Socionext Inc. · TSE:6526
Socionext — Q2 FY2027/3 Earnings Presentation
53 slides from Socionext's earnings presentation, Oct 28, 2026
Slide 1: 2Q FY2027/3 Consolidated Financial Results
2Q FY2027/3 Consolidated Financial Results October 28, 2026 Socionext Inc.
Slide 2: Disclaimer
Disclaimer This presentation’s sole purpose is to present certain information regarding Socionext Inc. (“Socionext”). This presentation does not constitute an offer to sell or the solicitation of an offer to buy shares of our common stock (the “securities”). This presentation and the information con
Slide 3: Cautionary Note Regarding Design Win Amount and Design Win Balance
Cautionary Note Regarding “Design Win Amount” and “Design Win Balance” The calculation of “Design Win Amount” and “Design Win Balance” involves a significant degree of future estimation and subjective judgment. Such calculations are based on assumptions regarding development plans, development costs
Slide 4: Consolidated Financial Results 2Q FY2027/3
2Q FY2027/3 Consolidated Financial Results ─ Consolidated Financial Results 2Q FY2027/3 ─ Consolidated Earnings Forecast FY2027/3 Toward Further Growth 4
Slide 5: 2Q FY2027/3 Consolidated Statements of Income
2Q FY2027/3 Consolidated Statements of Income （JPY in billions） FY2026/3 FY2027/3 YoY QoQ 1Q 2Q 3Q 4Q 1Q 2Q YoY% QoQ% Net Sales 34.6 52.7 54.9 58.7 39.0 60.4 +7.7 +14.7% +21.3 +54.7% Product revenue 25.9 44.5 44.3 47.1 27.4 50.2 +5.7 +12.8% +22.8 +83.0% NRE revenue 8.5 8.0 10.4 11.5 11.6 10.2 +2.3 +
Slide 6: 1H FY2027/3 Consolidated Statements of Income
1H FY2027/3 Consolidated Statements of Income （JPY in billions） FY2026/3 FY2027/3 YoY 1H 1H YoY% Net Sales 87.2 99.4 +12.2 +14.0% Product revenue 70.4 77.6 +7.2 +10.2% NRE revenue 16.4 21.8 +5.4 +32.9% Other revenue 0.4 0.0 -0.4 Cost of Sales 45.3 54.2 +9.0 +19.8% Product cost ratio 64.3% 69.9% +5.6
Slide 7: Quarterly Net Sales and Operating Income
Quarterly Net Sales and Operating Income Net Sales1 Operating Income1 Other Revenue Operating Margin NRE Revenue （JPY in billions） （JPY in billions） Operating Income 19.4% Product Revenue including 61.4 60.4 17.6% Special Demand 58.7 16.5% 56.1 55.5 54.9 53.9 8.4 52.751.652.8 52.7 10.2 11.5 14.0% 15
Slide 8: 2Q FY2027/3 Financial Results YoY
2Q FY2027/3 Financial Results YoY Net Sales and Operating Income YoY Operating Income YoY Analysis NRE Revenue Operating Margin （JPY in billions） （JPY in billions） Operating Income +1.7 Product Revenue 4.4% 60.4 3.9% 52.7 10.2 +0.7 8.0 -0.8 -1.6 50.2 2.3 2.3 2.3 2.3 44.5 2 1,2 2 2 FY26/3 2Q FY27/3 2
Slide 9: 1H FY2027/3 Financial Results YoY
1H FY2027/3 Financial Results YoY Net Sales and Operating Income YoY Operating Income YoY Analysis NRE Revenue Operating Margin （JPY in billions） （JPY in billions） Product Revenue Operating Income 99.4 +3.9 87.2 4.3% 21.8 16.4 1.7% +1.0 77.6 3.8 3.8 70.4 1.7 -2.9 1.7 -4.1 2 1,2 2 2 FY26/3 1H FY27/3
Slide 10: 2Q FY2027/3 Financial Results QoQ
2Q FY2027/3 Financial Results QoQ Net Sales and Operating Income QoQ Operating Income QoQ Analysis NRE Revenue Operating Margin （JPY in billions） +4.0 （JPY in billions） Product Revenue Operating Income 3.9% +0.3 0.0 60.4 10.2 -1.3 39.0 2.3 2.3 11.6 50.2 27.4 -0.7 -0.7 -1.7% 2 1,2 2 2 FY27/3 1Q FY27/
Slide 11: Consolidated Balance Sheet (As of September 30, 2026)
Consolidated Balance Sheet (As of September 30, 2026) （JPY in billions） Cash on-hand and in banks1 Cash on-hand and in banks （JPY in billions） As of As of Change Short-term borrowings Mar.31, 2026 Sep. 30, 2026 Total Assets 167.6 179.1 +11.5 69.7 69.1 74.0 69.9 72.8 69.5 Total Current Assets 122.8 1
