Presentation

Financial Results for
Fiscal Year Ended March 31, 2015
April 28, 2015
NEC Corporation
(http://www.nec.com/en/global/ir)
Index
Ⅰ. Financial Results for FY15/3
Ⅱ. Progress on Mid-term Management Plan 2015
(Financial Forecasts for FY16/3)
l Financial Results for FY15/3 (Appendix)
l Financial Forecasts for FY16/3 (Appendix)
l Progress on Mid-term Management Plan 2015 (Appendix)
l Reference (Financial data)
Page 2
© NEC Corporation 2015
Ⅰ. Financial Results for FY15/3
Achievements in FY15/3 and Next Steps
Results
FY15/3
l Expanded businesses in Solutions for Society
•
Proved business record in focus areas: SDN, cloud, Big Data, and
safety
l Established a business foundation for global expansion
Achievements
•
Secured large business projects, and participated in new business
areas
l Established a solid financial foundation
•
Completed transaction to acquire 100% stakes of NEC Fielding, Ltd.,
realigned development and manufacturing sites, and initiated
measures to improve business processes
l Accelerate and materialize growth plans
Next Steps
•
l Enhance efforts for improving profitability
•
Page 4
Continue to invest in focus areas and international markets
Initiate business process innovation for further efficiency
© NEC Corporation 2015
Summary of Financial Results for FY15/3
Results
FY15/3
l Approx. 2% increase based on existing business
Net Sales
YoY -3.5%
Difference from forecast
-64.5B Yen
Operating
Income
YoY +21.9B Yen
Difference from forecast
+8.1B Yen
Net Income
YoY +23.6B Yen
Difference from forecast
+22.3B Yen
Page 5
• Significant increase in the Public business and growth in
the Telecom Carrier business
l Decreased in Others due to deconsolidation of
NEC BIGLOBE, Ltd.
l Outperformed company forecast for a third
consecutive year
• Increased in all 5 segments, particularly in the Public
business
• Improved profitability of mobile handsets business
l Outperformed company forecast and increased net
income YoY for a third consecutive year
•
Gain from acquisition of minority shareholder interests by making
NEC Fielding, Ltd. a wholly-owned subsidiary
l Decided on a 4 yen dividend per share
© NEC Corporation 2015
Results
FY15/3
Summary of Financial Results for FY15/3
(Billions of Yen)
Full Year
Q4 <January to March>
FY14/3
FY15/3
Actual
Actual
YoY
FY14/3
FY15/3
Actual
Actual
YoY
Difference
from
Jan 29
Net Sales
959.6
933.5
- 2.7%
3,043.1
2,935.5
-3.5%
- 64.5
Operating Income
82.5
92.4
+10.0
106.2
128.1
+21.9
+8.1
8.6%
9.9%
3.5%
4.4%
63.7
75.7
69.2
112.1
+43.0
+22.1
6.6%
8.1%
2.3%
3.8%
48.8
34.5
33.7
57.3
+23.6
+22.3
5.1%
3.7%
1.1%
2.0%
149.3
116.1
% to Net Sales
Ordinary Income
% to Net Sales
Net Income
% to Net Sales
Free Cash Flows
Note:
+12.1
- 14.3
- 33.2
Average exchange rates for Q4 of FY15/3 $1= ¥118.78, €1= ¥139.75
(Assumed exchange rates for Q4 of FY15/3 $1 = ¥115, €1= ¥140)
Average exchange rates for FY15/3 $1= ¥108.42, €1= ¥139.68)
(Average exchange rates for FY14/3 $1= ¥99.61, €1= ¥132.83)
Page 6
© NEC Corporation 2015
55.2
40.4
- 14.8
Results
FY15/3
Results by Segment for FY15/3
(Billions of Yen)
Net Sales
Public
Operating Income
% to Net Sales
Net Sales
Enterprise
Operating Income
% to Net Sales
Net Sales
Telecom Carrier
Operating Income
% to Net Sales
Net Sales
System Platform
Operating Income
% to Net Sales
Net Sales
Others
Operating Income/Loss
% to Net Sales
Adjustment
Operating Loss
Net Sales
Total
Operating Income
% to Net Sales
Page 7
Q4 <January to March>
FY14/3
FY15/3
YoY
Actual
Actual
271.0
295.9
+ 9.2%
26.5
37.1
+ 10.6
9.8%
81.5
6.0
7.4%
219.0
28.5
13.0%
244.3
20.9
8.6%
143.7
9.6
6.7%
12.5%
82.6
5.5
7.9%
+ 1.3%
- 0.5
6.7%
236.9
36.6
+ 8.2%
+ 8.0
725.8
60.3
8.3%
- 12.8%
- 2.6
8.6%
105.1
9.9
272.3
6.5
2.4%
15.4%
213.0
18.3
FY14/3
Actual
738.4
58.6
780.8
30.7
3.9%
- 26.9%
+ 0.3
9.4%
525.9
-1.4
-0.3%
Full Year
FY15/3
Actual
821.9
74.8
YoY
Difference
from
Jan 29
+ 11.3%
+ 16.2
+ 21.9
+ 1.8
- 0.7%
+ 1.8
- 4.5
- 0.7
+ 2.0%
+ 1.6
- 29.9
- 4.0
- 6.6%
+ 0.7
- 46.1
- 3.6
- 28.9%
+ 5.4
- 5.9
+ 3.0
9.1%
270.5
8.3
3.1%
740.2
62.0
8.4%
728.9
31.4
4.3%
374.1
4.0
1.1%
-9.1
-14.9
- 5.8
-48.6
-52.4
- 3.8
+ 11.6
959.6
82.5
933.5
92.4
- 2.7%
+ 10.0
3,043.1
106.2
2,935.5
128.1
- 3.5%
+ 21.9
- 64.5
+ 8.1
8.6%
9.9%
© NEC Corporation 2015
3.5%
4.4%
Results
FY15/3
Public Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
821.9
Sales
738.4
680.7
Operating
Income +8.5%
Ratio
▐ Sales
▐ Operating Income 74.8
+11.3%
9.1%
7.9%
49.0
FY13/3
Page 8
(+16.2)
r Improved due to a sales increase and
a decrease in loss making projects
74.8
58.6
FY14/3
(+11.3%)
r Increased due to steady sales from
government and public areas
7.2%
Operating
Income
821.9
FY15/3
© NEC Corporation 2015
Results
FY15/3
Enterprise Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
272.3
270.5
+8.2%
-0.7%
▐ Sales
270.5
(-0.7%)
s Decreased in manufacturing despite
steady sales in retail and services
251.6
Operating
Income
Ratio
2.2%
Operating
Income
2.4%
▐ Operating Income
3.1%
8.3
6.5
Page 9
FY14/3
(+1.8)
r Improved mainly due to cost efficiency
and higher profitability despite a sales
decrease
5.5
FY13/3
8.3
FY15/3
© NEC Corporation 2015
Results
FY15/3
Telecom Carrier Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
725.8
709.3
8.3%
8.4%
FY13/3
Page 10
60.3
FY14/3
(+1.6)
r Improved due to a sales increase
particularly in the international market
Operating
Income
71.6
(+2.0%)
w Japan: Remains flat
▐ Operating Income 62.0
+2.0%
10.1%
740.2
r International: Increased in submarine
cable systems and mobile backhaul
740.2
Operating
Income +2.3%
Ratio
▐ Sales
62.0
FY15/3
© NEC Corporation 2015
Results
FY15/3
System Platform Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
780.8
744.4
Operating
Income
Ratio
FY13/3
Page 11
(-6.6%)
s Decreased in business PCs
▐ Operating Income 31.4
-6.6%
3.9%
4.3%
30.7
31.4
Operating
Income
32.7
728.9
728.9
+4.9%
4.4%
▐ Sales
FY14/3
(+0.7)
r Increased due to improvement from
the intake of NEC Fielding, Ltd. and
consolidation of 4 companies into
NEC Platforms, Ltd., despite a sales
decrease.
