Unknown Executive

Thank you for taking your time out of your very busy schedule to attend the briefing. I'm going to talk about NEC's 2030 Midterm Management Plan.

First, I'd like to take a look back on the 2025 Midterm Management Plan. We released the 2025 Midterm Management Plan in fiscal year ending March 2022, under which we have been driving corporate transformation based on a 3-pronged approach of purpose, strategy and culture.

The key KPIs were EBITDA growth rate at the average of 9% per year and engagement score of 50%. As we have endeavored to achieve them, we were able to grow our revenue from JPY 2,994 billion to JPY 3,582.7 billion; increased adjusted operating profit from JPY 178.2 billion to JPY 386.8 billion, pushing up adjusted operating margin from 6% to 10.8%.

We have grown EBITDA from JPY 295.8 billion to JPY 530.2 billion, pushing up EBITDA margin to 14.8% at a CAGR of 12.4%, achieving the midterm plan target. ROIC reached 9.1%, exceeding the original target of 6.5%. Regarding the engagement score, while we fell slightly short of the 50% target, it grew to 48%, reaching a level equivalent to the global top tier. So we were able to come this far.

In implementing this 2025 Midterm Management Plan, we have promoted initiatives aimed at maximizing corporate value in both the strategy and culture domain. First, I'd like to talk about the strategy. We announced the value creation model, BluStellar; quickly implemented our in-house generative AI, cotomi; and advanced our DX business. Furthermore, we redefined the new security domain as a priority business, incorporating telecom services and submarine system, shifting resources towards the defense business and strengthening our cybersecurity operations.