Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2024
[Japanese GAAP]
August 6, 2024
Company name: Nippon Signal Co., Ltd.
Stock exchange listing: Tokyo
Code number: 6741
URL: https://www.signal.co.jp
Representative: Hidehiko Tsukamoto
President and CEO and COO
Contact: Hiromasa Fujimoto
General Manager, General Affairs Department
Phone: 03-3217-7200
Scheduled date of commencing dividend payments:―
Availability of supplementary briefing material on financial results: Not available
Schedule of financial results briefing session:
Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Three months ended
17.6
(202)
618
16,6542
June 30, 2024
1.2
(1,521)(997)
14,155(1,067)
June 30, 2023
(Note) Comprehensive income:Three months ended June 30, 2024:
Three months ended June 30, 2023:
Basic earnings
per share

Three months ended
June 30, 2024
June 30, 2023¥¥

(67) million
650 million

[-%]
[-%]

Diluted earnings
per share

Yen

Yen

0.03
(17.12)-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2024
March 31, 2024
(Reference) Equity: As of June 30, 2024:
As of March 31, 2024:

Net assets

Capital adequacy ratio

Million yen

Million yen

150,151
165,295

95,257
96,821
95,257 million
96,821 million

¥
¥

%

63.4
58.6

2. Dividends
Annual dividends
1stquarter-end
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025

2ndquarter-end

3rdquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

-

7.00

-

24.00

31.00

10.00

-

21.00

31.00

-

Fiscal year ending
March 31, 2025 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings per
Net sales
Operating profit
Ordinary profit
to owners of parent
share
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

100,000

1.5

8,000

17.2

8,800

11.5

5,700

6.6

91.39

(Note) Revision to the financial results forecast announced most recently: None
* Notes:(1) Significant changes in the scope of consolidation during the period : No
(2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of June 30, 2024:

68,339,704 shares

As of March 31, 2024:

68,339,704 shares2) Total number of treasury shares at the end of the period:
As of June 30, 2024:
5,968,382 shares
As of March 31, 2024:*

5,968,382 shares

3) Average number of shares during the period:
Three months ended June 30, 2024:

62,371,322 shares

Three months ended June 30, 2023:

62,371,434 shares

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants
or an audit firm : No*

Proper use of earnings forecasts, and other special matters
The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as
well as certain assumptions that are deemed to be reasonable by management. Therefore, there might be cases in which actual results
differ materially from forecast values due to various factors.
For the forecast of financial results, please refer to “1. Qualitative Information on Quarterly Financial Results, (3) Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” on page 3 of the Attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ........................................... 2(1)

Explanation of Operating Results .................................................................................2

(2)
(3)

Explanation of Financial Position .................................................................................3
Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information .......................................................................................3

