Supply Delays and Concentration of Procurement Sources for Materials and Parts
First written in FY2016. 2 of 7 entries say "Restated". Latest entry: FY2026.
Nec moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 4 of 15 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The NEC Group recognizes increases in data center electricity and water consumption resulting from the spread of AI, as well as increases in CO2 emissions from procurement partners, as short- to long-term climate-related risks.」
The scope of materials and procurement risks has expanded beyond conventional supply constraints to include electricity and water consumption at AI data centers and the environmental impact of the supply chain. - 2026-04-28RestatedFinancial Results Presentation
「Incorporating allowances of ¥100.0 billion in revenue and ¥30.0 billion in Non-GAAP operating profit in light of component risks and uncertainty in the macroeconomic environment.」
The FY2026 forecast incorporates headroom in revenue and Non-GAAP operating profit based on the assumption of component-related risks. - FY2023-Q1MaterialisedAnnual report
「Revenue from the Global business increased by ¥11.1 billion, or 9.8%, to ¥124.9 billion, reflecting growth in Digital Government and Digital Finance as well as increased sales to service providers. Adjusted operating profit deteriorated by ¥1.5 billion year on year to a profit of ¥3.4 billion, due to higher temporary expenses in Digital Government and Digital Finance, as well as a deterioration in the cost ratio resulting from higher component costs in wireless backhaul.」
The cost of materials for wireless backhaul rose sharply, resulting in a deterioration in the cost ratio and a ¥1.5 billion year-on-year deterioration in adjusted operating profit. The impact of materials price and supply risks has been reflected in financial results. - FY2022WorsenedAnnual report
「For example, global semiconductor shortages since 2020, international economic frictions including US-China trade tensions, and geopolitical risks may adversely affect the business, including by delaying the delivery of products and services due to semiconductor shortages and other factors.」
The previously identified risks of supplier concentration and supply delays were made explicit as concrete supply constraints arising from the global semiconductor shortage. - FY2022-Q3MaterialisedAnnual report
「This was due to the impact of shortages of semiconductors and other components, the recognition of strategic expenses, and other factors, as well as the improvement in other income and expenses in the previous fiscal year resulting from gains on the sale of shares in subsidiaries and gains on the sale of land.」
Shortages of semiconductors and other components were reflected in financial results as a factor behind the deterioration in operating profit, with the previously identified risks of delays in materials supply and procurement becoming a specific impact on performance. - FY2017RestatedAnnual report
「For some of these materials and other items, the number of suppliers is limited because of their complexity or specialized nature, while switching suppliers or sourced items is difficult.」
The risks associated with dependence on a limited number of suppliers, supply delays or disruptions, price increases, and suppliers' solvency continue to be disclosed. - FY2016First statedAnnual report
「For some of these materials and other items, the number of suppliers is limited because of their complexity or specialized nature, while switching suppliers or sourced items is difficult.」
The risks identified include dependence on a limited number of suppliers, supply delays or disruptions, price increases, and suppliers' liquidity.