Summary of Financial Resultfor 2Q Year to March 2024
November 24, 2023

Contents
・Financial Report for 2Q Year to March 2024

p2 to p7

・Plan for Year to March 2024

p8 to p15

・Profit Distribution

p16

・Progress of Medium-term Management Plan

p17 to p19

・Approach to SDGs

P20

・Approach to Corporate Value Enhancement

p21 to p29

・Approach to Overseas Business

p30 to p32

・Approach to Decarbonization

p33 to p34

・Social Contribution Activities

p35 to p36

1

Highlight of the financial result
Both income and profit declined year on year with a decreased income in transport
infrastructure business and an Increase in projects with many new elements.

(Unit: Hundredmillion yen)Sales

2022/32Q

2023/3
2Q

ResultResult2024/3 2Q
ResultYoY352350341-8

Operating profit

893-6

Ordinary profit

161611-5

Quarterly net income
attributable to ownersof parent company

975-2
2

By segment (1) Sales/Segment profit
Transport infrastructure business: Decline of income and profit year on year with a decrease of income andprofit in railway signals
ICT solution business : Increase of income and profit year on year due to recovery of parking systembusiness(Unit: Hundredmillion yen)2022/3 2Q

2023/3 2Q

Segment
profitSales

2024/3 2Q

Segment
profitSales

YoY

Segment
profitSales

Segment
profitSales

Transport
infrastructurebusiness

197

17191

14170

4-20-9ICT solution business

154

7158

12170

16+12+3--16--17--17-+0352

8350

9341

3-8-6

Whole company
expensesTotal

3

By segment: (2) Orders received/sales/outstanding orders(Unit: Hundredmillion yen)2023/3 2Q
Ordersreceived

Sales

2024/3 2Q

Outstanding Orders
ordersreceived

Sales

YoYOutstanding Orders
ordersreceived

Outstandingorders

Sales

Railway signals

390

174

612242

153

632-147-20+19

Smart mobility

32

1723

33

1724+1-0+1Transport
Infrastructurebusiness

422

191

635

276

170

656-145-20+21AFC

174

127

207

227

128

242

+52+0+34R&S

35

31

14

62

42

38+27+11+23

ICT solution business

210

158

222

290

170

280

+80+12+57Total

633

350

858

567

341

937

-65-8+78

Railway signal
Smart mobility

スマートモビリティ
AFC
R&S

Decrease in sales due to a decline of production process operation capacity a result of an impact ofsemiconductors procurement difficulty

Both orders received and sales remained at the same level YoY although orders received for traffic control
system and other projects

Increase in orders received for and sales of automatic ticket gates, ticket vending machines, platform doors
and parking systems.
Increase in orders received for and sales of 3D ranging image sensors and robotics

4

By segment (3) Overseas business results(Unit: Hundred
million yen)2023/3 2Q
Ordersreceived

2024/3 2Q

Outstanding Orders
ordersreceived

Sales

YoY

Outstandingorders

SalesOrdersreceived

Outstandingorders

Sales

Overseas portionof transportation
infrastructure2322936170

32377-162+2+15

Overseas portionof ICT solutions

405540444-40-0-10

Overseas total

273

33416

71

37421-202+3+5

Whole overseas

Significant decrease in orders received YoY because of the highest ever orders received in previous year due
to orders received for large projects.

Overseas railway signals

Orders received and sales for railway signal systems in Taiwan, the Philippines and other countries.

Overseas AFC

Orders received and sales for AFC systems in India, Bangladesh and other countries.
5Financial Status
Trade receivables/inventory ratio to total assets decreased from the previous term end and equity
capital slightly increased.
(Unit: Hundredmillion yen)2023/3 2Q

2023/32024/3 2Q
Change fromprevious period end

Result

1,323

1,460

1,432

-27

Trade receivables/
inventory total

738

856

784-72

Interest bearing
liabilities

126

175

137

-38

Equity capital

863

893

901

+7

Trade receivables/
inventory ratio

55.8%

58.6%

54.7%

-3.9ptInterest bearing
liability ratio

9.6%

12.0%

9.6%

-2.4ptEquity capital ratio

65.2%

61.2%

62.9%

+1.7ptTotal assets

6Cashflow statements
Final balance of cash and cash equivalent for 4Q was 10.3 billion yen due to sales payment of loans.
(Unit: Hundred million yen)

(Unit: Hundred million yen)
75-5-50+030-10-5+077

103

83

6377

OpeningbalanceBusiness
activity

Investment
activity

Financialactivity

2023/3 2Q

Translationdifference

Finalbalance

OpeningbalanceBusiness
activity

Investment
activity

Financialactivity2024/3 2Q

Translationdifference

Finalbalance

7Plan for Year to March 2024 Plan
(Unit: Hundredmillion yen)2022/32024/32023/3

Change fromprevious
period

Plan

Sales

850

854

950+95

Operating profit

53

51

60+8

Ordinary profit

65

59

68+8

Net income attributableto owners of parentcompany

45

40

47+6

Sales

850

854

950
53

22/3 23/3 24/3(Plan)