FY15/3
© NEC Corporation 2015
Results
FY15/3
Others
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
685.7
374.1
(-28.9%)
s Decreased mainly due to
deconsolidation of NEC BIGLOBE, Ltd.
-23.3%
Operating
Income
Ratio
525.9
-28.9%
374.1
2.5%
Operating
Income
/Loss
- 0.3%
▐ Operating Income
1.1%
16.9
-1.4
FY13/3
Page 12
▐ Sales
FY14/3
4.0
(+5.4)
r Improved due to better profits in the
mobile handset business, despite a
decrease from business
deconsolidation
4.0
FY15/3
© NEC Corporation 2015
Results
FY15/3
Net Income Change (Year on Year)
(Billions of Yen)
Difference
from Jan 29
Provision for contingent loss +5.6
Equity in earnings of affiliates +5.4
Foreign Exchange gains
+3.9
Gain on sales of subsidiaries
and affiliates’ stocks
-52.2
Business structure improvement
expenses
+13.5
Minority interests in income/loss +9.2
Impairment loss
+7.0
Improve in nonoperating income/loss
+21.1
Others
-19.4
+14.0
+0.2
FY14/3
33.7
Improve in
operating income
+21.9
+8.1
Page 13
Public
+16.2
Others
+5.4
Enterprise
+1.8
Telecom Carrier
+1.6
System Platform +0.7
Adjustment
-3.8
© NEC Corporation 2015
FY15/3
57.3
Ⅱ. Progress on Mid-term Management Plan 2015
(Financial Forecasts for FY16/3)
Mid-term Plan
2015
Mid-term Management Policy
(1) Focus on Solutions for Society
Transformation into a social value innovator
• Focusing of management resources on businesses that advance social infrastructure through ICT
• Create new business models with the understanding that social problems provide an opportunity
for growth
(2) Focus on Asia, promotion of “locally-led” business
Creation of a foundation for growth as a company able to
compete globally
•Focus on emerging and developing countries, particularly in Asia
•Realization of increased sensitivity to local needs, increased business speed
(3) Stabilize our financial foundation
• Enhanced cost competitiveness
• Creation of an earnings structure that produces operating income of 150 billion yen and free cash
flows of 100 billion yen
• Hybrid finance to ensure financial reserve
Achieve 5% in operating margin and 25% in international sales ratio
*Mid-term plans as of April 26, 2013
Page 15
© NEC Corporation 2015
Steps in the Mid-term Management Plan 2015
FY16/3
FY14/3
Preparation
FY15/3
Actualization
Reorganize structure
by customer
Focus on growth
areas
Strengthen global
business
New corporate message
and 7 themes
Hybrid finance
Strengthen global
competitiveness
Rebuild corporate
culture
Page 16
© NEC Corporation 2015
Growth
Mid-term Plan
2015
Changes in Market Environment from 2013
▐ Positive Factors
l
Expanded demand for public infrastructure investment in
Japan
• Expanded business with field communication systems,
firefighting emergency radio/command systems and “my
number” projects
▐ Challenging Factors
l
Slower market growth in SDN for telecom carriers and
energy related business
• Global telecom carriers continue to show a strong interest in
implementing SDN
• The energy market anticipates growth in response to the
‘Electricity system reform’
l
Page 17
Hikes in material costs from yen depreciation
© NEC Corporation 2015
Mid-term Plan
2015
Forecasts
FY16/3
Summary of Financial Forecasts for FY16/3
▐ Increase sales and profits, achieve 65.0billion yen in net
income
Achieve forecasts for FY16/3 and aim for mid-term plan target
l
Differences
Full Year
Net Sales
Operating Income
% to Net Sales
Ordinary Income
% to Net Sales
Net Income
% to Net Sales
Full Year
between
FY14/3
FY15/3
FY16/3
Actual
Actual
Forecast
3,043.1
2,935.5
3,100.0
106.2
128.1
135.0
3.5%
4.4%
4.4%
69.2
112.1
120.0
2.3%
3.8%
3.9%
33.7
57.3
65.0
1.1%
2.0%
2.1%
FY16/3
YoY
forecast and
midterm plan
+ 5.6%
+ 6.9
+ 7.9
+ 7.7
Public
% to Net Sales
-100.0
-15.0
+ 5.0
Enterprise
ROE
55.2
4.8%
40.4
7.5%
80.0
8%
+ 39.6
-
- 20.0
- 2pt
Net Sales
Operating Income
% to Net Sales
Telecom Carrier
Net Sales
Operating Income
% to Net Sales
System Platform
Net Sales
Operating Income
% to Net Sales
Others
Free Cash Flows
Net Sales
Operating Income
Adjustment
Total
Net Sales
Operating Income/loss
% to Net Sales
Operating
Loss
Net Sales
Operating Income
% to Net Sales
FY14/3
FY15/3
FY16/3
Actual
Actual
Forecast
738.4
58.6
821.9
74.8
865.0
86.0
7.9%
9.1%
9.9%
272.3
6.5
270.5
8.3
290.0
11.0
2.4%
3.1%
3.8%
725.8
60.3
740.2
62.0
780.0
64.0
8.3%
780.8
30.7
3.9%
525.9
△ 1.4
8.4%
728.9
31.4
4.3%
374.1
4.0
8.2%
760.0
33.0
4.3%
405.0
4.0
-0.3%
1.1%
1.0%
- 48.6
3,043.1
106.2
- 52.4
2,935.5
128.1
- 63.0
3,100.0
135.0
3.5%
4.4%
4.4%
YoY
+ 5.2%
+ 11.2
+ 7.2%
+ 2.7
+ 5.4%
+ 2.0
+ 4.3%
+ 1.6
+ 8.2%
0.0
- 10.6
+ 5.6%
+ 6.9
Note: Assumed exchange rates for FY16/3 $1=¥115, €1=¥130
Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Net income in FY16/3 forecast: Net income attributable to Owner of the Parent
Page 18
© NEC Corporation 2015
Forecasts
FY16/3
Transition in Financial Results and Forecasts
Sales
<International sales ratio>
3,583.1
PCs for consumer
use became an
equity method affiliate
<20%>
3,115.4
<15%>
3,036.8
<16%>
3,071.6
<16%>
2,550.0
2,630.0
50.9
FY10/3
FY11/3
2,730.0
3,043.1
<19%>
2,890.0
2,935.5
<20%>
3,100.0
<24%>
+approx.2%
+approx.6%
114.6
106.2
FY13/3
FY14/3
73.7
FY12/3
YoY
Sale of NEC BIGLOBE, Ltd.
