28th July 2022

Consolidated Financial Results
for the Three Months Ended 30th June 2022
(Under IFRS)
Company name:
Listing:
Securities code:
URL:
Representative:

Nomura Research Institute, Ltd.
Tokyo Stock Exchange
4307
https://www.nri.com/jp/
Shingo Konomoto, Chairman and President & CEO, Representative Director, Member of the
Board
Inquiries:
Teijiro Matsui, General Manager, Controllers & Operation Department
Telephone:+81-3-5533-2111
Scheduled date to file quarterly securities report:
12th August 2022–
Scheduled date to commence dividend payments:
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended 30th June 2022
(from 1st April 2022 to 30th June 2022)(1) Consolidated operating results (cumulative)
RevenueThree months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

30th June 2022

167,537

17.4

30th June 2021

142,647

8.8

Profit attributable toowners of parent
Three months ended

Profit before tax%

Millions of yen

28,0795.7

26,564

48.9

Total comprehensive
incomeProfit%Millions of yen

27,7893.9

18,8482.0

26,73758.7

18,471

64.4

Basic earnings
per share%

Diluted earnings
per share

Millions of yen%

Millions of yen

%

Yen

Yen

30th June 2022

18,762

1.9

22,233

19.2

31.80

31.76

30th June 2021

18,41155.9

18,647

18.9

30.57

30.46

Equity attributable toowners of parent

Ratio of equity
attributable to owners ofparent to total assets(2) Consolidated financial position
Total assets
As ofTotal equity

Millions of yen

Millions of yen

Millions of yen

30th June 2022

790,639

355,195

351,983

44.5%

31st March 2022

789,655

342,486

339,360

43.0

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
31st March 2022
Fiscal year ending
31st March 2023–

Fiscal year-end

Total

Yen

Yen

19.00

–

21.00

40.00

22.00

–

22.00

44.00

–

Fiscal year ending
31st March 2023
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecasts of consolidated financial results for the fiscal year ending 31st March 2023
(from 1st April 2022 to 31st March 2023)(Percentages indicate year-on-year changes.)

RevenueSix months ending
30th September 2022
Fiscal year ending
31st March 2023

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

320,000

9.6

55,0002.0

54,0000.9

37,0001.3

670,000

9.5

115,000

8.3

113,000

8.0

77,000

7.8

Basic earnings
per share
Yen

Six months ending
30th September 2022
Fiscal year ending
31st March 2023

Profit attributable toowners of parent

Profit before tax

62.72
130.52

Note: Revisions to the forecast of financial results most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimates(i) Changes in accounting policies required by IFRS: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None
(3) Number of issued shares (ordinary shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of 30th June 2022

610,696,500 shares

As of 31st March 2022

610,696,500 shares(ii) Number of treasury shares at the end of the period
As of 30th June 2022

20,222,975 shares

As of 31st March 2022

21,109,262 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended 30th June 2022

589,959,435 shares

Three months ended 30th June 2021
602,370,868 shares
Note: The NRI shares held by the trust exclusive for NRI Group Employee Stock Ownership Group are included intreasury shares.

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters(1) The forward-looking statements including business forecasts stated in this document are based on information
available to the Company at the present time and certain assumptions judged to be rational, and thesestatements do not purport to be a promise by the Company to achieve such results. Actual business results, etc.
may differ significantly from this forecast due to various factors.
(2) Supplementary materials on financial results are disclosed on the TDnet at the same time as this summary of
consolidated financial results, and will also be posted promptly on the Company’s website. In addition,
explanatory materials for the results briefing for analysts and institutional investors to be held today will also
be posted together on the Company’s website.

Attached Material Index

1.

