Nomura Research Institute, Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Nomura Research Institute, Ltd.

Nomura Research Institute, Ltd. (NRI), established in 1965, is a leading provider of IT services and consulting in Japan. The company focuses on financial services, consulting, and system integration, serving a diverse range of clients spanning multiple industries.

In 1999, NRI went public, listing on the Tokyo Stock Exchange. As of October 2023, NRI holds the stock ticker symbol 4307. The company's market capitalization is approximately ¥1.08 trillion (approximately $7.3 billion).

Over the years, NRI has expanded its operations internationally, with offices in North America, Europe, and Asia. In 2018, NRI established a subsidiary in India, enhancing its global capabilities and tapping into the growing IT market.

NRI has consistently reported strong financial performance. In the fiscal year ending March 2023, NRI reported revenues of ¥509.6 billion (approximately $3.5 billion), reflecting a year-on-year growth of 8.4%.

Furthermore, NRI has been recognized for its contributions to the technology and consulting sectors, receiving numerous accolades over the years, including being listed among the Top 100 Global Outsourcing Companies by the International Association of Outsourcing Professionals.

In line with its forward-looking strategy, NRI has invested significantly in digital transformation initiatives. In 2022, NRI allocated approximately ¥25 billion to R&D, focusing on AI, big data analytics, and blockchain technology.

NRI’s commitment to environmental, social, and governance (ESG) principles has also shaped its operations. The company has set a target to reduce its greenhouse gas emissions by 30% by 2030 compared to 2020 levels.

As of the latest earnings report in October 2023, NRI maintains a strong balance sheet, with total assets amounting to ¥300 billion and a debt-to-equity ratio of 0.1, showcasing the company's robust financial health.

A Who Owns Nomura Research Institute, Ltd.

Nomura Research Institute, Ltd. (NRI) is a key player in the consulting and IT services sector, primarily in Japan. As of the end of fiscal year 2023, NRI reported a consolidated revenue of approximately JPY 414.3 billion (approximately USD 3.8 billion), demonstrating growth from previous years.

The ownership of NRI is characterized by a combination of institutional and individual stakeholders. As of September 2023, the largest shareholders are as follows:

The influence of Nomura Holdings, Inc., the primary shareholder, plays a pivotal role in shaping the strategic direction of NRI. The firm's focus on digital transformation and big data analytics has positioned it competitively within the broader market.

For transparency on financial performance, NRI has recorded consistent year-over-year growth in operating income. In FY 2023, the operating income reached approximately JPY 54.9 billion (approximately USD 510 million), marking an increase of 8.7% compared to the previous fiscal year.

According to the fiscal report, the company's assets stood at approximately JPY 680.7 billion (around USD 6.3 billion), with total liabilities amounting to JPY 450.5 billion (approximately USD 4.2 billion). This results in a healthy equity base of approximately JPY 230.2 billion (around USD 2.1 billion).

NRI's stock has seen favorable performance on the Tokyo Stock Exchange, where it is listed under the ticker symbol 4307.T. As of October 2023, the stock price was approximately JPY 3,210, reflecting a year-to-date increase of 15%.

Overall, the ownership structure and financial health of Nomura Research Institute, Ltd. are indicative of a robust organization backed by significant institutional support, shaping its future in the evolving landscape of consulting and IT services.

Nomura Research Institute, Ltd. Mission Statement

Nomura Research Institute, Ltd. (NRI) is a leading provider of consulting services and systems solutions, established in 1965. The company aims to contribute to the advancement of society and the improvement of people's lives through innovation and technological advancements. NRI's mission statement reflects their commitment to delivering comprehensive solutions that address the challenges faced by businesses and society at large.

The mission statement emphasizes three core areas: innovation, trust, and sustainability. NRI positions itself as a partner for growth, leveraging extensive research capabilities and deep expertise in various sectors to help clients navigate the complexities of modern business environments.

NRI's mission extends beyond profit maximization. The company aims to foster a sustainable society through corporate social responsibility initiatives, which include environmental conservation and community engagement projects. This approach aligns with NRI's values of integrity and long-term perspective, ensuring that their business practices contribute positively to society.

In terms of workforce, NRI employs approximately 12,000 individuals across various locations, focusing on creating a workplace that encourages diversity, inclusivity, and professional growth. The company invests significantly in employee training and development programs to enhance skills relevant to industry needs.

NRI’s commitment to innovation is reflected in its Research and Development (R&D) spending, which amounted to approximately 23 billion JPY in the last fiscal year, underscoring its dedication to staying at the forefront of technological advancements. This investment supports the development of cutting-edge solutions tailored to the evolving needs of clients across sectors such as finance, healthcare, and IT.

