Socionext Inc. · TSE:6526
Socionext — Q1 FY2026/3 Earnings Presentation
44 slides from Socionext's earnings presentation, Jul 31, 2025
Slide 1: 1Q FY2026/3 Consolidated Financial Results
1Q FY2026/3 Consolidated Financial Results July 31, 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
1Q FY2026/3 Consolidated Financial Results ─ Consolidated Financial Results 1Q FY2026/3 ─ Consolidated Earnings Forecast FY2026/3
Slide 5: 1Q FY26/3 Consolidated Statements of Income
1Q FY26/3 Consolidated Statements of Income (Yen in billions) FY25/3 FY26/3 1Q 2Q 3Q 4Q 1Q YoY YoY% Net Sales 52.8 46.4 46.1 43.3 34.6 -18.2 -34.5% Product Revenue 42.3 37.7 35.0 31.6 25.9 -16.4 -38.8% NRE Revenue 10.3 8.4 10.8 11.4 8.5 -1.9 -18.0% Others 0.2 0.3 0.2 0.3 0.2 0 +19.3% Cost of Sales 2
Slide 6: 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 7: 1Q FY26/3 Financial Results – YoY
1Q FY26/3 Financial Results – YoY Net Sales and Operating Income YoY Operating Income YoY Analysis Operating Income （Yen in billions） （Yen in billions） Product Revenue （Yen in billions） NRE Revenue Margin 52.8 19.4% -7.2 10.3 34.6 8.5 10.3 10.3 42.3 ｰ1.3 4.2% 25.9 0.2 ｰ0.6 1.4 1.4 2 1,2 2 FY25/3 Q1
Slide 8: 1Q FY26/3 Financial Results – QoQ
1Q FY26/3 Financial Results – QoQ Net Sales and Operating Income QoQ Operating Income QoQ Analysis （Yen in billions） Operating Income （Yen in billions） （Yen in billions） Product Revenue Margin NRE Revenue 43.3 34.6 10.0% 11.4 -1.0 8.5 -2.5 4.2% 4.3 1.1 -0.5 31.6 4.3 25.9 1.4 1.4 FY25/3 4Q FY26/3 1Q
Slide 9: Consolidated Balance Sheet (As of June 30, 2025)
Consolidated Balance Sheet （As of June 30, 2025） Cash on Hand and in Banks 1 (Yen in billions) (Yen in billions) As of As of Change March 31, 2025 June 30, 2025 74.0 69.9 72.8 69.5 55.9 69.7 69.1 Total Assets 170.3 158.1 -12.2 53.0 46.3 45.1 47.5 Total Current Assets 126.3 115.7 -10.6 37.2 38.1 33.9
Slide 10: Capex / Depreciation & Amortization, Cash Flow
Capex / Depreciation & Amortization Cash Flow Capex1 / Depreciation & Amortization2 Cash Flow2 10 (Yen in billions) (Yen in billions) 9 Capex Depreciation & Amortization 40 Operating CF Investment CF Free CF 8 7 6 20 5 4 3 0 2 1 0 -20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q
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 Others Others 100% 6% 100% 7% 8% 6% 6% 4% 14% 11% 10% 8% 14% 13% 12% 6% 23% 23% 16% 8% 29% 27% 17% 13% 19% 20% 11% 16% 80% 1
Slide 12: Breakdown by Geographic Region
Breakdown by Geographic Region Net Sales NRE Revenue US China Japan Others US China Japan Others 100% 100% 3% 10% 7% 8% 8% 7% 10% 7% 8% 10% 12% 12% 11% 12% 11% 14% 19% 18% 23% 80% 80% 26% 31% 20% 29% 38% 36% 44% 45% 55% 51% 52% 60% 59% 60% 27% 63% 21% 18% 66% 71% 55% 12% 56% 25% 20% 40% 40% 39% 33%
Slide 13: 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% 8% 5% 10% 13% 14% 17% 5% 22% 23% 21% 4% 25% 26% 25% 12% 29% 12% 7% 80% 80% 45% 43% 42% 10% 18% 9% 6% 55% 64% 21% 19% 19% 30% 24% 33% 60% 22% 60% 30% 28% 4
Slide 14: Quarterly Net Sales Trend
Quarterly Net Sales Trend April 2025 presentation revised 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 Sale
Slide 15: Consolidated Earnings Forecast
Consolidated Earnings Forecast April 2025 presentation figures updated2 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 (as of April
Slide 16: Appendix: Overview
Appendix: Overview ─ Consolidated Financial Statements ─ Breakdown of Net Sales (Quarterly)
Slide 17: Consolidated Statements of Income
Consolidated Statements of Income (Yen in billions) 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 34.6 % YoY -3.7% +17.3% +64.7% +14.8% -14.8% -34.5% Product Revenue 73.1 84.6 156.8 182.9 146.6 25.9 NRE Revenue 23.0 28.1 34.9 37.6 41.0 8.5 Other Revenue 3.6 4.3
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets FY26/3 FY26/3 (Yen in billion) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 1Q 1Q Assets Liabilities and Equity Cash On-Hand and In Banks1 42.7 46.3 45.1 69.7 72.8 69.5 Accounts Payable-Trade 12.0 16.6 23.4 15.8 11.9 12.3 Accounts Receivable-Trade
Slide 19: 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% 3% 2% 3% 4% 5% 6% 5% 6% 6% 5% 5% 5% 6% 4% 8% 8% 7% 8% 7% 7% 8% 8% 11% 13% 11% 10% 13%
Slide 20: 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% 5% 3% 7% 8% 6% 7% 8% 7% 8% 8% 7% 7% 7% 6% 8% 6% 9% 9% 10% 11% 12% 9% 12% 11% 12% 11% 12% 11% 12% 12% 20% 22% 23% 14% 31% 23% 80% 80% 17% 34% 30% 17% 22% 26% 24% 23% 38% 37%
Slide 21: 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% 5% 8% 10% 6% 8% 10% 11% 11% 15% 15% 6% 10% 5% 20% 4% 23% 23% 21% 21% 22% 23% 23% 24% 26% 7% 21% 3% 4% 27% 7% 31% 27% 8% 31% 10% 33%
Slide 22: Repeated materials from FY2025/03 financial results presentation (April 28, 2025)
Following slides are repeated materials from FY2025/03 financial results presentation (April 28, 2025)
Slide 23: Strong Design Wins
Strong Design Wins April 2025 presentation (revised) ◼ Design Win Amount has more than doubled through transformation since 2018 ◼ Achieved level of 300 billion yen in FY23/3 and FY24/3 ◼ FY25/3 amount expanded to approx. 360 billion yen “Design Win Amount” (LTR) acquired in each fiscal year Approx.
