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

1Q FY March 2023

Financial Results

Nomura Research Institute, Ltd.

July 28, 2022

• 1Q FY March 2023 Financial Results (Consolidated)

• FY March 2023 Financial Results Forecasts (Consolidated)

Copyright（C） Nomura Research Institute, Ltd. All rights reserved.

1

1Q FY March 2023 Financial Results (Consolidated)

1. Highlights								(JPY million)
	1st Quarter Total	1Q FY Mar.2022	Progress	1Q FY Mar.2023	Progress	Y o Y			FY Mar.2022
	Amount	(％)	Amount	(％)	Diff.	Change(％)		Amount
	Revenue	142,647	23.3	167,537	25.0	24,890	17.4		611,634

Consulting Services	25,060	20.0	38,947	28.9	13,887	55.4
System Development &	46,495	23.7	49,122	21.9	2,626	5.6
System Application Sales
System Management &	66,423	24.3	70,856	25.0	4,432	6.7
Operation Services
Product Sales	4,667	27.0	8,610	30.8	3,943	84.5

125,460

196,000

272,903

17,269

Cost of Sales	91,468		110,230		18,761	20.5		395,562
Gross Profit	51,178		57,307		6,129	12.0		216,071
Gross Profit Margin	35.9%		34.2%		(1.7P)			35.3%
Selling, general and	28,103		31,539		3,436	12.2	113,536
administrative expenses
Other Income & Other Expenses, etc.	3,489		2,310		(1,178)	(33.8)		3,683
Operating Profit	26,564	25.0	28,079	24.4	1,514	5.7		106,218
Operating Margin	18.6%		16.8%		(1.9P)			17.4%
Finance Income & Finance Costs	172		(289)		(462)			(1,547)
Profit before tax	26,737	25.5	27,789	24.6	1,051	3.9		104,671
Profit attributable to owners	18,411	25.8	18,762	24.4	350	1.9	71,445
of parent
Basic earnings per share(JPY)	30.57		31.80		1.23			120.57
EBITDA Margin	23.5%		22.1%		(1.4P)			23.9%

• The breakdown of the revenue is classified by products and services.
• EBITDA margin: EBITDA (Operating profit + Depreciation and Amortization + Loss on retirement of fixed assets ± Temporary factors) / Revenue

Average Rate	1Q FY Mar.2022	1Q FY Mar.2023
USD	109.52 yen	129.73 yen
AUD	84.29 yen	92.68 yen

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Copyright（C） Nomura Research Institute, Ltd. All rights reserved.

1Q FY March 2023 Financial Results (Consolidated)

2. Segment performance results

• Including Inter-segment revenue for each segment

1st Quarter Total		1Q FY Mar.2022	1Q FY Mar.2023	Y o Y
	Amount	Share(％)	Amount	Share(％)	Diff.	Change(％)
Consulting	Revenue	8,869	6.2	9,711	5.8	841	9.5
Operating	1,805	6.8	1,859	6.6	53	3.0
	Profit
	Operating	20.4%		19.1%		(1.2P)
	Margin
Financial IT Solutions	Revenue	72,245	50.6	81,490	48.6	9,245	12.8
Operating	9,238	34.8	11,678	41.6	2,440	26.4
	Profit
	Operating	12.8%		14.3%		1.5P
	Margin
Industrial IT Solutions	Revenue	55,057	38.6	68,841	41.1	13,783	25.0
Operating	6,694	25.2	6,679	23.8	(14)	(0.2)
	Profit
	Operating	12.2%		9.7%		(2.5P)
	Margin
IT Platform Services	Revenue	37,430	26.2	40,403	24.1	2,973	7.9
Operating	5,488	20.7	5,652	20.1	164	3.0
	Profit
	Operating	14.7%		14.0%		(0.7P)
	Margin
Inter-segment revenue and	Revenue	(30,956)	(21.7)	(32,909)	(19.6)	(1,952)
eliminations	Operating	3,338	12.6	2,208	7.9	(1,130)
	Profit
Total	Revenue	142,647	100.0	167,537	100.0	24,890	17.4
Operating	26,564	100.0	28,079	100.0	1,514	5.7
	Profit
	Operating	18.6%		16.8%		(1.9P)
	Margin
* Including inter-segment revenue for each segment.

(JPY million)

FY Mar.2022

Amount Share(％)

44,414 7.3

12,820 12.1

28.9%

308,376 50.4

43,877 41.3

14.2%

229,921 37.6

25,449 24.0

11.1%

157,598 25.8

20,955 19.7

13.3%

(128,676) (21.0)

3,116 2.9

611,634 100.0

106,218 100.0

17.4%

Copyright（C） Nomura Research Institute, Ltd. All rights reserved.

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Change(％)

1Q FY March 2023 Financial Results (Consolidated)

2. Segment performance results

• Including Inter-segment revenue for each segment (Overseas)

1st Quarter Total

1Q FY Mar.2022	1Q FY Mar.2023	Y o Y
Amount	Share(％)	Amount	Share(％)	Diff.

(JPY million)

FY Mar.2022

Amount Share(％)

Consulting	Revenue	818	5.1	929	3.0		111	13.6			4,772	6.2
Operating	(188)	(15.4)	(213)	(13.2)		(24)	12.8			662	8.8
	Profit
	Operating	(23.1%)		(22.9%)			0.2P				13.9%
	Margin
Financial IT Solutions	Revenue	2,673	16.8	3,233	10.3		560	21.0			11,710	15.3
Operating	418	34.0	(44)	(2.7)		(462)				1,649	21.8
	Profit
	Operating	15.6%		(1.4%)			(17.0P)				14.1%
	Margin
Industrial IT Solutions	Revenue	13,485	84.8	28,760	91.4		15,275	113.3			65,189	85.2
Operating	1,029	83.8	1,876	115.8		847	82.3			5,214	69.0
	Profit
	Operating	7.6%		6.5%			(1.1P)				8.0%
	Margin
IT Platform Services	Revenue	72	0.5	101	0.3		29	40.3			372	0.5
Operating	(31)	(2.6)	(0)	(0.0)		30	(97.8)			21	0.3
	Profit
	Operating	(43.5%)		(0.7%)			42.8P				5.8%
	Margin
Inter-segment revenue and	Revenue	(1,153)	(7.3)	(1,571)	(5.0)		(418)				(5,525)	(7.2)
eliminations	Operating	1	0.1	2	0.2		0				5	0.1
	Profit
Total	Revenue	15,896	100.0	31,454	100.0		15,558	97.9			76,519	100.0
Operating	1,229	100.0	1,620	100.0		391	31.9			7,553	100.0
	Profit
	Operating	7.7%		5.2%			(2.6P)				9.9%
	Margin
*This table shows revenue and operating profit of overseas subsidiaries in each segment. Global-related expenses incurred by the head office are not included.
* Including inter-segment revenue for each segment.
						Copyright（C） Nomura Research Institute, Ltd. All rights reserved.	4