Supplementary Briefing Material on
Financial Result for Year to March 2023

Approach to Corporate Value
Enhancement
May 19, 2023

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

1

Human Resource Development
Our Values in the Group Philosophy include Hito-zukuri (education), and we arecommitted to develop human resources who take on challenges for their own
growth.

2

Human Resource Development
Human resource development matrix to support business growthProfessional education
Business skill

Technical skill

inter-industry
exchange forums andOfficer

New employee
training
Second year
training
Third year training

Life planDX talentdevelopment
Departmentspecificeducation
supportSale trainingTechnicaltraining

External
training

Manufacturing
training

Developmentof female
leaders

Acquiring
qualifications

Training forcandidates forpromotion tomanagement
positions

Next leader
training
Five and ten year employee
training

Projectmanagertraining
courseGlobal skill
training
・Domestic
study

abroad・Overseas
study

aboard・Overseas

Cross-cultural communication

Career design
training

Training forcandidates forofficers

Manager development program

Generalfunction
CommonAssessor training

Tetsuatsu Program

Manager

Leadership

Globaldiversity

Legal compliance/development ofcharacter andintegrity

Officer training

GeneralManagerIntermediate
leadership functionManagement andprofessional function

Level-specifictraining: Prioritized for FY2023

Internal andexternal
education
courseWorkplaceharassment
courseMental healthcourseHealthmanagement
courseMentor systeminternship

Learning about company philosophy, compliance, and internal common rules
Self-study

Utilization of distance learning and outside seminars
3

Employee Status
Employee status
Name of company

FY2021

FY2022

Nippon Signal

1,261

1,230

Nisshin Electronics Service596

586

Percentage of women in managerial positions
Name of company

FY2021

FY2022

Remarks

Nippon Signal

3.6%

3.7%

Nisshin Electronics Service

2.4%

2.8%

Average of electricalmachinery
manufacturingindustry: 3.2%

Percentage of men taking childcare leave
Name of company

FY2021

FY2022

Nippon Signal

56.4%

80.6%

Nisshin Electronics Service

60.0%

71.4%

*Including leave for childcare purposes.

4Wage Status
Gender wage differences
Name of company

Nippon Signal

Nisshin Electronics
ServiceFY2021

FY2022

Regular workers

76.5%

75.8%

Non-regularworkers

77.3%

73.4%

All workers

71.6%

71.1%

Regular workers

72.9%

68.8%

Non-regularworkers

39.7%

53.7%

All workers

48.1%

50.8%RemarksNationalaverage
75.7%

There is no gender disparity in the Group's wage system.
5

Human Resource Development
Participated in the 60th Skills Competition
Nippon Signal has been participating in this event consecutively since 2017 and in 2022, four
employees participated in the "Electronic equipment assembling category." Nippon Signal obtained
the participation qualification for 2023.

6

Human Resource Development
Holding Group’s Software Competition
Software Competition was held at a Group company, Nisshin Software Engineering Co., Ltd. to tackle
questions regarding expertise about software and latest trend in software industry, reliability
engineering and English reading comprehension as well as programming using “C language.”7

Approach to Health Management
Certified as a 2023 Health & Productivity Management Outstanding Organization(large enterprise category)
Nippon Signal was certified as a 2023 Health & Productivity Management Outstanding Organization(large enterprise category) under the recognition program promoted by the Ministry of Economy,
Trade and Industry (METI) and Nippon Kenko Kaigi. As part of the program, a sports festival was held
for the first time in three years.

8Business Overview
Opening of the Fukuoka City Subway Nanakuma Line extension
The extension of Fukuoka City Subway Nanakuma Line (between Tenjin Minami and Hakata) went into
operation on Monday, March 27, 2023.
Nippon Signal provided ATC/TD devices, ATO devices, relay interlocking devices, signal monitoring
devices, ticket gate machines, ticket vending machines, fare-adjustment machines, window processing
machines, and platform doors.

