Presentation

Financial Results for
Fiscal Year Ended March 31, 2013
April 26, 2013
NEC Corporation
(http://www.nec.com/en/global/ir)
Index
I.
Financial Results for FY13/3
II. Financial Forecasts for FY14/3
l
Financial Results for FY13/3 (Appendix)
l
Financial Forecasts for FY14/3 (Appendix)
l
Reference (Financial data)
※ As stated in the July 6, 2012 announcement, “NEC Revises Business
Segments,” NEC has revised its business segments from the first quarter of
the fiscal year ending March 31, 2013. Figures for the corresponding period
of the previous fiscal year have been adjusted in accordance with the new
segments
Page 2
© NEC Corporation 2013
I.
Financial Results for FY13/3
Summary of Financial Results for FY13/3
Net Sales
YoY +1.1%
Difference from forecast
-78.4B Yen
Operating
Income
YoY +40.9B Yen
Difference from forecast
+14.6B Yen
Net Income
YoY +140.7B Yen
Difference from forecast
+10.4B Yen
Page 4
Results
FY13/3
l Increased year on year despite falling short of
sales forecast
(Increase by approximately 3%, excluding the impact of deconsolidated business)
l Expanded mainly in IT solutions, Carrier Network
and Social Infrastructure business
– Decreased in Personal Solutions
l Increased year on year and achieved forecast
l Improved significantly in IT Solutions, Carrier
Network and Social Infrastructure business
– Decreased in Personal Solutions
• Secured 40B Yen from restructuring
l Returned to black and resumed dividend payments
• Improved equity in earnings/losses of affiliates
(Revision of deferred tax assets in previous fiscal year)
© NEC Corporation 2013
Results
FY13/3
Summary of Financial Results for FY13/3
(Billions of Yen)
Q4 <January - March>
FY12/3
FY13/3
Actual
Actual
YoY
Full Year
FY12/3
FY13/3
Actual
Actual
YoY
Difference
from
Jan 31
Net Sales
924.6
901.8
- 2.5%
3,036.8
3,071.6
1.1%
-78.4
Operating Income
75.2
42.8
-32.3
73.7
114.6
40.9
14.6
50.0
22.0
140.7
10.4
7.9
42.0
% to Net Sales
Ordinary Income
% to Net Sales
Net Income/Loss
8.1%
64.0
FCF
(Ref):
40.3
6.9%
-12.7
% to Net Sales
2.4%
-23.8
4.5%
19.0
-
98.8
4.8%
31.7
-110.3
2.1%
134.7
92.0
1.4%
35.9
Average exchange rates for Q4 of FY13/3 1$= ¥88.71, 1€= ¥117.61
(Assumed exchange rates for FY13/3 1$ = ¥75, 1€= ¥100)
© NEC Corporation 2013
34.2
3.0%
30.4
-
Average exchange rates for FY13/3 1$= ¥82.08, 1€= ¥105.98
(Average exchange rates for FY12/3 1$= ¥79.03, 1€= ¥109.43)
Page 5
42.1
3.7%
1.0%
42.0
Results
FY13/3
Results by Segment
(Billions of Yen)
Net Sales
IT Solutions
Operating Income
% to Net Sales
Net Sales
Carier Network
Operating Income
% to Net Sales
Net Sales
Social Infrastructure
Operating Income
% to Net Sales
Net Sales
Personal Solutions
Operating Income/loss
% to Net Sales
Net Sales
Others
Operating Income
% to Net Sales
Eliminations/
Unclassifiable expenses
Total
12.0%
177.6
27.1
15.3%
120.1
8.7
7.3%
164.7
0.6
9.3%
183.0
19.6
10.7%
8.7%
22.1%
5.0
137.1
-10.1
330.4
16.2
4.9%
- 16.8%
-10.6
661.0
1.0
- 26.6%
-0.9
253.5
11.1
-
48.4
4.9
602.7
50.6
8.4%
9.4%
0.3%
66.0
5.8
3.8%
3.1%
-7.5
146.7
13.7
FY12/3
Actual
1,189.2
44.8
Full Year
FY13/3
Actual
1,245.8
66.1
4.4%
4.8%
21.3
-9.2
-5.9
7.5%
12.5
-47.3
10.1
12.7%
11.6
-2.7
8.8
- 10.9%
-4.7
-20.9
-13.7
- 14.5%
11.2
1.6
6.3
5.3%
647.7
63.1
9.7%
372.3
27.8
7.5%
589.1
-3.7
0.2%
10.1%
YoY
Difference
from
Jan 31
-
216.6
22.3
10.3%
Operating Loss
-14.6
