27th July 2023

Consolidated Financial Results
for the Three Months Ended 30th June 2023
(Under IFRS)
Company name:
Listing:
Securities code:
URL:
Representative:

Nomura Research Institute, Ltd.
Tokyo Stock Exchange
4307
https://www.nri.com/jp/
Shingo Konomoto, President & CEO, Chairman, Member of the Board, Representative
Director
Inquiries:
Daishi Sakakihara, General Manager, Controller’s Department
Telephone:+81-3-5533-2111
Scheduled date to file quarterly securities report:
10th August 2023–
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 2023
(from 1st April 2023 to 30th June 2023)(1) Consolidated operating results (cumulative)
RevenueThree months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit before tax

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

30th June 2023

176,709

5.5

27,027(3.7)

26,580(4.4)

17,294(8.2)

30th June 2022

167,537

17.4

28,0795.7

27,7893.9

18,8482.0

Profit attributable toowners of parent

Total comprehensive
incomeBasic earnings
per share

Diluted earnings
per share

Millions of yen%

Millions of yen

%

Yen

Yen

30th June 2023

17,210(8.3)

22,377

0.6

29.15

29.14

30th June 2022

18,762

1.9

22,233

19.2

31.80

31.76

Equity attributable toowners of parent

Ratio of equity
attributable to owners ofparent to total assets

Three months ended(2) Consolidated financial position
Total assets
As ofTotal equity

Millions of yen

Millions of yen

Millions of yen

30th June 2023

841,036

394,695

391,73246.6%

31st March 2023

838,224

402,406

399,006

47.6

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
31st March 2023
Fiscal year ending
31st March 2024–

Fiscal year-end

Total

Yen

Yen

22.00

–

23.00

45.00

24.00

–

24.00

48.00

–

Fiscal year ending
31st March 2024
(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 2024
(from 1st April 2023 to 31st March 2024)(Percentages indicate year-on-year changes.)

RevenueSix months ending
30th September 2023
Fiscal year ending
31st March 2024

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

350,000

3.2

56,0001.3

55,0002.3

37,0003.2

720,000

4.0

117,000

4.6

115,000

6.0

78,0002.2

Basic earnings
per share
Yen

Six months ending
30th September 2023
Fiscal year ending
31st March 2024

Profit attributable toowners of parent

Profit before tax

62.68
132.13

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 2023

593,652,242 shares

As of 31st March 2023

593,652,242 shares(ii) Number of treasury shares at the end of the period
As of 30th June 2023

6,446,349 shares

As of 31st March 2023

1,959,169 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended 30th June 2023

590,343,055 shares

Three months ended 30th June 2022
589,959,435 shares
Note: The Company’s shares held by the trust exclusive for NRI Group Employee Stock Ownership Group are included
in treasury 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 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 2022
167,537
31,45418.8%
25,84028,07916.8%
22.1%
27,789Three months
ended
30th June 2023
176,70929,265
16.6%
27,02727,027
15.3%
21.9%
26,580(Millions of yen)
Year on year
AmountRate