Slide 12: Capex, Depreciation & Amortization, Cash Flow
Capex, Depreciation & Amortization, Cash Flow Capex1, Depreciation & Amortization Cash Flow (JPY in billions) (JPY in billions) 16.0 40.0 Capex Depreciation & Amortization Operating CF Investment CF Free CF 14.0 30.0 12.0 20.0 10.0 10.0 8.0 0.0 6.0 -10.0 4.0 -20.0 2.0 0.0 -30.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 13: Breakdown by Application Market
Breakdown by Application Market Net Sales NRE Revenue Automotive Data Center & Networking Automotive Data Center & Networking Smart Devices Industrial Smart Devices Industrial Other Other 100% 100% 2% 5% 5% 6% 6% 3% 6% 7% 10% 8% 14% 11% 14% 13% 12% 8% 16% 13% 8% 23% 23% 13% 29% 27% 17% 17% 11% 19% 2
Slide 14: Breakdown by Geographic Region
Breakdown by Geographic Region Net Sales NRE Revenue US China Japan Other US China Japan Other 100% 100% 10% 7% 8% 8% 9% 10% 7% 8% 10% 12% 12% 11% 12% 14% 11% 14% 19% 18% 21% 25% 80% 80% 26% 31% 20% 29% 38% 37% 36% 44% 45% 20% 51% 44% 60% 59% 52% 60% 27% 63% 21% 18% 66% 71% 55% 12% 56% 25% 16% 20% 6
Slide 15: Breakdown by Process Node
Breakdown by Process Node Net Sales NRE Revenue 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 100% 100% 3% 4% 10% 8% 14% 13% 7% 5% 18% 17% 2% 22% 22% 23% 21% 25% 25% 12% 6% 29% 12% 7% 80% 80% 45% 43% 42% 10% 18% 9% 6% 55% 16% 64% 21% 19% 19% 19% 30%
Slide 16: Consolidated Earnings Forecast FY2027/3
2Q FY2027/3 Consolidated Financial Results ─ Consolidated Financial Results 2Q FY2027/3 ─ Consolidated Earnings Forecast FY2027/3 Toward Further Growth 16
Slide 17: Net Sales Trends
From April 2026 presentation (revised) Net Sales Trends FY26/3、FY27/3 Sales Result (actual FX rate) FY27/3 Sales Forecast (as of April 2026, USD/JPY 130) FY26/3、FY27/3 Sales Result (on USD/JPY 130 basis1) FY27/3 Sales Forecast (as of October 2026, USD/JPY 130) FY26/3 Sales Result Average (on USD/JPY
Slide 18: Consolidated Earnings Forecast FY2027/3
Consolidated Earnings Forecast FY2027/3 (JPY in billions) FY2026/3 FY2027/3 FY2027/3 Changes from Full Year Full Year Forecast Full Year Forecast April 2026 Results as of April 2026 as of October 2026 Forecast YoY YoY % Net Sales 200.8 215.0 225.0 +10.0 4.7% +24.2 +12.0% Operating Income 12.4 14.0 1
Slide 19: Earnings Forecast as of October 2026 vs. April 2026 Forecast
Consolidated Earnings Forecast FY2027/3 as of October 2026 (vs. April 2026 Forecast) ◼ Net Sales: Up 10.0 billion yen from the April forecast due to higher NRE revenue and FX impact, despite some product revenue shifted to the next fiscal year. ◼ Operating income: Up 1.5 billion yen from the April f
Slide 20: Net Sales Trends: Past and Future
From April 2026 presentation (revised) Net Sales Trends: Past and Future ◼ Net sales are expected to return to growth track in 2nd half FY2026/3 and exceed the assumptions made when the Medium-Term Targets were set ◼ FY2027/3 net sales are also to slightly exceed the Medium-Term Targets assumptions
Slide 21: Product Gross Profit: Trends and Future Outlook
From April 2026 presentation (revised) Product Gross Profit: Trends and Future Outlook Product Gross Profit Trends and Future Outlook ◼ FY2026/3 product gross margin decreased by several percentage points compared to April 2025 forecast, due to more-than-forecast volume in the early mass production
Slide 22: Operating Income Trends and Future Outlook
