Financial Results for the Fiscal Year ended March 2022
& Medium-Term Management Plan “Shift up 2024”
May 10, 2022

Yushi Ushijima, President
NEC Networks & System Integration Corporation(TSE: 1973, NESIC)© NEC Networks & System Integration Corporation 2022

AgendaI. Results for the FY2022/3
II.New Medium-termManagement Plan

I. Results for the FY2022/3
II.New Medium-termManagement PlanFY2022/3 Summery(¥ Bn.)
FY22/3

FY21/3

FY22/3

Changeforecast(Jan.2022)~Exceeded all medium-term targets~

Orders received

336.9

336.8

-0%

335

Medium-term targets for FY22.3 as of May 2019

Net sales

339.1

310.3

-8%

313

Gross margin

18.9%

20.5%

+1.6ptーNet sales：¥310Bn.
Operating income ：¥ 20Bn.(to sales: 6.5％)
ROE： 10%+

Operating income

25.6

23.2

-2.4

22.5

（to sales）(7.5%)(7.5%)±0pt(7.2%)

15.7

15.0

-0.7

14.5

（to sales）(4.6%)(4.8%)+0.2pt

(4.6%)

ＲＯＥ

13.5%

11.6%

△1.9ptFree cash flows

13.1

15.5

+2.4

Orders backlog

138.6

165.2

+19%

Net income
attributable to owners of the parent

3

The reactionary fall of big PJs and temporary factors such as
SC/material shortage impacted on the results althoughbusiness has progressed as intended© NEC Networks & System Integration Corporation 2022

 Orders/sales:

Priority businesses (DX/Telecom)grew
Except for impacts of reactionary fall* &SC/material shortage

Orders:+12％, Sales:+8％* Reactionary fall: GIGIA school & mega-solar of the previous year
and the impact of a subsidiary to have been unconsolidated

 Profits:

Profits decreased due to temporary factors
although sales mix & efficiency improved

FY2033/3 Factor Analysis of YoY Change (Orders/Sales)
Strategic areas expectedly expanded while SC/material shortage in
addition to the shift to service provision model temporarily impacted
Orders received（¥ Bn.）
SC/material
shortage
Approx. -5.0

336.9
GIGA
schoolApprox.
- 29.0DX/telecom etc.
Approx.
+35.5

Net sales+12％**

339.1

336.8

GIGA
schoolApprox.
-28.0

(-０%)

Mega-solar
Approx.
-11.0

Unconsolidated
affiliate*
Approx. -1.5～～
4*Impact of a subsidiary that to have been
FY21/3
unconsolidated from 2Q FY2021/3© NEC Networks & System Integration Corporation 2022**Except for impacts ofreactionary fall* &SC/material shortage～～
FY22/3

Unconsolidated
affiliate*
Approx. -1.5～～
FY21/3+8％**
DX/telecom etc.
Approx.
+24.0

SC/material
shortage
Approx. -12.5

310.3
(-8%)

～
～
FY22/3

FY2022/3 Orders Received/Net Sales by Business Model
Business model is steadily changing
Orders received

Net sales（¥ Bn.）

336.9

SI/construction

Services

5

224.1
67％

-6％

336.8

339.1

211.0

232.7

63％

106.4

33％

37％

31％

FY21/3

FY22/3

FY21/3+11％© NEC Networks & System Integration Corporation 2022

-17％

69％

125.8

112.8

310.3

193.9
62％

+9％

116.5
38％
FY22/3

FY2022/3 Factor Analysis of YoY Change (Operating Income)Business capability has been enhanced, although operating income
suffered from temporary factors
Profitability
improvement(higher value
added,
efficiency-up,etc.) +2.0（¥ Bn.）

25.6(7.5%)

GIGA School
Approx. -3.0

SG&A
Approx.
-1.9
SC/material
shortage
Approx. -2.5
Myanmar loss
Approx. -1.8

Sales increaseof DX/telecom
etc. +4.9

23.2(7.5％)(Reactional fall of
GIGA School)
-3.0

～
～
FY21/3
6© NEC Networks & System Integration Corporation 2022

(Enhanced biz capability)+4.9(Temporary factors)～～-4.3
FY22/3

FY2022/3 Orders Received by Segment(¥ Bn.)

