Socionext Inc. · TSE:6526
Socionext — Q1 FY2027/3 Earnings Presentation
49 slides from Socionext's earnings presentation, Jul 29, 2026
Slide 1: 1Q FY2027/3 Consolidated Financial Results
1Q FY2027/3 Consolidated Financial Results July 29, 2026 Socionext Inc.
Slide 2: Disclaimer
Disclaimer This presentation’s sole purpose is to present certain information regarding Socionext Inc. (“Socionext”). This presentation does not constitute an offer to sell or the solicitation of an offer to buy shares of our common stock (the “securities”). This presentation and the information con
Slide 3: Cautionary Note Regarding Design Win Amount and Design Win Balance
Cautionary Note Regarding “Design Win Amount” and “Design Win Balance” The calculation of “Design Win Amount” and “Design Win Balance” involves a significant degree of future estimation and subjective judgment. Such calculations are based on assumptions regarding development plans, development costs
Slide 4: Consolidated Financial Results 1Q FY2027/3
1Q FY2027/3 Consolidated Financial Results ─ Consolidated Financial Results 1Q FY2027/3 ─ Consolidated Earnings Forecast FY2027/3
Slide 5: 1Q FY2027/3 Consolidated Statements of Income
1Q FY2027/3 Consolidated Statements of Income （JPY in billions） FY2026/3 FY2027/3 YoY QoQ 1Q 2Q 3Q 4Q 1Q YoY% QoQ% Net Sales 34.6 52.7 54.9 58.7 39.0 +4.5 +13.0% -19.7 -33.5% Product revenue 25.9 44.5 44.3 47.1 27.4 +1.5 +5.9% -19.7 -41.9% NRE revenue 8.5 8.0 10.4 11.5 11.6 +3.1 +37.1% +0.1 +1.1% Ot
Slide 6: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income Net Sales1 Operating Income1 Other Revenue Operating Margin NRE Revenue （JPY in billions） （JPY in billions） Operating Income 19.4% Product Revenue including 61.4 17.6% Special Demand 58.7 16.5% 56.1 55.5 54.9 53.9 8.4 52.751.652.8 52.7 11.5 14.0% 15.4% 6.8 11
Slide 7: 1Q FY2027/3 Financial Results YoY
1Q FY2027/3 Financial Results YoY Net Sales and Operating Income YoY Operating Income YoY Analysis NRE Revenue Operating Margin （JPY in billions） （JPY in billions） Product Revenue Operating Income +2.3 4.2% 39.0 34.6 1.4 11.6 8.5 1.4 -0.7 +0.3 25.9 27.4 -0.7 -2.3 -2.4 -1.7% 2 1,2 2 2 FY26/3 1Q FY27/
Slide 8: 1Q FY2027/3 Financial Results QoQ
1Q FY2027/3 Financial Results QoQ Net Sales and Operating Income QoQ Operating Income QoQ Analysis NRE Revenue Operating Margin （JPY in billions） （JPY in billions） Product Revenue Operating Income 8.8% 58.7 11.5 5.2 5.2 0.0 39.0 -3.0 11.6 47.1 +0.1 -0.7 27.4 -0.7 -3.0 -1.7% 2 1,2 2 2 FY26/3 4Q FY27/
Slide 9: Consolidated Balance Sheet (As of June 30, 2026)
Consolidated Balance Sheet (As of June 30, 2026) （JPY in billions） Cash on-hand and in banks1 （JPY in billions） As of As of Change Mar.31, 2026 June 30, 2026 Total Assets 167.6 173.4 +5.8 74.0 69.9 72.8 69.5 55.9 69.7 69.1 Total Current Assets 122.8 122.6 -0.2 53.0 46.3 45.1 47.5 45.7 43.8 44.5 37.2
Slide 10: Capex, Depreciation & Amortization, Cash Flow
Capex, Depreciation & Amortization, Cash Flow Capex1, Depreciation & Amortization Cash Flow (JPY in billions) (JPY in billions) 10.0 40.0 Capex Depreciation & Amortization Operating CF Investment CF Free CF 30.0 8.0 20.0 6.0 10.0 0.0 4.0 -10.0 2.0 -20.0 0.0 -30.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 11: Breakdown by Application Market
Breakdown by Application Market Net Sales NRE Revenue Automotive Data Center & Networking Automotive Data Center & Networking Smart Devices Industrial Smart Devices Industrial Other Other 100% 100% 2% 5% 6% 6% 3% 6% 7% 6% 10% 8% 14% 11% 14% 13% 12% 8% 16% 8% 17% 23% 23% 13% 29% 27% 17% 17% 11% 19% 1
Slide 12: Breakdown by Geographic Region
Breakdown by Geographic Region Net Sales NRE Revenue US China Japan Other US China Japan Other 100% 100% 10% 7% 8% 8% 9% 10% 7% 8% 10% 12% 12% 11% 12% 11% 14% 15% 18% 19% 21% 21% 80% 80% 26% 31% 20% 29% 38% 37% 36% 44% 45% 20% 24% 51% 52% 60% 59% 60% 63% 55% 18% 66% 55% 21% 12% 71% 56% 5% 25% 16% 20
Slide 13: Breakdown by Process Node