Operating Income
57.8
(Billions of Yen)
+approx.6%
Sales from existing business
2,600.0
Sale of NEC Mobiling, Ltd.
End new development
of Smartphones
NEC Electronics Corporation became
an equity method affiliate
Midterm Plan 2015
128.1
FY15/3
135.0
FY16/3
Forecast(*)
• Forecasts as of April 28, 2015
Page 19
© NEC Corporation 2015
Forecasts
FY16/3
Segment Forecasts and Midterm Plan
(Billions of Yen)
Operating Income/Loss
Sales
150.0
3,071.6
3,043.1 3,000.0
2,935.5
Enterprise
Telecom
Carrier
System
Platform
680.7
251.6
709.3
744.4
738.4
272.3
725.8
780.0
800.0
685.7
525.9
FY13/3 FY14/3
Enterprise
290.0
270.5
Telecom
Carrier
5.5
71.6
800.0
380.0
728.9
374.1
FY15/3 FY15/3
(Initial
Forecast)
520.0
FY16/3
(Midterm)
System
Platform
32.7
Others
16.9
Adjustment
-61.0
760.0
73.0
74.8
<4%>
9.0
8.3
<10%>
66.0
62.0
86.0
58.6
6.5
60.3
780.0
740.2
780.8
775.0
Others
865.0
821.9
800.0
770.0
<Operating
income ratio>
<8%>
49.0
300.0
275.0
128.1
106.2
Public
Public
120.0
114.6
3,200.0 3,100.0
135.0
11.0
64.0
<5%>
30.7
35.0
31.4
-1.4
1.0
4.0
-48.6
-64.0
<4%>
-52.4
33.0
4.0
-63.0
405.0
FY16/3
(Forecast)
FY13/3 FY14/3
FY15/3
(Initial
Forecast)
FY15/3
FY16/3
(Midterm)
FY16/3
(Forecast)
* Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Page 20
© NEC Corporation 2015
Forecasts
FY16/3
Public
▐
Continue to build solid business in Japan, expand business in the
international market
l
Leverage competitive assets and market opportunities to expand
business
•
l
Expand in “my number” projects,
2020 Tokyo Olympics/Paralympics, and
Sales
Big Data analysis (face recognition,
crowd behavior analysis, etc.) for a safe 821.9
780.0
and secure society
Operating
•
865.0
+5.2%
income ratio
Establishing global expansion
•
(Billions of Yen)
YoY
9.9%
9.1%
Predictive Monitoring and Diagnostics
System for key facilities, water
management, total solution for airports
Solution for authentication,
cyber security, etc.
74.8
8%
86.0
Operating
income
FY15/3
FY16/3
(Midterm)
FY16/3
(Forecast)
* Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Page 21
© NEC Corporation 2015
Forecasts
FY16/3
Enterprise
▐
Recovering momentum through the latest order trends and continuing to
focus on improving profitability
l
Expect a year-on-year increase in manufacturing, retail and services
in FY16/3
(Billions of Yen)
Sales
YoY
110%
300.0
Enterprise Order trend
FY15/3, YoY
270.5
Operating
income ratio
100%
FY15/3
Q2
Q3
Q4
4%
+7.2%
3.8%
3.1%
8.3
Q1
290.0
11.0
Operating
income
FY16/3
(Midterm)
FY16/3
(Forecast)
* Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Page 22
© NEC Corporation 2015
Forecasts
FY16/3
Telecom Carrier
▐
Slower-than expected SDN commercialization, aim to strengthen sales
and support forces with NetCracker and expand business
l
Telefonica Brazil (Vivo) began a massive trial for commercial
broadband networks using NEC’s vCPE solution
vCPE ： virtualized Customer Premises Equipment
(Billions of Yen)
(B$)
SDN/NFV market
for telecom carriers
Sales
Actual market size and
growth outlook*2
800.0
740.2
NFV ： Network Functions Virtualization
7.2
780.0
10%
Operating
income ratio
+5.4%
8.4%
8.2%
62.0
64.0
4.5
Assumed market size in
Midterm Plan *1
YoY
2.3
0.5
2013
*1
*2
Operating
income
1
2014
2015
2016
2017
FY15/3
NEC assumption
Infonetics. Market Size and Forecast ： Carrier SDN and NFV Hardware and Software (October 2014)
FY16/3
(Midterm)
FY16/3
(Forecast)
* Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Page 23
© NEC Corporation 2015
Forecasts
FY16/3
System Platform
▐
Challenged by a delay in expanding global business models and a slow
response to yen depreciation
▐
Focus on expanding solution platform
l
l
l
Focus on “my number” demand, and
replacement demand for
WindowsServer2003
Continue to drive the SDN market in
Japan and expand services in
the international markets
(Billions of Yen)
Sales
800.0
728.9
Establish a new platform for IoT,
show growth in the next midterm plan
Operating
income ratio
YoY
760.0
5%
+4.3%
4.3%
4.3%
31.4
33.0
IoT : Internet of Things
Operating
income
FY15/3
FY16/3
(Midterm)
FY16/3
(Forecast)
* Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Page 24
© NEC Corporation 2015
Forecasts
FY16/3
Others
▐
Deconsolidation of NEC BIGLOBE, Ltd.
