Slide 1: Consolidated Financial Results and Growth Strategy
Fiscal Year Ended March 31, 2025 Consolidated Financial Results and Growth Strategy April 28, 2025 Socionext Inc.
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for the purpose of presenting relevant information regarding Socionext Inc. (“Socionext”). This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitat
Slide 3: Cautionary Note Regarding Design Win Amount and Design Win Balance
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 considerable degree of future estimation and subjective judgment, including assumpt
Slide 4: Consolidated Financial Results for the Fiscal Year Ended March 31, 2025
Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 ─ Consolidated Financial Results FY2025/3 ─ Consolidated Earnings Forecast FY2026/3
Slide 5: FY2025/3 Consolidated Statements of Income
FY2025/3 Consolidated Statements of Income (Yen in billions) (Reference) FY24/3 FY25/3 YoY YoY % Disclosure as of January 2025 Net Sales 221.2 188.5 -32.7 -14.8% 190.0 -1.5 Product Revenue 182.9 146.6 -36.3 -19.8% － NRE Revenue 37.6 41.0 +3.4 +9.1% － Others 0.8 0.9 +0.2 +23.3% － Cost of Sales 111.2
Slide 6: FY2025/3 Consolidated Statements of Income (Quarterly)
FY2025/3 Consolidated Statements of Income (Yen in billions) FY2024/3 FY2025/3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q YoY YoY % Net Sales 61.4 55.5 52.7 51.6 52.8 46.4 46.1 43.3 -8.3 -16.2% Product Revenue 52.9 48.5 40.5 40.9 42.3 37.7 35.0 31.6 -9.3 -22.8% NRE Revenue 8.4 6.8 11.9 10.5 10.3 8.4 10.8 11.4 +0.9 +8.
Slide 7: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income Net Sales1 Operating Income1 （Yen in billions） Operating Income （Yen in billions） Product Revenue 19.4% including Margin 15.0 Special Demand 61.4 17.6% NRE Revenue 56.1 55.5 16.5% 53.9 8.4 Others 52.7 51.6 52.8 15.4% 6.8 14.7% 11.5 7.3 14.0% 46.4 46.1 11.9 10
Slide 8: FY2025/3 Full-Year Financial Results (vs. FY2024/3)
FY2025/3 Full-Year Financial Results (vs. FY2024/3) Net Sales and Operating Income YoY Operating Income YoY Analysis （Yen in billions） Operating Income （Yen in billions） （Yen in billions） Product Revenue including Margin Special Demand 16.1% NRE Revenue 221.2 13.3% 188.5 -12.7 37.6 1.8 -2.8 3.2 41.0
Slide 9: FY2025/3 Full-Year Net Sales (vs. FY2024/3)
FY2025/3 Full-Year Net Sales (vs. FY2024/3) ◼ Breakdown of product revenue decrease • By application: decreased mainly in Data Center & Networking • By region: decreased mainly in China Net Sales YoY Analysis Product Revenue YoY Analysis (Yen in billions) (Yen in billions) By Application FY24/3 DC&N
Slide 10: 4Q FY2025/3 Financial Results (vs. 4Q FY2024/3)
4Q FY2025/3 Financial Results (vs. 4Q FY2024/3) Net Sales and Operating Income YoY Operating Income YoY Analysis （Yen in billions） Operating Income （Yen in billions） （Yen in billions） Product Revenue NRE Revenue Margin 51.6 14.7% 10.5 43.3 -4.5 11.4 10.0% 0.2 0.3 0.7 40.9 7.6 7.6 31.6 4.3 4.3 2 1,2
Slide 11: 4Q FY2025/3 Financial Results (vs. 3Q FY2025/3)
4Q FY2025/3 Financial Results (vs. 3Q FY2025/3) Net Sales and Operating Income QoQ Operating Income QoQ Analysis （Yen in billions） Operating Income （Yen in billions） （Yen in billions） Product Revenue NRE Revenue Margin 46.1 11.1% 43.3 10.0% -1.7 10.8 11.4 0.3 0.0 0.6 35.0 5.1 31.6 4.3 5.1 4.3 2 1,2
Slide 12: Consolidated Balance Sheet (As of March 31, 2025)
Consolidated Balance Sheet （As of March 31, 2025） Cash on Hand and in Banks (Yen in billions) (Yen in billions) As of As of Change Mar.31,2024 Mar.31,2025 Total Assets 186.8 170.3 -16.5 55.9 69.7 69.1 74.0 69.9 72.8 53.0 47.5 46.3 45.1 Total Current Assets 138.9 126.3 -12.6 37.2 38.1 33.9 Cash on-ha
