Select and concentrate R&D investment on core businesses

「Total R&D expenses for the fiscal year amounted to ¥1,185.539 million, with the following 3 main areas. For communications equipment for second-generation smart meters, the Company developed low-voltage products for second-generation smart meters to strengthen power resilience (recovery capabilities in the event of disasters), promote renewable energy and decarbonization, and improve the benefits of electricity customers. Going forward, it will promote development of high-voltage products and development aimed at establishing a stable supply system.」

「R&D expenses for the interim consolidated accounting period amounted to ¥577 million. There were no material changes in the status of the Group’s (the Company and its consolidated subsidiaries) R&D activities during the interim consolidated accounting period.」

「Major activities included developing communications systems for second-generation smart meters, whose introduction will begin in fiscal 2025, to strengthen power resilience (recovery capabilities in the event of disasters), promote renewable energy and decarbonization, and improve the benefits of electricity customers, as well as developing optical network products to accommodate increased traffic, reduce space and power consumption, and strengthen network reliability.」

「R&D expenses for the interim consolidated accounting period amounted to ¥454 million. There were no material changes in the status of the Group’s (the Company and its consolidated subsidiaries) R&D activities during the interim consolidated accounting period.」

「Total R&D expenses for the fiscal year amounted to ¥1,336.914 million. Major activities included developing 400Gb products for optical transmission systems to address increasing communications traffic accompanying the wider adoption of 5G, data centers, cloud services, AI and M2M services, and developing products for gas and water meter reading and elevator maintenance terminals within the low-power, wide-area LPWA product group.」

「R&D expenses for the nine-month consolidated cumulative period amounted to ¥1,141 million. There were no material changes in the status of the Group’s (the Company and its consolidated subsidiaries) R&D activities during the nine-month consolidated cumulative period.」

「R&D expenses for the third quarter of the current consolidated cumulative period were ¥847 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the third quarter of the current consolidated cumulative period.」

「R&D expenses for the second quarter of the current consolidated cumulative period were ¥599 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the second quarter of the current consolidated cumulative period.」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥243 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the first quarter of the current consolidated cumulative period.」

「Total R&D expenses for the fiscal year were ¥682.909 million. The Company's R&D activities in the information and telecommunications equipment manufacturing and sales business selectively and strategically concentrated development investment in priority businesses, including information and telecommunications equipment and systems for its core social infrastructure business, such as electric power, railways, government agencies and telecommunications carriers; information and telecommunications equipment and systems related to energy management systems, including smart grids and smart meters; and disaster prevention and IoT」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥158 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the first quarter of the current consolidated cumulative period.」

「Total research and development expenses for the period were ¥682.748 million. In research and development activities in the information and communications equipment manufacturing and sales field, the Company selectively concentrated development investment on information and communications equipment and systems for its core social-infrastructure business, including electric power, railways, government agencies and telecommunications carriers; information and communications equipment and systems related to energy-management systems, including smart grids and smart meters; and priority businesses such as disaster prevention and IoT.」

「R&D expenses for the third quarter of the current consolidated cumulative period were ¥497 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the third quarter of the current consolidated cumulative period.」

「R&D expenses for the second quarter of the current consolidated cumulative period were ¥345 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the second quarter of the current consolidated cumulative period.」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥156 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the first quarter of the current consolidated cumulative period.」

「Total R&D expenses for the fiscal year were ¥578.713 million. The Company's R&D activities in the information and telecommunications equipment manufacturing and sales business selectively and strategically concentrated development investment in priority businesses, including information and telecommunications equipment and systems for its core social infrastructure business, such as electric power, railways, government agencies and telecommunications carriers; information and telecommunications equipment and systems related to energy management systems, including smart grids and smart meters; disaster prevention; and IoT. The Company also conducted R&D and developed new technologies to address changes in markets and customer needs and rapid technological innovation, while focusing on developing and launching distinctive new products.」

「R&D expenses for the third quarter of the current consolidated cumulative period were ¥381 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the third quarter of the current consolidated cumulative period.」

「R&D expenses for the second quarter of the current consolidated cumulative period were ¥273 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the second quarter of the current consolidated cumulative period.」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥163 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the first quarter of the current consolidated cumulative period.」

「Total R&D expenses for the fiscal year were ¥674.820 million. The Company's R&D activities in the information and telecommunications equipment manufacturing and sales business selectively and strategically concentrated development investment in priority businesses, including information and telecommunications equipment and systems for its core social infrastructure business, such as electric power, railways, government agencies and telecommunications carriers; information and telecommunications equipment and systems related to energy management systems, including smart grids and smart meters; disaster prevention; and IoT」

「R&D expenses for the third quarter of the current consolidated cumulative period were ¥483 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the third quarter of the current consolidated cumulative period.」

「R&D expenses for the second quarter of the current consolidated cumulative period were ¥341 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the second quarter of the current consolidated cumulative period.」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥231 million. There were no material changes in the status of the Group's (the Company and its consolidated subsidiaries) R&D activities during the first quarter of the current consolidated cumulative period.」

「Total R&D expenses for the fiscal year were ¥706 million. Under its medium-term plan, the Company's R&D activities in the information and telecommunications equipment manufacturing and sales business will selectively and strategically concentrate development investment in priority businesses, including information and telecommunications equipment and systems for social infrastructure, its core business, such as electric power, railways, government agencies and telecommunications carriers; information and telecommunications equipment and systems addressing the diversification and efficiency gains in energy infrastructure in recent years, including smart grids and smart meters; and information and telecommunications equipment and systems related to IoT, disaster prevention and energy management systems」

「R&D expenses for the third quarter of the current consolidated cumulative period were ¥472 million. There were no material changes in the status of R&D activities during the third quarter of the current consolidated cumulative period.」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥180 million. There were no material changes in the status of R&D activities during the first quarter of the current consolidated cumulative period.」

「Total R&D expenses for the fiscal year were ¥1,169 million. Under its medium-term plan, the Company's R&D activities in the information and telecommunications equipment manufacturing and sales business will selectively and strategically concentrate development investment in priority businesses, including information and telecommunications equipment and systems for social infrastructure, its core business, such as electric power, railways, government agencies and telecommunications carriers; information and telecommunications equipment and systems addressing the diversification and efficiency gains in energy infrastructure in recent years, including smart grids and smart meters; and information and telecommunications equipment and systems related to IoT, disaster prevention and energy management systems」

「R&D expenses for the third quarter of the current consolidated cumulative period were ¥799 million. There were no material changes in the status of R&D activities during the third quarter of the current consolidated cumulative period.」

「R&D expenses for the second quarter of the current consolidated cumulative period were ¥455 million. There were no material changes in the status of R&D activities during the second quarter of the current consolidated cumulative period.」

「R&D expenses for the first quarter of the current consolidated cumulative period were ¥173 million. There were no material changes in the status of R&D activities during the first quarter of the current consolidated cumulative period.」

「We will selectively and strategically concentrate development investment in priority businesses, including information and telecommunications equipment and systems for social infrastructure, our core business, such as electric power, railways, government agencies and telecommunications carriers; information and telecommunications equipment and systems addressing the diversification and efficiency gains in energy infrastructure in recent years, including smart grids and smart meters; and information and telecommunications equipment and systems related to IoT, disaster prevention and energy management systems」