Good morning! I’m Tokuo Yamamoto, CFO ofNEC Networks & System Integration Corporation,
which we call NESIC.
Thank you for joining us today for this briefing.

0Here is our agenda.
First, I will provide a summary of our company,
then talk about the gear for growth.

1What’s NESIC?

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This chart shows our history.
NESIC was born as a telecom engineering
company about 60 years ago.

According to the development of technologies,
our business have been gradually expanded
into systems integration and related services
such as system operation and outsourcing
services.

3I will explain the history of NESIC in a little moredetail.
1953, our birth year, was the year when NHK
started Japan’s first television broadcasts, andcurrent KDDI was established.
In other words, NESIC was born at the dawn ofcommunication in Japan.
We started out developing Japan’s broadcast andtelecom infrastructure, such as the installation oftelevision broadcasting equipment and theinstallation of telephone switchboards, as shown in
the pictures.

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In sixties, our business expanded to theworldwide telecom infrastructure.
As shown in this slide, we have installedsatellite earth station on Mt. Everest and havecontributed to live TV coverage from the top ofMountain.

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Alongside the dramatic development oftelecom technology in the 1990s,
we also contributed to the start-up of new
telecom services, including mobile phones andthe Internet, and also expanded system
integration business for office communication
network.
We can say that it is the era when we becamea system integrator.

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And today....., we have also been involved in theconstruction of social infrastructure, including theinstallation of digital terrestrial broadcasting
equipment on Tokyo Skytree and the developmentof a submarine seismometer system.
Moreover, our stage has spread as far as space.
We have been involved in the operation andcontrol of numerous satellites.
It was one of our staff members who re-discovered
the Hayabusa, that collected samples of asteroid
Itokawa, first in the world, when its whereabouts
were unknown. We are working for the operationof newly launched Hayabusa-2, but I hope we do
not have an opportunity to re-discover it this time.
7For offices, not only integration of ICTsystems, we also focus on the work styleinnovation solution, including office facilities
and design to enhance the productivity ofemployees.

8It is, therefore, fair to say that NESIC is acompany which has achieved growth bycontinually supporting all kinds ofcommunications across a wide range of fields.

9Our business model has 4 points:(1)We do business for various customers, privatecompanies, telecom cariiers and governments.
(2)We can provide them variety of services related toICT, such as consulting, system integrations,maintenance-operation, and outsourcing services,utilizing our strong service & support bases.
(3)We also have total facility management knowhow
through telecom construction experience, including
office facilities and design.
(4) In addition, we have spirit oriented towards“Kaizen.”
We are proud of leading position in the Japanese
network market, based on the trust, earned throughour sixty years experience and know-how.
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Our sales are well balanced by these 3 segments,
as a results of our broad customer base.

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We are able to provide ICT services as amanagement cycle, from consulting, integration,
maintenance and outsourcing services.
To support our business model, we have about 400
service and support bases and 4,000 engineers
working nation-wide.
As a result, for an example, we can send support
staff and necessary parts to our customers in 2
hours wherever they are in Japan. It is the service
quality NESIC are proud of, through the experienceof mission critical public network business.

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The clear differentiation compared to other system
integrators, lies in our know-how and installation
capabilities for office, electrical and other facilities.
These skills have been built through ourinfrastructure construction business, leading to thecreation of new business.
One of such examples is our solution named
EmpoweredOffice, which improves total officeproductivity by combining ICT with office design,supplies and other facilities.
I will explain this in detail later.

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All employees conduct variety of “Kaizen” activities
in all areas from the construction work to sales
activities and administrative staffs, and this has
become part of our DNA.
I believe our 9 consecutive years of profitability
improvement is a results of this “Kaizen” spirit.

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By demonstrating the features and strengths
explained so far, NESIC holds the position of a top
system integrator in networking in Japanese ICT
service industry.

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Here, I explain our financial performance.
For past decade, we have been improved ourprofitability.
On the other hand, top-line growth has stagnated,
and we are now returned to a growth track.

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Through increased profitability, we have built solid
financial strength. We are ready to use it forgrowth.

17Next, I will explain how we gear for growth.

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First, our business environments,
In the enterprises market, an appetite for ICT
investment became active following the economic
recovery, and we will actively propose a range of ICTservices.
On the other hand, the capex of telecom carriers is
expected to be weak for a couple of years following thestrong years leading up to the last fiscal year. But as acost cutting measure, telecom carriers are adopting
systems from global vendors. We have an opportunity toprovide support services for these.
As for governments, the need for disaster prevention
information systems is strong.
Currently, investment in the digitalization of firefighting
and ambulance radio systems is peaking.
We expect demands for infrastructure enhancement
toward Olympic 2020 in Tokyo are another opportunity.

