Financial Results for the Fiscal Year
Ended March 2019
May 8, 2019
Yushi USHIJIMA, President
NEC Networks & System Integration Corporation(TSE: 1973, NESIC)Agenda1.Financial Summary-FY 2019/3 Financial Results-FY 2020/3 Forecasts-Dividend Plan

2.Medium-Term Management Plan(~FY 2022/3)

Agenda1.Financial Summary-FY 2019/3 Financial Results-FY 2020/3 Forecasts-Dividend Plan

2.Medium-Term Management Plan(~FY 2022/3)

FY2019/3 Summary▐ Sales and profits grew. Net income reached a record high.
Result reflects effect of increased sales and improvement in profitability despite
expenditure for growth (approx. ¥2 bn).
 Orders received: Orders for general companies and telecom carriers expanded,
offsetting the negative impact (around ¥28 bn) of mega solar projects.（Excl.
impact of mega solar projects: +９％）(¥ Bn.)FY2018/3

ChangeForecasts

as at Jan 30, 2018

Orders received

287.8

284.7

-1%

290

Sales

267.9

277.9

+4%

280

Gross margin

16.5%

17.2%

+0.7ptーOperating income

11.1

12.8

+1.7

12.0

(4.1%)(4.6%)+0.5pt

(4.3%)(to sales)(2.7%)(3.2%)+0.5pt

(2.7%)

ROE

7.6%

8.7%

+1.1ptFree cash flows

2.0

2.8

+0.8

(to sales)

Net income

attributable to owners of the parent

4

FY2019/3

7.4© NEC Networks & System Integration Corporation 2019

8.9

+1.5

7.5

FY2019/3 Orders Received by Segment( )shows growthrate without solar
PJs orders(¥ Bn.)

279.2
7.1

287.8

284.7 -1%

6.4

9.0

87.0

80.3

OthersSocialInfra.

86.5

Carrier 68.7
Networks

Enterprise
Networks 117.0

17/3
5

68.5

73.0

125.8

122.5

18/3

19/3

▐ Enterprise Networks

Work-style innovation-related business
continued to expand.

－The number of office visitors increased 41% yoy.
(Reached a record high on an year basis, topping 10,000)(+9%) Projects for financial customers wereconcentrated in the current fiscal year.
-8%(-1% )+7%(+20%)-3%(+10%)© NEC Networks & System Integration Corporation 2019

▐ Carrier Networks
Orders from telecom carriers, mainly forbase stations, increased.
Orders from non-carriers, particularly
those from hotels, increased.

▐ Social Infrastructures
Orders decreased primarily due to thenegative impact of the mega-solar businessand a reaction to increased orders fordomestic large-scale public projects in theprevious fiscal year, despite orders foroverseas large-scale projects (approx. ¥10bn).

FY2019/3 Net Sales by Segment( )shows growthrate without solar
PJs sales(¥ Bn.)

257.9
Others

6.6

Social
82.4
Infra.

Carrier 61.6
Networks

267.9
7.0

85.2

64.9

▐ Enterprise Networks
+4%
277.9
7.4

(+6%) Expansion across almost all of the sectors
centering on work-style innovation related
business

77.3

-9%

70.5

(-6%)

+9%

(+9%)

- Sales of EmpoweredOffice: +9％▐ Carrier Networks
Sales for both telecom carriers andnon-carriers remained solid.

▐ Social Infrastructures
Enterprise
Networks 107.4

17/3
6

110.9

18/3

122.8

+11%

(+13%)

19/3© NEC Networks & System Integration Corporation 2019

Business related to mega-solar plants(civil engineering) and overseas sales
declined
Sales for broadcasting/cable TV
businesses increased.

FY2019/3 Operating Income by Segment(¥ Bn.)

Total

10.0

（3.9%）

11.1（4.1%）

12.8 +1.7 ▐ Enterprise Networks（4.6%）(+0.5pt) Income increased with higher sales,

an improved sales-mix and reduced cost.

Active used growth expenditures centeringon DX technologies (cloud, RPA, AI…).

( ): to sales

Social 6.0
Infra. (7.3%)
Carrier 3.6
Networks (5.8%)

+0.1

4.7

-0.3

13.4

+2.6

3.4

(4.5%) (+0.5pt)

5.0(6.7%) (-1.0pt)(4.0%)(7.7%)

Enterprise
8.8
Networks (8.2%)(9.7%)

Others/Elimination

-8.4

-8.2

17/3

18/3

7

3.5

10.8

▐ Carrier Networks(10.9%) (+1.2pt)

Income decreased, largely due toincreased growth expenditures,
including the launch of new businesses
and the establishment of a new JV
for base stations.