Slide 24: Large-Scale Design Wins Increasing
Large-Scale Design Wins Increasing April 2025 presentation (revised) ◼ 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 Approx. 360 billion yen (300 billion yen1) 30 bn yen or more
Slide 25: Design Win Balance: Breakdown of Changes
Design Win Balance: Breakdown of Changes April 2025 presentation (revised) ◼ 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)
Slide 26: Design Win Balance: by Application Market and Region
Design Win Balance: by Application Market and Region April 2025 presentation (revised) ◼ By application market: ‐ Proportion of “Data Center & Networking” increasing, reflecting recent strong design wins ‐ Current breakdown of Design Win Balance by application market (approx.): 1/3 Automotive, 1/3 D
Slide 27: Revision of FX Rate Assumption
Revision of FX Rate Assumption April 2025 presentation 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
Slide 28: Growth Scenario to Date and Going Forward
Growth Scenario to Date and Going Forward April 2025 presentation ◼ 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
Slide 29: Design Win and Net Sales
Design Win and Net Sales April 2025 presentation ◼ 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/JP
Slide 30: Medium-Term Targets: Aiming for Future Growth
Medium-Term Targets: Aiming for Future Growth April 2025 presentation ◼ Net Sales: Back onto growth track in FY27/3; Aiming for mid-teens% CAGR (excluding FX) ◼ Operating Margin: Aiming for mid-to-high-teens%, along with sales expansion and strengthening R&D competitiveness Medium-Term Targets (Yen
Slide 31: Operating Margin Trend and Outlook for Future
Operating Margin Trend and Outlook for Future April 2025 presentation ◼ Operating margin expected to grow again in FY2027/3 and beyond, as product revenue increases Operating margin trend after FY2022/3 (Calculated at USD/JPY=130) Actual FX rate FY24/3 (16.1%) Calculated at USD/JPY=130 Results (Actu
Slide 32: Expanding Business in Each Application Market
Expanding Business in Each Application Market April 2025 presentation 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 expandin
Slide 33: Advanced SOC Developments on Computer Architecture Basis in Diverse Fields
Advanced SOC Developments on Computer Architecture Basis in Diverse Fields April 2025 presentation ◼ Common development platform established as system configurations across major applications become similar towards computer architecture-based ◼ Address PPA optimization challenges due to design compl
Slide 34: Design Wins Expanding in Each Application Market
Design Wins Expanding in Each Application Market April 2025 presentation 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-
Slide 35: Growing Demand for Custom (Bespoke) SoCs
Growing Demand for Custom (Bespoke) SoCs April 2025 presentation 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 So
Slide 36: Market Trend / Background of FY2026/3 Forecast / Outlook for FY2027/3 & Beyond
Market Trend / Background of FY2026/3 Forecast / Outlook for FY2027/3 & Beyond April 2025 presentation 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 u
Slide 37: Aggressive Advance Investment
Aggressive Advance Investment April 2025 presentation 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 “Compl
Slide 38: Strengthening Entire Design Capability / Fundamental Reform of Global Structure
Strengthening “Entire Design” Capability / Fundamental Reform of Global Structure April 2025 presentation 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) -
Slide 39: New Executive Structure
New Executive Structure April 2025 presentation 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 Managem
Slide 40: Design Win Amount to Revenue / Illustrative Description of Design Win Balance
“Design Win Amount” to Revenue / Illustrative Description of “Design Win Balance” April 2025 presentation “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
Slide 41: Timeline from Design Win to Mass Production
Timeline from Design Win to Mass Production / Illustrative Description of “Design Win Amount” April 2025 presentation “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.
Slide 42: Transformation into Global Custom SoC Company in Advanced Technology Areas
Transformation into Global Custom SoC Company in Advanced Technology Areas April 2025 presentation ◼ 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
Slide 43: Features of Solution SoC Business Model
Features of Solution SoC Business Model April 2025 presentation ◼ The primary difference between “traditional ASIC” and “Solution SoC1“ is how to interface with customers ◼ The primary difference between “Solution SoC” and “ASIC designed by ASSP vendors“ is the breadth of optional customization Cust
Slide 44: Socionext: The Solution SoC Company
socionext’ The Solution SoC Company