing to the creation of a sustainable society through the resolution of social
issues. This is the basic concept behind the sustainability management of the NRI Group, initiatives for which we newly commenced from the Medium-Term Management Plan (2019–2022).
NRI’s sustainability management consists of three items. They are the financial targets set in the Medium-Term Management
Plan (2019–2022), and the growth-strategy-coupled non-financial targets – “Solving social issues through value co-creation,”and “Materiality for sustainable growth.” The sustainability management aims for “NRI’s sustainable growth” and “Building asustainable future society.”
NRI Sustainability Management Policy
P.21

Growth Strategy
NRI launched the Medium-Term Management Plan (2019–2022), the four-year second half of V2022 that aims for the final
goal of V2022, in April 2019. As the digital transformation of society speeds even faster ahead, NRI is moving forward with thethree growth strategies of (1) DX Strategy, (2) Global Strategy, and (3) Human Resources Strategy, in order to achieve bothresolution of the issues of our clients and society and the growth of NRI’s businesses.
Growth Strategy of Medium-Term Management Plan (2019–2022)

46

DX Strategy

Use technology to transform customer business models and processes

Business Platform Strategy

Evolve business platforms (BPFs) in finance

Cloud Strategy

Modernize legacy systems by using cloud infrastructure

Global Strategy

Achieve more global business growth, seeking revenue of ¥100 billion

Human Resources Strategy

Strategic recruiting, talent development

Nomura Research InstituteDX Strategy
In recent years, movement toward DX has heightened due to an increase in IT investment for business models and work process transformation utilizing digital technologies. Furthermore, corporations are accelerating the speed of change, triggered by
rapid changes in the business environment caused by the spread of COVID-19. NRI realizes client transformation by leveraging its strength of combining consulting and IT solutions, and by utilizing technology to provide comprehensive support fromstrategy formulation to solution implementation.
NRI defines DX that contributes to business process transformation of existing businesses as “DX 1.0,” DX that uses digitaltechnology to create a new business model itself as “DX 2.0,” and DX that solves social issues and realizes a paradigm
change as “DX 3.0.” We are implementing initiatives for each type of DX. In the field of “DX 1.0,” NRI is moving forward withmany initiatives related to the streamlining of business and further sophistication of infrastructure, utilizing digital technology.
The demand is high for infrastructure transformation of the launch of EC business and the accompanying distribution/inventory
systems for clients in the distribution, manufacturing, and service industries, etc., in particular, and NRI is providing support for
it. In the field of “DX 2.0,” we establish joint ventures with clients and companies that have advanced technologies and promote the creation of new businesses utilizing digital technologies via collaboration.

Framework of NRI’s DX Strategy

Resolve social issues through co-creation with various partners
Socialtransformation

DX 3.0

Paradigm
transformation

DX 2.0Business modeltransformation

Transformationof clients andindustries

DX 1.0

Processtransformation

Infrastructuretransformation• DX in local regions: Improving quality of like and expanding regional
competitiveness• Low carbon transformation and resource saving via digital solutions

Establish innovative digital services• Build new multi-industry platforms• Create new business models and ecosystems for clients

Digital front office

Digital back office

Digitalize actions for end users• D2C*, CRM, digital marketing

Digitalize actions within client companies• SCM reforms, AI & RPA, business platforms

Enhance infrastructure such as cloud, security• Support migration to cloud, managed services, security business* D2C (Direct to Consumer): Selling directly to consumers through e-commerce, etc.

DX 2.0 (Business Model Transformation) Expanding via Co-Creation with Customers

KDDI Digital
Design Inc.
Established with KDDI CORPORATION in 2017.
Provides total support from drafting of corporate DX strategy to commercial verification andsystem development/operation.

BOOSTRY Co., Ltd.
Established with Nomura Holdings, Inc., in2019. Develops and provides transaction
platforms that use blockchain technology
for issuing and distributing securities andother rights.

Technium CO., LTD.
Established with DMG MORI CO., LTD., in2018. Leverages digital technologies to support
high-level utilization of production equipment at
plants, etc.

Financial Digital
Solutions, Ltd.
Established with QUICK Corp. in 2019. Usesthe experience and know-how of both companies to develop efficient services for responding
to changes in the environment surrounding
financial institutions.

NDIAS, Ltd.
Established by DENSO CORPORATION and
NRI Secure in 2018. Provides security assessment and consulting services for onboard
electronic devices for the automobile industry.

EARTHBRAIN Ltd.
Established jointly in 2021 with Komatsu Ltd.,NTT Communications Corporation, and Sony
Semiconductor Solutions Corporation. Provides
digital solutions for the construction industry,
which optimize construction processes throughDX and achieve significant productivity
improvement.

Integrated Report 202247

Growth Strategy

DX Strategy

Initiatives for DX Strategy

Supporting the Transformation of Clients andSociety through DX Consulting

NRI-DX Consultation plans

DX 3.0Social Issues Solving PF

Management

Digital ESG
Data Driven Management

DX 1.0Front
officeBusiness

NRI’s DX consulting area covers every multifaceted hierarchy, including issues faced by management, reform of business operations, generation of innovation, and infrastructurethat supports businesses, human resources, and organizations. It deepens insight into issues, and goes beyond providing proposals. In order to provide practical results, DX
consulting puts together teams that combine internal andexternal human resources who possess various capabilities.
It aims to flexibly and promptly provide value by combining
appropriate technologies and SaaS. Therefore, we are promoting strategic alliances with external partners. With thepassage of time, the requirements of DX consulting are
becoming more sophisticated. Rather than stay in a position
that simply provides support to clients and society, we arestrengthening our ability to take action together as a partnerthat proposes and promotes innovation. We are continuing
to engage in creating a new society and businesses withour clients.

CX CoE

Innovation
Management

Digital Marketing

Design Sprint

Business DX

Digital Ecosystem

Digital BusinessRestructuring

Back
officeDX 2.0Adaptive Business
Development

Digital SCM

Infrastructure

Technology

Data Science

Data GovernanceNo-code /Low-code

People /Organization

TalentManagement

DX Human Resource
Development

DX / DAO
Organizational Design

Improvement of Consumer Convenience with the My Number Individual Number as theFoundation

NRI is engaged in the development of services that cross the boundaries between the public and private sectors and thecreation of usage scenarios to spread and entrench the My Number Card, which is increasingly taking hold, as a “digitalsociety ID.” To promote the My Number Individual Number system from the private sector standpoint, NRI, as one of thelargest providers of related services in Japan, has rolled out the “e-BANGO,” a My Number storage/management system,“e-NINSHO,” an identity verification service, and the “e-POBox,” service, a private-public initiative that provides a digital infrastructure. More recently, e-NINSHO has been used by financial institutions for identity verification and in administrative procedures for making an application for the electronic issuance of deduction certifications, etc. In such ways, we carried out theincorporation of use of the My Number Card for private services and administrative procedures that are enabling consumers tofeel the convenience of My Number Card utilization. Going forward, we will continue to support the social implementation of
the My Number Individual Number system. Creating usage scenarios in the realm of daily life will allow consumers to experience use of the My Number Card. By doing so, we will expand our business opportunities in wide-ranging fields as well as
undertake the transformation of society by providing services that will efficiently link the government with the private sector.
Road map for achieving growthof digital society

Health insurance cards
Electronic year-end tax
adjustments“Hello Work” unemployment
office job searches /benefits payments

Linking savings deposits
to My Number

Inheritance

Income tax withholding slips

Certificates of
employment

Driver’s licenses

Housing loan remainingbalance certificates

Paycheck stubs
Donation deduction certificates(“Furusato Nozei” donations to
outside municipalities)

Electronic tax returns

Electronic form submissions
for local governments
Moving house,address changes

Insurance premiums
deduction certificates

Employed workers
Nursery school
applications

Learning & qualifications

Citizens48

Nomura Research Institute

Trade reports

Investors & Contract
holders

Consumers

Opening bankaccounts

Opening brokerage
accounts

Establishingcorporations

DX Will Bring about Transformation of Production Processes in the Construction Industry

The construction industry is currently facing issues such as aging workers and a declining working population, and combinedwith the impact of the spread of COVID-19, it needs to undergo reforms utilizing the power of digital technology on construction sites in Japan and overseas.
NRI, Komatsu, NTT Docomo, and Sony Semiconductor Solutions jointly launched the new company, EARTHBRAIN Ltd.,in September 2021. It utilizes digital technology to remotely monitor all kinds of information including the topography of
construction sites, machinery, people, materials and also safety and environmental aspects, and control the optimization of
the entire construction process with diverse solutions such as visualization and optimization of construction sites, and remotecontrol to resolve customers’ issues. This will result in the generation of new standards for production processes and thecreation of safe and highly productive sites for the future.

New Value Created by DX of Construction Processes
Acquisition of data at
construction sites

New value created by digital transformation

Conversion to valuable service data;visualization and optimizationof construction site

Various data

Improvement of productivity in construction
production processes

Safe work sites that are optimized using
digital twin
Improvement of environmental adaptabilityof construction by leveraging simulation
technology

Enhance Multi-Cloud Services (Dedicated Cloud)In response to the growing demand for overall system optimization in response to the diversification and complexity of customer system infrastructures, such as the use of on-premise and multiple clouds, NRI offers multi-cloud services that centrally
manage multiple cloud infrastructures and managed services that provide comprehensive support by optimizing entire systems on behalf of customers’ IT departments.
Utilizing useful services in the public cloud is an important factor for successfully realizing DX. NRI has established a dedicated public cloud in our own data center in order to maximize the usefulness and competitiveness of the public cloud, whileat the same time responding to the need for safe and secure governance and security under our own control.
Using the World’s First Oracle Dedicated Region Cloud In March 2020, NRI announced that, as part of strengthening thisservice, it would be the first company in the world to adopt Oracle Corporation’s “Oracle Dedicated Region Cloud” and use it
as NRI’s exclusive public cloud.

NRI Data Centers

External Data Center

Dedicated
Cloud

Private cloud

Dedicatedpublic cloudPublic cloudPublic cloudPublic cloudControlled by NRI

Integrated Report 202249

Growth Strategy

Global Strategy
In order to achieve our target of ¥100 billion in overseas revenue as indicated in V2022 and our Medium-Term Management
Plan (2019–2022), we are executing growth strategies for the three regions.

Australia

In FY March 2022, NRI Australia, which is NRI’s holding company in Australia, acquired Australia’s largest testing specialist,
Planit, and AUSIEX, a group company of the Commonwealth Bank of Australia—one of Australia’s four largest banks.
Furthermore, in a move to strengthen its DX capabilities, ASG acquired two companies: PRAGMA and Velrada. With this,
NRI’s business in Australia has been evolving into a corporate entity similar to that in Japan, with services for heightening
system quality in addition to having strengths in consulting, operational services, and BPO. Six years have passed since NRI
entered the Australian market in 2016. During that time, the business in Australia has expanded approximately fivefold and is
now recognized as a major IT servicer in Australia as well. Going forward, the focus of the strategy in the country will shift froman emphasis on the expansion in size through M&A to the pursuit of added value, and we will aim for further growth in theAustralian market.
Operating
Structure ofAustralia
business

History of Australia Business

Established 2017.9

2016.122017.92019.11NRI

NRI Australia

2020.32021.1110 permanent employees

ASG

2022.2*1

Acquired Acquired Acquired Acquired
SMS
1ICT Group10
ASG

Acquired
PRAGMA

AcquiredvelradaPlanitAcquired 2021.5

2,500+ employees

AUSIEX

1,500+ employees*2

Acquired 2021.5

300 employees

New Zealand
India
UK
Philippines*1 After acquisition, SMS merged fully with ASG.
*2 Other acquired corporations continue to exist as subsidiaries of ASG.

Services × Client Base

Consulting, development,
implementation

Managed services

Other, shared

AUSIEX

Finance

IT platform for WM*1
business entities

ASG
IT managed services(IT systems operations & management)

Qualityengineering*2

Regional expansion(From IT consulting to IT
systems implementation)

IT staffing

Advisory & solutions

Public sector

PlanitIndustrial
Mainlyresources*1 Wealth Management. Financial
institutions, IFA etc.

50

Nomura Research Institute*2 Consulting, execution support, and other services
related to improving the quality of IT systems

ASG 

ASG has been expanding its business and region while
carrying out M&As with key players that lead the Australian
IT market. Similarly to NRI, ASG supports the overall life
cycle of IT systems, from the planning of strategies tosystem adoption and operational management. The company is providing four services, with a focus on government
and public institutions. Its advisory service offers the formulation of digital strategies, etc., project management, andother services. The solutions service engages in systemdesign and adoption, while the managed service carries out
systems operation and management. IT human resource
dispatching is a service that NRI does not offer in Japan.
The service dispatches human resources and provides
recruitment support.
ASG possesses a full range of capabilities related to DX.
By consistently supporting digital transformation as atrusted partner of its clients, the company is aiming togrow together with clients.
ASG will aim for further growth by expanding its capabilities
through M&A and providing total support to clients.

Planit 

Unlike Japan, where a systems integrator takes on all systems development processes, in Europe and the UnitedStates where in-house development is common, the testingprocess is typically outsourced to companies specializing intesting. With 1,500 experts in testing, the testing specialist
Planit provides a wide range of services, 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. Leveraging its original
expertise and services, accumulated through many yearsof experience, Planit is providing high value-added services
to a wide range of clients. Clients include not only leading
financial institutions of the Oceania region, and government
and public institutions but also leading retail companies of
the U.K. With the progress of recent years in DX, the testingprocess requires advanced consulting and streamlining.
High growth is expected to continue going forward in thetesting market. As a quality partner of its clients, Planit has
succeeded in acquiring a position that differs from that of

Revenue by Services(FY2022)

Revenue by Client Industry(FY2022)

Advisory & Solution 40%

Public sector 51%

Managed services 37%

Finance 18%

IT staffing 23%

Resources/Manufacturing 10%
Telecommunications/Media 6%
Others 14%

systems integrators. It aims to expand its business not onlyin the Oceania region but also in the northern hemispherethrough its differentiated capabilities.
Business Overview
Strategy
Planning

Operation
DesignIn-housedevelopment(DX development)

Development

Outsourcing to
specializedcompanies

User company(+ consultationcompany)

PlanitText execution(carried out onclient’s behalf)

Expansion to high value-added services

Education services
business(qualification
certification)

Consulting(testing strategy
and planning)

Operation
management

Testing

Automation of testing,security tests, etc.

AUSIEX 

AUSIEX is an SaaS provider that combines IT systems andoperation services in the back office area and provides highvalue-added services to leading Australian securities companies, wealth management companies, over 10,000 IFA*
individuals, and others. AUSIEX aims to build a businessplatform that covers areas other than wealth management
by incorporating technologies related to the shared online
services offered in Japan and strengthening new services.
Going forward, it aims to further strengthen its services
and become a market infrastructure utilized by manyfinancial institutions and IFAs.
* IFA: independent financial advisors who are not affiliated with major financial institutions, etc.

Business Overview

AUSIEX
Securities Transaction
Management(Account Opening,
Customer Information
Management, Order /Agency Order,
Settlement / Deposit
and Withdrawals)
Portfolio management(Balance Management /Right Dividend
Transaction /Tax-related reporting)Outsourcing backoffice operations
Transaction Fee
Usage Fee(based ontransaction)

Individual
investors(Retail and
Wealth)Financial
Institution,
IFA
Asset Advisory Fee

Usage Fee(based onbalance)IT + Operation-N RI’s securities trading management system (I-STAR / GV)- Expertise in the SaaS business-N ew service development investment, partnerships with key external vendors, etc.
NRI

Integrated Report 2022

51

Growth Strategy

Global Strategy

North America

Growth about 1.5 times greater than in Japan is hoped for in the North American IT services business (digital systems area).
To expand its global business while maintaining its competitive edge in Japan, NRI needs to establish a business foundationin the North American market. In 2021, NRI carried out M&A of a North American DX company.

Core BTS 

Nomura Research Institute Holdings America, Inc. is NRI’s
regional holding company in the United States. In December
2021, it made Core BTS, headquartered in Indianapolis,
U.S., a subsidiary. Core BTS provides digital transformationrelated solutions to U.S. clients in a wide-range of industries.
Through a strategic partnership with Microsoft Corporation
and Cisco Systems, Inc., Core BTS provides a full lineup ofservices, from consulting to systems development, introduction, and operation in the business areas of cloudcomputing, digital development, networks, and security.
With the network business as its inherited business, Core
BTS acquired DX application development and cloud consulting capabilities from 2018 through M&A. In 2021, it built
a two-pillared business structure of network and cloudconsulting (Microsoft Azure). Today, it provides one-stop
services, from infrastructure to DX application development.
Furthermore, by gathering engineers with advanced skills,
Core BTS has been upgraded to a top-level solutions

partner in the U.S. and is significantly strengthening its competitive edge. Going forward, the company will utilize external growth opportunities, etc., to give high added value tothe solutions that it provides as well as upgrade and expand
its client base.

Overview of Core BTS

Network

Cloud
Consulting

Hardware sales

Application development
Data analytics

Feb, 2021*

Cloud migration

Aug, 2020*

Jun, 2021*

Networking

Network security

Office automation security
Digital workplace
Managed services

Key partner

Key partner* Acquisition date

52

Nomura Research InstituteHuman Resources Strategy
In order to execute the DX strategy and global strategy of the Medium-Term Management Plan (2019–2022), we must secure
human resources that can solidly advance these strategies. Therefore, NRI is strengthening new graduate and mid-career
hiring, and developing employees. In terms of development, we are enhancing training programs for human resources whowant to acquire skills needed for advancing DX projects or for converting their skills.
Increase of 1,000 staff or more (at NRI alone) over four years
Bolster new graduate hiring: Bolster promotions, etc.
Bolster mid-career hiring: Further improve systems of working conditions for the hiring of
more specialists, etc.

Bolster hiring

FY March 2019

FY March 2023 (Plan)

New graduate hires

319 persons

Stable expansion

Mid-career hires

133 persons

DoubleStrategically develop business designers, data scientists, and other such personnel

Promote employee skill
acquisition anddevelopment

Skill acquisition and development for application / platform personnel to support DX
strategy
Promote diverse work styles (diversity, participation, and advancement of women andPromote employee successsenior personnel, etc.)

More development partners

Get more development partners that have technologies and expertise in areas such as DX

NRI Group’s Employees

Hiring to NRI Payroll* by Year(persons)(persons)

18,000700
600

13,500

500
400

9,000
300
200

4.500

100
0

13.3

14.3

Domestic subsidiaries

15.3

16.3

17.3

NRI Payroll*

18.3

19.3

20.3

Overseas subsidiaries

21.3

22.3

0

13.3

New graduate

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

22.3

Mid-career* Includes group company employees hired by the main body of NRI

The Voice of a Mid-Career Recruit

Kanako Fujita
Insurance Solution Division(Joined the company in May 2020)

I joined NRI because it is an environment that enables doing work for a wide range of industries. I thought that I would be able to leverage my past experience to undertake new work as
well as expand my horizon through work. Before I joined NRI, I had the impression that thecontent of its work was cutting edge, such as DX, and was glamorous. However, there aremany people who are diligently executing low-profile work, such as enhancement. It surprised
me a bit. There are many talented individuals, even among the younger generation. I think thatthey have a strong sense of responsibility and are highly motivated. This makes working
easier, and I find a feeling of reward in nurturing people. What is more, information is regularly
communicated by officers. This makes it easy to understand the direction in which theCompany is heading. This is also one of the things that makes me feel that I made the rightdecision in joining NRI.

Integrated Report 2022

53

Growth Strategy

Financial Strategy
Message from CFO

We will practice flexible andproactive financial management
based on the growth of V2022.
Yoshihiko Sunaga

CFO
Senior Corporate Managing Director

In FY March 2022, despite the intermittent spread of
COVID-19 continuing from the previous fiscal year, we wereable to expand our DX business and global business, which
has been a continual theme for NRI, and we were able tosteadily improve our performance. We have alreadyachieved the targets set for operating profit margin and
ROE in the Long-Term Management Vision “Vision2022”(V2022) by FY March 2022. Recently, we were also able toachieve the target for operating profit ahead of schedule. In
response to these achievements, in the announcement offinancial results in April 2022, NRI announced the outline of
our next vision, “Group Vision V2030” (V2030). The entire
form of V2030 is scheduled to be announced in April 2023.
In this way, we are moving forward to even greater future
growth.

Looking Back on V2022
FY March 2023 is a milestone year in which we will complete V2022 and move on to V2030. Looking back onfinancial management during the past six years of V2022,

we have focused on efficient management of working capital on hand, with a guideline of approximately two to threemonths of revenue. In preparation for unforeseen circumstances during the COVID-19 pandemic, NRI temporarily
increased working capital on hand, with a guideline ofapproximately three to four months of revenue. However,
we have now returned to the previous level and are operating flexibly while paying close attention to social conditions.
In terms of business and non-business assets, in order
to consolidate management resources and streamline business operations, we have organized offices and data centers and switched to leasing in order to increase fluidity. The
spread of COVID-19 has accelerated the diversification ofworkstyles. In response, NRI is continuing to work on officeconsolidation.
We have reduced our cross-shareholdings while periodically verifying their consistency with our holding policy.
Currently, we have been able to reduce cross-shareholdings
to about half the level of FY March 2017. From the mostrecent financial results, we have ensured transparency by
newly organizing and announcing the classification of holding purposes.

Results So Far for V2022 (FY March 2017 to FY March 2022)
Organization of business andnonbusiness assets
Data Centers- Closure of Yokohama Data Center I (Y1DC)(March 2022)

Reduction of cross-held shares

Approx.

660 billion yen

21%
37%

Office- Return of Yokohama Learning Center (YLC)(June 2018)- Sale of trust beneficiary rights for Yokohama
Nomura Building (May 2021 and April 2022)

Approx.

Others- Sale of employee dormitory (March 2018)17.3
No classification
For strategic investment
Clients, partners, etc.

54

Nomura Research InstituteStrategic cash allocation

22.3

340 billion yen

20%

42%

43%

37%

17.3–21.3

22.3

Maintenance of existing businesses
Growth investment
Returns to shareholders* Excludes own company’s stock TOB in 2019

Furthermore, in March 2021, we revised our retirement
benefit system in order to respond to changes in diverse
workstyles and lifestyles, and to realize a more sustainable
retirement benefit system. In response to these revisions,
we have optimized the level of contributions, and have significantly reduced financial risk by increasing the affinity
between retirement benefit obligations and pension assets
while considering inflation risk in our management policy forpension assets.
For cash allocation, we have made flexible and proactive
decisions whenever good opportunities have been available,
while keeping in mind the balance among maintaining existing businesses, growth investments such as M&A, andshareholder returns. In particular, in FY March 2022, we
conducted M&A for three companies: AUSIEX and Planit inAustralia, and Core BTS in the United States. In this way,
we focused on growth investments more than in usual
years. On the other hand, even amidst steady growth,
Japanese society is entering an era of turmoil both sociallyand economically due to the Russian invasion of Ukraine,
rapid inflation, interest rate hikes, and a weakening yen.
Accordingly, we recognize the need to carry out financial
management with an even greater awareness of globalchanges and sustainable management.

of business expansion in Australia. Through these new
initiatives, we aim to further increase recognition of NRIamong overseas investors and to expand our investor
base both in Japan and overseas.

Financial Activities to Promote Sustainability
Management
NRI’s corporate philosophy of “Dream up the future” haslaid a solid foundation for sustainability management.
Moreover, we have been managing our finances with anawareness of global sustainability. For example, we were
the first Japanese operating company to issue green bonds,
and we also issued sustainability-linked bonds. Also, in
FY March 2022, we sold our trust beneficiary rights in the
Yokohama Nomura Building, which we had purchasedusing green bonds. We then selected Osaka Data Center II
as a target project for green bonds. As the first Japanesecompany to implement such a replacement of target assets,
NRI presented the world with a new way of managing green
bonds.
In addition to enabling NRI to contribute to the realizationof a sustainable society, sustainability management also
increases the corporate value of NRI itself. By always being
conscious of sustainability management when procuring
funds and selecting investment targets, we will strive to
make sustainability management one of the two main pillarsof our business activities, together with financial activities.
NRI’s sight is already fixed on 2030. However, the road toachieving our 2030 goals will never be smooth. Looking
ahead to society in 2030, in order to realize the ideal NRI
and co-create value with society, we are likely to face situations where we must make decisions that are even morestrategic and bold. We will strongly support NRI’s future
growth by practicing flexible and proactive financial
management.

Global Promotion through Finance
NRI is developing its global business with Japan / Asia,
Australia, and North America as its three main regions.
We are also running our financial operations to support
this global business. We have been conducting operations
with a global awareness; for example, obtaining a new S&P
rating in 2018.
In February 2022, NRI became the first Japanese operating company to raise funds using the Australian Medium
Term Note (AMTN) program. This is an effort to enable flexible procurement of Australian dollars against the backdrop

Balance Sheet Management Policy

AssetsLiabilities

Cash and cash equivalents
Securing stable working capital on hand based on
post-COVID awareness (funds on hand equivalent
2–3 months of sales revenue)

Policy for managing medium- to long-term
interest-bearing debt*
Cap on net D/E ratio: 0.3 times
Maintain net interest-bearing debt below EBITDA

Investment securities and business andnonbusiness assets
Cross-shareholdings will be held within the confinesof raising corporate value
For business assets, the decision to invest or exit will
be based on hurdle rates based on capital costs,
operating profit margin, and other factors.
Further aggregation and fluidization of offices linked
to work-style reform

Retirement benefit assets/liabilities
Exercise much greater control over financial risk by increasing
affinity between retirement benefit liability and pension plan assets
Liabilities

Total equity

AssetsTotalequityEquityConsciously maintain capital efficiency comparable to that ofEurope and the United States, which balances growth and return
Consciously observe the impact of non-financial information onshare pricePayout ratio of 35%
Do not hold treasury shares which are not expected to serve any
purposeContinue to consider acquisition and retirement of treasury stock* Interest-bearing debt is the portion of debt recorded in the consolidated financial statements which corresponds to corporate bonds and borrowings

Integrated Report 2022

55

Growth Strategy

Value Co-Creation
For NRI to continue growing in the future as well and being “an indispensable presence in the world”, we create values
with clients and society through our business and contributes to the resolution of social issues.

NRI’s 3 Social Values and the Process for Identifying Material Issues
STEP 1

STEP 2

STEP 3Clarification of issue elements

Identification of materiality

Hearings with experts and management review

Each promotion committee will compile the elementsthat could be issues that should be taken into
consideration when thinking about sustainable growth,from the perspectives of business and function.

We extract the identified elements that have a highdegree of importance from a variety of perspectives
inside and outside the company.