Revenue
9,171
5.5%
Overseas revenue(2,188)(7.0)%
Overseas revenue ratio(2.2)P–
Business profit
1,187
4.6%
Operating profit(1,051)(3.7)%
Operating margin(1.5)P–
EBITDA margin(0.2)P–
Profit before tax(1,209)(4.4)%
Profit attributable to owners
18,762
17,210(1,551)(8.3)%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 2023, there were concerns about the downside risks posed to
the global economy by the impact of global monetary tightening, rising prices, and other factors. Due toimprovements in the employment environment and the effects of various policies, the Japanese
economy experienced a modest recovery in business conditions. Information system investment
continued to see strong activity centered on digital transformation (DX) which involves transforming
business processes and business models using digital technologies. However, amid the continued global
monetary tightening and others, various uncertainties, such as rapid exchange-rate fluctuations andrising prices, in addition to risks of a downswing in overseas business conditions posed to the domestic
economy, continue to cloud the outlook. Furthermore, corporate investments may be limited depending
on changes in future business performance.
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 IT
solutions.
In order to realize the goals of NRI Group Vision 2030, the NRI Group’s long-term management plan,in April 2023 the Group formulated the three-year first half plan as “the NRI Group Medium-termManagement Plan (2023-2025)” (“MTP2025”). The MTP2025 establishes four pillars for the growthstrategy in the areas of Core Business, Strengthen DX, Global, and Management. Through co-creation
with clients we seek to achieve sustainable growth for the NRI Group and create a sustainable society.
MTP2025 Pillars of growth strategy(1) Core Business: We will deepen and expand core domains to further deepen value creation withclients via Con-solutions (a business model that generates ongoing value for clients by having
consulting and solutions run side-by-side from the planning and concept stages of business IT).
At the same time, we will strengthen these core domains by expanding business platforms anddriving radical innovations in productivity to achieve overwhelming competitiveness and highadded value(2) Strengthen DX: In addition to transforming existing client business processes and infrastructure(DX 1.0), and transforming business models themselves (DX 2.0), we will take on the challengeof DX 3.0 to go beyond companies and industries and make an impact on society as a whole-2-(3) Global: In addition to Japan, Asia and Australia, we will expand into the vast and rapidly
growing market of North America to establish a framework for business operation based on
three regional pillars(4) Management: We will make great investments in human capital, strengthen sustainability
management and expand environmental efforts, as well as further consolidating ourmanagement platform
During the three months ended 30th June 2023, the NRI Group’s revenue totaled ¥176,709 million (up5.5% year on year), amid a scenario where revenue of every business segment was higher year on year.
Cost of sales was ¥113,538 million (up 3.0%), gross profit was ¥63,170 million (up 10.2%), and selling,
general and administrative expenses were ¥35,342 million (up 12.1%). Despite strength in core businessand DX projects, predominantly in Japan, such factors as the disappearance of ¥2,238 million in gain onsale of fixed assets associated with trust beneficiary rights for Yokohama Nomura Building that wasrecorded in the same period of the previous fiscal year, declines in the profitability of the overseas
business, and expenses of ¥971 million associated with changes in fair value of contingent
consideration*1 at a company acquired in Australia, resulted in operating profit of ¥27,027 million(down 3.7% year on year). The operating margin was 15.3% (down 1.5 points) and the EBITDA margin
was 21.9% (down 0.2 points).
*1 Contingent consideration: a method of adjusting purchase consideration in an M&A, whereby inaddition to purchase consideration paid at the time the deal is closed, additional purchaseconsideration is also paid after a certain period of time has elapsed in accordance with the degree towhich the company in question achieves certain business performance targets during such period.
Purchase of treasury shares
At a meeting held on 27th April 2023, the Board of Directors of the Company passed a resolution topurchase treasury shares as part of a nimble equity policy aimed at improving capital efficiency andresponding to changes in the business environment.
The Company is to purchase a maximum total of 20,000,000 shares (percentage of total number ofshares issued as of 31st March 2023 (excluding treasury shares): 3.38%) for a maximum total purchaseprice of ¥50,000 million. The purchase period is from 17th May 2023 to 30th November 2023, and thepurchase method will entail market purchases on the Tokyo Stock Exchange based on discretionary
trading contract pertaining to the purchase of treasury shares (excludes the period from 29th May 2023
to 27th July 2023 or during the ten business days from the business day following the date ofannouncement of the Company’s quarterly financial results). During the three months ended 30th June
2023, the Company purchased treasury shares (1,983,200 shares, ¥7,138 million).
At the meeting held on 27th April 2023, the Board of Directors also passed a resolution to reintroduce a
Trust-type Employee Stock Ownership Incentive Plan, and during the first quarter the trust exclusive
for NRI Group Employee Stock Ownership Group purchased treasury shares (2,621,700 shares, ¥9,952
million).

