Slides
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3Q FY2026/3 Consolidated Financial Results January 30, 2026 Socionext Inc.
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This presentation has been prepared solely for the purpose of presenting relevant information regarding Socionext Inc. (“Socionext”). This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for shares of our common stock (the “securities”) in any jurisdiction in which such offer, solicitation or invitation would be unlawful. This presentation and the information contained herein is being furnished to you solely for your information and may not be reproduced, disclosed to or redistributed to any other person, in whole or in part without our prior written consent. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof, and neither Socionext nor its advisors or representatives guarantees that the information contained in this presentation is true, accurate or complete. It should be understood that subsequent developments may affect the information contained in this presentation, which neither Socionext nor its advisors or representatives are under an obligation to update, revise or affirm. The information in this presentation is subject to change without prior notice and such information may change materially. Neither this presentation nor any of its contents may be disclosed to or used by any other person for any purpose without the prior written consent of Socionext. This presentation contains statements that constitute forward-looking statements, including estimations, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance. Any forward-looking statements in this presentation are based on the current assumptions and beliefs of Socionext in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Socionext’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward-looking information. Except as otherwise indicated, the views, statements and outlook indicated herein are those of Socionext. The information related to or prepared by companies or third parties other than Socionext is based on publicly available and other information as cited, and Socionext has not independently verified the accuracy and appropriateness of, nor makes any warranties regarding, such information. Disclaimer 2
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Cautionary Note Regarding “Design Win Amount” and “Design Win Balance” The calculation of “Design Win Amount” and “Design Win Balance” involves a considerable degree of future estimation and subjective judgment, including assumptions regarding development plans, development costs, NRE revenues, per-unit prices and estimated future product sales volumes as well as the estimated lifespan and likelihood of cancellation of particular products. Product sales volumes are estimated based on preliminary customer indications of volume as well as our own projections made using historical customer transaction data, third-party market data and other factors while restrictions on the available manufacturing capacity for our products are not fully taken into account. In connection with analyzing our net sales and determining our design win balance, we take into account whether any customer demand constitutes “special demand,” a term we use to refer to short-term customer demand resulting from stockpiling and other activities that do not reflect current underlying demand. We determine whether any given demand is special demand on a case-by-case basis at our own discretion based on our assessment of a variety of factors related to the demand in question. As a result, amounts that we identify as special demand may not be objectively accurate in light of such definition of “special demand.” We believe that it is appropriate to exclude such short-term “special demand” amounts from our design win balance because the design win balance is intended to serve as an index to evaluate and analyze our long-term revenue trends. In terms of our net sales, net sales that are attributable to “special demand” should be viewed as short-term inflated demand that may be front-loading longer-term demand, and thus such sales should be appropriately deemphasized when analyzing historical and future trends in our results of operations. While “Design Win Balance” is not impacted by the occurrence or the amount of “special demand,” it can fluctuate by reflecting changes in assumptions for forecasts of demands except for “special demand.” We may change our calculation method for “Design Win Amount” and “Design Win Balance” and have done so in the past, and thus a direct period-to-period comparison may not be meaningful beyond describing general trends over an extended period. Design win information is calculated on a management accounting basis and is formulated and used internally for management’s assessment of business performance and strategic initiative planning. Due to our relatively short operating history under our new business model and the extended period of time before a design win contributes to our product revenue, we have limited financial data that can be used to evaluate our business and future prospects, and our management believes that our operating results in recent fiscal years may not be indicative of our future performance. We present design win information for reference purposes only. You should not place undue reliance on design win information presented herein. Please refer to page 2 of this presentation regarding certain risks associated with forward-looking statements. 3
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3Q FY2026/3 Consolidated Financial Results ─ Consolidated Financial Results 3Q FY2026/3 ─ Consolidated Earnings Forecast FY2026/3
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(JPY in billions) FY2025/3 FY2026/3 YoY QoQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q YoY% QoQ% Net Sales 52.8 46.4 46.1 43.3 34.6 52.7 54.9 +8.8 +19.2% +2.3 +4.3% Product revenue 42.3 37.7 35.0 31.6 25.9 44.5 44.3 +9.3 +26.4% -0.2 -0.4% NRE revenue 10.3 8.4 10.8 11.4 8.5 8.0 10.4 -0.4 -3.7% +2.5 +30.9% Other 0.2 0.3 0.2 0.3 0.2 0.2 0.2 0 -6.1% 0 -10.6% Cost of Sales 22.9 22.2 20.6 18.8 14.4 30.9 31.1 +10.5 +50.9% +0.2 +0.8% Product cost ratio 54.3% 59.1% 58.8% 59.6% 55.6% 69.4% 70.2% +11.4pt +0.8pt Selling, General and Administrative Expenses 19.6 18.9 20.4 20.1 18.7 19.5 20.4 0 +0.1% +0.9 +4.8% R&D 15.0 13.8 15.6 15.4 14.2 14.7 15.3 -0.4 -2.4% +0.5 +3.6% SG&A (excluding R&D) 4.6 5.1 4.7 4.7 4.5 4.7 5.1 +0.4 +8.4% +0.4 +8.4% Operating Income 10.3 5.3 5.1 4.3 1.4 2.3 3.4 -1.7 -32.7% +1.1 +47.7% Margin 19.4% 11.4% 11.1% 10.0% 4.2% 4.4% 6.3% -4.8pt +1.9pt Net Income 7.6 4.0 4.9 3.1 0.5 1.6 2.7 -2.2 -44.3% +1.1 +70.6% Margin 14.3% 8.6% 10.6% 7.2% 1.3% 3.0% 5.0% -5.6pt +2.0pt FX Rate (USD/JPY) 155.9 149.4 152.4 152.6 144.6 147.5 154.2 +1.8 +6.7 3Q FY2026/3 Consolidated Statements of Income 5
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1-3Q FY2026/3 Consolidated Statements of Income (JPY in billions) FY2025/3 FY2026/3 1-3Q 1-3Q YoY YoY% Net Sales 145.3 142.1 -3.1 -2.2% Product revenue 115.0 114.7 -0.3 -0.3% NRE revenue 29.6 26.9 -2.7 -9.2% Other 0.7 0.6 -0.1 -9.1% Cost of Sales 65.8 76.4 +10.6 +16.1% Product cost ratio 57.2% 66.6% +9.4pt Selling, General and Administrative Expenses 58.8 58.6 -0.2 -0.4% R&D 44.4 44.2 -0.2 -0.4% SG&A (excluding R&D) 14.4 14.3 -0.1 -0.4% Operating Income 20.7 7.2 -13.5 -65.1% Margin 14.2% 5.1% -9.1pt Net Income 16.5 4.8 -11.7 -71.0% Margin 11.3% 3.4% -7.9pt FX Rate (USD/JPY) 152.6 148.7 -3.9 6
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19.2 21.2 20.4 23.7 31.0 35.3 43.9 46.5 52.9 48.5 40.5 40.9 42.3 37.7 35.0 31.6 25.9 44.5 44.3 6.4 6.4 7.7 7.5 8.7 7.4 11.5 7.3 8.4 6.8 11.9 10.5 10.3 8.4 10.8 11.4 8.5 8.0 10.4 27.1 28.3 29.8 31.8 39.9 42.8 56.1 53.9 61.4 55.5 52.7 51.6 52.8 46.4 46.1 43.3 34.6 52.7 54.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0.8 2.5 2.4 2.7 5.6 4.9 6.3 5.0 10.1 8.6 9.3 7.6 10.3 5.3 5.1 4.3 1.4 2.3 3.4 3.0% 8.9% 8.0% 8.7% 14.0% 11.4% 11.2% 9.2% 16.5% 15.4% 17.6% 14.7% 19.4% 11.4% 11.1% 10.0% 4.2% 4.4% 6.3% 0.0%0.0 5.0 10.0 15.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Operating Income Margin （JPY in billions）（JPY in billions） FY24/3FY22/3 2 7 FY23/3 1. The quarterly figures are highly volatile and may fluctuate significantly from quarter to quarter as they are greatly affected by the development status of individual projects. 2. Quarterly financial results of FY2022/3 are unaudited and unreviewed by external auditors. Product Revenue Special Demand NRE Revenue Other including FY25/3 FY24/3FY22/3 2 FY23/3 FY25/3FY26/3 FY26/3 Quarterly Net Sales and Operating Income Net Sales1 Operating Income1
