Summary of Financial Resultfor Year to March 2023
May 19, 2022

Highlight of the Financial Result
The amount of sales remained at a slight increase due to the effect of the difficulty in procuring
semiconductor parts. The operating profit, ordinary profit, and net income attributable to owners ofparent company resulted in a decline due to the low capacity utilization of the production line and theincrease of the development investment cost.

(Unit: Hundred million yen)March2021
ResultSales
Operating profit
Ordinary profit

Current net income
attributable toowners of parentcompany

March2022
ResultMarch 2023
Result927

8508546465

59574953
4551
40

Change fromprevious
period

+4-2-6-41

By Segment (1) Sales/Segment Profit
 Transport infrastructure business:
Decline of income from the previous period due to the effect of the deferral of sales andso on.
 ICT solution business:
Increase of income due to the increase of AFC projects including the handling of farerevision.
(Unit:Hundred million yen)March 2021
Segment
profitSales

March 2022
Segment
profitSales

March 2023
Segment
profitSales

Change fromprevious period
Segment
profitSalesTransport
infrastructure business

511

71488

52

470

51

-17-1

ICT solution business

415

16362

33

384

33+22+0--30--31--33--1

927

57

850

53854

51+4-2Whole
expenses
Totalcompany

2

By Segment: (2) Orders Received/Outstanding Orders(Unit: Hundred millionyen)

March 2022
Ordersreceived

Sales

March 2023

OutstandingordersOrdersreceived541

394

Railway signal

372

425

Smart mobility

67

62

875

75

440

488

404

616

AFC281287

160

Smart city

7574

ICT solution business

356

Total

797

Transport
infrastructure business

396SalesOutstandingorders543

Change fromprevious period

Ordersreceived

Sales

Outstandingorders+169-30+147

7+7+12-1

470

550+176-17+146

293

311

142+12+24-18

1079

72

18+4-2＋8362

171

373

384

161+17＋22-10

850

575

990

854

711+193+4+136

Railway signal

The increase of the orders received is due to the effect of the overseas business. The income resulted
in a decline due to the deferral of sales.

Smart mobility

Orders received and income increased as boosted by traffic control system projects, etc.

AFC

スマートモビリティ

The increase of the orders received is due to the effect of the overseas business. The income
increased as it was boosted by the projects such as handling of domestic fare revision.

Smart city

The income decreased due to the decrease of sales of 3D range image sensors, security systems, etc.
3

By Segment (3) Sales of Overseas Business(Unit: Hundredmillion yen)Overseas railway
signalMarch 2022
Ordersreceived

Sales

March 2023

OutstandingordersOrdersreceived

Sales

OutstandingordersComparison with theprevious period

Ordersreceived

OutstandingordersSales3765

15824262339+205-3+180

Overseas AFC01018411148+40+0+29

Overseas total

3776

17728373387+246-2+210

Overseas railway signals

Increase in orders received was mainly driven by Manila Subway in the Philippines and an increase insales by Ahmedabad Metro in India.

Overseas AFC

Increase in orders received was mainly driven by Cairo Metro Line No. 4 in Egypt and an increase insales by Dhaka Metro MRT Line-6 in Bangladesh.

Whole overseas

The outstanding orders were the highest ever due to the large projects of orders received overseas.

4Financial Status(Unit: Hundred millionyen)

March 2023

March 2022

Change fromprevious period

Result

1,340

1,460+119

Tradereceivables/inventory
total

782

856

+74

Interest bearing liabilities

117

175+57

Equity capital

867

893+26

Trade receivables/
inventory ratio

58.3%

58.6%+0.3pt

Interest bearing liability
ratio

8.8%

12.0%+3.2pt

Equity capital ratio

64.7%

61.2%

-3.5ptTotal assets

5Cashflow Statements(Unit: Hundred million yen)

+20

-23

132

Openingbalance(Unit: Hundred million yen)

-67

Business
activity

Investment
activity

Financialactivity

March 2022

+063

Translationdifference

Finalbalance+17-35+39-083

Business
activity

Investment
activity

Financialactivity

TranslationdifferenceFinalbalance

63

Openingbalance

March 2023

6Plan for Year to March 2024 Plan
(Unit: Hundred million yen)March 2022

March 2023

March 2024
Change fromprevious period

Plan

Sales

850854950＋95

Operating profit

53

51

60+8

Ordinary profit

65

59

68+8

Current net income
attributable to owners ofparent company

4540

47+6

Operatingprofit

Sales
850

854

95053

March March March2022 2023 2024

(Plan)

51Current net income
attributable to ownersof parent company

Ordinary
profit60

March March March2022 2023 2024(Plan)

65

March2022

59

March2023

6845

March2024(Plan)

4047

March March March2022 2023 2024(Plan)

7

Orders Received/Sales Trend (Railway Signal) Plan
Railway signal business

Focus efforts on facility streamlining such as automatic operation, remote monitoring, andSPARCS (wireless train control system) and labor saving as a solution to support customers’
structural reform in society ‘with COVID’. Address the development of products that meet orhelp resolve the social issues including decreasing labor population, natural disasters, anddecarbonization.