▐
Slower-than-expected market formation and expansion in energy
business
<Strategies for Energy Business Expansion>
Expand the business field with the ‘Electricity system reform’
l
l
Expand SI for packaged software for
new electricity vendors
Expand the energy storage system
business combining ICT and energy
technologies
•
Sales
YoY
405.0
374.1
Contribute to resolving issues related
to grid connection suspension for
renewable energy
(Billions of Yen)
520.0
4%
Operating
income ratio
+8.2%
1.1%
4.0
FY15/3
1.0%
Operating
income
FY16/3
(Midterm)
4.0
FY16/3
(Forecast)
* Mid-term plans as of April 26, 2013. Forecasts as of April 28, 2015
Page 25
© NEC Corporation 2015
Strategic Investment in the International / Focal Business
Forecasts
FY16/3
▐ Further invest in SDN and energy to achieve growth in focal
businesses and an international sales ratio of 25%
Strengthen GSD/SI in the
international market
GSD : Global Safety Department
Cloud
Safety
SDN
Strategic Investment
+15.0B yen
(YoY)
Big
Data
Promotion expenses for global
business development
Energy
Cyber
Security
Further drive strategic investment by 15.0B yen year on year
Forecasts as of April 28, 2015, include investment in focus business
Page 26
© NEC Corporation 2015
Measures to enhance cost competitiveness
Forecasts
FY16/3
▐ Streamline back-office operations for cost
optimization
Streamline
corporate/
administrative
operations with
NEC Management
Partners, Ltd.
Streamline and
standardize
operations
Efficient operations
Reduce operation by 30%
More sales, better profits
Apply
standardized
operations to the
NEC Group
Relocation to front-office functions
Expected outcome
Efficient workflow for
front-office functions
Becoming a globally competitive organization
* Forecasts as of April 28, 2015
Page 27
© NEC Corporation 2015
Focus on Solutions for Society
▐
▐
▐
▐
Mid-term Plan
2015
SDN
l
Marketing and conducting field trials with global carriers
l
Implementing SDN for enterprises, governments and data centers
Cloud
l
Launched Kanagawa Data Center
l
Providing NEC Cloud IaaS
Big Data
l
Delivered a Prediction Monitoring and Diagnostic System to
Electric Power Co., Inc.
l
Conducting field trials of a water leak system in the United States
Chugoku
Safety
l
Began full operation of the cyber security factory
l
Awarded No.1 position in face and fingerprint
recognition by the NIST benchmark test
l
Delivered the world’s first integrated disaster prevention system featuring crowd
behavior analysis technology
l
Delivered core systems to the Interpol Digital Crime Centre
Page 28
© NEC Corporation 2015
Establish Foundation for Global Expansion
▐
Telecom Carrier
l
Large projects for submarine cable systems
•
Concluded a contract to construct the world’s first
submarine cable system crossing South Atlantic Ocean
l
A business contract for microcell with Zamtel, Ltd.
l
Successfully completed application of OSS for
major business lines at Swisscom
•
▐
Mid-term Plan
2015
Discuss to collaborate in further expand application
of next-generation TOMS and MANO
New Business Opportunities
OSS ： Operation Support System
TOMS ： Telecom Operations & Management Solutions
MANO ： Management and Network Orchestration
l
Applied face recognition technology to a monitoring
system in Tigre, Argentina
l
Delivered a transit fare system for public transportation in Dhaka, Bangladesh
l
Won an end-user computing contract in Australia
l
Joined to launch smart waste collection service in Santander, Spain
Page 29
© NEC Corporation 2015
in Zambia
Summary
NEC aims to achieve full-year forecasts for a
fourth consecutive year and intends to increase
dividend
We strive for growth in the final year of our
three-year Midterm Management Plan 2015
NEC prepares for a voluntary adoption of IFRS
(International Financial Reporting Standards) from FY2017/3
* Forecasts as of April 28, 2015
Page 30
© NEC Corporation 2015
© NEC Corporation 2015
Page2011
32
© NEC Corporation
© NEC Corporation 2015
Financial Results for FY15/3 (Appendix)
Results for FY15/3 by Segment ( three-year transition )
Results
FY15/3
(Billions of Yen)
Net Sales
3,071.6
Public
Enterprise
Telecom
Carrier
680.7
251.6
3,043.1
738.4
Operating Income/Loss
2,935.5
821.9
709.3
106.2
Public
49.0
Enterprise
5.5
272.3
270.5
725.8
Telecom
Carrier
71.6
740.2
System
Platform
744.4
780.8
System
Platform
32.7
Others
16.9
728.9
Others
685.7
FY13/3
Page 34
374.1
FY14/3
FY15/3
74.8
58.6
6.5
© NEC Corporation 2015
8.3
60.3
62.0
30.7
31.4
4.0
-1.4
Adjustment
525.9
128.1
114.6
-61.0
-48.6
-52.4
FY13/3
FY14/3
FY15/3
Results
FY15/3
Financial Results for FY15/3 by Segment
(Billions of Yen)
Net Sales
Operating Income
Others
Public
13%
28%
Operating Income
for FY15/3
Public
74.8
Telecom
Carrier
128.1
62.0
Sales for
FY15/3
Enterprise
9%
System
Platform
2,935.5
31.4
System Platform
Enterprise
25%
8.3
Telecom Carrier
25%
Page 35
© NEC Corporation 2015
Others
4.0
Results
FY15/3
Sales Change (Year on Year)
Japan: Remains flat
International: Increased in Mobile backhaul and
submarine cable systems
Steady sales from government
and public business
Telecom Carrier
+14.4 (+2.0%)
Public
(Billions of Yen)
Decrease in business PCs
System Platform
-51.9 (-6.6%)
+83.5 (11.3%)
FY14/3
3,043.1
Enterprise
-1.8 (-0.7%)
Deconsolidation of
NEC BIGLOBE, Ltd.