336.9

336.8

305.0
128.3

DSL

115.2

(＋12％)

 Decreased due to the impacts of GIGA school(-14.5) and un-consolidation of a subsidiary (-1.5)

-5%
（＋9％）

 DX/workstyle innovation-related businesses
continuously grew.
- Expanded to governments/ municipalities▐ Network Infrastructures (NWI)

NWI

87.7

95.3

ESS

92.0

103.7

Others

10.0

9.5
FY21/3

7

121.7

-0%

▐ Digital Solutions (DSL)

FY20/3

 Business for telecom carriers expanded- Stronger relationship as a strategic partner(KDDI, Rakuten Mobile)

+6%

100.9

+6%

109.9

▐ Engineering & Support Services (ESS)（＋29％）© NEC Networks & System Integration Corporation 2022

4.2
FY22/3( ): excluding impacts ofreactionary fall* &SC/material shortage Increased by strong construction business evenwith the reactionary fall of GIGA school (-14.5)
・domestic transport/traffic
overseas: additional order for petro plant network
in Saudi Arabia

FY2022/3 Net Sales by Segment(¥ Bn.)

339.1
303.6

▐ Digital Solutions (DSL)
310.3

89.2

NWI

83.1

ESS
Others

8

110.3

112.8

97.4

114.1

10.3
FY20/39.8
FY21/3© NEC Networks & System Integration Corporation 2022(+8％)

 Service-provision business expanded

126.0

DSL

 Reactionary fall of GIGA school (-14.5) and unconsolidation of a subsidiary (-1.5) impacted

-8%

96.4

98.1
5.4
FY22/3-12%（+2％）▐ Network Infrastructures (NWI)
 Business for telecom carriers drove the growthwith an impact of SC/material shortage+8%（+13％）▐ Engineering & Support Services (ESS)-14%（＋18％）( ): excluding impacts ofreactionary fall* &SC/material shortage Decreased due to the SC/material shortage impact
in addition to reactional fall of GIGA school(-13.5) and mega-solar projects (-11.0)
 Domestic construction increased

FY2022/3 Operating Income by Segment(¥ Bn.)

25.6( ): to sales(7.5％)

16.2(5.4％)

13.8(10.9％)

11.7

DSL(10.3％)

9.3(10.4％)

8.1

NWI(9.8％)

ESS

6.7(6.9％)

Others/Elimination-10.3(10.4％)

-9.3

23.2

-2.4

(7.5％)(±0pt)

13.0-0.7(11.8％) (+0.9pt)

10.3

+1.0

9.1

-2.7

(10.6％) (+0.2pt)(9.3％) (-1.1pt)-9.2

Business capability improved
although operating income decreased
due to temporary factors▐ Digital Solutions (DSL) Profit decreased due to reactionary fall of GIGA
school By progress of business model change, profitability
improved (to Service+SI provision model)▐ Network Infrastructures (NWI)
 Effect of sales increase led to profit growth
despite of SC/material shortage impact▐ Engineering & Support Services (ESS)FY20/39

11.8(Gross margin：18.9％→20.5％)

FY21/3© NEC Networks & System Integration Corporation 2022

FY22/3 There was an impact of SC/material shortage in
addition to loss of a Myanmar project (-1.8)

Gross Margin by Segment
FY21/310

FY22/3

Change

DSL

19.4%

22.4%

+3.0pt

NWI

21.7%

22.0%

+0.3pt

ESS

17.6%

18.2%

+0.6ptCompany total

18.9%

20.5%

+1.6pt© NEC Networks & System Integration Corporation 2022

I. Results for the FY2022/3
II.New Medium-termManagement Plan

Review of “Beyond Borders2021”(The Previous Medium-term Management Plan)

Review of “Beyond Borders 2021”
The structural reforms with the goal ofsustainable income growth in the DX/5G era have finished.

1
2

3
13

Strengthening of competitivenessand growth power for the Digital &5G ageStrengthening of the base, schemes
and structure to create advanced
technologies and new businesses

Acceleration of innovation through
All-NESIC© NEC Networks & System Integration Corporation 2022

 DX business expanded with Symphonict.
 New businesses were created using the co-creationand self implementation business model.
 Environment enabling new technology educationand demonstration was enhanced.
(Shin-Kawasaki Technical-Base/5G Lab) Incubation was accelerated using U.S. venture
capital etc.
 "New normal" workstyles were implemented using
the Nihonbashi Innovation-Base and at distributed
offices.
 The companywide integrated DX proposal modelhas taken root.