Ordinaryprofit

Operatingprofit

51

60

22/3 23/3 24/3(Plan)

65

22/3

59

23/3

68

Net income
attributable toowners of parentcompany

4524/3(Plan)

40

47

22/3 23/3 24/3(Plan)

8Orders received/sales/order backlog trend(Railway signal)
Railway signal business

PlanAim to create value with customers in post-COVID society and continue to focus on theareas of "remote monitoring/CBM," "mutual operation of directly connected lines,” "reduction oflabor," “LRT/BRT,” and “MaaS,” which contribute to reduction of fixed cost and operation cost.

Major business details: Automatic Train Control devices (ATC), Simple-structure and high-Performance
ATC by Radio Communication System (SPARCS), and so on.
Orders received(Hundredmillion yen)InterimFinalInterimFinal(Hundredmillion yen)

541

455

400

400(Hundredmillion yen)

600

600(Plan)

Outstanding orders

800

800

800

600

Sales

394

450

548

543(Plan)

23/3

24/3(Plan)

400

390
200

0

242
23/3

24/3

200

200

174
0

23/3

153
24/3

09

Orders received/sales/order backlog trend(Smart mobility)
Smart mobility business

PlanFocus efforts on the areas of "infrastructure that supports automatic driving," "Mobile Virtual
Network Operator (MVNO) in between the traffic control center and cross-points," "reduction oflabor in relation to equipment installed at cross-points" and "MaaS," which contribute toreduction of fixed cost and operation cost.

Major business details: Traffic control systems, traffic signal control systems, traffic signalcontrollers/lights, and so on.
Orders received(Hundredmillion yen)

100

Interim
Final85(Plan)

80

758075(Plan)

23/3

33

24/3

25

1215
10200(Hundredmillion yen)

2040

32

Outstanding orders

30

100

60

400

Interim
Final(Hundredmillion yen)

80

60

20Sales171723/324/3(Plan)

750

23/3

24/3
10Orders received/sales/order backlog trend(AFC)Plan

Engage in product development centering on DX from the standpoints of fixed cost reduction
and customer traffic increasing effects, provide for changing business models and meeting ofcustomer needs, thereby promoting the realization of MaaS society.

AFC business

Major business details: Automatic ticket gates, platform doors, parking control systems, and so on.
Orders received(Hundredmillion yen)

370

400

300

Interim
Final(Plan)

293

200

Sales
(Hundredmillion yen)

Outstanding orders(Hundredmillion yen)

400

400

300

227

Interim
Final

311

330(Plan)

300

182

200

200

174
100

100

0023/324/3

12723/3

12824/3(Plan)142100

023/3

24/3
11Orders received/sales/order backlog trend(R&S)
R＆S business*R＆S: Robotics & Sensing

PlanIn sensor section, focus our efforts on increasing sales of platform doors and 3D ranging image
sensors mounted on construction equipment and agricultural implements. In robotics sector,
promote activities to implement in society robots in which our company's core technologies suchas sensing and image analysis are incorporated.

Major business details: Robotics, 3D ranging image sensors and so on.
Orders received(Hundredmillion yen)10080

Interim
Final

90

7960(Plan)

620

Interim
Final(Hundredmillion yen)

100
80

40
20

Sales

90

23/3

24/3

020

1818(Plan)

23/3

24/3

1572

60

20(Hundredmillion yen)

(Plan)

1040

35

Outstanding orders

42
31

23/3

24/3

5012

Orders received/sales/order backlog trend(for year)(Unit: Hundredmillion yen)2023/3
Ordersreceived

Sales

Plan

2024/3 (Plan)
Outstanding Orders
ordersreceived

Sales

Change from previous period

OutstandingordersOrdersreceived

Sales

Outstandingorders

Railway signals

541

394

543

455

450548-86+55+5Smart mobility

7575

78580

12+9+4+5Transport
infrastructurebusiness

616

470

550

540

530

560

-76+59+10AFC

293

311

142

370

330

182+76+18+40R&S

7972

1890

90

18+10+17-

ICT solution
business

373

384

161

460

420

201+86+35+40

Total

990

854

711 1,000

950

761+9+95+50
13

By segment (Profit by segment)(Unit: Hundred
million yen)2022/3

Plan

2024/32023/3

Change fromprevious period

PlanTransport
infrastructurebusiness

5251

55+3

ICT solution business

3333

39+5Whole company
expenses-31-33-34-0

Total

53

51

60+814

Investment(Unit: Hundredmillion yen)Plan
2022/32024/32023/3

Change fromprevious period

PlanCapital investment

2526

46+19

Depreciation expenses

21

23

27+3Research anddevelopment expenses

26

28

34+6

Number of employees
hired*

35

3250+18* It is the number of employees hired by the company only.