-21.3
-6.7
-50.0
-61.0
-11.0
9.0
Net Sales
924.6
75.2
901.8
42.8
- 2.5%
-32.3
3,036.8
73.7
3,071.6
114.6
1.1%
40.9
-78.4
14.6
Operating Income
% to Net Sales
Page 6
Q4 <January - March>
FY12/3
FY13/3
YoY
Actual
Actual
396.3
386.6
- 2.4%
47.6
35.9
-11.7
8.1%
4.8%
© NEC Corporation 2013
2.4%
3.7%
Results
FY13/3
IT Solutions Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
YoY
+4.8%
+0.8%
Sales
1,180.0
1,245.8
1,189.2
+5.2%
+1.6%
Operating income
ratio
IT Services 804.2
5.3%
859.3
816.9
3.8%
1,245.8
(+4.8%)
r IT Services
Solid sales in manufacturing,
retail & services and telecom sectors
Consolidation of Australia-based
CSG Limited’s Technology Solutions
business
r Platform
Increase due to large-scale projects
2.6%
Operating
Income
Platform
375.8
30.3
66.1
44.8
-0.9%
372.4
▐ Operating Income 66.1
(+21.3)
r Improve due to sales increase and the
effect of restructuring
+3.8%
386.5
<Restructuring Effect>
+14.0
FY11/3
FY12/3
FY13/3
※ Restructuring Effect is compared with FY12/3
Page 7
© NEC Corporation 2013
Results
FY13/3
Carrier Network Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
r Japan : Increase by steady demand
YoY
Sales
r Overseas : Increase in services &
management and submarine cable
systems
647.7
602.7
577.2
647.7 (+7.5%)
+7.5%
+4.4%
Operating income
ratio
8.4%
9.7%
▐ Operating Income 63.1 (+12.5)
6.6%
Operating
Income
50.6
63.1
r Improve due to sales expansion, cost
reductions and one-time profit related
to intellectual property
37.9
<Restructuring Effect>
+5.0
FY11/3
FY12/3
FY13/3
※ Restructuring Effect is compared with FY12/3
Page 8
© NEC Corporation 2013
Results
FY13/3
Social Infrastructure Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
r Increase from fire and disaster
prevention business in social systems
and aerospace and defense systems
YoY
372.3
Sales
330.4
318.8
+12.7%
7.5%
+3.6%
Operating income
ratio
4.6%
▐ Operating Income 27.8 (+11.6)
4.9%
27.8
Operating
Income
14.6
372.3 (+12.7%)
r Improve due to sales expansion,
cost reductions and the effect of
restructuring
16.2
<Restructuring Effect>
+3.0
FY11/3
FY12/3
FY13/3
※ Restructuring Effect is compared with FY12/3
Page 9
© NEC Corporation 2013
Results
FY13/3
Personal Solutions Business
Billions of Yen (YoY)
(Billions of Yen)
Sales
YoY
766.5
-13.8%
-10.9%
661.0
Mobile
Terminals
303.5
589.1
-0.8%
Operating
income 301.0
ratio
- 0.2%
-12.8%
0.2%
262.4
- 0.6%
▐ Sales
589.1
(-10.9%)
s Mobile Terminals
Decrease due to drastic drop in mobile
handset shipments, despite the strong
mobile sales business of
NEC Mobiling, Ltd.
s PCs and Others
Decrease due to the deconsolidation
of consumer PCs
▐ Operating Income/Loss -3.7 (-4.7)
-22.2%
463.0
PCs and
Others
-9.3%
Operating 360.0
Income/Loss
-1.9
FY11/3
326.7
1.0
FY12/3
s Decrease due to the fall in mobile
<Restructuring Effect>
terminal sales, despite restructuring
+13.0
mainly in the mobile handset business
-3.7
FY13/3
※ Restructuring Effect is compared with FY12/3
Page 10
© NEC Corporation 2013
Results
FY13/3
Mobile Handset Business
▐ Operating Income/Loss of the Personal Solutions Business
worsened by 13.7 billion yen compared with previous forecast
( Forecast
as of Jan 31 : 10 billion yen ⇒ Result : -3.7 billion yen
)
l Q4 operating income/loss in mobile handset business deteriorated
drastically due to the non-achievement of shipment targets, etc.