Financial Results of Beyond Borders 2021

Target for
FY22/3Results
FY22/3

Change from
FY19/3

Record highNet sales

310

310.3

+32.4

339.1

Operating income

20

23.2

+10.4

（FY21/3）（to sales）

6.5%

7.5%

+2.9pt

7.5％

10%+

11.6%

+2.9pt(¥Bn.)

ROE
14© NEC Networks & System Integration Corporation 2022

（FY21/3）

25.6

13.5％
（FY21/3）

Achievements of Beyond Borders 2021
Profitability improvement

Expansion of DX orders

25.0%

20.5%
20.0%

17.2%

Gross margin¥6Bn.

¥13Bn.

¥27.5Bn.

15.0%
FY20/3

7.5%

10.0%

5.0%

FY22/3Co-creation with partners
 Mitsui Fudosan, TEPCO Energy Partner, etc.

4.6%

Operating margin(Smart building, new workstyle)(“JUREN” mobile battery rental service) Tokushima Prefecture, Joyo City (Kyoto Prefecture), etc.
(Local 5G)(DX for local governments)

 The University of Tokyo, Rikkyo University, etc.

0.0%

FY19.3

FY20.3

FY21.3

FY22.3

Beyond Borders 2021
15

FY21/3© NEC Networks & System Integration Corporation 2022

(Local 5G)(Digital campus)

New Medium-term Management Plan

What We Seek to Achieve in 2030

×DX

Beyond 5G(next-generation
networks)＝(

Sustainable
Symphonic
Society
Realization of a sustainable
society with prosperity
that resonates for all

Provide services that anticipate
future changes in society and technologies
Decarbonization

17

Energetic
communities© NEC
NEC Networks
Networks&&System
SystemIntegration
IntegrationCorporation
Corporation
2022
2022

Smart industry

Work/lifestyles
with greater freedom

Safetyand security

HealthWell-Being)

Sustainability of NESIC Group
Sustainable Symphonic Society

Realization of a sustainable society with prosperity that resonates for all
Initiatives to Provide Valueto Society through 2030

Materiality
Technologicalcapability

 Create environments in which
Co-creation
everyone can work more vigorously Broadbusiness
Self-imple Develop pleasant and plentiful
areas
mentation
Strengths
communities with cutting-edge
technologies
Speed
Human
 Provide robust services that underpin Challenge
resorces
spirits
safety and security in evolving society

Initiatives for growth at NESIC

 Sound and highly transparent
management
 Strengthen innovation capabilities
to create new value Create work environments where
employees can work vigorously

Purpose: NEC Networks & System Integration Corporation Group Statement
18© NEC Networks & System Integration Corporation 2022

Positioning of the New Medium-term Management Plan
Input

Leverage

OutcomeSustainable
Symphonic
SocietySocial CapitalDX

DX customers: 25,000
Co-creation partners in business×

Beyond 5G

Financial Capital (FY2021/3)
Free cash flow: ¥15.5 bn

A communication services orchestrator

Strong financial base

Human capital

DX professionals:
800
Beyond 5G
professionals: 600

Intellectual capital
Nihonbashi Innovation-Base
Shin-Kawasaki Technical Center

Manufactured capital
Nationwide service network witharound 400 bases
24/7 service

20192021 2022

Beyond Borders 2021

2024

New Medium-termManagement Plan

2027
3rdStep

2030
4thStep

Preparation period
Evolution into a new business structure
for continuous growth
Realization of“DX x Beynd 5G"

Initiatives to Provide Value to Society

Co-creation andself-implementation
business model

DeeperConsulting leveraging
our own experience

Global expansion

Value circulation
19© NEC Networks & System Integration Corporation 2022

１

Higher

2

Wider

3

Natural capital
Formulation of Sustainability Policy
Declaration of Support for the TCFD
Recommendations

Material issues

Create work environments inwhich everyone can take initiative

Develop pleasant and plentiful
communities with cutting edge
technologies
Provide robust services that
underpin safety and security inevolving society

