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NEC & System Integration : Presentation
July 27, 2023 at 10:39 pm EDT
Financial Results for the 1Q for the FY ending March 2024
July 28, 2023
NEC Networks & System Integration Corporation
(TSE: 1973, NESIC)
© NEC Networks & System Integration Corporation 2023
1Q FY2024/3 Summary
(¥ Bn.)
1Q
1Q
Change
FY23/3
FY24/3
Orders received
80.8
96.5
+19%
Net sales
67.6
71.7
+6%
Gross proft
12.1
12.5
+0.4
(to sales)
17.9%
17.5%
-0.4pt
SG&A
10.6
11.4
-0.8
Operating income
1.5
1.1
-0.4
(to sales)
2.2%
1.6%
-0.6pt
Net income
0.5
0.2
-0.3
attributable to owners of the parent
(to sales)
0.7%
0.3%
-0.4pt
Free cash flows
14.6
18.5
+3.8
Orders backlog
179.2
225.7
+26%
1 © NEC Networks & System Integration Corporation 2023
Progress was made in line with
expectations
Profit decreased due to higher SG&A
expenses
Topline:
Both orders received and net sales expanded - The strong performance continued, mainly in areas related to workstyle DX and social infrastructure
-Orders highly jumped gaining large projects on top of the good situation above
Operating income:
Despite higher net sales, rising SG&A expenses* had an impact
Development expenses for new mission-critical systems, etc.
1Q FY2024/3 Orders Received/Net Sales by Business Model
SI / Construction: Strong growth in order in part due to large projects earned
Services: Mainly impacted by a fall in COVID-related demand at subsidiaries
Orders received
Net sales
(¥ Bn.)
96.5
80.8
SI/con-
+32%
71.1
struction
53.9
Services
26.9
-6%
25.4
1Q
1Q
FY23/3
FY24/3
2 © NEC Networks & System Integration Corporation 2023
71.7
67.6
1Q1Q
FY23/3 FY24/3
1Q FY2024/3 Orders Received by Segment
(¥ Bn.)
96.5
83.7
+ 19%
▐ DX Solutions (DXS)
80.7
⚫ Expansion in strategic areas including workstyle DX
27.2
+1%
- Orders received by a subsidiary fell (-1.0) due to
DXS
29.9
decreased COVID-related demand
26.9
▐ Network Solutions (NWS)
21.2
-2%
⚫ Growth in orders from social infrastructure fields*1 despite
decline in telecom carrier-related businesses that was in
NWS
21.0
21.5
part a reactional decline froma large project*2 in the
previous 1Q.
*1: Space, broadcasting, marine, etc.
46.4
+56%
*2: Local 5G-related
ESS
▐ Environmental & Social
31.2
29.7
Solutions(ESS)
Others
1.6
2.7
1.8
⚫ Growth in orders in part due to large projects*
1Q
1Q
1Q
* Equipment procurement, overseas construction-related
FY22/3
FY23/3
FY24/3
3
© NEC Networks & System Integration Corporation 2023
※ Segment information FY22/3 has been reclassified numbers to reflect the segment change in April 2022.
1Q FY2024/3 Net Sales by Segment
(¥ Bn.)
67.7
67.6
71.7
+ 6%
▐ DX Solutions (DXS)
⚫ Sales expanded in both strategic and existing
27.8
areas, in part due to sales from order backlogs
DXS
24.8
24.7
+ 12%
▐ Network Solutions (NWS)
NWS
17.4
16.5
18.1
+10%
⚫ Sales increased mainly in the social
infrastructure field
▐ Environmental & Social
ESS
22.9
24.2
23.1
- 5%
Solutions(ESS)
⚫ Impact of timing for the recording of sales
Others
2.6
2.1
2.7
from orders backlog being weighted toward
1Q
1Q
1Q
2Q and beyond
FY22/3
FY23/3
FY24/3
4
© NEC Networks & System Integration Corporation 2023
※ Segment information for FY22/3 has been reclassified numbers to reflect the segment change in April 2022.
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NEC Networks & System Integration Corporation published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 28 July 2023 02:38:07 UTC .
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Duration Auto. 2 months 3 months 6 months 9 months 1 year 2 years 5 years 10 years Max.
Period Day Week
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NEC Networks & System Integration Corporation is a Japan-based company mainly engaged in the provision of information and communication technology (ICT) systems mainly in the communication field. The Company is also involved in the manufacture and sale of network communication equipment. The Company operates through three business segments. Company Network segment is engaged in the provision of ICT solutions related service integration to companies. Career Network segment is engaged in the provision of system integration (SI) service and installation service from ICT infrastructure to telecommunications carriers, as well as the provision of SI service and related operation and monitoring services. Society Infrastructure segment is engaged in the provision of service integration including SI services and installation work related to ICT infrastructure for government offices, local governments and public interest corporations, as well as related services such as operation and monitoring.
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