9

Business Overview
Developed and started running test for automatic train operation support system
on Kagoshima Main Line
Developed an automatic train operation support system and commenced the running tests on JRKyushu Kagoshima Main Line based on the high-performance automatic train operation (FS-ATO)
system for JR Kyushu Kashii Line currently under demonstration since December 2020.

10

Business Overview
Received an order of system design for verification test of CBTC system for Seibu
Railway Tamagawa Line
Received an order of the system design for verification test of communications-based train control(CBTC) system for Seibu Railway Tamagawa Line spanning 8.0 km.

Moving block

Downsizing of facilities

Moving block

Efficient train operation

Optimization of railroad
crossing time

Image of the system implemented

11

Business Overview
Guidance display in operation at Odori Station on Sapporo City Subway Namboku
Line and Tozai LineNippon Signal installed the passenger guidance display for Sapporo City Transportation Bureau atOdori Station on Sapporo City Subway Namboku and Tozai Lines.
The renewal work is planned in sequence at other stations on these lines.

12Business Overview
Commencement of EXPO TRAIN 2025 Osaka Monorail operation
EXPO TRAIN 2025 Osaka Monorail commenced operation to promote the theme of the Osaka-Kansai
Expo. Currently, many of our products are in operation on Osaka Monorail, including ATC/TD devices,interlocking devices, movable platform railings, and ticket gates.

13

Business overview
Kesennuma Line BRT self-driving bus operation started
As a technology to support Kesennuma Line BRT self-driving bus, Nippon Signal provided an alternate
passage system to manage operation using wireless communication. The self-driving bus started
practical operation between Yanaizu station and Rikuzen-yokoyama station of Kesennuma Line.

Self-driving bus of East Japan Railway Company

14

Business Overview
Participated in a demonstration test of self-driving buses for theOsaka-Kansai Expo
Osaka Metro and several other companies, including our company, conducted a demonstration test ofself-driving buses for Level 4 of automated operation to transport passengers in and around theOsaka-Kansai Expo site.
Nippon Signal provided signal information for self-driving vehicles to safely and reliably pass throughand stop at intersections.

15Business Overview
Participation in the demonstration experiment under the Tochigi Prefecture ABC
Project in Utsunomiya City
In conjunction with the opening of 2022 Ichigo Ichie and Tochigi National Polity, the Government ofTochigi Prefecture implemented the demonstration experiment of a driverless bus within the section
between Nishikawada Station and the venue of the Tochigi National Polity. Nippon Signal provided
the infrastructure support technology using the signal information linkage, cameras, and LiDAR.

16

Business Overview
Implementation of demonstration experiments of the Kuru Link Service inthe Urawamisono area
Implemented the demonstration experiment towards social implementation of the last one mile
automatic driving service (Kuru Link Service*) within the Urawamisono area, where a medical andwelfare facility to be opened, “Saitama Stadium 2002”, and large commercial facilities are scattered.

*Kuru Link…Name of the last one mile travelling service provided by Nippon Signal mainly around stations; itconnects a starting point to a transport hub such as railway station, and the transport hub to the destination with
an automatic drive vehicle for public transport.

17

Business Overview
Commencement of advanced PICS operation in Hokkaido
Commenced advanced PICS operation for the first time in Hokkaido at seven intersections
between Sapporo Station and the Hokkaido Prefectural Police Headquarters.

Transmission/reception
unit

Control unit
Advanced PICS trial session

18Addressing the Corporate Value Enhancement
Demonstration experiment for pedestrian crossing support for visuallyimpaired persons
By using “advanced PICS”, pedestrian signal information that is sent from the BLE roadside unit istransmitted to the resin high-function trough that is installed in the underground section of footpaths
and the smartphone. The objective is social implementation of the equipment that assists mainly
visually-impaired persons to cross pedestrian crossings more confidently and safely.
PICS terminal(Nippon Signal)
Advanced PICS
(Nippon Signal)

The signal isgreenBone
conduction
earphoneBLE roadside unit

Beep

Smartphone

BLE communication

Escort zone
The signal isgreen

Braille block

Resin high function trough(Furukawa Electric Co., Ltd.)