19This is our mid-term business target.
We are now targeting sales of 290 billion yen, operating
income of 16 billion yen and double-digit ROE for thefiscal year ending March 2016.

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This chart shows key growth areas.
First, in terms of the infrastructure business, theinvestment areas of focus change from time to time, andwe will be flexible in our concentration on these areas.
As I explained, firefighting digitalization is a current areaof focus, and we consider next generation broadcasting
and Tokyo 2020 to be next areas.
We also target to expand new service businesses asstably expanding fields.
Enforcing our service platforms, we will expand new ICT
services integrating with BPO services not only forcompanies but also for telecom carriers andgovernments.
I will explain in more detail for some focusing businessareas.
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First, “EmpoweredOffice”.
White workers productivity is a critical issue for Japanese senior
management to survive in matured market condition.
By combining the strength of ICT and our facilities management, we
provide the 3E effects to enhance the corporate value of our customers:
That is: Empowering creativity of each worker, and realizing Economical
and Ecological work style.
We have implemented the solution for ourselves and Enjoying it... that
may be the 4th “E”.
In our case, it is effective in reducing floor space by 40%, and the power
consumption by half, as well as in speeding up management decisionand information sharing.

We have invited customers, especially senior management, to feel theeffectiveness for themselves by watching around our offices. As a result,the EmpoweredOffice brand has gradually been penetrating to ourcustomers.
Recently we launched a new solution to virtually locate distant offices
adjacent to our offices, adopting projection-mapping technology forcasual, natural and creative communication.
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Technical outsourcing is another focusing service
business.
Through the experience for years, we havealready established a quality service system andservice infrastructure to meet even telecom
carriers’ high-level demand.
By using these platform, we are expanding total
services for global vendors who don’t haveenough service systems in Japan.
These services include product acceptanceinspections, equipment adjustments/customization,and support service after installation.
These services also help carriers to achieve
efficient total cost of ownership.

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Last July, for the core of this technical outsourcing, welaunched the Service Delivery Operation Center: sDOC.
Here, we integrated all the SCM functions as well as
technical service features, including system evaluation& validation, repair, configuration, etc.
We consider this to be a unique service center, andthrough its use we are expanding service provision not
only to global vendors but also to other customers suchas system sales companies without nationwide service
infrastructures.

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Next, overseas business.
Our overseas sales comprise only 5%, but each of ouroverseas subsidiaries has strong relationships with local
leading customers, and we will develop these further.
In Thailand, we are now implementing a 3G mobile
network for AIS, the top local mobile carrier.
In Saudi Arabia, we are handling a network system forthe oil plants of Aramco. Following the west coastproject, we are now aiming to obtain the next project.
In addition, we wish to grow the overseas support
business for our Japanese customers, or the JOC
business, targeting Southeast Asian countries andChina.

25Regarding M&A, last fiscal, we bought two companies
for the purpose of strengthening our priority areas, as
shown in the figure.
NEC Magnus Communications has strength in Cable TV
network, and we think it is promising business area forcoming 4K, 8K broadcast distribution.

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Another acquisition is Q&A Corporation, or QAC. It
is a contact center operator, but its main strength
is that it can offer all kinds of technical support,
from responding to technical inquiries toconsumers concerning ICT products, broadbandenvironments, etc. to onsite support through homevisits.

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NESIC provides BtoB, ICT business in relation toa wide range of customer groups, as explainedearlier.
Meanwhile, QAC’s excels in BtoBtoC and BtoC
support services for ICT-related products, asmentioned just now.
Through its alliance with QAC, we are now able toprovide not only its previous ICT systems andservices but also new all-in-one services including
meticulous technical support services to ourcustomers’ users.

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One of promising areas is multi-lingual services.
Based on the Cool-Japan strategy of the government,
services for tourists from overseas are becoming
increasingly important. For example, imagine that you
discover a fire, and you call the fire department and say,“¡Hay fuego aqui! (I found a fire here!)” in Spanish, but theoperator is unable to understand it. Accordingly, the fire andemergency departments require not only a network, butalso multilingual translation support for calls. Hotels also
demand both a Wi-Fi network and language support fortechnical inquiries.
The JOC business is another target. As part of the provisionof state-of-the-art ICT systems to companies on a global
basis, technical support for global employees is critical, andQAC’s multilingual technical helpdesk will be our strength.
So we will be creating synergies with our acquired
resources to expand into the provision of new services.
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Finally, I will explain our basic idea to expand
shareholders value.

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We have gradually increased dividends in stepwith our improved profitability, while focusing on
stable dividends.
By balancing returns to shareholders withinvestment, we aim to generate an overall returnthat satisfies all shareholders.

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As I have explained today, we will achieve our mid-termtarget for further growth.
Thank you for your attention.

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