Qualitative Information Regarding First-Quarter Settlement of Accounts ................................................ 2(1) Qualitative Information Regarding Consolidated Operating Results ..................................................... 2(2) Qualitative Information Regarding Consolidated Financial Position..................................................... 6
2. Condensed Quarterly Consolidated Financial Statements, Etc. ................................................................. 8(1) Condensed Quarterly Consolidated Statement of Financial Position..................................................... 8(2) Condensed Quarterly Consolidated Statement of Comprehensive Income.......................................... 10(3) Condensed Quarterly Consolidated Statement of Changes in Equity .................................................. 11(4) Condensed Quarterly Consolidated Statement of Cash Flows ............................................................. 13(5) Notes to Condensed Quarterly Consolidated Financial Statements ..................................................... 15-1-

1. Qualitative Information Regarding First-Quarter Settlement of Accounts(1) Qualitative Information Regarding Consolidated Operating Results
Three months
ended
30th June 2021
142,647
15,896
11.1%
23,227
26,564
18.6%
23.5%
26,737

Three months
ended
30th June 2022
167,537
31,45418.8%
25,84028,07916.8%
22.1%
27,789(Millions of yen)
Year on year
AmountRate

Revenue
24,89017.4%
Overseas revenue
15,558
97.9%
Overseas revenue ratio
7.6P–
Business profit
2,612
11.2%
Operating profit
1,514
5.7%
Operating margin(1.9)P–
EBITDA margin(1.4)P–
Profit before tax
1,051
3.9%
Profit attributable to owners
18,411
18,762350
1.9%
of parent
Notes: 1. Business profit is operating profit excluding temporary factors (such as impairment of goodwill and impairment of
fixed assets), and a profit indicator to measure regular performance of businesses.
2. EBITDA margin: EBITDA (operating profit + depreciation and amortization + loss on retirement of fixed assets ±temporary factors) / revenue

During the three months ended 30th June 2022, the Japanese economy saw a pickup in businessconditions with progress in normalization of economic activities due to effects of countermeasuresagainst COVID-19 and various policies. Information system investment continued to see strong
corporate investment demand centered on digital transformation (DX) which involves transforming
business processes and business models using digital technologies. However, various uncertainties,
such as rising raw material prices, supply chain constraints and rapid exchange-rate fluctuations due tothe prolonged Russia-Ukraine situation, continue to cloud the outlook.
Operating in such an environment, Nomura Research Institute (“the Company”) and its consolidated
subsidiaries (“the NRI Group”) carried out its business activities leveraging the combined strengths of
the NRI Group, allowing it to seamlessly provide services encompassing consulting through to systemdevelopment and operations.
The current fiscal year is the final year of the “NRI Group Medium-term Management Plan (20192022)” (the “Medium-term Management Plan 2022”), formulated to achieve Vision 2022 (from thefiscal year ended 31st March 2016 to the fiscal year ending 31st March 2023), the NRI Group’s longterm management vision. In addition to working to achieve even greater productivity and to expand
existing businesses, the NRI Group will promote efforts to realize the growth strategies set forth in theMedium-term Management Plan 2022: (1) DX strategy, (2) global strategy, and (3) human resources
strategy.
(1) DX strategy: The NRI Group is providing comprehensive support by leveraging technologies
across everything from creating strategies to solutions with respect to transforming the businessprocesses and business models of its clients.
In terms of business platform strategy, the NRI Group is helping its clients create new
businesses and enter new markets by providing them with business platforms specificallytailored to those who are entering the financial sector from other industries in step withtransformation of industrial structures, while also expanding the NRI Group’s shared online
services with a focus on the financial sector.
Under its cloud strategy, the NRI Group is improving clients’ business agility and optimizing
their IT costs by engaging in legacy system modernization*1 and developing cloud-native*2 apps.
(2) Global strategy: The NRI Group is expanding its business foundations with a focus onachieving external growth through M&As and other such initiatives, including the acquisition ofIPs, mainly in the key geographic regions of Australia and North America. In order to generate
further synergies with subsidiaries acquired through M&A deals, the Company is building a
new business management system, operational management system and other systems centeredon the Global Headquarters to drive forward the business integration process after acquisition.

