Nec Corporation · TSE:6701

Nec — Nec Corp Unsp/Adr New — Q3 2025 Earnings Presentation

31 slides from Nec's earnings presentation, Jan 30, 2025

  1. Slide 1: Financial Results for Q3 Fiscal Year Ending March 31, 2025

    6701.T Financial Results for Q3 Fiscal Year Ending March 31, 2025 January 30, 2025 NEC Corporation (https://www.nec.com/en/global/ir/) © NEC Corporation 2025

  2. Slide 2: Index

    Index I. Financial Results for Q3, FY25/3 II. Financial Forecasts for FY25/3 III. Topics IV. Financial Results (Appendix) V. Historical Data (Appendix) * Net profit refers to net profit attributable to owners of the parent for the same period.

  3. Slide 3: I. Financial Results for Q3, FY25/3

    I. Financial Results for Q3, FY25/3 © NEC Corporation 2025

  4. Slide 4: Key Takeaways

    Key Takeaways Revenue and Non-GAAP OP significantly increased YoY for the first nine months of FY25/3, mainly in domestic IT Services and ANS*, and progress was beyond expectations towards achieving FY25/3 forecasts Revenue 2,321.8bil. Non-GAAP OP 162.3bil. <YoY**> +4.5% <YoY**> +75.9bil. Changes ma

  5. Slide 5: Summary of Financial Results for nine months, FY25/3

    9 months Results Summary of Financial Results for nine months, FY25/3 1H Q3 9 months （Billions of Yen） FY24/3 FY25/3 FY24/3 FY25/3 FY24/3 FY25/3 YoY YoY YoY Results Results Results Results Results Results Revenue 1,548.8 1,486.7 -4.0% 844.5 835.1 -1.1% 2,393.3 2,321.8 -3.0% Adjusted Operating Profit

  6. Slide 6: Financial Results for nine months, FY25/3 (By Segment)

    9 months Results Financial Results for nine months, FY25/3 (By Segment) Adj. OP significantly increased in both IT Services and Social Infrastructure 1H Q3 9 months （Billions of Yen） FY24/3 FY25/3 FY24/3 FY25/3 FY24/3 FY25/3 YoY YoY YoY Results Results Results Results Results Results Revenue 843.1 8

  7. Slide 7: YoY Change in Adjusted/Non-GAAP Operating Profit

    9 months Results YoY Change in Adjusted/Non-GAAP Operating Profit Improved marginal profit, profitability change, etc. +75.9 （Billions of Yen） +8.5 -12.9 +37.2 -12.1 Others Deconsolidation impact of JAE Non-GAAP Adjusted +30.2 Items Structural Reform Social Expenses, etc. Infrastructure 162.3 150.2

  8. Slide 8: IT Services

    9 months Results IT Services -Revenue increased for both domestic IT and Revenue and Adjusted Operating Profit international business (DGDF)* Adj. OP Margin Revenue Adj. OP (+7% in domestic IT excluding NEC Facilities Ltd.) （Billions of Yen） 1,374.6 1,313.8 -Adj. OP increased due to improved 1,184.8

  9. Slide 9: Domestic IT Services Booking Status (YoY)

    Q3 Results Domestic IT Services Booking Status (YoY) Robust demand continued mainly in Public Q1 Q2 Q3 Q4 Q1 Q2 Q3 Excluding NEC Facilities Ltd. FY24/3 FY24/3 FY24/3 FY24/3 FY25/3 FY25/3 FY25/3 Notes Domestic IT Services +3% -4% +5% -1% +15% +18% +9% Significant increase due to projects for Public +

  10. Slide 10: Social Infrastructure

    9 months Results Social Infrastructure -Adj. OP improved YoY due to cost reductions, Revenue and Adjusted Operating Profit including development expenses despite one-off Revenue Adj. OP Adj. OP Margin gains/losses in Telecom Services （Billions of Yen） 772.9 702.7 730.7 -Revenue and adj. OP significa

