Nec CorporationTSE: 6701

Earning Releases for FY2026/03

· Issued by Nec Corporation
Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 [IFRS]

April 28, 2026

Company name NEC Corporation Listing: Tokyo Stock Exchange Securities code 6701 URL https://www.nec.com/

Representative Takayuki Morita, President and CEO

Contact Satoko Shigeta, Senior Director of the Corporate Communications Department TEL +81-3-3798-6511

Scheduled date of annual general meeting of shareholders June 19, 2026 Scheduled date of June 1, 2026

Scheduled date of Annual Securities Report filing June 18, 2026 dividend payments

Supplementary materials for financial results Yes

Financial results briefing Yes (for institutional investors and analysts)

(Million JPY, rounded to the nearest million JPY)

  1. Consolidated Financial Results for the Year ended March 31, 2026 (April 1, 2025 - March 31, 2026)
    1. Consolidated Operating Results (Percentage indicate year-on-year changes.)

      Revenue

      Operating profit

      Profit before income taxes

      Net profit for the year

      Net profit attributable to owners of the parent

      Total comprehensive income for the year

      Fiscal Year

      ended

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      March 31, 2026

      3,582,733

      4.7

      359,913

      40.3

      398,175

      66.1

      273,324

      48.0

      270,228

      54.3

      408,410

      102.0

      March 31, 2025

      3,423,431

      (1.5)

      256,497

      36.4

      239,771

      29.6

      184,664

      12.1

      175,183

      17.2

      202,170

      (41.0)

      Adjusted operating profit

      Non-GAAP

      operating profit

      Non-GAAP net profit

      attributable to owners of the parent

      Basic earnings per share

      Diluted earnings per share

      Non-GAAP earnings per share

      Fiscal Year

      ended

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      JPY

      JPY

      March 31, 2026

      386,827

      34.7

      397,234

      27.6

      279,773

      24.0

      202.95

      202.95

      210.11

      March 31, 2025

      287,159

      28.4

      311,301

      36.8

      225,688

      26.9

      131.50

      131.49

      169.40

      Return on equity attributable to owners of the parent

      Ratio of profit before income taxes to total assets

      Ratio of operating profit to revenue

      Fiscal Year

      ended

      %

      %

      %

      March 31, 2026

      13.0

      9.1

      10.0

      March 31, 2025

      9.1

      5.6

      7.5

      (Reference) Share of profit (loss) of entities accounted for using the equity method: Year ended March 31, 2026: 3,481 million JPY

      Year ended March 31, 2025: (10,103) million JPY

      Note: NEC Corporation ("the Company") conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. Basic earnings per share, diluted earnings per share, and Non-GAAP earnings per share have been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

    2. Consolidated Financial Position

      Total assets

      Total equity

      Equity attributable to owners of the parent

      Ratio of equity attributable to owners of the parent to

      total assets

      Equity per share attributable to owners of the parent

      As of

      JPY (millions)

      JPY (millions)

      JPY (millions)

      %

      JPY

      March 31, 2026

      4,466,784

      2,281,887

      2,196,578

      49.2

      1,656.11

      March 31, 2025

      4,315,368

      2,071,511

      1,952,018

      45.2

      1,464.71

      Note: The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. Equity per share attributable to owners of the parent have been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

    3. Consolidated Cash Flows

      Cash flows from operating activities

      Cash flows from investing activities

      Cash flows from financing activities

      Cash and cash equivalents, at end of the year

      Fiscal Year ended

      JPY (millions)

      JPY (millions)

      JPY (millions)

      JPY (millions)

      March 31, 2026

      438,463

      33,686

      (417,950)

      659,034

      March 31, 2025

      344,408

      (131,164)

      (103,974)

      584,615

  2. Dividends

    Annual dividends

    Total dividends

    Payout ratio (consolidated)

    Ratio of dividends to equity attributable to owners of the parent (consolidated)

    End of first quarter

    End of second quarter

    End of third quarter

    Fiscal year-end

    Total

    Fiscal Year ended

    JPY

    JPY

    JPY

    JPY

    JPY

    JPY (millions)

    %

    %

    March 31, 2025

    -

    70.00

    -

    70.00

    140.00

    37,367

    21.3

    1.9

    March 31, 2026

    -

    16.00

    -

    22.00

    38.00

    50,592

    18.7

    2.4

    March 31, 2027 (forecast)

    -

    20.00

    -

    20.00

    40.00

    -

    Notes:

    1. The year-end dividend per share for the fiscal year ended March 31, 2026, has been revised from 16 JPY to 22 JPY. For the details, please refer to the "Notice Regarding Revision of Dividend Forecasts" released today. The year-end dividend for the fiscal year ended March 31, 2026 is to be finalized by the Board of Directors held on May 2026.

