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 Year Ended March 31, 2023
[Japanese GAAP]May 10, 2023
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 Dept.
Phone: 03-3217-7200
Scheduled date of Annual General Meeting of Shareholders: June 23, 2023
Scheduled date of commencing dividend payments:
June 2, 2023
Scheduled date of filing annual securities report:
June 23, 2023
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session:
Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(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%
Fiscal year ended
March 31, 2023
85,456
0.5
5,112
(5.1)
5,915
(9.5)
4,075
(9.5)
March 31, 2022
85,047
(8.3)
5,390
(5.7)
6,538
1.2
4,503
(8.4)
(Note) Comprehensive income:Fiscal year ended March 31, 2023:¥ 4,294 million[ 16.6 %]Fiscal year ended March 31, 2022:¥ 3,682 million[ (44.8)%]
Basic earnings
per share
Fiscal year ended
March 31, 2023
March 31, 2022

Diluted earnings
per share

Yen

65.34
72.21

Rate of return on
equityYen

Ordinary profit tototal assets ratio

%

-

%

4.6
5.3

4.2
4.7

Operating profit to
net sales ratio
%

6.0
6.3

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Million yen

146,019
134,086
As of March 31, 2023:¥ 89,351 million
As of March 31, 2022:¥ 86,740 million

Million yen

89,35186,740Capital adequacy ratio
%

61.2
64.7

Net assets per shareYen

1,432.57
1,390.71(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

1,715
2,099

(3,597)(2,344)

3,911(6,750)

8,365
6,344

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Payoutratio

Total
dividends(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2022

-

7.00

-

20.00

27.00

1,684

37.4

2.0

March 31, 2023

-

7.00

-

20.00

27.00

1,684

41.3

1.9

-

7.00

-

20.00

27.00

Fiscal year ending
March 31, 2024-

(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% 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

95,000

11.2

6,000

17.4

6,800

14.9

4,700

15.3

75.36

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2023:
68,339,704 shares
March 31, 2022:
68,339,704 shares2) Total number of treasury shares at the end of the period:
March 31, 2023:
5,968,270 shares
March 31, 2022:
5,968,067 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:

62,371,522 shares
62,371,664 shares* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* 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 aswell 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 forecasts, please refer to “1. Overview of Operating Results, etc.
(4) Future Outlook” on page 4 of this report.

Table of Contents - Attachments
1. Overview of Operating Results, etc. .................................................................... ２(1) Overview of Operating Results for the Fiscal Year under Review ......................... ２(2) Overview of Financial Position for the Fiscal Year under Review ......................... ３(3) Overview of Cash Flows for the Fiscal Year under Review ................................... ３(4) Future Outlook ....................................................................................................... ４

2. Basic Policy on Selection of Accounting Standards ............................................. ４
3. Consolidated Financial Statements and Principal Notes ...................................... ５(1) Consolidated Balance Sheets .................................................................................. ５(2) Consolidated Statements of Income and Comprehensive Income .......................... ７(3) Consolidated Statements of Changes in Net Assets ................................................ ９(4) Consolidated Statements of Cash Flows ................................................................. 10(5) Notes to Consolidated Financial Statements .......................................................... 11(Notes on going concern assumption) ..................................................................... 11(Changes in accounting policies) ............................................................................. 11(Segment information, etc.) ..................................................................................... 12(Per share information) ............................................................................................ 13(Significant subsequent events) ............................................................................... 13