▐ Social Infrastructures
-8.8

-0.6

19/3

© NEC Networks & System Integration Corporation 2019

Income increased, reflecting improvementin profitability through fixed cost
reductions and improved efficiency.

FY2020/3 Forecasts（Forecasts as at April 26, 2019）▐ Aim for steady growth in sales and profits in the first fiscal yearof the new Mid-Term Management Plan.
 Expansion in work-style innovation-related business and businesswith telecom carriers despite macroeconomic uncertainty
 Further acceleration of investment for growth

FY19/3

Forecasts

ChangeOrders received

284.7

295

+4%

Net sales

277.9

295

+6%

Operating income

12.8

13.0

+0.2

(to sales)(4.6%)(4.4%)-0.2pt

Net income

8.9

8.9

+0.0

(3.2%)(3.0%)-0.2ptattributable to owners of the parent(to sales)8

FY20/3（¥bn.）© NEC Networks & System Integration Corporation 2019

（Forecasts as at April 26, 2019）

Dividend Plan

Increasing the corporate value through growth investment
and continuing to increase shareholder return based on stabledividend at the same time.

▐ Taking DOE (dividend on equity ratio) into account.
 FY19/3 Year-end dividend of ¥40 per share,
an increase of ¥2 from the plan (annual dividend of ¥78)
 FY20/3: Planning increased dividend of ¥80 per share

Planning increase
for the 13th year
in a row
64
60

Dividend
per share
(¥)

14
7
7

FY07/3
9

45

20
10
10

08/3

22
11
11

09/3

25
14
11

10/3

26

28

13

14

13

14

19

12/3

13/3

11/3

30

32

70
35

72
36

74
37

78
40

26

© NEC Networks & System Integration Corporation 201980
40

Yearend

40

Interim

30

32

35

36

37

38

14/3

15/3

16/3

17/3

18/3

19/3 20/3(Forecast)Agenda1.Financial Summary-FY 2019/3 Financial Results-FY 2020/3 Forecasts-Dividend Plan

2.Medium-Term Management Plan(~FY 2022/3)

1. Review of the Previous Medium-Term Plan

Policy and Target of the Previous Medium-Term Plan

▌Basic policy
Top line
expansion

Strengthening
business
capabilities

 Further growth through the enhancementof services, infrastructure, and global business Strengthening the business base that will
support growth(Improving the structure in strategic areas;
expanding investment in human resources
and business) Improving business efficiency(Cutting costs; strengthening SCM)

▌Medium-term targets




12

Sales
Operating income
Operating margin
ROE© NEC Networks & System Integration Corporation 2019¥300 Bn.
¥16.5 Bn.
5.5%
10％

Review of Previous Medium-Term Plan
The targets were not achieved because growth did not keep up with a fall inthe existing biz (Carrier NW & Social Infra.) in the first year of the plan
8.7
ROE(%)
6.5

7.0

7.6

（¥Bn.)Net sales 280.0
257.9

267.9

10.0

▌Profitability improved.
 Gross margin improved to over 17%(a record level).

11.1

12.8

 The profitability of large-scale projects is achallenge.

▌Positive Results in thestrengthening of business bases
FY6/3

FY17/3

FY18/3

FY19/3

Previous medium-term management plan13

 Though enterprise area grew, it was not
sufficient to offset a fall in existing
businesses.

ROE improved more than 2 pts from FY16/3.

14.1

Operatingincome277.9▌Sluggish growth in the top line

© NEC Networks & System Integration Corporation 2019 Launched business schemes that will lead tothe next step

2. Basic Policy & Targetsof the New Medium-Term Plan

Vision for 2030
NESIC will contribute to the achievement of SDGs
by going ahead toward the vision

Socialvision torealize

More comfortable and convenient communications society

Our
futurevisionOrchestrator who produces a new value chain leveraging
our strengths, in collaboration with partners

Construction
partners

Cloud service
providersIndustry peers

NESIC
Technologicalcapabilities

Ability toprovide services

Startups

Customerbase

Businessdevelopment
capabilities

ICT/equipment
manufacturers

Customers

To become a company that exerts its presence with high competitiveness andearnings power.
15© NEC Networks & System Integration Corporation 2019