Adjust highly material elements based on theopinions from external experts, securing the reliability
and objectivity of the elements, and identify throughmanagement review.

Value Co-Creation Committee

NRI’s 3 Social Values

Discussion of what value is created by NRI(Solving Social Issues through Value
Co-Creation)

Co-createa thriving future society

Organization into 5 social values

Identification of aggressive
materiality based on businessby driving new value

Sorting the 5 social values by business andorganizing the social value of each division

Returning to the corporate philosophy, the Founding Spirit, and NRI’s
DNA, and confirming that they
constitute “social value creation”

Sustainability Activities Committee
Identification of passive
materiality based on function

NRI’s material issues (materiality) were identified
based on:• International standards and guideline categories
from ISO 26000• GRI G4 Guidelines• Dow Jones Sustainability Indices (DJSI)• The SASB (United States Sustainability AccountingStandards Board)• The United Nations Global Compact

by effectively utilizing
its resources

Repeated discussions with executives andemployees inside the company andconsolidation in the 3 Social Values

Extract and identify highly importantelements clarified from management andexternal stakeholder’s perspectives.

Co-createa safe andsecure society
by advancing
its infrastructure

Materiality for sustainable growthHigh

External stakeholders’ perspectives

Clarify elements that may be issues
to be considered for sustainablegrowth based on guidelines forinternational standards, etc., andprepare an exhaustive list.

Co-create
an ideal society

Reduction of environmental impact for
preserving global
environment

Provision of opportunities for all kinds ofprofessionals to takeon challenge

Compliance withlaws, regulations, andrisk management toincrease trust fromsociety

Management of theinformation systems
that form social
infrastructure

High
Management perspectives

Monitoring the Status of Efforts for Co-Creation
NRI’s 3 Social Values that were formulated in the Medium-Term Management Plan are incorporated into the business planeach year and implemented in each business. The status of efforts is reported to, and monitored by, the Board of Directors
each quarter and the results are reflected again in the plan.

Medium-Term Management Plan
Formulation (3 to 4 years)
In the Medium-Term Management Plan
(2019–2022), include an overviews thesustainability management at the NRI Groupand advocate three types of social values

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Nomura Research Institute

Formulate business plan (annually)
Entire company:	Clearly indicate the promotion of value
co-creation via business together withan action policy (from 2019)
By segment:	Define strategic targets, measures, and
KPIs associated with three types of social
values (from 2019)
By division:	Incorporate monitoring in the growthstrategies of each business according
to the action policy of each segment(from 2020)

Monitoring by Board of Directors(quarterly)
Adopt a balanced score card (BSC)
management method to perform monitoring in both qualitative and quantitative(KPI) terms of social value in addition to
performance and business activities

Sustainability Management Structure

President

NRI established the Social Value Creation Committee and theSustainability Activities Committee as a special appointment at
the direction of the President & CEO to promote overall sustainability management. Both committees make proposals to the
Senior Management Committee and others.

Value Co-Creation Committee
Chairperson:
Senior Managing Director

Sustainability Activities Committee
Chairperson:
Senior Managing Director

Promote social value creation
based on the Corporate Philosophy

Promote activities for stablebusiness foundations from the pointof view of ESG

Value Co-Creation Committee
The role of the Value Co-Creation Committee is to get each individual employee to recognize and sympathize with the “NRIGroup’s value co-creation” and encourage its worksite-initiated practice through bottom-up activities, while at the same time
spreading information throughout the NRI Group about worksite-initiated efforts to practice this value co-creation and establish it as company culture.
To recognize value co-creation and generate sympathy for its aims, we have been grooming value co-creation leaders as
the successors who will carry the torch of discussion and value co-creation across multiple generations and organizations. We
are engaged in practical application activities spearheaded by our value co-creation leaders and organizations. Taking ownership of value co-creation as our own concern, we will generate new social value that gains involvement from our clients andsociety at large.
GlobalTaking ownership +Giving concrete form

Fields of value co-creation with clients & society
Practice

ActionSwitching to a mode focused on
fostering a stronger “sympathy”

Creating additional
Transformation within social value in existing
business
NRI Group(DX 1.0 / 2.0, etc.)(Creating work styles

Creating new
business(DX 3.0, etc.)that lead society)

MemorySympathy

DesireExisting initiatives
Value co-creation branding
Value co-creation leader development

Interest

Monitoring & evaluations

Attention

Assisting worksite-initiated activities

Recognition

NRI

Expand scope of those involved

NRI Group

Clients

Society

Contact points withclients & society
Expansion &involvement

Sustainability Activities Committee
The role of the Sustainability Activities Committee is to advance activities that form the foundation for our business from an
ESG standpoint.
Divided into five subcommittees, the committee implements various sustainability measures such as ESG information disclosures including scenario analyses, considerations for decarbonization in data centers, and human rights-related research,pursuing activities that advance our sustainability management.
Sustainability Activities Committee

Secretariat OfficeSustainability & Responsibility Group

Structure of subcommittee and teamMateriality

Decarbonization

ESG information disclosures- Basic sustainability policy
considerations- Materiality revisions- Vision integration- Dialogues with investors, etc.

- Carbon neutrality considerations for data centers- Scope 3 emissions reduction
considerations- Sustainable energy procurement, etc.

- TCFD scenario analysis- ESG information disclosures- Dealing with external evaluations, etc.

Human rights- Human rights-related
research- Promoting diversity &inclusion- Instilling various measuresinternally, etc.

Supply chain handling- Monitoring supply chains- Dialogues with partners, etc.

Integrated Report 202257

Growth Strategy

Practice for Value Co-Creation—The NRI Dream Up the Future Awards
NRI presents the Dream up the Future Awards to employees and teams who have made efforts to contribute to
the sustainable growth of the NRI via the resolution ofsocial issues and co-creation with our clients. For FY
March 2022, there teams received Value Co-Creation
Award and four teams received Special Recognition.

Value Co-Creation Award
Awarding employees and teams that create oneof three types of social value unique to NRI (cocreation of an energetic future society, co-creationof an optimal society, and co-creation of a safe
and secure society) via collaboration with ourclients or other departments

The NRI DreamUp the FutureAwardsSpecial Recognition
Awarding employees and teams that contribute to
the resolution of social issues and activities suitable for a company creating future society, which
do not correspond to the value co-creation award

The NRI Dream Up the Future Awards 2021 Value Co-Creation Award
Launch of the New Company EARTHBRAIN“EARTHBRAIN” Team
Launch of EARTHBRAIN is a Con-Solutions initiative­merging the NRI Group’s consulting and IT solutions, andthe challenge of bringing together the expert knowledgeof companies in different industries for accelerated

implementation of DX smart construction business presents
a new future as an good example of “DX2.0” transforming
business models.

Development and Provision of University Co-Op Tray Check Payment System

University Co-Op Tray Check Payment TeamIn response to the pressing issue of reducing fixed costs ofa university co-op that arose during the COVID-19 pandemic, the Tray Check Service was proposed and developed as a method of non-contact payment in which
students take photos of the meals on their trays. The
speedy implementation in three months was praised by
Ehime University Co-op, and optimized labor and equipment expenses, in addition to contributing to the realizationof optimized society and future society as a measure leading to a new store experience for students.

1

2

3

4

Receivemeals
as usual

Diners take theirmeals to a
dedicated tablefor checking
trays, not to theregister

Scan the QR forthat restaurant at
the dedicatedtable and thentake a photo of
the entire tray

Enjoy adelicious
meal!

This project was created through the practical efforts
of value co-creation leaders. It was achieved by value­co-creation leaders continuously aiming to establish new
business while keeping co-creation with clients in mind.
Ayano Sonoda

Yuzo Kimura

NRI Netcom, Ltd.
Digital Integration
Division
1st Value
Co-Creation Leader

NRI Netcom, Ltd.
Digital Integration
Division
3rd Value
Co-Creation Leader

Ehime University
Co-op

NRI Netcom, Ltd.

Students

Ehime University Co-op, students and NRI Netcom, Ltd co-create

Development and Demonstration of Remote Measurement System Installed in Productswith High Environmental Performance

Telemetry System Development TeamIn response to issues related to the telemetry system (datacollection and remote tracking system) of Manufacturing
Company A developing products with high environmental
performance, a telemetry system for products with highenvironmental performance was newly developed in a short

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Nomura Research Instituteperiod based on a scrum framework formed by Company A
and NRI. It produced results in testing even with the stringent condition of being a one-off, and also met Company
A’s expectations by producing results in live implementation.
This contributes to the realization of carbon neutrality.

The NRI Dream Up the Future Awards 2021 Special Recognition
Research Reports and Proposal Activities on Digital
Currency

Study Group on the Future of Currency andBanking TeamThe Study Group on the Future of Currency and Banking
was launched and operated under NRI’s initiative for the
purpose of presenting the issues and outlook for central
bank digital currencies. The study group held meetings withexperts in industry and academia, and considered real solutions for the promotion of central bank digital currency
throughout society. By aggregating and communicating
different views and new discussions on the purpose of
implementation and strategies for promotion throughout
society as a progress report, it contributed to building theprocess for exchanging opinions between private-sectorbusiness operators and central banks.

Proposals Related to Social Problems
During the COVID-19 Pandemic

Proposals Related to Social Problems During the
COVID-19 Pandemic TeamWe assessed changes in society during the COVID-19 pandemic, provided an outlook for the vaccination rate in Japanand proposed a strategy for preventing the spread of infection centered on vaccines based on data on vaccinations
and infections in other countries. It was important input forestablishing the direction of Japan’s vaccine policy.

Initiatives for Central Bank Digital Currencies
Purpose of the activities
Fulfilling the role of “thinking together” in both public and private measures toward
digitalization of payments and settlements

Activity contents
Understanding thepolicy implemented bydomestic and foreign
policymakers

Realistic proposals fordesign and framework

Understanding thedirection of private
businesses, including
non-banks andplatformers

Activity methodology• Exchange of opinions with overseas
authorities• Regular meetings
with Japanese
authorities• Discussion at Study
Group on the Futureof Currency andBanking• Individual interview• Collaboration withindustry associations

Creation of COVID-19 Workplace Vaccination
Reservation Site, and Establishment and Operationof Vaccination System

Workplace Vaccination TeamWe secured COVID-19 vaccines, prepared the vaccination
system and created a workplace vaccination reservation site
in the short period of just over two weeks. By smoothly
implementing workplace vaccinations for approximately
26,000 people inside and outside the NRI Group.

Support for COVID-19 Vaccination Operations

National Vaccination Operations Support TeamIn response to the vaccination projects being implemented
by the national government and local governments, wewere involved from the system design phase, and provided
comprehensive support including design and process management of systems for ensuring the smooth implementation of vaccination, establishment of the vaccination system,and education of people working at vaccination sites.

Vaccination site

Evaluate Executive Efforts for Value Co-Creation at the Division Level
From FY March 31, 2020, value co-creation was added to the evaluation criteria for each division.
To evaluate efforts of executives and employees for value co-creation at the division level, consider to their bonuses from the fiscal
year ending March 31, 2021.

NRI’s 3 Social Values(Solving Social Issues through Value Co-creation)
Co-create a thriving
future society
by driving new value

Co-create an ideal
society

Co-create a safe andsecure society

by effectively utilizing
its resources

by advancing its infrastructure

Evaluate efforts of executives
and employees for value
co-creation at the ­divisionlevel, and consider it in theirbonuses

Integrated Report 202259

Growth Strategy

Growth Story for 2030
NRI is completing the final fiscal year of long-term management vision V2022 in FY March 2023. With our sights set on
growth beyond this vision, we are now formulating Group Vision 2030 (V2030). Here we will share the framework of thegrowth story we are outlining leading up to the year 2030.
* Announcement of V2030 planned for April 2023

Changes in the Environment from Now until 2030

We expect significant turbulence in our surrounding environment over the next decade. Under these circumstances, companies will need to exercise strong resolve in shifting toward doing business digital-first. Management and technology will also
become more closely intertwined, and proper application of technologies on the management side will likely be essential forcompanies to be more competitive.

Volatile Changes in Business Environment“Impact” on Corporate Activities

Complex social issues

Redefining industries and business models• Importance of solving social issues such as carbon neutrality (CN)• Expectations of society and investors to companies• Complex international political trends• New business areas that transcend industry and business categories• Existing assets are a hindrance (legacy assets)• Shift to digital-first (values accumulation*)* Value of new products is lowest but appreciates with the passage of time as updates are
implemented

Increasingly fluid industrial structure• Digitalization eradicates the boundaries between industries andbusiness types• Limited growth of existing revenue models• Digitalization as a source of competitiveness

Progress of latest technologies and commoditization• Evolution of cloud, AI, and next-generation communication
technologies, etc.
• Commoditization of n-code, low-code, etc.

Advancement of various convergences (Integration / fusion)• Advancing convergence between management and technology• Technology use differentiates quality

Areas of cooperation areas must be expanded tosolve social issues• Partnerships are essential for solving social issues• Shifting to cooperative frameworks, including for carbon neutrality

Diversity is a source of energy• Business opportunities associated with inclusion and diversity• Companies should leverage diverse human resources and talent

Diversification of values and work styles• Advancing economic inequalities, polarization, and division• Respect for individuality and establishment of new work styles

Based on these changes in the business environment and the impact they have on business activities, we believe that it will
not be physical assets but rather intangible ones that generate prosperity in the future. For that reason, it will be essential tohave better digital social capital. The three elements of sustainability, safety, and security must be forged in unison if a prosperous and thriving society is to be achieved through digital technology. That is precisely our mission.
DX is just a means to an end. For what we should we create beyond DX, we will leverage our strength in insight to create aprosperous and thriving society, a sustainable and ideal society, and a safe and secure society.

Society in 2030 Created by NRI
A prosperous and thrivingsociety

60

Excellent intangible assets (human capital and intellectual assets) and enhanced
digital social capital* is required to build a prosperous and thriving society* Shared infrastructure and services that leverage digital technologies to generate new value and support society andindustry

A sustainable and ideal
society

Various events in real space are visualized as data and optimized through simulations
in digital space (Digital Twin) to realize a society that effectively utilizes resources and considerate of the global environment

A safe and securesociety

Protection of social infrastructure and personal information through advanced
security services so that people can live comfortably using various digital services withpeace of mind

Nomura Research InstituteGrowth Story for 2030

We are plotting our growth story from now until 2030, which focuses on our core areas, DX, and global.
DX will likely go into even greater depth and broader scope. The core areas (DX 1.0 / DX 2.0) which we have worked on
through V2022 will still be the growth driver that forms the foundation of our business. Our next theme will be to further
expand our core areas. Additionally, between now and 2030 DX will evolve into DX 3.0 which transforms society beyond theboundaries separating companies and industries. The regions in which we operate our services will also expand from Australia
to “global” including North America. We aim to grow into a presence that uses digital social capital to dynamically transformthe world.

DX 3.0

Dynamically transformthe world withdigital social capital

P.62

Business expansion

Expansion in core area

DX 2.0DX 1.0
North America
expansion
P.52

Establish businessin Australia

Evolution ofCore Domains
Organic growth

P.62

in Asia

Regional expansion
Human capital enrichment

Production innovation

P.63

NRI in 2030
Always being at the forefront of the future of technology, we at NRI have insight into the prosperity
that lies beyond DX and will dynamically transform the world with digital social capital

Revenue

1trillion

over ¥

Overseas Revenue

250 billion

over ¥

Operating Margin

20% or more
Integrated Report 2022

61

Growth Strategy
Growth Story for 2030
DX 3.0Evolution of Core domains

Core

Global

NRI is continuing growth by advancing and improving DX 1.0 / 2.0
Core areas will not remain at the current level, but will continue to expand further.

Consulting:Expanding DX execution-based consulting

Financial IT Solutions:
BPF* evolution and legacy migration

 X execution-based consulting, such as analytics and DX
D
consulting to realize client transformation

 volve BPF from business-specific to function specific,Ecreating PF for new markets such as alternative investments and digital assets.

 rior investment in planned businesses such as clientP
collaboration and new DX services, through social issuesbased approach

Expand migration of clients’ legacy IT assets, including
cloud shifts and IT outsourcing* BPF: Business Platform

Industrial IT Solutions:
Develop and acquire large first-mover DX clientsIT Platform:
Expansion of the cybersecurity business everage Con-Solution and digital development capabiliL
ties to do business with DX growth companies in majorindustries

 ffer multi-lateral cyber defense services for digital crime,Oincluding regulatory compliance trengthen competitiveness by adding digital IP that conS
tributes to development efficiency, and the optimization andautomation of client businesses ccelerate co-creation with vendors, startups, etc. in addiAtion to strengthening R&D in order to acquire the latest
technology IP

DX 3.0DX 3.0Core

GlobalCreating the future society we envision with digital social capital
We have designated our three areas of DX 3.0 as social DX, value chain DX, and infrastructure DX corresponding to the 2030
society that NRI innovates. Among these, social DX which utilized the “My Number” individual number system for digitalizationof government services is a major topic.
Compared to DX 1.0 and 2.0, which transform companies and industries, for DX 3.0 to transform society as a whole has ahigher level of difficulty. That is precisely why NRI should tackle it.
A 2030 society that NRI innovates

A prosperous and thrivingsociety

A sustainable and ideal
society

A safe and securesociety62

Nomura Research Institute

Digital Social Capital created with DX 3.0

Social DX

Digitalization of government services• Improving convenience for citizens with the individual Number
Card platform
Regional revitalization and smartification• Promoting local DX to improve quality of life and increase
competitiveness• Realizing an ideal society through the smartification of streets
and buildings
New expansion of financial services• Expanding new use of financial assets such as digital assets

Value Chain DX

Value Chain optimization/tracing• Coexistence of eco-friendliness and economic efficiency,
visualization of CO2
Creation of circular economy Platform• Eco-friendliness through effective use of resources

Infrastructure DX

Transformation of infrastructure lifecycle• Achieving sustainable and resilient social infrastructure
Creation of financial infrastructure for carbon neutrality• Creating and enhancing markets through policies such as
decarbonization

DX 3.0

GlobalCore

GlobalBusiness Expansion Focusing on Three Main Regions
Establishing business infrastructure focused on the three major hubs of Japan / Asia, Australia, and North America is a major
mission in V2030.
We will particularly aim to establish the North American business infrastructure of Core BTS, which was made into a subsidiary during FY March 2022. In Australia, we will aim to build strong, highly profitable organizations through organic growth. We
also aim to establish sustainable business infrastructure through local management, accelerate collaboration-building andsynergy creation between regions, and operate full-line global DX business long-term.

Evolving and synergistically enhancing DX in each region
Strengthening research and consultation
functions for studies, research and businessexploration

EuropeJapan

North America

Asia

Expanding business for Japaneseclients and improving our delivery
systemLeveraging external growth as anothermeans to further expand the business scale

Australia

Transitioning from establishing businessbase infrastructure to a sustainablegrowth phase

DX 3.0

Human Capital Enrichment

Core

GlobalAdding and Strengthening Capabilities to Achieve Our “Growth Story”
In order to turn our growth story from now until 2030 into a reality, we must expand investment in human capital, which is ourgreatest strength. We must also give our human resources additional capabilities and strengthen those they already have.
Currently, the capabilities that many employees have in our core businesses are also absolutely essential in developing andexpanding new domains, and this will continue to be a strength for NRI going forward. We will also concentrate on learningand development, as well as recruitment, to increase our capabilities in business creation and international business in orderto achieve V2030.
The capabilities of NRI’s human resources (currently)

Human resources capabilities that NRI seeks (2030)
Business expansion

Business expansion

Business­creation capabilities
Logic

Expand investments
in human capitalCore businesscapabilities
Think-Tank
Consulting
Engineering

Problem-solving
skillsAbility to

Logiccreatebusinesses

business capabilities
Ability to takeactionThink-Tank
Consulting
Engineering

Problem-solving
skillsRegional Expansion

Ability to do businessand converse withdiverse people

Ability to advancecore business
International

Ability toidentify issues

Conceptual skills

Ability to do businessglobally

Execution
skills

Flexibility,
adaptability,communication
skillsRegional Expansion

Integrated Report 2022

63

03
Mechanisms for Supporting
Value Creation
Achieving a balance between building a sustainable future society andsustainable growth for NRI

64

Nomura Research InstituteCONTENTS
66 Message from the Head of Corporate Headquarters
68 Human Capital
78 Intellectual and Manufacturing Capital
85 Social and Relationship Capital
88 Natural Capital

Integrated Report 2022

65

Mechanisms for Supporting Value Creation

Message from the Head of Corporate Headquarters

As a corporation, we willcontinue to contribute to theachievement of a sustainable
future society.
Hidenori Anzai
Representative Director
Member of the Board
Senior Executive Managing Director
Supervising of Corporate Headquarters

Maximizing the Potential of Human Resources
Our human resources possess a high degree of expertiseand are passionate about solving social issues, making
forward-looking consulting proposals, and meticulously
implementing IT solutions. Human resources are the sourceof NRI’s competitiveness. Under “Vision2022,” we havefocused on human resource management. Some strengths
and characteristics of NRI’s human resources include thefollowing: 1) from an early stage, they possess selfawareness as professionals and refine a high level ofexpertise, 2) they absorb a large amount of knowledge fromvarious work experiences and apply it to new challenges,
and 3) they possess the ability to learn autonomously byrecognizing the skills which they personally require.
NRI promotes a human resources management cyclethat maximizes the strengths of individual human resources.
This cycle begins with the recruitment of diverse andtalented human resources, and then provides growth
opportunities through challenging assignments. In addition,
when human resources accomplish their work withresponsibility and awareness toward society, they will feelpride in their own work that leads to personal andorganizational growth. NRI will further enhance the strengths
of its human resources by continuing to be an attractive
workplace.
In April 2022, NRI revised our personnel system as amechanism to reward the efforts and achievements of each
employee, and to support new challenges and growth. Our
new personnel system aims to accelerate NRI’s growth
toward 2030 by maximizing the potential of NRI’s humanresources while considering the career plans and workstylesof each individual. We believe that enabling individual
potential will provide a large return on investment. NRI
maximizes the return on investment in human capitalthrough mutual trust based on the following: 1) we believe inthe diverse potential and future talent of our employees, andcreate an environment in which employees can exercise
their abilities, and 2) employees’ trust in NRI enables themto demonstrate their abilities and achieve continual growthby leveraging their experiences.

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Nomura Research InstituteCommitment to Quality
NRI’s mission is to “Discern new social paradigms andimplement them” and “Build client trust and establish
relationships for mutual growth.” In order to fulfill thismission, NRI has given high importance to quality
management. Organizations, systems, and activities that
embody our commitment to quality are deeply rooted in
NRI’s culture and have continued to evolve. We systemize
and accumulate the efforts and wisdom necessary to
execute projects that are important to our clients with highquality. We then apply what we have learned to new
projects. Our commitment to quality is a capability that
supports NRI’s business development. We will continue torefine this commitment.
Another capability that supports NRI’s businessdevelopment is production innovation (productivity
improvement). We are strengthening our efforts to achieve
the operating margin which we aim for by 2030. For
example, in an effort to enhance our intellectual capital, we
are working on componentization (digital IP) of functions
that improve the value provided to clients; for example,
automatic ordering and route optimization, as well as theuse of tools in testing processes. NRI will continue ourefforts for achieving a high level of both quality andproductivity.

Sustainability Management Initiatives
NRI’s corporate philosophy of “Dream up the future”
contains our thinking that the continued enhancement of
NRI’s corporate value can be found only by creating a new
future through innovation and resolving social issues.
Furthermore, as social issues such as climate change andhuman rights violations become more serious, NRI needs tosynchronize our growth strategies with the resolution ofsocial issues. These are NRI’s basic views on sustainability
management. In our Medium-Term Management Plan
(2019–2022), we have positioned sustainability
management as a pillar of our growth strategy. Oursustainability management consists of NRI Group’s 3 Values
and 4 Key Issues unique to NRI. Additionally, in
consideration of the revisions to our Corporate Governance
Code in June 2021, we have decided to have the Board of
Directors reassess our sustainability management policy.
Moving forward, NRI will continue to grow by contributing toa sustainable society.
In FY March 2022, in order to reduce the burden on the
global environment, among the data centers that were themajor sources of greenhouse gas emissions for the NRIGroup, we switched the power used at our particularly large
data centers to renewable energy. As a result, we were nine
years ahead of schedule in achieving our FY2030 target for
reducing greenhouse gas emissions (Scopes 1 + 2), forwhich we have obtained SBT 1.5°C target certification.
Furthermore, by FY March 2024, we expect all of our data

centers to use 100% renewable energy. Regarding
environmental targets related to the reduction ofgreenhouse gas emissions, we raised our target level fromSBT 2°C to SBT 1.5°C in February 2021. Moreover, inFebruary 2022, we moved up our target year for net zero
emissions to fiscal 2030 from fiscal 2050.
We believe that initiatives throughout the supply chain areimportant for realizing a sustainable future society. The NRIGroup promotes initiatives toward a sustainable society
through collaboration with our business partners. For
example, on April 1, 2021, we released the NRI Group
Business Partner Code of Conduct on our website. The
Code stipulates the principles of conduct for which werequest cooperation from our business partners. We also
ask each business partner to submit written consent to our
the Code when concluding a contract. We have obtained
written consent from 282 companies as of June 2022.
NRI believes that consolidating the total capability of eachof its employees, with their various strengths and individual
characteristics, leads to the strength of the organization. In
FY March 2022, we promoted three priority areas (gender,
career/expertise, and age) from among the seven areas set
out in the NRI Action Policy for Promoting Diversity andInclusion. Some specific examples include creating lists offemale candidates for manager and group manager in eachdivision, confirming aspects such as promotion dates,
holding events for mid-career hires to talk directly with ourpresident, and holding information sessions for managers
on themes such as age inclusion.

Strengthening of Group GovernanceThrough management built on the independence and theautonomy of Group companies themselves, NRI promotes
Group governance based on the concept of creating anenvironment in which it is easier for Group companies todemonstrate their strengths. On the other hand, about 60%of the 16,512 NRI Group employees (FY March 2022) are
employees of Group companies. This number has been
increasing over the years. Additionally, the number of ourconsolidated subsidiaries has reached 90, and governancebecomes increasingly important as this number grows.
Considering these circumstances, as part of enhancing thefoundation of our business management, NRI is working tovisualize the monitoring and support of Group companies
and internal control in a form that is easier to understand.
Specifically, we formulated Group Governance Operating
Procedures common to all Group companies. We plan tostart operation of these Guidelines from the second half of
FY March 2023. We will work to ensure the spread andpractice of these Guidelines. For example, each Group
company will establish manuals based on the Guidelines.
The NRI Group aims to change the world and createsocial value. Together with colleagues who share thesegoals, we will embrace the challenge of reaching our
maximum potential.

