Nomura Research Institute : Consolidated Financial Results for the Three Months Ended 30th June 2022 (Under IFRS)

28th July 2022

Consolidated Financial Results

for the Three Months Ended 30th June 2022

(Under IFRS)

Company name:	Nomura Research Institute, Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	4307
URL:	https://www.nri.com/jp/
Representative:	Shingo Konomoto, Chairman and President & CEO, Representative Director, Member of the
	Board
Inquiries:	Teijiro Matsui, General Manager, Controllers & Operation Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	12th August 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on quarterly financial results:Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended 30th June 2022 (from 1st April 2022 to 30th June 2022)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Revenue		Operating profit	Profit before tax	Profit
Three months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%
30th June 2022	167,537		17.4	28,079	5.7	27,789	3.9	18,848		2.0
30th June 2021	142,647		8.8	26,564	48.9	26,737	58.7	18,471		64.4
	Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
	owners of parent	income		per share	per share
Three months ended	Millions of yen		%	Millions of yen	%		Yen			Yen
30th June 2022	18,762		1.9	22,233	19.2		31.80			31.76
30th June 2021	18,411		55.9	18,647	18.9		30.57			30.46
(2) Consolidated financial position
						Equity attributable to	Ratio of equity
	Total assets		Total equity	attributable to owners of
		owners of parent
						parent to total assets
As of	Millions of yen	Millions of yen	Millions of yen			%
30th June 2022	790,639		355,195		351,983			44.5
31st March 2022	789,655		342,486		339,360			43.0

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end		Fiscal year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended	-	19.00		-		21.00	40.00
31st March 2022
Fiscal year ending	-
31st March 2023
Fiscal year ending
31st March 2023		22.00		-		22.00	44.00
(Forecast)

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

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

(Percentages indicate year-on-year changes.)

	Revenue		Operating profit		Profit before tax		Profit attributable to
				owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
Six months ending	320,000		9.6	55,000		2.0	54,000		0.9	37,000		1.3
30th September 2022
Fiscal year ending	670,000		9.5	115,000		8.3	113,000		8.0	77,000		7.8
31st March 2023
	Basic earnings
	per share
			Yen
Six months ending			62.72
30th September 2022
Fiscal year ending			130.52
31st March 2023
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
3. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
4. Number of issued shares (ordinary shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of 30th June 2022	610,696,500 shares
As of 31st March 2022	610,696,500 shares

(ii) Number of treasury shares at the end of the period

As of 30th June 2022	20,222,975 shares
As of 31st March 2022	21,109,262 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended 30th June 2022	589,959,435 shares
Three months ended 30th June 2021	602,370,868 shares
Note: The NRI shares held by the trust exclusive for NRI Group Employee Stock Ownership Group are included 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 these statements do not purport to be a promise by the Company to achieve such results. Actual business results, etc. may differ significantly from this forecast due to various factors.
2. Supplementary materials on financial results are disclosed on the TDnet at the same time as this summary of consolidated financial results, and will also be posted promptly on the Company's website. In addition, explanatory materials for the results briefing for analysts and institutional investors to be held today will also be posted together on the Company's website.

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

- 1 -

1. Qualitative Information Regarding First-Quarter Settlement of Accounts

(1) Qualitative Information Regarding Consolidated Operating Results

				(Millions of yen)
	Three months	Three months	Year on year
	ended	ended	Amount	Rate
	30th June 2021	30th June 2022
Revenue	142,647	167,537	24,890	17.4%
Overseas revenue	15,896	31,454	15,558	97.9%
Overseas revenue ratio	11.1%	18.8%	7.6P	-
Business profit	23,227	25,840	2,612	11.2%
Operating profit	26,564	28,079	1,514	5.7%
Operating margin	18.6%	16.8%	(1.9)P	-
EBITDA margin	23.5%	22.1%	(1.4)P	-
Profit before tax	26,737	27,789	1,051	3.9%
Profit attributable to owners	18,411	18,762	350	1.9%
of parent

Notes: 1. Business profit is operating profit excluding temporary factors (such as impairment of goodwill and impairment of fixed assets), and a profit indicator to measure regular performance of businesses.

2. EBITDA margin: EBITDA (operating profit + depreciation and amortization + loss on retirement of fixed assets ± temporary factors) / revenue

During the three months ended 30th June 2022, the Japanese economy saw a pickup in business conditions with progress in normalization of economic activities due to effects of countermeasures against COVID-19 and various policies. Information system investment continued to see strong corporate investment demand centered on digital transformation (DX) which involves transforming business processes and business models using digital technologies. However, various uncertainties, such as rising raw material prices, supply chain constraints and rapid exchange-rate fluctuations due to the prolonged Russia-Ukraine situation, continue to cloud the outlook.

Operating in such an environment, Nomura Research Institute ("the Company") and its consolidated subsidiaries ("the NRI Group") carried out its business activities leveraging the combined strengths of the NRI Group, allowing it to seamlessly provide services encompassing consulting through to system development and operations.

The current fiscal year is the final year of the "NRI Group Medium-term Management Plan (2019- 2022)" (the "Medium-term Management Plan 2022"), formulated to achieve Vision 2022 (from the fiscal year ended 31st March 2016 to the fiscal year ending 31st March 2023), the NRI Group's long- term management vision. In addition to working to achieve even greater productivity and to expand existing businesses, the NRI Group will promote efforts to realize the growth strategies set forth in the Medium-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 business processes and business models of its clients.
   In terms of business platform strategy, the NRI Group is helping its clients create new businesses and enter new markets by providing them with business platforms specifically tailored to those who are entering the financial sector from other industries in step with transformation of industrial structures, while also expanding the NRI Group's shared online services with a focus on the financial sector.
   Under its cloud strategy, the NRI Group is improving clients' business agility and optimizing their IT costs by engaging in legacy system modernization*1 and developing cloud-native*2 apps.
2. Global strategy: The NRI Group is expanding its business foundations with a focus on achieving external growth through M&As and other such initiatives, including the acquisition of IPs, 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 centered on the Global Headquarters to drive forward the business integration process after acquisition.
3. • 2 -