Consolidated Financial Results
for the Nine Months Ended 31st December 2022
(Under IFRS)

30th January 2023

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:
Teijiro Matsui, General Manager, Controllers & Operation Department
Telephone:+81-3-5533-2111
Scheduled date to file quarterly securities report:
13th February 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 nine months ended 31st December 2022
(from 1st April 2022 to 31st December 2022)(1) Consolidated operating results (cumulative)
Revenue
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen%

Millions of yen

31st December 2022

516,059

15.2

31st December 2021

447,947

10.8

Profit attributable toowners of parent
Nine months ended

Profit before tax%

Millions of yen

83,873

3.1

81,372

27.2

Total comprehensive
incomeProfit%Millions of yen

81,4442.0

55,2671.2

79,85235.9

54,596

36.4

Basic earnings
per share%

Diluted earnings
per share

Millions of yen%

Millions of yen

%

Yen

Yen

31st December 2022

55,033

1.3

55,682

(2.8)

93.09

93.00

31st December 2021

54,31435.8

57,293

22.6

91.50

91.32

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%

31st December 2022

846,169

395,898

392,53946.4

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

–

19.00

–

–

22.00

–

Fiscal year-end

Fiscal year ending
31st March 2023
(Forecast)

Total

Yen

Yen

21.00

40.00

23.00

45.00

Note: Revisions to the forecast of cash dividends most recently announced: Yes
For more details, please refer to “1. (3) Qualitative Information Regarding Forecasts of Financial Results,” on pages 9-10.

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.)

Revenue
Fiscal year ending
31st March 2023

Operating profit

Profit attributable toowners of parent

Profit before tax

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

690,000

12.8

115,000

8.3

113,000

8.0

77,000

7.8

Basic earnings
per share
Yen

Fiscal year ending
31st March 2023

130.25

Note: Revisions to the forecast of financial results most recently announced: None
However, the Company has made revisions to the breakdown of consolidated revenue, which was disclosed as reference
values. For more details, please refer to “1. (3) Qualitative Information Regarding Forecasts of Financial Results,” on pages
9-10.

* 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 31st December 2022

611,353,200 shares

As of 31st March 2022

610,696,500 shares(ii) Number of treasury shares at the end of the period
As of 31st December 2022

13,561,038 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)
Nine months ended 31st December 2022

591,168,248 shares

Nine months ended 31st December 2021
593,613,837 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 on the Company’s website.

Attached Material Index

1.

Qualitative Information Regarding Third-Quarter Settlement of Accounts ............................................... 2(1) Qualitative Information Regarding Consolidated Operating Results ..................................................... 2(2) Qualitative Information Regarding Consolidated Financial Position..................................................... 7(3) Qualitative Information Regarding Forecasts of Financial Results........................................................ 9
2. Condensed Quarterly Consolidated Financial Statements, Etc. ............................................................... 11(1) Condensed Quarterly Consolidated Statement of Financial Position................................................... 11(2) Condensed Quarterly Consolidated Statement of Comprehensive Income.......................................... 13(3) Condensed Quarterly Consolidated Statement of Changes in Equity .................................................. 14(4) Condensed Quarterly Consolidated Statement of Cash Flows ............................................................. 16(5) Notes to Condensed Quarterly Consolidated Financial Statements ..................................................... 18-1-

1. Qualitative Information Regarding Third-Quarter Settlement of Accounts(1) Qualitative Information Regarding Consolidated Operating Results
Nine months
ended
31st December
2021
447,947
51,728
11.5%
78,035
81,372
18.2%
24.5%
79,852Nine months
ended
31st December
2022
516,059
93,71718.2%
81,634
83,873
16.3%
22.4%
81,444(Millions of yen)
Year on year
AmountRate

