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

Consolidated Financial Results
for the Three Months Ended June 30, 2023
[Japanese GAAP]
August 8, 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 Department
Phone: 03-3217-7200
Scheduled date of filing quarterly securities report:
August 9, 2023
Scheduled date of commencing dividend payments:―
Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session:
Not scheduled(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2023
14,155
1.2(1,521)(997)(1,067)(21.9)(126)(552)
June 30, 2022
13,991(726)(Note) Comprehensive income:Three months ended June 30, 2023:
Three months ended June 30, 2022:
Basic earnings
per share

Three months ended
June 30, 2023
June 30, 2022¥¥

650 million [‒%]
(685) million [‒%]

Diluted earnings
per shareYen(17.12)(8.86)Yen-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2023
March 31, 2023
(Reference) Equity:

Net assets

Million yen

Million yen

135,731
146,019

As of June 30, 2023:
As of March 31, 2023:

Capital adequacy ratio
88,75489,351¥¥88,754 million
89,351 million

%

65.4
61.2

2. Dividends
Annual dividends
1stquarter-end
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

2ndquarter-end

3rdquarter-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

-

7.00

-

20.00

27.00

7.00

-

20.00

27.00

-

Fiscal year ending
March 31, 2024 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None
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

(Note) Revision to the financial results forecast announced most recently: None
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of June 30, 2023:
68,339,704 shares
As of March 31, 2023:
68,339,704 shares2) Total number of treasury shares at the end of the period:
As of June 30, 2023:
5,968,270 shares
As of March 31, 2023:
5,968,270 shares
3) Average number of shares during the period:
Three months ended June 30, 2023:
Three months ended June 30, 2022:

62,371,434 shares
62,371,636 shares* These quarterly consolidated financial results reports are exempt from quarterly review conducted by certified public accountants oran 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, as
well as certain assumptions that are deemed to be reasonable by management. Therefore, there might be cases in which actual results
differ materially from forecast values due to various factors.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ...........................................2(1) Explanation of Operating Results ................................................................................ 2(2) Explanation of Financial Position ............................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information ...................................................................................... 3

2. Quarterly Consolidated Financial Statements and Principal Notes...........................4(1) Quarterly Consolidated Balance Sheets ...................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............... 6(3) Quarterly Consolidated Statements of Cash Flows...................................................... 8(4) Notes to Quarterly Consolidated Financial Statements ............................................... 9(Notes on going concern assumption) .......................................................................... 9(Notes in case of significant changes in shareholders’ equity) ..................................... 9(Accounting methods adopted particularly for the preparation ofquarterly consolidated financial statements)................................................................. 9(Segment information, etc.)........................................................................................ 10-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended June 30, 2023 (April 1, 2023 to June 30, 2023), the global economy remained unstable
due to concerns such as the slowdown in economic growth caused by Russian’s prolonged invasion of Ukraine andglobal monetary tightening, and the resulting negative impact, especially on financial markets of emerging market anddeveloping economies.
The Japanese economy has been on a gradual recovery trend in domestic consumption, including service
consumption such as hotels and restaurants as well as inbound demand due to an increase in the number of foreign
visitors to Japan, helped by the downgrading of the classification of COVID-19 under the Infectious Disease Control
Law to Class 5 and the easing of various policies. However, the outlook remains uncertain due to concerns about the
impact of soaring raw material and energy prices and rising commodity prices.
Under these circumstances, the Group has continued 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 post-COVID19 business environment, based on the medium-term management plan “Next Stage 24” that began in FY2022.
The Company’s business results for the three months ended June 30, 2023, which were 31,383 million yen in orders
received (down 15.5% year-on-year) and 14,155 million yen in net sales (up 1.2% year-on-year), with some products
being impacted by the difficulty in obtaining semiconductor components. Profit and loss were impacted in part by theincrease in the development cost of the “Railway Signal Systems” business: operating loss was 1,521 million yen(compared to 726 million yen in the same period of the previous fiscal year), ordinary loss was 997 million yen(compared to 126 million yen in the same period of the previous fiscal year), and profit attributable to owners of parent
was 1,067 million yen (compared to 552 million yen in the same period of the previous fiscal year).
An overview of the Company’s business by segment is as follows.
[Transportation Infrastructure]
In Railway Signal Systems, we received orders for and recorded sales of Automatic Train Control (ATC) systems andelectronic interlocking devices from railroad operators in the Japanese market. In the overseas market, especially in
Taiwan and the Philippines, we received orders for and recorded sales of Railway Signal Systems.
For Smart Mobility Systems, particularly Road Traffic Safety Systems, we received orders for and recorded salesof traffic control systems, signal lights, control equipment, etc.
As a result of the above, orders received were 14,973 million yen (down 37.2% year-on-year) and net sales were
6,812 million yen (down 13.0% year-on-year). Segment loss was 840 million yen (compared to 63 million yen in thesame period of the previous fiscal year).
[ICT Solutions]
In AFC, particularly Station Service Network Systems, we received orders for and recorded sales of ticket vending
machines, passenger gates, and platform screen doors in the Japanese market. In the overseas markets, especially in
Vietnam and Bangladesh, we received orders for and recorded sales of platform screen doors, AFC systems, and others.
In Robotics & Sensing, we received orders for and recorded sales of 3D laser ranging image sensors to be installedin platform screen doors, construction machinery, and farm equipment, as well as various types of robot products.
As a result of the above, orders received were 16,410 million yen (up 23.2% year-on-year) and net sales were 7,343
million yen (up 19.2% year-on-year). Segment profit was 213 million yen (up 0.4% year-on-year).