-2-

(3) Human resources strategy: The NRI Group is improving its recruitment and development ofprofessionals underpinning the digital age in order to better help its clients achieve businesssuccess. The NRI Group is also working to achieve compatible work-style reforms bypromoting various work arrangements while also fostering a business culture that enables
employees to play active roles and take on challenges, and promoting diversity.
During the three months ended 30th June 2022, the NRI Group’s revenue totaled ¥167,537 million (up17.4% year on year), amid a scenario where revenue was higher year on year in all the services,
particularly those of consulting services. Cost of sales was ¥110,230 million (up 20.5%), gross profit
was ¥57,307 million (up 12.0%), and selling, general and administrative expenses were ¥31,539 million(up 12.2%). In addition to improvement in revenue amid a favorable order environment and production
activities, ¥2,238 million of gain on sale of fixed assets was recorded in association with the sale of trust
beneficiary rights for Yokohama Nomura Building. Operating profit was ¥28,079 million (up 5.7%),
operating margin was 16.8% (down 1.9 points), and the EBITDA margin was 22.1% (down 1.4 points).
*1 Legacy system modernization refers to optimizing and updating system infrastructure andapplications with respect to hardware and software of core systems that have become obsolete.
*2 Cloud-native refers to information systems and services designed for use on a cloud-computing
platform.
Segment information
The business results by segment (revenue includes intersegment revenue) are as follows.

Consulting

Financial IT Solutions

Industrial IT Solutions

IT Platform Services
Adjustments
Total

Revenue
Operating profit
Operatingmargin
Revenue
Operating profit
Operatingmargin
Revenue
Operating profit
Operatingmargin
Revenue
Operating profit
Operatingmargin
Revenue
Operating profit
Revenue
Operating profit
OperatingmarginThree months
ended
30th June 2021
8,869
1,805

Three months
ended
30th June 2022
9,711
1,859

20.4%

(Millions of yen)
Year on year
Amount

Rate

841
53

9.5%
3.0%

19.1%

(1.2)P–

72,2459,238

81,49011,678

9,245
2,440

12.8%
26.4%

12.8%

14.3%

1.5P

–

55,057
6,694

68,841
6,679

13,783(14)25.0%(0.2)%

12.2%

9.7%

(2.5)P–

37,4305,488

40,403
5,652

2,973
164

7.9%
3.0%

14.7%

14.0%

(0.7)P–(30,956)
3,338
142,647
26,564(32,909)
2,208
167,537
28,079(1,952)(1,130)24,890
1,514

–
–
17.4%
5.7%

18.6%

16.8%

(1.9)P–-3-

(Consulting)This segment provides policy recommendations and strategy consulting, as well as business consulting
to support operational reform and system consulting for overall IT management.
Amid rapidly changing business environments for our clients following the COVID-19 pandemic,
corporate reforms using digital technology are accelerating. In addition, companies that incorporate
solutions for social issues including decarbonization into their managerial strategy are increasing, andclients have come to expect solutions for social issues using practical solutions-based consulting
services that produce concrete results.
As such, in this segment we are working to strengthen consulting to support our clients’ DX and to
appropriately respond to clients’ needs, and in the global area, we are expanding our services inadvanced countries such as the U.S. and European countries while maintaining and reinforcing theexisting client base. In addition, we are working to create new consulting services originating insolutions to social issues including decarbonization.
During the three months ended 30th June 2022, the Consulting segment posted revenue of ¥9,711
million (up 9.5% year on year), due to continued strong performance of DX-related consulting andconsulting for social issues, following the previous fiscal year. Operating profit was ¥1,859 million (up3.0%) with high productivity maintained amid a favorable order environment.
(Financial IT Solutions)
In this segment, the main clients are in the financial sector, including the securities, insurance andbanking sectors. The segment provides system consulting, system development, system management
and operation services, and IT solutions such as shared online services and BPO services.
The environment surrounding the financial sector is undergoing major structural changes such that
include a society whose population continues to age, companies from other industries newly entering
the financial sector, an expanding range of digital assets, and diminishing markets in Japan due topersistently low-interest rates and the nation’s declining population. In addition, clients’ needs for
digitalization and transformation of business models are growing rapidly.
This segment is accordingly working to create and expand new financial business platforms, promote
new DX businesses that contribute to the Digital Government Policy such as the Social Security and
Tax Number System, and stably operate global business in financial services and expand the businesses
to help its clients create new businesses and services in a manner that addresses such changes in thebusiness environment.
During the three months ended 30th June 2022, the Financial IT Solutions segment posted revenue of¥81,490 million (up 12.8% year on year), amid increases in consulting services, system development
and system application sales for the securities and insurance sectors. Operating profit was ¥11,678
million (up 26.4%) due to improvement in profitability amid a favorable order environment andproduction activities.

