DX Solution Business
June 12, 2024
Osamu Kikuchi, Senior Vice President
NEC Networks & System Integration Corporation(TSE: NESIC, 1973)© NEC Networks & System Integration Corporation 2024

* Forecast figures are as of April 26, 2024

Business Performance

Strategic areas drove the growth of sales and profit.
Improvements in profitability will accelerate further with the cycle from existing areas to the DX area.
19.0(¥ Bn.)
200

Operating income
150

Net sales
100
Strategicareas

Year-on-year
growth rate

+21%

15.7
13.0
108.0
20.3

13.2
114.2
24.9

201816

129.7

135

33.0

50

+4%

1412
108650Existing areas

8889

9785

42010

FY22/3

FY23/3

FY24/3

FY25/3ResultResultResultForecast© NEC Networks & System Integration Corporation 2024

Basic Policies
Acquiring new customers utilizing the strength of our brand for workstyle innovation and continue to cultivate
existing customers.
Becoming a co-creation partner that works with customers, discovers issues, makes improvement proposals fromevery angle and solves these issues.
Customer

Solving Issues Through CoCreation

Operation, BPO

Upstream proposalsIssueverification

Partner-type recurringbusiness

Workstyle DXMonitoring and maintenance2© NEC Networks & System Integration Corporation 2024

Next-gen
Data analysis
network security & utilization

Digital twins

Local govt
DX

Partner-type
consultation
Selfimplementation
Systems integrationand construction

Business Strategy
1. Responding to post-COVID-19 workstyles and return to officeAcquiring new customers by utilizing the strength of our brand for workstyle innovation and making sure toreceive orders for office relocation and renewal projects

2. Capturing growing demand for network security, attributed to renewal of ICT
infrastructure
Responding to growing demand for network renewal resulting from an increase in data traffic and providing
advanced security operation

3. Increasing approaches to customers in public fields, starting from the DX area
including digital twins
Expanding business areas from DX projects to existing areas, including network security and surveillancecameras and monitors

3© NEC Networks & System Integration Corporation 2024

Strategy
Facilitating a hybrid business combining project-type existing businesses with DX services
Circulating businesses with flexible approach from both existing areas and DX areas

Managementdashboard

Communication

Use Symphonict tocirculate businessesApproached fromDX businesses

ICT infrastructure

Video equipment

Broaden the scope ofApproached from proposals
and strengthen
existing businesses the customer baseReceive more orders andstabilize profit throughinternal cooperation

Hybrid work

Voice and network

Digital twins
Ecosystems with vendors

4© NEC Networks & System Integration Corporation 2024

Facilities andconstruction

Business Strategy
Responding flexibly to the ICT environment, which is getting complicated,by shifting from resident BPO to center-based offsite BPO
Eliminating dependence on individual skills and realizing high quality through automation using AIWorkstyle DX

Increasing the number of users to which we provide services with global response and leverage

Company B

Company CCompany DCompany E

Quality and service

Standardization, visualization, AI prediction/projection and automation

Scope

Domestic/globalDomain

ICT infrastructure, operation services, and support for use of DX© NEC Networks & System Integration Corporation 2024

AI analyses and forecasts
of management and sales data,

Operational DX
Visualize the status of use ofcloud services

Visualize security
NaaS…

5Offsite operationcenter

Automation of processes…

BPO services using DX

Company FServices based on our self-implementation(examples)Company A…

Visualize workstyles and productivity

BPO: Business Process Outsourcing NaaS: Network as a Service

Case: Workstyle DX and Innovation of Executive Meeting
A meeting-style innovation
made in time with the renewal of the executive meeting room
A leading-edge executive meeting created by integrating space, equipment, and DX
Customers’issues⚫ Insufficient functions of existing equipment⚫ A conventional meeting style based on use ofpaper
STEP 1

Order received in FY24/3

Consultation on
meeting style renewal

6© NEC Networks & System Integration Corporation 2024

Differentiating
factorsSTEP 2DX

Our self-implementation
Flexibility and speed

STEP 3

Order received in FY24/3

Renewal of executive
meeting room &Introduction of DX

Meeting-styleinnovation using DX

Eliminating waste before and after
meetings with paperless operations
and AI meeting minutes

Prompt management decisions
made with the latest real dataExistingCase: In-Factory Network Security
Next-generation digital factory-A high-speed, secure network of domestic and overseas production bases
for centralized management of information
Customers’issues

Productivity and manufacturing volume which arecomparable to those of overseas competitors
STEP 1

Differentiating
factors7© NEC Networks & System Integration Corporation 2024

Existing

One-stop provision, from worksites to DX
Flexibility and speed

STEP 2

Order received in FY24/3

High-speed network for
production lines
Security for preventing
unauthorized connection

DXVisualizing production lines
including those of overseasbases

STEP 3Using AI to predict theoperation ofproduction lines
Operating domestic
and overseas baseswith BPO services

Case: Digital Twins
Specific solutions to issues co-created with the customer in a step-by-step manner-Expanding the area to existing areas and smart city, starting from digital twin data analysis
Customers’issuesWant to solve social issues through co-creation,
making a small start with analysis of flow of people
STEP 1

Differentiating
factors

STEP 2DX

Flexibility and speed
One-stop provision, from worksites to DX
STEP 3

Order received in FY24/3

Analysis of flow of people
Visualization of traffic lines

Expansion of existing
businesses
Network security
Cameras and monitors

Digital twins8© NEC Networks & System Integration Corporation 2024

Existing

Safety and security
Smart city

Factors Differentiating NESIC from Competitors
1. DX services provided in a one-stop manner from the worksite to the cloud
Efficient services backed by a history of self-implementation, the optimal introduction of DX based on a thoroughunderstanding of customers’ on-site environments

2. Flexibility and agility (always using the most advanced, optimal cloud services)
Agility independent of specific products or vendors and an assortment of DX services with new venture discovery systems
in North America and other regions

3. Self-implementation(discovering and implementing DX technologies which are one step ahead)
Sharing issues and achievements of iour self-implementation with customers to support their transformation

Branding (workstyle innovation), extensive industries/large-scale SI capabilities,
advanced DX/network professionals
9© NEC Networks & System Integration Corporation 2024

Leads Company-wide DX
Leading the transformation to a recurring model and enhanced added value
with DX technologies and expertise in DX utilization
Example: DX in public areas, such as using Digital Twin to visualize flows of people at a station/airport

Next-generation networking
technological capabilities withhigh quality and reliability

Network SolutionsBusiness(NWS)

Expertise in the publicindustry /social
implementation capability

Expertise inDX technologies and use of DX(workstyle innovation forenterprise)

Environmental & Social
Solutions Business(ESS)

DX SolutionsBusiness(DXS)
Companywide businessfoundation
10© NEC Networks & System Integration Corporation 2024

(Foundation for nationwide support services)

NEC Networks & System Integration Corporation will be committed to increasing
customer value by redesigning future communications from the user's perspective.

nesic
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© NEC Networks & System Integration Corporation 2024

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