From April 2026 presentation (revised) Operating Income Trends and Future Outlook ◼ FY26/3: Due to decline in product gross margin, both operating income and operating margin fell below the assumption as of April 2025. ◼ FY27/3: Although product gross margin is expected to remain slightly lower than
Slide 23: Market Trend, Background of FY27/3 Forecast, Outlook for FY28/3 and Beyond
Market Trend, Background of FY27/3 Forecast, Outlook for FY28/3 and Beyond Market Trend & Design Win Status FY27/3 Forecast Outlook for FY28/3 and beyond Automotive Net sales are expected to be slightly below the April 2026 forecast Net sales are expected to exceed the assumptions in the Medium- (in
Slide 24: Toward Further Growth
2Q FY2027/3 Consolidated Financial Results ─ Consolidated Financial Results 2Q FY2027/3 ─ Consolidated Earnings Forecast FY2027/3 Toward Further Growth 24
Slide 25: Medium-Term Targets: Progress Update
From April 2026 presentation (revised) Medium-Term Targets: Progress Update Medium-Term Targets (as of April 2025) Medium-Term Targets are formulated based on the assumption of USD/JPY= 130 FY25/3 FY26/3 Medium-Term Progress Update Results Results (Updated) Targets2 (Updated in Oct.2026) Growth expe
Slide 26: Growth Scenario to Date and Going Forward
From April 2026 presentation (revised) Growth Scenario to Date and Going Forward ◼ Building on Design Win Balance, acquired through the “First Transformation (shift in business model and focus areas),” we aim to achieve continued revenue growth (expecting to exceed the previous assumptions) and expa
Slide 27: Semiconductor Market Trends
Semiconductor Market Trends Background of the Growing Demand for Custom SoCs and Solution SoC Business Model Advances in AI and SoC technologies accelerate market expansion (Spiral of evolution) Emergence of new services and applications - The emergence of AI-driven services and applications is incr
Slide 28: For Future Growth: Aggressive Advance Investment
For Future Growth : Aggressive Advance Investment Emergence of new services and applications utilizing AI / Evolution of SoC ecosystem across diverse fields → Innovative customers seek a partner that can lead Silicon-to-System Co-design, rather than simply provide design services. → Socionext contin
Slide 29: Strengthening design and development capabilities through development track record
For Future Growth : Strengthening design and development capabilities through development track record Track record in large scale & advanced technology development （Strengthening design and development capabilities through development track record in multiple fields and products） Entire Design capa
Slide 30: Recent Activities in Leading-Edge Technologies
Recent Activities in Leading-Edge Technologies Publicly announced development activities for leading-edge technologies including advanced processes, Chiplet, etc. ‘Socionext Addresses Datacenter Infrastructure Customer Demands for Advanced SoCs on TSMC A14 Technology’ (July 1, 2026) ‘Socionext Joins
Slide 31: Expanding Business Across Application Markets with a Computer Architecture-Based Platform
From April 2026 presentation (revised) Expanding Business Across Application Markets with a Computer Architecture-Based Platform Physical AI Smart Devices ◼ Advances in agentic AI and Physical AI are expected to drive demand ➢ Socionext leverages its AD/ADAS HPC Industrial （Edge Devices) for SoCs fo
Slide 32: Advanced SoC Developments on Computer Architecture Basis in Diverse Fields
