November 10, 2010

Settlement of Accounts in the Second Quarter of

the Fiscal Year Ending March 31, 2011and

Medium-term Management Plan

Settlement of Accounts in the Second Quarter of

the Fiscal Year Ending March 31, 2011and

Medium-term Management Plan

<Cautionary matter of description regarding future prospect> Please bear in mind that the forecast of our business performance and future forecast described in this material are forecasts judged by our company on the basis of the business environment at this point in time, and actual business performance can be different depending on the development of the business environment hereafter.

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Subject of Today’s Briefing

Fiscal Year Ending March 31, 2011Outline of the Second Quarter Consolidated Business Performance

Fiscal Year Ending March 31, 2011Forecasts of Consolidated Business Performance

Medium-tem Management Plan

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Fiscal Year Ending March 31, 2011 Outline of the Second Quarter

Consolidated Business Performance

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Net Sales

Operating Income

Ordinary Income

Net Income Net Income per

Share (yen)

2QFY10/Mar.

Actual Result

174

-0.2

-0.5

-2.1

-3.40

2QFY11/Mar.

217

5.8

4.1

-1.4

-2.37

43

6.0

4.6

0.7

1.03

25%

-

-

-

-

Actual Result

Fiscal Year Ending March 31, 2011 Outline of the Second Quarter Consolidated Business Performance

Change Ratio of Change

Year-over-Year

Network solutionsfield 91 97 6 7%

83 120 37 44%Security solutionsfield

(100 millions of yen)

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91

83

97

120

2QFY10/Mar. 2QFY11/Mar.

Parts, etc. 5.5 billion yen

Year-over-year +2.2 billion yen

Security systems 6.5 billion yen

Year-over-year +1.5 billion yen

Network equipment, etc.3.2 billion yen

Year-over-year +0.6 billion yen

Key telephone systems 6.5 billion yen

Year-over-year ±0

Fiscal Year Ending March 31, 2011 Second Quarter Consolidated Net Sales (By Field)

(100 millions of yen)

174

217Security solutions Network solutions

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2QFY10/Mar. 2QFY11/Mar.

Breakdown of Major Changes in Operating Income (2QFY10/Mar.~2QFY11/Mar.)

2QFY10/Mar.

2QFY11/Mar.

Operating income-20 million yen

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Increased Sales

200 million yen

Increased expenses by

increased sales -100 million yen

Reduced material cost Improved production efficiency 100 million yen

Reduced personnel expenses

200 million yen

Reduced Development cost 100 million yen

100 million yen

Reduced depreciation expense Operating income

580 million yen

Current assets

Fixed assets

Deferred assets

Total assets

End of FY10/Mar.

(A)254193

1448

End of 2Q FY11/Mar.

261185

0446

+7-8-1-2

(B)

Fiscal Year Ending March 31, 2011 Outline of the Second Quarter Balance Sheet

(B-A)Change

(100 millions of yen)

Assets

Current liabilities

Long-term liabilities

Total liabilities and net assets

117103

448

12199

446

+4-4

-2

Total liabilities

Net assets 220228

220226

0-2

End of FY10/Mar.

(A)End of 2Q FY11/Mar.

(B) (B-A)Change

Liabilities/Net assets

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Fiscal Year Ending March 31, 2011 Forecasts of Consolidated Business

Performance

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Net Sales

Operating Income

Ordinary Income

Net Income

Net Income per Share (yen)

FY10/Mar.

Actual Result

386

6.0

5.9

1.4

2.28

FY11/Mar.

430

13.0

11.0

2.5

4.12

+44

+7.0

+5.1

+1.1

+1.84

11%

117%

86%

79%

81%

Forecasts

Fiscal Year Ending March 31, 2011 Forecasts of Consolidated Business Performance

Change Ratio of Change

Year-over-Year

Dividend (yen)(Forecast) - 3

Network solutions field

Securities solutions field

182 204 +22 12%

204 226 +22 10%

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(100 millions of yen)

182

204

204

226

FY10/Mar. FY11/Mar. Forecast

Parts, etc. 9.2 billion yen

Year-over-year +0.6 billion yen

Security systems13.4 billion yen

Year-over-year +1.6 billion yen

Network equipment, etc.7.6 billion yen

Year-over-year +2.1 billion yen

Key telephone systems12.8 billion yenYear-over-year +0.1 billion yen

Fiscal Year Ending March 31, 2011 Forecasts of Consolidated Sales

386

430Security solutionsNetwork solutions

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(100 millions of yen)

Breakdown of Major Changes of Forecasted Operating Income (FY10/Mar.~FY11/Mar.)

FY10/Mar. FY11/Mar.Forecast

Operating income600 million yen

Operating income1,300 million yen

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Increased sales

300 million yen

Increased development cost -100 million yen

Increased depreciation

expense-100 million yen

Reduced material cost Improved production efficiency 300 million yen

Reduced personnel expenses300 million yen

Capital Investment, Depreciation Expense, R&D Expense

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FY10/Mar.