Medium- to Long-Term Environmental Recognition
The business environment will change dramatically
due to social issues and technological innovations
Opportunities

Threats

Diversification andleveling of earnings
opportunities

Digitalization

Creation of new
business
opportunities

5G

Higher productivity andoutsourcing needs ofoperation at customers

Labor shortage

Changes in theexisting SI model
Contraction of theconstruction business
Securing of humanresources andsuccession oftechnologies

Accelerating shift to a new business model andstrengthening it to keep up with business
opportunities provided by digital & 5G
16

© NEC Networks & System Integration Corporation 2019

Our Competence
Business creation capabilities

Pioneer of work-style innovation
Usage of technologies by our own practiceCollaboration with various partners

Nationwide businesscapabilities

Sales, SEs as well as on-site
capabilities such as construction
Nationwide support services
network (approx. 400 bases)

Technological capabilities& credibility
From social infra.
to cutting edge services
Multi-vendor products& services

The “Only 1” position

to provide new technologies promptly as a total service
in the coming Digital & 5G age

Strengthen expertise and competitiveness byenhancing our competence.
17© NEC Networks & System Integration Corporation 2019

Growth Strategies with “NESIC × Digital × 5G” (Overview)

Business innovation
services

DX platform
Cloud shift and cloud SI(Self practice and modeling)
5G migration & network virtualization
Local 5G (5G of private networks)

5G infrastructure
18© NEC Networks & System Integration Corporation 2019

Automization and BPO
of operation

Toward“ Communication services”orchestrator

Digitalsolutions

Nationwide TechnologicalBusinessbusinesscreation
capabilities
capabilities & credibility capabilities

Theme of the Medium-Term Plan

Beyond Borders
To go beyond every border and barrier such as market borders,technological barriers, competitive barriers, organizational borders,ability borders or performance borders.

Move up to a next stage with
“Creation,” “Change” and “Challenge.”
19© NEC Networks & System Integration Corporation 2019

Management Targets (FY2022/3)▌Make a shift to the top line over the ¥300 bn▌Shift profitability to the industry level (FY22/3 is a check point).

(¥ Bn.)FY2019/3
Results

FY2022/3
Targets(Reference)
Record-high

Net sales

277.9

310

292.2

Operating income

12.8

20

(Operating margin)

4.6%

6.5%

8.7%

10% or
more

ROE
20

© NEC Networks & System Integration Corporation 2019

(FY2015/3)

16.2(FY2015/3)

5.5%(FY2015/3)

9.6%(FY2014/3)

Positioning of Medium-Term Plan toward Vision for 2030
Socialvision torealize

More comfortable and convenient communications society

Our
futurevisionOrchestrator who produces a new value chain leveraging
our strengths, through collaboration with partners

Changes insociety/technology

2030

5G, digital, cloud first, SDGs, etc.
2021

Strengthen growth power and earnings power by strengthening
the business structure and constitution in anticipation ofenvironmental changes in five and ten years’ time.
 Strengthening of competitiveness in existing businesses
2019  Creation of new businesses and revenue sources Renewal of record-high performance21© NEC Networks & System Integration Corporation 2019

Basic Strategies

 Strengthening of competitiveness and growth
power for the Digital & 5G age
 Strengthening of the base, schemes and structure tocreate advanced technologies and new businesses Acceleration of innovation through All-NESIC

Shifting to sustainable profit growth.
22© NEC Networks & System Integration Corporation 2019

Measures (Strengthening of Growth Power)▌Started-up DX business and launched advanced services
Promotion of collaboration with advanced companies
Announcement of “intelligence DX” concept
・Development and launch of services
such as CPaaS “Communication Connect”▌Promoted new business schemes/partnership
Establishment of K&N System Integrations
Entry into LPWA business

Joint venture with KDDI

Joint business with Sony Networks Communications and ORIX

▌Created a foothold for establishing 5G technologies

Participation in 5G!Pagoda (5G international standardization projectthrough Japan-EU partnership)*CPaaS (Communication Platform as a Service)*Company names, product names and service names stated are trademarks or registered trademarks of companies.

