NEC & System Integration : Presentation

Financial Results for the Fiscal Year ended March 2023

April 28, 2023

Yushi Ushijima, President & CEO

NEC Networks & System Integration Corporation

(TSE: 1973, NESIC)

© NEC Networks & System Integration Corporation 2023

Agenda

1. Results for the FY2023/3
   II. Forecasts for the FY2024/3

III.Progress of Medium-term

Management Plan "Shift up 2024"

1. Results for the FY2023/3

FY2023/3 Summery

(¥ Bn.)

FY22/3

FY23/3

Change

FY23/3

forecast

(Jan.2023)

Recorded historically high orders

Sales/profits are on recovery trend in 4Q

Orders received	336.8	356.0	+6%	350
Net sales	310.3	320.8	+3%	322
Gross margin	20.5%	20.7%		+0.2pt		ー
SG&A	40.3	43.8	-3.5		ー
Operating income	23.2	22.8	-0.4	22.0
（to sales）		(7.5%)		(7.1%)		-0.4pt		(6.8%)
Net income	15.0	13.8	-1.2*	13.0
attributable to owners of the parent
（to sales）	(4.8%)	(4.3%)		-0.5pt	(4.0%)
ＲＯＥ	11.6%	10.0%		-1.6pt
Free cash flows	15.5	-2.1	-17.6
Orders backlog	165.2	201.2	+22%

*There was extraordinary losses for HQ move

Orders:

• All segments grew centered on enterprises and governments

Sales:

• Delayed due to S/C and materials shortage ・Recovery trend in 4Q

Operating income:

• SG&A for growth increased(-3.5), weak yen (-1.5) and delayed sales timing impacted
• Overseas special factors positively impacted (+2.1)

*

*c.f. P5

3 © NEC Networks & System Integration Corporation 2023

FY2023/3 Orders Received/Net Sales by Business Model

SI/construction: Sales turned to increase due to eased S/C & materials shortage in 4Q

Services: Orders remained flat even with reactional fall of large PJs* in FY22/3

(¥ Bn.) Orders received

336.8	356.0

SI/con-	211.0	＋9％	230.0
(＋17％)
struction	63％	65％

Services	125.8	+0％	126.0
		37％	(+9％)	35％
		22/3	( ): 4Q change	23/3

4 © NEC Networks & System Integration Corporation 2023

*for governments

Net sales

310.3320.8

193.9	+4％	201.0
(+13％)
62％
	63％

	116.5	+3％	119.8	*Impact of decrease
	of Covid-19 related
	38％	(-1％*)	37％	demand in a
	subsidiary
	22/3		23/3