-2-(2) Explanation of Financial Position(i) Assets, Liabilities and Net Assets
Total assets as of June 30, 2023 were 135,731 million yen, a decrease of 10,287 million yen from the end of the previous
fiscal year, mainly due to a 20,032 million yen decrease in notes and accounts receivable - trade, and contract assets,
despite a 5,043 million yen increase in inventories, a 2,086 million yen increase in investment securities due in part toa rise in fair value, and a 1,713 million yen increase in cash and deposits.
Liabilities decreased by 9,690 million yen compared with the end of the previous fiscal year to 46,977 million yen,mainly due to a 7,815 million yen decrease in short-term borrowings, a 1,273 million yen decrease in notes and accounts
payable - trade, and a 1,239 million yen decrease in provision for bonuses.
Net assets were 88,754 million yen, a decrease of 596 million yen compared with the end of the previous fiscal year,
mainly due to a 1,247 million yen decrease in retained earnings from dividends and a 1,067 million yen loss attributableto owners of parent, despite the recording of 1,741 million yen in valuation difference on available-for-sale securities,etc.
(ii) Cash FlowsThe balance of cash and cash equivalents (“cash”) as of June 30, 2023 totaled 10,078 million yen, an increase of 1,713
million yen from the end of the previous fiscal year.
Cash flows in each area of activity during the three months ended June 30, 2023 are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 10,770 million yen, compared with a cash inflow of 11,947 million yen
in the same period of the previous fiscal year. The principal cash inflow factor was a decrease in trade receivables,
while the principal cash outflow factor was an increase in inventories and income taxes paid.
(Cash flows from investing activities)
Net cash provided by investing activities was 92 million yen, compared with a cash outflow of 494 million yen in thesame period of the previous fiscal year. The principal cash inflow factor was the sale of investment securities, while theprincipal cash outflow factor was the acquisition of property, plant and equipment and intangible assets.
(Cash flow from financing activities)
Net cash used in financing activities was 9,156 million yen, compared with a cash outflow of 8,598 million yen in thesame period of the previous fiscal year. The principal cash outflow factors were repayment of short-term borrowingsand dividend payments.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There are no revisions to the full-year consolidated earnings forecast for the fiscal year ending March 31, 2024 (April
1, 2023 to March 31, 2024) announced on May 10, 2023.
Among the Group’s main businesses, Railway Signal Systems and Smart Mobility Systems in the Transportation
Infrastructure segment and AFC in the ICT Solutions segment tend to have a higher proportion of the Group’s sales atthe end of each fiscal year, as capital investment by domestic railroad operators, which are our major customers, andpublic investment by police and other entities are the main drivers.

