Information. I would like to thank you for your precious time despite your busy schedule. We have just made an announcement for the FY2027, the first quarter, as well as the full year forecast for the FY2027 March. This shows the important points I would like to cover today. As has been announced in our press release on July the 10th, actually, we have changed some segmentations. As for the numbers for FY26 March, actually, these numbers are based upon the newly created segmentations. Also for your information, the unit in this set of materials is 1 billion JPY. Now, allow me to go through the financial results for the Q1 FY27 March. First, I would like to begin with these key takeaways. IT Services, domestic, as well as the aerospace and national security actually turned out to be quite firm, making great contributions to the overall performance. Starting from domain, actually, we incorporated CSG in the U.S.A. IT Services and Social Infrastructure, both segmentations actually enjoyed big growth both in the revenue and the profit. Thanks to these results, as for the actual numbers for the first quarter, our revenue year-on-year increased to 14.5%, 819.8 billion JPY. As for the non-GAAP operating profit year-on-year, up 34.7 billion JPY, becoming 74.7 billion JPY. Based upon actually the latest progress for the first quarter, actually, we revised up our full-year forecast. In regard to non-GAAP operating profit, compared with the past announcement, actually increased temporarily then becoming 430 billion JPY. First, allow me to go through the major numbers as well as the segment performance. The bottom left shows the actual numbers pro forma basis, excluding the M&A impacts. Assuming that starting from last year, CSG incorporated, our revenue actually improved 9.8%, our profit grew 27 billion JPY. As for the actuals by segment, allow me to move on to the next pages. First, IT Services segmentation, and domestic situations, Blue Stella expanded and also due to the impacts from the structural reform among the subsidiaries. Year-on-year, actually, the profit actually improved 13.4 billion JPY and the profit actually improved 2.7 points. As for the overseas, due to the CSG newly integrated, year-on-year, up 46% in revenue and 3.6 billion JPY improvement in the profit. Next, allow me to explain the domestic IT Services, Blue Stella and the base business separately. First, Blue Stella. Thanks to our scenario business and actually solutions, actually trying to solve the customer's issues, particularly in the municipalities and financial services. Year-on-year, actually, revenue improved 33%, profit improved 7.6 billion JPY. As for base business, we decided to end low profit making business and also making shift toward Blue Stella resulted in actually revenue and profit. Thanks to the actual structure reforms among the subsidiaries, thanks to the ending of the previous year's unprofitable businesses, year on business and actually profit actually improved by 5.7 billion JPY. Allow me next, I would like to move on to the domestic IT Services booking the status. At a high level, the larger projects and the special demands are actually ending of the low on profit-making business, excluding them in an actual basis, it became a positive 3%. Sitting around the monetization projects, the demand momentum has been rather strong. By domain, digitalization project for the central government and the telecommunication area were firm. On the enterprise, the financial services and the retail and services actually grew, actually giving us some positive numbers, being positive 16%, we are able to continue good results starting from the last year. As for the full year actual first quarter revenue as well as the end of the June, the backlog coverage, actually year-on-year basis, it has been increased by 2%. Vis-à-vis our annual forecast, things are going rather firmly and steadily. Next, I'd like to move on to the Social Infrastructure segmentation. aerospace and national security actually continued to be strong year-on-year basis. Actually, the revenue increased 50% resulting in a profit of JPY 9.2 billion. As for the submarine systems, we have received orders last year, that actually made a contribution to the actual numbers. Actually, we turned out to be positive as much as by 52%. Next, I'd like to move on to the financial forecast for FY27 March. First, I will explain the company-wide financial forecast. As explained at the beginning, based on the business progress in the first quarter, we have revised our forecast upward. Revenue is revised up by JPY 40 billion to JPY 3 trillion 540 billion. Non-GAAP operating profit is up by JPY 10 billion to JPY 430 billion. Please note that the impact of the full year forecast from the new consolidation of CSG is currently under close review. It is not reflected in this forecast. We plan to disclose a forecast that includes CSG's results at the first half earnings announcement. Next is the financial forecast by segment. Details regarding both the IT Services and Social Infrastructure segments will be explained on the following pages. Please note that we have maintained the allowances which were set at the beginning of the fiscal year against component shortage risks and the macroeconomic uncertainty. The amounts factored in are JPY 100 billion for revenue and JPY 30 billion for Non-GAAP operating profit. Regarding component shortages, the impact as of the first quarter has been minor. The uncertain situation still continues, and we will continue to take measures to minimize the risks. Next is the IT Services segment. The revisions to the financial forecast and IT Services are entirely implemented in the domestic market. The revised forecast for revenue is up by JPY 20 billion to JPY 2 trillion 175 billion. Non-GAAP operating profit is up by JPY 5 billion to JPY 329 billion. We have factored in a negative revenue impact of JPY 100 billion due to municipal standardization in the public sector and the peaking out of the prior disaster prevention project. We also factored in JPY 100 billion for component shortage risks. Despite these, we plan to improve profitability through the expansion of BlueStellar. As for overseas, we will continuously work on improving profitability. In addition, by curbing unprofitable projects that occurred in the previous fiscal year, we plan for a profit of JPY 52 billion, which is a profit increase of JPY 9.2 billion. Again, please note that at this time, the impact of CSG consolidation is not reflected. Next, we will present the 5 March 2027 financial forecast for domestic IT Services divided into BlueStellar and the base business. The revisions to the financial forecast are entirely implemented in the base business, leaving BlueStellar unchanged. For BlueStellar, we will work on further expanding scenarios using AI and improving productivity. This will contribute to further profit margin improvement for the overall IT Services. This is a breakdown of the first quarter results and full year financial forecast for BlueStellar by segment. Until now, BlueStellar has been entirely disclosed as included within IT Services. However, assuming that its deployment into Social Infrastructure will expand in the future, we will disclose the breakdown by segment starting this fiscal year. Next is Social Infrastructure. Since the first quarter results exceeded our internal expectations, we have made upward revisions. For aerospace and national security, revenue is revised upward by JPY 20 billion and profit by JPY 4 billion. For submarine systems, profit is revised upward by JPY 1 billion. In addition to the further expansion of aerospace and national security, which has strong demand, submarine systems will turn profitable. As a result, for the full year forecast, we plan for a profit of JPY 9.9 billion, which is an increase of JPY 45.6 billion. Finally, we have topics. The first point is a topic on BlueStellar. In April, we became the first Japanese company to become global partner of Anthropic. We are advancing efforts toward providing this to our customers. We are jointly developing a secure task-specific AI solution with excellent safety and reliability. First, aiming for utilization in the financial industry, we started co-creation with multiple financial institutions in June. Furthermore, as a first service based on this collaboration, we launched the NEC AI Insight Reporting Service this month. This service utilizes Claude to fully automate the creation of product planning and sales promotion plans based on consumer purchase data. Internally, we have rolled out Claude Code to 30,000 NEC Group employees. By utilizing education provided by Anthropic, we aim to build the largest AI native engineer organization in Japan. Finally, I will explain the integration of NEC and NEC Solution Innovators scheduled for October 1st. With the rapid advancement of AI, the business model of the IT Services business is expected to change significantly. It will shift from the conventional man-month basis to one centered on end-to-end value provision. This time, through the integration of the two companies, we will bring together 20,000 engineers, as well as domain knowledge and implementation capabilities. We will accelerate the transformation into a value provision model that consistently offers everything from consulting to system integration and operations. This integration is a strategic move to transform the entire NEC Group ahead of changes in the market environment. We aim to strengthen our competitiveness in the AI native era and achieve further growth in the IT Services business. That concludes my explanation. Thank you very much.
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