1

1. Overview of Operating Results, etc.

(1) Overview of Operating Results for the Fiscal Year under Review
In the fiscal year under review (April 1, 2022 to March 31, 2023), while the global economy saw signs that economic
activities were returning to normal as the restrictions on movement of people due to COVID-19 were relaxed. However,
the economic outlook remains uncertain due to, for example, soaring resource and energy prices associated with
Russia’s prolonged invasion of Ukraine, the rise of the policy interest rate to cope with inflation risks, and rapid foreignexchange rate fluctuations.
The Japanese economy is showing a pickup trend mainly in the domestic demand on the back of the normalizationof economic activities. However, the outlook remains uncertain, with a surge in raw material and energy prices as wellas commodity prices, and concerns over the weaker yen, among other factors.
Under these circumstances, the Group continues to solve social issues in Japan and overseas by supporting theevolution of infrastructure with safe and comfortable solutions and promote adaptation to changes in the businessenvironment in the COVID-19 era, based on the second medium-term management plan “Next Stage 24” that began in
FY2022.
In addition, as part of initiatives under the plan, we established a new company in Dhaka, the capital city of
Bangladesh, in November 2022, as the fourth overseas site of the Group. We will engage in long-term businessdevelopment in the country, where aggressive infrastructure investment is expected to continue, aiming to further
expand business.
The Company’s business results in the fiscal year under review were 99,063 million yen in orders received (up24.3% year-on-year) and 85,456 million yen in net sales (up 0.5% year-on-year). Operating profit was 5,112 million
yen (down 5.1% year-on-year), ordinary profit was 5,915 million yen (down 9.5% year-on-year), and profit attributableto owners of parent was 4,075 million yen (down 9.5% year-on-year).
An overview of the Company’s business by segment is as follows.
[Transportation Infrastructure]
In Railway Signal Systems, we received orders and recorded sales of various types of signal safety products, such as
Automatic Train Control (ATC) systems and Centralized Traffic Control (CTC) systems, in the Japanese market.
We are also accelerating our business activities toward social implementation of Traio, a system to monitor the
status of railway facilities, as solutions to support customers’ structural reforms in the COVID-19 era.
In addition, we are receiving more and more inquiries for Simple-structure and high-Performance ATC by Radio
Communication System (SPARCS) that contributes to efficient operation of trains, streamlining of facilities, and laborsaving. We have received an order for system design toward demonstration experiment to be conducted for Tamagawa
Line of SEIBU RAILWAY Co., Ltd.
In overseas markets, we received orders and recorded sales in the Philippines, India, and China. We will contributeto the creation of comfortable and safe communities through traffic infrastructure by increasing sales of Simplestructure and high-Performance ATC by Radio Communication System (SPARCS) and meeting infrastructure demandof Asian countries based on our installation track record in these markets.
For Smart Mobility Systems, particularly Road Traffic Safety Systems, we received orders and recorded sales for
MVNO (network provision service business) that are being rolled out across Japan and the renewal of traffic control
systems.
In addition, in order to support people with traffic constraints such as those who are visually impaired in crossing
intersections, we have commercialized advanced Pedestrian Information and Communication Systems (PICS), which
is a system to provide signal information of pedestrian lights to smartphones through devices that are installed atintersections. We will continue developing solutions with an eye on realizing barrier-free access for people with traffic
constraints.
As a result of the above, orders received were 61,672 million yen (up 40.1% year-on-year) and net sales were 47,037
million yen (down 3.7% year-on-year). Segment profit was 5,119 million yen (down 2.8% year-on-year).
[ICT Solutions]
In AFC, particularly Station Service Network Systems, in the domestic market, we received orders for and recorded
sales of various types of platform doors, passenger gates, and ticket vending machines.
2