-4-

(Industrial IT Solutions)This segment provides IT solutions such as system consulting, system development and operation
services to the distribution, manufacturing, service and public sectors.
As well as upgrading and improving the efficiency of existing business models, clients in the industrial
sector are using DX to create new business models using digital technology since the COVID-19
pandemic.
This segment focuses on development of digital intellectual property (IP) that can be utilized acrossclients and industries, and comprehensively assists the client in everything from creating businessmodels to system construction and advancements in operations in the field of DX businesses.
Furthermore, in the global business, the NRI Group will aim to further expand the business andsustainably increase value through the enhancement of cooperation and the integration of functions
between merged subsidiaries in Australia and through M&A that contributes to expansion of the areaand strengthening of capabilities in addition to organic growth centering on merged subsidiaries inNorth America.
During the three months ended 30th June 2022, the Industrial IT Solutions segment posted revenue of¥68,841 million (up 25.0% year on year) due to the contribution of brisk projects in the Australia
business and effects of consolidation of subsidiaries in North America, which were acquired by theprevious fiscal year. Operating profit was ¥6,679 million (down 0.2%) affected by delays of the start-upof large projects in Japan and amortization of intangible assets that were identified in association withthe consolidation of overseas subsidiaries.
(IT Platform Services)
This segment mainly provides services such as the management and administration of data centers andIT platform and network architecture mainly through the Financial IT Solutions and Industrial IT
Solutions segments. It also provides IT platform solutions and information security services to clients ofvarious industries. In addition, the segment conducts explorative initiatives for the development of new
business operations and new products related to IT solutions, and investigation and research primarily
related to leading-edge information technologies.
System development in the DX era calls for use of artificial intelligence (AI), blockchains and othernew digital technologies, in conjunction with new and more rapid development approaches. In the fieldof cloud computing, companies need to comprehensively engage in high-quality operations of diverseand complex system platforms in line with their progress in cloud development. In addition, as
cyberattacks have been diversifying and evolving in recent years, the importance of cyber security
measures is increasing to safely and securely implement the introduction and utilization of cloudservices, which are central to DX of clients.
This segment is accordingly taking steps that involve expanding its multi-cloud computing services*3
and its managed services*4, and is also promoting its zero trust*5 business and managed security
services*6, in conjunction with efforts to address such changes in the business environment and develop
information system development approaches and production innovation tools for the DX era.
During the three months ended 30th June 2022, revenue to external clients increased in the DWP(Digital Work Place) business that contributes to improvement in productivity at office and the security
business, and intersegment revenue increased in the DWP business. As a result of the above, the IT
Platform Services segment posted revenue of ¥40,403 million (up 7.9% year on year) and operating
profit of ¥5,652 million (up 3.0%).
*3 Multi-cloud computing services refer to centrally managed services provided using multiple cloudcomputing platforms.
*4 Managed services refer to the services that lend comprehensive support to optimizing entire
information systems on behalf of a client’s IT unit.
*5 Zero trust refers to a new concept of security that anything that accesses to information assets andsystems to protect are verified without distinction between inside and outside of the network.
*6 Managed security services (MSS) refer to the services, provided under contract, by an external
security specialist company to provide total operation and administration of the information
security system of a company or organization.

-5-(2) Qualitative Information Regarding Consolidated Financial Position(Assets, liabilities and equity)
As of
31st March 2022
333,645456,010789,655
298,342
148,826
342,486

As of
30th June 2022
323,729
466,910790,639
281,066
154,378
355,195(Millions of yen)
Year on year
AmountRate(9,916)(3.0)%
10,900
2.4%
984
0.1%
(17,276)(5.8)%
5,551
3.7%
12,709
3.7%

