Financial Results for theFirst 9 Months ending March 2021
February 1, 2021

Hiroyuki Sekizawa, Senior Vice President
NEC Networks & System Integration Corporation(TSE: 1973, NESIC)
1© NEC Networks & System Integration Corporation 2021

9M FY2021/3 Summery(¥ Bn.)

Orders received

215.2

253.5 +18%

63.5

▐ Record highperformance
75.6 +19%

Net sales

214.0

233.5 +9%77.8

82.3 +6%  Orders/Sales

Gross margin

16.8%

17.8% +1.0pt

17.3%

19.9% +2.6pt

Operating income

8.2

13.8 +5.6

3.8

7.1 +3.2(to sales)(3.8%)(5.9%) +2.1pt(4.9%)(8.6%) +3.7pt

Extraordinary losses

3.4

0.8+2.6

1.2

0.3

Net income

4.3

8.4 +4.1

1.4

4.4 +3.0  Operating income(to sales)(2.0%)(3.6%) +1.6pt(1.8%)(5.3%) +3.5pt

Free cash flows

1.9

13.1 +11.2-8.9-1.3 +7.6

9M
FY2020/3

attributable to owners of the parent2(ref.) 3Q

FY2021/3

ChangeFY2020/3© NEC Networks & System Integration Corporation 2021

FY2021/3

Change+0.9

・GIGA school projects led the topline
increase*Orders(¥29Bn.) were mainly received in 1H・Strategic areas (DX/Workstyle,telecom) expanded

・Sharply increased due to stronger
business capability- Sales growth, improved profitability- Accelerated growth expenses

9M FY2021/3 Orders Received by Segment(¥Bn.)▐ Digital Solutions (DSL)
253.5 +18%
207.5



215.2
97.1

DSL

NWIESS
Others

78.9

64.0
6.0
9M
19/3

3+17%+15%

Telecom carriers business expanded (KNSI etc.)

A large submarine seismometers
project acquired in 1Q

62.4

63.0
7.0

9M
20/3

77.4

Large GIGA school projects received by a subsidiarydrove an increase in orders.
DX/Workstyle innovation-related businesses
expanded though non-urgent ICT investment
slowed down

▐ Network Infra. (NWI)

82.9
71.6

58.7



+23%

7.5

9M
21/3

© NEC Networks & System Integration Corporation 2021

▐ Engineering & Support
Services (ESS)Regional GIGA school projects led the growth.

※Segment information FY19/3 & FY20/3 has been reclassified
to reflect the inter-segment business transfer in April 2020.

9M FY2021/3 Net Sales by Segment(¥Bn.)

233.5 +9%
214.0



191.0
83.8DSL▐ Digital Solutions (DSL)
+4%▐ Network Infra. (NWI)

80.7
71.3



NWI

54.0

ESS

61.2

Others

4.5
9M
19/3

456.0

60.4

68.6

82.0

8.7

7.3

9M
20/3

DX/Workstyle innovation-related businesses
steadily expanded
GIGA school projects contributed to sales.

Telecom carriers business expanded

+8%

+20%

9M
21/3

© NEC Networks & System Integration Corporation 2021

▐ Engineering & Support
Services (ESS)Regional GIGA school orders and mega-solar
projects contributed to sales.

※Segment information FY19/3 & FY20/3 has been reclassified
to reflect the inter-segment business transfer in April 2020.

9M FY2021/3 Operating Income by Segment(¥Bn.)

13.8+5.6(5.9％) (+2.1pt)

8.2
6.3(3.8％)(3.3%)

5.5DSL(7.7%)

NWI(4.4%)

ESS
Others/Elimination

2.4
4.7(7.6%)-6.3

8.5(10.2%)

7.8(9.6%)▐ Digital Solutions (DSL)

4.7+0.8(+0.6pt)▐ Network Infra. (NWI)+0.6(7.7%) (+0.5pt)

4.0(7.2%)

7.0+3.5

3.5(8.6%) (+3.5pt)-7.1-6.4(5.1%)▐ Engineering & Support
Services (ESS)

59M
20/3

9M
21/3

© NEC Networks & System Integration Corporation 2021Profit increased because of higher sales and adecrease in provision for loss for unprofitable PJ▐ Others/elimination
9M
19/3

Profit increased due to growth in sales and theeffect of reorganization* with larger growth
expenses*Resource efficiency improvement,enhanced PJ management, etc.

+0.7

Profit increased thanks to increased sales andimproved sales mix (increase of service provision biz.)

Administration costs improved※Segment information FY19/3 & FY20/3 has been reclassified
to reflect the inter-segment business transfer in April 2020.

FY2021/3 Forecasts（Forecasts as at January 29, 2021）▐ Upward-revision.
Forecasting frontloaded
Previous forecasts
Difference
achievement of medium(2020/10/29)
term targets(¥ Bn.)