Integrated Report 2022

67

Mechanisms for Supporting Value Creation

Human Capital

NRI’s Human Resources Strategy
The strength of NRI is our human resources; in other words, professional employees who possess a high level of expertise,
who take the initiative to work on independently set goals, and who are fearless innovators. To develop these human assets,
NRI has been strengthening a system and an environment to develop the hidden talents of highly motivated people and to allow
them to produce results on the job.

New Human Resources System
NRI had previously been operating a human resources
system of assessments based on performance, outcomes,
and ability, but we believed it was time for a new systemthat could spur ceaseless transformation of our existing
businesses and taking on challenges in new business.
Based on this belief, we introduced a new human resources
system in April 2022. The new system was structured toclarify expectations according to the role and mission andreward the results accordingly, with the aim of continuously
being professionals who always have a crisis mentality
toward the current situation and are undaunted by changeor challenges. We also emphasize the spirit of treating all
people with mutual respect regardless of their position.
Job class was determined according to ability level in theprevious system, but the new system determines job classaccording to the role that the person is to fulfill. This meansthat the new system determines job class according to theduties and level of achieving the roles expected by eachdivision for the year rather than past successes andachievements. It therefore requires employees to always
take on challenges and keep up with changes taking placein the world. We have also established the new career pathof Chief Expert, as a professional not involved with management. Through multiple career tracks, this has enabled us tooffer the appropriate conditions to people who continue togrow as professionals and produce results.
Key Points about the New Human Resources System1) Job class for manager-level personnel determined by
duties and role2) Clarified career paths among manager-level personnel as
professionals who are not managers
3) Introduced accelerated promotion system for nonmanager-level personnel- Rank System
Job class for manager-level personnel is now determined according
to the duties handled and expected role for the year rather thanpast successes and achievements. Career paths as specialists who
are not managers have also been clarified, and the job class ofChief Expert at the same level as a manager was newly established.
These multi-track careers have made it possible for management toassist the career development and boost the engagement level ofmore 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.
- 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 wasintroduced for non-manager-level personnel, who can now be
promoted as far as the highest ranks regardless of age.
- Evaluation System
In the new system, results are still evaluated appropriately against
the goals set at the start of the year and reflected in bonuses, as
was done in the old system. Also, particularly in evaluations forpromotions of manager-level personnel, we are working tostrengthen mechanisms for multifaceted evaluations to determine
whether they have the attitude and qualities suitable for top-level
NRI employees.
- 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).

Old system

Chief

Managerial position

SeniorNew system

Double-track career
paths and dynamic
promotions according
to duties and roles

Management

Chief Expert

General Manager: M+

General manager level: C+

Group Manager / Manager: M

Group Manager level: C

ExpertE+

Senior employees

E

Supervisor

Senior AssociateS

Non-managerial
position

Deputy supervisor
Specialist employees
Assistant employees

Early promotion
to the top tier byskipping tiers

Associate
A
MemberB

68

Nomura Research InstituteAutonomous Career Development along Diverse Career Paths
At NRI, we develop human resources who are capable of flexibly responding to changes in the business environment with abroad perspective and refining their skills in multiple specialized fields, while also collaborating across multiple departments.

Three Methods of Human Resources Development 
Human resources development at NRI is an organic fusionof three methods: training programs, self-improvement, andon-the-job training (OJT). Employees accumulate work
experience in OJT. In training they consolidate knowledge
they gained in OJT and acquire skills that cannot be learned
in OJT. NRI also offers its own unique type of system tosupport self-improvement. Beyond simply covering theexpenses for employees to acquire qualifications andimprove their language skills, the system also lets employees freely join in-house seminars aimed at sharing knowledge that NRI has accumulated internally, and more.
Internal job posting and self-reporting systems have also
been implemented to increase opportunities for employees
to choose their own careers and to have the right people in
the right place.

In-House Training With more than 900 total sessions held for over 300
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 to select these on their own.

Diversity & Inclusion (D&I) Programs offer programs
geared toward supporting the advancement of women,
diversity, and work-life balance.

Training Program System

Compulsory

Junior employees

Recommended

Open recruitment

Mid-career employees

Classification

Expert~Member

Associate

Senior associate
Career seminar

Program according to seniority

Careerdevelopment
program

MCD1

MCD0
New
employeetraining

Training for
promotion toassociate

MCD2

MCD3

Training for
promotion toexpertTraining for
promotion toseniorassociate

MCD4

Training for
new GroupManager

Time ofpromotion /By position

MCD5

Training fornewdepartment
head

Training at the of joining the Company

SelectedGroup
Managertraining
program

Selected leader development programCore talent
Female leader
development programNew
employeetraining

IT solution skill training

Basic career training

Selected female
department head andGM program

Hands-on career training

Cross-industry
exchange humanresourcesdevelopment
program

New Dream Up
the Future
Program

Female leader training program

Hands-on career PRO

Training for selectedcertifiers

Consulting training

Skilldevelopment

Staff HR Development Program

Lectures for General
Managers

Human skills and other skill development programDX human resources development program
Global human resources development program

D&I seminar for
department head and GM
D&I

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

Self-improvement support program
OthersPrograms by department

Integrated Report 2022

69

Mechanisms for Supporting Value Creation
Human Capital

Career Fields To advance our development of specialists and multi-skilled
personnel who have multiple 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 their own specialized field from among the
20 career fields, then goes on to refine their expertise withthe aim of becoming a leading expert.

Certification Program 
NRI confers internal certifications to professionals with highlevel expertise as role models in each career field. The internal certification program has seven qualifications in 17
categories, which serve as goals when employees envision

their future careers and plot their career paths. In the Skills
Development Program, we offer an extensive lineup of
highly specialized programs for boosting skills for internal
certifications.

Growth of Core Talent
BD: Business Developer
BA: Business Analyst
PM: Project Manager
AE: Application Engineer
ITA: IT Architect
ISM: IT Service Manager
DS: Data Scientist

Results
Appropriate Job
Assignment
Project Experience

Certification
BD

Certification
BA

Certification
PM

Certification
AE

Certification
ITA

Certification
ISM

Certification
DS

Active talent in each career field
20 Career Fields

Training

Business Management / Corporate Staff

Business Management Staff

Quality Management Specialist

Project Management Specialist

Data Scientist

Researcher

Security Specialist

IT Service Manager

IT Platform Specialist

Application Common Platform Specialist

Application Specialist

IT Platform Architect

Application Architect

Project Manager (Enhancement)

Project Manager (New)Sales / Account Manager

Strategist

System Consultan

Business Consultant

Strategic Consultant

Programs coveringvarious specialties

Selfimprovement
Qualificationand knowledge
accumulation , etc

Internal Certification Program
Planning
andproposals

CBD

Process scope for internal certification(Certified Business
Developer)(1) Business creation(2) Developing newclients

CBA

CDS 

(Certified Business Analyst)(1) Completing clients’ projects(2) Creating clients’ projects(Certified Data Scientist)

Workduties(1) Application specialist(2) Application architect(Certified Application (3) A pplication common
Engineer)
platform specialist

CAE

Systems(Certified ProjectManager)(1) New project(2) Enhancement Project(1) Platform leader(2) Core engineer(3) Advanced engineer(4) Platform strategist

CITA(Certified
IT Architect)

Platforms

CISM(Certified IT
Service Manager)

Systemmanagement
and operation
Creation of new business /Developing new clients

Data analytics(1) IT service design(2) IT service implementation(3) IT service operation

Proposal / Consulting
Systemization planning

Design / Development

Operating processes

70

CPM

Nomura Research InstituteOperations / Maintenance

Project management

C&A 
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 haveinterviews to check their level of achievement of targets they

set themselves. C&A starts with target setting interviews
between the employees and their managers at the beginning of the fiscal year. Then, after six months of activity, they
have interviews with their managers again to check theresults of those activities.

C&A System

Observation

Development system &skills requirements

Activities over
6 months

Check results(C&A interview)

Development

Skills evaluation

Target setting(C&A interview)

Performance evaluation

Management strategy

Organizational policies &goals

Coaches

Selfimprovement

Presuming communication with managers
Various types of training

Personal Career Design 
Leading up to the implementation of our new humanresources system for specialist employees that began in FY
March 2023, we comprehensively overhauled and expanded
our career design program. In the new career design program called Personal Career Design, we arrange a total of
five workshop-style training sessions at the time of reachingcareer milestones, or at regular intervals, from the time
employees are in their 20s until their late 50s. In the training
sessions for ages 40 and up, we also support their own

independent learning by providing career coaching,
one-on-one interviews, and various types of optional programs after the workshops that make their career development efforts more effective. Aside from the workshops,
every year we also organize career seminars that are open
to all employees where we strive to foster career consciousness. The seminars were attended by approximately 1,000
employees in FY March 2022.

Personal Career Design

Purpose of Personal Career Design
Have each employee work independently to choose and develop their own career, undergo ceaseless transformation, andcontinuously take on challenges, regardless of age.
Maintain and increase employees’ motivation while giving them the ability to flexibly adapt to changes in the businessenvironment
Management
age-limit

Join the company

Age

Associate

Member

Level

20s

30s
Senior
Associate

40s

50s

ExpertCompulsory
retirement

End of employment
for older people

60s

SeniorChief Expert

Management

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(50 years old / 52year old
General Manager)
Personal Career Design 4
Horizon(57 years old)
Personal Career Design 5
VoyageIntegrated Report 2022

71

Mechanisms for Supporting Value Creation
Human Capital

Human Resource Investment that Is Top-Class among Japanese Companies
NRI is investing in the cultivation of top-class human resources from a variety of perspectives. For example, we are conducting a
program to cultivate human resources who will accelerate the DX Strategy, which is the pillar of the growth strategy of our LongTerm Management Vision “Vision2022” and our Medium-Term Management Plan (2019-2022). We are also cultivating global
human resources, improving the leadership skills of managers, and developing the next generation of management and executive personnel.

DX Human Resources
In addition to further 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 of digital 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.
DX Human Resources Development Program
With the aim of strengthening capabilities—such as those inartificial intelligence (AI), analytics, blockchain, UX design,
agile software development, and microservice architecture—that are required in the DX age, NRI offers training for theacquisition of DX skills. The training is available across different lengths of service in addition to the traditional skills
cultivation that takes place according to how long a person
has been with the Company (Figure 1).
These curricula are actively being newly established andcontinuously revised/abolished based on internal needs andsocial trends (Graph 1). The number of trainees per year
and the number of training days per trainee are steadily
increasing. This has firmly established the concept of +DX,
in which each employee engages in autonomous learning toacquire the necessary DX skills (Graph 2).
Also, in the Challenge & Act System, employees take aninventory of their own DX skills (area/level) and then use thisassessment to set goals for their next skill improvement.
The number of DX active personnel with a DX skill level of“basic level” or higher is steadily increasing (Graph 3).

DX Human Resources Development Program (Figure 1)

Self-improvement curriculum (massive online open courses (MOOC) and qualification acquisition)

Business+
Consumer+Community

Engineering+
Art / Design+
Agile

Technology+
Science+Academia

Security

5G / IoT

Blockchain

Data Science, Analytics / AI

Cloud / PCI

Microservice / API

Agile software development

UX design / Design conception

Nomura Research Institute

Digital marketing

Skills knowledge
and frame

External collaboration curriculum (Participation in industry–academia–government collaboration and industry organizations)Management+
Leadership

72

System consulting knowledge

Business consulting knowledge

Implementation
know-how anduse cases

DX business design

Knowledge andinsight

BIT basic curriculumNumber of DX Skills Development Courses byYear (Graph 1)

Number of DX Skills Development Course Attendees andthe Number of Days They Attended, by Year (Graph 2)

Human Resources Active in DX by Year
(Graph 3)(Courses)(persons)(Days)(persons)

120

10,000

100
80

5

2,500

4

2,000

3

1,500

8,442
8,000

3.49

6,000

5,353

59
50

48

7,476

3.84

3.45

220

60
4,000

2

1,000

2,000

1

500

0

0

0

40
20
0

535
450

50

20.3

New courses

53

21.3

55

554

616

415
1,095

1,217

740
22.3

Ongoing courses

20.3

21.3

22.3

Course attendees (persons)Days attended per person (days)* Number of course attendees was calculated simply as
the number of attendees at each course

20.3

21.3

22.3

Basic level
Intermediate level
Advance level*N RI-registered employees (includes employees of NRI
Group companies hired by NRI itself)

Global Human Resources
NRI implements many overseas programs to develop global
business leader. We are especially focusing on an overseas
training system where employees can experience global
business for about one year through an internship at theoverseas office of a globally active client company. Over the
past nine years, 190 trainees have so far been sent to 16
countries overseas. The overseas studies program is asystem through which employees obtain wide-ranging
knowledge and expertise as well as advanced technicalcapabilities. In addition to MBAs from overseas businessschools, the acquisition of degrees in other fields, such as
computer sciences (MSE/MCS) and law (LLM), is also
actively

Leadership Skills Every year, we organize AHEAD Program 360-degree feedback from managers and subordinates, with the aim of
improving the abilities of manager-level personnel at developing subordinates and boosting their co-creation

leadership skills. In addition to department head and groupmanager personnel who had previously been involved, thefeedback was expanded to include all 3,139 manager-level
personnel in FY March 2022.

Successor Training 
We conduct two types of training for selected individuals tosecure 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 Program, alearning and development program for the next generationof management personnel.
Of the 31 total participants in the program during the five
years leading up to and including FY March 2022, 12 havebeen promoted to executive roles (as of the end of March,2022). Additionally, we conduct Selected GM & Department
Head Training for 15 to 20 candidates for promotion to
department head every year.
Of the 86 total participants in the program during the five
years leading up to and including FY March 2022, 51 havebeen promoted department head roles (as of the end of
March, 2022).

Integrated Report 2022

73

Mechanisms for Supporting Value Creation
Human Capital

Initiatives to Improve Engagement
Maximizing our human capital is one of the NRI Group’s key topics in the new long-term vision V2030. Job Satisfaction
Co-Creation activities have been organized throughout the NRI Group as a whole starting in FY March 2022 as an initiative tomaximize our human capital by improving employee engagement.

Visualizing the Status of Organizations (Engagement Surveys)
We measure employee engagement at NRI in order tounderstand the job satisfaction levels of our employees andco-create job satisfaction throughout our Company as awhole. Utilizing engagement measurement tool Wevox*1, thesurvey is conducted for employees of NRI and some NRIGroup companies*2 once per year (in June). The results ofthe survey are used as reference data to formulate measuresin human resources, and are also disclosed to employeeson the Company intranet for use in activities to improveengagement in the workplace.
*1 Tool provided by Atrae, Inc.
*2 F
 ive 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., Nomura School of Advanced Management.

Engagement score (NRI’s score vs. industry average)
Engagement scores are assigned ranks A through F as indicators

NRI: 70

Reference:
Average scores in the systems integrators & contracted developers industry among Wevox user companies: 67 (June, 2021)

10

20

F

30

E–

40

E

E+

(June, 2021)

50

D–

D

60

D+

C–

70

C

C+

80

B–

B

90

B+

100

A

Organizational Development Program
In FY March 2022, we began offering an organizational
development program for employees with the aim of developing organizations with even higher job satisfaction oncethe status of the organizations has been visualized. Videobased programs from which employees can learn wheneverthey have time, as well as training-style programs in which

participants can learn about organizational developmentfrom each other while engaging in practical application. We
have also started incorporating this into training for new
managers starting in FY March 2023 among our efforts topromote better organizational development capabilities for
NRI as a whole.

Fostering a Culture Conducive to Job Satisfaction (Communicating Information via Events, etc.)
We are also concentrating on communicating information invarious ways to foster a culture in which all employees takethe initiative to co-create job satisfaction.
Starting in FY March 2022, we have been hosting Job
Satisfaction Co-Creation Forum, coordinated in conjunction
with the Company-wide employee engagement survey. With
nearly 700 employees in attendance each year, we share job
satisfaction-related information from inside and outside NRI
each year. At the same time, we have launched 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.

74

Nomura Research Institute

Job Satisfaction Co-Creation
ForumPromoting Diversity and Inclusion, and Respect for Human Rights
NRI is promoting diversity and inclusion to promote employee success, which is in the Human Resources Strategy. Furthermore,
we are engaged in the respect of the human rights of all people who are impacted by NRI’s business activities.

Diversity and Inclusion at NRI
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 and continue embracing challenges. To all employees, we offere-learning content (e.g., understanding of unconscious
biases and sexual minorities) that promotes understandingof diversity and inclusion. Additionally, in the past few years,
related activities have prioritized three areas (gender, career /specialization, and generation) out of the seven areas
shown in the figure on the right.
Initiatives for the 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 createdsystems that supported the balance of work and parenting,prepared training, and fostered an environment that facilitated greater participation by women, making it only naturalfor women to continue working. Furthermore, we implemented measures to encourage women to advance theircareers, including the Female Leader Development Program
launched in FY March 2016, and the Leader Development
Academy, in which female directors serve as instructors andwas launched in FY March 2019. We thereby succeeded inboosting the female managers’ ratio.
Discussions related to diversity promotion, including hiring
women for management positions, are also taking place in
Senior Management Committee and Board of Directors
meetings. Starting in FY March 2022, diversity promotion
initiatives are evaluated on a per-division basis and calculated into bonuses.To facilitate the further hiring and promotion of women to director and management positions, weare engaging in the promotion of women’s participation andadvancement while keeping the job assignment and development plan in mind.
Initiatives for Promoting the Success of Mid-career Hires
NRI is strengthening mid-career hiring in order to promote
the DX and Global Strategies. We are enhancing on-boarding
measures when mid-career hires join NRI to enable them tobecome used to their new work environment as soon as
possible and exhibit their expertise and capabilities to thefullest extent. In addition to the semi-annual socializing
event for mid-career
recruits and the president which we havebeen holding since FY
March 2021, we also
arrange follow-up interviews and support internal social networking.

NRI Action Policy for Promoting Diversity and Inclusion

Promote a workplace environment
where employees participate
actively, regardless of gender

Employees withdiverse careers andspecializations
participate actively

Gender

Career andspecialization

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

Generation

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

Lifestyle
Collaborationand mobilization ofdiverse humanresources(child-rearing,
nursing care, andhealth)Presence ofdisabilities

Cross-cultural
Sexual orientation and gender
identity
Participate actively while
respecting each other’scultural backgrounds andvaluesPromote a basic
understanding in relation tosexual minorities

All employees are free of any
psychological barriers
irrespective of whether they
are with or without any
disabilities

Action plans under the Act on Promotion of Women’s Participation andAdvancement in the Workplace
Term

From April 2019 to March 2023

Goals

1. Raise the ratio of female managers to at least 8.5% by FY March 2023
(Newly promote more than 100 women to management level positions)
2. Raise NRI’s female employee hiring rate to at least 30% of its total hires
3. Carry out, toward management-level employees, further awarenessraising activities related to diversity management

Initiatives

1. Continue the Female Leader Development Program with the goal ofdeveloping female employees into managers
2. Continue measures to increase the number of female students recruitedas employees
3. Implement awareness-raising measures related to management anddevelopment responsibilities of managers toward employees withdiverse individualities and values
4. Carry out system reforms aimed at allowing employees to select diverse
work-style choices

Initiatives for Strengthening Intergenerational
Integration and Synergy
Employees of a broad range of ages work at NRI, fromthose in their teens to their sixties. In regard to differences inthinking and values arising from generational differences,
there is a need to create an environment that enables
people to recognize each other’s strengths while respecting
differences. We worked to enhance the awareness of managers and department heads by holding a D&I seminar forthem with generational inclusion as the theme.

Get-together of mid-career hires

Integrated Report 2022

75

Mechanisms for Supporting Value Creation
Human Capital

Support for Balancing Work with Childbirth, Parenting, and Nursing Care
NRI is working to create a workplace that facilitates a balance between work and parenting for both men andwomen. In addition to systems such as maternity / paternity
leave, we established the “partner childbirth leave” system
in January 2017 as part of measures aimed at encouraging
male employees to take paternity leaves and vacations.
Starting in FY March 2021, male employees who take childcare leave have also been participating in Training for
Balancing Work with Parenting for employees who havereturned to work from childcare leave. In June 2017, we
opened the Yokohama Center and established the
Yumeminato Hoikuen as an in-office nursery. These facilities
support employees in resuming their career at the desired
time and building a career plan.

Furthermore, to promote balance between work andnursing care, we have systems such as nursing care leaveand shorter working hours for nursing care. We also holdnursing care seminars on a periodic basis.

Talking about his experiences taking childcare leave at
the training

Promoting Workplace Participation by Persons with Disabilities
NRI Mirai, Ltd., a special subsidiary* of NRI, contributes towork-style reform by providing employees with various disabilities work opportunities such as setting up meetingrooms and libraries, supporting training, collecting/deliveringinternet mail, and managing miscellaneous goods, and evenproviding massage services for employees and managing acafé at Kiba Center.
Moreover, NRI is working to expand hiring opportunities
for people with disabilities by holding fixed-point surveys
and presentations related to management issues and trends
in the hiring of people with disabilities and operations at
special subsidiaries. As of June 2022, 191 disabled persons
are employed at NRI and its Group companies (an employment ratio of 2.42%).

* It 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 from the central government allows persons with disabilities employed by this typeof subsidiary to be deemed as being employed by the parent company.

NRI Mirai employees operating “Sora café Mirai”

Efforts for Respecting Human Rights
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. As a company involved in the development
and utilization of AI, NRI also formulated the NRI Group AI
Ethics Guidelines in October 2019 with the belief that it isessential to mitigate the negative effects of AI while developing and utilizing AI in a proper manner. Furthermore, as an
initiative to entrench respect for human rights, we exercise
human rights due diligence toward NRI and its Group companies based on the UN Guiding Principles on Businessand Human Rights. In addition, we also carry out in-housetraining (e-learning) related to ESG, including human rights.
To further promote sustainable procurement, we arereviewing the terms and expressions used in the existing
NRI Group Procurement Policy and the NRI Group
Employees’ Code of Business Conduct. Additionally, in April
2021, we established the NRI Group Business Partners’
Code of Conduct that outlines those matters that we would

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Nomura Research Institutelike our business partners to observe, including respect forhuman rights, compliance with laws and regulations, andpreserving the global environment. Currently, we have madethe Code known to our business partners, such as external
contractors and procurement sources, and are seeking theirunderstanding and cooperation.
NRI will continue to bolster its efforts toward respect forhuman rights while communicating with our stakeholders
and facilitating their understanding of the relevant policies
and efforts.
NRI Group Policy on Human Rights
https://www.nri.com/en/sustainability/social/policies#jinken
NRI Group AI Ethics Guidelines
https://www.nri.com/en/sustainability/social/policies#AI_Ethics_Guidelines
Human Rights Reporthttps://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

Work-Style Reform Issues and Health and Productivity Management
By enacting work-style reform, NRI works to promote work–life balance by reducing long working hours. We seek to achieve anenvironment where employees can fully exhibit their abilities while valuing their personal health and family life.

Initiatives for Work-Style Reform
In 1994, NRI implemented a discretionary labor scheme that
was a pioneering initiative in Japan at that time. Through thisscheme, we have promoted a work style that is free from time
constraints.
From 2016 to 2017, we relocated our Tokyo, Yokohama, andOsaka offices to new buildings. Based on the concept of “creating new value by connecting people, goods, events, information, and objectives,” we developed office spaces that achievea working style that is uninhibited by location. The use of telecommuting and satellite offices is also increasing. Led by theWork-Style Reform Committee, which we started in FY March
2018, we supported the achievement of flexible working styles
with even higher productivity. Currently, we are engaged inenhancing productivity through a new work style that combines
telecommuting with in-office work.
In addition to this work infrastructure, NRI is also fostering a
corporate culture that facilitates co-creation among diverse
human resources. For example, one specific initiative is workstyle reform that matches the content and characteristics ofwork at each division.

New office that achieves an innovative working style

NRI Health Declaration 2022
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.

1

Reduce lifestyle-related diseases• 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 cases2

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

3

Lower smoking rates• Introduce support to help stop smoking• Remove smoking spaces inside the office4

Promote work–life balance• Reduce overtime and holiday work hours• Encourage employees to take paid leave• Implement the frontline-driven Smart Work-Style Campaign(SWC) including: streamlining operations and meetings, as wellas promoting early morning work

Health and Productivity Management
NRI aims to achieve health and productivity management* thathelps improve employees’ quality of life (QOL). The CEO of NRI
also serves as Chief Health Officer (CHO) and currently is developing various systems and engaging in the relevant initiatives
toward invigorating NRI and achieving increased productivity
under the four goals. Furthermore, we have expanded thescope of vaccination to include employees, their families, andbusiness partners, and have implemented the COVID-19
vaccinations.
* 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.

External Evaluation of NRIIn 2017, NRI received the highest level (Level 3) of Eruboshi Certification (certification by the Minister of Health, Labour and Welfare based on the Act on Promotionof Women’s Participation and Advancement in the Workplace)Selected as a Nadeshiko Brand for six consecutive years in a row (corporations
selected by the Tokyo Stock Exchange and the Ministry of Economy, Trade andIndustry for outstanding promotion of female performance and advancement)
Certified as “Kurumin” for five consecutive terms from 2007 and as “Platinum
Kurumin” in 2018 (certification of corporations that support child-rearing based on
the Act on Advancement of Measures to Support Raising Next-Generation
Children)Certified as a Health and Productivity Management 500 Organization (White 500;
Large Enterprise Category) for six consecutive years in a row

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Mechanisms for Supporting Value Creation

Intellectual and Manufacturing Capital

The Source of NRI’s Competitiveness
The NRI Group has continued to provide high added-value services utilizing the insight and precise ability to implement thathave been refined since our founding. Intellectual capital is the vital source of the NRI Group’s powerful competitiveness, and an
important element that clearly differentiates us from other companies. In addition to boosting individual strength to incomparable
organizational strength that extends beyond organizational boundaries through the accumulation and utilization of intellectual
capital, we continue to inherit and pass down knowledge and expertise that stretches through the eras. The NRI Group continues its long-term relationships with our clients and grows its business through management of such intellectual capital.

Intellectual Capital
Outstanding business modelContinuously evolving brandConsulting

IT Solutions

Superior insightHigh-level ability to achieve- Industry / business knowledge, technical knowledge-R ecognition of clients’management issues-P roposals, reports, investigation data, etc.

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

- 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

Patent rights  Copyrights  Rights of trademark  Design rights
Capabilities that support business development
Knowledge that supports organizational strength-C onsulting framework, industry network, expertise to support
execution, analytics methods / tools- IT solution expertise / regulations (NRI standard framework, project
management, system operation, data center operation, etc.), etc.