Revenue
68,112
15.2%
Overseas revenue
41,98881.2%
Overseas revenue ratio
6.6P–
Business profit
3,599
4.6%
Operating profit
2,501
3.1%
Operating margin(1.9)P–
EBITDA margin(2.1)P–
Profit before tax
1,591
2.0%
Profit attributable to owners
54,31455,033719
1.3%
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 nine months ended 31st December 2022, the Japanese economy experienced a modest
pickup in business conditions with progress in normalization of economic activities due to effects ofcountermeasures against COVID-19 and various policies. Information system investment continued tosee strong corporate investment demand centered on digital transformation (DX) which involves
transforming business processes and business models using digital technologies. However, amid thecontinued global monetary tightening and others, various uncertainties, such as rapid exchange-ratefluctuations, rising prices, supply chain constraints and COVID-19 trends in China, in addition to risksof a downswing in overseas business conditions posed to the domestic economy, continue to cloud theoutlook. Furthermore, corporate investments may be limited depending on changes in future businessperformance.
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 promotes 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 new 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-(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.
(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 nine months ended 31st December 2022, the NRI Group’s revenue totaled ¥516,059 million(up 15.2% 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 ¥336,293 million (up 16.8%), gross profit
was ¥179,766 million (up 12.3%), and selling, general and administrative expenses were ¥98,698
million (up 19.7%). In addition to improvement in revenue amid a favorable order environment andproduction activities, ¥2,238 million of gain on sale of fixed assets was recorded in association with thesale of trust beneficiary rights for Yokohama Nomura Building. Operating profit was ¥83,873 million(up 3.1%), operating margin was 16.3% (down 1.9 points), and the EBITDA margin was 22.4% (down
2.1 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.
Secondary offering of shares
Responding to the intentions of two shareholders to sell their holdings of the Company’s shares, theCompany has sought to establish opportunities for a smooth sale of these shares of the Company.
Accordingly, the Company decided on a secondary offering of shares of the Company and a disposal by
way of a third-party allotment of shares of the Company held as treasury shares upon a resolution of theBoard of Directors on 25th November 2022. Through the secondary offering of shares, the Company
expects to expand the demographic of shareholders who understand the Company’s growth strategy
from a long-term perspective and to improve the market liquidity of the Company’s shares. Allprocedures for the secondary offering have been completed as of 28th December 2022. During the ninemonths ended 31st December 2022, the Company disposed of treasury shares by way of a third-party
allotment (5,545,200 shares, ¥16,007 million) associated with the secondary offering of shares. The
Company will continue to be an associate of Nomura Holdings, Inc. after the secondary offering.
Purchase of treasury shares
The Company decided to purchase treasury shares from the perspective of mitigating impact on the
supply-demand balance for its shares associated with the secondary offering and also from theperspective of reducing effects on its existing shareholders, upon resolution of the Board of Directors on
25th November 2022. The Company is to purchase a maximum total of 8,000,000 shares (percentage of
total number of shares issued as of 30th September 2022 (excluding treasury shares): 1.35%) for a
maximum total purchase price of ¥20,000 million. The purchase period is from 23rd December 2022 to
31st March 2023, and the purchase method will entail market purchase based on discretionary trading
contract pertaining to purchase of treasury shares (excludes the period during the ten business days fromthe business day following the date of announcement of the Company’s quarterly financial results).
During the nine months ended 31st December 2022, the Company purchased treasury shares (156,300
shares, ¥500 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
OperatingmarginNine months
ended
31st December
2021
31,324
8,601

Nine months
ended
31st December
2022
34,082
8,331

27.5%

(Millions of yen)
Year on year

Amount

Rate

2,758
(270)

8.8%
(3.1)%

24.4%(3.0)P–

228,665
33,482

250,763
37,52622,097
4,043

9.7%
12.1%

14.6%

15.0%

0.3P

–

167,358
19,259206,535
18,412

39,176(847)

23.4%(4.4)%

11.5%

8.9%

(2.6)P–

116,335
16,745

125,845
17,590

9,510
844

8.2%
5.0%

14.4%

14.0%

(0.4)P

–(95,736)3,282
447,947
81,372(101,166)
2,013
516,059
83,873(5,430)(1,269)68,112
2,501

–
–
15.2%
3.1%

18.2%

16.3%

(1.9)P–-4-

(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 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 the NRI Group will aim to strengthen consulting to support its clients’ DX andto appropriately respond to clients’ needs, and in the global area, the NRI Group is expanding its
services in advanced countries such as the U.S. and European countries while maintaining andreinforcing the existing client base. In addition, the NRI Group is working to create new consulting
services originating in solutions to social issues including decarbonization.
During the nine months ended 31st December 2022, the Consulting segment posted revenue of ¥34,082
million (up 8.8% year on year), due to continued strong performance of DX-related consulting andconsulting for social issues projects, following the previous fiscal year. Despite high productivity
maintained in Japan amid a favorable order environment, operating profit was ¥8,331 million (down
3.1%) due to worsening profitability overseas.
(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, 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 nine months ended 31st December 2022, the Financial IT Solutions segment posted revenueof ¥250,763 million (up 9.7% year on year), amid increases in system development and systemapplication sales for the securities sector and consulting services for the insurance sector. Despite
worsening profitability overseas, operating profit was ¥37,526 million (up 12.1%) due to improvementin profitability amid a favorable order environment and production activities, etc.

