Nec Corp Unsp/Adr New (NECPY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for joining us today. I would like to cover our financial results for FY ended March 2025 and explain our forecast for FY ending March 2026. Here is our agenda. Financial results for FY ended March 2025. Page 4, Key Takeaways. In FY March 2025, revenue was 3,423 billion yen and non-GAAP OB was 311.3 billion yen. We achieved the non-GAAP OB target set out in our midterm management plan one year ahead of schedule. Excluding the impact of the deconsolidation of JAE, revenue increased 5.3% year-on-year. Non-GAAP OB increased by 98.9 billion yen, exceeding our expectations. Non-GAAP OP for FY March 2026 is expected to reach 320 billion yen, an increase of 20 billion yen from the mid-term management plan target. This plan factors in the macroeconomic uncertainties. Even given the environment, we will continue to steadily increase profits. Page 5, Summary of Financial Results. Adjusted operating profit was 287.2 billion yen, an improvement of 63.6 billion yen year-on-year. In addition to non-GAAP operating profit, we also achieved our mid-term management plan targets for non-GAAP net profit and EBITDA one year ahead of schedule. There will be no change to the dividend per share from the amount already announced. The amounts shown are based on the basis before the stock split, which took effect on April 1, 2025. Page 6, year-on-year change in adjusted and non-GAAP operating profit. Adjusted OB for FY ended March 2024 was 223.6 billion yen, and non-GAAP OB was 227.6 billion yen. Started from this, as you can see, we made significant improvements in IT services and social infrastructure, resulting in a total business-related operational improvement of 98.9%. The deconsolidation of JAE resulted in a negative impact of 15.2 billion yen. Nonetheless, non-GAAP OB-4FY end...