    2. The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. The dividends for the fiscal years ended March 31, 2025, are stated at the actual amounts prior to the share split.

  3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 - March 31, 2027)

    (Percentage indicate year-on-year changes.)

    Revenue

    Non-GAAP

    operating profit

    Non-GAAP net profit attributable to owners of the parent

    Non-GAAP

    earnings per share

    Fiscal Year ending March 31, 2027

    JPY

    (millions)

    3,500,000

    %

    (2.3)

    JPY

    (millions)

    420,000

    %

    5.7

    JPY

    (millions)

    285,000

    %

    1.9

    JPY

    214.88

    *Notes

    1. Significant changes in consolidation scope during the period: None Newly included : None

      Excluded : None

    2. Changes in accounting policies and changes in accounting estimates

      1. Changes in accounting policies required by IFRS : None

      2. Changes in accounting policies other than 1) : None

      3. Changes in accounting estimates : None

    3. Number of shares outstanding (common stock)

March 31, 2026

1,364,249,315 shares

March 31, 2025

1,364,249,315 shares

March 31, 2026

37,905,298 shares

March 31, 2025

31,549,847 shares

March 31, 2026

1,331,527,234 shares

March 31, 2025

1,332,240,499 shares

  1. Number of shares outstanding at the year-end (including treasury stock)

  2. Number of treasury stock at the year-end

  3. Average number of shares during the year

Note: The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. Number of shares outstanding at the year-end (including treasury stock), number of treasury stock at the year-end, and average number of shares during the year have been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

(Reference) Overview of Non-consolidated Financial Results

  1. Non-consolidated Financial Results for the Year Ended March 31, 2026 (April 1, 2025 - March 31, 2026)

    1. Non-consolidated Operating Results (Percentage figures represent year-on-year changes.)

      Revenue

      Operating profit

      Ordinary profit

      Net profit

      Fiscal Year ended

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      JPY

      (millions)

      %

      March 31, 2026

      2,094,473

      5.7

      231,374

      (7.6)

      258,587

      2.1

      250,863

      7.3

      March 31, 2025

      1,981,159

      7.8

      250,457

      127.1

      253,345

      60.0

      233,705

      5.9

      Basic earnings per share

      Fiscal Year ended

      JPY

      March 31, 2026

      188.33

      March 31, 2025

      175.39

      Note: The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. Basic earnings per share have been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

    2. Non-consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per share

As of

JPY (millions)

JPY (millions)

%

JPY

March 31, 2026

3,075,556

1,317,262

42.8

993.15

March 31, 2025

3,069,616

1,415,772

46.1

1,062.33

(Reference) Equity as of March 31, 2026 1,317,262 JPY (millions) as of March 31, 2025 1,415,772 JPY (millions)

Note: The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. Net assets per share has been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

*This consolidated financial results are exempt from audit conducted by certified public accountants or an audit firm.

*Explanation concerning the appropriate use of the financial results forecast and other special matters (Adjusted operating profit)

"Adjusted operating profit" is measured by deducting amortization of intangible assets recognized as a result of M&A and expenses for acquisition of companies (financial advisory fees and other fees) from operating profit.

(Non-GAAP profit)

"Non-GAAP operating profit" is an indicator for measuring underlying profitability. It is measured by deducting amortization of intangible assets recognized as a result of M&A, expenses for acquisition of companies (financial advisory fees and other fees), structural reform expenses, impairment losses, stock compensation and other one-time profits (losses) from operating profit. Also, "Non-GAAP net profit attributable to owners of the parent" is an indicator for measuring underlying profitability attributable to owners of the parent. It is measured by deducting adjustment items of profit before income taxes and corresponding amounts of tax and non-controlling interests from net profit attributable to owners of the parent.