Processes that support organizational strength- 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.

Outstanding Business Model
The NRI Group has a unique business model that continuously and concurrently utilizes both consulting and IT solutions to support reform in our clients’ business. Industry andbusiness knowledge in consulting work, deep understanding of our clients’ management strategy and issues, anddevelopment / operational documents and software assets(algorithms, etc.) in IT solutions business are the NRIGroup’s valuable assets. By building up such intellectual
capital, we have the ability to make recommendations andpropose business strategy related to management of ourclients’ businesses, as well as to create DX platforms, etc.,that utilize shared online services and AI, thereby creating ahigh level of added value.

Con-Solution Promoting DX Strategy with Clients
Corporate DX strategy is changing the era of “converting business to IT” to an era of “creating business through IT.” In orderto accelerate this movement, NRI operates its business in collaboration with a variety of companies, and by bringing together
knowledge / expertise and technology that will be mutually
beneficial, we continue to generate new value.

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The NRI Group has implemented “Con-Solution,” a uniquebusiness model in which consultants that are well versed inindustry knowledge and business processes and system engineers with significant experience in project management work
alongside our clients to implement technology, repeatedly verify
effectiveness, and share the results with our clients.

This Con-Solution is also being utilized in next-generation
smart construction by EARTHBRAIN Ltd., which was foundedby NRI jointly with Komatsu Ltd., NTT Communications
Corporation, and Sony Semiconductor Solutions Corporation.

Komatsu Ltd
NTT Communications Corporation
Sony Semiconductor Solutions Corporation
NRI
EARTHBRAIN
https://www.earthbrain.com/en/

EARTHBRAIN was launched to bring DX to the constructionindustry and dramatically improve safety, productivity, andenvironmental friendliness. NRI supports DX in the constructionindustry through development of solutions and providing
services and expertise that utilize its insight in business modeltransformation through digitalization.

Continuously Evolving Brand
garnered high praise and trust through these activities. In
addition, the IT solutions provided by the NRI Group support the financial market and everyday living through a highlevel ability to achieve, and boast a high level of quality andreliability as part of society’s infrastructure, so to speak.
These activities contribute significantly to improvement of
the NRI Group’s sense of reliability and corporate image.

Considering Japan’s first private think tank as one of its
origins, the NRI Group has strength in social recommendations and communication of information based on consumer trend investigations and forecasts of the future. We
observe society and industry from a unique and excellent
perspective, and release the results broadly to society
through publications, forums, and the media, etc. We have

A Group of Experts Taking on the Challenge of Making
Future Society a Reality

Increased Presence through Communication ofInformation on Accumulated Intellectual Property
We have increased the reliability of our ability to analyze
and make recommendations and display our presence
as a creator of future society by broadly communicating
information on the results of our unique investigations andresearch 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 strategicallyutilizing as intellectual property the results of our activities.

Social issue
resolution

Digital utilization

GrowthInnovation

Sustainability
well-being

Data-analytics
Data-security

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

Theme domains

The core of the NRI Group’s think tank function, the Center
for Strategic Management & Innovation, aims to be a“future-oriented think tank” that observes the increasingly
unclear social and economic issues faced by Japan andthe world from a perspective that looks into the future, andrecommends / communicates a “prescription” for thoseissues based on scientific judgment.
Members who possess a high level of expertise in eacharea propose a variety of measures to improve Japan’scompetitiveness and resolve social issues while painting a
picture of society’s future. In addition, we are implementing
innovative initiatives that contribute to resolution of issues,
while collaborating with global entities.

Orientation of value utilization
Gainingcompetitiveness /growth potential

Daily living, employment, human resources
Research into the systems of values and lifestyles of the general public
Research into policy related to employment / human resources
Digital human resources (data scientists) research

Region, city, country esearch into local creation and local hubs (self-governed / independentR
metropolitan areas)
Promotion of innovation programs
Regional DX promotion, etc.

A Variety of Intellectual Property Rights that Support these Activities
In order to maintain and expand intellectual capital andincrease the competitive advantage of the NRI Group, ourIntellectual Property Department promotes strategic andongoing 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 model and 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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Mechanisms for Supporting Value Creation
Intellectual / Manufacturing Capital

Capabilities that Support Business Development
The NRI Group’s outstanding business model and constantly evolving brands are supported by knowledge and processes that accumulate the wisdom, experience, and know-how of individual human resources and transform them into “organizational knowledge.”
Production innovation methods are important processes for supporting organizational strength. These methods are born from activities such as quality supervision (including periodic meetings of the Systems Development Committee) and continual innovation toenhance work. Through these important processes, NRI has accumulated knowledge that enhances organizational strength, suchas many different consulting frameworks and various IT know-how and rules. These processes and knowledge are key elements ofintellectual capital as the capabilities that support the development of business models and brands.

NRI’s Quality Management
We continually work to improve the quality of services, fully aware of our responsibility to deliver and operate information systems thatserve as a key component of social infrastructure.

NRI’s Quality Management Framework

Navigation
Management strategy
planning

Solution
Planning and developmentof information systems

Maintenance and operationof information systems

Quality of information
security

Quality of systems inoperation
Quality of information
system development

Cloud service quality
Quality of data center
operation

Quality of workplaceenvironment

Initiatives for Improving the Quality of Information Systems Each division is responsible for quality management over 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.
In addition, work is under way to post all of the knowledge gathered at NRI on its internal website in order to share expertise andexamples across the entire Company.

Project Support System for Improving the Quality of Information Systems
NRI-QMS(quality management system)

NRI
standard framework

Nomura Research Institute

System failures
management

Information system
Newly development project

Information system
Enhancement project

Planning

Operations / Improvements

Development

Project supervision

80

Production innovation

ReleaseRisk management

Enhancement innovation /Operational innovation

Project Supervision Activities
Internal review system

Company-wide projectmonitoring activities

Senior Management
Committee• Project awareness

Systems Development Committee
Proposal andEstimate Review
Meeting

SystemDevelopment
Meeting

System Release
Meeting

Project

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 to“project management” for project implementation and success, NRI has a “project supervision” function to propose
quality improvements, and to identify andresolve 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.

• 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

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 candidates.

Objective observations(food for thought) by other divisions,departments, and teams

Project
Managers

Former Project Managers
become reviewers

Reviewers

Even young, inexperienced PMs
can handle risks

Evaluate many projects of otherdivisions, departments, and teams
Grow further as PM humanresources who can play an activerole in multiple areas

Become Project Managers/PMO*/project administrators through experience as reviewers and attendance* Project management office. At NRI, there are many cases in which former Project Managers enter the PMO and provide indirect support for new Project Managers.

Emphasis on Quality of Systems in Operation 
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 levelof importance as projects to develop new information systems.

Production Innovation Initiatives
Since FY March 2011, NRI has held the Production Innovation Forum foreach 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.

The Production Innovation Forum award ceremony

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, andtakes the appropriate measures. We also have independent organizations perform regular audits and evaluations of the operations ofthese services, and facilitate improvement processes to ensure that they remain highly regulated with good security.

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Mechanisms for Supporting Value Creation
Intellectual / Manufacturing Capital

Quality of Data Center Management that Supports Stable Operations 
The stable operation of information systems requires not only the quality of the information system itself but also the quality of thedata center that operates and manages the information system. In order to ensure stable operation of information systems, and toprovide safe and secure quality of services, NRI visualizes the risks related to data center services, conducting training for each typeof issue that could be anticipated.
It also conducts inspections that are interconnected with data center facilities. In respect to these efforts, NRI has obtained certification from third-party review agencies.

Main Data centers[Kanto][Osaka]Tokyo Data Center

Osaka Data Center

Completion: 2012

Completion: 2016­

Total floor area: 338,820m

Total floor area: 15,000m2­

Reception capacity: 40,000KVA

Reception capacity: 7,500KVA­

2

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

Safety and Security ForumThe stable operation of data centers is NRI’s social mission. As part of thismission, we hold a forum on the themes of safety and security every year. In
FY March 2022, we invited Professor Masayuki Nakao of the University ofTokyo Graduate School of Engineering for a lecture on “The Science ofPreventing Failure.” Professor Nakao conducts research on the science offailure analysis aimed at clarifying the causes of accidents and failure incompanies.
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, andawards for excellent slogans on safety and security thought up by individual
employees.

Masayuki Nakao
Professor
Tokyo University Graduate School of Engineering

Examples of Certifications and Assurances Acquired by NRI* Certification acquired for Tokyo Data Center I, Yokohama Data Center II, and Osaka Data Center II

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fo r

Ser v

i c e O rg a n i z a

ti o

rv

aicpa.org/soc4so

C

Se

SO

ic e

O rg an iz a ti o n s• 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)*ns|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 ofadvanced information security management that can serve as asocial model to enable its companies to continue to be worthyof client and public trust.
Declaration of Information Security Measures
https://www.nri.com/en/site/security_declare

Related Rules Concerning Information Security
In response to laws and regulations related to information
security and the advance of information technologies, weestablish 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 Asset Management Rules.
In addition, we have prepared operating procedures, guidelines, manuals, etc., for each of these management rules toensure that consistent and effective information security management is conducted.

Information Security Management Structure
NRI has appointed a Chief Information Security Officer, who has
developed a system of information security management forour organization as a whole. All business divisions and Group
companies have appointed an information security manager
and information security person-in-charge (PIC), who havedeveloped a mesh structure that allows security measures tobe undertaken on a cross-organizational basis. As well as furthering the implementation of our information security policies,
this structure will enable us to respond swiftly, accurately, andreliably 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”) that engages exclusively in information security
business. We will draw on their technology, know-how, andknowledge 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 aneffective information security system and the drafting of an
information security enhancement plan at their company. In
addition, the NRI Group has set certain information security
protection standards and engages in improvement drives
designed to meet those standards.

Information Security Management Structure

Planning and Implementation
Headquarters structure

Chief Information
Security Officer

Review of information
security activities
Security Management
Department

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)

NRI SecureTechnologies

Practice
Person responsiblefor division
Division Information
Security PIC
Person responsiblefor department
In-department Information
Security PIC

Support

NRI Workplace Services

Employees

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Mechanisms for Supporting Value Creation
Intellectual / Manufacturing Capital

Education on Information Security
NRI conducts ongoing information security education to raise
the awareness of information security, instill regulations, andimprove the quality of security during design and development.
In addition to conducting specific training tailored to the particularcharacteristics of our divisions and Group companies, we arrange
training for our 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’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 accordancewith the Statement and Policy, our employees comply with
the Act on the Protection of Personal Information Held byAdministrative Organs; the Act on the Use of Numbers to
Identify a Specific Individual in Administrative Procedures (the“My Number Act”); and other relevant laws and regulations.
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.

Response to Cyberattacks
NRI uses system-based defenses against cyberattacks, suchas installing antivirus software and EDR*1, hard drive encryption,and installing different security measures (such as firewalls,
WAF*2, and network behavior analysis technology*3). However,
NRI is well aware that system responses alone are not enoughfor defense, and has therefore put in place a Computer Security
Incident Response Team (CSIRT)*4.
A CSIRT acts like a fire extinguisher, denying further successto any attack that does in fact strike a system. It collects, evaluates, and shares vulnerability and attack information, and functions as an organized, swift, and appropriate measure. We also
conduct employee education and training related to targetede-mail attacks.
*1 A
 solution that detects suspicious behavior on computers and servers (endpoints) andsupports prompt response.
*2 W eb Application Firewall: System for detecting or providing protection against attacks
that take advantage of the vulnerabilities of web applications.
*3 M alware 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 C omputer 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.

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

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

As part of the “Best Practice Award” released by the major U.S. research and consulting firm
Frost & Sullivan Inc., NRI Secure was named the “Japan Managed Security Service Provider of
the Year,” the top award in the Managed Security Services category, for the fifth year in a row.
Furthermore, NRI was introduced as one of the representative global vendors in reports publishedby U.S.-based Forrester Research related to managed security services providers and fraud management solutions.

Received the 2021 Japan Managed Security Service
Provider of the Year award from Frost & Sullivan

Quality of Workplace Environment 
NRI promotes a multitude of initiatives to foster a workplaceenvironment where employees can keep on working positively
in good mental and physical health. The buildings for
Headquarters, the Yokohama Center, and the Osaka Center
have open layouts with no assigned seating, and common
spaces such as meeting rooms. 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,

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Nomura Research Instituteand those in project supervisor departments, to grasp theovertime hours of project members. NRI is also continuously
working on advancements in our work environments themselves. This includes digital solutions implemented starting in
June 2020 that use in-house technologies to protect the healthof visiting clients as well as employees of NRI and its partners
by detecting body temperatures of visitors and avoiding the“Three C’s”—closed spaces, crowded places, and close contact with people, in the office.

Social and Relationship Capital

Cooperation with Stakeholders
NRI values connections with clients, employees and their family members, shareholders, investors, and business partners,
which include a wide range of entities composed of general consumers, media, local communities, industry associations andcompetitors, government agencies, education/research institutions, students, and NGOs / NPOs.

Dialogue with Experts
Each year since FY March 2011, NRI has engaged in dialogue with outside experts in order to understand trends in global sustainability and reflect that knowledge in management strategy and risk management. The 10th Dialogue with Experts was held on
November 19, 2021. We exchanged opinions with three experts, mainly regarding “positioning of sustainability in the Medium-Term
Management Plan,” “promotion of diversity,” and “ESG trends.”

TsuyoshiMizuguchi
Vice Chairman of
Takasaki City University of
Economics

Emi Onozuka
Chief Operations Officer,
Japan Catalyst, Inc(Monex Group)

Yasushi Hibi
Vice President, Asia Policy
and Managing Director,
CONSERVATIONINTERNATIONAL-JAPAN(Affiliation and position as of November 2021)

Positioning of Sustainability in the Medium-Term
Management Plan
Mizuguchi: In order to position sustainability in management strategy, it is important to reduce negative impact
and increase positive impact. In regard to negative
impact, it is believed that efforts to make data centerscarbon-free are necessary. It appears that the transition to
renewable energy is proceeding, but setting and promoting a more aggressive target is likely a good idea.
As for positive impact, it would probably be best to
disclose detailed information on which departments are towork toward “achievement of social paradigm reform” andwhich approach is to be used. Pushing the Company’s
perspective as a think tank to the forefront and making
recommendations about the orientation of society will
likely become one positioning of sustainability in NRI.
Onozuka: As an investor, I expect the Company to have asustainability narrative that is suited to the financial growthstrategy through increasing ROE or further global deployment. I believe that this requires the Company to talk toeach stakeholder about what issues exist, what the timeline for providing value will be, and so on.

Link between Sustainability Performance andDirector Compensation
Onozuka: IT companies in Europe use the results of
employee engagement when determining the amount ofcompensation for Members of the Board. Investors
believe that it is better to link Member of the Board compensation to indicators that lead to substantial corporate
value rather than simply having specific indicators beelements of determining compensation.

Mizuguchi: We’re not talking about simply connecting
sustainability indicators to compensation, but we’re sayingthat having a narrative in which the Board of Directors
makes a commitment and integrates it into strategy isreally what gives meaning ultimately to linking it to compensation. The important point is not just compensation,
but what the Board of Directors commits to.

Method of Procuring Renewable Energy
Hibi: From the perspective of NRI being able to co-createsocial value as well, I believe that it is necessary to procure renewable energy that has additionality.* Even if NRI
procures renewable energy that has additionality,
the social impact may not be that significant in terms of
the amount of consumption. However, I believe that it isvery significant as the ability to communicate information.
Japan is behind in the context of the world, but NRI
should take the lead in Japan.
*H aving the effect of encouraging investment that generates new renewableenergyNRI: In light of what you have said, we would like to work
toward expanding themes aimed at social issues in our
research and development. Further, in addition to continuing discussion of the ideal nature of sustainability policy inthe future, we will continue to consider the possibility ofprocuring renewable energy in a better form, while monitoring market trends and revisions of systems.

CSR Dialogue FY March 2022
https://www.nri.com/en/sustainability/management/dialogue/2021/dialogue

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Mechanisms for Supporting Value Creation
Social and Relationship Capital

Cooperation with Clients

The Main Items for Deliberation on New Contracts

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

Credit screening tapping into information from research firms
 roject-by-project deliberation at the Senior Management
P
Committee and each division meeting omprehensive assessment on the future potential, growthCpotential, and social effects of the businessResults of the Client Satisfaction Survey (non-consolidated)
Percentage that responded “Satisfied” or “Moderately satisfied”(Total for top two items on five-grade scale)
(%)
100

90

84.6

86.9

83.8

86.4

88.0

21.3

22.3

80

70

60

50

18.3

19.3

20.3

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/jp/company/partner

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 theForeign Exchange and Foreign Trade Act.
The number of employees involved in business at NRI’s business partners
stands at approximately 13,000, about half of which are permanently stationed in
NRI offices or currently working from home.
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.

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Hosting of Partner Sustainability
Dialogues
NRI holds annual sustainability
workshops with its business partners to share information andexchange opinions about sustainability activities. The dialogue washeld online for the first time inJanuary 2021. There was participation by a record 67 business partners, a testimony of their strong
interest in sustainability activities.

Dialogue with business partners
regarding the ideal nature of cooperationin sustainability activities

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

Measures Aimed at Ensuring a Meaningful General Meeting of Shareholders
To energize the General Meeting of Shareholders and ensure that voting rights are exercised, we perform the following
procedures:
 et the date of the General Meeting of Shareholders on aS
day where such meetings are not concentrated.
In addition to sending out individual notices of convocation of a General Meeting of Shareholders earlier, post thenotice on the NRI and Tokyo Stock Exchange websites
prior to sending the individual notices. This effort allows
shareholders to have sufficient time to consider the proposed resolutions for the meeting The 57th Ordinary General Meeting of Shareholders:
Notice released on May 21 Meeting held on June 17(Notice about one month before)Send out a notice of convocation of a General Meeting of
Shareholders electronically to shareholders consenting tosuch procedure eliver a notice of convocation of a General Meeting ofD
Shareholders in English (summary)Provide an opportunity to exercise voting rights by using
the Internet system run by a trust bank (a shareholder
register administrator)
Provide an opportunity to exercise voting rights by using
the Voting Rights Electronic Exercise Platform, run by
ICJ, Inc.
Hold a Management Reporting Session for shareholders
after the conclusion of the General Meeting of
Shareholders

Hosting of ESG Briefings

Active Dialogues with Shareholders and Investors
With the aim of expanding our shareholder and investor base, we are promoting better understanding of our business activities and strategies for
growth through direct and indirect communication. The following principal
activities were implemented during FY March 2022:
For
shareholders

 hareholder questionnaire: Number of respondents: 5,217
S(Number sent: 21,149 shareholders / Collection rate: 24.7%)

For institutional
investors andanalysts umber of investors met: 785 persons
NDomestic: In addition to results briefing sessions for each quarter andindividual interviews, held small meetings with management,
ESG briefings, Business Information Sessions, etc.
Overseas: O nline roadshows and online conferences

For individual
investorsIndividual investor information meeting: two were held (Online)
Number of attendees: 2,307 persons

We host “ESG briefings” to help investors,
analysts, and the media gain an understanding of NRI’s sustainability management and specific efforts regarding ESG.
The February 2022 briefing welcomed 96
participants.

ESG briefings
https://www.nri.com/en/sustainability/
management/esg/2018

Providing Appropriate Information Disclosure
In order to achieve accountability to shareholders, investors,
and other stakeholders, NRI is striving to enhance the levelof information disclosure and the timely disclosure of information through activities including those below:
Disclosed the Long-Term Management Vision and theMedium-Term Management Plan (mid-and long-term
management strategy and numerical 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 toenhance information disclosure and understandability
and clarity

External Evaluation of NRI
2021 Award for Excellence in Corporate Disclosure∙ IT Service / Software Industries∙ Disclosure to Individual Investors(The Securities Analysts Association of Japan)

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Natural Capital

Reduction of Environmental Impact for Preserving Global Environment
One of the key issues (materiality) for sustainable growth raised by the NRI Group is environmental impact reduction forpreserving the global environment. NRI recognizes that planet-wide environmental issues, including climate change andenvironmental pollution, are global issues. As a company that provides consulting and IT solution services, we will leverage our creativity and technological capabilities to work with all stakeholders and contribute to the realization of a sustainable future. Furthermore, during business activities by the NRI Group, all officers and employees of the Group strive
to reduce the environmental impact.

Environmental Targets
FY March 2022, which is nine years ahead of schedule.
Therefore, we set new targets in February 2022 for reducing
greenhouse gas emissions.

In May 2020, NRI committed to Business Ambition for 1.5˚C,in response to the mounting sense of crisis related to global
climate change. In February 2021, NRI set a greenhouse gas
emissions reduction target that aimed to limit global temperature rise to 1.5˚C from preindustrial revolution levels.
The target has been certified by SBTi* as a 1.5˚C target.
To achieve this target, NRI joined RE100 in February 2019.
Afterwards, in FY March 2022, we switched the electricity used
at our main data centers to renewable energy sources. As aresult of these efforts, we expect to achieve the SBT 1.5°C
target for FY March 2031 that we set in February 2021 by*S BTi: An initiative to promote the setting of science-based targets for reducing greenhouse gas emissions by companies in order to control the increase in global temperature
below 2˚C from preindustrial revolution levels. The initiative was established by fourorganizations: CDP, which is a federation of institutional investors promoting disclosure
on climate-change countermeasures, the UN Global Compact (UNGC), the World
Resources Institute (WRI), and the World Wildlife Fund (WWF).
Science Based Targets website
https://sciencebasedtargets.org/

NRI Group’s Environmental Targets
SBT1.5ºC Target(Set in February 2021)

New Target*1(Set in February 2022)

Category*2

Target for FY Mar. 2031

Target for FY Mar. 2031

Scope 1+2

· Reduce greenhouse gas emissions at the NRI Group by 72%(compared with FY March 2014)· Achieve a renewable energy usage rate of 70% at data enters· Reduce greenhouse gas emissions at the NRI Group to zero*2·A chieve a renewable energy usage rate of 100% at the NRIGroup

Target for FY Mar. 2051
· Reduce greenhouse gas emissions at the NRI Group to zero· Achieve a renewable energy usage rate of 100% at the NRIGroup

Scope 3

Target for FY Mar. 2024
· 70% or more of NRI Group suppliers and vendors will set science-based target for reducing greenhouse gas emissions (Categories
1, 2 and 11)
Target for FY Mar. 2031
· Reduce greenhouse gas emissions related to employee travel and commuting (Categories 6 and 7) by 25%*1 The new target is scheduled to acquire SBT certification in accordance with the future standards of the SBT initiative.
*2 Regarding Scope 1 emissions, we will consider measures based on future SBTi guidelines and technology trends.
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 Scopes 1 and 2. Manufacturing in the supply chain, commuting by employees, business travel, etc.

Actual Greenhouse Gas Emissions
Results and Annual Targets of Greenhouse Gas Emissions (Scope 1+2)
(1,000t-CO2)

120

Greenhouse Gas Emissions(Scope 1+2)

From FY March 2016, NRI has been relocating and consolidating operations into data centers and offices with high environmental performance. As a result, the NRI Group’s greenhousegas emissions (Scope 1+2) in FY March 2022 were 30,000
tons, which was a reduction of about 72% from FY March
2014. Going forward, we will engage in the reduction ofgreenhouse gas emissions by promoting renewable energy
procurement in addition to our conventional energy
conservation measures.

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ResultReduced by60

approx.

Net Zero

72%

40
20
0

88

Target100

Results
14.3

Planned22.3

31.3

Implementation of Environmental Management System
NRI has acquired ISO14001 certification, an international­standard on environmental management systems (EMS), for its
data centers, which are the main source of CO2 emissions.
Furthermore, NRI-EMS, an environmental management system
unique to NRI, has been introduced at key NRI offices. Startingwith implementations of NRI-EMS at offices in China in FY
March 2019, we will be implementing the system at more
worldwide offices going forward.

Target Scope for Environmental Management System(based on CO2 emissions)
Domestic offices (not yet
implementing NRI-EMS)
12.6%
Overseas offices(with NRI-EMS)
0.4%

Overseas offices (not yet
implementing NRI-EMS)
1.5%

EMS
coverage ratio:

85.9%

Domestic offices(with NRI-EMS)
24.0%(FY Mar. 2022)

Data centers(with ISO14001)
61.5%

Progress in Renewable Energy Procurement
Because 90% of the NRI Group’s greenhouse gas emissions
arise from the use of electricity, we are sequentially promoting
a switchover to the use in business of electrical power derived
from renewable energy. As for our offices, thanks to efforts
such as the lobbying of building owners, a switchover fromFY March 2022 to the use of electricity derived from renewableenergy has been decided at some offices. Meanwhile, at ouroverseas bases, we achieved net-zero greenhouse gas emissions in three regions—China, the U.S., and Australia—bypurchasing renewable energy certificates. To achieve our targetof making the renewable energy utilization rate by our data
centers 70% by FY March 2031, we launched a Company-wide
decarbonization project in February 2021.

Reduction of Client(s) Greenhouse Gases Through Shared Online Services
Through the services we provide, the NRI Group contributes tothe decarbonization of our client companies.
The NRI Group provides a large number of shared online
services in which many client companies jointly use information
systems running at NRI’s data centers. Using shared online
services makes it possible to significantly reduce greenhousegas emissions compared to when each client company develops and operates an equivalent information system in-house.
NRI estimates that it is possible to reduce clients’ greenhousegas emissions by 73.9% through the use of shared online
services.

CO2 Reduction Effects via Shared Online Service

Reduced by
73.9%

When clientsdevelop andoperate systems
individually

When clients use
shared online
services

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Natural Capital

Promotion of Reduction of Greenhouse Gas Emissions in the Supply Chain (Scope 3)
The NRI Group is moving forward with efforts toward Scope 3
emission reduction, mainly through dialogue with major business partners and disclosure of information.
Each January, we host sustainability dialogue sessions toprovide a forum for learning about and discussing sustainability
with our partner companies. At that time, we introduce the NRIGroup Environmental Policy and efforts to reduce greenhousegas emissions. During this dialogue, we also ask our business
partners to set targets for reduction of greenhouse gas emissions. In FY March 2022, the international climate NGO CDP*
provided us with an explanation of how to set environmental
targets. In addition, starting in FY March 2022, we have participated in the “CDP Supply Chain Program,” with the aim ofunderstanding greenhouse gas emissions in the supply chain

and considering ways to reduce them. Along with encouraging
our business partners to disclose information related to climatechange, we are working to understand and identify the emissions generated by the products and services that NRI uses.
*C DP: A non-profit organization mainly involved in asking companies and local governments, at the request of highly environmentally aware institutional investors around theworld and major purchasing companies, to disclose information about their measures toaddress environmental problems such as climate change, safeguarding water resources,
and protecting forests, and through that, encouraging them to put such measures into
place. CDP is an information disclosure platform that currently provides the world's mostbeneficial information pertaining to environmental problems.
CDP website
https://www.cdp.net/en

ESG Training for Employees
We believe that spreading the NRI Group’s sustainability policy
to each officer and employee, and having them engage in their
daily duties with an awareness of the key issues for sustainablegrowth is of importance in the implementation of sustainability
efforts. To enable this, we opened our intranet ESG Site as ameans to build awareness and familiarize employees with thenecessary knowledge and wisdom, including those mattersthat need to be observed. Through the ESG Site, employees
can learn about the global tides related to ESG from each of
the themes—Environmental, Social, and Governance. What ismore, employees can also learn about and deepen their understanding of the sustainability activities that the NRI Group is
engaged in.

