NEC : Earnings Releases(217KB)

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***** For immediate use October 28, 2022

Consolidated Financial Results

for the Six-month Period Ended

September 30, 2022

30, 2022)

(1) Consolidated Operating Results

(Million JPY, rounded to the nearest million JPY)

1. Consolidated Financial Results for the Six-monthPeriod Ended September 30, 2022 (April 1, 2022 - September

Yes

Yes (for institutional investors and analysts)

October 28, 2022

Scheduled date of dividend payments December 1, 2022

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 TEL [phone]Scheduled date of quarterly report

filing

Supplementary materials for financial results Financial results briefing

October 28, 2022 Listing: Tokyo Stock Exchange

Consolidated Financial Results for the Six-monthPeriod Ended September 30, 2022 [IFRS]

(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		%
Six-month period ended	(millions)			(millions)	(millions)	(millions)		(millions)		(millions)
September 30, 2022	1,455,371		5.2		13,867		(40.2)	24,111	(6.4)	12,070	(34.8)		3,973			(70.2)	84,087		215.6
September 30, 2021	1,382,805		5.2		23,205		16.2		25,758	33.0	18,504	39.0		13,342			21.2	26,646		(19.4)
		Adjusted operating		Adjusted net profit		Basic earnings	Diluted earnings		Adjusted basic
			attributable to
		profit					per share		per share				earnings per share
					owners of the parent
		JPY			%			JPY		%			JPY						JPY				JPY
Six-month period ended	(millions)			(millions)
September 30, 2022	31,185	(26.0)			15,741		(39.6)			14.60		14.59					57.84
September 30, 2021	42,114	45.0			26,058		57.1			48.97		48.97					95.65
(2) Consolidated Financial Position
															Equity attributable to		Ratio of equity attributable to
		Total assets					Total equity				owners of the parent
							owners of the parent
																			to total assets
As of			JPY (millions)				JPY (millions)		JPY (millions)								%
September 30, 2022			3,858,015						1,843,231			1,557,770								40.4
March 31, 2022			3,761,733						1,786,642			1,513,503								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.)

						Adjusted net profit	Adjusted basic earnings per
	Revenue		Adjusted Operating profit	attributable to owners of the
		share
						parent
Year ending	JPY		%	JPY	%	JPY	%	JPY
(millions)		(millions)	(millions)
March 31, 2023	3,130,000		3.8	185,000	8.2	115,000	(31.2)	422.09

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

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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	September 30, 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 September 30, 2022 2,097,217 shares March 31, 2022	393,971 shares

1. Average number of shares during the period September 30, 2022 272,169,648 shares September 30, 2021 272,443,043 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 October 28, 2022, 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		September 30, 2022
Assets
Current Assets
Cash and cash equivalents	430,778	436,725
Trade and other receivables	722,334	557,991
Contract assets	285,890	382,021
Inventories	246,244	323,121
Other financial assets	17,554	18,991
Other current assets	133,890	161,160
Total current assets
1,836,690	1,880,009
Non-current assets
Property, plant and equipment, net	540,257	534,045
Goodwill	335,978	360,244
Intangible assets, net	374,703	393,442
Investments accounted for	76,470	82,363
using the equity method
Other financial assets	236,544	246,910
Deferred tax assets	153,313	152,036
Other non-current assets	207,778	208,966
Total non-current assets
1,925,043	1,978,006
Total assets
3,761,733	3,858,015

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