(Full year shipment forecast : 4.3 million units ⇒ Result : 2.9 million units)
Forecast
as of Jan 31
Worsening image
Operating income/loss of mobile handset business
Impact of gross profit decrease due to the drop in shipments
(Compared with previous forecast, -1.4 million unit equivalent)
Inventory revaluation
Cut development cost and cost reductions
※ In addition, 15 billion yen extraordinary
loss is recorded as impairment loss
Page 11
Results
© NEC Corporation 2013
Streamlining
for FY14/3
Results
FY13/3
Others
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
216.6
(-14.5%)
s Decrease due to deconsolidation of
LCD module business, and decrease
in electronic component business and
energy business
YoY
Sales
273.0
253.5
216.6
-7.1%
10.3%
▐ Operating Income 22.3 (+11.2)
-14.5%
Operating income
ratio
3.4%
Operating
Income
9.2
4.4%
r Improve due to the sale of LCD patents
and the effect of restructuring
22.3
11.1
<Restructuring Effect>
+5.0 **
FY11/3
FY12/3
FY13/3
**include the restructuring effect in
Eliminations/Unclassifiable
expenses
※ Restructuring Effect is compared with FY12/3
Page 12
© NEC Corporation 2013
Results
FY13/3
Net Income/Loss Change (Year on Year)
Difference
from Jan 31
(Billions of Yen)
Equity in earnings/
losses of affiliates +13.1
Improvement in
※ Restructuring Effect +40.0
non-operating
Sale of LCD patents + 9.5
Strategic investment -14.0…
income/loss
+9.1
Improvement in
+7.4
operating income
※ +40.9
FY12/3
-110.3
Impairment loss -15.4
Others
-19.8
-11.6
FY13/3
30.4
+14.6
IT Solutions
Carrier Network
Social Infrastructure
Others
Eliminations/
unclassifiable expenses
+21.3
+12.5
+11.6
+11.2
-11.0
Improvement in special factors
+110.5
Revision of differed tax asset (FY12/3) +70.0
Restructuring expenses (FY12/3)
+40.5
Page 13
© NEC Corporation 2013
Ⅱ. Financial Forecasts for FY14/3
NEC’s Management Policy for FY14/3
▐ Market forecast
l The Japanese economy is expected to grow steadily through the recovery of
market confidence
(Overseas market growth is still uncertain due to the stagnation of European economy)
•
IT investment in Japan will see a recovery trend
•
Investment of telecom carriers will be slow, although TOMS/SDN market will
expand significantly
•
Social infrastructure market will expand along with new government, economic and
fiscal policy
•
Increase in smart energy related projects
▐ Business strategy
l Focus on Solutions for society/Establish competitive growth platforms in
global markets (Public, Enterprise, Telecom Carrier and Smart Energy)
l Continue strategic investment, minimize unprofitable projects and accelerate
CCC improvement activities
“CS No.1” “Global First” “One NEC”
※ TOMS : Telecom Operations Management Systems, SDN : Software-Defined Networking, CCC : Cash Conversion Cycle
Page 15
© NEC Corporation 2013
Forecasts
FY14/3
Summary of Financial Forecasts for FY14/3
▐ Achieve 100 billion yen operating income
(Sales increase by approximately 2%, excluding the impact of deconsolidation）
(Billions of Yen)
(Billions of Yen)
Full Year
FY13/3
Actual
FY14/3
Forecasts
＜Segment＞
YoY
Net Sales
IT Solutions
Operating Income
% to Net sales
Net Slaes
Net Sales
3,071.6
3,000.0
-2.3%
Carrier Network
Operating Income
% to Net sales
Net Sales
Operating Income
% to Net sales
Ordinary Income
% to Net sales
Net Income
% to Net sales
114.6
100.0
3.7%
3.3%
92.0
70.0
3.0%
2.3%
30.4
20.0
1.0%
0.7%
-14.6
Social Infrastructure
Operating Income
% to Net sales
Net Sales
-22.0
Personal Solution
Operating Loss
Others
-10.4
Operating Income
% to Net sales
Eliminations/
Unclassifiable expenses
Operating Loss
Net Sales
Net Income per share
(Yen)
Total
11.71
7.70
FY13/3
Actual
1,245.8
66.1
5.3%
647.7
63.1
-4.01
Operating Income
% to Net sales