-5-

(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 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 nine months ended 31st December 2022, the Industrial IT Solutions segment posted revenueof ¥206,535 million (up 23.4% year on year) due to the contribution of brisk projects continuing in theAustralia business and effects of consolidation of subsidiaries in North America, which were acquiredby the previous fiscal year. Despite improvement in profitability of the Australia business, operating
profit was ¥18,412 million (down 4.4%) due to effects of amortization of intangible assets that wereidentified in association with the consolidation of overseas subsidiaries, etc.
(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 addition, as cyberattacks have been diversifying and evolving inrecent years, the importance of cyber security measures is increasing to safely and securely implement
the introduction and utilization of cloud services, 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 nine months ended 31st December 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 ¥125,845 million (up 8.2% year on year) and operating
profit of ¥17,590 million (up 5.0%).
*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.

-6-

(2) Qualitative Information Regarding Consolidated Financial Position(Assets, liabilities and equity)
As of
31st March 2022

As of
31st December
2022
369,414476,754
846,169
192,268
258,002395,898(Millions of yen)
Year on year
AmountRate

Current assets
333,645
35,76910.7%
Non-current assets
456,010
20,744
4.5%
Total assets
789,655
56,514
7.2%
Current liabilities
298,342(106,073)(35.6)%
Non-current liabilities
148,826
109,176
73.4%
Total equity
342,486
53,412
15.6%
Equity attributable to339,360
392,539
53,17815.7%
owners of parent
Ratio of equity attributableto owners of parent to total
43.0%
46.4%
3.4P
–
assetsInterest-bearing liabilities
209,627
243,244
33,61616.0%
Gross D/E ratio (times)
0.62
0.62
–
–
Net D/E ratio (times)
0.27
0.20
(0.07)–
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; ¥542 million as of 31st December 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; ¥2,904 million as of 31st December 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 third quarter (31st December 2022), current
assets were ¥369,414 million (up 10.7% from the end of the previous fiscal year), non-current assets
were ¥476,754 million (up 4.5%), current liabilities were ¥192,268 million (down 35.6%), non-current
liabilities were ¥258,002 million (up 73.4%), total equity was ¥395,898 million (up 15.6%), and total
assets were ¥846,169 million (up 7.2%). 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 third quarter were 0.62 times and 0.20 times,
respectively.
The main changes from the end of the previous fiscal year are as follows.
Trade and other receivables decreased ¥41,906 million to ¥93,772 million and contract assets increased¥29,353 million to ¥80,019 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 ¥19,433 million to ¥230,177 million as a result of theacquisition of intangible assets related to the development of shared online system in Japan and otherfactors.
Bonds and borrowings increased ¥31,581 million to ¥239,797 million due largely to the issuance of the
9th, 10th, and 11th series of unsecured bonds despite the redemption of the 5th series of unsecured
bonds.
In addition, cash and cash equivalents increased ¥46,171 million to ¥161,782 million, trade and otherpayables decreased ¥10,116 million to ¥43,684 million, and income taxes payable decreased ¥16,318
million to ¥4,329 million.

-7-

(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

Nine months
ended
31st December
2021

Nine months
ended
31st December
2022

73,51676,534

3,017

4.1%

(108,754)(45,878)

62,875(57.8)%(35,237)

30,65565,893–

21,605

14,726(6,879)(31.8)%(12,706)