LEDVibrator

Audio speaker

19

Business Overview
Opening of Nishi Kyushu Shinkansen
Nippon Signal delivered platform doors for Nishi Kyushu Shinkansen that was opened on September
23, 2022, covering 144 openings over 12 platforms of five stations in total.

20

Business Overview
Commencement of the service for allowing passengers to board with touchpayment at all the stations of Enoshima Railway
For the first time in the metropolitan area, passengers are able to board trains with touch payment
support cards (credit cards, debit cars, and prepaid cards) and smart phones at all the stations ofEnoshima Railway from April, 2023.

21

Business Overview
Development of “Yoka Tabi Signal.com”
Developed a service that enables passengers to purchase a digital ticket with QR code by selecting aboarding station and an alighting station with a smartphone. This service is implemented as one of
the approaches for the UI enhancement through the QR code checking of digital tickets and collectionof utilization data.

22

Business Overview
Commencement of delivery of new-type parking equipment for MeitetsuKyosho Co., Ltd.
Commenced delivery of integrated payment equipment with high-visibility large screen, “parkingterminal”. This equipment supports the construction of cashless & network parking linked terminals.

23

Business Overview
Implementation of a field test for the prototype model of the multifunctional railway heavy machinery
Implemented a field test of the multi-functional railway heavy machinery, which has been jointly
developed with West Japan Railway Company and Man-Machine Synergy Effectors, Inc. Full-scale
development for a product version is being carried out for the commercialization of the product bySpring of the 2024.

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Addressing the Global BusinessBangladesh

Myanmar
China

Egypt

Beijing Nippon Signal Co., Ltd.
Yangon OfficeDhaka Office

Nippon Signal Technology Taiwan Co., Ltd.
Taipei Office

Nippon Signal
Bangladesh Private Limited

UgandaSouth Korea
TaiwanIndia

Philippines

Number of countries and regions
in overseas expansion

30 countries andregions

Indonesia…Track record…Planning for continuous expansion25

Addressing the Global Business
Order received for the signal system for the extension section of Delhi MetroLine 8
By installing the signal system of Nippon Signal, Delhi Metro has achieved the opening of all the lines
through manned operation in May 2018. In December 2020, fully unmanned operation was realized
for the first time in India. Based on the evaluation of the performance results of safe operation in theexisting sections, Nippon Signal received the order for the signal system for the extension section
covering 28.92 km over 22 stations.

ExtensionsectionExistingsection26

Addressing the Global BusinessOpening of all the lines of Ahmedabad Metro
Through AFC, the system of Nippon Signal, Ahmedabad Metro commenced its operation for all thetwo lines, the East-West line covering 18 stations over 20.7 km and the North-South line covering 15stations 18.5 km. This is the first metro service for the citizens of Ahmedabad, which is expected toalleviate traffic congestions within the metro area.

27

Addressing the Global Business
Order received for the PSD system, a signal system, to be installed in Cairo
Metro Line 4This line covers 18.8 km in total over 16 stations. This order is the first order from Egypt for Nippon
Signal.

Cairo Metro Line 3 train
28

Addressing the Global BusinessOpening of Dhaka Metro Line (MRT) 6Dhaka Metro MRT Line 6 is the first metro in Dhaka and covers 20 km in total. A section of this Line,
which connects from Uttara North Station to Agargaon Station covering 9 stations over 11.7 km, hasbeen opened. Nippon signal delivered 3 systems, signal system, AFC, and PSD.

29

Addressing the Global Business
Order received for the traffic signal system of the Uganda traffic control
improvement project
The objectives of this project are the securement of smooth and stable traffic of Uganda as well as
environment improvements that contribute to the growth of Uganda’s economy. Nippon Signal is todeliver signal lights, signal controllers, and vehicle sensors that are to be installed in 25 intersections.

30

Addressing Sustainability
Support for TCFD
Nippon Signal contributes to effort for the achievement of the sustainable society through thepropagation and maintenance of railways, which is a transport method of a low environmental impact.
Nippon Signal endorses TCFD, provides products and services of low greenhouse gas emissions
during the implementation as well as addressing decarbonization.