Slide 13: Capex-Depreciation & Amortization / Cash Flow
Capex-Depreciation & Amortization / Cash Flow Capex1-Depreciation & Amortization2 Cash Flow 2 (Yen in billions) (Yen in billions) 10 25 40 Operating CF Investment CF Free CF 9 Capex Depreciation&Amortization 8 20 7 20 6 15 5 4 10 0 3 2 5 1 0 0 -20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY21
Slide 14: 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 Others Others 100% 100% 6% 7% 6% 6% 14% 11% 10% 8% 14% 13% 12% 23% 23% 16% 27% 8% 29% 17% 13% 19% 11% 16% 80% 11% 21% 80% 27
Slide 15: Breakdown by Geographic Region
Breakdown by Geographic Region Net Sales NRE Revenue US China Japan Others US China Japan Others 100% 100% 10% 7% 8% 8% 10% 7% 8% 10% 12% 12% 11% 12% 11% 14% 19% 18% 80% 80% 26% 31% 20% 29% 38% 36% 44% 45% 51% 52% 60% 59% 60% 63% 21% 18% 66% 71% 55% 12% 56% 25% 20% 40% 40% 39% 33% 30% 24% 18% 48% 49
Slide 16: Breakdown by Process Node
Breakdown by Process Node Net Sales NRE Revenue 3-7nm 10-16nm 20-28nm 40nm & above / Others 3-7nm 10-16nm 20-28nm 40nm & above / Others 100% 100% 10% 8% 14% 13% 17% 22% 23% 21% 25% 25% 12% 29% 12% 7% 80% 42% 80% 45% 43% 18% 10% 6% 9% 55% 64% 21% 19% 19% 30% 60% 22% 60% 33% 30% 28% 46% 17% 18% 28% 29
Slide 17: Strong Design Wins
Strong Design Wins ◼ Design Win Amount has more than doubled through transformation since 2018 ◼ Achieved level of 250 billion yen in FY23/3 and FY24/3 ◼ FY25/3 amount expanded to approx. 300 billion yen “Design Win Amount” (LTR) acquired in each fiscal year Approx. 300 billion yen Approx. Approx. 2
Slide 18: Large-Scale Design Wins Increasing
Large-Scale Design Wins Increasing ◼ Proportion of large-scale Design Wins increasing Project Size “Design Win Amount” (LTR) acquired in each fiscal year Less than 10 bn yen Approx. Between 10 ~ 30 bn yen 300 billion yen Approx. 30 bn yen or more 250 billion yen Approx. Number of projects 200 billio
Slide 19: Design Win Balance: Breakdown of Changes
Design Win Balance: Breakdown of Changes ◼ Design Win Balance increased by approx. 10%, or 100 billion yen, with strong Design Wins, despite cancellations ◼ 60% of current Design Win Balance expected to be recognized as revenues in next four years (Yen in billions) Design Win Balance (Approx.) FY22/
Slide 20: Design Win Balance: by Application Market and Region
Design Win Balance: by Application Market and Region ◼ By application market: ‐ Proportion of Data Center & Networking increasing, reflecting recent strong design wins Current proportion of Design Win Balance by application market (approx.) : 1/3 Automotive, 1/3 Data Center & Networking, and 1/3 the
Slide 21: Revision of FX Rate Assumption
Revision of FX Rate Assumption for Design Win Amount and Design Win Balance Calculation ◼ Revised “internal management FX rate” from USD/JPY 100 to 120 ◼ Internal management FX rate was introduced to manage net sales and profit of each project through its lifetime and company-wide net sales and prof
Slide 22: Consolidated Earnings Forecast
Consolidated Earnings Forecast For Reference: (Yen in billions) FY2025/3 FY2026/3 Figures calculated using FX rate of previous year (FY25/3) and FX rate sensitivity in note below Full Year Results Full Year Forecast YoY YoY % with FY26/3 forecast Net Sales 188.5 175.0 -13.5 -7.2% 197.6 Operating Inc
Slide 23: Consolidated Earnings Forecast (vs. FY2025/3 Results)
Consolidated Earnings Forecast (vs. FY2025/3 Results) Net Sales Operating Profit （Yen in billions） （Yen in billions） • Slight increase or no change • (- ) FX impact • (- ) Indirect FX impact on procurement becoming less NRE etc. decrease • (- ) lower product GM by Product mix change / new mass produ
