Environmental & Social Solution Business
June 12, 2023
Kazuhiko Takeuchi, Senior Vice President
NEC Networks & System Integration Corporation（TSE: NESIC, 1973)© NEC Networks & System Integration Corporation 2023

Self Introduction

Kazuhiko Takeuchi
顔写真（胸から上）

Senior Vice President, Member of the Board, andExecutive General Manager,
Environmental & Social Solutions Business Unit

Career summary⚫ Joins the Company in 1985
⚫ Successively held various responsible posts for sales/marketing,social infrastructure business and support service business.
⚫ Assumed his current position in 2023 after the head of Network
Solutions Business Unit2© NEC Networks & System Integration Corporation 2023

Overview of Environmental & Social Solutions Business
Operating businesses ranging from design and systems integration to support
for social public infrastructure in Japan and beyond
Main services⚫ Networks (construction and maintenance)⚫ Safety (disaster prevention and disaster measures)⚫ Energy solutions⚫ Smart buildings

Main customers
Fire and disaster prevention

Electric power andnew common carrier (NCC)

Governments

CATV

Local governments

General companies

Business strengths and characteristics⚫ Customer Base (approx. 4,000 companies)⚫ Nationwide construction and support service system⚫ Ability to propose solutions that combine business expertise with companywide assets
3© NEC Networks & System Integration Corporation 2023

Basic Strategy on Environmental & Social Solutions<2024 Vision>
An area ICT orchestrator that serves broad markets in Japan and overseas

Community development
DX x Beyond 5G
x Nationwide business capabilities

1

4

Promote communitydevelopment business© NEC Networks & System Integration Corporation 2023

2

Step up actions
towards a green society

3

Shift to advanced construction
and maintenance platforms

Growth Strategy
2030 Vision

A business operator for creating and developing safe and secure communities where people want to continue
living, harnessing strengths in engineering and support, while serving local communities in harmony with therecycling society in Japan and abroad

43
２
1

Establish companywide
common platforms for theconstruction and maintenancebusiness

5⚫ Establish community-development business-Expansion of cocreation business with local
communities throughout Japan⚫ PPA & data platform businesses(geographic information, AI with video, robotcontrol, etc.)⚫ Promote community-development
business⚫ Actions towards a green society⚫ Shift to advanced construction andmaintenance platforms⚫ Cultivate and expand regional markets in Japan

2019

Enhance nationwide
business capabilities

Shift to recurring-typebusiness

Realize the 2030 Vision

2021© NEC Networks & System Integration Corporation 2023

2024

2027

2030

Medium-Term Management Plan and Progress of Results
Shift UP 2024(¥ Bn.)CAGR+6%
Net sales

115.0

Strategic
areas

2.5

119.2
8.0

126.0
15.0

140.0
40.0

Key Strategy 1: Promote Community
Development Projects

Operatingincome10.7

FY2023/3(Result)

FY2024/3(Forecast)© NEC Networks & System Integration Corporation 2023

5 billionyen

20 billionyen

3 billionyen

FY2025/3(Medium-termtarget)

20 billion
yenProvide one-stop services for customers to achieve zero carbonemissions

Key Strategy 3: Shift to Advanced Construction andMaintenance Platforms

8.2

FY2022/3
612.0

FY25/3
Net sales

Together with local customers, create smart communities that are safeand secure (Digital Garden City)Key Strategy 2: Step Up Actions towards
Green Society
16.0

FY23/3
Net sales

Enhance revenue by turning the construction work business into arecurring business
Improve business efficiency and boost competitiveness through DXChallenges to be Overcome for the Medium-term Management Plan
✓ Steady progress in the expansion of strategic areas (target attainment

Achievements andchallenges

rate: 100%)✓ Further acceleration of profitability (target attainment rate: 86%)

ExistingFocus
domains

Expand successful examples of FY2023/3 initiatives
Step up efforts in the area of high added-value to maximize profitability

7

Community
development

Expansion of the offering model and development leveraging thecustomer base

Green

Rolling out expertise in self-implementation as a one-stop business
Expanding revenue by enhancing unique solutions

Construction
andmaintenance

Shifting to solution provision business that leads to recurring business© NEC Networks & System Integration Corporation 2023

Community Development Strategy✓ Shift to highly unique businesses that coordinate existing businesses (real) with digital value✓ Develop models from examples related to the Digital Garden City concept and roll them out toother municipalities
Strengths(Sharing and ability tounderstand regionalcharacteristics)

Disaster resilience

DigitalExisting relations with
CATV operators and local
governments

SafetyTransformation
driven byco-creation

Providing the latest
digital technologies
companywide

Zero carbon city

Local government DX(Local governments, companies,etc.)
Decarbonization (GX)

Public-interest companies (DX)

(Back office)Communication
with people (CX)

Community development driven by communication technologies

Strengtheningof existingdomains

Sharing disaster information

Marketing and improved efficiency

Lifeline facilities

Arenas, roadsidestations, etc.

(LPWA / IoT / Video)

Fire and disaster prevention(Infrastructure)

8Regional revitalization<DX × beyond 5G × ability to deploy nationwide>

Physical

Extensive track recordbuilding communications
infrastructure for regionalareas(Local governments, electric power,
fire fighting, etc.)