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35.0 44.3 10.8 10.4 46.1 54.9 FY25/3 3Q FY26/3 3Q 5.1 -1.4 -0.6 0.0 +0.3 3.4 FY25/3 3Q Product Gross Profit NRE Revenue R&D, SG&A, etc. FX impact FY26/3 3Q 5.1 3.4 11.1% 6.3% FY25/3 3Q FY26/3 3Q Operating Income Margin Net Sales and Operating Income YoY Operating Income YoY Analysis Net Sales: YoY +8.8 bn yen (+19.2%) ➢ Product revenue: +9.3 bn yen (FX impact +0.5 bn yen) ➢ NRE revenue: -0.4 bn yen (FX impact +0.2 bn yen) (USD/JPY 152.4→154.2) Operating Income: YoY -1.7 bn yen (-32.7%) ➢ Product gross profit: -1.4 bn yen ➢ NRE revenue: -0.6 bn yen ➢ R&D, SG&A, etc.: 0.0 bn yen ➢ FX impact: +0.3 bn yen (USD/JPY 152.4→154.2) 8 2 Product Revenue NRE Revenue USD/JPY= 152.4 154.2 USD/JPY= 152.4 154.2 USD/JPY=152.4 USD/JPY=154.2 3Q FY2026/3 Financial Results YoY 1. R&D cost connected to NRE revenue is recorded as an expense. Accordingly, NRE does not fully contribute to an increase in operating income for a particular period. 2. FX impact is an increase or decrease from the previous year or quarter caused by change in USD/JPY exchange rate. The FX impact is excluded from the other factors shown in the operating income analysis. 1,2 22 （JPY in billions） （JPY in billions） （JPY in billions）
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44.5 44.3 8.0 10.4 52.7 54.9 FY26/3 2Q FY26/3 3Q 2.3 3.4 4.4% 6.3% FY26/3 2Q FY26/3 3Q Operating Income Margin 2.3 -0.8 +2.0 -0.6 +0.6 3.4 FY26/3 2Q Product Gross Profit NRE Revenue R&D, SG&A, etc. FX impact FY26/3 3Q Net Sales: QoQ +2.3 bn yen (+4.3%) ➢ Product revenue: -0.2 bn yen (FX impact +1.6 bn yen) ➢ NRE revenue: +2.5 bn yen (FX impact +0.5 bn yen) (USD/JPY 147.5→154.2) Operating Income: QoQ +1.1 bn yen (+47.7%) ➢ Product gross profit: -0.8 bn yen ➢ NRE revenue: +2.0 bn yen ➢ R&D, SG&A, etc.: -0.6 bn yen ➢ FX impact: +0.6 bn yen (USD/JPY 147.5→154.2) （JPY in billions） （JPY in billions） （JPY in billions） 9 1. R&D cost connected to NRE revenue is recorded as an expense. Accordingly, NRE does not fully contribute to an increase in operating income for a particular period. 2. FX impact is an increase or decrease from the previous year or quarter caused by change in USD/JPY exchange rate. The FX impact is excluded from the other factors shown in the operating income analysis. 2 USD/JPY= 147.5 154.2 USD/JPY= 147.5 154.2 USD/JPY=147.5 USD/JPY=154.2 3Q FY2026/3 Financial Results QoQ 1,2 22 Product Revenue NRE Revenue Net Sales and Operating Income QoQ Operating Income QoQ Analysis
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16.4 19.3 29.6 45.7 47.7 43.8 39.2 31.5 25.5 21.9 19.5 15.6 17.0 18.1 28.2 32.8 3.0 3.1 3.1 3.6 3.7 3.8 3.9 3.9 3.6 3.5 3.3 3.2 3.5 2.5 2.9 3.6 3/31 2022 6/30 2022 9/30 2022 12/31 2022 3/31 2023 6/30 2023 9/30 2023 12/31 2023 3/31 2024 6/30 2024 9/30 2024 12/31 2024 3/31 2025 6/30 2025 9/30 2025 12/31 2025 Inventory Customer reserved inventory Regular inventory Regular inventory turnover months Inventories2 Cash on Hand and in Banks1 10 (JPY in billions) 46.3 37.2 53.0 38.1 45.1 33.9 47.5 55.9 69.7 69.1 74.0 69.9 72.8 69.5 45.7 43.8 3/31 2022 6/30 2022 9/30 2022 12/31 2022 3/31 2023 6/30 2023 9/30 2023 12/31 2023 3/31 2024 6/30 2024 9/30 2024 12/31 2024 3/31 2025 6/30 2025 9/30 2025 12/31 2025 As of Mar. 31, 2025 As of Dec. 31, 2025 Change Total Assets 170.3 163.3 -7.0 Total Current Assets 126.3 117.6 -8.7 Cash on-hand and in banks1 72.8 43.8 -29.0 Accounts receivable-trade 31.6 32.6 +1.0 Inventories2 17.0 32.8 +15.7 Accounts receivable-other 0.9 3.0 +2.1 44.0 45.7 +1.7 Total Liabilities 33.3 34.4 +1.1 31.3 32.3 +1.0 Accounts payable-trade 11.9 15.8 +3.8 Accounts payable-other 4.6 3.5 -1.1 137.0 128.9 -8.1 80.5% 78.9% Total non-Current Assets Total Current Liabilities Total Net Assets Shareholders' Equity Ratio （JPY in billions） 1. Cash on-hand and in banks includes short term investment security. 2. Inventories are calculated as the sum of “finished goods” and “work in process.” 3. Regular inventory turnover months = Ratio of “ordinary inventories balance” and “Cost of Sales average of forecast for next 3 months” * From FY2025/3, the sum of “Customer reserved inventory” and “Regular inventory” is disclosed as “Inventories.” Consolidated Balance Sheet (As of December 31, 2025) 3 （JPY in billions）
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-30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 Operating CF Investment CF Free CF 11 FY26/3FY25/3FY24/3FY23/3FY22/3 0.0 2.0 4.0 6.0 8.0 10.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 Capex Depreciation & Amortization 1Q 2Q 3Q 4Q 1Q1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2Q 3Q 1. Capex: Payment for PP&E + Payment for intangible assets 2. Quarterly financial results of FY2022/3 are unaudited and unreviewed by external auditors. (JPY in billions)(JPY in billions) Capex, Depreciation & Amortization, Cash Flow Capex1 Depreciation & Amortization2 Cash Flow2
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Breakdown by Application Market 4% 8% 5% 21% 26% 34% 48% 38% 22%18% 28% 27% 30% 30% 18% 12% 18% 47% 28% 25% 29% 28% 30% 24% 21% 21% 21% 34% 25% 26% 11% 8% 16% 13% 11% 7%16% 14% 13% 10% 6% 8% 6% 12% 3% 0% 20% 40% 60% 80% 100% FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 Automotive Data Center & Networking Smart Devices Industrial Other 9% 11% 9% 13% 16% 14% 19% 21% 26% 14% 16% 21% 24% 16% 32% 37% 27% 30% 20% 23% 26% 22% 27% 22% 21% 26% 21% 28% 23% 21% 18% 27% 21% 17% 19% 17% 29% 27% 23% 23% 14% 11% 6% 7% 6% 0% 20% 40% 60% 80% 100% FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 Automotive Data Center & Networking Smart Devices Industrial Other YTD3Q YTD3Q 12 Net Sales NRE Revenue
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Breakdown by Geographic Region 6% 6% 11% 34% 37% 45% 48% 49% 45% 12% 19% 16% 20% 25% 21% 18% 12% 13% 71% 56% 55% 36% 31% 26% 20% 29% 23% 11% 19% 18% 10% 7% 8% 14% 10% 19% 0% 20% 40% 60% 80% 100% FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 US China Japan Other 7% 11% 14% 14% 18% 16% 15% 17% 13% 15% 14% 17% 24% 18% 33% 39% 30% 39% 66% 63% 59% 51% 52% 44% 38% 45% 40% 12% 12% 10% 11% 12% 7% 8% 8% 8% 0% 20% 40% 60% 80% 100% FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 US China Japan Other Net Sales NRE Revenue 13 YTD3Q YTD3Q
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1% 15% 40% 43% 59% 71% 74% 85% 28% 44% 34% 28% 30% 19% 9% 6% 4% 46% 33% 30% 18% 10% 12% 12% 7% 7% 25% 23% 21% 14% 17% 10% 8% 13% 4% 0% 20% 40% 60% 80% 100% FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 3-7nm 10-16nm 20-28nm 40nm & above/Other 3% 20% 13% 33% 40% 38% 51% 5% 9% 15% 9% 16% 16% 17% 18% 12% 31% 36% 37% 28% 29% 22% 21% 19% 18% 64% 55% 45% 43% 42% 29% 22% 25% 19% 0% 20% 40% 60% 80% 100% FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 3-7nm 10-16nm 20-28nm 40nm & above/Other Breakdown by Process Node Net Sales NRE Revenue YTD3Q 14 YTD3Q
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1. Actual basic earnings per share for FY2025/3 were calculated based on 178,543,635 shares and the forecast of basic earnings per share for FY2026/3 as of April 2025 was calculated based on 175,482,641 shares. The forecast of basic earnings per share for FY2026/3 as of October 2025 was calculated based on 175,558,918 shares. The changes are due to exercise of stock options and purchase of treasury stock. 2. Refer to page 2 for the handling of forecasts. (JPY in billions) FY2025/3 FY2026/3 FY2026/3 Change from previous forecastFull Year Results Full Year Forecast as of April 2025 Full Year Forecast as of October 2025 Net Sales 188.5 175.0 190.0 +15.0 +8.6% Operating Income 25.0 14.0 10.0 -4.0 -28.6% Margin 13.3% 8.0% 5.3% -2.7pt Net Income 19.6 10.5 6.7 -3.8 -36.2% Margin 10.4% 6.0% 3.5% -2.5pt Basic Earnings per Share1 109.78 yen 59.83 yen 38.16 yen Dividend per Share 50.00 yen 50.00 yen 50.00 yen FX Rate (USD/JPY) 152.6 yen 130.0 yen 138.0 yen Consolidated Earnings Forecast ➢ The FX sensitivity for the FY2026/3 forecast as of April 2025 is assumed to be approx. 1.0 billion yen for net sales, and app rox. 0.3 billion yen for operating income, for every 1-yen change against the US dollar. The impact of other currencies is assumed to be negligible. ➢ The FX sensitivity for the FY2026/3 full year forecast as of October 2025 remains unchanged from the forecast as of April 202 5. However, it fluctuates quarterly due to volatility in the volume of US dollar- denominated net sales, purchases, inventory, and the timing of R&D costs. 15 From October 2025 presentation (revised)
