FY24

Financial Results
NIPPON SIGNAL CO., Ltd. (Securities Code: 6741)

May 14, 2024

Copyright © NIPPON SIGNAL CO.,LTD.
All Rights Reserved.

Sales and Profit Change
Sales and profit increased for a period from the year to March 2019 to the year to March2020.
Although business results had been affected by the coronavirus pandemic and short
supply of semiconductors since the year to March 2021, business showed recovery inthis period turning into increase in both sales and profit.

(Unit: 100 million yen) 2018/3

19/3

20/3

21/3

22/3

23/3

24/3

Changefrompreviousperiod

Sales

837

998

1,116927

850

854985+130

Operating income

2070895753

51

68+17

Ordinary profits

2979966465

5978+19Profit attributable toowners of parent

2053

65

4945

4053+12Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

1

By segment (1) Sales/Segment profit
 Transport infrastructure business: Increase of sales and income from those of the previous
period due to increases in overseas business and sales for JR ICT solution business: Increase of sales and income from that of the previous period due torecovery of demand for both domestic AFC equipment renewal and parking space equipment
2022/32023/3

Change fromprevious period2024/3(Unit: 100 million yen)Segment
profitSales

Segment
profitSales

Segment
profitSales

Segment
profitSales

Transport
infrastructure business

488

52

470

51539

62+68+10ICT solution business

362

33384

33

446

39+61+6--31--33--33--0

850

53

854

51

985

68+130+17

Whole company
expenses
Total

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

2

By segment: (2) Orders received/Sales/ outstandingorders
2023/3(Unit: 100 million yen)Ordersreceived

2024/3
OutstandingordersSales

Ordersreceived

Change from previous period
OutstandingordersSales

Ordersreceived

OutstandingordersSales

Railway signal

541

394

543

748

466

825+206+71+282

Smart mobility

75

75

781

73

16+6-2+8Transport infrastructurebusiness

616

470

550

830

539

841+213+68+290

AFC

293

311

142

428

346

225+134+34+82

R&S

79

72

18

126

99

45+46+27+27

ICT solution business

373

384

161

555

446

270+181+61+109

Total

990

854

711

1,385

985

1,112+395+130+400

Railway signal

Orders received and outstanding orders recorded the highest ever due to significant increase in orders received
in overseas business.

Smart mobility

Orders received increased as boosted by MVNO sales expansion, etc.
*MVNO(Mobile Virtual Network Operator) ... Network provision service businessスマートモビリティ
AFCR&S

Both orders received and sales increased due to recovery of demand for renewal of automatic ticket gates, ticket
vending machines and automatic fare adjustment machines as well as demand for parking space equipment.
Both orders received and sales increased since sensing and Group companies’ medical equipment businesswere robust.
Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

3

By segment (3) Sales of overseas business2023/3(Unit: 100 million yen)Ordersreceived

Overseas railway
signal2024/3

OutstandingordersSales

Ordersreceived

Change from previous period
OutstandingordersSales

Ordersreceived

Outstandingorders

Sales

242

62339

353

108

584+110+46+244

Overseas AFC

41

1148

0642-40-4-6

Overseas total

283

73387

354

115

626

+70+42+238

Overseas Railway signal

Orders received for large projects including Taitung line in Taiwan and Ahmadabad Metro inIndia.

Overseas AFC

Sales were mainly from Ho Chi Min in Vietnam and Ahmadabad in India.

Whole overseas

Orders received were the highest ever and outstanding orders reached a new high forthe second year in a row due to orders received for large projects.

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

4

Financial Performance
2024/3(Unit: 100 million yen)2023/3

Change fromprevious period

Result1,460

1,652+192

Tradereceivables/inventory total

856

958+102Interest bearing liabilities

175

187+11Equity capital

893968+74

Trade receivables/
inventory ratio

58.6%

58.0%

-0.6ptInterest bearing liabilityratio

12.0%

11.3%

-0.7ptEquity capital ratio

61.2%

58.6%

-2.6ptTotal assets

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

5

Cashflow statements
Cash and cash equivalents at end of year was 11.7 billion yen due to an increase incontract liabilities, etc.
(Unit: 100 million yen)

(Unit: 100 million yen)