23© NEC Networks & System Integration Corporation 2019

Measures (Strengthening of Competence)
Conducted reorganization
to strengthen medium- to long-term growth power
Three Business Units to exert expertise and competitiveness

Digital Solutions
Business Unit

Consolidated SI service functions forenterprises and related SE & ICT platforms
Strengthening of digital businessdevelopment, including workstyle innovation

Network
Infrastructures
Business Unit

Integrated SI functions in the network rea
with high public nature
Strengthening of readiness for network
sophistication, including social
infrastructures

Engineering & Support
Services Business Unit
24

© NEC Networks & System Integration Corporation 2019

Consolidated business assets for thedevelopment of businesses nationwide
Realization of high project quality andhighly efficient productivity

Measures (Strengthening of Competence)Strengthening of digital business creation andcollaboration capabilities
Consolidated advanced technologies and business creation functions

Business Design Operations Unit

Company-wide
technologicalstrategy

Planning of
new businesses

Started up with
120 people

Partnership& alliance<Areas to strengthen in the medium term>
DX business, work-style innovation business, CAMBRIC
technologies, image recognition and analysis, 5G services,and discontinuous new businesses creation
Enhancement of
human resources(specialists)
25

DX & software technologies
Business development, consulting© NEC Networks & System Integration Corporation 201920 people →60

Measures (Acceleration of Collaboration with Partners)▌Collaboration for business creation (with startups)
Introduction to the Japanese market
Function and business collaboration, etc.

Business collaboration with promising startups(Discovery of cutting-edge solution & services)

NESIC’s CVC(Jan. 2018)

NESIC

U.S. venture capital

Sozo Ventures(Apr. 2019)

Accelerator of
Silicon Valley

InterMedia Laboratory Inc.

Startup

ALE Co., Ltd.

StartupStartupStartupStartup(May 2019)▌Collaboration for the expansion of the top line (with telecom carriers , etc.)
Services

NESIC
26

BPO

© NEC Networks & System Integration Corporation 2019

Telecom
carriers, etc.

End
users

New Business Segments according to Reorganization
New segments

Old segments

Enterprise
NW

Construction,
operation
andmaintenance

Office ICT

Digital Solutions

OfficeICT
Carrier
NW

Socialinfrastr
uctures

27

Carrier
infrastructures

Socialinfra

Public ICT(Non-carrier)

Regionalbiz

Global© NEC Networks & System Integration Corporation 2019

Construction,
operation
andmaintenanceConstruction,
operation
andmaintenanceExpertise

PublicICT
Highreliability

Network
Infrastructures
Carrier
Infra.

SocialInfra.

Engineering& Support
Services

Construction,
operation andmaintenanceConstruction
power

Regionalbiz

Deployment
power

Global3. Strategy by Business Segment

1. Digital Solutions Business
Market trends
Domestic IT market

2022

2018

¥16.5
trillion¥18.5
trillion

Cloud shift

Cloud SI: ¥4.9 trillion
Public cloud: ¥1.5 trillion
Wireless shift

Number of IoT terminals: 20 bn units
Growth rate of domestic 5G:

Twice the global average

Digital shift

IoT ¥3.2 trillion, AI ¥1.1 trillion
BigData ¥1.5 trillion

Social issues to solve

Strategies

Sales: ¥101 bn. → ¥110 bn.
FY19/3→FY22/3
OP: ¥8.5 bn.→ ¥11 bn.

 Enhance EmpoweredOffice using digital tech.
･Evolve to provide business innovation withwork-style ＋DX.
･Expand competitiveness with the DX platform Accelerate the business process reform biz.
･Further practice for modelling and consulting.

 Business development by collaboration withpartners.
･Accelerate the commercialization of
cutting-edge tech.
･Promote alliance in both development andmarket deployment.

Growth investment¥3 bn. for 3 years

 Development and verification of the DX service businessmodel.
 Development of cloud services/industry solutions
29© NEC Networks & System Integration Corporation 2019

Evolution of Business with DX (e.g. EO, work-style innovation)

Evolution to work-style innovation that
“empowers business” with EO x DX
Layer of past EO business

Empowering Business

OfficeNESIC’s digital solutions that will

empower business

Enhanced and empowered by ICT(contribute to higher productivityof organizations)by taking one step further with DX.
Innovation

Utilization of

Activities DX tech.
Communication tools

Tools

Business/process reforms

Cloud collaboration
Image recognition
Behavior analysis, etc.