External Recognition
For the third year in a row following FY March 2020, NRI was
selected, through the climate change survey carried out by theinternational non-profit organization CDP, as a Climate Change‘A List’ company, which is the CDP’s highest level of recognition. We believe that NRI was recognized for its strategy, initiatives, and information disclosure pertaining to climate change.
NRI’s initiatives to address climate change in its supply chain
were also recognized for the third year in a row in February2020 by selection to the Supplier Engagement Leaderboard—the highest rating assigned to companies in the Supplier
Engagement Ratings by the CDP.

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SUPPLIERENGAGEMENTLEADER

2021

Initiatives Regarding the TCFD Final Report
NRI’s Initiatives Regarding the TCFD Final Report
The NRI Group established our Sustainability Activities
Committee to carry out initiatives a foundation upholding value
co-creation in sustainability management by implementing
initiatives related to sustainability management.
Because we consume a large amount of electric power—
mainly at our data centers—the NRI Group acknowledges theimportance of the effect electricity usage has on the climate.
We announced that the NRI Group endorses the TCFD*1 Final
Report in July 2018, and we are appropriately disclosing information based on the TCFD framework. Repeated discussions
are being held in the Sustainability Activities Committee

together with experts from the consulting business division, andin FY 2018 we began publicly releasing information about ourprogress at the annual ESG Briefing*2.
In FY 2018, we identified risks and opportunities throughout
the NRI Group’s overall business. In FY 2019, we conducted ascenario analysis for the data center business (which is vulnerable to the impacts of climate change) and calculated the financial impacts. Since FY 2020, targeting a different businessevery year, we have been conducting a scenario analysis tocalculate the financial impact on each profit center.

TCFD Scenario Analysis Implementation Status
FY March 2019

Implementation
details

Study the scenarios and identify risks /opportunities• Identifying the risks and opportunities
for the 2ºC and 4ºC scenarios

FY March 2020

FY March 2021 & FY March 2022

Scenario analysis for businesses vulnerable to climate change• Calculating financial impact

Consulting

Scenario analysis for profit center• Calculating financial Impact

Consulting
Asset Management Solutions

Targetbusiness

Financial IT Solutions
Securities Solutions
Industrial IT Solutions
Data Centers

Report target for FY March 2022
Data Centers

Anticipated Impacts on Our Businesses (Opportunities and Risks)After declaring our support for the TCFD Final Report, weestablished the scope of our investigations in FY 2018, the firstfiscal year. We defined and identified scenarios*3: a “2°C or
lower scenario,” in which the temperature increase is kept
below 2°C according to the Paris Agreement, and a “4°C scenario,” in which no measures are implemented besides those

expected at present. We identified the impacts in these scenarios on the Consulting, Financial IT Solutions, Industrial IT
Solutions, and Data Center businesses. Subsequently, in lightof trends in society, we revised the scenario of less than 2°C toa scenario of 1.5°C.
+ Opportunity

Business Field

Consulting

Financial IT
Solutions

Industrial IT
Solutions

Data Centers

1.5ºC or lower scenario– Risk4ºC scenario–

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

+

Compared to independent system development by individual corporations, NRI’s shared online services will enablesignificant reduction in power consumption, CO2 emissions,and cost. Furthermore, demand can be increased by raising
the renewable energy usage rate aimed at achieving RE100.

–

If the profitability of financial institutions decreases due toclimate change becoming a factor in asset damage andlong-term stagnation of the macro economy, there is the riskof impact on demand for provided services.

+

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

+

NRI believes that providing a cloud-based system will
minimize damage in the event of a natural disaster, thereby
limiting the risk to our customers.

+

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

–

There is the risk of increased expenses such as equipment
maintenance / renewal expenses and cooling expenses due topower malfunctions caused by natural disasters, and due to anincrease in days on which the temperature exceeds 30ºC.

+

The demand for client corporations to make changes
leading to decarbonization will increase demand for NRI’s
knowledge and solutions related to sustainability.

+

By FY March 2050, we seek to establish carbon-free data
centers which use renewable energy for all electric power.
We believe that these data centers will create increased
demand in conjunction with increased environmental awareness among our clients.

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Mechanisms for Supporting Value Creation
Natural Capital

Scenario Analysis for the Capital Markets & Wealth Management Solution Business
In FY March 2022, we conducted a scenario analysis for the
Capital Markets & Wealth Management Solution business,
which is part of the Financial IT Solutions business.
[Business model analysis]
To identify risks and opportunities in the Capital Markets &Wealth Management Solution business, we first conducted abusiness model analysis for the same. The services provided by
the Capital Markets & Wealth Management Solution businessare broadly classified into ASP (Shared Online Services) and SI(System Integration). We surveyed the relationships between
Variation Factors of Sales and Business for Capital Markets &Wealth Management Business (Figure 1)

these services and the variation factors of sales, likely to beaffected by climate change events. The below illustration demonstrates these relationships.
Within ASP services, we identified that sales variation factors
differ between wholesale and retail. We learned, that “numberof transactions” and “number of functions used per client”
hugely impact wholesale. While for retail, in addition to these,“share price, asset balance, and revenue from securities firms”
are the most important factors. On the other hand, for SI services, “number of contracts” is the variable affecting sales.

Variation factors of sales expected to be affected by climate-related events
Number oftransactions

Shared online
services(STAR, I-STAR)

SI

Wholesale•C ombination of fixed and usage-based pricing• Fixed:Usage-based=4:6

Retail• Combination of fixed and usage-based pricing(Fixed:Usage-based=6:4)• Transaction oriented standard system

Share price, asset
Number of functionsbalance & brokerage Number of contracts
utilized per customer
firm revenue• NRI develops as per client’s needs with specifications
determined by the client

Risk and Opportunity Analysis
We then conducted a risk / opportunity analysis. We surveyed impacts on our services and potential changes in the external environment in response to climate-related events, and analyzed whether these posed risks or opportunities for NRI. The results are shownin the Figure 2.
Risk and Opportunities for Capital Markets & Wealth Management Solution Business (Figure 2)

92

Opportunity

Risk

Risk /
Opportunity

Can be an opportunity / risk
Related business (sales& expenses)

Climate-related events

Anticipated changes(1)

Introduction and strengtheningof transition policies, such ascarbon pricing (carbon tax),
etc.

Changes in the corporate competitiveness and corporate value affect theasset balances

Shared online services
for retail(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

Shared online services(NRI internal costs)(3)

Market reform (related tosustainable finance), morepressure/demand for anenvironmentally conscious
behavior

Sustainability linked market reforms (e.g. classification, tax incentives, etc.)
and increasing 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 andconditions and increased
pressure and demand forenvironmentally conscious
behavior

The ratio of renewable energy utilization will be introduced under the terms
and conditions of a transaction(5)

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

In response to the introduction of renewable energy percentage to be
utilized in a transaction, procuring renewable energy can partially increase
costs. However, it can be controlled if the renewable energy cost is
reducedShared online services,
SI (NRI internal costs)(6)

Escalating natural disasters

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

Shared online services(7)

Escalating natural disasters

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

Shared online services(NRI internal costs)(8)

Escalating natural disasters
and changing weather patterns

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

Shared online services,
SI (NRI internal costs)

Nomura Research Institute—(No impact)

Shared online services, SIWithin the climate-related events, blue represents “transition risk”
which indicates the economic and social transition due to climatechange, while orange is for “physical risk” indicating the physicalchange caused by climate change.
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 market reforms, such as sustainability bond market classification, sustainability ranking of companies,
and increased pressure/demand to be environmentally-conscious,
will create opportunities for NRI’s securities services with moreindividual investors focusing on sustainable investments.
With regard to “physical risk,” we determined that the risk is highfor society as a whole, including NRI, because the entire macro
economy will come to a halt or stagnate.

[Calculating Financial Impact]
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 below illustration shows the calculation methods used. We predicted the anticipated changes
from climate change events and derived a method for calculating the financial impact.
Method for Calculating Financial Impact for Capital Markets & Wealth Management Solution Business (Figure 3)
Climate-related events

Summary of anticipated changes

Analysis methods (impact and incidence)(1)

Introduction and strengthening of transition policies, suchas carbon pricing (carbontax), etc.

Impact of carbon pricing, etc.
(Share prices)

Impact on share prices is estimated on the basis of the GPIF report, byutilizing the rate of fluctuations and estimating the impact on NRI after
estimating the brokerage firm’s revenue(2)

Introduction of carbon pricing(carbon tax, etc.)

Impact of carbon pricing(Procurement)

As estimated impact of the expected increase in electricity prices in Data
Centers in case of a carbon tax introduction(3)Market reform (related tosustainable finance), morepressure/demand for anenvironmentally conscious
behavior

Impact of increased private investment (Share prices)

The impact on NRI is estimated based on the expected increase in theshare price as a percentage of the market value of sustainable investments by individuals(4)

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

Impact of renewable energy procurement (Procurement)

Assuming that we can retain our clients by introducing renewable energy
in line with the existing targets (i.e., License to operate). The impact isestimated on the anticipated increase in electricity prices

Impact of natural disasters (Shareprices)Estimated based on the GPIF report taking into account the rate offluctuation in physical impacts

Impact of natural disaster (Tradingsuspension)

Estimated based on the impact of a 1-2 day trading suspension

(5)

(6)

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

Escalating natural disasters(7)

Escalating natural disasters

Impact of wide-area disaster
response

Considering the degree of fluctuation in cost based on existing cost data

(8)

Escalating natural disasters
and changing weather
patterns

Impact of offshore development
shutdown (Manpower cost)

Estimated based on a 10% to 20% of offshore production shutdown, andthe cost to substitute that domestically(1) The adoption and strengthening of policies fortransitioning to carbon price (carbon tax, etc.)
were estimated to have an impact on NRI
through the profits of securities firms due tofluctuations in share prices.
(2) Since it is expected that electricity price willrise if a carbon tax is adopted, we are looking
at the impact in terms of cost increase for NRI
due to the increase in electricity prices.
(3) For market reform (sustainable financerelated) and increasing pressure and demandfor environmentally-conscious behavior, we
believe that expanding sustainable investment
to individual investors will become an opportunity for NRI. We used the Fermi estimation
to predict the increase in sustainable investment and estimated the impact on NRI.

(4) C hanges in trading terms and conditions and(5) increased pressure and demand for environmentally-conscious behavior anticipate that
renewable energy will become more prevalentand that use of renewable energy will be
introduced into the trading terms and conditions with clients. Based on the assumptionthat NRI can maintain business with clients byadopting renewable energy as targeted, we
estimate the cost impact of switching to
renewable energy compared to existing
electricity.

(7) T he cost of responding to widespread
damage caused by intensifying natural
disasters in estimated with reference toexisting data.
(8) It is assumed that overseas development will
be suspended due to intensifying natural
disasters and that development will bedomestically substituted. We are looking at
the cost impact of substituting in Japan if
overseas development were to cease operations by 10%–20%.

(6) A ssuming that the market would be suspended due to a natural disaster, we estimated the decrease in sales, etc. that would
occur if trading were to be suspended for one
or two days.

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Mechanisms for Supporting Value Creation
Natural Capital

Financial Impact for Capital Markets & Wealth Management Solution Business (Figure 4)
(%)

Sales

Cost

15

1.5°C Scenario

10

5

0

–5
(1) Impact of(2) Impact ofcarbon pricing, etc. increased private(Share prices)
investment(Share prices)(%)(6) Impact ofnatural disasters(Share prices)(6) Impact ofnatural disasters(Trading
suspension)(3) Impact ofcarbon pricing(Procurement)

Sales(4), (5) Impact of(7) Impact of(9) Impact of offshore
renewable energy wide-area disasterdevelopment
procurement
response
shutdown(Procurement)(Manpower cost)

Cost

10

3°C—4°C Scenario

5

0

–5

–10
(1) Impact of(2) Impact ofcarbon pricing, etc. increased private(Share prices)
investment(Share prices)(6) Impact ofnatural disasters(Share prices)(6) Impact ofnatural disasters(Trading
suspension)

Figure 4 shows the impact on sales and expenses due to anticipated changes (1) through (8) in the Figure 3 by range ofeffects in the 1.5°C and 3°C to 4°C scenarios, respectively.
The blue graph on the left depicts the impact on sales. The
impact of carbon price on share prices is calculated by the
GPIF in the form of value-at-risk, which is the impact of climatechange on share prices. According to this, in the 1.5°C valueat-risk case, opportunity is high and the share price is expected
to rise by about 25%, and NRI’s sales increase rate is estimatedto be high, through securities firms’ profits. The physical impact
from natural disasters is limited. It is estimated that the 1.5°C
scenario and even the 3°C–4°C scenario could result innegative sales of about 3% and 5%, respectively.

(3) Impact ofcarbon pricing(Procurement)(4), (5) Impact of(7) Impact of(9) Impact of
renewable energy wide-area disaster offshore developprocurement
response
ment shutdown(Procurement)(Manpower cost)

The yellow graph on the right depicts the cost-related
impact, and the positive portion represents a cost increase for
NRI. The impact of carbon price and renewable energy procurement is not expected to lead to significant cost increases.
The impact of natural disasters is expected to be greater thanother expenses such as the cost of repairing facilities, etc., in
response to wide-area disasters, and higher labor costs due tothe suspension of overseas development (offshore development) and the substitution of such development in Japan.

*1 TCFD: The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board, whose members include ministries of finance, financial regulatory
agencies, and central bank governors from 25 major nations around the world. TCFD recommends that corporations disclose climate-related financial information, in formats such as
major annual reports, so investors can make suitable investment decisions. TCFD asks that these reports disclose information on four themes about the risks that climate change poses tocorporations, including governance, strategy, and risk management.
*2 ESG Briefing: The NRI Group holds its ESG Briefing so investors, analysts, and members of the media can understand our sustainability management and specific ESG-related initiatives.
Refer to the website (https://www.nri.com/en/sustainability/management/esg/2018)*3 Scenario: We are striving to conduct scenario analyses (analyses on how climate change could affect our business in the future) as recommend by TCFD. Regarding the 2°C or lower
scenario and 1.5°C scenarios, the NRI Group utilizes the Sustainable Development Scenario in the World Energy Outlook 2018 released by the International Energy Agency (IEA) and
Representative Concentration Pathway (RCP) 2.6 (low, stable scenario) from the Intergovernmental Panel on Climate Change (IPCC). In addition, as necessary, we utilize RCP 1.9 and use
IPCC Special Report on the impacts of global warming of 1.5°C (SR1.5) as a supplement. For the 4°C scenario, we use the IPCC’s RCP8.5 (high reference scenario) and IEA Stated
Policies Scenario (STEPS).

94

Nomura Research InstituteExternal Recognition
Participation in Initiatives

May 2017
United Nations Global Compact

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 participation in May 2017.

June 2018
Japan Climate Initiative

July 2018
Task Force on Climate-related
Financial Disclosures

September 2018
Science Based Targets initiative

January 2019
World Business Council for
Sustainable Development(WBCSD)

February 2019
Renewable Electricity 100

May 2020
Business Ambition for 1.5°C

June 2020
Race to Zero

March 2022
GX League Basic Concept

Status of Inclusion at Equities in ESG Stock Indices

NRI is included in the equities used for the main ESG stock indexes.

Dow Jones Sustainability World Index
Included for four consecutive years from 2018
Dow Jones Sustainability Asia Pacific Index
Included for six consecutive years from 2016

NRI has been included in all five ESG stock indices selected by the GPIF fordomestic stocks from the very beginning.

MSCI Japan ESG Select Leaders Index*

MSCI Japan Empowering Women Index*
MSCI ESG Leaders Indexes*
Name of indexes changed from MSCI Global Sustainability Indexes
Included for six consecutive years from 2006

FSTE Blossom Japan Sector Relative Index

FTSE4Good Developed Index
Included for sixteen consecutive years from 2006

FTSE Blossom
Japan Index

S&P/JPX Carbon Efficient Index* THE INCLUSION OF Nomura Research Institute, Ltd IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Nomura Research Institute, Ltd BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVEPROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Integrated Report 202295

04
GovernanceSupporting Healthy, Sustainable Growth, andHigher Medium- to Long-Term Business Value

96

Nomura Research InstituteCONTENTS
98 Talking about Governance
102 NRI’s Corporate Governance
104 Board of Directors and Advisory Committees
106 System of the Board of Directors and the Audit & Supervisory Board
109 Compensation for Members of the Board and Audit & Supervisory Board Members
112 Initiatives for Issues Recognized in Effectiveness Evaluations
114 NRI Executives
116 Internal Controls, Corporate Ethics, and ComplianceIntegrated Report 2022

97

GovernanceTalking about Governance

To Further Boost NRI’s Business Value

Hideaki Omiya

Yasuo Fukami

Outside Director

Chairperson of the Board of Directors

Initiatives for Improving the Atmosphere andEffectiveness of the Board of Directors
Fukami: At NRI, we are working to improve how the Boardof Directors operates based on effectiveness evaluations.
In 2022, we began holding Roundtable Discussions for
Members of the Board and Audit & Supervisory Board
Members for directors and auditors to exchange opinions
outside the Board of Directors. Today I would like to focus
our discussion on efforts to improve the atmosphere andeffectiveness of the Board of Directors itself.

98

Nomura Research InstituteOmiya: It seems to me that time is managed very smoothly
in NRI Board of Directors meetings. While there are somethings that still need to be ironed out, the materials andpresentation methods are concise, which also speeds
up our understanding. Authority is also being delegated,
and the Board meetings seem to be running very well.
I also serve as an outside director at another company,
but they seem to have a more outspoken atmosphere there.
People there often say unpredictable things. Sometimes
it happens where a conversation starts between outside
directors, and someone from inside that company then cuts

into their conversation. Compared to that, it seems like
NRI’s Board of Directors is a little more serious. At the othercompany, there are also opportunities to exchange opinions
in places outside the Board of Directors. That helps to better
understand each person’s character, the points that mattermost to them, and their level of understanding. Although it
also somewhat depends on the character of each company,
I think we could express our opinions more candidly in our
Board if NRI also offered such opportunities. In that sense,
I think this new Roundtable Discussion initiative is very mean­
ingful since it allows us to hold discussions in a different
atmosphere than in the Board of Directors. It has broughtout different opinions than before. I would even advise that
we could be a bit bolder in the way we go about this.
Fukami: Presenters are trained beforehand in the Senior
Management Committee to speak concisely at Board of
Directors meetings. I also do this myself, with an under­
standing of the difference in purposes between the Board of
Directors and the Senior Management Committee. For thematerials and documents as well, we are diligently making
improvements such as presenting more of the background,to facilitate decision-making in the Board of Directors.
The Roundtable Discussion is an initiative that began
only recently, but I think it has become an excellent forum
for discussions. I hope to see it continue into the future.
Omiya: At the same time, to someone from a manufactur­
ing background, the workings of business in the IT industry
seem complicated. For example, in our business withfinance, the way we work at financial institutions is struc­tured and the parts THE STAR handles are complicated, as
are the relationships with the numerous and many different
types of competitor companies. When we get the order forsuch a project, if we can get disclosures of information suchas how broadly it will extend organization-wise and that
it will enable us to expand our scope both upstream anddownstream, I think we can realize certain things from that.
Members of the Board are interested from the vantage pointof what lies beyond the project. NRI’s business is B2B,
so although we understand that the circumstances andrequirements differ from one client to the next, it would begood to discuss how much we want to invest after receiving
disclosures about our past, present, and future relations
with the clients in relation to the project, and about theirsituations. As a Member of the Board, I want to suggest
strategies and tactics with the potential upstream, down­
stream, and organization-wide breadth of the project inmind. Since I cannot give advice beyond the scope of myown knowledge and experience, if the strategic role of the
project is presented I will probably be able to give advice
that can increase effectiveness.

NRI’s business gives the impression of being highly
refined. Personally, I am also handling this role with asense of vigilance as I try to gain deeper insight into
NRI’s business.
Fukami: There are hardly ever any explanations about indi­vidual clients in Board of Directors meetings, but we haveaccount plans for each client which we continuously passdown. I also think it would be great if there could be a little
more explanation about that point as well.
Omiya: I occasionally give requests and comments formaking the Board of Directors more effective, which are
handled very quickly. This makes me feel like we are steadily
heading in the right direction. NRI has the mechanisms andpassion for self-directed improvement, and that mentality isalso ingrained, so I am not particularly worried about the
future.

Considerations for the Next Long-termManagement Vision: Group Vision 2030
Fukami: Since around the summer of 2021, we have been
advancing our considerations for the next long-term man­agement vision, Group Vision 2030 (“V2030”). In order toproceed with these considerations more openly and freely,
we established an opportunity for everyone to express theiropinions in the Roundtable Discussion even as the vision isstill in the considerations phase.
Omiya: For strategies, particularly for something like a­long-term management vision, more opinions come out in
discussions when the incubation stage is still not fully com­plete. As a result, I think everyone gains a deeper under­
standing about which direction everything should proceed,
which makes the plan itself more convincing. It really does
seem to have been very effective that we were able to holddiscussions about the next long-term management vision
this time in the stages before its completion. In addition to
long-term management visions, I think it will also increase
effectiveness if we can discuss various other business chal­lenges early-on in this manner.
It also seems beneficial for long-term management visionconsiderations such as these to be done as a team. Those
who participated in the considerations are the people whowill take over in the future, so establishing camaraderie
between them early on will increase team unity and help
to shape an even stronger management team.

Integrated Report 2022

99

Governance

Global BusinessOmiya: For our global strategy, there are some Members of
the Board who say that we should lower the ambitious
targets set out in the Medium-Term Management Plan.
However, executives including President Konomoto felt thatthese are necessary for NRI and had strong determination
to pursue them no matter what. As a result, that determina­tion is now blossoming. We are finding companies that are
growing, acquiring them, and producing solid results, aren’t
we? The cases that are currently progressing smoothly arehighly commendable.
In 2021, we acquired Core BTS as a springboard forentering North America. Competition in North America isfierce, but just like in Australia we are expecting growth
there as well.
Fukami: Until two years ago, our performance had also
been sluggish in Australia, and we dealt with various strug­
gles. The circumstances there eventually changed andbusiness got off the ground, which is comforting in thiscase. It seems like we made the right moves at the righttime. If things had gone poorly in Australia, we probably
would not be talking about North America.

Omiya: In my opinion, NRI’s strengths are its outstanding
human resources, organizational environment, and culture.
I had heard that NRI has a culture of going beyond organi­zational boundaries to learn from others, such as to sharecase studies of projects throughout the Company. It reallysurprised me to see the attitudes here of proactively sharing
lessons each person has learned without compensation
or reward, and at the same time learning and absorbing
from others. The fact that working as a systems integrator
involves sharing many things beyond segment boundaries isprobably also a factor, but I think these activities are highly
conducive to accumulating knowledge as an organization.
Fukami: NRI has an organization that pushes productivity
improvements and provides development methodologies
and expertise, but on the other hand, the practice of taking
the initiative does seem to be functioning effectively. When
projects are bustling, people can be seen asking for help
from others all over the Company. The culture and atmo­
sphere of the organization can also drastically change whenpeople from different backgrounds in the Company get
involved in projects. It could naturally energize the organiza­
tion, and even create opportunities to acquire new knowl­edge or foster a culture of doing so. You could even saythat the culture of helping each other is functioning brilliantly.

NRI’s Strengths and Challenges
Fukami: From your perspective as an outside director, what
are NRI’s strengths and challenges?

We will continue evolving,to make the Board of Directors
more effective.

100

Nomura Research InstituteOmiya: Another characteristic of NRI seems to be that the
projects last for around one to two years rather than longterm, resulting in frequent opportunities for learning. There isalso an adaptive attitude in which people are open to incor­
porating new ideas that they deem effective from among
those that they hear via the various interactions and social­izing inside the Company. As a result, proficiency levels
seem to increase both as individuals and as an organization
as projects proceed.
With projects bustling the way they are now, that is all themore reason to be concerned about issues like personnel
shortages and employee work conditions. That would likely
be one of the challenges NRI is facing now. To secure
human resources, we are actively hiring both new graduatesand mid-career, but we probably need to think of othermethods as well.
Fukami: As measures to bolster our development
resources, I feel that we need to diversify and raise ability
levels from various standpoints. People would seem to beboth a strength and a challenge.

Sustainability Management

Expectations and Aspirations for NRI

Fukami: NRI advocates sustainability management with theperception that a company is sustainable when it practices
both ESG and Creating Shared Value (CSV) in its activities.
As we work toward our identified materiality, we particularly
focus on the CSV aspects of how much we can increasesocial value and business value.

Fukami: Please share your expectations and aspirations for
NRI from your perspective as an outside director.

Omiya: NRI came about through the merger of a systems
integrator and consulting firm in 1988. After that, we werelisted on the stock exchange in 2001, and now it seems
we have existed for three generations until now. Our first
generation who remember the merger are now reachingretirement age, and I have heard there is a generation
gap between our second generation who joined after themerger, and the third generation who joined after our public
listing. If we only manage our organizations with the same
approach as the first generation, our Company might headin the wrong direction. In order to understand where theproblem is heading, I make it a point to take a firsthandperspective and get an intuitive feel for it myself. From theperspective of ESG as well, I think we also need to keep awatchful eye on the worksites and actively listen to what
employees have to say.
Managers need to respect the mentality of each genera­tion and handle their business appropriately with work-lifebalance in mind.