(Cautionary statement with respect to forward-looking statements)

The forward-looking statements such as operating results forecast contained in this statements summary are based on the information currently available to NEC Corporation ("the Company") and certain assumptions considered reasonable. Actual operating results may differ significantly from these forecasts due to various factors. For details, please refer to "3. Cautionary Statement with Respect to Forward-Looking Statements" on page 14.

(How to obtain supplementary financial materials and information on the financial results briefing)

On April 28, 2026, the Company will hold a financial results briefing for the institutional investors and analysts. Presentation materials will be posted in advance on TDnet and the company website, and the presentation video and Q&A summary will be also posted on the company website promptly after the financial results briefing.

In addition to the above, the Company periodically holds briefings on business and operating results for the individual investors. Presentation materials and Q&A summary will be posted on the company website promptly after the briefing. For the schedule and details, please check the company website.

Table of Contents of Attachment
  1. Consolidated Financial Statements and Notes to Consolidated Financial Statements ……… 2

    1. Consolidated Statements of Financial Position 2

    2. Consolidated Statements of Profit or Loss and Comprehensive Income 4

    3. Consolidated Statements of Changes in Equity 6

    4. Consolidated Statements of Cash Flows 8

    5. Notes to Consolidated Financial Statements 10

  2. Basic View of Selected Accounting Standards 13

  3. Cautionary Statement with Respect to Forward-Looking Statements 14

  1. Consolidated Financial Statements and Notes to Consolidated Financial Statements
    1. Consolidated Statements of Financial Position

      Notes

      Assets Current Assets

      As of March 31, 2025

      JPY (millions)

      As of March 31, 2026

      Cash and cash equivalents

      584,615

      659,034

      Trade and other receivables

      878,434

      994,066

      Contract assets

      374,511

      420,278

      Inventories

      184,779

      171,181

      Other financial assets

      9,830

      28,461

      Other current assets

      181,883

      186,073

      Subtotal

      2,214,052

      2,459,093

      Assets held for sale

      10,942

      -

      Total current assets

      2,224,994

      2,459,093

      Non-current assets

      Property, plant and equipment, net

      580,165

      564,064

      Goodwill

      393,881

      450,501

      Intangible assets, net

      351,904

      368,945

      Investments accounted for using the equity method

      107,242

      48,129

      Other financial assets

      221,133

      228,929

      Deferred tax assets

      177,216

      186,670

      Other non-current assets

      258,833

      160,453

      Total non-current assets

      2,090,374

      2,007,691

      Total assets

      4,315,368

      4,466,784

      Consolidated Statements of Financial Position (Continued)

      Notes

      As of March 31, 2025

      JPY (millions)

      As of March 31, 2026

      Liabilities and equity Liabilities Current liabilities

      Trade and other payables

      492,833

      476,503

      Contract liabilities

      405,778

      463,393

      Bonds and borrowings

      233,886

      54,966

      Accruals

      249,989

      255,022

      Lease liabilities

      52,519

      51,412

      Other financial liabilities

      15,787

      6,472

      Accrued income taxes

      59,180

      107,506

      Provisions

      42,415

      58,857

      Other current liabilities

      74,500

      89,846

      Subtotal

      1,626,887

      1,563,977

      Liabilities directly associated with assets held for sale

      6,529 -

      Total current liabilities 1,633,416 1,563,977 Non-current liabilities

      Bonds and borrowings

      255,842

      272,107

      Lease liabilities

      124,112

      110,730

      Other financial liabilities

      22,168

      30,008

      Net defined benefit liabilities

      137,916

      123,162

      Provisions

      26,142

      36,609

      Other non-current liabilities

      44,261

      48,304

      Total non-current liabilities

      610,441

      620,920

      Total liabilities

      2,243,857

      2,184,897

      Equity

      Share capital

      427,831

      427,831

      Share premium

      46,704

      -

      Retained earnings

      1,023,945

      1,216,327

      Treasury shares

      (30,725)

      (57,584)

      Other components of equity

      484,263

      610,004

      Total equity attributable to

      owners of the parent

      1,952,018

      2,196,578

      Non-controlling interests

      119,493

      85,309

      Total equity

      2,071,511

      2,281,887

      Total liabilities and equity

      4,315,368

      4,466,784

    2. Consolidated Statements of Profit or Loss and Comprehensive Income

      Consolidated Statements of Profit or Loss

      JPY (millions)