-3-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2023

As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Merchandise and finished goods

8,407

10,12063,97943,946

1,521

1,854

4,609

5,913

Work in process
Raw materials and supplies

9,819
5,684

12,536
6,706

Other
Allowance for doubtful accounts

3,282
(1)

4,382
(0)

Total current assets

97,30285,459Tools, furniture and fixtures, net
Land

6,486
1,069
1,492
5,488

6,422
1,073
1,781
5,488

Leased assets, net
Construction in progress

77
1,696

74
1,540

Total property, plant and equipment

16,31016,381

2,079

2,220

24,571

26,658Retirement benefit asset
Deferred tax assets

2
2,476
1,463

2
2,499
711

Other
Allowance for doubtful accounts

1,833
(20)

1,818
(20)

Total investments and other assets

30,326

31,669Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net

Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets-4-48,71650,271

146,019

135,731(Million yen)
As of March 31, 2023

As of June 30, 2023

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

11,087
4,110

9,813

Short-term borrowings

17,515

9,700

7

7

Lease liabilities

4,174

Income taxes payable

1,489

419

Provision for bonuses

2,554

1,315

742

684

Other

9,070

10,806

Total current liabilities

46,57736,921Long-term deposits received
Long-term accounts payable – other

99

99

28

28

Lease liabilities
Deferred tax liabilities

7

5

551

510

9,402
10,0909,411
10,05556,66846,977

Share capital
Capital surplus

10,000
7,585

10,000Retained earnings
Treasury shares

68,198(6,571)

65,883(6,571)

Total shareholders’ equity

79,212

76,897

10,10011,841

38
10,13815
11,856

Provision for loss on orders received

Non-current liabilities

Retirement benefit liability
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

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

-5-

7,585

89,35188,754

146,019

135,731(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Three Months Ended June 30(Million yen)
For the three months
ended June 30, 2022

For the three months
ended June 30, 2023

Net sales

13,991

14,155

Cost of sales

11,26012,173Gross profit

2,731

1,981

Selling, general and administrative expenses

3,457
(726)

3,503
(1,521)

Operating loss
Non-operating income
Interest income

00Dividend income
Dividend income of life insurance

228

256

155

182

Foreign exchange gains

136

107

Rental income from real estate
Nursing services income

78

78

2

2

Other

26

16

Total non-operating income

628

643

Interest expenses

6

14

Rental expenses on real estate

12

13

Taxes and dues

046

Nursing services expense

89

Waste disposal expenses－

29

Non-operating expenses

Other
Total non-operating expenses
Ordinary loss

0

6

28
(126)

120
(997)

Extraordinary income
Gain on sale of non-current assets－

0Gain on sale of investment securities－

425

Total extraordinary income－

425

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

1

0

－

0

Total extraordinary losses

10

Loss before income taxes

(127)

(572)

Income taxes

424

494

Loss

(552)

(1,067)(Details)
Loss attributable to owners of parent(552)(1,067)-6-

(Million yen)
For the three months
ended June 30, 2022

For the three months
ended June 30, 2023

Other comprehensive income
Valuation difference on available-for-sale securities(126)

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

1,741

(6)

(22)

(133)

1,718

(685)

650

(685)

650

(Details)
Comprehensive income attributable to owners ofparent-7-

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the three months
ended June 30, 2022

For the three months
ended June 30, 2023

Cash flows from operating activities
Loss before income taxes

(127)

(572)

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

551

517

1

0

－

(425)