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

Orders received

Sales

600

600

400400(Hundred million yen)(Hundred million yen)

541
200

372

455

200

425394

March 2022

March 2023

45000
March 2022

March 2023

March 2024
(Plan)March 2024
(Plan)

8Orders Received/Sales Trend (Smart Mobility) Plan
Tackle the development and commercialization of the products towards theimplementation of the automatic driving services by linking the infrastructure such as the“Kuru Link” (first/last one mile travelling service) and signals with self-drive vehicles.

Smart mobility business

Major business details: Traffic control systems, traffic signal control systems, traffic signal controllers/lights, and so on.

Orders received

Sales(Hundred million yen)(Hundred million yen)

100

10080

80

60

60

4067

75

85

40

20

2000
March 2022

March 2023

March 2024
(Plan)

62

March 2022

7580

March 2023

March 2024(Plan)

9Orders Received/Sales Trend (AFC)Plan

Address the development of cashless payment systems in view of the full-scale
development of MaaS, a new-type platform monitoring system using a 3D ranging
image sensor with low investment cost, and low-cost platform doors.

AFC business

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

Orders received

Sales(Hundred million yen)(Hundred million yen)

400

400

200

281

293

370

0200

287

311

330

March 2023

March 2024

0March 2022

March 2023

March 2024(Plan)

March 2022

(Plan)

10Orders Received/Sales Trend (Smart City)
Smart city business

Plan

Promote the building security solution project including entry/exit systems that respond to
the new technologies such as face recognition and non-contact technologies, and tackle thedevelopment of a variety of robots.

Major business details: Security gates, automatic cleaning robots, 3D ranging image sensors, and so on.

Orders received

Sales(Hundred million yen)(Hundred million yen)

100

100

80

80

60

60

40

75

79

90

40

20

20

00
March 2022

March 2023

March 2024
(Plan)

7472

March 2022

March 2023

90

March 2024
(Plan)

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

Orders received

 ICTソリューション（海外）ICT Solution (Overseas)

Sales(Hundred million yen)

 交通運輸インフラ（海外）Transportation Infrastructure (Overseas)(Hundred million yen)

 ICTソリューション（国内）
ICT Solution (Domestic)
 交通運輸インフラ（国内）Transportation Infrastructure (Domestic)

1,200
1,200
1,000
797
800

037990
41

1,000
680

800

242
454

600

356600

850

854

10

1165

950
687

62

414

351

372

422

408

443

March 2022

March 2023

March 2024 (Plan)

332
400

4002001,000402

373

460

0
March 2022

March 2023

March 2024(Plan)

200012By Segment (Profit by Segment)(Unit: Hundred millionyen)

March 2022

Plan

March 2024

March 2023

Change fromprevious period

PlanTransport
Infrastructurebusiness525155+3ICT solution
business3333

39+5- 31- 33-34-053

51

60+8

Whole company
expensesTotal

13

Investment Plan
(Unit: Hundred million yen)March 2022

March 2024

March 2023

Change fromprevious period

PlanCapital investment

2526

46+19

Depreciation expenses

2123

28+5Research anddevelopment expenses

262837+8

Number of employees
hired (employees) *35

3250+18* Number of employees hired relates to Nippon Signal only.