Omiya: NRI builds and operates a large number of coresystems in a variety of industries and oversees people’scommunity infrastructure just as it does hardware.
Domestically, NRI can also be considered the leading player
in the field of finance. Therefore, now may be the time foreveryone who works at NRI to begin feeling responsibility
toward Japan’s government and economy.
For example, I think social DX which we work on in DX
3.0 is one methodology for satisfying the needs of Japan’s
government and people, as well as people throughout
the world. Considering that NRI is an industry leader, we
probably already have the capability and practical skills tomanage the stakeholders and lead entire industries in apositive direction through projects such as the nationwide“My Number” individual number system.
Working on projects that impact society is an opportunity
to gain a higher perspective than we have now. However,achieving high profitability at the same time might also feellike somewhat of a dilemma. Ultimately, I think it boils down
to the concept of what a company actually is.
I am very much looking forward to seeing NRI operate
its business with enthusiasm for playing a leadership rolein Japan’s economy, in good balance with profitability.

Fukami: We have just recently deployed V2030 at theworksites in its framework stage and asked younger
employees for their opinions about it. Our younger employ­
ees who comprise the third generation do not stop at cri­tique alone. They also present suggestions about what theywould do, which I find to be quite encouraging.
Omiya: NRI was one of the first to advocate policies forsustainability management and value co-creation, including
DX 3.0. I think value co-creation is in the process of being
ingrained into each individual employee, but it seems manyare still not connecting it to their own work. However, weneed to advocate sustainability management as a manage­
ment policy. It is unmistakably important. If we show our­selves taking that position in society, it will also help us
acquire more talented human resources.

I look forward to seeing NRI
operate its business withenthusiasm for playing a leadershiprole in Japan’s economy.

Integrated Report 2022

101

Governance

NRI’s Corporate Governance
NRI works to enhance corporate governance in accordance with the basic approach outlined below, based on the recognition that corporate governance consists of mechanisms for transparent, fair, timely, and accurate decision-making
based on the perspective of stakeholders, including society, customers, employees, business partners, andshareholders.
NRI have made the NRI Corporate Governance Guidelines public to outline our basic approach and action policy
regarding corporate governance.
NRI Corporate Governance Guidelines
https://www.nri.com/en/company/governance#guidelines

The Basic Approach to Corporate Governance(1) Cooperation with stakeholders

NRI respects the interests of stakeholders and cooperates with them in an appropriate manner. In particular, with regard to share­
holders, NRI takes the proper measures so that rights are substantially secured, in addition to ensuring substantial equality.
(2) Information disclosure and communication

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.
(3) Corporate governance system

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.
Main corporate governance efforts since listing

102

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

2003 ormulated the NRI Group’s Ethical Code (revised to the NRI Group’s Code of Business Principles on 2010) and the NRI GroupF
Employees’ Code of Business Conduct

2005

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

2006

Reduced the number of members of the Board to 15 or less2008

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

2010Appointed non-executive director to chair the Board of Directors to separate supervisory and execution functions

2012

 ewly established the Integrated Risk Management Supervisory Department to appropriately manage any risk that may arise in the courseNof business execution

2015I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 InstituteCorporate Governance Structure

For the Board of Directors and the Audit & Supervisory Board, see P.108–109
For the Internal Controls, Corporate Ethics, and Compliance, see P.116–117(As of July 1, 2022)

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

Appointment / Removal of Board Members

Appointment / Removal of
Accounting Auditors

ReportNomination Committee

Audit & Supervisory Board

Board of Directors (Members of the Board)

Compensation Committee

Executive

Audits Department

Non-executive**

Accounting Auditors(Audit & Supervisory Board Members)

*

*

*

*

Directors and Audit & Supervisory Board
Members
Outside Directors and Outside Audit &Supervisory Board Members* Independent Directors and Independent Audit &Supervisory Board Members

Audit

Selection / Supervision

President

Accounting Audit

Internal Audit Department

Senior Management Committee
Risk Management Committee
Compliance Committee

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

DX Business Promotion Committee

Human Resources Development Committee
Disclosure Committee
Business Development Committee
Crisis Management Committee

Headquarters
Risk Management Supervisory
Department

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

Advise,Support,ManageBusiness Divisions
Management
Department within
Each Division

System Development Committee

Divisions /Departments
Advise,Support,MonitorSubsidiaries

Roles and Activities of Committees
Name of the organization

Objective and authority

Head of the organization

Board of Directors

Conduct the fundamental decision-making that is the basis for the Company’s business execution andoversee the execution of duties by Members of the Board.

Vice Chairman, Member of the Board
Yasuo Fukami

Audit & Supervisory Board

Discuss and decide auditing policies and other important matters related to auditing and formulate andexpress audit opinions.

Audit & Supervisory Board Member
Takuhito Sakata

Nomination Committee

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.

Vice Chairman, Member of the Board
Yasuo Fukami

Compensation Committee

The majority of the members shall be Independent Outside Directors. The Committee deliberates on thesystem and standards of executive compensation from the standpoint of fairness and transparency.

Vice Chairman, Member of the Board
Yasuo Fukami

Senior Management
Committee

The Committee meets in principle to deliberate on important issues involving corporate management in orderto achieve consistent business execution and decision-making.

Chairman and President & CEO
Representative Director
Member of the Board
Shingo Konomoto

Integrated Risk Management
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.

Senior Executive Managing Director
Representative Director
Member of the Board
Hidenori Anzai

Compliance Committee

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 ofviolation reoccurrences, based on instructions given by the President.

Senior Executive Managing Director
Representative Director
Member of the Board
Hidenori Anzai

DX Business Promotion
Committee

Based on the instructions given by the President, the Committee deliberates on important issues concerning
promotion of the DX business.

Senior Executive Managing Director
Hiroshi Masutani

Human Resources
Development Committee

The Committee deliberates on important issues concerning ability development and training of employees,
based on instructions given by the President.

Senior Executive Managing Director
Representative Director
Member of the Board
Hidenori Anzai

Business 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 givenby the President.

Senior Corporate Managing Director
Yoshihiko Sunaga

Systems Development
Committee

The Committee deliberates on important issues concerning proposals and quotations to clients, as well as on
their development and release of IT solution-related systems, based on instructions given by the President.

Senior Corporate Managing Director
Susumu Nishimoto

Disclosure Committee

The Committee deliberates on important issues concerning the disclosure of Annual Securities Report andother documents, based on instructions given by the President.

Senior Corporate Managing Director
Yoshihiko Sunaga

Crisis Management
Committee

Based on instructions given by the President, the Committee will promptly develop and support systems at
the time of a crisis, including natural disasters, infectious diseases, system failure, and information security
emergencies.

Senior Executive Managing Director
Representative Director
Member of the Board
Hidenori Anzai

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.

Senior Corporate Managing Director
Yoshihiko Sunaga
Integrated Report 2022

103

Governance

Board of Directors and Advisory Committees
NRI has delegated considerable authority and responsibility for business execution to Senior Managing Directors and other
Directors. The Board of Directors is exclusively responsible for fundamental decision-making that is the basis for the Company’sbusiness 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.
Main Contents Deliberated on by the Board of Director (July 2021–June 2022)
Main Contents

Management / businessstrategy
Executive appointment mat­ters (including remuneration)
Governance and sustainability
Policy on reporting andfinance
Risk management and internal
controls
Audit & Supervisory Board
Members, internal auditing
reportBusiness execution report
Other

Next Long-term Management Vision
Client proposal projects
Status of software investment/development
Business plan (budget formulation)
Domestic and foreign acquisitions and investment
Officer appointment matters
Matters related to directors’ compensations
Reports from each Committee
Human resources strategy (systems / human resources diversity)
Policy for revising the Corporate Governance CodeEvaluation of efficacy of Board of Directors
Report on initiatives by Sustainability Activities Committee
Report on initiatives by Value Co-Creation Committee
Status of annual, quarterly, and monthly reporting
Policy on surplus and dividends
Status of funds and finances (financing, capital policy)
Annual Securities Report
Risk management status
Group governance policy (Japan and overseas)
Audit plan by Audit & Supervisory Board Members
Report by Internal Audit Department (organization under direct supervision of the president)
Quarterly report on business execution status
Main agenda items of Senior Management Committee meetings (business execution)
IR status
Selection of market category

Annual Schedule of the Board of Directors
2021
July–September

October–December

The Board of Directors

Management / business strategy
Executive appointment matters(including remuneration)
Governance and sustainability

Policy on reporting and financeRisk management andinternal controls
Audit & Supervisory Board
Members, internal auditing report
Other(Independent executive committee)

104

Nomura Research Institute2 meetings

1 meetingStatus of Advisory Committees
NRI has established a Nomination Committee and a Compensation Committee in order to ensure the independence and objectivity of
the functions of the Board of Directors, as well as the ability of the Board to explain to shareholders. The majority of each committee
are independent directors.
Nomination Committee

Positioning

Meetings

Compensation Committee he Nomination Committee is composed of a majority ofT
Independent Directors. It was established to ensure theindependence, objectivity, and explanatory power of thefunctions of the Board of Directors regarding the appoint­
ment of officers such as Members of the Board, Audit &Supervisory Board Members, the President and other
Senior Managing Directors, and Managing Directors.
3 meetings
Deliberation on the appointment of Members of the Board,candidates for Audit & Supervisory Board Members, thePresident and other Senior Managing Directors, andManaging Directors and other executives
Deliberation on succession plan for CEO
Deliberation on the composition of the Board of Directors

Main contents

 he Compensation Committee consists of a majority ofT
Independent Directors, and was established to ensure theindependence, objectivity, and explanatory power of thefunctions of the Board of Directors regarding Directors’compensation.

 meetings3Deliberations on basic compensation, bonuses, and stockbased compensation for Members of the Board, Audit &Supervisory Board Members, Senior Managing Directors,
and Managing Directors and other executives
Deliberation on the compensation system for Members of
the Board, Audit & Supervisory Board Members, Senior
Managing Directors, and Managing Directors and otherexecutives (the Directors Compensations System), and on
levels of compensation
Deliberation on revision of policy for determining compen­
sation, etc., and submission of proposals to the General
Meeting of Shareholders in conjunction with review of the
Directors’ Compensations System

2022
January–March

April–June

2 meetings

1 meetingIntegrated Report 2022

105

Governance

System of the Board of Directors and the Audit & Supervisory Board
NRI has established a structure to further enhance corporate governance while effectively using the functions of Audit &Supervisory Board Members and the Audit & Supervisory Board as a company with an Audit & Supervisory Board.

Structure of 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 inand the Company’s businesses, corporate management, risk management, corporate finance, and overseas businesses, as wellas gender, internationality, professional experience, and accumulated knowledge in light of the medium- to long-term manage­
ment strategies.

Structure of the Board of Directors and the Audit & Supervisory Board
Gender= Male= Female

Expectations for Leveraging Knowledge Related to Strategy

Executive /Outside /Independent

Terms of office

Executive

7 years

Corporate Management

Non-executive

3 years

Business / Corporate Affairs/ Quality

Non-executive

New election

Finance / M&A

Executive

1 yearBusiness / Corporate Affairs/ Quality

Executive

1 yearBusiness

Member of the Board
Senior Executive Managing
Director

Executive

New election

Business

Hideaki Omiya

Non-executive
OutsideIndependent

4 years

Corporate Management

Non-executive
OutsideIndependent

2 years

ESG / SDGs / Human
Resources Diversity

Non-executive
OutsideIndependent

1 yearCorporate Management—

2 years

Governance and Internal
Control / Business—3 years

Governance and Internal
Control / BusinessOutsideIndependent

1 yearCorporate Management

OutsideIndependent

New election

Governance and Internal
Control / Corporate
Accounting

OutsideIndependent

New election

Governance and Internal
ControlName & Position

Innovation

Global

HR Management

Specialized Fields

Shingo Konomoto
Chairman and President & CEO
Representative Director
Member of the Board

Yasuo Fukami
Vice Chairman,
Member of the Board

Yo Akatsuka
Vice Chairman,
Member of the Board

Hidenori Anzai
Representative Director
Member of the Board
Senior Executive Managing
Director

Ken Ebato
Representative Director
Member of the Board
Senior Executive Managing
Director

Shuji Tateno

Member of the Board

Shinoi Sakata
Member of the Board

Tetsuji Ohashi
Member of the Board

Takuhito Sakata
Audit & Supervisory Board
Member (full-time)

Motoya Nishimura
Audit & Supervisory Board
Member (full-time)

Kenkichi Kosakai
Audit & Supervisory Board
MemberNaruhito Minami
Audit & Supervisory Board
MemberYasuko Takazawa
Audit & Supervisory Board
Member106

Nomura Research InstituteStructure of the Audit & Supervisory Board
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 Audits
Department has been established to support the work of the Audit & Supervisory Board Members.
* After assuming the post on June 18, 2021
Experience and Qualifications in Specialized Fields
Corporate
Management

Business /Corporate
Operations

Qualifications

CEO

AttendanceReason for Appointment

Board of Directors Attended
14 of 14 Meetings

He has been responsible for the management of the NRI Group since 2016 as President & CEO, and possesses abundant experience and achievements related to NRI’s management. Furthermore, he formulated and is promoting the Long-term Management Vision “Vision2022” and theMedium-Term Management Plan for achievement of the Vision. NRI has appointed him with the expectation that the experience and knowledge
nurtured through his career can be utilized in the management of NRI.
In addition to experience in global business in Asia and Europe, he possesses a broad range of experience and achievements in the execution ofbusiness in the financial IT solutions and industrial IT solutions business areas as well as in corporate administration. Currently, from the positionof a non-executive director and as chair of the Board of Directors, he works to properly operate and revitalize the Board of Directors. Furthermore,as chair of the Nomination Committee and Compensation Committee, he works to formulate and operate a plan for successors, and to ensure
objectivity and fairness in nomination of directors and determination of compensation. NRI has appointed him with the expectation that theexperience and knowledge nurtured through his career can be utilized in the supervision of the management of NRI.
He has held various positions such as Senior Managing Director of Nomura Holdings, Inc. and Senior Executive Managing Director of Nomura
Securities Co., Ltd. He possesses many years of experience in the securities business, one of NRI’s major business areas. He also possesses
abundant experience and achievements in global business. For example, he oversaw the management of Nomura Holdings America, Inc., anoverseas subsidiary of the NRI Group. NRI has appointed him with the expectation that the experience and knowledge nurtured through his career
can be utilized in the supervision of the management of NRI.

IT Solutions /Corporate
Affairs

Board of Directors Attended
14 of 14 Meetings

Director of
securities
company—

IT Solutions /Corporate
Affairs

Board of Directors Attended
11 of 11 Meetings*

He possesses a broad range of experience and achievements in the execution of business in the financial IT solutions, industrial IT solutions, andIT infrastructure solutions business areas as well as in corporate administration. NRI has appointed him with the expectation that the experienceand knowledge nurtured through his career can be utilized in the management of NRI.

IT Solutions

Board of Directors Attended
11 of 11 Meetings*

NRI has appointed him with the expectation that the experience and knowledge nurtured through his career can be utilized in the managementof NRI.

IT Solutions—

Listed company
CEO

Board of Directors Attended
13 of 14 Meetings

Listed company
executive

Board of Directors Attended
14 of 14 Meetings

Listed company
CEO

Board of Directors Attended
11 of 11 Meetings*
Audit and Supervisory
Committee Attended
17 of 17 Meetings
Board of Directors Attended
14 of 14 Meetings
Audit and Supervisory
Committee Attended
17 of 17 Meetings
Board of Directors Attended
14 of 14 Meetings
Audit and Supervisory
Committee Attended
13 of 13 Meetings*
Board of Directors Attended
11 of 11 Meetings*

IT Solutions

Consulting / IT
Solutions
Listed company
vice president /CFO

Listed company
executive

He possesses a broad range of experience and achievements in execution of business in the consulting, industrial IT solutions, and IT infrastructure
solutions business areas. He also contributes to the promotion of global strategies centered on the industrial IT solutions business area, such as
overseas M&A. NRI has appointed him with the expectation that the experience and knowledge nurtured through his career can be utilized in the
management of NRI.
For many years, he has been involved in the management of Mitsubishi Heavy Industries, Ltd., and has worked for the growth of the NRI Groupand related industries. Utilizing the abundant experience and high level of insight cultivated through his career, he has contributed to enhancing
the Company’s management supervision function; for example, he has expressed a wide range of opinions regarding overall management at theCompany’s Board of Directors, Nomination Committee, and Compensation Committee. NRI requests his election so that he can continue to utilize
his abundant experience and outstanding insight to supervise management of NRI from an objective standpoint in the Board of Directors, Nomination
Committee, and Compensation Committee.
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. Utilizing her abundant experience and excellent
understanding gained throughout his career, she has contributed to enhancing the Company’s management monitoring function, such as deepening
deliberation on securing sustainability, ensuring diversity, and developing human resources at the Board of Directors, Nomination Committee, andCompensation Committee of the Company. NRI requests her election so that she can continue to utilize the abundant experience and excellent
understanding gained throughout her career to supervise management of the Company from an objective standpoint in the Board of Directors,
Nomination Committee, and Compensation Committee.
For many years, he has been involved in the management of Komatsu Ltd. and has promoted growth through innovation at Komatsu Ltd.; forexample, such as promoting the digitization of construction sites. Utilizing his abundant experience and excellent understanding gained throughout
his career, he has contributed to enhancing the Company’s management monitoring function, such as expressing a wide range of opinions on overallmanagement at the Company’s Board of Directors, Nomination Committee, and Compensation Committee. NRI requests his election so that he cancontinue to utilize his abundant experience and outstanding insight to supervise management of NRI from an objective standpoint.
He possesses a broad range of experience and achievements in the execution of business in the areas of industrial IT solutions and IT platform
services, as well as the human resources development function of NRI group. NRI has appointed him with the expectation that the experience andknowledge nurtured through his career can be utilized in the audit of the execution of duties by NRI directors.
He possesses a wide range of experience in the business execution and achievements in the areas of consulting and financial IT solutions, and in
corporate departments. 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.
For many years, he has been involved in the management of Mitsubishi Chemical Holdings Corporation and other Mitsubishi Chemical Holdings
Corporation group companies. 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 experience and 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—

He serves as Director and Managing Partner of an audit firm, and possesses experience in the management of an audit firm and long-standing
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 executionof business by NRI’s Directors from an objective standpoint.

Lawyer—

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 his abundant experience and excellent understanding concerning corporate governance and risk management, which hehas gained through his career, in the auditing of the execution of business by NRI’s Directors from an objective standpoint.

Concept of Skill Categories

P.108

Integrated Report 2022

107

GovernanceConcept of Skill Categories
 ased on our management strategy, expected items related to the specified strategy are described as “expectations ofBdemonstrating knowledge on a strategy.”We have categorized and described the “specialized field” and “experience and qualifications related to specialized fields”
that are necessary to promote the strategy.
Content of Each Skill Category
Expectations for Leveraging Knowledge
Related to Strategy[Innovation] (DX Strategy)[Global] (Global Strategy)[Human Resource Management] (Human
Resource / Resource Strategy)* Set items based on Medium-Term Management Plan
* Expectations for leveraging multi-faceted knowledge on
business promotion, risk policy, etc., from the perspectiveof specialized fields

Specialized Fields[Corporate Management]
Expertise in business, corporate affairs,
quality, governance, and internal control
that goes beyond specific fields[Business]
Leadership of business divisions[Corporate Affairs]
Business management, governance,
and internal 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

Experience and Qualifications inSpecialized Fields[Corporate Management]
Experience as CEO or vice president of alisted company[Business / Corporate Operations]
Experience as a general manager of abusiness division, supervisor of a corporate
division, or as an officer of another company[Qualifications]
Possession of advanced public
qualifications

Concept on “Expectation of Demonstrating Strategic Knowledge”
Professionals with experience in corporate management are expected to demonstrate knowledge of all strategies
For innovation and globalization, a black 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
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

Demonstrating Skills of Outside Directors
Outside Directors demonstrate their skills in various aspects of NRI.
In FY March 2022, Outside Director Shinoi Sakata will participate in the Female Leader
Training Program, an annual training for specially-selected female employees as an initiative
to promote women’s participation and advancement in the workplace as part of diversity andinclusion. At the program, Sakata used her personal knowledge to conduct a dialogue withtrainees.
Outside Directors demonstrate their skills not only in business, but also in strengthening
the framework that supports value co-creation by NRI.

108

Nomura Research InstituteCompensation for Members of the Board andAudit & Supervisory Board Members
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 compensations so as to create a compensation system that is
highly linked to performance.
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 the systemand standards of executive compensation from the standpoint of fairness and transparency. Using the results of the commit­
tee’s inquiries, the Board of Directors sets policies for the determination of compensation for Members of the Board and othermatters.
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.
The maximum compensation total

Total Compensation ¥2,000 million[Performance-based compensation][Fixed compensation]
Basic compensation

Basic compensation consists offixed pay (basic pay and posi­tion pay), which is compensa­
tion based on each Memberof the Board’s post.

[Short-term performancebased 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.

[Medium- to long-term performance-based compensation]
Stock-based compensation(restricted stock-based compensation)¥800 million*
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 of value withshareholders through share ownership.
The number of shares allocated is determined in accordance withexecutive 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.
Stock-based compensation as
long-term incentives

Stock-based compensation as
medium-term incentives¥240 million*¥560 million*

It is positioned as a long-term
incentive aimed at promotionof the sharing of value withshareholders through shareownership and sustainableimprovements in the Company’s
corporate value. The transfer
restriction term is from the dayof allotment to the day of retire­
ment as an officer, etc., of NRIor its subsidiary.

It 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 provided for granting restricted stock to Eligible Members.

Integrated Report 2022

109

GovernanceEmphasis is placed on bonuses and stock-based compensations so as to create a compensation system that is highly linked
to performance. The approximate ratio of constituent elements of the compensations of directors, etc., in FY March 2022 is asfollows. If basic compensation is equalized to “1,” the bonus is “0.9” and stock-based compensation is “1.6.” If fixed compen­
sation is “1,” performance-based compensation is “2.5.”
Compensation Ratio for Director Compensation (FY March 2022)[Performance-based compensation][Fixed compensation]
Basic compensation

1

2.5[Short-term
performance-based
compensation]
Bonuses

0.9[Medium- to long-term performance-based compensation]
Stock-based compensation

1.6(Note) 1. Calculations are based on the Board of Directors average for FY March 2022 (excluding Outside Directors and Directors who retired or assumed their post during the period).
2. S
 tock-based compensations herein are the total amount of monetary compensation receivables that would be contributed in kind in exchange for the shares with transfer restrictions.

Clawback System, etc.
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 past three years, we have implemented a system that makes it possible to request the return of all ora 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.

Resolution at General Meeting of Shareholders Concerning Compensation for Members of the Board, Etc.
At the 57th Ordinary General Meeting of Shareholders held on June 17, 2022, we received approval to revise the amount ofcompensation, etc. for Members of the Board, and set the amount of compensation, etc., for NRI’s Members of the Board to¥2 billion or less per year (of which ¥300 million per year is for Outside Directors). For the amount of compensation, etc., forMembers of the Board related to the stock-based compensation, within the annual amount of ¥2 billion for that year, we
received approval for within ¥800 million for the total annual amount of monetary compensation claims provided for granting
restricted stock to eligible Members of the Board (within ¥240 million for stock-based compensation as long-term incentives
and within an annual amount of ¥560 million for stock-based compensation as medium-term incentives).

110

Nomura Research InstituteCompensation for Members of the Audit & Supervisory Board Members
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.
The Maximum Compensation Total 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, responsibilities.

Bonuses

Bonuses are only paid to the full-time Audit & Supervisory Board Members, and it is based on our businessperformance during the current fiscal year.

(Note) In regard to Audit & Supervisory Board Members, stock-based compensation is not issued.

Executive Compensation Amounts
Executive compensation for FY March 2022 is as follows.
Compensation by type (millions of yen)

Category

Total
compensation(millions of
yen)

Fixed
compensation

Performance-based compensation

Basic
compensation

Bonuses

Restricted
stock-based
compensation

Total

Other

No. of eligible
individuals(persons)

Members of the Board

738

264

205

265

471

2

12

(Of which Outside Member of theBoard)

43

43

—

—

—

—

4

Audit & Supervisory Board Member

181

111

51

16

68

1

6

(Of which Outside Audit &Supervisory Board Member)

70

53

17

—

17

0

4

(Note) 1. T he above includes three Members of the Board, including one Outside Members of the Board, and one Audit & Supervisory Board Member, including one Outside Audit &Supervisory Board Member, who retired at the conclusion of the 56th Ordinary General Meeting of Shareholders held on June 18, 2021.
2. F
 or restricted stock-based compensations, 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 2022 is shown. Because the amounts of the “restricted stock-based compensations” is equalized in accordance withrespective terms of service, each ratio of the constituent elements of the above compensations differ from the ratio of constituent elements of Director compensations, etc., shownon Compensation Ratio for Director Compensation.
3. “Other” refers to contributions to the defined contribution pension plan and insurance premiums for casualty insurance

Integrated Report 2022

111

GovernanceInitiatives for Issues Recognized in Effectiveness Evaluations
Effectiveness Evaluation of the Board of Directors

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 interviewsin order to understand more specific issues.

(1) Preparation forevaluation
 eview of evaluationRmethodQuestionnaire design(2) Evaluation(3) Evaluation andanalysis uestionnaire responseQExchange of opinions /interviewsIdentification of issues
Review of response
measures(4) Reporting anddisclosure eport by Board ofR
Directors
Disclosure(5) Reform of operations

Review of Evaluation Method for FY March 2022
Prior to evaluation, in step “(1) Preparation for evaluation,” we conducted interviews with Outside Directors andOutside Audit & Supervisory Board Members in March 2022. As a result of considering the survey items and struc­ture based on opinions received during those interviews and responses to the self-evaluation survey conducted in
FY March 2021, we decided to expand the free entry field of the questionnaire in order to grasp a wider range ofissues. Based on the results of questionnaire responses, we held discussions on effectiveness at the Independent
Executives Meeting and exchanged in-depth opinions on the opinions expressed in the questionnaire with each
Independent Executive. Based on these results, we held evaluation and analysis at the Board of Directors, and­discussed issues from each evaluation perspective.

Initiatives for Issues Recognized in Effectiveness Evaluations

Initiatives for Issues Recognized in the FY March 2021
We implemented the following initiatives in response to various issues identified in the effectiveness evaluation for
FY March 2021.
(1) Further improve the quality of deliberation by ensuring opportunities and devising methods to provide information to Outside
Executives
We started sharing materials and minutes from Senior Management Committee meetings in order to provide information related todeliberation by the executives.
(2) Promote ongoing discussion on the composition and diversity of the Board of Directors
One woman was appointed to replace one of the Audit & Supervisory Board Members whose term of office will expire in June 2022.
(3) Hold further discussions on DX and global business strategies based on the Medium-Term Management plan
We repeatedly deliberated on regional strategies and specific projects in North America and Australia as relates to projects andstatus of progress for globalization aimed at accelerating the expansion of business domains.
(4) Enhance discussions on the ideal form of Group governanceWe devised a policy to strategically position Group companies, to classify those companies into types based on business charac­
teristics and risks, and to pursue a balance among business promotion, governance, and internal control. We also began creating
guidelines for implementing governance.
(5) Enhance discussions on future risks associated with business environment changes and strategy promotion
During deliberations on the next Long-Term Management Vision, we discussed the risks surrounding NRI.