      Fiscal year ended March 31

      Notes

      2025

      2026

      Revenue

      2

      3,423,431

      3,582,733

      Cost of sales

      2,362,875

      2,401,437

      Gross profit

      1,060,556

      1,181,296

      Selling, general and administrative expenses

      777,424

      805,555

      Other operating income (expenses)

      (26,635)

      (15,828)

      Operating profit

      2

      256,497

      359,913

      Finance income

      2,3

      9,956

      52,949

      Finance costs

      2

      16,579

      18,168

      Share of profit (loss) of entities accounted for using the equity method

      2,4

      (10,103)

      3,481

      Profit before income taxes

      2

      239,771

      398,175

      Income taxes

      55,107

      124,851

      Net profit

      184,664

      273,324

      Net profit attributable to

      Owners of the parent

      175,183

      270,228

      Non-controlling interests

      9,481

      3,096

      Total

      184,664

      273,324

      Earnings per share attributable to owners of the parent

      Basic earnings per share (JPY)

      5

      131.50

      202.95

      Diluted earnings per share (JPY)

      5

      131.49

      202.95

      Note: The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common shares, effective April 1, 2025. Basic earnings per share and diluted earnings per share have been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

      Consolidated Statements of Comprehensive Income

      JPY (millions)

      Fiscal year ended March 31

      Notes

      2025

      2026

      Net profit

      Other comprehensive income, net of tax

      184,664

      273,324

      Items that will not be reclassified to profit or loss

      Equity instruments designated as measured at fair value through other comprehensive income

      1,746 8,909

      Remeasurements of defined benefit plans 14,424 21,780

      Share of other comprehensive income of entities accounted for using the equity method

      5 551

      Total items that will not be reclassified to profit or loss 16,175 31,240

      Items that may be reclassified subsequently to profit or loss

      Exchange differences on translating foreign operations

      1,494

      99,009

      Cash flow hedges

      1,784

      4,918

      Share of other comprehensive income of entities accounted for using the equity method

      Total items that may be reclassified subsequently to profit or loss

      (1,947) (81)

      1,331 103,846

      Total other comprehensive income, net of tax

      17,506

      135,086

      Total comprehensive income

      202,170

      408,410

      Total comprehensive income attributable to

      Owners of the parent

      191,471

      394,979

      Non-controlling interests

      10,699

      13,431

      Total

      202,170

      408,410

    3. Consolidated Statements of Changes in Equity

      (Fiscal year ended March 31, 2025)

      JPY (millions)

      Notes

      Equity attributable to owners of the parent

      Non-controlling interests

      Total equity

      Share capital

      Share premium

      Retained earnings

      Treasury shares

      Other components of equity

      Total

      As of April 1, 2024

      427,831

      167,451

      883,453

      (31,097)

      467,975

      1,915,613

      173,910

      2,089,523

      Net profit

      -

      -

      175,183

      -

      -

      175,183

      9,481

      184,664

      Other comprehensive income

      -

      -

      -

      -

      16,288

      16,288

      1,218

      17,506

      Comprehensive

      -

      -

      -

      -

      -

      -

      -

      -

      -

      10

      533

      -

      (3,865)

      (117,425)

      175,183

      -

      -

      -

      (34,691)

      -

      -

      -

      (98)

      470

      -

      -

      -

      -

      16,288

      -

      -

      -

      -

      -

      -

      191,471

      (98)

      480

      533

      (34,691)

      (3,865)

      (117,425)

      10,699

      -

      -

      -

      (7,011)

      -

      (58,105)

      202,170

      (98)

      480

      533

      (41,702)

      (3,865)

      (175,530)

      income

      Purchase of treasury

      shares

      Disposal of treasury

      shares

      Share-based payment

      transactions

      Cash dividends

      Put option, written over

      shares held by a non-

      controlling interest

      shareholder

      Changes in interests in

      subsidiaries

      Total transactions with owners

      -

      (120,747)

      (34,691)

      372

      -

      (155,066)

      (65,116)

      (220,182)

      As of March 31, 2025

      427,831

      46,704

      1,023,945

      (30,725)

      484,263

      1,952,018

      119,493

      2,071,511

      (Fiscal year ended March 31, 2026)

      JPY (millions)

