Efficiency improvements in staff operations, expenses and IT costs, and functional optimization

「Adjusted operating profit increased by ¥16.8 billion year on year to ¥28.6 billion, mainly due to higher revenue and cost efficiencies in the telecom services field.」

「In terms of culture, we accelerated the internal transformation project "Project RISE" to transform the culture and operating foundation based on the "2025 Mid-term Management Plan." By broadly deploying and implementing "Work-Out," a method for problem-solving and organizational transformation, we addressed business challenges across the company and promoted cultural change within the organization.」

「We established the "Transformation Office" in April 2021. Under this organization, we are implementing the "Three-Legged Reform Plus One," which adds data and people to business processes and organization, systems, and IT systems.」

「Operating profit and loss improved by ¥4.5 billion year on year to a profit of ¥82.4 billion. This was due mainly to improved selling, general and administrative expenses through cost efficiencies despite lower revenue, as well as improved other income (loss) resulting from gains on the sale of land and gains on the sale of shares in subsidiaries.」

「Revenue from the System Platforms business increased by ¥42.4 billion, or 12.2%, year on year to ¥389.2 billion, due mainly to higher hardware sales, particularly business PCs. Adjusted operating profit and loss improved by ¥27.5 billion year on year to a profit of ¥32.3 billion, due to higher revenue and the effects of structural reforms, among other factors.」

「Adjusted operating profit and loss in the System Platform Business improved by ¥15.8 billion year on year, mainly due to the effects of structural reforms and higher revenue, resulting in a profit of ¥20.8 billion.」

「Although we achieved a substantial reduction in fixed costs through special career transition support measures and the reorganization of production sites, we will continue to reduce fixed costs through business reforms such as process optimization.」

「Operating profit and loss improved by ¥2.4 billion year on year to a profit of ¥16.7 billion. This was due mainly to higher revenue, despite the recognition of business structure improvement costs associated with the implementation of special career transition support measures.」

「For domestic production, we will promote greater efficiency by reorganizing and consolidating the production sites of NEC Platforms, Ltd.」

「Operating profit and loss in the System Platform Business improved by ¥7.9 billion year on year, mainly due to higher revenue and cost efficiencies, resulting in a profit of ¥15.5 billion.」

「Operating profit and loss improved by ¥4.0 billion year on year, mainly due to higher revenue and cost efficiencies, but remained a loss of ¥5.8 billion.」

「Operating profit and loss in the Telecom Carrier Business improved by ¥3.7 billion year on year, mainly due to higher revenue and cost efficiencies, but remained a loss of ¥3.3 billion. Operating profit and loss in the System Platform Business improved by ¥2.9 billion year on year, mainly due to higher revenue and cost efficiencies, but remained a loss of ¥1.7 billion.」

「We promoted greater efficiency in staff operations, expenses and IT costs and reduced expenses by approximately ¥14.0 billion year on year, broadly in line with the plan.」

「In addition, we will work to create an operating foundation that supports the NEC Group's competitiveness by accelerating projects to reform operations through greater efficiency in staff operations, expenses and IT costs, and by optimizing the development and production functions for hardware and software.」