Communication tools

Place
EmpoweredOffice30© NEC Networks & System Integration Corporation 2019

EmpoweredOfficeConsulting2. Network Infrastructures Business
Market trends
Virtualization and speed /capacity
up is progressing toward pre-5G
in 2021.

Server

Virtualization

Virtualization
platform common tocarriers

Network

Speed/capacity up
100/400G

Scalable NW(slice operation)

Wireless
Base stations

NSA
Pre-5GSA
Private-LTE

By 2021

By 2023

NSA：Non-Standalone, SA：Standalone

Marine market is buoyant, withan annual size of ¥200 bn. asinternational traffic in Asia is
experiencing an upward trend
Demand for disaster prevention
and reductionSocial issues to solve

Strategies

Sales: ¥78 bn. → ¥105 bn.
OP: ¥5.4 bn. → ¥8.5 bn.

FY19/3→FY22/3

 Concentrate the resources into 5G
 Business cultivation via collaboration as acarrier partner, .
(Expand the carrier service business)
 Strengthen the submarine communications
and marine observation business globally.
 Expand unique solutions and operation
services by combining cutting-edge
technologies such as 5G and DX in the social
infrastructures market.
Growth investment¥4 bn. for 3 years

 Develop 5G-applied tech. & services by establishing 5G labo.
 Promote the development of services for the social
infrastructures market.
31© NEC Networks & System Integration Corporation 2019

Telecom Carrier Business

Deepening the telecom carrier business
Full-fledged strengthening of thetelecom carrier collaboration businessParticipation in LPWA joint businessParticipation in a technology
standardization consortium between Japanand the EU (PMO on the Japanese side)
Promotion of 5G verification andcommercialization activities

5G×NESIC

32© NEC Networks & System Integration Corporation 2019

<Reference>５G Roadmap
2019

2020

▲Rugby W-Cup

Carrier 5G★AprilFrequency
allocation

PreService

2021(Capacity)

Local 5G

Commercial service(Area)

33© NEC Networks & System Integration Corporation 2019

Enhance
-ment
Of 5G

Low delay &Multipleconnections★Autumn 2019(planned)
Frequency
allocation

4.5GHz202x▲Tokyo 2020

High speed &large capacity
28GHz

･･･

Commercial service★Spring 2020(planned)
Frequency
allocation

Deployment of 5G in All Our Businesses① Further cultivation of telecom
carrier infra.
(Differentiation with multi-layer SI)

Basestations

 Improvement in construction quality
 Expansion of business fieldfrom construction to BPO

Opticaltransmission

 Expansion of vendor alliance Response to 5G migration

NＷ services
control
platform Virtualization migration
 Service infrastructure operation
business

5G technologies& verification
Reference 2019 Commencement of 5G pre-service
2020 Commercial service
34© NEC Networks & System Integration Corporation 2019

③ Development andcommercialization of 5G
utilization services
 DX collaboration
 Public market(CATV/disaster prevention/
smart city) Carrier collaboration business② Local 5G
 Local governments Lifeline companies
 Factories, etc.

Autumn 2019 Allocation of frequencies
for local 5G

3. Engineering & Support Services Business
Market trends
NESIC’s on-site (maintenanceand operation) biz is growing(FY15/3-19/3 CAGR:+1.7%)
though the market is shrinking(in particular, high share in
carriers, firefighting, PBX, etc.)Demand for TOKYO2020 andreconstruction of government
office is expected.

Environment and energy markets



2021

2023

FIT mega solar demand
Self consumption ＋Parallel
establishment of storage cells

Strategies

Sales: ¥91.5 bn. → ¥95 bn. FY19/3
OP: ¥7.7 bn. → ¥10.5 bn. →FY22/3

 Cultivate regional markets such as local
governments.
 Initiatives for the environment and energy biz.
(Collaboration with post mega solar and storage
cells, etc.)
 Rebuild the global business system.
 Strengthen construction capabilities, develop
engineers, and strengthen the nationwide
maintenance system (SLA/function sharing).

Solar sharing

Social issues to solve

Growth investment¥2 bn. for 3 years

 Establish a basic technology development center (strengthen
technology and quality education).
 New services development and process reforms by DX.
35© NEC Networks & System Integration Corporation 2019

Enhancement of Engineering and Maintenance Resources
Further strengthening of basic technologies,
as source of our competitivenessEstablishment of a new core base to foster human resources
and strengthen project quality
Basic Technology Development Center (tentative name)2020(planned)

Resource development

PM

SE

Digital Solution

Field construction and maintenance engineers

Multi-skilled engineers

Network infra.

