My name is Tokuo Yamamoto, CFO of NEC
Networks & System Integration Corporation, which
we call NESIC.
Thank you for joining us today for this briefing.

0Here is our agenda, today.
I will provide a summary of our company first, thentalk about the gear for growth.

1What’s NESIC?

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This chart shows our history.
NESIC was born as a telecom engineering
company 60 years ago.
According to technologies, our business havebeen gradually expanded into systems
integration and related services such assystem operation and outsourcing services.

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I will explain the history of NESIC in a little more detail.
1953, the year of our foundation, was the year when NHK
started Japan’s first regular television broadcasts, andKokusai Denshin Denwa ,current KDDI was established.
In other words, NESIC was born at the dawn ofcommunication in Japan.
We started out developing Japan’s broadcast andtelecommunications infrastructure, with the installation oftelevision broadcasting equipment and the installation oftelephone switchboards, as shown in the photos.
In sixties, our business expanded to thetelecommunications infrastructure not only in Japan butaround the world.
We have installed telecommunication equipment on Mt.
Everest and have contributed to live TV coverage via
satellite communications from the top of Mt. Everest.
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Alongside the dramatic development of telecommunications
technology in the 1990s,
we also contributed to the start-up of new telecommunications
services, including mobile phones and the Internet, and also
expanded system integration business for office communication
network.
We can say that it is the era when we became a system integrator
And today....., we have also been involved in the construction ofsocial infrastructure, including the installation of digital terrestrial
broadcasting equipment on Tokyo Skytree and the developmentof a submarine seismometer system.
Moreover, our stage has spread as far as space.
We have been involved in the operation and control of the
Hayabusa asteroid explorer, which caused a stir in 2010, andnumerous other satellites.
Incidentally, it was one of our staff members who rediscovered theHayabusa when its whereabouts were unknown.
Not only integration of ICT systems for offices, we also focus on
the work style innovation solution business, including proceduresand office design to enhance the productivity of employees.

5It is, therefore, fair to say that NESIC is acompany which has achieved growth bycontinually supporting all kinds ofcommunications across a wide range of fields.

6Our business model has 4 points:(1)We do business for various customers, privatecompanies, telecom carriers and governments.
(2)We can provide them variety of services related toICT, such as consulting, system integrations,maintenance operation, and outsourcing services,utilizing our strong service & support bases.
(3)We also have total facility management knowhow
through telecom construction experience, including
office facilities and design.
(4) In addition, we have spirit oriented towards “Kaizen”
We are proud of leading position in the Japanese
network market by the trust, earned through ourexperience and know-how accumulated for sixtyyears.

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Our sales are well balanced by these 3 segments,
as a results of our broad customer base.

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We are able to provide ICT services as amanagement cycle, from consulting, integration,maintenance and outsourcing services.
To support our business model, we have morethan 400 service and support bases and 4000
engineers working nation-wide.
As a result, for an example, we can send support
staff and necessary parts to our customers in 2hours wherever they are in Japan.

9The clear differentiation compared to other system
integrators, lies in our know-how and installation
capabilities for office, electrical and other facilities.
These skills have been built through ourinfrastructure construction business, leading to thecreation of new business.
One of such examples is our solution named
EmpoweredOffice, which improves total officeproductivity by combining ICT with office design,supplies and other facilities.
I will explain this in detail shortly.

10All employees conduct exhaustive “Kaizen”
activities in all areas from the construction work tosales activities and administrative staffs, and thisawareness has become part of our DNA.
This spirit has fruited in eight consecutive years ofimprovement in profitability.

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By demonstrating the features and strengths
explained so far, NESIC holds the position of a
top-class systems integrator in networking inJapan’s ICT services industry.

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Next, I explain our financial performance.
For past 10 years, we have been improved ourprofitability.
On the other hand, top-line growth has stagnated,
we are now just returned to a growth track.

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Through increased profitability, we have built solid
financial strength and we are ready to use it forgrowth.

14Next, I will explain how we gear for growth.

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First, our business opportunities,
Enterprise segment is matured in domestic market
and in the middle of globalization.
They need pursue further efficiency and cost cutsby office innovation by ICT and other elements
such as office design.
Telecom carriers need to enforce network andcosts efficiency corresponding to traffic increase.
Procurement from global vendors is one of ways
for cost reduction.
Last, regarding governments need for the disasterprevention.
we also expect demands for infrastructureenhancement toward Olympic 2020 in Tokyo.