+67-29-３+17Openingbalance

Business
activity-35+39Investment Financial
activity
activity

March 2023

-083

Translation Finaldifference balance

-0117

83

Openingbalance

Businessactivity

Investment Financial
activity
activity

Translation Finaldifference balance

March 2024
Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

6

Plan for Year to March 2025 Plan
2025/32023/3(Unit: 100 million yen)2024/3

Change fromprevious
period

Plan

Sales

854

985

1,000+14

Operating profit

51

68

80+11

Ordinary profit

597888+9Net income attributable toowners of parent company

405357+3

Sales
854

985Operatingprofit

1,000
51

23/3 24/3 25/3(Plan)

68

Net income
attributable to ownersof parent company

Ordinary
profit80

23/3 24/3 25/3(Plan)

59

23/3

78

88
40

24/325/3(Plan)

53

57

23/3 24/3 25/3(Plan)
Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

7Orders Received and Sales Trend (Railway Signal) Plan
Strive to develop a self-driving system using the existing signal safety equipment and to realize
laborsaving in service and maintenance. Additionally, meet the needs for infrastructure inAsian countries to contribute to building of comfortable and safe cities supported by transport
infrastructure.

Railway signalbusiness

Main business: Automatic Train Control devices (ATC), Simple-structure and high-Performance ATC by Radio
Communication System (SPARCS), and so on.

Sales

Orders received(100 million yen)(100 million yen)

800

600

600
400
400

748
541

500

200

200

394

466

470

24/3

25/3

00
23/3

24/3

25/3(Plan)

23/3(Plan)

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

8Orders Received/Sales Trend (Smart mobility) Plan
Smart mobility business

Tackle tasks towards the implementation of automatic driving services andlaunch a new solution business including wireless equipment using MVNO
(network provision service business).

Main business: Traffic control systems, traffic signal controllers/lights, and so on

Orders received

Sales(100 million yen)(100 million yen)

100

100

80

80

60

60

40

75

8190

40

20

2000
23/3

24/3

25/3(Plan)

75

73

80

23/3

24/3

25/3(Plan)

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

9Orders Received/Sales Trend (AFC) Plan
Provide new products that support payment systems in a smart mobility
society as well as services which are connected with various terminals using aservice connection platform called "iDONEO."AFC Business

Main business: Automatic ticket gates, platform doors, parking control systems, and so on.

Orders received

Sales(100 million yen)(100 million yen)

400

400

428

200

370

200
311

293

0346

350

24/3

25/3

0
23/3

24/3

25/3
(Plan)

23/3(Plan)
Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

10Orders Received/Sales Trend (R&S) Plan
R&S business* R&S: Robotics and Sensing

Merge our core technologies including sensors and image analysis with cuttingedge technologies of robotics to contribute to the realization of a future society
where humans and robots work in collaboration.

Main business: Robotics, 3D ranging image sensors, and so on.

Orders received

Sales(100 million yen)(100 million yen)

150

150

100

10050

126
79

110

050

72

99

100

24/3

25/3(Plan)

023/3

24/3

25/3(Plan)

23/3

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

11Orders Received/Sales Trend(By Domestic/Overseas Business)

Plan

ICTソリューション（海外）(Overseas)
ICT solution

Orders received

Sales(100 million yen)(100 million yen)

交通運輸インフラ（海外）Transport infrastructure (Overseas)
ICTソリューション（国内）
ICT solution(Domestic)
交通運輸インフラ（国内）Transport Infrastructure (Domestic)

1,500

353
1,000990
41242

500

1,500

1,385
０555

1,070
10150

470

332

373

1,000

500

476

440

985

1,000

6
108

8117

439

442

408

430

433

23/3

24/3

25/3 (Plan)

854
1162
372

00
23/3

24/3

25/3 (plan)

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

12

Profit by SegmentPlan2025/3(Unit: 100 million yen)2023/32024/3

Change fromprevious periodPlanTransport
infrastructurebusiness

516265+2

ICT solution
business333950+10

Whole company
expenses-33-33-35-1Total

51

6880+11Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

13

Investment
2025/3(Unit: 100 million yen)2023/32024/3

Change fromprevious period

PlanCapital investment26

4359+16

Depreciation expenses

232334+10Research anddevelopment expenses

28

2937+7

Number of employees
hired (employees)*

325075+25* Non-consolidated number of employees of the company
Capitalinvestment

Depreciationexpenses

59
43
26

23/3 24/3 25/3(Plan)

34
23

23

23/3 24/3 25/3(Plan)

Research anddevelopment
expenses

28

29

37

Number ofemployees hired(employees)

75

32

23/3 24/3 25/3(Plan)