From April 2026 presentation (revised) Advanced SoC Developments on Computer Architecture Basis in Diverse Fields ◼ Common development platform established as system configurations across major applications become similar towards computer architecture-based ◼ Address PPA optimization challenges due
Slide 33: Design Wins Expanding in Each Application Market
From April 2026 presentation (revised) Design Wins Expanding in Each Application Market Physical AI Smart Devices (Edge Devices) Industrial 3/5/7nm 28nm Network 5/6/7/12nm cameras Test & Measurement Printer DSLR/Action Camera ISP (Future Opportunities) ecific IPs, User 5/7nm n-sp Log atio ic, lic Ne
Slide 34: Strengthening Entire Design Capability / Fundamental Reform of Global Structure
From April 2026 presentation Strengthening Entire Design Capability / (revised) Fundamental Reform of Global Structure April 2025～ Continuously strengthen Global Leading Group at the core of Entire Design Fundamental reform of global organizational structure Establish global co-lead structure - Make
Slide 35: Strengthen Executive Structure
Strengthen Executive Structure 【Executive Structure】 CEO Masahiro Koezuka COO EVP,CFO Hisato Yoshida Yutaka Yoneyama Global Leading Group(GLG) Business Development Business Group(BG)・ Production Management Group Corporate Group ・Development Group(DG) Group（BDG） Sales Group(SG) GLG Co-Lead EVP EVP EV
Slide 36: Appendix: Overview
Appendix: Overview • Consolidated Financial Statements • Breakdown of Net Sales (Quarterly) • Socionext’s Business Model 36
Slide 37: Consolidated Statements of Income
Consolidated Statements of Income (JPY in billions) FY27/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 1H Net Sales 99.7 117.0 192.8 221.2 188.5 200.8 99.4 % YoY -3.7% +17.3% +64.7% +14.8% -14.8% +6.5% +14.0% Product revenue 73.1 84.6 156.8 182.9 146.6 161.8 77.6 NRE revenue 23.0 28.1 34.9 37.6 41.0 3
Slide 38: Consolidated Balance Sheets
Consolidated Balance Sheets FY27/3 FY27/3 (JPY in billions) FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY21/3 FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 1H 1H Assets Liabilities and Equity Cash on-hand and in banks1 42.7 46.3 45.1 69.7 72.8 44.5 22.8 Accounts payable-trade 12.0 16.6 23.4 15.8 11.9 15.8 18.9
Slide 39: Breakdown by Application Market (Quarterly)
Breakdown by Application Market (Quarterly) Net Sales1 NRE Revenue1 Automotive Data Center & Networking Automotive Data Center & Networking Smart Devices Industrial Smart Devices Industrial Other Other 100% 100% 3% 2% 3% 5% 3% 3% 2% 3% 4% 5% 6% 5% 6% 6% 8% 6% 4% 4% 6% 4% 6% 4% 4% 8% 7% 5% 5% 8% 7% 7
Slide 40: Breakdown by Geographic Region (Quarterly)
Breakdown by Geographic Region (Quarterly) Net Sales1 NRE Revenue1 US China Japan Other US China Japan Other 100% 100% 3% 3% 4% 7% 8% 6% 7% 8% 9% 7% 8% 9% 8% 7% 7% 5% 7% 5% 6% 8% 6% 12% 11% 12% 11% 10% 11% 10% 12% 11% 12% 11% 12% 9% 12% 10% 15% 13% 20% 22% 21% 26% 23% 29% 14% 31% 23% 80% 80% 17% 34%
Slide 41: Breakdown by Process Node (Quarterly)
Breakdown by Process Node (Quarterly) Net Sales1 NRE Revenue1 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 7nm & beyond 10-16nm 20-28nm 40nm & above/Other 100% 100% 1% 3% 5% 3% 3% 2% 4% 5% 4% 8% 10% 6% 8% 10% 11% 11% 7% 8% 3% 16% 17% 15% 15% 15% 6% 10% 5% 8% 2% 7% 19% 20% 4% 23% 23% 21% 21% 22% 2
Slide 42: Evolution of System Ownership in Industry
