NEC : Earning Releases for FY2022/03

Press Release - Media Contacts:[e-mail]***** For immediate use April 28, 2022

Consolidated Financial Results

for the Fiscal Year Ended

March 31, 2022

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [IFRS]

April 28, 2022

Company name NEC Corporation

Securities code 6701 URLhttps://www.nec.com/ Representative Takayuki Morita, President and CEOContact

Kazushi Okabe, Senior Director of the Corporate Communications DepartmentScheduled date of annual general meeting of shareholdersJune 22, 2022

Scheduled date of Annual Securities June 22, 2022 Report filing

Supplementary materials for

financial results Financial results briefingScheduled date of dividend paymentsYes

Yes (for institutional investors and analysts)

Listing: Tokyo Stock ExchangeTEL [phone]

June 1, 2022

(Million JPY, rounded to the nearest million JPY)

1. Consolidated Financial Results for the Year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Consolidated Operating Results

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 March 31, 2022 March 31, 2021

JPY (millions) 3,014,095 2,994,023

% 0.7 (3.3)

JPY (millions) 132,525 153,759

% (13.8) 20.5

JPY (millions) 144,436 157,831

% (8.5) 27.3

JPY (millions) 156,703 161,866

% (3.2) 43.6

JPY (millions) 141,277 149,606

% (5.6) 49.7

JPY (millions) 258,116 375,993

% (31.4) 372.5

Adjusted operating profit	Adjusted net profit attributable to owners of the parent	Basic earnings per share	Diluted earnings per share	Adjusted basic earnings per share
Fiscal Year ended March 31, 2022 March 31, 2021	JPY (millions) 170,999 178,236	% (4.1) 22.2	JPY (millions) 167,226 165,378	% 1.1 48.7	JPY 518.54 557.18	JPY 518.54 557.18	JPY 613.79 615.92

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, 2022 March 31, 2021	% 10.0 13.5	% 3.9 4.6	% 4.4 5.1

(Reference) Share of profit (loss) of entities accounted for using the equity method: Year ended March 31, 2022: 5,384 million JPY

Year ended March 31, 2021: 4,994 million JPY

(2) Consolidated Financial Position

(Percentage indicate year-on-year changes.)

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 March 31, 2022 March 31, 2021	JPY (millions) 3,761,733 3,668,564	JPY (millions) 1,786,642 1,561,826	JPY (millions) 1,513,503 1,308,151	% 40.2 35.7	JPY 5,555.04 4,800.67

to

(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 March 31, 2022 March 31, 2021	JPY (millions) 147,517 274,907	JPY (millions) (63,377) (122,491)	JPY (millions) (189,616) 1,394	JPY (millions) 430,778 523,345

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 March 31, 2021 March 31, 2022	JPY － －	JPY 40.00 50.00	JPY － －	JPY 50.00 50.00	JPY 90.00 100.00	JPY (millions) 24,556 27,284	% 16.2 19.3	% 2.2 1.9
March 31, 2023 (forecast)	－	55.00	－	55.00	110.00	－

to to parent

The year end dividend for the fiscal year ended March 31, 2022 is to be finalized by the board of directors held on May 2022.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Percentage indicate year-on-year changes.)

Revenue	Adjusted Operating profit	Adjusted net profit attributable to owners of the parent	Adjusted basic earnings per share
Fiscal 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 422.09

*Notes

• (1) Changes in significant subsidiaries during the period

  (Changes in specified subsidiaries resulting in the change in consolidation scope): Yes

  Newly included None

  Excluded NEC Energy Solutions, Inc.

• (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 year-end (including treasury stock)

  • 2) Number of treasury stock at the year-end

  • 3) Average number of shares during the year

March 31, 2022	272,849,863 shares	March 31, 2021	272,849,863 shares
March 31, 2022	393,971 shares	March 31, 2021	356,713 shares
March 31, 2022	272,449,514 shares	March 31, 2021	268,503,921 shares

(Reference) Overview of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated Operating Results

(Percentage figures represent year-on-year changes.)

Revenue	Operating profit	Ordinary profit	Net profit
Fiscal Year ended March 31, 2022 March 31, 2021	JPY (millions) 1,664,434 1,705,459	% (2.4) (4.7)	JPY (millions) 6,458 52,403	% (87.7) (7.8)	JPY (millions) 28,461 66,267	% (57.1) 2.7	JPY (millions) 82,200 164,404	% (50.0) 323.3

Basic earnings per share	Diluted earnings per share
Fiscal Year ended March 31, 2022 March 31, 2021	JPY 301.71 612.27	JPY － －

(2) Non-consolidated Financial Position

Total assets	Net assets	Equity ratio	Net assets per share
As of March 31, 2022 March 31, 2021	JPY (millions) 2,321,679 2,396,088	JPY (millions) 976,260 928,862	% 42.0 38.8	JPY 3,583.17 3,408.74

(Reference) Equity

as of March 31, 2022

976,260 JPY (millions)as of March 31, 2021

928,862 JPY (millions)

*This consolidated financial results falls outside the scope of audit 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 "3. Cautionary Statement with Respect to Forward-Looking Statements" on page 16.

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

On April 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.

Table of Contents of Attachment

1. Consolidated Financial Statements and Notes to Consolidated Financial Statements

……… 5

(1) Consolidated Statements of Financial Position ……………………………………………… 5

(2) Consolidated Statements of Profit or Loss and Comprehensive Income ………………… 7

(3) Consolidated Statements of Changes in Equity ……………………………………………… 9

(4) Consolidated Statements of Cash Flows …………………………………………………… 11

(5) Notes to Consolidated Financial Statements ………………………………………………… 13

2. Basic View of Selected Accounting Standards ………………………………………………… 15

3. Cautionary Statement with Respect to Forward-Looking Statements ………………………… 16