DX Solution Business
June 12, 2023
Osamu Kikuchi, Senior Vice President
NEC Networks & System Integration Corporation（TSE: NESIC, 1973)© NEC Networks & System Integration Corporation 2023

Self Introduction

Osamu Kikuchi
顔写真（胸から上）Senior Vice President andExecutive General Manager, DX Solutions Business Unit
Career summary⚫ Apr. 2018 Assistant General Manager,
EmpoweredOffice Business Development Division⚫ Apr. 2019 Executive Project Manager, DX Business Promotion Division,
Business Design Operations Unit
⚫ Jul. 2019

Seconded to NEC Corporation of America⚫ Apr. 2021 Associate Senior Vice President⚫ Apr. 2022 Senior Vice President, Executive General Manager,
Business Design Operations Unit

2© NEC Networks & System Integration Corporation 2023

⚫ Apr. 2023 Senior Vice President, Executive General Manager,
DX Solutions Business UnitDX Solutions Business: Overview and Strengths
Leveraging ICT to serve as a strategic partner thatassists customers with management strategies

Providing consultation, design, systems integration, construction, operation and maintenance of DX and ICT systems
Business strengths and characteristics

Workstyle innovation × customer base × field capabilities

Multi-cloud

Communication
Manufacturing

Distribution

HotelsFinancial servicesDigital twins

Security
Central andlocalgovernments
3

Educational andmedicalinstitutions© NEC Networks & System Integration Corporation 2023

NEC-GGlobal

FY 2023/3 News⚫ For a housing manufacturer:
Installation of cloud statusvisualization / centralized log
management and analysis
infrastructure⚫ For a manufacturer:
Installation of plant OT network⚫ For a local government entity:
Services to support theutilization of businessautomation tools

Status of Strategy Execution: Issues in FY2023/3
Given the signs of expansion in strategic areas,
it is essential that we pursue further growth and high profitability toward achieving the mediumterm management plan
≪Business strategy announced at May 2022≫
Providing DX services in partner-type smart recurring
Proposals

Measures(1) Partner-type smart
recurring business

Analysis andexamination

Services
specific tobusiness
types
Consultinginpartneringandco-creation
Differentiat
ion services
Platform

Finance

Distribution Manufacturi
servicesng

Upstream approach to customer base(3) DX-based industry
business(4) DX-based
public business(2) Advanced ICT operation
business(Data utilization)
Maintenanceandoperations

4

PublicLocal
interest
governments
companies

Gain traction with strengthening andgrowth strategies, accelerate action© NEC Networks & System Integration Corporation 2023

Realization

Creation of business models that reflectmarket needs
Development of DX human resources linked
to business strategies

Basic Policies
Acquiring new customers utilizing the strength of our brand for workstyle innovation and continue to cultivate existing customers.
Becoming a co-creation partner that works with customers, discovers issues, makes improvement proposals from every angle andsolves these issues.

Customer

Solving Issues Through CoCreation

Operation, BPO

Issue
verification

Partner-type recurringbusiness

WorkstyleDXMonitoring and maintenance5© NEC Networks & System Integration Corporation 2023

Local governmentDX

Next-generation
network security

Data analysis
and utilization

Upstream proposals

Digitaltwins

Our strengths
Workstyle innovation, customer base, field capabilities

Partner-type
consultation
Selfimplementation
Systems integrationand construction

Domains Identified for Strengthening and Growth
Approaches based on themes of strengthening or growth reflective ofusers needs and market trends
Improve the appeal of services that offer new value to customers and enhance the value of customers

Data analysis
Utilization

Workstyle DXWorkstyle innovation andprocess reforms that are a
step ahead of the market

6Local government
DX

Digitally bundle andanalyze multi-cloudutilization status andpropose improvements

Provide in-house expertise in
our self-implementation to
local governments

Next-generation Networks
Security

Digital twins

Provide next-generation
high-speed networks(Wi-Fi 6, Local 5G) andsecurity in combination
with operation service

Leverage Symphonict toquickly build customer
environments in a digitalspace© NEC Networks & System Integration Corporation 2023