-3-

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 2022
9,711
1,859

Three months
ended
30th June 2023
10,965
2,147

19.1%

(Millions of yen)
Year on year
Amount

Rate

1,254
287

12.9%
15.5%

19.6%

0.4P

–

81,49011,67884,681
12,172

3,190
493

3.9%
4.2%

14.3%

14.4%

0.0P

–

68,694
6,667

71,001
5,890

2,307
(776)

3.4%
(11.6)%

9.7%

8.3%

(1.4)P

–

39,952
5,598

43,962
6,750

4,009
1,151

10.0%
20.6%

14.0%

15.4%

1.3P

–

(32,311)2,275
167,537
28,079(33,900)67
176,709
27,027(1,589)(2,208)9,171(1,051)––
5.5%(3.7)%

16.8%

15.3%

(1.5)P–

Note: The segment classifications are partially changed for the three months ended 30th June 2023, and the figures for thethree months ended 30th June 2022 are based on the classifications after these changes.

(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 its clients, corporate reforms using digital technology
are accelerating. In addition, companies that incorporate solutions for social issues including
decarbonization into their managerial strategy are increasing, and clients have come to expect solutions
for social issues using practical solutions-based consulting services that produce concrete results.
As such, in this segment the NRI Group is strengthening consulting to provide support for client DX,
and working to appropriately respond to clients’ needs. In addition to offering practical solutions-based
consulting services to provide ongoing support for client reengineering, we will further strengthen
cooperation between consulting and IT solutions with the aim of expanding our area of business. We
are also moving forward with initiatives aimed at resolving social issues such as decarbonization, and at
creating new consulting services related to generative AI.
During the three months ended 30th June 2023, the Consulting segment posted revenue of ¥10,965
million (up 12.9% year on year), due to a boost in DX-related and social issues projects. Operating
profit was ¥2,147 million (up 15.5%) due to improvement in profitability amid a favorable orderenvironment.
(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 accelerates to age, industry reorganizations and the entry of newparticipants, an expanding range of digital assets, and diminishing markets in Japan due to persistently
low-interest rates and the nation’s declining population. In addition, clients’ needs for digitalization andtransformation of business models are growing rapidly.
This segment is accordingly working to create and expand new financial business platforms, promoteSocial DX businesses 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 andservices in a manner that addresses such changes in the business environment.
-4-During the three months ended 30th June 2023, the Financial IT Solutions segment posted revenue of¥84,681 million (up 3.9% year on year), amid increases in system development & system application
sales for the banking sector and system management & operation services for the securities sector.
Despite worsening profitability overseas, operating profit was ¥12,172 million (up 4.2%) due toimprovement in profitability amid a favorable order environment and production activities, etc. inJapan.
(Industrial IT Solutions)This segment provides IT solutions such as system consulting, system development, systemmanagement 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.
This segment focuses on expansion and enhancement of digital intellectual property (IP) that can beutilized across clients and industries, and provides comprehensive assistance to the client in everythingfrom creating business models to system construction, and driving operational improvements in the areaof DX business. In terms of the global business, the aim is to achieve stable growth and enhance
profitability in Australia through greater cooperation within the NRI Group, and to use the know-how
developed in Australia in North America to expand services and scale up the business infrastructure.
During the three months ended 30th June 2023, the Industrial IT Solutions segment posted revenue of¥71,001 million (up 3.4% year on year) due to brisk orders for projects in the domestic distributionsector and service sector, etc. Despite improved profitability in Japan, operating profit came to ¥5,890
million (down 11.6%) due to such factors as declines in orders and operating rates in North America,and expenses associated with changes in fair value of contingent consideration at a company acquired inAustralia.
(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 sectors. 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 AI and other new digital technologies, in conjunction
with new and more rapid development approaches. In the field of cloud computing, companies need tocomprehensively engage in high-quality operations of diverse and complex system platforms. In
addition, as cyberattacks have been diversifying and evolving in recent years, the importance of cybersecurity measures is increasing to safely and securely implement the introduction and utilization ofcloud services, which are central to DX of clients.
This segment is accordingly working on expanding its multi-cloud computing services*2 and its
managed services*3, and promoting its zero trust*4 business and managed security services*5, in
conjunction with efforts to address such changes in the business environment and promote radical
innovations in productivity through such initiatives as overhauling development frameworks andleveraging AI in development processes.
During the three months ended 30th June 2023, revenue from external clients in the security businessincreased due to rising demand for security arising from increased use of cloud services and otherfactors. Intersegment revenue in the cloud business and network businesses increased as a result of brisk
business in Financial IT Solutions and Industrial IT Solutions. As a result of the above, the IT Platform
Services segment posted revenue of ¥43,962 million (up 10.0% year on year) and operating profit of¥6,750 million (up 20.6%).
*2 Multi-cloud computing services refer to centrally managed services provided using multiple cloudcomputing platforms.
*3 Managed services refer to the services that lend comprehensive support to optimizing entire
information systems on behalf of a client’s IT unit.
*4 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.
*5 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 2023
349,102489,122838,224
198,247
237,570
402,406

