NEC (6701) Innovation Day 2025 summary

Current status and transformation progress

• BluStellar, launched as a DX brand, integrates NEC's IT services and social infrastructure, supporting all operations.

• Since 2019, transformation focused on business model, technology, and talent, consolidating 10,000 DX product codes into 500 groups and building a 12,000-strong DX talent pool.

• All DX functions merged into a cross-functional structure of 30,000+ members, with BluStellar positioned as a value creation model using 500 products, 150 offerings, and 30 scenarios.

• Standardized offerings and consulting-led business updated to focus on scenario offerings and ABeam as the consulting arm.

• BluStellar achieved FY2025 mid-term plan targets a year early and is progressing toward a revised FY2025 revenue target of JPY 624 billion, aiming for JPY 1 trillion long-term and 20% operating profit.

Financial performance and guidance

• FY26/3 revenue forecast is JPY 3,420bn, with adjusted operating profit of JPY 330bn, both revised upward from previous guidance due to recent performance improvements.

• Adjusted operating profit margin is projected to rise to 9.6%, up from 8.4% in FY25/3.

• IT Services segment is expected to drive growth, with FY26/3 adjusted operating profit margin reaching 13.4%.

• EBITDA and ROIC are also forecast to improve, reflecting enhanced profitability and capital efficiency.

• BluStellar achieved FY26/3 revenue target of JPY 542.4bn one year ahead of plan; new target is JPY 624bn, with a long-term goal of JPY 1tn and 20% operating margin.

BluStellar growth strategy and market expansion

• Growth strategy centers on expanding BluStellar Scenario, leveraging AI security, and market expansion.

• Main products include AI security, cloud network, and managed services, with offerings adapted to new technologies and customer needs.

• FY2025 revenue target (excluding ABeam) is JPY 457 billion, with scenario offerings at JPY 150 billion; long-term goal is JPY 700 billion revenue and 20% OP margin.

• Scenarios span cross-industry and industry-specific needs, aiming to exceed the domestic DX market CAGR of 14%.

• Competitive advantage in AI and security, with world-leading biometric authentication and over 560 CISSP-certified employees.