Various railroad operators are considering their “platform door installation plans” utilizing the fare system topromote barrier-free facilities at train stations led by the Ministry of Land, Infrastructure, Transport and Tourism. We
are expanding our business activities by leveraging our strengths in areas such as platform doors and platform
monitoring equipment, which offer a diverse lineup to meet the needs of each installation location.
In addition, as initiatives for the future, we are working to develop new platform monitoring systems that reduce
costs for capital investment and make use of wide-angle sensors and low-cost platform doors, among other things.
In overseas markets, we received orders and recorded sales for AFC systems and others in Bangladesh and Egypt.
Moreover, in Smart City Systems, particularly Security System Solutions, we received orders for and recorded salesof various types of security products and robot products, mainly 3D sensors to be installed in platform doors,
construction machinery, and farm equipment.
Furthermore, we have promoted sales of security gates, which provide a one-stop solution for managing the entry
and exit of people and vehicles, mainly in amusement facilities and museums where an indefinite large number ofpeople go in and out.
As a result of the above, orders received were 37,391 million yen (up 4.8% year-on-year) and net sales were 38,418
million yen (up 6.1% year-on-year). Segment profit was 3,320 million yen (up 0.6% year-on-year).
(2) Overview of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year under review were 146,019 million yen, an increase of 11,932 million yen
compared with the end of the previous fiscal year. This was mainly due to increases of 4,220 million yen in contract
assets, 3,791 million yen in inventories, 2,009 million yen in cash and deposits, and 1,135 million yen in acquisition of
investment securities.
Liabilities increased by 9,322 million yen compared with the end of the previous fiscal year to 56,668 million yen,
due mainly to increases of 5,732 million yen in short-term borrowings, 2,852 million yen in contract liabilities, and 720
million yen in notes and accounts payable - trade.
Net assets were 89,351 million yen, an increase of 2,610 million yen compared with the end of the previous fiscal
year. This was due mainly to the recording of 4,075 million yen in profit attributable to owners of parent and an increaseof 294 million yen in valuation difference on available-for-sale securities, despite a 1,684 million yen decrease inretained earnings from dividends, and other factors.
(3) Overview of Cash Flows for the Fiscal Year under Review
The balance of cash and cash equivalents at the end of the fiscal year under review was 8,365 million yen, an increaseof 2,020 million yen compared with the end of the previous fiscal year.
Cash flows in each area of activity are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities for the fiscal year ended March 31, 2023 was 1,715 million yen, comparedwith a cash inflow of 2,099 million yen in the previous fiscal year. The principal cash inflow factors were the recordingof 6,027 million yen in profit before income taxes and an increase of 2,852 million yen in contract liabilities, despite
cash outflow factors of an increase of 3,791 million yen in inventories and an increase of 3,613 million yen in tradereceivables.
(Cash flows from investing activities)
Net cash used in investing activities for the fiscal year ended March 31, 2023 was 3,597 million yen, compared with acash outflow of 2,344 million yen in the previous fiscal year. The principal cash outflow factors were 2,619 million yen
in acquisition of property, plant and equipment and intangible assets and 758 million yen in acquisition of investment
securities.
(Cash flow from financing activities)
Net cash provided by financing activities for the fiscal year ended March 31, 2023 was 3,911 million yen, comparedwith a cash outflow of 6,750 million yen in the previous fiscal year. The principal cash inflow factor was an increase of
5,700 million yen in cash from short-term borrowings despite the cash outflow factor of 1,680 million yen in
expenditure due to payment of dividends.
3(4) Future Outlook
In terms of future initiatives, in Railway Signal Systems, with the aim of co-creating value with customers in the
COVID-19 era, we will work to develop products that address and take into account social issues of declining workforce,natural disasters, and decarbonization by further focusing on the fields such as “remote monitoring and Condition Based
Maintenance (CBM)” and “labor-saving” that contribute to reduction of fixed costs as well as operation costs.
In Smart Mobility Systems, we will work on product development and commercialization to socially implement“KURU-Link,” where self-driving public transportation vehicles connect departure points and transport hubs, such as
train stations, as well as transport hubs and destinations, and automatic operation services available based on
coordination between infrastructure, such as traffic lights, and self-driving vehicles.
In AFC, business opportunities for cashless settlement systems and image processing are expected to expand in
anticipation of full-scale development of MaaS. To respond to the new smart mobility society and settlement systems,
we will bring new products into the market and create new businesses.
In Smart City Systems, we aim to commercialize multiple handling vehicle, which is a humanoid robot for railway
work in high places, in spring of 2024, with the aim of eliminating heavy labor and dangerous work on site, which is asocial issue. Moreover, we will enhance security gate lineups that accommodate new technologies, such as facialrecognition and contactless technologies, and work on the development of various types of robots by leveraging theknowledge gained from cleaning robot development.
Forecast amounts for the next fiscal year are as follows.
(Million yen)
Net sales
AmountTransportation

Segment profit

Year-on-year change (%)

AmountYear-on-year change (%)

53,000

12.7

5,500

7.4

ICT Solutions

42,000

9.3

3,900

17.5

Sub-total

95,000

11.2

9,400

11.4

Adjustments

－

－

－

95,00011.2(3,400)Infrastructure

Total

6,000

17.4

Notes: Adjustments 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 thatare not attributable to any of the reportable segments.