2. Quarterly Consolidated Financial Statements and Principal Notes ...........................4
(1)
(2)
(3)
(4)

Quarterly Consolidated Balance Sheets ........................................................................4
Quarterly Consolidated Statements of Income and Comprehensive Income .................6
Quarterly Consolidated Statements of Cash Flows ...................................................... 8
Notes to Quarterly Consolidated Financial Statements ................................................ 9(Notes on going concern assumption) .......................................................................... 9(Notes in case of significant changes in shareholders’ equity) ...................................... 9(Accounting methods adopted particularly for the preparation ofquarterly consolidated financial statements) ................................................................. 9(Segment information, etc.) ........................................................................................ 10-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended June 30, 2024 (April 1, 2024 to June 30, 2024), the outlook of the global economy
remained uncertain due to such factors as increasing geopolitical risks caused by Russia’s prolonged invasion of
Ukraine and heightened tensions in the Middle East as well as market trends surrounding the forthcoming US
presidential election.
The Japanese economy has been on a gradual recovery trend due to such factors as strong consumption by tourists
visiting Japan on the back of the weaker yen, despite the continuing effect of rising energy prices caused in part by the
impact of the economic sanctions against Russia. The economy is expected to moderately recover against the backdropof wage increases and an improvement in the employment conditions, despite concerns over a slowdown in consumer
consumption caused by rising prices.
Under these circumstances, the Group newly began its third medium-term management plan “Realize-EV100” in
FY2024. In the light of manufacturing industry challenges identified by the business environment and needs that havedrastically changed due to the COVID-19 pandemic, the Group will work to further improve its business efficiency,
develop new business and new materials, and broaden global business. As one of the initiatives under the plan, theGroup established a sales office in the Republic of Uganda in July to engage in business activities in East Africa, wherechronic traffic congestion is an issue.
The Company’s business results for the three months ended June 30, 2024 were 26,573 million yen in orders
received (down 15.3% year on year) and 16,654 million yen in net sales (up 17.6% year on year). Operating loss was
202 million yen (compared to operating loss of 1,521 million yen in the same period of the previous fiscal year), ordinary
profit was 618 million yen (compared to ordinary loss of 997 million yen in the same period of the previous fiscal year),and profit attributable to owners of parent was 2 million yen (compared to loss attributable to owners of parent of 1,067
million yen in the same period of the previous fiscal year).
An overview of the Company’s business by segment is as follows.
[Transportation Infrastructure]
In Railway Signal Systems, we received orders for and recorded sales of Automatic Train Control systems, interlocking
devices, Communication-Based Train Control systems and other products from railroad operators in the Japanesemarket. We also engaged in the development of new products that support safe travel, such as releasing a new railway
crossing status detection/support system using a high-resolution camera. We will continue to contribute to therealization of safe and comfortable travel.
In overseas markets, such as Indonesia, we received orders for and recorded sales of Railway Signal Systems. In
particular, we have successfully received an order for a set of signal system for a new extended section from Jakarta
Mass Rapid Transit in Indonesia, where our value was recognized for the system already implemented. We will continue
to contribute to the creation of safe and comfortable communities through traffic infrastructure meeting infrastructure
demand of Asian countries based on our installation track record in these markets.
For Smart Mobility Systems, particularly Road Traffic Safety Systems, we received orders for and recorded salesof products such as MVNO (network provision service business) and traffic control systems. We also actively
participated in various automated driving demonstration projects and will continue to provide products and technologies
that contribute to the “Vehicle-Infrastructure Cooperative System” linking automated vehicles with traffic signals androadside sensors.
As a result of the above, orders received were 16,024 million yen (up 7.0% year on year) and net sales were 7,393
million yen (up 8.5% year on year). Segment loss was 45 million yen (compared to 840 million yen in the same periodof the previous fiscal year).
[ICT Solutions]
In AFC, particularly Station Service Network Systems, we received orders for and recorded sales of platform screen
doors, ticket vending machines, passenger gates, parking lot equipment and other products in the Japanese market. In
addition, we proactively worked on a fare service using cashless payments such as credit cards, debit cards, and QR
codes, which is expected to be rapidly introduced in metropolitan areas, as well as conducted demonstration trials ofsuch a service.
-2-

In the overseas markets, especially in Bangladesh and Vietnam, we received orders for and recorded sales of AFC
systems and other products.
In R&S, which focuses on robotics and sensing, we received orders for and sales of 3D laser ranging image sensors
to be installed in platform screen doors as well as construction and agricultural equipment, X-ray baggage checking
equipment, which speedily detects the presence of dangerous items and other products. In July, West Japan Railway
Company started using a humanoid robot for work at height (our multiple handling vehicle) along its railroad routes.
With the aim of addressing the social issue of heavy labor and dangerous work on site, we will continue to contributeto improved safety and efficiency.
As a result of the above, orders received were 10,549 million yen (down 35.7% year on year) and net sales were9,260 million yen (up 26.1% year on year). Segment profit was 783 million yen (up 266.5% year on year).

(2) Explanation of Financial Position(i) Assets, Liabilities and Net Assets
Total assets as of June 30, 2024 were 150,151 million yen, a decrease of 15,143 million yen from the end of the previous
fiscal year, mainly due to a 21,197 million yen decrease in notes and accounts receivable - trade, and contract assets,
despite a 4,837 million yen increase in inventories.
Liabilities decreased by 13,579 million yen from the end of the previous fiscal year to 54,893 million yen, mainly
due to a 7,400 million yen decrease in short-term borrowings, a 2,545 million yen decrease in notes and accounts payable- trade, a 1,758 million yen decrease in income taxes payable, and a 1,303 million yen decrease in provision for bonuses.
Net assets were 95,257 million yen, a decrease of 1,564 million yen from the end of the previous fiscal year, mainly
due to a 1,496 million yen decrease in retained earnings from dividends, etc.
(ii) Cash FlowsThe balance of cash and cash equivalents (“cash”) as of June 30, 2024 totaled 11,996 million yen, an increase of 235
million yen from the end of the previous fiscal year.
Cash flows in each area of activity during the three months ended June 30, 2024 are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 10,032 million yen, compared with a cash inflow of 10,770 million yen
in the same period of the previous fiscal year. The principal cash inflow factor was a decrease in trade receivables, while
the principal cash outflow factors were an increase in inventories and a decrease in trade payables.
(Cash flows from investing activities)
Net cash used in investing activities was 866 million yen, compared with a cash inflow of 92 million yen in the same
period of the previous fiscal year. The principal cash outflow factor was the purchase of property, plant and equipment
and intangible assets.
(Cash flows from financing activities)
Net cash used in financing activities was 8,953 million yen, compared with a cash outflow of 9,156 million yen in thesame period of the previous fiscal year. The principal cash outflow factors were repayment of short-term borrowingsand dividend payments.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There are no revisions to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2025 (April
1, 2024 to March 31, 2025) announced on May 14, 2024.
Among the Group’s main businesses, Railway Signal Systems and Smart Mobility Systems in the Transportation
Infrastructure segment and AFC in the ICT Solutions segment tend to have a higher proportion of the Group’s sales atthe end of each fiscal year, as capital investment by domestic railroad operators, which are our major customers, andpublic investment by police and other entities are the main drivers.
-3-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