YoY
1.1%
3.9
5.6%
650.0
55.0
9.7%
372.3
27.8
0.4%
-8.1
8.5%
420.0
27.0
7.5%
589.1
-3.7
% to Net sales
Net Sales
Full Year
FY14/3
Forecasts
1,260.0
70.0
12.8%
-0.8
6.4%
485.0
-10.0
-
216.6
22.3
10.3%
- 17.7%
-6.3
-
185.0
10.0
- 14.6%
-12.3
5.4%
-61.0
-52.0
9.0
3,071.6
114.6
3,000.0
100.0
- 2.3%
-14.6
3.7%
3.3%
Note: Assumed exchange rates for FY14/3 1$=¥90, 1€=¥115
*Forecasts as of April 26, 2013
Page 16
© NEC Corporation 2013
Forecasts
FY14/3
IT Solutions Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
Sales
1,189.2
+1.1%
1,245.8
1,260.0
Operating income
ratio
s Platform
Decline due to the decrease of largescale projects
+3.0%
+5.2%
5.6%
5.3%
3.8%
▐ Operating Income 70.0
Operating
Income
Platform
885.0
859.3
IT Services 816.9
44.8
372.4
FY12/3
(+1.1%)
r IT Services
Steady increase supported by
recovering momentum in IT investment
YoY
+4.8%
1,260.0
r Improve margins by continuous cost
reductions in addition to the sales
growth
70.0
66.1
-3.0%
+3.8%
386.5
(+3.9)
375.0
<Restructuring Effect>
<Restructuring Effect>
+14.0
+10.0
FY13/3
FY14/3
Forecasts(*)
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY12/3
Page 17
© NEC Corporation 2013
Forecasts
FY14/3
Carrier Network Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
650.0
647.7
602.7
Operating
income +7.5%
ratio
8.4%
Operating
Income
50.6
FY12/3
r Overseas : Increase in services &
management and mobile backhaul
businesses
+0.4%
9.7%
63.1
8.5%
▐ Operating Income 55.0 (-8.1)
s Decrease due to the acceleration of
investment in SDN, etc., and one-time
profit related to intellectual property in
the previous fiscal year
55.0
<Restructuring Effect>
<Restructuring Effect>
+5.0
+4.0
FY13/3
(+0.4%)
s Japan : Decrease from the previous
fiscal year, when there was steady
demand
YoY
Sales
650.0
FY14/3
Forecasts(*)
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY12/3
Page 18
© NEC Corporation 2013
Forecasts
FY14/3
Social Infrastructure Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
420.0
372.3
+12.8%
330.4
+12.7%
Operating
income
ratio
7.5%
▐ Operating Income 27.0 (-0.8)
6.4%
s Same level as previous fiscal year due
to the investment for future growth, in
spite of sales increase
4.9%
Operating
Income
(+12.8%)
r Increase by healthy sales of
aerospace and defense systems due
to large-scale projects and social
systems mainly in fire and disaster
prevention systems
YoY
Sales
420.0
27.8
27.0
16.2
FY12/3
<Restructuring Effect>
<Restructuring Effect>
+3.0
+3.0
FY13/3
FY14/3
Forecasts(*)
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY12/3
Page 19
© NEC Corporation 2013
Forecasts
FY14/3
Personal Solutions Business
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
Sales
-10.9%
589.1
Mobile
Operating
Terminals 301.0 income
ratio
0.2%
-17.7%
s PCs and Others
Slight decrease due to the declining of
Business PCs
485.0
-12.8%
-37.5%
262.4
- 0.6%
164.0
- 2.1%
-9.3%
PCs and
Others
FY12/3
▐ Operating Loss
-10.0 (-6.3)
-1.7%
360.0 Operating 326.7
Income/loss
1.0
(-17.7%)
s Mobile Terminals
Decrease due to the deconsolidation
of NEC Mobiling, Ltd. Mobile handset
sales remain flat from the previous
fiscal year
YoY
661.0
485.0
s Decrease due to the deconsolidation
of NEC Mobiling, Ltd., despite reduced
losses in the mobile handset business
321.0
-3.7
-10.0
<Restructuring Effect>
<Restructuring Effect>
+13.0
+19.0
FY13/3
FY14/3
Forecasts(*)
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY12/3
Page 20
© NEC Corporation 2013
Forecasts
FY14/3
Others
Billions of Yen (YoY)
(Billions of Yen)
▐ Sales
Sales
253.5
▐ Operating Income 10.0
216.6
10.3%
-14.5%
(-14.6%)
s Decrease due to the deconsolidation of
electronic component business
YoY
Operating income
ratio
185.0
(-12.3)
s Decrease by the impact of the sale of