System/technology verificationand evaluation

Strengthen project execution
capabilities of all NESIC

Strengthen project
management resources.

36© NEC Networks & System Integration Corporation 2019

From 850 people to 1,000

Positioning of Each Segment
Realize profit growth by expanding the top line
and improving management efficiency.
Operatingmargin(％)

10%

Engineering &Support Services
Improvement inresource efficiency
Deployment of SL
in Japan and overseas

7.7

DigitalSolutions

10.5
8.5

5.4
6%
FY19/3The circle size shows→FY22/3 operating income (¥ Bn.)

80
37

© NEC Networks & System Integration Corporation 2019

100

EO/DX
services

11
8.5

Network
Infrastructures
Construction of 5G biz model
Improvement in qualityof large projects
Net sales(¥ Bn.)

120

Investment Strategies
Enhancement of business
investment to accelerate growth●Further practice and verification

More than ¥13 bn
for thee years◆Accelerate innovations in our own business.
・Create business through workstyle innovation co-creation
・Actively utilize advanced technologies.

●Investment in growth/strategic areas◆Major investment areas
Digital/5G/new services development(social infra., etc.)●Promote collaboration and alliances◆CVC and activities in North America.
◆Alliances to strengthen business power.

◆Human resources to support business growth・Training of advanced resources for superior technologies and project execution
・Investment in business infra and schemes for a creative work environment

38© NEC Networks & System Integration Corporation 2019

Acceleration of Innovations in Our Own Work-Style

Further innovation of EmpoweredOffice◆Verification of DX and cutting-edge technologies◆Challenge for possibilities of brand new working style
Office realignment
Distributed offices
by function

DX-armed
Process &practice, collaboration institutional reforms

Time, loss
Productivity

Costs

Satisfaction

Creating new businesses through practicalimplementation and collaboration
39© NEC Networks & System Integration Corporation 2019

Office Realignment (Function Distribution, Multi-Location)
Customers¥2 bn

Startups,
etc.

(FY2020/3)

Innovation Base

Taking on thechallenge forinnovation（Nihonbashi)

Creating new businessand promoting collaboration

Carrying out business activities with new processes
Space for collaboration with customers

Service BaseStrengthening
technologicaland quality capabilities
and developing
human resources to
respondto the needs of thetimes

Technical Base

(MSC, sDOC / Kansai sDOC）(Shin-Kawasaki R&D Center)

Promoting support service businesses
Business promotion functions
Service platforms such as nTOC, SOC and sDOC

Cultivating Engineers /Evaluation and Verification

Education / Training / Development / Evaluation

Business Base

(Iidabashi head office)Deploying innovation in actual businessChange working styles
reforming rules
and processes

40

Head Office and admi. functions,Company-wide hub functions

Activity Base(Around 10 locations in theTokyo metropolitan area)© NEC Networks & System Integration Corporation 2019

Telework / intensive work
expansion of zero-distance businesses
shared office business<Reference> Image of Locations after Office Restructuring
Saitama
Satellite
Kashiwa

Satellite
Urawa

Satellite

Satellite

Tokyo

Satellite

Satellite

Iidabashi
Head
OfficeSatellite
Tachikawa

Sagamihara

Nihonbashi

Satellite

Satellite
KosugiMSC(Shibaur
a)

Chiba

sDOC
(Logistics)

ShinKawasaki

Satellite
Yokohama
41

Yokohama© NEC Networks & System Integration Corporation 2019

Hokkaido satellite

Partnership with Higashikawa town

Lastly

NESIC × Digital × 5G
Business innovation
services

DX platform
Cloud shift and cloud SI(Self practice and modeling)
5G migration & network virtualization
Local 5G (5G of private networks)

5G infrastructure
43© NEC Networks & System Integration Corporation 2019

Automization and BPO
of operation

Toward“ Communication services”orchestrator

Digitalsolutions

Nationwide TechnologicalBusinessbusinesscreation
capabilities
capabilities & credibility capabilities

To the Next Stage of NESIC▌ Based on the technology and expertise cultivated over many years,
we will continue to evolve into the NESIC of a new era.