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total equity
Equity attributable to339,360
351,983
12,623
3.7%
owners of parent
Ratio of equity attributableto owners of parent to total
43.0%
44.5%
1.5P
–
assetsInterest-bearing liabilities
209,627
205,296(4,331)(2.1)%
Gross D/E ratio (times)
0.62
0.58
(0.03)–Net D/E ratio (times)
0.27
0.22
(0.05)–
Notes: 1. Gross D/E ratio (gross debt-to-equity ratio): Interest-bearing liabilities / equity attributable to owners of parent
2. Net D/E ratio (net debt-to-equity ratio): (Interest-bearing liabilities – cash and cash equivalents, etc.) / equity
attributable to owners of parent
3. Interest-bearing liabilities: Bonds and borrowings + other interest-bearing liabilities (borrowings on margintransactions and borrowings secured by securities)
Borrowings on margin transactions (¥608 million as of 31st March 2022; ¥279 million as of 30th June 2022)
are included in trade and other payables on the condensed quarterly consolidated statement of financial position, andborrowings secured by securities (¥802 million as of 31st March 2022; ¥606 million as of 30th June 2022) are
included in other current liabilities on the condensed quarterly consolidated statement of financial position.
4. Cash and cash equivalents, etc.: Cash and cash equivalents + cash management purpose investment

As for the NRI Group’s financial position at the end of the first quarter (30th June 2022), current assets
were ¥323,729 million (down 3.0% from the end of the previous fiscal year), non-current assets were¥466,910 million (up 2.4%), current liabilities were ¥281,066 million (down 5.8%), non-current
liabilities were ¥154,378 million (up 3.7%), total equity was ¥355,195 million (up 3.7%), and total
assets were ¥790,639 million (up 0.1%). In addition, the gross D/E ratio (gross debt-to-equity ratio) andnet D/E ratio (net debt-to-equity ratio) at the end of the first quarter were 0.58 times and 0.22 times,
respectively.
The main changes from the end of the previous fiscal year are as follows.
Trade and other receivables decreased ¥37,459 million to ¥98,219 million and contract assets increased¥16,393 million to ¥67,059 million. Because the NRI Group has a comparatively large number ofprojects completed at the end of the fiscal year, compared with the end of the previous fiscal year, theends of quarterly periods tend to have small values for trade and other receivables and large values forcontract assets.
Goodwill and intangible assets increased ¥12,733 million to ¥223,477 million as a result of an increasein goodwill, etc. due to the weaker yen, the acquisition of intangible assets related to the development ofshared online services in Japan, and other factors.
Bonds and borrowings decreased ¥3,806 million to ¥204,410 million due largely to the redemption ofcommercial papers.
In addition, cash and cash equivalents increased ¥5,971 million to ¥121,581 million, trade and otherpayables increased ¥3,906 million to ¥57,707 million, and income taxes payable decreased ¥14,783
million to ¥5,865 million.

-6-

(Cash flow position)

Cash flows from operating
activities
Cash flows from investing
activities
Free cash flows
Cash flows from financing
activities
Net increase (decrease) incash and cash equivalents
Cash and cash equivalents
at end of period(Millions of yen)
Year on year

Three months
ended
30th June 2021

Three months
ended
30th June 2022

31,04736,348

5,301

17.1%

(25,692)(8,396)

17,296(67.3)%

5,354

27,952

22,598422.1%(4,982)(24,057)(19,075)

382.9%

267

5,971

5,704

–

153,454

121,581(31,872)(20.8)%

AmountRate

Cash and cash equivalents as of the end of the first quarter (30th June 2022) stood at ¥121,581 million(up ¥5,971 million from the end of the previous fiscal year).
Net cash provided by operating activities in the three months ended 30th June 2022 was ¥36,348
million, an increase of ¥5,301 million from the same period of the previous fiscal year, due largely to anincrease in profit from operating activities. In the same period of the previous fiscal year, we had¥12,626 million in payment for the trust-type employee stock ownership incentive plan.
Net cash used in investing activities was ¥8,396 million, a decrease of ¥17,296 million from the same
period of the previous fiscal year. In the same period of the previous fiscal year, we had ¥21,264 million
in payments for acquisition of subsidiaries due to acquisition of shares of Australia-based AustralianInvestment Exchange Limited and SQA Holdco Pty Ltd. In the three months ended 30th June, 2022,
cash was mainly invested in the acquisition of intangible assets related to the development of shared
online services.
Net cash used in financing activities was ¥24,057 million, an increase of ¥19,075 million from the same
period of the previous fiscal year. In the same period of the previous fiscal year, we had ¥64,595 million
in net increase (decrease) in short-term borrowings (revenue) since a loan was taken out to conduct
M&A and purchase of treasury shares and ¥50,052 million in purchase of treasury shares in accordancewith a resolution of the Board of Directors. During the three months ended 30th June 2022, we had¥10,000 million in net increase (decrease) in commercial paper (payments). Other expenditures mainly
consist of payments of cash dividends in the respective fiscal periods.

