NEC (6701) Investor presentation summary

Review of mid-term management plan 2025

• Achieved record-high profit in FY26/3, surpassing 2025 MTP goals through integration of purpose, strategy, and culture.

• Revenue grew from ¥2,994.0B (FY21/3) to ¥3,582.7B (FY26/3), with adjusted operating profit margin rising from 6.0% to 11.1%.

• Engagement score nearly doubled to 48%, reflecting successful cultural transformation.

• Key initiatives included launching NEC BluStellar, commercializing in-house generative AI, and strengthening international IT businesses.

• Structural reforms improved profitability in base businesses and simplified group structure.

External environment and market trends

• AI innovations and security shifts are transforming the global order, creating both threats and opportunities.

• AI-driven disruption led to a 30% drop in market cap for major tech services companies between Jan and Apr 2026.

• The global AI services market is projected to exceed ¥45 trillion, with value shifting toward consulting and operations.

• Defense and security markets are expanding, with Japan's defense-related market expected to grow 2.5x.

• Digital infrastructure and cybersecurity are increasingly critical for economic security.

Strategic direction and growth drivers

• Strategy centers on "AI throughout Society" and "Comprehensive Security Technologies" as mutually reinforcing growth engines.

• NEC BluStellar, an AI-native value creation model, underpins expansion in consulting, system integration, and operations.

• Focus on end-to-end value delivery, leveraging domain knowledge and dual-use technology.

• Defense ICT, digital infrastructure, and cybersecurity are priority areas for business expansion.

• Transformation of culture and management aims to foster an AI-native organization and streamline group management.