Theme of New Medium-Term Business Plan

Shift up 2024
Elevating society

DX and Beyond 5G

From demonstration
to realization

20© NEC Networks & System Integration Corporation 2022

Relationshipwith customers

From co-creation
to creation in harmony

Business model

From project-type
to spiral-type

Spiral-Type Growth Model: A Recurring Model Based on Consulting

A factor added to new strengths
in the new medium-term
management plan

based on expertise
2 Consulting
obtained through experience in co-creation& self-implementation

1

Create value
Be smarter

Seek original value
Accelerate shift to services

Create new social value
21

Win Customers
Design / Suggest

Strengths and assets developed
under the previous
medium-term management plan Digital x 5G
 Symphonict
 Co-creation and selfimplementation biz model

Realize the customers
success and sustainability© NEC Networks & System Integration Corporation 2022

High customer value
Long-term relationshipof trust(Spiral of quality improvement)

4

OperateSite-specificconsulting

Existing
strengths and assets

RealizeApply DX

3

SI capabilities
Technological capabilities
Field Capabilities
Nationwide coverage

to realizationand operation
processes toimprove quality

Accumulateknowhow, data toenhance insightBasic Strategies

22

1

Accelerating Original Value
Creation

2

Advancing Solution Capabilities

3

Evolve into DX-Native Company© NEC Networks & System Integration Corporation 2022

1: Accelerating Original Value Creation
Provide “DX x Beyond 5G” optimum to customers
with the value created through Symphonict
Issue driven value creationfrom the customers viewpoint

Optimize
for eachcustomer

Medium- Channels sales
sized
E-Commerce
SMEs:

Speed andcost
optimization

BX

GX

1

Consulting leveraging our own
experience & site-specific consulting

23Service models for specific biz
types and specific applications
Common platform services
leveraging our strengths

Innovation

Change of thecustomers experiences

Climate issues

Working-styleinnovation

DX introduction to
on-site businesses

ICT strategy

Hybrid work

Smart building

Smart factory

Digital marketing

Robotics

Energy management

Multi-connectibility

AIVideo/voice recognition

Security

Data usage/analysis

Services management

Automated monitoring& operation

Support for every site of the customers by 400 support bases nationwide
23© NEC Networks & System Integration Corporation 2022

4
Co-creation, self-implementation and innovation

Major:
Field sales
Mediumsized

CX

Develop original services
for “missing pieces”
in addition to integration
 Co-creation withcustomers
 Enterprises
 Telecom carriers Public Co-creation withtech. partners

 ICT vendors
 Service providers
 Telecom carriers
 Start-ups

CX：Corporate Transformation
BX：Business Transformation
GX：Green Transformation

1: Accelerating Original Value Creation
Design optimal solutions through consulting leveraging our own experienceand establish a lineup of services that realize these solutions
Optimize
for eachcustomer

Medium- Channels sales
sized
E-Commerce
SMEs:

Speed andcost
optimization

24

1

Consulting leveraging our own
experience & site-specific consulting

23Service models for specific biz
types and specific applications
Common platform services
leveraging our strengths© NEC Networks & System Integration Corporation 2022

4
Co-creation, self-implementation and innovation

Major:
Field sales
Mediumsized Integrate teams to increase consulting capabilities

 Accelerate the increase in original service models
based on expertise gained through our own experienceand the digital transformation of existing businesses Strengthen the environment for flexible andsecure services
 Integrate and strengthen service operation functions

1: Accelerating Original Value Creation
Achieve innovation through co-creation and self-implementation
with customers and partners in pursuit of original value
Optimize
for eachcustomer

1
Medium- Channels：
sized
E-Commerce
SMEs

Speed andcost
optimization2
3

Consulting leveraging our own
experience & site-specific consulting

Service models for specificbusiness types and specific applications

Common infrastructure services
leveraging our strengths

4Co-creation, self-implementation and innovation

Major: Field sales
Medium-sized

On-site realization and maintenance support
25© NEC Networks & System Integration Corporation 2022

 Demonstration and development ofa leading model through co-creation with customers

 Capture global leading-edge technologies and services

with the use of venture capital and corporate venture capital (CVC) Accelerate co-creation for strengthening the local 5G business Collaborate with partners in service development and incultivation of DX professionals

2: Advancing Solution Capabilities
Expand the communication infrastructure biz into operations & DX services
and enhance local 5G project planning through DX services
Customers

Business for infrastructure operators andlocal 5G projects

Infrastructure operators

L5G Users

Offering DX services andsupport for the introduction of DX
Service

Operation
NW

Infrastructure
design andconstruction

Conventional domains

Approach to
management
and social
issuesDX Service

Planning, construction andoperation of local 5G systems
Strengthen the open RAN1
and OSS2 systems

Develop multi-skill engineers for the Beyond 5G networks
Establish a lineup of local 5G products and services
Communication infrastructure, CATV, electric power, broadcasting, etc.