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16 Quarterly Net Sales Trends 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY25/3 FY26/3 Sales (calculated at USD/JPY=1301) FY26/3 Sales (forecast at USD/JPY=130) FY25/3 Quarterly Average Sales (calculated at USD/JPY=1301)Sales (actual) FY26/3 Quarterly Average Sales (forecast at USD/JPY=130) FY25/3 Average Sales (USD/JPY=1301) FY26/3 Average Sales (USD/JPY=130) Demand decrease for Chinese telecommunication and others New mass production for Automotive and others 1. FY2025/3 figures are calculated using USD/JPY=130, in order to compare figures across fiscal years. 2. Refer to page 2 for the handling of forecasts. From October 2025 presentation (revised) ◆ FY26/3 1st Half : Although the impact of decrease in demand for telecommunication equipment business in China due to ongoing customer inventory adjustment, net sales exceeded forecast due to stronger demand for new automotive product. ◆ FY26/3 2nd Half : Demand for the new Automotive product likely to exceed the forecast. ◆ Operating Income: We initially forecasted that operating income would start improving in 2H FY26/3 while full year results would fall below the level of the previous fiscal year (FY25/3). However, the improvement in line with product revenue increase will be delayed due to (1) an increase in product cost ratio (decrease in the product gross margin) and (2) an increase in advance R&D expenses. The increase in the product cost ratio is caused by change in product mix due to the start of mass production of a new product with higher cost ratio (lower gross margin), as well as indirect impact of FX. Additionally, “more-than-forecast volume” and “delay in gross margin improvement” for the product during early mass production phase with higher cost ratio contribute to the delay of recovery. Nevertheless, improvement of product cost ratio is expected, leading to recovery in operating margin over the period from the end of FY26/3 to FY27/3.
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FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3- Product Cost Ratio and R&D Ratio: Trends and Future Outlook Product Cost Ratio R&D Ratio Indirect impact of FX Indirect impact of FX Product mix change including launch of new mass production Indirect impact of FX Leverage from increase in net sales Investment in leading-edge technologies Leverage from increase in net sales (-) Investment in leading-edge technologies (+) Indirect impact of FX : Difference in FX due to timing of purchasing and selling Product Cost Ratio = Product cost / Product revenue (Not including NRE, etc.) Arrows and (+)/(-) symbols indicate impact on product cost ratio Product mix (+/-) New mass production (+/-) (Falling trend for indirect impact of FX）Cost Ratio Up (Profit decline) Cost Ratio Down (Profit improvement) R&D Ratio Up (Profit decline) R&D Ratio Down (Profit improvement) R&D Ratio = R&D cost / Net sales (Including NRE, etc.) Arrows and (+)/(-) symbols indicate impact on R&D ratio Product Cost Ratio Outlook R&D Ratio Outlook ◼ FY26/3: expected to be the same level as FY25/3 due to aggressive investment (exceeding the forecast) in leading-edge technologies, aimed at strengthening design and development capabilities to acquire more design wins in leading-edge areas ◼ FY27/3 and beyond: expected to decrease gradually with leverage from increase in net sales ◼ FY26/3: cost ratio expected to be higher than the level of FY23/3 • Change in product mix due to start of mass production of new product with higher cost ratio • “More-than-forecast volume” and “delay in gross margin improvement” for the product during early mass production phase with higher cost ratio • Indirect impact of FX ◼ FY27/3 and beyond: expected to improve, although this depends on change in product mix and production ramp-up of new products 1Q2Q 3Q 4Q1Q FY26/3 FY27/3 Planned line of initial cost reduction Cost ratio (2) Delay in product cost ratio improvement (1) Increase in 2Q/3Q volume beyond initial forecast Cost ratio (actual) Factors that increase cost ratio (conceptual diagram) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3- Product mix change incl. launch of new mass production Delays in cost improvement Leverage from increase in net sales 17 From October 2025 presentation (revised)
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FY26/3 Forecast (updated as of October 2025) Outlook for FY27/3 and beyond No change of outlook from April forecast trend ◼ Product Revenue − FY27/3: Continued growth expected in AD/ADAS SoC projects. In addition to the project that enters production in FY26/3, new mass production of multiple products expected to start, including US automotive and data center projects. − FY28/3 and beyond: Further growth also expected driven by the start of mass production for projects acquired in FY23/3-FY25/3. ◼ NRE Revenue − Gradual increase expected to continue. ◼ Operating Income − Product gross margin expected to improve although this depends on change in product mix and production ramp-up of new products. − R&D ratio expected to remain at similar level as FY26/3 or gradually decline, due to leverage from net sales increase, while aggressive advance investment continues. − SG&A ratio expected to gradually become lower due to leverage from net sales increase. − We expect to maintain the medium-term trend in operating income over the next few years as forecasted in April, despite a temporary drop in FY26/3, considering leverage from net sales increase. Market Trend & Design Win Status ◼ Aggressive investment in leading-edge technologies for further growth ◼ Accelerate “Growth-Oriented” management Market Trend, Background of FY26/3 Forecast, Outlook for FY27/3 and Beyond Operating Income expected to decrease while Net Sales expected to increase ◼ Product Revenue - After bottoming out in 1Q, product revenue returns to a growth trend in 2Q, due to the launch of new mass production for automotive, etc. - FY26/3 full year revenue will be higher than the April forecast. ◼ NRE Revenue - NRE revenue expected to remain at the same level as FY25/3 or to slightly increase. ◼ Operating Income - Operating income in FY26/3 full year expected to be lower than the April forecast due to: (1) increase in product cost ratio (decrease in the product gross margin) and (2) increase in advance R&D expenses. • Factors for the higher product cost ratio include change in product mix due to start of mass production of new product with higher cost ratio (lower gross margin) and indirect impact of FX. Additionally, “more-than-forecast volume” and “delay in gross margin improvement” for the product during early mass production phase with higher cost ratio contribute to higher product cost ratio. FX assumptions - FX rate: USD/JPY=130.0 in 2H FY26/3 (unchanged) (USD/JPY=138.0 in FY26/3 full year) - FX sensitivity is assumed to be approx. 1.0 billion yen for net sales, and approx. 0.3 billion yen for operating income, for every 1-yen change against the US dollar. - FX sensitivity for the full year FY26/3 remains unchanged from the April Forecast. However, it fluctuates quarterly due to volatility in the volume of US dollar-denominated net sales, purchases, inventory, and timing of R&D costs. Automotive - Innovation continues for AD/ADAS technologies and services - AI accelerating innovation, expanding use of advanced SoCs in automotive market - Competition becoming more intense among service-oriented companies and new-school OEMs as well as mainstream OEMs, structural changes in automotive industry ongoing - Mainstream OEMs showing signs of new moves Data Center & Networking - Significant expansion of data center processing capacity due to factors including emergence of generative AI - Business opportunities increasing for custom SoCs, as demand for differentiation grow further in CPU, xPU (AI), switches, etc. - Growing needs for larger-scale design and adoption of leading- edge technologies (2nm/14Å, 3D/5.5D, Co-Packaged Optics...) Industrial/Smart Devices (Physical AI） - Projects continuing with advanced customers; demand remaining high for value-added products - Demand expanding for the Solution SoC business model that utilizes advanced technologies, due to expanded use of AI and networks in the industrial market - Signs of adopting Physical AI Design Wins Trend: Demand for custom SoCs expanding as innovative products and services emerge, SoC design becomes more complex and the SoC ecosystem evolves - Aiming for large-scale opportunities in above business sectors to achieve Design Win Amount at the same level as the previous fiscal year 18 From October 2025 presentation (revised)
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Appendix Overview ─ Consolidated Financial Statements ─ Breakdown of Net Sales (Quarterly)