2. Basic Policy on Selection of Accounting Standards

Taking into consideration the comparability of consolidated financial statements across periods and among companies, theGroup will maintain its policy of preparing its consolidated financial statements under Japanese GAAP for the immediate
future.
With regard to the application of International Financial Reporting Standards (IFRS), the Company’s policy is to takeappropriate measures after consideration of the situation in Japan and overseas.

4

3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

6,397
693

8,407
375

Accounts receivable - trade
Contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods

30,10929,89429,487
34,115

1,188

1,521

3,774

4,609

Work in process
Raw materials and supplies

9,110
3,436

9,819
5,684

Other
Allowance for doubtful accounts

2,052
(1)

3,282
(1)

Total current assets

86,65797,302

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

6,796
1,055

6,486
1,069

Tools, furniture and fixtures, net
Land

1,560
5,488

1,492
5,488

Leased assets, net
Construction in progress

89
1,621

77
1,696

Total property, plant and equipment

Non-current assets
Property, plant and equipment

16,611

16,310Intangible assets

1,900

2,079

Investments and other assets
Investment securities

23,43524,571Long-term loans receivable
Retirement benefit asset

2
2,551

2
2,476

Deferred tax assets
Other

1,273
1,677

1,463
1,833

Allowance for doubtful accounts

(23)

(20)

Total investments and other assets

28,91630,326

Total non-current assets
Total assets

547,42948,716

134,086

146,019

(Million yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

10,367
4,231

11,087
4,110

Short-term borrowings
Lease liabilities

11,782
61

17,515
7

Income taxes payable
Contract liabilities

886
1,270

1,489
4,123

Provision for bonuses
Provision for loss on orders received

2,603
676

2,554
742

Other

5,157

4,947

Total current liabilities

37,037

46,577

99

99

52
109

28
7

Deferred tax liabilities
Retirement benefit liability

602
9,444

551
9,402

Total non-current liabilities

10,307

10,09047,34556,668

Shareholders’ equity
Share capital

10,00010,000Capital surplus
Retained earnings

7,585
65,806

7,585
68,198Treasury shares(6,570)(6,571)

Total shareholders’ equity

76,821

79,212

9,805

10,100Non-current liabilities
Long-term deposits received
Long-term accounts payable - other
Lease liabilities

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6

114

38

9,919

10,13886,74089,351

134,086

146,019

(2) Consolidated Statements of Income and Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Net sales
Cost of sales

85,04765,47485,45665,405Gross profit

19,57320,050

Selling, general and administrative expenses

14,182

14,938Operating profit

5,390

5,112

Non-operating income
Interest income

00Dividend income
Dividend income of life insurance

492
144

459
156

Foreign exchange gains
Rental income from real estate

168
312

312

Nursing services income
Other

37
151

26
81

Total non-operating income

1,308

1,036

Non-operating expenses
Interest expenses

36

49

Rental expenses on real estate
Taxes and dues

49
30

51
41

Nursing services expense
Waste disposal expenses

41
-

34
35

Other

2

21

Total non-operating expenses

160

233

6,538

5,915

0

0

Gain on sale of investment securities-

128

Total extraordinary income

0129

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

7

4

Loss on valuation of investment securities
Loss on valuation of golf club membership

0
-

13

Total extraordinary losses

717Profit before income taxes

6,531

6,027

Income taxes - current

1,674

2,262

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

Income taxes - deferred

353

(310)