Breakdown by Process Node Net Sales NRE Revenue 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 100% 100% 3% 4% 10% 8% 3% 14% 13% 7% 18% 17% 2% 22% 23% 21% 25% 27% 25% 12% 6% 29% 12% 7% 80% 42% 80% 45% 43% 18% 10% 6% 9% 55% 16% 64% 21% 19% 19% 30% 60%
Slide 14: Consolidated Earnings Forecast FY2027/3
1Q FY2027/3 Consolidated Financial Results ─ Consolidated Financial Results 1Q FY2027/3 ─ Consolidated Earnings Forecast FY2027/3
Slide 15: Net Sales Trends
Content added to April 2026 presentation slide Net Sales Trends FY26/3、FY27/3 Sales Result (actual FX rate) FY26/3、FY27/3 Sales Result (on USD/JPY 130 basis1) FY26/3 Sales Result Average (on USD/JPY 130 basis1） FY27/3 Sales Forecast (as of April 2026, USD/JPY 130) FY27/3 2H Forecast (as of April 202
Slide 16: Consolidated Earnings Forecast FY2027/3 (revised)
From April 2026 presentation (revised) Consolidated Earnings Forecast FY2027/3 (JPY in billions) (Reference) FY2026/3 FY2027/3 FY2027/3 forecast figures Full Year calculated using actual FX rate Full Year in FY2026/3 and FX sensitivity Forecast as of Results indicated in the footnote April 2026 YoY
Slide 17: Appendix: Overview
Appendix: Overview • Consolidated Financial Statements • Breakdown of Net Sales (Quarterly)
Slide 18: Consolidated Statements of Income
Consolidated Statements of Income (JPY in billions) FY27/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 1Q Net Sales 99.7 117.0 192.8 221.2 188.5 200.8 39.0 % YoY -3.7% +17.3% +64.7% +14.8% -14.8% +6.5% +13.0% Product revenue 73.1 84.6 156.8 182.9 146.6 161.8 27.4 NRE revenue 23.0 28.1 34.9 37.6 41.0 3
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets FY27/3 FY27/3 (JPY in billions) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 1Q 1Q Assets Liabilities and Equity Cash on-hand and in banks1 42.7 46.3 45.1 69.7 72.8 44.5 37.3 Accounts payable-trade 12.0 16.6 23.4 15.8 11.9 15.8 20.1
Slide 20: Breakdown by Application Market (Quarterly)
Breakdown by Application Market (Quarterly) Net Sales1 NRE Revenue1 Automotive Data Center & Networking Automotive Data Center & Networking Smart Devices Industrial Smart Devices Industrial Other Other 100% 100% 3% 2% 3% 5% 3% 3% 2% 4% 5% 6% 5% 6% 6% 8% 6% 4% 4% 6% 6% 4% 4% 8% 7% 5% 5% 8% 7% 7% 8% 8
Slide 21: Breakdown by Geographic Region (Quarterly)
Breakdown by Geographic Region (Quarterly) Net Sales1 NRE Revenue1 US China Japan Other US China Japan Other 100% 100% 3% 3% 4% 7% 8% 6% 7% 8% 9% 7% 8% 9% 8% 7% 7% 5% 7% 5% 6% 8% 6% 12% 11% 12% 11% 10% 11% 10% 12% 11% 12% 11% 12% 9% 12% 10% 15% 20% 22% 21% 26% 23% 14% 31% 23% 80% 80% 17% 34% 30% 26%
Slide 22: Breakdown by Process Node (Quarterly)
Breakdown by Process Node (Quarterly) Net Sales1 NRE Revenue1 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 100% 100% 1% 3% 5% 3% 3% 2% 4% 4% 8% 10% 6% 8% 10% 11% 11% 7% 8% 3% 16% 17% 15% 15% 15% 6% 10% 5% 8% 2% 20% 4% 23% 23% 21% 21% 22% 23% 23% 24%
Slide 23: Excerpts from the FY2026/3 financial results presentation (April 2026)
The following slides are excerpts from the FY2026/3 financial results presentation (April 2026)
Slide 24: Design Wins Trends
From April 2026 presentation Design Wins Trends ◼ FY2026/3 Design Win Amount totaled 310 billion yen with large-scale projects secured primarily in the DC & NW sector, though the amount was lower than in FY2025/3, mainly due to the factors including: high level of design wins in 4Q FY2025/3, FY2026/
Slide 25: Design Win Balance: Breakdown of Changes
From April 2026 presentation Design Win Balance: Breakdown of Changes ◼ Design Win Balance totaled 1.51 trillion yen in FY2026/3, up 170 billion yen from FY2025/3, due to an increase in the balance of existing projects, offsetting decrease in Design Win Amounts and cancellations ◼ Approx. 60% of Des
Slide 26: Design Win Balance: by Application Market and Region
From April 2026 presentation Design Win Balance: by Application Market and Region ◼ By application market: ‐ Share of Data Center & Networking and Industrial increased in FY2026/3, while Automotive and Other declined. ‐ Aiming to achieve a well-balanced portfolio over medium- to long-term across Aut