-7-

2.

Condensed Quarterly Consolidated Financial Statements, Etc.
(1)

Condensed Quarterly Consolidated Statement of Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other financial assets
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill and intangible assets
Investments accounted for using equity method
Retirement benefit asset
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

¥

¥

－8－

(Millions of yen)
31st March
30th June
2022
2022

115,610
135,678
50,666
14,015
13,246329,217
4,428
333,645
37,48238,969210,7446,427
85,383
69,2195,426
2,356
456,010789,655¥¥

121,581
98,21967,05917,793
19,075
323,729－
323,72937,751
37,203
223,477
6,445
85,69168,7345,554
2,051
466,910790,639

(Millions of yen)
31st March
30th June
2022
2022
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Bonds and borrowings
Lease liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

¥

¥
¥

¥

－9－

53,80017,083116,941
12,25027,675
20,6482,646
47,294
298,342
91,27529,952
3,313
7,561
3,576
10,222
2,925
148,826
447,168
22,41428,277
328,830(68,809)28,647339,360
3,126
342,486
789,655¥¥¥¥

57,707
14,795
112,722
11,39238,0885,865
2,555
37,939281,066
91,68728,604
4,278
7,683
3,597
17,070
1,455
154,378435,444
22,41428,974
334,550(65,961)
32,005351,983
3,212
355,195
790,639(2)Condensed Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)
Year ended 30th Year ended 30th
June 2021
June 2022

Revenue
Cost of sales
Gross profit¥

142,647
91,46851,178¥167,537
110,230
57,307

Selling, general and administrative expenses
Share of profit of investments accounted for using equity method
Other income
Other expenses
Operating profit

28,10323
3,472
526,564

31,53986
2,284
60
28,079Finance income
Finance costs
Profit before tax

656
483
26,737928
1,218
27,789

Income tax expenses
Profit8,266
18,471

8,941
18,848206(1,098)16
222

1(1,097)

0

(0)

1,049
(1,106)

3,427
1,081

Other comprehensive income
Items that will not be reclassified to profit or loss
Equity instruments measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Debt instruments measured at fair value through other comprehensive
incomeExchange differences on translation of foreign operations
Cash flow hedges
Share of other comprehensive income of investments accounted forusing equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income, net of tax
Comprehensive income

10

(27)

(45)
176
18,647

4,482
3,385
22,233

Profit attributable to:
Owners of parent
Non-controlling interests
Profit18,411
59
18,471

18,762
86
18,848Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

18,58859
18,647

22,147
86
22,233¥

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

¥

－10－

30.57
30.46

¥

¥

31.80
31.76

(3)

Condensed Quarterly Consolidated Statement of Changes in Equity

For the three months ended 30th June 2021

(Millions of yen)
Equity attributable to owners of parent

Share capital Capital surplus
Balance at 1st April
2021¥

21,175¥Retainedearnings

26,696¥ 278,675¥

TreasurysharesOther
components ofequity(15,027)¥

18,975

Noncontrollinginterests

Total¥

330,495

¥

2,711

Total
¥

333,206

Profit－－18,411－－

18,411

59

18,471Other comprehensive
income

－

－

－

－

176

176

－

176

Total comprehensive
income－－18,411－

176

18,58859

18,647

Dividends－－(11,465)－－(11,465)－(11,465)

－

(52)

－

(50,002)－(50,055)－(50,055)

－

71

－

1,852

－

1,924

－

1,924

－

376

－

－

－

376

－

376

－

45

(45)

－

－

－

－

－

－

－

17

－

(17)

－

－

－

Other

－

－

－

－

(34)

(34)

(0)

(35)

Total transactions
with owners, etc.