      Notes

      Equity attributable to owners of the parent

      Non-controlling interests

      Total equity

      Share capital

      Share premium

      Retained earnings

      Treasury shares

      Other components of equity

      Total

      As of April 1, 2025

      427,831

      46,704

      1,023,945

      (30,725)

      484,263

      1,952,018

      119,493

      2,071,511

      Net profit

      -

      -

      270,228

      -

      -

      270,228

      3,096

      273,324

      Other comprehensive income

      -

      -

      -

      -

      124,751

      124,751

      10,335

      135,086

      Comprehensive

      -

      -

      -

      -

      -

      -

      -

      -

      -

      -

      27

      1,212

      -

      50

      37,798

      (85,791)

      270,228

      -

      -

      -

      (40,048)

      -

      (37,798)

      -

      -

      (27,329)

      470

      -

      -

      -

      -

      -

      124,751

      -

      -

      -

      -

      -

      -

      990

      394,979

      (27,329)

      497

      1,212

      (40,048)

      50

      -

      (84,801)

      13,431

      -

      -

      -

      (1,674)

      -

      -

      (45,941)

      408,410

      (27,329)

      497

      1,212

      (41,722)

      50

      -

      (130,742)

      income

      Purchase of treasury

      shares

      Disposal of treasury

      shares

      Share-based payment

      transactions

      Cash dividends

      Put option, written over

      shares held by a non-

      controlling interest

      shareholder

      Transfer of negative

      balance of other capital

      surplus

      Changes in interests in

      subsidiaries

      Total transactions with owners

      -

      (46,704)

      (77,846)

      (26,859)

      990

      (150,419)

      (47,615)

      (198,034)

      As of March 31, 2026

      427,831

      -

      1,216,327

      (57,584)

      610,004

      2,196,578

      85,309

      2,281,887

    4. Consolidated Statements of Cash Flows

      JPY (millions)

      Fiscal year ended March 31 Notes 2025 2026

      Cash flows from operating activities

      Profit before income taxes

      239,771

      398,175

      Depreciation and amortization

      158,437

      154,502

      Impairment loss

      9,590

      7,642

      Increase (decrease) in provisions

      (13,864)

      17,834

      Finance income

      2,3

      (9,956)

      (52,949)

      Finance costs

      2

      16,579

      18,168

      Share of profit (loss) of entities accounted for using the equity method

      2,4

      10,103

      (3,481)

      (Increase) decrease in trade and other receivables

      (55,795)

      (101,432)

      (Increase) decrease in contract assets

      36,464

      (43,129)

      (Increase) decrease in inventories

      52,731

      14,729

      Increase (decrease) in trade and other payables

      (12,579)

      (8,919)

      Increase (decrease) in contract liabilities

      15,575

      44,351

      Increase or decrease in net defined benefit liabilities or net (6,916) 131,937

      defined benefit assets

      Others, net

      (48,858)

      (34,131)

      Subtotal

      391,282

      543,297

      Interest received

      5,738

      5,887

      Dividends received

      3,595

      3,212

      Interest paid

      (9,098)

      (9,713)

      Income taxes paid

      (47,109)

      (104,220)

      Net cash provided by (used in) operating activities

      344,408

      438,463

      Cash flows from investing activities

      Purchases of property, plant and equipment

      (126,410)

      (70,325)

      Proceeds from sales of property, plant and equipment

      8,701

      31,947

      Acquisitions of intangible assets

      (24,215)

      (21,231)

      Purchase of equity instruments designated as measured at (5,804) (2,021)

      fair value through other comprehensive income

      Proceeds from sales of equity instruments designated as

      measured at fair value through other comprehensive

      7,394

      16,686

      income

      Purchase of shares of newly consolidated subsidiaries

      (878)

      (11,987)

      Proceeds from sales of shares of subsidiaries

      -

      13,821

      Disbursement for sales of shares of subsidiaries

      (490)

      (789)

      Purchases of investments in associates or joint ventures

      (5,795)

      (683)

      Proceeds from sales of investments in associates or joint

      15,874

      83,003

      ventures

      Others, net

      459

      (4,735)

      Net cash provided by (used in) investing activities

      (131,164)

      33,686

      Consolidated Statements of Cash Flows (Continued)

      JPY (millions)

