Socionext Inc. · TSE:6526
Socionext — Q2 FY2026/3 Earnings Presentation
51 slides from Socionext's earnings presentation, Oct 31, 2025
Slide 1: 2Q FY2026/3 Consolidated Financial Results
2Q FY2026/3 Consolidated Financial Results October 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
2Q FY2026/3 Consolidated Financial Results ─ Consolidated Financial Results 2Q FY2026/3 ─ Consolidated Earnings Forecast FY2026/3
Slide 5: 2Q FY26/3 Consolidated Statements of Income
2Q FY26/3 Consolidated Statements of Income (Yen in billions) FY25/3 FY26/3 1Q 2Q 3Q 4Q 1Q 2Q YoY YoY% Net Sales 52.8 46.4 46.1 43.3 34.6 52.7 +6.3 +13.5% Product Revenue 42.3 37.7 35.0 31.6 25.9 44.5 +6.8 +18.1% NRE Revenue 10.3 8.4 10.8 11.4 8.5 8.0 -0.5 -5.6% Others 0.2 0.3 0.2 0.3 0.2 0.2 -0.1 -
Slide 6: 1H FY2026/3 Consolidated Statements of Income
1H FY2026/3 Consolidated Statements of Income (Yen in billions) FY2025/3 FY2026/3 1H 1H YoY YoY% Net Sales 99.2 87.2 -12.0 -12.1% Product Revenue 80.0 70.4 -9.6 -12.0% NRE Revenue 18.8 16.4 -2.3 -12.4% Others 0.5 0.4 - -10.4% 45.2 45.3 +0.1 +0.2% Cost of sales Product Cost Ratio 56.5% 64.3% +7.8pt S
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 52.751.652.8 52.7 15.4% 6.8 14.7% 11.5 7.3 14.0% 46.446.1 8.0 1
Slide 8: 2Q FY26/3 Financial Results – YoY
2Q 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 52.7 46.4 8.0 11.4% 8.4 -1.8 -0.4 44.5 4.4% -0.7 37.7 5.3 5.3 -0.1 2.3 2.3 2 1,2 2 FY25/3 2Q FY
Slide 9: 1H FY26/3 Financial Results – YoY
1H 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 99.2 15.7% 87.2 18.8 16.4 -9.2 4.3% 80.0 70.4 15.6 15.6 -1.7 -0.3 -0.6 3.8 3.8 2 1,2 2 FY25/3 1
Slide 10: 2Q FY26/3 Financial Results – QoQ
2Q 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 NRE Revenue Margin 52.7 8.0 34.6 4.2% 4.4% 2.0 -0.6 8.5 -0.6 44.5 0.1 25.9 2.3 2.3 1.4 1.4 2 1,2 2 FY26/3 1Q FY26/
Slide 11: Consolidated Balance Sheet (As of September 30, 2025)
Consolidated Balance Sheet （As of September 30, 2025） Cash on Hand and in Banks1 （Yen in billions） (Yen in billions) As of As of Change Mar. 31, 2025 Sep. 30, 2025 74.0 69.9 72.8 69.5 Total Assets 170.3 168.1 -2.2 55.9 69.7 69.1 53.0 47.5 46.3 45.1 45.7 Total Current Assets 126.3 121.3 -5.0 37.2 38.
