NEC : Earnings Releases

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***** For immediate use July 30, 2021

Consolidated Financial Results

for the Three-month Period Ended

June 30, 2021

July 30, 2021 Listing: Tokyo Stock Exchange

Consolidated Financial Results for the Three-month Period Ended June 30, 2021 [IFRS]

Company name	NEC Corporation
Securities code	6701	URL https://www.nec.com/
Representative	Takayuki Morita, President and CEO
Contact	Kazushi Okabe, General Manager of the Corporate Communications Division

Scheduled date of quarterly report	July 30, 2021	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, 2021 (April 1, 2021 - June 30, 2021)

(1) Consolidated Operating Results

(Percentage indicate year-on-year changes.)

Profit before

Net profit

Total

Revenue

Operating profit

Net profit

attributable to

comprehensive

income taxes

owners of the parent

income

Three-month

JPY

%

JPY

%

JPY

%

JPY

%

JPY

%

JPY

%

period ended

(millions)

(millions)

(millions)

(millions)

(millions)

(millions)

June 30, 2021

651,941

10.9

1,133

－

2,944

－

1,437

－

226

－

8,870

(26.9)

June 30, 2020

587,729

(10.1)

(10,274)

－

(9,616)

－

(6,380)

－

(5,002)

－

12,140

－

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

Three-month

JPY

%

JPY

%

JPY

JPY

JPY

period ended

(millions)

(millions)

June 30, 2021

10,457

－

6,484

－

0.83

0.83

23.80

June 30, 2020

(5,802)

－

(2,253)

－

(19.27)

(19.27)

(8.68)

(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)

%

June 30, 2021

3,518,882

1,553,799

1,299,942

36.9

March 31, 2021

3,668,564

1,561,826

1,308,151

35.7

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, 2021

－

40.00

－

50.00

90.00

March 31, 2022

－

March 31, 2022

50.00

－

50.00

100.00

(forecast)

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

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3. Consolidated Financial Results Forecast for the Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022) (Percentage indicate year-on-yearchanges.)

	Revenue		Operating profit		Net profit attributable to
			owners of the parent
Year ending	JPY		%	JPY		%	JPY	%
(millions)		(millions)		(millions)
March 31, 2022	3,000,000		0.2	120,000		(22.0)	67,000	(55.2)
	Adjusted operating profit	Adjusted net profit attributable	Adjusted basic earnings per
	to owners of the parent	share
Year ending	JPY		%	JPY		%		JPY
(millions)		(millions)
March 31, 2022	155,000		(13.0)	90,000		(45.6)		330.28

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

*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

Basic earnings per share

JPY 245.88

1. Number of shares outstanding (common stock)

1. Number of shares outstanding at the end of period (including treasury stock)
2. Number of treasury stock at the end of period
3. Average number of shares during the period

June 30, 2021	272,849,863 shares	March 31, 2021	272,849,863 shares
June 30, 2021	460,507 shares	March 31, 2021	356,713 shares
June 30, 2021	272,466,711 shares	June 30, 2020	259,527,577 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.

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(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 July 30, 2021, 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 ………………………………...... 5

1. Condensed Interim Consolidated Statements of Financial Position ………………………...... 5
2. Condensed Interim Consolidated Statements of Profit or Loss and
   Comprehensive Income …………………………………………………………………………..... 7
3. Condensed Interim Consolidated Statements of Changes in Equity ……………………......... 9
4. Condensed Interim Consolidated Statements of Cash Flows ……………………………......... 10
5. Notes to Condensed Interim Consolidated Financial Statements ……………………….......... 12

2. Cautionary Statement with Respect to Forward-Looking Statements ……………………….......... 14

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