46,171

58,877–140,481

161,782

21,30015.2%

AmountRate

Cash and cash equivalents as of the end of the third quarter (31st December 2022) stood at ¥161,782
million (up ¥46,171 million from the end of the previous fiscal year).
Net cash provided by operating activities was ¥76,534 million, an increase of ¥3,017 million from thesame period of the previous fiscal year. In the same period of the previous fiscal year, the NRI Grouphad ¥12,401 million in decrease in liabilities relating to trust-type employee stock ownership incentive
plan. During the nine months ended 31st December 2022, income taxes paid increased.
Net cash used in investing activities was ¥45,878 million, a decrease of ¥62,875 million from the same
period of the previous fiscal year. In the same period of the previous fiscal year, the NRI Group had¥68,994 million in payments for acquisition of subsidiaries due to acquisition of shares of U.S.-based
Convergence Technologies, Inc., Australia-based SQA Holdco Pty Ltd and Australian Investment
Exchange Limited. In the nine months ended 31st December 2022, cash was mainly invested in theacquisition of intangible assets related to the development of shared online system.
Net cash provided by financing activities was ¥14,726 million, a decrease of ¥6,879 million from thesame period of the previous fiscal year. In the same period of the previous fiscal year, the NRI Grouphad ¥116,115 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. In addition, the NRI Group had ¥59,999
million in purchase of treasury shares in accordance with a resolution of the Board of Directors, and¥10,000 million in repayments of long-term borrowings (syndicated loans). During the nine months
ended 31st December 2022, the NRI Group had ¥62,204 million in net increase (decrease) in short-termborrowings (expenditure) and ¥59,785 million in proceeds from long-term borrowings in part since the
NRI Group refinanced loans taken out in the same period of the previous fiscal year to acquire
Convergence Technologies, Inc. in the United States through M&A. The NRI Group had ¥64,807
million in proceeds from the issuance of the 9th, 10th, and 11th series of unsecured bonds and ¥25,000
million in redemption of the 5th series of unsecured bonds. The NRI Group had ¥22,215 million inproceeds from sale of treasury shares relating to disposal of treasury shares. Other expenditures mainly
consist of payments of cash dividends in the respective fiscal periods.

-8-(3) Qualitative Information Regarding Forecasts of Financial Results
No revisions have been made to the forecasts of consolidated financial results. However, in light of theresults for the nine months ended 31st December 2022 and the current order environment, thebreakdown of consolidated revenue and the forecast of cash dividends will be revised as follows.
(I) Consolidated performance
Consolidated financial forecasts for the fiscal year ending 31st March 2023
(from 1st April 2022 to 31st March 2023)
Previous
forecast(A)

Revisedforecast(B)(Millions of yen)
(Reference)Previous fiscal
year(Actual result)611,634
106,218
104,671

ChangeAmount
(B–A)

Rate
(%)

Revenue
690,000
690,000––
Operating profit
115,000
115,000––
Profit before tax
113,000
113,000––
Profit attributable to77,00077,000––71,445owners of parent* The forecast exchange rates for the fiscal year ending 31st March 2023 are 115.01 yen to the U.S. dollar and 83.43 yen
to the Australian dollar.

(II) Other forecasts
a. Consolidated revenue by segment for the fiscal year ending 31st March 2023
(from 1st April 2022 to 31st March 2023)
Previous
forecast(A)

Revisedforecast
(B)

2.2
0.6
0.7
–
1.9

(Millions of yen)
(Reference)Previous fiscal
year(Actual result)
42,807
303,635
133,316
68,89447,073–54,351

(1.1)
(1.4)

222,583
68,269(1.0)

154,313––42,607
611,634

ChangeAmount
(B–A)

Rate
(%)

Consulting
45,00046,0001,000
Financial IT Solutions
326,000
328,000
2,000
Securities sector
140,000
141,000
1,000
Insurance sector
77,00077,000–Banking sector
53,00054,0001,000
Other financial
56,00056,000–sectors, etc.
Industrial IT Solutions
271,000
268,000(3,000)Distribution sector
72,00071,000(1,000)
Manufacturing and
199,000
197,000(2,000)service sectors
IT Platform Services
48,00048,000–
Total
690,000
690,000–* The breakdowns of the segments are comprised of revenue by customer sector.

b. Consolidated revenue by service for the fiscal year ending 31st March 2023
(from 1st April 2022 to 31st March 2023)

160,000

157,000(3,000)(1.9)(Millions of yen)
(Reference)Previous fiscal
year(Actual result)
125,460

209,000

212,000

3,000

1.4

196,000

293,000

290,000(3,000)(1.0)

272,903

28,000690,000

31,000690,000

3,000
–

10.7
–

17,269611,634

Previous
forecast(A)
Consulting services
System development& system application
sales
System management& operation services
Product sales
Total

Revisedforecast(B)-9-

ChangeAmount
(B–A)