As of
30th June 2023
331,706
509,330
841,036
180,133
266,208
394,695(Millions of yen)
Year on year
AmountRate(17,395)(5.0)%
20,208
4.1%
2,812
0.3%
(18,114)(9.1)%
28,63812.1%(7,711)(1.9)%

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total equity
Equity attributable to399,006
391,732(7,273)(1.8)%
owners of parent
Ratio of equity attributableto owners of parent to total
47.6%
46.6%
(1.0)P–
assetsInterest-bearing liabilities
205,823
223,045
17,221
8.4%
Gross D/E ratio (times)
0.52
0.57
0.05
–
Net D/E ratio (times)
0.19
0.21
0.03
–
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 (¥1,284 million as of 31st March 2023; ¥511 million as of 30th June 2023) are
included in trade and other payables on the condensed quarterly consolidated statement of financial position, andborrowings secured by securities (¥1,578 million as of 31st March 2023; ¥1,153 million as of 30th June 2023) 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 2023), current assets
were ¥331,706 million (down 5.0% from the end of the previous fiscal year), non-current assets were¥509,330 million (up 4.1%), current liabilities were ¥180,133 million (down 9.1%), non-current
liabilities were ¥266,208 million (up 12.1%), total equity was ¥394,695 million (down 1.9%), and total
assets were ¥841,036 million (up 0.3%). 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 0.57 times and 0.21 times,
respectively.
The main changes from the end of the previous fiscal year are as follows.
Trade and other receivables decreased ¥33,974 million to ¥97,618 million and contract assets increased¥4,430 million to ¥60,410 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 ¥15,841 million to ¥253,125 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 system in Japan, and other factors.
Bonds and borrowings increased ¥18,418 million to ¥221,380 million due largely to borrowings
associated with the reintroduction of the Trust-type Employee Stock Ownership Incentive Plan in May
2023.
In addition, cash and cash equivalents increased ¥8,090 million to ¥137,347 million, trade and otherpayables decreased ¥14,467 million to ¥37,661 million, income taxes payable decreased ¥7,417 million
to ¥5,676 million, and treasury shares increased ¥16,696 million to ¥22,974 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 2022

Three months
ended
30th June 2023

36,34843,491

7,142

19.7%

(8,396)(15,878)(7,481)

89.1%

27,952

27,613(338)(1.2)%(24,057)(21,444)2,612(10.9)%

5,971

8,090

2,119

35.5%

121,581

137,347

15,765

13.0%

AmountRate

Cash and cash equivalents as of the end of the first quarter (30th June 2023) stood at ¥137,347 million(up ¥8,090 million from the end of the previous fiscal year).
Net cash provided by operating activities was ¥43,491 million, an increase of ¥7,142 million from thesame period of the previous fiscal year, due largely to a decrease in income taxes paid.
Net cash used in investing activities was ¥15,878 million, an increase of ¥7,481 million from the same
period of the previous fiscal year. In the same period of the previous fiscal year, proceeds from sale of
fixed assets were provided due to the sale of trust beneficiary rights for Yokohama Nomura Building. In
the three months ended 30th June 2023, cash was mainly invested in the acquisition of intangible assets
related to the development of shared online system.
Net cash used in financing activities was ¥21,444 million, a decrease of ¥2,612 million from the same
period of the previous fiscal year. In the same period of the previous fiscal year, we had ¥10,000 million
in net increase (decrease) in commercial paper (payments). In the three months ended 30th June 2023,
there were proceeds from long-term borrowings of ¥18,000 million and purchase of treasury shares of¥9,952 million associated with the reintroduction of the Trust-type Employee Stock Ownership
Incentive Plan in May 2023. In addition, the NRI Group had ¥7,138 million in purchase of treasury
shares in accordance with a resolution of the Board of Directors. 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
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(Millions of yen)
31st March
30th June
2023
2023