Communication Service

2020s onwards Orchestrator

NESIC 5.0
2010s

Solution Provider
NESIC 4.0

1990s

System Integrator
NESIC 3.0

1960s
1953
44

Overseas Infrastructure
Construction
NESIC 2.0

Founding:
Telecommunication
Construction
NESIC 1.0

© NEC Networks & System Integration Corporation 2019

To Achieve the Medium-Term Management Plan

Beyond Borders
To go beyond every border and barrier such as market borders,technological barriers, competitive barriers, organizational borders,ability borders or performance borders.

Move up to a next stage with
“Creation,” “Change” and “Challenge.”45© NEC Networks & System Integration Corporation 2019

APPENDIX

46© NEC Networks & System Integration Corporation 2019

Results and Forecasts by New Segment (Rough Figures)(¥ Bn.)

Orders
+4%
284.7

Eng.&
SupportServices

Network
Infra.

DigitalSolutions

91

79

105.
5

FY19/3

+6%

295

278.0

70

90

Others

Sales

+8%

+6％

91

85

112

FY20/3e( ): to sales

295

12.8

50

Eng.&
SupportServices

91.5

+9%

100

Eng.&
SupportServices
Network
Infra.

Network
Infra.

78

DigitalSolutions101

FY19/3

+9%

+4％

85

105

13.0

+0.2 (4.4%)(4.6%)

75

Others0%Operating Income

DigitalSolutions
Others/Elimination

7.7

5.4

+1.4 (8.0%)

8.5

+0.7

-8.8

-2.7

(8.4%)(7.0%)(8.4%)

FY19/3

FY20/3e8.5+0.8 (8.5%)
6.8

9.2(8.8%)

11.5
FY20/3e*The new segment figures shown here are numbers for reference by rough reclassification.

*Forecasts as at May 8, 201947

© NEC Networks & System Integration Corporation 2019

End of FY2019/3 (March 2019) Balance Sheet
End of Mar/18 End of Mar/19

181.0
35.1

-2.9
2.8
4.9
1.0

Noncurrent Assets

175.2
32.4

54.4
107.2
13.2
6.3

Assets

207.6

216.2

8.5

40.3
8.1
57.5

41.1
6.4
61.1

0.8
-1.7
3.6

109.0

5.2

Cash and cash equivalents
Notes & accounts receivable
Inventories
OthersCurrent Assets

Notes and accounts payable
Loans
OthersLiabilities
Shareholders' equity
Accumulated othercomprehensive income
Non-controlling interests

5.8
2.7

105.9

108.6

-4.4

-4.1

0.3

2.3

2.7

0.5

103.9

2.7

Liabilities & Net Assets

101.7
207.6

107.6
216.2

5.9
8.5

Owner's Equity Ratio

47.9%

48.5%

+0.6ptNet Assets

48

57.3
104.4
8.2
5.3

（¥bn.）

Diff.

© NEC Networks & System Integration Corporation 2019

FY2019/3 Cash Flows（¥bn.）

Operating
CF

-1.6

+18.6

-1.7

+23.3

+2.5

+9.4

+22.6

+4.8

+8.4

Investing
CF

-1.9

-2.6

-3.4

-5.5

-3.9

-2.8

-2.7

-2.8

-5.6

2.0

2.8

15.9

19.9

17.8
6.6

-3.5

19.3

-1.5

-5.2

33.5

26.2

51.4 49.2 47.9 Net
38.0 32.8 35.4
Cash *

0
FY11/3

FY12/3

FY13/3

FY14/3

FY15/3

FY16/3

FY17/3*Net cash means an amount obtained by deducting loans payable from cash and cash equivalents
49

FCF© NEC Networks & System Integration Corporation 2019

FY18/3

FY19/3

Cautionary Statement
Forecasts and targets of results mentioned in this document are future
estimates and 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 the economic 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 to intensifiedcompetition.
Factors affecting results are not limited to the ones mentioned above.
* From FY2020/3 business segments will be changed due toreorganization on April 1, 2019. The new segment figures shown inthis presentation (FY2019/3 and FY2020/3 forecasts) are numbers
for reference by rough reclassification

50© NEC Networks & System Integration Corporation 2019

NEC Networks & System Integration Corporationis committed to increasing customer value byredesigning future communications from the user’s
perspective.

nesic
51

© NEC Networks & System Integration Corporation 2019

Searchhttps://www.nesic.co.jp/english/index.html

52© NEC Networks & System Integration Corporation 2019