NEC : Earnings Releases(229KB)

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***** For immediate use July 28, 2023

Consolidated Financial Results

for the Three-month Period Ended

June 30, 2023

July 28, 2023 Listing: Tokyo Stock Exchange

Consolidated Financial Results for the Three-month Period Ended June 30, 2023 [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	July 28, 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 Three-month Period Ended June 30, 2023 (April 1, 2023 - June 30, 2023)

(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

%

Three-month period ended

(millions)

(millions)

(millions)

(millions)

(millions)

(millions)

June 30, 2023

706,542

7.1

(8,125)

－

(2,463)

－

(6,830)

－

(7,388)

－

66,423

51.6

June 30, 2022

659,669

1.2

(15,341)

－

(6,647)

－

(10,247)

－

(13,862)

－

43,818

394.0

Adjusted

Non-GAAP

Non-GAAP profit

Basic earnings

Diluted earnings

Non-GAAP

attributable to

earnings per

operating profit

operating profit

owners of the parent

per share

per share

share

JPY

%

JPY

%

JPY

%

JPY

JPY

JPY

Three-month period ended

(millions)

(millions)

(millions)

June 30, 2023

454

－

565

－

(1,336)

－

(27.74)

(27.74)

(5.02)

June 30, 2022

(6,984)

－

(13,210)

－

(12,633)

－

(50.88)

(50.89)

(46.37)

(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

June 30, 2023

March 31, 2023

JPY (millions) 4,016,079 3,984,050

JPY (millions) 1,960,643 1,912,724

JPY (millions) 1,666,750 1,623,817

%

41.5

40.8

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, 2023	－	55.00	－	55.00	110.00
March 31, 2024	－
March 31, 2024		60.00	－	60.00	120.00
(forecast)

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

3. Consolidated Financial Results Forecast for the Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024) (Percentage indicate year-on-yearchanges.)

Revenue

Adjusted

operating profit

Non-GAAP

operating profit

Non-GAAP profit

attributable to owners

of the parent

Non-GAAP

earnings per share

Year ending March 31, 2024

JPY (millions)

3,380,000

%

2.0

JPY (millions)

220,000

%

7.0

JPY (millions)

220,000

%

11.7

JPY (millions)

140,000

%

5.4

JPY

525.63

*Note-Revision in the consolidated financial results forecast from latest announcement: Yes

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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	: Yes
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	June 30, 2023	272,849,863 shares	March 31, 2023	272,849,863 shares
	period (including treasury stock)
2)	Number of treasury stock at the end of period	June 30, 2023	6,504,172 shares	March 31, 2023	6,501,510 shares
3)	Average number of shares during the period
June 30, 2023	266,347,281 shares	June 30, 2022	272,430,834 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 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).

(Non-GAAP profit (loss))

"NON-GAAP profit (loss)" 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 (loss). Also, "Non-GAAP 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 profit (loss) before income taxes 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 15.

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

On July 28, 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 ……………………….......... 15

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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, 2023		June 30, 2023
Assets
Current Assets
Cash and cash equivalents	419,462	477,665
Trade and other receivables	799,875	506,310
Contract assets	335,852	393,216
Inventories	267,576	323,301
Other financial assets	15,776	16,286
Other current assets	157,362	203,548
Subtotal
1,995,903	1,920,326
Assets held for sale	－	15,293
Total current assets
1,995,903	1,935,619
Non-current assets
Property, plant and equipment, net	563,384	593,376
Goodwill	355,572	384,942
Intangible assets, net	378,250	397,508
Investments accounted for	80,425	82,329
using the equity method
Other financial assets	207,731	214,076
Deferred tax assets	159,930	159,287
Other non-current assets	242,855	248,942
Total non-current assets
1,988,147	2,080,460
Total assets
3,984,050	4,016,079

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