Capitalinvestment
46

25

26

22/3 23/3 24/3(Plan)

Depreciation
expenses2123

27

22/3 23/3 24/3(Plan)

Research anddevelopment
expenses
26

28

34

22/3 23/3 24/3(Plan)

Number ofemployees hired(employees)

35

32

50

22/3 23/3 24/3(Plan)

15

Profit distribution (Dividend)
Regarding dividends, Nippon Signal is making the utmost effort to maintain the stability and continuity of theconsolidated dividend payout ratio of around 30% while reinforcing the financial structure and giving consideration to
the business results and new investments in each term.
Annual dividend of 27 yen is maintained emphasizing the dividend stability and continuity.

Year to March 2022

Year to March 2023

Year to March 2024
(Plan)

27 yen yearly

27 yen yearly

27 yen yearly

End of 2Q
7 yen
Year end
20 yen(Regular divided only)
Dividend payout
ratio
41.3%
Dividend yield 2.54%

End of 2Q
7 yen
Year end
20 yen(Regular divided only)
Dividend payout
ratio
35.8%

End of 2Q
7 yen
Year end
20 yen(Regular divided only)
Dividend payout
ratio
37.4%
Dividend yield 3.06%

27 yen27 yen* Dividend yield is calculated based on an annual
dividend divided by yearend stock price.

27 yenAnnual dividend
Dividend payout
ratio

37.4%

41.3%
35.8%

2022/32023/32024/3 (Plan)

16Progress of medium-term management plan “Next Stage 24”

Priority issues

Basic concept: “Support Next Stage of infrastructure”
1

Creation of value with customers inpost-COVID society

Introducing new products which solve management issues ofcustomers

2

Expansion of overseas business andincrease of profitability

Increasing profitability of extension/update projects

3

Boosting of designing andmanufacturing ability in thesoftware-first age

4

Promotion of ESG management andcorporate value enhancement

Improving Design efficiency (Increasing drawings reuse ratio)
Improving cost ratio and reducing inventoriesE: Developing energy saving products
S: Promoting personnel management system reformation andhealth and productivity management
G: Strengthening risk management
Introducing next generation enterprise systems
Reorganizing the Group companies’ functions andpromotion of in-house production
Reinforcing human resource development
17

Progress of medium-term management plan “Next Stage 24”
1 Creation of value with customers in post-COVID society
Accelerate the development of products for new business and their implementation in society
Progress in 1H of the 141st term
Railway signals
Signal system

Started operation of Haga/Utsunomiya LRTDetection system

Received an order for rail fracture detection system for Tokyo Metro
Marunouchi Line and Hibiya Line

CBTC*

Received an order for system design for verification test of Seibu Railway
Tamagawa Line

Railway signals
Security robot

Sold the product for Central Security Patrols; received an order for next
generation prototype

Humanoid heavyequipment robot

Received an order from JR West for multiple handling vehicle* CBTC: Communications-Based Train Control (a system to control and protect trains by using wireless telecommunications
to transmit large data between the pick up and the equipment on the ground without blocking track circuits)

18

Progress of medium-term management plan “Next Stage 24”
2 Expansion of overseas business and increase of profitability
Win orders for large projects and promote diversion of design assets, aiming to increase profitability.
Progress in 1H of the 141st term
Railway signals

Double-tracking
and increase ofvehicles

Double-tracking of Taitung line, renewal of onboard equipment andincrease of vehicles for Taiwan High Speed Rail in Taiwan

3 Boosting of designing and manufacturing ability in the software-first age
Conduct a software competition for the purpose of reinforcing and developing humanresources.
Implement job rotation in cooperation with Group companies for the purpose of enhancing
technological strength.

4 Promotion of ESG management for sustainable value creation
Disclose corporate policy and activities regarding sustainability including human capital.
Shift to a company with committees including an audit committee to build up the function tomonitor the board of directors.
19Approaches to SDGs
The Nippon Signal Group conducts its business by keeping in mind the "Sustainable
Development Goals (SDGs)" for continuous enhancement of enterprise values.
Global partnership vitalization

Global environment protection

Support for high-quality
education and culturalactivities and promotion of
females' career development

Establishment of platforms
where a diversity of workers
can work actively

Welfare promotion

Contribution to society throughproducts and services

Implementation ofenvironmental impact
reduction measures towardrealizing a low-carbon/
recycling society

Transport infrastructure
improvement
Disaster recovery support

20

Approach to Corporate Value Enhancement
Opening of the Hoga Utsunomiya LRT (Light Rail Transit)
Nippon Signal delivered the entire railway signal system.