*TCFD…Task Force on Climate-related Financial Disclosures
31

Addressing Sustainability
Addressing environmentally friendly products
Nippon Signal is making further efforts towards CO2 emission reduction through the construction andspread of decarbonized infrastructures including SPARCS (wireless train control system), CBM, andautomatic operation.
OfficeLabor saving andautomation
 Cleaning robot Robot control
 Security

Parking

Full automation andcashless service

 Vehicle parking and vehicle allocation
 Cloud car number management Remote monitoring and cashlessservice

RailwayRoad traffic safety

 Automatic operation
 CBTC (SPARCS, etc.)
 Advance functions for on-site equipment(IoT, disaster prevention)
 Introduction of CBM and maintenancerobots Integrated and slimmer safety equipment

 BRT and LRT MVNO and PICS
 I2V, road-vehicle coordination

Slimmer equipment andmaintenance Labor saving

Social responsibility of Nippon Signal
Decarbonization throughout the productlife cycle and respect for human rights◆ Procurement (green procurement, fairtrade, etc.)◆ Manufacture (using green energies)◆ After sale (recycling)Self-drive and reduction ofenvironmental impact

StationLabor saving and cashlessservice
 Payment and authentication
 Introduction of thin clientenvironment Platform monitoring and CBM

32Addressing Sustainability
Comparison of CO2 emission between CBTC (SPARCS) of Nippon Signal andthe conventional train control units

Prerequisites

Line type: Conventional line, iron wheel, double track
Line length: 7.5 km
No. of stations: 4 (1 equipment room)
Train set: 6 trains (No. of trains in total)
Wireless section: 300 m (No. of track circuits: 50T)

31.９
11.3
11.3

ATC rack
TD rack

ATO rack

Ground equipment

Ground wireless rack

About 70%
reduction

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

9.481.4(Unit: t)

SPARCS
33

Addressing Sustainability
Greenhouse gas reduction plan
For the entire product life cycle, Nippon Signal tackles the target of a 46% reduction of greenhouse gases(compared to that of 2013) by 2030 and to be carbon neutral by 2050, which are the Government’s targets.
排出量(Scope1,2)
Emission (Scope 1, 2)

排出量(Scope3)
Emission(Scope 3)

削減量(Scope1,2)
Reduction (Scope 1, 2)

削減量(Scope3)
Reduction (Scope 3)

2000001000000-100000-200000
34Addressing Sustainability“Forest of Nippon Signal” activityEstablished “Forest of Nippon Signal” in 2019 as a part of our foundation commemorative project.
Nippon Signal implemented the forest conservation activity under the initiative of directors andemployees of Nippon Signal.

35

Addressing Sustainability
Hosting the 9th Railway Festival
Hosted the Railway Festival at Kuki Office for the first time in 3 years.
The Festival included events such as the hands-on experience of a table block instrument andoperation simulator and received 3,100 visitors, which is the highest in our records.

36

Addressing Sustainability
Support for Children’s Dream Plaza “Bolero”
Supported Children’s Dream Plaza “Bolero”, as a part of the human resource development and pathdevelopment.
Ms. Michie Koyama, pianist, planned and hosted the project in Japan to provide children who havesuffered from the Great East Japan Earthquake with new dreams and hopes. In 2022, Nippon Signal
presented its own booth.

37

Addressing Sustainability

Support for the 19th Gold Concert
Nippon Signal has been supporting the International Performance Arts Competition for People withDisabilities since 2014 as a part of CSR activities. This year, we presented a Nippon Signal Prize to theperson who is awarded the Audience Prize.

Award presentation (Photograph: Katsusuke Nishina)
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Introduction of SIGNAL MOVIES You can access thiswebsite here.

39

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

The earnings forecasts and so on are based on the information available at thecurrent point of time and certain preconditions that are judged to bereasonable, and the actual earnings may vary significantly from these forecasts
due to various factors.

40

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