Downside to Results from Telecommunications Carriers’ Restraint in Capital Investment

「ＮＣＣ設備事業 119 93 ▲26 ▲22.4%　　ＮＣＣ設備事業 76 66 ▲9 ▲12.8%」

「In the telecom carrier business, revenue from the NCC equipment business declined due to lower capital spending. However, revenue increased because mobile communications quality-improvement work in the NTT equipment business remained strong, and equipment construction for 10G fiber-optic internet services remained steady.」

「サンワコムシスエンジニアリンググループの当期業績につきまして、売上高においては、大型データセンター関連工事等の受注獲得はあったものの、通信事業者の設備投資抑制の影響により、減収となりました。」

「In the telecom carrier business, the NCC equipment business remained weak due to lower capital spending, but revenue increased because mobile communications quality-improvement work in the NTT equipment business remained strong, as it did in the previous fiscal year.」

「サンワコムシスエンジニアリンググループ reported lower revenue due not only to the impact of telecom operators’ restrained capital spending, but also to the transfer of its IT solutions and social systems-related businesses to 日本コムシス株式会社 as part of an organizational restructuring within the コムシスグループ, and the transfer of its consolidated subsidiaries to 日本コムシス株式会社 and コムシス情報システム株式会社.」

「Although orders increased due to large-scale projects in the social systems-related business, サンワコムシスエンジニアリング Group reported orders received of ¥45,948 million, down 5.1% year on year, net sales of ¥42,564 million, down 3.7%, and operating income of ¥2,705 million, down 34.6%, due to the impact of lower demand for 5G-related construction and other projects in the NCC equipment business.」

「Although orders increased due to large-scale projects in the social systems-related business, サンワコムシスエンジニアリング Group reported orders received of ¥29,906 million, down 2.8% year on year, net sales of ¥26,941 million, down 6.3%, and operating income of ¥1,606 million, down 37.9%, due to lower demand for 5G-related construction and other projects in the NCC equipment business.」

「Amid declining capital investment by telecommunications carriers, ＮＤＳ Group worked to expand orders in its IT solutions and social systems-related businesses. Orders received rose 8.3% year on year to ¥22,583 million. However, net sales fell 0.2% to ¥18,199 million and operating income fell 5.8% to ¥863 million due to a post-peak decline in high-level wireless environment development projects.」

「Amid declining capital investment by telecommunications carriers, 日本コムシス Group worked to expand orders in its IT solutions and social systems-related businesses. In the current period, orders received fell 8.5% from the previous fiscal year to ¥242,941 million and net sales fell 10.6% to ¥261,546 million, due to the decline in capital investment by telecommunications carriers, including mobile-related construction, as well as delays in orders caused by customers revising their plans in the social systems-related business. Operating income fell 51.9% to ¥9,275 million due to lower net sales, higher costs from extended construction periods, higher-than-expected material prices and the occurrence of unprofitable work on a large-scale project.」

「Orders totaled ¥176,624 million, down 5.2% year on year, net sales totaled ¥155,980 million, down 15.7%, and operating profit totaled ¥3,524 million, down 71.3%. Factors included the reversal of the benefit from large-scale solar power generation equipment construction, lower capital investment by communications operators, delays in construction progress caused by delays in deliveries of construction materials due to semiconductor shortages, and lower profitability resulting from higher raw material prices.」

「Although orders increased in the IT solutions construction business, orders totaled ¥117,581 million, down 7.4% year on year, net sales totaled ¥101,306 million, down 17.4%, and operating profit totaled ¥1,738 million, down 80.1%. The declines were attributable to a decrease in the renewable energy business, including large-scale solar power generation equipment construction, lower capital investment by communications operators, and delays in construction progress caused by delays in material deliveries resulting from semiconductor shortages.」

「日本コムシス Group reported orders received of ¥58,127 million, down 6.3% year on year, net sales of ¥45,530 million, down 21.1%, and operating income of ¥307 million, down 92.9%, due to declines in public-sector projects in its social systems-related business, lower capital investment by telecommunications carriers, and extended construction periods caused by semiconductor shortages.」

「ＴＯＳＹＳ Group reported orders received of ¥21,952 million, down 11.5% year on year, due to declines in equipment construction projects from telecommunications carriers and IT solutions-related construction projects such as GIGA School.」

「Amid declining capital investment by telecommunications carriers, 日本コムシス Group worked to expand orders in IT solutions businesses such as GIGA School and in public-sector projects and renewable energy businesses such as large-scale solar power generation equipment construction. However, orders received fell 4.7% from the previous fiscal year to ¥291,945 million and net sales fell 0.6% to ¥279,431 million.」

「Orders received fell 11.4% year on year to ¥210,818 million due to a decline in orders in NTT-related businesses and a post-peak decline following orders for large-scale solar power generation equipment construction in the previous period. Net sales fell 2.7% to ¥180,205 million, affected by the decline in NTT-related orders and delays in completing IT solutions projects, among other factors.」

「Due mainly to the impact of a decline in orders in NTT-related businesses, orders received fell 7.5% year on year to ¥40,455 million. Net sales fell 8.3% to ¥36,364 million due to declines in net sales from NTT-related and social systems-related businesses, among others, while operating income fell 26.1% to ¥1,235 million.」

「日本コムシス Group reported orders received of ¥63,532 million, down 9.9% year on year, due to a decline in orders in NTT-related businesses. In addition, delays in the delivery of construction materials and extended construction periods caused by the COVID-19 pandemic contributed to net sales of ¥49,446 million, down 10.8%, and operating income of ¥1,800 million, down 25.4%, as a result of the decline in net sales.」

「Although capital investment by telecommunications carriers declined, 日本コムシス Group worked to expand its top line through public-sector projects, including national resilience measures and infrastructure aging countermeasures, renewable energy businesses such as solar power generation equipment construction, and the acquisition of subsidiaries through M&A.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the first quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Although capital investment by telecommunications carriers declined, 日本コムシス Group worked to expand its top line through public-sector projects, including national resilience measures and infrastructure aging countermeasures, renewable energy businesses such as solar power generation equipment construction, and the acquisition of subsidiaries through M&A, including 株式会社カンドー.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the first quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「There were no newly arising business or other risks during the cumulative consolidated period for the first quarter. Nor were there any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Due to restrained capital investment by telecommunications carriers and other factors, orders received fell 1.5% from the previous fiscal year to ¥331.98 billion and net sales fell 2.4% to ¥320.65 billion. In terms of earnings, although the company worked to secure profit through cost reductions under its structural reforms and other measures, the decline in net sales also had an impact, resulting in ordinary income of ¥24.22 billion, down 13.9%, and net income attributable to owners of the parent of ¥15.42 billion, down 8.0%.」