21

Approach to Corporate Value Enhancement
Received an order for the Marunouchi Line – Hibiya Line broken
rail detection system
Due to the removal of track circuits as a result of the introduction of a
Communication-Based Train Control (CBTC) system, the function for secondary rail
breakage detection is eliminated. Introduction of this system allows output of broken
rail information by using the return current.
Station A

Substation

Return current

Terrestrial radio
Overhead wiring

Overhead current
The return currents of the left andright tracks are balanced in thenormal state.

Return current is not supplied to thebroken section, causing a difference inthe currents between the left and righttracks.

Track/left

Track/right

Breakageof the track

Balance the currents of the left and right tracks byjoining the detection sections with a balancing
bond.

Broken rail
detectionunit
No breakage detected from the track

NormalBreakage detected fromthe track

Detection section (1)Detection section (2)22Approach to Corporate Value Enhancement
Commenced the operation of the Hankyu Corporation platform
monitoring system
Nippon Signal’s FX10 Series, which is tolerant to the impact of ambient light, isapplied to all the detection sensors.

23

Approach to Corporate Value Enhancement
Handled the transition of Okinawa Urban Monorail to the 3-cartrain system.
Engaged in the platform door update and extension work and transition ofonboard equipment to that of a 3-car train system.

24

Approach to Corporate Value Enhancement
Commenced demonstration experiments of QR digital tickets
Service that enables customers to purchase digital tickets by selecting any boarding andalighting stations, thereby allowing them to get on and off trains by using the QR code25

Approach to Corporate Value Enhancement
Demonstration Experiment of Kuru Link® in Urawa Misono Area
To improve the QOL of the people who live, enjoy leisure time, and work in theUrawa Misono Area and provide them with sustainable services

26

Approach to Corporate Value Enhancement
Delivered a traffic system display board to the Akita Prefectural
Police Headquarters
Displays the images taken by the cameras installed and the map of the traffic
status within the prefecture27

Value Co-Creation with Customers After the COVID-19
Pandemic

G7 Mie-Ise-Shima Transport Ministers’ Meeting: Exhibited
multiple handling vehicle28

Value Co-Creation with Customers After the COVID-19
Pandemic

G7 Mie-Ise-Shima Transport Ministers’ Meeting: Cooperation ofsecurity devices

Coordinated the device operations by lending X-ray luggage inspection devices
and body scanners (product under development)29

Development of Overseas Business
Expanded the business across 30 countries and regions

Bangladesh

Myanmar
China

Egypt

Beijing Nippon Signal Co., Ltd.

South Korea

Yangon OfficeDhaka Office

Taipei Office

Nippon Signal
Bangladesh Private Limited

UgandaNippon Signal Technology Taiwan Co., Ltd.

TaiwanIndia

PhilippinesIndonesia

30の国
30の国と地域と地域に展開… Business result… Continuous development expected30

Expansion of Overseas BusinessTransformation of the Huadong Line of Taiwan to a double-track line:
Received an order for the existing facility improvement businessPart of the construction for transforming a single-track section to a double-trackline of the Huadong Line (between Haulian and Zhiben) to reinforce the transportcapacity of Eastern Taiwan

Pingxi Line that runs from the North-Eastern Taiwan to the inland
31

Expansion of Overseas Business
Received an order for Uganda transport signal system
Installation of 25 new intersections in addition to the existing 13 sections

32

ESG Management Promotion and Corporate Value
Enhancement

Comparison of CO2 emission between our CBTC (SPARCS) andconventional train control system

31.９
11.3

11.3

Preconditions

ATC installation

Line type: Conventional line, iron wheel, double track
Line length: 7.5km
No. of stations: 4 (one equipment room)
No. of cabs: 6-cab train (total number)Radio interval: 300m (No. of track circuits: 50T)

TD installation
ATO installation
Ground device
Ground radio installation

About 70%
reduction

9.2
CONVENTIONAL TRAIN CONTROL SYSTEMSPARCS（Simple-structure and high-Performance ATC by Radio Communication System）

9.4
8
1.4
SPARCS(Unit: t)

33

ESG Management Promotion and Corporate Value
Enhancement“Forest of Nippon Signal” activity

34

ESG Management Promotion and Corporate Value
Enhancement
The 10th Testudo Matsuri was held
Received 2,750 visitors

35

ESG Management Promotion and Corporate Value
Enhancement
Co-sponsored children’s Dreamland, “Bolero”
Co-sponsored the event that helps children in the Tohoku Region to have dreams
and hopes.
Introduced our products by exhibiting them in the event booth.

36

Business forecasts are established based on the information available
to us at the current point in time and certain preconditions that are
determined to be rational. However, the actual business results may
differ significantly from the forecasts due to various other factors.

37

https://www.signal.co.jp/movies/