Total income taxes

2,027

1,951

Profit

4,503

4,075

(Details)
Profit attributable to owners of parent

4,503

4,075

7

(Million yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Other comprehensive income
Valuation difference on available-for-sale securities

(845)

294

Remeasurements of defined benefit plans, net of tax

24

(76)

Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners ofparent

8

(820)

218

3,682

4,294

3,682

4,294

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2022

(Million yen)
Accumulated other comprehensive income
Total
Valuation
Total
Remeasurements accumulated Total net
Share Capital Retained Treasury
difference on
assetsshareholders’of defined
othercapital surplus earnings sharesavailable-forequity
benefit plans comprehensive
sale securities
incomeShareholders’ equity

Balance at beginning
10,000of period
Changes during
periodDividends ofsurplusProfit attributableto owners of parent
Change frommerger of
consolidated andunconsolidated
subsidiaries
Purchase oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
10,000period7,585

62,939(6,570)73,954

10,65090

10,74084,694(1,684)(1,684)(1,684)

4,503

4,503

4,503

47

47

47

(0)

(0)

(0)

(845)

24

(820)

(820)

-

2,867

(0)

2,867

(845)

24

(820)

2,046

7,585

65,806(6,570)76,821

9,805

114

9,919

86,740For the fiscal year ended March 31, 2023
(Million yen)
Accumulated other comprehensive income
Total
Valuation
Total
Remeasurements accumulated Total net
Share Capital Retained Treasury
difference on
assetsof defined
shareholders’
othercapital surplus earnings sharesavailable-forequity
benefit plans comprehensive
sale securities
incomeShareholders’ equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributableto owners of parent
Change frommerger of
consolidated andunconsolidated
subsidiaries
Purchase oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period10,0007,585

65,806(6,570)76,821

9,805

114

9,919 86,740(1,684)(1,684)(1,684)

4,075

4,075

4,075

-

-

(0)

(0)

(0)

294

(76)

218

218

218

2,610

-

-

2,391

(0)

2,391

294

(76)

10,0007,585

68,198(6,571)

79,212

10,10038

910,138 89,351

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31, 2023

6,531

6,027

Depreciation
Loss (gain) on sale and retirement of non-current
assetsLoss (gain) on sale of investment securities
Interest and dividend income

2,233

2,380

6

3

(493)

(128)
(459)

Interest expenses
Decrease (increase) in trade receivables

36(4,524)49(3,613)

Decrease (increase) in inventories
Increase (decrease) in trade payables

3,923(2,871)(3,791)
636

(446)
331

2,852
74

Other, net(1,398)(1,717)

Subtotal

3,328

2,314

493

459

(36)
(1,685)(49)(1,123)

-

114

2,099

1,715

(54)

(43)

54
(1,798)54(1,690)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

0
(500)

0
(929)

Purchase of investment securities
Proceeds from sale of investment securities

(96)
0

(758)
0

Other, net

50

(230)

(2,344)(3,597)(4,923)

5,700

-

70

(130)

(100)

(16)
(1,680)(77)(1,680)

Increase (decrease) in contract liabilities
Increase (decrease) in retirement benefit liability

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from deposits received from an affiliatedcompany
Proceeds from deposits received from an unaffiliatedentityRepayments of lease liabilities
Dividends paid
Decrease (increase) in treasury shares

(0)

(0)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(6,750)

3,911

51

(9)

(6,943)

2,020

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of period

13,250

6,344

37

-

6,344

8,365

10

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable(Changes in accounting policies)(Implementation Guidance on accounting standard for fair value measurement)
The Company has adopted the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) from the beginning of the firstquarter of the fiscal year under review, and will prospectively apply the new accounting policies stipulated by the Fair
Value Measurement Guidance in accordance with the transitional treatment provided in Paragraph 27-2 of the Fair
Value Measurement Guidance. This adoption has no effect on the consolidated financial statements.