112

Nomura Research InstituteOverview of Board of Directors Effectiveness Evaluation for FY March 2022

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.

a. Composition and Status of Operation of the Board of Directors• A well-balanced composition ratio of executive directors, non-executive directors, Independent Directors and the diversity of theirexperience and areas of expertise are being maintained, and a structure to ensure appropriate decision-making and oversight isin place. Based on future business conditions and management strategies, we recognized the need to continue discussing thecomposition and diversity of the Board of Directors.
• Active explanation of opinions and presentation of recommendations from Outside Executives and other constructive discussions
and exchanges of views are carried out by the Board of Directors as a whole. We expect that the quality of discussions will befurther improved by additionally clarifying the points of discussion in the materials and devising methods of providing information
to Outside Executives.
b. Support for Directors• Opportunities are provided for Outside Executives to obtain necessary information by receiving explanations from executives asappropriate, such as by participating in the Group’s management strategy meetings.
• In order to further revitalize discussions at meetings of the Board of Directors, it is desirable to provide a forum for free and open
exchange of opinions among Outside Executives and between Outside Executives and Senior Management Directors.
c. Management Strategy• Discussions on DX strategy and global strategy, which are the priority themes of the Medium-Term Management Plan, andexchanges of views toward the formulation of the next Vision and Medium-Term Management Plan are being implemented­continuously and appropriately.
• Strengthening of human resource management and resource allocation are foundations for growth, and it is desirable to holdfurther discussions on these themes.
d. Internal Control / Risk Management / Group governance• Active discussions and exchanges of views are being held on Group governance, and information on the current status andissues of Company-wide initiatives were shared appropriately. In conjunction with the increase in the number of Group compa­
nies, in addition to clarifying the basic rules of governance, we recognized the importance of continuing discussions towardenhancing governance while confirming the operation status of implementation guidelines listing basic rules and the promotion
status of initiatives at overseas Group companies.
• In regard to internal control and risk management, appropriate reports are being made and overall they are functioning effectively.
It is desirable to implement further enhancements such as meticulous inspections for the maintenance status of Group
companies.
• As geopolitical risks heighten, it is desirable to have more extensive discussions on countermeasures.
e. Committees• In the Nomination Committee and the Compensation Committee, discussions and exchanges of views related to the President &CEO succession plan, the director candidate selection and development process, and the method of determining directors’compensation, etc., are being conducted appropriately, and while being arbitrarily appointed committees, they are functioning
effectively.
Based on this analysis and evaluation, NRI will continue to work to improve the effectiveness of the Board of Directors.

Integrated Report 2022

113

Governance

NRI Executives

New election

Executive

Non-executive

OutsideIndependent

Members of the Board
Non-executive

Executive

Yasuo Fukami

Shingo Konomoto

Date of birth: August 12, 1960
Vice Chairman, Member of the Board
Chairperson of the Board of Directors

Date of birth: February 11, 1960
Chairman and President & CEO
Representative Director
Member of the BoardApr. 1983
Apr. 2011

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)

New election

Apr. 2016
Apr. 2017
Apr. 2019
Jun. 2019
Apr. 2021

Apr. 2020
Mar. 2022
Apr. 2022
Jun. 2022

Executive

Hidenori Anzai

Date of birth: July 14, 1965
Vice Chairman, Member of the BoardApr. 2016

Joined the Company
Senior Managing Director
Deputy Division Manager of Distribution & Communication Solution Division
Senior Corporate Managing Director
Head of Distribution, Communication & Industrial Solutions
Division Manager of Distribution & Communication Solution Division
Senior Corporate Managing Director
Head of Corporate Administration
Senior Executive Managing Director
Head of Corporate Headquarters
Representative Director, Member of the Board, Senior Executive Managing Director
Head of Corporate Headquarters
Vice Chairman, Member of the Board (present)
Chairperson of the Board of Directors (present)

Non-executive

Yo Akatsuka
Apr. 1990
Apr. 2014(112,218 shares)(240,306 shares)(—)

Joined The Nomura Securities Co., Ltd. (currently, Nomura Holdings, Inc.)
Senior Managing Director of Nomura Holdings, Inc.
Senior Managing Director of Nomura Securities Co., Ltd.
Senior Managing Director of Nomura Holdings, Inc.
Senior Corporate Managing Director of Nomura Securities Co., Ltd.
Senior Managing Director of Nomura Securities Co., Ltd.
CEO of Nomura Holding America Inc.
Executive Vice President of Nomura Securities Co., Ltd.
Advisor of Nomura Securities Co., Ltd.
Vice Chairman, Member of the Board of the Company (present)

Date of birth: November 9, 1964
Representative Director
Member of the Board
Senior Executive Managing Director
Supervising of Corporate Headquarters
Apr. 1989
Apr. 2014
Apr. 2017
Apr. 2019
Apr. 2021
Jun. 2021

Executive

Executive

Shuji Tateno

Date of birth: October 28, 1963
Representative Director
Member of the Board
Senior Executive Managing Director
Supervising of Consulting, Supervising of Financial IT Solutions, Supervising of
IT Platform Services, Head of Capital Markets & Wealth Management Solutions,
Head of Asset Management Solutions(145,189 shares)

Date of birth: May 2, 1964
Member of the Board
Senior Executive Managing Director
Supervising of Industrial IT Solutions / Supervising of Global Headquarters(129,543 shares)

Apr. 1987
Apr. 2015

Apr. 2016

Apr. 2019
Apr. 2021
Jun. 2021
Apr. 2022

Joined the Company
Senior Managing Director
Deputy Division Manager of Capital Markets & Wealth Management Solutions Division
Senior Managing Director
Division Manager of Capital Markets & Wealth Management Solutions Division
Senior Corporate Managing Director
Division Manager of Capital Markets & Wealth Management Solutions Division
Senior Executive Managing Director
Head of Financial IT Solutions
Division Manager of Capital Markets & Wealth Management Solutions Division
Member of the Board, Senior Executive Managing Director
Head of Financial IT Solutions
Division Manager of Capital Markets & Wealth Management Solutions Division
Representative Director, Member of the Board, Senior Executive Managing Director
Supervising of Consulting
Supervising of Financial IT Solutions
Supervising of IT Platform Services
Head of Capital Markets & wealth Management Solutions
Head of Asset Management Solutions (present)

Non-executive

Outside(3,889 shares)Jun. 1969
Jun. 2002
Jun. 2005

Joined Mitsubishi Heavy Industries, Ltd.
Member of the Board of Mitsubishi Heavy Industries, Ltd.
Member of the Board (Representative Director),
Executive Vice President of Mitsubishi Heavy Industries, Ltd.
Apr. 2008 Member of the Board (Representative Director),
President and CEO of Mitsubishi Heavy Industries, Ltd.
Apr. 2013 Chairman of the Board (Representative Director) of Mitsubishi Heavy Industries, Ltd.
Jun. 2014 Chairman of the Board of Mitsubishi Heavy Industries, Ltd.
Jun. 2018 Member of the Board of the Company (present)
Apr. 2019 Member of the Board, Senior Executive Advisor of Mitsubishi Heavy Industries, Ltd.
Jun. 2019 Senior Executive Advisor of Mitsubishi Heavy Industries, Ltd. (present)<Important concurrent positions>
Senior Executive Advisor of Mitsubishi Heavy Industries, Ltd.
Outside Director of SEIKO EPSON CORPORATION

OutsideIndependent

Tetsuji Ohashi
Date of birth: March 23, 1954
Member of the Board (Note 1)(—)
Apr. 1977
Jan. 2004
Apr. 2007
Jun. 2009
Apr. 2012
Apr. 2013
Apr. 2019
Jun. 2021

Joined the Company
Senior Managing Director
Deputy Division Manager of IT Platform Services Division
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

OutsideIndependent

Shinoi Sakata

Date of birth: July 25, 1946
Member of the Board (Note 1)

Non-executive

Apr. 1987
Apr. 2014

Independent

Hideaki Omiya

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 of Komatsu Ltd.
<Important concurrent positions>
Chairperson of the Board of Komatsu Ltd.
Outside Director of Yamaha Motor Co., Ltd.
Outside Director of Asahi Group Holdings, Ltd.

Nomura Research Institute

New election

Ken Ebato

Apr. 2018

114(102,924 shares)

Joined the Company
Senior Managing Director
Deputy Division Manager of Distribution & Communication Solution Division
Senior Managing Director
Division Manager of IT Platform Services Division
Deputy Division Manager of Systems Development Innovation Division
Senior Corporate Managing Director
Supervising of Corporate Administration
Senior Executive Managing Director
Supervising of Corporate Headquarters
Representative Director, Member of the Board, Senior Executive Managing Director
Supervising of Corporate Headquarters (present)

Date of birth: March 31, 1957
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)(432 shares)

Audit & Supervisory Board Member

Takuhito Sakata

Motoya Nishimura

Date of birth: November 20, 1961
Audit & Supervisory Board Member (full-time)
Apr. 1984
Apr. 2010
Apr. 2011

Apr. 2017
Apr. 2020
Jun. 2020

Date of birth: July 23, 1962
Audit & Supervisory Board Member (full-time)

(150,791 shares)

Joined the Company
Senior Managing Director
Deputy Division Manager of Distribution & Communication Systems Division
Senior Managing Director
Deputy Division Manager of Services & Industrial Solution Division I
General Manager of Kansai Regional Headquarters
General Manager of Chubu Regional Headquarters
Senior Corporate Managing Director
Division Manager of Data Center Service Division
Deputy Division Manager of Cloud Computing Service DivisionCounselor of the Company
Audit & Supervisory Board Member (present)

Outside(70,546 shares)

Apr. 1987 Joined the Company
Apr. 2015 Managing Director, Deputy Division Manager of Systems Consulting Division
Aug. 2015 Managing Director, Deputy Division Manager of the Systems Consulting Division,
Deputy Division Manager of Insurance Solution Division
Apr. 2018 Senior Managing Director, Deputy Division Manager of the Systems Consulting Division
Apr. 2019 Counselor of the Company
Jun. 2019 Audit & Supervisory Board Member of the Company (present)

Independent

New election

Kenkichi Kosakai

OutsideIndependent

Naruhito Minami

Date of birth: August 9, 1953
Audit & Supervisory Board Member (Note 1)

Date of birth: January 15, 1963
Audit & Supervisory Board Member (Note 1)(—)(1,000 shares)

Apr. 1976

Joined Mitsubishi Chemical Industries Limited(currently, Mitsubishi Chemical Corporation)
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)<Important concurrent positions>
Outside Director of Dai-Dan Co., Ltd.

Aug. 1986 Joined Asahi Shinwa & Co. (currently, KPMG AZSA LLC)
Mar. 1990 Registered as a certified public accountant
Sep. 1993 Partner of Tokyo Akasaka & Co. (currently, GYOSEI & CO.)Jan. 1999 Senior Partner of Tokyo Akasaka & Co. (currently GYOSEI & CO.)Oct. 1999 Managing Partner of Tokyo Hokuto & Co. (currently GYOSEI & CO.)Jul. 2010 Vice Executive Director, Partner of GYOSEI & CO.
Jul. 2017 Executive Director, Managing Partner of GYOSEI & CO.
Jun. 2022 Audit & Supervisory Board Member of the Company (present)<Important concurrent positions>Managing Partner of GYOSEI & CO.
Outside Auditor of FunPep Company Limited

Jun. 2010

New election

OutsideIndependent

Yasuko Takazawa
Date of birth: November 20, 1964
Audit & Supervisory Board Member (Note 1)(—)
Apr. 1987
Dec. 2009

Joined Nippon Steel Corporation (currently, NIPPON STEEL CORPORATION)
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)<Important concurrent positions>
Corporate Officer of MITSUBISHI MOTORS CORPORATION

1. Hideaki Omiya, Shinoi Sakata, and Tetsuji Ohashi 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 them to the said stock exchange.
2. Members of the Board were selected at the Ordinary General Meeting of Shareholders
held on June 17, 2022.
3. For the Audit & Supervisory Board Members, Motoya Nishimura was selected at theOrdinary General Meeting of Shareholders held on June 20, 2019, Takuhito Sakata
was selected at the Ordinary General Meeting of Shareholders held on June 18, 2020,
Kenkichi Kosakai was selected at the Ordinary General Meeting of Shareholders heldon June 18, 2021, Naruhito Minami, and Yasuko Takazawa were selected at theOrdinary General Meeting of Shareholders held on June 17, 2022.
4. Figures in parentheses indicate number of the Company’s shares held. These list the
number of shares held as of April 30, 2022, including holdings in the executive shareownership plan.

Managing Directors and Fellows
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

Hajime Ueda
Shigeki Hayashi
Hiroshi Masutani

Katsutoshi Murakami
Yasushi Kobara
Hiroyuki Kawanami
Sonoko Kitagawa
Jun Odashima
Takeshi Hihara
Masaaki Yamazaki
Koji Shimizu
Hiroshi Koike
Ichiro Morisawa

Masashi Shimizu
Noriyuki Kobayashi
Akihiro Kamei
Takao Yamaguchi

Tomoshiro Takemoto
Hirofumi Tatematsu
Fumihiko Sagano

Senior Corporate Managing Directors
Yoichi Inada
Minoru Yokote
Namiki Kubo
Yuichi Higo
Tohru Yasumaru
Tomohiko Noguchi
Susumu Nishimoto

Yoshihiko Sunaga
Shoichi Ohno
Akira Matsumoto
Tetsuro Watanabe
Shigekazu Ohmoto
Yasuki Nakamaru

Kazuya Kobayashi
Noriyasu Kogure
Kaga Yanagisawa
Kotaro Gunji
Hideki Saito
Katsuya Mori
Takefumi Ikeya
Noriyuki Takeda
Toshifumi Hara
Hiroyuki Nakayama

Masakazu Amamiya
Akiko Tabaru
Hirofumi Miyatake

Research Directors
Yasuki Okai
Kotaro Kuwazu

Fumihiko KamioCounselors
Naohiro Sako

Hisao Nakajima

Fellow
Minoru Aoshima

Integrated Report 2022

115

GovernanceInternal Controls, Corporate Ethics, and ComplianceInternal Control System
NRI has established a basic policy for building an internal control system, while appointing a director in charge of risk manage­
ment and setting up a department for supervising risk management.
In addition, the Integrated Risk Management Committee meets to check the Company-wide internal control status asappropriate. The Business Promotion Committee, which all business divisions and Group companies attend, also works
to ensure that the internal control system is established.
Basic policy for building an internal control system (Japanese)
https://www.nri.com/jp/company/internal

Risk Management PDCA Cycle

 isks that may arise in the course of business execution by theR
NRI Group are classified into 13 items including management
strategy, business activities, and compliance, and the depart­
ment responsible for each risk conducts a risk assessment andreview of the risk items that takes into consideration the level ofimportance and impact every fiscal year on risk items that havebeen subclassified even further.

 he Integrated Risk Management
T
Committee meets to check theCompany-wide internal control
status regularly. The Business
Promotion Committee, which all
business divisions attend, also
works to ensure that the internal
control system is established, andimprovements are made.

Risk setting

Risk monitoring
and
improvements

Priority themes for
FY March 2023

 fter an assessment is compiled, the department responsibleA
for risk management holds discussions at the Integrated Risk
Management Committee and sets the risks that should bemanaged. It also selects prioritized themes that have a particu­
larly high level of importance or impact.

Risk prevention
measures epartment responsible for riskDmanagement establishes a man­agement structure and conducts
integrated risk management incooperation with the departments,
etc., that oversee each risk. As
necessary, risks are discussed atmeetings attended by personnel
with expertise, and appropriate
measures are taken by the
responsible department in coop­eration with business divisions.
 CP (business continuity plans)
B
and DR (disaster recovery) mea­sures are also put in place forbusinesses and services that havea significant social impact.

I	Continue proper management of quality risks for our systems in operation
II	Improve the management preparedness of information securityIII	Further strengthen the management of project risks
IV	Develop internal control systems suitable for NRIV	Implement appropriate preparation for fulfilling our business continuity responsibilities
VI	Improve the quality of working environments to adapt to a variety of working styles

Internal Audits Conducted by the Internal Audit Department
The Internal Audit Department (20 employees), which functions directly under the President, audits the Company to ensure the effec­
tiveness 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 regularexchange of opinions regarding plans for conducting internal audits and their results.

116

Nomura Research InstituteThe Strengthening Global Governance
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 supports the formulation and executionof global strategies centered on its Global Headquarters
established in April 2019. Through this initiative, we areworking to strengthen governance at all overseas subsidiar­ies, including acquired subsidiaries.

Business Management through Local Holding Companies, etc
Local holding company, etc.

NRI Australia(Sydney)

NomuraResearch
Institute

NRI Holdings America(New York)NRI Asia Pacific(Singapore)
NRI Beijing(Beijing)

Territory regions

Australia
United States
Asia
MainlandChina
Japan andEuropeCorporate Ethics and Compliance System
To ensure effective ethics and compliance systems, NRI has appointed the Chief Ethics Officer and Chief Compliance Officer
and established the Compliance Committee. Moreover, we have established 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’s Code of Business Principles
https://www.nri.com/en/company/company_code

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.
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 inter­
nal and external hotlines as contact point that Japanese Group employees can use to consult with regarding compliancerelated issues.
Compliance Information Communication Process

President(Committee Chief Ethics Officer)
ReportDirector in charge of ComplianceIntegrated Risk Management
Committee“Whistleblowing system”(referred to as “Compliance
Hotline”) (Internal / External)

Compliance Committee

Disciplinary Action
Committee

Headquarters• Overall risk assessment• Overall total of Fundamental Rules monitoring
results

Representative
Departments• Risk materialization monitoring• Implementation of risk reduction measures• Implementation of Fundamental Rules monitoring

Secretariat of the Compliance Committee

Corporate Planning
Department
Integrated Risk Management
SectionDivision Manager
General Manager

Notification

Regularemployees

Temporaryemployees

Raising and Instilling the Awareness of
Executives and Employees through theRule 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 withlaws, regulations, etc.,with a high sense of
ethics. By raising andinstilling awareness ofcompliance using this,
we work to put in place
the foundations for ourcompliance structure.

Integrated Report 2022

117

05
Business Segments
Responding to a wide range of social needs through four businesses

118

Nomura Research InstituteCONTENTS
120 NRI’s Four Business Segments
122 Consulting
123 Financial IT Solutions
124 Industrial IT Solutions
125 IT Platform Services

Integrated Report 2022

119Business Segments

NRI’s Four Business Segments
NRI’s business consists of mainly the four following business segments.
Consulting: Consulting services
Financial IT Solutions: IT solutions for the securities, insurance, banking, asset management, and other financial sectors
Industrial IT Solutions: IT solutions for industrial clients in distribution, manufacturing, and service sectors
IT Platform Services: Construction of IT platforms and networks that support NRI’s IT solutions business and data center
operations, in addition to system management solutions and security services for external clients

Consulting

P.122

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

Financial IT Solutions

P.123

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

Industrial IT Solutions

P.124

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

NRI Netcom, NRI System Techno, NRI digital, Brierley+Partners, ASG Group, SMS
Management & Technology Limited

IT Platform Services

P.125

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

NRI SecureTechnologies, NRI Data i Tech, NRI digital

120

Nomura Research Institute

Clients

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

Revenue by Segments for FY March 2020(year-on-year changes)

Revenue IncludingInter-Segment Revenue

Operating Profit / Margin(billions of yen / %)(billions of yen)

¥42.8 billion (+14.9%)

50
40

44.4
39.6

39.6

40

15

12.8

38.1
10

30

9.5

9.4

24.0

24.0

20

30
28.9

10.0
26.4

20

5
10

10
0

20.3

20.3

JGAAP

21.3

22.3

IFRS

0

20.3

20.3

21.3

JGAAP

Operating profit¥303.6 billion (+5.4%)

320

Securities¥133.3 billion (2.2%)

276.9 276.9

292.0

308.3

0

22.3

IFRS

Operating margin

43.8

45

35.0
240
30

34.1

20

36.2
15
14.2

12.7
12.3

12.4
10

160
15

Insurance¥68.8 billion (12.1%)
Other financial¥54.3 billion (7.8%)

Banking¥47.0 billion (6.2%)

5

80

0

20.3

20.3

JGAAP

21.3

22.3

IFRS

0

20.3

20.3

21.3

JGAAP

IFRS

Operating profit¥222.5 billion (+19.6%)
Manufacturing,
service and other¥154.3 billion (24.6%)

250

229.9

20

Distribution¥68.2 billion (9.8%)

20

25.4
19.7

11.1
10.3

10

10
5

50

5

20.3

20.3

JGAAP

21.3

22.3

0

20.3

20.3

JGAAP

IFRS

21.3

180

157.5

18

18.4

19.4

13.3

120

0

Operating margin24

138.8 138.6 142.6

22.3

IFRS

Operating profit¥42.6 billion (+9.7%)

15

19.4

10.9

15

0

22.0
12.2

150
100

Operating margin30
25

200 181.4 181.4 189.5

0

22.3

19.7

14.0

20.9

13.9

20

15
13.3

12

10

6

5

60

0

20.3

JGAAP

20.3

21.3

22.3

IFRS

0

20.3

20.3

JGAAP

Operating profit

21.3

22.3

0

IFRS

Operating margin

Note: Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.

Integrated Report 2022

121

Business Segments

Consulting
The Consulting segment provides management consulting services for policy planning for government agencies, strategy planning and business operation reforms of companies, and system consulting services for all phases of IT management. As one of
the largest consulting firms in Asia with more than 1,000 consultants in Japan and overseas, we have a strong track record inoverseas markets such as the Asia-Pacific, Europe, and the United States, where we have been tapped for numerous consulting
projects by Japanese companies as well as local companies and governments.

Management Consulting
Since its establishment in 1965, NRI has worked in a wide range of industrial fields to formulate strategies, reform business opera­
tions, and support the formulation and achievement of policy by governments and government agencies. We actively support ourclients’ globalization, which is at various stages in each industry and company.
Visualization and Structuring of Management Issues
Insight into issues
Trust from clients backed byhigh client satisfaction
Providing information fromdiverse perspectives based on
think tank DNA

Provision function for achieving results for clients
Identify client
management
issuesSurveying,
construction ofstrategies

Consultants who possess
in-depth knowledge of theirclients and industries
Shift high-quality humanresources to full stacking
consultants

Digital response capability

High-quality
proposals tomatch eachclient

PoC(Proof of Concept)

Execution

Subsequent issues such as system design and M&A
Clarification of related themes and issues

System Consulting
Through many years of experience, NRI has accumulated extensive knowledge on the business, operations, IT, and digital technologyof Japanese corporations. We sincerely strive to resolve our clients’ issues and work together with clients to help them achieve DX.
Client industry
Finance

Manufacturing

Logistics

Other
Industries

PublicSectorDX 3.0 planning(Social issue resolution business plan)

Lead DX
Functionsrequired toachieve DX(Data utilization, PoC, systemization plan)

Technology design(Digital technology, information security)

IT management(Organizational reform, accompanying support,
human resource development)

122

Nomura Research InstituteComprehensive system consulting that achieves
client DX by combining functions and industries

Financial IT Solutions
NRI has been leading the trend of “from owner to user” in information systems of financial institutions for over 40 years. Throughthe collaboration between researchers or consultants who are sensitively aware of the environmental changes surrounding financial business and business analysts or digital human resource providing IT solution services, NRI has kept producing the next
generation solutions and supporting the business continuity of financial institution sin various aspects.
IT Solutions for financial business
https://www.nri.com/en/service/solution/fis/all

Solutions for Securities Business

Solutions for Asset Management Business

NRI provides the full range of IT services needed for securities
companies such as a joint-use service in back-office operationsof retail or wholesale (THE STAR/I-STAR), and a support system
to advise retail investors. These services are used by a wide
variety of financial institutions including Japanese securities
companies, foreign securities companies, and more recently,
players entering from different industries.
We are also proactively engaging in Japan’s “My Number”
national ID system related platform business (e-BANGO,e-NINSHO, e-PO box etc.) including e-BANGO, capable of­connecting to the STAR series in accordance with the govern­ment’s digital government policy. In addition to the IT services
mentioned above, we provide BPO services to support ourclients’ businesses through our group company, DSB Co., Ltd.

We provide joint-use services (T-STAR Family, Fundweb
Transfer, Smart Bridge Advance, etc.) and investment informa­tion services (IDS) so as to provide total support for asset man­agement business, including management of trust property andinvestment advisory, management of pension funds, etc. In
addition, we provide BPO service in order to support business
continuity, improvement of the quality of operations, and pro­ductivity, which is utilized by many asset management compa­
nies, insurance companies, etc.
Moreover, in response to the recent expansion in the numberof funds and working assets as well as the diversification of
investment destinations, we are also providing support for
digitalizing business operations, including paperless systems
and expanding new contents such as ESG data which arebecoming increasingly important.
By providing solutions to support problem-solving for busi­
ness operation, we continue to work on the further sophistica­
tion and expansion of asset management business.

Solutions for Insurance Business

Solutions for Banking Business

Based on a wealth of knowledge gained from many years ofworking with insurance systems, we offer total support from thedesign of basic operations system to construction/operation for
non-life insurance companies and public/mutual aid enterprises.
The joint-use service (e-JIBAI), which follows the rules of com­pulsory automobile liability insurance system, has become asubstantial industry standard as a solution for insurance admin­
istration, management, and settlement operations. Recently,
we have started providing services for small-amount and shortterm Insurance (mini-insurance) (insDirect/MP), which is diversi­
fying due to digitalization, and services for non-life insurance
using telematics* technology. NRI is working daily to build sys­
tems corresponding to changes in the insurance industry’s
business environment, insurance products and services, andbusiness processes.

We provide solutions for back-office operations in major banks,
trust banks and regional banks as well as for internet banking(Value Direct), In particular, BESTWAY/JJ, the joint-use service
that was launched in light of lifting the ban on over-the-countersales of investment trusts by banks, gives a comprehensive
support for the management of defined contribution pension
accounts, from the sales support for investment trusts at sales
offices (front) to the management of account (back), and con­tributes to the sales expansion of investment trust in manybanks / trust banks. In recent years, we are working towards
the transformation of the financial services function as a social
infrastructure by constantly challenging a new field with a goalof achieving the sophistication of services in the banking busi­
ness, including solutions for new types of banks such as con­venience stores and internet-only banks, and measures toward
participation of different industries in financial services.