11,803

12,038

Electronically recorded monetary claims - operating

72,154
1,151

50,957
1,660

Merchandise and finished goods

6,239

7,876

Work in process

9,119
7,175
2,999

11,766
7,729
3,583

(1)

(0)

110,641

95,611

Buildings and structures, net
Machinery, equipment and vehicles, net

6,316

6,225

1,009

1,294

Tools, furniture and fixtures, net

1,965
5,488

2,036
5,488

68

65

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Land
Leased assets, net
Construction in progress

2,277

1,817

Total property, plant and equipment

17,125

16,927

2,876

3,034

Investment securities

29,04329,006Long-term loans receivable

2
3,040

2
3,078

Intangible assets
Investments and other assets

Retirement benefit asset
Deferred tax assets

686

707

Allowance for doubtful accounts

1,899
(20)

1,803
(21)

Total investments and other assets

34,65034,577

Other

Total non-current assets
Total assets-4-54,65354,540165,295

150,151

(Million yen)
As of March 31, 2024

As of June 30, 2024

Notes and accounts payable - trade

13,397

10,851

Electronically recorded obligations - operating

5,989
18,7005,153
11,300Liabilities
Current liabilities

Short-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for loss on orders received

5

4

2,491
2,755

733
1,451

719

629

Other

13,75014,077

Total current liabilities

57,80944,201Long-term deposits received
Long-term accounts payable - other

99

99

27

26

Lease liabilities

5
727
545

4
719
615

Non-current liabilities

Deferred tax liabilities
Provision for contingent loss
Retirement benefit liability

9,259

9,227

Total non-current liabilities

10,663

10,692

68,47354,893

Share capital
Capital surplus

10,000
7,585

10,0007,585

Retained earnings
Treasury shares

71,860(6,571)70,365(6,571)

Total shareholders’ equity

82,874

81,38013,574

13,548372
13,947328
13,877

96,821

95,257

165,295

150,151

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Three Months Ended June 30(Million yen)
For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

Net sales
Cost of sales

14,155

16,654

12,173

13,211Gross profit

1,981

3,442

Selling, general and administrative expenses

3,503

3,645

Operating loss

(1,521)(202)

Non-operating income
Interest income

0

0

256

411

Foreign exchange gains

182
107

157
193

Rental income from real estate

78

78

Dividend income
Dividend income of life insurance

Nursing services income

2

0

Other

16

16

Total non-operating income

643

858

Non-operating expenses
Interest expenses

14

12

Rental expenses on real estate

13

13

Taxes and dues
Nursing services expense

46
9

2
8

Waste disposal expenses
Other

29
6

0

Total non-operating expenses

120

37

(997)

618

Gain on sale of non-current assets

00Gain on sale of investment securities

425-

Total extraordinary income

425

0Loss on valuation of investment securities

0
0

0
-

Total extraordinary losses

00Profit (loss) before income taxes

(572)

618

Income taxes

494

616

Profit (loss)(1,067)

2(Details)
Profit (loss) attributable to owners of parent(1,067)2

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on sale and retirement of non-current assets-6-

(Million yen)
For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

1,741
(22)

(43)

Total other comprehensive income

1,718

(69)

650

(67)

650

(67)

Comprehensive income(25)(Details)
Comprehensive income attributable to owners of parent-7-

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

Cash flows from operating activities
Profit (loss) before income taxes

(572)

618

Depreciation

517

552

Loss (gain) on sale and retirement of non-current assets
Loss (gain) on sale of investment securities

0
(425)

0
-

Increase (decrease) in provision for contingent loss

–
(256)

70
(412)

14

12

19,699(5,043)(1,247)

20,688(4,837)900Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities(3,406)

Increase (decrease) in retirement benefit liability
Other, net(16)(1,764)413(70)(2,300)Subtotal

11,806

11,328

256
(14)

362
(12)

Income taxes paid

(1,286)(2,206)