11

(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Company’s reportable segments are segments for which discrete financial information is available andwhich are regularly reviewed by the Board of Directors to determine the allocation of management resources
and assess business results.
The Company’s business comprises segments by products and services provided. The Company classifies
the two businesses of “Transportation Infrastructure” and “ICT Solutions” as reportable segments.
The Transportation Infrastructure segment mainly conducts the manufacture, sale, and maintenance servicesof railway signal safety equipment and facilities and road traffic safety systems.
The ICT Solutions segment mainly conducts the manufacture, sale, and maintenance services of AFC
equipment and parking lot equipment.
2. Method of calculation of net sales, profit (loss), assets, liabilities, and other items by reportable segment
The method of accounting for reported business segments is stated with the amounts based on the accounting
standards adopted for the preparation of the consolidated financial statements.
Profit figures for reportable segments are based on operating profit.
3. Information on net sales, profit (loss), assets, liabilities, and other items by reportable segment and classificationof revenues
For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
Reportable segment

Adjustments(Million yen)
Consolidated
Financial
Statement
AmountTransportation
Infrastructure

ICT Solutions

Net sales to external customers

48,831

36,21685,047－85,047

Intersegment internal sales ortransfers
Total
Goods or services transferred
at a point in time
Goods or services transferredover time
Total

－

－

－

－

－

48,831

36,21685,047－85,047

12,497

11,62624,123－24,12336,334

24,58960,924－60,924

48,831

36,21685,047－85,047

Segment profit

5,267

3,300

8,567

5,390

Segment assets

67,10944,420111,530(3,177)Total

Net sales

Other items

22,556

134,086

Depreciation
1,134
782
1,917
253
2,170
Increase in property, plantand equipment and intangible
1,521
678
2,200
316
2,516
assets
Notes: 1. Adjustments in segment profit represent corporate expenses that are not allocated to reportable segments.
Corporate expenses are primarily expenses of the administration divisions of the parent company’s headquartersthat are not attributable to any of the reportable segments.
2. Segment profit is profit after adjustment of operating profit in the consolidated financial statements.
3. Adjustments of segment assets are primarily surplus operating funds (cash and deposits), long-term investment
assets (investment securities), and assets of the administration divisions of the parent company.
4. Adjustments of depreciation are insignificant.
5. Adjustments of increase in property, plant and equipment and intangible assets are insignificant.

12For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Reportable segment

Adjustments(Million yen)
Consolidated
Financial
Statement
AmountTransportation
Infrastructure

ICT Solutions

Net sales to external customers

47,03738,41885,456－85,456

Intersegment internal sales ortransfers
Total
Goods or services transferred
at a point in time
Goods or services transferredover time
Total

－

－

－

－

－

47,03738,41885,456－85,456

13,462

11,93325,395－25,39533,57526,48560,061－60,06147,03738,41885,456－85,456

Segment profit

5,119

3,320

8,439

5,112

Segment assets

73,59747,348120,945(3,327)Total

Net sales

Other items

25,073146,019

Depreciation
1,311
749
2,060
319
2,380
Increase in property, plantand equipment and intangible
1,467
648
2,115
553
2,669
assets
Notes: 1. Adjustments in segment profit represent corporate expenses that are not allocated to reportable segments.
Corporate expenses are primarily expenses of the administration divisions of the parent company’s headquartersthat are not attributable to any of the reportable segments.
2. Segment profit is profit after adjustment of operating profit in the consolidated financial statements.
3. Adjustments of segment assets are primarily surplus operating funds (cash and deposits), long-term investment
assets (investment securities), and assets of the administration divisions of the parent company.
4. Adjustments of depreciation are insignificant.
5. Adjustments of increase in property, plant and equipment and intangible assets are insignificant.

(Per share information)
For the fiscal year ended March 31, 2022
For the fiscal year ended March 31, 2023
(from April 1, 2021 to March 31, 2022)(from April 1, 2022 to March 31, 2023)
Net assets per share
1,390.71 yen
1,432.57 yen
Basic earnings per share
72.21 yen65.34 yen
Note: Data on diluted earnings per share is not presented above, as there were no potential shares with a dilutive effect.

(Significant subsequent events)
Not applicable13