Others
-151.8
Decrease in manufacturing
despite steady growth in
retail and services
FY15/3
2,935.5
Page 36
© NEC Corporation 2015
Results
FY15/3
Operating Income Change (Year on Year)
(Billions of Yen)
Improve from intake of NEC Fielding, Ltd., and
consolidation effect of NEC Platforms, Ltd.,
while sales decreased
Improve in mobile handset business even with
deconsolidation of NEC BIGLOBE, Ltd.
Others
System
+5.4
Platform
+0.7
Improve due to cost efficiency
while sales decreased
Enterprise
+1.8
FY15/3
128.1
Adjustment
-3.8
Telecom Carrier
+1.6
FY14/3
106.2
Public
+16.2
Improve due to international
sales increase
Improve due to sales increase and a
decrease in loss making projects
Page 37
© NEC Corporation 2015
Increase in strategic
investments
Results
FY15/3
International Sales
(Billions of Yen)
YoY
Greater
China,
APAC
8.4%
EMEA
4.7%
Japan
80.0%
239.5
72.5
127.4
136.6
35.5
38.7
Q4
9
months
91.9
97.9
FY14/3
FY15/3
The
Americas
6.9%
246.4
202.3
203.9
49.9
54.5
152.5
149.4
+2.9%
74.6
Q4
Q4
+9.3%
+9.1%
9
months
167.0
FY14/3
171.8
9
months
FY15/3
FY14/3
Q4 <January to March>
FY14/3
FY15/3
YoY
Actual
Actual
International sales
％ to Net Sales
157.8
167.8
16.4%
18.0%
6.3%
FY14/3
Actual
569.2
18.7%
FY15/3
Full year
FY15/3
Actual
586.8
YoY
3.1%
20.0%
* Sales are classified by country or region based on customer locations.
The rates of circle graphs are calculated by full year.
Page 38
© NEC Corporation 2015
Results
FY15/3
Financial Position Data
(Billions of Yen)
End of March End of March
2014
2015
2,505.3
2,620.7
+115.3
Net Assets
767.7
884.2
+116.5
Interest-bearing debt
575.2
520.8
-54.4
Shareholders' Equity
695.9
823.7
+127.7
Total Assets
Equity ratio(%)
27.8%
31.4%
+3.6pt
D/E ratio (times)
0.83
0.63
+0.20pt
Net D/E ratio (times)
0.53
0.41
+0.12pt
206.6
181.1
Cash and cash equivalents
Page 39
Difference
from March
2014
© NEC Corporation 2015
-25.5
Results
FY15/3
<Ref.> Balance Sheets (At the end of March, 2015)
(Billions of Yen)
<Compared to end of March 2014>
Total Assets 2,620.7(+115.3)
Current Assets
1,576.8
Liabilities
1,736.5
Compared to
end of March
2014
-1.2
+73.9
Increase in trade notes and accounts
receivable-trade
Noncurrent Assets
1,043.9
+41.4
Net Assets
884.2
+116.5
Recorded net income and an
increase in re-measurements of
net defined benefit asset
Increase in asset for
Net defined benefit asset
Page 40
© NEC Corporation 2015
Results
FY15/3
Free Cash Flows
(Billions of Yen)
200
150
100
Cash flows from operating activities
Free cash flows
143.7
Cash flows from investment activities
-Business structure improvement
+Gain from sale of LCD panel patent
+Re-measurements of defined benefit plans
94.1
42.0
87.9
55.2
40.4
50
0
-38.9
-50
-M&A
-101.7
-100
-M&A
-Fund for Renesas
Electronics Corp.
+Gain from sale of
stocks
-150
-200
FY13/3
-47.5
-Acquisition of trust beneficiary rights
- Intake of NEC Fielding, Ltd.
+Sale of NEC BIGLOBE, Ltd.
+Gain from sale of stocks
FY14/3
FY15/3
* Forecasts as of April 28, 2015
Page 41
© NEC Corporation 2015
Financial Forecasts for FY16/3 (Appendix)
Forecasts
FY16/3
Financial Forecasts by Segment (three-year transition)
(Billions of Yen)
Net Sales
Operating Income/Loss
128.1
3,043.1
Public
Enterprise
Telecom
Carrier
System
Platform
Others
738.4
272.3
725.8
780.8
3,100.0
106.2
2,935.5
821.9
270.5
740.2
865.0
Public
Enterprise
290.0
Telecom
Carrier
58.6
135.0
86.0
74.8
8.3
11.0
60.3
62.0
64.0
30.7
-1.4
- 48.6
31.4
4.0
33.0
4.0
- 52.4
- 63.0
FY14/3
FY15/3
6.5
780.0
System
Platform
Others
728.9
760.0
525.9
374.1
405.0
FY14/3
FY15/3
FY16/3
Forecasts(*)
Adjustment
FY16/3
Forecasts(*)
* Forecasts as of April 28, 2015
Page 43
© NEC Corporation 2015
Forecasts
FY16/3
Financial Forecasts for FY16/3 by Segment
(Billions of Yen)
Net Sales
Operating Income
Others
Public
13%
28%
Operating Income
Forecast for FY16/3
Public
135.0
86.0
Telecom
Carrier
Enterprise
64.0
9%
Sales Forecast
for FY16/3
System
Platform
3,100.0
33.0
Enterprise
System Platform
11.0
25%
Others
4.0
Telecom Carrier
25%
* Forecasts as of April 28, 2015
Page 44
© NEC Corporation 2015
Forecasts
FY16/3
Public Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
865.0
821.9
738.4
(+5.2%)
r Increase due to steady sales mainly
from the government and public areas
9.9%
▐ Operating Income 86.0
9.1%
7.9%
Operating
Income
865.0
+5.2%
+11.3%
Operating
Income
Ratio
▐ Sales
86.0
74.8
(+11.2)
r Improve due to sales increase,
cost reductions and a decrease in
loss making projects
58.6
FY14/3
FY15/3
FY16/3
Forecast(*)
* Forecasts as of April 28, 2015
Page 45
© NEC Corporation 2015
Forecasts
FY16/3
Enterprise Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
290.0
272.3
▐ Sales
290.0
(+7.2%)
r Increase in manufacturing, retail and
service industries
270.5