－441

(11,494)(48,149)(51)(59,255)(0)(59,255)

27,138¥ 285,592

Purchase of treasury
shares
Disposal of treasury
sharesShare-based paymenttransactions
Transfer from retained
earnings to capitalsurplusTransfer from othercomponents of equity
to retained earnings

Balance at 30th June
2021¥

21,175¥¥－11－(63,177)¥

19,100¥289,828

¥

2,770

¥

292,598

For the three months ended 30th June 2022

(Millions of yen)
Equity attributable to owners of parent

Share capital Capital surplus
Balance at 1st April
2022¥

22,414¥Retainedearnings

28,277¥ 328,830¥

TreasurysharesOther
components ofequity(68,809)¥28,647

Noncontrollinginterests

Total¥

339,360

¥

3,126

Total
¥

342,486

Profit－－18,762－－

18,762

86

18,848Other comprehensive
income

－

－

－

－

3,385

3,385

－

3,385

Total comprehensive
income－－18,762－

3,385

22,147

86

22,233

Dividends－－(12,381)－－(12,381)－(12,381)

－

－

－

(0)

－

(0)

－

(0)

－

(393)

－

2,849

－

2,455

－

2,455

－

462

－

－

－

462

－

462

－

628

(628)

－

－

－

－

－

－

－

(33)

－

33

－

－

－

Other

－

－

－

－

(60)

(60)

－

(60)

Total transactions
with owners, etc.

－696

(13,042)

2,848

(27)

(9,524)－(9,524)28,974¥ 334,550

Purchase of treasury
shares
Disposal of treasury
sharesShare-based paymenttransactions
Transfer from retained
earnings to capitalsurplusTransfer from othercomponents of equity
to retained earnings

Balance at 30th June
2022¥

22,414¥¥－12－(65,961)¥

32,005¥351,983

¥

3,212

¥

355,195

(4)Condensed Quarterly Consolidated Statement of Cash Flows

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss (gain) on sale and retirement of fixed assets
Finance income
Finance costs
Share of loss (profit) of investments accounted for using equity
methodDecrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in liabilities relating to trust-type employee
stock ownership incentive plan
Increase (decrease) in provision for loss on orders received
Increase (decrease) in accounts payable - bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities－13－(Millions of yen)
Year ended 30th Year ended 30th
June 2021
June 2022¥¥

26,737
10,265(3,317)
(656)
483

¥

27,78911,229(2,201)
(928)
1,218

(23)

(86)

32,775(1,291)323(2,193)(5,283)(1,563)38,880(16,036)369(1,518)4,205(2,416)(12,626)

(71)

(244)
(11,960)
(842)
164
7,964
38,711479(147)(7,995)31,047(76)(12,095)
(307)
113
7,485
55,551
492(292)(19,402)36,348¥(Millions of yen)
Year ended 30th Year ended 30th
June 2021
June 2022
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investments
Proceeds from sale and redemption of investments
Payments for acquisition of subsidiaries
Payments for loans receivable
Other
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Net increase (decrease) in commercial paper
Repayments of lease liabilities
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－14－

¥

¥

(772)
456
(1,362)
10,380(7,243)(71)
9(21,264)(5,813)(9)(25,692)
64,595－(1,681)(5,000)(3,284)
1,887(50,052)(11,446)(0)(4,982)(105)
267
153,187
153,454¥¥(3,516)524(2,632)
6,920(9,633)
(96)
60
－
－
(22)
(8,396)(613)
1,922(2,126)(10,000)(3,277)2,397(0)(12,359)－(24,057)
2,076
5,971
115,610
121,581(5) Notes to Condensed Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Segment Information)(1) Outline of reportable segments
The NRI Group’s operating segments, for which separate financial information is available, are evaluatedperiodically by management in deciding the allocation of management resources and in assessing businessperformances. The NRI Group has classified its segments, comprehensively considering services,
customers and markets totally, and four segments have been determined as reportable segments.
Meanwhile, the operating segments are not aggregated.
Accounting treatment of the reported operating segments is generally same with that of consolidated
financial statements for the year ended 31st March 2022. Profit figures for the reportable segments arepresented on the basis of operating profit. Intersegment revenue or transfers are based on prevailing market
prices.
(Consulting)This segment provides policy recommendations and strategy consulting, as well as business consulting tosupport operational reform and system consulting for overall IT management.
(Financial IT Solutions)
In this segment, the main clients are in the financial sector, including the securities, insurance and banking
sectors. The segment provides system consulting, system development, system management and operation
services, and IT solutions such as shared online services and BPO services.
(Industrial IT Solutions)This segment provides IT solutions such as system consulting, system development, and systemmanagement and operation services to the distribution, manufacturing, service and public sectors.
(IT Platform Services)
This segment mainly provides services such as the management and administration of data centers and IT
platform and network architecture mainly through the Financial IT Solutions and Industrial IT Solutions
segments. It also provides IT platform solutions and information security services to clients of various
industries. In addition, the segment conducts explorative initiatives for the development of new business
operations and new products related to IT solutions, and investigation and research primarily related toleading-edge information technologies.
The segment of Consulting is consulting services, the segments of Financial IT Solutions and Industrial IT
Solutions are consulting services, system development & system application sales, system management &operation services and product sales and the segment of IT Platform Services is system development &system application sales, system management & operation services and product sales.