Slide 27: Consolidated Earnings Forecast FY2027/3 (vs. FY2026/3 Results)
From April 2026 presentation Consolidated Earnings Forecast FY2027/3 (vs. FY2026/3 Results) Net Sales Operating Income (JPY in billions） (JPY in billions） Product Gross Profit : Increase (+) Product revenue increase (-) Product gross margin: slight decrease (-) Product mix change (higher share of la
Slide 28: Net Sales Trends: Past and Future
From April 2026 presentation Net Sales Trends: Past and Future ◼ Net sales are expected to return to growth track in 2nd half FY2026/3 and exceed the assumptions made when the Medium-Term Targets were set ◼ FY2027/3 net sales are also to slightly exceed the Medium-Term Targets assumptions (based on
Slide 29: Product Gross Profit and R&D Ratio: Trends and Future Outlook
From April 2026 presentation Product Gross Profit and R&D Ratio: Trends and Future Outlook Product Gross Profit Trends and Future Outlook ◼ FY2026/3 product gross margin decreased by several percentage points compared to April 2025 forecast, due to more-than-forecast volume in the early mass product
Slide 30: Operating Income Trends and Future Outlook
From April 2026 presentation Operating Income Trends and Future Outlook ◼ FY26/3: Due to decline in product gross margin, both operating income and operating margin fell below the assumption as of April 2025. ◼ FY27/3: Although product gross margin is expected to remain slightly lower than in FY26/3
Slide 31: Medium-Term Targets: Progress Update
From April 2026 presentation Medium-Term Targets: Progress Update Medium-Term Targets (as of April 2025) FY25/3 FY26/3 Medium-Term Results Results (Updated) Targets2 Progress Update Growth expected to exceed the Net Sales 188.5(170.01) 200.8 (175.51) CAGR assumptions made when the (JPY in billions)
Slide 32: Market Trend, Background of FY27/3 Forecast, Outlook for FY28/3 and Beyond
From April 2026 presentation Market Trend, Background of FY27/3 Forecast, Outlook for FY28/3 and Beyond Market Trend & Design Win Status FY27/3 Forecast Outlook for FY28/3 and beyond Net sales are to be slightly higher than the assumptions in the Net sales are expected to exceed the assumptions in t
Slide 33: Growth Scenario to Date and Going Forward
From April 2026 presentation Growth Scenario to Date and Going Forward ◼ Building on Design Win Balance, acquired through the “First Transformation (shift in business model and focus areas),” we aim to achieve continued revenue growth (expecting to exceed the previous assumptions) and expansion of b
Slide 34: Semiconductor Market Trends
From April 2026 presentation Semiconductor Market Trends Background of the Growing Demand for Custom SoCs and Solution SoC Business Model Advances in SoC and AI technologies accelerate market expansion (Spiral of evolution) Emergence of new services and applications − AI utilization is expanding alo
Slide 35: For Future Growth: Aggressive Advance Investment
From April 2026 presentation For Future Growth : Aggressive Advance Investment Emergence of new services and applications utilizing AI / Evolution of SoC ecosystem across diverse fields → Innovative companies are looking for SoC partner with Entire Design capability → Need for advance investment for
Slide 36: Strengthening design and development capabilities through development track-record
From April 2026 presentation For Future Growth : Strengthening design and development capabilities through development track-record Track record in large scale & advanced technology development （Strengthening design and development capabilities through development track record in multiple fields and
Slide 37: Physical AI
From April 2026 presentation Expanding Business in Each Application Market with Computer Architecture Based Platform Smart Devices Physical AI Industrial （Edge Devices) Physical AI represents long-term growth opportunities ◼ Demand for new technologies in smart devices area continues to be strong ◼
Slide 38: Advanced SoC Developments on Computer Architecture Basis in Diverse Fields
