As we mark the beginning of 2026, I would like to offer my warmest New Year's greetings. I wish everyone a wonderful year ahead, and truly hope for safety and peace for those all around the world.

There are now only three months left of our 2025 Mid-Term Management Plan. Five years ago, when we completed the previous plan, our operating profit margin had improved to 5%. This year, it has jumped to nearly 10%, a testament to steady, cumulative improvements and the result of various corporate transformations.

We have enhanced data-driven management by overhauling our core systems, including the review of business processes. We have also embedded the "Client Zero" approach, where we first apply advanced technologies within our own company, resulting in the accumulation of valuable know-how. By integrating these achievements and expertise, we have made "NEC BluStellar," NEC's unique framework for customer Digital Transformation (DX), even more distinctive.

In 2025, we strengthened our cybersecurity operations and made progress in integrating and enhancing the functions of group companies, including listed subsidiaries, through measures such as the takeover bid (TOB) for NEC Networks & System Integration Corporation. We also decided to acquire a company in the United States as part of building a new foundation for global growth.

Some may ask, "What kind of company is NEC?" Since we started our journey as a social value creation company, this has been a constant question both inside and outside the organization. As companies undergo transformation, and the position of technology changes in line with global trends, our answer is becoming more clear. NEC is a company that contributes to social DX and economic security through the implementation of technologies centered on AI and security. This role has been widely recognized, and was achieved by combining our world-class technologies, our portfolio spanning the DX and economic security fields, our implementation and operational capabilities, and objective evaluations from various stakeholders, including customers.

This role has resulted in expectations for creating social value and a track record of consistently achieving the numerical targets that we promised. With these factors as a backdrop, our market valuation has now surpassed the heights of our "second founding era," when semiconductors and computers drove our prosperity, and the company is now stepping into new territory.

United as a group, our journey of transformation towards realizing our Purpose— To promote a more sustainable world where everyone has the chance to reach their full potential—has been the right path. However, we are still only halfway there, and in our next mid-term plan, we will aim for even greater heights. To achieve this, we will remain dedicated to creating new value while continuously changing ourselves in a constantly evolving society.

We will provide IT services that enable both security and innovation by enabling the maximum utilization of advanced technologies, especially AI, in secure and safe environments. From the perspective of economic security, we will ensure safety and reliability in communications, defense, and digital infrastructure, ranging from subsea cables to satellites. This contributes not only to the well-being of Japan, but also to the world at large. Globally, we will strengthen business development by targeting winning strategies in areas where we have strengths. Furthermore, we will advance commercialization in new fields, such as drug discovery, where AI is expected to bring about major innovations.

To continue creating value, it is essential that each member of the NEC Group is self-reliant and has high aspirations. Think with a broad perspective, learn with flexible ideas, and act with a strong will. Moreover, have humility and ethics backed by integrity. Only an organization made up of such people can make use of technology properly, earn society's trust, and contribute to promising developments. As CEO, I am deeply committed to this responsibility.

2026 is a pivotal year, summarizing five years of transformation and opening a new chapter of important challenges. Together, we will reflect on the significance we bring to this era and pursue the creation of social value that only NEC can achieve.

We look forward to your continued support of the NEC Group.

January 5, 2026
Takayuki Morita
Representative Director, President and CEO, 
NEC Corporation

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