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Consolidated Statements of Income (JPY in billions) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 YTD3Q Net Sales 99.7 117.0 192.8 221.2 188.5 142.1 % YoY -3.7% +17.3% +64.7% +14.8% -14.8% -2.2% Product revenue 73.1 84.6 156.8 182.9 146.6 114.7 NRE revenue 23.0 28.1 34.9 37.6 41.0 26.9 Other revenue 3.6 4.3 1.1 0.8 0.9 0.6 Cost of Sales (43.2) (49.8) (103.9) (111.2) (84.6) (76.4) Gross Profit 56.5 67.3 88.8 110.0 103.9 65.8 % Margin 56.7% 57.5% 46.1% 49.7% 55.1% 46.3% % Product gross margin 40.9% 41.2% 33.7% 39.2% 42.3% 33.4% R&D (39.2) (43.2) (49.3) (53.3) (59.8) (44.2) Selling, General and Administrative Expenses (excl. R&D) (15.8) (15.6) (17.8) (21.2) (19.1) (14.3) Operating Income 1.6 8.5 21.7 35.5 25.0 7.2 % Margin 1.6% 7.2% 11.3% 16.1% 13.3% 5.1% Non-Operating Income (Loss) 0.4 0.6 1.8 1.6 0.1 (0.6) Ordinary Income 2.0 9.1 23.4 37.1 25.1 6.6 Extraordinary Income 0.0 0.0 0.0 0.0 1.8 0.0 Extraordinary Losses 0.0 0.0 0.0 0.0 (1.5) (0.0) Income before Income Taxes 2.0 9.1 23.4 37.1 25.4 6.6 Income Taxes (0.5) (1.6) (3.7) (11.0) (5.8) (1.9) Net Income 1.5 7.5 19.8 26.1 19.6 4.8 % Margin 1.5% 6.4% 10.3% 11.8% 10.4% 3.4% FX Rate (USD/JPY) 106.1 112.4 135.5 144.6 152.6 148.7 20
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Consolidated Balance Sheets (JPY in billions) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 3Q FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 3Q Assets Liabilities and Equity Cash on-hand and in banks1 42.7 46.3 45.1 69.7 72.8 43.8 Accounts payable-trade 12.0 16.6 23.4 15.8 11.9 15.8 Accounts receivable-trade, net 28.6 25.1 40.8 35.3 31.6 32.6 Accrued expenses 7.4 6.9 30.3 18.2 12.0 9.4 Inventories2 6.7 16.4 47.7 25.5 17.0 32.8 Other 1.9 3.9 28.6 19.1 7.3 7.1 Other 2.6 2.9 22.4 8.4 4.8 8.4 Total Current Assets 80.6 90.6 156.1 138.9 126.3 117.6 Total Current Liabilities 21.3 27.4 82.3 53.1 31.3 32.3 Property, plant and equipment 8.9 11.6 17.2 21.8 22.3 23.6 Total Non-current Liabilities 1.3 1.4 1.7 2.7 2.0 2.2 Reticle 3.7 4.7 5.6 8.1 9.7 11.0 Total Liabilities 22.6 28.8 84.1 55.8 33.3 34.4 Other PP&E 5.2 6.9 11.6 13.7 12.6 12.6 Common stock 30.2 30.2 30.2 32.7 33.0 33.0 Intangible assets 11.6 12.2 13.0 18.5 14.4 16.3 Capital surplus 30.2 30.2 30.2 32.7 33.0 33.9 Deferred tax assets 2.3 3.1 6.9 6.7 6.1 4.7 Retained earnings 21.4 28.9 48.6 63.6 74.3 70.2 Other 0.9 0.8 0.8 0.9 1.2 1.1 Treasury stock 0.0 0.0 0.0 0.0 (5.0) (10.8) Other (0.1) 0.3 0.8 2.0 1.8 2.6 Total Non-current Assets 23.7 27.8 37.9 47.9 44.0 45.7 Total Equity 81.7 89.6 109.9 131.0 137.0 128.9 Total Assets 104.2 118.4 193.9 186.8 170.3 163.3 Total Liabilities and Equity 104.2 118.4 193.9 186.8 170.3 163.3 1. Cash on-hand and in banks includes short term investment security. 2. Inventories are calculated as the sum of “finished goods” and “work in process.” 21
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Breakdown by Application Market (Quarterly) 29% 31% 22% 22% 49% 26% 29% 32% 38% 38% 52% 59% 51% 39% 21% 43% 29% 27% 12% 33% 28% 29% 31% 14% 29% 10% 23% 12% 13% 11% 12% 2% 21% 12% 36% 45% 28% 62% 28% 27% 40% 24% 26% 21% 33% 10% 33% 22% 24% 7% 26% 15% 30% 11% 16% 30% 17% 3% 8% 4% 15% 8% 14% 21% 22% 10% 19% 11% 14% 18% 20% 6% 4% 6% 11% 6% 7% 5% 5% 8% 3% 10% 7% 13% 7% 8% 2% 8% 3% 5% 31% 6% 4% 4% 3% 0% 20% 40% 60% 80% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Automotive Data Center & Networking Smart Devices Industrial Other 17% 17% 14% 14% 19% 12% 13% 13% 15% 17% 21% 22% 23% 21% 18% 20% 24% 23% 31% 14% 16% 15% 19% 24% 29% 30% 42% 45% 35% 33% 34% 28% 27% 21% 33% 19% 37% 29% 23% 27% 31% 27% 24% 24% 24% 16% 17% 25% 23% 20% 26% 26% 30% 20% 29% 19% 17% 21% 23% 20% 25% 22% 22% 22% 19% 19% 18% 17% 16% 18% 20% 18% 21% 20% 15% 19% 25% 17% 20% 15% 11% 13% 11% 10% 4% 5% 6% 8% 5% 6% 13% 6% 8% 6% 4% 0% 20% 40% 60% 80% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Automotive Data Center & Networking Smart Devices Industrial Other Net Sales1 NRE Revenue1 1. Quarterly percentage breakdowns are highly volatile and may fluctuate significantly from quarter to quarter as they are greatly affected by the development status of individual projects. 22 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3
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Breakdown by Geographic Region (Quarterly) 29% 57% 39% 22% 55% 33% 45% 45% 44% 36% 56% 51% 51% 59% 36% 52% 47% 52% 37% 37% 14% 23% 29% 10% 34% 26% 15% 23% 20% 10% 21% 13% 18% 6% 13% 27% 8% 5% 31% 17% 34% 42% 30% 22% 23% 28% 13% 22% 26% 17% 24% 14% 52% 23% 23% 30% 18% 3% 12% 4% 7% 5% 11% 6% 12% 20% 22% 8% 11% 12% 9% 6% 12% 3% 10% 40% 0% 20% 40% 60% 80% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q US China Japan Other 13% 24% 21% 15% 21% 15% 18% 10% 9% 15% 20% 16% 13% 21% 17% 17% 19% 11% 11% 20% 16% 16% 19% 24% 29% 33% 43% 46% 37% 35% 39% 34% 31% 24% 30% 19% 50% 42% 55% 49% 51% 55% 48% 48% 43% 40% 37% 39% 38% 37% 44% 40% 52% 43% 55% 34% 36% 12% 11% 12% 11% 7% 8% 6% 7% 8% 9% 7% 8% 9% 8% 7% 10% 7% 5% 11% 0% 20% 40% 60% 80% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q US China Japan Other Net Sales1 NRE Revenue1 1. Quarterly percentage breakdowns are highly volatile and may fluctuate significantly from quarter to quarter as they are greatly affected by the development status of individual projects. FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 23
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55% 36% 58% 23% 46% 45% 66% 72% 67% 57% 89% 63% 87% 78% 52% 80% 86% 81% 88% 30% 30% 24% 34% 16% 23% 24% 13% 12% 15% 4% 8% 3% 4% 11% 7% 4% 8% 2% 7% 14% 7% 12% 11% 11% 10% 15% 10% 13% 6% 21% 6% 8% 4% 10% 5% 8% 7% 8% 20% 11% 31% 27% 21% 11% 15% 1% 8% 4% 10% 33% 3% 5% 3% 3% 0% 20% 40% 60% 80% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3-7nm 10-16nm 20-28nm 40nm & above/Other 15% 10% 16% 10% 25% 24% 36% 40% 44% 34% 45% 39% 39% 37% 30% 44% 28% 59% 58% 9% 17% 17% 19% 15% 18% 20% 12% 11% 20% 18% 19% 20% 21% 20% 12% 22% 9% 9% 30% 29% 27% 30% 23% 23% 21% 21% 22% 25% 16% 20% 18% 19% 19% 20% 24% 16% 16% 46% 44% 40% 41% 37% 35% 23% 27% 23% 21% 21% 22% 23% 23% 31% 24% 26% 16% 17% 0% 20% 40% 60% 80% 100% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3-7nm 10-16nm 20-28nm 40nm & above/Other Breakdown by Process Node (Quarterly) Net Sales1 NRE Revenue1 1. Quarterly percentage breakdowns are highly volatile and may fluctuate significantly from quarter to quarter as they are greatly affected by the development status of individual projects. 24 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3
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The following slides are excerpts from the materials used in the 2Q FY2026/3 financial results presentation (October 2025)
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◼ Net Sales Revised to 190.0 billion yen (+15.0 billion), considering strong demand for new product entering mass production ◼ Operating Income Revised to 10.0 billion yen (- 4.0 billion), factors include: (1) lower product gross margin due to change in product mix, (2) increase in R&D for advance development investment 26 FY26/3 F Product Revenue NRE, etc. FX rate FY26/3 F USD/JPY=130.0 USD/JPY=138.0 as of October 2025as of April 2025 (Yen in billions) 175.0 190.0 ➢ FX rate for 2H FY2026/3 is assumed to be USD/JPY=130. (1H FY2026/3: USD/JPY=146.0) Net Sales and Operating Income FY2026/3 Full-Year Forecast (vs. April 2025 Forecast) (Yen in billions) 14.0 10.0 FY26/3 F Product Gross Profit R&D, etc. FX Rate FY26/3 F USD/JPY=130.0 USD/JPY=138.0 as of October 2025as of April 2025 1H Actual FX Rate USD/JPY = 146.0 Key factors of change in product gross profit Positive: Increase in product revenue Negative: Decrease in product gross margin • Change in product mix (start of mass production of new product with lower gross margin) • <More-than-forecast volume> and <delay in gross margin improvement> for the product above, due to higher cost ratio during early mass production phase • Indirect impact of FX Net Sales (vs. April 2025 Forecast) Operating Income (vs. April 2025 Forecast) From October 2025 presentation
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FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3- Net Sales Achievement and Forecast • Design Wins in: Automotive to be foundation of growth Data Center to accelerate further growth ◼ Expansion of Design Wins to lead Net Sales growth as projects go through development phase and enter production ◼ Upward deviation in FY23/3-FY24/3 due to upfront demand from Chinese telecommunication business Design Win Amount Automotive (China, North America), etc. Telecom. (China), etc. Data Center (North America), etc. Upward deviation due to demand increase Contributions from DC&NW + Automotive FX impact (yen depreciation from USD/JPY=130) Upward deviation from 2022 Medium-term 2022 Medium-term (USD/JPY=130) Net Sales (calculated at USD/JPY=130) Net Sales (actual FX Rate) Design Wins and Net Sales FY26/3 Net Sales forecast to reach 190.0B yen at USD/JPY=138 (Exceed April forecast, even at USD/JPY=130) Forecast as of October 2025 USD/JPY=138 USD/JPY=130 27 From October 2025 presentation