From April 2026 presentation Advanced SoC Developments on Computer Architecture Basis in Diverse Fields ◼ Common development platform established as system configurations across major applications become similar towards computer architecture-based ◼ Address PPA optimization challenges due to design
Slide 39: Physical AI: Design Wins Expanding in Each Application Market
From April 2026 presentation Design Wins Expanding in Each Application Market Physical AI Smart Devices (Edge Devices) Industrial 3/5/7nm Network 5/7/12nm cameras Test & Measurement 28nm DSLR/Action Printer Camera ISP ecific IPs, User 5/7nm n-sp Log atio ic, lic Network camera pp et EDA Tool AR A c
Slide 40: Strengthening Entire Design Capability / Fundamental Reform of Global Structure
From April 2026 presentation Strengthening Entire Design Capability / Fundamental Reform of Global Structure April 2025～ Continuously strengthen Global Leading Group at the core of Entire Design Fundamental reform of global organizational structure Establish global co-lead structure - Make organizat
Slide 41: Strengthen Executive Structure
From April 2026 presentation Strengthen Executive Structure As of April 2026 CEO M. Koezuka COO EVP & CFO H. Yoshida Y. Yoneyama Global Leading Group / Business Development Business Group / Sales Group Production Management Group Corporate Development Group Group EVP EVP EVP EVP EVP GLG co-Lead Deve
Slide 42: Design Win Amount to Revenue / Illustrative Description of Design Win Balance
From April 2026 presentation “Design Win Amount” to Revenue / Illustrative Description of “Design Win Balance” “Design Win Balance1” ・・・ “Design win balance” (LTR; Life Time Revenue) represents our estimates of remaining accumulated “design win amount” that is associated with projects that are activ
Slide 43: Timeline from Design Win to Mass Production
From April 2026 presentation Timeline from Design Win to Mass Production / Illustrative Description of “Design Win Amount” “Design Win Amount１” ・・・ “Design Win Amount” represents estimate of the lifetime demand from design projects. “Design Win Amount” is divided into NRE-based and product-based amo
Slide 44: Transformation into Global Custom SoC Company in Advanced Technology Areas
From April 2026 presentation Transformation into Global Custom SoC Company in Advanced Technology Areas ◼ Through transformation of business and company culture, Socionext has turned into global leading custom SoC company with new and distinctive “Solution SoC” business model Expansion of Business M
Slide 45: Features of Solution SoC Business Model
From April 2026 presentation Features of Solution SoC Business Model ◼ The primary difference between “traditional ASIC” and “Solution SoC “ is how to interface with customers ◼ The primary difference between “Solution SoC” and “ASIC designed by ASSP vendors“ is the breadth of optional customization
Slide 46: (Reference) Architecting the AI Silicon Era
From April 2026 presentation (Reference) Architecting the AI Silicon Era The Collapse of the General-Purpose Pyramid The “Entire Design” Moat Beyond Silicon: The Hardware race is ultimately decided in software. Standard ASSP (Legacy Approach) Custom SoC (The AI Mandate) AI custom accelerators fail w
Slide 47: Recent activities in the advanced technology field - Flexlets
From April 2026 presentation (Reference) For future growth : Recent activities in the advanced technology field - “Flexlets” Integrated, yet flexible, chiplet platform built for end-to-end bespoke SoC design in line with Solution SoC business model Flexlets: The Composable Silicon Platform RTL-Confi
Slide 48: Socionext's Solution SoC design & development platform
From April 2026 presentation (Reference) Socionext’s Solution SoC design & development platform Computer Architecture Based Platform SoC Design Process Application Framework Software Specific API AI API Linux API Architecture (Service/Application) Customer Specific Libraries AI Libraries Standard Li
Slide 49: Socionext: The Solution SoC Company
socionext’ The Solution SoC Company