Capital investment
462526

March March March2022 2023 2024(Plan)

Depreciation
expenses

Research anddevelopment expenses

37212328

March March March2022 2023 2024(Plan)

2628

March March March2022 2023 2024(Plan)

Number of employees
hired (employees)

35

3250

March March March2022 2023 2024(Plan)

14

Profit Distribution (Dividend)
Regarding dividends, Nippon Signal is making the utmost effort to maintain the stability and continuity of the consolidated
divided payout ratio of around 30% while reinforcing the financial structure and giving consideration to the business results andnew investments in each term.
The dividend of 27 yen is maintained as the annual dividend based on our focus on 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 dividend only)
Dividend payout ratio
37.4 %
Dividend yield 3.06 ％End of 2Q 7 yen
Year end
20 yen(Regular dividend only)
Dividend payout ratio
41.3%Dividend yield 2.54％

End of 2Q 7 yen
Year end
20 yen(Regular dividend only)
Dividend payout ratio
35.8%* Dividend yield is calculated by dividing the annual dividend by the yearend share price.
Annual dividend

27 yen27 yen

37.4%

41.3%

27 yenDividend payout ratio

35.8%

March 2022

March 2023

March 2024 (Plan)
15

Progress of Medium-term Management Plan “Next Stage 24”
Basic concept: Support Next Stage of Infrastructure
１Expansion of overseas
business and increase ofearning capacity

Intensively focusing on customer orientation and enhancing marketing strengthand proposal skills
Operating business to take hold in a megacity and promoting strategies
for business units
Streamlining and strengthening global management abilities

３Key issues

２

Creation of value withcustomers in the post
COVID society

Expanding solution business and developing products aimed to support
customers’ structural reform

Enhancement of design andmanufacturing strengths insoftware-first era
Promotion of ESG management
and enhancement of corporate
value

Optimizing QCD starting with design process and enhancing the groupstrength and in-house production
Establishing a design and production system which enables development
capability enhancement and DX *1
E: Participation in TCFD *2 and promotion of decarbonized society
S: Human resource system reform, work style reform and promotion of healthand productivity management
G: Response to Corporate Governance Code revision and conformity to thePrime Market
Reorganization of Group company functions, human resource development,
introduction of next-generation enterprise system* 1 DX: Digital Transformation* 2 TCFD: Task Force on Climate-Related Financial Disclosures

16

Creation of Value with Customers in the Post COVID Society
Main topics in the 140th year

Railway signals<1>Automaticoperation<2> CBTC*１

Running Test of JR Kyushu Kagoshima Main Line
Received an order for system design for verification test of Seibu
Railway Tamagawa Line

Automatic operation (smart mobility)<3> BRT*２

Received orders for JR East Kesennuma Line BRT
and JR Kyushu Hitahikosan Line BRT<4> I2V *3

15 projects in total including Kashiwanoha,Utsunomiya, Shiojiri, Hitachi and Sakaimachi<5> Kuru Link*4

1st phase verification test for Urawa Misono

MaaS (cashless)
<6>
<7>
<8>

Non-contact
credit card payment<9> QR code

JR Kyushu verification test
Fukuoka City subway verification test
Operation started at Enoshima Electric RailwayDetails
Supplementary material
P10
Supplementary material
P11

Details

Supplementarymaterial P14

Supplementarymaterial P15, 16

Supplementary material
P17

Details

Supplementarymaterial P21

Verification test for JR Kyushu and JR West in
Fukuoka and Nagasaki areas*1 Communication-Based Train Control (system that controls and protects trains through wireless communication of a large volumeof data between a ground coil and a cab coil regardless of the blocking of track circuits, etc.)*2 BRT: Bus Rapid Transit
17*3 I2V: Automobile communication from Infrastructure to Vehicle*4 Kuru Link: Name of the Last One Mile transportation service around a station

Expansion of Overseas Business and Increase of Earning Capacity
Aim at the improvement of earnings through the fulfilment and maintenance of overseas projects and continuous
business expansion through extension projects and market development, and business development established inlarge cities as well as reinforcement of adaptability to the global environment by promoting overseas localization.

Business results in the 140th year
Newly establishedhubNippon Signal Bangladesh Private Limited (November 2022)New Line

Cairo Metro Line No. 4 (Railway signals and PSD)
Manila Subway (Railway signals)

Extension

Delhi Metro Line No. 8 (Railway signals)

Increase of vehicles Beijing Metro Line 15 (Railway signal)

Plan for the 141st year
New

India (AFC)
Bangladesh (Railway signal, AFC, PSD)

Extension

India (Railway signal)
Indonesia (Railway signal)

Doubletracking/increase of vehicles

Taiwan (Railway signal)
18

Enhancement of Design and Manufacturing Strengths
in Software-first Era
Started operation of the stage gate system designed for the purpose of enhancing QCD and
implemented the efficiency improvement of the production line for the increase of production ofplatform doors.
Promotes development and design of products which are competitive in the market (automatictrain operation, utilization of cloud and cashless payment in the transportation area) in thesoftware-first era.

19