  11. Slide 11: Supplemental Information on Telecom Services

    9 months Supplemental Information on Telecom Services Results YoY Change Factors of Adj. OP （Billions of Yen） 1H Q3 9 months FY24/3 Results -0.1 4.4 4.2 Marginal Profit, Profitability Change, etc. +5.6 +3.4 +9.0 Improved mainly in IT business Cost Reductions, Including Development Expenses +8.0 +5.0

  12. Slide 12: II. Financial Forecasts for FY25/3

    II. Financial Forecasts for FY25/3 © NEC Corporation 2025

  13. Slide 13: FY25/3 Financial Forecasts

    FY25/3 Forecasts FY25/3 Financial Forecasts FY23/3 FY24/3 FY25 Forecats FY25 Forecasts (Billion of Yen) Changes Results Results Before changes After changes Revenue 3,313.0 3,477.3 3,370.0 +40.0 3,410.0 Adjusted Operating Profit 205.5 223.6 255.0 +5.0 260.0 % of Revenue 6.2% 6.4% 7.6% 7.6% Non-GAAP

  14. Slide 14: YoY Change in Adjusted/Non-GAAP Operating Profit compared to forecasts

    FY25/3 Forecasts YoY Change in Adjusted/Non-GAAP Operating Profit compared to forecasts as of Oct. 29 Improved marginal profit, （ Billion of Yen ） profitability change, etc. +25.0 +29.0 -3.0 -1.0 -20.0 Social Infrastructure Others +：ANS -：Telecom Services Non-GAAP IT Services Adjusted ＋：Domestic IT

  15. Slide 15: Financial Forecast (By Segment)

    FY25/3 Forecasts Financial Forecast (By Segment) FY23/3 FY24/3 FY25 Forecasts FY25 Forecasts (Billions of Yen) Changes Results Results Before changes After changes Revenue 1,754.3 1,914.0 1,950.0 +80.0 2,030.0 IT Services Adjusted Operating Profit 141.3 184.1 192.0 +20.0 212.0 % of revenue 8.1% 9.6%

  16. Slide 16: IT Services

    FY25/3 Forecasts IT Services FY23/3 FY24/3 FY25 Forecasts FY25 Forecasts (Billions of Yen) Changes Results Results Before changes After changes Revenue 1,464.2 1,612.5 1,650.0 +60.0 1,710.0 IT Services Adjusted Operating Profit 122.9 165.1 168.0 +20.0 188.0 % of revenue 8.4% 10.2% 10.2% 11.0% Revenu

  17. Slide 17: Social Infrastructure

    FY25/3 Forecasts Social Infrastructure FY23/3 FY24/3 FY25 Forecasts FY25 Forecasts (Billions of Yen) Changes Results Results Before changes After changes Revenue 799.5 801.3 830.0 -70.0 760.0 Telecom Adjusted Operating Profit 24.9 27.3 74.0 -16.0 58.0 Services % of revenue 3.1% 3.4% 8.9% 7.6% Revenu

  18. Slide 18: III. Topics

    III. Topics © NEC Corporation 2025

  19. Slide 19: Share split

    Share split NEC will conduct a share split at a ratio of five (5) shares for one (1) share of its common share and reduce the investment unit. The purpose is to further expand its investor base. Number of shares to be increased by share split Schedule of share split Total number of shares issued Dat

  20. Slide 20: Increased cumulative sales for Q3 by 26% YoY and expect to surpass the annual plan

    Increased cumulative sales for Q3 by 26% YoY and expect to surpass the annual plan Capturing the demand for standardization among local governments, strong orders for government cloud operation support services Expanded orders for security operations and dashboards starting from consulting and data-