¥

¥

－8－

129,257
131,592
55,98014,201
18,070349,10242,11431,877237,283
9,527
89,71070,8385,671
2,098
489,122838,224¥¥

137,347
97,61860,41017,016
19,313331,706
42,14433,301
253,1259,536
88,72073,993
5,905
2,603
509,330
841,036(Millions of yen)
31st March
30th June
2023
2023
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－

52,12917,122
20,235
9,364
31,294
13,093
1,027
53,979198,247
182,725
25,420
1,615
7,086
4,932
14,0501,739
237,570
435,817
23,64429,447
321,676(6,277)30,514
399,006
3,399
402,406
838,224¥¥¥¥

37,661
17,152
16,568
10,90452,194
5,676
794
39,181
180,133
204,81125,182
2,416
7,307
4,834
19,734
1,922
266,208446,341
23,64430,422
325,064(22,974)
35,575
391,732
2,962
394,695
841,036(2)Condensed Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)Three months
Three months
ended 30th
ended 30th
June 2022
June 2023¥ 167,537¥ 176,709
110,230
113,538
57,307
63,170

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

31,53986
2,284
60
28,07935,342
147
90
1,039
27,027

Finance income
Finance costs
Profit before tax

928
1,218
27,7891,032
1,479
26,580

Income tax expenses
Profit8,941
18,8489,286
17,294(1,098)

1,822

1

7

－

(0)

(1,097)

1,829

(0)

0

3,427
1,081

2,488
772

(27)

(7)

¥

4,482
3,385
22,233

¥

3,253
5,083
22,377¥

18,762
86
18,848¥17,21083
17,294¥

22,147
86
22,233¥22,293
83
22,377

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
Share of other comprehensive income of investments accounted forusing equity method
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
Profit attributable to:
Owners of parent
Non-controlling interests
ProfitComprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

¥
－10－

31.80
31.76

¥

29.15
29.14

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
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¥¥－11－(65,961)¥

32,005¥351,983

¥

3,212

¥

355,195

For the three months ended 30th June 2023

(Millions of yen)
Equity attributable to owners of parent

Share capital Capital surplus
Balance at 1st April
2023¥

23,644¥Retainedearnings

29,447¥ 321,676

Treasuryshares¥(6,277)

Other
components ofequity¥30,514

Noncontrollinginterests

Total¥

399,006

¥

3,399

Total
¥

402,406

Profit－－17,210－－17,21083

17,294

Other comprehensive
income

－

－

－

－

5,083

5,083

－

5,083

Total comprehensive
income－－17,210－

5,083

22,293

83

22,377

Dividends－－(13,608)－－(13,608)(133)(13,742)

－

(7)

－

(17,091)－(17,098)－(17,098)

－

(226)

－

394

－

167

－

167

－

605

－

－

－

605

－

605

－

215

(215)

－

－

－

－

－

－

－

1

－

(1)

－

－

－

Other

－

387

－

－

(20)

367

(387)

(20)

Total transactions
with owners, etc.