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◼ Operating margin expected to grow again in FY27/3 and beyond, as product revenue increases Operating margin trends after FY22/3 (Calculated at USD/JPN=130) Arrows indicate direction of impact on operating margin FY24/3 (16.1%) Results + Forecast (USD/JPY=130) Calculated at USD/JPY=130 Results (Actual FX rate) Actual FX rate Refer to page 2 for handling of forecast. Operating Margin Trends and Future Outlook FY26/3 Forecast as of October 2025 USD/JPY=138 USD/JPY=130 28 ~ FY23/3 FY24/3 FY25/3 FY26/3 FY27/3- Product Gross Margin ◼ (-) Changes in production mix ◼ (+) Indirect impact of FX on procurement ◼ (+) Changes in production mix ◼ (+) Indirect impact of FX on procurement ◼ (-) Changes in product mix ◼ (-) More-than-forecast volume of a new product in early stage, delay in product cost ratio improvement ◼ (-) Indirect impact of FX on procurement ◼ (+/-) Changes in product mix ◼ (+) Cost improvement with production ramp up (-) Mass production start of new products ◼ (+) Indirect impact of FX on procurement becoming less R&D ratio ◼ (+) R&D ratio improved due to increase in product revenue ◼ (-) R&D expense increased due to advance development and R&D team structure improvement ◼ (-) R&D expense to increase due to advance investment for technology development ◼ (+) R&D ratio to improve due to increase in product revenue ◼ (-) R&D expense to increase due to advance investment for technology development ◼ (+) R&D ratio to improve by increase in product revenue SG&A ratio ◼ (+) SG&A ratio improved due to increase in net sales ◼ (-) SG&A ratio increased due to decrease in net sales, despite decrease in total expenses ◼ SG&A ratio to remain flat ◼ (+) SG&A ratio to improve due to increase in product revenue ◼ (-) Proactive IT investment FX rate (USD/JPY) 112.4 135.5 144.6 152.6 138.0 130.0 Profit improvement Profit decline From October 2025 presentation
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Semiconductor Market Trends Socionext’s Initiatives (summary) Background of the Growing Demand for Custom SoCs and Solution SoC Model Aggressive Advance Investment in R&D Strengthening “Entire Design” Capability / Fundamental Reform of Global Structure Expanding Business in Each Application Market Recent Activities in Leading-Edge Technologies Socionext’s Initiatives for the Chiplet Era • Emergence of new services and applications • Evolution of SoC ecosystem • Into era of 3D/5.5D and chiplets • Design becoming more complex = “Entire Design” • Bespoke vs ASSP • New need for Solution SoC business model in various application market Socionext’s initiatives 29 From October 2025 presentation
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Semiconductor Market Trends Background of the Growing Demand for Custom SoCs and Solution SoC Business Model − AI utilization is expanding alongside advancements in SoC technology − New services and applications arise from technological evolution, driving demand for optimized SoCs tailored to these services and applications − Growing number of customers are adopting Solution SoC development approaches to enable advanced functionalities with optimized power, requiring the integration of diverse IPs and processors across sectors such as data centers, networking, automotive and Physical AI Emergence of new services and applications Bespoke vs ASSP Evolution of SoC ecosystem Design becoming more complex = “Entire Design” Advances in SoC and AI technologies accelerate market expansion (Spiral of evolution) Into era of 3D/5.5D and chiplets New need for Solution SoC business model in various application market − While vertical integration advances, ecosystem openness is also progressing, with more functional IPs and chiplet options becoming available in the market − SoC ecosystem evolution brings an increasing availability of competitive IP subsystems and open-source software (OSS) − Rapid advancements in chiplets, packaging, and next-generation process nodes (2nm/14Å) are driving the industry forward − Each of these innovations introduces significant new layers of design complexity − "Entire Design" approach—integrating architecture, thermal management, and testing—is essential, for advanced sectors like data centers and automotive − The complexity of new technologies like chiplets makes a "Solution SoC" business model the most effective path forward − In “More-than-Moore” era market leaders are demanding custom SoCs to meet specific PPA targets, moving away from standard ASSPs to avoid vendor lock-in − The rapid evolution of AI is accelerating this industry-wide shift toward custom silicon solutions. We expect these requirements to become standard as AI and SoC capabilities mature − Customers are adopting the "Solution SoC" model to integrate the complex IPs and processors needed for advanced, next-generation features − The expansion of AI into new domains like automotive and robotics will accelerate the demand for fully bespoke silicon solutions 30 From October 2025 presentation
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→ Innovative companies are looking for SoC partner with “Entire Design” capability → Need for advance investment for “Entire Design” and “Complete Service” Emergence of new services and applications utilizing AI / Evolution of SoC ecosystem across diverse fields New services and applications Design complexity / Entire Design Partnership with ecosystem companies New services and applications emerge through evolution of technologies; Demand expands for optimized SoCs due to expanding use of AIs for such services and applications Architecture and system design through layers including functional, thermal, assembly and testing are becoming increasingly important as difficulties increase for “Entire Design” “Entire Design” is becoming even more important in areas such as data center and automotive, where most advanced technologies are required - More than Moore ASSPs not satisfactory as PPA no longer improves at conventional pace in the "More than Moore“ era, and there are lock-in concerns - 3D and Chiplet Chiplet (Homogeneous to Heterogeneous), packaging technology and process node (2nm/14Å) continue to evolve - Evolution of SoC ecosystem Chiplet makes SoC design and development more efficient, but also more complex Expand and accelerate collaboration with global SoC ecosystem partners Leading-edge technologies Advanced nodes (2nm and beyond) / Chiplet (3D/5.5D) Promoting development and testing for 2nm node and beyond, in combination with chiplet technologies Implementing advanced packaging technologies: 3D and new die-to-die connection - 3D/5.5D technologies: designed and developed test chip of logic-on-logic - High-reliability analysis technology for new packaging and assembly, including testing, thermal analysis and on-die analysis Utilizing AI for SoC design Collaborate with EDA vendors to proactively incorporate AI into SoC design processes, improve design efficiency and PPA (Power, Performance and Area). <Investment for “Entire Design” and “Complete Service”>< Market Trends and Requirements > Design Process Efficiency Efficiency improvement of design process by implementing AI Evolution of verification and testing technologies for efficiency improvement Utilizing leading-edge technologies such as high-speed SerDes and CPO ( Co- Packaged Optics) for new products and services in fields including optical data transmission, high-performance computing, etc. (Strengthening relationship with partners and innovative customers) Aggressive Advance Investment 31 From October 2025 presentation
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Recent Activities in Leading-Edge Technologies Publicly announced development activities with ecosystem partners for leading-edge technologies including 3D/5.5D, Chiplet, etc. ◼Socionext Expands 3DIC Support with Advanced 3D Die Stacking and 5.5D in Packaging Portfolio (August 28, 2025) ◼Socionext and imec Update Core Partner Program Strengthening Collaboration in Research and Development of Chiplet and Advanced Logic Semiconductor Technologies (September 11, 2025) ◼Socionext Unveils “Flexlets”, a Configurable Chiplet Ecosystem to Accelerate Multi-die Silicon Innovation (October 28, 2025) 32 From October 2025 presentation