      Cash flows from financing activities

      Net increase (decrease) in short-term borrowings

      134,217

      (147,629)

      Proceeds from long-term borrowings

      1,962

      27,508

      Repayments of long-term borrowings

      (36,231)

      (49,903)

      Proceeds from issuance of bonds

      30,000

      30,000

      Redemption of bonds

      (25,000)

      (25,000)

      Payments of lease liabilities

      Payments for acquisition of interests in subsidiaries from

      (56,596)

      (111,003)

      (54,890)

      (129,832)

      Fiscal year ended March 31 Notes 2025 2026

      non-controlling interests

      Dividends paid

      (34,682)

      (40,043)

      Dividends paid to non-controlling interests

      (7,013)

      (1,685)

      Purchase of treasury shares

      (98)

      (27,329)

      Others, net

      470

      853

      Net cash provided by (used in) financing activities

      (103,974)

      (417,950)

      Effect of exchange rate changes on cash and cash

      equivalents

      (1,145)

      20,220

      Net increase (decrease) in cash and cash equivalents

      108,125

      74,419

      Cash and cash equivalents, at the beginning of the year

      476,490

      584,615

      Cash and cash equivalents, at the end of the year

      584,615

      659,034

    5. Notes to Consolidated Financial Statements

  1. Going Concern Assumptions

    Not applicable.

  2. Segment Information
    1. Information about revenue, profit or loss by reportable segments (Fiscal Year ended March 31, 2025)

      JPY (millions)

      Reportable Segments

      Others

      Reconciling Items (Note 2)

      Consolidated Total

      IT Services

      Social Infrastructure

      Total

      Revenue

      External customers

      2,459,820

      832,102

      3,291,922

      131,509

      -

      3,423,431

      Intersegment

      1,565

      3,449

      5,014

      7,355

      (12,369)

      -

      Total

      2,461,385

      835,551

      3,296,936

      138,864

      (12,369)

      3,423,431

      Segment profit (loss)

      251,822

      60,456

      312,278

      (2,972)

      (22,147)

      287,159

      Acquisition-related

      amortization of

      intangible assets

      (30,660)

      Expenses for M&A

      (2)

      Operating profit

      256,497

      Finance income

      9,956

      Finance costs

      (16,579)

      Share of loss of entities accounted for using the

      (10,103)

      equity method

      Profit before income

      239,771

      taxes

      (Fiscal Year ended March 31, 2026)

      JPY (millions)

      Reportable Segments

      Others

      Reconciling Items (Note 2)

      Consolidated Total

      IT Services

      Social Infrastructure

      Total

      Revenue

      External customers

      2,508,925

      935,302

      3,444,227

      138,506

      -

      3,582,733

      Intersegment

      1,959

      3,109

      5,068

      7,844

      (12,912)

      -

      Total

      2,510,884

      938,411

      3,449,295

      146,350

      (12,912)

      3,582,733

      Segment profit (loss)

      336,704

      74,318

      411,022

      (4,146)

      (20,049)

      386,827

      Acquisition-related

      amortization of

      intangible assets

      (24,435)

      Expenses for M&A

      (2,479)

      Operating profit

      359,913

      Finance income

      52,949

      Finance costs

      (18,168)

      Share of profit of entities accounted for using the

      3,481

      equity method

      Profit before income

      398,175

      taxes

      Notes:

      1. Segment profit (loss) is measured by deducting amortization of intangible assets recognized as a result of M&A and expenses for acquisition of companies (financial advisory fees and other fees) from operating profit (loss).

      2. "Reconciling Items" in segment profit (loss) includes amounts not allocated to each reportable segment that consist principally of corporate expenses of 22,501 million JPY, and 31,291 million JPY for the fiscal years ended March 31, 2025, and 2026, respectively. Corporate expenses are mainly research and development expenses for advanced technology.

    2. Information about revising segments

      From the fiscal year ended March 31, 2026, the Company has revised its reporting segments in accordance with the organizational restructuring implemented on April 1, 2025. The main change is the reclassification of NEC Networks & System Integration Corporation ("NESIC"), which was previously included in the "Social Infrastructure Business" segment, into the "IT Services Business" segment. This change was made due to the conversion of NESIC into a wholly-owned subsidiary and a group business reorganization targeting municipalities and SMEs (small and medium-sized enterprises), with the aim of strengthening the business foundation for domestic and regional businesses, as well as digital social infrastructure businesses. Segment information for the fiscal year ended March 31, 2025 is reclassified to conform to the presentation of the revised segments for the fiscal year ended March 31, 2026.

