NEC : Earning Releases for FY2023/03 (257KB) (April 28, 2023)

Press Release - Media Contacts: [e-mail]

***** For immediate use April 28, 2023

Consolidated Financial Results

for the Fiscal Year Ended

March 31, 2023

June 22, 2023

Yes

Yes (for institutional investors and analysts)

June 22, 2023

Scheduled date of dividend payments

April 28, 2023 Listing: Tokyo Stock Exchange

Consolidated Financial Results for the Fiscal Year Ended March 31, 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 annual general meeting of shareholders Scheduled date of Annual Securities Report filing

Supplementary materials for financial results Financial results briefing

TEL [phone]

June 1, 2023

(Million JPY, rounded to the nearest million JPY)

1. Consolidated Financial Results for the Year ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(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 Total comprehensive to owners of the income for the year

parent

Fiscal Year ended

March 31, 2023 March 31, 2022

JPY (millions)

3,313,018

3,014,095

%

9.9

0.7

JPY (millions)

170,447

132,525

%

28.6

(13.8)

JPY (millions)

167,671

144,436

%

16.1

(8.5)

JPY (millions)

131,516

156,703

%

(16.1)

(3.2)

JPY (millions)

114,500

141,277

%

(19.0)

(5.6)

JPY (millions)

196,786

258,116

%

(23.8)

(31.4)

			Adjusted operating profit		Adjusted net profit attributable		Basic earnings		Diluted earnings		Adjusted basic
				to owners of the parent		per share		per share		earnings per share
	Fiscal Year		JPY			%		JPY			%		JPY				JPY		JPY
	ended		(millions)				(millions)
	March 31, 2023		205,516			20.2		138,551			(17.1)		424.51		424.50		513.68
	March 31, 2022		170,999			(4.1)		167,226			1.1		518.54		518.54		613.79
			Return on equity attributable to		Ratio of profit before income		Ratio of operating profit to
			owners of the parent			taxes to total assets			revenue
	Fiscal Year					%					%			%
	ended
	March 31, 2023					7.3					4.3			5.1
	March 31, 2022					10.0					3.9			4.4

(Reference) Share of profit (loss) of entities accounted for using the equity method: Year ended March 31, 2023: 3,949 million JPY

Year ended March 31, 2022: 5,384 million JPY

(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

March 31, 2023

March 31, 2022

JPY (millions) 3,984,050 3,761,733

JPY (millions) 1,912,724 1,786,642

JPY (millions) 1,623,817 1,513,503

%

40.8

40.2

JPY 6,096.59 5,555.04

(3) Consolidated Cash Flows

			Cash flows from operating		Cash flows from investing		Cash flows from financing		Cash and cash equivalents,
			activities		activities		activities		at end of the year
	Fiscal Year		JPY (millions)		JPY (millions)		JPY (millions)		JPY (millions)
	ended
	March 31, 2023		152,127		(49,591)		(122,786)		419,462
	March 31, 2022		147,517		(63,377)		(189,616)		430,778

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2. Dividends

		Annual dividends					Ratio of dividends to
							Total dividends	Payout ratio	equity attributable to
	End of first	End of	End of third	Fiscal year-		(consolidated)	owners of the parent
	second	Total			(consolidated)
	quarter	quarter		end
	quarter
Fiscal Year ended	JPY	JPY	JPY		JPY	JPY	JPY (millions)	%	%
March 31, 2022	－	50.00	－		50.00	100.00	27,284	19.3	1.9
March 31, 2023	－	55.00	－		55.00	110.00	29,573	25.9	1.9
March 31, 2024	－	60.00	－		60.00	120.00		－
(forecast)

The year end dividend for the fiscal year ended March 31, 2023 is to be finalized by the board of directors held on May 2023.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(Percentage indicate year-on-year changes.)

		Revenue		Adjusted Operating profit	Adjusted net profit attributable	Adjusted basic earnings per
			to owners of the parent		share
Fiscal Year ending	JPY		%	JPY	%	JPY		%	JPY
(millions)		(millions)	(millions)
March 31, 2024	3,380,000		2.0	220,000	7.0	140,000		1.0	525.63

*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

1. 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, 2023	272,849,863 shares	March 31, 2022	272,849,863 shares
March 31, 2023	6,501,510 shares	March 31, 2022	393,971 shares
March 31, 2023	269,721,996 shares	March 31, 2022	272,449,514 shares

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(Reference) Overview of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)
(1) Non-consolidated Operating Results			(Percentage figures represent year-on-year changes.)
	Revenue		Operating profit	Ordinary profit	Net profit
Fiscal Year ended	JPY		%	JPY		%	JPY	%	JPY		%
(millions)		(millions)		(millions)	(millions)
March 31, 2023	1,775,558		6.7	39,119		505.7		71,210	150.2	102,109		24.2
March 31, 2022	1,664,434		(2.4)	6,458		(87.7)	28,461	(57.1)	82,200		(50.0)
	Basic earnings per share	Diluted earnings per share
Fiscal Year ended			JPY			JPY
March 31, 2023	378.57			－
March 31, 2022	301.71			－
(2) Non-consolidated Financial Position
	Total assets		Net assets	Equity ratio	Net assets per share
As of	JPY (millions)	JPY (millions)		%			JPY
March 31, 2023	2,431,755			1,017,113		41.8			3,818.72
March 31, 2022	2,321,679			976,260		42.0			3,583.17
(Reference) Equity	as of March 31, 2023	1,017,113 JPY (millions)	as of March 31, 2022	976,260 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, 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. 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

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