Carbon neutrality© NEC Networks & System Integration Corporation 2023

(Video AI / LED lighting)

In-house energy
consumption(Energy saving, energy storage,
renewable energy)Roads, airports, cableTV (infrastructure)

Community Development Strategy (Examples)✓ Service provision of disaster resilience map information system as common area platform✓ Linking virtual spaces to multimedia disaster risk management offices
Strengths
Co-creation activities
between business
operators acrossindustries
Ability to provide services forgeographical information, video
and data utilization
infrastructure(Extensive experience with powercompanies)

Fire fighting and disasterprevention business customerbase and operating expertise• Quickly restoring disaster-affected infrastructure within a region through the centralized
sharing of disaster information
Ensuring safety andpeace of mind

Geographicalinformation /video / datautilization model

Healthcare activities
Securing fuelRestoring logisticsetc• Displaying multiple pieces of information in real-time• Drastically improving the speed from ascertaining a situation to making decisions
Real & virtual disasterrisk management office/ BCP model
Real disaster risk management office9© NEC Networks & System Integration Corporation 2023

Virtual disaster risk
management officeCommunity Development (Onshore Salmon Farm) Strategy✓ By leveraging fisheries DX, rolling out aquaculture business with a low environmental
impact as a franchise business model domestically and internationallyStrengths• Achieve fisheries DX through collaboration
between industry and academia• Develop franchise model

2030

Global expansion
Take on the challenge of
producing 10,000 tons

2024
⚫ Fuji/Katsuragawa
Factory land-based aquaculture facility
2023
begins operating
10© NEC Networks & System Integration Corporation 2023

Target sales 30 billion yen*（Largest in Asia）
Develop a CO2 emission reduction model forsalmon production* Including franchises

Franchise expansion and globalization✓ The first franchise model in the fisheries industry✓ Provision of systems that combine real and digitaltechnologies✓ Global rollout from NESIC's local subsidiaries

Strategy to Step Up Actions Towards a Green Society✓ Provide one-stop services for customers to achieve carbon neutrality using our expertise in selfimplementation✓ Differentiation leveraging co-creation driven technology and product development as strengths
Expertise in selfimplementation•100% reduction in CO2emissions(Scope 1, Scope 2)

Visualization• Butics +Kloudspot

Consultation(compared with FY2020/3 levels,by FY2031/3)• Development oftechnologies through cocreation between industry
and academia

11© NEC Networks & System Integration Corporation 2023

Streamlining forpower
consumption

Carbon offset•Satellite image analysis• Immersion cooling• Large specialized LEDlighting• Facility management(Butics)

Substitution• PPA• Energy storage (storagebatteries)

Strategy to Step Up Actions Towards a Green Society✓ Steady efforts underway to accumulate know-how through demonstrations
Examples of solutions for power saving measures

Examples of storage battery system demonstrations✓ Achieving 94% reduction in electricity consumption
using liquid cooling of servers in a data center,✓ Design, construction/SI and maintenance servicesof storage battery system for supply-demand
adjustment market✓ Achieving PUE value (indicating electricity usage
efficiency in a data center) of 1.05
• Installation design, procurement and construction of equipment andcomprehensive monitoring system• Establishment of optimum maintenance design, operation and maintenanceschemes✓ Support for demonstration utilizing and operating
multiple renewable energy and storage batteryresources

Collaboration with partners

NESIC
SIM/EMS

RenewableenergySolar power

12© NEC Networks & System Integration Corporation 2023

Storagebatteries

CEMSEMS

Smartbuilding

RA CloudDCSolutions

SmartstadiumStrategy to Develop a More Sophisticated Construction Business✓ Shifting to a business providing system solutions leveraging engineering capabilities as astrength
Market strengths

Customer base of
public-interest companies(approx. 2,000 companies)

Technology strengths

Road solutions✓ Products developed inhouse for ease ofconstruction andmaintenance✓ Expansion to nextgeneration networks

Provision of uniqueness and"one-and-only" solutions
Co-creation capabilities

Partnerships with regional
businesses and localcompanies13© NEC Networks & System Integration Corporation 2023

Airport solutions✓ One-and-only✓ Launch of new models onthe market✓ Extensive track record

Real sharing of environmental
information at a center

Ongoing proposals ofoperating
improvements forcustomers

Center coordination to
support the safe operation ofparked aircraftStrategy to Develop a More Sophisticated Support Service Business✓ Streamlining of customer contact points through the DX and AI utilizationand improved CS through shorter response times✓ Automate customer business processes to provide as services
Market strengths

Customer maintenance andoperating process optimization
service

Digital (DX) Operations

Support for a wide range ofindustries(Approx. 3,000 companies including telecom carriers,
public entities, private demand)

Customer support expertise andinformation accumulated overmany years

Use of AI for help desk services
Use of AI for reception anddispatch
Provision of user
portals

Delivery process automation
Provision of LCM services for fieldbased consulting

Strengthening the regional
structure of the NESIC Group

Ability to execute strategy

Nationwide support services
structure(Shortened downtime, disaster response)

Visualization

14© NEC Networks & System Integration Corporation 2023

Data analysis

Optimization

Real operations

Technology strengths

Data analysis and proposals forprocess improvements

Advanced
2025/3Cultivating Advanced and2023/3 2025/3
Supervising 2023/3 2025/3
Beyond 5G 2023/3
DX
professengineers
professionals 419
590
825 940 sionals
43 140Specialized HumanResources
Cultivating the human resources needed to achieve growth strategy

Cultivating engineers through KTC* utilization and our self-implementation* KTC: Shin-Kawasaki Technical-Base

Advanced DX
professionals● Supervising engineers• Telecommunication
construction supervising
engineer• Electrical construction
supervising engineer

15© NEC Networks & System Integration Corporation 2023

Supervising
engineers● DX engineers• Video AI, data analysis• Low-code development

Beyond 5G
professionals● Beyond 5G networking
engineers• Virtualization, public cloudcomputing• 5G／BWA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 major
factors 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.

16© NEC Networks & System Integration Corporation 2023

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