* Telematics: The term created by integrating “telecommunications” and “infomatics”, it isa system of providing all sorts of information and services by using on-board devices
such as car navigation system or GPS, and a mobile communication system.

Integrated Report 2022

123

Business Segments

Industrial IT Solutions
NRI’s Industrial IT Solutions business provides integrated services spanning consulting to development and operations as abusiness partner of top companies in the distribution, manufacturing, telecommunications, and industrial services industries,
based on our many years of experience and track record of building and operating mission-critical systems. In recent years,
we have been researching and developing key technology components to achieve DX, and are responding to our clients’ DX
construction needs.

DiPcoreDiPcore is a componentized key technology for achieving client
DX. NRI combines advanced AI algorithms and cloud technol­
ogy to research and develop components that can be incorpo­
rated into e-commerce sites and core business systems.

Using DiPcore makes it possible to flexibly respond to busi­
ness requests that are difficult to respond to with AI package
solutions, and to provide speedy DX construction requirements.

Enterprise IP Series
Enterprise IP is a group of algorithms that combine technolo­
gies such as machine learning and optimized calculations
to achieve business automation and optimization. Using
Enterprise IP makes it possible to generate an analysis model
optimized for the client’s business and incorporate that model
into the core system. NRI’s data scientists and business ana­
lysts collaborated to create Enterprise IP in response to ourclients’ business strategies.

Engineering IP Series
Engineering IP is a set of software components such as
templates, frameworks, and e-commerce containers that
dramatically heighten the productivity and quality of DX systemdevelopment. Engineering IP has accumulated the know-how
for flexible and speedy construction of systems. It improvesdevelopment QCD through automation technology andcomponentization.

Sales
Purchasing

Distribution
Price strategy

Enterprise series
for heightening
business added
value

AI demand
forecasting /automatic ordering

Shipping route
optimization

Number of page
views

Recommendation /purchasing

After-sales service /sales management

Digital Contact
Center (DCC)
Price optimization

Search engine

AI recommend
Royalty marketing

Series that uses AI to improve operational efficiency
AI / OCR / size scan

Application template
EC Platform (ECP) / Smartphone Native App Framework

Engineering series
for increasing the
speed of system
introduction

Data utilization platform template
Digital marketing PF / Machine learning PF

Cloud template
Automated infrastructure construction / Multi-cloud / Security / CI/CD* We plan to sequentially expand the lineup in the future

124

Nomura Research InstituteTemplates by industry

IT Platform Services
As systems grow in scale and complexity along with changes in business activities and the evolution of information technology,
the IT infrastructures which serve as the foundation for these systems are becoming increasingly important. NRI’s IT Platform
Services segment anticipates and strategically incorporates advanced technologies into each of its services and solutions inorder to achieve and support the transformation of clients.

Managed Services

Experts in each area provides total support for DX transformation

Advanced Technology Acquisition /Co-creation with Clients

Creating digital business from a technology driven and client-driven perspective

Security Service

Information security specialists provide comprehensive support to solve a wide
range of security issues.

‘Zero Trust’ Provides Safety and Security in an Advanced IT Society
An increasing number of companies are using remote work in
response to the COVID-19 pandemic. In order to enable andspread remote work, it is important to have a security environ­ment in which work can be done safely and comfortably
regardless of location. The key technology for solving problems
is “Zero Trust”*. NRI and NRI Secure Technologies, Ltd. provide
a one-stop service from planning to operation of a Zero Trust

Planning

workplace, thereby creating an environment where employees
can engage in digital work with peace of mind.
*Z ero Trust: A policy that disregards the concept of ’boundaries’ between internal andexternal networks. Instead, it constantly monitors and verifies all access to information
assets that must be protected without trusting anyone.

Implementation

Operations monitoring

Consulting

Security integration

Managed services

Conceptualize Zero Trust’s overall architecture
to meet the needs of the client’s business andindustry

Realize systems by combining the optimal
solutions to meet the needs of clients andsociety

After release, we continue to operate andmonitor complex systems 24/365 toensure the safety, security, and stability of
our clients and society

NSF(NRI Secure
Framework)

Framework for visualizing thestatus of security measures

Providing a digital workplace thatcombines security and increased
productivity

On March 14, 2022, NRI and LAC Co., Ltd. established
Nuligen Security Co., Ltd. to provide managed security
services for cloud platforms. The new company will bring
together the wealth of security-related technology, knowl­edge, and experience accumulated by LAC Co., Ltd., NRI,
and NRI SecureTechnologies, Ltd. By actively engaging in
cutting-edge technology fields such as the use of artificial
intelligence (AI), Nuligen Security Co., Ltd. will provide

NRI SecureTechnologies, Ltd.
NRI SecureTechnologies was established in 2000 as an NRIGroup company specializing in information security. As socialtransformation through DX accelerates, it is becoming increas­
ingly important for companies to control security risks. NRIAdvanced security
operation and monitoring
services

Create an environment
where people canwork digitally withpeace of mind
Dramatic improvement in productivity ofsociety as a wholemanaged security services that support the realization ofadvanced cloud security required by enterprises.

https://www.nri-secure.com/

SecureTechnologies continuously provides high-quality services
and products by accumulating not only technology, but also
knowledge, and know-how, and by training world-class security
personnel.

Integrated Report 2022

125

Corporate Information / Data

10-year Summary Consolidated Financial Statements
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 Consolidated Financial Results.

Consolidated Financial Results
https://ir.nri.com/en/ir/library/financial.html

JGAAP
2013.32014.32015.32016.32017.32018.3363,891
262,315
101,575
57,608878
20,080
4,582
2,492
3,641
1,843
8,823
43,967
1,891
45,858(2,988)14,261
28,612385,932
276,664
109,267
59,450986
20,087
4,715
2,458
3,786
1,853
9,640
49,8162,544
52,360349
21,17531,527405,984
289,210
116,774
65,287
1,316
22,450
5,136
2,105
4,362
1,789
11,17051,486
1,455
52,942
6,132
19,20938,880421,439
287,270
134,168
75,873
1,227
25,395
5,802
2,155
4,935
1,712
14,24658,2952,705
61,001
1,304
19,51342,648424,548
280,761
143,787
85,272
1,213
27,576
5,993
3,038
5,842
1,768
16,72258,514
1,839
60,354
4,638
21,04245,064471,488311,868
159,619
94,481
1,101
29,681
6,751
2,678
6,348
1,705
16,74065,138
1,023
66,161
16,366
26,35655,145432,222
189,206
10,273
243,016
63,45642,854—
136,705
88,378141,404
118,207—579
23,196—
4,250
290,818

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

68,600(36,019)(34,055)
32,58034,544(10,723)721
22,57999,623145,974

33,839(32,234)(38,086)
1,605(4,246)(8,773)337(6,830)92,792
133,350

58,710(1,093)(13,800)
57,61744,910(10,536)694
47,775140,567
169,023

81,470(75,344)(52,725)
6,126
28,744
9,326(1,071)
14,381
154,949
206,031

61,147(30,341)(41,348)
30,805
19,799(34,327)624(2,897)152,051
192,028

73,493(17,882)(30,162)
55,61043,330(46,829)(2,529)6,251
158,303
185,882

Consolidated Statement of Income:
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations
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 and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period
Cash and cash equivalents + cash management purpose investment

Note: 1. Figures less than unit indicated have been rounded down for amounts.
2. Consumption tax and local consumption tax are accounted for by the tax-exclusion method.

126

Nomura Research Institute(millions of yen)
IFRS
2019.32020.3501,243
336,508
164,735
93,293
1,069
30,506
6,783
2,533
6,532
1,851
17,07371,442967
72,4094,340
25,21350,931

528,873
348,006
180,866
97,6881,220
32,522
7,032
2,907
6,697
1,840
18,366
83,178
1,349
84,52817,96832,28869,276

Revenue

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

533,151
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

56,349(16,826)(15,025)
39,52341,324(73,106)(1,519)(35,102)123,200
152,743

102,787
18,382(6,985)
121,169
95,801(139,857)(3,734)(22,421)
100,778
104,842

Cash flows from operating activities

Cost of sales
Gross profit
Selling, general and administrative expenses

2020.32021.32022.3528,721346,101
182,620
97,491

550,337
364,539
185,798
98,366611,634
395,562
216,071
113,536

164,707
179,72139,38342,954

171,521
190,008
40,911
46,819196,600
217,175
41,94147,59785,625(140)
85,48480,748(9,672)
71,075106,218(1,547)
104,671

26,38858,195

18,49752,86732,87871,445565,229
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

112,838
18,382—
131,221—(149,908)(3,734)(22,421)
100,778—

84,594(20,522)(22,811)64,071
61,782(13,183)
1,520
52,408153,187
154,847

98,137(130,547)(130,472)(32,410)(32,335)(7,995)
2,829(37,576)
115,610
117,368(The breakdown of cost of sales and selling, general and administrative expenses)
Employee benefit expenses
Operations consignment expenses
Depreciation and amortization
Equipment and machinery expenses

Operating profit
Finance income & finance costs
Profit before tax
Income tax expense
Profit attributable to owners of parent

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

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 and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period
Cash and cash equivalents + cash management purpose investment

Integrated Report 2022

127

Corporate Information / Data

Consolidated Financial Data
(millions of yen)
JGAAP
2017.3

Segment Information:
External revenue Consulting
Financial IT Solutions(Revenue toSecurities
external clients)
Insurance
Banking
Other financial
Industrial IT Solutions
Distribution Manufacturing, service and other
IT Platform Services
OthersExternal 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
System development &by service
System applications sales
System management &Operation services
Product sales
Revenue to main Nomura Holdings, Inc.
Seven & i Holdings Co., Ltd.
clients
Overseas
Overseas revenue
Overseas revenue ratio (%)
revenue

2018.32019.32020.32020.3

IFRS
2021.32022.330,574
246,979
119,128
51,98240,28635,580107,208
54,25652,952
29,241
10,54434,577
252,122
118,397
51,83642,22539,662
154,91761,057
93,86029,870—34,839252,367
100,309
64,874
43,40443,780180,882
66,814
114,068
33,153—38,572
273,571
112,762
66,37451,022
43,411
178,490
66,789111,700
38,239—38,572
273,571
112,762
66,37451,022
43,411
178,490
66,789111,700
38,087—

37,246288,196
130,427
61,44150,181
46,146
186,051
62,192
123,858
38,843—42,807
303,635
133,316
68,89447,07354,351
222,583
68,269154,31342,607—

31,161
5,853
18.8

35,3326,561
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

248,188
26,461
10.7

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
43,877
14.2

107,672
9,076
8.4

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

122,107
14,015
11.5
62,734
131,908

122,342
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

217,271

241,198

244,273

251,908

251,757

258,656

272,903

12,63471,60045,28518,925
4.5

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%

Note: 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 include 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 is changed from the method based on the location of sales destinations to the method based on the location of the headquarters of each company.
(millions of yen)
JGAAP

Order volume

Order backlog

Consulting
Financial IT Solutions
Industrial IT Solutions
IT Platform Services
Others
Total
Consulting
Financial IT Solutions
Industrial IT Solutions
IT Platform Services
OthersTotal

2017.32018.32019.32020.32020.3

IFRS
2021.334,609246,153
116,335
31,423
10,463438,986
8,711
148,893
67,65014,0193,472
242,748

36,285
244,794
174,260
30,154—
485,494
6,764
141,574
94,12014,295—
256,754

34,315
265,724
184,653
33,467—518,161
3,559
154,930
100,572
14,609—273,672

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
37,083—574,343
7,050
184,968
102,484
15,281—
309,7852022.344,546
317,059
243,501
45,126—650,233
8,789
198,391
123,40217,800—348,384

Note: 1. Figures less than the unit indicated have been rounded down for amounts.
2. The amounts are based on sales price.
3. In 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.

128

Nomura Research Institute(millions of yen)
JGAAP

Production and Orders:
Actual production
Subcontracting costs Of which are subcontracting costs to Chinesecompanies
Subcontracting ratio (%) Subcontracting ratio to Chinese companies (%)

2017.32018.32019.32020.32020.3

IFRS
2021.3

277,736
126,361
18,815304,044
135,522
19,532

327,324
150,635
23,213

337,197
161,305
28,514—
161,353
28,514354,035
171,560
30,460399,558
194,766
36,730

45.5
14.9

44.6
14.4

46.0
15.4

47.8
17.7

48.1
17.7

48.5
17.8

48.7
18.9

2022.3

Note: 1. Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.
2. T he 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
2017.32018.32019.3

Capital Expenditures / Depreciation and Amortization / Research and Development Expenses:
Capital expenditures
38,66838,201
26,276
Capital expenditures (tangible)
13,64016,188
5,615
Capital expenditures (intangible)
25,02722,012
20,661
Depreciation and amortization
28,476
31,94130,427
Research and development expenses
5,674
5,170
3,665

2020.328,496
6,684
21,81130,414
4,310

2020.3———39,383
4,310

IFRS
2021.32022.333,372
11,712
21,66040,911
4,468

46,98010,99035,99041,941
4,992
(%)

JGAAP
2017.3

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 tototal assets
Price earnings ratio (PER) (times)
Dividend payout ratio
Total return ratio

2018.32019.32020.32020.3

IFRS
2021.32022.3

33.9
13.8
20.9
10.7
9.7
0.13
—
69.1

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

22.6
42.4
66.4

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
(millions of yen)

JGAAP
2017.3

Per Share Information:
Basic earnings per share
Diluted earnings per share
Equity attributable to owners of parent per share
Annual dividends per share

181
181
1,750
80

2018.3

228
227
1,760
90

2019.3

72
71
587
90

2020.3

109
109
455
32

2020.3

91
91
418
32

IFRS
2021.3

88
88
547
36

2022.3

120
120
575
40

Note: 1. Amounts have been rounded down to the nearest unit specified. However, percentages have been rounded off to the nearest digit specified.
2. E
 BITDA 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. N
 RI implemented 1:1.1 common stock splits on January 1, 2017. Basic earnings per share, diluted earnings per share and equity attributable to owners of parent per share arecalculated by deeming stock splits to have occurred respectively at the beginning of FY March 2016.
4. 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. Dividend per share for FY March 2019 is based on the number of shares prior to the stock split.
5. 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.

Integrated Report 2022

129

Corporate Information / Data

ESG Data
ESG Databook 2022
https://www.nri.com/en/sustainability/library/report

E: Environment
Environmental KPI (NRI Group data):
Greenhouse gas emissions (compared with FY March 2014) (%)
Share of renewable energy in data centers (%)
Supplier’s environmental target setting ratio (%)(Categories 1, 2 and 11 of Scope 3)

2018.3

Greenhouse gas emissions (NRI Group data):
Direct greenhouse gas emissions (Scope 1)
Japan
Overseas
Direct greenhouse gas emissions (Scope 2)JapanOverseas
Total emissions (Scopes 1 + 2)
Japan
Overseas2018.32019.32020.32021.32022.3

30.0
0.1

38.2
0.1

43.8
0.1

48.7
1.6

72.1
56.9

4.6

18.1

21.6

30.5

33.6

(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)(1,000t-CO2)

2019.3

1
1
0
73
70
3
75
71
3

2020.3

1
1
0
64
61
2
66
63
2

2021.3

1
1
0
58
56
2
60
58
2

2022.3

1
1
0
53
53
0
55
55
0

1
1
0
28
28
0
30
29
0

Note: 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 Scopes 1 and 2. Manufacturing in the supply chain, commuting by employees, business travel, etc.

S: Social
Number of employees(NRI Group data):

Number of employees
By region
Japan
EuropeU.S.
Asia
Of which China
Australia

2018.32019.3

Persons

Percentage(%)

12,708
8,821
14
392
2,052
1,465
1,429

100
69.4
0.1
3.1
16.1
11.5
11.2

2020.3

Persons

Percentage(%)

12,578
9,004
15
345
1,761
1,168
1,453

100
71.6
0.1
2.7
14.0
9.3
11.6

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 graduates hires retention rate after 3 years (%)
Average compensation: all employees (thousands of yen)2021.3

Persons

Percentage(%)

13,278
9,495
16
328
1,860
1,244
1,579

100
71.5
0.1
2.5
14.0
9.4
11.9

2018.32019.3

339
3.8
2.3
14.6
93.3
11,660

Persons

Persons

Percentage(%)

13,430
9,912
12
218
1,903
1,289
1,385

100
73.8
0.1
1.6
14.2
9.6
10.3

16,512
10,236
13
1,063
1,904
1,323
3,296

100
62.0
0.1
6.4
11.5
8.0
20.0

2020.3

452
3.9
2.7
14.6
95.9
12,2172022.3

Percentage(%)

2021.3

496
4.3
3.1
14.7
92.8
12,3522022.3

543
3.8
2.3
14.7
92.4
12,251

622
5.1
3.1
14.8
94.1
12,320*1 Including mandatory retirees*2 Not including mandatory retirees

Promotion of women’s participation and advancement in the workplace(Non-consolidated data):
Ratio of female employees (%)
Ratio of female managers (%)*
Ratio of female hires (%)

2018.32019.3

19.3
6.4
26.7

2020.3

19.8
6.8
27.6

2021.3

20.4
7.1
28.2

2022.3

20.8
7.6
27.2

21.7
8.3
33.2

* The ratio of female managers is the value at the beginning of the term.

Childcare leave / Nursing leave (Non-consolidated data):
Pre- and post-childbirth leave (persons)Childcare leave (persons)Male (persons)Female (persons)
Number of employees acquiring childcare leave and partner childbirth leave(persons)of which acquired partner childbirth leave only (persons)
Number of employees utilizing shorter work hour system for childcare(persons)
Employees returning to work after childcare leave(female employees) (%)*1
Employees remaining in work after childcare leave(female employees) (%)*2
Nursing care leave (persons)2018.32019.32020.32021.32022.3

56
85
22
63

72
105
38
67

78
123
53
70

61
149
84
65

68
164
96
68

252

261

260

273

243

167

156

137

124

79

107

112

103

108

94

97.0

96.7

98.1

100.0

97.0

93.3

92.8

96.8

96.5

94.9

3

3

0

1

2

Note: These are the number of employees who started a period of leave by the end of the fiscal year in question.
*1 N
 umber 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 the fiscal year × 100%.
*2 N umber 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%.

130

Nomura Research InstituteEmployment of people with disabilities (NRI Group data):
Employees with disabilities (persons)
Percentage of employees with disabilities (%)

2018.32019.3134
2.19

2020.3142
2.26

2021.3166
2.45

2022.3

170
2.35

181
2.37

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

2018.32019.3—71.4
0
02020.3—71.3
02

2021.3—71.1
01

2022.3

8.1
64.1
0
0

8.3
67.1
0
1

*1 Calculated as hours that exceed the statutory working hours (40 hours a 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

2018.32019.3

84.6
80.5
—

2020.386.9——

2021.3

83.8
81.8
—

2022.3

86.4
—
—

88.0
—
70

*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 An engagement analysis tool provided by Atrae, Inc.
* Using the engagement analysis tool Wevox provided by Atrae, Inc., we surveyed employees at NIR alone and at five Group companies (NRI SecureTechnologies, NRI Social Information
System Services, NRI Digital, Nomura School of Advanced Management) with a high percentage of employees seconded from NRI.

Information communication / Recommendation projects(Non-consolidated data):
Books publishedContributions to newspapers and magazines (times)
Public lectures given (times)
TV / radio appearances (times)
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

2018.32019.3

15
298
962
158

2018.32020.3

20
306
922
267

2019.3

1,767
24
733

2021.3

21
290
911
155

2020.3

1,444
31
850

2022.3

18
353
666
227

2021.3

2,300
29
704

21
309
765
244

2022.3

1,925
2
41

3,043
4
131

G: GovernanceMember of Directors (Non-consolidated data) (As of July 1):
Total number of Directors
Outside Directors
Female Directors

2018.3

Status of the Board of Directors (Non-consolidated data):
Number of the Board of Directors 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 (%)

2018.3

Number of the Audit & Supervisory Board held
(Non-consolidated data):
Number of the Audit & Supervisory Board held (times)
Attendance average of all Audit & Supervisory Board Members (%)
Attendance average of Outside Audit & Supervisory Board Members (%)
Number of Notification & Consultation (Non-consolidated data):
Number of notification & consultation (cases)

2019.37
3
12020.39
3
1
2019.3

15
98
93
99
98

2018.32020.3

14
98
95
99
98

2019.3

18
100
100
2018.3

17
99
98

17
100
100

14
99
97
100
100

2022.318
100
1002021.3393
12022.3

14
100
100
100
100

2021.32020.342022.39
312021.3

14
99
98
100
100

2020.32019.322021.3

9
3
1

17
100
100
2022.3

4

3

Integrated Report 2022

131

Corporate Information / Data

NRI Group Network (As of March 31, 2022)
Headquaters
Nomura Research Institute, Ltd.
Otemachi Financial City Grand Cube,
1-9-2 Otemachi, Chiyoda-ku,
Tokyo, 100-0004, Japan
Tel. +81(3)5533-2111

Domestic Bases
NRI Netcom, Ltd.
NRI SecureTechnologies, Ltd.
NRI Workplace Services, Ltd.
NRI Data i Tech, Ltd.
NRI Social Information System Services, Ltd.
NRI Process Innovation, Ltd.
NRI System Techno, Ltd.
UBsecure, Inc.
DSB Co., Ltd.
DSB Information System Co., Ltd.
NRI Mirai, Ltd.
Zhiming Software Japan, Ltd.
NRI Retail Next, Ltd.
Brierley+Partners Japan, Inc.
NRI digital, Ltd.
NDIAS, Ltd.
Financial Digital Solutions, Ltd.
Nippon Securities Technology Co. Ltd.

For more about NRI Group offices around the world:
https://www.nri.com/en/company/map

Global Network

132

Nomura Research Institute

Global Network
Global Bases
17 countries & area, 44 bases
EuropeDenmark
Ireland
Luxembourg
RussiaUnited Kingdom
North America
United States
Asia & Pacific Ocean
Australia
China
Hong Kong
India
Indonesia
New ZealandPhilippines
Singapore
South Korea
TaiwanThailand

Nomura Research Institute Holdings America, Inc.
Nomura Research Institute America, Inc.
Nomura Research Institute IT Solutions America, Inc.
Core BTS, Inc.
Brierley Partners, Inc.
Brierley Europe Limited
Cutter Associates, LLC
Cutter Associates Europe, Ltd
Nomura Research Institute Europe Limited
Nomura Research Institute (Beijing), Ltd.
Nomura Research Institute Shanghai Limited
Nomura Research Institute (Dalian), Ltd.
Zhiming Software Beijing, Ltd.
Zhiming Software Dalian, Ltd.
Zhiming Software Jilin, Ltd.
Nomura Research Institute Asia Pacific Private
LimitedNomura Research Institute Hong Kong Limited
Nomura Research Institute Singapore Pte. Ltd.
Nomura Research Institute Taiwan Co., Ltd.
Nomura Research Institute Seoul Co., Ltd.
Nomura Research Institute Consulting and Solutions
India Private Limited
Nomura Research Institute Financial Technologies
India Pvt. Ltd.
PT. Nomura Research Institute Indonesia
Nomura Research Institute Thailand
ASG Group Limited
Nomura Research Institute Australia Pty Ltd
Australian Investment Exchange Limited
Planit Test Management Solutions Pty Ltd
Planit Software Testing Limited (NZ)
Planit Software Testing Limited (UK)
Planit Testing India Private Limited
Planit Philippines Corporation

Corporate Data / Share Information (As of March 31, 2022)
Corporate Data

Component Ratio of Shareholders

Name

Nomura Research Institute, Ltd.

Headquarters address

Otemachi Financial City Grand Cube,
1-9-2 Otemachi, Chiyoda-ku,
Tokyo 100-0004, Japan

Capital22,414 million

President & CEO

Chairman and President & CEO
Representative Director
Member of the Board
Shingo Konomoto

Number of employees(Consolidated base)

16,512 persons

Financial institutions:25.11%

Individuals andother shareholders:12.73%

Companies
incorporated inother countries:
32.11%



Share Information

Securities firms:
0.99%
Companies
incorporated inJapan:
29.06%

Note: T he treasury stock is included in “individual and other shareholders.”

Listed stock exchangeTokyo Stock Exchange Prime Section

Code

4307

Fiscal year

From April 1 to March 31 of the following year

Ordinary General
Meeting of Shareholders

June

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

71,865

12.16

A share unit

100 shares

Nomura Properties, Inc.

67,518

11.42

Authorized shares

2,722,500,000 shares

28,685

4.85

Issued shares

610,696,500 shares

JP Morgan Chase Bank 385632 (Standing
Agent: Mizuho Bank, Ltd., settlement division)

Number of shareholders

17,923 persons

Transfer agent(address for inquiries
posts)

Mitsubishi UFJ Trust and Banking Corporation
Shin-TOKYO Post Officepost office box No.29 137-8081, JAPANMitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
Tel: 0120-232-711 (toll-free)

Shareholder fixed day
for dividend payment

Major Shareholders
Number of shares
held (1,000 shares)

Shareholders

September 30, March 31

Nomura Holdings, Inc.

77,320Percentage ofshares held (%)

13.08

NRI Group Employee Stock Ownership Group

28,323

4.79

Nippon Life Insurance Company (Standing
Agent: The Master Trust Bank of Japan, Ltd.)24,727

4.18

JAFCO Co., Ltd.

23,968

4.05

Japan Trustee Services Bank, Ltd.
(Trust Account)

23,500

3.98

State Street Bank and Trust Company 505223(Standing Agent: Mizuho Bank, Ltd.,
settlement division)

14,925

2.52

National Mutual Insurance Federation ofAgricultural Cooperatives (Standing Agent:
The Master Trust Bank of Japan, Ltd.)13,434

2.27

Note: 1. N
 RI has 19,489 thousand shares of treasury stock as of March 31, 2022 which is
not included in the major shareholders list above.
2. Figures
for number of shares held are rounded down to the nearest thousand
and figures for percentage of shares held are calculated excluding treasury stock.

Total Shareholder Return (TSR) Over the Past Five Years
(%)

400

NRI

TOPIX

300

200

100

0

2017/3
Holding Period

2018/3

2019/32020/32021/32022/3

1 year

2 years

3 years

4 years

5 years

NRI

125.1%

127.1%

174.1%

260.0%

306.4%

TOPIX

115.9%

110.0%

99.6%

141.5%

144.3%

Note: T otal 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.

Integrated Report 2022

133

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

Printed in Japan