Operating
-0.7%
Income
Ratio
2.4%
▐ Operating Income 11.0
+7.2%
3.1%
3.8%
11.0
(+2.7)
r Improve due to sales increase and
better profitability
Operating
Income
6.5
FY14/3
8.3
FY15/3
FY16/3
Forecast(*)
* Forecasts as of April 28, 2015
Page 46
© NEC Corporation 2015
Forecasts
FY16/3
Telecom Carrier Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
+5.4%
+2.0%
Operating
Income
Ratio
8.3%
8.4%
FY14/3
62.0
FY15/3
(+5.4%)
s Japan: Slightly decrease
▐ Operating Income 64.0
Operating
Income
60.3
780.0
r International: Increase mainly in focal
areas such as mobile backhaul,
TOMS, and submarine cable systems
780.0
740.2
725.8
▐ Sales
8.2%
(+2.0)
r Improve due to sales increase mainly
in international business
64.0
TOMS: Telecom Operations and Management Solutions
FY16/3
Forecast(*)
* Forecasts as of April 28, 2015
Page 47
© NEC Corporation 2015
Forecasts
FY16/3
System Platform Business
Billions of Yen (YoY)
(Billions of Yen)
YoY
Sales
780.8
760.0
728.9
Operating
Income
Ratio
3.9%
4.3%
Operating
Income
30.7
FY14/3
760.0
(+4.3%)
r Increase in solution platform including
servers, network and software
▐ Operating Income 33.0
+4.3%
-6.6%
▐ Sales
(+1.6)
r Improve due to sales increase and
cost reduction
4.3%
33.0
31.4
FY15/3
FY16/3
Forecast(*)
* Forecasts as of April 28, 2015
Page 48
© NEC Corporation 2015
Forecasts
FY16/3
Others
Billions of Yen (YoY)
(Billions of Yen)
Sales
YoY
▐ Sales
405.0
(+8.2%)
r Increase in energy business while
sales for mobile handsets decrease
525.9
374.1
Operating
Income -28.9%
Ratio
- 0.3%
Operating
Income
/Loss
▐ Operating Income
405.0
+8.2%
1.1%
1.0%
4.0
4.0
4.0
(+/- 0)
w Remain flat with improvement in
profitability for energy business
offsetting one-time, patents-related
income in FY15/3
-1.4
FY14/3
FY15/3
FY16/3
Forecast(*)
* Forecasts as of April 28, 2015
Page 49
© NEC Corporation 2015
Forecasts
FY16/3
Sales Change (Year on Year)
(Billions of Yen)
Increase in energy business
while mobile handset business
decreases
Increase in solution platform
(servers, network and software)
System
Platform
+31.1
A slight decrease in sales in Japan,
Increase in MBH, TOMS, and submarine
cable systems in international markets
MBH: Mobile Backhaul
Increase in manufacturing,
retail and services
Telecom Carrier
+39.9
Others
+30.9
(+8.2%)
FY16/3
Forecast*
3,100.0
(+4.3%)
(+5.4%)
Enterprise
+19.5 (+7.2%)
FY15/3
2,933.5
Increase in government and public
Public
+43.1(+5.2%)
* Forecasts as of April 28, 2015
Page 50
© NEC Corporation 2015
Forecasts
FY16/3
Operating Income Change (Year on Year)
Improve due to sales increase
and more cost efficiency
Improve due to sales increase
and better profitability
Enterprise
+2.7
Remain flat with improvement
in profitability for energy business
offsetting one-time, patents-related
income in FY15/3
System
Platform Others
+/-0
+1.6
(Billions of Yen)
Increase in costs
Adjustment
-10.6
FY16/3
Forecast*
135.0
Telecom
Carrier +2.0
FY15/3
128.1
Public
+11.2
Improve due to sales increase
In the international business
Improve due to sales increase,
cost efficiency and a decrease in
Loss making projects
* Forecasts as of April 28, 2015
Page 51
© NEC Corporation 2015
Forecasts
FY16/3
Net Income Change (Year on Year)
Public
Enterprise
Telecom Carrier
System Platform
Adjustment
+11.2
+2.7
+2.0
+1.6
-10.6
FY15/3
Improve in
Improve in non-operating
operating income/loss
+1.0
income +6.9
Decrease in retirement
benefit expenses(+10.4),
decrease in equity in earnings
of affiliates and foreign
exchange gain
(Billions of Yen)
FY16/3
Forecast(*)
Others
-0.2
57.3
65.0
Decrease in
minority interests
in income/loss
and improvement
in extraordinary
income/loss
Forecasts as of April 28, 2015
Net income in FY16/3 forecast: Net income attributable to Owner of the Parent
Page 52
© NEC Corporation 2015
Capital Expenditure, Depreciation and R&D expenses
(Billions of Yen)
FY14/3
FY15/3
Actual
Actual
*
Capital Expenditure
Depreciation
R&D expenses
% to Net Sales
YoY
FY16/3
YoY
YoY
Forecasts
40.8
37.4
-8.3%
50.0
+33.6%
45.2
48.5
+7.4%
50.0
+3.1%
142.7
134.2
-6.0%
145.0
+8.0%
4.7%
4.6%
4.7%
* Not including acquisition of trust beneficiary rights
Capital Expenditure
50.0
40.8
37.4
Depreciation
45.2
48.5
R&D expenses
50.0
142.7
134.2
+3.1%
＋33.7％
+8.0%
％ to Net
Sales
4.7%
FY14/3
FY15/3
FY16/3
Forecast(*)
FY14/3
FY15/3
FY16/3
Forecast(*)
145.0
FY14/3
4.6%
4.7%
FY15/3
FY16/3
Forecast(*)
* Forecasts as of April 28, 2015
Page 53
© NEC Corporation 2015
Progress on Mid-term Management Plan 2015 (Appendix)
Mid-term Plan
2015
Focus on Solutions for Society
l Delivered system to NEXCO Central, Ltd., and the town of Nishihara in
Okinawa Prefecture, Japan
l Delivered a PMDS to the Shimane Nuclear Plant for
Chugoku Electric Power CO., Ltd.