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Socionext’s Initiatives for the Chiplet Era ◼ The demand for Chiplet Solution is increasing to address: − Reticle size limitation, Yield optimization, Risk mitigation for new IPs (in large monolithic SoC) and Flexibilityof integration (for adaptable system integration) ◼ Chiplet design require expertise across multiple advanced technologies − DFT & testing, advanced packaging, thermal design & management, signal & power integrity, interconnect protocols, yield & reliability engineering ◼ Optimizing performance and cost requires custom SoC design − Off-the-shelf chips do not provide differentiation and cannot meet the PPA requirements of the application “Flexlets” RTL-configurable chiplets Integrated, yet flexible, chiplet platform built for end-to-end bespoke SoC design in line with Solution SoC business model ➢ Empower customers to tailor performance to their unique application needs – whether in high-performance computing, advanced networking, or next-generation automotive systems ➢ Enable customers to co-design differentiated features by integrating best-in-class IP from any vendor. ➢ “True architecture flexibility”, “Seamless custom IP integration”, “Incorporating customers' choice of best-in-class third-party IP”, and “PPA optimization from design inception” enable “Creation of truly differentiated products” Excerpt from press release “Socionext unveils “Flexlets”, a Configurable Chiplet Designed to Accelerate Multi-die Silicon Innovation” (October ２８, 2025) Socionext will launch a portfolio of Flexlets, each integrating security, debug features, and optimized interfaces. Customers have the option to customize their designs at the RTL level to meet specific application requirements. Engineering samples of the initial Flexlet base designs, including Known Good Die (KGD), are currently in development. Socionext will initiate its first customer design this year and broaden design engagements beginning in Q2 calendar year 2026. Our family of Flexlets delivers a scalable, modular foundation for next-generation silicon design- built for adaptability, performance, and innovation. 33 From October 2025 presentation
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Industrial / Physical AI ➢ Aim for business expansion with unique and distinctive “Solution SoC” business model with CPU development experience and expertise ➢ Continue pursuing leading-edge technologies and process nodes; strengthen and utilize “Entire Design” capability ➢ Strengthen partnership with IP vendors in the advanced area ➢ Strengthen R&D structure and capability in US and globally ➢ Continue investing in leading-edge technologies (Chiplet, 3D/5.5D, High-speed SerDes, Co-Packaged Optics, 2nm/14Å) ◼ This industry is undergoing a profound transformation, with AI playing a pivotal role ◼ Key requirements are low power consumption, low latency, and stringent safety standards (ASIL-C and ASIL-D). ◼ Innovation continues for ADAS and AD ◼ Demand continue to be strong for HPC, as well as for zone computing and sensing ◼ Growing number of customers are adopting Solution SoC business model to enable advanced functionalities with optimized power, requiring the integration of diverse IPs and processors across sectors ◼ Business opportunities remain active ◼ Involved in most advanced bespoke SoC projects in the world ◼ Mass production of 7nm and 5nm products will start in FY25/3 and FY26/3 ◼ More opportunities for next-generation products expected ◼ Expanding business opportunities for service-oriented companies and new OEMs of next-generation products ◼ The sheer scale of data processing and the relentless pursuit of performance and efficiency make this segment a prime target for custom SoC solutions ◼ Growing number of customers are adopting Solution SoC business model to enable advanced functionalities with optimized power, requiring the integration of diverse IPs and processors across sectors ◼ Demand expanding for Data Center & Networking, cloud service SoCs due to increasing demand for generative AI ◼ 2 distinct approaches : scale-up and scale out ◼ Hyperscalers CPU project ongoing; looking to use the project as a leverage to expand business in CPU, AI fields ◼ Require optical data transmission and reception using high -speed SerDes and CPO technology ◼ Acquired several design wins for AI SoCs in US and started development ◼ Expect business expansion through proactive initiatives in cutting-edge fields ➢ Leverage Solution SoC business model and establish certain presence in the industry ➢ Pursue most advanced 3nm process nodes ➢ Continue investing in leading-edge technologies (Chiplet, 3D/5.5D, High-speed SerDes, Co-Packaged Optics, 2nm/14Å) Automotive Data Center & Networking ◼ Demand expanding for Solution SoC business model with advanced technologies, due to expanding use of AI and networking ◼ Business opportunities increasing, for FA and measurement equipment, as well as for custom SoCs using RF-CMOS technologies ◼ There are moves to strengthen AI and CPU, integrating with application IPs and customers’ existing IPs to develop new SoCs. ◼ Demand for new technologies in smart devices area continues to be strong due to expanding use of AI ◼ Business opportunities active with advanced customers, in applications including computer vision, AR etc. ➢ Leverage Solution SoC business model and deliver bespoke SoCs required in most advanced applications ➢ Leverage Solution SoC business model and deliver bespoke SoCs with advanced process nodes, RF-CMOS technology, etc. Smart Devices Industrial EDA Tool Advanced RF Base IPs Application-specific IPs (ISP, RF, Codec, Secure …), UserLogic,etc. Framework System Controller ROM/RAM Micro Processor Firmware (Boot/System) Memory / System Interconnect Application Processor Firmware (Boot/System) AI Engine / GPUSpecific H/W AI Libraries Specific API Specific Libraries Application Application Block AI API Security & System Management SoftwareHardware Machine Learning Standard H/W Linux Specific Firmware Linux API Device Driver Standard Libraries Peripherals Computer Architecture Based Platform The emerging field of Physical AI, which encompasses applications where humans and robots interact with their physical surroundings, represents a significant long -term growth opportunity. Expanding Business in Each Application Market 34 From October 2025 presentation
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0 200 400 Mar-23 Mar-24 Mar-25 0 200 400 Mar-23 Mar-24 Mar-25 0 200 400 Mar-23 Mar-24 Mar-25 LiDAR / Radar / Camera HP Computing Zone Computing 5/12nm 3/5/7nm 3/5/7nm 5nm 7nm 7nm 7nm Data Center Base Station Automotive Data Center & Networking Smart Devices 16/22nm 3/5nm 7/16/22nm 5/7/12nm 5/7nm 5/7nm 28nm Test & Measurement PrinterDSLR/Action Network cameras AR EDA Tool Advanced RF Base IPs Application-specific IPs (ISP, RF, Codec, Secure …), UserLogic,etc. Framework System Controller ROM/RAM Micro Processor Firmware (Boot/System) Memory / System Interconnect Application Processor Firmware (Boot/System) AI Engine / GPUSpecific H/W AI Libraries Specific API Specific Libraries Application Application Block AI API Security & System Management SoftwareHardware Machine Learning Standard H/W Linux Specific Firmware Linux API Device Driver Standard Libraries Peripherals Computer Architecture Based Platform Industrial Design win balance Design win balance Design win balance Smart Devices + Industrial Track Record : Design Wins Expanding in Each Application Market 1 35 From October 2025 presentation
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Track Record : Design Wins Expanding in Each Application Market 2 Advanced SoC Developments on Computer Architecture Basis in Diverse Fields LiDAR ADAS Automotive Data Center & Networking Smart Devices Industrial Application Block (Processor, Standard IF) Memory System Controller Application Specific, User Logic AI Block ◼ Common development platform established as system configurations across major applications become similar towards computer architecture-based ◼ Address PPA optimization challenges due to design complexity such as chiplets, heterogeneous integration, thermal and reliability EDA Tool Advanced RF Base IPs Application-specific IPs (ISP, RF, Codec, Secure …), UserLogic,etc. Framework System Controller ROM/RAM Micro Processor Firmware (Boot/System) Memory / System Interconnect Application Processor Firmware (Boot/System) AI Engine / GPUSpecific H/W AI Libraries Specific API Specific Libraries Application Application Block AI API Security & System Management SoftwareHardware Machine Learning Standard H/W Linux Specific Firmware Linux API Device Driver Standard Libraries Peripherals Computer Architecture Based Platform ADAS Chiplet / Heterogeneous Chiplet / Homogeneous 1.Development cases in this page are mainly those in mass production or under development, but some are still in business negotiation stage. Network Camera Chiplet / Homogeneous Camera Test & Measurement FA Server Processor Chiplet / Homogeneous Chiplet / Homogeneous AI Server Processor Chiplet / Heterogeneous Server Processor 36 From October 2025 presentation