－974

(13,823)(16,696)(21)(29,567)(521)(30,088)

30,422¥ 325,064

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
2023¥

23,644¥¥－12－(22,974)¥

35,575¥

391,732

¥

2,962

¥

394,695

(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)Three months
Three months
ended 30th
ended 30th
June 2022
June 2023¥¥

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

¥

26,58011,7198(1,032)
1,479

(86)

(147)

38,880(16,036)369(1,518)4,826(2,416)35,940(3,982)526(810)(14,973)
(80)

(71)

(1,820)(76)(12,095)
(307)
113
6,863
55,551
492(292)(19,402)36,348(341)(14,317)990
209
17,14957,099834(1,143)(13,298)
43,491¥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
Proceeds from sale of intangible assets
Purchase of investments
Proceeds from sale and redemption of investments
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
Payments for acquisition of interests in subsidiaries from noncontrolling 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－(Millions of yen)Three months
Three months
ended 30th
ended 30th
June 2022
June 2023¥¥(3,516)524(2,632)
6,920(9,633)
－
(96)
60
(22)
(8,396)¥(1,011)
1,061(3,809)12(12,107)
0
(2)
－
(22)
(15,878)

(613)
1,922
(2,126)(10,000)(3,277)2,397(0)(12,359)－(1,837)18,000(3,396)－(2,896)
157(17,108)(13,675)
(133)

－

(555)

(24,057)
2,076
5,971
115,610
121,581(21,444)
1,921
8,090
129,257
137,347¥

(5) Notes to Condensed Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Change in Presentation)
Condensed Quarterly Consolidated Statement of Financial Position
To reflect the actual situation of transactions more appropriately, certain accrued expenses, etc. which were
included in “trade and other payables” as of 31st March 2023 are currently included in “other financial
liabilities”. To reflect these changes in presentation, ¥3,552 million included in “trade and other payables” as of
31st March 2023 has been reclassified as “other financial liabilities”.
Condensed Quarterly Consolidated Statement of Cash FlowsTo reflect the actual situation of transactions more appropriately, certain accrued expenses, etc. which were
included in “increase (decrease) in trade and other payables” for the three months ended 30th June 2022 arecurrently included in “other”. To reflect these changes in presentation, ¥ (621) million included in “increase(decrease) in trade and other payables” for the three months ended 30th June 2022 has been reclassified as“other”.
(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 2023. 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.
－15－

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.
(2) Revenue and profit or loss by reportable segment
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

80,10966,627

10,868

166,988548

167,537

328

1,381

2,066

29,08432,860(32,860)

－

9,711
1,859

81,49011,67868,694
6,667

39,952
5,598

199,849
25,803(32,311)2,275

167,537
28,079928
1,218

Profit before tax

27,789Note: Individual items in adjustment to operating profit of ¥2,275 million include gain on sale of fixed assets in the amount of¥2,238 million recorded in “other income”.

For the three months ended 30th June 2023

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

Total

Adjustments
Consolidated(Notes)

10,65583,40869,426

12,489

175,979730

176,709

310

1,272

1,575

31,473

34,631(34,631)－

10,9652,147

84,681
12,17271,001
5,890

43,962
6,750

210,610
26,960(33,900)67

176,709
27,027
1,032
1,479

Profit before tax
Notes:(Millions of yen)

26,5801. Individual items included in adjustment of operating profit are immaterial.
2. The segment classifications are partially changed for the three months ended 30th June 2023, and the figures for the threemonths ended 30th June 2022 are based on the classifications after these changes.

－16－(Per Share Information)
Basic earnings per share and diluted earnings per share are calculated based on the following data.

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

Three months
ended 30th
June 2022(Millions of yen)
18,762－Three months
ended 30th
June 2023(Millions of yen)
17,210－18,762

17,210(Shares)
589,959,435(Shares)
590,343,055

832,224
590,791,659

375,571590,718,626

(Yen)
31.80
31.76

(Yen)
29.15
29.14

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 (1,388,605 shares and 513,911 shares for the three-month periods ended 30th June, 2022 and 2023,
respectively).

(Subsequent Events)
Issuance of new shares as restricted stock-based remuneration
At its Board of Directors’ meeting held on 23rd June 2023, the Company resolved to issue new shares as restricted
stock-based remuneration and finalized the arrangements for payment on 21st July 2023.
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

514,800 common shares¥4,103 per share¥2,112,224,400¥2,052 per share¥1,056,369,600
Members of the Board (excluding Outside Directors):
6 individuals, 95,300 shares
Senior Managing Directors and other employees (thosetreated as executives): 47 individuals, 419,500 shares
21st July 2023

－17－