26

© NEC Networks & System Integration Corporation 2022

※1：Open Radio Access Network※2：Open Source Software

A wide varietyofapplications
and needs

2: Advancing Solution Capabilities
Combine existing businesses and assets to create value for society andsustainable communities and achieve progress through DX and Beyond 5G
Provision to customers in Japan and overseas

Existing businesses
Fire and disaster control
× Beyond 5G

EmpoweredOffice(workstyle innovation)
Building automation

DX× Beyond 5G

Smart buildings
Smart industry

× Beyond 5G

Carbon neutrality
Energy management

IoT
Renewable energy
・・・×
Various operation centers
27© NEC Networks & System Integration Corporation 2022

DX

Resilience

Business operation

CATV and videoDX

Digital towns
Development of safe andsecure communities

2: Advancing Solution Capabilities
Transform all businesses to ensure they address climate change
Mitigation of climate change(Reduction of greenhouse gas
emissions)

Offering
value tocustomers

Accelerate the shift toclean energy

Reduce and optimize
energy consumption(Electric power,
distribution and others)

Increase resilience toincreasingly
devastating natural
disasters

Digital towns and energy management

✔

✔

✔

Smart industry(Office buildings and workstyles)✔

✔

Social Infrastructure business(fire and disaster control, communication,
electric power, broadcasting, marine,
national and local government and other infrastructure)

✔

✔

✔

✔

✔

✔

✔

Onshore aquaculture business and other businesses

Our actions

28

Adapt to climate change© NEC Networks & System Integration Corporation 2022

Response to changes inecosystems

Reduce our emissions 55%, establish a new dedicated promotion bodyand carry out companywide demonstrations*from the FY2019 level by 2030

3: Evolve into DX-Native Company
Leverage DX to improve quality, speed, productivity and profit,
developing a reference model
Construction

Maintenance Digitally transform the construction process(for quality enhancement and cost reduction)

 Improve maintenance and operation assets byDX

 Transform infrastructure maintenance after
construction into services and increase theiradded value Integrate maintenance information systems
and use data in a more sophisticated way

Sales and marketing Strengthen the digital marketing system
 Diversify sales approaches matched withdifferent customer attributes
29© NEC Networks & System Integration Corporation 2022

Develop a reference  Create a new support service biz modelfor DX x Beyond 5G
through our own
Administration and companywide
information infrastructure
implementation

 Implement DX across the whole group while
simultaneously standardizing processes Strengthen the base for use of information anddigital literacy
 Consulting activities inside and outside thecompany

3: Evolve into DX-Native Company
Recruit and develop advanced professionals as a source of customer value
supporting our evolution into a DX-native company
Of the total number of personnel with relevant qualifications and the like

 Develop advanced professionals mainly at theShin-Kawasaki Technical Center

Consulting
personnel
180 →2022/34002022/330

1,8002025/3DX human
resources Increase all employees' digital literacy throughDX education and enable implementation

2025/3

 Sell the ability to develop DX professionals to
outsiders to increase profitability

ShinKawasaki
Technical
Center800 →(Consulting professionals, DX professionals, beyond 5G network
professionals)(NESIC College plan)

600 →2022/38002025/3

Beyond 5G
professionals© NEC Networks & System Integration Corporation 2022

 Improve engagement as a corporate
culture helpful to employees' growth andspur inclusion and diversity

Roadmap to Medium- and Long-Term Global Expansion
Prepare for full-scale growthduring the next 2027 Medium-Term Management Plan

Step

1

Prepare for global re-expansion
 Enhance capabilities for cuttingedge technologies and service
incubation in North America Development of global humanresources Reinforce the foundations ofoverseas subsidiaries
31© NEC Networks & System Integration Corporation 2022