50

23/3 24/3 25/3(Plan)
Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

14

Profit distribution (Dividend)
Regarding dividends, Nippon Signal sets the target for the meantime of the consolidated dividend payout ratio at
30% or higher and DOE at 2.0% as a lower limit index in principle according to the policy to reinforce profit
distribution to our shareholders.
Based on this basic policy, the annual dividend is 31 yen for the year to March 2024 as well as for the year toMarch 2025.
Year to March 2023

Year to March 2024

Year to March 2025
(plan)

27 yen yearly

31 yen yearly

31 yen yearly

End of 2Q:
Year end:

7 yen
20 yenDividend payout ratio:
41.3%
Dividend yield:
2.54％

End of 2Q:
Year end:

7 yen
24 yenDividend payout ratio:
36.2%
Dividend yield:
2.99％

End of 2Q:
Year end:

10 yen21 yenDividend payout ratio:
33.9%* Dividend yield is calculated by dividing the annual
dividend by the yearend share price.
32

41.3%

Annual dividend
30

50.0%

36.2%

45.0%

33.9%

40.0%

35.0%
28

30.0%

Dividend payout ratio
26

25.0%

31 yen31 yen

20.0%

24
15.0%

27 yen

10.0%

22

5.0%

20

0.0%

2023/32024/32025/3(Plan)

Copyright © NIPPON SIGNAL CO.,LTD. All Rights Reserved.

15

Business Overview
Two “automatic operations” started on
the Kashii Line and Kagoshima Main LineGOA*2.5 automatic operation started on Kashii Line,
GOA2.0 automatic operation support system verification
started on Kagoshima Main Line
Number of applicable routes

GOA2.5 …

24 routes

GOA2.0 …

37 routes*Including routes applicable to GOA 2.5(in Japan)
16*GOA: Grade of Automation

Business Overview
Haga-Utsunomiya LRT (Light Line) in operation
Nippon Signal supplied all railroad signal systems and implemented"train interlocking controllers" linked with LRT side equipment

17

Business Overview
Started test runs for Seibu Tamagawa Line radio train
control (CBTC) system
Ensuring safe and efficient railroad operation
Optimizing blocking times at crossings

Movement blocking

Streamlined equipment

Movement blocking

Flexible operation

Optimized crossings*CBTC (Communications-Based Train Control)… System to control and protect trains by using wireless telecommunications to transmit large data between the train
and track equipment on the ground without blocking track circuits

18Business Overview
Conducted test runs for the regional railroad radio
train control system
Reducing track circuits and wayside equipment to save laborfor maintenance and inspections,contributing to permanent regional railroad operations
Reduce ground equipment
between stations

Wayside radio/antenna

No track circuit

Cableless waysidecoilStation AStation B
Station processor

Station C

Track trains between stations* This system is developed by Nippon Signal under the Railroad Technology Development andPromotion System by the Ministry of Land, Infrastructure, Transport and Tourism.
19Business Overview
Hokuriku Shinkansen line extension
from Kanazawa to Tsuruga in operation
Nippon Signal delivered signal devices and platform doors for the extension.

Nishi Kyusyu Shinkansen

Hokuriku Shinkansen

Hokkaido Shinkansen

20Business Overview
Increased platform door orders for barrier-free measures

Lightweight platform door (JR Kyushu Kyudai Gakkentoshi Station)

Lightweight platform door (Seibu Kokubunji Station)

Elevating platform door (Kintetsu Tsuruhashi Station)

Elevating platform door (JR West Sannomiya Station)

21

Business Overview
Hankyu Railway platform monitoring system in operation
Nippon Signal delivered all detection sensors in use and implemented
FX10 series - highly resistant to ambient light22

Business Overview
Sales expansion of EMV and QR payment compatible ticket gate machines
Touch-payment by cards and smart phones has been adopted byabout 80 companies since 2020 (including those under consideration)

23

Business Overview
BRT Hikoboshi Line in operation
Delivered bus location systems, signage, traffic right control system
for alternating traffic in bus-only road sections,and gates to prevent wrong entry at crossing roads.

