NEC : Earning Releases for Q3 of FY2023/03 (217KB)

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***** For immediate use January 30, 2023

Consolidated Financial Results

for the Nine-month Period Ended

December 31, 2022

January 30, 2023 Listing: Tokyo Stock Exchange

Consolidated Financial Results for the Nine-month Period Ended December 31, 2022 [IFRS]

Company name	NEC Corporation
Securities code	6701	URL https://www.nec.com/
Representative	Takayuki Morita, President and CEO
Contact	Kazushi Okabe, Senior Director of the Corporate Communications Department
Scheduled date of quarterly report	January 31, 2023	Scheduled date of dividend payments
filing
Supplementary materials for
financial results			Yes
Financial results briefing		Yes (for institutional investors and analysts)

TEL [phone]

－

(Million JPY, rounded to the nearest million JPY)

1. Consolidated Financial Results for the Nine-month Period Ended December 31, 2022 (April 1, 2022 - December 31, 2022)

	(1) Consolidated Operating Results															(Percentage indicate year-on-year changes.)
																												Net profit		Total
															Profit before								attributable to
			Revenue		Operating profit			Net profit			comprehensive
					income taxes			owners of the
																							income
																												parent
			JPY		%		JPY		%				JPY		%		JPY			%		JPY			%		JPY		%
	Nine-month period ended		(millions)			(millions)			(millions)			(millions)				(millions)				(millions)
	December 31, 2022		2,269,259		8.2		57,099		20.8		57,603		17.4		37,295			11.4		26,369			5.8		79,913		27.6
	December 31, 2021		2,096,356		2.5		47,262		(42.6)		49,085		(42.8)		33,469			(44.7)		24,933			(54.3)		62,640		(40.1)
													Adjusted net profit		Basic earnings		Diluted earnings			Adjusted basic
			Adjusted operating profit				attributable to
									per share				per share		earnings per share
											owners of the parent
					JPY			%						JPY				%				JPY						JPY					JPY
	Nine-month period ended		(millions)						(millions)
	December 31, 2022		83,425			9.8			44,275		0.0		97.42				97.41				163.57
	December 31, 2021		75,951			(21.7)			44,257		(30.5)		91.51				91.51				162.44

(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

As of

December 31, 2022

March 31, 2022

JPY (millions) 3,889,196 3,761,733

JPY (millions) 1,798,867 1,786,642

JPY (millions) 1,518,462 1,513,503

%

39.0

40.2

2. Dividends

			Annual dividends
	End of first quarter	End of second quarter	End of third quarter	Fiscal year-end	Total
Years ended	JPY	JPY	JPY	JPY	JPY
March 31, 2022	－	50.00	－	50.00	100.00
March 31, 2023	－	55.00	－
March 31, 2023				55.00	110.00
(forecast)

*Note-Revision in the dividends forecast from latest announcement: None

3. Consolidated Financial Results Forecast for the Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023) (Percentage indicate year-on-yearchanges.)

Revenue

Adjusted operating profit

Adjusted net profit

attributable to owners of the

parent

Adjusted basic earnings per

share

Year ending March 31, 2023

JPY (millions)

3,130,000

%

3.8

JPY (millions)

185,000

%

8.2

JPY (millions)

115,000

%

(31.2)

JPY

426.51

*Note-Revision in the consolidated financial results forecast from latest announcement: None

The effect of the repurchase of shares of its own common stock which was approved at the Board of Directors meeting held on August 29, 2022 is included in the calculation of "Adjusted basic earnings per share".

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*Notes

1. Changes in significant subsidiaries during the period
   (Changes in specified subsidiaries resulting in the change in consolidation scope): 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)
1)	Number of shares outstanding at the end of	December 31, 2022	272,849,863shares March 31, 2022	272,849,863 shares
	period (including treasury stock)
2)	Number of treasury stock at the end of period December 31, 2022	6,500,122 shares March 31, 2022	393,971 shares

1. Average number of shares during the period December 31, 2022 270,672,983 shares December 31, 2021 272,447,409 shares

*This consolidated financial results falls outside the scope of quarterly review procedures to be performed by certified public accountants or an audit firm.

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

"Adjusted operating profit (loss)" is an indicator for measuring underlying profitability in order to clarify the contribution of acquired companies to the NEC Group's overall earnings. It 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). Also, "Adjusted net profit (loss) 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 operating profit (loss) and corresponding amounts of tax and non-controlling interests from net profit (loss) 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 "2. 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 January 30, 2023, the Company will hold a financial results briefing for the institutional investors and analysts. Presentation materials will be posted on the company website after the release of financial results, 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.

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Table of Contents of Attachment

1. Condensed Interim Consolidated Financial Statements and
   Notes to Condensed Interim Consolidated Financial Statements ………………………………...... 4
2. 1. Condensed Interim Consolidated Statements of Financial Position ………………………...... 4
   2. Condensed Interim Consolidated Statements of Profit or Loss and
      Comprehensive Income …………………………………………………………………………..... 6
   3. Condensed Interim Consolidated Statements of Changes in Equity ……………………......... 8
   4. Condensed Interim Consolidated Statements of Cash Flows ……………………………......... 9
   5. Notes to Condensed Interim Consolidated Financial Statements ……………………….......... 11
3. Cautionary Statement with Respect to Forward-Looking Statements ……………………….......... 14

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1. Condensed Interim Consolidated Financial Statements and Notes to Condensed Interim Consolidated Financial Statements

1. Condensed Interim Consolidated Statements of Financial Position

			JPY (millions)
	As of		As of
	March 31, 2022		December 31, 2022
Assets
Current Assets
Cash and cash equivalents	430,778	405,649
Trade and other receivables	722,334	573,495
Contract assets	285,890	426,053
Inventories	246,244	355,311
Other financial assets	17,554	16,405
Other current assets	133,890	160,974
Total current assets
1,836,690	1,937,887
Non-current assets
Property, plant and equipment, net	540,257	541,990
Goodwill	335,978	351,630
Intangible assets, net	374,703	382,288
Investments accounted for	76,470	81,334
using the equity method
Other financial assets	236,544	234,147
Deferred tax assets	153,313	153,661
Other non-current assets	207,778	206,259
Total non-current assets
1,925,043	1,951,309
Total assets
3,761,733	3,889,196

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