Step

2

Carry out a global re-cultivation
 Expand the DX business and themultiple SaaS business Cultivate markets in North
America and elsewhere

Step

3

Fully implement global expansion
 Ubiquitize solutions that combine
private 5G, energy and othertechnologies with DX
 Accelerate and enlarge theglobalization of the DX businessOrganization Strategy
Refine the organization with a view
toward the realization of DX and Beyond 5G
Point

Point

2

Point

3

32

Increase consultation and proposal
capabilities(Integrate resources for sales promotion to build
closer relationships with customers)

Increase functionality for the
implementation of strategies for carbon
neutrality and to address climate change© NEC Networks & System Integration Corporation 2022

Point

Marketing & Sales Operations Unit

3

Point

Carbon Neutral Promotion
Division1

Accelerate actions for the realization of "DX x Beyond
5G" and for shifting businesses to services provision
model(Reorganize some of the functions of the business units)

2

Business Process Innovation
Strategy Division

Business Design Operations Unit
Point

1

Point

DX Solutions Business Unit

1

Network Solutions Business Unit

Point

Environmental & Social Solutions
Business Unit

1

Administration Staff

New Business Segments
New business segments adjusted due to organizational change

Net sales
OP

¥ Bn.

DX Solutions BusinessNetwork Solutions Business

Environmental & Social
Solutions Business
33

Accelerating
DX business

Enhancing beyond 5G
networks capability

FY22.3108.0
13.1

FY22.382.0
10.5

Enhancing provision
FY22.3
capability of public DX &environment/energy related 114.9
8.5
services*The
new segment results shown here are numbers for reference by rough reclassification.
© NEC Networks & System Integration Corporation 2022

Targets as at May 10

FY25.313019

FY25.397
14

FY25.3140
16

Growth Expenses

3 years total¥30Bn.
Cost bases
Excluding M&A investment

Business
investment

 Enhancement of Symphonict
 Service-shift of existing biz
 Investment for climate-issue¥17Bn.

Human
investment

 Enhancement of consulting
capability
 Development of DX resources¥5Bn.

 DX shift of internal process Renewal of basic operations
system Office investment¥8Bn.

IT investment
etc.

M&A

34

© NEC Networks & System Integration Corporation 2022

 Enforcement of provision value
and competitiveness Enhancement of regional
system & global system

Separate from theaboveFinancial Strategies and Capital Allocation
Maintain the stability of shareholder return and flexibly invest in growing areas(¥ Bn.)

120
Free Cash Flow40

Cash in handbalance at theend of March
2022

80

Funds
35

© NEC Networks & System Integration Corporation 2022

120

Shareholder
Return22

Continue dividend payments stably fora long period of time
· With a standard of a DOE of 5.0%

M&A, etc.

Set a quota for investment in continuous growth38· M&A and investment based on business strategies(to acquire technologies and expertise,secure personnel, etc.)

Ensuring security

Setting aside funds for unexpected circumstances

60

Breakdown by
purpose of use· Secure an amount equivalent to two months of sales

Medium-term Financial Targets(¥ Bn.)FY2022/3

FY2025/3
targetNet sales

310.3

370

Record high
339.1
（FY2021/3）

25.6

Operating income

23.2

34

（FY2021/3）(to sales)

7.5%

9.2%

7.5％

13%+

13.5％

ROE

11.6%

（FY2021/3）*Targets as at May 10

36© NEC Networks & System Integration Corporation 2022

Medium-term Non-financial Targets
TargetFY2022/3

GHG emission（SCOPE 1+2）
Human
Resources

8,423t-CO(FY2020/3)

55%

reduction

By FY2031/3(from FY2020/3)

Consulting resource

180

400

2025/3DX resource

800

1,800

2025/3

Beyond 5G resources

600

800

2025/333%

50%

FY2025/3

5.9%

10.0％

2027/3Engagement score*Researched by Kincentric

Woman manager ratio（2022/4）

37

2Target year

© NEC Networks & System Integration Corporation 2022

*Forecasts as at April 28, 2022

FY2023/3 Forecasts(¥ Bn.)
FY22/3

FY23/3
Forecasts

ChangeOrders received

336.8

350

+4%

Net sales

310.3

330

+6%

Operating income

23.2

26.0

+2.8

(to sales)(7.5%)(7.9%)+0.4pt

Net income*

15.0

attributable to owners of the parent(to sales)