BRT travel location
browser app[Dedicated for smartphone](for passengers)

Bus location system (cloud)*Built in the NS Group data center

Control
deviceGNSS satellite

Closednetwork

InternetControl
deviceEControldevice

Bus location system
display (8 stations)

Mobile network (carrier redundancy)
Closed network

Blocked section<2>

StationBStation A

Bus location
system display

Crossingwith publicroad

JR Kyushu ChikuhoSasaguri Railway Division

JR Kyushu Bus
Soeda Office

Blocked section<1>

E

JR Kyushu Head OfficeTunnel

Bus location system display:
12 locations in total

Station DBRT bus

EControldevice

EBus location
system display

Bus location
system display
Controldevice

EE

Station C

Emergency
power supply*BRT: Bus Rapid Transit system

Bus location system

Bus location
system display

24

Business Overview
MVNO service
Building a dedicated network that converts traffic signal control agency
communications from wired to wireless, and providing line service businessNTT equipment

Terminal box(NTT equipment)

NTT station
Traffic signal

Analog wired connection
NTT contract scope

Analog line used

Radio unit
Docomo/UQNSequipment

MVNO(NS-IT)

RouterEncryption
Traffic control center

Mobile network (4GLTE) Digital wired connection
Contract scope of this business

Mobile line used25

Business Overview
MVNO service
Sending images of intersections to the traffic control center via MVNO toreduce traffic congestion and prevent traffic accidents

MVNO data center (NS-IT)
Traffic control center

Carrier station
Base station

MVNOMVNO

26

Business Overview
Delivered traffic display boards for Akita Prefectural Police Headquarters
Showing camera images and maps for traffic situation in the prefecture27

Business Overview
100% LED traffic signals by 2028
LED lights can save 750.5 Wh of electricity*Prerequisites: Intersection with 6 general vehicle lights and 8 pedestrian lights installed28

Business Overview
Cooperation on security devices at
G7 Transport Ministers' Meeting in Ise-Shima, Mie29

Business Overview
Showcased multifunctional heavy railroad equipment at
G7 Transport Ministers' Meeting in Ise-Shima, Mie30

Business Overview
Toward the practical application of multifunctional railroad heavy equipment

31

Expansion of International BusinessBangladeshChinaBeijing Nippon Signal Co.,Ltd.

Egypt
Yangon OfficeSouth Korea

Dhaka Office

Nippon Signal Technology Taiwan Co.,Ltd.
Taipei OfficeTaiwanIndia

Philippines

UgandaIndonesia

Actual development
Planned for continued development

Order backlog(Unit: Billions of yen)

150
100
500India

TaiwanSoutheast Asia

400

200

300

150

200

100

100

500032

Expansion of International Business
Received order for double-tracking, equipment renewal
and renovation of Taiwan Hua-Tung Line
Construction for double-tracking Hua-Tung Line (Hualien to Chihben)
to increase transportation capacity in eastern Taiwan

Train running inland from northeastern Taiwan (Pingxi Line)33

Expansion of International Business
Market expansion in Taiwan

34

Expansion of International Business
Winning a contract for the signal system for
the Ahmedabad Metro project (phase 2 section)
Delivered the radio train control system SPARCS,
electronic interlocking devices, field devices

35

Expansion of International Business
Winning a contract for the signal system for Jakarta Mass Rapid
Transit project (phase 2 section)
Delivered radio train control system SPARCS, electronic interlocking
devices, PID* system, and field devices.

36*PID (Passenger Information Display): Display system installed in a station concourse and platforms to show train information.

Expansion of International Business
Winning a contract for traffic signal systems in Uganda
Installed at 25 new intersections in addition to the 13 existing ones.

37

Expansion of International Business
Traffic signal system for Bengaluru urban area
Delivered signal lights, signal controllers, vehicle detectors to measuretraffic flow, and central equipment to be installed at 29 intersections

Bengaluru

38

Environmental Efforts
Aiming for 100% green energy operation
Transition to green energy operation at the following manufacturing sites
will be completed by May 2023.
Started procurement Electricity consumption in Reduction of CO2 emissionof green electricity
FY23 (MWh)(t) in FY23

Kuki Office

October 2022

2,870

1,407

Ageo Factory

October 2022

783

384

Utsunomiya
OfficeMay 2023

2,494

1,222

Nisshin Tokki
Co.,Ltd.

March 2022

215

92

Asahi Denki
Co.,Ltd.

January 2023

9547

Yamagata Nisshin
Denshi Co.,Ltd.

April 2023

752

344

* Electricity consumption after introducing green electricity which is multiplied by theemission factor in the plan before introduction of green electricity

39

Environmental Efforts
Nissin Electronics Service Repair Center initiatives
Broken parts of railroad signal equipment in operation at each railroad operator
are recycled at the repair center and returned to the railroad operator.

40

Our earnings forecasts and other statements are based on information
currently available to us and certain assumptions that we consider
reasonable. Actual results may differ significantly from the forecasts due
to a variety of factors.

41