LCD patents in the previous fiscal year
185.0
5.4%
4.4%
22.3
-14.6%
Operating
Income
11.1
10.0
<Restructuring Effect>
+5.0 **
FY12/3
FY13/3
<Restructuring Effect>
+4.0 **
FY14/3
Forecasts(*)
**include the restructuring effect in
Eliminations/Unclassifiable
expenses
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY12/3
Page 21
© NEC Corporation 2013
Forecasts
FY14/3
Net Income/Loss Change (Year on Year)
Others
Carrier Network
Personal Solutions
IT Solutions
Eliminations/
Unclassifiable expenses
FY13/3
30.4
-12.3
-8.1
-6.3
+3.9
(Billions of Yen)
+9.0
Deterioration of
operating income
-14.6
Decrease of impairment loss
Others
+11.6
FY14/3
Forecasts(*)
20.0
Deterioration of
non-operating
income/loss
-7.4
Increase of interest expense
*Forecasts as of April 26, 2013
Page 22
© NEC Corporation 2013
Forecasts
FY14/3
Summary
Achieving FY14/3 forecasts is the
minimum goal for the first year of
the Mid-term Management Plan 2015
Aim to achieve financial forecasts
just as FY13/3, and continue
dividend payments to shareholders
*Forecasts as of April 26, 2013
Page 23
© NEC Corporation 2013
Page 2011
24
© NEC Corporation
© NEC Corporation 2013
Financial Results for FY13/3 (Appendix)
Results
FY13/3
Results for FY13/3 by Segment
(Billions of yen)
Net Sales
Operating Income/Loss
114.6
3,115.4
IT Solutions
1,180.0
3,036.8
3,071.6
1,189.2
1,245.8
73.7
57.8
Carrier
Network
Social
Infrastructure
Personal
Solutions
Others
Page 26
577.2
318.8
602.7
330.4
372.3
661.0
589.1
273.0
253.5
216.6
FY11/3
FY12/3
FY13/3
766.5
37.9
Carrier
Network
647.7
44.8
63.1
30.3
IT Solutions
Social
Infrastructure
14.6
9.2 - 1.9
Eliminations/
Unclassifiable
expenses
- 32.2
FY11/3
© NEC Corporation 2013
66.1
50.6
27.8
16.2
1.0 11.1
- 50.0
FY12/3
Others
22.3
- 3.7
- 61.0
FY13/3
Personal
Solutions
Results
FY13/3
Summary of Financial Results for FY13/3 by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
Others
7%
Personal
Solutions
IT Solutions
IT Solutions Carrier
66.1 Network
41%
19%
114.6
63.1
Social
Infrastructure
Sales for
FY13/3
Others
27.8
3,071.6
22.3
Personal
Solutions
Social
Infrastructure
-3.7
12%
Carrier Network
21%
Page 27
Operating Income
for FY13/3
© NEC Corporation 2013
Results
FY13/3
Sales Change (Year on Year)
Difference
from Jan 31
Increase in fire and disaster prevention business,
aerospace and defense systems
-2.7
Deconsolidation of
consumer PC business
Decrease in mobile handset shipments
Social Infrastructure Personal Solutions
+41.9 (+12.7%)
-71.9 (-10.9%)
Others
-36.9
Carrier Network
+45.0 (+7.5%)
IT Solutions
+56.6 (+4.8%)
-9.2
Increase in both IT Services and Platform
Page 28
+1.6
FY12/3
3,071.6
FY12/3
3,036.8
(Billions of Yen)
Decrease due to deconsolidation of
LCD module business and decrease
in electronic component business
Steady sales in Japan
Increase in services & management
and submarine cable systems
-47.3
-20.9
© NEC Corporation 2013
Results
FY13/3
Operating Income/Loss Change (Year on Year)
(Billions of Yen)
Difference
from Jan 31
<Restructuring Effect>
+8.8
+3.0
Sales increase,
Cost reductions and
Effect of restructuring
<Restructuring Effect>
+5.0
Sales increase, Cost reductions and
one-time profit related to intellectual property
Decrease due to sales drop of
mobile terminals
-13.7
Personal Solutions
-4.7
<Restructuring Effect>
Others Eliminations/
Unclassifiable
+11.2 expense -11.0
+6.3
IT Solutions
+21.3
Sales increase,
Effect of restructuring
Increase in
investment expenditure
+9.0
<Restructuring Effect>
-5.9
+40.0
<Restructuring Effect>
Page 29
FY13/3
114.6
Sale of LCD patents,
Effect of restructuring
73.7
+13.0
+5.0
Social
Infrastructure
+11.6
Carrier Network
+12.5
+10.1
FY12/3
<Restructuring Effect>
+14.0
© NEC Corporation 2013