l Launched commercial vMVNO solutions for MVNO providers in Japan
l Launched water leakage monitoring service commercially
for early leakage detection
l Cooperating with KT Corp in the SDN field
l Conducted vCPE trial with Telecom Australia
l Helped to launch smart waste collection service in
Santander, Spain
l Selected as NTT DOCOMO's Partner for commercializing
Network Virtualization Technology
l Cooperating with University of Texas in a social
infrastructure project including water management
l Established a strong global sales/ support
force with NetCracker in SND/NFV
Big
Data
SDN
l Formed a partnership Foxconn for data
datacenter services
l Telefonica Brazil began a massive trial
using NEC's Network Functions
Virtualization (NFV) technology over the
commercial broadband network
Safety
Cloud
l Delivered ‘NEC Cloud IaaS’ to Sumitomo Life
Insurance Group and Meiji Freshness Network
etc.
l Launched “cyber security factory”
l Awarded No.1 position in face and fingerprint
recognition benchmark test by NIST
l Delivered a remote monitoring and maintenance
system for an IHI mechanical multistory parking
lot
Energy
l Applied face recognition technology to a monitoring
system in Tigre, Argentina
l Delivered ID verification system to Tapirs Corp. using
face recognition technologies
l Delivered Infrared thermography cameras as a
countermeasure against Ebola
l Provided disaster control system with Crowd
Behavior Analysis Technology in
Toshima-ku, Tokyo
n Established NEC Energy Solutions, Ltd. in U.S.A, a
world leading EMS company
l Commissioned a grid energy storage installation in
the U.K.
l Delivered 125 EV/PHV charging infrastructure to
Tokyo Midtown in Japan
MVNO ： Mobile Virtual Network Operator
vMVNO： Virtualized MVNO
vCPE ： virtualized Customer Premises Equipment
NFV
： Network Functions Virtualization
l Delivered core systems to the
Interpol Digital Crime Centre
Page 55
© NEC Corporation 2015
Focus on Asia, Promotion of “locally-led” Businesses
l Commenced Demonstration Tests for Energy
Management Systems for Mobile Phone Base Stations in
India
Mid-term Plan
2015
l Cooperating with KT Corp in
SDN field
l Deployed Leading Face Recognition Solution at Lemon
Tree Hotels for Advanced Security
l Awarded an order to build New Trans-Pacific Cable
System "FASTER“
l Provided Face Recognition Technology to Surat City
Police
l Began Construction of SEA-US (the South-East Asia United States) Cable System
l Delivered a transit fare system for public
transportation in Dhaka, Bangladesh
l Built ICT infrastructure for the Myanmar
International Convention Center
l Awarded an order to build a submarine cable system
between Thailand and Hong Kong
l Implemented nationwide digital TV transmitters for Thai Public
Broadcasting Service
l Provided cloud service, Obbligato for SaaS, to auto part and
machine tool manufacturer in Thailand
l Implemented solutions for SMRT Corporation to enhance bus
service excellence
l Signed MOU with Singapore Economic
Development Board to collaborate on cyber security,
smart energy, health care and IoT
l Won an end-user computing contract from the Northern Territory (NT) Government of Australia
l Awarded a next generation WiFi and video solution, “iPASOLINK EX” for public safety purposes from the Liverpool
City Council, Australia
l Won TOMS contract from Optus, an integrated telecommunications service provider in Australia
Page 56
© NEC Corporation 2015
IoT : Internet of Things
Mid-term Plan
2015
Expand Global Businesses
l Americas
l EMEA
• Collaborated with Arqiva with the BBC on a series of
live trials of over-the-air 4K Ultra High Definition (UHD)
broadcasts
• Delivered ICT system for a stadium in Natal, Brazil
• Formed a partnership with Ymens to develop
trustworthy government cloud services for Romania
• Applied face recognition technology
for a monitoring system in Tigre,
Argentina
• Helped to launch smart waste
collection service in Santander,
Spain
• collaborated with Brazil's largest TV network, for live
4K terrestrial broadcasting trial
• Collaborating with the Mexican
Space Agency in satellite development
• Collaborated with Dacom on
precision farming solution field tests in Romania
• Cooperating with University of
Texas in a social infrastructure project
• Awarded a contract for microcell backbone/access from
Zamtel, Ltd., Zambia
• Built ICT rooms at schools and
community centers in Columbia
• Delivered Infrared thermography cameras as a
countermeasure against Ebola
Page 57
© NEC Corporation 2015
Stabilize the financial foundation
Mid-term Plan
2015
▐ Making NEC Fielding, Ltd. a wholly-owned subsidiary
▐ Realigning software/hardware development and
manufacturing subsidiaries
l
Established NEC Solution Innovators, Ltd., and NEC Platforms, Ltd.
l
Transfer functions at NEC Saitama, Ltd., and NEC Nagano, Ltd. within the
NEC group by the end of FY17/3
▐ Measures to improve business process
l
Page 58
Streamline corporate and administrative operations to NEC Management
Partner, Ltd. Administrative functions across the Group will be operated by
staff at NEC Management Partner, Ltd. with standardized rules and process.