    3. Information about geographic areas Revenue from external customers

    JPY (millions)

    Fiscal year ended March 31, 2025

    Fiscal year ended March 31, 2026

    Japan

    2,716,019

    2,868,569

    North America and Latin America

    116,097

    106,199

    Europe, Middle East, and Africa

    343,111

    391,949

    China, East Asia, and Asia Pacific

    248,204

    216,016

    Total

    3,423,431

    3,582,733

  3. Finance Income

    A gain on sales of associates of 20,226 million JPY from the sale of shares of Japan Aviation Electronics Industry, Limited is included in "Finance income" in the consolidated statements of profit or loss for the fiscal year ended March 31, 2026.

  4. Share of profit (loss) of entities accounted for using the equity method

    An impairment loss of 14,335 million JPY on the investment in NEC Capital Solutions Limited is included in "Share of profit (loss) of entities accounted for using the equity method" in the consolidated statements of profit or loss for the fiscal year ended March 31, 2025.

  5. Earnings Per Share

    The calculation of basic earnings per share ("EPS") and diluted EPS has been based on the following profit attributable to ordinary shareholders of the parent company for the fiscal years ended March 31, 2025, and 2026:

    JPY (millions)

    2025

    2026

    Net profit attributable to owners of the parent

    175,183

    270,228

    Net profit attributable to ordinary shareholders of the parent to calculate basic EPS

    175,183

    270,228

    Net profit attributable to ordinary shareholders of the

    parent after adjustment for the effects of dilutive

    175,183

    270,228

    potential ordinary shares

    Weighted-average number of ordinary shares to calculate basic EPS (in thousands of shares)

    1,332,240

    1,331,527

    Weighted-average number of ordinary shares (diluted) (in thousands of shares)

    1,332,240

    1,331,527

    Basic EPS (JPY)

    131.50

    202.95

    Diluted EPS (JPY)

    131.49

    202.95

    Notes:

    1. Net profit attributable to ordinary shareholders of the parent after adjustment for the effects of dilutive potential ordinary shares includes the effect of share options issued by associates accounted for using the equity method.

    2. The Company conducted a share split at a ratio of five (5) shares for one (1) share of its common share, effective April 1, 2025. Basic EPS and diluted EPS have been calculated assuming that the share split had occurred at the beginning of the previous fiscal year.

  6. Subsequent Events

There are no significant subsequent events.

  1. Basic View of Selected Accounting Standards

    The NEC Group has applied International Financial Reporting Standards (IFRS) since the fiscal year ended March 31, 2017 in order to enhance the international comparability of its financial information in capital markets.

  2. Cautionary Statement with Respect to Forward-Looking Statements

    This material contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the NEC Group (the "forward-looking statements"). The forward-looking statements are made based on information currently available to the Company and certain assumptions considered reasonable as of the date of this material. These determinations and assumptions are inherently subjective and uncertain. These forward-looking statements are not guarantees of future performance, and actual operating results may differ substantially due to a number of factors.

    The factors that may influence the operating results include, but are not limited to, the following:

    • occurrence of quality and safety problems concerning products and services;

    • risks related to cybersecurity;

    • difficulty attracting, hiring and retaining skilled personnel;

    • failure to appropriately respond to human rights issues in the value chain, including employees;

    • occurrence of serious misconduct such as bribery, fraudulent accounting, and violations of personal data protection laws and regulations;

    • impact of climate change, natural disasters, and environmental issues;

    • adverse changes in foreign currency exchange rates or interest rates, and other economic conditions;

    • difficulty achieving acquisitions and business alliances;

    • political and social environment in countries and regions in which the NEC Group operates;

    • impact of technological innovation and risks related to Intellectual Property Rights;

    • natural disasters, pandemics and other hazard risks; and

    • occurrence of compliance issues related to violations of competition laws and export control laws.

The forward-looking statements contained in this material are based on information that the Company possesses as of the date hereof. New risks and uncertainties come up from time to time, and it is impossible for the Company to predict these events or how they may affect the NEC Group. The Company does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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