Rate
(%)

(III) Revisions to the forecasts of cash dividends
The Company considers the ongoing growth of its corporate value to be the most important return toits shareholders. The Company’s basic policy on the payment of dividends from surplus is to continue
to provide stable dividends while securing sufficient retained earnings for its medium and long-termbusiness development. In line with this policy, the Company has targeted a consolidated dividend
payout ratio* of 35%, taking into account factors such as operating revenue and the cash flow
situation.
Based on the policy above and business results for the current fiscal year, the Company has upwardly
revised its forecast for year-end dividends for the fiscal year ending 31st March 2023 by ¥1 from theone previously announced (announced on 27th April 2022) to ¥23 per share. Consequently, combinedwith interim dividend, the annual dividend payment will be ¥45 per share, resulting in a consolidated
dividend payout ratio based on the revised forecast of 34.8%.
* Consolidated dividend payout ratio = Total annual cash dividends (including dividends for the trust
exclusive for NRI Group Employee Stock Ownership Group) / Profit attributable to owners of parent
Forecasts of cash dividends for the fiscal year ending 31st March 2023

(Yen)

Cash dividends per share
Record datePrevious forecast
Revised forecast
Results for the current fiscal year
Results for the previous fiscal year

Second quarter-end
22.00
–
22.00
19.00

Fiscal year-end
22.00
23.00
–
21.00

Annual

44.00
45.00
–
40.00

(Caution concerning forward-looking statements)
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 (suppositions) judged
to be rational, and these statements do not purport to be a promise by the Company to achieve such
results. Actual business results, etc. may differ significantly from these forecasts due to various factors.
Material factors that could possibly affect the actual business results, etc. include, but are not limited to,the domestic and overseas economic situation, demand in the IT services market, competition withcompetitors, and changes in taxation and other systems. Note that the Company will not always revise
business forecasts, etc. upon every occurrence of new information or event.

-10-

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

¥

¥

－11－

(Millions of yen)
31st March 31st December
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¥¥

161,782
93,77280,01914,796
19,044369,414－369,414
40,521
32,775230,177
9,355
86,33469,5505,780
2,259
476,754
846,169(Millions of yen)
31st March 31st December
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

¥

¥
¥

¥

－12－

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¥¥¥¥

43,684
15,57840,6009,805
34,8704,329
989
42,410192,268
199,197
25,751
2,560
7,840
4,913
16,066
1,673
258,002450,271
23,64429,054355,141(44,284)
28,982392,5393,359
395,898
846,169(2)Condensed Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)
Nine months
Nine months
ended 31st
ended 31st
December 2021 December 2022
¥ 447,947¥ 516,059
287,890336,293160,057
179,766

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

82,437
166
3,738
152
81,372

98,698
338
2,675
207
83,873Finance income
Finance costs
Profit before tax

1,491
3,011
79,852

1,884
4,313
81,444

Income tax expenses
Profit25,25554,596

26,17755,267

915

366

(18)
896

4
371

0

0

2,738
(989)

(239)
292

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

50

(7)

1,799
2,696
57,29344415
55,682

Profit attributable to:
Owners of parent
Non-controlling interests
Profit54,314282
54,59655,033233
55,267

Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

57,010282
57,29355,449233
55,682¥

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

¥

－13－

91.50
91.32

¥

¥

93.09
93.00

(3)

Condensed Quarterly Consolidated Statement of Changes in Equity

For the nine months ended 31st December 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－－54,314－－54,314282

54,596

Other comprehensive
income

－

－

－

－

2,696

2,696

－

2,696

Total comprehensive
income－－54,314－

2,696

57,010282

57,293

Dividends－－(22,649)－－(22,649)－(22,649)

－

(132)

－

(60,002)－(60,135)－(60,135)

－

737

－

4,348

－

5,086

－

5,086

1,239

33

－

－

－

1,272

－

1,272

－

141

(141)

－

－

－

－

－

－

－

(15)

－

15

－

－

－

－

－

－

－

(44)

(44)

(0)

(45)

1,239

779

(22,806)(55,654)(29)(76,470)(0)(76,470)

27,476¥ 310,183

Purchase of treasury
shares
Disposal of treasury
sharesShare-based paymenttransactions
Transfer from retained
earnings to capitalsurplusTransfer from othercomponents of equity
to retained earnings
Other
Total transactions
with owners, etc.
Balance at 31st
December 2021¥