Interest and dividend income
Interest expenses

(228)

(256)

Decrease (increase) in trade receivables

6

14

18,65919,699Decrease (increase) in inventories(4,162)(5,043)

Increase (decrease) in trade payables
Increase (decrease) in contract liabilities(1,781)(1,247)

1,021

900

Increase (decrease) in retirement benefit liability
Other, net
SubtotalInterest and dividends received
Interest paid

52

(16)

(1,602)(1,764)

12,390228

11,806
256

(6)

(14)

Income taxes paid

(665)

(1,286)

Income taxes refund－

911,947

10,770

Payments into time deposits

(38)

(37)

Proceeds from withdrawal of time deposits

49

37

Purchase of property, plant and equipment
Purchase of intangible assets

(336)

(529)

(149)

(329)

Purchase of investment securities
Proceeds from sale of investment securities

(3)

(23)

－

Other, net

(15)

978
(3)

Net cash provided by (used in) investing activities

(494)

92

(7,200)(7,895)

(30)

(10)

(100)

－

(22)

(1)

(1,246)(1,249)(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(8,598)(9,156)

64

6

2,918

1,713

Cash and cash equivalents at beginning of period

6,344

8,365

Cash and cash equivalents at end of period

9,263

10,078Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from deposits received from an affiliated company
Proceeds from deposits received from an unaffiliated entity
Repayments of lease liabilities
Dividends paid
Decrease (increase) in treasury shares-8-(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable

I(Notes in case of significant changes in shareholders’ equity)
For the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
1. Dividends paid
(Resolution)

Type ofsharesMay 10, 2022
Board of Directors

CommonsharesTotal amount of
Dividend per
dividends
share (yen)(Millions of yen)
1,247

20.00

Reference date

Effective date

Source ofdividends

March 31, 2022

June 3, 2022

Retainedearnings

Reference date

Effective date

Source ofdividends

March 31, 2023

June 2, 2023

Retainedearnings

2. Significant changes in shareholders’ equity
Not applicableII

For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Dividends paid
(Resolution)

Type ofsharesMay 10, 2023
Board of Directors

CommonsharesTotal amount of
Dividend per
dividends
share (yen)(Millions of yen)
1,247

20.00

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

-9-

(Segment information, etc.)[Segment information]
I

For the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
Information on net sales and profit (loss) by reportable segment and classification of revenues(Millions of yen)
Quarterly
consolidated
statements ofincome andcomprehensive
income(Note 2)

Reportable segment
Adjustments(Note 1)

Transportation
Infrastructure

ICT Solutions

Net sales to external customers
Intersegment internal sales ortransfers

7,828

6,162

13,991-

13,991

-

-

-

-

-

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

7,828

6,162

13,991-

13,991

1,400

2,263

3,663

-

3,663

6,428

3,899

10,327-

10,327

7,828

6,162

13,991-

13,991

(63)

213

149

(875)

(726)

Total

Net sales

Segment profit (loss)

Notes: 1. Adjustments of (875) million yen in segment profit (loss) represent corporate expenses that are not allocated toreportable segments. Corporate expenses are primarily expenses of the administration divisions of the parent
company’s headquarters that are not attributable to any of the reportable segments.
2. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statements of income andcomprehensive income.

II For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Information on net sales and profit (loss) by reportable segment and classification of revenues(Millions of yen)
Quarterly
consolidated
statements ofincome andcomprehensive
income(Note 2)

Reportable segment
Adjustments(Note 1)

Transportation
Infrastructure

ICT Solutions

Net sales to external customers
Intersegment internal sales ortransfers

6,812

7,343

14,155-

14,155

-

-

-

-

-

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

6,812

7,343

14,155-

14,155

1,538

3,345

4,883

-

4,883

5,273

3,998

9,272

-

9,272

6,812

7,343

14,155-

14,155

(840)

213

(626)

(894)

(1,521)Total

Net sales

Segment profit (loss)

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

- 10 -