Restructuring Progress
▐ FY13/3 Results : 40.0B Yen (achieve the initial plan)
(Billions of Yen)
Item
FY13/3
Result
( Jan to Mar ）
Business
Restructuring
Streamline
Corporate staff
Reduction of
External
Resources
Immediate Cost
Reductions
Total
FY14/3
(forecasts)
Segment
( Jan to Mar ）
IT Solutions
20.0
(9.0)
4.0
(2.0)
16.0
(3.0)
40.0
(14.0)
34.0
Carrier Network
Social
Infrastructure
6.0
0.0
40.0
FY13/3
Result
Personal
Solutions
Others/Eliminations
Unclassifiable exp
Total
14.0
(4.0)
5.0
(2.0)
3.0
(1.0)
13.0
(5.0)
5.0
(2.0)
40.0
(14.0)
FY14/3
(forecasts)
10.0
4.0
3.0
19.0
4.0
40.0
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY12/3
Page 30
© NEC Corporation 2013
Results
FY13/3
Overseas sales
(Billions of Yen)
Q4 <January - March>
FY12/3
FY13/3
YoY
Actual
Actual
Asia
Europe
Others
Total
Net Sales
40.2
46.1
To consolidated total sales（％）
4.4%
5.1%
Net Sales
21.8
22.0
To consolidated total sales（％）
2.4%
2.4%
Net Sales
56.6
60.4
To consolidated total sales（％）
6.1%
6.7%
118.7
128.4
12.8%
14.2%
Net Sales
To consolidated total sales（％）
FY12/3
Actual
14.5%
0.6%
6.6%
8.1%
Full Year
FY13/3
Actual
153.0
162.3
5.0%
5.3%
104.4
84.2
3.4%
2.7%
224.1
236.6
7.4%
7.7%
481.5
483.1
15.9%
15.7%
YoY
6.1%
- 19.4%
5.6%
Major countries and regions
China,Chinese
Taipei,India,
Singapore and Indonesia
UK,France,Netherlands,
Germany,Italy and Spain
U.S.A
0.3%
* Sales, based on customer locations, are classified by country or region
Page 31
© NEC Corporation 2013
Results
FY13/3
Financial Position Data
(Billions of Yen)
End of Mar End of Mar
2012
2013
2,557.6
2,581.0
23.4
Net Assets
777.6
836.1
58.5
Interest-bearing debt
692.7
603.5
-89.3
Shareholder's Equity
657.0
710.7
53.7
Total Assets
Equity ratio(%)
25.7%
27.5%
1.8pt
D/E ratio (times)
1.05
0.85
0.20pt
Net D/E ratio (times)
0.67
0.57
0.10pt
Balance of cash and
cash equivalents
Page 32
Difference
from Mar
2012
251.8
© NEC Corporation 2013
197.1
-54.7
Results
FY13/3
<Ref.> Balance Sheets (At the end of Mar, 2013)
(Billions of Yen)
Total Assets 2,581.0
<Compared to end of Mar, 2012>
(+23.4)
Compared to
end of Mar,
2012
Current Assets
Liabilities
1,513.8
1,744.8
-0.6
-35.1
Noncurrent Assets
1,067.2
Net Assets
+24.0
836.1
+58.5
Business acquisitions
Page 33
Decrease interesting-bearing debt,
Increase in advances received
© NEC Corporation 2013
Book net income,
Increase foreign currency
translation adjustments
Financial Forecasts for FY14/3 (Appendix)
Forecasts
FY14/3
Financial Forecasts for FY14/3 by Segment
(Billions of yen)
Net Sales
Operating Income/Loss
114.6
100.0
3,036.8
IT Solutions
1,189.2
3,071.6
1,245.8
3,000.0
1,260.0
73.7
IT Solutions
Social
Infrastructure
602.7
330.4
647.7
372.3
Social
Infrastructure
650.0
Personal
Solutions
420.0
44.8
661.0
589.1
485.0
Others
253.5
216.6
185.0
27.8
16.2
11.11.0
FY12/3
FY13/3
FY14/3
Forecasts(*)
-50.0
Eliminations/
Unclassifiable
expenses
55.0
50.6
Others
Personal
Solutions
70.0
63.1
Carrier
Network
Carrier
Network
66.1
FY12/3
27.0
22.3
-3.7
10.0
-10.0
-61.0
-52.0
FY13/3
FY14/3
Forecasts(*)
*Forecasts as of April 26, 2013
Page 35
© NEC Corporation 2013
Forecasts
FY14/3
Summary of Financial Forecasts for FY14/3 by Segment
(Billions of Yen)
Net Sales
Operating Income/Loss
Others
6%
IT Solutions
70.0
Personal
Solutions
IT Solutions
16%
42%
Sales Forecast
for FY14/3
100.0
Carrier
Network
55.0
Social
Infrastructure
27.0
3,000.0
Personal
Solutions
Others
10.0
-10.0
Social
Infrastructure
14%
Operating Income
Forecast for FY14/3
Carrier Network
22%
*Forecasts as of April 26, 2013
Page 36
© NEC Corporation 2013
Forecasts
FY14/3
Sales Change （Year on Year）
Increase both in aerospace and defense systems
and social systems
(Billions of Yen)
Social Infrastructure
Deconsolidation of NEC Mobiling, Ltd.