What is the Symphonict Service?
An integration service that leverages our own expertise in our self-implementation toensure the success of customer DX activities (digital shift, digital utilization)
Data collection

Value offerings

Issue discovery
Communication innovation
Workstyle innovation andprocess reforms
Carbon neutrality
Productivity improvements
Personnel development

7© NEC Networks & System Integration Corporation 2023

Formulation of solutions
We provide value that ensures
the success of customer DX
activities

Implementation anddevelopment

Practical implementation andverification

Reference: Our Self-implementation of Workstyle Innovation
Focusing on our new head office, we leveraged DX to implement workstyle innovation thatstays a step ahead of the market
Latest showcase for customers
Business co-creation hub

Testing of new technologies

Comprehensive
verification anddemonstration

Development of technicalhuman resources

After COVID-19

New workstyles
Hybrid Work
Innovation-Base

Demonstration-BaseTechnical-Base(Nihonbashi)(Shibaura)(Shin-Kawasaki)

Activity-BaseWork from home / telework
8© NEC Networks & System Integration Corporation 2023

(Seven exclusive satellite offices inthe Tokyo metropolitan area)Reference: Data Analysis and Utilization
Provide the platform for finding new value by combining
multi-cloud utilization status and data in a short time and at low cost
Business data

Visualized in real-time

Human resources, skills,
production ...

✓ Management dashboard✓ Digital BCP

Multi-cloud
Audiovideo✓ Office environment

・・・

Data from various sensors
Temperature and humidity,
number of people, alarms ...

Bundling
multi-cloud andvarious other data foranalysis

Swift support using optimal means
Management
Sales
department

Operatingdepartment

Open data
Social media, weather,flow of people ...

9© NEC Networks & System Integration Corporation 2023

In the fieldReference: Digital Twins
Provide new value in coordination with NESIC's existing businesses fromthe angle of digital twins
Self-implementation under way at theShibaura Head OfficeOffice✓ Ideal workplaces✓ Active communication✓ Productivity improvements

Security

Network

Building management
systemSensor andcamera

Communication

10© NEC Networks & System Integration Corporation 2023

Factory✓ Improving production efficiency✓ Labor reducing robots✓ Ensure safety and comfort of work
environments

Retailfacilities✓ More attractive to customers✓ Improved inclination to makepurchases✓ Safety, peace of mind and comfortfor visitors

Human Resources
Development

Consultingpersonnel

2023/3392025/3190

Advanced
2023/3
DX profes380
sionals

2025/3

1,000

Beyond 5G 2023/3
professionals

192 290

Reskilling of existing resources and development of innovation-oriented humanresources who will lead growth areas* DI = Digital Integration

DX human resources
Clarify customer issues and provide solutions by transforming businessmodels from the DI* of existing businesses to DX

Innovation-oriented Human Resources
Bring about major reforms to businesses by incorporating new
mechanisms and technologies previously not available

11© NEC Networks & System Integration Corporation 2023

2025/3

Business Plan(¥ Bn.)

Shift UP 2024

CAGR+6%Net sales
Strategic area

108.0
20.3

114.2
24.9

12135

13050

19.0
Operatingincome

1213.013.2

14.0

FY22/3

FY23/3

FY24/3
Forecast© NEC Networks & System Integration Corporation 2023

FY25/3
TargetCautionary Statement
Forecasts and targets of results mentioned in this document are future estimates and are thus
inclusive of risks and uncertain factors since they are not based on definite facts. Please be aware that avariety of factors could cause actual results to differ significantly from those projected. The majorfactors affecting actual results include the economic climate and social trends surrounding the businessof this Company’s group, consumer trends vis-a-vis systems and services provided by this Company’sgroup, as well as pressure to lower prices and ability to cope with the market in response to intensifiedcompetition.
Factors affecting results are not limited to the ones mentioned above.
There was segment change in April 2022. Segment information for the FY 2022/3 have beenrecalculated to reflect the change in the content of business segments.

13© NEC Networks & System Integration Corporation 2023

https://www.nesic.co.jp/english/ir/