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Strengthening “Entire Design” Capability / Fundamental Reform of Global Structure Build global R&D Structure - Acquire high-skilled engineers globally - Integrate engineer teams in Japan and other regions (mainly US) Strengthen global project management structure - Strengthening close cooperation between regional project managers and engineering teams in Japan Establish global co-lead structure COO H.Yoshida (Japan) / CTO&EVP R.Cheema (US) - Make organization truly global Strengthen “entire design” capability - Strengthen capability to handle large-scale, leading-edge development projects in parallel - Invest aggressively in leading-edge technologies - Fully allocate high-skilled engineering teams that cover wide range of functions to leading-edge projects (SoC architecture, software, verification, test, packaging, thermal, etc.) Establish and strengthen structure to enable development of multiple products in multiple areas, aligned with Solution SoC business model Building a global and competitive R&D structure Fundamental reform of global organizational structure Resource management (including outsourcing) - Opened office in India, expanding and strengthening engineer resources under management of U.S. subsidiary Building a global resource management structure April 2025~: Further expansion as “Global Leading Group” New stock-base compensation system To attract and secure talented engineering and management personnel, The company will acquire treasury stock, considering the possibility of using the shares to be granted 37 From October 2025 presentation
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Medium-Term Targets FY25/3 Result FY26/3 Forecast (as of Oct.2025) Medium-Term Targets Net Sales 188.5(170.0) USD/JPY=152.6 (130) 190.0 USD/JPY=138 CAGR Mid-teen % OP Margin (Operating income) 13.3% (25.0 bn yen) 5.3% (10.0 bn yen) Mid-to-High- teen % (Yen in billions) ◼ Net Sales: Back onto growth track in FY27/3; Aiming for mid-teen% CAGR (excluding FX) ◼ Operating Margin: Aiming for mid-to-high-teen%, along with sales expansion and strengthening R&D competitiveness FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 Net Sales (billion yen) 99.7 117.0 192.8 221.2 188.5 FX Rate (USD/JPY) 106.1 112.4 135.5 144.6 152.6 OP Margin 1.6% 7.2% 11.3% 16.1% 13.3% Reference FY21/3 FY22/3 Medium-Term Targets Net Sales Growth 99.7 billion yen 117.0 billion yen High-teen% CAGR OP Margin 1.6% 7.2% Low-to-Mid- teen % Medium-Term Financial Targets (Announced September 2022) Financial Results Medium-Term Targets by real basis, excluding FX impact. USD/JPY=130 is used as FX assumption Refer to page 2 for handling of forecast. Medium-Term Targets : Aiming for Future Growth 38 From October 2025 presentation
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The following slides are excerpts from the materials used in the 4Q FY2025/3 financial results presentation (April 2025)
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FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 “Design Win Amount” (LTR) acquired in each fiscal year ◼ Design Win Amount has more than doubled through transformation since 2018 ◼ Achieved level of 300 billion yen in FY23/3 and FY24/3 ◼ FY25/3 amount expanded to approx. 360 billion yen Approx. 110 billion yen (100 billion yen1) Approx. 240 billion yen (200 billion yen1) Approx. 300 billion yen (250 billion yen1) Approx. 360 billion yen (300 billion yen1) Strong Design Wins The figures of "Design Win Amount" will not be updated based on subsequent changes in circumstances after the acquisition of such business opportunities. Such subsequent changes include: (1) changes in factors such as actual sales, development plan, sales volume, unit price and production capacity, as well as (2) cancellation of a project after a design win. The possibility that projects that we have won may be cancelled cannot be ruled out. The impact of the subsequent changes after the design wins are acquired is reflected in Design Win Balance. “Design Win Balance” represents the company‘s estimates of the accumulated remaining “Design Win Amount” associated with projects that are active as of a particular date. The impact of subsequent events, including the abovementioned (1) and (2), is reflected to “Design Win Balance”. For example, projects corresponding to approximately 15% of the total of Design Win Amount from FY20/3 to FY25/3 were canceled after such projects started. Up to recently, the impact of project cancellations has been offset by increases in the unit price and production volume of other active projects. However, as of the end of March 2025, the sum of “Design Win Balance” and “revenues recorded from the projects that correspond to the current Design Win Balance” is becoming lower than the total of “Design Win Amount” of the relevant projects, by several percent due in part of the cancellation of the automotive project in the US. A foreign exchange rate of USD/JPY=120 is used in above graphs and drawings. Refer to page 3. 1. The figures in parentheses are amounts calculated using an exchange rate of USD/JPY= 100 40 From April 2025 presentation (revised)
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FY18/3 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 Large-Scale Design Wins Increasing “Design Win Amount” (LTR) acquired in each fiscal year ◼ Proportion of large-scale Design Wins increasing 3 2 2 8 5 2 4 2 3 4 2 4 Number of projects 30 bn yen or more Between 10 ~ 30 bn yen Less than 10 bn yen Project Size Approx. 110 billion yen (100 billion yen1) Approx. 240 billion yen (200 billion yen1) Approx. 300 billion yen (250 billion yen1) Approx. 360 billion yen (300 billion yen1) The figures of "Design Win Amount" will not be updated based on subsequent changes in circumstances after the acquisition of such business opportunities. Such subsequent changes include: (1) changes in factors such as actual sales, development plan, sales volume, unit price and production capacity, as well as (2) cancellation of a project after a design win. The possibility that projects that we have won may be cancelled cannot be ruled out. The impact of the subsequent changes after the design wins are acquired is reflected in Design Win Balance. “Design Win Balance” represents the company‘s estimates of the accumulated remaining “Design Win Amount” associated with projects that are active as of a particular date. The impact of subsequent events, including the abovementioned (1) and (2), is reflected to “Design Win Balance”. For example, projects corresponding to approximately 15% of the total of Design Win Amount from FY20/3 to FY25/3 were canceled after such projects started. Up to recently, the impact of project cancellations has been offset by increases in the unit price and production volume of other active projects. However, as of the end of March 2025, the sum of “Design Win Balance” and “revenues recorded from the projects that correspond to the current Design Win Balance” is becoming lower than the total of “Design Win Amount” of the relevant projects, by several percent due in part of the cancellation of the automotive project in the US. A foreign exchange rate of USD/JPY=120 is used in above graphs and drawings. Refer to page 3. 1. The figures in parentheses are amounts calculated using an exchange rate of USD/JPY= 100 41 From April 2025 presentation (revised)
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Design Win Balance: Breakdown of Changes 0 200 400 600 800 1,000 1,200 1,400 Design Win Balance March 2022 New Design Wins Review, update, cancellation, etc. Revenue recognition Design Win Balance March 2023 New Design Wins Review, update, cancellation, etc. Revenue recognition Design Win Balance March 2024 New Design Wins Review, update, cancellation, etc. Revenue recognition Design Win Balance March 2025 (Yen in billions) Design Win Balance (Approx.) FY22/3–FY25/3 840 250 60 150 60 170 140300 250 1,000 1,020 1,140 10 3050 10 40 20 40 ◼ Design Win Balance increased by approx. 10%, or 100 billion yen, with strong Design Wins, despite cancellations ◼ 60% of current Design Win Balance expected to be recognized as revenues in next four years + Cancel - • Demand increase & decrease • Project cancellation *(FY25/3)(FY26/3-) * indicates sales increase and decrease in FY25/3, corresponding to demand increase and decrease. Decrease includes shift to FY26/3–. 1,340 (Reference) Calculated at USD/JPY=120 The figures of "Design Win Amount" will not be updated based on subsequent changes in circumstances after the acquisition of such business opportunities. Such subsequent changes include: (1) changes in factors such as actual sales, development plan, sales volume, unit price and production capacity, as well as (2) cancellation of a project after a design win. The possibility that projects that we have won may be cancelled cannot be ruled out. The impact of the subsequent changes after the design wins are acquired is reflected in Design Win Balance. “Design Win Balance” represents the company‘s estimates of the accumulated remaining “Design Win Amount” associated with projects that are active as of a particular date. The impact of subsequent events, including the abovementioned (1) and (2), is reflected to “Design Win Balance”. For example, projects corresponding to approximately 15% of the total of Design Win Amount from FY20/3 to FY25/3 were canceled after such projects started. Up to recently, the impact of project cancellations has been offset by increases in the unit price and production volume of other active projects. However, as of the end of March 2025, the sum of “Design Win Balance” and “revenues recorded from the projects that correspond to the current Design Win Balance” is becoming lower than the total of “Design Win Amount” of the relevant projects, by several percent due in part of the cancellation ofthe automotive project in the US. A foreign exchange rate of USD/JPY=100 is used in above graphs and drawings. Refer to page 3. 42 From April 2025 presentation (revised)