Slide 24: Quarterly Net Sales Trend
Quarterly Net Sales Trend Quarterly Net Sales Trend FY25/3 Sales FY25/3 Quarterly Average Sales Calculated at USD/JPY=1301 FY25/3 Sales Calculated at USD/JPY=1301 FY26/3 Quarterly Average Sales Forecast at USD/JPY=130 FY26/3 Forecast at USD/JPY=130 FY26/3 Average Sales FY25/3 Average Sales (USD/JPY=
Slide 25: Growth Strategy
Growth Strategy ─ Mid-Term Targets (for Future Growth) ─ Growth Strategy
Slide 26: Growth Scenario to Date and Going Forward
Growth Scenario to Date and Going Forward ◼ Growth and expansion based on Design Win Balance gained through First Transformation ◼ Strengthening R&D capabilities through Second Transformation Design Win Amount USD/JPY=120 Design Win Balance Net Sales Achievement and Forecast FX impact (Yen Depreciat
Slide 27: Design Win and Net Sales
Design Win and Net Sales ◼ Expansion of Design Wins to lead Net Sales growth as projects go through development phase and enter production ◼ Upward deviation in FY23/3-FY24/3 due to upfront demand from Chinese telecommunication business FX impact (Yen Depreciation from USD/JPY=130) Net Sales Achieve
Slide 28: Mid-Term Targets: Aiming for Future Growth
Mid-Term Targets : Aiming for Future Growth ◼ Net Sales: Back onto growth track in FY27/3; Aiming for mid-teen% CAGR (excluding FX) ◼ Operating Margin: Aiming for mid-to-high-teen%, along with sales expansion and strengthening R&D competitiveness Mid-Term Targets (Yen in billions) FY25/3 FY26/3 Mid-
Slide 29: Operating Margin Trend and Outlook for Future
Operating Margin Trend and Outlook for Future ◼ OP margin expected to grow again in FY2027/3 and beyond, as product revenue increases OP margin trend after FY2022/3 (Calculated at USD/JPN=130) Actual FX rate FY24/3 (16.1%) Calculated at USD/JPY=130 Results (Actual FX rate) Results + Forecast (USD/JP
Slide 30: Expanding Business in Each Application Market
Expanding Business in Each Application Market Smart Devices Industrial ◼ Demand for new technologies in smart devices area ◼ Demand expanding for Solution SoC business model with continues to be strong due to expanding use of AI Advanced advanced technologies, due to expanding use of AI and RF ◼ Bus
Slide 31: Advanced SOC Developments on Computer Architecture Basis in Diverse Fields
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 complexity such as chiplets,
Slide 32: Design Wins Expanding in Each Application Market
Design Wins Expanding in Each Application Market Design win balance Smart Devices 400 Smart Devices + Industrial Industrial 200 Advanced RF 5/7nm 5/7/12nm 0 Test & Measurement Mar-23 Mar-24 Mar-25 28nm DSLR/Action Printer P, RF, Codec, Secu Ps (IS re … cific I ), U e 5/7nm n-sp se rL o Network camer
Slide 33: Growing Demand for Custom (Bespoke) SoCs
Growing Demand for Custom (Bespoke) SoCs Background of increasing demand for custom SoCs and Socionext’s SAM Solution SoC model ⚫ Emergence of new services and applications New services and applications emerge through evolution of technologies; Demand expands for optimized SoCs for such services and
Slide 34: Market Trend / Background of FY2026/3 Forecast / Outlook for FY2027/3 & Beyond
Market Trend / Background of FY2026/3 Forecast / Outlook for FY2027/3 & Beyond Market Trend & Design Win Status FY2026/3 Forecast FY2027/3 & beyond Outlook Automotive − Innovation continues for AD/ADAS technologies and services − AI is accelerating the innovation, expanding use of advanced SoCs in a
Slide 35: Aggressive Advance Investment