Overall, Nomura Research Institute, Ltd. stands as a testament to the integration of strategic foresight, robust analytics, and ethical business practices, embedded deeply within its mission statement. This focus not only drives organizational success but also enhances the overall value delivered to society.

How Nomura Research Institute, Ltd. Works

Nomura Research Institute, Ltd. (NRI), based in Tokyo, Japan, specializes in consulting, IT services, and financial services. Established in 1965, the company has grown to become a key player in the Japanese market and has expanded its operations internationally, focusing on information technology and research services.

The company operates through two main segments: Consulting and Systems Solutions. Each segment contributes significantly to NRI's overall financial performance.

Financial Performance

For the fiscal year ending March 2023, NRI reported consolidated revenue of ¥**476.5 billion** (approximately $3.6 billion), a year-over-year increase of **6.4%**. The operating income stood at ¥**61.8 billion** (around $466 million), reflecting a **10.1%** increase compared to the previous fiscal year.

Segments and Operations

The Consulting segment focuses on providing strategic advice and solutions for clients across various industries, including finance, healthcare, and public sectors. The group is known for its data analysis and market research capabilities, which are supported by its proprietary tools and methodologies.

The Systems Solutions segment offers IT services, including system integration and management services. NRI has been investing heavily in digital transformation, enhancing its offerings in areas such as cloud services, artificial intelligence, and cybersecurity.

Market Position

NRI holds a significant market share in the Japanese consulting industry, ranking among the top firms. The company leverages its strong brand recognition and longstanding client relationships to maintain a competitive edge.

As of October 2023, NRI’s stock (TSE: 4307) is trading at approximately ¥**4,215**, with a market capitalization of around ¥**1.5 trillion** (approximately $11.5 billion). The price-to-earnings (P/E) ratio stands at **20.7**, reflecting the company's growth prospects.

Recent Developments

In recent months, NRI has announced several strategic partnerships aimed at enhancing its technological capabilities. Collaborations with global tech firms have been established to drive innovation in its consulting and systems solutions. For instance, a partnership with a leading cloud services provider aims to offer clients enhanced digital transformation solutions.

NRI has also focused on sustainable business practices. In the year 2023, the firm reported that **75%** of its projects had sustainability considerations integrated into their frameworks, highlighting its commitment to social responsibility.

Clientele and Projects

NRI services a diverse range of clients, including major corporations in sectors like finance, telecommunications, and government agencies. Notable projects include:

• Implementation of a comprehensive IT system for a major Japanese bank.
• Development of a market analysis tool for a leading insurance company.
• Consultation on regulatory compliance for a public sector client.

With a workforce of approximately 9,900 employees as of March 2023, NRI's talent pool is a core asset, enabling it to deliver value to clients through specialized knowledge and skills.

Outlook

NRI anticipates continued growth, projecting revenue to reach ¥**500 billion** by March 2024, driven by increasing demand for digital solutions and consulting services in a post-pandemic environment. The company aims to further enhance its international presence, targeting expansion in Asian markets.

Investors remain optimistic about NRI's strategy, with analysts rating the stock as a strong buy based on expected growth in consulting and IT services.

How Nomura Research Institute, Ltd. Makes Money

Nomura Research Institute, Ltd. (NRI) is a leading Japanese research and consulting firm that operates primarily in the consulting and IT solution domains. The company generates revenue through several key segments, each contributing to its overall financial health.

1. Consulting Services

NRI offers consulting services that address various sectors, including financial services, public services, and industrial sectors. In fiscal year 2022, this segment accounted for approximately 60% of NRI's total revenue.

2. IT Solutions

The IT Solutions segment provides system integration, IT infrastructure management, and software development services. As of March 2023, this segment represented about 30% of total revenues.

3. Research and Development

NRI invests heavily in research and development, leading to the generation of intellectual property which is commercially exploited. This segment contributes around 10% to NRI's revenue.

4. Revenue Breakdown

5. Client Base

NRI serves a diverse portfolio of clients, including major banks, securities firms, and government agencies. As of 2023, over 1,500 corporate clients rely on NRI’s services.

6. Global Presence

The company has expanded its operations internationally, with significant offices in North America and Asia, adding to its revenue from global clients. This international segment has contributed 15% to overall revenue in recent years.

7. Financial Performance Indicators

In its latest earnings report for the financial year ending March 2023, NRI reported:

• Net Income: ¥28 billion
• Operating Margin: 16.5%
• Return on Equity: 12%

8. Future Growth Strategies

NRI is heavily investing in digital transformation and AI-focused solutions, with a projected growth of 20% in this segment by 2025. This strategic focus aims to capture growing market demands and enhance profitability.

9. Market Position

NRI is one of the top three consulting firms in Japan, competing against companies like Accenture and Deloitte. In 2023, NRI held a market share of 18% in the Japanese consulting sector.