－15－(2) Revenue and profit or loss by reportable segment
For the three months ended 30th June 2021

Consulting
Revenue
Revenue from externalcustomers
Intersegment revenue ortransfers
Total
Operating profit
Finance income
Finance costs

Reportable segment
Financial IT Industrial IT IT Platform
Solutions
Solutions
Services(Millions of yen)
Total

Adjustments
Consolidated(Note)

8,603

71,18953,556

9,297

142,647－

142,647

266

1,056

1,501

28,132

30,956(30,956)

－

8,869
1,805

72,2459,238

55,057
6,694

37,430
5,488

173,603
23,226(30,956)
3,338

142,647
26,564
656
483

Profit before tax

26,737

Note: Individual items in adjustment to operating profit of ¥3,338 million include gain on sale of fixed assets in the amount of¥3,337 million recorded in “other income”.

For the three months ended 30th June 2022

Consulting
Revenue
Revenue from externalcustomers
Intersegment revenue ortransfers
Total
Operating profit
Finance income
Finance costs

Reportable segment
Financial IT Industrial IT IT Platform
Solutions
Solutions
Services(Millions of yen)
Total

Adjustments
Consolidated(Note)

9,382

80,10966,767

11,278167,537－

167,537

328

1,381

2,074

29,12532,909(32,909)

－

9,711
1,859

81,49011,67868,841
6,679

40,403
5,652

200,447
25,870(32,909)
2,208

167,537
28,079928
1,218

Profit before tax

27,789Note: Individual items in adjustment to operating profit of ¥2,208 million include gain on sale of fixed assets in the amount of¥2,238 million recorded in “other income”.

－16－(Earnings per Share)
Basic earnings per share and diluted earnings per share are calculated based on the following data.
Year ended 30thYear ended 30th
June 2021
June 2022(Millions of yen) (Millions of yen)
18,411
18,762－－

Profit attributable to owners of parent
Adjustments of profit
Profit used for calculation of diluted earnings per share
Weighted-average number of shares of common stock outstanding
Increase in common stock
Increase from stock options
Diluted weighted-average number of shares of common stock
Basic earnings per share
Diluted earnings per share

18,411

18,762(Shares)602,370,868(Shares)
589,959,435

1,994,178
604,365,046

832,224
590,791,659

(Yen)
30.57
30.46

(Yen)
31.80
31.76

Note: For the purpose of calculating basic earnings per share and diluted earnings per share, the Company’s shares owned by thetrust exclusive for ESOP Group are included in treasury shares to be deducted in the calculation of the weighted-average
number of shares (2,929,246 shares and 1,388,605 shares for the three-month periods ended 30th June, 2021 and 2022,
respectively).

(Subsequent Events)
Issuance of new shares as restricted stock-based remuneration
At its Board of Directors’ meeting held on 17th June 2022, the Company resolved to issue new shares as restricted
stock-based remuneration and finalized the arrangements for payment on 15th July 2022.
Outline of share issuance(a) Type and number of shares to be issued(b) Issue price(c) Total issue value(d) Paid-in capital(e) Total paid-in capital(f) Eligible recipients, number of recipients andnumber of shares to be allocated(g) Payment date

656,700 common shares¥3,745 per share¥2,459,341,500¥1,873 per share¥1,229,999,100
Members of the Board (excluding Outside Directors):
6 individuals, 106,200 shares
Senior Managing Directors and other employees (thosetreated as executives): 48 individuals, 550,500 shares
15th July 2022－17－