Income taxes refund

9
10,77010,032

(37)

(37)

37
(529)

37
(653)

(329)

(286)

Purchase of investment securities

(23)

(2)

Proceeds from sale of investment securities
Other, net

978
(3)

76

Net cash provided by (used in) investing activities

92

(866)

(7,895)(10)-(7,400)40

Interest and dividends received
Interest paid

Net cash provided by (used in) operating activities

560

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from deposits received from an affiliated company
Proceeds from deposits received from an unaffiliated entity
Repayments of lease liabilities
Dividends paid

(1)

(93)
(2)

(1,249)(1,498)Net cash provided by (used in) financing activities(9,156)(8,953)

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

6

22

1,713

235

Cash and cash equivalents at beginning of period

8,365

11,760Cash and cash equivalents at end of period

10,078

11,996-8-

(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable

I(Notes in case of significant changes in shareholders’ equity)
For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Dividends paid
(Resolution)

Type ofsharesTotal amount ofdividends(Million yen)

Dividend pershare (Yen)

Reference date

Effective date

Source ofdividends

May 10, 2023
Board of Directors

Commonshares

1,247

20.00

March 31, 2023

June 2, 2023

Retainedearnings

2. Significant changes in shareholders’ equity
Not applicableII

For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Dividends paid
(Resolution)

Type ofsharesTotal amount ofdividends(Million yen)

Dividend pershare (Yen)

Reference date

Effective date

Source ofdividends

May 14, 2024
Board of Directors

Commonshares

1,496

24.00

March 31, 2024

May 31, 2024

Retainedearnings

2. Significant changes in shareholders’ equity
Not applicable(Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements)(Deferral of cost variances)
Cost variances arising from seasonally fluctuating operating rates are expected to be mostly eliminated by the endof the cost accounting period (end of the fiscal year or the second quarter of the fiscal year); therefore, such costvariances are deferred as current assets (other) at the end of the first quarter of the fiscal year under review.
(Calculation of tax expenses)
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting to
profit before income taxes for the consolidated fiscal year, including the first quarter of the fiscal year under review,
and multiplying income/loss before income taxes for the quarter by the estimated effective tax rate.

-9-

(Segment information, etc.)[Segment information]
I For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Information on net sales and profit (loss) by reportable segment and classification of revenues(Million yen)
Quarterly
consolidated
statements ofincome andcomprehensive
income(Note 2)

Reportable segment
Adjustments(Note 1)

Transportation
Infrastructure

ICT Solutions

Net sales to external customers
Intersegment internal sales ortransfers

6,812

7,343

14,155-

14,155

-

-

-

-

-

Total
Goods or services transferred
at a point in time
Goods or services transferredover time
Total

6,812

7,343

14,155-

14,155

1,538

3,345

4,883

-

4,883

5,273

3,998

9,272

-

9,272

6,812

7,343

14,155-

14,155

(840)

213

(626)

(894)

(1,521)Total

Net sales

Segment profit (loss)

Notes: 1. Adjustments of (894) million yen in segment profit (loss) represent corporate expenses that are not allocated to reportablesegments. Corporate expenses are primarily expenses of the administration divisions of the parent company’s
headquarters that are not attributable to any of the reportable segments.
2. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statements of income andcomprehensive income.

II For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Information on net sales and profit (loss) by reportable segment and classification of revenues(Million yen)
Quarterly
consolidated
statements ofincome andcomprehensive
income(Note 2)

Reportable segment
Adjustments(Note 1)

Transportation
Infrastructure

ICT Solutions

Net sales to external customers
Intersegment internal sales ortransfers

7,393

9,260

16,654-

16,654

-

-

-

-

-

Total
Goods or services transferred
at a point in time
Goods or services transferredover time
Total

7,393

9,260

16,654-

16,654

2,109

3,883

5,993

-

5,993

5,284

5,376

10,661-

10,661

7,393

9,260

16,654-

16,654Total

Net sales

Segment profit (loss)
783
738
(941)
(202)
(45)
Notes: 1. Adjustments of (941) million yen in segment profit (loss) represent corporate expenses that are not allocated to reportablesegments. Corporate expenses are primarily expenses of the administration divisions of the parent company’s
headquarters that are not attributable to any of the reportable segments.
2. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statements of income andcomprehensive income.

- 10 -

[Related information]
I For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Information by region
Net sales
Japan

Asia
12,805(Million yen)
Total

Other
1,310

40

14,155

Note: Net sales are classified by region based on the location of the customer.

II For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Information by region
Net sales
Japan

Asia
15,494(Million yen)
Total

Other
1,072

87

Note: Net sales are classified by region based on the location of the customer.

- 11 -

16,654