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◼ By application market: ‐ Proportion of “Data Center & Networking” increasing, reflecting recent strong design wins ‐ Current breakdown of Design Win Balance by application market (approx.): 1/3 Automotive, 1/3 Data Center & Networking, and 1/3 the rest ◼ By geographic region: ‐ “United States” increased slightly. Breakdown is well balanced, with “US”, “Japan” and other regions including “China” each comprising approx. 1/3 of the total balance US EU China Asia excluding China Japan Automotive DC&NW SD Industrial Others By application By region1 In : FY24/3 Out : FY25/3 In : FY24/3 Out : FY25/3 Design Win Balance FY24/3: 1,200 (1,020)2 bn yen FY25/3: 1,340 (1,140)2 bn yen Design Win Balance: by Application Market and Region 1. "Geographic region" in this page is based on the location of Socionext's regional company that is in charge of the business. 2. The figures in parentheses are amounts calculated using an exchange rate of USD/JPY= 100 From April 2025 presentation (revised) 43
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New Executive Structure Global Leading Group (GLG) Development Group (DG) Corporate M. Koezuka, CEO H. Yoshida, COO Y. Yoneyama, EVP&CFO H. Yoshida GLG Co-Lead R. Cheema EVP & CTO GLG Co-Lead S. Goto EVP & Chief Architect GLG Second Lead H. Yoshida DG Lead T. Kamada EVP BG Lead S. Goto EVP & Chief Architect BG Second Lead T. Kamada EVP SG Lead M. Majid EVP SG Second Lead M. Naito EVP Production Control Group Lead Production & Quality Management Group Lead Business Group (BG) / Sales Group (SG) Production Management Group April 2025~: Started new executive structure for sustainable growth CEO, COO, CTO and Chief Architect constitute the Global Technology Strategy Steering Members EVPs not in this chart: T. Saito: Vice Head of Development Group M. Nakajima: Vice Head of Automotive BU in Business Group S. Ando: In charge of finance and accounting in the Corporate Group Y. Hayashi: Continue as president of Socionext America Announced February 2025 From April 2025 presentation 44
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“Design Win Amount” to Revenue / Illustrative Description of “Design Win Balance” “Design Win Balance” “Design Win Amount” calculated from “Design Win Balance” 1 Image of Change in “Design Win Balance 2 ” “Design Win Balance1” ・・・ “Design win balance” (LTR; Life Time Revenue) represents our estimates of remaining accumulated “design win amount” that is associated with projects that are active as of a particular date. Design win balance thus reflects certain subsequent developments after the end of the period in which such design win was acquired “Design Win Balance” is regularly managed in accordance with prudent procedures to account for future risks. “Design Win Balance” “Design Win Amount” End of Year N-1 Product Revenue NRE Revenue + Additional Design Win “Amount” - Revenue recognition - Cancellation ± Review and update estimates of product volumes and unit price for mass production stage and other factors. + Additional Design Win “Amount” - Revenue recognition - Cancellation ± Review and update estimates of design and development costs and other factors. Year N Revenue End of Year N “Design Win Balance” (As of March 31, 2025) Approx. JPY1.34trillion 1. The figures of "Design Win Amount" will not be updated based on subsequent changes in circumstances after the acquisition of such business opportunities. Such subsequent changes include: (1) changes in factors such as actual sales, development plan, sales volume, unit price and production capacity, as well as (2) cancellation of a project after a design win. The possibility that projects that we have won may be cancelled cannot be ruled out. The impact of the subsequent changes after the design wins are acquired is reflected in Design Win Balance. “Design Win Balance” represents the company‘s estimates of the accumulated remaining “Design Win Amount” associated with projects that are active as of a particular date. The impact of subsequent events, including the abovementioned (1) and (2), is reflected to “Design Win Balance”. For example, projects corresponding to approximately 15% of the total of Design Win Amount from FY20/3 to FY25/3 were canceled after such projects started. Up to recently, the impact of project cancellations has been offset by increases in the unit price and production volume of other active projects. However, as of the end of March 2025, the sum of “Design Win Balance” and “revenues recorded from the projects that correspond to the current Design Win Balance” is becoming lower than the total of “Design Win Amount” of the relevant projects, by several percent due in part of the cancellation ofthe automotive project in the US. A foreign exchange rate of USD/JPY=120 is used in above graphs and drawings. Refer to page 3. From April 2025 presentation 45
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Timeline from Design Win to Mass Production / Illustrative Description of “Design Win Amount” 1. Refer to slide 3 2. For illustrative purposes only. The actual timeline of product development to mass production may differ materially based on the product and actual customer demand “Design Win Amount１” ・・・ “Design Win Amount” represents estimate of the lifetime demand from design projects. “Design Win Amount” is divided into NRE-based and product-based amounts. “Design Win Amounts” are expected to contribute to product revenue once projects progress to the mass production stage of the project lifecycle. “Design Win Amount” is calculated in accordance with prudent procedures as below • Each “Design Win Amount” is estimated based on assumptions such as per-unit prices and estimated future product sales volumes, not on sales forecasts provided by customers1 • A foreign exchange assumption of 1USD=120JPY has been used Year0 Year6Year5Year4Year3Year2Year1 Design & Development Mass ProductionAcquisition of Design Win Year7~ NRE Revenue Limited contribution to Operating Income Product Revenue Main source of Operating Income Illustrative Timeline from Design Win to Mass Production 2 R&D COGS Revenue Cost “Design Win Amount” From April 2025 presentation 46
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Focus on ASSP and ASIC Focus on Solution SoC in custom SoC mkt. DTV DSC Blu-ray/DVD Mainly Domestic Focus Global Market Leader Hierarchical Organization Quick Decision-Making with a Flat Team Structure Business Model Primary Applications Expansion of Overseas Business Technology Culture Data Center & NetworkingAutomotive Smart Devices (2nm, 3nm, 5nm) Past 2018 Present Follower ◼ Through transformation of business and company culture, Socionext has turned into global leading custom SoC company with new and distinctive “Solution SoC” business model Industrial Mature Market Growth Market Transformation into Global Custom SoC Company in Advanced Technology Areas From April 2025 presentation 47
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Architecture (Service/Application) Architecture (SoC) Specification (SoC) Architecture (System) SoC Design Manufacturing HW Physical SW Mass Production Quality Control IP PCB PKG DFT Thermal Traditional ASIC Customer SoC Vendor “Solution SoC” Customer ◼ The primary difference between “traditional ASIC” and “Solution SoC “ is how to interface with customers ◼ The primary difference between “Solution SoC” and “ASIC designed by ASSP vendors“ is the breadth of optional customization SoC ASSP SoC Vendor Customer ASIC designed by ASSP vendors Customer SoC Vendor Use SoC vendor’s IP and design methodology 1. This slide is an image based on the company’s recognition. Custom SoC (ASIC) SoC Vendor Features of Solution SoC Business Model From April 2025 presentation 48