Slide 12: Capex / Depreciation & Amortization, Cash Flow
Capex / Depreciation & Amortization Cash Flow Capex1-Depreciation & Amortization2 Cash Flow2 10 (Yen in billions) (Yen in billions) 40 9 Capex Depreciation & Amortization Operating CF Investment CF Free CF 30 8 7 20 6 10 5 0 4 3 -10 2 -20 1 0 -30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 13: 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% 7% 6% 6% 4% 14% 11% 10% 8% 14% 13% 12% 23% 23% 16% 8% 8% 29% 27% 17% 13% 19% 17% 11% 80% 16% 1
Slide 14: Breakdown by Geographic Region
Breakdown by Geographic Region Net Sales NRE Revenue US China Japan Others US China Japan Others 100% 100% 7% 8% 8% 6% 7% 8% 6% 12% 12% 10% 11% 12% 11% 10% 10% 14% 19% 18% 80% 80% 26% 27% 31% 20% 29% 38% 42% 36% 44% 45% 51% 52% 60% 59% 60% 63% 18% 18% 66% 55% 21% 12% 71% 56% 25% 20% 40% 40% 39% 38%
Slide 15: 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% 4% 10% 8% 14% 13% 7% 20% 17% 22% 23% 21% 25% 25% 12% 6% 29% 12% 7% 80% 80% 45% 43% 42% 10% 18% 9% 6% 55% 19% 64% 21% 19% 19% 30% 60% 22% 60% 33% 30% 14% 2
Slide 16: Consolidated Earnings Forecast
Consolidated Earnings Forecast (Yen in billions) FY2025/3 FY2026/3 FY2026/3 Change from Full Year Forecast Full Year Forecast previous forecast Full Year Results as of April 2025 as of October 2025 Net Sales 188.5 175.0 190.0 +15.0 +8.6% Operating Income 25.0 14.0 10.0 -4.0 -28.6% Margin 13.3% 8.0%
Slide 17: Net Sales and Operating Income FY2026/3 Full-Year Forecast
Net Sales and Operating Income FY2026/3 Full-Year Forecast (vs. April 2025 Forecast) ◼ Net Sales Revised to 190.0 billion yen (+15.0 billion), considering strong demand for new product entering mass production ◼ Operating Income Revised to 10.0 billion yen (- 4.0 billion), factors include: (1) lower
Slide 18: Design Wins and Net Sales
Design Wins and Net Sales From April 2025 presentation Content added ◼ 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 depr
Slide 19: Quarterly Net Sales Trends
Quarterly Net Sales Trends From April 2025 presentation Content added FY25/3 Sales (actual) 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 Sales (forecast at USD/JPY=130) FY26/3 Ave
Slide 20: Product Cost Ratio and R&D Ratio Trends and Future Outlook
Product Cost Ratio and R&D Ratio Trends and Future Outlook Product Cost Raito Outlook R&D Ratio Outlook ◼ FY26/3: cost ratio expected to be higher than level of FY23/3 ◼ FY26/3: expected to be the same level as FY25/3 due to aggressive investment • Change in product mix due to start of mass producti
Slide 21: Operating Margin Trends and Future Outlook
Operating Margin Trends and Future Outlook From April 2025 presentation Content added ◼ Operating margin expected to grow again in FY27/3 and beyond, as product revenue increases Operating margin trends after FY22/3 (Calculated at USD/JPN=130) FY24/3 (16.1%) Actual FX rate Calculated at USD/JPY=130
Slide 22: Market Trend, Background of FY26/3 Forecast, Outlook for FY27/3 & Beyond
Market Trend, Background of FY26/3 Forecast, Outlook for FY27/3 & Beyond Market Trend & Design Win Status FY26/3 Forecast (updated as of October 2025) FY27/3 & beyond Outlook Operating Income expected to decrease while Net Sales No change of outlook from April forecast trend Automotive expected to i
Slide 23: Growth Strategy
Growth Strategy ─ Growth Scenario to Date and Going Forward ─ Semiconductor Market Trends / Socionext’s Initiatives (Summary) ─ Semiconductor Market Trends / Background of the Growing Demand for Custom SoCs and Solution SoC Business Model ─ Aggressive Advance Investment ─ Recent Activities in Leadin
Slide 24: Growth Scenario to Date and Going Forward
Growth Scenario to Date and Going Forward From 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 Fore
Slide 25: Semiconductor Market Trends
Semiconductor Market Trends Socionext’s Initiatives (summary) Background of the Growing Demand for Custom SoCs and Solution SoC Model • Emergence of new services and applications • Evolution of SoC ecosystem • Into era of 3D/5.5D and chiplets • Design becoming more complex = “Entire Design” • Bespok
Slide 26: Semiconductor Market Trends
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 alongside advancements in SoC te
Slide 27: Aggressive Advance Investment
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 “Entire Design” and “Complete Service” < Marke
Slide 28: Recent Activities in Leading-Edge Technologies
Recent Activities in Leading-Edge Technologies Publicly announced development activities with ecosystem partners for leading-edge technologies including 3D/5.5D, Chiplet, etc. ◼ Socionext Expands 3DIC Support with Advanced 3D Die Stacking and 5.5D in Packaging Portfolio (August 28, 2025) ◼ Socionext