Aggressive Advance Investment Emergence of new services and applications utilizing AI / Evolution of SoC ecosystem across wide range → Innovative companies are looking for SoC partner with “Entire Design” capability → Need for advance investment for “Entire Design” and “Complete Service” < Market Tr
Slide 36: Strengthening Entire Design Capability / Fundamental Reform of Global Structure
Strengthening “Entire Design” Capability / Fundamental Reform of Global Structure April 2025~: Further expansion as “Global Leading Group” Fundamental reform of global organizational structure Establish global co-lead structure COO H.Yoshida (Japan) / CTO&EVP R.Cheema (US) - Make organization truly
Slide 37: New Executive Structure
New Executive Structure Announced February 2025 April 2025~: Started new executive structure for sustainable growth M. Koezuka, CEO H. Yoshida, COO Y. Yoneyama, EVP&CFO Global Leading Group (GLG) Development Group (DG) Business Group (BG) / Sales Group (SG) Production Management Group Corporate H. Y
Slide 38: Appendix: Overview
Appendix: Overview ─ Consolidated Financial Statements ─ Breakdown of Net Sales (Quarterly) ─ Detail of Design Win
Slide 39: FY25/3 Consolidated Statements of Income
FY25/3 Consolidated Statements of Income (Yen in billions) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3E Net Sales 99.7 117.0 192.8 221.2 188.5 175.0 % YoY -3.7% +17.3% +64.7% +14.8% -14.8% -7.2% Product Revenue 73.1 84.6 156.8 182.9 146.6 - NRE Revenue 23.0 28.1 34.9 37.6 41.0 - Other Revenue 3.6 4.3
Slide 40: Consolidated Balance Sheets
Consolidated Balance Sheets (Yen in billion) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 Assets Liabilities and Equity Cash on-hand and in banks 42.7 46.3 45.1 69.7 72.8 Accounts Payable-trade 12.0 16.6 23.4 15.8 11.9 Accounts receivable-trade, net 28.6 25.1 40.8 35.3 31.6
Slide 41: 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 Others Others 100% 100% 2% 4% 5% 6% 3% 3% 5% 11% 13% 11% 10% 8% 5% 6% 6% 7% 5% 5% 8% 10% 7% 13% 7% 8% 8% 6% 13
Slide 42: Breakdown by Geographic Region (Quarterly)
Breakdown by Geographic Region (Quarterly) Net Sales1 NRE Revenue1 US China Japan Others US China Japan Others 100% 100% 3% 4% 7% 5% 7% 8% 6% 7% 8% 9% 7% 8% 9% 8% 7% 10% 6% 8% 11% 6% 12% 11% 12% 11% 12% 11% 12% 12% 9% 12% 20% 22% 23% 14% 31% 80% 80% 17% 34% 30% 22% 26% 17% 24% 23% 43% 40% 37% 39% 38
Slide 43: Breakdown by Process Node (Quarterly)
Breakdown by Process Node (Quarterly) Net Sales1 NRE Revenue1 3-7nm 10-16nm 20-28nm 40nm & above / Others 3-7nm 10-16nm 20-28nm 40nm & above / Others 100% 100% 1% 4% 3% 8% 11% 10% 11% 6% 8% 10% 15% 15% 4% 6% 10% 23% 23% 21% 21% 22% 23% 23% 7% 20% 21% 3% 27% 24% 31% 7% 31% 27% 10% 8% 35% 33% 7% 80% 4
Slide 44: Design Win Amount to Revenue / Illustrative Description of Design Win Balance
“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 active as of a particular date. De
Slide 45: Timeline from Design Win to Mass Production
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 amounts. “Design Win Amounts” ar
Slide 46: Transformation into Global Custom SoC Company in Advanced Technology Areas
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 Model Primary Applications Tec
Slide 47: Features of Solution SoC Business Model
Features of Solution SoC Business Model ◼ The primary difference between “traditional ASIC2” and “Solution SoC1“ is how to interface with customers ◼ The primary difference between “Solution SoC” and “ASIC designed by ASSP vendors2“ is the breadth of optional customization 2 Custom SoC (ASIC) ASSP T
Slide 48: Socionext: The Solution SoC Company
socionext’ The Solution SoC Company