  21. Slide 21: Orchestrating a brighter world

    \ Orchestrating a brighter world NEC

  22. Slide 22: IV. Financial Results (Appendix)

    IV. Financial Results (Appendix) © NEC Corporation 2025

  23. Slide 23: Breakdown of IT Services

    Q3 Results Breakdown of IT Services 1H Q3 9 months FY24/3 FY25/3 FY24/3 FY25/3 FY24/3 FY25/3 (Billions of Yen) YoY YoY YoY Results Results Results Results Results Results Revenue 705.4 735.5 +4.3% 392.6 406.0 +3.4% 1,098.0 1,141.4 +4.0% Domestic Adj. OP 42.6 48.4 +5.9 37.9 49.6 +11.7 80.5 98.0 +17.5

  24. Slide 24: Breakdown of Social Infrastructure

    Q3 Results Breakdown of Social Infrastructure 1H Q3 9 months FY24/3 FY25/3 FY24/3 FY25/3 FY24/3 FY25/3 YoY YoY YoY (Billions of Yen) Results Results Results Results Results Results Revenue 364.9 357.0 -2.1% 190.9 177.3 -7.1% 555.7 534.4 -3.8% Telecom Services Adj. OP -0.1 9.5 +9.6 4.4 19.8 +15.4 4.2

  25. Slide 25: Non-GAAP Operating Profit Adjustment Items

    Q3 Results Non-GAAP Operating Profit Adjustment Items 1H Q3 9 months FY24/3 FY25/3 FY24/3 FY25/3 FY24/3 FY25/3 (Billions of Yen) YoY YoY YoY Results Results Results Results Results Results Adjusted Operating Profit 28.0 44.7 +16.7 41.8 81.5 +39.7 69.8 126.2 +56.4 M&A Related Amortization of Adjusted

  26. Slide 26: Non-GAAP Net Profit Adjustment Items

    Q3 Results Non-GAAP Net Profit Adjustment Items 1H Q3 9 months (Billions of Yen) FY24/3 FY25/3 FY24/3 FY25/3 FY24/3 FY25/3 YoY YoY YoY Results Results Results Results Results Results Net Profit 12.9 13.5 +0.5 21.1 58.1 +37.0 34.0 71.6 +37.5 M&A related Amortization of 12.4 11.8 - 0.7 6.5 5.6 - 0.9 1

  27. Slide 27: Financial Position Data

    Q3 Results Financial Position Data Q3 As of As of Change from (Billions of Yen) March 31, Dec. 31, March 31, 2024 2024 2024 Total Assets 4,227.5 4,221.0 - 6.5 Total Equity 2,089.5 2,159.2 +69.6 Interest-bearing Debt 548.6 684.8 +136.1 Equity Attributable to Owners of the Parent 1,915.6 1,986.0 +70.4

  28. Slide 28: V. Historical Data (Appendix)

    IV. Financial Results (Appendix) © NEC Corporation 2025

  29. Slide 29: Revenue Breakdown

    Revenue Breakdown FY23/3 Results FY24/3 Results FY25/3 Results （ Billions of Yen ） Q1 1H Q3 2H Full Year Q1 1H Q3 2H Full Year Q1 1H Q3 Public 67.4 156.7 94.2 246.9 403.5 73.3 179.2 101.4 256.5 435.7 75.6 184.5 109.0 Enterprise 137.3 283.2 140.2 320.0 603.2 157.1 327.1 177.5 376.8 704.0 164.1 331.9

  30. Slide 30: Adjusted OP Breakdown

    Adjusted OP Breakdown FY23/3 Results FY24/3 Results FY25/3 Results （ Billions of Yen ） Q1 1H Q3 2H Full Year Q1 1H Q3 2H Full Year Q1 1H 3Q Domestic Adjusted Operating Profit -6.4 25.7 26.0 97.2 122.9 10.9 42.6 37.9 122.6 165.1 10.2 48.4 49.6 % of revenue -2.2% 4.0% 7.7% 11.7% 8.4% 3.4% 6.0% 9.7% 13

  31. Slide 31: Cautionary Statement with Respect to Forward-Looking Statements

    Cautionary Statement with Respect to Forward-Looking Statements This material contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the NEC Group (the "forward-looking sta

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