+47.7 (+12.8%)
Personal Solutions
-104.1 (-17.7%)
Carrier Network
Decrease in domestic business compared to
the previous year’s steady demand
Increase in overseas business such as
services & management and mobile backhaul
FY13/3
+2.3 (+0.4%)
Deconsolidation of electronic
component business
3,071.6
Others
-31.6
IT Solutions
+14.2 (+1.1%)
Increase in IT Services
Decrease in Platform
FY14/3
Forecast(*)
3,000.0
*Forecasts as of April 26, 2013
Page 37
© NEC Corporation 2013
Operating Income/Loss Change (Year on Year)
<Restructuring Effect>
-4.0
Investment for future growth
Improve due to sales growth and
continuous cost reduction
IT Solutions
+3.9
114.6
<Restructuring Effect>
(Billions of Yen)
0.0
<Restructuring Effect>
FY13/3
Forecasts
FY14/3
Social
Infrastructure
-0.8
Personal
Solutions
-6.3
<Restructuring Effect>
+6.0
Decrease due to the deconsolidation of
NEC Mobiling, Ltd., despite reduced losses
in mobile handset business
Others
-12.3
Carrier
Network
-8.1
Eliminations/
Unclassifiable
expenses
+9.0
FY14/3
Forecast(*)
100.0
-1.0
Accelerate investment in SDN
One-time profit related to intellectual
property in the previous year
Sale of LCD patents
in the previous year
Decrease in
investment costs
<Restructuring Effect>
-1.0
*Forecasts as of Apr 26, 2013, Restructuring Effects are compared with FY13/3
Page 38
© NEC Corporation 2013
Capital Expenditure, Depreciation and R&D expenses
(Billions of yen)
FY12/3
FY13/3
Actual
Actual
YoY
Difference
FY14/3
from Jan 31
Forecast
YoY
Capital Expenditure
42.0
45.6
8.7%
-4.4
50.0
9.6%
Depreciation
53.3
51.2
-4.0%
-3.8
50.0
-2.3%
162.0
151.7
-6.4%
-18.3
160.0
5.5%
5.3%
4.9%
R&D expenses
To consolidated total sales(%)
5.3%
*Forecasts as of April 26, 2013
Page 39
© NEC Corporation 2013
Reference (Financial data)
Net Sales, Operating Income/Loss
(Billions of Yen)
8.1%
7.6%
Operating income ratio
3.0%
6.8%
4.8%
3.4%
3.4%
-1.9%
-3.5%
-16.2%
Net Sales
-2.5%
-12.7%
925.5
801.6
114.2
（Overseas Sales Ratio） (17.1%)
669.0
115.1
108.9
(17.2%)
(16.3%)
-5.6%
+7.9%
901.8
722.0
(14.2%)
816.3
631.5
136.2
(16.7%)
121.1
(15.4%)
75.2
26.2
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY11/3
24.4
-19.4
-13.5
128.4
(16.8%)
97.4
55.2
-23.2
Page 41
138.8
(17.9%)
118.7
(12.8%)
70.2
Operating
Income/
Loss 24.3
Q2
774.1
669.1
(16.3%)
Q1
-7.2%
117.5
+5.4%
924.6
+0.2%
(12.8%)
128.8
(16.1%)
-3.4%
118.8
720.7
667.5
Sales in Japan
-0.1%
-8.4%
-14.2%
Overseas Sales
-1.2%
-1.2%
-2.9%
Q1
-7.9
-8.2
Q2
<Apr-Jun>
Q3
42.8
Q4
Q1
<Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY12/3
© NEC Corporation 2013
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY13/3
YoY
Sales, Operating Income/Loss (IT Solutions)
Operating income ratio
(Billions of Yen)
12.0%
9.7%
9.3%
8.7%
4.5%
4.0%
2.6%
-1.4%
-3.4%
-4.2%
-5.4%
306.5
241.3
IT
Services
Platform
161.2
80.0
Operating
Income/
Loss
-10.1
Q1
+5.0%
256.3
249.2
+9.8%
280.9
272.1
175.8
157.5
225.9
47.6
205.2
36.9
171.0
329.2
+1.1%
278.4
209.7
195.4
165.9
35.9
28.6
13.6
12.1
96.7
82.5
Q2
-8.6
Q3
116.5
79.9
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY11/3
Page 42
299.3
237.4
262.2
386.6
+10.0%
-2.3%
-1.6%
253.5
-2.4%
396.3
378.7
Net Sales
-2.3%
+4.6%
-12.8
Q1
94.1
80.5
Q2
<Apr-Jun>
-3.6
Q3
117.9
83.3
Q4
-5.8
Q1
<Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY12/3
© NEC Corporation 2013
103.3
Q2
<Jul-Sep>
85.5
7.4
Q3
114.4
Q4
<Oct-Dec> <Jan-Mar>
FY13/3
YoY
Sales, Operating Income/Loss (Carrier Network)
(Billions of Yen)
15.3%