FY20/3

FY21/3
Change(Forecasts)

Orders Received

305.0

333 +9%Net Sales

303.6

333 +10%

Operating Income

16.2

22.0 ＋5.8(to Sales)(5.4%)(6.6%)+1.2pt

Net income

9.4

13.5+4.1+6  Execution of acquired GIGA
school PJs
19.0 +3.0
 Expansion centered on telecom(5.8%) +0.8pt
carriers and DX/workstylebusinesses
11.3 +2.2(3.1%)(4.1%)+1.0pt

(3.5%)

attributable to owners of the parent(to Sales)6© NEC Networks & System Integration Corporation 2021

320+13327+0.6pt

FY2021/3 Forecasts by Segment（Forecasts as at January 29, 2021）

Net Sales（¥ Bn.）

303.6327

Operating Income+6YoY
Change（¥ Bn.）

( ): to sales

333 +10%

DSL

112.8

120+2122(5.4%)

+8%
DSL

11.7(10.3%)

NWI

83.1

88+290+8%

NWI

8.1(9.8%)

ESS

6.7(6.9%)

ESS
Others97.4

110+2112

10.3

909

FY20/3

FY21/3October 29
forecast

7+3.0 22.0+5.8

12.2 +0.8 13.0

+1.3

19.0

16.2+15%

FY21/3(revised)© NEC Networks & System Integration Corporation 2021

Others/Elimination-10.3
FY20/3

YoY
Change(5.8%)(10.2%)(6.6%)(10.7%)

8.5
8.4 +0.1 (9.4%)＋0.4

9.7 +0.8 10.5

+3.8

-11.3 +1.3 -10.0+0.3(9.5%)(8.8%)

FY21/3October 29
forecast(9.4%)

FY21/3(revised)

Dividend Plan
Dividend
per share（¥）

InterimYear-end（Forecasts as at January 29, 2020）

29.0
26.0
24.7
24.027.3▐ Changed dividend
plan according tobusiness forecasts

15.0(forecast) Year-end dividend: ¥15/share（Year total: ¥29/share) Considering DOE

4.7

14.0

increasing for the14th year un a row* The results for the fiscal years ended March 2020 andprior thereto presented below reflect the three-for-one
stock split conducted on June 1, 2020.

FY07/3
8FY21/3・・・・© NEC Networks & System Integration Corporation 2021

APPENDIX

9© NEC Networks & System Integration Corporation 2021

FY2021/3 Forecasts by Segment（Forecasts as at January 29, 2021）

Orders ReceivedYoYChange（¥ Bn.）

305.0

320 +13333+9%

126+3129+12%

DSL

115.2

NWI

87.7

94+296+9%

92.0

92+597+5%

10.0

8+311ESS

その他

F20/3

FY21/3October 29
forecast

10© NEC Networks & System Integration Corporation 2021

FY21/3(revised)3Q FY2021/3 (End of Dec. 2020) Balance Sheet（¥ Bn.）End of Mar.20 End of Dec.20

58.3
113.1
13.2
7.3

67.9
105.7
14.2
8.2

9.6
-7.4
1.1
0.9

Noncurrent Assets

191.8
38.4

196.0
39.8

4.2
1.4

Assets

230.2

235.8

5.5

Others

43.1
8.7
64.9

46.8
9.6
61.5

3.70.9-3.4

Liabilities

116.7

117.9

1.1

114.5

118.7

4.3

-4.1

-4.0

0.1

3.1

3.2

0.1

Liabilities & Net Assets

113.5
230.2

117.9
235.8

4.4
5.5

Owner's Equity Ratio

47.9%

48.7%

+0.8ptCash and cash equivalents
Notes & accounts receivable
Inventories
OthersCurrent Assets

Notes and accounts payable
Loans

Shareholders' equity
Accumulated othercomprehensive income
Non-controlling interests

Net Assets

11Diff.

© NEC Networks & System Integration Corporation 2021

3Q FY2021/3 Cash Flows（¥ Bn.）

9M FY20/3

129M FY21/3

Operating Cash Flow (A)

6.7

16.6

Investment Cash Flow(B)

-4.8

-3.5

Free Cash Flows (A)+(B)

1.9

13.1

Financial Cash Flow

-2.7-2.9© NEC Networks & System Integration Corporation 2021

Cautionary Statement
Forecasts and targets of results mentioned in this document are future
estimates and are thus inclusive of risks and uncertain factors since they are
not based on definite facts. Please be aware that a variety of factors could
cause actual results to differ significantly from those projected. The major
factors affecting actual results include the economic climate and social trends
surrounding the business of this Company’s group, consumer trends vis-a-vis
systems and services provided by this Company’s group, as well as pressure
to lower prices and ability to cope with the market in response to intensifiedcompetition.
Factors affecting results are not limited to the ones mentioned above.
There were inter-segment transfer of some businesses and other changes
in April 2020. Segment information for the FY 2019/3 and FY 2020/3 hasbeen recalculated to reflect the change in the content of business segments.
(FY2019/3 figures are un-audited)13© NEC Networks & System Integration Corporation 2021

NEC Networks & System Integration Corporationis committed to increasing customer value byredesigning future communications from the user’s
perspective.

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