38(4.8%)© NEC Networks & System Integration Corporation 2022

※

15.3

+0.3

(4.6%)-0.2ptAiming at profit growth byhigher value-added businesses
while increasing investment
for the future growth~Targeting record high operating income~*Forecasts as at April 28, 2022

Dividend Plan
46

Dividend pershare (¥)

43
35

Raised dividend scale*according to the enhanced
business capability*considering DOE 5.0% as a general guide27.3

 22/3：¥5 increase from the plan
Year-end dividend ¥24(Full-year ¥43)
 23/3e：¥46/share

increasing for the 16thyear in a row

4.7* The results for the fiscal years ended March 2020 and prior thereto presented herereflect the three-for-one stock split conducted on June 1, 2020.

FY07/339

・・・・© NEC Networks & System Integration Corporation 2022

22/3 23/3e

Theme of New Medium-Term Business Plan

Shift up 2024
Elevating society

40© NEC Networks & System Integration Corporation 2022

APPENDIX

41© NEC Networks & System Integration Corporation 2022

FY2023/3 Forecasts by Segment (Full Year)（¥ Bn.）

Order received

Net sales（単位：億円）Change

350

+4%

DXS

310.3
127

+6%

( ) to sales

Change

336.8
119.8

Operating income

DXS

108.0

330

Change26.0 ＋2.8

+6%

23.2

(7.9%)(7.5%)
117

15.0

+8%
DXS

13.1

(12.8%)(12.1%)

11.0

NWS

85.0

90

+6%

NWS

82.0

85

+4%

NWS
ESS

ESS

127.8

Others4.2

2

FY22/3

FY23/3e

42

131

+3%

ESS

114.9

126

Others5.5

2

FY22/3

FY23/3e+10%*The
new segment figures shown here are numbers for reference by rough reclassification.
© NEC Networks & System Integration Corporation 2022

Others/Elimination

＋1.9

10.5

＋0.5

(12.9%)(12.8%)

8.5(7.4%)-8.9

FY22/3

12.5(9.9%)

＋4.0

-12.5

-3.6

FY23/3eSegment forecasts as at May 10

FY2023/3 Forecasts by Segment (1H)（¥ Bn.）

Order received

Net sales
Change

165.9
DXS

61.1

173

+4%

+3%

( ) to sales

Change141.0
63Operating income

147

Change7.7 ＋0.1+4%
7.6(5.2%)(5.4%)

DXS
51.3

55

+7%

DXS

6.2

5.6

(11.3%)＋0.6(10.9%)

NWS

41.5

43

+4%

NWS

37.3

39

NWS

+5%

(9.9%)

ESS
ESS

61.1

66

Others2.3

1

1H
FY22/3

1H
FY23/3e

43

+8%

ESS

48.9

52

Others3.5

1

1H
FY22/3

1H
FY23/3e+6%

3.7

Others/Elimination© NEC new
Networks& System Integration
Corporation*The
segment
figuresshown2022
here are numbers for reference by rough reclassification.

2.4(4.8%)-4.0

1H
FY22/3

4.0(10.3%)

＋0.3

3.1

＋0.7

-5.6

-1.6

(6.0%)

1H
FY23/3eSegment forecasts as at May 10

Cautionary Statement
Forecasts and targets of results mentioned in this document are future estimatesand are thus inclusive of risks and uncertain factors since they are not based on definite
facts. Please be aware that a variety of factors could cause actual results to differ
significantly from those projected. The major factors affecting actual results include theeconomic climate and social trends surrounding the business of this Company’s group,
consumer trends vis-a-vis systems and services provided by this Company’s group, as
well as pressure to lower prices and ability to cope with the market in response tointensified competition.
Factors affecting results are not limited to the ones mentioned above.
There will be some change in our business segment according to a refine in ourorganization in April 2022. The new segment figures shown in these slides are numbers
for reference by rough reclassification.

44© NEC Networks & System Integration Corporation 2022

NEC Networks & System Integration Corporation will be committed to increasing
customer value by redesigning future communications from the user's perspective.

nesic
45

© NEC Networks & System Integration Corporation 2022

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