14.3%
Operating income ratio
8.7%
YoY
7.9%
8.3%
9.2%
10.8%
10.7%
5.8%
3.5%
179.8
-4.9%
149.1
Net Sales
1.9%
177.6
156.0
141.7
136.0
141.3
-1.2%
127.5
152.6
+3.1%
+9.4%
+4.6%
112.3
183.0
170.7
+7.7%
+4.2%
+10.9%
+13.5%
27.1
25.7
Operating
Income/ 13.0
Loss
12.9
4.7
2.4
-5.5
Q1
Q2
Q3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY11/3
Page 43
Q1
Q2
<Apr-Jun>
11.2
8.2
Q3
Q4
Q1
<Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY12/3
© NEC Corporation 2013
16.5
15.7
Q2
<Jul-Sep>
Q3
19.6
Q4
<Oct-Dec> <Jan-Mar>
FY13/3
Sales, Operating Income/Loss (Social Infrastructure)
(Billions of Yen)
Operating income ratio
8.8%
4.6%
9.4%
7.1%
2.4%
0.7%
0.6%
8.2%
7.3%
6.9%
146.7
1.9%
0.7%
+22.1%
120.1
114.3
+5.1%
81.5
79.5
Net Sales
82.7
83.7
+1.4%
+19.6%
70.0
66.6
58.4
+2.6%
58.8
59.2
+5.1%
+0.7%
10.1
Operating
Income
3.7
0.4
Q2
6.8
Q3
Q4
FY11/3
Q1
Q2
<Apr-Jun>
Q3
5.9
1.4
1.3
0.4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
Page 44
8.7
5.7
0.3
Q1
13.7
+0.8%
Q4
Q1
<Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY12/3
© NEC Corporation 2013
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY13/3
YoY
Sales, Operating Income/Loss (Personal Solutions)
(Billions of Yen)
Operating income ratio
-0.2%
YoY
1.6%
-0.8%
0.7%
Mobile
Terminals
198.5
76.3
79.1
193.0
80.3
181.5
-14.0%
183.5
170.8
-2.2%
+5.3%
-26.4%
164.7
114.4
112.7
113.7
104.0
3.3
-0.4
Q1
-1.6
Q2
Q3
-3.2
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY11/3
Page 45
84.0
1.3
Q1
2.1
Q2
<Apr-Jun>
170.0
149.6
74.5
57.4
89.4
82.6
Q3
93.0
75.1
0.6
-3.0
Q4
© NEC Corporation 2013
137.1
4.2
53.5
5.2
75.1
-3.0
Q1
<Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY12/3
-16.8%
77.0
75.3
59.4
PCs and
Others
-27.8%
132.5
79.5
86.8
Operating
Income/
Loss 122.3
-7.3%
-0.4%
-9.2%
142.0
67.8
3.5%
0.3%
-2.1%
-5.2%
193.5
1.2%
-1.8%
Net Sales
2.4%
83.6
-10.1
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY13/3
Sales, Operating Income/Loss (Others)
(Billions of Yen)
22.5%
YoY
Operating income ratio
6.7%
5.7%
4.0%
3.1%
-2.1%
-2.8%
-2.8%
-2.3%
-7.5%
-0.1%
Net Sales
68.1
62.0
71.6
8.1% 10.1%
8.7%
6.5%
-4.2%
-17.5%
71.3
66.5
61.9
66.0
-6.5%
-20.4%
63.7
59.0
-26.6%
55.1
49.3
48.4
14.4
Operating
Income/
Loss
3.9
2.2
-1.7
Q1
Q2
Q3
4.8
Page 46
2.4
-1.3
Q4
<Apr-Jun> <Jul-Sep> <Oct-Dec> <Jan-Mar>
FY11/3
5.8
4.3
Q1
Q2
<Apr-Jun>
Q3
4.4
4.9
-1.4
Q4
Q1
<Jul-Sep> <Oct-Dec> <Jan-Mar> <Apr-Jun>
FY12/3
© NEC Corporation 2013
Q2
<Jul-Sep>
Q3
Q4
<Oct-Dec> <Jan-Mar>
FY13/3
Exchange Rate
(Yen)
130
Euro/Yen Exchange Rate (Actual)
125
Assumed Exchange Rate
120
115
Average Exchange Rate ¥105.98
110
105
100
95
90
100
Dollar/Yen Exchange Rate (Actual)
95
Assumed Exchange Rate
Average Exchange Rate ¥82.08
90
85
80
75
70
4/2
Page 47
4/30
5/31
6/29
7/31
8/31
9/28
10/31
© NEC Corporation 2013
11/30
12/31
1/31
2/28
3/29
Stock Price
(Yen)
Feb 14:Energy Storage
System Business Briefing
13,000
280
NEC
12,500
260
Jan 31:Q3 Earnings
the Nikkei Stock
12,000
240
Apr 27:FY13/3
Earnings
11,500
220
11,000
Jul 10:Smart Energy Business Briefing
200
Dec 5:R&D Briefing
180
Jun 22:Ordinary
General Meeting of
Shareholders
10,500
10,000
160
Oct 26:1H Earnings
9,500
140
9,000
120
8,500
100
Jul 31:Q1 Earnings
8,000
Page 48
4 /2
4 /2 7
5/3 1
6/29
7/31
8/31
9/28
© NEC Corporation 2013
Oct 19:Financial
Forecast Revisions
1 0/31
11 /3 0
12/2 8
1/3 1
2/2 8
3 /2 9
80
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 safeharbors 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.