Slide 29: Socionext's Initiatives for the Chiplet Era
Socionext’s Initiatives for the Chiplet Era ◼ The demand for Chiplet Solution is increasing to address: − Reticle size limitation, Yield optimization, Risk mitigation for new IPs (in large monolithic SoC) and Flexibility of integration (for adaptable system integration) ◼ Chiplet design require expe
Slide 30: Expanding Business in Each Application Market
Expanding Business in Each Application Market Smart Devices Industrial / Physical AI 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 The emerging field of Physical AI, which encom
Slide 31: Track Record: Design Wins Expanding in Each Application Market 1
Track Record : Design Wins Expanding in Each Application Market 1 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 r
Slide 32: Track Record: Design Wins Expanding in Each Application Market 2
Track Record : Design Wins Expanding in Each Application Market 2 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 o
Slide 33: Strengthening Entire Design Capability / Fundamental Reform of Global Structure
Strengthening “Entire Design” Capability / Fundamental Reform of Global Structure From April 2025 presentation Revised 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.C
Slide 34: Medium-Term Targets: Aiming for Future Growth
Medium-Term Targets : Aiming for Future Growth From April 2025 presentation Content added ◼ 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 Medium-
Slide 35: Appendix: Overview
Appendix: Overview ─ Consolidated Financial Statements ─ Breakdown of Net Sales (Quarterly)
Slide 36: Consolidated Statements of Income
Consolidated Statements of Income (Yen in billions) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 1H Net Sales 99.7 117.0 192.8 221.2 188.5 87.2 % YoY -3.7% +17.3% +64.7% +14.8% -14.8% -12.1% Product Revenue 73.1 84.6 156.8 182.9 146.6 70.4 NRE Revenue 23.0 28.1 34.9 37.6 41.0 16.4 Other Revenue 3.6 4.3
Slide 37: 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 1H 1H Assets Liabilities and Equity Cash on-hand and in banks1 42.7 46.3 45.1 69.7 72.8 45.7 Accounts Payable-trade 12.0 16.6 23.4 15.8 11.9 17.6 Accounts receivable-trade
Slide 38: 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% 6% 5% 5% 5% 6% 4% 4% 8% 8% 7% 8% 7% 7% 8% 8% 11% 13% 11% 10
Slide 39: Breakdown by Geographic Region (Quarterly)
Breakdown by Geographic Region (Quarterly) Net Sales1 NRE Revenue1 US China Japan Others US China Japan Others 100% 100% 5% 3% 4% 5% 3% 7% 8% 6% 7% 8% 7% 8% 8% 7% 7% 7% 6% 8% 6% 9% 9% 10% 11% 12% 9% 10% 12% 11% 12% 11% 12% 11% 12% 12% 20% 22% 23% 14% 31% 23% 80% 80% 17% 34% 30% 17% 34% 22% 26% 24% 2
Slide 40: 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% 3% 8% 10% 6% 8% 10% 11% 11% 16% 15% 15% 6% 10% 5% 8% 20% 4% 23% 23% 21% 21% 22% 23% 23% 24% 26% 7% 21% 3% 4% 27% 7% 31% 27% 8% 3
Slide 41: Repeated materials from FY25/3 financial results presentation (April 2025)
Following slides are repeated materials from FY25/3 financial results presentation (April 2025)
Slide 42: Strong Design Wins
Strong Design Wins From 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 Appr
Slide 43: Large-Scale Design Wins Increasing
Large-Scale Design Wins Increasing From 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 mo
Slide 44: Design Win Balance: Breakdown of Changes
Design Win Balance: Breakdown of Changes From 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 billion
Slide 45: Design Win Balance: by Application Market and Region
Design Win Balance: by Application Market and Region From 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/
Slide 46: New Executive Structure
New Executive Structure From 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 Ma
Slide 47: Design Win Amount to Revenue / Illustrative Description of Design Win Balance
“Design Win Amount” to Revenue / Illustrative Description of “Design Win Balance” From 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 activ
Slide 48: Timeline from Design Win to Mass Production
Timeline from Design Win to Mass Production / Illustrative Description of “Design Win Amount” From 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 amo
Slide 49: Transformation into Global Custom SoC Company in Advanced Technology Areas
Transformation into Global Custom SoC Company in Advanced Technology Areas From 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 M
Slide 50: Features of Solution SoC Business Model
Features of Solution SoC Business Model From April 2025 presentation ◼ 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 51: Socionext: The Solution SoC Company
socionext’ The Solution SoC Company