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This chart shows key growth areas.
First, for the infrastructure business, we will focus
on areas with medium-term growth potential, suchas the digitalization of fire-fighting systems andLTE.
In addition, we believe that we must expand newservice businesses with an eye to the future.
Enforcing our service platforms we will expand
new ICT services integrating with BPO services
not only for companies but also for telecom
carriers and governments.
* Base transceiver station (BTS)
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First, Infrastructure business.
In the fire-fighting network business we have bigmarket.
It is a comprehensive network system to rapidly
and appropriately arrange ambulance crews or
firefighters and related vehicles for the site
responding to fire or emergency calls.
Investment in this network has accelerated
because of the end of analogue and demand tointegrate fire headquarters to expand the service
area preparing wide-area disaster.
Actual fire-fighting system related sales for thecurrent year will further increase from the previous
year as a result of the active market and ourstrong offering.
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Next, “EmpoweredOffice”.
White workers productivity is a critical issue for Japanese
senior management to survive in matured market condition.
To enhance office productivity, we combine the strength of
ICT and our facilities managements.
And we provide the following 3E solutions to enhance thecorporate value of our customers: Empowering creativity ofeach worker, and realizing an Economical and Ecologicalwork style.
We have implemented the solution for ourselves.
That was effective in reducing floor space by 40%, and thepower consumption by half, as well as in speeding up
management and information sharing, among other benefits.
We have invited customers, especially senior management, todiscover the effectiveness for themselves by watching aroundour offices. As a result, the EmpoweredOffice brand has
gradually been penetrating to our customers.
We are now trying to expand this solution to local companies
and local governments.
19Technical outsourcing is a gear for growth of Carrier
Network business.
We have accumulated world-class technologies as amember of the NEC Group.
In other words, through the experience for years, wehave already established a quality service system andservice infrastructure to meet telecom carriers’
demand.
By using these platform, we are focusing our efforts onproviding total services for global vendors.
These services include product acceptanceinspections, equipment adjustments/customization, andsupport service after installation.
These services help carriers to achieve efficient total
cost of ownership (TCO)..

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In addition, we will expand overseas business.
We recently acquired a 3G network-related opticalcable installation project for AIS, a leading Thai carrier.
Orders received in this first three quarters were around¥3.3 billion.
As this is a project where the total cable length will
ultimately reach 26,000km, we are targeting further
growth in orders including penetrating areas wherecompetitors have a presence.
In addition to AIS, we have another good customer,
ALAMCO in Saudi Arabia for oil plant networks, andJapanese ODA related business is another growth
opportunity.

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We have also been promoting an M&A strategy using
its strong financing base to accelerate medium- andlong-term growth.
Recently, we have executed three M&A deals for thepurpose of strengthening our priority areas, as shownin the figure.
I would like to introduce QAC Corporation to you as
one example.

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Q&A Corporation is a contact center operator, but
its main feature is that it can offer all kinds oftechnical support, from responding to technicalinquiries to consumers concerning ICT forproducts, broadband environments, etc. to onsite
support through home visits.

23NESIC provides BtoB, ICT business in relation to awide range of customer groups, as explained earlier.
Meanwhile, QAC’s excels in BtoBtoC and BtoC
support services for ICT-related products, asmentioned just now.
Through its alliance with QAC, we are now able toprovide not only its previous ICT systems andservices but also new all-in-one services including
meticulous technical support services to its
customers’ users.
We will also be able to achieve considerable
improvement in efficiency through integration andsharing of the contact center infrastructure of bothcompanies.
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The charts show that actual results are going quite
well along our growth strategy.
For the current fiscal year, the first three quarters
results exceeded the year-ago levels by double
digit percentage in all segments.

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Last May, we have set it the mid-term targets ofnet sales of ¥260 billion, operating margin of 6%
and ROE of at least 10%.
We expect to achieve our net sales target aheadof schedule, helped by a solid businessenvironment and the impact of M&A.
So we are currently examining a new target andplans to explain this at the time of the full-year
financial results announcement.

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Finally, I will explain our basic idea to expand
shareholders value.

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We have gradually increased dividends in stepwith our improved profitability, while focusing on
stable dividends.
By balancing returns to shareholders withinvestment, we aim to generate an overall returnthat satisfies all shareholders.
Thank you for your attention.

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