22,414¥¥－14－(70,681)¥

21,642¥311,035

¥

2,993

¥

314,028

For the nine months ended 31st December 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－－55,033－－55,033233

55,267

Other comprehensive
income

－

－

－

－

415

415

－

415

Total comprehensive
income－－55,033－415

55,449233

55,682

Dividends－－(25,396)－－(25,396)－(25,396)

－

(12)

－

(500)

－

(512)

－

(512)

－

(2,706)－25,026－22,319－22,319

1,229

294

－

－

－

1,524

－

1,524

－

3,201

(3,201)

－

－

－

－

－

－

－

(29)

－

29

－

－

－

－

－

(95)

－

(110)

(205)

－

(205)

1,229

777

(28,723)

24,525(80)(2,270)－(2,270)29,054¥ 355,141

Purchase of treasury
shares
Disposal of treasury
sharesShare-based paymenttransactions
Transfer from retained
earnings to capitalsurplusTransfer from othercomponents of equity
to retained earnings
Other
Total transactions
with owners, etc.
Balance at 31st
December 2022¥

23,644¥¥－15－(44,284)¥

28,982¥392,539

¥

3,359

¥

395,898(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 accrued expenses
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－16－(Millions of yen)
Nine months
Nine months
ended 31st
ended 31st
December 2021 December 2022¥¥

79,85231,093(2,871)(1,491)
3,011¥

81,44433,609(2,089)(1,884)
4,313

(166)

(338)

38,598(25,504)353(2,500)(8,213)(2,596)
6,263

42,741(29,287)45(3,414)(9,099)(1,608)
3,407(12,401)378(8)(10,579)(2,039)602
3,328
94,732
1,258(693)(21,781)
73,516

180(10,909)(951)
276
10,402
117,218
1,467(2,145)(40,005)
76,534¥

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
Purchase of investments in associates or joint ventures
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
Proceeds from issuance of bonds
Redemption of bonds
Repayments of lease liabilities
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by 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－17－(Millions of yen)
Nine months
Nine months
ended 31st
ended 31st
December 2021 December 2022¥¥

(1,362)
1,262(3,550)10,380(26,817)(3,488)75(68,994)(16,221)－(37)(108,754)
116,115
3,059(14,799)
5,000－－(10,040)
5,042(60,135)(22,635)(0)21,605925(12,706)
153,187
140,481¥¥(4,874)
4,795(9,395)
6,913(30,649)(285)
133(8,780)－(2,991)(743)(45,878)(62,204)
59,785(4,385)(5,000)64,807(25,000)(9,637)22,215(500)(25,352)－
14,726789
46,171
115,610
161,782

(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, 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.

－18－

(2) Revenue and profit or loss by reportable segment
For the nine months ended 31st December 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)

30,237225,176

162,150

30,383447,947－447,947

1,086

3,488

5,208

85,951

95,736(95,736)－

31,324
8,601

228,665
33,482

167,358
19,259116,335
16,745543,683
78,089(95,736)3,282

447,947
81,372
1,491
3,011

Profit before tax

79,852

Note: Individual items in adjustment to operating profit of ¥3,282 million include gain on sale of fixed assets in the amount of¥3,337 million recorded in “other income”.

For the nine months ended 31st December 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)

32,845

246,523

200,315

36,375516,059－

516,059

1,236

4,239

6,219

89,470101,166(101,166)－

34,0828,331

250,763
37,526

206,535
18,412

125,845
17,590617,226
81,860(101,166)
2,013

516,059
83,873
1,884
4,313

Profit before tax

81,444

Note: Individual items in adjustment to operating profit of ¥2,013 million include gain on sale of fixed assets in the amount of¥2,238 million recorded in “other income”.

－19－

(Earnings per Share)
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

Nine months
ended 31st
December 2021
(Millions of yen)
54,314－

Nine months
ended 31st
December 2022
(Millions of yen)
55,033－54,31455,033(Shares)593,613,837(Shares)591,168,248

1,169,559
594,783,396

606,696591,774,944

(Yen)
91.50
91.32

(Yen)
93.09
93.00

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 (2,495,854 shares and 887,208 shares for the nine-month periods ended 31st December, 2021 and 2022,
respectively).

(Subsequent Events)
Not applicable.

－20－