Evolution of System Ownership in Industry System value creation is shifting upstream -- from implementation to architecture and system realization Traditional ASIC Solution SoC ASIC designed by ASSP vendors Application / Service Customer Customer Customer System Architecture Ownership Ownership Owne
Slide 43: Technology Evolution: From Chip Design to System Realization
Technology Evolution: From Chip Design to System Realization Optimization scope is expanding from silicon to the entire system Traditional ASIC Solution SoC Optimize Silicon Optimize the Entire Design RTL • Physical • Package • Test Optics • IVR • Power • Thermal • Test • Yield Chip-Level Optimizati
Slide 44: System-to-Silicon: Architecture-Driven System Realization
Architecture-Driven System Realization Power, package, test, yield and AI must be architected from the beginning Application / Service System Architecture System Software (Runtime / middleware / OS / firmware) SoC Architecture Power & Packaging SoC Architecture / Specification Test 顧客側 Yield & Funct
Slide 45: System-to-Silicon: Flexible System Realization Partner
Flexible System Realization Partner Socionext realizes each customer’s system vision through flexible System-to-Silicon Co-Engineering Application / Service Application / Service System Architecture System Architecture System Software Traditional ASIC Customer System Software Implementation-Led SoC
Slide 46: Excerpts from the FY2026/3 financial results presentation (April 2026)
The following slides are excerpts from the FY2026/3 financial results presentation (April 2026) 46
Slide 47: Design Wins Trends
From April 2026 presentation Design Wins Trends ◼ FY2026/3 Design Win Amount totaled 310 billion yen with large-scale projects secured primarily in the DC & NW sector, though the amount was lower than in FY2025/3, mainly due to the factors including: high level of design wins in 4Q FY2025/3, FY2026/
Slide 48: Design Win Balance: Breakdown of Changes
From April 2026 presentation Design Win Balance: Breakdown of Changes ◼ Design Win Balance totaled 1.51 trillion yen in FY2026/3, up 170 billion yen from FY2025/3, due to an increase in the balance of existing projects, offsetting decrease in Design Win Amounts and cancellations ◼ Approx. 60% of Des
Slide 49: Design Win Balance: by Application Market and Region
From April 2026 presentation Design Win Balance: by Application Market and Region ◼ By application market: ‐ Share of Data Center & Networking and Industrial increased in FY2026/3, while Automotive and Other declined. ‐ Aiming to achieve a well-balanced portfolio over medium- to long-term across Aut
Slide 50: Design Win Amount to Revenue / Illustrative Description of Design Win Balance
From April 2026 presentation “Design Win Amount” to Revenue / Illustrative Description of “Design Win Balance” “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 activ
Slide 51: Timeline from Design Win to Mass Production
From April 2026 presentation Timeline from Design Win to Mass Production / Illustrative Description of “Design Win Amount” “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 amo
Slide 52: Transformation into Global Custom SoC Company in Advanced Technology Areas
From April 2026 presentation Transformation into Global Custom SoC Company in Advanced Technology Areas ◼ Through transformation of business and company culture, Socionext has turned into global leading custom SoC company with new and distinctive “Solution SoC” business model Expansion of Business M
Slide 53: Socionext: The Solution SoC Company
socionext’ The Solution SoC Company