NEC Corporation (OTCPK:NIPNF) Q3 2025 Results Conference Call January 30, 2025 1:00 AM ET
Unidentified Company Representative
Thank you very much for attending our briefing on the financial results for Q3 FY ending March 2025, which was announced today.
Here are the topics I am covering today. Firstly, financial results for Q3 FY ending March 2025. Page 4 shows the key Q3 takeaways. Nine month results show a significant improvement in domestic IT services and Aerospace & National Security Business. Revenue was ¥2312.8 billion and non-GAAP OP was ¥162.3 billion. Excluding the impact of JAE deconsolidation, revenue increased 4.5% year-on-year and non-GAAP OP increased by ¥75.9 billion surpassing our expectations. Considering such progress to date, we made an upward revision to our full year forecasts. Non-GAAP OP is revised to ¥280 billion, an increase of ¥25 billion from the previous forecast.
Page 5, summary of key figures. Page 6, results by segment. The details will follow, but please note that, both revenue and OP increase in IT services and social infrastructure. In others, both revenues and OP decline, but this was due to the deconsolidation of JAE. Factoring in all these elements, adjusted operating profit landed at ¥150.2 billion, up ¥53.2 billion year-on-year.
Page 7, year-on-year change in adjusted non-GAAP operating profit. Adjusted OP for FY ending March 2024 was ¥97 billion and non-GAAP OP was ¥99.4 billion. Starting from this point, as you can see here, there was a significant improvement in IT services and social infrastructure, which resulted in a ¥75.9 billion improvement in marginal profit. Having posted minus ¥12.9 billion for the deconsolidation of JAE, non-GAAP OP for the first nine months of FY ending March 2025 resulted in ¥162.3 billion.
Non-GAAP adjustment items totaled ¥12.1 billion, which includes ¥8.3 billion restructuring related expense incurred in Q3 and ¥3.8 billion recorded
