Q&A at IR Briefing for Financial Results for theFiscal Year Ended March 31, 2019
May 8, 2019
NEC Networks & System Integration Corporation
Date and Time: Wednesday, May 8, 2019 from 10:00-11:10*The current fiscal year: the fiscal year ending March 31, 2020
The previous fiscal year: the fiscal year ended March 31, 2019

QuestionerＡ
Ｑ：What expenses for growth do you expect for the current fiscal year, incomparison with 2.0 billion yen in the previous fiscal year? In the final
year of the medium-term management plan, you anticipate thatOthers/ Elimination will improve from the forecast value for thecurrent fiscal year of -11.5 billion yen to -10.0 billion yen. What are
the factors for this?
Ａ：We will increase ongoing spending on growth, which was equivalent to
2.0 billion yen in the previous fiscal year, by 1.0 billion yen in thecurrent fiscal year, to 3 billion yen. In addition, we anticipate about 2billion yen as an office realignment cost at Tokyo area to accelerate
our own innovations, and so combined, expenditure on growth isexpected to increase 3 billion yen from the previous year, to 5 billion
yen. Because this office realignment cost is transient for the current
fiscal year, it has become a factor for an improvement in
Others/Elimination in the final year of the medium-term management
plan of 1.5 billion yen from the forecast value for the current fiscalyear.
Ｑ：In your plan, the profitability of the Engineering & Support Services
Business will improve significantly. Is it achievable if you are able toremove unprofitable projects in the previous fiscal year?
Ａ：We anticipate an improvement of unprofitable projects by about 1.0
billion yen, but on top of this, we think that we will be able toeliminate inefficiency caused by dispersed resources, which had beena challenge until the previous fiscal year, and enhance resource
control over the volatility of individual businesses by consolidating

resources. We will also proceed with an initiative to cultivate
multi-skilled engineers, which proved effective in improving
profitability in the past. This time, we will cultivate multi-skilledengineers by consolidating technical resources so that theseinitiatives will lead to a significant improvement in profitability. Inaddition, we also anticipate a contribution made by new businesses.
Ｑ：You expect orders in the Network Infrastructures Business to increase
8% in the current fiscal year, but what areas will grow amid concerns
about the impact of the reduction of communication charges ontelecom carriers? What are your thoughts about orders?
Ａ：We have factored in growth in the marine business, in addition to thecontribution to sales made by K&N System Integrations Corporation,a joint venture with KDDI Corporation, which will gather momentum
in the current fiscal year. While we do not expect a large number for
5G because there are still some uncertainties, we think that demandfor 5G migration will emerge in the core network area in the yearsahead.
Ｑ：Will growth in sales of K&N System Integrations Corporation comefrom the increased capital expenditure of the telecom carrier? Or is it
due to the expansion of market share?
Ａ：We would rather aim to increase sales by expanding market share.

End