© NEC Corporation 2015
Reference (Financial data)
Net Sales, Operating Income/Loss
(Billions of Yen)
Operating Income Ratio
4.8%
3.9%
3.0%
3.4%
3.3%
- 1.2%
959.6
933.5
743.0
816.3
722.0
631.5
2.1%
- 1.2%
- 3.4%
901.8
Net Sales
9.9%
8.6%
6.8%
-2.5%
700.4
640.1
+5.4%
598.7
-9.0%
+7.9%
+1.4%
-5.6%
726.1
+6.4%
-2.7%
677.2
-2.3%
-3.3%
-3.0%
-6.5%
Operating
Income/ 55.2
Loss
42.8
24.4
23.4
22.2
-7.9
Q1
28.6
-7.1
-21.8
Q2
92.4
82.5
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
14.1
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
Page 60
FY14/3
© NEC Corporation 2015
FY15/3
YoY
International Sales
20.5%
18.9%
International Sales Ratio
16.7%
20.9%
(Billions of Yen)
20.8%
19.7%
YoY
21.1%
16.8%
18.0%
16.4%
15.4%
136.2
International Sales
121.1
128.4
138.2
120.8
+11.8%
+11.2%
+8.1%
151.1
142.6
+22.9%
125.3
+14.1%
-1.9%
97.4
157.8
152.3
14.2%
167.8
+24.0%
+6.3%
-0.8%
+3.2%
+3.7%
-15.4%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
Page 61
FY14/3
© NEC Corporation 2015
FY15/3
Sales, Operating Income (Public)
(Billions of Yen)
10.7%
10.1%
8.8%
12.5%
10.2%
9.8%
8.0%
8.7%
295.9
5.9%
254.5
0.1%
271.0
0.3%
Operating Income Ratio
1.1%
+9.2%
+6.5%
+3.7%
198.1
176.7
162.0
Sales
114.9
149.2
+2.4%
+12.3%
+1.7％
+9.1%
25.8
+10.6%
37.1
26.5
14.2
20.3
17.6
15.8
8.9
0.1
1.6
0.4
Q2
+12.1%
+15.7%
+9.9%
+10.1%
Q1
164.0
146.4
126.6
Operating
14.3
Income
181.4
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
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© NEC Corporation 2015
FY15/3
YoY
Sales, Operating Income/Loss (Enterprise)
(Billions of Yen)
7.4%
6.7%
Operating Income
Ratio
4.5%
73.7
68.8
+7.2%
59.0
Sales
0.9%
- 0.3%
- 4.1%
- 5.3%
50.0
4.4%
0.3%
81.5
- 3.3%
71.3
82.6
72.3
60.7
58.7
61.2
+10.7%
+3.7%
+1.3%
+1.3%
54.4
+18.9%
+0.8%
+2.8%
+16.1%
6.7%
5.6%
-7.4%
+17.4%
+12.1%
Operating
Income/
Loss
4.6
0.2
-2.7
Q1
Q2
Q3
3.3
Q4
6.0
-2.4
Q1
-0.2
Q2
Q3
5.5
4.0
3.1
0.5
-1.8
Q4
Q1
Q2
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
Page 63
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© NEC Corporation 2015
FY15/3
YoY
Sales, Operating Income (Telecom Carrier)
(Billions of Yen)
11.3%
9.7%
15.4%
13.0%
7.7%
6.8%
10.8%
8.2%
7.2%
Operating Income Ratio
3.6%
5.1%
2.9%
236.9
219.0
Sales
200.3
187.5
166.3
155.1
180.0
172.7
154.0
+3.3%
-4.0%
+6.0%
+0.8%
+3.8%
+11.7%
-0.7%
28.5
Q2
+8.2%
-1.1%
36.6
-2.0%
22.7
17.9
13.8
12.4
12.3
5.6
Q1
170.8
151.0
+10.6%
Operating
Income
18.2
12.7
181.5
+9.4%
Q3
Q4
Q1
8.8
4.3
Q2
Q3
Q4
Q1
Q2
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
Page 64
FY14/3
© NEC Corporation 2015
FY15/3
YoY
Sales, Operating Income/Loss (System Platform)
(Billions of Yen)
8.6%
8.0%
6.6%
4.3%
- 4.2%
+11.6%
193.1
167.3
-2.7%
157.7
+1.3%
+10.8%
244.3
209.9
204.1
2.6%
1.5%
- 1.1%
Operating Income Ratio
163.1
3.5%
4.3%
2.5%
Sales
8.6%
213.0
+16.4%
185.7
178.5
166.9
-5.4%
-12.8%
+11.0%
-7.5%
+5.9%
-3.3%
170.5
-8.2%
20.9
Operating
Income/ 13.5
Loss
8.4
8.0
4.2
2.5
-6.6
-1.8
Q1
Q2
18.3
16.8
Q3
Q4
Q1
Q2
Q3
Q4
Q1
6.2
Q2
4.4
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
Page 65
FY14/3
© NEC Corporation 2015
FY15/3
YoY
Sales, Operating Income/Loss (Others)
(Billions of Yen)
10.8%
9.4%
6.7%
Operating Income Ratio
2.3%
0.7%
5.4%
- 1.6%
- 2.4%
- 6.2%
- 3.4%
- 6.1%
- 6.9%
193.8
Sales
180.1
148.4
163.4
-5.7%
143.7
143.1
+10.4%
121.8
-18.7%
-3.5%
-34.2%
-37.2%
Operating
Income/
Loss 21.0
95.8
93.3
-21.3%
-20.5%
105.1
80.0
-34.9%
9.7
-10.1
Q2
-12.1%
-26.9%
-44.1%
-3.6
Q1
117.3
Q3
Q4
-9.9
Q1
0.8
-2.0
Q2
Q3
9.9
9.6
-4.9
Q4
Q1
2.2
Q2
-3.1
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY13/3
Page 66
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© NEC Corporation 2015
FY15/3
YoY
Exchange Rate
(Yen)
150
Euro/Yen Exchange Rate (Actual)
Assumed Exchange Rate
145
140
135
Average Exchange Rate ¥139.68
130
125
125
Dollar/Yen Exchange Rate (Actual)
120
Assumed Exchange Rate
115
Average Exchange Rate ¥108.42
110
105
100
95
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3 /3 1
Stock Price
(Yen)
20,000
420
December 9: R&D
briefing
19,500
July 30: Q1 Earning release
October 30: Q2
earnings Release
19,000
400
18,500
380
18,000
July 2: Introduction
of space businesses
17,500
360
17,000
16,500
340
16,000
April 28: Full year
earnings release
15,500
320
January 29: Q3
earnings release
15,000
14,500
June 23: Ordinary general
meeting of shareholders
300
NEC
14,000
the Nikkei Stock
13,500
280
4/ 1
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10/ 31
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12/ 30
1/ 30
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3/ 31
CAUTIONARY STATEMENTS:
This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services,
and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking
statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director
of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain
safe-harbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be
identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans,"
"estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can
also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking
statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and
NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking
statements, which reflect NEC’s analysis and expectations only. Forward-looking statements are not guarantees of future
performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ
materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially
from such statements include (i) global economic conditions and general economic conditions in NEC’s markets, (ii)
fluctuating demand for, and competitive pricing pressure on, NEC’s products and services, (iii) NEC’s ability to continue to
win acceptance of NEC’s products and services in highly competitive markets, (iv) NEC’s ability to expand into foreign
markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC’s business and
operations, (vi) NEC’s ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii)
movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of
unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from
devaluation of listed securities held by NEC, and (iv) impact of any regulatory action or legal proceeding against NEC. Any
forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time
to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any
obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or
otherwise.
The management targets included in this material are not projections, and do not represent management’s current estimates
of future performance. Rather, they represent targets that management will strive to achieve through the successful
implementation of NEC’s business strategies.
Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not
be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the
applicable securities laws is not granted.