Actual Result

FY11/Mar.

Forecasts Change

Year-over-Year

Capital Investment (Tangible) 6 +33

Capital Investment (Intangible) 17 +611

Total 23 +914

R&D Expense 55 +154

Depreciation Expense 29 +128

(100 millions of yen)

Medium-term Management Plan

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Changes in the Market Environment and Our Engagements

<Engagements of Our Company Group>Development and sale of new products coping with changes in the market, and securing of new customersEarlier return to a growth path, aiming at being a company which attains stable progress

<Changes in information communication network related market>In line with the progressed adoption of broadband, the main axis of communication are shifting from voice communication to data and image communication.In line with the diversification and sophistication of communication service, major changes are underway while various businesses have emerged.

SAXA Medium-term Management Plan

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Directionality of Our Business

Not-Invented-Here (NIH)

Open innovation

Product-out Market-in

Advancing AXA GroupAdvancing AXA Group

Thorough implementation of Thorough implementation of ““marketmarket--inin”” and and ““open innovationopen innovation””

Timely provision of solutions from Timely provision of solutions from the perspective of customersthe perspective of customers

Former position ofFormer position ofour company groupour company group

Strengthening of marketing power and planning Strengthening of marketing power and planning capacitycapacityEfficient development based on the concept of Efficient development based on the concept of open innovationopen innovation

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Business Fields

Future Business Domain and Product

Transport/settlement market

RailwayBusDistributionRoads

Social infrastructure Social infrastructure marketmarketEducation Nursing care, welfareTelemetering

Amusement marketTheme parkResort facilitiesGame centerHall

Office marketSmall and medium officesAutomatic security

Targeted marketsOverseas market

EuropeUSAAsia, etc.

Security solution field

Network solution field

We provide various equipment and solutions whichrealize assurance/safety/comfort/convenience in the

targeted markets.

Equipment/Solutions which we newly aim at

Visual communication

Secure solutions

Network appliance

Market-in Openinnovation

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Sensor Image sensor

Automatic security

Threat equipment

Maintenance service

Our Aims in the Office Market[23.4 billion yen (FY11/Mar. Forecast of sales) → 140%]

IP TV interphone

Common platform (UTM, etc.)

Camera systems (camera pack)

Security

Small and medium officesWe facilitate various office solutions by utilizing common platforms, camera systems, security systems and others.

We provide total security by upgrading/expanding related equipment and enhancing maintenance service.

Camera systems (Camera pack)

Office Market

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Receiving system

Transmitting system

Key telephone

Network equipment

Game center Theme park Resort facility

Our Aims in the Amusement Market [8.8 billion yen (FY11/Mar. Forecast of sales) 120%]

Card equipment

+Environmental

equipment Security systems

Hall

Expansion of Domain

Amusement Market

Advancement into areas other than hall is being considered.

We sell environment equipment and security systems, in addition to card equipment.

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Railway

Bus Road

Distribution

Counting number of ridership

Road Detection of stopped traffic

Safety monitoring Phone callcommunication

Mobile settlement terminal

IC card terminal

Transport/Settlement Market

Our Aims in the Transport/Settlement Market[2.4 billion yen (FY11/Mar. Forecast of sales) 180%]

Facilitate transport solutions with IP interphone and image processing technology as the core

Facilitate settlement solutions with card R/W as the base

Facilitate solution with image processing technology as the core

Facilitate solutions with image processing technology as the core

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Education

Remote meter

reading

Electricity related

Nursing care/Welfare/Medical

Extending to other uses

Elderly support systemsNurse call

Key telephone linkage systems

Social Infrastructure Market

Camera systems

Our Aims in the Social Infrastructure Market[3.3 billion yen (FY11/Mar. Forecast of sales) 180％]

Remote monitoring

Security

LP gas meter reading

Attendance control

systems

+IC card terminal

+

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Expansion of business opportunitiesin fire alarm, security, image products, etc.

Expansion of business opportunitiesin fire alarm, security, image products, etc.

Expansion of business opportunitiesin fire alarm, security, image products, etc.in Asian region

Entry into the image market and promotion ofoffshore development supported byexisting partners in China

Promotion of open innovation with Taiwanesecompanies

Our Aims in the Overseas Market[0.4 billion yen (FY11/Mar. Forecast of sales) 280%]

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Major Targets for Achievement

FY11/Mar.Forecast

Target

430430

600600 (100 millions of yen) Security solutionsNetwork solutions

FY11/Mar. Forecast

Target

Net sales 43 billion yen 60 billion yen

Ordinary income 1.1 billion yen 3 billion yen

Ordinary income margin

2.6% 5% or more

Total assets turnover 1.0 time 1.5 times or more

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